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CBIACONNECTICUT

BUSINESS & INDUSTRY


ASSOCIATION

cbia.com

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

 State and Municipal Taxes................................................................................................................. 3

 State & Municipal Fiscal Matters ................................................................................................ 6

 Corporate Governance ............................................................................................................... 7

 Economic Development.............................................................................................................. 7

 Education & Training ................................................................................................................ 10

 Election Law............................................................................................................................. 13

 Energy ..................................................................................................................................... 13

 Environment ............................................................................................................................ 14

 Financial Institutions ................................................................................................................ 18

 General Law/Miscellaneous...................................................................................................... 18

 Health Care.............................................................................................................................. 20

 Insurance ......................................................................................................................................... 22

 Labor & Employment....................................................................................................................... 23

 Probate Courts......................................................................................................................... 25

 Real Estate ............................................................................................................................... 25

 Transportation ......................................................................................................................... 26

 Major Vetoes Sustained ........................................................................................................... 27

 Index of Key Words........................................................................................................................... 28

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CBIA 2010 Summary of Business Legislation

 State & Municipal Spending


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.

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.

PA 10-143 (HB-5392): AN ACT CONCERNING NONAPPROPRIATED FUNDS AND PERSONNEL STATUS


REPORTS BY QUASI-PUBLIC AGENCIES
Modifies the laws governing what financial information quasi-public agencies are required to report to the
Office of Fiscal Analysis. Effective: July 1, 2010.

PA 10-155 (HB-5163): AN ACT REQUIRING THE ESTABLISHMENT OF A SEARCHABLE DATABASE FOR


STATE EXPENDITURES
Requires the state to develop a publicly available, online searchable database for state expenditures,
including state grants and contracts. Effective: June 5, 2010

PA 10-171 (HB-5255): AN ACT CONCERNING MUNICIPAL MANDATE RELIEF


Modifies existing municipal mandates in an attempt to reduce municipalities’ costs. Among other things,
the act:

• 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

Effective: July 1, 2010

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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.

SA 10-01 (SB-433) AN ACT CONCERNING THE CANCELLATION OF UNISSUED BOND FUND


AUTHORIZATIONS
Permits the state treasurer to cancel inactive bond funds. It also brings up to date the value of bond
authorizations adopted between 1967 and 1986 so they echo actual project allotments. The modifications
decrease net authorizations by nearly $10 million. Effective: May 18, 2010.

 State and Municipal Taxes


CBIA Contact: Bonnie Stewart (860-244-1925; bonnie.stewart@cbia.com)

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.

Conveyance of State Property: Authorizes conveyances of state property to the municipalities of


Portland, Marlborough, Manchester, Wallingford, New Haven, and Simsbury, and the Lake Phipps
Special Taxing District; amends prior conveyances in Bridgeport, Middletown, and New Britain; leases
state property to the municipalities of Bridgeport and Burlington; and requires the development of a plan
for the Cedar Ridge facility property in Newington should it be declared surplus. Effective: June 24, 2010

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

retain businesses. Effective: July 1, 2010

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

PA 10-75 (HB-5435): AN ACT CONCERNING THE RECOMMENDATIONS OF THE MAJORITY LEADERS'


JOB GROWTH ROUNDTABLE
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.

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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:

• Donating computers to public and private schools


• Constructing new facilities housing financial institutions
• Paying Small Business Administration guaranty fees.

Effective: Various— most either May 6, 2010 or July 1, 2010

PA 10-107 (SB-176): AN ACT CONCERNING THE FILM TAX CREDIT


Amends the criteria that companies are required to meet to claim a film tax credit. These tax credits apply
against the corporation business or insurance premium taxes and are transferable. The act also narrows
the types of film productions that qualify for the credit and modifies the criteria for determining eligible
production and infrastructure costs. Effective: July 1, 2010.

PA 10-146 (HB-5529) ACT CONCERNING AN EXEMPTION FROM THE ADMISSIONS TAX AT


RENTSCHLER FIELD
Exempts from the state 10% admissions tax any fees for interscholastic athletic events held at Rentschler
Field in East Hartford. Effective: July 1, 2010 and applicable to admission fees collected on or after that
date.

PA 10-162 (SB-175): AN ACT TRIGGERING CERTAIN ECONOMIC DEVELOPMENT PROGRAMS AND


EXTENDING THE DEADLINE FOR CERTAIN TAX EXEMPTIONS
Establishes a new council that is charged with recommending ways to promote the state's
competitiveness. The council must inform the state about the Connecticut's competitiveness when it
prepares the state's five-year strategic economic development strategy. The council is required to annually
report about the status of its recommendations and those of the economic clusters. Also extends
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 10-188 (HB-5494) AN ACT CONCERNING VARIOUS CHANGES TO TITLE 12 AND TO THE TAX
CREDIT PROGRAM FOR REHABILITATION OF CERTIFIED HISTORIC STRUCTURES

Contains various provisions pertaining to tax credits, filings and permits:

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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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

 State & Municipal Fiscal Matters


CBIA Contact: Bonnie Stewart (860-244-1925; bonnie.stewart@cbia.com)

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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information on commercial paper issued or debt, and the sum in the common cash fund. Effective: July
1, 2010.

