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General Assembly Substitute Bill No. 1499
January Session, 2025
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 Section 4e-1 of the general statutes is repealed and the 12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
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 Substitute Bill No. 1499
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(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
(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 Substitute Bill No. 1499
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(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
[(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 Substitute Bill No. 1499
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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
[(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 Substitute Bill No. 1499
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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
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 Substitute Bill No. 1499
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[(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, (A) (i) in the case of a contract with a 146
state contracting agency that is not a quasi-public agency, which are in 147
effect as of January 1, 2009, or (ii) in the case of a contract with a state 148
contracting agency that is a quasi-public agency, which are in effect as 149
of July 1, 2025, and (B) which through a renewal, modification, extension 150
or rebidding of contracts continue to be provided by a nonprofit agency; 151
[(22)] (21) "Procurement" means contracting for, buying, purchasing, 152
renting, leasing or otherwise acquiring or disposing of, any supplies, 153
services, including, but not limited to, contracts for purchase of services 154
and personal service agreements, interest in real property, or 155
construction, and includes all government functions that relate to such 156
activities, including best value selection and qualification based 157
selection; 158
[(23)] (22) "Proposer" means a business submitting a proposal to a 159
state contracting agency in response to a request for proposals or other 160
competitive sealed proposal; 161
[(24)] (23) "Public record" [means a public record, as defined] has the 162
same meaning as provided in section 1-200; 163
[(25)] (24) "Qualification based selection" means a contract selection 164
process in which the award of a contract is primarily based on an 165
assessment of contractor qualifications and on the negotiation of a fair 166
and reasonable price; 167
[(26)] (25) "Regulation" [means regulation, as defined] has the same 168
meaning as provided in section 4-166; 169
[(27)] (26) "Request for proposals" means all documents, whether 170
attached or incorporated by reference, utilized for soliciting proposals; 171 Substitute Bill No. 1499
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[(28)] (27) "State contracting agency" means any executive branch 172
agency, board, commission, department, office, institution or council 173
and any quasi-public agency. "State contracting agency" does not 174
include the judicial branch, the legislative branch, the offices of the 175
Secretary of the State, the State Comptroller, the Attorney General, the 176
State Treasurer, with respect to their constitutional functions [,] or any 177
state agency with respect to contracts specific to the constitutional and 178
statutory functions of the office of the State Treasurer. For [the purposes 179
of every provision of this chapter other than section 4e-16, "state 180
contracting agency" includes the Connecticut Port Authority, for] the 181
purposes of section 4e-16, as amended by this act, "state contracting 182
agency" includes any constituent unit of the state system of higher 183
education; [and for the purposes of section 4e-19, "state contracting 184
agency" includes the State Education Resource Center, established 185
under section 10-4q;] 186
[(29)] (28) "Subcontractor" means a subcontractor of a contractor for 187
work under a contract or an amendment to a contract; 188
[(30)] (29) "Supplies" means any and all articles of personal property, 189
including, but not limited to, equipment, materials, printing, insurance 190
and leases of real property, excluding land or a permanent interest in 191
land furnished to or used by any state contracting agency; 192
[(31)] (30) "Infrastructure facility" means a building, structure or 193
network of buildings, structures, pipes, controls and equipment that 194
provide transportation, utilities, public education or public safety 195
services. [Infrastructure facility] "Infrastructure facility" includes 196
government office buildings, public schools, jails, water treatment 197
plants, distribution systems and pumping stations, wastewater 198
treatment plants, collections systems and pumping stations, solid waste 199
disposal plants, incinerators, landfills, and related facilities, public roads 200
and streets, highways, public parking facilities, public transportation 201
systems, terminals and rolling stock, rail, air and water port structures, 202
terminals and equipment; [and] 203 Substitute Bill No. 1499
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[(32)] (31) "State employee" [means state employee, as defined] has 204
the same meaning as provided in section 5-154 and, for purposes of 205
section 4e-16, as amended by this act, [state employee] includes an 206
employee of any state contracting agency that is not a quasi-public 207
agency; and 208
(32) "Quasi-public agency" has the same meaning as provided in 209
section 1-120. 210
Sec. 3. Subsection (g) of section 4e-2 of the general statutes is repealed 211
and the following is substituted in lieu thereof (Effective July 1, 2025): 212
(g) The board shall appoint a Chief Procurement Officer for a term 213
not to exceed six years, unless reappointed pursuant to the provisions 214
of this subsection. The Chief Procurement Officer shall report to the 215
board and annually be evaluated by, and serve at the pleasure of, the 216
board. For administrative purposes only, the Chief Procurement Officer 217
shall be supervised by the executive director. 218
(1) The Chief Procurement Officer shall be responsible for carrying 219
out the policies of the board relating to procurement including, but not 220
limited to, oversight, investigation, auditing, agency procurement 221
certification and procurement and project management training and 222
enforcement of [said] such policies as well as the application of such 223
policies to the screening and evaluation of current and prospective 224
contractors. The Chief Procurement Officer may enter into such 225
contractual agreements as may be necessary for the discharge of the 226
duties as set forth in this subsection and by the board, including, but not 227
limited to, recommending best practices and providing operational and 228
administrative assistance to state agencies determined, by the board, to 229
be in violation of sections 4e-16 to 4e-47, inclusive, as amended by this 230
act. 231
(2) In addition to the duties set forth by the board, the Chief 232
Procurement Officer shall (A) oversee state contracting agency 233
compliance with the provisions of statutes and regulations concerning 234
procurement; (B) monitor and assess the performance of the 235 Substitute Bill No. 1499
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procurement duties of each agency procurement officer; (C) administer 236
the certification system and monitor the level of agency compliance with 237
the requirements of statutes and regulations concerning procurement, 238
including, but not limited to, the education and training, performance 239
and qualifications of agency procurement officers; (D) review and 240
monitor the procurement processes of each state contracting agency [, 241
quasi-public agencies] and [institutions] institution of higher education; 242
and (E) serve as chairperson of the Contracting Standards Advisory 243
Council. 244
Sec. 4. Section 4e-3 of the general statutes is repealed and the 245
following is substituted in lieu thereof (Effective July 1, 2025): 246
(a) All rights, powers, duties and authority relating to the 247
procurement policies of the state, vested in, or exercised by, any state 248
contracting agency may also be exercised by the board, provided such 249
rights, powers, duties and authority may be exercised by the board as 250
provided in this section and sections 4e-4 to 4e-47, inclusive, as amended 251
by this act, and absent any affirmative action by the board, pursuant to 252
said sections, shall not be deemed to limit or restrict the exercise of such 253
rights, powers, duties and authority by any such state contracting 254
agency. Such rights, powers, duties and authority shall include the 255
following: 256
(1) Acquisition of supplies, services, and construction, and the 257
management, control, warehousing, sale, and disposal of supplies, 258
services, and construction; 259
(2) Any state contracting agency's contracting and procurement 260
processes, including, but not limited to, leasing and property transfers, 261
purchasing or leasing of supplies, materials or equipment, consultant or 262
consultant services, purchase of service agreements or privatization 263
contracts; and 264
(3) Contracts for the construction, reconstruction, alteration, 265
remodeling, repair or demolition of any public building. 266 Substitute Bill No. 1499
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(b) Notwithstanding any provision of chapter 14, upon request by the 267
board, each state contracting agency, including institutions of higher 268
education, shall provide the board, in a timely manner, with such 269
procurement information as the board deems necessary. The board shall 270
