PA 10-179—SB 494

Emergency Certification


SUMMARY: This act modifies FY 11 appropriations and revenue estimates adopted in the 2009 biennial budget act and subsequent acts to mitigate projected deficits in FY 10 and FY 11.

It authorizes the state to issue revenue bonds, to be repaid in eight years, backed by two charges on electric company bills to provide $956 million to the General Fund. It also requires electric companies to collect an additional per-kilowatt-hour assessment on each customer between January 1, 2011 and June 30, 2011 to raise $40 million for the General Fund.

The act:

1. transfers money between line item appropriations for FY 10 within the General and Special Transportation funds ( 1-12),

2. carries forward FY 10 appropriations to FY 11 instead of allowing them to lapse ( 14, 19, 33, & 51-55),

3. transfers money from special funds and accounts to the General Fund as FY 11 revenue and directs the Office of Policy and Management (OPM) secretary to identify a further $5 million in nonappropriated General Fund accounts available for transfer to unrestricted General Fund revenue for FY 11 ( 39),

4. reduces the required FY 11 transfer from the General Fund to the Special Transportation Fund by $16. 5 million ( 44),

5. transfers up to $140 million of the unappropriated FY 10 General Fund surplus to FY 11 as revenue ( 45), and

6. transfers an additional $8 million to the General Fund from the Connecticut State University (CSU) Operating Reserve Fund ( 43).

The act makes many changes in human services programs, including:

1. converting the Department of Social Services' (DSS) medical assistance programs from a managed care organization (MCO) to an administrative service organization (ASO) model ( 20, 22, 46, 47, 61-70, & 72-78);

2. increasing monthly premiums for HUSKY B health coverage ( 22);

3. reducing certain copayments for the Connecticut Home Care Program for Elders (CHCPE) ( 21);

4. increasing the fee DSS pays to pharmacies for dispensing medicines to beneficiaries of its medical assistance programs ( 23);

5. postponing establishment of a separate Department on Aging for one year ( 24);

6. establishing a program to help homeless youths and youths at-risk of becoming homeless ( 28-30);

7. excluding payments received under the federal health reform law from being counted in determining eligibility for need-based state or state-funded local programs ( 36); and

8. eliminating the HUSKY Plus Program, which provides supplemental health coverage for low-income children with intensive health needs ( 61, 63, & 160). (HUSKY Plus was subsequently reinstated by PA 10-1, June Special Session. )

The act also:

1. restricts the governor's unilateral authority to reduce appropriations for legislative and judicial branch agencies and requires her to include the Judicial Branch's expenditure estimates in her recommended budgets without change ( 31-32),

2. provides supplemental special education grants to most school districts for FY 10 and FY 11 ( 27),

3. establishes a program to guarantee low-interest loans for energy conservation projects ( 135-137),

4. blocks any FY 11 funding for the State Contracting Standards Board ( 148),

5. revamps the certificate of need (CON) process for health care facilities ( 83-124 & 161),

6. eliminates the correctional ombudsman ( 158), and

7. expands an annual report from the Judicial Selection Commission to include demographic and other data on judicial candidates the commission screens ( 149).

Finally, the act makes substantive and technical changes in 2010 acts, including the FY 10 deficit mitigation act (PA 10-3), the bond act (PA 10-44), and the UConn Health Network initiatives act (PA 10-104).

EFFECTIVE DATE: Various, see below.


The act modifies FY 11 appropriations for state agency operations and programs in eight of the state's 10 appropriated funds as shown in Table 1.

Table 1: Adjustments to FY 11 Appropriations, by Fund


FY 11 Net Appropriation

Prior Law

The Act




General Fund





Special Transportation Fund





Soldiers', Sailors' and Marines' Fund





Regional Market Operation Fund





Banking Fund





Insurance Fund





Consumer Counsel and Public Utility Control Fund





Workers' Compensation Fund




EFFECTIVE DATE: July 1, 2010


The act transfers a total of $75,184,730 in amounts appropriated for FY 10 within the General Fund as shown in Table 2.

Table 2: General Fund Transfers for FY 10









Debt Service –State Treasurer

Debt Service


Office of the Victim Advocate

Personal services


UConn 2000 Debt Service


Department of Social Services



CT Health and Education Facilities Authority Day Care Security


Department of Education

Magnet Schools


State Comptroller – Fringe Benefits

State Employees Retirement Contribution


Workers' Compensation Claims – Department of Administrative Services

Workers' Compensation Claims


Employers Social Security Tax








The act also transfers $2 million within the Special Transportation Fund for FY 10 from the state treasurer's appropriation for debt service ( 10) to the Department of Administrative Services' (DAS) appropriation for workers' compensation claims ( 12).

EFFECTIVE DATE: Upon passage


The act transfers $23 million from various special funds and accounts to General Fund revenue for FY 11 as shown in Table 3.

Table 3: Transfers to the General Fund for FY 11



Citizen's Election Fund (on or after January 1, 2011)


Workers' Compensation Fund


Banking Fund


Community Investment Account


EFFECTIVE DATE: July 1, 2010

14, 19, 33 & 51-55 — FUNDS CARRIED FORWARD

Rather than lapsing at the end of FY 10, the act carries forward to FY 11 various unspent balances appropriated for, or previously carried forward to, FY 10 (see Table 4).

Table 4: Funds Carried Forward to FY 11


FY 10 Purpose

FY 11 Purpose



Economic and Community Development

Home CT - grants to towns that choose to zone land for developing housing mainly where transit facilities, infrastructure, and complementary uses already exist or have been planned or proposed  


Unspent balance


Legislative Management



Unspent balance



Designing and implementing a comprehensive, statewide information technology system for sharing criminal justice information

Costs related to the Criminal Justice Information System Governing Board


Unspent balance



Other Expenses to prevent potential base closures


Up to $178,828

52 (a)


Property tax relief for veterans

Litigation/settlement account

Up to $183,228

52 (b)


Reimbursement for property tax – disability exemption

Litigation/settlement account

Up to $39,298

52 (c)


Distressed municipalities

Litigation/settlement account

Up to $534,708

52 (d)


Property tax relief – elderly freeze program

Litigation/settlement account

Up to $75,503



Other Expenses

Litigation costs associated with Connecticut Coalition for Justice in Education Funding v. Rell lawsuit

Up to $500,000



Other Expenses

Costs associated with meeting data assurances required for receipt of State Fiscal Stabilization funding

Up to $1,500,000



Other Expenses

Upgrading software

Up to $100,000

EFFECTIVE DATE: July 1, 2010, except for the Banking Department carryforward ( 55), which takes effect on passage.


The act requires the governor to appoint a third chairperson to the Medical Inefficiency Committee, which advises DSS on the amended definition of medical necessity enacted in PA 10-3. By law, the House speaker and Senate president pro tempore appoint the other two chairpersons.

EFFECTIVE DATE: Upon passage


The act makes changes in the Department of Higher Education's (DHE) Kirklyn M. Kerr program established by PA 10-3 ( 33). DHE administers the program, which allows Connecticut residents to attend Iowa State University's College of Veterinary Medicine and pay in-state Iowa tuition. Each year, DHE determines the number of program participants and Iowa State reserved a certain number of seats specifically for Connecticut residents.

This act specifies that the program will provide “support” instead of grants to Connecticut residents who are enrolled in an accredited veterinary graduate school and plan to practice veterinary medicine. It requires students to make a written commitment to either work as veterinarians in Connecticut for five years following graduation or repay any support received. It eliminates a recipient's ability to delay repayment of the award if he or she pursues additional veterinary training outside Connecticut.

PA 10-3 requires a student who does not practice veterinary medicine in the state for at least five years to repay a fixed percentage of his or her award based on the number of years he or she practices in Connecticut. This act instead requires recipients to repay at least 20% of their awards for every year they fall short of the five-year commitment, and it requires the DHE commissioner to determine the manner of repayment. It also removes provisions concerning (1) the deadline for repayment, (2) minimum monthly repayment, and (3) the commissioner's ability to grant deferments or forgive repayments.

EFFECTIVE DATE: Upon passage


PA 10-3 ( 24) limits what providers enrolled in any DSS-administered medical assistance program can bill the department for goods and services to the lowest amount they routinely accept from any individual, class, group, or entity for similar services or goods.

The act instead limits what pharmacy providers, instead of all enrolled providers, may bill DSS. It ties this limit to the lowest amount accepted, rather than routinely accepted, from any member of the general public who participates in the pharmacy's “savings or discount program. ” The act defines this as any program, club, or buying group that the pharmacy offers to any member of the general public in which that person pays less for goods and services than nonparticipants.

EFFECTIVE DATE: Upon passage


The act reduces special, higher state per-student operating grants for two interdistrict magnet schools.

