Bill Text: CT HB06669 | 2015 | General Assembly | Comm Sub

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Bill Title: An Act Establishing An Office Of The Inspector General.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2015-03-31 - Referred by House to Committee on Appropriations [HB06669 Detail]

Download: Connecticut-2015-HB06669-Comm_Sub.html

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General Assembly		Substitute Bill No. 6669
January Session, 2015		*_____HB06669GAE___031215____*

AN ACT ESTABLISHING AN OFFICE OF THE INSPECTOR GENERAL.

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

Section 1. (NEW) (Effective October 1, 2015) (a) For purposes of this section and sections 2 to 4, inclusive, of this act, "governmental agency" means a state agency or a quasi-public agency and "state agency" and "quasi-public agency" have the same meanings as provided in section 1-79 of the general statutes.

(b) There is established an Office of the Inspector General that shall act to detect and prevent fraud, waste and abuse in the management of state personnel, in the use and disposition of state property, and in the collection, disbursement and expenditure of state and federal funds administered by governmental agencies. The Office of the Inspector General shall also evaluate the economy, efficiency and effectiveness of governmental agencies in the performance of their delegated duties and functions.

(c) The office shall be under the direction of the Inspector General, who shall be appointed by the Auditors of Public Accounts in accordance with this subsection, with the advice and consent of either house of the General Assembly. A committee consisting of the president pro tempore of the Senate, the speaker of the House of Representatives, the minority leaders of the Senate and the House of Representatives, the chairpersons and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to government administration and the chairpersons of the Legislative Program Review and Investigations Committee shall submit to the Auditors of Public Accounts the names of three candidates for appointment to the position of Inspector General. Not later than ninety days after the receipt of the names from the committee, the Auditors of Public Accounts shall appoint one of such candidates to be Inspector General and shall submit such nomination to either house of the General Assembly to undergo the confirmation process set forth in section 4-7 of the general statutes. If the auditors fail to make such appointment within such ninety-day period, the committee by majority vote shall make such appointment and submit such nomination to either house of the General Assembly for confirmation. The Inspector General shall be appointed on the basis of integrity and competence demonstrated in appropriate fields. The Inspector General shall hold office for a term of five years and until the appointment of a successor, in the same manner as the original appointment, unless sooner removed for just cause by the Auditors of Public Accounts. Such cause may include, but not be limited to, material neglect of duty, gross misconduct or conviction of a felony.

(d) The Office of the Inspector General shall be an independent office and shall be within the Joint Committee on Legislative Management for administrative purposes only.

Sec. 2. (NEW) (Effective October 1, 2015) (a) The Inspector General shall establish, within available appropriations, a system for the coordination of efforts between the Office of the Inspector General and officials performing similar duties and internal auditing functions within the various governmental agencies. Such system may include continuing training programs for professional development, the adoption of standard guidelines and procedures and the organization of a communications network within the system. The internal auditors and support staff within the agencies shall remain assigned to such agencies but shall have their annual internal audit program approved by the Inspector General.

(b) The Inspector General may adopt regulations, in accordance with chapter 54 of the general statutes, to implement the provisions of sections 1 to 4, inclusive, of this act. The Inspector General may employ necessary staff, within available appropriations.

Sec. 3. (NEW) (Effective October 1, 2015) (a) The Inspector General shall: (1) Conduct preemptive inspections, inquiries and investigations relating to programs and operations involving the collection, administration or expenditure of state funds, the use or disposition of state-owned or leased property or the management practices and regulatory or statutory compliance of state agencies; (2) have access to all records, data and material maintained by or available to any governmental agency; and (3) have access to all records, data and material maintained by or available to any person or organization involved in the collection, expenditure or administration of state funds, control of state-owned or leased property or management of state employees.

(b) The Inspector General may apply to the Superior Court for a subpoena to compel the attendance of such witnesses or the production of such books, papers, records or documents as may be necessary in order to obtain information that is not otherwise available and that is needed in the performance of the Inspector General's duties. The court shall, before issuing such subpoena, provide adequate opportunity for the Inspector General and the party against whom the subpoena is requested to be heard. No such subpoena shall be issued unless the court certifies that the attendance of such witness or the production of such books, papers, records or documents is reasonably necessary for the performance of the Inspector General's duties and that the Inspector General has made reasonable efforts to secure such attendance or such books, papers, records or documents without recourse to compulsory process.

