Bill Text: CT HB06638 | 2015 | General Assembly | Comm Sub


Bill Title: An Act Concerning State-wide Percentage Goals For The Award Of State Procurement Contracts To Women-owned And Minority Business Enterprises.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2015-03-27 - Referred to Joint Committee on Government Administration and Elections [HB06638 Detail]

Download: Connecticut-2015-HB06638-Comm_Sub.html

General Assembly

 

Committee Bill No. 6638

January Session, 2015

 

LCO No. 5888

 

*05888HB06638GAE*

Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS

 

Introduced by:

 

(GAE)

 

AN ACT CONCERNING STATE-WIDE PERCENTAGE GOALS FOR THE AWARD OF STATE PROCUREMENT CONTRACTS TO WOMEN-OWNED AND MINORITY BUSINESS ENTERPRISES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 4a-60g of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) As used in this section and sections 4a-60h to 4a-60j, inclusive, as amended by this act, the following terms have the following meanings:

(1) "Small contractor" means any contractor, subcontractor, manufacturer, service company or nonprofit corporation (A) that maintains its principal place of business in the state, (B) (i) that had gross revenues not exceeding fifteen million dollars in the most recently completed fiscal year prior to such application, or (ii) of which fifty-one per cent or more of the capital stock, if any, or assets are owned, or in the case of a nonprofit corporation, fifty-one per cent or more of the corporation is managed, by a person or persons who are individuals with a disability, and (C) that is independent. "Small contractor" does not include any person who is affiliated with another person if both persons considered together have a gross revenue exceeding fifteen million dollars.

(2) "Independent" means the viability of the enterprise of the small contractor does not depend upon another person, as determined by an analysis of the small contractor's relationship with any other person in regards to the provision of personnel, facilities, equipment, other resources and financial support, including bonding.

(3) "State agency" means each state board, commission, department, office, institution, council or other agency with the power to contract for goods or services itself or through its head.

(4) "Minority business enterprise" means any [small] contractor [(A)] of which fifty-one per cent or more of the capital stock, if any, or assets [of which] are owned, or in the case of a nonprofit corporation fifty-one per cent or more of the corporation is managed, by a person or persons who [(i)] (A) exercise operational authority over the daily affairs of the enterprise, [(ii)] (B) have the power to direct the management and policies and receive the beneficial interest of the enterprise, [(iii)] (C) possess managerial and technical competence and experience directly related to the principal business activities of the enterprise, and [(iv)] (D) are members of a minority. [, as such term is defined in subsection (a) of section 32-9n, or are individuals with a disability, or (B) which is a nonprofit corporation in which fifty-one per cent or more of the persons who (i) exercise operational authority over the enterprise, (ii) possess managerial and technical competence and experience directly related to the principal business activities of the enterprise, (iii) have the power to direct the management and policies of the enterprise, and (iv) are members of a minority, as defined in this subsection, or are individuals with a disability.]

(5) "Minority" means (A) Black Americans, including all persons having origins in any of the Black African racial groups not of Hispanic origin, (B) Hispanic Americans, including all persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race, (C) all persons having origins in the Iberian Peninsula, including Portugal, regardless of race, (D) Asian Pacific Americans and Pacific Islanders, or (E) American Indians and persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification.

(6) "Women-owned business enterprise" means any contractor of which fifty-one per cent or more of the capital stock, if any, or assets are owned, or in the case of a nonprofit corporation fifty-one per cent or more of the corporation is managed, by a person or persons who (A) exercise operational authority over the daily affairs of the enterprise, (B) have the power to direct the management and policies and receive the beneficial interest of the enterprise, (C) possess managerial and technical competence and experience directly related to the principal business activities of the enterprise, and (D) are women.

[(5)] (7) "Affiliated" means the relationship in which a person directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with another person.

[(6)] (8) "Control" means the power to direct or cause the direction of the management and policies of any person, whether through the ownership of voting securities, by contract or through any other direct or indirect means. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, twenty per cent or more of any voting securities of another person.

[(7)] (9) "Person" means any individual, corporation, limited liability company, partnership, association, joint stock company, business trust, unincorporated organization or other entity.

[(8)] (10) "Individual with a disability" means an individual (A) having a physical or mental impairment that substantially limits one or more of the major life activities of the individual, which mental impairment may include, but is not limited to, having one or more mental disorders, as defined in the most recent edition of the American Psychiatric Association's "Diagnostic and Statistical Manual of Mental Disorders", or (B) having a record of such an impairment.

[(9)] (11) "Nonprofit corporation" means a nonprofit corporation incorporated pursuant to chapter 602 or any predecessor statutes thereto.

(12) "Contractor" includes any contractor, subcontractor, manufacturer, service company or nonprofit corporation that enters into a contract for goods or services with a state agency.

(13) "Reserved contract" means a contract offered or awarded to a minority business enterprise or women-owned business enterprise to meet the goals established under subsections (b) and (c) of this section.

(14) "Procurement contract" means a contract entered into by a state agency or political subdivision other than a municipality for the construction, reconstruction or rehabilitation of public buildings, the construction and maintenance of highways or the purchase of goods and services.

(b) It is found and determined that there is a serious need to help small contractors, minority business enterprises, women-owned business enterprises, nonprofit organizations and individuals with disabilities to be considered for and awarded state procurement contracts. [for the construction, reconstruction or rehabilitation of public buildings, the construction and maintenance of highways and the purchase of goods and services.] Accordingly, the necessity, in the public interest and for the public benefit and good, of the provisions of this section, sections 4a-60h to 4a-60j, inclusive, as amended by this act, and sections 32-9i to 32-9p, inclusive, is declared as a matter of legislative determination. Notwithstanding any provisions of the general statutes, [to the contrary,] and except as set forth [herein] in this section, the head of each state agency and each political subdivision of the state other than a municipality shall set aside in each fiscal year, for award to small contractors, on the basis of competitive bidding procedures, procurement contracts or portions of procurement contracts. [for the construction, reconstruction or rehabilitation of public buildings, the construction and maintenance of highways and the purchase of goods and services.] Eligibility of nonprofit corporations under the provisions of this section shall be limited to predevelopment contracts awarded by the Commissioner of Housing for housing projects. The total value of such contracts or portions [thereof] of such contracts to be set aside by each such agency shall be at least twenty-five per cent of the total value of all contracts let by the head of such agency in each fiscal year, provided that neither: (1) A contract that may not be set aside due to a conflict with a federal law or regulation; or (2) a contract for any goods or services which have been determined by the Commissioner of Administrative Services to be not customarily available from or supplied by small contractors, shall be included. [Contracts] Each fiscal year, each such agency and political subdivision of the state other than a municipality shall also have the goal of reserving a percentage of the total value of procurement contracts or portions [thereof having a value of not less than twenty-five per cent of the total value of all contracts or portions thereof to be set aside shall be reserved] of such contracts for awards to minority business enterprises and women-owned business enterprises on the basis of competitive bidding procedures. Until such time as the Secretary of the Office of Policy and Management establishes the state-wide goal pursuant to subparagraph (A) of subdivision (1) of subsection (c) of this section, such percentage goal shall be equivalent to twenty-five per cent of the total value of all procurement contracts or portions of contracts let by the head of such agency or political subdivision and in accordance with any guidelines issued under said subsection.