By law, most magnet schools run by regional educational service centers (RESCs) that (1) do not help implement the Sheff v. O'Neill desegregation settlement and (2) enroll 55% or more of their students from a single town receive a state grant of $3,000 annually for each student from that town. However, two such schools receive more. One began operations in the 1998-99 school year and, for the 2008-09 school year, enrolled between 55% and 70% of its students from a single town, a description that applies only to the Wintergreen Interdistrict Magnet School in Hamden. The other began operations in the 2001-02 school year, and for the 2008-09 school year, enrolled between 55% and 80% of its students from a single town, a description that applies only to the Thomas Edison Magnet Middle School in Meriden.

For FY 11, this act reduces (1) Wintergreen's grant for each student from a district enrolling between 55% and 70% of the school's students (Hamden) from $4,894 to $4,263 and (2) Edison's grant for each student from a district enrolling between 55% and 80% of the school's students (Meriden) from $4,250 to $3,833.

Under the act, starting in FY 12, the school must receive the same $3,000 grant for each Hamden or Meriden student as other non-Sheff RESC magnets receive for student from towns that make up 55% or more of their enrollments.

EFFECTIVE DATE: Upon passage


The act authorizes DSS to contract with one or more ASOs to provide a variety of nonmedical services for Medicaid, HUSKY A and B, and Charter Oak Health Plan enrollees. It removes references to managed care plans serving recipients of these programs and makes numerous technical and conforming changes.

The ASO contract must cover care coordination, utilization and disease management, customer service, and grievance review. It may cover network management, provider credentialing, copayment and premium monitoring, and other services the commissioner requires. Subject to approval by the federal Centers for Medicare and Medicaid Services, the act requires DSS to use the ASO's provider network and billing systems in administering the covered medical assistance programs.

DSS previously contracted with managed care organizations (MCOs) to perform most of these services, which they did as part of a risk-sharing capitation payment that covered medical services. ASOs perform the services for a set fee and do not share any risk for the provision of medical services.

The act changes the name of the Medicaid Managed Care Council to the Medicaid Care Management Oversight Council to reflect the act's conversion of DSS' managed care program from the MCO model to an ASO model.

The act also makes (1) conforming changes and (2) technical changes, including those that reflect the council's role in overseeing other DSS medical assistance programs, not just Medicaid.

EFFECTIVE DATE: July 1, 2010

21 — CHCPE

The act reduces, from 15% of the cost of care to 6%, the co-payment required from certain participants in the state-funded portion of CHCPE established in PA 09-5, September Special Session. Participants with incomes over 200% of the federal poverty level (FPL) must still pay an amount of applied income DSS determines, plus their 6% co-payment. By law, CHCPE participants who live in state-subsidized assisted living demonstration projects are exempt from the cost-sharing requirements.

EFFECTIVE DATE: July 1, 2010


The act increases the monthly premiums that families pay for children enrolled in the HUSKY B program, Band 2 (income between 235% and 300% of the FPL). For one child, the premium rises from $30 to $38. The family maximum premium (regardless of the number of children) rises from $50 to $60.

EFFECTIVE DATE: July 1, 2010


The act increases, from $2. 65 to $2. 90, the fee DSS pays pharmacies for each drug they dispense to a beneficiary of any DSS' medical assistance program.

EFFECTIVE DATE: Upon passage


The act postpones the establishment of the Department on Aging for one year, until July 1, 2011. It requires DSS to administer aging programs until an aging commissioner is appointed and administrative staff are hired. It permits the governor, with Finance Advisory Committee approval, to transfer funds between DSS and the Aging Department in FY 12. It also specifies that any DSS or Commission on Aging order or regulation in effect on July 1, 2011 will remain so until amended, repealed, or superseded by law.

EFFECTIVE DATE: July 1, 2010


The law allows automobile clubs and associations to perform license renewals at their office locations and charge a convenience fee of up to $2 for each transaction. The act allows them to also renew identity cards for non-drivers, conduct registration transactions, and charge a maximum $2 convenience fee for these transactions.

EFFECTIVE DATE: July 1, 2010


Prior law required motorists to display on their rear number plates or elsewhere on their vehicles a sticker noting the date their vehicle registration expires. The act leaves issuance of these stickers and their placement on the vehicle to the motor vehicle commissioner's discretion. It requires motorists to place the sticker where the commissioner directs.

EFFECTIVE DATE: Upon passage


The act allocates additional funds for FY 10 and FY 11 to supplement a state grant that reimburses school districts for certain costs of special education and related services. The supplemental grant provides additional reimbursement for costs that exceed (1) for children placed by state agencies, the district's average per-pupil educational cost for the previous school year and (2) for locally placed children, 4. 5 times that average. The act provides the supplemental grants to most schools districts and lists the specific additional grant each must receive.

EFFECTIVE DATE: July 1, 2010 (PA 10-1, June Special Session, changes this effective date to upon passage. )


The act requires (1) the Department of Children and Families (DCF), within available appropriations, to establish a program for youths who are, or are at risk of becoming, homeless. The program may include some or all of the following: (1) public outreach, (2) respite housing, and (3) transitional living services. DCF can contract with nonprofit organizations or towns to implement the program.

Homeless Youth

Under the act, a homeless youth is a person under age 21 without shelter where appropriate care and supervision are available and who lacks a fixed, regular, and adequate nighttime residence, including any youth under age 18 whose parent or legal guardian is unable or unwilling to provide shelter and appropriate care.

Fixed, Regular, and Adequate Nighttime Residence

The act defines “fixed, regular, and adequate nighttime residence” as a dwelling that adequately provides safe shelter and where a person resides on a regular basis. It excludes (a) a publicly or privately operated institutional shelter designed to provide temporary living accommodations; (2) transitional housing; (3) temporary lodging with a peer, friend, or family member who has not offered a permanent residence, residential lease, or temporary housing for more than 30 days; or (4) a public or private place not designed for or ordinarily used as a regular sleeping place by human beings.

Public Outreach

Under the act, a public outreach and drop-in component can be one that provides youth drop-in centers with walk-in access to crisis intervention and ongoing support services. Services include one-to-one case management on a self-referral basis and public outreach that locates, contacts, and provides information, referrals, and services to homeless youth and youth at risk of homelessness. This component may include information, referrals, and services for:

1. family reunification, conflict resolution, or mediation counseling;

2. respite housing;

3. case management aimed at obtaining food, clothing, and medical care or mental health counseling;

4. counseling regarding violence, prostitution, substance abuse, sexually transmitted diseases, HIV, and pregnancy and referrals to agencies for support services;

5. education, employment, and independent living skills;

6. specialized services for highly vulnerable homeless youth, including teen parents and those who have been sexually exploited or have mental illness or developmental disabilities; and

7. aftercare services, which are continued counseling, guidance, or support for up to six months following receipt of services.

Respite Care

If the program includes a respite component, it must provide homeless youths with referrals and walk-in access to short-term residential care on an emergency basis. This includes voluntary housing with private shower facilities, beds, and at least one meal a day. It also includes assistance with family reunification or a legal guardian when required or appropriate. Services provided at respite homes may include:

1. family reunification services or referral to safe housing;

2. individual, family, and group counseling;

3. assistance in obtaining clothing;

4. access to medical and dental care and mental health counseling;

5. access to education and employment services;

6. recreational activities;

7. case management, advocacy, and referrals;

8. independent living skills training and aftercare services; and

9. transportation.

Transitional Living

If the program offers transitional living, it must provide services that help homeless youth find and maintain safe housing, including rental assistance and related support services. It must include (1) help for homeless youth (but not those at risk of becoming homeless) in finding and keeping safe housing and (2) rental assistance and related supportive services.

It may include:

1. educational assessments and referrals to educational programs;

2. career planning, employment, job skills training, and independent living skills training;

3. job placement;

4. budgeting and money management training;

5. assistance in securing housing appropriate to the youth's needs and income;

6. counseling regarding violence, prostitution, substance abuse, sexually transmitted diseases, and pregnancy;

7. referrals for medical services or chemical dependency treatment;

8. parenting skills, self-sufficiency support services, or life skills training; and

9. aftercare services.

Parental Consent

Public or private agencies serving children and youth may provide services to a homeless child or youth and must make all reasonable efforts to contact the parent or guardian for permission. They must refuse or curtail services if the parent or guardian does not give or withdraws consent. Agencies that act in good faith without negligence are immune from civil or criminal liability.

Annual Reports

Under the act, DCF must submit annual reports to the Children's Committee beginning February 1, 2012. Reports must include recommendations for any needed changes to the program to ensure that eligible youths are getting the best available services. They must also include key outcome indicators and measures and set benchmarks for evaluating progress in accomplishing the act's purposes.

EFFECTIVE DATE: October 1, 2010


Budget Acts with Statewide Unallocated Lapses and Initial Appropriation Allotments for the Legislative and Judicial Branches

The act requires each state budget act making appropriations for the biennium or making changes to a previously adopted biennial budget that includes statewide budget reductions not allocated by budgeted agency to specify the amount to be achieved in each branch of government. Beginning with FY 11, it also requires that the initial allotment requisition for each line item appropriation to the legislative and judicial branches for a fiscal year be based on the amount appropriated to the line item for the fiscal year minus any budgeted reductions the branch must achieve in that year.

