House of Representatives
File No. 990
January Session, 2009
(Reprint of File No. 321)
As Amended by House Amendment
Schedules "A", "B" and "C"
Approved by the Legislative Commissioner
May 21, 2009
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2009) As used in section 2 of this act:
(1) "Economic development project" means any project which is to be used or occupied by any person for (A) manufacturing, industrial, research, office or product warehousing or distribution purposes or hydroponic or aquaponic food production purposes and which the Connecticut Development Authority determines will tend to maintain or provide gainful employment, maintain or increase the tax base of the economy, or maintain, expand or diversify industry in the state, (B) controlling, abating, preventing or disposing land, water, air or other environmental pollution, including, without limitation, thermal, radiation, sewage, wastewater, solid waste, toxic waste, noise or particulate pollution, except resources recovery facilities, as defined in section 22a-219a of the general statutes, used for the principal purpose of processing municipal solid waste and which are not expansions or additions to resources recovery facilities operating on July 1, 1990, (C) the conservation of energy or utilization of cogeneration technology or solar, wind, hydro, biomass or other renewable sources to produce energy for any industrial or commercial application, or (D) any other purpose which the authority determines will materially contribute to the economic base of the state by creating or retaining jobs, promoting the export of products or services beyond state boundaries, encouraging innovation in products or services, or otherwise contributing to, supporting or enhancing existing activities that are important to the economic base of the state.
(2) "Professional engineer" means a person who is qualified by reason of his knowledge of mathematics, the physical sciences and the principles of engineering, acquired by professional education and practical experience, to engage in engineering practice, including rendering or offering to render to clients any professional service such as consultation, investigation, evaluation, planning, design or responsible supervision of construction, in connection with any public or privately-owned structures, buildings, machines, equipment, processes, works or projects in which the public welfare or the safeguarding of life, public health or property is concerned or involved, and who is licensed by the state of Connecticut as a professional engineer pursuant to chapter 391 of the general statutes.
Sec. 2. (NEW) (Effective October 1, 2009) Notwithstanding any provision of the general statutes, any professional engineer licensed in accordance with the provisions of chapter 391 of the general statutes may certify to a state agency with authority to issue a permit for an economic development project under any provision of the general statutes that such economic development project is in compliance with all requirements for issuance of a state permit by such state agency.
Sec. 3. Subsection (c) of section 4a-59 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009):
(c) All open market orders or contracts shall be awarded to (1) the lowest responsible qualified bidder, the qualities of the articles to be supplied, their conformity with the specifications, their suitability to the requirements of the state government and the delivery terms being taken into consideration and, at the discretion of the Commissioner of Administrative Services, life-cycle costs and trade-in or resale value of the articles may be considered where it appears to be in the best interest of the state, (2) the highest scoring bidder in a multiple criteria bid, in accordance with the criteria set forth in the bid solicitation for the contract, or (3) the proposer whose proposal is deemed by the awarding authority to be the most advantageous to the state, in accordance with the criteria set forth in the request for proposals, including price and evaluation factors. Notwithstanding any provision of the general statutes to the contrary, each state agency awarding a contract through competitive negotiation shall include price as an explicit factor in the criteria in the request for proposals and for the contract award. In considering past performance of a bidder for the purpose of determining the "lowest responsible qualified bidder" or the "highest scoring bidder in a multiple criteria bid", the commissioner shall evaluate the skill, ability and integrity of the bidder in terms of the bidder's fulfillment of past contract obligations and the bidder's experience or lack of experience in delivering supplies, materials, equipment or contractual services of the size or amount for which bids have been solicited. In determining the lowest responsible qualified bidder for the purposes of this section, the commissioner may give a price preference of up to ten per cent for (A) the purchase of goods made with recycled materials or the purchase of recyclable or remanufactured products if the commissioner determines that such preference would promote recycling or remanufacturing. As used in this subsection, "recyclable" means able to be collected, separated or otherwise recovered from the solid waste stream for reuse, or for use in the manufacture or assembly of another package or product, by means of a recycling program which is reasonably available to at least seventy-five per cent of the state's population, "remanufactured" means