PA 10-143 (HB-5392): AN ACT CONCERNING NONAPPROPRIATED FUNDS AND PERSONNEL STATUS


REPORTS BY QUASI-PUBLIC AGENCIES
Modifies the laws governing what financial information quasi-public agencies are required to report to the
Office of Fiscal Analysis. 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.

PA 10-167 (HB-5336): AN ACT ENCOURAGING SHARED SERVICE AGREEMENTS BETWEEN BOARDS


OF EDUCATION
Provides municipal boards of education with the ability to enter into agreements to share services. The
act establishes a grant process whereby such board of education can seek funds if it enters into a
cooperative arrangement with at least one other board of education to provide school transportation that
results in a savings during fiscal year 2011. Effective: Oct. 1, 2010

 Corporate Governance
CBIA Contact: Kevin Hennessy (860-244-1979; kevin.hennessy@cbia.com)

PA 10-35 (HB-5530): AN ACT CONCERNING THE CONNECTICUT BUSINESS CORPORATION ACT


Updates Connecticut’s business corporation act to align it with the national Model Business Corporation
Act adopted by 30 states. Among other things, the Act addresses directors’ standard of conduct,
shareholder votes, appraisal rights and equity compensation. Effective: Oct. 1, 2010.

 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.

PA 10-75 (HB-5435): AN ACT CONCERNING THE RECOMMENDATIONS OF THE MAJORITY LEADERS'


JOB GROWTH ROUNDTABLE

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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:

• Donating computers to public and private schools


• Constructing new facilities housing financial institutions
• Paying Small Business Administration guaranty fees.

Effective: Various— most either May 6, 2010 or July 1, 2010

PA 10-98 (SB-107): AN ACT ESTABLISHING A BRADLEY DEVELOPMENT ZONE


Establishes an economic development zone surrounding Bradley International Airport that includes sections of
Windsor Locks, Suffield, East Granby and Windsor. The act also makes available to the zone a variety of existing

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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 10-103 (HB-5419) AN ACT CONCERNING FARMS, FOOD AND S


Allows, under certain conditions, the preparation and sale of acidified foods on residential farms, and
makes the state agriculture commissioner responsible for the inspection of certain poultry producers and
processors. In addition, the Act designates processors meeting certain criteria as approved food sources
for certain consumers and entities. The Act also specifies that money collected by the Connecticut Milk
Promotion Board is not considered state funds and specifies that the board, for administrative purposes
only, is within the state Agriculture Department. It also expands the definition of a farmer's market.
Effective: June 2, 2010, except provisions regarding acidified food products are effective Jan. 1, 2011

PA 10-107 (SB-176): AN ACT CONCERNING THE FILM TAX CREDIT


Amends the criteria that companies are required to meet to claim a film tax credit. These tax credits apply
against the corporation business or insurance premium taxes and are transferable. The act also narrows
the types of film productions that qualify for the credit and modifies the criteria for determining eligible
production and infrastructure costs. Effective: July 1, 2010

PA 10-136 (SB-354): AN ACT CONCERNING BIOMEDICAL RESEARCH TRUST FUND RESEARCH


GRANTS
Allows grants that are made from the state’s Biomedical Research Trust Fund to be used to fund research
for Alzheimer’s disease and diabetes. Effective: July 1, 2010.

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

Effective: July 1, 2010

PA 10-162 (SB-175): AN ACT TRIGGERING CERTAIN ECONOMIC DEVELOPMENT PROGRAMS AND


EXTENDING THE DEADLINE FOR CERTAIN TAX EXEMPTIONS
Establishes a new council that is charged with recommending ways to promote the state's
competitiveness. The council must inform the state about the Connecticut's competitiveness when it
prepares the state's five-year strategic economic development strategy. The council is required to annually
report about the status of its recommendations and those of the economic clusters. Also extends

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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

Effective: July 1, 2010

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

 Education & Training


CBIA Contact: Kevin Hennessy (860-244-1979; kevin.hennessy@cbia.com)
Summary: This was a very successful year for education reform, with a number of important steps taken
to advance Connecticut’s education system and ensure the future of our workforce. Most important,
lawmakers passed a landmark education bill (PA 10-111, SB-438) that calls for a wide range of reforms
targeted to improve state schools and give our young people a better future. This new education reform
law was a bipartisan accomplishment of the Governor’s administration and the state legislature, as well as
the state’s education and business communities. Its wide range of reforms are also important to
demonstrating strong support for education reform in Connecticut, a prerequisite to potential federal
Race to the Top funds.

PA 10-27 (SB-133): AN ACT CONCERNING APPRENTICE TO JOURNEYMEN AND CONTRACTOR

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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 10-76 (SB-379): AN ACT CONCERNING VOCATIONAL-TECHNICAL SCHOOLS


Determines how and when a state vocational-technical school can be closed, and deals with
administrative issues on how they are run. Effective: July 1, 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

PA 10-111 (SB-438): AN ACT CONCERNING EDUCATION REFORM IN CONNECTICUT


Massive education reform bill that focuses on high school graduation standards, charter schools, teacher
and administrator certification, Advanced Placement courses and closing the achievement gap:
High School Reform:
• Sets higher standards to receive a high school diploma, including increasing the minimum credits
necessary to graduate from 20 to 25, starting with the graduating class of 2018;
• Requires the State Department of Education (SDE) to provide grants, within available
appropriations, beginning in FY 13 to assist school districts with the new standards;
• Gives the State Board of Education (SBE) the power, without first seeking legislative approval, to
reconstitute a local or regional board of education that, after being designated as a low-achieving
district, fails for two consecutive years to make adequate progress;
• Requires the SBE to develop, by July 1, 2013, guidelines for teacher evaluations that include
student academic growth and local district evaluations to be consistent with the guidelines;
• Requires the SDE to expand the public school information system, by July 1, 2013, to track and
report to school boards data on performance growth by students, teachers, schools, and school
districts; and
• Gives school authorities explicit authority to consider a student's previous disciplinary problems
when deciding whether an out-of-school suspension is warranted, as long as the school previously
attempted to address the problems by means other than an out-of-school suspension or an
expulsion.

