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CBIA Summary of
BUSINESS
LEGISLATION
2010 Session of the Connecticut
General Assembly
CBIA 2010 Summary of Business Legislation
Table of Contents
State and Municipal Spending ........................................................................................................... 2
Economic Development.............................................................................................................. 7
Election Law............................................................................................................................. 13
Energy ..................................................................................................................................... 13
Environment ............................................................................................................................ 14
General Law/Miscellaneous...................................................................................................... 18
Health Care.............................................................................................................................. 20
Insurance ......................................................................................................................................... 22
Probate Courts......................................................................................................................... 25
Transportation ......................................................................................................................... 26
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CBIA 2010 Summary of Business Legislation
June 21, 2010 Special Session PA 10-2 (SB-502): AN ACT MAKING ADJUSTMENTS TO THE BUDGET
AND TO CERTAIN PUBLIC ACTS, AND ESTABLISHING THE HOMEOWNER'S EQUITY RECOVERY
OPPORTUNITY LOAN PROGRAM
Makes various changes to implement the FY 2010 deficit mitigation and FY 2011 budget adjustment acts.
It also allows the Connecticut Housing Finance Authority (CHFA) to provide mortgages to eligible
buyers of distressed, foreclosed, or abandoned property and repeals a duplicative property tax exemption
deadline extension. Effective: Various dates.
PA 10-44 (SB-25) AN ACT AUTHORIZING AND ADJUSTING BONDS OF THE STATE FOR CAPITAL
IMPROVEMENTS AND OTHER PURPOSES
Rescinds roughly $480 million in bond authorizations for state and local projects and state grants and
loans. The act also approves nearly $60 million in new bonding for projects in Bridgeport, Hartford, and
New Haven. In addition, the act permits an extra $40 million in Clean Water revenue bonds, allows
roughly $7 million in bonds for transportation-related projects; moves $5 million in bond authorizations
between Connecticut State University System projects in the 2020 plan. Effective: July 1, 2010.
• In the case of an evicted tenant, requires a state marshal to take the evicted tenant’s personal property
to a town-designated storage facility and alleviates the municipality's duty to pay the cost of moving
these items
• Amends the law governing when telecommunications companies are required to pay property tax on
their personal property
• No longer requires municipal meeting minutes to be posted on the Internet for purposes of
compliance with the Freedom of Information Act
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CBIA 2010 Summary of Business Legislation
PA 10-179 (SB-494): AN ACT MAKING ADJUSTMENTS TO STATE EXPENDITURES FOR THE FISCAL
YEAR ENDING JUNE 30, 2011
Makes numerous changes to the state’s biennial budget that originally passed during the 2009 legislative
session, in order to close a projected $726 million deficit for fiscal year 2011. Among a multitude of other
things, these changes include sweeps of a myriad of special funds into the state’s general fund in an effort
to begin to close the state’s budgetary deficit. And while there are no direct tax increases in the budget, it
does reduce but prolong an additional charge on CL&P customers’ energy bills that was to expire this
year. The state will borrow against those dollars for the next eight years to patch the state’s budget
deficit. Effective: Various dates.
June 21, 2010 Special Session PA 10-1 (SB-501): AN ACT CONCERNING THE REAL ESTATE
CONVEYANCE TAX, THE CONVEYANCE OF CERTAIN PARCELS OF STATE LAND, ADJUSTMENTS TO
CERTAIN PROGRAMS IMPLEMENTED THROUGH THE DEPARTMENT OF SOCIAL SERVICES, A REPORT
ON TAX CREDITS, JUVENILE JUSTICE, ABSENTEE VOTING BY MEMBERS OF THE MILITARY,
REVISIONS TO VARIOUS TASK FORCES, COMMISSIONS AND COUNCILS, AND AMENDMENTS AND
MINOR AND TECHNICAL CHANGES TO CERTAIN SPECIAL AND PUBLIC ACTS OF THE 2010 REGULAR
SESSION
Contains various provisions, including sections on taxes, state property, tax credits and voting.
Municipal Real Estate Conveyance Tax: Extends the expiration date of the municipal real estate
conveyance tax rate for one year and exempts foreclosures by sale and short sales from the tax.
Effective: July 1, 2010 for the municipal rate extension and October 1, 2010 for the exemption
provisions.
