SB 391 — AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE STATE CONTRACTING STANDARDS BOARD.

[(1)] (A) Conditions and procedures for delegation of procurement authority;

[(13)]sSB391 (M)/ RegulationsFile providingNo. for conducting cost and price analysis;

LCO429 10 sSB391 File No.

2619429 10[(13)] of(M) 41Regulations Raisedproviding Billfor No.391conducting [(14)]cost (N) Use of payment and performanceprice bonds;analysis;

[(14)] (N) Use of payment and performance bonds;

[(1)] (A) Establishing procurement and project management educationsSB391 and/ trainingFile criteriaNo. and certification procedures for agency procurement officers and contracting officers.

All429 agency11 procurementsSB391 LCOFile No.

2619429 11education ofand 41training Raisedcriteria Billand No.391 officersandcontracting officersdesignatedunder thisprovisionshallbe required to maintain the certification inprocedures goodfor standingagency atprocurement allofficers timesand whilecontracting performingofficers. procurement functions;

All agency procurement officersandcontracting officersdesignatedunder thisprovisionshallbe required to maintain the certification in good standing at all times while performing procurement functions;

and [(k) Provide] (11) To provide the Governor and the joint standing committee of the General Assembly having cognizance of matters relating to government administration with recommendations concerningsSB391 the/ statutesFile andNo. regulations concerning procurement.

LCO429 12 sSB391 File No.

2619429 12concerning ofthe 41statutes Raisedand Billregulations No.391concerning Sec.procurement.

Sec.

Such education and training program shall develop education, training and professional development opportunitiessSB391 for/ employeesFile of state contracting agencies charged with LCO No.

2619429 13 ofsSB391 41File RaisedNo. Bill No.391 procurement responsibilities.

429 opportunities for employees of state contracting agencies charged with procurement responsibilities.

(c) The education and training program shall include, but shall not be limited toto, (1) training and education concerning federal, state and municipal procurement processes, including the statutes and regulations concerning procurement;

LCOsSB391 / File No.

2619429 14 ofsSB391 41File RaisedNo. Bill No.391 (a) For cause, the State Contracting Standards Board may review, terminate or recommend to a state contracting agency the termination of any contract or procurement agreement undertaken by any state contracting agency after providing fifteen days' notice to the state contracting agency and the applicable contractor, and consulting with the Attorney General.

Such429 termination(a) ofFor acause, contractthe orState procurementContracting agreementStandards bytheboardmayBoard occurmay onlyreview, after(1)theboardhasterminate consultedor withrecommend theto a state contracting agency to determine the impact of an immediate termination of theany contract,contract (2)or aprocurement determinationagreement hasundertaken been made jointly by theany board and the state contracting agency thatafter anproviding immediatefifteen terminationdays' ofnotice the contract will not create imminent peril to the publicstate health,contracting safetyagency or welfare, (3) a vote of two-thirds of the members of the board present and voting for that purpose, and (4) the boardapplicable hascontractor, provided thestate contracting agency and theconsulting contractor with opportunity for a hearing conducted pursuant to the provisionsAttorney ofGeneral. chapter 54.

Such termination of a contract or procurement agreement bytheboardmay occur only after(1)theboardhasconsulted with the state contracting agency to determine the impact of an immediate termination of the contract, (2) a determination has been made jointly by the board and the state contracting agency that an immediate termination of the contract will not create imminent peril to the public health, safety or welfare, (3) a vote of two-thirds of the members of the board present and voting for that purpose, and (4) the board has provided thestate contracting agency and the contractor with opportunity for a hearing conducted pursuant to the provisions of chapter 54.

There is established a Contracting Standards Advisory Council, which shall consist of representatives from the Office of Policy and Management, Departments of Administrative Services and Transportation, [and] representatives of at least three additional state contracting agencies that are not quasi-public agencies, including at LCOsSB391 / File No.

2619429 15 ofsSB391 41File RaisedNo. Bill No.391 least one human services related state agency, to be designated by the Governor, and at least four additional state contracting agencies that are quasi-public agencies, two to be appointed by the speaker of the House of Representatives and two to be appointed by the president pro tempore oftheSenate.

429 least one human services related state agency, to be designated by the Governor, and at least four additional state contracting agencies that are quasi-public agencies, two to be appointed by the speaker of the House of Representatives and two to be appointed by the president pro tempore oftheSenate.

On and after July 1, 2024, all contracts of each state LCOcontracting agency that is a quasi-public agency that take effect on or sSB391 / File No.

2619429 16 ofsSB391 41File RaisedNo. Bill No.391 contracting agency that is a quasi-public agency that take effect on or after July 1, 2024, shall contain provisions to ensure accountability, transparency and results-based outcomes.

429 after July 1, 2024, shall contain provisions to ensure accountability, transparency and results-based outcomes.

Such state contracting agency shall provide an opportunity for [said] such employees to reduce the costs of conducting the operations to be privatized and provide reasonable resources for the LCOpurposeofencouragingandassistingsuch [state]employeestoorganize and submit a bid to provide the services that are the subject of the sSB391 / File No.

