LCO No. 5279 1 of 9 General Assembly Raised Bill No. 6862 January Session, 2023 LCO No. 5279 Referred to Committee on LABOR AND PUBLIC EMPLOYEES Introduced by: (LAB) AN ACT CONCERNING BROADBAND CONSTRUCTION AND THE PREVAILING WAGE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 16-330c of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2023): 2 (a) On or before January 1, 2022, the Commissioner of Energy and 3 Environmental Protection shall establish and administer a grant 4 program, subject to the availability of state and federal funding, to 5 support the deployment of broadband Internet access service. The 6 commissioner shall establish criteria consistent with any requirement of 7 federal law for the grants, including, but not limited to, (1) application 8 requirements, (2) applicant eligibility, (3) addressing unserved areas in 9 distressed municipalities, (4) broadband Internet access service speed, 10 and (5) an applicant's commitment to pay at least twenty per cent of the 11 costs for any project entered into pursuant to this section with such 12 applicant's own funding, provided such funding does not derive from 13 government grants, loans or subsidies to said applicant. 14 (b) In awarding such grants, the commissioner [may] shall give 15 Raised Bill No. 6862 LCO No. 5279 2 of 9 priority to applicants (1) based on the percentage of said applicant's 16 commitment to cost sharing, (2) that are able to demonstrate that (A) 17 said applicant provides robust training programs to its workforce who 18 will be performing the contract that contains requirements that are tied 19 to titles, uniform wage scales and skill codes recognized in the industry, 20 and (B) said applicant requires occupational health and safety training 21 for its workforce performing the contract, (3) who will perform the 22 contract funded by the program using a directly employed workforce, 23 (4) that are able to demonstrate that said applicant has programs to 24 promote training and hiring pipelines for underrepresented 25 communities, and (5) that, (A) within the last five years, have had robust 26 records of compliance with the Connecticut Labor Code, Occupational 27 Safety and Health Act, Fair Labor Standards Act, Title VII of the Civil 28 Rights Act of 1964 and all other applicable labor or employment laws, 29 or (B) have mitigated violations with labor compliance agreements and 30 measures in order to ensure future labor compliance. The commissioner 31 may deny applications from broadband Internet access service 32 providers that do not provide information to the Office of Policy and 33 Management pursuant to subsection (c) of section 16-330b or to the 34 Department of Energy and Environmental Protection pursuant to 35 subsection (b) of section 16-330d. The commissioner may employ 36 outside consultants in developing and implementing said grant 37 program. 38 (c) Any disclosure made by an applicant pertaining to the criteria in 39 subdivisions (2) to (5), inclusive, of subsection (b) of this section shall be 40 made available to the public on the Office of Telecommunications and 41 Broadband's Internet web site. 42 (d) The commissioner shall award the grants based on a point system. 43 Each applicant shall be given points that range from zero to one 44 hundred points. For grants funded by the Broadband Equity, Access 45 and Development program, satisfaction of the criteria established in 46 subdivisions (2) to (5), inclusive, of subsection (b) of this section and the 47 "Fair Labor Practices" outlined in the National Telecommunications and 48 Information Notice of Funding Opportunity published on May 13, 2022, 49 Raised Bill No. 6862 LCO No. 5279 3 of 9 together, shall be awarded at least twenty-five points. For grants not 50 funded by the Broadband Equity, Access and Development program, 51 satisfaction of the criteria established in subdivisions (2) to (5), inclusive, 52 of subsection (b) of this section shall be awarded a substantial point 53 allocation, constituting at least fifteen points. 54 (e) In awarding such grants, the commissioner shall give priority to 55 entities and projects that can reliably meet or exceed one hundred 56 megabits per second symmetrical speeds and further give preference to 57 projects that are capable of delivering gigabit symmetrical speeds. The 58 commissioner shall also consider the scalability of the project's 59 technology and infrastructure beyond such project's current maximum 60 speed offering for future increases in bandwidth. The commissioner 61 shall give preference to projects that use fiber-optic architecture and 62 may only award grants to projects using non-fiber technologies in 63 scenarios where fiber-optic architecture would either be (1) physically 64 impossible, based on the geography or topography, or (2) excessively 65 financially burdensome. 