Governor's Authority Over Legislative and Judicial Allotments

The law allows the governor to reduce allotment requisitions or allotments in force up to certain amounts under certain circumstances (see BACKGROUND).

Under prior law, the governor could not reduce allotments for any budgeted agencies of the Legislative or Judicial branches but she could require an aggregate allotment reduction of a specified amount and the Legislative Management Committee or chief court administrator, as appropriate, had to achieve the reductions and submit them to the governor through the OPM secretary within 15 days.

The act instead allows the governor to propose rather than require such reductions under a new procedure. It:

1. requires the OPM secretary, within five days of the effective date of a proposed reduction, to give notice of the amount, effective date, and reasons for reductions to the (a) Senate president pro tempore and House Speaker, for changes affecting the Legislative Branch, and (b) chief justice, for changes affecting the Judicial Branch;

2. within three days of receiving notice, allows any of the notified officials to object to the reduction by providing written notice to the OPM secretary and Appropriations Committee chairpersons and ranking members;

3. allows the Appropriations Committee to hold a public hearing on the reductions;

4. makes the reductions effective unless the committee rejects them by a two-thirds vote within 15 days of receiving the objection notice;

5. if the committee rejects the reductions, requires the OPM secretary to present an alternative plan to achieve the reductions to the appropriate branch officials; and

6. if the reductions are not rejected, requires the Legislative Management Committee or chief justice, as appropriate, to achieve the reductions in a manner they determine and submit them to the governor through the OPM secretary within 10 days after the reductions take effect.

EFFECTIVE DATE: July 1, 2010


By law, the DCF and education commissioners have jointly developed a single cost accounting system. The system may form the basis for paying reasonable expenses for room, board, and education by purchase-of-service agreements with private DCF-licensed residential treatment centers. This act specifies that this system cannot be used unless the center provides on-campus educational services.

The act also permits the DCF commissioner to establish a performance-based system for DCF-licensed child-care facilities that serve children in DCF's custody. The child-care facility must reinvest payments made under this system and use them to enhance the facility's programs and give direct care staff raises. The act specifies the payments are not considered part of the facilities' income for purposes of establishing payments under the single cost accounting system described above.

EFFECTIVE DATE: Upon passage


The act requires up to $450,000 of DSS' FY 11 appropriation for Housing and Homeless Services to be made available to provide 50 Rental Assistance Program certificates. The certificates are for individuals and families who frequently use expensive state services.

The DSS commissioner must coordinate this expenditure with the mental health and addiction services and correction commissioners, the executive director of the Judicial Branch's Support Services Division, and a representative of the Supportive Housing Initiative.

EFFECTIVE DATE: July 1, 2010


The act excludes any payment under the Patient Protection and Affordable Care Act (P. L. 111-148) from being counted as income for anyone applying for or receiving need-based benefits or services from any state or state-funded local program. Also, the payment cannot be counted as an asset for the month in which it is received and the following two months when determining eligibility or the amount of benefits or services.

The act also provides that such payments may not be counted as income for determining eligibility for, or benefit levels of, individuals under any state-funded (1) property tax exemption or credit or rental rebate program financed either partially or entirely with state funds or (2) property tax relief program that a municipality, at its option, offers.

EFFECTIVE DATE: Upon passage


PA 09-5, September Special Session, froze the FY 10 and FY 11 rates the state pays private residential facilities at their FY 09 level. The act permits a higher rate for facilities that made or will make capital improvements in FY 10 or FY 11 because the Department of Developmental Services requires them to do so for residents' health or safety.

EFFECTIVE DATE: July 1, 2010


The act provides a mechanism for the comptroller to fund the administration of an FSA program for state employees. By law, the comptroller must maintain such a program for state employees (see BACKGROUND). The act permits the comptroller to pay for the administrative costs associated with this program by transferring actual or projected savings from the state's Social Security (withholding) tax account to a restrictive grant fund account. The annual amount transferred for administrative costs cannot exceed $250,000.

The act also authorizes the comptroller to transfer from the Social Security tax account an amount equal to an employee's yearly contribution to the restrictive grant fund account as long as this amount is paid back to the tax account from the restrictive grant fund account not later than 18 months after such transfer.

When salary is put aside in an FSA program, the employer and the employee do not have to pay their respective shares of federal FICA (Social Security and Medicare) taxes on that amount. This tax avoidance can generate savings.

The act requires the comptroller to report annually, beginning March 30, 2012, on the status of the FSA program to the Appropriations Committee and the OPM secretary. Each such report must include:

1. the number of employees enrolled,

2. the program's administrative costs,

3. the amount of forfeitures in the program, and

4. how the permitted transfers affect the Social Security tax account.

EFFECTIVE DATE: July 1, 2010


The act requires the OPM secretary to identify $5 million in nonappropriated General Fund accounts available for transfer into the unrestricted General Fund for FY 11. The secretary must submit a list of these funds to the House speaker and the Senate president pro tempore, who, within five days after receiving it, must submit the list to the Appropriations Committee. The committee has 30 days to advise the OPM secretary of its approval or disapproval of the recommended transfers. If the committee fails to act within 30 days, the recommended transfers are considered approved. Upon approval, the OPM secretary and comptroller must transfer the funds.

EFFECTIVE DATE: July 1, 2010


The act specifies that statutory references to “certified mail, return receipt requested,” cover all methods of receiving the return receipt, including mail, electronic, digital, and those identified by the U. S. Postal Service's Mailing Standards found in Chapter 500 of the Domestic Mail Manual or its successor.

It requires the Legislative Commissioners' Office to make any necessary grammatical or other changes during the statute codification process to carry out the purpose of this provision.

EFFECTIVE DATE: Upon passage


The act requires the state auditors to conduct an annual audit of reimbursements made from the Bradley Enterprise Fund to the Department of Public Safety (DPS) to cover Troop W operations under the memorandum of understanding between DPS and the Department of Transportation (DOT). PA 09-7, September Special Session, required the departments to enter into the memorandum, by December 1, 2009, to use the fund to pay all associated costs incurred by the State Police to provide security at Bradley Airport. The troop is stationed at the airport.

EFFECTIVE DATE: July 1, 2010


The act establishes a 15-member task force to study converting legislative documents from paper to electronic form (PA 10-1, June Special Session, increases the membership to 17). The task force must:

1. examine the feasibility and available means of producing electronically, rather than in paper form, documents that the General Assembly produces and uses, including bills, amendments, and calendars;

2. consider the cost of electronic production and the need to make the documents easily available to legislators, their staff, state libraries, and the public (PA 10-1, June Special Session, requires the task force also to consider the need to protect the authenticity of, and preserve, the documents);

3. report its findings and recommendations to the Legislative Management Committee by December 1, 2010; and

4. terminate on the date it submits the report or January 1, 2011, whichever is later.

The task force consists of the following people or their designees:

1. the House and Senate clerks,

2. the state librarian,

3. Legislative Management Committee chairpersons, and

4. the legislative Office of Information Technology Services director.

The other members are:

1. four members of the Association of Connecticut Lobbyists, one appointed by the majority leader of each legislative caucus (PA 10-1, June Special Session, reduces this number to one, appointed by the Senate majority leader);

2. the three supervising committee administrators (PA 10-1, June Special Session, changes this to two staff people appointed by the Legislative Management Committee chairpersons); and

3. up to two agency liaisons appointed by the OPM secretary.

(PA 10-1, June Special Session adds a public member appointed by the House majority leader, and the following people or their designees: (1) the Senate and House minority leaders, (2) the Legislative Commissioners' Office director, (3) the secretary of the state, and (4) the Freedom of Information Commission executive director. )

Caucus leaders must make their appointments by June 1, 2010 (PA 10-1, June Special Session, extends this deadline to July 15, 2010) and fill any subsequent vacancy among those appointments. The Legislative Management chairpersons or their designees must chair the task force and schedule its first meeting by July 1, 2010. (PA 10-1, June Special Session, changes these provisions to (1) require the Legislative Management Committee chairpersons to select the task force chairpersons from among the committee's members and (2) extend the deadline for the first meeting to August 15, 2010. )

The Legislative Management Committee staff serves as the task force staff.

EFFECTIVE DATE: Upon passage


The act increases the required transfer from the CSU operating reserve account to the General Fund for FY 11 by $8 million, from $2 million to $10 million.

EFFECTIVE DATE: July 1, 2010


For FY 11, the act reduces the required revenue transfer from the General Fund to the Special Transportation Fund by $16. 5 million, from $124. 05 million to $107. 55 million.

EFFECTIVE DATE: Upon passage


The act requires the comptroller to transfer up to $140 million of the FY 10 General Fund unappropriated surplus to General Fund revenue for FY 11.

EFFECTIVE DATE: July 1, 2010


The act changes the name of the Medicaid Managed Care Council, which oversees the HUSKY program and the Charter Oak Health Plan, to the Council on Medicaid Care Management Oversight.

It also makes technical and conforming changes.

EFFECTIVE DATE: Upon passage for the name change and July 1, 2010 for the technical and conforming changes.