Tax Credits: Expands the range of new employees that qualify businesses for tax credits for businesses
hiring Connecticut residents with disabilities to include people with blindness. Effective: June 24, 2010
Review of Tax Credits: Requires the Department of Economic & Community Development
(DECD) commissioner, in consultation with the Department of Revenue Services (DRS) commissioner,
to evaluate and report every three years on tax credit and abatement programs enacted to recruit and
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CBIA 2010 Summary of Business Legislation
Absentee Voting by Members of the Military and by Citizens Living Abroad: Changes
state election law to comply with the federal Military and Overseas Voter Empowerment (MOVE) Act,
which Congress passed in October 2009 and applies to the November 2010 general election. It allows
applications for absentee ballots to be issued and returned by electronic means and military and overseas
absentee ballots to be issued by electronic means. Effective: June 24, 2010
Other Sections: Also makes changes relating to Medicaid, HUSKY Plus, juvenile justice, school
construction projects, appointments to commissions and task forces and establishes a temporary high risk
pool in conformance with the federal health care reform law. Effective: Various
Pre-seed financing. Directs Connecticut Innovations, Inc. to provide financing and other support to
certain innovative companies that are developing new concepts in business and authorizes $5 million in
general obligation bonds for this endeavor. For a company to be eligible to receive this financing and
support it must be principally located in Connecticut and it must have not less than three quarters of its
workforce residing in Connecticut. Also, the company must be able to demonstrate that it has raised at
least half of the financial assistance it is seeking from the state from private investors
“Angel investor” tax credit: Establishes an angel investor tax credit for certain investors if they
make such investments in small, Connecticut-based businesses focused on bioscience, advanced
materials, photonics, information technology, clean technology or an emerging technology (the small
businesses must have (a) gross annual revenues under $1 million; (b) not more than 25 employees, at least
75% of whom are Connecticut residents; (c) operated in Connecticut for less than seven consecutive
years; and (d) received less than $2 million in eligible investments from angel investors.
Small companies can use tax credits: Allows companies making such angel investments and
seeking such tax credits to be eligible for them even if they are not organized as C-corporations and
hence don’t pay any Connecticut corporate income taxes (because they are organized as such “pass-
through” entities as limited liability companies, S-corps, partnerships, etc.) The act stipulates that the
credits allocated to a pass-through entity may be claimed by the shareholders or partners and used against
their personal income taxes.
Small-business financing: Among other things, authorizes certain bonds for developing new
business concepts and authorizes tax credits for investing in technology-based, start-up businesses as well
as expanding businesses. In addition, the act authorizes funding for existing businesses by tapping into
previously authorized bonds to provide loans and lines of credit. The act also authorizes financial
incentives and technical assistance for businesses developing alternative energy technologies.
Workforce: addresses workforce needs by authorizing tax credits for businesses hiring new employees.
It establishes loan reimbursement and grant programs to Connecticut students seeking certain alternative
energy related jobs. The act also authorizes bonds for programs to train the unemployed and bonds for
the existing Mortgage Crisis Job Training Program.
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CBIA 2010 Summary of Business Legislation
Government operations: establishes a task force to improve on government efficiency and eliminate
waste.
Tax credits: Although the act does authorize several new tax credits, it also sunsets (by January 1,
2014) those for:
PA 10-188 (HB-5494) AN ACT CONCERNING VARIOUS CHANGES TO TITLE 12 AND TO THE TAX
CREDIT PROGRAM FOR REHABILITATION OF CERTIFIED HISTORIC STRUCTURES
Captive Real Estate Investments Trusts: Eliminates a state corporation tax deduction for
federally deductible dividends companies receive from “captive” real estate investment trusts (REITs)
unless the captive REIT is also subject to the Connecticut corporation tax.
Effective: June 7, 2010, and applicable to income years starting on or after Jan. 1, 2010
Amended tax returns: Expands requirements for filing amended state corporation and income tax
returns when taxpayers file amended federal corporation tax returns, or amended income tax returns with
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CBIA 2010 Summary of Business Legislation
other states or the District of Columbia. Effective: June 7, 2010, and applicable to income years starting
on or after Jan. 1, 2010
Sales tax permits held by inactive sellers: Allows only those who are actively conducting
business as sellers to hold sales tax permits. It also enables the state to cancel a permit, after notice and
hearing, if a seller's tax returns show no sales for two successive annual periods. Also extends the
required notice of a permit cancellation from 10 to 30 days, and makes other procedural changes.
