LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06862-R02- HB.docx 1 of 9 General Assembly Substitute Bill No. 6862 January Session, 2023 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 Section 16-330c of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2023): 2 (a) On or before January 1, 2022, the Commissioner of Energy and 3 Environmental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] such applicant. 14 (b) In awarding such grants, the commissioner [may] shall give 15 priority to applicants (1) based on the percentage of [said] such 16 applicant's commitment to cost sharing, (2) that are able to demonstrate 17 that such applicant (A) provides robust training programs to its 18 Substitute Bill No. 6862 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06862- R02-HB.docx } 2 of 9 workforce that will be performing the work under the contract, 19 provided such contract contains requirements that are tied to titles, 20 uniform wage scales and skill codes recognized in the industry, and (B) 21 requires occupational health and safety training for its workforce 22 performing the work under the contract, (3) that will use a directly 23 employed workforce to perform the work under the contract being 24 funded by the program, (4) that are able to demonstrate that such 25 applicant has programs to promote training and hiring pipelines for 26 underrepresented communities, and (5) that, (A) within the last five 27 years, have had robust records of compliance with the Connecticut 28 Labor Code, Occupational Safety and Health Act, Fair Labor Standards 29 Act, Title VII of the Civil Rights Act of 1964 and all other applicable labor 30 or employment laws, or (B) have mitigated violations with labor 31 compliance agreements and measures in order to ensure future labor 32 compliance. The commissioner may deny applications from broadband 33 Internet access service providers that do not provide information to the 34 Office of Policy and Management pursuant to subsection (c) of section 35 16-330b or to the Department of Energy and Environmental Protection 36 pursuant to subsection (b) of section 16-330d. The commissioner may 37 employ outside consultants in developing and implementing [said] 38 such grant program. 39 (c) Any disclosures made by an applicant as a result of the criteria 40 described in subdivisions (2) to (5), inclusive, of subsection (b) of this 41 section, shall be made available on the Office of Telecommunications 42 and Broadband's Internet web site. 43 (d) The commissioner shall award the grants based on a point system. 44 Each applicant shall be awarded a point total that ranges from zero to 45 one hundred points. For grants funded by the Broadband Equity, Access 46 and Development program, satisfaction of the criteria described in 47 subdivisions (2) to (5), inclusive, of subsection (b) of this section and the 48 "Fair Labor Practices" outlined in the National Telecommunications and 49 Information Notice of Funding Opportunity published on May 13, 2022, 50 together, shall be awarded at least twenty-five points. For grants not 51 Substitute Bill No. 6862 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06862- R02-HB.docx } 3 of 9 funded by the Broadband Equity, Access and Development program, 52 satisfaction of the criteria described in subdivisions (2) to (5), inclusive, 53 of subsection (b) of this section shall be awarded a substantial point 54 allocation, constituting of at least fifteen points. 55 (e) All projects funded by grants awarded pursuant to this section 56 shall be subject to the prevailing wage requirements established in 57 section 31-53, as amended by this act. 58 [(b)] (f) On or before January 1, 2023, and every year thereafter for a 59 period of five years after receiving a grant pursuant to this section, the 60 recipient of such grant shall submit a report to the Commissioner of 61 Energy and Environmental Protection concerning the status of such 62 recipient's broadband Internet access service deployment and other 63 information deemed relevant by the commissioner. 64 [(c)] (g) On or before December 1, 2022, and every two years 65 thereafter, the Department of Energy and Environmental Protection, in 66 consultation with the Office of Policy and Management, the Office of 67 State Broadband, the Commission for Educational Technology and 68 other state agencies deemed appropriate by the Commissioner of 69 Energy and Environmental Protection, shall report to the Governor 70 concerning (1) the grants awarded pursuant to this section, (2) the status 71 and progress made toward a state-wide goal of attaining universal 72 access to (A) broadband Internet download speeds of one gigabit per 73 second; and (B) broadband Internet upload speeds of one hundred 74 megabits per second, and (3) broadband Internet access service 75 adoption rates, the price and nonprice barriers to broadband adoption 76 and digital equity. Such report shall include recommendations to 77 overcome any such barriers, including, but not limited to, addressing 78 issues of digital literacy and affordability. 79 Sec. 2. (NEW) (Effective July 1, 2023) (a) Applicants for a grant under 80 section 16-330c of the general statutes, as amended by this act, shall 81 provide the Commissioner of Energy and Environmental Protection the 82 following information with such applicant's application: 83 Substitute Bill No. 6862 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06862- R02-HB.docx } 4 of 9 (1) Whether the workforce is directly employed by the applicant or 84 whether the proposed work will be performed by a subcontracted 85 workforce; 86 (2) The subcontractors with whom the applicant plans to subcontract 87 with, if any, in carrying out the proposed work; and 88 (3) For each job title necessary to carry out the proposed work, a 89 description of: 90 (A) The wages, benefits and applicable wage scales, including 91 overtime rates, and a description of how such wages are calculated; 92 (B) Any training programs provided by the applicant, including 93 whether the training program is tied to titles, uniform wage scales and 94 skill codes recognized in the industry; 95 (C) Any safety training, certification or licensure requirements, 96 including whether such applicant requires its employees to complete 97 occupational safety and health training or any other training required 98 by law; and 99 (D) The entity employing the workforce in each job title. 