Connecticut 2019 Regular Session

Connecticut House Bill HB07363 Compare Versions

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	3	+	LCO 5881 \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07363-R01-
	4	+	HB.docx
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	7	+	General Assembly Raised Bill No. 7363
	8	+	January Session, 2019
	9	+	LCO No. 5881
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	12	+	Referred to Committee on PLANNING AND
	13	+	DEVELOPMENT
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	15	+
	16	+	Introduced by:
	17	+	(PD)
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2	19
3	20
4		-	House Bill No. 7363
5		-
6		-	Public Act No. 19-199
7		-
8		-
9		-	AN ACT PROHIBITING C ERTAIN RECOUPMENT PR OVISIONS IN
10		-	PHARMACY SERVICES CO NTRACTS AND CONCERNI NG A
11		-	PREVAILING RATE OF W AGES EXEMPTION.
	21	+	AN ACT CONCERNING BU ILDINGS.
12	22		Be it enacted by the Senate and House of Representatives in General
13	23		Assembly convened:
14	24
15		-	Section 1. Section 38a-477cc of the general statutes is repealed and
16		-	the following is substituted in lieu thereof (Effective October 1, 2019):
17		-	(a) [On and after January 1, 2018, no] No contract for pharmacy
18		-	services entered into in the state between a health carrier, as defined in
19		-	section 38a-591a, or pharmacy benefits manager, as defined in section
20		-	38a-479aaa, and a pharmacy or pharmacist shall:
21		-	(1) On and after January 1, 2018, contain a provision prohibiting or
22		-	penalizing, including through increased utilization review, reduced
23		-	payments or other financial disincentives, a pharmacist's disclosure to
24		-	an individual purchasing prescription medication of information
25		-	regarding: [(1) the]
26		-	(A) The cost of the prescription medication to the individual; [,] or
27		-	[(2) the]
28		-	(B) The availability of any therapeutically equivalent alternative
29		-	medications or alternative methods of purchasing the prescription House Bill No. 7363
	25	+	Section 1. Subsection (f) of section 8-3 of the general statutes is 1
	26	+	repealed and the following is substituted in lieu thereof (Effective 2
	27	+	October 1, 2019): 3
	28	+	(f) No building permit or certificate of occupancy shall be issued for 4
	29	+	a building, use or structure subject to the zoning regulations of a 5
	30	+	municipality without certification in writing by the official charged 6
	31	+	with the enforcement of such regulations that such building, use or 7
	32	+	structure is in conformity with such regulations or is a valid 8
	33	+	nonconforming use under such regulations. Such official shall inform 9
	34	+	the applicant for any such certification that such applicant may 10
	35	+	provide notice of such certification by [either] (1) publication in a 11
	36	+	newspaper having substantial circulation in such municipality stating 12
	37	+	that the certification has been issued, or (2) any other method provided 13
	38	+	for by local ordinance. Any such notice shall contain (A) a description 14
	39	+	of the building, use or structure, (B) the location of the building, use or 15
	40	+	structure, (C) the identity of the applicant, and (D) a statement that an 16 Raised Bill No. 7363
30	41
31		-	Public Act No. 19-199 2 of 10
32	42
33		-	medication, including, but not limited to, paying a cash price, that are
34		-	less expensive than the cost of the prescription medication to the
35		-	individual; [.] and
36		-	(2) On and after January 1, 2020, contain a provision permitting the
37		-	health carrier or pharmacy benefits manager to recoup, directly or
38		-	indirectly, from a pharmacy or pharmacist any portion of a claim that
39		-	such health carrier or pharmacy benefits manager has paid to the
40		-	pharmacy or pharmacist, unless such recoupment is permitted under
41		-	section 38a-479iii or required by applicable law.