2619429 17 ofsSB391 41File RaisedNo. Bill No.391 purposeofencouragingandassistingsuch[state]employeestoorganize and submit a bid to provide the services that are the subject of the potentialprivatizationcontract.Thestatecontractingagencyshallretain sole discretionindetermining whether to proceed withthe privatization contract, providedthebusinesscase for suchcontract isapprovedbythe board.

429 potentialprivatizationcontract.Thestatecontractingagencyshallretain sole discretionindetermining whether to proceed withtheprivatization contract, providedthebusinesscase for suchcontract isapprovedbythe board.

(1)The cost-benefit analysisasdescribedinsubsection(b)ofthissection, (2) a detailed description of the service or activity that is the subject of such business case, (3) a description and analysis of the state contracting agency's current performance of such service or activity, (4) the goals to be achieved through the proposed privatization contract and the rationale for such goals, (5) a description of available options for achieving such goals, (6) an analysis of the advantages and disadvantages of each option, including, at a minimum, potential performance improvements and risks attendant to termination of the contract or rescission of such contract, (7) an analysis of the potential impact of the proposed privatization contract on workers of color and workers who are women, including whether such privatization contract will lessen or increase historical patterns that produce inequities between such workers and other workers, (8) an analysis of the qualitative impact of the proposed privatization contract on the existing state workforce, (9) a description of the current market for the services or activities that are the subject of such business case, [(8)] (10) an analysis of the quality of services as gauged by standardized measures and key performance requirements including compensation, turnover, and staffing ratios, [(9)] (11) a description of the specific results-based performance standards that shall, at a minimum be met, to ensure adequate performance by any party performing such service or activity, [(10)] (12) the projected time frame for key events from the beginning of the procurement process through the expiration of a contract, if applicable, [(11)] (13) a specific and feasible contingency plan that addresses contractor nonperformance and a description of the tasks LCOinvolved in and costs required for implementation of such plan, and [(12)] (14) a transition plan, if appropriate, for addressing changes in the number of agency personnel, affected business processes, employee sSB391 / File No.

2619429 18 ofsSB391 41File RaisedNo. Bill No.391 involved in and costs required for implementation of such plan, and [(12)] (14) a transition plan, if appropriate, for addressing changes in the number of agency personnel, affected business processes, employee transition issues, and communications with affected stakeholders, such as agency clients and members of the public, if applicable.

429 transition issues, and communications with affected stakeholders, such as agency clients and members of the public, if applicable.

Subdivisions (2) to (4), inclusive, of subsection (l) of section 4e-16 of the general statutes are repealed and the following is LCOsubstituted No.in lieu thereof (Effective July 1, 2024):

2619(2) 19If ofsuch 41cost-benefit Raisedanalysis Billidentifies No.391a substitutedten inper lieucent thereofor (Effectivemore Julycost 1,savings 2024):to the state contracting agency from the use of such sSB391 / File No.

(2)429 If19 suchsSB391 cost-benefitFile analysisNo. identifies a ten per cent or more cost savings to the state contracting agency from the use of such privatization contract and such contract does not diminish the quality of the service provided, such state contracting agency shall develop a business case for the renewal of such privatization contract in accordance with the provisions of subsections (d) and (e) of this section.

429 privatization contract and such contract does not diminish the quality of the service provided, such state contracting agency shall develop a business case for the renewal of such privatization contract in accordance with the provisions of subsections (d) and (e) of this section.

(3) If such cost-benefit analysis identifies a cost savings to the state contracting agency of less than ten per cent, such state contracting agency shall prepare a plan to have such service provided by state employees, [and] or, in the case of a state contracting agency that is a quasi-publicquasi- public agency, by the employees of the quasi-public agency, and shall begin to implement such plan, provided:

(C) the state contracting agency may LCOenter No.into a contract with a term of one year or less for the provision of such service until such state contracting agency implements such plan;

2619and 20(D) ofthe 41procedure Raisedfor Billthe No.391transfer enterof intofunds afrom contractthe withGeneral aFund, termas ofdescribed onein yearsection or4-94, lessmay forbe theutilized provisionto ofallocate suchnecessary servicesSB391 until/ suchFile stateNo. contracting agency implements such plan;

and429 (D)20 thesSB391 procedureFile forNo. the transfer of funds from the General Fund, as described in section 4-94, may be utilized to allocate necessary resources for the implementation of the provisions of this subdivision.

(4)429 Notwithstandingresources thefor provisions of subdivision (3) of this subsection, the renewalimplementation of a privatization contract with a nonprofit organization shall not be denied if the costprovisions of increasingthis compensationsubdivision. to employeesperforming theprivatizedservice isthesole cause for such contract not achieving a cost savings to the state contracting agency of ten per cent or more.

(4) Notwithstanding the provisions of subdivision (3) of this subsection, the renewal of a privatization contract with a nonprofit organization shall not be denied if the cost of increasing compensation to employeesperforming theprivatizedservice isthesolecause for such contract not achieving a cost savings to the state contracting agency of ten per cent or more.

(p) Prior to entering into or renewing any privatization contract that is not subject to the provisions of subsection (a) of this section, the state contracting agency shall evaluate such contract to determine if entering into or renewing such contract is the most cost-effective method of delivering theservice, by determining thecosts,asdefinedinsubsection LCO(b) No.of this section, of such service.

