Connecticut 2021 Regular Session

Connecticut House Bill HB06450 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-R01-
4		-	HB.docx
5		-	1 of 18
6	3
7		-	General Assembly Substitute Bill No. 6450
	4	+
	5	+	LCO No. 3229 1 of 18
	6	+
	7	+	General Assembly Governor's Bill No. 6450
8	8		January Session, 2021
	9	+	LCO No. 3229
	10	+
	11	+
	12	+	Referred to Committee on PUBLIC HEALTH
	13	+
	14	+
	15	+	Introduced by:
	16	+	Request of the Governor Pursuant
	17	+	to Joint Rule 9
	18	+
	19	+
9	20
10	21
11	22
12	23		AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET
13	24		RECOMMENDATIONS CONC ERNING PUBLIC HEALTH .
14	25		Be it enacted by the Senate and House of Representatives in General
15	26		Assembly convened:
16	27
17	28		Section 1. Subsection (a) of section 21a-415 of the general statutes is 1
18	29		repealed and the following is substituted in lieu thereof (Effective January 2
19	30		1, 2022): 3
20	31		(a) As used in this chapter and section [53-344] 2 of this act: 4
21	32		(1) "Authorized owner" means the owner or authorized designee of a 5
22	33		business entity that is applying for a registration or is registered with 6
23	34		the Department of Consumer Protection pursuant to this chapter; 7
24	35		(2) "Business entity" means any corporation, limited liability 8
25	36		company, association, partnership, sole proprietorship, government, 9
26	37		governmental subdivision or agency, business trust, estate, trust or any 10
27	38		other legal entity; 11
28		-	(3) "Dealer registration" means an electronic nicotine delivery system 12
	39	+	(3) "Dealer registration" means an electronic nicotine delivery system 12 Governor's Bill No. 6450
	40	+
	41	+
	42	+
	43	+	LCO No. 3229 2 of 18
	44	+
29	45		certificate of dealer registration issued by the Commissioner of 13
30	46		Consumer Protection pursuant to this section; 14
31	47		(4) "Manufacturer registration" means an electronic nicotine delivery 15
32		-	system certificate of manufacturer registration issued by the 16 Substitute Bill No. 6450
33		-
34		-
35		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
36		-	R01-HB.docx }
37		-	2 of 18
38		-
	48	+	system certificate of manufacturer registration issued by the 16
39	49		Commissioner of Consumer Protection pursuant to section 21a-415a to 17
40	50		any person who mixes, compounds, repackages or resizes any nicotine-18
41	51		containing electronic nicotine delivery system or vapor product; 19
42	52		(5) "Electronic cigarette liquid" means a liquid that, when used in an 20
43	53		electronic nicotine delivery system or vapor product, produces a vapor 21
44	54		that may or may not include nicotine and is inhaled by the user of such 22
45	55		electronic nicotine delivery system or vapor product; 23
46	56		(6) "Electronic nicotine delivery system" means an electronic device 24
47	57		used in the delivery of nicotine or other substances to a person inhaling 25
48	58		from the device, and includes, but is not limited to, an electronic 26
49	59		cigarette, electronic cigar, electronic cigarillo, electronic pipe or 27
50	60		electronic hookah and any related device and any cartridge or other 28
51	61		component of such device, including, but not limited to, electronic 29
52	62		cigarette liquid; 30
53	63		(7) "Vapor product" means any product that employs a heating 31
54	64		element, power source, electronic circuit or other electronic, chemical or 32
55	65		mechanical means, regardless of shape or size, to produce a vapor that 33
56	66		may include nicotine and is inhaled by the user of such product. "Vapor 34
57	67		product" does not include a medicinal or therapeutic product that is (A) 35
58	68		used by a licensed health care provider to treat a patient in a health care 36
59	69		setting, (B) used by a patient, as prescribed or directed by a licensed 37
60	70		health care provider in any setting, or (C) any drug or device, as defined 38
61	71		in the federal Food, Drug and Cosmetic Act, 21 USC 321, as amended 39
62	72		from time to time, any combination product, as described in said act, 21 40
63	73		USC 353(g), as amended from time to time, or any biological product, as 41
64	74		described in 42 USC 262, as amended from time to time, and 21 CFR 42
65	75		600.3, as amended from time to time, authorized for sale by the United 43
66		-	States Food and Drug Administration; 44
	76	+	States Food and Drug Administration; 44 Governor's Bill No. 6450
	77	+
	78	+
	79	+
	80	+	LCO No. 3229 3 of 18
	81	+
67	82		(8) "Sale" or "sell" means an act done intentionally by any person, 45
68	83		whether done as principal, proprietor, agent, servant or employee, of 46
69	84		transferring, or offering or attempting to transfer, for consideration, 47
70		-	including bartering or exchanging, or offering to barter or exchange; 48 Substitute Bill No. 6450
71		-
72		-
73		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
74		-	R01-HB.docx }
75		-	3 of 18
76		-
	85	+	including bartering or exchanging, or offering to barter or exchange; 48
77	86		[and] 49
78	87		(9) "Deliver" or "delivering" means an act done intentionally by any 50
79	88		person, whether as principal, proprietor, agent, servant or employee, of 51
80	89		transferring, or offering or attempting to transfer, physical possession 52
81	90		or control of an electronic nicotine delivery system or vapor product; 53
82	91		(10) "Flavoring agent" means an additive used in food or drugs when 54
83	92		such additive (A) is used in accordance with good manufacturing 55
84	93		practice principles and in the minimum quantity required to produce its 56
85	94		intended effect; (B) (i) consists of one or more ingredients generally 57
86	95		recognized as safe in food or drugs, (ii) has been previously sanctioned 58
87	96		for use in food or drugs by the state or the federal government, (iii) 59
88	97		meets United States Pharmacopeia standards, or (iv) is an additive 60
89	98		permitted for direct addition to food for human consumption pursuant 61
90	99		to 21 CFR 172, as amended from time to time; (C) is inert and produces 62
91	100		no effect other than the instillation or modification of flavor; and (D) is 63
92	101		not greater than five per cent of the total weight of the product. 64
93		-	Sec. 2. (NEW) (Effective January 1, 2022) ~~(a)~~ No person shall sell, give, 65
	102	+	Sec. 2. (NEW) (Effective January 1, 2022) No person shall sell, give, 65
94	103		deliver or possess with intent to sell in this state an electronic nicotine 66
95	104		delivery system or a vapor product with a flavoring agent, other than 67
96	105		tobacco flavor, that has been added for the purpose of flavoring the 68
97	106		contents of the electronic nicotine delivery system or vapor product. 69
98	107		This section shall not apply to any product that the United States 70
99	108		Secretary of Health and Human Services determines to be a modified 71
100	109		risk tobacco product pursuant to 21 USC 387k, as amended from time to 72
101	110		time. 73
102	111		(b) (1) No person shall sell, give, deliver or possess with intent to sell, 74
103	112		in this state an electronic nicotine delivery system or a vapor product 75
104		-	with a nicotine content that is greater than thirty-five milligrams per 76
	113	+	with a nicotine content that is greater than thirty-five milligrams per 76 Governor's Bill No. 6450
	114	+
	115	+
	116	+
	117	+	LCO No. 3229 4 of 18
	118	+
105	119		milliliter. Each person with a manufacturer registration shall provide 77
106	120		documentation to a person with a dealer registration, indicating the 78
107	121		nicotine content, expressed as milligrams per milliliter, for each 79
108		-	electronic nicotine delivery system and vapor product sold by such 80 Substitute Bill No. 6450
109		-
110		-
111		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
112		-	R01-HB.docx }