have access to all information, files and records related to any state 271
contracting agency in furtherance of the board's duties, as described in 272
this section and sections 4e-4 to 4e-47, inclusive, as amended by this act. 273
Nothing in this section shall be construed to require the board's 274
disclosure of documents that are exempt from disclosure pursuant to 275
chapter 14. 276
(c) Any provision of this title shall supersede any contrary provision 277
concerning a state contracting agency or quasi-public agency in any 278
provision of the general statutes. 279
Sec. 5. Section 4e-4 of the general statutes is repealed and the 280
following is substituted in lieu thereof (Effective July 1, 2025): 281
Except as otherwise provided in the general statutes, the board shall 282
have the following authority and responsibilities with respect to 283
procurements by state contracting agencies: 284
[(a) Recommend] (1) To recommend the repeal of repetitive, 285
conflicting or obsolete statutes concerning state contracting agency 286
procurement; 287
[(b) Review] (2) To review and make recommendations concerning 288
proposed legislation and regulations concerning procurement, 289
management, control, and disposal of any and all supplies, services, and 290
construction to be procured by [the] state contracting agencies, 291
including, but not limited to: 292
[(1)] (A) Conditions and procedures for delegation of procurement 293
authority; 294
[(2)] (B) Prequalification, suspension, debarment and reinstatement 295
of prospective bidders and contractors; 296 Substitute Bill No. 1499
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[(3)] (C) Small purchase procedures; 297
[(4)] (D) Conditions and procedures for the procurement of 298
perishables and items for resale; 299
[(5)] (E) Conditions and procedures for the use of source selection 300
methods authorized by statutes and regulations concerning 301
procurement; 302
[(6)] (F) Conditions and procedures for the use of emergency 303
procurements; 304
[(7)] (G) Conditions and procedures for the selection of contractors by 305
processes or methods that restrict full and open competition; 306
[(8)] (H) The opening or rejection of bids and offers, and waiver of 307
errors in bids and offers; 308
[(9)] (I) Confidentiality of technical data and trade secrets submitted 309
by actual or prospective bidders; 310
[(10)] (J) Partial, progressive and multiple awards; 311
[(11)] (K) Supervision of storerooms and inventories, including 312
determination of appropriate stock levels and the management, 313
transfer, sale or other disposal of publicly-owned supplies; 314
[(12)] (L) Definitions and classes of contractual services and 315
procedures for acquiring such services; 316
[(13)] (M) Regulations providing for conducting cost and price 317
analysis; 318
[(14)] (N) Use of payment and performance bonds; 319
[(15)] (O) Guidelines for use of cost principles in negotiations, 320
adjustments and settlements; and 321
[(16)] (P) Identification of procurement best practices; 322 Substitute Bill No. 1499
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[(c) Adopt] (3) To adopt regulations, [pursuant to] in accordance with 323
the provisions of chapter 54, to carry out the provisions of statutes 324
concerning procurement, in order to facilitate consistent application of 325
the law and require the implementation of procurement best practices; 326
[(d) Make] (4) To make recommendations with regard to information 327
systems for state contracting agency procurement including, but not 328
limited to, data element and design and the State Contracting Portal; 329
[(e) Develop] (5) To develop a guide to state statutes and regulations 330
concerning procurement, for use by all state contracting agencies; 331
[(f) Assist] (6) To assist state contracting agencies in complying with 332
the statutes and regulations concerning procurement by providing 333
guidance, models, advice and practical assistance to state contracting 334
agency staff relating to: [(1)] (A) Buying the best service at the best price, 335
[(2)] (B) properly selecting contractors, and [(3)] (C) drafting contracts 336
that achieve state goals of accountability, transparency and results 337
based outcomes and to protect taxpayers' interest; 338
[(g) Train] (7) To train and oversee the agency procurement officer of 339
each state contracting agency and any contracting officers thereunder; 340
[(h) Review] (8) To review and certify, on or after January 1, 2009, that 341
a state contracting agency's procurement processes are in compliance 342
with statutes and regulations concerning procurement by: 343
[(1)] (A) Establishing procurement and project management 344
education and training criteria and certification procedures for agency 345
procurement officers and contracting officers. All agency procurement 346
officers and contracting officers designated under this [provision] 347
subparagraph shall be required to maintain the certification in good 348
standing at all times while performing procurement functions; 349
[(2)] (B) Approving an ethics training course, in consultation with the 350
Office of State Ethics, including, but not limited to, state employees and 351
quasi-public agency employees involved in procurement and for state 352 Substitute Bill No. 1499
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contractors and substantial subcontractors who are prequalified 353
pursuant to chapter 58a. Such ethics training course may be developed 354
and provided by the Office of State Ethics or by any person, firm or 355
corporation, provided such course is approved by the State Contracting 356
Standards Board; 357
[(i) Recertify] (9) To recertify each state contracting agency's 358
procurement processes, triennially, and provide agencies with notice of 359
any certification deficiency and exercise those powers authorized by 360
section 4e-34, as amended by this act, 4e-39 or 4e-40, as amended by this 361
act, as applicable, if a determination of noncompliance is made; 362
[(j) Define] (10) To define the contract data reporting requirements to 363
the board for state agencies concerning information on: [(1)] (A) The 364
number and type of [state] contracts of each state contracting agency 365
currently in effect state-wide; [(2)] (B) the term and dollar value of such 366
contracts; [(3)] (C) a list of client agencies; [(4)] (D) a description of 367
services purchased under such contracts; [(5)] (E) contractor names; [(6)] 368
(F) an evaluation of contractor performance, including, but not limited 369
to records pertaining to the suspension or disqualification of 370
contractors, and assuring such information is available on the State 371
Contracting Portal; and [(7)] (G) a list of contracts and contractors 372
awarded without full and open competition stating the reasons [for] 373
therefor and identifying the approving authority; and 374
[(k) Provide] (11) To provide the Governor and the joint standing 375
committee of the General Assembly having cognizance of matters 376
relating to government administration with recommendations 377
concerning the statutes and regulations concerning procurement. 378
Sec. 6. Subsections (a) to (c), inclusive, of section 4e-5 of the general 379
statutes are repealed and the following is substituted in lieu thereof 380
(Effective July 1, 2025): 381
(a) (1) The head of each state contracting agency shall appoint an 382
agency procurement officer. Such officer shall serve as the liaison 383
between the agency and the Chief Procurement Officer on all matters 384 Substitute Bill No. 1499
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relating to the agency's procurement activity, including, but not limited 385
to, implementation and compliance with the provisions of statutes and 386
regulations concerning procurement and any policies or regulations 387
adopted by the board, coordination of the training and education of 388
agency procurement employees and any person serving on the 389
Contracting Standards Advisory Council; 390
(2) The agency procurement officer shall be responsible for [assuring] 391
(A) ensuring that any invitation to bid, request for proposals or any 392
other solicitation for goods and services issued on or after July 1, 2025, 393
contains a notice of the rights of prospective bidders, proposers or 394
prospective contractors under section 4e-36, (B) ensuring that 395
contractors are properly screened prior to the award of a contract, (C) 396
ensuring that contractors are advised of their rights under section 4e-36, 397
prior to entering into a contract on or after July 1, 2025, (D) ensuring 398
that, upon the award of such a contract, unsuccessful bidders, proposers 399
or respondents are advised of their rights under section 4e-36, (E) 400
evaluating contractor performance during and at the conclusion of a 401
contract, (F) submitting written evaluations to a central data repository 402
to be designated by the board, and (G) creating a project management 403
plan for the agency with annual reports to the board pertaining to 404
procurement projects within the agency. 405
(b) The State Contracting Standards Board, with the advice and 406
assistance of the Commissioner of Administrative Services, shall 407
develop a standardized state procurement and project management 408
education and training program. Such education and training program 409
shall develop education, training and professional development 410
opportunities for employees of state contracting agencies charged with 411
procurement responsibilities. The education and training program shall 412
educate such employees in general business acumen and on proper 413
purchasing procedures as established in statutes and regulations 414
concerning procurement with an emphasis on ethics, fairness, 415
consistency and project management. Participation in the education and 416
