House Bill No. 7363
Public Act No. 19-199
AN ACT PROHIBITING C ERTAIN RECOUPMENT PR OVISIONS IN
PHARMACY SERVICES CO NTRACTS AND CONCERNI NG A
PREVAILING RATE OF W AGES EXEMPTION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 38a-477cc of the general statutes is repealed and
the following is substituted in lieu thereof (Effective October 1, 2019):
(a) [On and after January 1, 2018, no] No contract for pharmacy
services entered into in the state between a health carrier, as defined in
section 38a-591a, or pharmacy benefits manager, as defined in section
38a-479aaa, and a pharmacy or pharmacist shall:
(1) On and after January 1, 2018, contain a provision prohibiting or
penalizing, including through increased utilization review, reduced
payments or other financial disincentives, a pharmacist's disclosure to
an individual purchasing prescription medication of information
regarding: [(1) the]
(A) The cost of the prescription medication to the individual; [,] or
[(2) the]
(B) The availability of any therapeutically equivalent alternative
medications or alternative methods of purchasing the prescription House Bill No. 7363
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medication, including, but not limited to, paying a cash price, that are
less expensive than the cost of the prescription medication to the
individual; [.] and
(2) On and after January 1, 2020, contain a provision permitting the
health carrier or pharmacy benefits manager to recoup, directly or
indirectly, from a pharmacy or pharmacist any portion of a claim that
such health carrier or pharmacy benefits manager has paid to the
pharmacy or pharmacist, unless such recoupment is permitted under
section 38a-479iii or required by applicable law.
(b) (1) On and after January 1, 2018, no health carrier or pharmacy
benefits manager shall require an individual to make a payment at the
point of sale for a covered prescription medication in an amount
greater than the lesser of: [(1) the]
(A) The applicable copayment for such prescription medication; [,
(2) the]
(B) The allowable claim amount for the prescription medication; [,]
or [(3) the]
(C) The amount an individual would pay for the prescription
medication if the individual purchased the prescription medication
without using a health benefit plan, as defined in section 38a-591a, or
any other source of prescription medication benefits or discounts.
(2) For the purposes of this subsection, "allowable claim amount"
means the amount the health carrier or pharmacy benefits manager
has agreed to pay the pharmacy for the prescription medication.
(c) Any provision of a contract that violates the provisions of this
section shall be void and unenforceable. Any general business practice
that violates the provisions of this section shall constitute an unfair
trade practice pursuant to chapter 735a. The invalidity or House Bill No. 7363
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unenforceability of any contract provision under this subsection shall
not affect any other provision of the contract.
(d) The Insurance Commissioner may: [, (1) pursuant to the
provisions of chapter 697, enforce]
(1) Enforce the provisions of this section [,] pursuant to chapter 697;
and
(2) [upon] Upon request, audit a contract for pharmacy services for
compliance with the provisions of this section.
Sec. 2. Section 31-53 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2019):
(a) Each contract for the construction, remodeling, refinishing,
refurbishing, rehabilitation, alteration or repair of any public works
project by the state or any of its agents, or by any political subdivision
of the state or any of its agents, shall contain the following provision:
"The wages paid on an hourly basis to any person performing the
work of any mechanic, laborer or worker on the work herein
contracted to be done and the amount of payment or contribution paid
or payable on behalf of each such person to any employee welfare
fund, as defined in subsection (i) of this section, shall be at a rate equal
to the rate customary or prevailing for the same work in the same
trade or occupation in the town in which such public works project is
being constructed. Any contractor who is not obligated by agreement
to make payment or contribution on behalf of such persons to any such
employee welfare fund shall pay to each mechanic, laborer or worker
as part of such person's wages the amount of payment or contribution
for such person's classification on each pay day."