113		-	4 of 18
114		-
	122	+	electronic nicotine delivery system and vapor product sold by such 80
115	123		person with a manufacturer registration to such person with a dealer 81
116	124		registration. 82
117	125		(2) Each business entity holding a dealer registration shall (A) 83
118	126		maintain documentation, within the place of business identified in the 84
119	127		business entity's application for dealer registration, of the nicotine 85
120	128		content provided pursuant to subdivision (1) of this subsection by the 86
121	129		person with a manufacturer registration, for each electronic nicotine 87
122	130		delivery system and vapor product sold, given or delivered by such 88
123	131		person to the business entity, and (B) provide such documentation at the 89
124	132		request of the Commissioner of Mental Health and Addiction Services, 90
125	133		or the commissioner's designee, during any unannounced compliance 91
126	134		check conducted pursuant to section 21-415b of the general statutes, as 92
127	135		amended by this act. 93
128	136		(c) As used in this section, "person" means any individual, authorized 94
129	137		owner of a business entity, retail establishment, as defined in section 95
130	138		19a-106a of the general statutes, partnership, company, limited liability 96
131	139		company, public or private corporation, association, trustee, executor, 97
132	140		administrator or other fiduciary or custodian. 98
133	141		Sec. 3. Section 21a-415b of the general statutes is repealed and the 99
134	142		following is substituted in lieu thereof (Effective January 1, 2022): 100
135	143		(a) Each business entity with a dealer registration shall place and 101
136	144		maintain in legible condition at each point of sale of electronic nicotine 102
137	145		delivery systems or vapor products a notice to consumers that states (1) 103
138	146		the sale, giving or delivering of electronic nicotine delivery systems and 104
139	147		vapor products to any person under twenty-one years of age is 105
140	148		prohibited by section 53-344b, as amended by this act, (2) the use of false 106
141	149		identification by a person under twenty-one years of age to purchase an 107
142		-	electronic nicotine delivery system or a vapor product is prohibited, and 108
	150	+	electronic nicotine delivery system or a vapor product is prohibited, and 108 Governor's Bill No. 6450
	151	+
	152	+
	153	+
	154	+	LCO No. 3229 5 of 18
	155	+
143	156		(3) the penalties and fines for violating the provisions of this section and 109
144	157		section 53-344b, as amended by this act. 110
145		-	(b) (1) The Commissioner of Mental Health and Addiction Services, 111 Substitute Bill No. 6450
146		-
147		-
148		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
149		-	R01-HB.docx }
150		-	5 of 18
151		-
	158	+	(b) (1) The Commissioner of Mental Health and Addiction Services, 111
152	159		or the commissioner's designee, shall conduct unannounced compliance 112
153	160		checks on business entities [holding] with a dealer registration by 113
154	161		engaging persons between the ages of sixteen and twenty to enter the 114
155	162		place of business of each such business entity to attempt to purchase an 115
156	163		electronic nicotine delivery system or a vapor product. 116
157	164		(2) The Commissioner of Mental Health and Addiction Services, or 117
158	165		the commissioner's designee, shall conduct unannounced compliance 118
159	166		checks on business entities with a dealer registration to determine 119
160	167		whether any such business entity is selling, giving or delivering or has 120
161	168		sold, given or delivered any electronic nicotine delivery system or vapor 121
162	169		product with a flavoring agent, other than tobacco flavor, that has been 122
163	170		added for the purpose of flavoring the contents of the electronic delivery 123
164	171		system or vapor product, in violation of subsection (a) of section 2 of 124
165	172		this act. 125
166	173		(3) The Commissioner of Mental Health and Addiction Services, or 126
167	174		the commissioner's designee, shall conduct unannounced compliance 127
168	175		checks on business entities with a dealer registration to determine 128
169	176		whether each such business entity is in possession of the documentation 129
170	177		required under subsection (b) of section 2 of this act and whether such 130
171	178		documentation indicates that electronic nicotine delivery systems or 131
172	179		vapor products with a nicotine content greater than thirty-five 132
173	180		milligrams per milliliter were sold, given or delivered by such business 133
174	181		entity. The commissioner shall refer all business entities that do not 134
175	182		possess such documentation or that sold, gave, delivered or possessed 135
176	183		with intent to sell an electronic nicotine delivery system or a vapor 136
177	184		product with a nicotine content that is greater than 35 milligrams per 137
178	185		milliliter to the Commissioner of Revenue Services. 138
179	186		(4) The commissioner shall conduct unannounced follow-up 139
180		-	compliance checks of all noncompliant business entities and shall refer 140
	187	+	compliance checks of all noncompliant business entities and shall refer 140 Governor's Bill No. 6450
	188	+
	189	+
	190	+
	191	+	LCO No. 3229 6 of 18
	192	+
181	193		all noncompliant business entities to the Commissioner of Revenue 141
182	194		Services. 142
183		-	(c) Upon receipt of a referral made pursuant to subsection (b) of this 143 Substitute Bill No. 6450
184		-
185		-
186		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
187		-	R01-HB.docx }
188		-	6 of 18
189		-
	195	+	(c) Upon receipt of a referral made pursuant to subsection (b) of this 143
190	196		section, the Commissioner of Revenue Services may, following a 144
191	197		hearing, impose a civil penalty and direct the Commissioner of 145
192	198		Consumer Protection to suspend or revoke the dealer registration of the 146
193	199		business entity that is the subject of such referral. The Commissioner of 147
194	200		Revenue Services shall provide such business entity with written notice 148
195	201		of the hearing, specifying the time and place of such hearing and 149
196	202		requiring such business entity to show cause why such dealer 150
197	203		registration should not be suspended or revoked. The written notice of 151
198	204		the hearing shall be mailed or delivered to such business entity not less 152
199	205		than ten days preceding the date of the hearing. Such notice may be 153
200	206		served personally or by registered or certified mail. 154
201	207		(d) If the Commissioner of Revenue Services finds, after a hearing 155
202	208		pursuant to subsection (c) of this section, that any person employed by 156
203	209		any business entity issued a dealer registration under section 21a-415, 157
204	210		as amended by this act, has sold, given or delivered an electronic 158
205	211		nicotine delivery system or vapor product to a person under twenty-one 159
206	212		years of age, other than a person under twenty-one years of age who is 160
207	213		delivering or accepting delivery in such person's capacity as an 161
208	214		employee, said commissioner shall, for the first violation, require such 162
209	215		employee to successfully complete an online prevention education 163
210	216		program administered by the Department of Mental Health and 164
211	217		Addiction Services not later than thirty days after said commissioner's 165
212	218		finding. Said commissioner shall assess any employee who fails to 166
213	219		complete such program a civil penalty of [two] four hundred dollars. 167
214	220		Said commissioner shall assess any employee a civil penalty of [two 168
