Connecticut 2023 Regular Session

Connecticut House Bill HB06862 Latest Draft

Bill / Comm Sub Version Filed 05/24/2023

                             
 
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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 Section 16-330c of the general statutes is repealed and the 1 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 
 
 
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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 
 
 
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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 
 
 
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(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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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