CT
Connecticut Senate Bill SB00137

Connecticut 2024 Regular Session

Connecticut Senate Bill SB00137 Compare Versions

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5-General Assembly Substitute Bill No. 137
5+General Assembly Raised Bill No. 137
66 February Session, 2024
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10+Referred to Committee on LABOR AND PUBLIC EMPLOYEES
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12+
13+Introduced by:
14+(LAB)
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1117
1218 AN ACT CONCERNING GAS, ELECTRIC, SEWER AND WATER
1319 DELIVERY WORK.
1420 Be it enacted by the Senate and House of Representatives in General
1521 Assembly convened:
1622
17-Section 1. (NEW) (Effective October 1, 2024) (a) As used in this section, 1
18-section 2 of this act and section 31-53 of the general statutes, as amended 2
19-by this act: 3
20-(1) "Public utility project" means the construction, remodeling, 4
21-refinishing, refurbishing, rehabilitation, alteration or repair of any 5
22-property that is owned and operated by a public utility; 6
23-(2) "Contractor" means any individual or business entity that is 7
24-awarded, or is a subcontractor under, a public utility project contract; 8
25-(3) "Electric distribution company" has the same meaning as 9
26-provided in section 16-1 of the general statutes; 10
27-(4) "Gas company" has the same meaning as provided in section 16-1 11
28-of the general statutes; 12
29-(5) "Pipeline company" has the same meaning as provided in section 13
30-16-1 of the general statutes; 14
31-(6) "Public utility" means an electric distribution company, gas 15 Substitute Bill No. 137
23+Section 1. (NEW) (Effective October 1, 2024) (a) As used in this section 1
24+and sections 2 to 4, inclusive, of this act: 2
25+(1) "Public utility project" means a project to which a gas company, 3
26+pipeline company, water company, sewage company or electric 4
27+distribution company is a party; 5
28+(2) "Contractor" means any individual or business entity that is 6
29+awarded, or is a subcontractor under, a public utility project contract; 7
30+(3) "Electric distribution company" has the same meaning as 8
31+provided in section 16-1 of the general statutes; 9
32+(4) "Gas company" has the same meaning as provided in section 16-1 10
33+of the general statutes; 11
34+(5) "Pipeline company" has the same meaning as provided in section 12
35+16-1 of the general statutes; 13 Raised Bill No. 137
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36-company, pipeline company, sewage company or water company; 16
37-(7) "Sewage company" has the same meaning as provided in section 17
38-16-1 of the general statutes; 18
39-(8) "Water company" has the same meaning as provided in section 16-19
40-1 of the general statutes; and 20
41-(9) "Preapprenticeship program" means a program approved 21
42-pursuant to sections 31-22m to 31-22v, inclusive, of the general statutes. 22
43-(b) Any contractor who has entered into a contract for a public utility 23
44-project shall provide (1) apprenticeship training through an 24
45-apprenticeship program registered with the Labor Department, or (2) a 25
46-preapprenticeship training program. 26
47-(c) A contractor shall certify, in a form and manner prescribed by the 27
48-Labor Commissioner, that such contractor currently provides (1) 28
49-apprenticeship training through an apprenticeship program registered 29
50-with the Labor Department, or (2) a preapprenticeship program. 30
51-Sec. 2. (NEW) (Effective October 1, 2024) (a) Each contract for a public 31
52-utility project entered into on or after October 1, 2024, shall contain the 32
53-following provision: "The wages paid on an hourly basis to any person 33
54-performing the work of any mechanic, laborer or worker on the work 34
55-herein, contracted to be done and the amount of payment or 35
56-contribution paid or payable on behalf of each such person to any 36
57-employee welfare fund, as defined in subsection (i) of section 31-53 of 37
58-the general statutes, shall be at a rate equal to the rate customary or 38
59-prevailing for the same work in the same trade or occupation in the town 39
60-in which such construction, remodeling, refinishing, refurbishing, 40
61-rehabilitation, alteration or repair project is being undertaken. Any 41
62-contractor who is not obligated by agreement to make payment or 42
63-contribution on behalf of such person to any such employee welfare 43
64-fund shall pay to each mechanic, laborer or worker as part of such 44
65-person's wages the amount of payment or contribution for such person's 45
66-classification on each pay day.". 46 Substitute Bill No. 137
40+(6) "Sewage company" has the same meaning as provided in section 14
41+16-1 of the general statutes; and 15
42+(7) "Water company" has the same meaning as provided in section 16-16
43+1 of the general statutes. 17
44+Sec. 2. (NEW) (Effective October 1, 2024) (a) Any contractor who has 18
45+entered into a contract for public utility project shall provide (1) 19
