Raised Bill No. 1174, introduced in the January Session of 2023, addresses the wages, health care coverage, and retirement benefits for employees of nonprofit providers offering state-administered services to persons with intellectual or developmental disabilities. The bill mandates that nonprofit employers implement a schedule of wage increases to ensure that all employees providing services to individuals with intellectual or developmental disabilities reach a minimum wage of $25 per hour by January 1, 2026. Additionally, the bill requires nonprofit employers to document the use of funds received under this act to demonstrate that they have been used to increase employee salaries to meet the minimum wage requirement and to provide a 5% salary increase for employees earning between the minimum wage and $30 per hour in the calendar years 2024 and 2025.

The bill also appropriates funds from the General Fund to the Office of Policy and Management for the fiscal years ending June 30, 2024, and June 30, 2025, specifically for the purpose of increasing wages of employees of nonprofit employers. Furthermore, the bill enables the Comptroller to offer health care coverage to nonprofit employers and their employees under a partnership plan and appropriates $90 million for the fiscal year ending June 30, 2024, to establish a pool of funding to enhance retirement benefits for employees of nonprofit employers. The Secretary of the Office of Policy and Management is tasked with establishing the application process and documentation requirements for nonprofit employers to receive funding from this pool. The act includes new sections effective from passage and from July 1, 2023, and has received a joint favorable committee recommendation.