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General Assembly Governor's Bill No. 6443
January Session, 2021
LCO No. 3267
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
Request of the Governor Pursuant
to Joint Rule 9
AN ACT CONCERNING RE VENUE ITEMS TO IMPLEMENT THE
GOVERNOR'S BUDGET.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 1-1j of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2022): 2
(a) Each state agency, as defined in section 4-166, shall accept 3
payment in cash or by check, draft or money order for any license issued 4
by such agency pursuant to the provisions of the general statutes. 5
(b) Except as [otherwise] provided by any other provision of the 6
general statutes, the Secretary of the Office of Policy and Management 7
may authorize any state agency [(1)] to accept payment of any fee, cost 8
or fine payable to such agency by means of a credit card, charge card or 9
debit card [,] or an electronic payment service, [and (2) to charge a 10
service fee for any such payment made by credit card, charge card or 11
debit card or an electronic payment service] provided each state agency 12
that accepts payment by means of a credit card, charge card or debit 13 Governor's Bill No. 6443
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card shall charge the payor using such card a service fee, except that 14
such service fee may be waived by such state agency for a category of 15
fee, cost or fine, if such waiver has been approved by said secretary. 16
[Such] 17
(c) (1) Any service fee imposed pursuant to subsection (b) of this 18
section shall [be (A) related to] (A) be for the purpose of defraying the 19
cost of service, (B) [uniform for all credit cards, charge cards and debit 20
cards accepted] not exceed any charge by the credit card, charge card or 21
debit card issuer or processor, including any discount rate, and (C) be 22
applied only when allowed by the operating rules and regulations of the 23
credit card, charge card or debit card issuer or processor involved or 24
when authorized in writing by such issuer or processor. 25
(2) Each state agency that charges a service fee pursuant to this 26
section or any other provision of the general statutes shall disclose such 27
service fee to a payor prior to the imposition of such service fee. Such 28
disclosure shall be made in accordance with any requirements for 29
disclosure set forth by the card issuer or processor. 30
(d) Payments by credit card, charge card, debit card or an electronic 31
payment service shall be made at such times and under such conditions 32
as the secretary may prescribe in regulations adopted in accordance 33
with the provisions of chapter 54. 34
(e) Payment of a fee, cost or fine, and any applicable service fee, by 35
credit card, charge card, debit card or an electronic payment service 36
shall constitute full payment of such fee, cost, fine or service fee, 37
regardless of any discount applied by a credit card company. 38
Sec. 2. Subsection (g) of section 3-99a of the general statutes is 39
repealed and the following is substituted in lieu thereof (Effective July 1, 40
2022): 41
(g) The Secretary of the State may allow remittances to be in the form 42
of a credit card account number and an authorization to draw upon a 43
specified credit card account, at such time and under such conditions as 44 Governor's Bill No. 6443
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the Secretary may prescribe. Remittances in the form of an authorization 45
to draw upon a specified credit card account shall include an amount 46
for purposes of paying the discount rate associated with drawing upon 47
the credit card account, unless the remittances are drawn on an account 48
with a financial institution that agrees to add the number to the credit 49
card holder's billing, in which event the remittances drawn shall not 50
include an amount for purposes of paying the discount rate associated 51
with the drawing upon the credit card account. 52
Sec. 3. Section 14-11i of the general statutes is repealed and the 53
following is substituted in lieu thereof (Effective July 1, 2022): 54
The Commissioner of Motor Vehicles may allow the payment of any 55
fee specified in this chapter or chapter 247 by means of a credit card and 56
[may] shall charge each payor a service fee for any payment made by 57
means of a credit card. The fee shall not exceed any charge by the credit 58
card issuer or by its authorized agent, including any discount rate. 59
Payments by credit card shall be made under such conditions as the 60
commissioner may prescribe, except that the commissioner shall 61
determine the rate or amount of the service fee for any such credit card 62
in accordance with subsection (c) of section 1-1j, as amended by this act. 63
Such service fee may be waived by the commissioner for a category of 64
fee if such waiver has been approved by the Secretary of the Office of 65
Policy and Management pursuant to subsection (b) of section 1-1j, as 66
amended by this act. If any charge with respect to payment of a fee by 67
means of a credit card is not authorized by such issuer or its authorized 68
agent, the commissioner shall assess the payor the fee specified in 69
subsection (f) of section 14-50. 70
Sec. 4. Subsection (g) of section 19a-88 of the general statutes is 71
repealed and the following is substituted in lieu thereof (Effective July 1, 72
2022): 73
(g) (1) The Department of Public Health shall administer a secure on-74
line license renewal system for persons holding a license to practice 75
medicine or surgery under chapter 370, dentistry under chapter 379, 76 Governor's Bill No. 6443
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nursing under chapter 378 or nurse-midwifery under chapter 377. The 77
department shall require such persons to renew their licenses using the 78
on-line renewal system and to pay professional services fees on-line by 79
means of a credit card or electronic transfer of funds from a bank or 80
credit union account, except in extenuating circumstances, including, 81
but not limited to, circumstances in which a licensee does not have 82
access to a credit card and submits a notarized affidavit affirming that 83
fact, the department may allow the licensee to renew his or her license 84
using a paper form prescribed by the department and pay professional 85
service fees by check or money order. 86
(2) The department shall charge a service fee for each payment made 87
by means of a credit card. The Commissioner of Public Health shall 88
determine the rate or amount of the service fee for any such credit card 89
in accordance with subsection (c) of section 1-1j, as amended by this act. 90
Such service fee may be waived by the commissioner for a category of 91
fee if such waiver has been approved by the Secretary of the Office of 92
Policy and Management pursuant to subsection (b) of section 1-1j, as 93
amended by this act. 94
Sec. 5. Section 45a-113b of the general statutes is repealed and the 95
following is substituted in lieu thereof (Effective July 1, 2022): 96
Each [court of probate] Probate Court may allow the payment of any 97
fees charged by such court by means of a credit card, charge card or 98
debit card. [and may] Such court shall charge the person making such 99
payment a service fee for any such payment made by means of any such 100
card. The fee shall not exceed any charge by the card issuer, including 101
any discount rate. The Probate Court Administrator shall determine the 102
rate or amount of the service fee for any such card in accordance with 103
subsection (c) of section 1-1j, as amended by this act. 104
Sec. 6. Section 51-193b of the general statutes is repealed and the 105
following is substituted in lieu thereof (Effective July 1, 2022): 106
Payment of any fees, costs, fines or other charges to the Judicial 107
Branch may be made by means of a credit card [,] and the payor [may] 108 Governor's Bill No. 6443
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shall be charged a service fee for any such payment made by means of 109
a credit card. The service fee shall not exceed any charge by the credit 110
card issuer, including any discount rate. Payments by credit card shall 111
be made at such time and under such conditions as the Office of the 112
Chief Court Administrator may prescribe, except that the Chief Court 113
Administrator shall determine the rate or amount of the service fee for 114
any such card in accordance with subsection (c) of section 1-1j, as 115
amended by this act. 116
Sec. 7. (NEW) (Effective from passage) (a) As used in this section, 117
"lottery draw game" means any game in which one or more numbers, 118
letters or symbols are randomly drawn at predetermined times, not to 119
exceed four times per day, from a range of numbers, letters or symbols, 120
and prizes are paid to players possessing winning plays, as set forth in 121
each game's official game rules. "Lottery draw game" does not include 122
keno, as defined in section 12-801 of the general statutes. 123
(b) The Connecticut Lottery Corporation shall establish a program to 124
sell lottery tickets for lottery draw games through the corporation's 125
Internet web site, online service or mobile application. The program 126
shall, at a minimum: 127
(1) Verify that a person who establishes an online lottery account to 128
purchase a lottery ticket through such program is eighteen years of age 129
or older and is located in the state; 130
(2) Restrict the sale of lottery tickets to transactions initiated and 131
received within the state; 132
(3) Allow a person to establish an online lottery account and use a 133
credit card, debit card or verified bank account to purchase lottery 134
tickets through such account; 135
(4) Limit a person with an online lottery account to using only one 136
debit card or credit card; 137
(5) Provide that any money in an online lottery account belongs solely 138 Governor's Bill No. 6443
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to the owner of the account and may be withdrawn by the owner; 139
(6) Establish a voluntary self-exclusion process to allow a person to 140
exclude himself or herself from establishing an online lottery account or 141
purchasing a lottery ticket through such program; 142
(7) At least every five years, be the subject of an independent review 143
for responsible play as assessed by industry standards; 144
(8) Provide responsible gambling and problem gambling 145
information; 146
(9) Limit the amount of money a person may (A) deposit into an 147
online lottery account, and (B) spend per day through such program; 148
and 149
(10) Display the results of lottery draw game drawings on the 150
corporation's Internet web site, online service or mobile application but 151
the lottery draw game drawings may not take place on the corporation's 152
Internet web site, online service or mobile application. 153
(c) (1) The Connecticut Lottery Corporation may not establish a 154