42		-	(b) (1) On and after January 1, 2018, no health carrier or pharmacy
43		-	benefits manager shall require an individual to make a payment at the
44		-	point of sale for a covered prescription medication in an amount
45		-	greater than the lesser of: [(1) the]
46		-	(A) The applicable copayment for such prescription medication; [,
47		-	(2) the]
48		-	(B) The allowable claim amount for the prescription medication; [,]
49		-	or [(3) the]
50		-	(C) The amount an individual would pay for the prescription
51		-	medication if the individual purchased the prescription medication
52		-	without using a health benefit plan, as defined in section 38a-591a, or
53		-	any other source of prescription medication benefits or discounts.
54		-	(2) For the purposes of this subsection, "allowable claim amount"
55		-	means the amount the health carrier or pharmacy benefits manager
56		-	has agreed to pay the pharmacy for the prescription medication.
57		-	(c) Any provision of a contract that violates the provisions of this
58		-	section shall be void and unenforceable. Any general business practice
59		-	that violates the provisions of this section shall constitute an unfair
60		-	trade practice pursuant to chapter 735a. The invalidity or House Bill No. 7363
	43	+	LCO 5881 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07363-
	44	+	R01-HB.docx }
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61	46
62		-	Public Act No. 19-199 3 of 10
	47	+	aggrieved person may appeal to the zoning board of appeals in 17
	48	+	accordance with the provisions of section 8-7. 18
	49	+	This act shall take effect as follows and shall amend the following
	50	+	sections:
63	51
64		-	unenforceability of any contract provision under this subsection shall
65		-	not affect any other provision of the contract.
66		-	(d) The Insurance Commissioner may: [, (1) pursuant to the
67		-	provisions of chapter 697, enforce]
68		-	(1) Enforce the provisions of this section [,] pursuant to chapter 697;
69		-	and
70		-	(2) [upon] Upon request, audit a contract for pharmacy services for
71		-	compliance with the provisions of this section.
72		-	Sec. 2. Section 31-53 of the general statutes is repealed and the
73		-	following is substituted in lieu thereof (Effective July 1, 2019):
74		-	(a) Each contract for the construction, remodeling, refinishing,
75		-	refurbishing, rehabilitation, alteration or repair of any public works
76		-	project by the state or any of its agents, or by any political subdivision
77		-	of the state or any of its agents, shall contain the following provision:
78		-	"The wages paid on an hourly basis to any person performing the
79		-	work of any mechanic, laborer or worker on the work herein
80		-	contracted to be done and the amount of payment or contribution paid
81		-	or payable on behalf of each such person to any employee welfare
82		-	fund, as defined in subsection (i) of this section, shall be at a rate equal
83		-	to the rate customary or prevailing for the same work in the same
84		-	trade or occupation in the town in which such public works project is
85		-	being constructed. Any contractor who is not obligated by agreement
86		-	to make payment or contribution on behalf of such persons to any such
87		-	employee welfare fund shall pay to each mechanic, laborer or worker
88		-	as part of such person's wages the amount of payment or contribution
89		-	for such person's classification on each pay day."