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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• 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.

Teacher and Administrator Certification:

• 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.

Achievement Gap: Establishes an achievement gap task force.

Effective: July 1, 2010.

PA 10-156 (HB-5164): AN ACT IMPLEMENTING THE RECOMMENDATION OF THE PROGRAM


REVIEW AND INVESTIGATIONS COMMITTEE CONCERNING THE ALIGNMENT OF POSTSECONDARY
EDUCATION AND EMPLOYMENT IN THE GREEN INDUSTRY
Requires higher education institutions in Connecticut to publicize green technology initiatives in higher
education and to collaborate in furthering these initiatives. It also requires the Department of Higher
Education (DHE), in consultation with the Department of Education, to develop annually and publish
on its Website:
• A list of every green jobs course and academic program in a public institution of higher education or
a regional vocational-technical school in the state
• An inventory of green jobs-related equipment in these schools.
In addition, the act requires the Community-Technical Colleges Board of Trustees (CTC) to have
uniformly named green jobs academic programs in the CTC.

Effective: Oct. 1, 2010

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

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

 Election Law
CBIA Contact: Kevin Hennessy (860-2441979; kevin.hennessy@cbia.com)

PA 10-187 (HB-5471): AN ACT CONCERNING INDEPENDENT EXPENDITURES


Conforms Connecticut law to the decision of the U.S. Supreme Court in Citizens United v. Federal Election
Commission. The act removes the prohibition on independent expenditures made by organizations
(including labor unions) and businesses. The act also establishes reporting and attribution requirements
for independent expenditures for organizations and businesses similar to those existing under law for
individuals. Effective: June 8, 2010

 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 10-80 (HB-5225): AN ACT CONCERNING SOLAR WORK


Authorizes E-1 and E-2 licensed electricians to perform solar photovoltaic work. Effective: June 2, 2010

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 10-20 (HB-5320) AN ACT CONCERNING THE ENFORCEMENT OF PROHIBITED ACTIONS


CONCERNING CERTAIN INVASIVE PLANTS
Authorizes officers appointed by the DEP commissioner to enforce existing laws against growing,
distributing or buying invasive plants, with a fine of up to $100 per plant. Effective: Oct. 1, 2010

PA 10-64 (SB-118): AN ACT CONCERNING CONNECTICUT QUALIFIED BIODIESEL PRODUCER GRANTS


Establishes a grant program offering one-time startup grants of up to $3 million to qualified biodiesel
producers that are not yet actively engaged in the production of biodiesel.
The Act also:
• Clarifies and simplifies the compliance requirements of the existing grant program (for qualified
diesel producers already engaged in the production of biodiesel) and places new limits on the
total and per-gallon funding available.
• Requires the DEP to offer carbon-emission allowances for sale from the combined heat and
power long-term power purchase agreement set-aside account. These allowances must be offered
at a fixed price to energy generation sources with contracts that prohibit passing the cost of
purchasing the allowances on the open market to its customers.
Effective: May 18, 2010

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.

PA 10-78 (HB-5131): AN ACT CONCERNING VOCATIONAL AGRICULTURE SCIENCE AND


TECHNOLOGY AQUACULTURE CENTER SHELLFISH BEDS

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CBIA 2010 Summary of Business Legislation

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 10-87 (HB-5120): AN ACT CONCERNING PRIVATE AND MUNICIPAL RECYCLING, ZONING


ORDINANCES AND SOLID WASTE COLLECTION CONTRACTS
Requires contracts between solid waste contractors and their commercial customers to address how the
customers' recycling will be handled through a designated recyclable item collection (either by the same
collector or someone identified by the customer as contractor for recyclable collection). The Act does not
require businesses to contract exclusively with one collector for both designated recyclable items and
other solid waste. If the business chooses a separate recyclable collector, the contract must identify the
collector. The Act also:
• Expands the types of items that must be recycled
• Requires solid waste collectors to offer curbside or backyard recycling removal where they offer
curbside or backyard waste removal, by July 1, 2011
• Requires recycling receptacles at common venues where waste receptacles are located and
recyclables are generated
• Expands registration and reporting requirements for solid waste and recycling collectors
• Establishes new reporting requirements for the DEP and municipalities
Effective: Various, including July 1, 2010, for new collector reporting requirements, Oct. 1, 2011 for
common venue recycling, and July 1, 2012 for provisions regarding contracts with commercial customers.