215	221		hundred fifty] five hundred dollars for a second or subsequent violation 169
216	222		on or before twenty-four months after the date of the first violation. 170
217	223		(e) (1) If the Commissioner of Revenue Services finds, after a hearing 171
218	224		pursuant to subsection (c) of this section, that [(1)] (A) any business 172
219		-	entity issued a dealer registration under section 21a-415, as amended by 173
	225	+	entity issued a dealer registration under section 21a-415, as amended by 173 Governor's Bill No. 6450
	226	+
	227	+
	228	+
	229	+	LCO No. 3229 7 of 18
	230	+
220	231		this act, has sold, given or delivered an electronic nicotine delivery 174
221	232		system or vapor product to a person under twenty-one years of age, 175
222		-	other than a person under twenty-one years of age who is delivering or 176 Substitute Bill No. 6450
223		-
224		-
225		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
226		-	R01-HB.docx }
227		-	7 of 18
228		-
	233	+	other than a person under twenty-one years of age who is delivering or 176
229	234		accepting delivery in such person's capacity as an employee, or [(2)] (B) 177
230	235		such person's employee has sold, given or delivered an electronic 178
231	236		nicotine delivery system or vapor product to a person under twenty-one 179
232	237		years of age, the commissioner shall, for the first violation, require the 180
233	238		authorized owner of such business entity to successfully complete an 181
234	239		online prevention education program administered by the Department 182
235	240		of Mental Health and Addiction Services not later than thirty days after 183
236	241		said commissioner's finding. Said commissioner shall assess any 184
237	242		business entity issued a dealer registration, whose authorized owner 185
238	243		fails to complete such program, a civil penalty of [three] six hundred 186
239	244		dollars for the first violation. 187
240	245		(2) Said commissioner shall assess such business entity a civil penalty 188
241	246		of [seven hundred fifty] one thousand five hundred dollars for a second 189
242	247		violation on or before twenty-four months after the date of the first 190
243	248		violation. 191
244	249		(3) For a third violation by such business entity on or before twenty-192
245	250		four months after the date of the first violation, said commissioner shall 193
246	251		assess such business entity a civil penalty of [one] two thousand dollars 194
247	252		and notify the Commissioner of Consumer Protection that the dealer 195
248	253		registration held by such business entity under this chapter shall be 196
249	254		suspended for not less than thirty days. 197
250	255		(4) For a fourth violation on or before twenty-four months after the 198
251	256		date of the first violation, the Commissioner of Revenue Services shall 199
252	257		assess such business entity a civil penalty of [one] two thousand dollars 200
253	258		and notify the Commissioner of Consumer Protection that the dealer 201
254		-	registration held by such business entity under [said~~] this~~ chapter shall 202
255		-	be revoked. The Commissioner of Revenue Services shall order such 203
	259	+	registration held by such business entity under said chapter shall be 202
	260	+	revoked. The Commissioner of Revenue Services shall order such 203
256	261		business entity to conspicuously post a notice in a public place stating 204
257	262		that electronic nicotine delivery systems and vapor products cannot be 205
258		-	sold during the period of suspension or revocation and the reasons for 206
	263	+	sold during the period of suspension or revocation and the reasons for 206 Governor's Bill No. 6450
	264	+
	265	+
	266	+
	267	+	LCO No. 3229 8 of 18
	268	+
259	269		such suspension or revocation. Any sale of an electronic nicotine 207
260	270		delivery system or vapor product by such business entity during the 208
261		-	period of such suspension or revocation shall be deemed an additional 209 Substitute Bill No. 6450
262		-
263		-
264		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
265		-	R01-HB.docx }
266		-	8 of 18
267		-
	271	+	period of such suspension or revocation shall be deemed an additional 209
268	272		violation of this section. 210
269	273		(f) (1) If the Commissioner of Revenue Services finds, after a hearing 211
270	274		pursuant to subsection (c) of this section, that (A) any business entity 212
271	275		issued a dealer registration under section 21a-415, as amended by this 213
272	276		act, has sold, given or delivered an electronic nicotine delivery system 214
273	277		or vapor product with a flavoring agent, other than tobacco flavor, that 215
274	278		has been added for the purpose of flavoring the contents of the 216
275	279		electronic nicotine delivery system or vapor product, or (B) any such 217
276	280		business entity does not possess documentation of nicotine content or 218
277	281		nicotine content that indicates a level of nicotine that is greater than 219
278	282		thirty-five milligrams per milliliter for any electronic nicotine delivery 220
279	283		system or vapor product sold, given or delivered within the retail 221
280	284		establishment of the business entity, the commissioner shall, for the first 222
281	285		violation, require the authorized owner of such business entity to 223
282	286		successfully complete an online prevention education program 224
283	287		administered by the Department of Mental Health and Addiction 225
284	288		Services not later than thirty days after said commissioner's finding. 226
285	289		Said commissioner shall assess any business entity issued a dealer 227
286	290		registration, whose authorized owner fails to complete such program, a 228
287	291		civil penalty of six hundred dollars for the first violation. 229
288	292		(2) Said commissioner shall assess such business entity a civil penalty 230
289	293		of one thousand five hundred dollars for a second violation on or before 231
290	294		twenty-four months after the date of the first violation. 232
291	295		(3) For a third violation by such business entity on or before twenty-233
292	296		four months after the date of the first violation, said commissioner shall 234
293	297		assess such business entity a civil penalty of two thousand dollars and 235
294	298		notify the Commissioner of Consumer Protection that the dealer 236
295	299		registration held by such business entity under this chapter shall be 237
296		-	suspended for not less than thirty days. 238
	300	+	suspended for not less than thirty days. 238 Governor's Bill No. 6450
	301	+
	302	+
	303	+
	304	+	LCO No. 3229 9 of 18
	305	+
297	306		(4) For a fourth violation on or before twenty-four months after the 239
298	307		date of the first violation, the Commissioner of Revenue Services shall 240
299		-	assess such business entity a civil penalty of two thousand dollars and 241 Substitute Bill No. 6450
300		-
301		-
302		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
303		-	R01-HB.docx }
304		-	9 of 18
305		-
	308	+	assess such business entity a civil penalty of two thousand dollars and 241
306	309		notify the Commissioner of Consumer Protection that the dealer 242
307		-	registration held by such business entity under ~~this~~ chapter shall be 243
	310	+	registration held by such business entity under said chapter shall be 243
308	311		revoked. The Commissioner of Revenue Services shall order such 244
309	312		business entity to conspicuously post a notice in a public place stating 245
310	313		that electronic nicotine delivery systems and vapor products cannot be 246
311	314		sold during the period of suspension or revocation and the reasons for 247
312	315		such suspension or revocation. Any sale of an electronic nicotine 248
313	316		delivery system or vapor product by such business entity during the 249