training program shall be required of any supervisory and 417
nonsupervisory state employees in state contracting agencies with 418 Substitute Bill No. 1499
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responsibility for buying, purchasing, renting, leasing or otherwise 419
acquiring any supplies, service or construction, including the 420
preparation of the description of requirements, selection and solicitation 421
of sources, preparation and award of contracts and all phases of contract 422
administration. 423
(c) The education and training program shall include, but shall not be 424
limited to, (1) training and education concerning federal, state and 425
municipal procurement processes, including the statutes and 426
regulations concerning procurement; (2) training and education courses 427
developed in cooperation with the Office of State Ethics, the Freedom of 428
Information Commission, the State Elections Enforcement Commission, 429
the Commission on Human Rights and Opportunities, the office of the 430
Attorney General and any other state agency the board determines is 431
necessary in carrying out statutes and regulations concerning 432
procurement; (3) [providing] technical assistance to state contracting 433
agencies and municipalities for implementing statutes and regulations 434
concerning procurement, regulations, policies and standards developed 435
by the board; (4) training [to] of current and prospective contractors and 436
vendors and others seeking to do business with [the] state contracting 437
agencies; and (5) training and education of state employees and quasi-438
public agencies in the area of best procurement practices in [state] 439
purchasing with the goal of achieving the level of acumen necessary to 440
achieve the objectives of statutes and regulations concerning 441
procurement. 442
Sec. 7. Subsection (a) of section 4e-7 of the general statutes is repealed 443
and the following is substituted in lieu thereof (Effective July 1, 2025): 444
(a) For cause, the State Contracting Standards Board may review, 445
terminate or recommend to a state contracting agency the termination 446
of any contract or procurement agreement undertaken by any state 447
contracting agency after providing fifteen days' notice to the state 448
contracting agency and the applicable contractor, and consulting with 449
the Attorney General. Such termination of a contract or procurement 450
agreement by the board may occur only after (1) the board has consulted 451 Substitute Bill No. 1499
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with the state contracting agency to determine the impact of an 452
immediate termination of the contract, (2) a determination has been 453
made jointly by the board and the state contracting agency that an 454
immediate termination of the contract will not create imminent peril to 455
the public health, safety or welfare, (3) a vote of two-thirds of the 456
members of the board present and voting for that purpose, and (4) the 457
board has provided the state contracting agency and the contractor with 458
opportunity for a hearing conducted pursuant to the provisions of 459
chapter 54. Such action shall be accompanied by notice to the state 460
contracting agency and any other affected party. For the purpose of this 461
section, "for cause" means: (A) A violation of section 1-84 or 1-86e, as 462
determined by the Citizen's Ethics Advisory Board; (B) wanton or 463
reckless disregard of any state or quasi-public agency contracting and 464
procurement process by any person substantially involved in such 465
contract or state contracting agency; or (C) notification from the 466
Attorney General to the state contracting agency that an investigation 467
pursuant to section 4-61dd has concluded that the process by which 468
such contract was awarded was compromised by fraud, collusion or any 469
other criminal violation. Nothing in this section shall be construed to 470
limit the authority of the board as described in section 4e-6. 471
Sec. 8. Section 4e-8 of the general statutes is repealed and the 472
following is substituted in lieu thereof (Effective July 1, 2025): 473
There is established a Contracting Standards Advisory Council, 474
which shall consist of representatives from the Office of Policy and 475
Management, Departments of Administrative Services and 476
Transportation, [and] representatives of at least three additional state 477
contracting agencies that are not quasi-public agencies, including at 478
least one human services related state agency, to be designated by the 479
Governor and at least four additional state contracting agencies that are 480
quasi-public agencies, two to be appointed by the speaker of the House 481
of Representatives and two to be appointed by the president pro 482
tempore of the Senate. The Chief Procurement Officer shall be a member 483
of the council and serve as chairperson. The advisory council shall meet 484
at least four times per year to discuss state contracting agency 485 Substitute Bill No. 1499
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procurement issues and to make recommendations for improvement of 486
[the] procurement processes to the State Contracting Standards Board. 487
The advisory council may conduct studies, research and analyses and 488
make reports and recommendations with respect to subjects or matters 489
within the jurisdiction of the State Contracting Standards Board. 490
Sec. 9. Subsection (a) of section 4e-10 of the general statutes is 491
repealed and the following is substituted in lieu thereof (Effective July 1, 492
2025): 493
(a) On or before July 1, 2010, the board shall submit to the Governor 494
and the General Assembly such legislation as is necessary to permit state 495
contracting agencies, not including [quasi-publics] quasi-public 496
agencies, institutions of higher education, and municipal procurement 497
processes utilizing state funds, to carry out their functions under 498
statutes and regulations concerning procurement. 499
Sec. 10. Section 4e-14 of the general statutes is repealed and the 500
following is substituted in lieu thereof (Effective July 1, 2025): 501
On and after June 1, 2010, all [state] contracts of each state contracting 502
agency that is not a quasi-public agency that take effect on or after June 503
1, 2010, shall contain provisions to ensure accountability, transparency 504
and [results based] results-based outcomes, as prescribed by the State 505
Contracting Standards Board. On and after June 1, 2010, all state 506
contracts of the legislative branch and the judicial branch that take effect 507
on or after June 1, 2010, shall contain provisions to ensure 508
accountability, transparency and [results based] results-based 509
outcomes. On and after July 1, 2025, all contracts of each state 510
contracting agency that is a quasi-public agency that take effect on or 511
after July 1, 2025, shall contain provisions to ensure accountability, 512
transparency and results-based outcomes. 513
Sec. 11. Subsections (c) and (d) of section 4e-16 of the general statutes 514
are repealed and the following is substituted in lieu thereof (Effective July 515
1, 2025): 516 Substitute Bill No. 1499
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(c) (1) If such cost-benefit analysis identifies a cost savings to the state 517
contracting agency of ten per cent or more, and such privatization 518
contract will not diminish the quality of such service, the state 519
contracting agency shall develop a business case, in accordance with the 520
provisions of subsection (d) of this section, in order to evaluate the 521
feasibility of entering into any such contract and to identify the potential 522
results, effectiveness and efficiency of such contract. 523
(2) If such cost-benefit analysis identifies a cost savings of less than 524
ten per cent to the state contracting agency and such privatization 525
contract will not diminish the quality of such service, the state 526
contracting agency may develop a business case, in accordance with the 527
provisions of subsection (d) of this section, in order to evaluate the 528
feasibility of entering into any such contract and to identify the potential 529
results, effectiveness and efficiency of such contract, provided there is a 530
significant public policy reason to enter into such privatization contract. 531
Any such business case shall be approved in accordance with the 532
provisions of subdivision (4) of subsection (h) of this section. 533
(3) If any such proposed privatization contract would result in the 534
layoff, transfer or reassignment of [one hundred] twenty-five or more 535
state contracting agency employees, after consulting with the 536
potentially affected bargaining units, if any, the state contracting agency 537
shall notify the state employees or quasi-public agency employees of 538
such bargaining unit, as applicable, after such cost-benefit analysis is 539
completed. Such state contracting agency shall provide an opportunity 540
for [said] such employees to reduce the costs of conducting the 541
operations to be privatized and provide reasonable resources for the 542
purpose of encouraging and assisting such state or quasi-public agency 543
employees to organize and submit a bid to provide the services that are 544
the subject of the potential privatization contract. The state contracting 545
agency shall retain sole discretion in determining whether to proceed 546
with the privatization contract, provided the business case for such 547
contract is approved by the board. 548
(d) Any business case developed by a state contracting agency for the 549 Substitute Bill No. 1499
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purpose of complying with subsection (c) of this section shall include: 550
(1) The cost-benefit analysis as described in subsection (b) of this section, 551