66 (f) All projects funded by grants awarded pursuant to this section 67 shall be subject to the prevailing wage requirements established in 68 section 31-53, as amended by this act. 69 [(b)] (g) On or before January 1, 2023, and every year thereafter for a 70 period of five years after receiving a grant pursuant to this section, the 71 recipient of such grant shall submit a report to the Commissioner of 72 Energy and Environmental Protection concerning the status of such 73 recipient's broadband Internet access service deployment and other 74 information deemed relevant by the commissioner. 75 [(c)] (h) On or before December 1, 2022, and every two years 76 thereafter, the Department of Energy and Environmental Protection, in 77 consultation with the Office of Policy and Management, the Office of 78 State Broadband, the Commission for Educational Technology and 79 other state agencies deemed appropriate by the Commissioner of 80 Energy and Environmental Protection, shall report to the Governor 81 Raised Bill No. 6862 LCO No. 5279 4 of 9 concerning (1) the grants awarded pursuant to this section, (2) the status 82 and progress made toward a state-wide goal of attaining universal 83 access to (A) broadband Internet download speeds of one gigabit per 84 second; and (B) broadband Internet upload speeds of one hundred 85 megabits per second, and (3) broadband Internet access service 86 adoption rates, the price and nonprice barriers to broadband adoption 87 and digital equity. Such report shall include recommendations to 88 overcome any such barriers, including, but not limited to, addressing 89 issues of digital literacy and affordability. 90 Sec. 2. (NEW) (Effective July 1, 2023) (a) Applicants for a grant under 91 section 16-330c of the general statutes, as amended by this act, shall 92 provide the Commissioner of Energy and Environmental Protection the 93 following information with such applicant's application: 94 (1) Whether the workforce is directly employed by the contractor or 95 whether the proposed work will be performed by a subcontracted 96 workforce; 97 (2) The subcontractors with whom the contractor plans to subcontract 98 with, if any, in carrying out the proposed work; 99 (3) For each job title required to carry out the proposed work, a 100 description of: 101 (A) The wages, benefits and applicable wage scales, including 102 overtime rates, and a description of how such wages are calculated; 103 (B) Any training programs provided by the applicant, including 104 whether the training program is tied to titles, uniform wage scales and 105 skill codes recognized in the industry; 106 (C) Any safety training, certification or licensure requirements, 107 including whether such participant requires its employees to complete 108 occupational safety and health training or any other training required 109 by law; and 110 (D) The entity employing the workforce in each job title. 111 Raised Bill No. 6862 LCO No. 5279 5 of 9 (b) If an applicant is awarded a grant under section 16-330c, as 112 amended by this act, such applicant shall submit a monthly report to the 113 commissioner with the information provided in subsection (a) of this 114 section. The provisions of this section shall apply to any applicant that 115 is a public agency. 116 (c) Any person or entity that fails to meet the requirements of this 117 section or provides false information on their application or the monthly 118 report in subsection (b) of this section may be deemed ineligible for 119 future participation in grant programs through the Office of 120 Telecommunications and Broadband. 121 Sec. 3. Subsections (a) to (e), inclusive, of section 31-53 of the general 122 statutes are repealed and the following is substituted in lieu thereof 123 (Effective July 1, 2023): 124 (a) Each contract for the construction, remodeling, refinishing, 125 refurbishing, rehabilitation, alteration or repair of any public works 126 project by the state or any of its agents, or by any political subdivision 127 of the state or any of its agents, or any broadband installation project 128 funded by a grant pursuant to section 16-330c, as amended by this act, 129 shall contain the following provision: "The wages paid on an hourly 130 basis to any person performing the work of any mechanic, laborer or 131 worker on the work herein contracted to be done and the amount of 132 payment or contribution paid or payable on behalf of each such person 133 to any employee welfare fund, as defined in subsection (i) of this section, 134 shall be at a rate equal to the rate customary or prevailing for the same 135 work in the same trade or occupation in the town in which such public 136 works project or broadband installation project is being constructed. 