Sec. 4. (NEW) (Effective October 1, 2015) (a) The Inspector General may make recommendations to the Governor, the General Assembly and the Legislative Program Review and Investigations Committee concerning the prevention and detection of fraud, waste and abuse, including recommendations concerning legislation and regulations or the coordination of preventive measures by governmental and nongovernmental entities. The Inspector General may assist or request assistance from any governmental agency, state employee or person or organization collecting or expending state funds or controlling state-owned or leased property.

(b) The Inspector General shall report findings of fact along with any recommendations: (1) To the Chief State's Attorney or the Office of State Ethics, when the Inspector General has a reasonable belief that a state law has been or is being violated; (2) to the Attorney General, when the Inspector General has a reasonable belief that civil recovery proceedings are appropriate; and (3) to the United States Attorney, when the Inspector General has a reasonable belief that a federal law has been or is being violated or when civil recovery is appropriate.

(c) On or before October 31, 2016, and annually thereafter, the Inspector General shall submit, in accordance with the provisions of section 11-4a of the general statutes, a report concerning the activities of the Office of the Inspector General to the Governor, the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies and government administration and the Legislative Program Review and Investigations Committee. The Inspector General may make such other reports as the Inspector General deems appropriate.

(d) All records of the Office of the Inspector General relating to an actual or potential inspection, or inquiry or investigation shall be confidential and shall not be public records under the Freedom of Information Act, as defined in section 1-200 of the general statutes, until such time as (1) all such inspections, inquiries or investigations have been concluded and all criminal and civil actions arising from the records have been finally adjudicated or otherwise settled, or (2) to such extent as may be deemed appropriate by the Inspector General in the performance of the Inspector General's duties, whichever is earlier. Records that are otherwise public documents shall not be deemed confidential solely because they have been transferred to the custody of the Inspector General. Where there are statutory requirements of confidentiality with regard to such records, books, data, files and other material printed or otherwise maintained by a governmental agency, such requirements of confidentiality and penalties for the violation of such requirements shall apply to the Inspector General and to the Inspector General's employees in the same manner and to the same extent as such requirements of confidentiality and penalties apply to such governmental agency and such agency's employees.

Sec. 5. Section 1-101pp of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

Any commissioner, deputy commissioner, state agency or quasi-public agency head or deputy, or person in charge of state agency procurement and contracting who has reasonable cause to believe that a person has violated the provisions of the Code of Ethics for Public Officials set forth in part I of this chapter or any law or regulation concerning ethics in state contracting shall report such belief to the Office of State Ethics, which may further report such information to the Auditor of Public Accounts, the Chief State's Attorney, [or] the Attorney General or the Inspector General.

Sec. 6. Subsection (c) of section 1-110a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(c) If the court determines, or the Attorney General certifies, that a public official or state or municipal employee, who was convicted of or pled guilty or nolo contendere to a crime related to state or municipal office, voluntarily provided information to the Attorney General, the Auditors of Public Accounts, the Inspector General or any state, federal or local law enforcement official concerning the commission of such crime related to state or municipal office by another public official or state or municipal employee who had a greater degree of culpability for such crime than the public official or state or municipal employee providing such information, the court shall not reduce or revoke the pension of such public official or state or municipal employee, provided such public official or state or municipal employee voluntarily provided such information prior to learning of a criminal investigation into such crime related to state or municipal office.

Sec. 7. Subsection (e) of section 2-90 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(e) If the Auditors of Public Accounts discover, or if it should come to their knowledge, that any unauthorized, illegal, irregular or unsafe handling or expenditure of state funds or any breakdown in the safekeeping of any resources of the state has occurred or is contemplated, they shall forthwith present the facts to the Governor, the State Comptroller, the clerk of each house of the General Assembly, the Legislative Program Review and Investigations Committee, [and] the Attorney General and the Inspector General. Any Auditor of Public Accounts neglecting to make such a report, or any agent of the auditors neglecting to report to the Auditors of Public Accounts any such matter discovered by [him] such auditor or agent or coming to his or her knowledge shall be fined not more than one hundred dollars or imprisoned not more than six months or both.

Sec. 8. Section 4-33a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

All boards of trustees of state institutions, state department heads, boards, commissions, other state agencies responsible for state property and funds and quasi-public agencies, as defined in section 1-120, shall promptly notify the Auditors of Public Accounts, [and] the Comptroller and the Inspector General of any unauthorized, illegal, irregular or unsafe handling or expenditure of state or quasi-public agency funds or breakdowns in the safekeeping of any other resources of the state or quasi-public agencies or contemplated action to do the same within their knowledge.