2619The 21state contracting agency shall perform such evaluation in accordance with a template prescribed by the Secretary of 41the RaisedOffice Billof No.391Policy (b)and Management, in consultation with the board, pursuant to subsection (m) of this section, ofand such service.sSB391 / File No.

The429 state21 contractingsSB391 agencyFile shallNo. perform such evaluation in accordance with a template prescribed by the Secretary of the Office of Policy and Management, in consultation with the board, pursuant to subsection (m) of this section, and such evaluation shall be [subject to verification by the secretary] submitted to the board.

429 evaluation shall be [subject to verification by the secretary] submitted to the board.

(c) Nothing in sections 4e-16 to 4e-47, inclusive, as amended by this act, shallbeconstruedto requiretheapplicationofprocurement statutes or regulations to a procurement that involves the expenditure of federal LCOassistance No.or federal contract funds if federal law provides procurement procedures applicable to the expenditure of such funds, to the extent such federal procedures are inconsistent with state procurement statutes or regulations.

2619sSB391 22/ ofFile 41No. Raised Bill No.391 assistance or federal contract funds if federal law provides procurement procedures applicable to the expenditure of such funds, to the extent such federal procedures are inconsistent with state procurement statutes or regulations.

Sec.429 22 sSB391 File No.

429 Sec.

(a) [Not later than June 1, 2010, the State Contracting Standards Board, in consultation with the Commissioner of Administrative Services and any other appropriate award authority, shall adopt regulations, ininaccordance accordance with thetheprovisionsofchapter provisions54,permitting] of chapter 54, permitting] (a) If an emergency [procurements when there exists] procurement is deemed LCOnecessary No.by a state contracting agency due to a threat to public health, welfare or safety, the state contracting agency shall give notice to the board of the need for such emergency procurement.

2619Such 23emergency of[procurements] 41procurement Raisedshall Billbe No.391made necessarywith bycompetition, aas stateis contractingpracticable agencyunder due to a threat to public health, welfare or safety, the statecircumstances. contracting agency shall give notice to the board of the need for such emergency procurement.

Such[Said emergencyregulations [procurements]sSB391 procurement/ shallFile beNo. made with competition, as is practicableunderthecircumstances.

[Saidregulationsshallrequirethat]429 The23 statesSB391 contractingFile agencyNo. shall (1) include a written determination of the basis for the emergency and for the selection of the particular contractor [be included] in the contract file and [transmitted] transmit such determination to the Governor, the president pro tempore of the Senate, the majority and minority leaders of the Senate, the speaker of the House of Representatives and the majority and minority leaders of the House of Representatives, and (2) post such determination on the Internet web site of the state contracting agency.

429 shall require that] The state contracting agency shall (1) include a written determination of the basis for the emergency and for the selection of the particular contractor [be included] in the contract file and [transmitted] transmit such determination to the Governor, the president pro tempore of the Senate, the majority and minority leaders of the Senate, the speaker of the House of Representatives and the majority and minority leaders of the House of Representatives, and (2) post such determination on the Internet web site of the state contracting agency.

When, for any reason,collusionor other anticompetitive practicesare suspected among any bidders or proposers for [a state] the contract of a LCOstate No.contracting agency, a notice of the relevant facts shall be transmitted to the Attorney General by any affected party, including, but not limited to, the state contracting agency, a bidder or a proposer.

2619sSB391 24/ ofFile 41No. Raised Bill No.391 state contracting agency, a notice of the relevant facts shall be transmitted to the Attorney General by any affected party, including, but not limited to, the state contracting agency, a bidder or a proposer.

Sec.429 24 sSB391 File No.

429 Sec.

LCO(b) No.Causes for such disqualification shall include the following:

2619(1) 25Conviction of, or entry of 41a Raisedplea Billof guilty or nolo contendere or sSB391 / File No.

391429 (b)25 CausessSB391 forFile suchNo. disqualification shall include the following:

(1)429 Conviction of, or entry of a plea of guilty or nolo contendere or admission to, the commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of such contract or subcontract;

or LCO(9) No.Any other cause or conduct the board determines to be so serious and compelling as to affect responsibility as a [state] contractor, including, but not limited to:

2619sSB391 26/ ofFile 41No. Raised Bill No.391 (9) Any other cause or conduct the board determines to be so serious and compelling as to affect responsibility as a [state] contractor, including, but not limited to:

(A)429 Disqualification26 bysSB391 anotherFile stateNo. for cause;

429 (A) Disqualification by another state for cause;

LCO(a)For No.purposesofthissectionandsections4e-37,asamendedby this act, and 4e-38, as amended by this act, "contracting agency of the state" does not include a quasi-public agency.

2619After 27reasonable ofnotice 41 Raised Bill No.391 (a)For purposesofthissectionandsections4e-37,asamendedby this act, and 4e-38,a ashearing, amendedconducted byin thisaccordance act,with "contractingthe agencyprovisions of thechapter state"54, doesthe notsSB391 include/ aFile quasi-publicNo. agency.

After429 reasonable27 noticesSB391 andFile aNo. hearing, conducted in accordance with the provisions of chapter 54, the department head of any [state] contracting agency of the state may suspend any contractor, bidder or proposer for a period of not more than six months from bidding on, applying for or performing work as a contractor or subcontractor under, contracts with the state.