46+apprenticeship training through an apprenticeship program registered 20
47+with the Labor Department, or (2) a preapprenticeship training 21
48+program. For purposes of this section, "preapprenticeship program" 22
49+means a program approved pursuant to sections 31-22m to 31-22v, 23
50+inclusive, of the general statutes; 24
51+(b) A contractor shall certify, in a form and manner prescribed by the 25
52+Labor Commissioner, that such contractor currently (1) participates in 26
53+apprenticeship training through an apprenticeship program registered 27
54+with the Labor Department, or (2) participates in a preapprenticeship 28
55+program. Such contractor or subcontractor shall submit such 29
56+certification to the Labor Commissioner not later than thirty days after 30
57+entering into a contract for a public utility project. 31
58+(c) Any certification submitted pursuant to subsection (b) of this 32
59+section shall be considered a public document that shall be made 33
60+available without redaction on the Labor Department's Internet web site 34
61+not later than seven days after being submitted to the Labor 35
62+Commissioner. 36
63+Sec. 3. (NEW) (Effective October 1, 2024) (a) Any contractor that 37
64+intentionally submits a certification pursuant to subsection (b) of section 38
65+2 of this act that contains false, misleading or materially inaccurate 39
66+information shall be in violation of this section. 40
67+(b) Any contractor that violates the provisions of this section may be 41
68+assessed penalties and sanctions by the Labor Commissioner. 42
69+(c) The Labor Commissioner may refer for debarment any contractor 43
70+that violates the provisions of this section. Any contractor the 44 Raised Bill No. 137
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71-(b) If the Labor Commissioner, upon inspection or investigation of a 47
72-complaint, believes that a contractor or subcontractor has knowingly or 48
73-wilfully employed any mechanic, laborer or worker in the construction, 49
74-remodeling, refinishing, refurbishing, rehabilitation, alteration or repair 50
75-of any public utility project at a rate of wage on an hourly basis that is 51
76-less than the rate customary or prevailing for the same work in the same 52
77-trade or occupation in the town in which such public utility project is 53
78-being constructed, remodeled, refinished, refurbished, rehabilitated, 54
79-altered or repaired, or who has failed to pay the amount of payment or 55
80-contributions paid or payable on behalf of each such person to any 56
81-employee welfare fund, or in lieu thereof to the person, as provided in 57
82-subsection (a) of this section, such contractor or subcontractor shall be 58
83-issued a citation and may be fined five thousand dollars for each offense. 59
84-The commissioner shall maintain a list of any contractor or 60
85-subcontractor that, during the three preceding calendar years, violates 61
86-this section or enters into a settlement with the commissioner to resolve 62
87-any claim brought by the commissioner pursuant to this section. For 63
88-each contractor or subcontractor placed on such list, the commissioner 64
89-shall record the following information: (1) The nature of the violation; 65
90-(2) the total amount of wages and fringe benefits making up the 66
91-violation or agreed upon in any settlement with the commissioner; and 67
92-(3) the total amount of civil penalties and fines agreed upon by the 68
93-commissioner. The commissioner shall review the list on May first of 69
94-each year for the preceding rolling three-year period and may refer for 70
95-debarment any contractor or subcontractor that committed a violation 71
96-of this section during the rolling three-year period. The commissioner 72
97-shall refer for debarment any contractor or subcontractor that entered 73
98-into one or more settlement agreements with the commissioner where 74
99-the sum total of all settlements within such period exceeds fifty 75
100-thousand dollars in back wages or fringe benefits, or entered into one or 76
101-more settlement agreements with the commissioner where the sum total 77
102-of all settlements within such period exceeds fifty thousand dollars in 78
103-civil penalties or fines agreed upon by the commissioner. Any contractor 79
104-or subcontractor the commissioner refers for debarment may request a 80
105-hearing before the commissioner. Such hearing shall be conducted in 81 Substitute Bill No. 137
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110-accordance with the provisions of chapter 54 of the general statutes. In 82
111-addition, if it is found by the contracting officer representing the public 83
112-utility that any mechanic, laborer or worker employed by the contractor 84
113-or any subcontractor directly on the site for the work covered by the 85
114-contract has been or is being paid a rate of wages less than the rate of 86
115-wages required by the contract to be paid as required by this section, the 87