program pursuant to this section until the Commissioner of Consumer 155
Protection adopts regulations in accordance with the provisions of 156
chapter 54 of the general statutes to implement the provisions of this 157
section and assure the integrity of such program. 158
(2) The corporation shall submit to the commissioner official game 159
rules for each lottery draw game the corporation seeks to offer through 160
the program. The corporation may not offer a lottery draw game 161
through the program until the commissioner approves, in writing, the 162
official rules for such game. 163
(d) After establishing the program pursuant to this section, the 164
corporation: (1) May implement initiatives to promote the purchase of 165
lottery tickets through lottery sales agents; (2) may implement initiatives 166
to promote the purchase of both online lottery draw games and the 167
purchase of lottery tickets through lottery sales agents; and (3) shall 168 Governor's Bill No. 6443
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conduct a public awareness campaign to educate the public regarding 169
responsible gambling and to inform the public of the programs available 170
for the prevention, treatment and rehabilitation of compulsive gamblers 171
in the state. 172
Sec. 8. Subdivision (4) of subsection (b) of section 12-806 of the general 173
statutes is repealed and the following is substituted in lieu thereof 174
(Effective from passage): 175
(4) (A) To introduce new lottery games, modify existing lottery 176
games, utilize existing and new technologies, determine distribution 177
channels for the sale of lottery tickets, introduce keno pursuant to signed 178
agreements with the Mashantucket Pequot Tribe and the Mohegan 179
Tribe of Indians of Connecticut, in accordance with section 12-806c, and, 180
to the extent specifically authorized by regulations adopted by the 181
Department of Consumer Protection pursuant to chapter 54, introduce 182
instant ticket vending machines, kiosks and automated wagering 183
systems or machines, with all such rights being subject to regulatory 184
oversight by the Department of Consumer Protection; [, except that the 185
corporation shall not offer any interactive on-line lottery games, 186
including on-line video lottery games for promotional purposes;] and 187
(B) (1) To sell lottery draw games through the corporation's Internet 188
web site, online service or mobile application in accordance with section 189
7 of this act and to advertise lottery games on the corporation's Internet 190
web site, online service or mobile application; and (2) to offer interactive 191
lottery games for promotional purposes through the corporation's 192
Internet web site, online service or mobile application, provided (A) 193
there is no cost to play such interactive lottery games for promotional 194
purposes, (B) no prizes or rewards of any monetary value are awarded 195
for playing such interactive lottery games for promotional purposes, 196
and (C) no lottery ticket purchase is required to play such interactive 197
lottery games for promotional purposes. The corporation shall not offer 198
any interactive lottery game, including for promotional purposes, 199
except as expressly permitted pursuant to this subdivision; 200 Governor's Bill No. 6443
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Sec. 9. Subdivision (13) of subsection (b) of section 12-806 of the 201
general statutes is repealed and the following is substituted in lieu 202
thereof (Effective from passage): 203
(13) To pay the Office of Policy and Management to reimburse the 204
Department of Consumer Protection for the reasonable and necessary 205
costs arising from the department's regulatory oversight of the 206
corporation, in accordance with the assessment made pursuant to 207
section 12-806b, including costs arising directly or indirectly from the 208
licensing of lottery agents, performance of state police background 209
investigations, and the implementation of subsection (b) of section 12-210
562 and sections 12-563a, 12-568a, 12-569, 12-570, 12-570a and 12-800 to 211
12-818, inclusive, as amended by this act, and section 7 of this act; 212
Sec. 10. Section 12-810 of the general statutes is repealed and the 213
following is substituted in lieu thereof (Effective from passage): 214
(a) The Freedom of Information Act, as defined in section 1-200, shall 215
apply to all actions, meetings and records of the corporation, except (1) 216
where otherwise limited by subsection (c) of this section as to new 217
lottery games and serial numbers of unclaimed lottery tickets, [and] (2) 218
with respect to financial, credit and proprietary information submitted 219
by any person to the corporation in connection with any proposal to 220
provide goods, services or professional advice to the corporation as 221
provided in section 12-815, and (3) where otherwise limited by 222
subsection (d) of this section as to information submitted by any person 223
to the corporation regarding such person's participation in the 224
corporation's voluntary self-exclusion process established pursuant to 225
subdivision (6) of subsection (b) of section 7 of this act. 226
(b) The records of proceedings as provided in subsection (a) of section 227
12-805 shall be subject to disclosure pursuant to the provisions of 228
subsection (a) of section 1-210. 229
(c) Any new lottery game and the procedures for such game, until the 230
game is publicly announced by the corporation, and any serial number 231
of an unclaimed lottery ticket shall not be deemed public records, as 232 Governor's Bill No. 6443
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defined in section 1-200, and shall not be available to the public under 233
the provisions of section 1-210. The president shall submit a fiscal note 234
prepared by the corporation with respect to the procedures for a new 235
lottery game to the joint standing committees of the General Assembly 236
having cognizance of matters relating to finance, revenue, bonding and 237
public safety after approval of such game by the board. 238
(d) The name and any personally identifying information of a person 239
who is participating or has participated in the corporation's voluntary 240
self-exclusion process shall not be deemed public records, as defined in 241
section 1-200, and shall not be available to the public under the 242
provisions of section 1-210. The president may disclose the name and 243
any records of such person if such person claims a winning lottery ticket 244
from the use of the online lottery program established pursuant to 245
section 7 of this act. 246
Sec. 11. Section 12-818 of the general statutes is repealed and the 247
following is substituted in lieu thereof (Effective from passage): 248
[For each of the fiscal years ending June 30, 2010, and June 30, 2011, 249
the Connecticut Lottery Corporation shall transfer one million nine 250
hundred thousand dollars of the revenue received from the sale of 251
lottery tickets to the chronic gamblers treatment rehabilitation account 252
created pursuant to section 17a-713. For the fiscal years ending June 30, 253
2012, to June 30, 2013, inclusive, the Connecticut Lottery Corporation 254
shall transfer one million nine hundred thousand dollars of the revenue 255
received from the sale of lottery tickets to the chronic gamblers 256
treatment rehabilitation account created pursuant to section 17a-713.] 257
For the fiscal [year] years ending June 30, 2014, [and each fiscal year 258
thereafter, the Connecticut Lottery Corporation] to June 30, 2021, 259
inclusive, the corporation shall transfer two million three hundred 260
thousand dollars of the revenue received from the sale of lottery tickets 261
to the chronic gamblers treatment rehabilitation account created 262
pursuant to section 17a-713. For the fiscal year ending June 30, 2022, and 263
each fiscal year thereafter, the corporation shall transfer two million four 264
hundred thousand dollars of the revenue received from the sale of 265 Governor's Bill No. 6443
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lottery tickets to the chronic gamblers treatment rehabilitation account. 266
Sec. 12. Section 52-553 of the general statutes is repealed and the 267
following is substituted in lieu thereof (Effective from passage): 268
All wagers, and all contracts and securities of which the whole or any 269
part of the consideration is money or other valuable thing won, laid or 270
bet, at any game, horse race, sport or pastime, and all contracts to repay 271
any money knowingly lent at the time and place of such game, race, 272
sport or pastime, to any person so gaming, betting or wagering, or to 273
repay any money lent to any person who, at such time and place, so 274
pays, bets or wagers, shall be void, provided nothing in this section shall 275
(1) affect the validity of any negotiable instrument held by any person 276
who acquired the same for value and in good faith without notice of 277
illegality in the consideration, (2) apply to the sale of a raffle ticket 278
pursuant to section 7-172, (3) apply to the participation in the program 279
established by the Connecticut Lottery Corporation pursuant to section 280
7 of this act, or [(3)] (4) apply to any wager or contract otherwise 281
authorized by law. 282
Sec. 13. Section 52-554 of the general statutes is repealed and the 283
following is substituted in lieu thereof (Effective from passage): 284
Any person who, by playing at any game, or betting on the sides or 285
hands of such as play at any game, excluding any game permitted under 286
chapter 226 or any activity not prohibited under the provisions of 287
sections 53-278a to 53-278g, inclusive, loses the sum or value of one 288
dollar in the whole and pays or delivers the same or any part thereof, 289
may, within three months next following, recover from the winner the 290
money or the value of the goods so lost and paid or delivered, with costs 291
of suit in a civil action, without setting forth the special matter in his 292
complaint. If the defendant refuses to testify, if called upon in such 293
action, relative to the discovery of the property so won, he shall be 294
defaulted; but no evidence so given by him shall be offered against him 295
in any criminal prosecution. Nothing in this section shall preclude any 296
person from using a credit card to participate in the program established 297 Governor's Bill No. 6443
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by the Connecticut Lottery Corporation pursuant to section 7 of this act. 298
Sec. 14. Section 12-263p of the general statutes is repealed and the 299
following is substituted in lieu thereof (Effective July 1, 2021, and 300
applicable to calendar quarters commencing on or after July 1, 2021): 301
As used in sections 12-263p to 12-263x, inclusive, as amended by this 302
act, and section 15 of this act, unless the context otherwise requires: 303