(2) a detailed description of the service or activity that is the subject of 552
such business case, (3) a description and analysis of the state contracting 553
agency's current performance of such service or activity, (4) the goals to 554
be achieved through the proposed privatization contract and the 555
rationale for such goals, (5) a description of available options for 556
achieving such goals, (6) an analysis of the advantages and 557
disadvantages of each option, including, at a minimum, potential 558
performance improvements and risks attendant to termination of the 559
contract or rescission of such contract, (7) an analysis of the potential 560
impact of the proposed privatization contract on workers of color and 561
workers who are women, including whether such privatization contract 562
will lessen or increase historical patterns that produce inequities 563
between such workers and other workers, (8) an analysis of the 564
qualitative impact of the proposed privatization contract on the existing 565
state workforce, (9) a description of the current market for the services 566
or activities that are the subject of such business case, [(8)] (10) an 567
analysis of the quality of services as gauged by standardized measures 568
and key performance requirements including compensation, turnover, 569
and staffing ratios, [(9)] (11) a description of the specific results-based 570
performance standards that shall, at a minimum be met, to ensure 571
adequate performance by any party performing such service or activity, 572
[(10)] (12) the projected time frame for key events from the beginning of 573
the procurement process through the expiration of a contract, if 574
applicable, [(11)] (13) a specific and feasible contingency plan that 575
addresses contractor nonperformance and a description of the tasks 576
involved in and costs required for implementation of such plan, and 577
[(12)] (14) a transition plan, if appropriate, for addressing changes in the 578
number of agency personnel, affected business processes, employee 579
transition issues, and communications with affected stakeholders, such 580
as agency clients and members of the public, if applicable. Such 581
transition plan shall contain a reemployment and retraining assistance 582
plan for employees who are not retained by the state or quasi-public 583
agency or employed by the contractor. If the primary purpose of the 584 Substitute Bill No. 1499
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proposed privatization contract is to provide a core governmental 585
function, such business case shall also include information sufficient to 586
rebut the presumption that such core governmental function should not 587
be privatized. Such presumption shall not be construed to prohibit a 588
state contracting agency from contracting for specialized technical 589
expertise not available within such agency, provided such agency shall 590
retain responsibility for such core governmental function. For the 591
purposes of this section, "core governmental function" means a function 592
for which the primary purpose is (A) the inspection for adherence to 593
health and safety standards because public health or safety may be 594
jeopardized if such inspection is not done or is not done in a timely or 595
proper manner, (B) the establishment of statutory, regulatory or 596
contractual standards to which a regulated person, entity or state 597
contractor shall be held, (C) the enforcement of statutory, regulatory or 598
contractual requirements governing public health or safety, [or] (D) 599
criminal or civil law enforcement, or (E) the provision of essential 600
human services to residents of the state who would otherwise lack the 601
support necessary to assure basic human needs. If any part of such 602
business case is based upon evidence that the state contracting agency 603
is not sufficiently staffed to provide the core governmental function 604
required by the privatization contract, the state contracting agency shall 605
also include within such business case a plan for remediation of the 606
understaffing to allow such services to be provided directly by the state 607
contracting agency in the future. 608
Sec. 12. Subdivisions (2) to (4), inclusive, of subsection (l) of section 609
4e-16 of the general statutes are repealed and the following is 610
substituted in lieu thereof (Effective July 1, 2025): 611
(2) If such cost-benefit analysis identifies a ten per cent or more cost 612
savings to the state contracting agency from the use of such 613
privatization contract and such contract does not diminish the quality 614
of the service provided, such state contracting agency shall develop a 615
business case for the renewal of such privatization contract in 616
accordance with the provisions of subsections (d) and (e) of this section. 617
The board shall review such contract in accordance with the provisions 618 Substitute Bill No. 1499
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of subsections (f) to (h), inclusive, of this section and may approve such 619
renewal by the applicable vote of the board, provided any such renewal 620
that is estimated to cost in excess of one hundred fifty million dollars 621
annually or six hundred million dollars or more over the life of the 622
contract shall also be approved by the General Assembly prior to the 623
state contracting agency renewing such contract. If such renewal is 624
approved by the board and the General Assembly, if applicable, the 625
provisions of subsection (j) of this section shall apply to any proposed 626
amendment to such contract. 627
(3) If such cost-benefit analysis identifies a cost savings to the state 628
contracting agency of less than ten per cent, such state contracting 629
agency shall prepare a plan to have such service provided by state 630
employees, or, in the case of a state contracting agency that is a quasi-631
public agency, by the employees of the quasi-public agency, and shall 632
begin to implement such plan, provided: (A) While such plan is 633
prepared, but prior to implementation of such plan, such state 634
contracting agency may develop a business case for such privatization 635
contract, in accordance with the provisions of subsection (d) of this 636
section, that achieves a cost savings to the state contracting agency of 637
ten per cent or more. Any such business case shall be reviewed by the 638
board in accordance with the provisions of subsections (f) to (h), 639
inclusive, of this section, and may be approved by the applicable vote of 640
the board; (B) such privatization contract shall not be renewed with the 641
vendor currently providing such service unless: (i) There exists a 642
significant public interest in renewing such contract, and (ii) such 643
renewal is approved by a two-thirds vote of the board; (C) the state 644
contracting agency may enter into a contract with a term of one year or 645
less for the provision of such service until such state contracting agency 646
implements such plan; and (D) the procedure for the transfer of funds 647
from the General Fund, as described in section 4-94, may be utilized to 648
allocate necessary resources for the implementation of the provisions of 649
this subdivision. 650
(4) Notwithstanding the provisions of subdivision (3) of this 651
subsection, the renewal of a privatization contract with a nonprofit 652 Substitute Bill No. 1499
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organization shall not be denied if the cost of increasing compensation 653
to employees performing the privatized service is the sole cause for such 654
contract not achieving a cost savings to the state contracting agency of 655
ten per cent or more. 656
Sec. 13. Subsection (n) of section 4e-16 of the general statutes is 657
repealed and the following is substituted in lieu thereof (Effective July 1, 658
2025): 659
(n) The State Contracting Standards Board, in consultation with the 660
Department of Administrative Services, shall: (1) Recommend and 661
implement standards and procedures for state contracting agencies to 662
develop business cases in connection with privatization contracts, 663
including templates for use by state contracting agencies when 664
submitting business cases to the board, and policies and procedures to 665
guide state contracting agencies to complete such business cases, and (2) 666
develop guidelines and procedures for assisting state employees or 667
quasi-public agency employees whose jobs are affected by a 668
privatization contract. 669
Sec. 14. Subsection (p) of section 4e-16 of the general statutes is 670
repealed and the following is substituted in lieu thereof (Effective July 1, 671
2025): 672
(p) Prior to entering into or renewing any privatization contract that 673
is not subject to the provisions of subsection (a) of this section, the state 674
contracting agency shall evaluate such contract to determine if entering 675
into or renewing such contract is the most cost-effective method of 676
delivering the service, by determining the costs, as defined in subsection 677
(b) of this section, of such service. The state contracting agency shall 678
perform such evaluation in accordance with a template prescribed by 679
the Secretary of the Office of Policy and Management, in consultation 680
with the board, pursuant to subsection (m) of this section, and such 681
evaluation shall be [subject to verification by the secretary] submitted to 682
the board. The secretary may, in consultation with the Chief 683
Procurement Officer of the board, waive the requirement for an 684 Substitute Bill No. 1499
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evaluation of cost-effectiveness under this subsection upon a finding by 685
the secretary that exigent or emergent circumstances necessitate such 686
waiver. 687
