Senate Bill No. 374, identified as File No. 549, is a legislative proposal that aims to ensure equal pay rates for workers of nonprofit provider organizations who provide direct health or human services. The bill mandates that, starting from July 1, 2024, the Commissioner of Mental Health and Addiction Services must include a condition in any purchase of service contract with a nonprofit private provider organization. This condition requires that the nonprofit private provider organization must pay its workers providing direct health or human services at the same rate as workers in the same or similar classification providing such services at the same facility under a purchase of service contract with the Department of Developmental Services (DDS). The terms "private provider organization" and "purchase of service contract" are to be understood as defined in section 4-70b of the general statutes.

The fiscal impact statement indicates that the bill will result in additional costs to the Department of Mental Health and Addiction Services (DMHAS) due to the requirement for private providers to match the pay rates of employees providing services under DDS contracts. The anticipated cost is based on the assumption that 90% of the contracts, which total $31.1 million, support direct care services, and a 5% increase in wages would cost approximately $1.4 million. The actual cost will depend on the current wage differences between DMHAS and DDS contracted services for these providers. The bill's provisions are set to take effect upon passage, and the ongoing fiscal impact is expected to continue into the future, subject to the costs of direct care personnel for DDS contracted services. The Appropriations Committee has given a Joint Favorable report on the bill with a vote of 49 in favor and 2 against on April 4, 2024.