PA 10-3 eliminates coverage for most OTC drugs in DSS' medical assistance programs, effective May 1, 2010. This act delays the implementation until June 1, 2010. It also allows coverage for OTC drugs in the Connecticut AIDS Drug Assistance Program.

EFFECTIVE DATE: Upon passage


PA 10-3 limits payment for eyeglasses in DSS medical assistance programs to one pair per year. This act applies the limit only to the Medicaid program. (DSS runs the HUSKY A (Medicaid for families), HUSKY B, State-Administered General Assistance, Charter Oak, and legal immigrant medical assistance programs. )

PA 10-3 requires DSS to use its best efforts to reduce costs for optical devices and services under its medical assistance programs. The act instead requires the department to administer the payment for eyeglasses and contact lenses as cost-effectively as possible.

EFFECTIVE DATE: Upon passage


For FY 10 and FY 11, the act permits DSS to establish a receivable account for the anticipated cost of implementing modifications to the Health Insurance Portability and Accountability Act electronic transaction standards. This must be done in compliance with an advanced planning document that the U. S. Department of Health and Human Services approves.

EFFECTIVE DATE: Upon passage


The act requires the OPM secretary, rather than the administrative services commissioner, in consultation with the state comptroller, to submit a required report on the savings the state realized from the 2009 retirement incentive program (RIP). By law, the report, which is due by June 15, 2011, must include the number of participants (union and nonunion), the savings achieved by each agency, and how the savings are offset by refilling positions vacated through the RIP. The law also required such a report by October 15, 2009.

EFFECTIVE DATE: Upon passage


The act allocates all boating registration fee revenue received between November 1 and October 31, which prior law divided between the boating account and municipalities, first to the Environmental Protection (DEP) and Motor Vehicle (DMV) departments for expenses incurred in administering the boating laws. It requires all remaining revenue to be distributed to towns as prorated payments according to their shares of property taxes paid on vessels according to the October 1, 1978 assessment list. DEP and DMV fringe benefit costs associated with administering the account must be paid from funds appropriated to the comptroller for that purpose.

Prior law first distributed revenue to municipalities, requiring (1) the towns to receive amounts according to their share of property taxes paid on vessels according to the October 1, 1978 assessment list in each town, and (2) that, if annual revenue was insufficient to pay the towns in full, the remainder be taken from unallocated boating account funds. The remaining revenue funded the DMV and DEP commissioners' expenses in administering and enforcing boating safety and water pollution laws and regulations.

EFFECTIVE DATE: July 1, 2011


The act allows the education commissioner to provide supplemental transportation grants for FY 10 to the Hartford school district and the Capitol Region Education Council (CREC) to transport students who live outside Hartford to interdistrict magnet schools they operate. The OPM secretary must approve the new grants. The supplemental grants are in addition to any other interdistrict magnet school transportation grants CREC and the Hartford school district may receive.

EFFECTIVE DATE: Upon passage


By law, ConnPACE applications are accepted only from November 15 through December 30. The act changes the deadline to December 31.

EFFECTIVE DATE: Upon passage


The act permits DSS to implement policies and procedures necessary to administer its provisions (presumably those pertaining to DSS) while in the process of adopting them in regulation. The DSS commissioner must print a notice of intent to adopt the regulations in the Connecticut Law Journal within 20 days of implementing the provisions. The policies and procedures are valid until final regulations are adopted. (PA 10-2, June Special Session, limits the applicability of this authorization to policies and procedures related to limits on eyeglass coverage in the Medicaid program. )

EFFECTIVE DATE: July 1, 2010


The act eliminates the HUSKY Plus program, which provides supplemental health care coverage for children eligible for HUSKY B who have intensive physical or mental health needs. In practice, children who have intensive behavioral health needs have been served by the Connecticut Behavioral Health Partnership and DSS pays the providers directly for services provided. Children with intensive physical health care needs are served by the Connecticut Children's Medical Center. DSS contracts with the hospital and pays for the services it provides to these children. (PA 10-1, June Special Session, restores the program. )

EFFECTIVE DATE: July 1, 2010


Beginning July 1, 2010, the act transfers authority to select the Partnership Council's chairpersons from the Medicaid Managed Care Council's chairpersons to the Partnership Council's members. The act (1) eliminates Medicaid MCOs (nonvoting) representation on the Partnership Council and (2) adds a representative of each ASO as a nonvoting member, reflecting the elimination of MCOs in DSS' medical assistance programs. It eliminates a member overseeing Medicaid care management from the council, thus reducing the number of appointments the Senate minority leader makes from two to one. (PA 10-1, June Special Session, reverses this change. ) The act also eliminates, as an ex-officio, nonvoting member, a representative of the Office of Health Care Access, which was placed within DPH as a division in 2009.

EFFECTIVE DATE: July 1, 2010


The act eliminates a requirement that DSS report every two years to the re-named Medicaid Managed Care Council on its compliance with administrative processing requirements related to Medicaid presumptive eligibility for pregnant women.

EFFECTIVE DATE: July 1, 2010


The act eliminates (1) the disqualification penalty for Temporary Family Assistance (TFA) applicants who do not cooperate with DSS' biometric “digital imaging” program, (2) DSS' authority to extend its contract with a biometrics company, and (3) obsolete related provisions.

It also specifies that any biometrics system that DSS uses be for programs that the DSS commissioner determines, rather than for TFA and other programs the commissioner determines. At present, DSS does not subject program applicants to biometrics requirements.

EFFECTIVE DATE: Upon passage


The act changes bond authorizations for the UConn health network initiatives described in PA 10-104. It reserves $5 million for a simulation and conference center at Hartford Hospital and specifies that the center will be run exclusively by Hartford Hospital. It also reserves $5 million for a primary care institute at Saint Francis Hospital and Medical Center and a total of $10 million for (1) an institute for clinical and translational science at the UConn Health Center, (2) a comprehensive cancer center, and (3) a UConn-sponsored health disparities institute.

PA 10-104 authorized a total of $20 million for these five initiatives but did not specify the amount for each project. Under PA 10-104, unchanged by this act, the bonds cannot be issued unless $100 million in federal, private, or other nonstate money is received by June 30, 2015.

EFFECTIVE DATE: Upon passage

82, 140-144, & 156-157 — BONDING CHANGES

The act makes several changes and additions to bond authorizations and cancellations in PA 10-44.

82 —Department of Public Health (DPH) Grants

The act reserves $3 million of a $6 million bond authorization to (1) DPH for grants for hospital-based emergency service facilities and (2) community health centers and primary care organizations for equipment purchases and facility improvement and expansion, including land or building acquisition, for enhancements to the accessibility and efficiency of health care services in Hartford.

It bars the bond commission from allocating the funds until (1) the contribution of $100 million in federal, private, or other nonstate money required by PA 10-104 is available and (2) the commission has allocated the bonds authorized in that act for UConn health center initiatives.

The act divides the $3 million reserved amount as follows:

1. to Charter Oak Health Center, Inc. and Community Health Services, Inc. , $1 million each for the purchase of medical equipment to provide electronic medical records and develop access to remote treatment and training centers, and

2. to the Hispanic Health Council, $1 million for renovation and repairs.

EFFECTIVE DATE: July 1, 2010

140 —Technical Correction

The act corrects an internal reference in PA 10-44.

EFFECTIVE DATE: July 1, 2010

141, 143, & 156 — Authorization for Hartford Economic Development Project

PA 10-44 established three bond pools to fund specified projects in Bridgeport, Hartford, and New Haven to take the place of separate authorizations for the individual projects. This act eliminates a project for planning and design of streetscape improvements in the North Hartford area and along the Main Street corridor from Hartford's $5. 7 million pool authorization for economic development projects and restores a separate $500,000 authorization for that project. It adjusts the appropriate supertotal section to reflect the $500,000 add-back.

EFFECTIVE DATE: July 1, 2010, except for the restoration of the separate bond authorization for the project ( 156), which is effective on passage.

142 — Department of Children and Families Grants

The act reserves up to $1 million of an existing $3. 7 million authorization to DCF for the Boys and Girls Club of Hartford for construction of a new building to be named after Ella Cromwell. The purpose of the existing authorization is to provide grants to private, nonprofit organizations, including the Boys and Girls Clubs of America, YMCAs, YWCAs, and community centers, for constructing and renovating community youth centers for neighborhood recreation or education.

EFFECTIVE DATE: July 1, 2010

144 & 157 — Authorization for Danbury Project

The act restores a $150,000 bond authorization for a grant to the Stanley L. Richter Association for the Arts in Danbury for roof repair, expansion, and Americans with Disabilities Act improvements. PA 10-44 cancelled the authorization. The act adjusts the appropriate supertotal to reflect the restoration.

EFFECTIVE DATE: July 1, 2010 for the supertotal section change; upon passage for the restoration of the project authorization.