Sec. 15. Section 4e-17 of the general statutes is repealed and the 688
following is substituted in lieu thereof (Effective July 1, 2025): 689
(a) Except as otherwise provided, the provisions of sections 4e-16 to 690
4e-47, inclusive, as amended by this act, shall apply to all contracts 691
solicited or entered into by [state contracting agencies] a state 692
contracting agency that is a state agency after June 1, 2010, and all 693
contracts solicited or entered into by a state contracting agency that is a 694
quasi-public agency on or after July 1, 2025. 695
(b) Except as otherwise provided, the provisions of sections 4e-16 to 696
4e-47, inclusive, as amended by this act, shall apply to every 697
expenditure of public funds by any state contracting agency, 698
irrespective of their source, involving any state contracting agency 699
contracting and procurement processes, including, but not limited to, 700
leasing and property transfers, purchasing or leasing of supplies, 701
materials or equipment, consultant or consultant services, personal 702
service agreements, purchase of service agreements or privatization 703
contracts, [as defined in section 4e-1,] and, relating to contracts for the 704
construction, reconstruction, alteration, remodeling, repair or 705
demolition of any public building, bridge or road. 706
(c) Nothing in sections 4e-16 to 4e-47, inclusive, as amended by this 707
act, shall be construed to require the application of procurement statutes 708
or regulations to a procurement that involves the expenditure of federal 709
assistance or federal contract funds if federal law provides procurement 710
procedures applicable to the expenditure of such funds, to the extent 711
such federal procedures are inconsistent with state procurement 712
statutes or regulations. 713
Sec. 16. Section 4e-18 of the general statutes is repealed and the 714
following is substituted in lieu thereof (Effective July 1, 2025): 715 Substitute Bill No. 1499
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For the purpose of obtaining supplies, materials, equipment or 716
contractual services, except infrastructure facilities, the Commissioner 717
of Administrative Services shall establish a requisition system to be used 718
by state contracting agencies that are not quasi-public agencies to 719
initiate and authorize the procurement process. Such system shall be 720
approved by the State Contracting Standards Board. 721
Sec. 17. Subsection (c) of section 4e-21 of the general statutes is 722
repealed and the following is substituted in lieu thereof (Effective July 1, 723
2025): 724
(c) The State Contracting Standards Board, in consultation with the 725
Commissioner of Administrative Services, may waive the requirement 726
of competitive bidding or competitive negotiation in the case of minor, 727
nonrecurring or emergency purchases of ten thousand dollars or less in 728
amount, upon application of the state contracting agency. Any state 729
contracting agency that obtains such a waiver for such an emergency 730
purchase shall post notice of such emergency purchase on the Internet 731
web site of the state contracting agency prior to making such emergency 732
purchase. 733
Sec. 18. Section 4e-24 of the general statutes is repealed and the 734
following is substituted in lieu thereof (Effective July 1, 2025): 735
(a) [Not later than June 1, 2010, the State Contracting Standards 736
Board, in consultation with the Commissioner of Administrative 737
Services and any other appropriate award authority, shall adopt 738
regulations, in accordance with the provisions of chapter 54, permitting] 739
If an emergency [procurements when there exists] procurement is 740
deemed necessary by a state contracting agency due to a threat to public 741
health, welfare or safety, the state contracting agency shall give notice 742
to the board of the need for such emergency procurement. Such 743
emergency [procurements] procurement shall be made with 744
competition, as is practicable under the circumstances. [Said regulations 745
shall require that] The state contracting agency shall (1) include a 746
written determination of the basis for the emergency and for the 747 Substitute Bill No. 1499
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selection of the particular contractor [be included] in the contract file, 748
[and transmitted] (2) transmit such determination to the Governor, the 749
president pro tempore of the Senate, the majority and minority leaders 750
of the Senate, the speaker of the House of Representatives and the 751
majority and minority leaders of the House of Representatives, and (3) 752
post such determination on the Internet web site of the state contracting 753
agency. 754
(b) The State Contracting Standards Board may adopt regulations in 755
accordance with the provisions of chapter 54 to implement the 756
provisions of this section. 757
Sec. 19. Section 4e-27 of the general statutes is repealed and the 758
following is substituted in lieu thereof (Effective July 1, 2025): 759
Not later than June 1, 2010, the State Contracting Standards Board, in 760
consultation with the Attorney General, shall adopt regulations, in 761
accordance with the provisions of chapter 54, specifying the types of 762
contracts that may be used by state contracting agencies. Such 763
regulations shall specify that a cost-reimbursement contract may be 764
used only when a determination is made in writing by the agency 765
procurement officer that such contract is likely to be less costly to the 766
state contracting agency than any other type or that it is impracticable 767
to obtain the supplies, services or construction required except under 768
such a contract. 769
Sec. 20. Subsection (a) of section 4e-30 of the general statutes is 770
repealed and the following is substituted in lieu thereof (Effective July 1, 771
2025): 772
(a) A state contracting agency shall evaluate the financial condition 773
of all bidders or proposers prior to selecting a bidder or proposer to 774
perform a contract or subcontract. A state contracting agency may audit 775
the books and records of a contractor or any subcontractor under any 776
negotiated contract or subcontract to the extent that such books and 777
records relate to the performance of such contract or subcontract. Such 778
books and records shall be maintained by the contractor for a period of 779 Substitute Bill No. 1499
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three years from the date of final payment under the prime contract and 780
by the subcontractor for a period of three years from the expiration of 781
the subcontract. 782
Sec. 21. Section 4e-31 of the general statutes is repealed and the 783
following is substituted in lieu thereof (Effective July 1, 2025): 784
When, for any reason, collusion or other anticompetitive practices are 785
suspected among any bidders or proposers for [a state] the contract of a 786
state contracting agency, a notice of the relevant facts shall be 787
transmitted to the Attorney General by any affected party, including, 788
but not limited to, the state contracting agency, a bidder or a proposer. 789
Sec. 22. Section 4e-34 of the general statutes is repealed and the 790
following is substituted in lieu thereof (Effective July 1, 2025): 791
(a) After reasonable notice and hearing and consultation with the 792
relevant state contracting agency and the Attorney General, the State 793
Contracting Standards Board, acting through a subcommittee of three 794
members, appointed by the chairperson, which subcommittee shall 795
include not less than one legislative appointee, may disqualify any 796
contractor, bidder or proposer, for a period of not more than five years, 797
from bidding on, applying for or participating as a contractor or 798
subcontractor under, contracts with [the state] a state contracting 799
agency. Such disqualification shall be upon the vote of two-thirds of the 800
members of the subcommittee present and voting for that purpose. Such 801
hearing shall be conducted in accordance with the provisions of chapter 802
54. The subcommittee shall issue a written recommendation not later 803
than sixty days after the conclusion of such hearing, and shall state the 804
reason for the recommended action and, if the disqualification is 805
recommended, the period of time the contractor, bidder or proposer 806
shall be disqualified. In determining whether to disqualify a contractor, 807
bidder or proposer, the subcommittee shall consider the seriousness of 808
the acts or omissions of the contractor, bidder or proposer and any 809
mitigating factors. Such recommendation shall be submitted to the 810
board for action and sent to the contractor by certified mail, return 811 Substitute Bill No. 1499
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receipt requested. If disqualification is recommended, the contractor 812
shall have thirty days to submit comments to the board. Upon receipt of 813
the proposed recommendation by the subcommittee, the board shall 814
issue a written decision either adopting, rejecting or modifying the 815
subcommittee's recommendation. Such decision shall be issued not later 816
than thirty days after receipt by the board of the contractor's comments, 817
if any. The board shall send the decision to the contractor by certified 818
mail, return receipt requested. The written decision shall be a final 819
decision for purposes of sections 4-180 and 4-183. 820
(b) Causes for such disqualification shall include the following: 821
(1) Conviction of, or entry of a plea of guilty or nolo contendere or 822
admission to, the commission of a criminal offense as an incident to 823
obtaining or attempting to obtain a public or private contract or 824
subcontract, or in the performance of such contract or subcontract; 825
(2) Conviction of, or entry of a plea of guilty or nolo contendere or 826