The429 departmentheadshallissueadepartment writtendecisionnotlaterthanninetydayshead afterof theany conclusion[state] ofcontracting suchagency hearingof andthe state inmay thesuspend decisionany thecontractor, reasonsbidder or proposer for thea actionperiod takenof and,not ifmore thethan contractor,six biddermonths from bidding on, applying for or proposerperforming iswork beingas suspended,a thecontractor periodor ofsubcontractor suchunder, suspension.contracts with the state.

The departmentheadshallissueawrittendecisionnotlaterthan ninetydays after the conclusion of such hearing and state in the decision the reasons for the action taken and, if the contractor, bidder or proposer is being suspended, the period of such suspension.

or (4) A violation of the ethical standards set forth in section 1-84, 1-86e LCOor No.1-101nn, as determined by the Citizen's Ethics Advisory Board.

2619(c) 28The ofState 41Contracting RaisedStandards BillBoard may grant an exception permitting a suspended contractor to participate in a particular contract sSB391 / File No.

391429 or28 1-101nn,sSB391 asFile determinedNo. by the Citizen's Ethics Advisory Board.

(c)429 The State Contracting Standards Board may grant an exception permitting a suspended contractor to participate in a particular contract or subcontract upon a written determination by the board that there is good cause for such exception and that such exception is in the best interest of the state.

The State Contracting Standards Board shall issue a decision in writing or take other appropriate action on each appeal submitted LCOpursuanttosection4e-37,asamendedbythis No.act.Acopyofanydecision shall be provided to all parties, the department head of the [state] contracting agency of the state and the Chief Procurement Officer.

2619sSB391 29/ ofFile 41No. Raised Bill No.391 pursuanttosection4e-37,asamendedbythis act.Acopyofanydecision shall be provided to all parties, the department head of the [state] contracting agency of the state and the Chief Procurement Officer.

Sec.429 29 sSB391 File No.

429 Sec.

Such regulations LCOshall require that every contract modification, change order or contract price adjustment under a construction contract with the state contracting agency in excess of fifty thousand dollars shall be subject to prior written certification by the fiscal officer of the state contracting sSB391 / File No.

2619429 30 ofsSB391 41File RaisedNo. Bill No.391 shall require that every contract modification, change order or contract price adjustment under a construction contract with the state contracting agency in excess of fifty thousand dollars shall be subject to prior written certification by the fiscal officer of the state contracting agency or other agency responsible for funding the project or the contract, or other official responsible for monitoring and reporting upon the status of the costs of the total project budget or contract budget, as to the effect of the contract modification, change order, or adjustment in contract price on the total project budget or the total contract budget.

429 agency or other agency responsible for funding the project or the contract, or other official responsible for monitoring and reporting upon the status of the costs of the total project budget or contract budget, as to the effect of the contract modification, change order, or adjustment in contract price on the total project budget or the total contract budget.

(a) For the purposes of this section, "nonresident bidder" means a business that is not a resident of the state that submits a bid in response to an invitation to bid by a state contracting agency, "resident bidder" means a business that submits a bid in response to an invitation to bid by a state contracting agency and that has paid unemployment taxes or income taxes in this state during the twelve calendar months immediately preceding submission of such bid, has a business address in the state and has affirmatively claimed such status in the bid LCOsubmission, No.and "contract" [means "contract" as defined in section 4e-1 and "state contracting agency" means] and "state contracting agency" [, as defined] have the same meanings as provided in section 4e-1, as amended by this act.

2619sSB391 31/ ofFile 41No. Raised Bill No.391 submission, and "contract" [means "contract" as defined in section 4e-1 and "state contracting agency" means] and "state contracting agency" [, as defined] have the same meanings as provided in section 4e-1, as amended by this act.

Sec.429 31 sSB391 File No.

429 Sec.

Subsections (b) and (c) of section 15-31b of the 2024 LCOsupplement No.to the general statutes are repealed and the following is substituted in lieu thereof (Effective July 1, 2024):

2619(b) 32The ofauthority 41shall Raisedcontinue Billas No.391long supplementas toit thehas generalbonds statutesor areother repealedobligations outstanding and theuntil followingits existence is substitutedterminated inby lieulaw, thereofsSB391 (Effective/ JulyFile 1,No. 2024):

(b)429 The32 authoritysSB391 shallFile continueNo. as long as it has bonds or other obligations outstanding and until its existence is terminated by law, provided no such termination shall affect any outstanding contractual obligation of the authority and the state shall succeed to the obligations of the authority under any contract.

429 provided no such termination shall affect any outstanding contractual obligation of the authority and the state shall succeed to the obligations of the authority under any contract.

Subsection (s) of section 10a-204b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, LCO2024): No.

2619(s) 33The provisions of 41this Raisedsection Billshall No.391be 2024):deemed to provide a complete, additional and alternative method for the actions and the things authorized thereby and shall be regarded as supplemental and sSB391 / File No.

(s)429 The33 provisionssSB391 ofFile thisNo. section shall be deemed to provide a complete, additional and alternative method for the actions and the things authorized thereby and shall be regarded as supplemental and additional to powers granted by other laws;

the429 issuanceadditional of bonds, notes orotherobligationsundertheprovisionsofthissectionneednotcomply with the requirements of any law applicable to thepowers issuancegranted ofby bonds, notes or other obligations.laws;

the issuance of bonds, notes orotherobligationsundertheprovisions ofthissectionneednotcomply with the requirements of any law applicable to the issuance of bonds, notes or other obligations.