Sec. 9. Section 4-37j of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

Each foundation shall develop, in conjunction with the [Auditors of Public Accounts] Inspector General, and implement a written policy (1) for the investigation of any matter involving corruption, unethical practices, violation of state laws or regulations, mismanagement, gross waste of funds, abuse of authority or danger to the public safety occurring in such foundation, (2) prohibiting any officer or employee of the foundation from taking or threatening to take any personnel action against any foundation employee who transmits information concerning any such matter, (3) providing that any foundation employee who is found to have knowingly and maliciously made false charges concerning any such matter under subdivision (1) of this section shall be subject to disciplinary action by the employee's appointing authority, up to and including dismissal, and (4) requiring the foundation to provide a copy of such policy to its employees and to periodically notify the employees of the existence of the policy.

Sec. 10. Section 4-61dd of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) Any person having knowledge of any matter involving corruption, unethical practices, violation of state laws or regulations, mismanagement, gross waste of funds, abuse of authority or danger to the public safety occurring in any state department or agency or any quasi-public agency, as defined in section 1-120, or any person having knowledge of any matter involving corruption, violation of state or federal laws or regulations, gross waste of funds, abuse of authority or danger to the public safety occurring in any large state contract, may transmit all facts and information in such person's possession concerning such matter to the [Auditors of Public Accounts. The Auditors of Public Accounts] Inspector General. The Inspector General shall review such matter and report [their] his or her findings and any recommendations to the Attorney General. Upon receiving such a report, the Attorney General shall make such investigation as the Attorney General deems proper regarding such report and any other information that may be reasonably derived from such report. Prior to conducting an investigation of any information that may be reasonably derived from such report, the Attorney General shall consult with the [Auditors of Public Accounts] Inspector General concerning the relationship of such additional information to the report that has been issued pursuant to this subsection. Any such subsequent investigation deemed appropriate by the Attorney General shall only be conducted with the concurrence and assistance of the [Auditors of Public Accounts] Inspector General. At the request of the Attorney General or on [their] the Inspector General's own initiative, the [auditors] Inspector General shall assist in the investigation.

(b) (1) The [Auditors of Public Accounts] Inspector General may reject any complaint received pursuant to subsection (a) of this section if the [Auditors of Public Accounts determine] Inspector General determines one or more of the following:

(A) There are other available remedies that the complainant can reasonably be expected to pursue;

(B) The complaint is better suited for investigation or enforcement by another state agency;

(C) The complaint is trivial, frivolous, vexatious or not made in good faith;

(D) Other complaints have greater priority in terms of serving the public good;

(E) The complaint is not timely or is too long delayed to justify further investigation; or

(F) The complaint could be handled more appropriately as part of an ongoing or scheduled regular audit.

(2) If the [Auditors of Public Accounts reject] Inspector General rejects a complaint pursuant to subdivision (1) of this subsection, the [Auditors of Public Accounts] Inspector General shall provide a report to the Attorney General setting out the basis for the rejection.

(3) If at any time the [Auditors of Public Accounts determine] Inspector General determines that a complaint is more appropriately investigated by another state agency, the [Auditors of Public Accounts] Inspector General shall refer the complaint to such agency. The investigating agency shall provide a status report regarding the referred complaint to the [Auditors of Public Accounts] Inspector General upon request.

(c) Notwithstanding the provisions of section 12-15, the Commissioner of Revenue Services may, upon written request by the [Auditors of Public Accounts] Inspector General, disclose return or return information, as defined in section 12-15, to the [Auditors of Public Accounts] Inspector General for purposes of preparing a report under subsection (a) or (b) of this section. Such return or return information shall not be published in any report prepared in accordance with subsection (a) or (b) of this section, and shall not otherwise be redisclosed, except that such information may be redisclosed to the Attorney General for purposes of an investigation authorized by subsection (a) of this section. Any person who violates the provisions of this subsection shall be subject to the provisions of subsection (g) of section 12-15.

(d) The Attorney General may summon witnesses, require the production of any necessary books, papers or other documents and administer oaths to witnesses, where necessary, for the purpose of an investigation pursuant to this section or for the purpose of investigating a suspected violation of subsection (a) of section 4-275 until such time as the Attorney General files a civil action pursuant to section 4-276. Upon the conclusion of the investigation, the Attorney General shall where necessary, report any findings to the Governor, or in matters involving criminal activity, to the Chief State's Attorney. In addition to the exempt records provision of section 1-210, the [Auditors of Public Accounts] Inspector General and the Attorney General shall not, after receipt of any information from a person under the provisions of this section or sections 4-276 to 4-280, inclusive, disclose the identity of such person without such person's consent unless the [Auditors of Public Accounts] Inspector General or the Attorney General determines that such disclosure is unavoidable, and may withhold records of such investigation, during the pendency of the investigation.