Effective: June 7, 2010, and applicable to income years starting on or after Jan. 1, 2010
Motor carrier road tax reports: Requires all carriers filing quarterly operating reports to file them
on the last days of January, April, July, and October. The act exempts motor carriers that both operate
and buy all their fuel only in Connecticut from all reporting; requires all other carriers to file quarterly
reports; and eliminates annual reporting. Effective: June 7, 2010, and applicable to income years starting
on or after Jan. 1, 2010
Neighborhood Assistance Act tax credits: Increases, from 40% to 60% of the investment,
Neighborhood Assistance Act tax credits for business investments in community-based alcoholism
prevention or treatment programs. It therefore makes it match the 60% credits generally applicable to
most other credit-eligible activities. Effective: June 7, 2010, and applicable to income years starting on or
after Jan. 1, 2010
Electronic funds transfer and electronic filing requirements: Reduces the threshold for
electronically paying taxes or transferring withholding taxes from over $10,000 annually to $4,000 or
more in annual tax liability and more than $2,000 in annual withholding tax payments. Effective: June 7,
2010, and applicable to income years starting on or after Jan. 1, 2010
Historic structures tax credit: Makes business tax credits available to property owners who
rehabilitate historic structures for mixed commercial and residential use. It also requires the property
owners to repay 100% of the credit voucher if they fail to complete the residential portion of the project
by the specified deadline. Effective: June 7, 2010, and applicable to income years starting on or after Jan.
1, 2010
SA 10-08 (HB-5482) AN ACT EXTENDING THE DEADLINE FOR CERTAIN TAX CREDITS AND
EXEMPTIONS
Makes numerous changes to certain deadlines for requesting a hearing on, or filing for tax credits and
exemptions Effective: June 7, 2010
PA 10-95 (HB-5535) AN ACT CONCERNING A MONTHLY REPORT FROM THE STATE TREASURER
REGARDING THE STATE'S CASH BALANCE
Mandates the state treasurer, beginning on Oct. 1, 2010, to report the state’s cash balance monthly to the
Office of Fiscal Analysis and the leaders of the Finance and Appropriations committees. Each report
must cover the month that was two months prior to the submission date of the report. Reports must
include, in part: a weekly cash balance register, an ongoing total of approved but unissued bonds,
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CBIA 2010 Summary of Business Legislation
information on commercial paper issued or debt, and the sum in the common cash fund. Effective: July
1, 2010.
PA 10-150 (SB-431) AN ACT CONCERNING COLLATERAL FOR SECURITIES LENDING BY THE STATE
TREASURER
Permits the state treasurer to take securities guaranteed by other G10 countries as collateral for
repurchase contracts and loans concerning securities owned by the state's trust funds, so long as the
securities are rated AA or better by at least one nationally recognized statistical rating organization.
Effective: July 1, 2010.
Corporate Governance
CBIA Contact: Kevin Hennessy (860-244-1979; kevin.hennessy@cbia.com)
Economic Development
CBIA Contact: Bonnie Stewart (860-244-1925; bonnie.stewart@cbia.com)
Summary: This year, creating jobs, keeping jobs and laying the groundwork for future jobs was the goal of
most legislators going into the session. As the session developed, however, and despite some very difficult
opposition, legislators were able to adopt some measures that will ensure the state can be as economically
competitive as possible.
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CBIA 2010 Summary of Business Legislation
Attempts to expand business and create jobs in Connecticut through a series of policy changes.
Pre-seed financing. Directs Connecticut Innovations, Inc. to provide financing and other support to
certain innovative companies that are developing new concepts in business and authorizes $5 million in
general obligation bonds for this endeavor. For a company to be eligible to receive this financing and
support it must be principally located in Connecticut and it must have not less than three quarters of its
workforce residing in Connecticut. Also, the company must be able to demonstrate that it has raised at
least half of the financial assistance it is seeking from the state from private investors
“Angel investor” tax credit: Establishes an angel investor tax credit for certain investors if they
make such investments in small, Connecticut-based businesses focused on bioscience, advanced
materials, photonics, information technology, clean technology or an emerging technology (the small
businesses must have (a) gross annual revenues under $1 million; (b) not more than 25 employees, at least
75% of whom are Connecticut residents; (c) operated in Connecticut for less than seven consecutive
years; and (d) received less than $2 million in eligible investments from angel investors.