314	317		period of such suspension or revocation shall be deemed an additional 250
315	318		violation of this section. 251
316	319		[(f)] (g) Upon receipt of notice of determination from the 252
317	320		Commissioner of Revenue Services made under subsection (e) or (f) of 253
318	321		this section, the Commissioner of Consumer Protection shall suspend or 254
319	322		revoke the dealer registration of the business entity that is the subject of 255
320		-	[said~~] the~~ determination. The Commissioner of Consumer Protection 256
321		-	~~shall~~ not be required to hold a hearing in connection with any notice of 257
	323	+	said determination. The Commissioner of Consumer Protection shall 256
	324	+	not be required to hold a hearing in connection with any notice of 257
322	325		determination received from the Commissioner of Revenue Services 258
323	326		under this section. 259
324	327		[(g)] (h) The Commissioner of Consumer Protection shall not issue a 260
325	328		new dealer registration to a former registrant whose dealer registration 261
326	329		was revoked unless the commissioner is satisfied that such business 262
327	330		entity that holds a dealer registration will comply with the provisions of 263
328	331		this chapter and any regulations related thereto, and section 53-344b, as 264
329	332		amended by this act. 265
330	333		Sec. 4. Section 12-295a of the general statutes is repealed and the 266
331	334		following is substituted in lieu thereof (Effective January 1, 2022): 267
332	335		(a) If the Commissioner of Revenue Services finds, after a hearing, 268
333	336		that any person employed by a dealer or distributor, as defined in 269
334		-	section 12-285, has sold, given or delivered cigarettes or tobacco 270
	337	+	section 12-285, has sold, given or delivered cigarettes or tobacco 270 Governor's Bill No. 6450
	338	+
	339	+
	340	+
	341	+	LCO No. 3229 10 of 18
	342	+
335	343		products to a person under twenty-one years of age other than a person 271
336	344		under twenty-one years of age who is delivering or accepting delivery 272
337		-	in such person's capacity as an employee, said commissioner shall, for 273 Substitute Bill No. 6450
338		-
339		-
340		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
341		-	R01-HB.docx }
342		-	10 of 18
343		-
	345	+	in such person's capacity as an employee, said commissioner shall, for 273
344	346		the first violation, require such person to successfully complete an 274
345	347		online tobacco prevention education program administered by the 275
346	348		Department of Mental Health and Addiction Services not later than 276
347	349		thirty days after said commissioner's finding. Said commissioner shall 277
348	350		assess any person who fails to complete such program a civil penalty of 278
349	351		[two] four hundred dollars. Said commissioner shall assess any person 279
350	352		employed by a dealer or distributor a civil penalty of [two hundred fifty] 280
351	353		five hundred dollars for a second or subsequent violation on or before 281
352	354		twenty-four months after the date of the first violation. 282
353	355		(b) (1) If the Commissioner of Revenue Services finds, after a hearing, 283
354	356		that any dealer or distributor has sold, given or delivered cigarettes or a 284
355	357		tobacco product to a person under twenty-one years of age other than a 285
356	358		person under twenty-one years of age who is delivering or accepting 286
357	359		delivery in such person's capacity as an employee, or such dealer or 287
358	360		distributor's employee has sold, given or delivered cigarettes or a 288
359	361		tobacco product to such person, said commissioner shall require such 289
360	362		dealer or distributor, for the first violation, to successfully complete an 290
361	363		online tobacco prevention education program administered by the 291
362	364		Department of Mental Health and Addiction Services not later than 292
363	365		thirty days after said commissioner's finding. Said commissioner shall 293
364	366		assess any dealer or distributor who fails to complete such program a 294
365	367		civil penalty of [three] six hundred dollars. 295
366		-	(2) Said commissioner shall assess [any~~] such~~ dealer or distributor a 296
367		-	~~civil~~ penalty of [seven hundred fifty] one thousand five hundred dollars 297
368		-	~~for~~ a second violation on or before twenty-four months after the date of 298
369		-	~~the~~ first violation. 299
	368	+	(2) Said commissioner shall assess any dealer or distributor a civil 296
	369	+	penalty of [seven hundred fifty] one thousand five hundred dollars for 297
	370	+	a second violation on or before twenty-four months after the date of the 298
	371	+	first violation. 299
370	372		(3) For a third violation on or before twenty-four months after the 300
371	373		date of the first violation, said commissioner shall assess such dealer or 301
372	374		distributor a civil penalty of [one] two thousand dollars and suspend 302
373		-	any license held by such dealer or distributor under this chapter for not 303
374		-	less than thirty days. 304
375		-	(4) For a fourth violation on or before twenty-four months after the 305 Substitute Bill No. 6450
	375	+	any license held by such dealer or distributor under this chapter for not 303 Governor's Bill No. 6450
376	376
377	377
378		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
379		-	R01-HB.docx }
380		-	11 of 18
381	378
	379	+	LCO No. 3229 11 of 18
	380	+
	381	+	less than thirty days. 304
	382	+	(4) For a fourth violation on or before twenty-four months after the 305
382	383		date of the first violation, said commissioner shall assess such dealer or 306
383	384		distributor a civil penalty of [one] two thousand dollars and revoke any 307
384	385		license issued to such dealer or distributor under this chapter. Said 308
385	386		commissioner shall order such distributor or dealer to conspicuously 309
386	387		post a notice in a public place within such distributor's or dealer's 310
387	388		establishment stating that cigarettes and tobacco products cannot be 311
388	389		sold during the period of such suspension or revocation and the reasons 312
389	390		for such suspension or revocation. Any sale of cigarettes or a tobacco 313
390	391		product by such dealer or distributor during such suspension or 314
391	392		revocation shall be deemed an additional violation of this subsection. 315
392	393		(c) (1) If the Commissioner of Revenue Services finds, after a hearing, 316
393	394		that any owner of an establishment in which a cigarette vending 317
394	395		machine or restricted cigarette vending machine is located has sold, 318
395	396		given or delivered cigarettes or tobacco products from any such 319
396	397		machine to a person under twenty-one years of age other than a person 320
397	398		under twenty-one years of age who is delivering or accepting delivery 321
398	399		in such person's capacity as an employee, or has allowed cigarettes or 322
399	400		tobacco products to be sold, given or delivered to such person from any 323
400	401		such machine, said commissioner shall require such owner, for the first 324
401	402		violation, to successfully complete an online tobacco prevention 325
402	403		education program administered by the Department of Mental Health 326
403	404		and Addiction Services not later than thirty days after said 327
404	405		commissioner's finding. Said commissioner shall assess any owner who 328
405	406		fails to complete such program a civil penalty of [five hundred] one 329
406	407		thousand dollars. 330
407		-	(2) Said commissioner shall assess [any] such owner a civil penalty of 331
408		-	[seven hundred fifty] one thousand five hundred dollars for a second 332
409		-	violation on or before twenty-four months after the date of the first 333