116-public utility may (A) by written or electronic notice to the contractor, 88
117-terminate such contractor's right to proceed with the work or such part 89
118-of the work as to which there has been a failure to pay said required 90
119-wages and to prosecute the work to completion by contract or 91
120-otherwise, and the contractor and the contractor's sureties shall be liable 92
121-to the public utility for any excess costs occasioned to public utility 93
122-thereby, or (B) withhold payment of money to the contractor or 94
123-subcontractor. The contracting officer of the public utility shall, not later 95
124-than two days after taking such action, notify the commissioner, in 96
125-writing or electronically, of the name of the contractor or subcontractor, 97
126-the project involved, the location of the work, the violations involved, 98
127-the date the contract was terminated and steps taken to collect the 99
128-required wages. 100
129-(c) The Labor Commissioner may make complaint to the proper 101
130-prosecuting authorities for the violation of any provision of subsection 102
131-(b) of this section. 103
132-(d) The Labor Commissioner shall predetermine the prevailing rate 104
133-and the amount of payment or contributions paid or payable on behalf 105
134-of each person to any employee welfare fund, as defined in subsection 106
135-(i) of section 31-53 of the general statutes, in each town where such 107
136-contract is to be performed, in the same manner as provided in 108
137-subsection (d) of section 31-53 of the general statutes. 109
138-(e) Any public utility that awards a contract for a public utility project 110
139-that requires the contractor to pay prevailing wages under this section 111
140-and where such costs associated with such public utility project are 112
141-determined by the Public Utility Regulatory Authority to be recoverable 113
142-under the provisions of sections 16-19 and 16-19e of the general statutes 114 Substitute Bill No. 137
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147-shall recover, in either base rates or an approved rate recovery 115
148-mechanism determined by the Public Utility Regulatory Authority, any 116
149-and all prudent and reasonably incurred costs for such prevailing 117
150-wages. 118
151-(f) The provisions of this section shall not apply where (1) the 119
152-combined total cost or total bond authorization for all work to be 120
153-performed by all contractors and subcontractors in connection with new 121
154-construction of any public utility project is less than one million dollars, 122
155-or (2) the combined total cost of all work to be performed by all 123
156-contractors and subcontractors in connection with any remodeling, 124
157-refinishing, refurbishing, rehabilitation, alteration or repair of any 125
158-public utility project is less than one hundred thousand dollars. 126
159-Sec. 3. Subsection (f) of section 31-53 of the 2024 supplement to the 127
160-general statutes is repealed and the following is substituted in lieu 128
161-thereof (Effective October 1, 2024): 129
162-(f) Each employer subject to the provisions of this section, section 31-130
163-53c, subsection (f) of section 31-53d, [or] section 31-54 or section 2 of this 131
164-act shall (1) keep, maintain and preserve such records relating to the 132
165-wages and hours worked by each person performing the work of any 133
166-mechanic, laborer and worker and a schedule of the occupation or work 134
167-classification at which each person performing the work of any 135
168-mechanic, laborer or worker on the project is employed during each 136
169-work day and week in such manner and form as the Labor 137
170-Commissioner establishes to assure the proper payments due to such 138
171-persons or employee welfare funds under this section, section 31-53c, 139
172-subsection (f) of section 31-53d, [or] section 31-54 or section 2 of this act, 140
173-regardless of any contractual relationship alleged to exist between the 141
174-contractor and such person, provided such employer shall have the 142
175-option of keeping, maintaining and preserving such records in an 143
176-electronic format, and (2) submit monthly to the contracting agency or 144
177-the Department of Economic and Community Development pursuant 145
178-to section 31-53c or to the developer of a covered project, as defined in 146
179-section 31-53d, or to the public utility, as defined in section 1 of this act, 147 Substitute Bill No. 137
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184-as applicable, by mail, electronic mail or other method accepted by such 148
185-agency, the Department of Economic and Community Development or 149
186-such developer or to such public utility, a certified payroll that shall 150
187-consist of a complete copy of such records accompanied by a statement 151
188-signed by the employer that indicates (A) such records are correct; (B) 152