Except as otherwise expressly provided in this chapter and in the provisions of chapter 62 concerning state contracting agencies, none of the powers granted to the authority LCOunder No.the provisions of this chapter shall be subject to the supervision or regulation or require the approval or consent of any municipality or political subdivision or any department, division, commission, board, body, bureau, official or agency thereof or of the state.

2619The 34authority of 41 Raised Bill No.391 under the provisions of this chapter shall not be subjectconstrued to thebe supervisionan oragency regulationwithin or require the approvalscope or consent of anychapter municipality54 or politicalsSB391 subdivision/ orFile anyNo. department, division, commission, board, body, bureau, official or agency thereof or of the state.

The429 authority34 shallsSB391 notFile beNo. construed to be an agency within the scope of chapter 54 or a department, institution or agency of the state.

429 a department, institution or agency of the state.

Notwithstanding any other provision of law to the contrary, the corporation may enter into management, consulting and other agreements for the provision of goods, services and professional advisors necessary or useful in connection with the operation and management of the lottery (1) pursuant to a process of open or competitive bidding, provided (A) the corporation shall first determine the format, content and scope of any agreement for any procurement of goods or services, the conditions under which bidding LCOwilltakeplaceandthescheduleandstipulationsforcontractaward,and (B) the corporation may select the contractor deemed to have submitted the most favorable bid, considering price and other factors, when, in the judgment of the corporation, such award is in the best interests of the corporation, or (2) if the corporation, in its discretion, determines that, due to the nature of the agreement to be contracted for or procured, sSB391 / File No.

2619429 35 ofsSB391 41File RaisedNo. Bill No.391 willtakeplaceandthescheduleandstipulationsforcontractaward,and (B) the corporation may select the contractor deemed to have submitted the most favorable bid, considering price and other factors, when, in the judgment of the corporation, such award is in the best interests of the corporation, or (2) if the corporation, in its discretion, determines that, due to the nature of the agreement to be contracted for or procured, open or public bidding is either impracticable or not in the best interests of the corporation, by negotiation with such prospective providers as thecorporationmaydetermine.Thetermsandconditionsofagreements and the fees or other compensation to be paid to such persons shall be determined by the corporation.

The429 agreementsopen enteredor intopublic bybidding theis corporationeither inimpracticable accordanceor withnot in the provisionsbest interests of thisthe sectioncorporation, shallby notnegotiation bewith subjectsuch toprospective theproviders approvalas ofthecorporationmaydetermine.Thetermsandconditionsofagreements anyand statethe department,fees office or agency,other exceptcompensation asto providedbe inpaid chapterto 62such inpersons theshall provisionsbe concerningdetermined state contracting agencies or regulations adopted by the Departmentcorporation. of Consumer Protection.

The agreements entered into by the corporation in accordance with the provisions of this section shall not be subject to the approval of any state department, office or agency, except as provided in chapter 62 in the provisions concerning state contracting agencies or in regulations adopted by the Department of Consumer Protection.

Any such rules or procedures shall be a public recordrecord, as defined in section 1-200.

LCOThe No.authority shall utilize private industry, by contract, to carry out the business, design, operating, management, marketing, planning and research and development functions of the authority, unless the authority determines that it is in the public interest to adopt another course of action.

2619 36 of 41 Raised Bill No.391 The authority shallis utilizehereby privateempowered industry, by contract, to carryenter outinto thelong- business,term design,contracts operating,with management,private marketing,persons planningfor andthe researchperformance and development functions of theany authority,such unlesssSB391 the/ authorityFile determinesNo. that it is in the public interest to adopt another course of action.

The429 authority36 issSB391 herebyFile empoweredNo. to enter into long- term contracts with private persons for the performance of any such functions of the authority which, in the opinion of the authority, can desirably and conveniently be carried out by a private person under contract provided any such contract shall contain such terms and conditions as will enable the authority to retain overall supervision and control of the business, design, operating, management, transportation, marketing, planning and research and development functions to be carried out or to be performed by such private persons pursuant to such contract.

429 functions of the authority which, in the opinion of the authority, can desirably and conveniently be carried out by a private person under contract provided any such contract shall contain such terms and conditions as will enable the authority to retain overall supervision and control of the business, design, operating, management, transportation, marketing, planning and research and development functions to be carried out or to be performed by such private persons pursuant to such contract.

However, copies of all contracts of the authority shall be maintained by the authority as public records, subject to the proprietary LCOrights No.of any party to the contract.

2619 37 of 41 Raised Bill No.391 rights of any party to the contract.

Any litigation with respect to any terms, conditions or provisions of any contractoftheauthority,ortheperformanceornonperformanceofsamesSB391 by/ eitherFile party,No. shall be tried before a judge of the Superior Court of Connecticut.

429 37 sSB391 File No.

429 contractoftheauthority,ortheperformanceornonperformanceofsame by either party, shall be tried before a judge of the Superior Court of Connecticut.