PA 10-103 (HB-5419) AN ACT CONCERNING FARMS, FOOD AND JOBS


Allows, under certain conditions, the preparation and sale of acidified foods on residential farms, and
makes the state agriculture commissioner responsible for the inspection of certain poultry producers and
processors. In addition, the Act designates processors meeting certain criteria as approved food sources
for certain consumers and entities. The Act also specifies that money collected by the Connecticut Milk
Promotion Board is not considered state funds and specifies that the board, for administrative purposes
only, is within the state Agriculture Department. It also expands the definition of a farmer's market.
Effective: June 2, 2010, except provisions regarding acidified food products are effective Jan. 1, 2011

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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CBIA 2010 Summary of Business Legislation

The act also:


• Establishes a penalty for certain retaining structures built without the required building or
dredging permit
• Expands the activities eligible for a certificate of permission
• Allows more notices and permits to be submitted electronically
• Allows a permit applicant to request a hearing on the application
• Eliminates coastal management grants to municipalities and the estuarine embayment
improvement program.
• Makes several changes to the statutes governing waste discharge in navigable waters
• Eliminates the DEP’s annual report to the General Assembly and governor concerning the
development and implementation of the Coastal Management Act.
• Creates a $250 group fishing license for any tax-exempt organization with the purpose of
conducting a group fishing event for certain individuals
• Prohibits the DEP from permitting a new or expanded solid waste facility within 1,000 feet of a
primary or secondary aquifer, until the need for additional capacity is determined by the Solid
Waste Management Plan.
Effective: Oct. 1, 2010, except for the repeal of coastal management grants and the estuarine
environment improvement program, the group fishing license, and the provisions affecting solid waste
facilities, which are effective on passage.

PA 10-113 (HB-5314): AN ACT BANNING CADMIUM IN CHILDREN'S JEWELRY


Bans children's jewelry from containing certain levels and concentrations of cadmium or its compounds.
The act also says that beginning Sept. 30, 2014, baby bottles, cans, and baby food containers cannot
contain bisphenol-A (BPA), with certain delineated exceptions. Effective: Oct. 1, 2012 for the cadmium
provisions and Oct. 1, 2011 for the BPA provisions

PA 10-120 (SB-412): AN ACT CONCERNING THE ENVIRONMENTAL IMPACT EVALUATION


PREPARED FOR A STATE-OWNED AIRPORT DEVELOPMENT PROJECT AND THE REQUIREMENTS FOR
THE PREPARATION, EVALUATION AND REVIEW OF ENVIRONMENTAL IMPACT EVALUATIONS
Allows state agencies, institutions, and agencies conducting an environmental impact evaluation (EIE)
under the Connecticut Environmental Policy Act (CEPA), to contract with a person to prepare the EIE
under these conditions:
The agency must guide the person in preparing the EIE, participate in its preparation, independently
review the EIE before submitting it for comment under the CEPA, and ensure that any third party
responsible for conducting an activity the EIE is evaluating is not a party to the contract. The agency may
require that such a third party pay the agency enough money for the agency to hire the person preparing
the EIE. Effective: June 7, 2010

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 10-135 (HB-5436): AN ACT CONCERNING BROWNFIELD REMEDIATION LIABILITY


Provides that municipal and nonprofit development agencies qualify for directors' and officers' liability,
and general liability insurance, under an existing brownfield clean-up program. It allows the DECD
commissioner to use the funds from another brownfield program as a funding source for two newer
programs opened to municipalities and private developers. In addition, the Act:
• Allows municipalities to fix the assessment on contaminated property at the value before the
owner begins to remediate it for up to a period of seven years.
• Allows municipalities to forgive back taxes on a contaminated property if a developer proposes
to remediate it under a state-approved plan.
• Establishes an 11-member working group to examine brownfield issues, including remediation,
permitting and liability. The group must report its findings and recommendations to the
Commerce Committee by Jan. 15, 2011.
Also, and redundant with the provisions of PA 10-86, the Act sets narrow conditions under which a
regulated activity must be permitted on municipally owned sites undergoing remediation in aquifer
protection areas.
Effective: July 1, 2010, except for the provisions establishing the working group, which are effective
upon passage; the provisions concerning expanded us of the Urban Site Remediation Fund, which are
effective Oct. 1, 2010; and the provisions for fixing property tax assessments, which are effective July 1,
2010 and applicable to assessment years beginning on or after Oct. 1, 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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CBIA 2010 Summary of Business Legislation

PA 10-164 (HB-5126): AN ACT CONCERNING ESTABLISHING A CHEMICAL INNOVATIONS INSTITUTE


AT THE UNIVERSITY OF CONNECTICUT
Establishes a Chemical Innovations Institute at The University of Connecticut Health Center. The
institute will be a resource for information about chemicals, chemical alternatives and state and federal
regulations. It will be overseen by a board of directors that includes representatives of large and small
manufacturers, a professional with expertise in working with businesses to implement sustainable
business practices and a professional with expertise in green chemistry training. The Institute will give an
annual report to the legislature’s Environment Committee. Effective: June 3, 2010


 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.

