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repealed and the following is substituted in lieu thereof (Effective January 2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