(1) "Commissioner" means the Commissioner of Revenue Services; 304
(2) "Department" means the Department of Revenue Services; 305
(3) "Taxpayer" means any health care provider subject to any tax or 306
fee under section 12-263q, [or] 12-263r or section 15 of this act; 307
(4) "Health care provider" means an individual or entity that receives 308
any payment or payments for health care items or services provided; 309
(5) "Gross receipts" means the amount received, whether in cash or in 310
kind, from patients, third-party payers and others for taxable health care 311
items or services provided by the taxpayer in the state, including 312
retroactive adjustments under reimbursement agreements with third-313
party payers, without any deduction for any expenses of any kind; 314
(6) "Net revenue" means gross receipts less payer discounts, charity 315
care and bad debts, to the extent the taxpayer previously paid tax under 316
section 12-263q or section 15 of this act, on the amount of such bad debts; 317
(7) "Payer discounts" means the difference between a health care 318
provider's published charges and the payments received by the health 319
care provider from one or more health care payers for a rate or method 320
of payment that is different than or discounted from such published 321
charges. "Payer discounts" does not include charity care or bad debts; 322
(8) "Charity care" means free or discounted health care services 323
rendered by a health care provider to an individual who cannot afford 324
to pay for such services, including, but not limited to, health care 325 Governor's Bill No. 6443
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services provided to an uninsured patient who is not expected to pay all 326
or part of a health care provider's bill based on income guidelines and 327
other financial criteria set forth in the general statutes or in a health care 328
provider's charity care policies on file at the office of such provider. 329
"Charity care" does not include bad debts or payer discounts; 330
(9) "Received" means "received" or "accrued", construed according to 331
the method of accounting customarily employed by the taxpayer; 332
(10) "Hospital" means any health care facility, as defined in section 333
19a-630, that (A) is licensed by the Department of Public Health as a 334
short-term general hospital; (B) is maintained primarily for the care and 335
treatment of patients with disorders other than mental diseases; (C) 336
meets the requirements for participation in Medicare as a hospital; and 337
(D) has in effect a utilization review plan, applicable to all Medicaid 338
patients, that meets the requirements of 42 CFR 482.30, as amended from 339
time to time, unless a waiver has been granted by the Secretary of the 340
United States Department of Health and Human Services; 341
(11) "Inpatient hospital services" means, in accordance with federal 342
law, all services that are (A) ordinarily furnished in a hospital for the 343
care and treatment of inpatients; (B) furnished under the direction of a 344
physician or dentist; and (C) furnished in a hospital. "Inpatient hospital 345
services" does not include skilled nursing facility services and 346
intermediate care facility services furnished by a hospital with swing 347
bed approval; 348
(12) "Inpatient" means a patient who has been admitted to a medical 349
institution as an inpatient on the recommendation of a physician or 350
dentist and who (A) receives room, board and professional services in 351
the institution for a twenty-four-hour period or longer, or (B) is expected 352
by the institution to receive room, board and professional services in the 353
institution for a twenty-four-hour period or longer, even if the patient 354
does not actually stay in the institution for a twenty-four-hour period or 355
longer; 356
(13) "Outpatient hospital services" means, in accordance with federal 357 Governor's Bill No. 6443
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law, preventive, diagnostic, therapeutic, rehabilitative or palliative 358
services that are (A) furnished to an outpatient; (B) furnished by or 359
under the direction of a physician or dentist; and (C) furnished by a 360
hospital; 361
(14) "Outpatient" means a patient of an organized medical facility or 362
a distinct part of such facility, who is expected by the facility to receive, 363
and who does receive, professional services for less than a twenty-four-364
hour period regardless of the hour of admission, whether or not a bed 365
is used or the patient remains in the facility past midnight; 366
(15) "Nursing home" means any licensed chronic and convalescent 367
nursing home or a rest home with nursing supervision; 368
(16) "Intermediate care facility for individuals with intellectual 369
disabilities" or "intermediate care facility" means a residential facility for 370
persons with intellectual disability that is certified to meet the 371
requirements of 42 CFR 442, Subpart C, as amended from time to time, 372
and, in the case of a private facility, licensed pursuant to section 17a-227; 373
(17) "Medicare day" means a day of nursing home care service 374
provided to an individual who is eligible for payment, in full or with a 375
coinsurance requirement, under the federal Medicare program, 376
including fee for service and managed care coverage; 377
(18) "Nursing home resident day" means a day of nursing home care 378
service provided to an individual and includes the day a resident is 379
admitted and any day for which the nursing home is eligible for 380
payment for reserving a resident's bed due to hospitalization or 381
temporary leave and for the date of death. For purposes of this 382
subdivision, a day of nursing home care service shall be the period of 383
time between the census-taking hour in a nursing home on two 384
successive calendar days. "Nursing home resident day" does not include 385
a Medicare day or the day a resident is discharged; 386
(19) "Intermediate care facility resident day" means a day of 387
intermediate care facility residential care provided to an individual and 388 Governor's Bill No. 6443
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includes the day a resident is admitted and any day for which the 389
intermediate care facility is eligible for payment for reserving a 390
resident's bed due to hospitalization or temporary leave and for the date 391
of death. For purposes of this subdivision, a day of intermediate care 392
facility residential care shall be the period of time between the census-393
taking hour in a facility on two successive calendar days. "Intermediate 394
care facility resident day" does not include the day a resident is 395
discharged; 396
(20) "Ambulatory surgical center" means any distinct entity that (A) 397
operates exclusively for the purpose of providing surgical services to 398
patients not requiring hospitalization and in which the expected 399
duration of services would not exceed twenty-four hours following an 400
admission, (B) has an agreement with the Centers for Medicare and 401
Medicaid Services to participate in Medicare as an ambulatory surgical 402
center, and (C) meets the general and specific conditions for 403
participation in Medicare set forth in 42 CFR Part 416, Subparts B and 404
C, as amended from time to time; 405
(21) "Ambulatory surgical center services" means, in accordance with 406
42 CFR 433.56(a)(9), as amended from time to time, services for which 407
payment is received from any payer that, if such services were furnished 408
under the federal Medicare program, (A) would be furnished in 409
connection with covered surgical procedures performed in an 410
ambulatory surgical center as provided in 42 CFR 416.164(a), as 411
amended from time to time, and (B) for which payment would be 412
included in the ambulatory surgical center payment established under 413
42 CFR 416.171, as amended from time to time, for the covered surgical 414
procedure. "Ambulatory surgical center services" includes facility 415
services only and does not include surgical procedures, physicians' 416
services, anesthetists' services, radiology services, diagnostic services or 417
ambulance services, if such procedures or services would be reimbursed 418
separately from facility services under 42 CFR 416.164(a), as amended 419
from time to time; 420
[(20)] (22) "Medicaid" means the program operated by the 421 Governor's Bill No. 6443
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Department of Social Services pursuant to section 17b-260 and 422
authorized by Title XIX of the Social Security Act, as amended from time 423
to time; and 424
[(21)] (23) "Medicare" means the program operated by the Centers for 425
Medicare and Medicaid Services in accordance with Title XVIII of the 426
Social Security Act, as amended from time to time. 427
Sec. 15. (NEW) (Effective July 1, 2021, and applicable to calendar quarters 428
commencing on or after July 1, 2021) (a) For each calendar quarter 429
commencing on or after July 1, 2021, each ambulatory surgical center 430
shall pay a tax on the total net revenue received by each ambulatory 431
surgical center for the provision of ambulatory surgical center services. 432
The tax imposed by this section shall be six per cent, except that revenue 433
from Medicaid payments and Medicare payments received by the 434
ambulatory surgical center for the provision of ambulatory surgical 435
center services shall be exempt from the tax. 436
(b) (1) Net revenue derived from providing a health care item or 437
service to a patient shall be taxed only one time under this section and 438
section 12-263q of the general statutes. 439
(2) Net revenue from each hospital-owned ambulatory surgical 440
center shall be considered net revenue of the hospital and shall be 441
reported as net revenue from inpatient hospital services or outpatient 442
hospital services to the extent such net revenue is derived from services 443
that fall within the scope of inpatient hospital services or outpatient 444
hospital services. As used in this subsection, "hospital-owned 445
ambulatory surgical center" includes only those ambulatory surgical 446
centers that are considered departments of the owner-hospital and that 447
have provider-based status in accordance with 42 CFR 413.65, as 448
amended from time to time. If an ambulatory surgical center is owned 449
by a hospital but is not considered to be a department of the hospital or 450
does not have provider-based status in accordance with 42 CFR 413.65, 451
as amended from time to time, the net revenue of such ambulatory 452
surgical center shall not be considered net revenue of the owner-hospital 453 Governor's Bill No. 6443
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and such ambulatory surgical center shall be required to file and pay tax 454
for any net revenue received from the provision of ambulatory surgical 455
center services. 456