restored to its original function and thereby diverted from the solid waste stream by retaining the bulk of components that have been used at least once and by replacing consumable components and "remanufacturing" means any process by which a product is remanufactured; (B) the purchase of motor vehicles powered by a clean alternative fuel; [or] (C) the purchase of motor vehicles powered by fuel other than a clean alternative fuel and conversion equipment to convert such motor vehicles allowing the vehicles to be powered by either the exclusive use of clean alternative fuel or dual use of a clean alternative fuel and a fuel other than a clean alternative fuel. As used in this subsection, "clean alternative fuel" shall mean natural gas or electricity when used as a motor vehicle fuel; or (D) the purchase of goods or services from micro businesses. As used in this subsection, "micro business" means a business with gross revenues not exceeding three million dollars in the most recently completed fiscal year. All other factors being equal, preference shall be given to supplies, materials and equipment produced, assembled or manufactured in the state and services originating and provided in the state. If any such bidder refuses to accept, within ten days, a contract awarded to such bidder, such contract may be awarded to the next lowest responsible qualified bidder or the next highest scoring bidder in a multiple criteria bid, whichever is applicable, and so on until such contract is awarded and accepted. If any such proposer refuses to accept, within ten days, a contract awarded to such proposer, such contract shall be awarded to the next most advantageous proposer, and so on until the contract is awarded and accepted. There shall be a written evaluation made of each bid. This evaluation shall identify the vendors and their respective costs and prices, document the reason why any vendor is deemed to be nonresponsive and recommend a vendor for award. A contract valued at one million dollars or more shall be awarded to a bidder other than the lowest responsible qualified bidder or the highest scoring bidder in a multiple criteria bid, whichever is applicable, only with written approval signed by the Commissioner of Administrative Services and by the Comptroller. The commissioner shall submit to the joint standing committee of the General Assembly having cognizance of matters relating to government administration, the State Auditors and the Comptroller, an annual report of all awards made pursuant to the provisions of this section.
Sec. 4. Subsection (h) of section 31-57f of the general statutes, as amended by house bill 6502 of the current session, is repealed and the following is substituted in lieu thereof (Effective July 1, 2009):
(h) Where a required employer is awarded a contract to perform services that are substantially the same as services that have been rendered under a predecessor contract, such required employer shall retain, for a period of ninety days, all employees who had been employed by the predecessor to perform services under such predecessor contract, except that the successor contract need not retain employees who worked less than fifteen hours per week or who had been employed at the site for less than sixty days. During such ninety-day period, the successor contract shall not discharge without just cause an employee retained pursuant to this subsection. If the performance of an employee retained pursuant to this subsection or section 4a-82 is satisfactory during the ninety-day period, the successor contractor shall offer the employee continued employment for the duration of the successor contract under the terms and conditions established by the successor contractor, or as required by law. The provisions of this subsection shall not apply to any contract covered by section 31-57g or subsections (o) and (p) of section 4a-82.
This act shall take effect as follows and shall amend the following sections:
October 1, 2009
October 1, 2009
July 1, 2009
July 1, 2009
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
The bill allows any state-licensed professional engineer to certify that an economic development project is in compliance with all state-permitting requirements. This is not anticipated to result in a fiscal impact.
The bill creates a price preference for the purchase of goods or services from micro businesses. This may increase the cost of certain goods or services to various state agencies if contracts that would otherwise be awarded to the lowest qualified bidder are awarded to micro businesses instead.
Lastly, the bill exempts a business taking over a food and beverage service contract at Bradley International Airport from having to keep the workers hired under the prior contract for at least 90 days from the new contract's start date, as required under sHB 6502. This provision may reduce certain contract costs to the state.
House “A” specifies that a professional engineer is someone who has been licensed by the state and has no fiscal impact.
House “B” creates a price preference for the purchase of goods or services from micro businesses, and could increase costs to the state for certain goods and services.
House “C” adds the exemption regarding food and beverage service contracts at Bradley. House “C” may reduce the costs to the state outlined in the fiscal note on sHB 6502, as passed by the House on May 13, 2009. The extent of this reduction is indeterminate.
The Out Years
The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.