The act makes several substantive changes to the certificate of need (CON) process administered by the Office of Health Care Access (OHCA) division of the DPH by (1) clearly identifying when CON authorization is and is not required, (2) updating the guidelines and criteria OHCA must consider when making CON decisions, (3) simplifying the administrative process for CON applications, and (4) requiring an inventory of health care facilities and services.

The act also makes numerous technical changes to reflect legislation enacted last session that merged OHCA into DPH (see BACKGROUND). (Throughout the summary, the terms “OHCA” and “office” are used when referring to the merged OHCA division in DPH. )


Under prior law, a “health care facility” was any facility or institution engaged primarily in providing services for the prevention, diagnosis, or treatment of human health conditions. The definition listed several types of health care facilities, including some that were exempt from CON. The term also included any parent company, subsidiary, affiliate, or joint venture, or any combination of such facilities or institutions.

The act defines “health care facility” as DPH-licensed hospitals, specialty hospitals, freestanding emergency departments, outpatient surgical facilities, hospitals or other facilities eligible for reimbursement under Medicare or Medicaid, central service facilities, mental health facilities, substance abuse treatment facilities, and any other facility for which a CON is required. The definition continues to include any parent company, subsidiary, affiliate, or joint venture.

The act defines “free clinic” as a private, nonprofit community-based organization that provides medical, dental, pharmaceutical, or mental health services at reduced or no cost to low-income, uninsured and underinsured individuals. “Nonhospital based” means located at a site other than the hospital's main campus.

“Capital expenditure” is an expenditure that, under generally accepted accounting principles consistently applied, is not properly chargeable as an operating or maintenance expense. It includes acquisition by purchase, transfer, lease, or comparable arrangement or through donation, if it would have been considered a capital expenditure if it had been purchased.

CON Guidelines and Criteria

Previously, when considering a CON application, OHCA had to consider and make written findings concerning the following principles and guidelines:

1. the relationship of the proposal to the state health plan and the applicant's long-range plan;

2. the proposal's financial feasibility and its impact on the applicant's rates and financial condition;

3. the proposal's impact on consumers and payers of health care services;

4. its contribution to the quality, accessibility, and cost-effectiveness of health care delivery in the region;

5. whether there was a clear public need for the proposal;

6. whether the health care facility or institution was competent to provide efficient and adequate service to the public in that it was technically, financially, and managerially expert and efficient;

7. that rates were sufficient to allow the facility or institution to cover its reasonable capital and operating costs;

8. the relationship of any proposed change to the applicant's current utilization statistics;

9. the applicant's teaching and research responsibilities;

10. the special characteristics of the applicant's patient-physician mix;

11. the applicant's voluntary efforts to improve productivity and contain costs; and

12. any other factors OHCA considered relevant.

The act instead requires the office to consider and make written findings concerning:

1. whether the proposed project is consistent with any applicable policies and standards in OHCA regulations;

2. the relationship of the proposal to the statewide health care facilities and services plan;

3. whether there is a clear community need for the proposed health care facility or services;

4. whether the applicant has satisfactorily demonstrated how the proposal will affect the financial strength of the state's health care system;

5. whether the applicant has satisfactorily demonstrated how the proposal will improve the quality, accessibility, and cost-effectiveness of healthcare delivery in the region;

6. the applicant's past and proposed provision of health care services to relevant patient populations and payer mix;

7. whether the applicant has satisfactorily identified the population to be served by the proposed project and satisfactorily demonstrated that the identified population needs the proposed services;

8. the utilization of existing health care facilities and health care services in the applicant's service area; and

9. whether the applicant has satisfactorily demonstrated that the proposed project will not result in an unnecessary duplication of existing or approved health care services or facilities.

The office, as it deems necessary, may revise or supplement these guidelines and principles through regulation.

Activities Requiring a CON

Under prior law, a health care facility, provider, or person needed a CON to (1) transfer its ownership or control; (2) introduce an additional function or service; (3) terminate a service; (4) substantially reduce its total bed capacity; (5) incur a capital expenditure exceeding $3 million; (6) purchase, lease, or accept donation of major medical equipment requiring a capital expenditure of over $3 million; or (7) acquire a CT scanner, PET scanner, PET/CT scanner, MRI scanner, linear accelerator, or other similar equipment or technology that was new or being introduced into the state.

Under the act, the following activities require a CON:

1. the establishment of a new health care facility;

2. a transfer of ownership of a health care facility;

3. the establishment of a free-standing emergency department;

4. termination by a short-term acute care general or children's hospital of inpatient and outpatient mental health and substance abuse services;

5. the establishment of an outpatient surgical facility by a short-term acute care general hospital or by an entity other than a hospital;

6. the termination of an emergency department by a short-term acute care general hospital;

7. the establishment of cardiac services, including inpatient and outpatient cardiac catheterization, interventional cardiology, and cardiovascular surgery;

8. the acquisition of imaging equipment, including CT, MRI, PET, and PET/CT scanners, by any person, physician, provider, short-term acute care general hospital, or children's hospital;

9. the acquisition of nonhospital-based linear accelerators;

10. an increase in a health care facility's licensed bed capacity;

11. the acquisition of equipment using technology that has not previously been used in the state; and

12. an increase of two or more operating rooms within any three-year period, beginning on and after October 1, 2010, by an outpatient surgical facility or a short-tem acute care general hospital.

CON Exemptions

Prior Law. Previously, a number of activities and health care facilities and institutions were exempt from CON, including (1) facilities operated by a nonprofit educational institution solely for its students, faculty, and staff and their dependents and (2) Christian Science sanatoriums. Federally qualified health centers (FQHCs), community health centers, and school-based health centers were exempt for capital expenditures up to $3 million.

Also exempt from CON under prior law were:

1. an outpatient clinic or program operated exclusively by, or contracted to be operated exclusively for, a municipality or municipal agency, a health district, or a board of education;

2. a licensed residential facility certified to participate in the Medicaid program as an intermediate care facility for the mentally retarded;

3. an outpatient rehabilitation service agency in operation on January 1, 1998 operated exclusively on an outpatient basis, and eligible for state reimbursement;

4. a clinical laboratory;

5. an assisted living services agency;

6. an outpatient service offering chronic dialysis;

7. an ambulatory services program established and conducted by a health maintenance organization;

8. a home health agency;

9. a clinic operated by AmeriCares;

10. a nursing or rest home, except when related to a facility that requires a CON; or

11. a DCF-licensed or -funded program, provided it was not a psychiatric residential treatment facility as defined by federal law.

Under prior law, these exempt facilities were required to register with OHCA.

Prior law also exempted health care facilities or providers for acquisition of imaging equipment before July 1, 2005 and in operation before July 1, 2006. Health care facilities were exempt for certain non-clinical capital expenditures like garages and boilers. Hospitals were exempt from CON for locating certain outpatient services that were already offered by the hospital at an alternative location. OHCA could exempt from CON any facility or institution proposing to purchase or operate an electronic medical records system on and after October 1, 2005 and (2) any nonprofit facility currently under contract with a state agency.

Exemptions Under the Act. Under the act, a CON is not required for:

1. health care facilities owned and operated by the federal government;

2. offices established by a licensed private practitioner, whether for individual or group practice, except when a CON is required with respect to the acquisition of imaging equipment or a nonhospital based linear accelerator: (see above “Activities Requiring a CON”);

3. a health care facility operated by a religious group that relies for healing exclusively on spiritual means through prayer;

4. residential care, nursing, and rest homes;

5. assisted living services agencies;

6. home health agencies;

7. hospice services;

8. outpatient rehabilitation facilities;

9. outpatient chronic dialysis services;

10. transplant services;

11. free clinics;

12. school-based health centers, community health centers, FQHCs, and licensed not-for-profit outpatient clinics;

13. a program licensed or funded by the Department of Children and Families provided it is not a psychiatric residential treatment facility;

14. any nonprofit facility, institution or provider that has a contract with, or is certified or licensed to provide a service for, a state agency or department for a service that would otherwise require a CON. This does not apply to a short-term acute care general or children's hospital, or a hospital or other facility or institution operated by the state that provides services eligible for Medicare or Medicaid reimbursement;

15. a health care facility operated by a nonprofit educational institution exclusively for its students, faculty, and staff and their dependents;

16. an outpatient clinic or program operated exclusively by or contracted to be operated exclusively by a municipality, municipal agency, municipal board of education, or health district;

17. a licensed residential facility for the mentally retarded that is certified by Medicaid as an intermediate care facility for the mentally retarded;

18. replacement of existing imaging equipment acquired through CON approval or determination, provided a health care facility, provider, physician, or person notifies the office of the date on which the equipment is replaced and the disposition of the replaced equipment;

19. acquisition of cone-beam dental imaging equipment that is to be used exclusively by a licensed dentist;

20. the termination of inpatient or outpatient services offered by a hospital, except as provided below (see “Termination of Services”);

21. the partial or total elimination of services provided by an outpatient surgical facility, except as provided below (see “Termination of Services”); and

22. the termination of services when DPH has asked the facility to relinquish its license.

