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PIACT 2019 legislative wrap-up
Resource kit 06006
By Clare Irvine, Esq.
Adapted from Connecticut legislative wrap-up by James Woulfe, Esq.; updated by PIACT.
Insurance legislation
Insurance data security overhaul
The massive 567-page state budget bill contained a section that overhauled the state’s insurance data security laws. The new language implements—for all intents and purposes—the National Association of Insurance Commissioners’ model cyber security legislation, which has been passed into law in many states across the country. Under the new framework, most organizations licensed by the Connecticut Insurance Department, as well as third-party service providers working with those companies, will be required to develop, implement and maintain a comprehensive written information security program. The program must be designed to:
- protect the security and confidentiality of the nonpublic information and the security of the company’s information system;
- protect against all threats and hazards to the security or integrity of nonpublic information and the company’s information system; and
- protect against unauthorized access to, or use of, nonpublic information and minimize the likelihood of harm to any consumer.
For companies with greater than 20 employees, the law’s effective date is Oct. 1, 2020. For companies employing between 10 and 20 employees, the law’s effective date is Oct. 1, 2021. Companies with less than 10 employees are exempt from the requirements of the law.
Crumbling foundations
H.B.7179 made some updates and improvements to legislation passed in previous years regarding crumbling foundations. The bill expands the definition of “residential building” within the context of crumbling foundations-related issues, ensuring that the term encompasses condominiums. The bill clears up confusion around the applicability of the $12 Healthy Homes Fund surcharge, and establishes a loan guarantee program for homeowners affected by the crumbling foundations crisis.
Paid Family Medical Leave
S.B.1 makes some significant changes the state’s “Paid Family Medical Leave” policies. Under the new Paid Family Medical Leave policies, virtually every private-sector employee will have access to at least 12 months of paid leave for qualifying medical issues or to take care of a family member. To cover the costs associated with expanding the Paid Family Medical Leave regime, a new payroll tax will be instituted, beginning in 2021. The funds will be overseen by the Paid Family and Medical Leave Insurance Authority, a new quasi-public agency created under the bill.
Business legislation
Workplace sexual harassment prevention requirements
The Legislature passed S.B.3, which requires employers with three or more employees to take several proactive steps to reduce workplace sexual harassment. The legislation requires all employers with three or more employees to:
- post information concerning the illegality of sexual harassment in a prominent place in their workplace and on any internal employee information websites;
- provide a copy of the post to all employees via email; and
- provide two hours of training and education by Oct. 1, 2020.
Supplemental education and training will be required every 10 years.
The legislation takes effect Oct. 1, 2019. Information about the illegality of sexual harassment must be posted and distributed by that date and employers will have a year to conduct the required training and education. The legislation mandates the Connecticut Human Rights Office develop resources employers can access to meet the requirements. Employers with fewer than three employees will still need any employee in a supervisory role to complete the training. These requirements differ from New York’s sexual harassment prevention requirements.
Noninsurance legislation
The Legislature did not legalize marijuana, sports gambling or pass legislation enabling tolls. That said, there were still some significant pieces of legislation that made their way through the General Assembly to the governor’s desk.
$15 minimum wage
H.B.5004, which will eventually increase the minimum wage to $15 an hour, was passed with significant opposition from Republicans, specifically the House Republican Caucus. The bill raises the minimum wage incrementally to $15 an hour by 2023, then indexes it to the Federal Employment Cost Index for future increases.
‘Raise the age’ and vaping legislation
H.B.5200, which received strong bipartisan support, raises the legal age to purchase tobacco products in Connecticut to age 21. The bill places significant restrictions on purchasers of “vape” and “e-cigarette” products.
Plastic bags ban
The state budget contained language banning stores from providing customers with single-use plastic bags, beginning July 1, 2021. In the interim, a fee of 10 cents per bag will be placed on each bag—the revenue from the new fee will be kept by the state. 10/19
