SB 462 — AN ACT ESTABLISHING THE OFFICE OF GOVERNMENT OVERSIGHT.

The human rights referee may order a state agency, quasi-public agency or Probate Court to produce (i) an employee of such agency, quasi-public agency or Probate Court to testify as a witness in any proceeding under this subdivision, or (ii) books, papers or other documents relevant to the complaint, withoutLCO issuing2841 a12 subpoena.of 19 Raised Bill No.

462 without issuing a subpoena.

If, after the hearing, the human rights referee finds a SB462violation, /the Filereferee No.may award the aggrieved employee reinstatement to the employee's former position, back pay and reestablishment of any employee benefits for which the employee would otherwise have been eligible if such violation had not occurred, reasonable attorneys' fees, and any other damages.

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569 violation, the referee may award the aggrieved employee reinstatement to the employee's former position, back pay and reestablishment of any employee benefits for which the employee would otherwise have been eligible if such violation had not occurred, reasonable attorneys' fees, and any other damages.

(4) In any proceeding under subdivision (2) or (3) of this subsection concerning a personnel action taken or threatened against any state or quasi-public agency employee or any employee of a large state contractor, which personnel action occurs not later than two years after theLCO employee2841 first13 transmits facts and information concerning a matter under subsection (a) of this19 sectionRaised orBill discloses information under subdivision (1) of this subsection to the [Auditors of Public Accounts] executive director, the Attorney General or an employee of a state agency, quasi-public agency or Probate Court, as applicable, there shall SB462 / File No.

569462 13the SB462employee Filefirst No.transmits facts and information concerning a matter under subsection (a) of this section or discloses information under subdivision (1) of this subsection to the [Auditors of Public Accounts] executive director, the Attorney General or an employee of a state agency, quasi-public agency or Probate Court, as applicable, there shall be a rebuttable presumption that the personnel action is in retaliation for the action taken by the employee under subsection (a) of this section or subdivision (1) of this subsection.

569 be a rebuttable presumption that the personnel action is in retaliation for the action taken by the employee under subsection (a) of this section or subdivision (1) of this subsection.

(g) On or before September first, annually, the [Auditors of Public Accounts] executive director shall submit, in accordance with the provisionsLCO of2841 section14 11-4a, to the clerk of each19 houseRaised ofBill theNo. General Assembly a report indicating the number of matters for which facts and information were transmitted to the [auditors] Office of Government Oversight pursuant to this section during the preceding state fiscal year and the disposition of each such matter.

SB462462 /provisions Fileof No.section 11-4a, to the clerk of each house of the General Assembly a report indicating the number of matters for which facts and information were transmitted to the [auditors] Office of Government Oversight pursuant to this section during the preceding state fiscal year and the disposition of each such matter.

569(h) 14Each SB462contract Filebetween No.a state or quasi-public agency and a large state contractor shall provide that, if an officer, employee or appointing authority of a large state contractor takes or threatens to take any personnel action against any employee of the contractor in retaliation for such employee's disclosure of information to any employee of the contracting state or quasi-public agency or the [Auditors of Public Accounts] executive director or the Attorney General under the provisions of subsection (a) or subdivision (1) of subsection (e) of this section, the contractor shall be liable for a civil penalty of not more than five thousand dollars for each offense, up to a maximum of twenty per cent of the value of the contract.

569 (h) Each contract between a state or quasi-public agency and a large state contractor shall provide that, if an officer, employee or appointing authority of a large state contractor takes or threatens to take any personnel action against any employee of the contractor in retaliation for such employee's disclosure of information to any employee of the contracting state or quasi-public agency or the [Auditors of Public Accounts] executive director or the Attorney General under the provisions of subsection (a) or subdivision (1) of subsection (e) of this section, the contractor shall be liable for a civil penalty of not more than five thousand dollars for each offense, up to a maximum of twenty per cent of the value of the contract.

(j) No person who, in good faith, discloses information in accordance withLCO the2841 provisions15 of this19 sectionRaised shallBill beNo. liable for any civil damages resulting from such good faith disclosure.

462 with the provisions of this section shall be liable for any civil damages resulting from such good faith disclosure.

