House Bill No. 5622
               House Bill No. 5622

               PUBLIC ACT NO. 98-74


AN  ACT  CONCERNING THE STATE INSURANCE PURCHASING
BOARD.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section   1.  Section  4a-19  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    There  shall be a State Insurance [Purchasing]
AND RISK MANAGEMENT  Board  consisting  of  eleven
persons whom the Governor shall appoint subject to
the provisions  of  section  4-9a.  Four  of  such
appointees shall be public members and seven shall
be qualified by training and experience  to  carry
out  their duties under the provisions of sections
4a-20, AS AMENDED BY  THIS  ACT,  and  4a-21.  The
Comptroller  shall  be an ex-officio voting member
of said board and may designate another person  to
act  in  his  place.  Not  more than six appointed
members of said  board  shall,  at  any  time,  be
members   of   the   same  political  party.  Said
appointed members shall  receive  no  compensation
for  the  performance  of their duties as such but
shall be reimbursed for their necessary  expenses.
The  Governor  may  fill any vacancy on said board
for the unexpired portion of the term.  The  board
shall  meet  at  least  once  during each calendar
quarter and at such other times as the chairperson
deems necessary. Special meetings shall be held on
the request of  a  majority  of  the  board  after
notice   in  accordance  with  the  provisions  of
section 1-21. A majority of  the  members  of  the
board  shall  constitute  a quorum. Any member who
fails to attend three consecutive meetings or  who
fails  to  attend  fifty  per cent of all meetings
held during any calendar year shall be  deemed  to
have  resigned  from office. No member shall serve
more  than  two  full  consecutive   terms   which
commence  on  or  after  July  1, 1983. Said board
shall be within the [Department of  Administrative
Services]  OFFICE  OF  THE  STATE  COMPTROLLER for
administrative purposes only.
    Sec.  2. Section 4a-20 of the general statutes
is repealed and the following  is  substituted  in
lieu thereof:
    [Said]    THE   STATE   INSURANCE   AND   RISK
MANAGEMENT board shall  determine  the  method  by
which the state shall insure itself against losses
by the  purchase  of  insurance  governed  by  the
provisions  of  title  38a  to obtain the broadest
coverage at the most  reasonable  cost.  It  shall
direct  the  negotiations  for  purchase  of  such
insurance  and  determine  whether  deductible  OR
OTHER RISK RETENTION provisions should be included
in the insurance contract. Wherever appropriate it
shall  determine  that  the  state  shall act as a
self-insurer  and  may  request  funds  from   the
contingency  fund  to establish reserves and carry
out such practices as are necessary  to  safeguard
the   self-insurance   activity.  SAID  BOARD  MAY
DEVELOP AND IMPLEMENT  RISK  MANAGEMENT  AND  LOSS
PREVENTION  PROGRAMS  RELATED  TO  INSURANCE PLANS
ESTABLISHED PURSUANT TO THE PROVISIONS OF SECTIONS
4a-19 TO 4a-21, INCLUSIVE, AS AMENDED BY THIS ACT.
It shall designate the agent or agents  of  record
and shall select the companies from whom insurance
coverage and  surety  bonds  shall  be  purchased.
Notwithstanding   any   other   provision  of  the
[Connecticut] general statutes, including  without
limitation  sections 38a-707 and 38a-825, it shall
have  full  authority  to   negotiate   either   a
commission  or  fee  structure  to  compensate the
agent or agents of record for services  performed.
It  shall  also  have  full  authority  to  retain
consulting  firms  and  to  negotiate  their   fee
compensation  for  services performed. Any refund,
dividend  or  other  payment  from  any  insurance
company in connection with insurance for the state
shall be returned to the Comptroller  for  deposit
in  the  General  Fund.  The board shall establish
specifications for each contract of insurance  and
shall  request bids for each such contract through
the agent of record. Each such contract  shall  be
for a specified period of time.
    Sec.   3.   Section   4a-20a  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    Notwithstanding   the  provisions  of  section
4a-20, AS AMENDED BY THIS ACT, the State Insurance
[Purchasing]   AND   RISK   MANAGEMENT  Board  may
negotiate directly with an  insurance  company  to
avoid  any  commission  or fee associated with the
compensation of an agent or agents of  record  for
any services performed.
    Sec.  4.  This  act  shall take effect July 1,
1998.

Approved May 19, 1998