admission to, the violation of any state or federal law for embezzlement, 827
theft, forgery, bribery, falsification or destruction of records, receiving 828
stolen property or any other offense indicating a lack of business 829
integrity or business honesty which affects responsibility as a state 830
contractor; 831
(3) Conviction of, or entry of a plea of guilty or nolo contendere or 832
admission to, a violation of any state or federal antitrust, collusion or 833
conspiracy law arising out of the submission of bids or proposals on a 834
public or private contract or subcontract; 835
(4) Accumulation of two or more suspensions pursuant to section 4e-836
35, as amended by this act, within a twenty-four-month period; 837
(5) A wilful, negligent or reckless failure to perform in accordance 838
with the terms of one or more contracts or subcontracts, agreements or 839
transactions with state contracting agencies; 840
(6) A history of failure to perform or of unsatisfactory performance 841 Substitute Bill No. 1499
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on one or more public contracts, agreements or transactions with state 842
contracting agencies; 843
(7) A wilful violation of a statutory or regulatory provision or 844
requirement applicable to a contract, agreement or transaction with 845
state contracting agencies; 846
(8) A wilful or egregious violation of the ethical standards set forth in 847
sections 1-84, 1-86e and 1-101nn, as determined by the Citizen's Ethics 848
Advisory Board; or 849
(9) Any other cause or conduct the board determines to be so serious 850
and compelling as to affect responsibility as a [state] contractor, 851
including, but not limited to: 852
(A) Disqualification by another state for cause; 853
(B) The fraudulent or criminal conduct of any officer, director, 854
shareholder, partner, employee or other individual associated with a 855
contractor, bidder or proposer of such contractor, bidder or proposer; [, 856
provided such conduct occurred in connection with the individual's 857
performance of duties for or on behalf of such contractor, bidder or 858
proposer and such contractor, bidder or proposer knew or had reason 859
to know of such conduct;] 860
(C) The existence of an informal or formal business relationship with 861
a contractor who has been disqualified from bidding or proposing on 862
[state] contracts of any state contracting agency. 863
(c) Upon written request by the affected [state] contractor, bidder or 864
proposer, the State Contracting Standards Board may reduce the period 865
or extent of disqualification for a contractor, bidder or proposer if 866
documentation supporting any of the following reasons for 867
modification is provided to the board by the contractor, bidder or 868
proposer: 869
(1) Newly discovered material evidence; 870 Substitute Bill No. 1499
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(2) Reversal of the conviction upon which the disqualification was 871
based; 872
(3) Bona fide change in ownership or management; or 873
(4) Elimination of other causes for which the disqualification was 874
imposed. 875
Sec. 23. Section 4e-35 of the general statutes is repealed and the 876
following is substituted in lieu thereof (Effective July 1, 2025): 877
(a) For purposes of this section and sections 4e-37, as amended by this 878
act, and 4e-38, as amended by this act, "contracting agency of the state" 879
does not include a quasi-public agency. After reasonable notice and a 880
hearing, conducted in accordance with the provisions of chapter 54, the 881
department head of any [state] contracting agency of the state may 882
suspend any contractor, bidder or proposer for a period of not more 883
than six months from bidding on, applying for or performing work as a 884
contractor or subcontractor under, contracts with the state. The 885
department head shall issue a written decision not later than ninety days 886
after the conclusion of such hearing and state in the decision the reasons 887
for the action taken and, if the contractor, bidder or proposer is being 888
suspended, the period of such suspension. In determining whether to 889
suspend a contractor, bidder or proposer, the department head shall 890
consider the seriousness of the acts or omissions of the contractor, 891
bidder or proposer and any mitigating factors. The department head 892
shall send such decision to the contractor and the State Contracting 893
Standards Board by certified mail, return receipt requested. Such 894
decision shall be a final decision for purposes of sections 4-180 and 4-895
183. 896
(b) Causes for such suspension shall include the following: 897
(1) Failure without good cause to perform in accordance with 898
specifications or within the time limits provided in the contract; 899
(2) A record of failure to perform or of unsatisfactory performance in 900 Substitute Bill No. 1499
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accordance with the terms of one or more contracts, provided failure to 901
perform or unsatisfactory performance caused by acts beyond the 902
control of the contractor shall not be considered to be a basis for 903
suspension; 904
(3) Any cause the complainant [state] contracting agency of the state 905
determines to be so serious and compelling as to affect the responsibility 906
of a state contractor, including suspension by another [state] contracting 907
agency of the state for cause; or 908
(4) A violation of the ethical standards set forth in section 1-84, 1-86e 909
or 1-101nn, as determined by the Citizen's Ethics Advisory Board. 910
(c) The State Contracting Standards Board may grant an exception 911
permitting a suspended contractor to participate in a particular contract 912
or subcontract upon a written determination by the board that there is 913
good cause for such exception and that such exception is in the best 914
interest of the state. 915
(d) The department head of each [state] contracting agency of the 916
state shall conduct reviews of contractors and shall file reports 917
pertaining to any of the reasons set forth in this section that may be the 918
basis for disqualification. 919
Sec. 24. Subsections (g) to (i), inclusive, of section 4e-37 of the general 920
statutes are repealed and the following is substituted in lieu thereof 921
(Effective July 1, 2025): 922
(g) In the event that the appeals review subcommittee or the board 923
determines that a procedural violation occurred, or that allegations of 924
an unauthorized or unwarranted, noncompetitive selection process 925
have been substantiated, the board shall direct the [state] contracting 926
agency of the state to take corrective action not later than thirty days 927
after the date of the subcommittee's or board's decision, as applicable. 928
(h) In the event such appeal is found to be frivolous by the appeals 929
review subcommittee or the full board, such frivolous appeal may serve 930 Substitute Bill No. 1499
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as a basis for disqualification pursuant to section 4e-34, as amended by 931
this act. 932
(i) Any three members of the board may request a full board review 933
of any contract deliberation or award process of a [state] contracting 934
agency of the state. 935
Sec. 25. Section 4e-38 of the general statutes is repealed and the 936
following is substituted in lieu thereof (Effective July 1, 2025): 937
The State Contracting Standards Board shall issue a decision in 938
writing or take other appropriate action on each appeal submitted 939
pursuant to section 4e-37, as amended by this act. A copy of any decision 940
shall be provided to all parties, the department head of the [state] 941
contracting agency of the state and the Chief Procurement Officer. 942
Sec. 26. Subdivision (2) of section 4e-40 of the general statutes is 943
repealed and the following is substituted in lieu thereof (Effective July 1, 944
2025): 945
(2) If the person awarded the contract acted in bad faith: 946
(A) The contract may be declared null and void; or 947
(B) The contract may be ratified and affirmed if such action is in the 948
best interests of the state, as determined by the State Contracting 949
Standards Board, in writing, without prejudice to the [state's] state 950
contracting agency's right to such damages as may be appropriate. 951
Sec. 27. Section 4e-45 of the general statutes is repealed and the 952
following is substituted in lieu thereof (Effective July 1, 2025): 953
With respect to infrastructure facilities, not later than June 1, 2010, the 954
State Contracting Standards Board, in consultation with the state 955
contracting agencies and the Attorney General, shall adopt regulations, 956
in accordance with the provisions of chapter 54, requiring the inclusion 957
in [state] contracts with any state contracting agency of clauses 958
providing for adjustments in prices, time of performance, remedies, 959 Substitute Bill No. 1499
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termination or other contract provisions necessary to protect the 960
interests of the state. 961
Sec. 28. Section 4e-46 of the general statutes is repealed and the 962
following is substituted in lieu thereof (Effective July 1, 2025): 963
Not later than June 1, 2010, the State Contracting Standards Board 964
shall adopt regulations, in accordance with the provisions of chapter 54, 965
concerning the procedure and circumstances under which a state 966
contracting agency may allow contract modification, change order, or 967
contract price adjustment under a construction contract with the state 968
contracting agency in excess of fifty thousand dollars. Such regulations 969
shall require that every contract modification, change order or contract 970
price adjustment under a construction contract with [the] a state 971
contracting agency in excess of fifty thousand dollars shall be subject to 972