137 Any contractor who is not obligated by agreement to make payment or 138 contribution on behalf of such persons to any such employee welfare 139 fund shall pay to each mechanic, laborer or worker as part of such 140 person's wages the amount of payment or contribution for such person's 141 classification on each pay day. 142 (b) If the commissioner, upon inspection or investigation of a 143 Raised Bill No. 6862 LCO No. 5279 6 of 9 complaint, believes that a contractor or subcontractor has knowingly or 144 wilfully employed any mechanic, laborer or worker in the construction, 145 remodeling, refinishing, refurbishing, rehabilitation, alteration or repair 146 of any public works project for or on behalf of the state or any of its 147 agents, or any political subdivision of the state or any of its agents, or 148 employs any mechanic, laborer or worker in a broadband installation 149 project funded by a grant pursuant to section 16-330c, as amended by 150 this act, at a rate of wage on an hourly basis that is less than the rate 151 customary or prevailing for the same work in the same trade or 152 occupation in the town in which such public works project or 153 broadband installation project is being constructed, remodeled, 154 refinished, refurbished, rehabilitated, altered or repaired, or who has 155 failed to pay the amount of payment or contributions paid or payable 156 on behalf of each such person to any employee welfare fund, or in lieu 157 thereof to the person, as provided by subsection (a) of this section, such 158 contractor or subcontractor shall be issued a citation and may be fined 159 five thousand dollars for each offense. The commissioner shall maintain 160 a list of any contractor or subcontractor that, during the three preceding 161 calendar years, violates this section or enters into a settlement with the 162 commissioner to resolve any claim brought by the commissioner 163 pursuant to this section. For each contractor or subcontractor placed on 164 such list, the commissioner shall record the following information: (1) 165 The nature of the violation; (2) the total amount of wages and fringe 166 benefits making up the violation or agreed upon in any settlement with 167 the commissioner; and (3) the total amount of civil penalties and fines 168 agreed upon by the commissioner. The commissioner shall review the 169 list on the first day of May each year for the preceding rolling three-year 170 period and may refer for debarment any contractor or subcontractor that 171 committed a violation of this section during the rolling three-year 172 period. The commissioner shall refer for debarment any contractor or 173 subcontractor that entered into one or more settlement agreements with 174 the commissioner where the sum total of all settlements within such 175 period exceeds fifty thousand dollars in back wages or fringe benefits, 176 or entered into one or more settlement agreements with the 177 commissioner where the sum total of all settlements within such period 178 Raised Bill No. 6862 LCO No. 5279 7 of 9 exceeds fifty thousand dollars in civil penalties or fines agreed upon by 179 the commissioner. Any contractor or subcontractor the commissioner 180 refers for debarment may request a hearing before the commissioner. 181 Such hearing shall be conducted in accordance with the provisions of 182 chapter 54. In addition, if it is found by the contracting officer 183 representing the state or political subdivision of the state that any 184 mechanic, laborer or worker employed by the contractor or any 185 subcontractor directly on the site for the work covered by the contract 186 has been or is being paid a rate of wages less than the rate of wages 187 required by the contract to be paid as required by this section, the state 188 or contracting political subdivision of the state may (A) by written or 189 electronic notice to the contractor, terminate such contractor's right to 190 proceed with the work or such part of the work as to which there has 191 been a failure to pay said required wages and to prosecute the work to 192 completion by contract or otherwise, and the contractor and the 193 contractor's sureties shall be liable to the state or the contracting political 194 subdivision for any excess costs occasioned the state or the contracting 195 political subdivision thereby, or (B) withhold payment of money to the 196 contractor or subcontractor. The contracting department of the state or 197 the political subdivision of the state shall, not later than two days after 198 taking such action, notify the Labor Commissioner, in writing or 199 electronically, of the name of the contractor or subcontractor, the project 200 involved, the location of the work, the violations involved, the date the 201 contract was terminated, and steps taken to collect the required wages. 