OLR Bill Analysis
This bill allows state-licensed engineers to certify that economic development projects comply with all state permitting requirements. It specifies the professional criteria an engineer must meet before he or she can certify a project. But it does not indicate if the agency funding the project, the project's developer, or the agency issuing the permit must approve the engineer. Nor does it state if the permitting agency must issue the permit when the engineer certifies compliance.
The bill authorizes a maximum 10% bid preference for businesses that purchase goods or services from a business whose gross revenue in the most recent fiscal year does not exceed $3 million (i.e., “micro businesses”). The administrative services commissioner may grant the preference when determining the lowest qualified bidder. Current law authorizes the same preference for businesses selling specific types of products. It also requires state agencies to set aside contracts for exclusive bidding by small and minority-owned businesses.
Lastly, the bill amends sHB 6502, which requires among other things, a business taking over a state building service contract to retain the people hired under the prior contract for at least 90 days. Current law imposes a similar requirement on businesses taking over a food and beverage service contract at Bradley International Airport from another business. The bill exempts Bradley food and beverage contracts from sHB 6502's requirement.
*House Amendment “A” makes a conforming technical change.
*House Amendment “B” adds the 10% bid preference for businesses purchasing goods or services from micro businesses.
*House Amendment “C” adds the exemption regarding food and beverage service contracts at Bradley.
EFFECTIVE DATE: July 1, 2009, except for that the authorization regarding state-licensed engineers takes effect October 1, 2009.
CERTIFYING ECONOMIC DEVELOPMENT PROJECTS
The bill specifies the criteria a state-licensed engineer must meet to certify that an economic development project complies with state permitting requirements. An engineer may certify compliance if he or she practices engineering based on knowledge acquired through professional education and practical experience. The knowledge must be of mathematics, physical science, and engineering principles.
The engineer's practice may include consulting, investigating, evaluating, planning, designing, or supervising construction projects. The projects may be related to public or privately owned structures, buildings, machines, equipment, processes, or works. They must affect the public welfare or present the need to safeguard life, public health, or property.
Lastly, the engineer must be licensed by the state as a professional engineer.
The bill's certification option is available for four types of economic development projects. The first type includes many traditional economic development uses, including manufacturing, industrial, research, office, product warehousing and distribution, and hydroponic or aquaponic food production facilities. These uses qualify for permit certification if the Connecticut Development Authority (CDA) determines they will maintain or create jobs; maintain or increase the tax base; or maintain, expand, or diversify industry.
A wide range of environmental quality projects also qualifies for permit certification. Eligible projects include controlling, abating, preventing, or disposing of land, water, air and other environmental pollution, including thermal, radiation, sewage, wastewater, solid waste, toxic waste, noise, or particulate pollution. They do not include new resources recovery facilities used mainly to process municipal solid waste.
Alternate energy and energy conservation projects involving commercial or industrial applications qualify for permit certification. They include projects using cogeneration technology or solar, wind, hydro, biomass, or other renewable energy sources.
Lastly, permit certification is also available to any type of project that improves the capacity of the state's economy to generate new wealth. CDA must first determine if the project will create or retain jobs, promote exports, encourage innovation, or support the state's economic base in other ways.
MICRO BUSINESS BID PREFERENCE
The bill extends the current maximum 10% bid preference to businesses that purchase goods or services from micro businesses. Current law allows the DAS commissioner to grant the preference when purchasing goods made with recycled materials or that can be recycled or remanufactured if doing so would promote recycling or remanufacturing. She can also grant the preference for motor vehicles using clean alternative fuels or that can use both these fuels and conventional ones.
Current law also requires state agencies to set-aside contracts for exclusive bidding by small businesses. A business qualifies for set-aside bidding if it grossed no more than $15 million in the most recently completed fiscal year and meets other specified criteria.
The bill amends sHB 6502 (File 966) on the Senate calendar. That bill, among other things, requires a new contractor that takes over an existing state building service to keep the employees form the previous contract for at least 90 days after the date it begins service under the new contract and permits it to fire those employees only for cause. It excludes from this requirement people with disabilities or disadvantaged people working in the janitorial work pilot program under contracts with no more than four full-time workers.
Joint Favorable Substitute