(c) (1) Not later than January 1, 2016, and every two years thereafter, the Secretary of the Office of Policy and Management, in consultation with the Commissioners of Transportation and Administrative Services and the Attorney General, shall establish (A) a state-wide goal for the percentage of state procurement contracts to be awarded to minority and women-owned business enterprises for each of the next succeeding two years, (B) women-owned and minority business enterprise participation percentage goals for such contracts, with separate goals for African-American-owned business enterprises, Hispanic-American-owned business enterprises and for women-owned business enterprises, and (C) biennial guidelines to assist the heads of state agencies and political subdivisions other than a municipality in determining what the appropriate percentage goal is for a procurement contract. If during any two-year period following the establishing of the initial goals pursuant to subparagraphs (A) and (B) of this subdivision, the secretary fails to establish the goals described in said subparagraphs (A) and (B), the goals established for the immediately preceding two-year period shall apply.

(2) In establishing goals and guidelines under this subsection, the secretary shall consider (A) the relative availability of minority and women-owned business enterprises to participate in state procurement as demonstrated by the state's most recent disparity study, and (B) past participation of minority and women-owned business enterprises in state procurement.

(3) The head of each state agency or political subdivision of the state other than a municipality shall evaluate each procurement contract to determine the appropriate women-owned or minority business enterprise participation goals for the contract based on (A) the potential subcontract opportunities available in the contract, (B) the availability of certified women-owned business enterprises and certified minority business enterprises to respond competitively to the potential subcontract opportunities, (C) the contract goal guidelines established by the secretary in accordance with subdivision (1) of this subsection, and (D) the women-owned and minority business enterprise participation percentage goals established by the secretary in accordance with subdivision (1) of this subsection. No such agency or political subdivision shall use a quota or any goal-setting that solely relies on the state's percentage goal established in subdivision (1) of this subsection or subsection (b) of this section.

[(c)] (d) The head of any state agency or political subdivision of the state other than a municipality may, (1) in lieu of setting aside or reserving any contract or portions thereof, require any general or trade contractor or any other entity authorized by such agency to award contracts, to set aside or reserve a portion of any contract for subcontractors who are eligible for set-aside or reserved contracts under this section, or (2) require the general or trade contractor or any other entity authorized by such agency to award contracts to make a reasonable effort to reserve a portion of the contract for subcontractors who are women-owned or minority business enterprises. Nothing in this subsection shall be construed to diminish the total value of contracts which are required to be set aside or the percentage goals to be reserved by any state agency or political subdivision of the state other than a municipality pursuant to this section.

[(d)] (e) The heads of all state agencies and of each political subdivision of the state other than a municipality shall notify the Commissioner of Administrative Services of all contracts to be set aside or reserved pursuant to subsection (b), [or] (c) or (d) of this section at the time that bid documents for such contracts are made available to potential contractors.

[(e)] (f) The awarding authority shall require that a contractor or subcontractor awarded a contract or a portion of a contract under this section perform not less than thirty per cent of the work with the workforces of such contractor or subcontractor and shall require that not less than fifty per cent of the work be performed by contractors or subcontractors eligible for awards under this section. A contractor awarded a contract or a portion of a contract under this section shall not subcontract with any person with whom the contractor is affiliated. No person who is affiliated with another person shall be eligible for awards under this section if both affiliated persons considered together would not qualify as a small contractor or a women-owned or minority business enterprise under subsection (a) of this section. The awarding authority shall require that a contractor awarded a contract pursuant to this section submit, in writing, an explanation of any subcontract to such contract that is entered into with any person that is not eligible for the award of a contract pursuant to this section, prior to the performance of any work pursuant to such subcontract.

[(f)] (g) The awarding authority may require that a contractor or subcontractor awarded a contract or a portion of a contract under this section furnish the following documentation: (1) A copy of the certificate of incorporation, certificate of limited partnership, partnership agreement or other organizational documents of the contractor or subcontractor; (2) a copy of federal income tax returns filed by the contractor or subcontractor for the previous year; and (3) evidence of payment of fair market value for the purchase or lease by the contractor or subcontractor of property or equipment from another contractor who is not eligible for set-aside or reserved contracts under this section.

[(g)] (h) The awarding authority or the Commissioner of Administrative Services or the Commission on Human Rights and Opportunities may conduct an audit of the financial, corporate and business records and conduct an investigation of any small contractor [or minority business enterprise which] that applies for or is awarded a set-aside contract or any women-owned or minority business enterprise that applies for or is awarded a reserved contract for the purpose of determining eligibility for awards or compliance with the requirements established under this section.

[(h)] (i) The provisions of this section shall not apply to any state agency or political subdivision of the state other than a municipality for which the total value of all procurement contracts or portions of contracts [of the types enumerated in subsection (b) of this section] is anticipated to be equal to ten thousand dollars or less.

[(i)] (j) In lieu of a performance, bid, labor and materials or other required bond, a contractor or subcontractor awarded a contract under this section may provide to the awarding authority, and the awarding authority shall accept a letter of credit. Any such letter of credit shall be in an amount equal to ten per cent of the contract for any contract that is less than one hundred thousand dollars and in an amount equal to twenty-five per cent of the contract for any contract that exceeds one hundred thousand dollars.

[(j)] (k) (1) Whenever the awarding authority has reason to believe that any contractor or subcontractor awarded a set-aside or reserved contract has wilfully violated any provision of this section, the awarding authority shall send a notice to such contractor or subcontractor by certified mail, return receipt requested. Such notice shall include: (A) A reference to the provision alleged to be violated; (B) a short and plain statement of the matter asserted; (C) the maximum civil penalty that may be imposed for such violation; and (D) the time and place for the hearing. Such hearing shall be fixed for a date not earlier than fourteen days after the notice is mailed. The awarding authority shall send a copy of such notice to the Commission on Human Rights and Opportunities.

(2) The awarding authority shall hold a hearing on the violation asserted unless such contractor or subcontractor fails to appear. The hearing shall be held in accordance with the provisions of chapter 54. If, after the hearing, the awarding authority finds that the contractor or subcontractor has wilfully violated any provision of this section, the awarding authority shall suspend all set-aside or reserved contract payments to the contractor or subcontractor and may, in its discretion, order that a civil penalty not exceeding ten thousand dollars per violation be imposed on the contractor or subcontractor. If such contractor or subcontractor fails to appear for the hearing, the awarding authority may, as the facts require, order that a civil penalty not exceeding ten thousand dollars per violation be imposed on the contractor or subcontractor. The awarding authority shall send a copy of any order issued pursuant to this subsection by certified mail, return receipt requested, to the contractor or subcontractor named in such order. The awarding authority may cause proceedings to be instituted by the Attorney General for the enforcement of any order imposing a civil penalty issued under this subsection.