410		-	violation. 334
411		-	(3) For a third violation on or before twenty-four months after the 335
412		-	date of the first violation, said commissioner shall assess such owner a 336
413		-	civil penalty of [one] two thousand dollars and immediately remove any 337
414		-	such machine from such establishment and no such machine may be 338 Substitute Bill No. 6450
	408	+	(2) Said commissioner shall assess any owner a civil penalty of [seven 331
	409	+	hundred fifty] one thousand five hundred dollars for a second violation 332
	410	+	on or before twenty-four months after the date of the first violation. 333
	411	+	(3) For a third violation on or before twenty-four months after the 334
	412	+	date of the first violation, said commissioner shall assess such owner a 335 Governor's Bill No. 6450
415	413
416	414
417		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
418		-	R01-HB.docx }
419		-	12 of 18
420	415
421		-	placed in such establishment for a period of one year following such 339
422		-	removal. 340
423		-	(d) Any person aggrieved by any action of the commissioner 341
424		-	pursuant to this section may take any appeal of such action as provided 342
425		-	in sections 12-311 and 12-312. 343
426		-	Sec. 5. Subsection (b) of section 53-344 of the general statutes is 344
427		-	repealed and the following is substituted in lieu thereof (Effective January 345
428		-	1, 2022): 346
429		-	(b) Any person who sells, gives or delivers to any person under 347
430		-	twenty-one years of age cigarettes or a tobacco product shall be fined 348
431		-	not more than [three] six hundred dollars for the first offense, not more 349
432		-	than [seven hundred fifty] one thousand five hundred dollars for a 350
433		-	second offense on or before twenty-four months after the date of the first 351
434		-	offense and not more than [one] two thousand dollars for each 352
435		-	subsequent offense on or before twenty-four months after the date of the 353
436		-	first offense. The provisions of this subsection shall not apply to a person 354
437		-	under twenty-one years of age who is delivering or accepting delivery 355
438		-	of cigarettes or a tobacco product (1) in such person's capacity as an 356
439		-	employee, or (2) as part of a scientific study being conducted by an 357
440		-	organization for the purpose of medical research to further efforts in 358
441		-	cigarette and tobacco product use prevention and cessation, provided 359
442		-	such medical research has been approved by the organization's 360
443		-	institutional review board, as defined in section 21a-408. 361
444		-	Sec. 6. Subsection (b) of section 53-344b of the general statutes is 362
445		-	repealed and the following is substituted in lieu thereof (Effective January 363
446		-	1, 2022): 364
447		-	(b) Any person who sells, gives or delivers to any person under 365
448		-	twenty-one years of age an electronic nicotine delivery system or vapor 366
449		-	product in any form shall be fined not more than [three] six hundred 367
450		-	dollars for the first offense, not more than [seven hundred fifty] one 368
451		-	thousand five hundred dollars for a second offense on or before twenty-369 Substitute Bill No. 6450
	416	+	LCO No. 3229 12 of 18
	417	+
	418	+	civil penalty of [one] two thousand dollars and immediately remove any 336
	419	+	such machine from such establishment and no such machine may be 337
	420	+	placed in such establishment for a period of one year following such 338
	421	+	removal. 339
	422	+	(d) Any person aggrieved by any action of the commissioner 340
	423	+	pursuant to this section may take any appeal of such action as provided 341
	424	+	in sections 12-311 and 12-312. 342
	425	+	Sec. 5. Subsection (b) of section 53-344 of the general statutes is 343
	426	+	repealed and the following is substituted in lieu thereof (Effective January 344
	427	+	1, 2022): 345
	428	+	(b) Any person who sells, gives or delivers to any person under 346
	429	+	twenty-one years of age cigarettes or a tobacco product shall be fined 347
	430	+	not more than [three] six hundred dollars for the first offense, not more 348
	431	+	than [seven hundred fifty] one thousand five hundred dollars for a 349
	432	+	second offense on or before twenty-four months after the date of the first 350
	433	+	offense and not more than [one] two thousand dollars for each 351
	434	+	subsequent offense on or before twenty-four months after the date of the 352
	435	+	first offense. The provisions of this subsection shall not apply to a person 353
	436	+	under twenty-one years of age who is delivering or accepting delivery 354
	437	+	of cigarettes or a tobacco product (1) in such person's capacity as an 355
	438	+	employee, or (2) as part of a scientific study being conducted by an 356
	439	+	organization for the purpose of medical research to further efforts in 357
	440	+	cigarette and tobacco product use prevention and cessation, provided 358
	441	+	such medical research has been approved by the organization's 359
	442	+	institutional review board, as defined in section 21a-408. 360
	443	+	Sec. 6. Subsection (b) of section 53-344b of the general statutes is 361
	444	+	repealed and the following is substituted in lieu thereof (Effective January 362
	445	+	1, 2022): 363
	446	+	(b) Any person who sells, gives or delivers to any person under 364
	447	+	twenty-one years of age an electronic nicotine delivery system or vapor 365
	448	+	product in any form shall be fined not more than [three] six hundred 366
	449	+	dollars for the first offense, not more than [seven hundred fifty] one 367 Governor's Bill No. 6450
452	450
453	451
454		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
455		-	R01-HB.docx }
456		-	13 of 18
457	452
458		-	four months after the date of the first offense and not more than [one] 370
459		-	two thousand dollars for each subsequent offense on or before twenty-371
460		-	four months after the date of the first offense. The provisions of this 372
461		-	subsection shall not apply to a person under twenty-one years of age 373
462		-	who is delivering or accepting delivery of an electronic nicotine delivery 374
463		-	system or vapor product (1) in such person's capacity as an employee, 375
464		-	or (2) as part of a scientific study being conducted by an organization 376
465		-	for the purpose of medical research to further efforts in tobacco use 377
466		-	prevention and cessation, provided such medical research has been 378
467		-	approved by the organization's institutional review board, as defined in 379
468		-	section 21a-408. 380
469		-	Sec. 7. Section 38a-1083 of the general statutes is repealed and the 381
470		-	following is substituted in lieu thereof (Effective January 1, 2022): 382
471		-	(a) For purposes of sections 38a-1080 to 38a-1093, inclusive, "purposes 383
472		-	of the exchange" means the purposes of and the pursuit of the goals of 384
473		-	the exchange expressed in and pursuant to this section and the 385
474		-	performance of the duties and responsibilities of the exchange set forth 386
475		-	in sections 38a-1084 to 38a-1087, inclusive, which are hereby determined 387
476		-	to be public purposes for which public funds may be expended. The 388
477		-	powers enumerated in this section shall be interpreted broadly to 389
478		-	effectuate the purposes of the exchange and shall not be construed as a 390
479		-	limitation of powers. 391
480		-	(b) The goals of the exchange shall be to reduce the number of 392
481		-	individuals without health insurance in this state and assist individuals 393
482		-	and small employers in the procurement of health insurance by, among 394
483		-	other services, offering easily comparable and understandable 395
484		-	information about health insurance options. 396
485		-	(c) The exchange is authorized and empowered to: 397
