The proposed bill, Substitute Bill No. 1231, aims to enhance the oversight and efficiency of state contracts with nonprofit human services providers. It defines "nonprofit human services provider" and mandates the Secretary of the Office of Policy and Management to conduct a review of the state's purchase of service contracts every five years, starting January 1, 2026. This review will assess whether the compensation rates for these providers are adequate and will include an examination of contracts from at least two state agencies annually after July 1, 2026. Additionally, the Secretary is required to submit a report to relevant legislative committees, summarizing the review findings and offering recommendations for any necessary legislative changes.

Furthermore, the bill introduces a requirement for the Secretary to review the reporting obligations of nonprofit human services providers every three years, starting January 1, 2026. The Secretary is tasked with eliminating or consolidating any reporting deemed unduly burdensome or duplicative, unless it is necessary to prevent fraud, mandated by federal law, or required by state law. The bill also repeals and replaces a subsection of the general statutes to establish uniform policies for the timely payment of services provided under purchase of service contracts, ensuring that providers receive payment within 45 days of a properly completed claim. Overall, the bill seeks to streamline processes and improve the financial sustainability of nonprofit human services providers in Connecticut.