[(k)] (l) (1) On or before January 1, [2000] 2016, the Commissioner of Administrative Services shall establish a process for certification of small contractors [and minority business enterprises] as eligible for set-aside contracts and women-owned and minority business enterprises as eligible for reserved contracts. Each certification shall be valid for a period not to exceed two years. Any paper application for certification shall be no longer than six pages. The Department of Administrative Services shall maintain on its web site an updated directory of small contractors, women-owned business enterprises and minority business enterprises certified under this section.

(2) The Commissioner of Administrative Services may deny an application for the initial issuance or renewal of such certification after issuing a written decision to the applicant setting forth the basis for such denial. The commissioner may revoke such certification for cause after notice and an opportunity for a hearing in accordance with the provisions of chapter 54. Any person aggrieved by the commissioner's decision to deny the issuance or renewal of or to revoke such certification may appeal such decision to the Superior Court, in accordance with the provisions of section 4-183.

(3) Whenever the Commissioner of Administrative Services has reason to believe that a small contractor, women-owned business enterprise or minority business enterprise who has applied for or received certification under this section has included a materially false statement in his or her application, the commissioner may impose a penalty not exceeding ten thousand dollars after notice and a hearing held in accordance with chapter 54. Such notice shall include (A) a reference to the statement or statements contained in the application alleged to be false, (B) the maximum civil penalty that may be imposed for such misrepresentation, and (C) the time and place of the hearing. Such hearing shall be fixed for a date not later than fourteen days from the date such notice is sent. The commissioner shall send a copy of such notice to the Commission on Human Rights and Opportunities.

(4) The commissioner shall hold a hearing prior to such revocation or denial or the imposition of a penalty, unless such contractor or subcontractor fails to appear. If, after the hearing, the commissioner finds that the contractor or subcontractor has wilfully included a materially false statement in his or her application for certification under this subsection, the commissioner shall revoke or deny the certification and may order that a civil penalty not exceeding ten thousand dollars be imposed on the contractor or subcontractor. If such contractor or subcontractor fails to appear for the hearing, the commissioner may, as the facts require, revoke or deny the certification and order that a civil penalty not exceeding ten thousand dollars be imposed on the contractor or subcontractor. The commissioner shall send a copy of any order issued pursuant to this subsection to the contractor or subcontractor named in such order. The commissioner may cause proceedings to be instituted by the Attorney General for the enforcement of any order imposing a civil penalty issued under this subsection.

[(l)] (m) On or before August 30, 2007, and annually thereafter, each state agency and each political subdivision of the state other than a municipality setting aside contracts or portions of contracts shall prepare a report establishing small [and minority business] contractor set-aside program goals for the twelve-month period beginning July first in the same year. On or before August 30, 2016, and annually thereafter, each state agency and each political subdivision of the state other than a municipality reserving procurement contracts or portions of procurement contracts shall prepare a report establishing women-owned and minority business enterprise contract goals in accordance with the guidelines established pursuant to subsection (c) of this section. Each such report shall be submitted to the Commissioner of Administrative Services, the Secretary of the Office of Policy and Management, the Commission on Human Rights and Opportunities and the cochairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and government administration. [and elections.]

[(m)] (n) On or before November 1, 1995, and quarterly thereafter, each state agency and each political subdivision of the state other than a municipality setting aside contracts or portions of contracts shall prepare a status report on the implementation and results of its small [business and minority business enterprise] contractor set-aside program goals during the three-month period ending one month before the due date for the report. On or before November 1, 2016, and quarterly thereafter, each such report shall also contain a status report on the implementation and results of such agency's or such political subdivision's women-owned and minority business enterprise reserved contract program goals during the three-month period ending one month before the due date for the report. Each report shall be submitted to the Commissioner of Administrative Services, the Secretary of the Office of Policy and Management and the Commission on Human Rights and Opportunities. Any state agency or political subdivision of the state, other than a municipality, that achieves less than fifty per cent of its small contractor [and minority business enterprise] set-aside program goals or women-owned or minority business enterprise reserved contract program goals by the end of the second reporting period in any twelve-month period beginning on July first shall provide a written explanation to the Commissioner of Administrative Services and the Commission on Human Rights and Opportunities detailing how the agency or political subdivision will achieve its goals in the final reporting period. The Commission on Human Rights and Opportunities shall: (1) Monitor the achievement of the annual goals established by each state agency and political subdivision of the state other than a municipality; and (2) prepare a quarterly report concerning such goal achievement. The report shall be submitted to each state agency that submitted a report, the Commissioner of Economic and Community Development, the Commissioner of Administrative Services and the cochairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and government administration. [and elections.] Failure by any state agency or political subdivision of the state other than a municipality to submit any reports required by this section shall be a violation of section 46a-77.

[(n)] (o) Nothing in this section shall be construed to apply to the janitorial or service contracts awarded pursuant to subsections (b) to (d), inclusive, of section 4a-82.

[(o)] (p) The Commissioner of Administrative Services may adopt regulations in accordance with the provisions of chapter 54 to implement the provisions of this section.

Sec. 2. Section 4a-60h of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) The Commissioner of Administrative Services shall be responsible for the administration of the set-aside and reserved contract program. The commissioner shall conduct regular training sessions, as the commissioner deems necessary, for state agencies to explain the set-aside and reserved contract program and to specify the factors that must be addressed in calculating agency goals under the program. Such factors shall be in accordance with the guidelines established by the Secretary of the Office of Policy and Management under subsection (c) of section 4a-60g, as amended by this act. The commissioner shall conduct informational workshops to inform businesses of set-aside and reserved contract opportunities and responsibilities.

(b) The commissioner shall adopt regulations in accordance with the provisions of chapter 54 to carry out the purposes of sections 4a-60g to 4a-60j, inclusive, as amended by this act. Such regulations shall include (1) provisions concerning the application of the program to individuals with a disability; (2) guidelines for a legally acceptable format for, and content of, letters of credit authorized under subsection (j) of section 4a-60g, as amended by this act; (3) procedures for random site visits to the place of business of an applicant for certification at the time of application and at subsequent times, as necessary, to ensure the integrity of the application process; and (4) time limits for approval or disapproval of applications.

(c) [On or before January 1, 1994, the] The Commissioner of Administrative Services shall, by regulations adopted in accordance with chapter 54, establish a process to ensure that small contractors, small businesses, women-owned business enterprises and minority business enterprises have fair access to all competitive contracts outside of the set-aside and reserved contract program.