Sec. 16. Section 12-263i of the general statutes is repealed and the 457
following is substituted in lieu thereof (Effective July 1, 2021): 458
(a) As used in this section: 459
(1) "Ambulatory surgical center" means an entity included within the 460
definition of said term that is set forth in 42 CFR 416.2 and that is 461
licensed by the Department of Public Health as an outpatient surgical 462
facility, and any other ambulatory surgical center that is Medicare 463
certified; 464
(2) "Commissioner" means the Commissioner of Revenue Services; 465
and 466
(3) "Department" means the Department of Revenue Services. 467
(b) (1) For each calendar quarter commencing on or after October 1, 468
2015, but prior to July 1, 2021, there is hereby imposed a tax on each 469
ambulatory surgical center in this state to be paid each calendar quarter. 470
The tax imposed by this section shall be at the rate of six per cent of the 471
gross receipts of each ambulatory surgical center, except that: 472
(A) Prior to July 1, 2019, such tax shall not be imposed on any amount 473
of such gross receipts that constitutes either (i) the first million dollars 474
of gross receipts of the ambulatory surgical center in the applicable fiscal 475
year, or (ii) net revenue of a hospital that is subject to the tax imposed 476
under section 12-263q; and 477
(B) On and after July 1, 2019, but prior to July 1, 2021, such tax shall 478
not be imposed on any amount of such gross receipts that constitutes 479
any of the following: (i) The first million dollars of gross receipts of the 480
ambulatory surgical center in the applicable fiscal year, excluding 481
Medicaid and Medicare payments, (ii) net revenue of a hospital that is 482
subject to the tax imposed under section 12-263q, (iii) Medicaid 483 Governor's Bill No. 6443
LCO No. 3267 17 of 79
payments received by the ambulatory surgical center, and (iv) Medicare 484
payments received by the ambulatory surgical center. 485
(2) Nothing in this section shall prohibit an ambulatory surgical 486
center from seeking remuneration for the tax imposed by this section. 487
(3) Each ambulatory surgical center shall, on or before January 31, 488
2016, and thereafter on or before the last day of January, April, July and 489
October of each year until and including July 31, 2021, render to the 490
commissioner a return, on forms prescribed or furnished by the 491
commissioner, reporting the name and location of such ambulatory 492
surgical center, the entire amount of gross receipts generated by such 493
ambulatory surgical center during the calendar quarter ending on the 494
last day of the preceding month and such other information as the 495
commissioner deems necessary for the proper administration of this 496
section. The tax imposed under this section shall be due and payable on 497
the due date of such return. Each ambulatory surgical center shall be 498
required to file such return electronically with the department and to 499
make payment of such tax by electronic funds transfer in the manner 500
provided by chapter 228g, regardless of whether such ambulatory 501
surgical center would have otherwise been required to file such return 502
electronically or to make such tax payment by electronic funds transfer 503
under the provisions of chapter 228g. 504
(c) Whenever the tax imposed under this section is not paid when 505
due, a penalty of ten per cent of the amount due and unpaid or fifty 506
dollars, whichever is greater, shall be imposed and interest at the rate of 507
one per cent per month or fraction thereof shall accrue on such tax from 508
the due date of such tax until the date of payment. 509
(d) The provisions of sections 12-548, 12-550 to 12-554, inclusive, and 510
12-555a shall apply to the provisions of this section in the same manner 511
and with the same force and effect as if the language of said sections had 512
been incorporated in full into this section and had expressly referred to 513
the tax imposed under this section, except to the extent that any 514
provision is inconsistent with a provision in this section. 515 Governor's Bill No. 6443
LCO No. 3267 18 of 79
(e) For the fiscal [year] years ending June 30, 2016, [and each fiscal 516
year thereafter] to June 30, 2021, inclusive, the Comptroller is authorized 517
to record as revenue for each fiscal year the amount of tax imposed 518
under the provisions of this section prior to the end of each fiscal year 519
and which tax is received by the Commissioner of Revenue Services not 520
later than five business days after the last day of July immediately 521
following the end of each fiscal year. 522
Sec. 17. Section 12-263s of the general statutes is repealed and the 523
following is substituted in lieu thereof (Effective July 1, 2021, and 524
applicable to calendar quarters commencing on or after July 1, 2021): 525
(a) No tax credit or credits shall be allowable against any tax or fee 526
imposed under section 12-263q, [or] 12-263r or section 15 of this act. 527
Notwithstanding any other provision of the general statutes, any health 528
care provider that has been assigned tax credits under section 32-9t for 529
application against the taxes imposed under chapter 211a may further 530
assign such tax credits to another taxpayer or taxpayers one time, 531
provided such other taxpayer or taxpayers may claim such credit only 532
with respect to a taxable year for which the assigning health care 533
provider would have been eligible to claim such credit and such other 534
taxpayer or taxpayers may not further assign such credit. The assigning 535
health care provider shall file with the commissioner information 536
requested by the commissioner regarding such assignments, including 537
but not limited to, the current holders of credits as of the end of the 538
preceding calendar year. 539
(b) (1) Each taxpayer doing business in this state shall, on or before 540
the last day of January, April, July and October of each year, render to 541
the commissioner a quarterly return, on forms prescribed or furnished 542
by the commissioner and signed by one of the taxpayer's principal 543
officers, stating specifically the name and location of such taxpayer, the 544
amount of its net patient revenue or resident days during the calendar 545
quarter ending on the last day of the preceding month and such other 546
information as the commissioner deems necessary for the proper 547
administration of this section and the state's Medicaid program. Except 548 Governor's Bill No. 6443
LCO No. 3267 19 of 79
as provided in subdivision (2) of this subsection, the taxes and fees 549
imposed under section 12-263q, [or] 12-263r or section 15 of this act shall 550
be due and payable on the due date of such return. Each taxpayer shall 551
be required to file such return electronically with the department and to 552
make such payment by electronic funds transfer in the manner provided 553
by chapter 228g, irrespective of whether the taxpayer would have 554
otherwise been required to file such return electronically or to make 555
such payment by electronic funds transfer under the provisions of said 556
chapter. 557
(2) (A) A taxpayer may file, on or before the due date of a payment of 558
tax or fee imposed under section 12-263q, [or] 12-263r or section 15 of 559
this act, a request for a reasonable extension of time for such payment 560
for reasons of undue hardship. Undue hardship shall be demonstrated 561
by a showing that such taxpayer is at substantial risk of defaulting on a 562
bond covenant or similar obligation if such taxpayer were to make 563
payment on the due date of the amount for which the extension is 564
requested. Such request shall be filed on forms prescribed by the 565
commissioner and shall include complete information of such 566
taxpayer's inability, due to undue hardship, to make payment of the tax 567
or fee on or before the due date of such payment. The commissioner 568
shall not grant any extension for a general statement of hardship by the 569
taxpayer or for the convenience of the taxpayer. 570
(B) The commissioner may grant an extension if the commissioner 571
determines an undue hardship exists. Such extension shall not exceed 572
three months from the original due date of the payment, except that the 573
commissioner may grant an additional extension not exceeding three 574
months from the initial extended due date of the payment (i) upon the 575
filing of a subsequent request by the taxpayer on or before the extended 576
due date of the payment, on forms prescribed by the commissioner, and 577
(ii) upon a showing of extraordinary circumstances, as determined by 578
the commissioner. 579
(3) If the commissioner grants an extension pursuant to subdivision 580
(2) of this subsection, no penalty shall be imposed and no interest shall 581 Governor's Bill No. 6443
LCO No. 3267 20 of 79
accrue during the period of time for which an extension is granted if the 582
taxpayer pays the tax or fee due on or before the extended due date of 583
the payment. If the taxpayer does not pay such tax or fee by the extended 584
due date, a penalty shall be imposed in accordance with subsection (c) 585
of this section and interest shall begin to accrue at a rate of one per cent 586
per month for each month or fraction thereof from the extended due 587
date of such tax or fee until the date of payment. 588
(c) (1) Except as provided in subdivision (2) of subsection (b) of this 589
section, if any taxpayer fails to pay the amount of tax or fee reported to 590
be due on such taxpayer's return within the time specified under the 591
provisions of this section, there shall be imposed a penalty equal to ten 592
per cent of such amount due and unpaid, or fifty dollars, whichever is 593
greater. The tax or fee shall bear interest at the rate of one per cent per 594
month or fraction thereof, from the due date of such tax or fee until the 595
date of payment. 596
(2) If any taxpayer has not made its return within one month of the 597
due date of such return, the commissioner may make such return at any 598
time thereafter, according to the best information obtainable and 599
according to the form prescribed. There shall be added to the tax or fee 600
imposed upon the basis of such return an amount equal to ten per cent 601
of such tax or fee, or fifty dollars, whichever is greater. The tax or fee 602
shall bear interest at the rate of one per cent per month or fraction 603
thereof, from the due date of such tax or fee until the date of payment. 604
(3) Subject to the provisions of section 12-3a, the commissioner may 605
waive all or part of the penalties provided under this subsection when 606
it is proven to the commissioner's satisfaction that the failure to pay any 607
tax or fee on time was due to reasonable cause and was not intentional 608
or due to neglect. 609
(4) The commissioner shall notify the Commissioner of Social 610
Services of any amount delinquent under this section and, upon receipt 611
