SB 1499 — AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE STATE CONTRACTING STANDARDS BOARD.

and sSB1499(3) /Contracts Filefor No.the construction, reconstruction, alteration, remodeling, repair or demolition of any public building.

498LCO 9 sSB1499of File41 Substitute Bill No.

4981499 (3)(b)Notwithstanding Contractsany forprovisionofchapter 14, upon request by the construction,board, reconstruction,each alteration,state remodeling,contracting repairagency, orincluding demolitioninstitutions of higher education, shall provide the board, in a timely manner, with such procurement informationastheboarddeemsnecessary.The boardshall have access to all information, files and records related to any publicstate building.contracting agency in furtherance of the board's duties, as described in this section and sections 4e-4 to 4e-47, inclusive, as amended by this act.

(b)Notwithstanding any provisionofchapter 14, upon request by the board, each state contracting agency, including institutions of higher education, shall provide the board, in a timely manner, with such procurement informationastheboarddeemsnecessary.The boardshall have access to all information, files and records related to any state contracting agency in furtherance of the board's duties, as described in this section and sections 4e-4 to 4e-47, inclusive, as amended by this act.

sSB1499[(2)] /(B) FilePrequalification, No.suspension, debarment and reinstatement of prospective bidders and contractors;

498LCO 10 sSB1499of File41 Substitute Bill No.

4981499 [(2)][(3)] (B)(C) Prequalification,Small suspension,purchase debarmentprocedures; and reinstatement of prospective bidders and contractors;

[(3)] (C) Small purchase procedures;

and sSB1499[(16)] /(P) FileIdentification No.of procurement best practices;

498LCO 11 sSB1499of File41 Substitute Bill No.

4981499 [(16)][(c) (P)Adopt] Identification(3) To adopt regulations, [pursuant to] in accordance with the provisions of chapter 54, to carry out the provisions of statutes concerning procurement, in order to facilitate consistent application of the law and require the implementation of procurement best practices;

[(c) Adopt] (3) To adopt regulations, [pursuant to] in accordance with the provisions of chapter 54, to carry out the provisions of statutes concerning procurement, in order to facilitate consistent application of the law and require the implementation of procurement best practices;

[(2)] (B) Approving an ethics training course, in consultation with the Office of State Ethics, including, but not limited to, state employees and sSB1499quasi-public /agency Fileemployees involved in procurement and for state LCO 12 of 41 Substitute Bill No.

4981499 12contractors sSB1499and Filesubstantial No.subcontractors who are prequalified pursuant to chapter 58a.

498 quasi-public agency employees involved in procurement and for state contractors and substantial subcontractors who are prequalified pursuant to chapter 58a.

Such officer shall serve as the liaison sSB1499between /the Fileagency and the Chief Procurement Officer on all matters LCO 13 of 41 Substitute Bill No.

4981499 13relating sSB1499to Filethe No.agency's procurement activity, including, but not limited to, implementation and compliance with the provisions of statutes and regulations concerning procurement and any policies or regulations adopted by the board, coordination of the training and education of agency procurement employees and any person serving on the Contracting Standards Advisory Council;

498 between the agency and the Chief Procurement Officer on all matters relating to the agency's procurement activity, including, but not limited to, implementation and compliance with the provisions of statutes and regulations concerning procurement and any policies or regulations adopted by the board, coordination of the training and education of agency procurement employees and any person serving on the Contracting Standards Advisory Council;

Participationinthe educationand training program shall be required of any supervisory and sSB1499nonsupervisory /state Fileemployees in state contracting agencies with LCO 14 of 41 Substitute Bill No.

4981499 14responsibility sSB1499for Filebuying, No.purchasing, renting, leasing or otherwise acquiring any supplies, service or construction, including the preparationofthedescriptionofrequirements,selectionandsolicitation ofsources, preparationandawardofcontractsandallphasesof contract administration.

498 nonsupervisory state employees in state contracting agencies with responsibility for buying, purchasing, renting, leasing or otherwise acquiring any supplies, service or construction, including the preparationofthedescriptionofrequirements,selectionandsolicitation ofsources, preparationandawardofcontractsandallphasesof contract administration.