Small companies can use tax credits: Allows companies making such angel investments and
seeking such tax credits to be eligible for them even if they are not organized as C-corporations and
hence don’t pay any Connecticut corporate income taxes (because they are organized as such “pass-
through” entities as limited liability companies, S-corps, partnerships, etc.) The act stipulates that the
credits allocated to a pass-through entity may be claimed by the shareholders or partners and used against
their personal income taxes.
Small-business financing: Among other things, authorizes certain bonds for developing new
business concepts and authorizes tax credits for investing in technology-based, start-up businesses as well
as expanding businesses. In addition, the act authorizes funding for existing businesses by tapping into
previously authorized bonds to provide loans and lines of credit. The act also authorizes financial
incentives and technical assistance for businesses developing alternative energy technologies.
Workforce: addresses workforce needs by authorizing tax credits for businesses hiring new employees.
It establishes loan reimbursement and grant programs to Connecticut students seeking certain alternative
energy related jobs. The act also authorizes bonds for programs to train the unemployed and bonds for
the existing Mortgage Crisis Job Training Program.
Government operations: establishes a task force to improve on government efficiency and eliminate
waste.
Tax credits: Although the act does authorize several new tax credits, it also sunsets (by January 1,
2014) those for:
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CBIA 2010 Summary of Business Legislation
financial incentives for locating qualified manufacturing and service facilities in distressed municipalities, targeted
investment communities and enterprise zones. These incentives include extended assessment periods, assessment
accommodations for renovation or expansions, tax credits for manufacturing machinery and equipment, a 50%
tax credit on federal employment training requirements, and existing state grant programs related to these areas
of the state. Effective: Oct. 1, 2011
PA 10-145 (HB-5500): AN ACT CONCERNING THE OFFICE OF SMALL BUSINESS AFFAIRS AND
ESTABLISHING THE SMALL BUSINESS ADVISORY BOARD
Among other things, requires the state to create a Small Business Advisory Board to catalogue the
resources available to small businesses.
In addition, the act expands the work of the Small Business Affairs Office to include:
• Being a single point of contact for small businesses seeking financial and technical assistance
• Coordinating all state small business revolving loan funds
• Establishing a webpage with all small business resources
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CBIA 2010 Summary of Business Legislation
enterprise zone property tax exemptions and corporation business tax credits to businesses that acquire
or develop facilities in municipalities hurt by major aerospace or defense plant closings. Effective: June
11, 2010
PA 10-190 (HB-5498): AN ACT CONCERNING STATE CONTRACTS FOR MICRO BUSINESSES, UTILITY
DEPOSITS FOR CONNECTICUT BUSINESSES, THE SET ASIDE OF DEPARTMENT OF TRANSPORTATION
CONTRACTS FOR SMALL BUSINESSES, GRANTS FOR REGIONAL REVOLVING LOAN PROGRAMS FOR
MICROENTERPRISES, AND THE ISSUANCE OF ELIGIBILITY CERTIFICATES FOR CERTAIN ECONOMIC
DEVELOPMENT PROGRAMS
Attempts to help small businesses by, among other things:
• Mandating that the state consider a business’s annual gross revenues (if it’s less than $3 million) when
deciding what companies are pre-qualified to be state contractors
• Mandating that the Department of Public Utility Control study the utilities' use of service deposits
from nonresidents
• Opening the microloan program to regional revolving loan funds
SA 10-2 (SB-261): AN ACT CONCERNING THE CONNECTICUT JOB CORPS TASK FORCE
Establishes a State Jobs Corps Task Force that is charged with studying the means by which Connecticut
may implement a program similar to the Works Progress Administration (WPA) to use unemployed
workers to construct public works projects in the state. The task force is required to report its findings to
the general assembly by January 1, 2011. The report must include the following:
• An evaluation of the program used by the WPA and the feasibility of using aspects of such program
to respond to current economic conditions in Connecticut
• Any recommendations for necessary changes to state law, regulation or policy that would be
necessary to implement a program similar to the WPA
• Any recommendations for using state employees to assist in carrying out such recommendations
Effective: May 18, 2010
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CBIA 2010 Summary of Business Legislation
RATIOS
Reduces, by two, the number of construction trade journeypersons and contractors required at work sites
to supervise two or more apprentices in the following trades: plumbing, heating, piping, and cooling;
sprinkler fitter; and sheet metal work. It retains the requirement for one journeyperson or contractor to
be on-site for one apprentice. It requires the consumer protection commissioner to amend regulations to
specify the allowable hiring ratios. Effective: May 11, 2010
PA 10-101 (SB-330): AN ACT CONCERNING STUDENT EMPLOYEES, THE STATE ETHICS CODE AND
WORKFORCE COMPETITIVENESS
Exempts student employees at public institutions of higher education from certain provisions of the State
Code of Ethics. The exemptions apply to students whose employment is derived from their status as
students at those institutions. Regular employees at a college or university who take classes on a part-time
basis are not exempted. Effective: Oct. 1, 2010
Charter Schools:
• Eliminates a requirement that, when SBE issues charters for state and local charter schools, it
does so only within available appropriations;
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CBIA 2010 Summary of Business Legislation
• Requires SBE to waive enrollment limits for charter schools whose students show a record of
achievement, if the school applies for a waiver;
• Makes the charter school facility grant program permanent;
• Requires teachers first employed by a charter school on or after July 1, 2010 to participate in the
Teachers' Retirement System; and
• Requires SBE to regulate charter management organizations and their relationships to charter
schools.