Sec. 3. Subsection (e) of section 4a-52a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(e) Notwithstanding the provisions of sections 4a-51 and 4a-52, the Commissioner of Administrative Services may delegate authority to any state agency to purchase supplies, materials, equipment and contractual services, consistent with section 4a-67c, if the commissioner determines, in writing, that (1) such delegation would reduce state purchasing costs or result in more efficient state purchasing, and (2) the agency has employees with experience and expertise in state purchasing statutes, regulations and procedures. In determining which agencies to delegate such purchasing authority to, the commissioner shall give preference to agencies which have exceeded the set-aside or reserved contract requirements of section 4a-60g, as amended by this act. An agency to whom such authority is delegated shall comply with all such statutes, regulations and procedures and shall submit annual reports to the Commissioner of Administrative Services on its purchase orders, in a format prescribed by the commissioner. The Commissioner of Administrative Services or his or her designee shall periodically review each such delegation of purchasing authority and may revoke or modify a delegation upon determining that the agency has violated any provision of the delegation or that there is evidence of insufficient competition in the competitive bidding or competitive negotiation process.

Sec. 4. Subsection (a) of section 4a-57 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) All purchases of, and contracts for, supplies, materials, equipment and contractual services, except purchases and contracts made pursuant to the provisions of subsection (b) of this section and public utility services as provided in subsection (e) of this section shall be based, when possible, on competitive bids or competitive negotiation. The commissioner shall solicit competitive bids or proposals by providing notice of the planned purchase in a form and manner that the commissioner determines will maximize public participation in the competitive bidding or competitive negotiation process, including participation by small contractors, as defined in section 4a-60g, as amended by this act, and promote competition. In the case of an expenditure that is estimated to exceed fifty thousand dollars, such notice shall be posted, not less than five calendar days before the final date of submitting bids or proposals, on the State Contracting Portal. Each notice of a planned purchase under this subsection shall indicate the type of goods and services to be purchased and the estimated value of the contract award. The notice shall also contain a notice of state contract requirements concerning nondiscrimination and affirmative action pursuant to section 4a-60 and, when applicable, requirements concerning the awarding of contracts to small contractors, women-owned business enterprises, minority business enterprises, individuals with a disability and nonprofit corporations pursuant to section 4a-60g, as amended by this act. Each bid and proposal shall be kept sealed or secured until opened publicly at the time stated in the notice soliciting such bid or proposal.

Sec. 5. Section 4a-61 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

The Commissioner of Administrative Services, with the advice of the Commissioner of Economic and Community Development, shall adopt regulations, in accordance with chapter 54, establishing procedures for the award of contracts concerning minority business enterprises and women-owned business enterprises by the state or any political subdivision of the state other than a municipality.

Sec. 6. Section 4a-62 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) There is established a Minority and Women-Owned Business Enterprise Review Committee. The committee shall consist of two members of the House of Representatives appointed by the speaker of the House, two members of the House appointed by the minority leader of the House, two members of the Senate appointed by the president pro tempore of the Senate, and two members of the Senate appointed by the minority leader of the Senate. The committee shall conduct an ongoing study of contract awards, loans and bonds made or guaranteed by the state or any political subdivision of the state other than a municipality for the purpose of determining the extent of compliance with the provisions of the general statutes concerning contract awards, loans and bonds for minority and women-owned business enterprises, including the [set-aside] reserved contract program for such business enterprises.

(b) The committee may request any agency of the state authorized to award public works contracts or to enter into purchase of goods or services contracts to submit such information on compliance with sections 4a-60 and 4a-60g, as amended by this act, and at such times as the committee may require. The committee shall consult with the Departments of Administrative Services, Transportation and Economic and Community Development and the Commission on Human Rights and Opportunities concerning compliance with the state programs for minority business enterprises. The committee shall report annually on or before February first to the Joint Committee on Legislative Management on the results of its ongoing study and include its recommendations, if any, for legislation.

Sec. 7. Subdivision (5) of subsection (a) of section 4b-91 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(5) (A) The Commissioner of Administrative Services may select contractors to be on lists established for the purpose of providing contractor services for the construction, reconstruction, alteration, remodeling, repair or demolition of any public building or other public works project administered by the Department of Administrative Services involving an expense to the state of one million five hundred thousand dollars or less. The commissioner shall use the prequalification classifications established pursuant to section 4a-100 to determine the specific categories of services that contractors may perform after being selected in accordance with this subparagraph and subparagraph (B) of this subdivision and awarded a contract in accordance with subparagraph (C) of this subdivision. The commissioner may establish a separate list for projects involving an expense to the state of less than five hundred thousand dollars for the purpose of selecting and utilizing the services of small contractors, women-owned business enterprises and minority business enterprises, as such terms are defined in section 4a-60g, as amended by this act.

(B) The commissioner shall invite contractors to submit qualifications for each specific category of services sought by the department by posting notice of such invitation on the State Contracting Portal. The notice shall be in the form determined by the commissioner, and shall set forth the information that a contractor is required to submit to be considered for selection. Upon receipt of the submittal from the contractor, the commissioner shall select, for each specified category, those contractors who (i) are determined to be the most responsible and qualified, as such terms are defined in section 4b-92, to perform the work required under the specified category, (ii) have demonstrated the skill, ability and integrity to fulfill contract obligations considering their past performance, financial responsibility and experience with projects of the size, scope and complexity required by the state under the specified category, and (iii) for projects with a cost exceeding five hundred thousand dollars, have the ability to obtain the requisite bonding. The commissioner shall establish the duration that each list remains in effect, which in no event may exceed three years.

(C) For any public building or public works project involving an expense to the state of one million five hundred thousand dollars or less, the commissioner shall invite bids from only those contractors selected pursuant to subparagraphs (A) and (B) of this subdivision for the specific category of services required for the particular project. The commissioner shall determine the form of bid invitation, the manner of, and time for, submission of bids, and the conditions and requirements of such bids. The contract shall be awarded to the lowest responsible and qualified bidder, subject to the provisions of sections 4b-92 and 4b-94. In the event that fewer than three bids are received in response to an invitation to bid under this subdivision, or that all the bids are in excess of the amount of available funds for the project, the commissioner may negotiate a contract with any of the contractors submitting a bid, or reject the bids received and rebid the project in accordance with this section.

Sec. 8. Section 4e-15 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

Nothing in sections 4e-1 to 4e-14, inclusive, and 4e-16 shall be construed to affect the requirements of subsection (f) of section 4a-57, subsection [(p)] (o) of section 4a-60g, as amended by this act, sections 4a-82 and 17b-656 and subsection (c) of section 31-57g.

