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General Assembly Substitute Bill No. 498
February Session, 2026
AN ACT CONCERNING PENALTIES FOR TARDY PAYCHECKS FOR
PERSONAL CARE ATTENDANTS AND EXPANDING PUBLIC ACCESS
TO STATE PROGRAMS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2026) (a) As used in this section and 1
sections 2 to 5, inclusive, of this act, (1) "self -directed home care 2
programs" means Medicaid-funded programs that allow a consumer to 3
hire a personal care attendant, (2) "consumer" and "personal care 4
attendant" have the same meanings as provided in section 17b -706 of 5
the general statutes, (3) "department" means the Department of Social 6
Services, (4) "electronic visit verification system" means the system used 7
to record visits to a consumer by a personal care attendant, and (5) "fiscal 8
intermediary" means the organization that contracts with the 9
department to provide payroll, taxes and administrative services for 10
self-directed home care programs. 11
(b) The Commissioner of Social Services shall post quarterly reports 12
concerning the fiscal intermediary's performance of contractual duties 13
for self-directed home care programs on the department's Internet web 14
site and file such reports, in accordance with the provisions of section 15
11-4a of the general statutes, with the joint standing committees of the 16
General Assembly having cognizance of matters relating to human 17
services and labor. Except for public records exempted from disclosure 18
under section 1-210 of the general statutes, the reports shall contain the 19
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following information, commencing with information from the 20
quarterly period beginning on April 1, 2024: 21
(1) The most recent completed audited financial statements of the 22
fiscal intermediary; 23
(2) All personal care attendant timesheet reports, including, but not 24
limited to, reports containing the (A) number of weekly consumer -25
approved timesheets submitted, (B) number submitted on time, (C) 26
number resubmitted after correction, (D) number paid on time, (E) 27
timesheet processing error rate, (F) payroll processing error rate, and (G) 28
number and amount of penalties levied, on a monthly and weekly basis, 29
against the fiscal intermediary for violating provisions of the contract 30
concerning timesheets; 31
(3) All budget reports, customer service telephone call center reports 32
and service level agreement reports; 33
(4) The number of and average response time to general customer 34
service requests and the amount and number of penalties levied, on a 35
monthly and weekly basis, against the fiscal intermediary for violations 36
of the contract concerning response time for customer service requests; 37
and 38
(5) The (A) number of telephone calls, voice mail messages, electronic 39
mail messages and telephonic text messages received by the fiscal 40
intermediary from consumers and personal care attendants, (B) number 41
of instances in which such calls or messages were responded to by the 42
fiscal intermediary in the contractually required time period and the 43
means of response by the fiscal intermediary, and (C) number and 44
amount of penalties levied against the fiscal intermediary, on a monthly 45
and weekly basis, for violati ons of the provisions of the contract 46
concerning response time to inquiries from such consumers and 47
personal care attendants. 48
Sec. 2. (Effective from passage) (a) The Secretary of the Office of Policy 49
and Management, in consultation with the Commissioner of Social 50
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Services, shall conduct a cost -benefit analysis on (1) transferring fiscal 51
intermediary duties for self-directed home care programs from a private 52
contractor to the state, and (2) authorizing access by personal care 53
attendants not eligible for medical assistance established pursuant to 54
Title XIX or Title XXI of the Social Security Act or the Covered 55
Connecticut program established pursuant to section 19a -754c of the 56
general statutes to a health insurance program subsidized by the state. 57
(b) The cost -benefit analysis shall document the direct and indirect 58
costs, savings, and qualitative and quantitative benefits of state -59
administered management of duties performed by a privately 60
contracted fiscal intermediary, including, but not limited to: 61
(1) The costs of timesheet processing errors by a privately contracted 62
fiscal intermediary to consumers, personal care attendants and the state 63
and recommendations and benefits relating to ensuring accuracy of 64
timesheet processing; 65
(2) The effects of timesheet processing errors and health insurance 66
costs on the retention rate of personal care attendants and related costs 67
to the state; 68
(3) Effectiveness of communication of eligibility changes to 69
consumers and programmatic changes to personal care attendants and 70
benefits of improving, if warranted, such communication; and 71
(4) Cost benefits to the state of managing fiscal intermediary duties 72
and retaining related infrastructure rather than contracting out such 73
services. 74
(c) Not later than October 1, 2026, the secretary, in consultation with 75
the Commissioner of Social Services, shall file a report, in accordance 76
with the provisions of section 11-4a of the general statutes, with the joint 77
standing committees of the General Assembly having cognizance of 78
matters relating to human services and labor with (1) the results of the 79
cost-benefit analysis, and (2) a plan for state administration of such fiscal 80
intermediary duties if the cost-benefit analysis shows cost benefits to the 81
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state. 82
Sec. 3. (NEW) (Effective July 1, 2026) The Auditors of Public Accounts 83
shall annually conduct a contract compliance audit of the fiscal 84
intermediary contracted with the Department of Social Services to 85
provide fiscal intermediary services for self -directed home care 86
programs. The Auditors of Public Accounts shall file a report on their 87
findings, in accordance with the provisions of section 11 -4a of the 88
general statutes, with the joint standing committees of the General 89
Assembly having cognizance of matters relating to human services and 90
labor. 91