• Requires SDE to review and approve proposals for school administrator alternate route to
certification (ARC) programs; and
• Gives the education commissioner additional criteria to waive the requirement that a school
superintendent hold a superintendent certificate issued by the SBE, if a waiver is requested by
the superintendent's employing board of education and the applicant has three years of
experience in, and holds a certificate from, another state.
Advanced Placement: Requires high schools to offer courses for which an advanced placement exam
is available.
SA 10-2 (SB-261): AN ACT CONCERNING THE CONNECTICUT JOB CORPS TASK FORCE
Establishes a State Jobs Corps Task Force that is charged with studying the means by which Connecticut
may implement a program similar to the Works Progress Administration (WPA) to use unemployed
workers to construct public works projects in the state. The task force is required to report its findings to
the general assembly by January 1, 2011. The report must include the following:
• An evaluation of the program used by the WPA and the feasibility of using aspects of such program
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CBIA 2010 Summary of Business Legislation
Election Law
CBIA Contact: Kevin Hennessy (860-2441979; kevin.hennessy@cbia.com)
Energy
CBIA Contact: Kevin Hennessy (860-244-1979; kevin.hennessy@cbia.com)
Summary: A massive energy proposal (SB-493) that was proposed and approved by the legislature at the
very end of the 2010 session was vetoed by Gov. Rell because, she correctly noted, the measure would
have raised electric rates for Connecticut consumers—not reduced them as some claimed. The bill would
have expanded state government by creating a new state agency, the Connecticut Energy and Technology
Authority. (According to the state’s nonpartisan Office of Fiscal Analysis, the costs of this government
expansion would have been significant.) The proposal also called for investments in various renewable
energy sources beyond ratepayers’ ability to afford them. The lion’s share of these investments was
dedicated to solar energy—one of the most expensive types of renewable energy sources, and more costly
than other fuels used in Connecticut. While the Governor vetoed this bill, its proponents have vowed to
bring it back for possible revision.
PA 10-179 (SB-494) AN ACT MAKING ADJUSTMENTS TO STATE EXPENDITURES FOR THE FISCAL
YEAR ENDING JUNE 30, 2011
Makes changes to address the state budget deficit, including by adding two charges to consumers’
electricity bills to back state bonds that will help fund the state budget. Also requires electric companies
to assess their customers a per-kilowatt-hour charge (from Jan. 1, 2011, through June 30, 2011) to raise
revenue for the state’s General Fund. Effective: May 27, 2010
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CBIA 2010 Summary of Business Legislation
Environment
CBIA Contact: Eric Brown (860-244-1926; eric.brown@cbia.com)
Summary: This year, the legislature passed landmark regulatory reform legislation (PA 10-158, HB-
5208) that is specifically designed to make it easier for Connecticut companies to do business with the
Department of Environmental Protection (DEP) and spark greater economic development. CBIA
appreciates the hard work of all the legislators, the Governor and the stakeholders who contributed to
the crafting of this significant, bipartisan legislation. Also key to its passage was the involvement of many
CBIA members who took the time to help formulate the legislation, meet with and contact legislators,
and enlist the support of colleagues in their companies and within the overall business community.