prior written certification by the fiscal officer of the state contracting 973
agency or other agency responsible for funding the project or the 974
contract, or other official responsible for monitoring and reporting upon 975
the status of the costs of the total project budget or contract budget, as 976
to the effect of the contract modification, change order, or adjustment in 977
contract price on the total project budget or the total contract budget. 978
Such regulations shall further provide that in the event the certification 979
of the fiscal officer or other responsible official discloses a resulting 980
increase in the total project budget or the total contract budget, the 981
agency procurement officer shall not execute or make such contract 982
modification, change order, or adjustment in contract price unless 983
sufficient funds are available or the scope of the project or contract is 984
adjusted so as to permit the degree of completion that is feasible within 985
the total project budget or total contract budget as it existed prior to the 986
contract modification, change order, or adjustment in contract price 987
under consideration provided, with respect to the validity, as to the 988
contractor, of any executed contract modification, change order, or 989
adjustment in contract price which the contractor has reasonably relied 990
upon, it shall be presumed that there has been compliance with the 991
provisions of this section. 992 Substitute Bill No. 1499
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Sec. 29. Subsection (a) of section 4e-48 of the general statutes is 993
repealed and the following is substituted in lieu thereof (Effective July 1, 994
2025): 995
(a) For the purposes of this section, "nonresident bidder" means a 996
business that is not a resident of the state that submits a bid in response 997
to an invitation to bid by a state contracting agency, "resident bidder" 998
means a business that submits a bid in response to an invitation to bid 999
by a state contracting agency and that has paid unemployment taxes or 1000
income taxes in this state during the twelve calendar months 1001
immediately preceding submission of such bid, has a business address 1002
in the state and has affirmatively claimed such status in the bid 1003
submission, and "contract" [means "contract" as defined in section 4e-1 1004
and "state contracting agency" means] and "state contracting agency" [, 1005
as defined] have the same meanings as provided in section 4e-1, as 1006
amended by this act. 1007
Sec. 30. Section 4e-72 of the general statutes is repealed and the 1008
following is substituted in lieu thereof (Effective July 1, 2025): 1009
As used in this section, "contract", "state contracting agency", "data" 1010
and "contractor" have the same meanings as provided in section 4e-1, as 1011
amended by this act. Any contract between a state contracting agency 1012
and a contractor that is entered into, renewed or amended on or after 1013
October 1, 2021, or, in the case of a state contracting agency that is a 1014
quasi-public agency, entered into, renewed or amended on or after July 1015
1, 2025, shall contain a provision authorizing the state contracting 1016
agency to access any data concerning such contract that is in the 1017
possession or control of the contractor upon demand in a format 1018
prescribed by the state contracting agency at no additional cost to such 1019
agency. 1020
Sec. 31. Subdivision (15) of subsection (a) of section 15-31b of the 1021
general statutes is repealed and the following is substituted in lieu 1022
thereof (Effective July 1, 2025): 1023
(15) Invest in, acquire, lease, purchase, own, manage, hold and 1024 Substitute Bill No. 1499
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dispose of real property and lease, convey or deal in or enter into 1025
agreements with respect to such property on any terms necessary or 1026
incidental to carrying out the purposes of sections 15-31a to 15-31i, 1027
inclusive, provided such transactions shall not be subject to approval, 1028
review or regulation by any state agency pursuant to title 4b or any other 1029
provision of the general statutes, except (A) the authority shall not 1030
convey fee simple ownership in any property associated with the ports 1031
or harbors under its jurisdiction and control without the approval of the 1032
State Properties Review Board and the Attorney General, and (B) as 1033
provided in [subsection (c) of this section] chapter 62; and 1034
Sec. 32. Subsections (b) and (c) of section 15-31b of the general statutes 1035
are repealed and the following is substituted in lieu thereof (Effective July 1036
1, 2025): 1037
(b) The authority shall continue as long as it has bonds or other 1038
obligations outstanding and until its existence is terminated by law, 1039
provided no such termination shall affect any outstanding contractual 1040
obligation of the authority and the state shall succeed to the obligations 1041
of the authority under any contract. Upon the termination of the 1042
existence of the authority, all its rights and properties shall pass to, and 1043
be vested in, the state of Connecticut. 1044
[(c) On and after June 23, 2021, the authority shall be a state 1045
contracting agency for the purposes of chapter 62, except for the 1046
provisions of section 4e-16, and shall be subject to the authority of the 1047
State Contracting Standards Board established under section 4e-2.] 1048
Sec. 33. Section 10a-196 of the general statutes is repealed and the 1049
following is substituted in lieu thereof (Effective July 1, 2025): 1050
Sections 10a-176 to 10a-195, inclusive, shall be deemed to provide a 1051
complete, additional and alternative method for the doing of the things 1052
authorized thereby, and shall be regarded as supplemental and 1053
additional to powers conferred by other laws; provided the issuance of 1054
bonds and refunding bonds under the provisions of this chapter need 1055
not comply with the requirements of any other law applicable to the 1056 Substitute Bill No. 1499
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issuance of bonds including, particularly, title 42a; and provided in the 1057
construction and acquisition of a project pursuant hereto the authority 1058
need not comply with the requirements of chapter 50. Except as 1059
otherwise expressly provided in this chapter and the provisions of 1060
chapter 62 concerning state contracting agencies, none of the powers 1061
granted to the authority under the provisions of this chapter shall be 1062
subject to the supervision or regulation or require the approval or 1063
consent of any municipality or political subdivision or any commission, 1064
board, body, bureau, official or agency thereof or of the state. 1065
Sec. 34. Subsection (s) of section 10a-204b of the general statutes is 1066
repealed and the following is substituted in lieu thereof (Effective July 1, 1067
2025): 1068
(s) The provisions of this section shall be deemed to provide a 1069
complete, additional and alternative method for the actions and the 1070
things authorized thereby and shall be regarded as supplemental and 1071
additional to powers granted by other laws; the issuance of bonds, notes 1072
or other obligations under the provisions of this section need not comply 1073
with the requirements of any law applicable to the issuance of bonds, 1074
notes or other obligations. This section, being necessary for the welfare 1075
of the state and its inhabitants, shall be liberally construed to affect its 1076
purpose. None of the powers granted to the corporation or to any 1077
subsidiary created pursuant to subdivision (5) of section 10a-204 under 1078
the provisions of this section shall be subject to the supervision or 1079
regulation or require the approval or consent of any municipality or 1080
political subdivision or any department, division, commission, board, 1081
body, bureau, official or agency thereof or of the state, and the exercise 1082
thereof shall not cause the corporation or any such subsidiary to be 1083
construed to be an agency within the scope of chapter 54 or a 1084
department, institution or agency of the state, except that the 1085
corporation or any such subsidiary shall comply with the provisions of 1086
chapter 62 concerning state contracting agencies. 1087
Sec. 35. Section 10a-243 of the general statutes is repealed and the 1088
following is substituted in lieu thereof (Effective July 1, 2025): 1089 Substitute Bill No. 1499
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The provisions of this chapter shall be deemed to provide a complete, 1090
additional and alternative method for the actions of the things 1091
authorized thereby and shall be regarded as supplemental and 1092
additional to powers granted by other laws; the issuance of revenue 1093
bonds or notes and revenue refunding bonds or notes under the 1094
provisions of this chapter need not comply with the requirements of any 1095
other law applicable to the issuance of bonds or notes. This chapter, 1096
being necessary for the welfare of the state and its inhabitants, shall be 1097
liberally construed to effect its purpose. Except as otherwise expressly 1098
provided in this chapter and the provisions of chapter 62 concerning 1099
state contracting agencies, none of the powers granted to the authority 1100
under the provisions of this chapter shall be subject to the supervision 1101
or regulation or require the approval or consent of any municipality or 1102
political subdivision or any department, division, commission, board, 1103
body, bureau, official or agency thereof or of the state. The authority 1104
shall not be construed to be an agency within the scope of chapter 54 or 1105
a department, institution or agency of the state. 1106
Sec. 36. Subdivision (16) of subsection (b) of section 12-806 of the 1107