(1) "Large state contract" means a contract having a value of five million dollars or more (A) between an entity and a state or quasi-public SB462agency, /or File(B) No.for the receipt of financial assistance by an entity from the state pursuant to title 32;

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569 agency, or (B) for the receipt of financial assistance by an entity from the state pursuant to title 32;

The human rights referee may order a state shellfish grounds lessee to produce (i) an employee of such lessee to testify as a witness in any proceeding under this subdivision, or (ii) books, papers orLCO other2841 documents16 relevantof to19 theRaised complaint,Bill withoutNo. issuing a subpoena.

462 or other documents relevant to the complaint, without issuing a subpoena.

If, after the hearing, the human rights referee finds a violation, the referee may award the SB462aggrieved /employee Filereinstatement No.to the employee's former position, back pay and reestablishment of any employee benefits for which the employee would otherwise have been eligible if such violation had not occurred, reasonable attorneys' fees and any other damages.

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569 aggrieved employee reinstatement to the employee's former position, back pay and reestablishment of any employee benefits for which the employee would otherwise have been eligible if such violation had not occurred, reasonable attorneys' fees and any other damages.

Subsection (f) of section 4-278 of the general statutes is repealedLCO andthefollowing2841 issubstituted17 inlieuthereof(EffectiveOctoberof 1,19 2026):Raised Bill No.

(f)462 Notwithstandingrepealed theandthefollowing provisionsissubstituted ofinlieuthereof(EffectiveOctober subsection1, (e)2026): of this section, where the action is one that the court finds to be based primarily on disclosures of specific information that was not provided by the person bringing the action relating to allegations or transactions (1) in a SB462 / File No.

569(f) 17Notwithstanding SB462the Fileprovisions No.of subsection (e) of this section, where the action is one that the court finds to be based primarily on disclosures of specific information that was not provided by the person bringing the action relating to allegations or transactions (1) in a criminal, civil or administrative hearing, (2) in a report, hearing, audit or investigation conducted by the General Assembly, a committee of the General Assembly, the Auditors of Public Accounts, the Office of Government Oversight, a state agency or a quasi-public agency, or (3) from the news media, the court may award from such proceeds to the person bringing the action such sums as it considers appropriate, but in no case more than ten per cent of the proceeds, taking into account the significance of the information and the role of the person bringing the action in advancing the case to litigation.

569 criminal, civil or administrative hearing, (2) in a report, hearing, audit or investigation conducted by the General Assembly, a committee of the General Assembly, the Auditors of Public Accounts, the Office of Government Oversight, a state agency or a quasi-public agency, or (3) from the news media, the court may award from such proceeds to the person bringing the action such sums as it considers appropriate, but in no case more than ten per cent of the proceeds, taking into account the significance of the information and the role of the person bringing the action in advancing the case to litigation.

ThisLCO act2841 shall18 takeof effect19 asRaised followsBill andNo. shall amend the following sections:

462 This act shall take effect as follows and shall amend the following sections:

5 October 1, 2026 1-101pp SB462Sec. / File No.

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569 Sec.

12 October 1, 2026 4-282(b) GAE Joint Favorable SB462APP /Joint FileFavorable No.LCO 2841 19 of 19

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569 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 27 $ FY 28 $ Legislative Mgmt.

GF - Cost 455,000 590,000 State Comptroller - Fringe GF - Cost 169,371 225,828 Benefits1 Note:

GF=General Fund Municipal Impact:

None Explanation The bill creates the Office of Government Oversight (OGO) to detect and prevent fraud, waste, and abuse and tasks the office with various requirements resulting in a cost to the Office of Legislative Management (OLM) .

To meet the requirements of the bill, the OGO will need to hire a director and four additional staff for a salary and other expenses cost of $455,000 in FY 27 and $590,000 in FY 28, along with associated fringe benefits of $169,371 in FY 27 and $225,828 in FY 28.

The Out Years 1The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 41.82% of payroll in FY 27.

2The bill requires the OGO to create a system of coordination for offices performing similar duties and auditing functions, approve audit programs, conduct inspections and investigations into expenditures of state funds and use of state-owned or leased property, adopt regulations, make recommendations to the CGA for the detection of fraud, and submit an annual report to the CGA.

