SB 259 — AN ACT CONCERNING CONTRACTING WITH QUASI-PUBLIC AGENCIES UNDER THE STATE CODES OF ETHICS.

Senate General Assembly RaisedFile Bill No.

259249 February Session, 2024 LCOSenate Bill No.

1540259 ReferredSenate, toApril 4, 2024 The Committee on GOVERNMENTGovernment ADMINISTRATIONAdministration ANDand ELECTIONSElections Introducedreported by:through SEN.

(GAE)FLEXER ANof ACTthe CONCERNING29th CONTRACTINGDist., WITHChairperson QUASI-PUBLICof AGENCIESthe UNDERCommittee THEon STATEthe CODESpart OFof ETHICS.the Senate, that the bill ought to pass.

AN ACT CONCERNING CONTRACTING WITH QUASI-PUBLIC AGENCIES UNDER THE STATE CODES OF ETHICS.

(i) (1) No public official or state employee or member of the official or employee's immediate family or a business with which he is associated shall enter into any contract with the state or a quasi-public agency, valued at onehundreddollarsor more, other thanacontract (A) of employment as a state employee, (B) with the Technical Education and Career System for students enrolled in a school in the system to performservicesinconjunctionwithvocational,technical,technological or postsecondary education and training any such student is receiving at a school in the system, subject to the review process under subdivision (2) of this subsection, (C) with a public institution of higher educationSB259 to/ supportFile a collaboration with such institution to develop LCO 1540 \\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-00259-R01 of 2 SB.docx Bill No.

259249 and1 commercializeSB259 anyFile inventionNo. or discovery, or (D) pursuant to a court appointment, unless the contract has been awarded through an open and public process, including prior public offer and subsequent public disclosure of all proposals considered and the contract awarded.

249 education to support a collaboration with such institution to develop and commercialize any invention or discovery, or (D) pursuant to a court appointment, unless the contract has been awarded through an open and public process, including prior public offer and subsequent public disclosure of all proposals considered and the contract awarded.

Section 1 October 1, 2024 1-84(i) GAE Joint Favorable LCOSB259 1540/ {\\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-00259-2File ofNo. 2 R01-SB.docx }

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249 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:

None Municipal Impact:

None Explanation This bill extends the existing prohibition on contracts to family and close contacts to quasi-public state agencies resulting in no fiscal impact to the state.

The Out Years State Impact:

None Municipal Impact:

None SB259 / File No.

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249 OLR Bill Analysis SB 259 AN ACT CONCERNING CONTRACTING WITH QUASI-PUBLIC AGENCIES UNDER THE STATE CODES OF ETHICS.

SUMMARY This bill prohibits public officials and state employees (and their immediate family members and associated businesses) from entering into contracts worth $100 or more with quasi-public agencies unless the contract was (1) awarded through an open and public process or (2) according to a court appointment.

By law, this prohibition already applies to contracts with state agencies, with some exceptions (e.g., contracts with technical high schools for students to perform services in conjunction with their training).

Under existing law, the open and public process must include prior public offer and subsequent public disclosure of all proposals considered and the contract awarded.

Bylaw,anassociatedbusinessisanybusinessentityinwhichapublic official, state employee, or immediate family member is a director, officer, owner, limited or general partner, trust beneficiary, or a stockholder with at least 5% of the total outstanding stock in any class.

They do not include nonprofit entities for which the person is an unpaid officer or director (CGS § 1-79(2)).

EFFECTIVE DATE:

October 1, 2024 COMMITTEE ACTION Government Administration and Elections Committee Joint Favorable Yea 19 Nay 0 (03/15/2024) SB259 / File No.

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