(e) (1) No state officer or employee, as defined in section 4-141, no quasi-public agency officer or employee, no officer or employee of a large state contractor and no appointing authority shall take or threaten to take any personnel action against any state or quasi-public agency employee or any employee of a large state contractor in retaliation for (A) such employee's or contractor's disclosure of information to (i) an employee of the [Auditors of Public Accounts] Inspector General or the Attorney General under the provisions of subsection (a) of this section; (ii) an employee of the state agency or quasi-public agency where such state officer or employee is employed; (iii) an employee of a state agency pursuant to a mandated reporter statute or pursuant to subsection (b) of section 17a-28; or (iv) in the case of a large state contractor, an employee of the contracting state agency concerning information involving the large state contract; or (B) such employee's testimony or assistance in any proceeding under this section.

(2) (A) Not later than ninety days after learning of the specific incident giving rise to a claim that a personnel action has been threatened or has occurred in violation of subdivision (1) of this subsection, a state or quasi-public agency employee, an employee of a large state contractor or the employee's attorney may file a complaint against the state agency, quasi-public agency, large state contractor or appointing authority concerning such personnel action with the Chief Human Rights Referee designated under section 46a-57. Such complaint may be amended if an additional incident giving rise to a claim under this subdivision occurs subsequent to the filing of the original complaint. The Chief Human Rights Referee shall assign the complaint to a human rights referee appointed under section 46a-57, who shall conduct a hearing and issue a decision concerning whether the officer or employee taking or threatening to take the personnel action violated any provision of this section. The human rights referee may order a state agency or quasi-public agency to produce (i) an employee of such agency or quasi-public agency to testify as a witness in any proceeding under this subdivision, or (ii) books, papers or other documents relevant to the complaint, without issuing a subpoena. If such agency or quasi-public agency fails to produce such witness, books, papers or documents, not later than thirty days after such order, the human rights referee may consider such failure as supporting evidence for the complainant. If, after the hearing, the human rights referee finds a violation, the referee may award the aggrieved employee reinstatement to the employee's former position, back pay and reestablishment of any employee benefits for which the employee would otherwise have been eligible if such violation had not occurred, reasonable attorneys' fees, and any other damages. For the purposes of this subsection, such human rights referee shall act as an independent hearing officer. The decision of a human rights referee under this subsection may be appealed by any person who was a party at such hearing, in accordance with the provisions of section 4-183.

(B) The Chief Human Rights Referee shall adopt regulations, in accordance with the provisions of chapter 54, establishing the procedure for filing complaints and noticing and conducting hearings under subparagraph (A) of this subdivision.

(3) As an alternative to the provisions of subdivision (2) of this subsection: (A) A state or quasi-public agency employee who alleges that a personnel action has been threatened or taken may file an appeal not later than ninety days after learning of the specific incident giving rise to such claim with the Employees' Review Board under section 5-202, or, in the case of a state or quasi-public agency employee covered by a collective bargaining contract, in accordance with the procedure provided by such contract; or (B) an employee of a large state contractor alleging that such action has been threatened or taken may, after exhausting all available administrative remedies, bring a civil action in accordance with the provisions of subsection (c) of section 31-51m.

(4) In any proceeding under subdivision (2) or (3) of this subsection concerning a personnel action taken or threatened against any state or quasi-public agency employee or any employee of a large state contractor, which personnel action occurs not later than two years after the employee first transmits facts and information concerning a matter under subsection (a) of this section or discloses information under subdivision (1) of this subsection to the [Auditors of Public Accounts] Inspector General, the Attorney General or an employee of a state agency or quasi-public agency, as applicable, there shall be a rebuttable presumption that the personnel action is in retaliation for the action taken by the employee under subsection (a) of this section or subdivision (1) of this subsection.

(5) If a state officer or employee, as defined in section 4-141, a quasi-public agency officer or employee, an officer or employee of a large state contractor or an appointing authority takes or threatens to take any action to impede, fail to renew or cancel a contract between a state agency and a large state contractor, or between a large state contractor and its subcontractor, in retaliation for the disclosure of information pursuant to subsection (a) of this section or subdivision (1) of this subsection to any agency listed in subdivision (1) of this subsection, such affected agency, contractor or subcontractor may, not later than ninety days after learning of such action, threat or failure to renew, bring a civil action in the superior court for the judicial district of Hartford to recover damages, attorney's fees and costs.

