Senate Bill No. 525 mandates that state contracting agencies prioritize manufacturers, fabricators, and erectors located within Connecticut when awarding contracts for public works projects, including construction, renovation, and demolition of public buildings. If no in-state contractors are available, preference must then be given to those located elsewhere in the United States. This requirement overrides existing laws that typically necessitate competitive bidding to select the lowest responsible qualified bidder. The bill defines "contracting agency" in accordance with existing statutes and is set to take effect on October 1, 2025.
The bill also introduces potential fiscal implications, estimating costs of $227,000 for the Department of Administrative Services and $92,412 for the State Comptroller in the first two fiscal years due to the need for additional personnel to manage the new bidding process. While existing law already allows for some preference to in-state contractors when conditions are equal, this bill expands that preference significantly. However, it does not clarify the extent of the preference or the criteria for determining a contractor's location, which could raise concerns regarding compliance with the U.S. Constitution's Commerce Clause.