486		-	(1) Have perpetual succession as a body politic and corporate and to 398
487		-	adopt bylaws for the regulation of its affairs and the conduct of its 399
488		-	business; 400 Substitute Bill No. 6450
	453	+	LCO No. 3229 13 of 18
	454	+
	455	+	thousand five hundred dollars for a second offense on or before twenty-368
	456	+	four months after the date of the first offense and not more than [one] 369
	457	+	two thousand dollars for each subsequent offense on or before twenty-370
	458	+	four months after the date of the first offense. The provisions of this 371
	459	+	subsection shall not apply to a person under twenty-one years of age 372
	460	+	who is delivering or accepting delivery of an electronic nicotine delivery 373
	461	+	system or vapor product (1) in such person's capacity as an employee, 374
	462	+	or (2) as part of a scientific study being conducted by an organization 375
	463	+	for the purpose of medical research to further efforts in tobacco use 376
	464	+	prevention and cessation, provided such medical research has been 377
	465	+	approved by the organization's institutional review board, as defined in 378
	466	+	section 21a-408. 379
	467	+	Sec. 7. Section 38a-1083 of the general statutes is repealed and the 380
	468	+	following is substituted in lieu thereof (Effective January 1, 2022): 381
	469	+	(a) For purposes of sections 38a-1080 to 38a-1093, inclusive, "purposes 382
	470	+	of the exchange" means the purposes of and the pursuit of the goals of 383
	471	+	the exchange expressed in and pursuant to this section and the 384
	472	+	performance of the duties and responsibilities of the exchange set forth 385
	473	+	in sections 38a-1084 to 38a-1087, inclusive, which are hereby determined 386
	474	+	to be public purposes for which public funds may be expended. The 387
	475	+	powers enumerated in this section shall be interpreted broadly to 388
	476	+	effectuate the purposes of the exchange and shall not be construed as a 389
	477	+	limitation of powers. 390
	478	+	(b) The goals of the exchange shall be to reduce the number of 391
	479	+	individuals without health insurance in this state and assist individuals 392
	480	+	and small employers in the procurement of health insurance by, among 393
	481	+	other services, offering easily comparable and understandable 394
	482	+	information about health insurance options. 395
	483	+	(c) The exchange is authorized and empowered to: 396
	484	+	(1) Have perpetual succession as a body politic and corporate and to 397
	485	+	adopt bylaws for the regulation of its affairs and the conduct of its 398
	486	+	business; 399 Governor's Bill No. 6450
489	487
490	488
491		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
492		-	R01-HB.docx }
493		-	14 of 18
494	489
495		-	(2) Adopt an official seal and alter the same at pleasure; 401
496		-	(3) Maintain an office in the state at such place or places as it may 402
497		-	designate; 403
498		-	(4) Employ such assistants, agents, managers and other employees as 404
499		-	may be necessary or desirable; 405
500		-	(5) Acquire, lease, purchase, own, manage, hold and dispose of real 406
501		-	and personal property, and lease, convey or deal in or enter into 407
502		-	agreements with respect to such property on any terms necessary or 408
503		-	incidental to the carrying out of these purposes, provided all such 409
504		-	acquisitions of real property for the exchange's own use with amounts 410
505		-	appropriated by this state to the exchange or with the proceeds of bonds 411
506		-	supported by the full faith and credit of this state shall be subject to the 412
507		-	approval of the Secretary of the Office of Policy and Management and 413
508		-	the provisions of section 4b-23; 414
509		-	(6) Receive and accept, from any source, aid or contributions, 415
510		-	including money, property, labor and other things of value; 416
511		-	(7) Charge assessments or user fees to health carriers that are capable 417
512		-	of offering a qualified health plan through the exchange or otherwise 418
513		-	generate funding necessary to support the operations of the exchange 419
514		-	and the all-payer claims database program established under section 420
515		-	19a-755a and impose interest and penalties on such health carriers for 421
516		-	delinquent payments of such assessments or fees; 422
517		-	(8) Procure insurance against loss in connection with its property and 423
518		-	other assets in such amounts and from such insurers as it deems 424
519		-	desirable; 425
520		-	(9) Invest any funds not needed for immediate use or disbursement 426
521		-	in obligations issued or guaranteed by the United States of America or 427
522		-	the state and in obligations that are legal investments for savings banks 428
523		-	in the state; 429 Substitute Bill No. 6450
	490	+	LCO No. 3229 14 of 18
	491	+
	492	+	(2) Adopt an official seal and alter the same at pleasure; 400
	493	+	(3) Maintain an office in the state at such place or places as it may 401
	494	+	designate; 402
	495	+	(4) Employ such assistants, agents, managers and other employees as 403
	496	+	may be necessary or desirable; 404
	497	+	(5) Acquire, lease, purchase, own, manage, hold and dispose of real 405
	498	+	and personal property, and lease, convey or deal in or enter into 406
	499	+	agreements with respect to such property on any terms necessary or 407
	500	+	incidental to the carrying out of these purposes, provided all such 408
	501	+	acquisitions of real property for the exchange's own use with amounts 409
	502	+	appropriated by this state to the exchange or with the proceeds of bonds 410
	503	+	supported by the full faith and credit of this state shall be subject to the 411
	504	+	approval of the Secretary of the Office of Policy and Management and 412
	505	+	the provisions of section 4b-23; 413
	506	+	(6) Receive and accept, from any source, aid or contributions, 414
	507	+	including money, property, labor and other things of value; 415
	508	+	(7) Charge assessments or user fees to health carriers that are capable 416
	509	+	of offering a qualified health plan through the exchange or otherwise 417
	510	+	generate funding necessary to support the operations of the exchange 418
	511	+	and the all-payer claims database program established under section 419
	512	+	19a-755a and impose interest and penalties on such health carriers for 420
	513	+	delinquent payments of such assessments or fees; 421
	514	+	(8) Procure insurance against loss in connection with its property and 422
	515	+	other assets in such amounts and from such insurers as it deems 423
	516	+	desirable; 424
	517	+	(9) Invest any funds not needed for immediate use or disbursement 425
	518	+	in obligations issued or guaranteed by the United States of America or 426
	519	+	the state and in obligations that are legal investments for savings banks 427
	520	+	in the state; 428
	521	+	(10) Issue bonds, bond anticipation notes and other obligations of the 429 Governor's Bill No. 6450
524	522
525	523
526		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
527		-	R01-HB.docx }
528		-	15 of 18
529	524
530		-	(10) Issue bonds, bond anticipation notes and other obligations of the 430
531		-	exchange for any of its corporate purposes, and to fund or refund the 431
532		-	same and provide for the rights of the holders thereof, and to secure the 432
533		-	same by pledge of revenues, notes and mortgages of others; 433
534		-	(11) Borrow money for the purpose of obtaining working capital; 434
535		-	(12) Account for and audit funds of the exchange and any recipients 435
536		-	of funds from the exchange; 436
537		-	(13) Make and enter into any contract or agreement necessary or 437
538		-	incidental to the performance of its duties and execution of its powers, 438