Such termination of a contract or procurement sSB1499agreement /bytheboardmay Fileoccur only after(1)theboardhasconsulted LCO 15 of 41 Substitute Bill No.

4981499 15with sSB1499the Filestate No.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.

498 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.

The advisory council shall meet sSB1499at /least Filefour times per year to discuss state contracting agency LCO 16 of 41 Substitute Bill No.

4981499 16procurement sSB1499issues Fileand No.to make recommendations for improvement of [the] procurement processes to the State Contracting Standards Board.

498 at least four times per year to discuss state contracting agency procurement issues and to make recommendations for improvement of [the] procurement processes to the State Contracting Standards Board.

sSB1499LCO /17 Fileof 41 Substitute Bill No.

4981499 17(c) sSB1499(1) FileIf No.such cost-benefit analysis identifies a cost savings to the state contracting agency of ten per cent or more, and such privatization contract will not diminish the quality of such service, the state contracting agency shall develop a business case, in accordance with the provisions of subsection (d) of this section, in order to evaluate the feasibility ofentering into any such contract andto identify thepotential results, effectiveness and efficiency of such contract.

498 (c) (1) If such cost-benefit analysis identifies a cost savings to the state contracting agency of ten per cent or more, and such privatization contract will not diminish the quality of such service, the state contracting agency shall develop a business case, in accordance with the provisions of subsection (d) of this section, in order to evaluate the feasibility ofentering into any such contract andto identify thepotential results, effectiveness and efficiency of such contract.

(d) Any business case developed by a state contracting agency for the sSB1499LCO /18 Fileof 41 Substitute Bill No.

4981499 18purpose sSB1499of Filecomplying No.with subsection (c) of this section shall include:

498 purpose of complying with subsection (c) of this section shall include:

If the primary purpose of the sSB1499LCO /19 Fileof 41 Substitute Bill No.

4981499 19proposed sSB1499privatization Filecontract No.is to provide a core governmental function, such business case shall also include information sufficient to rebut the presumption that such core governmental function should not be privatized.

498 proposed privatization contract is to provide a core governmental function, such business case shall also include information sufficient to rebut the presumption that such core governmental function should not be privatized.

The board shall review such contract in accordance with the provisions sSB1499LCO /20 Fileof 41 Substitute Bill No.

4981499 20of sSB1499subsections File(f) No.to (h), inclusive, of this section and may approve such renewal by the applicable vote of the board, provided any such renewal that is estimated to cost in excess of one hundred fifty million dollars annually or six hundred million dollars or more over the life of the contract shall also be approved by the General Assembly prior to the state contracting agency renewing such contract.

498 of subsections (f) to (h), inclusive, of this section and may approve such renewal by the applicable vote of the board, provided any such renewal that is estimated to cost in excess of one hundred fifty million dollars annually or six hundred million dollars or more over the life of the contract shall also be approved by the General Assembly prior to the state contracting agency renewing such contract.

(4) Notwithstanding the provisions of subdivision (3) of this subsection, the renewal of a privatization contract with a nonprofit sSB1499LCO /21 Fileof 41 Substitute Bill No.

4981499 21organization sSB1499shall Filenot No.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.

498 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.

The secretary may, in consultation with the Chief Procurement Officer of the board, waive the requirement for an evaluationLCO 22 of cost-effectiveness41 underSubstitute thisBill subsection upon a finding by sSB1499 / File No.

4981499 22evaluation sSB1499of Filecost-effectiveness No.under this subsection upon a finding by the secretary that exigent or emergent circumstances necessitate such waiver.

498 the secretary that exigent or emergent circumstances necessitate such waiver.

ForLCO the23 purpose of obtaining41 supplies,Substitute materials,Bill equipment or sSB1499 / File No.

4981499 23For sSB1499the Filepurpose No.of obtaining supplies, materials, equipment or contractual services, except infrastructure facilities, the Commissioner ofAdministrativeServicesshallestablisharequisitionsystemtobeused by state contracting agencies that are not quasi-public agencies to initiate and authorize the procurement process.