90		-	(b) Any contractor or subcontractor who knowingly or wilfully
91		-	employs any mechanic, laborer or worker in the construction,
92		-	remodeling, refinishing, refurbishing, rehabilitation, alteration or House Bill No. 7363
	52	+	Section 1 October 1, 2019 8-3(f)
93	53
94		-	Public Act No. 19-199 4 of 10
95		-
96		-	repair of any public works project for or on behalf of the state or any of
97		-	its agents, or any political subdivision of the state or any of its agents,
98		-	at a rate of wage on an hourly basis that is less than the rate customary
99		-	or prevailing for the same work in the same trade or occupation in the
100		-	town in which such public works project is being constructed,
101		-	remodeled, refinished, refurbished, rehabilitated, altered or repaired,
102		-	or who fails to pay the amount of payment or contributions paid or
103		-	payable on behalf of each such person to any employee welfare fund,
104		-	or in lieu thereof to the person, as provided by subsection (a) of this
105		-	section, shall be fined not less than two thousand five hundred dollars
106		-	but not more than five thousand dollars for each offense and (1) for the
107		-	first violation, shall be disqualified from bidding on contracts with the
108		-	state or any political subdivision until the contractor or subcontractor
109		-	has made full restitution of the back wages owed to such persons and
110		-	for an additional six months thereafter, and (2) for subsequent
111		-	violations, shall be disqualified from bidding on contracts with the
112		-	state or any political subdivision until the contractor or subcontractor
113		-	has made full restitution of the back wages owed to such persons and
114		-	for not less than an additional two years thereafter. In addition, if it is
115		-	found by the contracting officer representing the state or political
116		-	subdivision of the state that any mechanic, laborer or worker
117		-	employed by the contractor or any subcontractor directly on the site
118		-	for the work covered by the contract has been or is being paid a rate of
119		-	wages less than the rate of wages required by the contract to be paid as
120		-	required by this section, the state or contracting political subdivision of
121		-	the state may (A) by written or electronic notice to the contractor,
122		-	terminate such contractor's right to proceed with the work or such part
123		-	of the work as to which there has been a failure to pay said required
124		-	wages and to prosecute the work to completion by contract or
125		-	otherwise, and the contractor and the contractor's sureties shall be
126		-	liable to the state or the contracting political subdivision for any excess
127		-	costs occasioned the state or the contracting political subdivision
128		-	thereby, or (B) withhold payment of money to the contractor or House Bill No. 7363
129		-
130		-	Public Act No. 19-199 5 of 10
131		-
132		-	subcontractor. The contracting department of the state or the political
133		-	subdivision of the state shall, not later than two days after taking such
134		-	action, notify the Labor Commissioner, in writing or electronically, of
135		-	the name of the contractor or subcontractor, the project involved, the
136		-	location of the work, the violations involved, the date the contract was
137		-	terminated, and steps taken to collect the required wages.
138		-	(c) The Labor Commissioner may make complaint to the proper
139		-	prosecuting authorities for the violation of any provision of subsection
140		-	(b) of this section.
141		-	(d) For the purpose of predetermining the prevailing rate of wage
142		-	on an hourly basis and the amount of payment or contributions paid or
143		-	payable on behalf of each person to any employee welfare fund, as
144		-	defined in subsection (i) of this section, in each town where such
145		-	contract is to be performed, the Labor Commissioner shall (1) hold a
146		-	hearing at any required time to determine the prevailing rate of wages
147		-	on an hourly basis and the amount of payment or contributions paid or
148		-	payable on behalf of each person to any employee welfare fund, as
149		-	defined in subsection (i) of this section, upon any public work within
150		-	any specified area, and shall establish classifications of skilled,
151		-	semiskilled and ordinary labor, or (2) adopt and use such appropriate
152		-	and applicable prevailing wage rate determinations as have been made
153		-	by the Secretary of Labor of the United States under the provisions of
154		-	the Davis-Bacon Act, as amended.
155		-	(e) The Labor Commissioner shall determine the prevailing rate of
156		-	wages on an hourly basis and the amount of payment or contributions
157		-	paid or payable on behalf of such person to any employee welfare
158		-	fund, as defined in subsection (i) of this section, in each locality where
159		-	any such public work is to be constructed, and the agent empowered
160		-	to let such contract shall contact the Labor Commissioner, at least ten
161		-	but not more than twenty days prior to the date such contracts will be
162		-	advertised for bid, to ascertain the proper rate of wages and amount of House Bill No. 7363
163		-
164		-	Public Act No. 19-199 6 of 10
165		-
166		-	employee welfare fund payments or contributions and shall include
167		-	such rate of wage on an hourly basis and the amount of payment or
168		-	contributions paid or payable on behalf of each person to any
169		-	employee welfare fund, as defined in subsection (i) of this section, or in
170		-	lieu thereof the amount to be paid directly to each person for such
171		-	payment or contributions as provided in subsection (a) of this section
172		-	for all classifications of labor in the proposal for the contract. The rate
173		-	of wage on an hourly basis and the amount of payment or
174		-	contributions to any employee welfare fund, as defined in subsection
175		-	(i) of this section, or cash in lieu thereof, as provided in subsection (a)
176		-	of this section, shall, at all times, be considered as the minimum rate
177		-	for the classification for which it was established. Prior to the award of
178		-	any contract, purchase order, bid package or other designation subject
179		-	to the provisions of this section, such agent shall certify to the Labor
180		-	Commissioner, either in writing or electronically, the total dollar
181		-	amount of work to be done in connection with such public works
182		-	project, regardless of whether such project consists of one or more
183		-	contracts. Upon the award of any contract subject to the provisions of
184		-	this section, the contractor to whom such contract is awarded shall
185		-	certify, under oath, to the Labor Commissioner the pay scale to be used
186		-	by such contractor and any of the contractor's subcontractors for work
187		-	to be performed under such contract.