The establishment of additional standard criteria shall be approved by a two-thirds vote of the board LCOafter No.such criteria have been posted on a public Internet web site maintained by the authority for notice and comment for at least one week prior to such vote.

2619 38 of 41 Raised Bill No391 after such criteria have been posted on a public Internet web site maintained by the authority for notice and comment for at least one week prior to such vote.

Subdivision (13) of section 38a-1083 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024):sSB391 / File No.

429 38 sSB391 File No.

429 2024):

LCO(a) No.A state contracting agency shall evaluate the financial condition of all bidders or proposers prior to selecting a bidder or proposer to perform a contract or subcontract.

2619 39 of 41 Raised Bill No.

391 (a) A state contracting agency shall evaluate the financial condition of all bidders or proposers prior to selecting a bidder or proposer to perform a contract or subcontract.

Such bookssSB391 and/ recordsFile shallNo. be maintained by the contractor for a period of three years from the date of final payment under the prime contract and by the subcontractor for a period of three years from the expiration of the subcontract.

429 39 sSB391 File No.

429 books and records shall be maintained by the contractor for a period of three years from the date of final payment under the prime contract and by the subcontractor for a period of three years from the expiration of the subcontract.

from passage Section 1 from passage New section Sec.

3 July 1, 2024 4e-2(g) and (h) Sec.

7 July 1, 2024 4e-7(a) July 1, 2024 Sec.

8 July 1, 2024 4e-8 Sec.

14 July 1, 2024 4e-16(p) July 1, 2024 Sec.

15 July 1, 2024 4e-17 Sec.

18 July 1, 2024 4e-24 LCOSec. No.

2619 40 of 41 Raised Bill No.

391 Sec.

25 July 1, 2024 4e-40(2) Sec.sSB391 / File No.

429 40 sSB391 File No.

429 Sec.

28 July 1, 2024 4e-48(a) July 1, 2024 Sec.

29 July 1, 2024 4e-72 July 1, 2024 Sec.

30 July 1, 2024 15-31b(15) Sec.

36 July 1, 2024 12-815 July 1, 2024 Sec.

37 July 1, 2024 22a-268 Sec.

42 July 1, 2024 4e-3(c) Statement of Purpose:Legislative Commissioners:

ToIn makeSection revisions2(8)(E), to"state provisionsagency" concerningwas thechanged State Contracting Standards Board recommended by the board, including by giving the board authority over quasi-public agency procurement, prohibiting the Governor from reducing allotments to the"state board,contracting requiringagency" thefor onlineconsistency. posting of emergency procurements, revising requirements regarding proposed privatization contracts, and providing that provisions in title 4e supersede certain other provisions.

[ProposedGAE deletionsJoint areFavorable enclosedSubst. in brackets.

ProposedsSB391 additions/ areFile 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.] LCO No.

2619429 41 ofsSB391 41File No.

429 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 25 $ FY 26 $ State Contracting Standards GF - Cost 634,543 494,543 Board State Comptroller - Fringe GF - Cost 194,099 194,099 Benefits Note:

GF=General Fund Municipal Impact:

None Explanation The bill expands the scope and oversight responsibilities of the State ContractingStandardsBoard(SCSB)andresultinatotalcostof$828,642 in FY 25 and $688,642 in FY 26 to hire six additional employees.

This cost is associated with the expanded workload the bill requires the SCSB to extend authority over quasi-public agencies.

This will require six additional full-time employees, and includes an Attorney I, a Procurement Program Manager, a Paralegal Specialist, a Trainer, and two Auditor I's at a salary cost of $470,543 annually and a fringe cost of $194,099.

There will be other costs associated with the additional personnel including a one-time cost for each additional employee of $15,000 in FY 25.

This will be used to purchase case management software, equipment, training, and office supplies.

There is an ongoing annual The 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 41.25% of payroll in FY 25.

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429 cost for the additional employees of $4,000 for software licenses.

There are additional costs associated with relocating the SCSB.

Additional office space would be required to facilitate the additional personnel and workload created by the bill.

This relocation cost is expected to be a one-time cost of $50,000 in FY 25.

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

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429 OLR Bill Analysis sSB 391 AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE STATE CONTRACTING STANDARDS BOARD.

SUMMARY This bill makes several changes that expand the State Contracting Standards Board’s (SCSB) powers and duties.

It grants the board certain protections against modifications to its budget request and reductions in its allotments.

It also subjects quasi-public agencies to the board’s full authority, including the law on privatization contracts, by making them “state contracting agencies” under the board’s authorizing statutes.

Additionally, it makes other changes to the privatization law (e.g., adding to the analyses that agencies must conduct for a proposed privatization).

Separately, the bill requires agency procurement officers to advise bidders, proposers, and contractors about certain rights enforced by SCSB (e.g., the right to contest a contract solicitation or award).

It also requires contracting agencies to (1) post information on their websites about certain emergency procurements they enter into and (2) evaluate bidders’ and proposers’ financial condition before selecting one to perform a contract or subcontract (§ 41).

It also broadens the reasons for which SCSB may disqualify contractors, bidders, and proposers.

The bill specifies that the provisions of the law on state contracting (Title 4e) supersede any contrary provision about a state contracting agency or quasi-public agency in the general statutes (§ 42).