Sec. 9. Section 22a-263a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

The Materials Innovation and Recycling Authority shall make the following information available to the public through the Internet, except for any such information which is not required to be disclosed to the public pursuant to the Freedom of Information Act, as defined in section 1-200:

(1) The schedule of meetings of the board of directors of the authority and each committee established by said board, not later than seven days after such schedule is established;

(2) Draft minutes of each meeting of the board of directors of the authority and each committee established by said board, not later than seven days after each such meeting is held;

(3) Each report required under section 4a-60g, as amended by this act, setting forth small [and minority-business] contractor set-aside program goals and women-owned and minority business enterprise reserved contract goals and addressing the authority's progress in meeting said goals, not later than seven days after each such report is required to be submitted to the Commission on Human Rights and Opportunities under said section; [4a-60g;]

(4) The annual plan of operations which the authority is required to prepare pursuant to section 22a-264, not later than seven days after the plan is promulgated;

(5) Each report that the authority is required to submit to the General Assembly pursuant to the general statutes, not later than seven days after the report is submitted;

(6) Each audit of the authority conducted by the Auditors of Public Accounts, each compliance audit of the authority's activities conducted pursuant to section 1-122 and each audit conducted by an independent auditing firm, not later than seven days after each such audit is received by the board of directors of the authority; and

(7) A report on any contract between the authority and a person, other than a director, officer or employee of the authority, for the purpose of influencing any legislative or administrative action on behalf of the authority or providing legal advice to the authority. The report shall indicate for each such contract (A) the names of the parties to the contract, (B) the cost of the contract, (C) the term of the contract, (D) a summary of the services to be provided under the contract, (E) the method used by the authority to award the contract, and (F) a summary of the authority's need for the services provided under the contract. Such report shall be made available through the Internet not later than fifteen days after the contract is entered into between the authority and the person.

Sec. 10. Section 32-9qq of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) It is hereby found and declared as a matter of legislative determination that there is a continuing need in the state for stimulation and encouragement of economic growth and development within the state through the establishment of business outreach centers located in certain regions of the state or for certain industry sectors to assist in providing services to small [businesses] contractors, women-owned business enterprises and minority business enterprises, as defined in section 4a-60g, as amended by this act, in the areas of business plan development, financial projection and planning, loan packaging, business counseling and related follow-up services, including the monitoring of any of the foregoing.

(b) The business outreach center challenge grant program is hereby created. In order to stimulate and encourage economic growth and development, the state, acting through the Department of Economic and Community Development, may make grants for the establishment of business outreach centers located in certain regions of the state or for certain industry sectors to assist in providing services to small [businesses] contractors, women-owned business enterprises and minority business enterprises. Such grants shall be made under such terms and conditions as the department deems appropriate and shall be payable from the proceeds of the sale of bonds authorized under subsection (f) of this section and funds received by the department from any other source, in accordance with the following provisions:

(1) A business outreach center shall be any nonprofit or governmental entity providing or able to provide assistance to small [businesses] contractors, women-owned business enterprises and minority business enterprises in the areas of business plan development, financial projection, loan package planning, including loan packaging for small [businesses] contractors, women-owned business enterprises and minority business enterprises which are seeking financial assistance from Connecticut Innovations, Incorporated, business counseling and related monitoring and follow-up services.

(2) The department may require any entity receiving a grant pursuant to this section to obtain a matching grant in such amount as the department determines in its discretion. Such matching grant may include cash and in-kind contributions.

(c) Grants may be made under this section to municipalities and other organizations for the purpose of providing funds to develop greenways, including, but not limited to, transportation-related greenways supported by the federal Transportation Equity Act for the 21st Century, as amended from time to time. The amount of any grant shall be as follows: (1) For transportation greenways projects that are part of interstate greenways, not more than twenty per cent of the project cost; (2) for transportation greenways projects that are local spurs from interstate greenways or that are intertown greenways projects, not more than ten per cent of the project cost; and (3) for greenways that are not transportation greenways, not more than half of the capital costs of the project.

(d) Applications for grants under this section shall be submitted on forms provided by the department. When reviewing applications, the department shall consider such factors as the impact on certain regions of the state or certain industry sectors, the applicant's plan for outreach efforts designed to inform small [businesses] contractors, women-owned business enterprises and minority business enterprises of available sources of financial and technical assistance and the commitment and capacity of the applicant to provide assistance to small [businesses] contractors, women-owned business enterprises and minority business enterprises under this section.

(e) Each grant made under this section shall be authorized pursuant to regulations adopted by the Department of Economic and Community Development in accordance with the provisions of chapter 54, which regulations may include, but shall not be limited to, provisions concerning application requirements, grant amounts and eligible use of funds, provided the amount of any grant under subsection (b) of this section shall be not more than the amount specified in said subsection.

(f) For the purposes of this section, the State Bond Commission shall have the power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate two million five hundred thousand dollars. The proceeds of the sale of said bonds shall be used by the Department of Economic and Community Development for grants under the business outreach center challenge grant program created under this section. All provisions of section 3-20 or the exercise of any right or power granted thereby which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Said bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of such bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission in its discretion may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due. Net earnings on investments or reinvestments of proceeds, accrued interest and premiums on the issuance of such bonds, after payment therefrom of expenses incurred by the Treasurer or State Bond Commission in connection with their issuance, shall become part of the business outreach center challenge grant program.

Sec. 11. Section 32-23x of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) As used in this section:

(1) "Affiliate" means a business concern which directly controls or is controlled by another business concern, or a third party which controls both business concerns;

(2) "Corporation" means Connecticut Innovations, Incorporated established under section 32-35 or its successor;

(3) "Department" means the Department of Economic and Community Development or its successor agency;

(4) "Enterprise zone" has the same meaning as provided in section 32-70;

(5) "Impacted business" means any person impacted by (A) a disaster caused by natural forces including, but not limited to, floods or hurricanes, or (B) an economic emergency including, but not limited to, an existing or threatened major plant shutdown, business disruption from a major road or bridge repair project or other existing or potential economic emergency, provided such disaster or emergency described in subparagraph (A) or (B) of this subdivision is proclaimed as such by declaration of the Commissioner of Economic and Community Development, with the consent of the Secretary of the Office of Policy and Management, upon a determination by the Commissioner of Economic and Community Development that such disaster or emergency is of a magnitude that could materially affect the health or well-being of the citizens of the impacted area and that the financial assistance provided for under this section is necessary to assure timely and effective relief and restoration;

(6) "Loans" means loans and extensions of lines of credit;

(7) "Minority business enterprise" means any person who meets the criteria contained in section 4a-60g, as amended by this act, and who is receiving a state contract award;

(8) "Person" means any person or entity, including affiliates, engaged in a for-profit activity or activities in this state and who, except for an impacted business, is not an eligible borrower for assistance under the provisions of the Connecticut Growth Fund established under section 32-23v;