498 contractual services, except infrastructure facilities, the Commissioner ofAdministrativeServicesshallestablisharequisitionsystemtobeused by state contracting agencies that are not quasi-public agencies to initiate and authorize the procurement process.

[Said regulations shall require that] The state contracting agency shall (1) include a written determination of the basis for the emergency and for the selectionLCO 24 of the41 particularSubstitute contractorBill [be included] in the contract file, [and transmitted] (2) transmit such determination to the Governor, the sSB1499 / File No.

4981499 24selection sSB1499of Filethe No.particular contractor [be included] in the contract file, [and transmitted] (2) 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 (3) post such determination on the Internet web site of the state contracting agency.

498 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 (3) post such determination on the Internet web site of the state contracting agency.

Such books and records shall be maintained by the contractor for a period of threeLCO years25 from the date of final41 paymentSubstitute underBill the prime contract and by the subcontractor for a period of three years from the expiration of sSB1499 / File No.

4981499 25three sSB1499years Filefrom No.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.

498 the subcontract.

Such recommendation shall be submitted to the board for action and sent to the contractor by certified mail, return receiptLCO requested.26 of 41 Substitute Bill No.

1499 receipt requested.

Upon receipt of the proposed recommendation by the subcommittee, the board shall sSB1499issue /a Filewritten No.decision either adopting, rejecting or modifying the subcommittee'srecommendation.Suchdecisionshallbe issuednot later than thirty days after receipt by the board of the contractor's comments, if any.

498 26 sSB1499 File No.

498 issue a written decision either adopting, rejecting or modifying the subcommittee'srecommendation.Suchdecisionshallbe issuednot later than thirty days after receipt by the board of the contractor's comments, if any.

(6) A history of failure to perform or of unsatisfactory performance onLCO one27 orof more41 publicSubstitute contracts,Bill agreementsNo. or transactions with state contracting agencies;

(7)1499 Aon wilfulone violationor ofmore apublic statutorycontracts, oragreements regulatory provision or sSB1499transactions /with Filestate No.contracting agencies;

498(7) 27A sSB1499wilful Fileviolation No.of a statutory or regulatory provision or requirement applicable to a contract, agreement or transaction with state contracting agencies;

498 requirement applicable to a contract, agreement or transaction with state contracting agencies;

(2)LCO Reversal28 of the41 convictionSubstitute uponBill whichNo. the disqualification was based;

1499 (2) Reversal of the conviction upon which the disqualification was based;

or sSB1499(4) /Elimination Fileof No.other causes for which the disqualification was imposed.

498 28 sSB1499 File No.

498 (4) Elimination of other causes for which the disqualification was imposed.

(2) A record of failure to perform or of unsatisfactory performance in accordanceLCO with29 the terms of one41 orSubstitute moreBill contracts,No. provided failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered to be a basis for suspension;

sSB14991499 /accordance Filewith No.the terms of one or more contracts, provided failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered to be a basis for suspension;

498(3) 29Any sSB1499cause Filethe No.complainant [state] contracting agency of the state determinesto beso seriousandcompelling as to affect theresponsibility of a state contractor, including suspension by another [state] contracting agency of the state for cause;

498 (3) Any cause the complainant [state] contracting agency of the state determinesto beso seriousandcompelling as to affect theresponsibility of a state contractor, including suspension by another [state] contracting agency of the state for cause;

(h) In the event such appeal is found to be frivolous by the appeals review subcommittee or the full board, such frivolous appeal may serve asLCO a30 basisof for41 disqualificationSubstitute pursuantBill toNo. section 4e-34, as amended by this act.

1499 as a basis for disqualification pursuant to section 4e-34, as amended by this act.

sSB1499Sec. / File No.

498 30 sSB1499 File No.