PA 10-141 (HB-5114) AN ACT APPLYING THE PROVISIONS OF THE CONNECTICUT UNIFORM


SECURITIES ACT TO THE REQUIREMENT THAT BROKER-DEALERS COMPLY WITH THE CURRENCY
AND FOREIGN TRANSACTIONS REPORTING ACT
Expands the Connecticut Commissioner of Banking’s enforcement authority by linking different parts of
the state Uniform Securities Act to broker-dealers compliance with the Currency and Foreign
Transactions Reporting Act (CFTRA).Effective: June 7, 2010

PA 10-181 (HB-5270) AN ACT CONCERNING FORECLOSURE MEDIATION


Modifies the judicial foreclosure mediation program, the “cash for keys” law for tenants of foreclosed
homes, and the homestead exemption. Continues the judicial foreclosure mediation program established
under PA 08-176 until July 1, 2012. The measure also restricts the situations where a mortgagee
represented by counsel is permitted to not participate in a foreclosure mediation session. It mandates that
the mortgagee be available by telephone. The act changes the minimum sum that mortgagees or other
successors in interest offer to tenants to depart from a foreclosed residential property, under the “cash
for keys” program. Effective: Oct. 1, 2010, except for the provisions concerning the foreclosure
mediation program, which are effective on June 9, 2010.

 General Law/Miscellaneous
CBIA contact: Kevin Hennessy (860-244-1979; (kevin.hennessy@cbia.com)

PA 10-9 (HB-5138): AN ACT MAKING MINOR AND TECHNICAL REVISIONS TO DEPARTMENT OF

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CBIA 2010 Summary of Business Legislation

CONSUMER PROTECTION STATUTES


Makes minor and technical changes to consumer protection statutes concerning (1) food labeling, (2) seal
requirements for well-drillers, (3) Home Improvement Guarantee Fund payment requests, (4) license
renewals, (5) Automotive Glass Work and Flat Glass Work Board members, (6) proof of workers'
compensation insurance, (7) Department of Consumer Protection (DCP) exam requirements, and (8)
charitable organizations. Effective: May 5, 2010

PA 10-10 (HB-5157): AN ACT CONCERNING THE ADVERTISEMENT OF BAZAARS AND RAFFLES


Allows certain nonprofit organizations (i.e. - volunteer fire companies and veterans', religious, civic,
service, fraternal, educational, and charitable organizations) to use new forms of advertising in order to
promote bazaars or raffles, by permitting them to advertise using a website, e-mail and lawn signs.
Effective: Oct. 1, 2010

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 10-27 (SB-133): AN ACT CONCERNING APPRENTICE TO JOURNEYMEN AND CONTRACTOR


RATIOS
Reduces the number of construction trade journeypersons and contractors that must be present at work
sites to supervise two or more apprentices in certain trades, and requires the state to amend regulations to
specify the allowable hiring ratios. Effective: May 11, 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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CBIA 2010 Summary of Business Legislation

PA 10-114 (SB-121): AN ACT CONCERNING DEPOSIT REFUNDS ON CERTAIN BEVERAGE


CONTAINERS DONATED TO CHARITY
Requires the DEP by July 1, 2010, to create a procedure enabling distributors and manufacturers that sell
beverage containers and collect deposits on them to take a credit in the amount of the deposits refunded
on containers they donate for charitable purposes.
Effective: June 7, 2010

PA 10-128 (HB-5236): AN ACT CONCERNING ADDITIONAL OFF-TRACK BETTING BRANCH FACILITIES


IN NEW LONDON, MANCHESTER AND WINDHAM
Vetoed by the Governor but Veto Overridden by the Legislature
Increases the number of off-track betting facilities that can televise live off-track betting programs (from
12 to 15) and requires that these new facilities be located in Manchester, New London, and Windham.
Effective: June 21, 2010

PA 10-132 (HB-5340): AN ACT CONCERNING PRIZES FOR TEACUP RAFFLES


Allows qualified organizations that hold “teacup raffles” at bazaars to award prizes (or gift certificates)
valued at as much as $250. Effective: Oct. 1, 2010

 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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CBIA 2010 Summary of Business Legislation

PA 10-13 (HB-5219): AN ACT EXTENDING STATE CONTINUATION OF HEALTH INSURANCE


COVERAGE
Among other things, extends, from 18 to 30 months, the period for which certain individuals may
continue group health insurance. The extended coverage applies to individuals who are already receiving
continued coverage as well as those electing to do so in the future. The act requires insurers that have
issued group health insurance policies to provide notice of the extended coverage period to impacted
individuals by July 4, 2010. Effective: May 5, 2010

PA 10-19 (HB-5303): AN ACT REQUIRING REPORTING OF CERTAIN HEALTH INSURANCE CLAIMS


DENIAL DATA
Requires health insurers to report claims denial data to the Connecticut Department of Insurance by May
1st of each year. The department is then required to post such claims-denial information on its website
and include it in the Consumer Report Card on Health Insurance Carriers in Connecticut. Effective:
July 1, 2010 for most provisions

PA 10-24 (HB-5235): AN ACT REQUIRING THE PROVIDING OF CERTAIN INFORMATION UPON


CERTAIN DENIALS OF HEALTH INSURANCE COVERAGE.
Requires health insurers that deny coverage to any of their insured, because the insurer deems it is either
not medically necessary or it is not a covered benefit, to notify the insured of her ability to contact the
Office of the Healthcare Advocate (along with the contact information of the Office) if she believes the
decision is incorrect. Effective: Jan. 1, 2011

PA 10-39 (HB-5351) AN ACT CONCERNING PRESCRIPTION DRUG BENEFITS FOR VETERANS IN


NURSING HOME FACILITIES
Bars nursing homes from limiting a patient’s access to prescriptions under any federal Department of
Veterans' Affairs prescription drug program or health plan. Effective: Oct. 1, 2010

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

PA 10-63 (SB-50): AN ACT CONCERNING ORAL CHEMOTHERAPY TREATMENTS


Increases the cost of health insurance for Connecticut companies, and especially for small Connecticut
employers, by requiring all fully insured health plans that currently cover intravenously and orally
administered anticancer medications to also cover the orally administered medication on an equivalent
basis. This was the only health benefit mandate that passed during the 2010 session. Effective: Jan. 1,
2011.