(9) "Rate of interest" means the interest rate which the corporation shall charge and collect on each loan made by the state under this section, which rate shall not exceed one per cent above the interest rate borne by the general obligation bonds of the state last issued prior to the date such loan is made, provided, such rate shall not exceed the maximum allowable under federal law;

(10) "Small contractor" means any person who is a contractor, subcontractor, manufacturer or service company who has been in business for at least one year prior to the date of its application for assistance under this section and whose gross revenues, including revenues of affiliates, did not exceed three million dollars in its most recently completed fiscal year prior to the date of its application for assistance under this section;

(11) "State or local development corporation" means any entity organized under the laws of this state which has the authority to promote and assist the growth and development of business concerns in the areas covered by their operations;

(12) "Targeted business" means a person located in an enterprise zone whose gross revenues did not exceed three million dollars in its most recently completed fiscal year prior to the date of its application for assistance under this section, or if such person has not been in business for at least one year prior to the date of such application, if the corporation determines in its discretion that such person's gross revenues, including revenues of affiliates, are not likely to exceed three million dollars in its first fiscal year;

(13) "Water facilities" means (A) investor-owned water companies which supply water to at least twenty-five but less than ten thousand customers, (B) municipally-owned water companies, and (C) owners of privately and municipally-owned dams which the Commissioner of Energy and Environmental Protection has determined benefit the public; and

(14) "Women-owned business enterprise" means any person who meets the criteria contained in section 4a-60g, as amended by this act, and who is receiving a state contract award.

(b) In order to stimulate and encourage the growth and development of the state economy, the Comprehensive Business Assistance Fund is hereby created to provide financial assistance to targeted businesses, businesses impacted by economic emergencies and natural disasters, businesses located in certain regions of the state and certain industry sectors, including businesses located in entertainment districts designated under section 32-76 or established under section 2 of public act 93-311, and to assist in the development of clean water facilities. The state, acting through the corporation, may make, or participate with private sector financial institutions in making, loans from said fund to persons in accordance with the provisions of this section. Payments of principal and interest on such loans, and funds received by the corporation from any other source for the purposes of the Comprehensive Business Assistance Fund, shall be deposited into said fund and shall be used to make additional loans and for such other purposes authorized by this section.

(c) The state, acting through the corporation, may make, or participate with private sector financial institutions in making, loans from the Comprehensive Business Assistance Fund to any person who in the discretion of the corporation, demonstrates financial need by either its inability to obtain conventional financial assistance in satisfactory amounts or on satisfactory terms in accordance with the following provisions:

(1) The corporation may make loans at the rate of interest to small contractors, women-owned business enterprises and minority business enterprises for the purpose of financing labor and material costs only. The aggregate outstanding amount of any loans made under this subdivision to any one person, including affiliates, shall not exceed two hundred fifty thousand dollars. The maximum term for repayment of any loan made under this subdivision shall not exceed one year.

(2) The corporation may make loans at the rate of interest to targeted businesses. The aggregate outstanding amount of any loans made under this subdivision to any one person, including affiliates, shall not exceed three hundred thousand dollars. The maximum term for repayment of any loan made under this subdivision shall not exceed (A) twenty years for real property; (B) ten years for machinery and equipment; and (C) seven years for working capital. For the purposes of this subdivision and subdivision (3) of this subsection, working capital may include, but shall not be limited to, capital for expansion or restructuring of a business.

(3) The corporation may make loans at the rate of interest to impacted businesses. The aggregate outstanding amount of any loans made under this subdivision to any one person, including affiliates, shall not exceed five hundred thousand dollars, except the corporation, with the consent of the Secretary of the Office of Policy and Management, may increase the maximum loan amount under this subdivision to one million dollars if the corporation in its discretion determines that the particular needs and conditions of such impacted business warrant such increase. The maximum term for repayment of any loan made under this subdivision shall not exceed (A) twenty years for real property; (B) ten years for machinery and equipment; and (C) seven years for working capital.

(4) The corporation may make loans at the rate of interest to water facilities. Such loans shall be used for the planning, design, modification or construction of drinking water facilities made necessary by the requirements of the Safe Water Act of 1974 or by an order of the Department of Public Health, which drinking water facilities shall include, but shall not be limited to, collection facilities, treatment facilities, wells, tanks, mains, pumps, transmission facilities and any other machinery and equipment necessary to meet the requirements of said act. Such loans shall also be used for the repair of dams subject to the jurisdiction of the Department of Energy and Environmental Protection under chapter 446j. For the purposes of this subdivision, repair costs include, but shall not be limited to, fees and expenses of architects, engineers, attorneys, accountants and other professional consultants, and costs of preparing surveys, studies, site plans and specifications for such repair. The aggregate outstanding amount of any loans made under this subdivision to any water facility, including affiliates, shall not exceed two hundred fifty thousand dollars. The maximum term for repayment of any loan made under this subdivision shall not exceed (A) twenty years for real property; and (B) ten years for machinery and equipment.

(5) The corporation may make loans at zero per cent interest to municipal economic development commissions established under section 7-136 or business outreach centers described in section 32-9qq, as amended by this act, that establish or participate in loan pools that lend funds to (A) persons or groups of persons who complete entrepreneurial training programs funded or approved by the Commissioner of Economic and Community Development, or (B) business support groups. As used in this subdivision, "business support group" means a group of five or more persons, firms or corporations which plans to start or expand separate businesses, has community or other ties demonstrating a common mission or purpose, agrees to undergo an entrepreneurial training program funded or approved by the commissioner, and each member of which agrees to provide business support to other members of the group. The aggregate outstanding amount of any loans made under this subdivision to any one person, group of persons or business support group shall not exceed twenty-five thousand dollars. The maximum term for repayment of any loan made under this subdivision shall not exceed ten years.

(6) The corporation shall make loans at the rate of interest to entertainment or entertainment support service businesses located in the municipality with the pilot entertainment district established pursuant to section 2 of public act 93-311, and on and after July 1, 1995, may make loans at the rate of interest to entertainment or entertainment support service businesses located in municipalities with entertainment districts designated under section 32-76.

(d) The state, acting through the corporation, may make loans to state or local development corporations, for the purpose of providing funds to enable such state or local development corporations to make loans to any person eligible for assistance under subsection (c) of this section. The aggregate outstanding amount of any loan made under this subsection to a state or local development corporation for a loan with respect to any one project shall not exceed one million dollars.

(e) To carry out the purposes of this section, the corporation shall have those powers set forth in section 32-23e. The corporation shall also have the power to take all reasonable steps and exercise all available remedies necessary or desirable to protect the obligations or interests of the corporation including, but not limited to, the purchase or redemption on foreclosure proceedings, bankruptcy proceedings or in other judicial proceedings of any property on which it holds a mortgage or other lien or in which it has an interest, and for such purposes payment may be made from the Comprehensive Business Assistance Fund.

