SB 424 — AN ACT PROHIBITING THE AWARD OF STATE PUBLIC WORKS CONTRACTS TO CONTRACTORS THAT HAVE BEEN CONVICTED OF A PUBLIC ENTITY CRIME.

AN ACT REQUIRINGPROHIBITING ATHE WRITTENAWARD CERTIFICATIONOF FROMSTATE PUBLIC WORKS CONTRACTS TO CONTRACTORS BIDDINGTHAT ONHAVE BEEN CONVICTED OF A PUBLIC WORKSENTITY PROJECTS.CRIME.

General Assembly   ProposedCommittee Bill No.

424   January Session, 2017   LCO No.

11685664   *01168**05664SB00424GAE* Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS   Introduced by:

  SEN.(GAE)   AN ACT PROHIBITING THE AWARD OF STATE PUBLIC WORKS CONTRACTS TO CONTRACTORS THAT HAVE BEEN CONVICTED OF A PUBLIC ENTITY CRIME.

MCLACHLAN, 24th Dist.

  AN ACT REQUIRING A WRITTEN CERTIFICATION FROM CONTRACTORS BIDDING ON PUBLIC WORKS PROJECTS.

ThatSection the1. general statutes be amended to prohibit state agencies from awarding a public works contract to any contractor that does not submit a written certification under penalty of false statement, that such contractor and any principal or key personnel of such contractor or predecessor to such contractor (1) have not been convicted, pleaded guilty or nolo contendere for embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property or any other offense involving corruption or a lack of business integrity or business honesty, and (2) are not subject to any legal or administrative proceedings against the contractor, principal, key personnel or predecessor concerning such other offenses.

Statement(NEW) (Effective October 1, 2017) (a) For the purposes of Purpose:this section:

To(1) require"Public contractors bidding on public works contractscontract" tomeans certifyany thatcontract theyfor andthe otherconstruction, personnelreconstruction, ofalteration, theremodeling, contractorrepair haveor notdemolition been convicted of certainany crimespublic building or beenany subjectother topublic certainwork legalby orthe administrativestate proceedingsthat foris certainestimated otherto offensescost atmore thethan timefive ofhundred bidding.thousand dollars.

(2) "State agency" has the same meaning as provided in section 1-79 of the general statutes.

(3) "Entity" means any corporation, general partnership, limited partnership, limited liability partnership, joint venture, nonprofit organization or other business organization.

(4) "Convicted" or "conviction" means a finding of guilt, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information as a result of a jury verdict, nonjury trial or entry of a plea of guilty or nolo contendere.

(5) "Public entity crime" means a violation by a person of any state or federal law (A) involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy or material misrepresentation, and (B) with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or with the United States, including, but not limited to, any bid, proposal, reply or contract for goods or services, any lease for real property or any contract for the construction or repair of a public building or public work.

(6) "Public entity" means the state, any state agency or any political subdivision of the state.

(7) "Affiliate" means (A) A predecessor or successor of a person convicted of a public entity crime;

or (B) an entity under the control of any natural person who is active in the management of the entity and who has been convicted of a public entity crime.

"Affiliate" includes those officers, directors, executives, partners, shareholders, employees, members and agents who are active in the management of an affiliate.

(b) On and after October 1, 2017, no state agency shall enter into any public works contract, or amend or renew any such contract, with any entity who (1) has failed to submit a written certification indicating whether or not the owner of such entity, or any of its affiliates have been convicted of a public entity crime, or (2) has submitted a written certification indicating that the owner of such entity or one or more of its affiliates have been convicted of a public entity crime.

Each such certification shall be sworn as true to the best knowledge and belief of the representative of the entity signing the certification, subject to the penalties of false statement.

(c) Each state agency shall include in the bid specifications for a public works contract a notice of the certification requirements of this section.

Prior to submitting a bid for a public works contract, each bidder who is an entity shall submit a certification as described in subsection (b) of this section.

Sec.

2.

Subsection (i) of section 4a-100 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(i) The commissioner may not issue or renew a prequalification certificate to any contractor or substantial subcontractor who (1) [who] is disqualified pursuant to section 31-57c or 31-57d, [or] (2) [who] has a principal or key personnel who, within the past five years, has a conviction or has entered a plea of guilty or nolo contendere for or has admitted to commission of an act or omission that reasonably could have resulted in disqualification pursuant to any provision of subdivisions (1) to (3), inclusive, of subsection (d) of section 31-57c or subdivisions (1) to (3), inclusive, of subsection (d) of section 31-57d, as determined by the commissioner, or (3) has a principal, key personnel or affiliate who has been convicted of a public entity crime, as such terms are defined in section 1 of this act.

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

Section 1 October 1, 2017 New section Sec.

2 October 1, 2017 4a-100(i) Statement of Purpose:

To require contractors bidding on public works contracts to certify that they and other affiliates of the contractor have not been convicted of a public entity crime and to prohibit the prequalification or award of a public works contract to a contractor that has been convicted of a public entity crime or that has an affiliate that has been convicted of a public entity crime.

[Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] Co-Sponsors:

SEN.

MCLACHLAN, 24th Dist.

S.B.

424