100 (b) If an applicant is awarded a grant under section 16-330c of the 101 general statutes, as amended by this act, such applicant shall submit a 102 monthly report to the commissioner with the information provided in 103 subsection (a) of this section. The provisions of this subsection shall 104 apply to any recipient that is a public agency. 105 (c) Any person or entity that fails to meet the requirements of this 106 section, or provides false information in their application or the monthly 107 report described in subsection (b) of this section, may be deemed 108 ineligible by the commissioner for future participation in grant 109 programs through the Office of Telecommunications and Broadband. 110 Sec. 3. Subsections (a) to (e), inclusive, of section 31-53 of the general 111 Substitute Bill No. 6862 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06862- R02-HB.docx } 5 of 9 statutes, as amended by section 1 of public act 22-17, are repealed and 112 the following is substituted in lieu thereof (Effective July 1, 2023): 113 (a) Each contract for the construction, remodeling, refinishing, 114 refurbishing, rehabilitation, alteration or repair of any public works 115 project by the state or any of its agents, or by any political subdivision 116 of the state or any of its agents, or any broadband installation project 117 funded by a grant pursuant to section 16-330c, as amended by this act, 118 shall contain the following provision: "The wages paid on an hourly 119 basis to any person performing the work of any mechanic, laborer or 120 worker on the work herein contracted to be done and the amount of 121 payment or contribution paid or payable on behalf of each such person 122 to any employee welfare fund, as defined in subsection (i) of this section, 123 shall be at a rate equal to the rate customary or prevailing for the same 124 work in the same trade or occupation in the town in which such public 125 works project or broadband installation project is being constructed. 126 Any contractor who is not obligated by agreement to make payment or 127 contribution on behalf of such persons to any such employee welfare 128 fund shall pay to each mechanic, laborer or worker as part of such 129 person's wages the amount of payment or contribution for such person's 130 classification on each pay day. 131 (b) If the commissioner, upon inspection or investigation of a 132 complaint, believes that a contractor or subcontractor has knowingly or 133 wilfully employed any mechanic, laborer or worker in the construction, 134 remodeling, refinishing, refurbishing, rehabilitation, alteration or repair 135 of any public works project for or on behalf of the state or any of its 136 agents, or any political subdivision of the state or any of its agents, or 137 employs any mechanic, laborer or worker in a broadband installation 138 project funded by a grant pursuant to section 16-330c, as amended by 139 this act, at a rate of wage on an hourly basis that is less than the rate 140 customary or prevailing for the same work in the same trade or 141 occupation in the town in which such public works project or 142 broadband installation project is being constructed, remodeled, 143 refinished, refurbished, rehabilitated, altered or repaired, or who has 144 Substitute Bill No. 6862 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06862- R02-HB.docx } 6 of 9 failed to pay the amount of payment or contributions paid or payable 145 on behalf of each such person to any employee welfare fund, or in lieu 146 thereof to the person, as provided by subsection (a) of this section, such 147 contractor or subcontractor shall be issued a citation and may be fined 148 five thousand dollars for each offense. The commissioner shall maintain 149 a list of any contractor or subcontractor that, during the three preceding 150 calendar years, violates this section or enters into a settlement with the 151 commissioner to resolve any claim brought by the commissioner 152 pursuant to this section. For each contractor or subcontractor placed on 153 such list, the commissioner shall record the following information: (1) 154 The nature of the violation; (2) the total amount of wages and fringe 155 benefits making up the violation or agreed upon in any settlement with 156 the commissioner; and (3) the total amount of civil penalties and fines 157 agreed upon by the commissioner. The commissioner shall review the 158 list on the first day of May each year for the preceding rolling three-year 159 period and may refer for debarment any contractor or subcontractor that 160 committed a violation of this section during the rolling three-year 161 period. The commissioner shall refer for debarment any contractor or 162 subcontractor that entered into one or more settlement agreements with 163 the commissioner where the sum total of all settlements within such 164 period exceeds fifty thousand dollars in back wages or fringe benefits, 165 or entered into one or more settlement agreements with the 166 commissioner where the sum total of all settlements within such period 167 exceeds fifty thousand dollars in civil penalties or fines agreed upon by 168 the commissioner. Any contractor or subcontractor the commissioner 169 refers for debarment may request a hearing before the commissioner. 