(f) The borrower shall pay such costs of processing applications for loans made under this section, including closing costs, as the corporation determines are reasonable and necessary. The department may assist the corporation in carrying out the provisions of this section and any administrative expenses incurred by the department for services provided to the corporation or expenses incurred by the corporation in carrying out the provisions of this section to the extent not paid by the borrower or from moneys appropriated to the department or the corporation for such purposes, may be paid from the Comprehensive Business Assistance Fund.

(g) Each loan may be authorized by the corporation or, if the corporation so determines, by a committee of the corporation, one of whose members may be its chief executive officer.

(h) Payments from the Comprehensive Business Assistance Fund to eligible borrowers or to pay administrative expenses shall be made upon certification by the chief executive officer of the corporation that payment is authorized under the provisions of this section and under any applicable regulations or program criteria of the corporation.

(i) For the purposes of this section, the State Bond Commission shall have the power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate seventeen million three hundred fifty thousand dollars. The proceeds from the sale of said bonds shall be used by the department to make grants to the corporation for deposit in the Comprehensive Business Assistance Fund for the purposes authorized under this section. The terms and conditions of such grants shall be governed in accordance with a grant contract entered into between the department and the corporation. All provisions of section 3-20 or the exercise of any right or power granted thereby which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of such bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission in its discretion may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due. Net earnings on any assets of the Comprehensive Business Assistance Fund, including investments or reinvestments of proceeds, accrued interest and premiums on the issuance of such bonds, after payment therefrom of expenses incurred by the Treasurer or State Bond Commission in connection with their issuance, shall become part of the Comprehensive Business Assistance Fund.

Sec. 12. Section 32-47a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

Not later than January first in each year, Connecticut Innovations, Incorporated shall submit a business plan containing a summary of its projected operations for the year to the joint standing committees of the General Assembly having cognizance of matters relating to the Department of Economic and Community Development, appropriations and capital bonding. Not later than November first, annually, the corporation shall submit a report to the Commissioner of Economic and Community Development, the Auditors of Public Accounts and said joint standing committees, which shall include the following information with respect to new and outstanding financial assistance provided by the corporation during the twelve-month period ending on June thirtieth next preceding the date of the report for each financial assistance program administered by the corporation: (1) A list of the names, addresses and locations of all recipients of such assistance, (2) for each such recipient: (A) The business activities, (B) the Standard Industrial Classification Manual codes, (C) the gross revenues during the recipient's most recent fiscal year, if the recipient is an organization that makes such information public in the normal course of business, or, if the recipient does not make such information public in the normal course of business, the gross revenue information shall be provided for a recipient separately, using a system in which no recipient is listed by name but each is given a separate identity in a manner consistent with the provisions of subsection (c) of section 32-40, (D) the number of employees at the time of application, (E) whether the recipient is a minority or woman-owned business, (F) a summary of the terms and conditions for the assistance, including the type and amount of state financial assistance, job creation or retention requirements, and anticipated wage rates, and (G) the amount of investments from private and other nonstate sources that have been leveraged by the assistance, (3) the economic benefit criteria used in determining which applications have been approved or disapproved, and (4) for each recipient of assistance on or after July 1, 1991, a comparison between the number of jobs to be created, the number of jobs to be retained and the average wage rates for each such category of jobs, as projected in the recipient's application, versus the actual number of jobs created, the actual number of jobs retained and the average wage rates for each such category. The Governor and the chairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and commerce may, after a request to Connecticut Innovations, Incorporated by any of said persons, examine, in confidence, the detailed data, including the specific revenue data for each identifiable business, submitted pursuant to subparagraph (C) of subdivision (2) of this section. The chairpersons and ranking members of said committees may disclose such data to the members of said committees, who shall also keep such data confidential. The report shall also indicate the actual number of full-time jobs and the actual number of part-time jobs in each such category and the benefit levels for each such subcategory. The November first report shall include a summary of the activities of the corporation, including all activities to assist small [businesses] contractors, women-owned business enterprises and minority business enterprises, as defined in section 4a-60g, as amended by this act, a complete operating and financial statement and recommendations for legislation to promote the purposes of the corporation. The corporation shall furnish such additional information upon the written request of any such committee at such times as the committee may request.

Sec. 13. Section 32-353 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

As used in [sections 32-353 to 32-355, inclusive] this section and sections 32-354 and 32-355:

(1) "Commissioner" means the Commissioner of Economic and Community Development;

(2) "Minority-owned business" means any business (A) that is a minority business enterprise, as defined in section 4a-60g, as amended by this act, and (B) that is a small business having fifty or fewer employees; [and]

(3) "Women-owned business" means any business (A) that is a women-owned business enterprise, as defined in section 4a-60g, as amended by this act, and (B) that is a small business having fifty or fewer employees; and

[(3)] (4) "Financial institution" means any trust company, bank, savings bank, credit union, savings and loan association, insurance company, investment company, mortgage banker, trustee, executor, pension fund, retirement fund or other fiduciary or private financial institution.

Sec. 14. Section 32-354 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) (1) There is established a micro-loan program for minority-owned and women-owned businesses. The commissioner may enter into a contract with a quasi-public agency, financial institution or nonprofit corporation to provide for the administration and the state-wide promotion of the program. On or before July 1, 2001, the program shall be a self sustaining revolving loan fund. No loan or loan guarantee that is not in accordance with the provisions of such contract shall be made from the fund established under subdivision (2) of this subsection.

(2) There is established a fund to be known as the "Micro-Loan Revolving Fund for Minority-Owned and Women-Owned Businesses". The fund shall contain (A) any moneys allocated pursuant to subdivision (3) of this subsection, and (B) any moneys required by law to be deposited into the fund, including, but not limited to, any moneys appropriated by the state and interest payments and principal payments on loans. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the next succeeding fiscal year. The fund shall be used to make loans and loan guarantees pursuant to subsection (b) of this section and to pay reasonable and necessary expenses incurred in administering such loans and loan guarantees and the program established under this subsection.

(3) The commissioner may allocate moneys from the Economic Assistance Revolving Fund, established under section 32-231, to the fund established under subdivision (2) of this subsection.

(b) The state, acting by and in the discretion of the commissioner, may, pursuant to a contract entered into under subdivision (1) of subsection (a) of this section, provide funds to a quasi-public agency, financial institution or nonprofit corporation to be used by such quasi-public agency, financial institution or nonprofit corporation to make loans, interest-free loans, deferred loans or loan guarantees to minority-owned and women-owned businesses. Any such loan or loan guarantee shall be used by the minority-owned or women-owned business for business start-up costs or the day-to-day operation of the business. The proceeds from any loan made pursuant to this subsection shall not be used for the refinancing of existing loans.

(c) The amount of any loan made pursuant to subsection (b) of this section shall not exceed fifty thousand dollars. The amount of any loan guarantee made pursuant to subsection (b) of this section shall not exceed thirty per cent of the principal amount.