PA 10-82 (HB-5290): AN ACT CONCERNING THE ADMINISTRATION OF VACCINES BY LICENSED


PHARMACISTS

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CBIA 2010 Summary of Business Legislation

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.

PA 10-122 (SB-248): AN ACT CONCERNING THE REPORTING OF ADVERSE EVENTS AT HOSPITALS


AND OUTPATIENT SURGICAL FACILITIES AND ACCESS TO INFORMATION RELATED TO PENDING
COMPLAINTS FILED WITH THE DEPARTMENT OF PUBLIC HEALTH
Requires the Department of Public Health to include, in its annual report to the legislature regarding
adverse events, certain hospital information which is to be aggregated to protect confidentiality. The act
also bars a hospital from taking certain actions against employees or job applicants for actions taken to
further the provisions of the adverse-event law. Effective: July 1, 2010 in general, except that the
provisions pertaining to patient complaints are effective Oct. 1, 2010

PA-10-127 (HB-5113): AN ACT CONCERNING BILLING FOR SERVICES COVERED BY LONG-TERM


CARE INSURANCE BY MANAGED RESIDENTIAL COMMUNITIES
Generally, this act requires managed residential communities to assist their residents as they submit
claims on their long-term care insurance policies. The act also bars insurers from refusing to accept or
reimburse claims prepared by such a community. Effective: July 1, 2010

PA 10-131 (HB-5295): AN ACT CONCERNING THE PURCHASING OF PRESCRIPTION DRUGS BY


NONSTATE PUBLIC EMPLOYERS
Generally codifies existing municipal practices by having the state comptroller offer municipalities,
boards of education and the Teacher’s Retirement Board the option to purchase prescription drugs
through the state's bulk purchasing program. These municipal entities must pay the full cost of their own
claims and prescription drugs. The act allows two or more municipalities to join together to purchase
prescription drugs for their employees, dependents and retirees. Effective: June 7, 2010

PA 10-163 (HB-5004): AN ACT CONCERNING TRANSPARENCY IN HEALTH INSURANCE CLAIMS DATA


Among other things, this act mandates that health insurers must disclose certain claims and premium
related information to municipalities with at least 50 employees. Such municipalities may only use such
information in order to obtain competitive quotes for insurance or to promote wellness initiatives.
Effective: June 7, 2010

 Insurance
CBIA contact: Eric George (860-244-1921; eric.george@cbia.com)

PA 10-7 (HB-5014): AN ACT CONCERNING AUTOMOBILE AND PERSONAL RISK INSURANCE


Amends the rules governing the use of an individual’s credit history when underwriting a personal risk
insurance policy. The act also makes various changes to the rules governing auto and personal risk
insurance policies. Effective: Jan. 1, 2011

PA 10-65 (SB-141): AN ACT REQUIRING DISCLOSURE OF OFFSETS IN GROUP LONG-TERM

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CBIA 2010 Summary of Business Legislation

DISABILITY INSURANCE POLICIES


Requires insurers that issue group long-term disability policies containing a Social Security offset, to
disclose to the policyholder certain specified information related to this offset. Effective: Jan. 1, 2011.

PA 10-79 (HB-5141): AN ACT CONCERNING THE HANDLING OF PROPERTY CLAIMS BY PUBLIC


ADJUSTERS
Amends the definition of “public adjuster” so that it means “a person or company that, on behalf of an
insured person and for compensation or anything of value:

• 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”

Effective: Oct. 1, 2010

 Labor & Employment


CBIA Contact: Kia Murrell (860-244-1931; kia.murrell@cbia.com)
Summary: While the final results on the labor front were good for Connecticut’s businesses, lawmakers
once again invested much time on anti-jobs proposals. Our members were critically important in
convincing legislators of the harm many bills could have caused their companies and the state’s overall
economy. Mandatory paid time off (SB-63; died) was a signature issue for labor organizations and their
advocates in the legislature. Lawmakers also considered two harmful workers’ compensation measures,
but both failed to gain approval. SB-61 would have raised workers’ compensation costs dramatically by
taking away employers’ ability to pre-approve routine medical examinations and treatments in workers’
compensation cases.

PA 10-11 (HB-5201): AN ACT CONCERNING INTEREST PENALTIES ON LATE PAYMENT OF


ASSESSMENTS TO THE SECOND INJURY FUND
Clarifies existing law regarding the penalty for late payments and surcharges to the Second Injury Fund.
The Act makes clear that the penalty for overdue Second Injury Fund assessments from employers or
insurers is 15% of the assessment or $50, whichever is greater. Under prior law, it was unclear when an
employer or insurer paid 15% or the $50 minimum. The Fund is administered by the state treasurer and
funded by employers and insurers through annual assessments. The Fund provides workers' compensation
coverage to workers whose employers failed to provide it. Effective: May 5, 2010

PA 10-12 (HB-5204): AN ACT CONCERNING IMPLEMENTING THE RECOMMENDATIONS OF THE


JOINT ENFORCEMENT COMMISSION ON EMPLOYEE MISCLASSIFICATION
Allows the legislature to implement recommendations of the Joint Enforcement Commission on
Employee Misclassification to address issues of employee misclassification. Establishes civil and criminal
penalties for any employer who defrauds or deceives the state by misrepresenting the number of its
employees or classifies them as independent contractors in order to avoid:

• Paying for workers' compensation insurance, or

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CBIA 2010 Summary of Business Legislation

• To pay a lower amount of insurance, or


• For any employer who is fully insured for workers' compensation, but fails to pay the required
state assessments for the administration of the Workers' Compensation Commission and/or
administration and funding of the Second Injury Fund (SIF)

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.