(b) Any contractor or subcontractor who knowingly or wilfully
employs any mechanic, laborer or worker in the construction,
remodeling, refinishing, refurbishing, rehabilitation, alteration or House Bill No. 7363
Public Act No. 19-199 4 of 10
repair of any public works project for or on behalf of the state or any of
its agents, or any political subdivision of the state or any of its agents,
at a rate of wage on an hourly basis that is less than the rate customary
or prevailing for the same work in the same trade or occupation in the
town in which such public works project is being constructed,
remodeled, refinished, refurbished, rehabilitated, altered or repaired,
or who fails to pay the amount of payment or contributions paid or
payable on behalf of each such person to any employee welfare fund,
or in lieu thereof to the person, as provided by subsection (a) of this
section, shall be fined not less than two thousand five hundred dollars
but not more than five thousand dollars for each offense and (1) for the
first violation, shall be disqualified from bidding on contracts with the
state or any political subdivision until the contractor or subcontractor
has made full restitution of the back wages owed to such persons and
for an additional six months thereafter, and (2) for subsequent
violations, shall be disqualified from bidding on contracts with the
state or any political subdivision until the contractor or subcontractor
has made full restitution of the back wages owed to such persons and
for not less than an additional two years thereafter. In addition, if it is
found by the contracting officer representing the state or political
subdivision of the state that any mechanic, laborer or worker
employed by the contractor or any subcontractor directly on the site
for the work covered by the contract has been or is being paid a rate of
wages less than the rate of wages required by the contract to be paid as
required by this section, the state or contracting political subdivision of
the state may (A) by written or electronic notice to the contractor,
terminate such contractor's right to proceed with the work or such part
of the work as to which there has been a failure to pay said required
wages and to prosecute the work to completion by contract or
otherwise, and the contractor and the contractor's sureties shall be
liable to the state or the contracting political subdivision for any excess
costs occasioned the state or the contracting political subdivision
thereby, or (B) withhold payment of money to the contractor or House Bill No. 7363
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subcontractor. The contracting department of the state or the political
subdivision of the state shall, not later than two days after taking such
action, notify the Labor Commissioner, in writing or electronically, of
the name of the contractor or subcontractor, the project involved, the
location of the work, the violations involved, the date the contract was
terminated, and steps taken to collect the required wages.
(c) The Labor Commissioner may make complaint to the proper
prosecuting authorities for the violation of any provision of subsection
(b) of this section.
(d) For the purpose of predetermining the prevailing rate of wage
on an hourly basis and the amount of payment or contributions paid or
payable on behalf of each person to any employee welfare fund, as
defined in subsection (i) of this section, in each town where such
contract is to be performed, the Labor Commissioner shall (1) hold a
hearing at any required time to determine the prevailing rate of wages
on an hourly basis and the amount of payment or contributions paid or
payable on behalf of each person to any employee welfare fund, as
defined in subsection (i) of this section, upon any public work within
any specified area, and shall establish classifications of skilled,
semiskilled and ordinary labor, or (2) adopt and use such appropriate
and applicable prevailing wage rate determinations as have been made
by the Secretary of Labor of the United States under the provisions of
the Davis-Bacon Act, as amended.
(e) The Labor Commissioner shall determine the prevailing rate of
wages on an hourly basis and the amount of payment or contributions
paid or payable on behalf of such person to any employee welfare
fund, as defined in subsection (i) of this section, in each locality where
any such public work is to be constructed, and the agent empowered
to let such contract shall contact the Labor Commissioner, at least ten
but not more than twenty days prior to the date such contracts will be
advertised for bid, to ascertain the proper rate of wages and amount of House Bill No. 7363
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employee welfare fund payments or contributions and shall include
such rate of wage on an hourly basis and the amount of payment or
contributions paid or payable on behalf of each person to any
employee welfare fund, as defined in subsection (i) of this section, or in
lieu thereof the amount to be paid directly to each person for such
payment or contributions as provided in subsection (a) of this section
for all classifications of labor in the proposal for the contract. The rate
of wage on an hourly basis and the amount of payment or
contributions to any employee welfare fund, as defined in subsection
(i) of this section, or cash in lieu thereof, as provided in subsection (a)
of this section, shall, at all times, be considered as the minimum rate
for the classification for which it was established. Prior to the award of
any contract, purchase order, bid package or other designation subject
to the provisions of this section, such agent shall certify to the Labor
Commissioner, either in writing or electronically, the total dollar
amount of work to be done in connection with such public works
project, regardless of whether such project consists of one or more
contracts. Upon the award of any contract subject to the provisions of
this section, the contractor to whom such contract is awarded shall
certify, under oath, to the Labor Commissioner the pay scale to be used
by such contractor and any of the contractor's subcontractors for work
to be performed under such contract.