PA 10-74 (SB-382): AN ACT REQUIRING BIODIESEL BLENDED HEATING OIL AND LOWERING THE
SULFUR CONTENT OF HEATING OIL SOLD IN THE STATE
Establishes limits on the sulfur content of number two heating oil that is sold, offered for sale,
distributed or used in Connecticut. The limits will be phased in over three years beginning July 1, 2011,
and won’t take effect until substantially similar requirements have been adopted in New York,
Massachusetts and Rhode Island. The act also phases in requirements that by July 1, 2011, all heating oil
sold in Connecticut must be a biodiesel blend containing not less than 2% biodiesel, and by July 1, 2020,
containing no less than 20%. The same restriction regarding adoption by Connecticut’s three neighboring
states applies to this provision as well. In addition, the Department of Consumer Protection must decide
if there is sufficient in-state production of biodiesel to comply with the new biodiesel requirements in the
act. (An insufficient quantity may also result in delayed implementation of the limits.) Effective: Oct. 1,
2010, except the provisions regarding sulfur content are effective no sooner than July 1, 2011.
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Allows the state agriculture commissioner to designate certain shellfish areas that each regional
agricultural science and technology education center may use to conduct educational activities related to
commercial scale aquaculture. Effective: Oct. 1, 2010
PA 10-86 (HB-5119): AN ACT CONCERNING THE REMEDIATION ACCOUNT FOR DRY CLEANING
ESTABLISHMENTS AND REGULATED ACTIVITY ON CERTAIN SITES UNDERGOING REMEDIAL ACTION
Allows owners of properties that were, but are no longer, occupied by dry cleaning operations to be
eligible for funding under the “dry cleaning establishment remediation account.” It also establishes that
under circumstances, remedial actions that would otherwise be prohibited in an aquifer protection area
under federal law will not be prohibited. Effective: June 2, 2010
PA 10-106 (SB-124): AN ACT CONCERNING LONG ISLAND SOUND, COASTAL PERMITTING AND
CERTAIN GROUP FISHING
Requires anyone receiving a wetlands regulated-activity permit, dredging permit, certificate of permission
for routine maintenance, or emergency authorization for corrective action, to file a certified copy of the
document on the land records.
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PA 10-124 (SB-272): AN ACT CONCERNING DRUNK BOATING AND CERTAIN VESSELS REGISTERED
WITH MARINE DEALER REGISTRATION NUMBERS
Among other things, the act establishes a two-year moratorium on prohibiting anyone who holds a
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CBIA 2010 Summary of Business Legislation
current passenger-for-hire license and a charter boat registration, from operating a vessel registered with a
marine dealer’s registration number, under certain circumstances. Effective: May 27, 2010
PA 10-158 (HB-5208) AN ACT CONCERNING THE PERMIT AND REGULATORY AUTHORITY OF THE
DEPARTMENT OF ENVIRONMENTAL PROTECTION AND ESTABLISHING AN OFFICE OF THE PERMIT
OMBUDSMAN WITHIN THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
Establishes time frames in which DEP must complete its review of permit applications. The act also
creates a:
• Program to expedite permits for projects of economic significance
• Statewide permit ombudsman
• Review of procedures for adopting general permits and assessing the impact of the Connecticut
Environmental Protection Act on economic development and environmental protection (with
recommendations for improvement due by Sept. 30, 2010)
In addition, the act reduces permit application requirements for certain categories of facilities; establishes
a new DEP “consulting services program”; allows the DEP to extend the effective date of any general
permit up to 12 months in a streamlined manner, (and to not hold a hearing on tentative determination
to issue or deny a permit if the petition requesting the hearing is withdrawn); requires statewide standards
that form the basis of water permitting to be adopted as regulations rather the current DEP-only process;
requires the use of various methods to reduce the impact of proposed regulations on small businesses;
and creates a task force to make recommendations for expanding disclosure requirements regarding
federal consistency with proposed regulations.
Effective: Various; Mostly June 9, 2010 or Oct. 1, 2010, except for provisions regarding adoption or
revision of Water Quality Standards which is effective March 1, 2011
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Financial Institutions
CBIA Contact: Bonnie Stewart (860-244-1925; bonnie.stewart@cbia.com)
June 21, 2010 Special Session PA 10-2 (SB-502): AN ACT MAKING ADJUSTMENTS TO THE BUDGET
AND TO CERTAIN PUBLIC ACTS, AND ESTABLISHING THE HOMEOWNER'S EQUITY RECOVERY
OPPORTUNITY LOAN PROGRAM
Makes various changes to implement the FY 2010 deficit mitigation and FY 2011 budget adjustment acts.