Effective: Oct. 1, 2010

PA 10-46 (SB-65): AN ACT CONCERNING UNEMPLOYMENT COMPENSATION EXTENDED BENEFITS


Requires government, tribal and certain other employers to comply with federal law and reimburse the
state Unemployment Trust Fund all of the money expended from it in extended unemployment benefits
to government employees. Under existing law the state, municipalities, and Native American tribes
reimburse the Unemployment Trust Fund for benefits paid to their former employees. This act requires
these employers to pay 100% of the cost of any extended unemployment benefits (i.e. benefits that are
granted beyond 26-weeks and/or any additional benefits the federal government grants and pays for.
Effective: May 18, 2010

PA 10-88 (SB-62) AN ACT CONCERNING THE LEGISLATIVE COMMISSIONERS’ RECOMMENDATIONS


FOR TECHNICAL CORRECTIONS AND MINOR CHANGES TO LABOR STATUTES
Makes various technical changes to Connecticut state labor statutes. It also requires private-sector
employees requesting military caregiver leave under the Family and Medical Leave Act (FMLA) to notify
their employer at least 30 days before leave begins or as soon as practicable. Effective: May 26, 2010

PA 10-144 (HB-5497) AN ACT CONCERNING THE RECOMMENDATIONS OF THE SPEAKER OF THE


HOUSE OF REPRESENTATIVES’ TASK FORCE ON DOMESTIC VIOLENCE
Implements new employment protections for domestic violence victims in the workplace by prohibiting
employers (of at least 3 employees or more) from terminating, penalizing or threatening an individual’s
employment based on their status as a family violence victim or because an employee attends or
participates in a civil court proceeding related to an incident of family violence. The bill also doubles,
from 90 to 180 days, the time an employee has to bring a civil action against an employer who takes any
of these actions, and if the employee prevails they may be awarded civil damages, reinstatement and
reasonable attorney’s fees.

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:

• Seek medical care or counseling for physical or psychological injury or disability,


• Obtain services from a victim services organization,
• Relocate due to the family violence, or
• Participate in any civil or criminal proceeding related to or resulting from such family violence.

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CBIA 2010 Summary of Business Legislation

Effective: Oct. 1, 2010

 Probate Courts
CBIA Contact: Kevin Hennessy (860-244-1979; kevin.hennessy@cbia.com)

PA 10-34 (HB-5406) AN ACT CONCERNING THE COURTS OF PROBATE


Allows the probate court administrator to make regulations governing record maintenance and eliminates
the requirement that he follow the Uniform Administrative Procedure Act (UAPA) rules. Also allows
towns assigned to the same probate district to agree on how to share costs associated with court
operations. And it also allows probate judges to conduct business in any location in Connecticut to
facilitate a party's attendance. Effective: Oct. 1, 2010

PA 10-121 (SB-426) AN ACT CONCERNING PROBATE DISTRICTS


PA 09-1, September Special Session, replaces the existing 117 probate districts with 54 probate districts
on Jan. 5, 2011. When the new districts take effect, this act makes Union part of a district that includes
Enfield, Somers, and Stafford instead of the district including Ashford, Brooklyn, Eastford, Pomfret,
Putnam, Thompson, and Woodstock. Effective: Jan. 5, 2011

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

PA 10-41 (HB-5408) AN ACT CONCERNING PROBATE COURT OPERATIONS


The Act specifies that Probate Court judges do not get extra compensation for acting as an administrative
judge for a regional children's court, a member of a three-judge panel, a special assignment judge, or the
probate court administrator and conforms statute to reflect the centralized accounting and new pay
formula that go into effect on January 5, 2011. Effective: Jan. 5, 2011

 Real Estate
CBIA Contact: Eric George (860-244-1921; eric.george@cbia.com)

PA 10-135 (HB-5436): AN ACT CONCERNING BROWNFIELD REMEDIATION LIABILITY


Provides that municipal and nonprofit development agencies qualify for directors' and officers' liability,
and general liability insurance, under an existing brownfield clean-up program. It allows the DECD
commissioner to use the funds from another brownfield program as a funding source for two newer
programs opened to municipalities and private developers. In addition, the Act:
• Allows municipalities to fix the assessment on contaminated property at the value before the

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CBIA 2010 Summary of Business Legislation

owner begins to remediate it for up to a period of seven years.