189-the rate of wages paid to each person performing the work of any 153
190-mechanic, laborer or worker and the amount of payment or 154
191-contributions paid or payable on behalf of each such person to any 155
192-employee welfare fund, as defined in subsection (i) of this section, are 156
193-not less than the prevailing rate of wages and the amount of payment or 157
194-contributions paid or payable on behalf of each such person to any 158
195-employee welfare fund, as determined by the Labor Commissioner 159
196-pursuant to subsection (d) of this section, and not less than those 160
197-required by the contract to be paid; (C) the employer has complied with 161
198-the applicable provisions of this section, section 31-53c, subsection (f) of 162
199-section 31-53d, [and] section 31-54 and section 2 of this act; (D) each such 163
200-person is covered by a workers' compensation insurance policy for the 164
201-duration of such person's employment, which shall be demonstrated by 165
202-submitting to the contracting agency the name of the workers' 166
203-compensation insurance carrier covering each such person, the effective 167
204-and expiration dates of each policy and each policy number; (E) the 168
205-employer does not receive kickbacks, as defined in 41 USC 52, from any 169
206-employee or employee welfare fund; and (F) pursuant to the provisions 170
207-of section 53a-157a, the employer is aware that filing a certified payroll 171
208-which the employer knows to be false is a class D felony for which the 172
209-employer may be fined up to five thousand dollars, imprisoned for up 173
210-to five years, or both. This subsection shall not be construed to prohibit 174
211-a general contractor from relying on the certification of a lower tier 175
212-subcontractor, provided the general contractor shall not be exempted 176
213-from the provisions of section 53a-157a if the general contractor 177
214-knowingly relies upon a subcontractor's false certification. 178
215-Notwithstanding the provisions of section 1-210, the certified payroll 179
216-shall be considered a public record and every person shall have the right 180
217-to inspect and copy such records in accordance with the provisions of 181
218-section 1-212. The provisions of subsections (a) and (b) of section 31-59 182 Substitute Bill No. 137
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223-and sections 31-66 and 31-69 that are not inconsistent with the 183
224-provisions of this section, section 31-53c, [or] 31-54 or section 2 of this 184
225-act apply to this section. Failing to file a certified payroll pursuant to 185
226-subdivision (2) of this subsection is a class D felony for which the 186
227-employer may be fined up to five thousand dollars, imprisoned for up 187
228-to five years, or both. 188
75+commissioner refers for debarment may request a hearing before the 45
76+commissioner. Such hearing shall be conducted in accordance with the 46
77+provisions of chapter 54 of the general statutes. 47
78+(d) The Labor Commissioner shall adopt regulations, in accordance 48
79+with the provisions of chapter 54 of the general statutes, establishing the 49
80+penalties and sanctions applicable to a violation of this section. 50
81+Sec. 4. (NEW) (Effective October 1, 2024) (a) Each contractor who has 51
82+entered into a contract for a public utility project shall (1) pay each 52
83+construction employee on the project wages and benefits that are not 53
84+less than the prevailing wage and fringe benefit rates prescribed in 54
85+section 31-53 of the general statutes for the corresponding classification 55
86+in which the employee is employed, and (2) be subject to all reporting 56
87+and compliance requirements in accordance with section 31-53 of the 57
88+general statutes. 58
89+(b) Any contractor that violates this section shall be subject to 59
90+penalties and sanctions in accordance with section 31-53 of the general 60
91+statutes. 61
22992 This act shall take effect as follows and shall amend the following
23093 sections:
23194
23295 Section 1 October 1, 2024 New section
23396 Sec. 2 October 1, 2024 New section
234-Sec. 3 October 1, 2024 31-53(f)
97+Sec. 3 October 1, 2024 New section
98+Sec. 4 October 1, 2024 New section
23599
236-Statement of Legislative Commissioners:
237-Section 1 was rewritten for clarity and consistency; in Section 2(b),
238-"contracting department" was changed to "contracting officer" for
239-consistency with other provisions of the Subsec., and in Section 2(f),
240-Subparas. (A) and (B) were changed to Subdivs. (1) and (2) for
241-consistency with standard drafting conventions.
242-
243-LAB Joint Favorable Subst.
100+Statement of Purpose:
101+To require any contractor that enters into a contract for a public utility
102+project to offer apprenticeship or preapprenticeship training programs
103+and pay prevailing wage rates.
104+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
105+that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
106+underlined.]
244107