188		-	(f) Each employer subject to the provisions of this section, section
189		-	31-53c or 31-54 shall (1) keep, maintain and preserve such records
190		-	relating to the wages and hours worked by each person performing the
191		-	work of any mechanic, laborer and worker and a schedule of the
192		-	occupation or work classification at which each person performing the
193		-	work of any mechanic, laborer or worker on the project is employed
194		-	during each work day and week in such manner and form as the Labor
195		-	Commissioner establishes to assure the proper payments due to such
196		-	persons or employee welfare funds under this section, section 31-53c
197		-	or 31-54, regardless of any contractual relationship alleged to exist House Bill No. 7363
198		-
199		-	Public Act No. 19-199 7 of 10
200		-
201		-	between the contractor and such person, provided such employer shall
202		-	have the option of keeping, maintaining and preserving such records
203		-	in an electronic format, and (2) submit monthly to the contracting
204		-	agency or the Department of Economic and Community Development
205		-	pursuant to section 31-53c by mail, electronic mail or other method
206		-	accepted by such agency or the Department of Eco nomic and
207		-	Community Development, a certified payroll that shall consist of a
208		-	complete copy of such records accompanied by a statement signed by
209		-	the employer that indicates (A) such records are correct; (B) the rate of
210		-	wages paid to each person performing the work of any mechanic,
211		-	laborer or worker and the amount of payment or contributions paid or
212		-	payable on behalf of each such person to any employee welfare fund,
213		-	as defined in subsection (i) of this section, are not less than the
214		-	prevailing rate of wages and the amount of payment or contributions
215		-	paid or payable on behalf of each such person to any employee welfare
216		-	fund, as determined by the Labor Commissioner pursuant to
217		-	subsection (d) of this section, and not less than those required by the
218		-	contract to be paid; (C) the employer has complied with the provisions
219		-	of this section, section 31-53c and 31-54; (D) each such person is
220		-	covered by a workers' compensation insurance policy for the duration
221		-	of such person's employment, which shall be demonstrated by
222		-	submitting to the contracting agency the name of the workers'
223		-	compensation insurance carrier covering each such person, the
224		-	effective and expiration dates of each policy and each policy number;
225		-	(E) the employer does not receive kickbacks, as defined in 41 USC 52,
226		-	from any employee or employee welfare fund; and (F) pursuant to the
227		-	provisions of section 53a-157a, the employer is aware that filing a
228		-	certified payroll which the employer knows to be false is a class D
229		-	felony for which the employer may be fined up to five thousand
230		-	dollars, imprisoned for up to five years, or both. This subsection shall
231		-	not be construed to prohibit a general contractor from relying on the
232		-	certification of a lower tier subcontractor, provided the general
233		-	contractor shall not be exempted from the provisions of section 53a- House Bill No. 7363
234		-
235		-	Public Act No. 19-199 8 of 10
236		-
237		-	157a if the general contractor knowingly relies upon a subcontractor's
238		-	false certification. Notwithstanding the provisions of section 1-210, the
239		-	certified payroll shall be considered a public record and every person
240		-	shall have the right to inspect and copy such records in accordance
241		-	with the provisions of section 1-212. The provisions of subsections (a)
242		-	and (b) of section 31-59 and sections 31-66 and 31-69 that are not
243		-	inconsistent with the provisions of this section, section 31-53c or 31-54
244		-	apply to this section. Failing to file a certified payroll pursuant to
245		-	subdivision (2) of this subsection is a class D felony for which the
246		-	employer may be fined up to five thousand dollars, imprisoned for up
247		-	to five years, or both.
