Expansion of State’s Affirmative Action Program Remains in Effect

In a prior posting on this blog, I explained that a Connecticut program, which requires contractors on state public works construction projects to submit affirmative action plans to the Commission on Human Rights and Opportunities (the “Commission”) for approval, was being expanded to include projects administered by municipal and quasi-governmental agencies, and that the program’s expansion would be a problem because the Commission was already experiencing a backlog of submitted affirmative action plans requiring approval.  The Commission’s backlog has a significant impact on the construction industry because the “[f]ailure to develop an approved affirmative action plan … shall act as a bar to bidding on or the award of future contracts [and the Commission’s approval] shall be prima facie proof of the contractor’s eligibility to bid or be awarded contracts.”  Conn. Gen. Stat. § 46a-68c.  Thus, at a minimum, until the Commission is in a position to handle the required workload, the expanded program will significantly impact the state’s construction industry.

Due to the current situation, legislation was proposed last session that, if it had been passed, would have delayed the implementation of the expanded program until July 1, 2019. H.B.-5049.  The proposal to delay the expansion of the program was supported by trade associations and governmental agencies alike.

Expansion of State’s Affirmative Action Program May Be Problematic

In Connecticut, the state’s Commission on Human Rights and Opportunities administers an affirmative action program that has, until recently, only applied to state public works construction projects whose cost is greater than $50,000. Although the program has admirable goals, its implementation has been inconsistent. Part of the problem is the Commission’s inability to effectively administer the program. For example, effective January 1, 2015, the Commission instituted a “temporary policy” that allowed it to retain 2 percent retainage for a period of at least 120 days while the Commission “works diligently to eliminate of its backlog” of affirmative action plans requiring approval. Almost a year later, that temporary policy remains in effect despite its questionable validity.

Section 46a-68j-26 requires the Commission to review affirmative actions plans within 60 days of receipt; yet, it has failed to do so. As a result, by executive fiat, the Commission gave itself the right to retain a contractor’s funds while it takes more than twice the time allowed by its own regulations to perform its designated function. Moreover, if the Commission was experiencing a backlog at the beginning of the year, that problem must be getting worse. Effective October 1, 2015, the affirmative action requirements now apply to every “municipal public works contract or contract for a quasi-public agency.” Conn.