The proposed legislation, General Assembly Raised Bill No. 1231, aims to enhance the oversight and evaluation of state contracts with nonprofit human services providers. It mandates that the Secretary of the Office of Policy and Management conduct a review by January 1, 2026, and every five years thereafter, to assess whether the compensation rates for these providers are adequate for the services they deliver. The review will involve examining contracts from at least two state agencies each year and will culminate in a report to relevant legislative committees, which will include findings and recommendations for potential legislative changes. Additionally, the bill requires a triennial review of reporting requirements imposed on nonprofit providers, with the goal of eliminating or consolidating any burdensome or duplicative reporting, unless necessary for compliance with federal law or to prevent fraud.

Furthermore, the bill includes a significant amendment to section 4-70b of the general statutes, establishing uniform policies for the management and evaluation of health and human services purchased from private providers. It stipulates that, to the extent permissible under federal law, providers must receive payment for services within 45 days of submitting a properly completed claim. The bill also repeals sections 17a-227d and 17a-476a, which pertained to the cost allowance cap for executive director salaries in certain state agencies' grant calculations. Overall, the legislation seeks to improve the efficiency and effectiveness of state contracts with nonprofit human services providers while ensuring they are fairly compensated for their services.