(d) Each minority-owned or women-owned business applying for a loan or loan guarantee under subsection (b) of this section shall submit an application in such form and containing such information as the commissioner shall require. Security for such loan may include a security interest, an assignment of a lease or the subordination of a mortgage. In addition to any other conditions of default under such loan or loan guarantee, the minority-owned or women-owned business shall be in default if such loan or loan guarantee is not used for the purposes set forth in subsection (b) of this section or if the minority-owned or women-owned business fails to participate in the business management training program required under section 32-355, as amended by this act.

(e) Payments of principal and any interest on loans, interest-free loans and deferred loans made pursuant to subsection (b) of this section shall be deposited into the Micro-Loan Revolving Fund for Minority-Owned and Women-Owned Businesses established under subdivision (2) of subsection (a) of this section.

(f) The commissioner may adopt regulations, in accordance with chapter 54, to carry out the provisions of this section. Such regulations may provide for loan procedures, repayment terms, interest and security requirements, default and remedy provisions, and such other terms and conditions as the commissioner deems appropriate.

Sec. 15. Section 32-355 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

Each minority-owned or women-owned business that receives a loan or loan guarantee pursuant to section 32-354, as amended by this act, shall participate in a business management training program as designated by the commissioner. The commissioner may establish a business management training program to be administered by either the Office of Small Business Affairs or a nonprofit corporation, as determined by the commissioner, and may arrange for the participation of such other programs as the commissioner deems appropriate in implementing the business management training program. The commissioner may enter into a contract with a nonprofit corporation to provide for the administration of the business management training program pursuant to this section.

Sec. 16. Subsection (e) of section 32-602 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(e) The authority shall have the power to negotiate, and, with the approval of the Secretary of the Office of Policy and Management, to enter into an agreement with any private developer, owner or lessee of any building or improvement located on land in a private development district, as defined in section 32-600, providing for payments to the authority in lieu of real property taxes. Such an agreement shall be made a condition of any private right of development within the private development district, and shall include a requirement that such private developer, owner or lessee make good-faith efforts to hire, or cause to be hired, available and qualified women-owned business enterprises and minority business enterprises, as defined in section 4a-60g, as amended by this act, to provide construction services and materials for improvements to be constructed within the private development district in an effort to achieve a minority business enterprise utilization goal of ten per cent of the total costs of construction services and materials for such improvements. Such payments to the authority in lieu of real property taxes shall have the same lien and priority, and may be enforced by the authority in the same manner, as provided for municipal real property taxes. Such payments as received by the authority shall be used to carry out the purposes of the authority set forth in subsection (a) of this section.

Sec. 17. Subsection (b) of section 32-669 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(b) Such report shall be separated into a section on the Adriaen's Landing project and a section on The University of Connecticut football stadium project and shall contain the following information: (1) A detailed estimated budget for the overall project; (2) the current timeline for the entire project, with significant milestone events, from inception to projected completion date; (3) for each project component, including, but not limited to, the science center, (A) a description of the component, (B) its current budget in detail, comparing it to the budget presented to the General Assembly prior to May 2, 2000, (C) projected completion date, (D) any change made in the course of planning and execution over the prior calendar year and reasons for such change, and (E) status at the end of such calendar year; (4) problems encountered in the prior calendar year and potential problems in the future; (5) status of the project's compliance with the provisions of section 32-605, including, but not limited to, (A) a description of each contract entered into during the prior calendar year, (B) whether any contractor is a [woman-owned] women-owned business enterprise, a minority business enterprise or a small business enterprise, as those terms are defined in section 4a-60g, as amended by this act, (C) the value of such contract, (D) any subcontractors under such contract, the value of the subcontract and whether any subcontractor is a [woman-owned] women-owned business enterprise, a minority business enterprise or a small business enterprise, as those terms are defined in section 4a-60g, as amended by this act, (E) the number of jobs associated with such contract, including the number of jobs held by residents of Hartford and East Hartford and the number of jobs held by women and minorities, and (F) any steps being taken for affirmative action and corrective measures for any deficiencies; (6) a detailed projected annual operating budget for each facility, including information regarding how much funding the state will be required to provide and how much the municipality will be required to provide; (7) a timeline showing when operating expenses may be incurred prior to the project's completion, including how much of such expenses will be provided by the state in each year and how much will be provided by the host municipality; (8) current estimates for funding from all state and private sources for each component of the project for each fiscal year in which the funding is made available; (9) a summary of the total funding for the project from each of the following sources: (A) General obligation bonds, (B) funding from the General Fund operating surplus, (C) revenue bonds issued by the Capital Region Development Authority, with the associated General Fund costs, including, but not limited to, General Fund debt service reimbursement for the parking garage and utility plant, (D) tax exemptions or credits granted to any part of the project, (E) payments in lieu of taxes made to any municipality for any component of the project, (F) the operating subsidy for the convention center and the science center, (G) private investments, and (H) any other sources; and (10) detailed financial information regarding the income and expenses of any public entities operating at Adriaen's Landing.

Sec. 18. Section 46a-68b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

As used in this section and sections 4a-60, 4a-60a, [4a-60g,] 4a-62, as amended by this act, 46a-56 and 46a-68c to 46a-68k, inclusive: "Public works contract" means any agreement between any individual, firm or corporation and the state or any political subdivision of the state other than a municipality for construction, rehabilitation, conversion, extension, demolition or repair of a public building, highway or other changes or improvements in real property, or which is financed in whole or in part by the state, including, but not limited to, matching expenditures, grants, loans, insurance or guarantees.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2015

4a-60g

Sec. 2

October 1, 2015

4a-60h

Sec. 3

October 1, 2015

4a-52a(e)

Sec. 4

October 1, 2015

4a-57(a)

Sec. 5

October 1, 2015

4a-61

Sec. 6

October 1, 2015

4a-62

Sec. 7

October 1, 2015

4b-91(a)(5)

Sec. 8

October 1, 2015

4e-15

Sec. 9

October 1, 2015

22a-263a

Sec. 10

October 1, 2015

32-9qq

Sec. 11

October 1, 2015

32-23x

Sec. 12

October 1, 2015

32-47a

Sec. 13

October 1, 2015

32-353

Sec. 14

October 1, 2015

32-354

Sec. 15

October 1, 2015

32-355

Sec. 16

October 1, 2015

32-602(e)

Sec. 17

October 1, 2015

32-669(b)

Sec. 18

October 1, 2015

46a-68b

Statement of Purpose:

To require state-wide percentage goals for the award of state procurement contracts to women-owned and minority business enterprises and participation percentage goals for such enterprises.

[Proposed deletions are enclosed in brackets. Proposed additions are 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.]

Co-Sponsors:

REP. CANDELARIA, 95th Dist.

H.B. 6638

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