general statutes is repealed and the following is substituted in lieu 1108
thereof (Effective July 1, 2025): 1109
(16) To invest in, acquire, lease, purchase, own, manage, hold and 1110
dispose of real property and lease, convey or deal in or enter into 1111
agreements with respect to such property on any terms necessary or 1112
incidental to carrying out the purposes of sections 12-563a, 12-800 to 12-1113
818, inclusive, and sections 12-853 and 12-854, provided such 1114
transactions shall not be subject to approval, review or regulation 1115
pursuant to title 4b or any other statute by any state agency, except that 1116
real property transactions shall be subject to review by the State 1117
Properties Review Board and contracts shall be subject to the provisions 1118
of chapter 62 concerning state contracting agencies; 1119
Sec. 37. Section 12-815 of the general statutes is repealed and the 1120
following is substituted in lieu thereof (Effective July 1, 2025): 1121 Substitute Bill No. 1499
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(a) The corporation shall establish and adopt specific policies, rules 1122
and procedures on purchasing and contracting. Such policies, rules and 1123
procedures or amendments thereto shall be approved by a two-thirds 1124
vote of the entire board. Notwithstanding any other provision of law to 1125
the contrary, the corporation may enter into management, consulting 1126
and other agreements for the provision of goods, services and 1127
professional advisors necessary or useful in connection with the 1128
operation and management of the lottery (1) pursuant to a process of 1129
open or competitive bidding, provided (A) the corporation shall first 1130
determine the format, content and scope of any agreement for any 1131
procurement of goods or services, the conditions under which bidding 1132
will take place and the schedule and stipulations for contract award, and 1133
(B) the corporation may select the contractor deemed to have submitted 1134
the most favorable bid, considering price and other factors, when, in the 1135
judgment of the corporation, such award is in the best interests of the 1136
corporation, or (2) if the corporation, in its discretion, determines that, 1137
due to the nature of the agreement to be contracted for or procured, 1138
open or public bidding is either impracticable or not in the best interests 1139
of the corporation, by negotiation with such prospective providers as 1140
the corporation may determine. The terms and conditions of agreements 1141
and the fees or other compensation to be paid to such persons shall be 1142
determined by the corporation. The agreements entered into by the 1143
corporation in accordance with the provisions of this section shall not 1144
be subject to the approval of any state department, office or agency, 1145
except for the provisions concerning state contracting agencies in 1146
chapter 62 and as provided in regulations adopted by the Department 1147
of Consumer Protection. Nothing in this section shall be deemed to 1148
restrict the discretion of the corporation to utilize its own staff and 1149
workforce for the performance of any of its assigned responsibilities and 1150
functions whenever, in the discretion of the corporation, it becomes 1151
necessary, convenient or desirable to do so. Copies of all agreements of 1152
the corporation shall be maintained by the corporation at its offices as 1153
public records, subject to said exemption. 1154
(b) [The] Except for the provisions in chapter 62 concerning state 1155 Substitute Bill No. 1499
LCO 38 of 41
contracting agencies, the corporation shall not be subject to rules, 1156
regulations or restrictions on purchasing or procurement or the 1157
disposition of assets generally applicable to Connecticut state agencies, 1158
including those contained in titles 4a and 4b and the corresponding 1159
rules and regulations. The board shall adopt rules and procedures on 1160
purchasing, procurement and the disposition of assets applicable to the 1161
corporation. The adoption of such rules or procedures shall not be 1162
subject to chapter 54. Any such rules or procedures shall be a public 1163
record as defined in section 1-200. 1164
Sec. 38. Subdivision (14) of section 31-49h of the general statutes is 1165
repealed and the following is substituted in lieu thereof (Effective July 1, 1166
2025): 1167
(14) Make and enter into any contract or agreement necessary or 1168
incidental to the performance of its duties and execution of its powers. 1169
[The] Except for the provisions in chapter 62 concerning state 1170
contracting agencies, the contracts and agreements entered into by the 1171
authority shall not be subject to the approval of any other state 1172
department, office or agency, provided copies of all such contracts shall 1173
be maintained by the authority as public records, subject to the 1174
proprietary rights of any party to such contracts. No contract shall 1175
contain any provision in which any contractor derives any direct or 1176
indirect economic benefit from denying or otherwise influencing the 1177
outcome of any claim for benefits. The standard criteria for the 1178
evaluation of proposals relating to claims processing, web site 1179
development, database development, marketing and advertising, in the 1180
event the authority seeks the services of an outside contractor for such 1181
tasks, and for the evaluation of proposals relating to all other contracts 1182
in amounts equal to or exceeding two hundred fifty thousand dollars 1183
shall include, but need not be limited to: (A) Transparency, (B) cost, (C) 1184
efficiency of operations, (D) quality of work related to the contracts 1185
issued, (E) user experience, (F) accountability, and (G) a cost-benefit 1186
analysis documenting the direct and indirect costs of such contracts, 1187
including qualitative and quantitative benefits that will result from the 1188
implementation of such contracts. The establishment of additional 1189 Substitute Bill No. 1499
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standard criteria shall be approved by a two-thirds vote of the board 1190
after such criteria have been posted on a public Internet web site 1191
maintained by the authority for notice and comment for at least one 1192
week prior to such vote. 1193
Sec. 39. Subdivision (13) of section 38a-1083 of the general statutes is 1194
repealed and the following is substituted in lieu thereof (Effective July 1, 1195
2025): 1196
(13) Make and enter into any contract or agreement necessary or 1197
incidental to the performance of its duties and execution of its powers, 1198
including, but not limited to, an agreement with the Office of Health 1199
Strategy to use funds collected under this section for the operation of 1200
the all-payer claims database established under section 19a-755a and to 1201
receive data from such database. The contracts entered into by the 1202
exchange shall not be subject to the approval of any other state 1203
department, office or agency, provided copies of all contracts of the 1204
exchange shall be maintained by the exchange as public records, subject 1205
to the proprietary rights of any party to the contract, except (A) as 1206
provided in chapter 62, and (B) any agreement with the Office of Health 1207
Strategy shall be subject to approval by said office and the Office of 1208
Policy and Management and no portion of such agreement shall be 1209
considered proprietary; 1210
Sec. 40. Subsection (b) of section 46a-10b of the general statutes is 1211
repealed and the following is substituted in lieu thereof (Effective July 1, 1212
2025): 1213
(b) Notwithstanding the provisions of sections 4-212 to 4-219, 1214
inclusive, subdivision [(21)] (20) of section 4e-1, as amended by this act, 1215
and chapter 62a, not later than July 1, 2017, the Governor shall designate 1216
a nonprofit entity to serve as the Connecticut protection and advocacy 1217
system. 1218
Sec. 41. Subsection (e) of section 52-278n of the general statutes is 1219
repealed and the following is substituted in lieu thereof (Effective July 1, 1220
2025): 1221 Substitute Bill No. 1499
LCO 40 of 41
(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, 1222
of this section, no party may compel disclosure of the names and 1223
addresses of clients of an individual or entity that provides professional 1224
services, as defined in subdivision [(20)] (19) of section 4e-1, as amended 1225
by this act, when the disclosure of such names and addresses would 1226
constitute a violation of state or federal law, or the applicable rules of 1227
professional conduct governing such profession, as the case may be. 1228
Sec. 42. Subsection (c) of section 52-351b of the general statutes is 1229
repealed and the following is substituted in lieu thereof (Effective July 1, 1230
2025): 1231
(c) Notwithstanding the provisions of this section, no party may 1232
compel disclosure of the names and addresses of clients of an individual 1233
or entity that provides professional services, as defined in subdivision 1234
[(20)] (19) of section 4e-1, as amended by this act, when the disclosure of 1235
such names and addresses would constitute a violation of state or 1236
federal law, or the applicable rules of professional conduct governing 1237
such profession, as the case may be. 1238
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)
Sec. 13 July 1, 2025 4e-16(n)
Sec. 14 July 1, 2025 4e-16(p)
Sec. 15 July 1, 2025 4e-17 Substitute Bill No. 1499
LCO 41 of 41
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 Legislative Commissioners:
In Section 2(20), subparagraphs and clauses were added and the
provisions applied to the existing contracts of quasi-public agencies as
of July 1, 2025, to avoid potential impairment of contract issues.
GAE Joint Favorable Subst. -LCO