CON Process

Letter of Intent. Under prior law, a CON applicant submitted a written request to OHCA known as a “letter of intent” (LOI). This described the project and the type of proposal, its cost, and location. Within 21 days after OHCA reviewed the LOI to ensure it was complete, it published notice of the LOI in a newspaper with substantial circulation in the area served by the applicant. The applicant could file its CON application within 60 to 120 days after the LOI was initially filed. The applicant could ask for one 30-day extension of the LOI phase.

The act eliminates the LOI phase of the CON process.

CON Application Phase. Under prior law, OHCA had 10 days after receiving a CON application to determine whether it was complete. If determined incomplete, OHCA requested additional information from the applicant and the application was no longer considered to be before the office. This, in effect, tolled the review period for the CON. Once OHCA determined that the application was complete, it had 90 days to review the application and issue a decision. The review period could be extended for 30 days upon the applicant's request. If OHCA failed to act on the application by the end of the review period, it was deemed approved.

The act replaces this process with a new one. The CON application must address the (1) new CON guidelines and criteria listed above and (2) OHCA regulations. The applicant must also pay a $500 nonrefundable application fee. (Prior law established a fee schedule in regulation that had to (1) contain a minimum filing fee for all applications, (2) a percentage of the requested authorization in addition to the filing fee, and (3) apply to new CON requests and requests for modifications of prior decisions if the modification request has a proposed additional cost of $100,000 or more beyond the original authorization, or if the modification request together with any other prior requests totaled $100,000 or more. )

Under the act, the applicant must publish notice of its proposal in a newspaper with substantial circulation in the project's service area for three consecutive days, no more than 20 days before submitting the application to OHCA. The notice must include a brief description of the project and its address. OHCA cannot accept the application unless the fee and notice requirements are met.

OHCA must publish notice of the application on its website and with the secretary of the state within five business days after receiving a properly filed application. Within 30 days after the application is filed, OHCA may request additional information necessary to complete the application. The applicant then has 60 days from the date of the request to submit the additional information. If the applicant fails to do so, the application is considered withdrawn.

Once it determines the application is complete, OHCA must notify the applicant and the public according to regulations adopted by the office. It must also post the notice on its website to begin the 90-day review period. The office must issue a CON decision before the end of the 90-day period and may extend the review period for up to 60 days upon request or for good cause. If extended, OHCA must issue a decision on the CON application before the end of the extended period. If the office holds a public hearing on the application (see below), it must issue a decision within 60 days after the public hearing.

Public Hearings. Under prior law, OHCA had to hold a hearing on proposals (1) for capital expenditures exceeding $20 million, (2) for the acquisition of major medical equipment exceeding $3 million, (3) for equipment using technology that was new or being introduced to the state, and (4) when three individuals or an individual representing an entity with five or more people requested such a hearing in writing. OHCA had to receive such a request within 21 days after it deemed the application complete.

OHCA could hold a public hearing on any other CON application.

Under the act, OHCA must hold a public hearing on any type of properly filed and complete CON application if three or more people, or an individual representing an entity with five or more people, requests it in writing. The request must be made within 30 days following OHCA's determination that the application is complete.

The act authorizes OHCA to hold a public hearing on any CON application. OHCA must provide at least two weeks written notice to (1) the applicant and (2) the public through a newspaper with substantial circulation in area served by the facility or provider. It allows OHCA to hold a hearing on similar applications at the same time.

The act allows the DPH commissioner to implement policies and procedures necessary to administer these provisions while in the process of adopting them in regulation. The commissioner must hold a public hearing before implementing the policies and procedures and print notice of intent to adopt regulations in the Connecticut Law Journal not later than 20 days after the date of implementation. Policies and procedures implemented are valid until the final regulations are adopted, which must be done by December 31, 2011.

CON Validity Period; Extensions

Under the act, a CON is valid only for (1) the project described in the application and (2) two years from the date it is issued. The CON holder must provide OHCA with any information it requests on the project's development during these two years and for 30 days after it expires.

If the CON holder asks, OHCA may extend the CON's duration for a period of time the office determines is necessary to expeditiously complete the project. OHCA must post such a request on its website within five business days of receiving it. Anyone wishing to comment on the extension must provide written comments to OHCA within 30 days of the posting. OHCA must hold a public hearing on any extension request if three or more individuals or an individual representing an entity with five or more people submits a written request for a hearing.

OHCA may withdraw, revoke, or rescind the CON if it determines that (1) commencement, construction, or other preparation has not been substantially undertaken during a valid CON period or (2) the CON holder has not made a good-faith effort to complete the project as approved.

A CON is not transferable or assignable.

DPH can implement policies and procedures on these provisions while in the process of adopting them in regulation in the same manner described earlier.

Termination of Services

As noted above, existing law requires a CON when a health care facility or institution proposes to terminate a service. The act exempts from CON requirements the termination of (1) inpatient or outpatient services offered by a hospital except that a CON is required when a short-term acute care general hospital or children's hospital wants to terminate inpatient and outpatient behavioral health services, primary care clinics, or specialty clinics; and (2) some or all services provided by an outpatient surgical facility.

The act requires any health care facility proposing to terminate a service that was authorized by a CON to file a modification request with OHCA no later than 60 days before the proposed termination date. The office may request additional information from the facility to process the request. It must hold a public hearing on any request if three or more individuals or an individual representing an entity with five or more people requests it in writing.

A facility proposing to terminate all services it offers that were previously authorized by one or more CONs must notify the office at least 60 days before terminating the services and must surrender its CON at least 30 days before termination. A facility proposing to terminate the operation of a facility or service for which no CON was obtained must notify OHCA no later than 60 days prior to termination.

The DPH commissioner may implement policies and procedures to administer these provisions while adopting regulations, in the manner described earlier.

Relocation of a Facility

Under the act, a person, health care facility, or institution (1) proposing to relocate a facility or (2) unsure whether a CON is required, must send a letter to OHCA describing the project and asking the office to determine if a CON is required. The requestor must provide OHCA with any information the office requires as part of its determination process. If proposing relocation, the facility's letter must demonstrate to OHCA's satisfaction that the population the facility serves and the payer mix will not substantially change as a result of the relocation. If the facility is unable to do this, it must apply for a CON in order to relocate.

DPH may adopt policies and procedures to administer these provisions in the manner described above.


By law, DPH can impose a civil penalty of up to $1,000 per day on any person, health care facility, or institution for failing to submit data the department requires on major medical and imaging equipment it owns, operates, or plans to acquire and any other information the law requires it to file. DPH must notify the party by first class mail or personal service of the violation for which a civil penalty is authorized. The person, facility, or institution has 15 business days from the mailing date to apply in writing for a (1) hearing to contest the penalty or (2) time extension to file the data. A final order assessing the civil penalty can be appealed under the Uniform Administrative Procedure Act (UAPA), with the appeal to the New Britain judicial district.

Under the act, any person, facility, or institution required to file a CON which willfully fails to seek CON approval or to file within prescribed time periods, is subject to a civil penalty of up to $1,000 a day for each day the person or entity conducts activities requiring a CON. But a facility, provider, or institution failing to complete the inventory questionnaire (see below) is not subject to these civil penalties.

Statewide Health Care Facility Utilization Study; Statewide Health Care Facilities and Services Plan; Inventory

By law, OHCA must conduct an annual statewide health care facility utilization study which must address (1) current availability and utilization of acute hospital care, hospital emergency care, specialty hospital care, outpatient surgical care, and primary and clinic care; (2) geographic areas and subpopulations that may be underserved or have reduced access to specific types of health care services; and (3) other factors the office considers pertinent to facility utilization. The law also requires the office to create and maintain a statewide health care facilities plan which OHCA must consider along with DPH's state health plan in making CON decisions.

The act adds “services” to the statewide health facilities plan. It specifies that this plan is not considered part of the DPH state health plan for CON deliberation purposes. It requires OHCA, for purposes of conducting the statewide utilization study and the facilities and services plan, to establish and maintain an inventory of all health care facilities, equipment (imaging equipment and nonhospital-based linear accelerators), and services in the state, including facilities exempt from CON. The office must develop an inventory questionnaire that facilities and providers must complete biennially. Facilities and providers are not required to provide patient-specific data or financial data when completing the questionnaire. The questionnaire seeks the following information; (1) name, location, and type of facility; (2) hours of operation; (3) types of services provided at that location; and (4) the total number of clients, treatments, patient visits, and procedures or scans performed in a calendar year.

The act directs OHCA to promote effective health planning in the state. In carrying out its responsibilities, the office must promote quality health care in a way that ensures access for all state residents to cost-effective services that avoids duplication and improves the availability and financial stability of health care services throughout Connecticut.


The act requires the Department of Public Utility Control (DPUC), from January 1, 2011 through June 30, 2011, to have electric companies assess their customers a charge per kilowatt-hour of consumption that will raise $40 million for transfer to the General Fund.