Among other things, state law includes provisions on state agency personal services agreements (CGS § 4-212 et seq.);

goods and services purchases (CGS § 4a-50 et seq.);

and capital projects (CGS § 4b-51 et seq.).

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429 Lastly, the billmakesother minor,technical,andconforming changes (e.g., § 40).

EFFECTIVE DATE:

July 1, 2024, except that the provision on budget request modifications and allotment reductions is effective upon passage.

§§ 1 & 3 — SCSB BUDGET AND STAFFING The bill requires the Office of Policy and Management (OPM) secretary to include the SCSB executive director’s estimates of the board’s expenditure requirements and recommended adjustments and revisions in the proposed budget documents that OPM submits to the legislature, without altering them.

It also prohibits the governor from reducing SCSB’s allotment requisitions or allotments in force.

Existing law grants these same protections to the (1) Office of State Ethics (CGS § 1-81a), (2) Freedom of Information Commission (CGS § 1-205a), and (3) State Elections Enforcement Commission (CGS § 9-7c).

Separately, the bill requires that SCSB employ at least five full-time employees, subject to the State Personnel Act.

§§ 2-39 — SCSB AUTHORITY OVER QUASI-PUBLIC AGENCIES Under current law, SCSB has limited authority over quasi-public agencies, as, with one exception, SCSB’s authorizing statutes generally exclude them from the definition of “state contracting agency.” (Most of SCSB’s powers and duties apply to state contracting agencies only, see BACKGROUND.) The bill instead subjects quasi-public agencies to SCSB’s full authority, with limited exceptions.

It does so by adding quasi-public agencies to the definition of “state contracting agency” (see § 2) and makingconformingchangesthroughoutthebill.Underexistinglaw,the state has 16 quasi-public agencies (CGS § 1-120).

The table below lists a selection of SCSB statutes applicable to state contracting agencies that the bill extends to quasi-public agencies.

However, the bill does not extend provisions on contractor, bidder, or sSB391 / File No.

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429 proposer suspensions issued by state agencies (§§ 22-24).

Table:

Selected SCSB Statutes Applicable to Quasi-Public Agencies Under the Bill Bill Section Statute Description (if applicable) SCSB may exercise quasi-public agencies’ contracting- CGS § 4e-3 related powers, rights, and duties CGS § 4e-4 SCSB must review, certify, and periodically recertify quasi-public agency procurement processes CGS § 4e-5 Quasi-public agencies must appoint a procurement officer — CGS § 4e-6 SCSB must audit each quasi-public agency’s compliance with procurement laws and regulations every three years SCSB may, under specified conditions, (1) review and terminate quasi-public agency contracts and procurement CGS § 4e-7 agreements or (2) restrict or terminate the quasi-public agency’s ability to enter into contracts or procurement agreements Quasi-public agency contracts must contain provisions ensuring accountability, transparency, and results-based CGS § 4e-14 outcomes, as prescribed by SCSB (it appears SCSB has not prescribed these standards for state contracting agencies to date) Quasi-public agencies must comply with the privatization 11-13 CGS § 4e-16 law (see below) Quasi-public agencies must use specified procurement methods when purchasing goods and services (these — CGS § 4e-19 provisions require SCSB to adopt implementing regulations before they become operative, but the board has not adopted them to date) Quasi-public agency solicitations or proposed awards are — CGS § 4e-39 subject to cancellation if SCSB finds that a violation of the law has occurred SCSB may disqualify contractors from bidding on, CGS § 4e-34 applying for, or participating in state contracts with quasi- public agencies for up to five years if certain violations occur (see below) SCSB may, after a quasi-public agency contract is CGS § 4e-40 awarded, take certain actions, including terminating the contract, if SCSB finds it violates the law Separately, the bill adds four representatives of quasi-public agencies to the Contracting Standards Advisory Council, two each appointed by the House speaker and Senate president (§ 8).

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429 meet at least four times per year and make recommendations to SCSB for improving procurement processes.

§§ 2 & 11-14 — PRIVATIZATION LAW Application to Quasi-Public Agencies The bill applies the privatization law to quasi-public agencies.

Under the privatization law, if a state contracting agency seeks to enter into a contract that privatizes services performed by state employees, it generally must do a cost-benefit analysis and submit a business case to SCSB for its approval.

The business case must include, among other things, the cost-benefit analysis and 11 other analyses (the bill adds two more, see below) relating to the privatized service, such as its goals and their rationale, and options for achieving them (CGS § 4e-16(d)).

An agency may publish notice soliciting bids for a privatization contract only after the board approves the business case (CGS § 4e-16(i)).

For privatization contracts not subject to this requirement (i.e., contracts for services that are currently privatized), contracting agencies must instead evaluate the contract to determine if entering into or renewing it is the most cost-effective way to deliver the service.

(The bill also expands SCSB’s role in this evaluation, see below.) Other Changes Business Case.

As described above, existing law requires contracting agencies to develop a business case, consisting of multiple analyses, for a service it seeks to privatize.

The bill requires that the business case additionally include analyses of a proposed contract’s (1) potential impact on workers of color or workers who are women, including whether it will lessen or increase historical patterns that produce inequities between these workers and other workers, and (2) qualitative impact on the existing state workforce.

(The bill does not further specify what factors comprise a “qualitative impact.”) Employee Opportunity to Reduce Costs.