539		-	including, but not limited to, an agreement with the Office of Health 439
540		-	Strategy to use funds collected under this section for the operation of 440
541		-	the all-payer claims database established under section 19a-755a and to 441
542		-	receive data from such database. The contracts entered into by the 442
543		-	exchange shall not be subject to the approval of any other state 443
544		-	department, office or agency, provided copies of all contracts of the 444
545		-	exchange shall be maintained by the exchange as public records, subject 445
546		-	to the proprietary rights of any party to the contract, except any 446
547		-	agreement with the Office of Health Strategy shall be subject to approval 447
548		-	by said office and the Office of Policy and Management and no portion 448
549		-	of such agreement shall be considered proprietary; 449
550		-	(14) To the extent permitted under its contract with other persons, 450
551		-	consent to any termination, modification, forgiveness or other change of 451
552		-	any term of any contractual right, payment, royalty, contract or 452
553		-	agreement of any kind to which the exchange is a party; 453
554		-	(15) Award grants to trained and certified individuals and 454
555		-	institutions that will assist individuals, families and small employers 455
556		-	and their employees in enrolling in appropriate coverage through the 456
557		-	exchange. Applications for grants from the exchange shall be made on 457
558		-	a form prescribed by the board; 458
559		-	(16) Limit the number of plans offered, and use selective criteria in 459
560		-	determining which plans to offer, through the exchange, provided 460 Substitute Bill No. 6450
	525	+	LCO No. 3229 15 of 18
	526	+
	527	+	exchange for any of its corporate purposes, and to fund or refund the 430
	528	+	same and provide for the rights of the holders thereof, and to secure the 431
	529	+	same by pledge of revenues, notes and mortgages of others; 432
	530	+	(11) Borrow money for the purpose of obtaining working capital; 433
	531	+	(12) Account for and audit funds of the exchange and any recipients 434
	532	+	of funds from the exchange; 435
	533	+	(13) Make and enter into any contract or agreement necessary or 436
	534	+	incidental to the performance of its duties and execution of its powers, 437
	535	+	including, but not limited to, an agreement with the Office of Health 438
	536	+	Strategy to use funds collected under this section for the operation of 439
	537	+	the all-payer claims database established under section 19a-755a and to 440
	538	+	receive data from such database. The contracts entered into by the 441
	539	+	exchange shall not be subject to the approval of any other state 442
	540	+	department, office or agency, provided copies of all contracts of the 443
	541	+	exchange shall be maintained by the exchange as public records, subject 444
	542	+	to the proprietary rights of any party to the contract, except any 445
	543	+	agreement with the Office of Health Strategy shall be subject to approval 446
	544	+	by said office and the Office of Policy and Management and no portion 447
	545	+	of such agreement shall be considered proprietary; 448
	546	+	(14) To the extent permitted under its contract with other persons, 449
	547	+	consent to any termination, modification, forgiveness or other change of 450
	548	+	any term of any contractual right, payment, royalty, contract or 451
	549	+	agreement of any kind to which the exchange is a party; 452
	550	+	(15) Award grants to trained and certified individuals and 453
	551	+	institutions that will assist individuals, families and small employers 454
	552	+	and their employees in enrolling in appropriate coverage through the 455
	553	+	exchange. Applications for grants from the exchange shall be made on 456
	554	+	a form prescribed by the board; 457
	555	+	(16) Limit the number of plans offered, and use selective criteria in 458
	556	+	determining which plans to offer, through the exchange, provided 459
	557	+	individuals and employers have an adequate number and selection of 460 Governor's Bill No. 6450
561	558
562	559
563		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
564		-	R01-HB.docx }
565		-	16 of 18
566	560
567		-	individuals and employers have an adequate number and selection of 461
568		-	choices; 462
569		-	(17) Evaluate jointly with the Health Care Cabinet established 463
570		-	pursuant to section 19a-725 the feasibility of implementing a basic 464
571		-	health program option as set forth in Section 1331 of the Affordable Care 465
572		-	Act; 466
573		-	(18) Establish one or more subsidiaries, in accordance with section 467
574		-	38a-1093, to further the purposes of the exchange; 468
575		-	(19) Make loans to each subsidiary established pursuant to section 469
576		-	38a-1093 from the assets of the exchange and the proceeds of bonds, 470
577		-	bond anticipation notes and other obligations issued by the exchange or 471
578		-	assign or transfer to such subsidiary any of the rights, moneys or other 472
579		-	assets of the exchange, provided such assignment or transfer is not in 473
580		-	violation of state or federal law; 474
581		-	(20) Sue and be sued, plead and be impleaded; 475
582		-	(21) Adopt regular procedures that are not in conflict with other 476
583		-	provisions of the general statutes, for exercising the power of the 477
584		-	exchange; and 478
585		-	(22) Do all acts and things necessary and convenient to carry out the 479
586		-	purposes of the exchange, provided such acts or things shall not conflict 480
587		-	with the provisions of the Affordable Care Act, regulations adopted 481
588		-	thereunder or federal guidance issued pursuant to the Affordable Care 482
589		-	Act. 483
590		-	(d) (1) The chief executive officer of the exchange shall provide to the 484
591		-	commissioner the name of any health carrier that fails to pay any 485
592		-	assessment or user fee under subdivision (7) of subsection (c) of this 486
593		-	section to the exchange. The commissioner shall see that all laws 487
594		-	respecting the authority of the exchange pursuant to said subdivision 488
595		-	(7) are faithfully executed. The commissioner has all the powers 489
596		-	specifically granted under this title and all further powers that are 490 Substitute Bill No. 6450
	561	+	LCO No. 3229 16 of 18
	562	+
	563	+	choices; 461
	564	+	(17) Evaluate jointly with the Health Care Cabinet established 462
	565	+	pursuant to section 19a-725 the feasibility of implementing a basic 463
	566	+	health program option as set forth in Section 1331 of the Affordable Care 464
	567	+	Act; 465
	568	+	(18) Establish one or more subsidiaries, in accordance with section 466
	569	+	38a-1093, to further the purposes of the exchange; 467
	570	+	(19) Make loans to each subsidiary established pursuant to section 468
	571	+	38a-1093 from the assets of the exchange and the proceeds of bonds, 469
	572	+	bond anticipation notes and other obligations issued by the exchange or 470
	573	+	assign or transfer to such subsidiary any of the rights, moneys or other 471
	574	+	assets of the exchange, provided such assignment or transfer is not in 472
	575	+	violation of state or federal law; 473
	576	+	(20) Sue and be sued, plead and be impleaded; 474
	577	+	(21) Adopt regular procedures that are not in conflict with other 475
	578	+	provisions of the general statutes, for exercising the power of the 476
	579	+	exchange; and 477
	580	+	(22) Do all acts and things necessary and convenient to carry out the 478
	581	+	purposes of the exchange, provided such acts or things shall not conflict 479
	582	+	with the provisions of the Affordable Care Act, regulations adopted 480
	583	+	thereunder or federal guidance issued pursuant to the Affordable Care 481
	584	+	Act. 482