248		-	(g) Any contractor who is required by the Labor Department to
249		-	make any payment as a result of a subcontractor's failure to pay wages
250		-	or benefits, or any subcontractor who is required by the Labor
251		-	Department to make any payment as a result of a lower tier
252		-	subcontractor's failure to pay wages or benefits, may bring a civil
253		-	action in the Superior Court to recover no more than the damages
254		-	sustained by reason of making such payment, together with costs and
255		-	a reasonable attorney's fee.
256		-	(h) (1) The provisions of this section shall not apply where (A) the
257		-	combined total cost or total bond authorization for all work to be
258		-	performed by all contractors and subcontractors in connection with
259		-	new construction of any public works project is less than one million
260		-	dollars, or (B) the combined total cost of all work to be performed by
261		-	all contractors and subcontractors in connection with any remodeling,
262		-	refinishing, refurbishing, rehabilitation, alteration or repair of any
263		-	public works project is less than one hundred thousand dollars.
264		-	(2) [From the effective date of this section until] On and after
265		-	October 31, 2017, and prior to July 1, 2019, the provisions of this
266		-	subdivision shall not apply where the work to be performed by any
267		-	contractor or subcontractor in connection with new construction, House Bill No. 7363
268		-
269		-	Public Act No. 19-199 9 of 10
270		-
271		-	remodeling, refinishing, refurbishing, rehabilitation, alteration or
272		-	repair of any public works project funded in whole or in part by any
273		-	private bequest that is greater than nine million dollars but less than
274		-	twelve million dollars for a municipality in New Haven County with a
275		-	population of not less than twelve thousand and not more than
276		-	thirteen thousand, as determined by the most recent population
277		-	estimate by the Department of Public Health.
278		-	(3) On and after July 1, 2019, and prior to January 1, 2020, the
279		-	provisions of this subdivision shall not apply where the work to be
280		-	performed by any contractor or subcontractor in connection with new
281		-	construction, remodeling, refinishing, refurbishing, rehabilitation,
282		-	alteration or repair of any public works project funded in whole or in
283		-	part by any private bequest that is greater than nine million dollars but
284		-	less than twenty-two million dollars for a municipality in New Haven
285		-	County with a population of not less than twelve thousand and not
286		-	more than thirteen thousand, as determined by the most recent
287		-	population estimate by the Department of Public Health.
288		-	(i) As used in this section [, section] and sections 31-53c and 31-54,
289		-	"employee welfare fund" means any trust fund established by one or
290		-	more employers and one or more labor organizations or one or more
291		-	other third parties not affiliated with the employers to provide from
292		-	moneys in the fund, whether through the purchase of insurance or
293		-	annuity contracts or otherwise, benefits under an employee welfare
294		-	plan; provided such term shall not include any such fund where the
295		-	trustee, or all of the trustees, are subject to supervision by the Banking
296		-	Commissioner of this state or any other state or the Comptroller of the
297		-	Currency of the United States or the Board of Governors of the Federal
298		-	Reserve System, and "benefits under an employee welfare plan" means
299		-	one or more benefits or services under any plan established or
300		-	maintained for persons performing the work of any mechanics,
301		-	laborers or workers or their families or dependents, or for both, House Bill No. 7363
302		-
303		-	Public Act No. 19-199 10 of 10
304		-
305		-	including, but not limited to, medical, surgical or hospital care
306		-	benefits; benefits in the event of sickness, accident, disability or death;
307		-	benefits in the event of unemployment, or retirement benefits.
	54	+	PD Joint Favorable
308	55