It authorizes the state to issue bonds backed by two charges imposed on electric company bills (the competitive transition assessment, or CTA, and the conservation charge) to provide $956 million for transfer to the General Fund. Under prior law and at current rates of consumption, customers of Connecticut Light and Power would have stopped paying the CTA at the end of 2010 and customers of United Illuminating would have stopped paying it in 2013. The act instead extends the CTA through the term of the bonds. The maturity date for the bonds must be no more than eight years after they are authorized, unless a longer term is needed for economic reasons on the advice of the financing entity (the treasurer or other entity she authorizes to issue the bonds).

The act bars the extended CTA charge from being assessed before June 30, 2011 unless DPUC permits an earlier assessment pursuant to a financing order it must issue under the act. The act allows DPUC to provide funding in the finance order from other sources, including an assessment on municipal electric utility customers.

The act requires each electric company to submit an application by September 1, 2010 for a financing order to DPUC, which must issue an order for each company by October 1, 2010.

Under the act, the bond proceeds must be used to provide revenue for the General Fund as well as cover the costs of bond issuance, credit enhancements, and other costs as the treasurer considers necessary or advisable.

The law already authorized the issuance of securitization bonds in connection with the electric companies' stranded costs arising out of the legislation that partially deregulated the electric industry. By law, the existing securitization bonds are not backed by any electric company assets other than those specified in the financing order. The act extends this provision to the assets of the financing authority (the treasurer), apparently with regard to both the existing bonds and those issued under the act.

Prior Law on Electric Company Securitization

By law, electric company customers pay the CTA to cover companies' “stranded” costs. The CTA is charged to customers, whether they buy power from the company or a competitive supplier. Under prior law, the CTA would have ended when the stranded costs are paid off, which is the end of 2010 for Connecticut Light and Power and in 2013 for United Illuminating.

The law allowed the use of securitization for certain stranded costs. Securitization is a process under which the state sells bonds backed by a future revenue stream in exchange for an immediate lump sum cash payment. By law, the right to the CTA used to cover the stranded costs eligible for securitization is called “transition property,” which belongs to the electric company. The company or its affiliate can sell this interest to the financing entity to be used to back the securitization bonds.

The law allowed DPUC to issue a financing order authorizing the issuance of securitization bonds to facilitate the recovery and financing of stranded costs. DPUC cannot (1) revise the order, (2) revalue the stranded costs for ratemaking purposes, (3) determine that the CTA is unjust or unreasonable, or (4) do anything to reduce the value of the transition property.

The state treasurer or an entity she designates was allowed to issue securitization bonds after DPUC approved the financing order. The bond proceeds must be used for DPUC-approved purposes as specified in the financing order. The bonds and the financing order are not state debt, and the bonds must say this on their face. They do not count towards the state's debt limit. Neither the state nor its municipalities bear any contingent liability for them. The state pledges that it will not alter the CTA, transition property, and financing orders until the bonds are paid off. The parties involved in the securitization process are exempt from taxes on the relevant property or revenue. The bonds are treated for state income tax purposes as though a public body had issued them.

Securitization of CTA and Conservation Charge Revenue

The act largely extends the above provisions to the new bonds it authorizes to raise revenue for transfer to the General Fund. Specifically, it allows the CTA to be used both to repay the bonds and for related finance costs. It makes conforming changes to the definitions of transition property, bond documents, and indentures, among other things. It extends to the new bonds the treasurer's ability under existing law to enter into trust indentures and interest rate swaps and take other steps regarding the bonds. The act requires part of the extended CTA to be equal to the decrease in the conservation charge.

Use of Budget Surplus

After the accounts for FY 10 are closed, if the comptroller determines there exists an unappropriated surplus in the General Fund, the act requires it to first be used to reduce the obligations incurred under these securitization provisions, e. g. , pay off the new bonds. Any amount remaining beyond that must be used to reduce the state's obligations under a provision of PA 09-3 of the June Special Session, that required the state treasurer and the OPM secretary jointly to develop a financing plan to raise up to $1. 3 billion in net general state revenue for FY 11.

Electric Company Plans and Transition Property

The law allowed the electric companies to apply to DPUC for a financing order regarding their stranded costs. The act requires each company, by September 1, 2010, to submit a plan to DPUC for a financing order for funding the transfer to the General Fund through the issuance of the new bonds.

DPUC must hold a hearing for each company to determine the amount needed to fund the transfer and pay for the new bonds, the costs of bond issuance, credit enhancements, and operating costs for the bonds. The total of all of these costs as determined by DPUC constitutes transition property.

By law, the transition property associated with the electric companies' stranded costs belongs to the companies until they sell or transfer it. The act specifies that the electric companies have no right, title, or interest in the transition property associated with the transfer to the General Fund. Instead, they merely serve as a collection agent for the financing entity. It specifies that transition property with respect to the transfer vests solely in the financing entity immediately upon the creation of the property.

Allocation of Costs

Under the act, DPUC must allocate the responsibility for funding the transfer and paying the expenses of the bonds equitably between the electric companies, after taking into account any remaining charges for stranded costs. The allocation may provide that each company's customers may start paying the charges on different dates and the charges may vary while the bonds and the related operating expenses are being paid. However, the charges must be equitably allocated to the customers of each company. DPUC must determine that, over the bond repayment period and taking into account the timing of charges, the charges on a kilowatt-hour basis assessed to each company's customers has substantially the same present value. Any hearing with respect to a financing order regarding the transfer and the issuance of the new bonds is not a contested case.

DPUC must issue a financing order for each company by October 1, 2010. DPUC may provide, in the financing order, that other revenue transferred to the trustee under the indenture and intended to pay off the bonds be taken into account in adjusting the CTA if the money is not coming from the General Fund and would not harm the bonds' tax status and credit rating. This other revenue can include charges on municipal electric utility customers.

In the financing order authorizing the new bonds, or other appropriate order, DPUC must reduce the conservation charge by 35%. The reduction becomes effective April 4, 2012, or on an earlier date set by DPUC in the financing order. An amount equal to this reduction constitutes part of the CTA in respect to the new bonds, but any failure to offset all or any part of the CTA does not affect the requirement to implement the full amount of the CTA as required by the act. All receipts from the remainder of the conservation charge must go to the existing Energy Conservation and Load Management Fund. The CTA in respect to the new bonds or the decrease in the conservation funding resulting from the issuance of or obligations under the new bonds must be included as rate adjustments on customer bills.

The financing order becomes effective on issuance. The act ends DPUC's authority to issue financing orders with respect to the new bonds as of December 31, 2012.

Use of Bond Proceeds

The proceeds of the new bonds must be used for the purposes approved by DPUC in the financing order. These include funding the $956 million transfer to the General Fund. As under existing law, the proceeds may not be applied to purchase generation assets, purchase or redeem stock, or pay dividends to shareholders or operating expenses other than taxes resulting from the receipt of such proceeds.

Adjusting the CTA

By law, DPUC must adjust the CTA to ensure timely recovery of all stranded costs that are the subject of the pertinent financing order and related costs. The act additionally requires DPUC to adjust the CTA to ensure timely recovery of the costs of issuing, servicing, and retiring the new bonds issued to fund the transfer to the General Fund.

Once the CTA charged to customers has allowed full or partial recovery by the financing entity of any new bonds and full or partial recovery by the electric company of stranded costs not funded with the proceeds of these bonds, DPUC must ensure that the CTA charged to customers is adjusted to reflect (1) in the case of a partial recovery, the lower charge to be paid by customers and (2) in the case of a full recovery, the absence of such assessment. No electric company may bill any customer an amount for the CTA that is more than the amount needed to fund the new bonds or stranded costs.

Allocation of Excess CTA Revenue

Under prior law, any CTA revenue beyond that needed to pay the principal, premium, interest, and issuance expenses of the existing bonds had to be remitted to the financing entity. The financing entity could use this revenue to benefit electric company customers if it would not change the tax, accounting, and other intended characteristics of the financing order. The act instead requires that any excess revenue associated with bonds issued before January 1, 2002 be remitted to the financing entity. It must use this revenue to pay for the new bonds and credit them against the customers' payment obligation for these bonds.

The act requires that any CTA revenue beyond that needed to pay principal, premium, interest, and issuance expenses of bonds issued on or after May 1, 2010 be remitted to the financing entity, which must use it in the same way as provided under existing law. If no bonds are issued, the excess revenue must be transferred to the General Fund.

EFFECTIVE DATE: Upon passage


Prior law authorized $5 million in bonds annually, with the proceeds going to the Conservation and Load Management Fund for low-interest loans for energy conservation. The act reverses the provision of PA 10-44 that eliminates the annual authorizations for FY 09 and FY 10 and reduces the FY 08 authorization to $2 million. It requires that the proceeds of the sale of bonds authorized but not allocated by the State Bond Commission as of the act's passage date, plus the additional $5 million the act authorizes as of July 1, 2010 to be deposited in the Green Connecticut Loan Guaranty Fund it establishes.

The act requires the Connecticut Health and Educational Facilities Authority (CHEFA) to use this money for the Green Connecticut Loan Guaranty Fund Program the act establishes. Although the act allows the State Bond Commission to authorize deposit of additional amounts in the guaranty fund, it limits total deposits to no more than $18 million dollars.