(f) Any employee of a state or quasi-public agency or large state contractor, who is found by the [Auditors of Public Accounts] Inspector General, the Attorney General, a human rights referee or the Employees' Review Board to have knowingly and maliciously made false charges under subsection (a) of this section, shall be subject to disciplinary action by such employee's appointing authority up to and including dismissal. In the case of a state or quasi-public agency employee, such action shall be subject to appeal to the Employees' Review Board in accordance with section 5-202, or in the case of state or quasi-public agency employees included in collective bargaining contracts, the procedure provided by such contracts.

(g) On or before September first, annually, the [Auditors of Public Accounts] Inspector General shall submit, in accordance with the provisions of section 11-4a, to the clerk of each house of the General Assembly a report indicating the number of matters for which facts and information were transmitted to the [auditors] Inspector General pursuant to this section during the preceding state fiscal year and the disposition of each such matter.

(h) Each contract between a state or quasi-public agency and a large state contractor shall provide that, if an officer, employee or appointing authority of a large state contractor takes or threatens to take any personnel action against any employee of the contractor in retaliation for such employee's disclosure of information to any employee of the contracting state or quasi-public agency or the [Auditors of Public Accounts] Inspector General or the Attorney General under the provisions of subsection (a) or subdivision (1) of subsection (e) of this section, the contractor shall be liable for a civil penalty of not more than five thousand dollars for each offense, up to a maximum of twenty per cent of the value of the contract. Each violation shall be a separate and distinct offense and in the case of a continuing violation each calendar day's continuance of the violation shall be deemed to be a separate and distinct offense. The executive head of the state or quasi-public agency may request the Attorney General to bring a civil action in the superior court for the judicial district of Hartford to seek imposition and recovery of such civil penalty.

(i) Each state agency or quasi-public agency shall post a notice of the provisions of this section relating to state employees and quasi-public agency employees in a conspicuous place that is readily available for viewing by employees of such agency or quasi-public agency. Each large state contractor shall post a notice of the provisions of this section relating to large state contractors in a conspicuous place which is readily available for viewing by the employees of the contractor.

(j) No person who, in good faith, discloses information in accordance with the provisions of this section shall be liable for any civil damages resulting from such good faith disclosure.

(k) As used in this section:

(1) "Large state contract" means a contract between an entity and a state or quasi-public agency, having a value of five million dollars or more; and

(2) "Large state contractor" means an entity that has entered into a large state contract with a state or quasi-public agency.

Sec. 11. Subsection (f) of section 4-278 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(f) Notwithstanding the provisions of subsection (e) of this section, where the action is one that the court finds to be based primarily on disclosures of specific information that was not provided by the person bringing the action relating to allegations or transactions (1) in a criminal, civil or administrative hearing, (2) in a report, hearing, audit or investigation conducted by the General Assembly, a committee of the General Assembly, the Auditors of Public Accounts, the Inspector General, a state agency or a quasi-public agency, or (3) from the news media, the court may award from such proceeds to the person bringing the action such sums as it considers appropriate, but in no case more than ten per cent of the proceeds, taking into account the significance of the information and the role of the person bringing the action in advancing the case to litigation. Any such person shall also receive an amount for reasonable expenses that the court finds to have been necessarily incurred, plus reasonable attorneys' fees and costs. All such expenses, fees and costs shall be awarded against the defendant.

Sec. 12. Subsection (b) of section 4-282 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(b) Unless opposed by the state, the court shall dismiss an action or claim brought under section 4-277 if allegations or transactions that are substantially the same as those alleged in the action or claim were publicly disclosed (1) in a state criminal, civil or administrative hearing in which the state or its agent is a party, (2) in a report, hearing, audit or investigation conducted by the General Assembly, a committee of the General Assembly, the Auditors of Public Accounts, the Inspector General, a state agency or quasi-public agency, or (3) by the news media, except the court shall not dismiss such action or claim if the action or claim is brought by the Attorney General or the person who is an original source of information.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2015	New section
Sec. 2	October 1, 2015	New section
Sec. 3	October 1, 2015	New section
Sec. 4	October 1, 2015	New section
Sec. 5	October 1, 2015	1-101pp
Sec. 6	October 1, 2015	1-110a(c)
Sec. 7	October 1, 2015	2-90(e)
Sec. 8	October 1, 2015	4-33a
Sec. 9	October 1, 2015	4-37j
Sec. 10	October 1, 2015	4-61dd
Sec. 11	October 1, 2015	4-278(f)
Sec. 12	October 1, 2015	4-282(b)

Statement of Legislative Commissioners:

In Sec. 1(c), "either house of" was inserted before "General Assembly" for internal consistency and in Sec. 4(d) Subdiv. designators (1) and (2) were added for clarity and "and such agency's employees" was added for consistency.

GAE

Joint Favorable Subst. -LCO