It also allows the Connecticut Housing Finance Authority (CHFA) to provide mortgages to eligible
buyers of distressed, foreclosed, or abandoned property and repeals a duplicative property tax exemption
deadline extension. Effective: Various dates.
General Law/Miscellaneous
CBIA contact: Kevin Hennessy (860-244-1979; (kevin.hennessy@cbia.com)
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PA 10-25 (SB-127): AN ACT CONCERNING THE ACCOUNTING SYSTEM FOR REDEEMED BEVERAGE
CONTAINERS
Replaces the DEP commissioner with the Revenue Services commissioner as administrator of Bottle Bill
program deposits.
It also requires:
• Bottle Bill deposits to be held in a special trust fund for the state
• Quarterly reporting on account balances, credits, and withdrawals
• Quarterly payment of outstanding balances from “initiators”
The Act also eliminates the state treasurer's right to examine records and allows both the DEP and DRS
to file a complaint with the attorney general to institute action. The Act also requires the DRS
commissioner to adopt the IRS cash receipts and disbursements accounting method. And, it allows the
DRS commissioner to accept an alternate accounting method if a deposit initiator petitions for one. The
Act treats any required payments as a tax for the purpose of specified sections.
Effective: July 1, 2010
PA 10-70 (SB-231): AN ACT CREATING AN AMNESTY PROGRAM FOR DELINQUENT LOTTERY SALES
AGENTS
Establishes a two-month amnesty program (from October 1, 2010 through December 31, 2010) for
delinquent lottery sales agents (those that have had delinquency assessments imposed on them prior to
October 1, 2010) who have not paid the state the amounts they owe. In order to qualify for participation
in this amnesty program the agent needs to pay the entire delinquent amount owed (less 50% of the
interest) and agree to relinquish any and all rights to appeal. Effective: Oct. 1, 2010
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Health Care
CBIA contact: Eric George (860-244-1921; eric.george@cbia.com)
Summary: While we expected the 2010 legislative session to be very active with efforts to expand state
government’s control of health care, focus seemed to be more on what the implications of federal reform
would be for Connecticut’s health care system. And as a result, the 2010 session was notably quiet in the
health care arena. The controversial health care “pooling” bill was not introduced (after several years of
legislative passage and gubernatorial veto) and the government-control-focused “SustiNet” group was
not expanded either. In addition, efforts to impose a health care cost-driving hospital tax similarly never
fully materialized.
But the most noteworthy and positive event was that even though dozens of cost-boosting health care
mandates were introduced, only one was ultimately passed into law.
PA 10-4 (HB-5002): AN ACT CONCERNING PREMIUM QUOTES AND INFORMATION FOR SMALL
EMPLOYER HEALTH INSURANCE COVERAGE
Creates a health insurance clearinghouse for both individuals and small companies (no more than 50
employees) to gain access to health insurance information. The act also broadens the definition of “small
employer” and “eligible employee” by including part-time employees who work not less than 20 hours
per week. For the purposes of determining if an employer is a “small employer”, the act says that an
employer cannot count anyone working fewer than 30 hours a week as an eligible employee. In addition,
the act requires insurers to offer a small employer (if so requested) a premium quote for covering
employees working at least 20 hours a week. Effective: July 1, 2010 for the clearinghouse provisions and
Jan. 1, 2011 for the small employer provisions
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PA 10-59 (SB-17): AN ACT CONCERNING HEALTH CARE PROVIDER RENTAL NETWORK CONTRACT
ARRANGEMENTS
Affects the contracts entered into between doctors and the “contracting entities” that give access to
information contained in such contracts to certain outside parties (generally health insurers). Under the
act, a violation of its provisions is to be deemed an unfair or deceptive insurance practice. The act also
requires a contracting entity to update (not less than every 90 days) its list of covered entities and allows
an aggrieved doctor to file claims against contracting and covered entities. Effective: Oct. 1, 2010
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Allows licensed pharmacists to administer to adults certain federally approved vaccines for the prevention
of invasive pneumococcal disease and herpes zoster and its after-effects. The act also increases the
training requirements of pharmacists who administer any of these vaccines. Effective: Oct. 1, 2010.