	585	+	(d) (1) The chief executive officer of the exchange shall provide to the 483
	586	+	commissioner the name of any health carrier that fails to pay any 484
	587	+	assessment or user fee under subdivision (7) of subsection (c) of this 485
	588	+	section to the exchange. The commissioner shall see that all laws 486
	589	+	respecting the authority of the exchange pursuant to said subdivision 487
	590	+	(7) are faithfully executed. The commissioner has all the powers 488
	591	+	specifically granted under this title and all further powers that are 489
	592	+	reasonable and necessary to enable the commissioner to enforce the 490 Governor's Bill No. 6450
597	593
598	594
599		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
600		-	R01-HB.docx }
601		-	17 of 18
602	595
603		-	reasonable and necessary to enable the commissioner to enforce the 491
604		-	provisions of said subdivision (7). 492
605		-	(2) Any health carrier aggrieved by an administrative action taken by 493
606		-	the commissioner under subdivision (1) of this subsection may appeal 494
607		-	therefrom in accordance with the provisions of section 4-183, except 495
608		-	venue for such appeal shall be in the judicial district of New Britain. 496
609		-	Sec. 8. Section 38a-47 of the general statutes is repealed and the 497
610		-	following is substituted in lieu thereof (Effective January 1, 2022): 498
611		-	(a) All domestic insurance companies and other domestic entities 499
612		-	subject to taxation under chapter 207 shall, in accordance with section 500
613		-	38a-48, annually pay to the Insurance Commissioner, for deposit in the 501
614		-	Insurance Fund established under section 38a-52a, an amount equal to: 502
615		-	(1) The actual expenditures made by the Insurance Department 503
616		-	during each fiscal year, and the actual expenditures made by the Office 504
617		-	of the Healthcare Advocate, including the cost of fringe benefits for 505
618		-	department and office personnel as estimated by the Comptroller; 506
619		-	(2) The amount appropriated to the Office of Health Strategy from 507
620		-	the Insurance Fund for the fiscal year, including the cost of fringe 508
621		-	benefits for office personnel as estimated by the Comptroller shall be 509
622		-	reduced by the amount of federal reimbursement received for allowable 510
623		-	Medicaid administrative expenses; 511
624		-	(3) The expenditures made on behalf of the department and said 512
625		-	offices from the Capital Equipment Purchase Fund pursuant to section 513
626		-	4a-9 for such year, but excluding such estimated expenditures made on 514
627		-	behalf of the Health Systems Planning Unit of the Office of Health 515
628		-	Strategy; and 516
629		-	(4) The amount appropriated to the Department of Aging and 517
630		-	Disability Services for the fall prevention program established in section 518
631		-	17a-303a from the Insurance Fund for the fiscal year. 519 Substitute Bill No. 6450
	596	+	LCO No. 3229 17 of 18
	597	+
	598	+	provisions of said subdivision (7). 491
	599	+	(2) Any health carrier aggrieved by an administrative action taken by 492
	600	+	the commissioner under subdivision (1) of this subsection may appeal 493
	601	+	therefrom in accordance with the provisions of section 4-183, except 494
	602	+	venue for such appeal shall be in the judicial district of New Britain. 495
	603	+	Sec. 8. Section 38a-47 of the general statutes is repealed and the 496
	604	+	following is substituted in lieu thereof (Effective January 1, 2022): 497
	605	+	(a) All domestic insurance companies and other domestic entities 498
	606	+	subject to taxation under chapter 207 shall, in accordance with section 499
	607	+	38a-48, annually pay to the Insurance Commissioner, for deposit in the 500
	608	+	Insurance Fund established under section 38a-52a, an amount equal to: 501
	609	+	(1) The actual expenditures made by the Insurance Department 502
	610	+	during each fiscal year, and the actual expenditures made by the Office 503
	611	+	of the Healthcare Advocate, including the cost of fringe benefits for 504
	612	+	department and office personnel as estimated by the Comptroller; 505
	613	+	(2) The amount appropriated to the Office of Health Strategy from 506
	614	+	the Insurance Fund for the fiscal year, including the cost of fringe 507
	615	+	benefits for office personnel as estimated by the Comptroller shall be 508
	616	+	reduced by the amount of federal reimbursement received for allowable 509
	617	+	Medicaid administrative expenses; 510
	618	+	(3) The expenditures made on behalf of the department and said 511
	619	+	offices from the Capital Equipment Purchase Fund pursuant to section 512
	620	+	4a-9 for such year, but excluding such estimated expenditures made on 513
	621	+	behalf of the Health Systems Planning Unit of the Office of Health 514
	622	+	Strategy; and 515
	623	+	(4) The amount appropriated to the Department of Aging and 516
	624	+	Disability Services for the fall prevention program established in section 517
	625	+	17a-303a from the Insurance Fund for the fiscal year. 518
	626	+	(b) The expenditures and amounts specified in subdivisions (1) to (4), 519
	627	+	inclusive, of subsection (a) of this section shall exclude expenditures 520 Governor's Bill No. 6450
632	628
633	629
634		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06450-
635		-	R01-HB.docx }
636		-	18 of 18
637	630
638		-	~~(b) The expenditures and amounts specified in subdivisions (1) to (4), 520~~
639		-	~~inclusive, of subsection (a) of this section shall exclude expenditures 521~~
640		-	paid for by fraternal benefit societies, foreign and alien insurance ~~522~~
641		-	companies and other foreign and alien entities under sections 38a-49 ~~523~~
642		-	and 38a-50. ~~524~~
643		-	(c) Payments shall be made by assessment of all such domestic ~~525~~
644		-	insurance companies and other domestic entities calculated and ~~526~~
645		-	collected in accordance with the provisions of section 38a-48. Any such ~~527~~
646		-	domestic insurance company or other domestic entity aggrieved ~~528~~
647		-	because of any assessment levied under this section may appeal ~~529~~
648		-	therefrom in accordance with the provisions of section 38a-52. ~~530~~
	631	+	LCO No. 3229 18 of 18
	632	+
	633	+	paid for by fraternal benefit societies, foreign and alien insurance 521
	634	+	companies and other foreign and alien entities under sections 38a-49 522
	635	+	and 38a-50. 523
	636	+	(c) Payments shall be made by assessment of all such domestic 524
	637	+	insurance companies and other domestic entities calculated and 525
	638	+	collected in accordance with the provisions of section 38a-48. Any such 526
	639	+	domestic insurance company or other domestic entity aggrieved 527
	640	+	because of any assessment levied under this section may appeal 528
	641	+	therefrom in accordance with the provisions of section 38a-52. 529
649	642		This act shall take effect as follows and shall amend the following
650	643		sections:
651	644
652	645		Section 1 January 1, 2022 21a-415(a)
653	646		Sec. 2 January 1, 2022 New section
654	647		Sec. 3 January 1, 2022 21a-415b
655	648		Sec. 4 January 1, 2022 12-295a
656	649		Sec. 5 January 1, 2022 53-344(b)
657	650		Sec. 6 January 1, 2022 53-344b(b)
658	651		Sec. 7 January 1, 2022 38a-1083
659	652		Sec. 8 January 1, 2022 38a-47
660	653
661		-	Statement of Legislative Commissioners:
662		-	In Sections 3(e)(4), (f)(4) and (g), 4(b)(2), and 4(c)(2), grammatical
663		-	changes were made for clarity and consistency.
664		-
665		-	PH Joint Favorable Subst. -LCO
666		-
	654	+	Statement of Purpose:
	655	+	To implement the Governor's budget recommendations.
	656	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	657	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	658	+	underlined.]