Sec. 4. (NEW) (Effective July 1, 2026) (a) On and after August 31, 2026, 92
any contract entered into, amended or renewed by the Department of 93
Social Services for fiscal intermediary services for self -directed home 94
care programs, or department administrative policy for such programs 95
if the department does not contract out such services, shall include 96
financial penalties for failure to timely process payroll for personal care 97
attendants in addition to interest of twelve per cent per annum for 98
paychecks in arrears for two or more pay periods where interest accrued 99
exceeds ten dollars. Such penalties shall be payable per pay period by a 100
contractor or the department, as applicable, to a personal care attendant 101
in accordance with the provisions set forth in subparagraphs (A) to (E), 102
inclusive, of subdivision (3) of this subsection, provided (1) the personal 103
care attendant has logged or attempted to log hours prior to the time 104
submission deadline for the applicable pay period; (2) the hours have 105
been approved by the consumer who hired the personal care attendant; 106
and (3) the hours approved by the consumer do not exceed the hours 107
allotted to the consumer under such consumer's care plan: 108
(A) Twenty -five dollars for tardy paychecks exceeding ninety -nine 109
dollars but not exceeding two hundred fifty dollars; 110
(B) Thirty-five dollars for tardy paychecks exceeding two hundred 111
fifty dollars but not exceeding five hundred dollars; 112
(C) Forty -five dollars for tardy paychecks exceeding five hundred 113
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dollars but not exceeding seven hundred fifty dollars; 114
(D) Fifty-five dollars for tardy paychecks exceeding seven hundred 115
fifty dollars but not exceeding one thousand dollars; and 116
(E) Sixty -five dollars for tardy paychecks exceeding one thousand 117
dollars. 118
(b) In addition to the penalties for tardy pay pursuant to subsection 119
(a) of this section, any contract entered into, amended or renewed by the 120
Department of Social Services for fiscal intermediary services for self -121
directed home care programs on and after August 31, 2026, shall require 122
a contracted fiscal intermediary, or the department if the department 123
does not contract out such services, to pay for damages resulting from 124
tardy pay ments to personal care attendants of twenty -five dollars or 125
more that have been documented by an employee organization, as 126
defined in section 5 -270 of the general statutes, representing such 127
personal care attendants and approved by the Personal Care Attendant 128
Workforce Council established pursuant to section 17b -706a of the 129
general statutes. If the council and employee organization disagree on 130
whether damages are sufficiently documented, either the council or the 131
employee organization may proceed to arbitration on an expedited 132
basis. For purposes of this subsection, damages may include, but are not 133
limited to, the amount of late fees on rent or utilities and bank overdraft 134
charges assessed against a personal care attendant in the thirty -day 135
period preceding the issuance of a tardy paycheck. Such fees or charges 136
shall be documented by original bills or notices. 137
(c) The Department of Social Services may assess additional penalties 138
against any fiscal intermediary contracted with the department for self-139
directed home care services on and after August 31, 2026, for failing to 140
make timely payments pursuant to contractual provisions subject to 141
subsections (a) and (b) of this section, including, but not limited to, 142
interest on late payments at a rate equal to the monthly effective yield 143
for the Short Term Investment Fund administered by the Treasurer 144
pursuant to sections 3-27a to 3-27j, inclusive, of the general statutes. 145
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Sec. 5. (NEW) (Effective July 1, 2026) On and after August 31, 2026, any 146
contract entered into, amended or renewed by the Department of Social 147
Services for fiscal intermediary services for self -directed home care 148
programs, or department administrative policy for such programs if the 149
department does not contract out such services, shall include financial 150
penalties for a contractor or the department when the contractor or 151
department uses an electronic visit verification system that (1) includes 152
hours for a personal care attendant that exceed the hours allotted to the 153
consumer employing such personal care attendant under such 154
consumer's care plan, or (2) otherwise incorrectly indicates hours are 155
available and reimbursable under state or federal law. Such penalties 156
shall be the rates payable to a personal care attendant for such hours, at 157
normal or overtime rates, as applicable, provided the personal care 158
attendant (A) has logged or attempted to log hours on the electronic visit 159
verification system prior to the time submission deadline for the 160
applicable pay period; (B) the hours have been approved by the 161
consumer who hired the personal care attendant; and (C) the personal 162
care attendant has worked such hours. Such penalties shall be paid to 163
the personal care attendant through the normal payroll process. 164
Sec. 6. (NEW) ( Effective July 1, 2026 ) A state agency, as defined in 165
section 4 -37e of the general statutes, and any private organization 166
contracting with a state agency, shall ensure that all communications 167
with the public or any of their employees serving the public, including, 168
but not limited to, any electronic system an employee uses to log hours 169
worked, (1) comply with the requirements for effective communications 170
under 28 CFR 35.160 et seq., and (2) are offered in a language designated 171
for a municipality where a member of the public or such employee 172
resides in accordance with the provisions of section 9-368l of the general 173
statutes concerning elections communications. 174
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2026 New section
Sec. 2 from passage New section
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Sec. 3 July 1, 2026 New section
Sec. 4 July 1, 2026 New section
Sec. 5 July 1, 2026 New section
Sec. 6 July 1, 2026 New section
HS Joint Favorable Subst. -LCO
APP Joint Favorable