of such notice, the Commissioner of Social Services shall deduct and 612
withhold such amount from amounts otherwise payable by the 613 Governor's Bill No. 6443
LCO No. 3267 21 of 79
Department of Social Services to the delinquent taxpayer. 614
(d) (1) Any person required under sections 12-263q to 12-263v, 615
inclusive, as amended by this act, or section 15 of this act to pay any tax 616
or fee, make a return, keep any records or supply any information, who 617
wilfully fails, at the time required by law, to pay such tax or fee, make 618
such return, keep such records or supply such information, shall, in 619
addition to any other penalty provided by law, be fined not more than 620
one thousand dollars or imprisoned not more than one year, or both. As 621
used in this subsection, "person" includes any officer or employee of a 622
taxpayer under a duty to pay such tax or fee, make such return, keep 623
such records or supply such information. Notwithstanding the 624
provisions of section 54-193, no person shall be prosecuted for a 625
violation of the provisions of this subsection committed on or after July 626
1, 1997, except within three years next after such violation has been 627
committed. 628
(2) Any person who wilfully delivers or discloses to the commissioner 629
or the commissioner's authorized agent any list, return, account, 630
statement or other document, known by such person to be fraudulent 631
or false in any material matter, shall, in addition to any other penalty 632
provided by law, be guilty of a class D felony. No person shall be 633
charged with an offense under both this subdivision and subdivision (1) 634
of this subsection in relation to the same tax period but such person may 635
be charged and prosecuted for both such offenses upon the same 636
information. 637
Sec. 18. Section 12-263t of the general statutes is repealed and the 638
following is substituted in lieu thereof (Effective July 1, 2021, and 639
applicable to calendar quarters commencing on or after July 1, 2021): 640
(a) (1) The commissioner may examine the records of any taxpayer 641
subject to a tax or fee imposed under section 12-263q, [or] 12-263r or 642
section 15 of this act, as the commissioner deems necessary. If the 643
commissioner determines from such examination that there is a 644
deficiency with respect to the payment of any such tax or fee due under 645 Governor's Bill No. 6443
LCO No. 3267 22 of 79
section 12-263q, [or] 12-263r or section 15 of this act, the commissioner 646
shall assess the deficiency in tax or fee, give notice of such deficiency 647
assessment to the taxpayer and make demand for payment. Such 648
amount shall bear interest at the rate of one per cent per month or 649
fraction thereof from the date when the original tax or fee was due and 650
payable. 651
(A) When it appears that any part of the deficiency for which a 652
deficiency assessment is made is due to negligence or intentional 653
disregard of the provisions of this section or regulations adopted 654
thereunder, there shall be imposed a penalty equal to ten per cent of the 655
amount of such deficiency assessment, or fifty dollars, whichever is 656
greater. 657
(B) When it appears that any part of the deficiency for which a 658
deficiency assessment is made is due to fraud or intent to evade the 659
provisions of this section or regulations adopted thereunder, there shall 660
be imposed a penalty equal to twenty-five per cent of the amount of such 661
deficiency assessment. No taxpayer shall be subject to more than one 662
penalty under this subdivision in relation to the same tax period. Not 663
later than thirty days after the mailing of such notice, the taxpayer shall 664
pay to the commissioner, in cash or by check, draft or money order 665
drawn to the order of the Commissioner of Revenue Services, any 666
additional amount of tax, penalty and interest shown to be due. 667
(2) Except in the case of a wilfully false or fraudulent return with 668
intent to evade the tax or fee, no assessment of additional tax or fee shall 669
be made after the expiration of more than three years from the date of 670
the filing of a return or from the original due date of a return, whichever 671
is later. Where, before the expiration of the period prescribed under this 672
subsection for the assessment of an additional tax or fee, a taxpayer has 673
consented, in writing, that such period may be extended, the amount of 674
such additional tax due may be determined at any time within such 675
extended period. The period so extended may be further extended by 676
subsequent consents, in writing, before the expiration of the extended 677
period. 678 Governor's Bill No. 6443
LCO No. 3267 23 of 79
(b) (1) The commissioner may enter into an agreement with the 679
Commissioner of Social Services delegating to the Commissioner of 680
Social Services the authority to examine the records and returns of any 681
taxpayer subject to any tax or fee imposed under section 12-263q, [or] 682
12-263r or section 15 of this act and to determine whether such tax has 683
been underpaid or overpaid. If such authority is so delegated, 684
examinations of such records and returns by the Commissioner of Social 685
Services and determinations by the Commissioner of Social Services that 686
such tax or fee has been underpaid or overpaid shall have the same 687
effect as similar examinations or determinations made by the 688
commissioner. 689
(2) The commissioner may enter into an agreement with the 690
Commissioner of Social Services in order to facilitate the exchange of 691
returns or return information necessary for the Commissioner of Social 692
Services to perform his or her responsibilities under this section and to 693
ensure compliance with the state's Medicaid program. 694
(3) The Commissioner of Social Services may engage an independent 695
auditor to assist in the performance of said commissioner's duties and 696
responsibilities under this subsection. Any reports generated by such 697
independent auditor shall be provided simultaneously to the 698
department and the Department of Social Services. 699
(c) (1) The commissioner may require all persons subject to a tax or 700
fee imposed under section 12-263q, [or] 12-263r or section 15 of this act 701
to keep such records as the commissioner may prescribe and may 702
require the production of books, papers, documents and other data, to 703
provide or secure information pertinent to the determination of the 704
taxes or fees imposed under section 12-263q, [or] 12-263r or section 15 of 705
this act and the enforcement and collection thereof. 706
(2) The commissioner or any person authorized by the commissioner 707
may examine the books, papers, records and equipment of any person 708
liable under the provisions of this section and may investigate the 709
character of the business of such person to verify the accuracy of any 710 Governor's Bill No. 6443
LCO No. 3267 24 of 79
return made or, if no return is made by the person, to ascertain and 711
determine the amount required to be paid. 712
(d) The commissioner may adopt regulations, in accordance with the 713
provisions of chapter 54, to implement the provisions of sections 12-714
263q to 12-263x, inclusive, as amended by this act. 715
Sec. 19. Section 12-263u of the general statutes is repealed and the 716
following is substituted in lieu thereof (Effective July 1, 2021, and 717
applicable to calendar quarters commencing on or after July 1, 2021): 718
(a) Any taxpayer subject to any tax or fee under section 12-263q, [or] 719
12-263r or section 15 of this act, believing that it has overpaid any tax or 720
fee due under said sections, may file a claim for refund, in writing, with 721
the commissioner not later than three years after the due date for which 722
such overpayment was made, stating the specific grounds upon which 723
the claim is founded. Failure to file a claim within the time prescribed in 724
this subsection shall constitute a waiver of any demand against the state 725
on account of overpayment. Within a reasonable time, as determined by 726
the commissioner, following receipt of such claim for refund, the 727
commissioner shall determine whether such claim is valid and, if so 728
determined, the commissioner shall notify the Comptroller of the 729
amount of such refund and the Comptroller shall draw an order on the 730
Treasurer in the amount thereof for payment to the taxpayer. If the 731
commissioner determines that such claim is not valid, either in whole or 732
in part, the commissioner shall mail notice of the proposed disallowance 733
in whole or in part of the claim to the taxpayer, which notice shall set 734
forth briefly the commissioner's findings of fact and the basis of 735
disallowance in each case decided in whole or in part adversely to the 736
taxpayer. Sixty days after the date on which it is mailed, a notice of 737
proposed disallowance shall constitute a final disallowance except only 738
for such amounts as to which the taxpayer has filed, as provided in 739
subsection (b) of this section, a written protest with the commissioner. 740
(b) On or before the sixtieth day after the mailing of the proposed 741
disallowance, the taxpayer may file with the commissioner a written 742 Governor's Bill No. 6443
LCO No. 3267 25 of 79
protest against the proposed disallowance in which the taxpayer sets 743
forth the grounds on which the protest is based. If a protest is filed, the 744
commissioner shall reconsider the proposed disallowance and, if the 745
taxpayer has so requested, may grant or deny the taxpayer or its 746
authorized representatives a hearing. 747
(c) The commissioner shall mail notice of the commissioner's 748
determination to the taxpayer, which notice shall set forth briefly the 749
commissioner's findings of fact and the basis of decision in each case 750
decided in whole or in part adversely to the taxpayer. 751
(d) The action of the commissioner on the taxpayer's protest shall be 752
final upon the expiration of one month from the date on which the 753
commissioner mails notice of the commissioner's determination to the 754
taxpayer, unless within such period the taxpayer seeks judicial review 755
of the commissioner's determination. 756
Sec. 20. Section 12-263v of the general statutes is repealed and the 757
following is substituted in lieu thereof (Effective July 1, 2021): 758
(a) Any taxpayer subject to any tax or fee under section 12-263q, [or] 759
12-263r or section 15 of this act that is aggrieved by the action of the 760
commissioner, the Commissioner of Social Services or an authorized 761
agent of said commissioners in fixing the amount of any tax, penalty, 762
interest or fee under sections 12-263q to 12-263t, inclusive, as amended 763
by this act, or section 15 of this act may apply to the commissioner, in 764
writing, not later than sixty days after the notice of such action is 765
delivered or mailed to such taxpayer, for a hearing and a correction of 766
