OLR Bill Analysis
AN ACT CONCERNING CONTRACTING RELATED MATTERS AND THE STATE CODES OF ETHICS.
This bill makes several changes to the State Code of Ethics. Specifically, it:
1. accords contractors, potential contractors, and consultants due process before they are prohibited from bidding on state contracts because of alleged past unethical bidding practices;
2. makes contractors, consultants, and certain other people who violate the law to advance their own financial interests liable for the amount of the financial advantage and requires the Office of State Ethics (OSE) to immediately inform the attorney general of the violation;
3. expands the grounds for contractor disqualification by the State Contracting Standards Board (SCSB); and
4. authorizes OSE's Citizens Advisory Board to interpret all parts of the State Ethics Code.
EFFECTIVE DATE: October 1, 2009, except that the provision expanding the grounds for contractor disqualification is effective on June 1, 2010.
STATE CONTRACTORS AND CONSULTANTS
Due Process
By law, state agencies, boards, commissions, institutions, and quasi-public agencies may treat as nonresponsible bidders (and thus ineligible to win a state contract) prequalified contractors, large state construction or procurement contractors, consultants on state contracts, and people seeking those positions if they:
1. solicit from public officials or state employees information that is not available to other bidders in order to gain a competitive advantage;
2. intentionally, willfully, or recklessly defraud the state by charging an agency, board, commission, institution, or quasi-public agency for work not performed or goods not provided;
3. intentionally or willfully violate or circumvent competitive bidding and ethics laws; or
4. provide or direct someone else to provide information or donated goods and services to a state or quasi-public agency, its procurement staff, or a member of a bid selection committee with intent to unduly influence the award of a state contract.
The law also allows state agencies, boards, commissions, institutions, and quasi-public agencies to treat consultants as nonresponsible bidders if they help negotiate a state contract and then they or the businesses with which they are associated serve as contractors, subcontractors, or consultants on the project, or as consultants to anyone seeking the contract.
The bill requires OSE to find a violation before these contractors or consultants may be deemed nonresponsible. This means OSE must investigate complaints of wrongdoing, offer respondents the opportunity for a hearing, and make a decision based on the evidence.
Penalties for Violations
The bill makes contractors and consultants who violate the above-stated law on unethical bidding practices to advance their own financial interests liable for the amount of the financial advantage and requires OSE to immediately inform the attorney general of the violation.
It subjects state consultants and independent contracts to the same penalty if they benefit financially from (1) abusing their contractual authority, (2) accepting another state contract that impairs their judgment on the first contract, or (3) accepting anything of value on the understanding that a person acting on the state's behalf would be influenced. Lastly, it subjects to the same penalty anyone who gives anything of value to a state consultant or independent contractor with the understanding that the consultant or contractor, on behalf of the state, would be influenced.
Contractor Disqualification
The bill gives the SCSB the authority to disqualify a contractor who is deemed a nonresponsible bidder. By law, SCSB can disqualify a contractor from bidding on, applying for, or participating as a contractor or subcontractor on a state contract for up to five years. Currently, the board may disqualify a contractor for any cause or conduct it determines a serious and compelling showing of the contractor's irresponsibleness.
INTERPRETING THE STATE ETHICS CODE
The bill authorize the Citizens Advisory Board to interpret all parts of the State Ethics Code by giving it explicit authority to issue advisory opinions on parts III and IV, miscellaneous lobbyist provisions and ethical considerations concerning bidding and state contracts, respectively. By law, OSE's board and staff generally have the authority to (1) respond to inquiries and provide advice regarding the code and (2) enforce it.
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable
Yea |
15 |
Nay |
0 |
(03/06/2009) |