498 Sec.

Withrespect to infrastructure facilities, not later thanJune1, 2010,the State Contracting Standards Board, in consultation with the state contracting agencies and the Attorney General, shall adopt regulations, in accordance with the provisions of chapter 54, requiring the inclusion in [state] contracts with any state contracting agency of clauses providing for adjustments in prices, time of performance, remedies, terminationLCO or31 otherof contract41 provisionsSubstitute necessaryBill toNo. protect the interests of the state.

1499 termination or other contract provisions necessary to protect the interests of the state.

Not later than June 1, 2010, the State Contracting Standards Board sSB1499shall /adopt Fileregulations, No.in accordance with the provisions of chapter 54, concerning the procedure and circumstances under which a state contracting agency may allow contract modification, change order, or contract price adjustment under a construction contract with the state contracting agency in excess of fifty thousand dollars.

498 31 sSB1499 File No.

498 shall adopt regulations, in accordance with the provisions of chapter 54, concerning the procedure and circumstances under which a state contracting agency may allow contract modification, change order, or contract price adjustment under a construction contract with the state contracting agency in excess of fifty thousand dollars.

Sec.LCO 32 of 41 Substitute Bill No.

1499 Sec.

(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" sSB1499means /a Filebusiness No.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 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.

498 32 sSB1499 File No.

498 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 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.

(15) Invest in, acquire, lease, purchase, own, manage, hold and disposeLCO of33 real property and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to carrying out the purposes of sections41 15-31aSubstitute toBill 15-31i, inclusive, provided such transactions shall not be subject to approval, revieworregulationbyanystateagencypursuanttotitle4boranyother provision of the general statutes, except (A) the authority shall not convey fee simple ownership in any property associated with the ports sSB1499 / File No.

4981499 33dispose sSB1499of Filereal No.property and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to carrying out the purposes of sections 15-31a to 15-31i, inclusive, provided such transactions shall not be subject to approval, revieworregulationbyanystateagencypursuanttotitle4boranyother provision of the general statutes, except (A) the authority shall not convey fee simple ownership in any property associated with the ports or harbors under its jurisdiction and control without the approval of the State Properties Review Board and the Attorney General, and (B) as provided in [subsection (c) of this section] chapter 62;

498 or harbors under its jurisdiction and controlSec.32.Subsections(b) withoutand(c)of thesection15-31bofthegeneralstatutes approvalarerepealedandthefollowingissubstitutedinlieuthereof(EffectiveJuly of1, the2025): State Properties Review Board and the Attorney General, and (B) as provided in [subsection (c) of this section] chapter 62;

and Sec.32.Subsections(b) and(c)ofsection15-31bofthegeneralstatutes arerepealedandthefollowingissubstitutedinlieuthereof(EffectiveJuly 1, 2025):

provided the issuance of bonds and refunding bonds under the provisions of this chapter need not comply with the requirements of any other law applicable to the issuanceLCO 34 of bonds41 including,Substitute particularly,Bill titleNo. 42a;

1499 issuance of bonds including, particularly, title 42a;

Except as otherwise expressly provided in this chapter and the provisions of chapter 62 concerning state contracting agencies, none of the powers granted to the authority under the provisions of this chapter shall be subject to the supervision or regulation or require the approval or sSB1499consent /of Fileany No.municipality or political subdivision or any commission, board, body, bureau, official or agency thereof or of the state.

498 34 sSB1499 File No.

498 consent of any municipality or political subdivision or any commission, board, body, bureau, official or agency thereof or of the state.

TheLCO provisions35 of this41 chapterSubstitute shallBill beNo. deemed to provide a complete, additional and alternative method for the actions of the things authorized thereby and shall be regarded as supplemental and additional to powers granted by other laws;

1499 The provisions of this chapter shall be deemed to provide a complete, additional and alternative method for the actions of the things authorized thereby and shall be regarded as supplemental and additional to powers granted by other laws;

This chapter, sSB1499being /necessary Filefor No.the welfare of the state and its inhabitants, shall be liberally construed to effect its purpose.

498 35 sSB1499 File No.

498 being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect its purpose.

(a)LCO The36 corporationof shall41 establishSubstitute andBill adoptNo. specific policies, rules and procedures on purchasing and contracting.