3The OGO is within OLM for administrative purposes only.

Costs in FY 27 reflect nine months of expenditures due to the bill's 10/1/26 effective date.

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569 The annualized ongoing fiscal impact identified above would continue into the future subject to employee wage increases and inflation.

SB462 / File No.

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569 OLR Bill Analysis SB 462 AN ACT ESTABLISHING THE OFFICE OF GOVERNMENT OVERSIGHT.

SUMMARY This bill establishes the Office of Government Oversight (OGO) to detect and prevent fraud, waste, and abuse in (1) state personnel management;

(2) state property use and disposition;

and (3) the collection, disbursement, and expenditure of state and federal funds administered by state or quasi-public agencies (governmentalagencies).

It must also evaluate the economy, efficiency, and effectiveness of these agencies and private contractors providing government services.

The bill establishes OGO as an independent office under the Joint Committee on Legislative Management for administrative purposes only.

The bill also makes technical and conforming changes.

EFFECTIVE DATE:

October 1, 2026 § 1 — OGO EXECUTIVE DIRECTOR APPOINTMENT Under the bill, OGO is managed by an executive director.

The bill requires a committee of the House speaker, Senate president pro tempore, the minority leaders, and the chairs and ranking members of the Government Administration and Elections (GAE) Committee, to choose three candidatesto potentially serve inthisrole andsubmit these names to the Auditors of Public Accounts (APA).

The APA must then (1) choose a candidate within 90 days of receiving the names and (2) submit him or her for confirmation by the Senate or House under the procedures outlined in state law.

If the auditors fail to appoint someone by the deadline, the committee must choose a candidate by majority vote to submit for confirmation.

SB462 / File No.

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569 The director must be appointed based on integrity and demonstrated competence in the appropriate fields.

If confirmed, the director serves a five-yeartermoruntila successor isappointedinthesame wayoutlined above.

The APA may remove the director for cause, including for material neglect of duty, gross misconduct, or a felony conviction.

§ 2 — EXECUTIVE DIRECTOR AUTHORITY The bill allows the executive director to adopt regulations to implement the bill’s requirements for OGO and employ any necessary staff, within available appropriations.

He or she must also coordinate efforts, within available appropriations, between OGO and others with similar duties and internal auditing functions at governmental agencies.

This coordination may include continuous professional development, adopting guidelines and procedures, and organizing a communication network.

The bill specifies that internal auditors and support staff within agencies, although still assigned to their agencies, must have their internal audit program approved by the OGO director.

§§ 3 & 4 — EXECUTIVE DIRECTOR DUTIES Under the bill, the executive director must:

1.

conduct preemptive inspections, inquiries, and investigations regarding programs and operations that involve (a) collecting, administering, or expending state funds;

(b) the use and disposition of state-owned and -leased property;

or (c) state agency management practices and legal compliance;

2.

have access to all records, data, and material maintained by or available to (a) any governmental agency or (b) any person or organization involved in state employee management, or the funds or property described above (such as a contractor);

and 3.

report annually on OGO’s activities to the governor and Appropriations and GAE committees starting by October 31, (and the director may make additional reports as SB462 / File No.

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569 appropriate).

The executive director may:

1.

make recommendations to the governor and the legislature on the prevention and detection of fraud, waste, and abuse by governmental and non-governmental entities;

2.

assist or request assistance from any governmental agency, state employee, or contractor collecting or expending state funds or controlling state-owned or -leased property;

and 3.

apply to the Superior Court for subpoenas for witnesses and records.

The subpoenaed witnesses or records must be necessary to get information that is otherwise unavailable and is needed for the director to carry out his or her duties.

Before the court issues a subpoena, it must provide an opportunity to hear the executive director and the affected party.

The subpoena may not be issued unless the court certifies that the (1) targeted witness is, or documents are, reasonably necessary for the executive director to carry out his or her duties and (2) director made reasonable efforts to get the information before requesting the subpoena.

The director must also report findings of fact and recommendations to certain entities, as shown in the table below, if the executive director has certain reasonable beliefs.

