Hartford — A bipartisan group of Eastern Connecticut legislators led the passage of a bill this week that they say provides for more oversight and financial transparency of the Connecticut Port Authority, a fledgling quasi-public agency whose early years were marred by controversy.

The bill requires the port authority to submit regular financial reports and status updates on pending contracts, small harbor projects and the $235.5 million construction project at State Pier in New London. The Senate passed the bill on Wednesday, followed by the House on Friday. The bill is expected to go back to the Senate for passage of a technical revision.

In addition to the reporting requirements, the bill adds six new members to the port authority board of directors. Three of the new members are chief elected officials or their designees from New London, New Haven and Bridgeport — all deepwater port cities. There will also be representatives from municipalities with small harbors on the board.

State Rep. Anthony Nolan, D-New London, co-sponsored the bill and said he consistently pushed for New London to have a seat at the table, especially considering the port authority's State Pier project is in New London and the city was mostly left out of many of the discussions concerning its development and financial benefits. State Pier is to be modernized to accommodate a staging area for offshore wind turbines.

“The benefit of this legislation is it’s making sure people are held accountable,” Nolan said. “We have more eyes on the Connecticut Port Authority now.”

State Sen. Cathy Osten, D-Sprague, said a provision in the bill to include representation from small port towns like Norwich and Groton addresses concerns that the deepwater port cities would garner all of the attention. Not included in the final language of the bill is a provision that would have allowed the state’s Contracting Standards Board the ability to review contracts from the port authority and other quasi-public agencies. Osten said it would have provided for “another set of eyes.”

State Rep. Christine Conley, D-Groton, called the bill an “important step” that will provide the state with information that could hopefully avoid the issues that have plagued the authority in the past.

A state audit in 2019 revealed mismanagement, accounting deficiencies and a lack of financial and personnel policies and procedures within the port authority. It led to the resignation of the authority’s former executive director and two of the agency’s former board chairs. It also led to skepticism from some lawmakers about the authority’s ability to continue its mission or manage the massive State Pier project on its own. There had been questions asked by state lawmakers about what it would take to return the duties of the port authority to the state Department of Transportation.

The port authority was established by legislation 2014 to manage and promote the state’s maritime assets and began meeting in 2016. Former board members, in testimony before a state legislative committee in 2019, said the authority did not get much direction from the state.

“It’s something we can learn from and now ensure the (quasi-public agencies) have the appropriate amount of money, staffing and the helping hand of our state agencies (related to) financial policies and procedures,” Conley said. “If there is trouble, like there was in this case, we have eyes and ears on contracts and financials.”

“Having financial reports will make a lot more folks feel comfortable,” she said. “There is a lot of state dollars involved in the port authority and the project at State Pier.”

The bill ensures that reports from the port authority are reviewed by the state Department of Administrative Services and Office of Policy and Management.

Port authority board Chairman David Kooris said the authority's work with OPM is nearing its end, with the term of the memorandum of understanding expected to end at the end of June. Following the sunset of the memorandum, OPM will issue a final report summarizing its actions, recommendations and policy revisions to date.

"As a result of the Authority's close collaboration with OPM from September 2019 to present, adoption of a multitude of foundational policy and procedure documents and an increase in staff capacity and experience, the Authority is confident it is well positioned to fulfill its mission as envisioned by the legislature to advance the interests of Connecticut's maritime economy," Kooris said.

Senate Republican Leader Pro Tempore Paul Formica, R-East Lyme, released a statement following the unanimous Senate passage of the bill earlier this week. He has repeatedly expressed concern over the massive cost increase of the State Pier project, which has risen from $93 million to $235 million.

“Now, the CPA will need to provide a report to the legislature's Transportation Committee every three months to update the project statuses and costs,” Formica said.

He had urged passage of the bill in the House, “so we can finally have some safeguards in place to better manage a quasi-public agency that has overenjoyed an excessive amount of latitude.”

“As we embark on Connecticut's offshore wind energy project, the state cannot afford to let a lack of oversight allow this effort to fail,” he said.

State Sen. Heather Somers, on the Senate floor this week, said that over the past several years, the port authority “in my opinion has lost its way.”

"Accountability is something that has on some levels escaped us. We have a new chair and we have a new director and I hope this will be a new page for the port authority here in the state of Connecticut,” she said. “I think this is a good start and I’m hoping that with the reports and transparencies, that we will be able to put some of the controversial questions behind us ... and be able to be proud of our port authority."

Authority Executive Director John Henshaw said the authority welcomes the opportunity to provide the legislature with more frequent updates “on any of the aspects of our operations, particularly those that legislators have identified as most critical.”

"We hope the modest additional reporting requirements proposed through this bill, in addition to the significant amount of materials we continue to provide through preexisting annual reporting requirements, will further supplement our interactions with members of the legislature, as well as enhance the public discussions at our board and committee meetings," Henshaw said.

Other co-sponsors of the bill included state Sen. Norm Needleman, D-Essex, and Rep. Joe de la Cruz, D-Groton.  

g.smith@theday.com