1499 (a) The corporation shall establish and adopt specific policies, rules and procedures on purchasing and contracting.

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 sSB1499open /or Filecompetitive No.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 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.

498 36 sSB1499 File No.

498 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 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.

(b) [The] Except for the provisions in chapter 62 concerning state contractingLCO agencies,37 the corporation shall not be subject to rules, regulations or restrictions on purchasing or procurement or the disposition of assets41 generallySubstitute applicableBill toNo. Connecticut state agencies, including those contained in titles 4a and 4b and the corresponding rules and regulations.

1499 contracting agencies, the corporation shall not be subject to rules, regulations or restrictions on purchasing or procurement or the disposition of assets generally applicable to Connecticut state agencies, including those contained in titles 4a and 4b and the corresponding rules and regulations.

sSB1499Sec. / File No.

498 37 sSB1499 File No.

498 Sec.

The establishment of additional standardLCO criteria38 shall be approved by a two-thirds vote of the41 boardSubstitute afterBill suchNo. 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.

1499 standard criteria shall be approved by a two-thirds vote of the board 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.

(13) Make and enter into any contract or agreement necessary or sSB1499incidental /to Filethe No.performance of its duties and execution of its powers, including, but not limited to, an agreement with the Office of Health Strategy to use funds collected under this section for the operation of the all-payer claims database established under section 19a-755a and to receive data from such database.

498 38 sSB1499 File No.

498 incidental to the performance of its duties and execution of its powers, including, but not limited to, an agreement with the Office of Health Strategy to use funds collected under this section for the operation of the all-payer claims database established under section 19a-755a and to receive data from such database.

(e)Notwithstandingtheprovisionsofsubsections(a)to(d),inclusive,LCO of39 this section, no party may compel disclosure of the41 namesSubstitute andBill addressesNo. of clients of an individual or entity that provides professional services, as defined in subdivision [(20)] (19) of section 4e-1, as amended by this act, when the disclosure of such names and addresses would constitute a violation of state or federal law, or the applicable rules of professional conduct governing such profession, as the case may be.

1499 (e)Notwithstandingtheprovisionsofsubsections(a)to(d),inclusive, of this section, no party may compel disclosure of the names and addresses of clients of an individual or entity that provides professional services, as defined in subdivision [(20)] (19) of section 4e-1, as amended by this act, when the disclosure of such names and addresses would constitute a violation of state or federal law, or the applicable rules of professional conduct governing such profession, as the case may be.

Subsection (c) of section 52-351b of the general statutes is sSB1499repealed /and Filethe No.following is substituted in lieu thereof (Effective July 1, 2025):

498 39 sSB1499 File No.

498 repealed and the following is substituted in lieu thereof (Effective July 1, 2025):

15 July 1, 2025 4e-17 Sec.LCO 40 of 41 Substitute Bill No.

1499 Sec.

19 July 1, 2025 4e-27 July 1, 2025 Sec.

20 July 1, 2025 4e-30(a) Sec.

26 July 1, 2025 4e-40(2) sSB1499July /1, File2025 No.Sec.

49827 404e-45 sSB1499Sec. File No.

498 Sec.

27 July 1, 2025 4e-45 Sec.

30 July 1, 2025 4e-72 July 1, 2025 Sec.

31 July 1, 2025 15-31b(a)(15) Sec.

37 July 1, 2025 12-815 July 1, 2025 Sec.

38 July 1, 2025 31-49h(14) Sec.

42 July 1, 2025 52-351b(c) StatementGAE ofJoint LegislativeFavorable Commissioners:Subst.

In-LCO SectionAPP 2(20),Joint subparagraphsFavorable andLCO clauses41 were added and the provisions applied to the existing contracts of quasi-public41 agencies as of July 1, 2025, to avoid potential impairment of contract issues.

GAE Joint Favorable Subst.

-LCO sSB1499 / File No.

498 41 sSB1499 File No.