the amount of such tax, penalty, interest or fee, setting forth the reasons 767
why such hearing should be granted and the amount by which such tax, 768
penalty, interest or fee should be reduced. The commissioner shall 769
promptly consider each such application and may grant or deny the 770
hearing requested. If the hearing request is denied, the taxpayer shall be 771
notified immediately. If the hearing request is granted, the 772
commissioner shall notify the applicant of the date, time and place for 773
such hearing. After such hearing, the commissioner may make such 774 Governor's Bill No. 6443
LCO No. 3267 26 of 79
order as appears just and lawful to the commissioner and shall furnish 775
a copy of such order to the taxpayer. The commissioner may, by notice 776
in writing, order a hearing on the commissioner's own initiative and 777
require a taxpayer or any other individual who the commissioner 778
believes to be in possession of relevant information concerning such 779
taxpayer to appear before the commissioner or the commissioner's 780
authorized agent with any specified books of account, papers or other 781
documents, for examination under oath. 782
(b) Any taxpayer subject to any tax or fee under section 12-263q, [or] 783
12-263r or section 15 of this act that is aggrieved because of any order, 784
decision, determination or disallowance of the commissioner made 785
under sections 12-263q to 12-263u, inclusive, as amended by this act, or 786
section 15 of this act or subsection (a) of this section may, not later than 787
thirty days after service of notice of such order, decision, determination 788
or disallowance, take an appeal therefrom to the superior court for the 789
judicial district of New Britain, which appeal shall be accompanied by a 790
citation to the commissioner to appear before said court. Such citation 791
shall be signed by the same authority and such appeal shall be 792
returnable at the same time and served and returned in the same 793
manner as is required in case of a summons in a civil action. The 794
authority issuing the citation shall take from the appellant a bond or 795
recognizance to the state of Connecticut, with surety, to prosecute the 796
appeal to effect and to comply with the orders and decrees of the court 797
in the premises. Such appeals shall be preferred cases, to be heard, 798
unless cause appears to the contrary, at the first session, by the court or 799
by a committee appointed by the court. Said court may grant such relief 800
as may be equitable and, if such tax or charge has been paid prior to the 801
granting of such relief, may order the Treasurer to pay the amount of 802
such relief, with interest at the rate of two-thirds of one per cent per 803
month or fraction thereof, to such taxpayer. If the appeal has been taken 804
without probable cause, the court may tax double or triple costs, as the 805
case demands and, upon all such appeals that are denied, costs may be 806
taxed against such taxpayer at the discretion of the court but no costs 807
shall be taxed against the state. 808 Governor's Bill No. 6443
LCO No. 3267 27 of 79
Sec. 21. Section 12-263x of the general statutes is repealed and the 809
following is substituted in lieu thereof (Effective July 1, 2021, and 810
applicable to calendar quarters commencing on or after July 1, 2021): 811
The amount of any tax, penalty, interest or fee, due and unpaid under 812
the provisions of sections 12-263q to 12-263v, inclusive, as amended by 813
this act, or section 15 of this act may be collected under the provisions 814
of section 12-35. The warrant provided under section 12-35 shall be 815
signed by the commissioner or the commissioner's authorized agent. 816
The amount of any such tax, penalty, interest or fee shall be a lien on the 817
real estate of the taxpayer from the last day of the month next preceding 818
the due date of such tax until such tax is paid. The commissioner may 819
record such lien in the records of any town in which the real estate of 820
such taxpayer is situated but no such lien shall be enforceable against a 821
bona fide purchaser or qualified encumbrancer of such real estate. When 822
any tax or fee with respect to which a lien has been recorded under the 823
provisions of this subsection has been satisfied, the commissioner shall, 824
upon request of any interested party, issue a certificate discharging such 825
lien, which certificate shall be recorded in the same office in which the 826
lien was recorded. Any action for the foreclosure of such lien shall be 827
brought by the Attorney General in the name of the state in the superior 828
court for the judicial district in which the property subject to such lien is 829
situated, or, if such property is located in two or more judicial districts, 830
in the superior court for any one such judicial district, and the court may 831
limit the time for redemption or order the sale of such property or make 832
such other or further decree as it judges equitable. For purposes of 833
section 12-39g, a fee under this section shall be treated as a tax. 834
Sec. 22. Section 3-114s of the general statutes is repealed and the 835
following is substituted in lieu thereof (Effective July 1, 2021): 836
At the close of each fiscal year, [commencing with the fiscal year 837
ending June 30, 2018,] the Comptroller is authorized to record as 838
revenue for each such fiscal year the amount of tax and fee imposed 839
under sections 12-263q to 12-263x, inclusive, as amended by this act, and 840
section 15 of this act, that is received by the Commissioner of Revenue 841 Governor's Bill No. 6443
LCO No. 3267 28 of 79
Services not later than five business days after the last day of July 842
immediately following the end of such fiscal year. 843
Sec. 23. Section 19a-37f of the general statutes is repealed and the 844
following is substituted in lieu thereof (Effective from passage): 845
(a) As used in this section: 846
(1) "Commissioner" means the Commissioner of Public Health, or the 847
commissioner's designee; 848
(2) "Community water system" means a public water system that 849
regularly serves at least twenty-five residents; 850
(3) "Consumer" has the same meaning as provided in section 25-32a; 851
(4) "Customer" means any (A) person, (B) firm, (C) corporation, (D) 852
company, (E) association, (F) governmental unit, except a state agency, 853
(G) lessee that, by the terms of a written lease or agreement, is 854
responsible for the water bill, or (H) owner of property, that receives 855
water service furnished by a water company; 856
(5) "Department" means the Department of Public Health; 857
(6) "Noncommunity water system" means a public water system that 858
serves at least twenty-five persons at least sixty days of the year and is 859
not a community water system; 860
(7) "Nontransient noncommunity water system" means a 861
noncommunity water system that regularly serves at least twenty-five 862
of the same persons over six months per year; 863
(8) "Public water system" means a water company that supplies 864
drinking water to fifteen or more consumers or twenty-five or more 865
persons daily at least sixty days of the year; 866
[(9) "Sanitary survey" means the review of a public water system by 867
the department to evaluate the adequacy of the public water system, its 868
sources of supply and operations and the distribution of safe drinking 869 Governor's Bill No. 6443
LCO No. 3267 29 of 79
water;] 870
[(10)] (9) "Service connection" means the service pipe from the water 871
main to the curb stop or adjacent to the street line or property line, but 872
does not include a service pipe used only for fire service or irrigation 873
purposes; and 874
[(11)] (10) "Water company" has the same meaning as provided in 875
section 25-32a. 876
(b) On or before August 1, 2019, and [August 1, 2020] and annually 877
thereafter, the department shall issue a statement, in such manner as the 878
department determines, to each water company that owns a community 879
water system or systems showing the number of service connections 880
and the source of such number each community water system or 881
systems has listed in the department's records as of the date of issuance 882
of the statement. For purposes of this subsection, the department shall 883
combine the number of service connections of all water systems owned 884
and operated by the same water company for a total count of service 885
connections. If any water company disagrees with the number of service 886
connections listed in such statement, the water company shall, not later 887
than thirty days after the date of issuance of such statement, report to 888
the department, in a form and manner prescribed by the department, 889
the accurate number of services connections the water company's 890
community water system or systems serve. 891
[(c) On or before October 1, 2019, and October 1, 2020, the 892
department, in consultation with the Office of Policy and Management, 893
shall post on the department's Internet web site (1) the staff and costs to 894
support the department's ability to maintain primacy under the federal 895
Safe Drinking Water Act, 42 USC 300f, et seq., as amended from time to 896
time, which costs, taking into consideration funding received from state 897
and federal sources, shall constitute the safe drinking water primacy 898
assessment for the current fiscal year, and (2) the assessment amounts 899
due, based on the posted costs and in accordance with subsection (d) of 900
this section.] 901 Governor's Bill No. 6443
LCO No. 3267 30 of 79
[(d)] (c) (1) For the fiscal years ending June 30, 2019, June 30, 2020, 902
and June 30, 2021, each water company that owns a community or 903
nontransient noncommunity water system or systems sh all pay 904
annually to the department a safe drinking water [primacy] assessment 905
amount in accordance with the following: (A) Each community water 906
system having less than fifty service connections and nontransient 907
noncommunity water system shall be assessed one hundred twenty-five 908
dollars; (B) each community water system having at least fifty but less 909
than one hundred service connections shall be assessed one hundred 910
fifty dollars; and (C) each community water system having at least one 911
hundred service connections shall be assessed an amount established by 912
the commissioner, not to exceed three dollars per service connection. 913
(2) For the fiscal year ending June 30, 2022, each water company that 914
owns a community or nontransient noncommunity water system or 915
systems shall pay to the department a safe drinking water assessment 916
amount in accordance with the following: (A) Each community water 917
system having less than fifty service connections and nontransient 918
noncommunity water system shall be assessed one hundred eighty 919
dollars; (B) each community water system having at least fifty but less 920
than one hundred service connections shall be assessed two hundred 921
