SB 374 — AN ACT CONCERNING EQUALIZING RATES OF PAY FOR NONPROFIT PROVIDER WORKERS.

Senate General Assembly RaisedFile Bill No.

374549 February Session, 2024 LCOSenate Bill No.

2251374 ReferredSenate, toApril 18, 2024 The Committee on APPROPRIATIONSAppropriations Introducedreported by:through SEN.

(APP)OSTEN ANof ACTthe CONCERNING19th EQUALIZINGDist., RATESChairperson OFof PAYthe FORCommittee NONPROFITon PROVIDERthe WORKERS.part of the Senate, that the bill ought to pass.

AN ACT CONCERNING EQUALIZING RATES OF PAY FOR NONPROFIT PROVIDER WORKERS.

ThisSB374 act/ shallFile takeNo. effect as follows and shall amend the following sections:

Section549 1 fromSB374 passageFile New section LCO 2251 1 of 2 Bill No.

374549 APPThis Jointact Favorableshall LCOtake 2251effect 2as offollows 2and shall amend the following sections:

Section 1 from passage New section APP Joint Favorable SB374 / File No.

549 2 SB374 File No.

549 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 25 $ FY 26 $ Mental Health & Addiction GF - Cost See Below See Below Serv., Dept.

Note:

GF=General Fund Municipal Impact:

None Explanation The bill is anticipated to result in a cost to the Department of Mental Health and Addiction Services (DMHAS) associated with requiring private providers contracting with DMHAS to pay employees at the same rate paid to their employees providing DDS contracted services.

Thisisestimated to impact contractswith14providerswithatotalvalue of $31.1 million.

Assuming 90% of the contracts support the provision of direct care services, a 5% increase would cost approximately $1.4 million.

The actual cost is dependent on the difference between applicable direct care wages supported by DMHAS and DDS for these providers.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to direct care personnel costs for DDS contracted services.

SB374 / File No.

549 3 SB374 File No.

549 OFA Bill Analysis SB 374 AN ACT CONCERNING EQUALIZING RATES OF PAY FOR NONPROFIT PROVIDER WORKERS.

SUMMARY:

The bill establishes wage requirements for certain nonprofit, private providers contracting with the Department of Mental Health and Addiction Services (DMHAS).

On and after 7/1/24, these providers must pay employees providing direct health or human services the same rate paid to their employees of a similar classification providing such services under a purchase of service contract with the Department of Developmental Services (DDS).

EFFECTIVE DATE:

Upon passage COMMITTEE ACTION Appropriations Committee Joint Favorable Yea 49 Nay 2 (04/04/2024) SB374 / File No.

549 4