170 Such hearing shall be conducted in accordance with the provisions of 171 chapter 54. In addition, if it is found by the contracting officer 172 representing the state or political subdivision of the state that any 173 mechanic, laborer or worker employed by the contractor or any 174 subcontractor directly on the site for the work covered by the contract 175 has been or is being paid a rate of wages less than the rate of wages 176 required by the contract to be paid as required by this section, the state 177 or contracting political subdivision of the state may (A) by written or 178 electronic notice to the contractor, terminate such contractor's right to 179 Substitute Bill No. 6862 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06862- R02-HB.docx } 7 of 9 proceed with the work or such part of the work as to which there has 180 been a failure to pay said required wages and to prosecute the work to 181 completion by contract or otherwise, and the contractor and the 182 contractor's sureties shall be liable to the state or the contracting political 183 subdivision for any excess costs occasioned the state or the contracting 184 political subdivision thereby, or (B) withhold payment of money to the 185 contractor or subcontractor. The contracting department of the state or 186 the political subdivision of the state shall, not later than two days after 187 taking such action, notify the Labor Commissioner, in writing or 188 electronically, of the name of the contractor or subcontractor, the project 189 involved, the location of the work, the violations involved, the date the 190 contract was terminated, and steps taken to collect the required wages. 191 (c) The Labor Commissioner may make complaint to the proper 192 prosecuting authorities for the violation of any provision of subsection 193 (b) of this section. 194 (d) For the purpose of predetermining the prevailing rate of wage on 195 an hourly basis and the amount of payment, contributions and member 196 benefits paid or payable on behalf of each person to any employee 197 welfare fund, as defined in subsection (i) of this section, in each town 198 where such contract is to be performed, the Labor Commissioner shall 199 adopt the rate of wages on an hourly basis in accordance with the 200 provisions of this section and section 31-76c and the amount of payment, 201 contributions and member benefits, including health, pension, annuity 202 and apprenticeship funds, as recognized by the United States 203 Department of Labor and the Labor Commissioner paid or payable on 204 behalf of each person to any employee welfare fund, as defined in 205 subsection (i) of this section, as established in the collective bargaining 206 agreements or understandings between employers or employer 207 associations and bona fide labor organizations for the same work in the 208 same trade or occupation in the town in which the applicable building, 209 heavy or highway works project is being constructed. For each trade or 210 occupation for which more than one collective bargaining agreement is 211 in effect for the town in which such project is being constructed, the 212 Substitute Bill No. 6862 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06862- R02-HB.docx } 8 of 9 collective bargaining agreement of historical jurisdiction shall prevail. 213 For residential project rates and for each trade or occupation for which 214 there is no collective bargaining agreement in effect for the town in 215 which the building, heavy or highway works project is being 216 constructed, the Labor Commissioner shall adopt and use such 217 appropriate and applicable prevailing wage rate determinations as have 218 been made by the Secretary of Labor of the United States under the 219 provisions of the Davis-Bacon Act, as amended. 220 (e) The Labor Commissioner shall determine the prevailing rate of 221 wages on an hourly basis and the amount of payment or contributions 222 paid or payable on behalf of such person to any employee welfare fund, 223 as defined in subsection (i) of this section, in each locality where any 224 such public work is to be constructed, and the agent empowered to let 225 such contract shall contact the Labor Commissioner, at least ten but not 226 more than twenty days prior to the date such contracts will be 227 advertised for bid, to ascertain the proper rate of wages and amount of 228 employee welfare fund payments or contributions and shall include 229 such rate of wage on an hourly basis and the amount of payment or 230 contributions paid or payable on behalf of each person to any employee 231 welfare fund, as defined in subsection (i) of this section, or in lieu thereof 232 the amount to be paid directly to each person for such payment or 233 contributions as provided in subsection (a) of this section for all 234 classifications of labor in the proposal for the contract. The rate of wage 235 on an hourly basis and the amount of payment or contributions to any 236 employee welfare fund, as defined in subsection (i) of this section, or 237 cash in lieu thereof, as provided in subsection (a) of this section, shall, at 238 all times, be considered as the minimum rate for the classification for 239 which it was established. Prior to the award of any contract, purchase 240 order, bid package or other designation subject to the provisions of this 241 section, such agent shall certify to the Labor Commissioner, either in 242 writing or electronically, the total dollar amount of work to be done in 243 connection with such public works project or broadband installation 244 project, regardless of whether such project consists of one or more 245 contracts. Upon the award of any contract subject to the provisions of 246 Substitute Bill No. 6862 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06862- R02-HB.docx } 9 of 9 this section, the contractor to whom such contract is awarded shall 247 certify, under oath, to the Labor Commissioner the pay scale to be used 248 by such contractor and any of the contractor's subcontractors for work 249 to be performed under such contract. 250 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) LAB Joint Favorable Subst. APP Joint Favorable