sixteen dollars; and (C) each community water system having at least 922
one hundred service connections shall be assessed two dollars and sixty-923
nine cents per service connection. 924
(3) For the fiscal year ending June 30, 2023, and annually thereafter, 925
the commissioner shall, subject to the approval of the Secretary of the 926
Office of Policy and Management, adjust the amounts set forth in 927
subdivision (2) of this subsection on a pro rata basis to reflect the 928
weighted average of (A) the percentage increase applied to wages of the 929
engineering, scientific and technical bargaining unit, that constitutes a 930
general wage increase, and (B) the percentage change in the applicable 931
estimated fringe benefit rate as determined by the commissioner in the 932
same fiscal year, provided such percentages are adjusted to reflect the 933
fractional part of the fiscal year to which each change applies. On or 934
before October 1, 2022, and annually thereafter, the department shall 935 Governor's Bill No. 6443
LCO No. 3267 31 of 79
post the adjusted amounts on the department's Internet web site. The 936
commissioner shall assess each water company that owns a community 937
or nontransient noncommunity water system or systems the applicable 938
adjusted amount as posted by the department. 939
(4) For purposes of this [subdivision] subsection, a community water 940
system's service connections shall be determined in accordance with 941
subsection (b) of this section. 942
[(2)] (5) On or before January 1, [2020, and January 1, 2021] 2022, and 943
annually thereafter, the department shall issue an invoice, in such 944
manner as the department determines, to each water company that 945
owns a community or nontransient noncommunity water system or 946
systems for the amount due pursuant to subdivision (1), (2) or (3), as 947
applicable, of this subsection. Each such water company shall pay the 948
amount invoiced, in the same year the department issued in the invoice, 949
in accordance with the following schedule: 950
(A) A nontransient noncommunity water system shall pay one 951
hundred per cent of the amount invoiced on or before March first; 952
(B) A community water system having less than one hundred service 953
connections shall pay one hundred per cent of the amount invoiced on 954
or before May first; and 955
(C) A community water system having one hundred or more service 956
connections shall pay fifty per cent of the invoiced amount by March 957
first and the remaining fifty per cent of the amount invoiced by May 958
first. 959
[(e)] (d) If a water company is acquired by another water company 960
for any reason, the acquiring water company shall pay the amount due 961
to the department for the acquired water company's assessment under 962
subsection [(d)] (c) of this section. 963
[(f)] (e) (1) A water company that owns a community water system 964
may collect the assessment amount due for the community water system 965 Governor's Bill No. 6443
LCO No. 3267 32 of 79
from a customer of such community water system. The amount 966
collected by the water company from an individual customer may be a 967
pro rata share of such assessment amount and may be adjusted by the 968
water company to reflect the bad debt component and surplus or deficit 969
related to primacy assessment collections of the water company for the 970
prior billing period. Such amount may appear as a separate item on the 971
customer's bills. 972
(2) The assessment amount due for a community water system under 973
subdivision (1) of this subsection may be adopted in rates through the 974
existing rate approval process for the water company or may appear as 975
a separate item identified as an assessment on each customer's bill 976
without requiring a revision to or approval of the schedule of authorized 977
rates and charges for the water company that is otherwise required 978
pursuant to section 7-239 or 16-19 or any special act or enabling 979
legislation establishing a water company. Such charges shall be subject 980
to the past due and collection procedures, including interest charges, of 981
the water company as are applicable to any other authorized customer 982
charge or fee. 983
[(g) The requirement for a water company to pay the assessment shall 984
terminate immediately if the department no longer has primacy under 985
the federal Safe Drinking Water Act, 42 USC 300f, et seq., as amended 986
from time to time, whether removed by the federal Environmental 987
Protection Agency or through any other action by a state or federal 988
authority. If the assessment is terminated and not reinstated on or before 989
one hundred eighty days after such termination, the water company 990
shall credit its customers any amounts collected from such customers 991
for such assessment amount that the water company is no longer 992
required to pay to the department.] 993
[(h)] (f) If any assessment or part thereof is not paid on or before thirty 994
days after the date when such assessment is due, the commissioner may 995
impose a fee equal to one and one-half per cent on the balance due of 996
such assessment for each month of nonpayment beyond such initial 997
thirty-day period unless the water company that has not paid such 998 Governor's Bill No. 6443
LCO No. 3267 33 of 79
assessment or part thereof is a town, city or borough, in which case the 999
water company shall be subject to the provisions of section 12-38. 1000
[(i)] (g) On or before November 1, 2019, and November 1, 2020, the 1001
department shall post on its Internet web site a report that includes: (1) 1002
Resources, activities and costs that support the department's ability to 1003
maintain primacy under the federal Safe Drinking Water Act, 42 USC 1004
300f, et seq., as amended from time to time, in the previous fiscal year; 1005
(2) the number of full-time equivalent positions that performed the 1006
required functions to maintain primacy in the previous fiscal year; and 1007
(3) quality improvement strategies the department has deployed to 1008
streamline operations to make efficient and effective use of staff and 1009
resources. The commissioner shall provide for a comment period of 1010
thirty days following the posting of such report. At the conclusion of 1011
such public comment period, but not later than January 1, 2020, and not 1012
later than January 1, 2021, the commissioner shall submit such report 1013
and summary of comments received to the Governor and the joint 1014
standing committee of the General Assembly having cognizance of 1015
matters relating to public health, in accordance with the provisions of 1016
section 11-4a. 1017
[(j)] (h) The commissioner may adopt regulations, in accordance with 1018
the provisions of chapter 54, to carry out the provisions of this section. 1019
[(k)] (i) State agencies shall be exempt from the requirements of 1020
subsections [(d) to (h)] (c) to (f), inclusive, of this section. 1021
Sec. 24. (NEW) (Effective from passage and applicable to calendar months 1022
commencing on or after January 1, 2023) (a) As used in this section: 1023
(1) "Carrier" means any person that operates or causes to be operated 1024
on any highway in this state any eligible motor vehicle. "Carrier" does 1025
not include the state, any political subdivision of the state, the United 1026
States or the federal government; 1027
(2) "Commissioner" means the Commissioner of Revenue Services; 1028 Governor's Bill No. 6443
LCO No. 3267 34 of 79
(3) "Department" means the Department of Revenue Services; 1029
(4) "Eligible motor vehicle" means a motor vehicle, as defined in 1030
section 14-1 of the general statutes, that (A) has a gross weight of twenty-1031
six thousand pounds or more, and (B) carries a classification between 1032
Class 8 and Class 13, inclusive, under the Federal High way 1033
Administration vehicle classification system; 1034
(5) "Gross weight" has the same meaning as provided in section 14-1 1035
of the general statutes; and 1036
(6) "Highway" has the same meaning as provided in section 14-1 of 1037
the general statutes. 1038
(b) (1) For each calendar month commencing on or after January 1, 1039
2023, a tax is imposed on every carrier for the privilege of operating or 1040
causing to be operated an eligible motor vehicle on any highway of the 1041
state. Use of any such highway shall be measured by the number of 1042
miles traveled within the state by each eligible motor vehicle operated 1043
or caused to be operated by such carrier during each month. The amount 1044
of tax due from each carrier shall be determined in accordance with the 1045
provisions of subdivision (2) of this subsection. 1046
(2) Each carrier shall calculate the number of miles traveled by each 1047
eligible motor vehicle operated or caused to be operated by such carrier 1048
within the state during each month. The miles traveled within the state 1049
by each eligible motor vehicle shall be multiplied by the tax rate as 1050
follows, such rate to be based on the gross weight of each such vehicle: 1051
T1 Gross Weight in Pounds Rate in Dollars
T2 26,000-28,000 0.0250
T3 28,001-30,000 0.0279
T4 30,001-32,000 0.0308
T5 32,001-34,000 0.0337 Governor's Bill No. 6443
LCO No. 3267 35 of 79
T6 34,001-36,000 0.0365
T7 36,001-38,000 0.0394
T8 38,001-40,000 0.0423
T9 40,001-42,000 0.0452
T10 42,001-44,000 0.0481
T11 44,001-46,000 0.0510
T12 46,001-48,000 0.0538
T13 48,001-50,000 0.0567
T14 50,001-52,000 0.0596
T15 52,001-54,000 0.0625
T16 54,001-56,000 0.0654
T17 56,001-58,000 0.0683
T18 58,001-60,000 0.0712
T19 60,001-62,000 0.0740
T20 62,001-64,000 0.0769
T21 64,001-66,000 0.0798
T22 66,001-68,000 0.0827
T23 68,001-70,000 0.0856
T24 70,001-72,000 0.0885
T25 72,001-74,000 0.0913
T26 74,001-76,000 0.0942 Governor's Bill No. 6443
LCO No. 3267 36 of 79
T27 76,001-78,000 0.0971
T28 78,001-80,000 0.1000
T29 80,001 and over 0.1750
(c) (1) Each carrier shall file with the commissioner, on or before the 1052
last day of each month, a return for the calendar month immediately 1053
preceding, in such form and containing such information as the 1054
commissioner may prescribe. The return shall be accompanied by 1055
payment of the amount of the tax shown to be due thereon. Each carrier 1056
shall be required to file such return electronically with the department 1057
and to make such payment by electronic funds transfer in the manner 1058
provided by chapter 228g of the general statutes, irrespective of whether 1059
the carrier would have otherwise been required to file such return 1060
electronically or to make such payment by electronic funds transfer 1061
under the provisions of said chapter. 1062
(2) Notwithstanding the provisions of subsection (a) of section 13b-1063
61 of the general statutes, the commissioner shall deposit into the Special 1064
Transportation Fund established under section 13b-61 of the general 1065
statutes the amounts received by the state from the tax imposed under 1066
