Substitute House Bill No. 7092 seeks to enhance accountability and transparency in state agency operations and their associated foundations by implementing several key changes to existing laws. The bill repeals Section 4-40b, replacing it with provisions that prohibit state agencies from making payments over fifty thousand dollars to employees resigning or retiring to avoid litigation costs or under nondisparagement agreements, unless authorized by the Attorney General or Governor. It also ensures that such agreements do not impede employees from making complaints or providing information under whistleblower protections. Additionally, the bill modifies Section 4-37f to establish clearer governance requirements for foundations, mandating the formation of a governing board, specifying its composition, and outlining funding purposes, while updating auditing requirements based on the foundation's financial size.

Moreover, the bill introduces amendments regarding the relationship between The University of Connecticut and its foundation, requiring comprehensive annual reports if the foundation's endowment exceeds $1.5 million, and clarifying that such information will be public record with certain exceptions. It establishes a written agreement between state agencies and foundations regarding resource use and financial obligations, including provisions for cash compensation based on endowment value. The bill also mandates the Commissioner of Administrative Services to create a model complaint policy for state agencies, which must be implemented by February 1, 2026. Other changes include revised auditing procedures, new reporting timelines for quasi-public agencies, and a prohibition on settlement agreements that prevent employees from working while receiving their salary, all effective October 1, 2025.

Statutes affected:
Raised Bill: 4-40b, 4-37f, 2-90, 2-90d, 4-216, 1-123
GOS Joint Favorable Substitute: 4-40b, 4-37f, 2-90, 2-90d, 4-216, 1-123
File No. 515: 4-40b, 4-37f, 2-90, 2-90d, 4-216, 1-123