Under current law, if a proposed privatization contract would result in the layoff, transfer, or reassignment of at least 100 state agency employees, then the agency sSB391 / File No.

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429 generallymustgivetheemployees(1)anopportunitytoreducethecosts of conducting the potentially privatized operations and (2) reasonable resources to encourage and help them to organize and submit a bid to provide the potentially privatized services.

The bill decreases, from 100 to 25, the number of employees who must potentially be affected by a privatization to trigger this requirement.

As under current law, the state agency retains sole discretion over whether to proceed with the privatization as long as SCSB approves the business case.

Core Governmental Function.

The bill expands the definition of “core governmental function” under the privatization statute to include providing essential human services to state residents who would otherwise lack the support necessary to assure basic human needs.

The privatization statute establishes a rebuttable presumption that “core governmental functions” should not be privatized.

Cost-Effectiveness Evaluation.

For privatization contracts not subject to the business case requirement (i.e., contracts for services that are currently privatized), current law requires contracting agencies to evaluate the contract, using a template the OPM secretary prescribes, to determine if entering into or renewing it is the most cost-effective way to deliver the service.

The bill requires that the (1) evaluation be submitted to the board, rather than being subject to the secretary’s verificationand(2)secretaryconsultwith(a)SCSBwhenprescribing the evaluation template and (b) the chief procurement officer when deciding whether to waive the evaluation requirement because of exigent or emergent circumstances.

§ 6 — AGENCY PROCUREMENT OFFICERS Existing law requires the head of each state contracting agency to appoint an agency procurement officer who must, among other things, (1)assure that contractorsare properly screenedbefore acontract award and (2) evaluate contractor performance during and at the conclusion of a contract.

(The bill extends this requirement to quasi-public agencies.) The bill additionally requires procurement officers to advise bidders, sSB391 / File No.

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429 proposers, and contractors about their right to contest a contract solicitation or award.

Specifically, procurement officers must ensure that (1) each bid, RFP (request for proposals), or other solicitation for goods and services contains a notice about these rights;

(2) contractors are advised about these rights before entering a contract;

and (3) unsuccessful bidders, proposers, and respondents are advised about these rights when the contract is awarded.

§§ 17 & 18 — EMERGENCY PROCUREMENTS Purchases of $10,000 or Less (§ 17) The law allows SCSB, in consultation with the Department of Administrative Services (DAS) commissioner, to waive competitive bidding or negotiation requirements for minor, nonrecurring, or emergency purchases of $10,000 or less.

The bill allows it to do so upon applicationby a contracting agency.Itrequirescontracting agencies that get this waiver to post notice of the emergency purchase on their websites before making the purchase.

(Existing law also allows the DAS commissioner to waive these requirements for purchases of $25,000 or less for similar reasons without consulting the board (CGS § 4a-57(b)).) Threats to Public Health, Welfare, or Safety (§ 18) Current law requires SCSB to adopt regulations allowing emergency procurements when a threat to public health, welfare, or safety exists.

(In practice, the board has not done so.) The bill instead directly allows contracting agencies to enter into these procurements and makes the board’s adoption of regulations permissive.

The bill requires contracting agencies to (1) notify SCSB about the need for the procurement and (2) post on their websites their written determination of the basis for the emergency and selection of the particular contractor.

As under existing law, this determination must also be in the contract file and sent to the governor and legislative leaders.

Existing law allows the DAS commissioner or the state’s chief information officer to allow emergency procurements, subject to the sSB391 / File No.

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429 Standardization Committee’s approval if the cost is $100,000 or more (CGS § 4a-58).

§ 21 — DISQUALIFICATION BY SCSB The law generally allows SCSB to disqualify a contractor (including bidders and proposers) from bidding on, applying for, or participating in state contracts for up to five years if it finds that certain violations occurred.

Under current law, the board may do this for the fraudulent or criminal conduct of any officer, director, shareholder, partner, employee, or other individual associated with the contractor, if the (1) conduct occurred in connection with the person performing their duties onthecontractor’sbehalfand(2)contractorkneworhadreason toknow about it.

The bill more broadly allows the board to impose the disqualification for any of these individuals’ fraudulent or criminal conduct, regardless of whether it occurred on the contractor’s behalf or the contractor knew about it.

It also applies the disqualification provisions to contracts with quasi-public agencies.

BACKGROUND SCSB Authority Over Quasi-Public Agencies Attorney General Opinion.

In a 2021 opinion (Attorney General Opinion 2021-01), the attorney general concluded that most SCSB statutes give the board authority over state contracting agencies only, with only limited authority over quasi-public agencies.

He noted that although the board has authority over certain bid contests involving quasi-public agencies, generally its authority over quasi-public agencies “is much more limited and circumscribed relative to its authority over state contracting agencies.” Exceptions.

Under current law, the (1) State Education Resource Center is a state contracting agency under an SCSB statute governing procurement methods (CGS § 4e-19) and (2) Connecticut Port Authority is a state contracting agency under all SCSB authorizing statutes except the privatization law (CGS § 15a-31b).

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429 COMMITTEE ACTION Government Administration and Elections Committee Joint Favorable Substitute Yea 13 Nay 6 (03/22/2024) sSB391 / File No.

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