Table:

Required Reporting by OGO Executive Director Person or Entity Receiving Report Reasonable Belief Under the Bill Chief state’s attorney or Office of StState law has been or is being violated Ethics (OSE) Attorney general (AG) Civil recovery proceedings are appropriate U.S.

attorney Federal law has been or is being violated or civil recovery proceedings are appropriate § 4 — FOIA EXEMPTION SB462 / File No.

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569 Under the bill, all OGO records relating to an actual or potential inspection, inquiry, or investigation are generally deemed confidential and not public records under the state’s Freedom of Information Act (FOIA).

The records generally become public (1) if the inspection, inquiry, or investigation is done and all criminal and civil actions are resolved or (2) as the executive director deems appropriate.

If state law requires the record to be confidential, the requirements and penalties that apply to its original holder apply to OGO and its executive director in the same way and extent.

Additionally, records are not deemedconfidential just because they have beensent tothedirector.

§§ 5-9 — GOVERNMENTAL REPORTING TO OGO By law, certain governmental entities may, or are required to, report certaininformationto certainauditing andenforcement entities.Thebill adds the OGO executive director to several of these existing provisions as an entity receiving information, including from:

1.

OSEonpossibleviolationsofthestate’sethics lawsorregulations (§ 5);

2.

the APA concerning the unauthorized, illegal, irregular, or unsafe handling or expenditure of governmental agency fundsor any breakdown in the safekeeping of any governmental resources (§ 7);

and 3.

trustees of state institutions, state department heads, boards, commissions, and other governmental agencies reporting certain data breaches or the mishandling of funds or any breakdowns described above (§ 8).

Relatedly,statelawalsooutlinesproceduresforrevokingorreducing public officials’ or state or municipal employees’ pension if they are convicted of certain crimes related to their public office.

By law, their pension may not be reduced or revoked if the court or the AG determines that the defendant voluntarily gave information to certain entities about crimes committed by other officials or employees to a SB462 / File No.

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569 greater extent than their own involvement (but before being aware of any criminal investigations).

The bill adds OGO to this list of entities (§ 6).

The bill also requires OGO, instead of the APA as under current law, to helpfoundations(generally nonprofitssupportingor improving state agencies) develop a written policy on (1) investigating certain misconduct, (2) prohibiting whistleblower retaliation, (3) penalties for false reporting, and (4) giving the policy to its employees (§ 9).

§ 10 — PUBLIC REPORTING TO OGO Under current law, any person having knowledge of corruption or certain other misconduct involving state agencies, large state contracts, or economic development funds may report this information to the APA.

The bill instead allows the reports to be brought to OGO.

Current law has certain procedures for the APA to report, review, andactonthisinformationincollaborationwiththeAG.Thebillinstead authorizes the OGO executive director to do these actions with the AG.

It also authorizes the director, instead of the APA, to reject these complaints and report to the AG the reason for the rejection or refer these complaints to the appropriate state agencies.

Relatedly, the bill requires the director, instead of the APA, to annually report to the legislature on these complaints.

Additionally, the law currently allows the revenue services commissioner to disclose tax returns and tax return information to the APA for completing reports to the AG if requested in writing.

The bill eliminates this authorization for the APA and instead gives it to OGO.

The bill otherwise generally replaces the APA with the OGO director in existing law’s whistleblower framework.

§§ 11 & 12 — FALSE CLAIMS ACT Relatedly, state law authorizes whistleblowers to get monetary awards as part of a false claims action, with the award being lower if the court determines that the case was primarily based on information from SB462 / File No.

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569 othersources(suchascertaingovernmentreports).The billexpandsthis to include information provided to OGO as part of its reports, hearings, audits, or investigations.

As under existing law for certain governmental public reports, hearings, audits, or investigations, the bill also generally authorizes the court to dismiss false claims act cases if they substantially repeat information already published by OGO.

BACKGROUND Related Bill sSB 324, reported favorably by the Government Oversight Committee, among other things, has substantially similar provisions.

COMMITTEE ACTION Government Administration and Elections Committee Joint Favorable Yea 19 Nay 0 (03/23/2026) SB462 / File No.

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