Substitute Senate Bill No. 432 with File No. 397 addresses the relationship between the state and nonprofit human services providers by requiring the Secretary of the Office of Policy and Management (OPM) to conduct annual reviews of the state's purchase of service contracts. The goal is to ensure that the rates paid to these providers are adequate. The Secretary is also tasked with submitting an annual report to the General Assembly, which includes a summary of the review, recommendations for reducing contractual expectations if they are not adequately funded, and any necessary legislation. Additionally, the Secretary must review and streamline reporting requirements for nonprofit providers and submit a triennial report on these efforts. The bill amends section 4-70b(d) of the general statutes to ensure timely payment to providers within thirty days of service delivery and requires a review and update of the CORE-CT system. The bill entails costs for OPM, including the addition of new positions and vendor costs for the required review.

The bill defines the terms "nonprofit human services provider" and "state agency" and specifies that the payment provision becomes effective on July 1, 2024. The OPM Secretary's annual review will assess if compensation is sufficient for the services provided, with the first review due by January 1, 2025, and the first report due by February 1, 2025. The bill also mandates a triennial review of reporting requirements to eliminate or consolidate any that are unnecessary, except those essential for preventing fraud, complying with federal law, or mandated by state law. Furthermore, the bill includes provisions for the OPM Secretary to collaborate with the comptroller to modernize the CORE-CT system. The Government Administration and Elections Committee has given the bill a joint favorable vote.