CHEFA must use the money in the fund to guarantee loans by participating lending institutions to eligible participants for energy conservation projects, including for two or more joint eligible energy conservation projects. The eligible participants are individuals, nonprofit organizations, and businesses employing up to 50 full-time employees. The institutions that can participate are state- and federally chartered banks, trust companies, savings and loan associations and credit unions, and any insurance company authorized to do business in Connecticut that participates in the Green Connecticut Loan Guaranty Fund. CHEFA can use all of its existing powers in administering the program.

Eligible participants can borrow money from a participating lending institution for any energy conservation project for which CHEFA provides guaranties. In connection with a guaranty, (1) the borrower must enter into any loan or other agreement and make such covenants, representations, and indemnities as the lending institution deems necessary or appropriate and (2) the lending institution must enter into a guaranty agreement with CHEFA under which CHEFA agrees to provide a first loss guaranty of an agreed percentage of the original principal amount of loans for eligible projects.

CHEFA, in consultation with OPM, must identify types of projects eligible for the program. These can include the purchase and installation of insulation, alternative energy devices, energy conservation material, replacement furnaces and boilers, and technologically advanced energy-conserving equipment. CHEFA, in consultation with OPM, must establish priorities for financing eligible projects based on need and quality. CHEFA must adopt procedures to implement the program.

EFFECTIVE DATE: Upon passage


The act requires the OPM secretary, when preparing the governor's budget recommendations for submission to the legislature, to include the expenditure estimates for the Judicial Branch submitted by the chief court administrator without making any adjustment in those estimates.

EFFECTIVE DATE: July 1, 2010


The act transfers a total of $16,671,989 of the funds appropriated to the Department of Administrative Services (DAS) for Other Expenses to the department's State Insurance Risk Management Board Operations account for FY 11.

EFFECTIVE DATE: July 1, 2010


The act bars any funding for the State Contracting Standards Board in FY 11.

EFFECTIVE DATE: July 1, 2010


The act expands the information that the Judicial Selection Commission must include in its annual report to the Judiciary Committee.

1. For incumbent judges interviewed, recommended, or denied recommendation for reappointment to the same court or appointment to a higher court, the act requires the commission to submit data on their race, gender, national origin, religion, and years of experience as members of the bar. The law already requires the report to include this information for judicial appointment candidates, but not for sitting judges.

2. As of January 1 of the reporting year, the act requires the commission to report the number of candidates on the qualified candidates list it compiles and provide the same demographic data as listed above. The commission must also report the calendar year of the candidates' recommendation.

The act requires the report to be submitted on January 15, instead of during January each year, and specifies that the report covers the prior calendar year.

By law, the commission must also report on the number of interviewed, recommended, and denied (1) candidates for appointment as new nominees, (2) incumbent judges for reappointment to the same court, and (3) incumbent judges for appointment to a higher court.

EFFECTIVE DATE: Upon passage


The act modifies previously adopted revenue estimates for FY 11 for six of the state's 10 appropriated funds, as shown in Table 5.

Table 5: Modified FY 11 Revenue Estimates for Six State Funds


Prior Law

The Act

General Fund



Special Transportation Fund



Banking Fund



Insurance Fund



Consumer Counsel and Public Utility Control Fund



Workers' Compensation Fund



EFFECTIVE DATE: Upon passage


The act eliminates the requirement that DAS contract for ombudsman services to receive and investigate complaints from inmates in Department of Correction custody. It also eliminates provisions on handling the complaints and communications with inmates.

EFFECTIVE DATE: Upon passage


The act repeals a provision in the 2009 bond act that extends the maturity date of a Clean Water Fund loan to Ansonia from a maximum of 20 to a maximum 30 years after project completion. The loan was issued to Ansonia to finance improvements to its sewage treatment plant. The act also repeals a requirement that the DEP commissioner and the city amend their project funding agreement to conform to the longer maturity date.

EFFECTIVE DATE: July 1, 2010


The act repeals the following DSS statutes:

1. authorization for DSS to contract with a pharmacy benefits manager to provide prescription drug coverage to Medicaid MCO enrollees (CGS 17b-266a);

2. HUSKY Plus program (CGS 17b-294) (restored by PA 10-2, June Special Session);

3. requirements for Medicaid MCO contracts with DSS (CGS 17b-296);

4. the requirement that DSS adopt regulations establishing HUSKY B contract standards for Medicaid MCOs, sanction those that do not meet standards, and report quarterly and annually on HUSKY B enrollment (CGS 17b-298); and

5. the requirement for DSS to develop a program plan for ongoing public involvement in HUSKY B planning (CGS 17b-302).

EFFECTIVE DATE: July 1, 2010


Governor's Authority to Reduce Allotment Requisitions or Allotments in Force

By law, the governor can reduce an allotment requisition or allotment in force due to changed circumstances after the budget's adoption, after reporting to the Appropriations and Finance, Revenue and Bonding committees. If the comptroller's cumulative monthly financial statement shows a General Fund deficit of more than 1% of total General Fund appropriations, the governor must file a report with these two committees within 30 days and implement the plan modifying allotments to prevent the deficit.

Modifications cannot reduce total appropriations from any fund by more than 3% or any appropriation by more than 5%, except in a time of war, invasion, or natural disaster emergency. If the governor's plan calls for larger reductions, she can request approval by the Finance Advisory Committee, but any modification of more than 5% of total appropriations requires the General Assembly's approval (CGS 4-85).

Flexible Spending Accounts (FSAs)

The federal tax code permits employers to offer their employees a variety of nontaxable “qualified” benefits, including FSAs (IRC 125).

A qualified benefit is one that is excludable from an employee's gross income.  Qualified benefits include health care, vision and dental care, group-term life insurance, disability, adoption assistance, and certain other benefits (IRC 125(a), 125(f), 79, 105, 106, 129, and 137).  

FSAs permit employees to allocate a portion of their salaries pre-tax for certain incurred medical expenses not covered by their health insurance policies, including health care deductibles, coinsurances, and dependent care expenses. Employers may also contribute to the accounts, but are not required to do so. The code includes a “use-it-or-lose-it” rule that means employees forfeit any money left in the account at the end of the year.

By law, the comptroller must maintain an FSA account program for state employees in accordance with federal tax law (1986 IRC, 105 & 125, as amended) and the related regulations. Under the program, once an employee makes a written request to the comptroller, the comptroller or her designee must establish and maintain a FSA for the employee.

The comptroller must reduce the employee's salary by the amount the employee requested. The amount is transferred to the employee's FSA and can be used to reimburse him or her for expenses incurred for care that is reimbursable under federal tax law. The comptroller may contract with a program administrator to manage the program (CGS 5-264d).

OHCA Merger into DPH

PA 09-3, September Special Session, made a number of changes, primarily technical, to merge OHCA with DPH. It established an OHCA division in DPH under the direction of the DPH commissioner as a successor to the former, independent OHCA. OHCA no longer has its own commissioner.

The 2009 act established a deputy commissioner position to oversee the new OHCA division. It specified that the commissioner of the former OHCA serves as this new deputy commissioner and exercises independent decision-making authority over all CON-related matters, including determinations, orders, decisions, and agreed settlements. By January 1, 2010, this deputy commissioner, in consultation with the DPH commissioner, had to report to the governor and the Public Health Committee on recommendations for CON reform.

The 2009 act specified that any order, decision, agreed settlement, or regulation of OHCA in force as of that act's passage, remains so until amended, repealed, or superseded by law.

Hospitals are assessed to fund OHCA. Under the 2009 act, hospitals must make these payments to DPH instead of OHCA. By law, they are deposited in the General Fund.

OHCA's existing responsibilities, including health care facility utilization and planning, CON review, hospital charges and payments, data filings, and adoption of regulations, continued under the 2009 act.

Related Acts

PA 10-3 makes various statutory and budgetary changes to mitigate projected General Fund deficits in FY 10 and FY 11, including changes in DSS medical assistance programs, funding transfers from special accounts to the General Fund, and many other areas also addressed in this act.

PA 10-44 cancels state general obligation (GO) bond authorizations; authorizes new state GO, special tax obligation, and Clean Water Fund revenue bonds; and makes adjustments in existing GO bond authorizations.

PA 10-104 provides funding, under certain conditions, for (1) the construction of a new bed tower and renovations of academic, clinical, and research space at UConn's John Dempsey Hospital (JDH) and (2) the development of regional health network initiatives.

PA 10-110 contains provisions similar to 24 and 25 of this act concerning motor vehicle transactions at automobile clubs and motor vehicle registration stickers.

PA 10-151 extends to FY 10 the education commissioner's authority, within available appropriations, to provide supplemental grants to RESCs for interdistrict magnet school transportation. The commissioner already had the authority to provide such grants for FY 09.

PA 10-2, June Special Session, amends several provisions of this act, including those concerning DSS medical assistance programs, General and Special Transportation fund appropriations, and funding transfers from special funds and accounts to the General Fund.

OLR Tracking: JSL/various: VR: ts