• Allows municipalities to forgive back taxes on a contaminated property if a developer proposes
to remediate it under a state-approved plan.
• Establishes an 11-member working group to examine brownfield issues, including remediation,
permitting and liability. The group must report its findings and recommendations to the
Commerce Committee by Jan. 15, 2011.
Also, and redundant with the provisions of PA 10-86, the Act sets narrow conditions under which a
regulated activity must be permitted on municipally owned sites undergoing remediation in aquifer
protection areas.
Effective: July 1, 2010, except for the provisions establishing the working group, which are effective
upon passage; the provisions concerning expanded us of the Urban Site Remediation Fund, which are
effective Oct. 1, 2010; and the provisions for fixing property tax assessments, which are effective July 1,
2010 and applicable to assessment years beginning on or after Oct. 1, 2010.

PA 10-77 (SB-13): AN ACT CONCERNING REAL ESTATE APPRAISAL MANAGEMENT COMPANIES


Requires appraisal management companies to register with the Department of Consumer Protection
before doing business in Connecticut, and pay a $1,000 application fee. Effective: Oct. 1, 2010.

 Transportation
CBIA Contact: Eric Brown (860-244-1926; eric.brown@cbia.com)

PA 10-98 (SB-107): AN ACT ESTABLISHING A BRADLEY DEVELOPMENT ZONE


Establishes an economic development zone surrounding Bradley International Airport that includes
sections of Windsor Locks, Suffield, East Granby and Windsor. It makes available to the zone a variety
of existing 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. Property tax
exemptions apply to assessment years beginning on or after Oct. 1, 2012, and the corporation business
tax credit applies to income years beginning on or after Jan. 1, 2013.

PA 10-110 (SB-414) AN ACT MAKING REVISIONS TO STATUTES CONCERNING THE DEPARTMENT OF


MOTOR VEHICLES
Makes a variety of changes to statutes administered by the Department of Motor Vehicles concerning
school buses, parking for persons with disabilities, fees and penalties. Some of the provisions particularly
applicable to the business community include:

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.

 Major Vetoes Sustained


Summary: Gov. Rell vetoed several measures this year, of which the legislature overturned six. Of
greatest concern to the business community were the following bills that lawmakers passed and the
Governor correctly vetoed. The legislature was not able to overturn these vetoes.

PA 10-45 (SB-1): AN ACT CONCERNING THE PRESERVATION AND CREATION OF JOBS IN


CONNECTICUT
Vetoed by the Governor

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

 Index of key words


DRS-------------------------------------------------------- 4
A
DPUC --------------------------------------------------------27
Angel investor -------------------------------------------4, 8
E
B
Economic----------------------5, 8, 9, 10, 12, 13, 17, 26
Biodiesel --------------------------------------------------- 14 education --------------------------- 7, 10, 11, 12, 14, 22
Bond Electricity----------------------------------------------13, 27
bonds ---------------------------------------------2, 3, 26 energy --------------------------------------- 3, 4, 8, 13, 14
Bradley International Airport---------------------- 8, 26
Brownfield -------------------------------------- 16, 17, 25 F
Budget------------------------------------------- 2, 3, 13, 18
Family and Medical Leave Act
FMLA ----------------------------------------------------24
C
Film ----------------------------------------------------- 2, 5, 9
Cash balance------------------------------------------------ 6 Freedom of Information Act --------------------------- 3
C-corporations ------------------------------------------4, 8
Competitiveness ----------------------------------------5, 9 G
Connecticut Housing Finance Authority (CHFA) -- 2,
Grants----------------------------------2, 9, 11, 14, 16, 24
18
Contracts ---------------------------------- 2, 7, 14, 15, 21 H
Conveyance tax -------------------------------------------- 3
Conveyances------------------------------------------------ 3 Health------------------------------------------4, 20, 21, 22
Corporation ---------------------------------- 2, 5, 7, 9, 26 Health care system --------------------------------------20
Court--------------------------------------------------- 24, 25
I
courts --------------------------------------------------- 24
Insurance------- 2, 5, 9, 16, 18, 20, 21, 22, 23, 25, 26
D
J
Database----------------------------------------------------- 2
Department of Consumer Protection --------- 14, 26 Job
DCP ------------------------------------------------------ 18 jobs ---------------- 4, 7, 8, 9, 10, 12, 15, 21, 23, 27
Department of Economic & Community
Development L
DECD -------------------------------------------- 4, 16, 25 Loan
Department of Education ------------------------ 11, 12 loans ---------------------------------------------2, 4, 7, 8
Department of Environmental Protection
DEP ------------------------------ 13, 14, 15, 16, 17, 19 M
Department of Higher Education
Mandates -------------------------------------2, 18, 20, 22
DHE------------------------------------------------------ 12
Municipal ------------------------------------------------ 3, 7
Department of Motor Vehicles
municipalities-- 2, 3, 5, 6, 8, 9, 15, 16, 22, 24, 25,
DMV----------------------------------------------------- 26
26
Department of Public Health ------------------------- 21
Department of Revenue Services

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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

Reform ---------------------------------------- 4, 11, 13, 20 Unemployment Trust Fund --------------------------- 24


reforms ------------------------------------------------- 10 Uniform Administrative Procedure Act ------------ 24

S V

School -------------------------------------- 4, 7, 11, 12, 26 Vetoed -------------------------------------------------13, 27


Second Injury Fund-------------------------------------- 23 Violence --------------------------------------------------- 24
Small employer------------------------------------------- 20 Vocational-technical--------------------------------11, 12
State expenditures ----------------------------------------2
State Labor Department ------------------------------- 23

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