(f) Each employer subject to the provisions of this section, section
31-53c or 31-54 shall (1) keep, maintain and preserve such records
relating to the wages and hours worked by each person performing the
work of any mechanic, laborer and worker and a schedule of the
occupation or work classification at which each person performing the
work of any mechanic, laborer or worker on the project is employed
during each work day and week in such manner and form as the Labor
Commissioner establishes to assure the proper payments due to such
persons or employee welfare funds under this section, section 31-53c
or 31-54, regardless of any contractual relationship alleged to exist House Bill No. 7363
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between the contractor and such person, provided such employer shall
have the option of keeping, maintaining and preserving such records
in an electronic format, and (2) submit monthly to the contracting
agency or the Department of Economic and Community Development
pursuant to section 31-53c by mail, electronic mail or other method
accepted by such agency or the Department of Eco nomic and
Community Development, a certified payroll that shall consist of a
complete copy of such records accompanied by a statement signed by
the employer that indicates (A) such records are correct; (B) the rate of
wages paid to each person performing the work of any mechanic,
laborer or worker and the amount of payment or contributions paid or
payable on behalf of each such person to any employee welfare fund,
as defined in subsection (i) of this section, are not less than the
prevailing rate of wages and the amount of payment or contributions
paid or payable on behalf of each such person to any employee welfare
fund, as determined by the Labor Commissioner pursuant to
subsection (d) of this section, and not less than those required by the
contract to be paid; (C) the employer has complied with the provisions
of this section, section 31-53c and 31-54; (D) each such person is
covered by a workers' compensation insurance policy for the duration
of such person's employment, which shall be demonstrated by
submitting to the contracting agency the name of the workers'
compensation insurance carrier covering each such person, the
effective and expiration dates of each policy and each policy number;
(E) the employer does not receive kickbacks, as defined in 41 USC 52,
from any employee or employee welfare fund; and (F) pursuant to the
provisions of section 53a-157a, the employer is aware that filing a
certified payroll which the employer knows to be false is a class D
felony for which the employer may be fined up to five thousand
dollars, imprisoned for up to five years, or both. This subsection shall
not be construed to prohibit a general contractor from relying on the
certification of a lower tier subcontractor, provided the general
contractor shall not be exempted from the provisions of section 53a- House Bill No. 7363
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157a if the general contractor knowingly relies upon a subcontractor's
false certification. Notwithstanding the provisions of section 1-210, the
certified payroll shall be considered a public record and every person
shall have the right to inspect and copy such records in accordance
with the provisions of section 1-212. The provisions of subsections (a)
and (b) of section 31-59 and sections 31-66 and 31-69 that are not
inconsistent with the provisions of this section, section 31-53c or 31-54
apply to this section. Failing to file a certified payroll pursuant to
subdivision (2) of this subsection is a class D felony for which the
employer may be fined up to five thousand dollars, imprisoned for up
to five years, or both.
(g) Any contractor who is required by the Labor Department to
make any payment as a result of a subcontractor's failure to pay wages
or benefits, or any subcontractor who is required by the Labor
Department to make any payment as a result of a lower tier
subcontractor's failure to pay wages or benefits, may bring a civil
action in the Superior Court to recover no more than the damages
sustained by reason of making such payment, together with costs and
a reasonable attorney's fee.
(h) (1) The provisions of this section shall not apply where (A) the
combined total cost or total bond authorization for all work to be
performed by all contractors and subcontractors in connection with
new construction of any public works project is less than one million
dollars, or (B) the combined total cost of all work to be performed by
all contractors and subcontractors in connection with any remodeling,
refinishing, refurbishing, rehabilitation, alteration or repair of any
public works project is less than one hundred thousand dollars.
(2) [From the effective date of this section until] On and after
October 31, 2017, and prior to July 1, 2019, the provisions of this
subdivision shall not apply where the work to be performed by any
contractor or subcontractor in connection with new construction, House Bill No. 7363
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remodeling, refinishing, refurbishing, rehabilitation, alteration or
repair of any public works project funded in whole or in part by any
private bequest that is greater than nine million dollars but less than
twelve million dollars for a municipality in New Haven County with a
population of not less than twelve thousand and not more than
thirteen thousand, as determined by the most recent population
estimate by the Department of Public Health.
(3) On and after July 1, 2019, and prior to January 1, 2020, the
provisions of this subdivision shall not apply where the work to be
performed by any contractor or subcontractor in connection with new
construction, remodeling, refinishing, refurbishing, rehabilitation,
alteration or repair of any public works project funded in whole or in
part by any private bequest that is greater than nine million dollars but
less than twenty-two million dollars for a municipality in New Haven
County with a population of not less than twelve thousand and not
more than thirteen thousand, as determined by the most recent
population estimate by the Department of Public Health.
(i) As used in this section [, section] and sections 31-53c and 31-54,
"employee welfare fund" means any trust fund established by one or
more employers and one or more labor organizations or one or more
other third parties not affiliated with the employers to provide from
moneys in the fund, whether through the purchase of insurance or
annuity contracts or otherwise, benefits under an employee welfare
plan; provided such term shall not include any such fund where the
trustee, or all of the trustees, are subject to supervision by the Banking
Commissioner of this state or any other state or the Comptroller of the
Currency of the United States or the Board of Governors of the Federal
Reserve System, and "benefits under an employee welfare plan" means
one or more benefits or services under any plan established or
maintained for persons performing the work of any mechanics,
laborers or workers or their families or dependents, or for both, House Bill No. 7363
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including, but not limited to, medical, surgical or hospital care
benefits; benefits in the event of sickness, accident, disability or death;
benefits in the event of unemployment, or retirement benefits.