202 (c) The Labor Commissioner may make complaint to the proper 203 prosecuting authorities for the violation of any provision of subsection 204 (b) of this section. 205 (d) For the purpose of predetermining the prevailing rate of wage on 206 an hourly basis and the amount of payment, contributions and member 207 benefits paid or payable on behalf of each person to any employee 208 welfare fund, as defined in subsection (i) of this section, in each town 209 where such contract is to be performed, the Labor Commissioner shall 210 adopt the rate of wages on an hourly basis in accordance with the 211 provisions of this section and section 31-76c and the amount of payment, 212 Raised Bill No. 6862 LCO No. 5279 8 of 9 contributions and member benefits, including health, pension, annuity 213 and apprenticeship funds, as recognized by the United States 214 Department of Labor and the Labor Commissioner paid or payable on 215 behalf of each person to any employee welfare fund, as defined in 216 subsection (i) of this section, as established in the collective bargaining 217 agreements or understandings between employers or employer 218 associations and bona fide labor organizations for the same work in the 219 same trade or occupation in the town in which the applicable building, 220 heavy or highway works project is being constructed. For each trade or 221 occupation for which more than one collective bargaining agreement is 222 in effect for the town in which such project is being constructed, the 223 collective bargaining agreement of historical jurisdiction shall prevail. 224 For residential project rates and for each trade or occupation for which 225 there is no collective bargaining agreement in effect for the town in 226 which the building, heavy or highway works project is being 227 constructed, the Labor Commissioner shall adopt and use such 228 appropriate and applicable prevailing wage rate determinations as have 229 been made by the Secretary of Labor of the United States under the 230 provisions of the Davis-Bacon Act, as amended. 231 (e) The Labor Commissioner shall determine the prevailing rate of 232 wages on an hourly basis and the amount of payment or contributions 233 paid or payable on behalf of such person to any employee welfare fund, 234 as defined in subsection (i) of this section, in each locality where any 235 such public work is to be constructed, and the agent empowered to let 236 such contract shall contact the Labor Commissioner, at least ten but not 237 more than twenty days prior to the date such contracts will be 238 advertised for bid, to ascertain the proper rate of wages and amount of 239 employee welfare fund payments or contributions and shall include 240 such rate of wage on an hourly basis and the amount of payment or 241 contributions paid or payable on behalf of each person to any employee 242 welfare fund, as defined in subsection (i) of this section, or in lieu thereof 243 the amount to be paid directly to each person for such payment or 244 contributions as provided in subsection (a) of this section for all 245 classifications of labor in the proposal for the contract. The rate of wage 246 Raised Bill No. 6862 LCO No. 5279 9 of 9 on an hourly basis and the amount of payment or contributions to any 247 employee welfare fund, as defined in subsection (i) of this section, or 248 cash in lieu thereof, as provided in subsection (a) of this section, shall, at 249 all times, be considered as the minimum rate for the classification for 250 which it was established. Prior to the award of any contract, purchase 251 order, bid package or other designation subject to the provisions of this 252 section, such agent shall certify to the Labor Commissioner, either in 253 writing or electronically, the total dollar amount of work to be done in 254 connection with such public works project or broadband installation 255 project, regardless of whether such project consists of one or more 256 contracts. Upon the award of any contract subject to the provisions of 257 this section, the contractor to whom such contract is awarded shall 258 certify, under oath, to the Labor Commissioner the pay scale to be used 259 by such contractor and any of the contractor's subcontractors for work 260 to be performed under such contract. 261 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2023 16-330c Sec. 2 July 1, 2023 New section Sec. 3 July 1, 2023 31-53(a) to (e) Statement of Purpose: To implement oversight, accountability and labor standards for the state's expenditure of broadband funds received pursuant to federal funds. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]