Insurance
CBIA contact: Eric George (860-244-1921; eric.george@cbia.com)
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CBIA 2010 Summary of Business Legislation
• Prepares, documents, and submits a first-party property claim to an insurance company for loss or
damage covered under a personal or commercial risk insurance policy, or
• Negotiates, adjusts, or effects a claim settlement”
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CBIA 2010 Summary of Business Legislation
An employer found to be in violation of the Act is (1) guilty of a class D felony, (2) subject to a stop
work order, and (3) liable to the State Labor Department for a $300 civil penalty for each day of the
violation.
The bill requires employers to allow family violence victims to take up to 12 days of paid or unpaid leave
(including compensatory time, vacation time, personal days, or other time off) during any calendar year in
which the leave is reasonably necessary to:
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CBIA 2010 Summary of Business Legislation
Probate Courts
CBIA Contact: Kevin Hennessy (860-244-1979; kevin.hennessy@cbia.com)
PA 10-184 (HB-5407) AN ACT CONCERNING PROBATE FEES AND THE RECORDING OF PROBATE
PROCEEDINGS
This act makes several changes regarding probate court fees and related matters. The act allows an
extension for paying estate settlement costs, including interest, under certain conditions. Effective: Jan.
1, 2011
Real Estate
CBIA Contact: Eric George (860-244-1921; eric.george@cbia.com)
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CBIA 2010 Summary of Business Legislation
Transportation
CBIA Contact: Eric Brown (860-244-1926; eric.brown@cbia.com)
Fees and penalties: Incorporates federal penalties for employers that knowingly permit or require a
driver to operate a commercial motor vehicle in violation of an out-of-service order.
Disqualification , suspension and revocation: Expands the actions that disqualify a person
from operating a commercial motor vehicle to include convictions for substantially similar actions in
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CBIA 2010 Summary of Business Legislation
other states. The Act also expands the circumstances under which DMV may suspend or revoke a
license to include, in the case of a firm or corporation, where an officer or major stockholder has been
convicted of a violation of any law pertaining to the business of a motor vehicle dealer or repairer,
including vehicle recyclers, or of any violation involving fraud, larceny or other offenses specified in the
Act.
Registration and reporting exemptions: Exempts tow dollies from certain registration
requirements and also authorizes the commissioner to discontinue the requirement that insurance
companies and self-insurers owning vehicles required to have their titles marked “salvage”, “salvage parts
only” or “junked”, submit copies of those titles to the department. The Act also requires motor vehicle
recycler licensees to report information currently required on a bimonthly basis to the DMV, to also be
sent to the National Motor Vehicle Title Information System.
Surety bonds: Increases the surety bond required in conjunction for an application for a new or used
car dealer’s license from $20,000 to $50,000.
Temporarily waived the $250 business entity tax for a very limited number of businesses (with at least
one employee and net incomes of less than $50,000). Would have compensated for the temporary
suspension by taxing bonuses given to employees of financial institutions that received federal bailout
money under the Troubled Asset Relief Program (TARP).
PA 10-97 (SB-493): AN ACT REDUCING ELECTRICITY COSTS AND PROMOTING RENEWABLE ENERGY
Vetoed by the Governor
Expanded state government by restructuring the DPUC and creating new divisions within the agency;
increased electricity costs by investing heavily in solar residential programs and applied strict measures to
the competitive marketplace.
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CBIA 2010 Summary of Business Legislation
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CBIA 2010 Summary of Business Legislation
O T
Office of Fiscal Analysis Tax -------------------------- 3, 4, 6, 8, 16, 17, 18, 20, 26
OFA ------------------------------------------------2, 6, 13 taxes -------------------- 2, 3, 4, 5, 6, 8, 9, 19, 26, 27
Off-track betting ----------------------------------------- 20 Tax credit--------------------------------------4, 6, 8, 9, 26
tax credits ------------------------------- 2, 3, 5, 6, 8, 9
P Teacup raffles -------------------------------------------- 20
Prescription drug Telecommunication
prescription drugs ----------------------------------- 22 telecommunications ---------------------------------- 2
Property ----------------2, 3, 5, 6, 9, 17, 18, 23, 25, 26 Transportation ------------------------------------------ 2, 7
R U
S V
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