498 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 26 $ FY 27 $ State Contracting Standards GF - Cost 250,447 250,447 Board State Comptroller - Fringe GF - Cost 101,957 101,957 Benefits1 Various State Agencies GF - Potential See Below See Below Cost Note:

GF=General Fund Municipal Impact:

None Explanation The bill results in a cost to the State Contracting Standards Board (SCSB) by expanding SCSB powers and duties to include quasi-public agencies.

In order to fulfill the additional requirements, SCSB will need to hire three positions at a cost of $250,447 in salaries and $101,957 in fringe benefits in FY 26 and FY 27.

Quasi-Public agencies:

The bill results in a potential cost to quasi-public agencies to the extent that additional resources or personnel will be required to meet the additional reporting requirements and oversight created by the bill.

In addition, the bill applies privatization laws to quasi-public agencies.

This results in a potential cost to quasi-public agencies to the extent that 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 40.71% of payroll in FY 26.

sSB1499 / File No.

498 42 sSB1499 File No.

498 additional resources and personnel will be required to meet the additional requirements of the privatization law.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

sSB1499 / File No.

498 43 sSB1499 File No.

498 OLR Bill Analysis sSB 1499 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 (§ 20).

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 (§ 4).

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.).

Lastly, the bill makes numerous other minor, technical, and sSB1499 / File No.

498 44 sSB1499 File No.

498 conforming changes (e.g., specifying that certain provisions apply to a quasi-public agency’s contracts entered into on or after the bill becomes effective on July 1, 2025).

EFFECTIVE DATE:

July 1, 2025, except that the provision on budget request modifications and allotment reductions is effective upon passage.

§ 1 — 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).

§§ 2-39 — SCSB AUTHORITY OVER QUASI-PUBLIC AGENCIES Under current law, SCSB has limited authority over quasi-public agencies, as its 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.) 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 § 15-31b).

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.Under existinglaw,the state has 16 quasi-public agencies (CGS § 1-120).

sSB1499 / File No.

498 45 sSB1499 File No.

498 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 proposer suspensions issued by state agencies (§§ 23-25).

Selected SCSB Statutes Applicable to Quasi-Public Agencies Under the Bill Bill Section Statute Description (if applicable) CGS § 4e-3 SCSB may exercise quasi-public agencies’ contracting- related powers, rights, and duties SCSB must review, certify, and periodically recertify CGS § 4e-4 quasi-public agency procurement processes CGS § 4e-5 Quasi-public agencies must appoint a procurement officer SCSB must audit each quasi-public agency’s compliance — CGS § 4e-6 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) 11-13 CGS § 4e-16 Quasi-public agencies must comply with the privatization 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, applying for, or participating in state contracts with quasi- CGS § 4e-34 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 sSB1499 / File No.

498 46 sSB1499 File No.

498 to the Contracting Standards Advisory Council, two each appointed by the House speaker and Senate president (§ 8).

By law, the council must 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,thecost-benefit analysisand variousother analyses(thebilladds 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 sSB1499 / File No.

498 47 sSB1499 File No.

498 proposed privatization contract would result in the layoff, transfer, or reassignment of at least 100 state agency employees, then the agency 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 verification, and (2) secretary consult with (a) SCSB when prescribing 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.) sSB1499 / File No.

498 48 sSB1499 File No.

498 The bill additionally requires procurement officers to advise bidders, proposers, and contractors about their rights to contest a contract solicitation or award.

Specifically, procurement officers must ensure that (1) each bid, RFP (request for proposal), 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 only upon application by a contracting agency.

It requires contracting 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 no longer requires the board to adopt these regulations.

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.

sSB1499 / File No.

498 49 sSB1499 File No.

498 Existing law allows the DAS commissioner or the state’s chief information officer to allow emergency procurements, subject to the Standardization Committee’s approval if the cost is $100,000 or more (CGS § 4a-58).

§ 22 — 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)contractorkneworhadreasontoknow 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.” COMMITTEE ACTION Government Administration and Elections Committee Joint Favorable Yea 13 Nay 6 (03/19/2025) sSB1499 / File No.

498 50