this section. 1067
(d) (1) Each carrier desiring to use any highway of the state on or after 1068
January 1, 2023, shall file an application for a permit with the 1069
commissioner, in such form and containing such information as the 1070
commissioner may prescribe. No carrier may lawfully operate or cause 1071
to be operated an eligible motor vehicle in the state on or after January 1072
1, 2023, without obtaining a permit from the commissioner. 1073
(2) Upon receipt of a fully completed application from a carrier, the 1074
commissioner shall grant and issue a permit to such carrier. Such permit 1075
shall be valid only for the carrier to which it is issued and the eligible 1076
motor vehicles such carrier operates or causes to be operated on the 1077
highways of the state and shall not be assignable. The carrier shall 1078 Governor's Bill No. 6443
LCO No. 3267 37 of 79
maintain a copy of the permit within each eligible motor vehicle that 1079
such carrier operates or causes to be operated in the state. 1080
(e) (1) Whenever a carrier fails to comply with any provision of this 1081
section, the commissioner shall order a hearing to be held, requiring 1082
such carrier to show cause why such carrier's permit should not be 1083
revoked or suspended. The commissioner shall provide at least ten days' 1084
notice, in writing, to such carrier of the date, time and place of such 1085
hearing and may serve such notice personally or by registered or 1086
certified mail. If, after such hearing, the commissioner revokes or 1087
suspends a permit, the commissioner shall not restore such permit to or 1088
issue a new permit for such carrier unless the commissioner is satisfied 1089
that the carrier will comply with the provisions of this section. 1090
(2) Whenever a carrier files returns for four successive monthly 1091
periods showing that none of the eligible motor vehicles operated or 1092
caused to be operated by such carrier used any highway of the state, the 1093
commissioner shall order a hearing to be held, requiring such carrier to 1094
show cause why such carrier's permit should not be cancelled. The 1095
commissioner shall provide at least thirty days' notice, in writing, to 1096
such carrier of the date, time and place of such hearing and may serve 1097
such notice personally or by registered or certified mail. If, after such 1098
hearing, the commissioner cancels a permit, the commissioner shall not 1099
issue a new permit for such carrier unless the commissioner is satisfied 1100
that the carrier will make use of the highways of the state. 1101
(f) Each person, other than a carrier, who is required, on behalf of 1102
such carrier, to collect, truthfully account for and pay over a tax imposed 1103
on such carrier under this section and who wilfully fails to collect, 1104
truthfully account for and pay over such tax or who wilfully attempts in 1105
any manner to evade or defeat the tax or the payment thereof, shall, in 1106
addition to other penalties provided by law, be liable for a penalty equal 1107
to the total amount of the tax evaded, or not collected, or not accounted 1108
for and paid over, including any penalty or interest attributable to such 1109
wilful failure to collect or truthfully account for and pay over such tax 1110
or such wilful attempt to evade or defeat such tax, provided such 1111 Governor's Bill No. 6443
LCO No. 3267 38 of 79
penalty shall only be imposed against such person in the event that such 1112
tax, penalty or interest cannot otherwise be collected from such carrier. 1113
The amount of such penalty with respect to which a person may be 1114
personally liable under this section shall be collected in accordance with 1115
the provisions of subsection (n) of this section and any amount so 1116
collected shall be allowed as a credit against the amount of such tax, 1117
penalty or interest due and owing from the carrier. The dissolution of 1118
the carrier shall not discharge any person in relation to any personal 1119
liability under this section for wilful failure to collect or truthfully 1120
account for and pay over such tax or for a wilful attempt to evade or 1121
defeat such tax prior to dissolution, except as otherwise provided in this 1122
section. For purposes of this subsection, "person" includes any 1123
individual, corporation, limited liability company or partnership and 1124
any officer or employee of any corporation, including a dissolved 1125
corporation, and a member of or employee of any partnership or limited 1126
liability company who, as such officer, employee or member, is under a 1127
duty to file a tax return under this section on behalf of a carrier or to 1128
collect or truthfully account for and pay over a tax imposed under this 1129
section on behalf of such carrier. 1130
(g) (1) The commissioner may examine the records of any carrier 1131
subject to a tax imposed under the provisions of this section as the 1132
commissioner deems necessary. If the commissioner determines that 1133
there is a deficiency with respect to the payment of any such tax due 1134
under the provisions of this section, the commissioner shall assess or 1135
reassess the deficiency in tax, give notice of such deficiency assessment 1136
or reassessment to the taxpayer and make demand upon the taxpayer 1137
for payment. Such amount shall bear interest at the rate of one per cent 1138
per month or fraction thereof from the date when the original tax was 1139
due and payable. When it appears that any part of the deficiency for 1140
which a deficiency assessment is made is due to negligence or 1141
intentional disregard of the provisions of this section or regulations 1142
promulgated thereunder, there shall be imposed a penalty equal to ten 1143
per cent of the amount of such deficiency assessment, or fifty dollars, 1144
whichever is greater. When it appears that any part of the deficiency for 1145 Governor's Bill No. 6443
LCO No. 3267 39 of 79
which a deficiency assessment is made is due to fraud or intent to evade 1146
the provisions of this section or regulations promulgated thereunder, 1147
there shall be imposed a penalty equal to twenty-five per cent of the 1148
amount of such deficiency assessment. No taxpayer shall be subject to 1149
more than one penalty under this subsection in relation to the same tax 1150
period. Subject to the provisions of section 12-3a of the general statutes, 1151
the commissioner may waive all or part of the penalties provided under 1152
this section when it is proven to the commissioner's satisfaction that the 1153
failure to pay any tax was due to reasonable cause and was not 1154
intentional or due to neglect. Any decision rendered by any federal 1155
court holding that a taxpayer has filed a fraudulent return with the 1156
Director of Internal Revenue shall subject the taxpayer to the penalty 1157
imposed by this section without the necessity of further proof thereof, 1158
except when it can be shown that the return to the state so differed from 1159
the return to the federal government as to afford a reasonable 1160
presumption that the attempt to defraud did not extend to the return 1161
filed with the state. Within thirty days of the mailing of such notice, the 1162
taxpayer shall pay to the commissioner, in cash, or by check, draft or 1163
money order drawn to the order of the Commissioner of Revenue 1164
Services, any additional amount of tax, penalty and interest shown to be 1165
due. 1166
(2) Except in the case of a wilfully false or fraudulent return with 1167
intent to evade the tax, no assessment of additional tax shall be made 1168
after the expiration of more than three years from the date of the filing 1169
of a return or from the original due date of a return, whichever is later. 1170
If no return has been filed as provided under the provisions of this 1171
section, the commissioner may make such return at any time thereafter, 1172
according to the best information obtainable and according to the form 1173
prescribed. To the tax imposed upon the basis of such return, there shall 1174
be added an amount equal to ten per cent of such tax, or fifty dollars, 1175
whichever is greater. The tax shall bear interest at the rate of one per 1176
cent per month or fraction thereof from the due date of such tax to the 1177
date of payment. Where, before the expiration of the period prescribed 1178
herein for the assessment of an additional tax, a taxpayer has consented 1179 Governor's Bill No. 6443
LCO No. 3267 40 of 79
in writing that such period may be extended, the amount of such 1180
additional tax due may be determined at any time within such extended 1181
period. The period so extended may be further extended by subsequent 1182
consents in writing before the expiration of the extended period. 1183
(h) (1) Any carrier believing that it has overpaid any taxes due under 1184
the provisions of this section may file a claim for refund in writing with 1185
the commissioner within three years from the due date for which such 1186
overpayment was made, stating the specific grounds upon which the 1187
claim is founded. Failure to file a claim within the time prescribed in this 1188
section constitutes a waiver of any demand against the state on account 1189
of overpayment. The commissioner shall review such claim within a 1190
reasonable time and, if the commissioner determines that a refund is 1191
due, the commissioner shall credit the overpayment against any amount 1192
then due and payable from the carrier under this section or any 1193
provision of the general statutes and shall refund any balance 1194
remaining. The commissioner shall notify the Comptroller of the 1195
amount of such refund and the Comptroller shall draw an order on the 1196
Treasurer in the amount thereof for payment to such carrier. If the 1197
commissioner determines that such claim is not valid, either in whole or 1198
in part, the commissioner shall mail notice of the proposed disallowance 1199
to the claimant, which notice shall set forth briefly the commissioner's 1200
findings of fact and the basis of disallowance in each case decided in 1201
whole or in part adversely to the claimant. Sixty days after the date on 1202
which it is mailed, a notice of proposed disallowance shall constitute a 1203
final disallowance except only for such amounts as to which the 1204
taxpayer filed, as provided in subdivision (2) of this subsection, a 1205
written protest with the commissioner. 1206
(2) On or before the sixtieth day after the mailing of the proposed 1207
disallowance, the claimant may file with the commissioner a written 1208
protest against the proposed disallowance in which the claimant shall 1209
set forth the grounds on which the protest is based. If a protest is filed, 1210
the commissioner shall reconsider the proposed disallowance and, if the 1211
claimant has so requested, may grant or deny the claimant or the 1212
claimant's authorized representatives an oral hearing. 1213 Governor's Bill No. 6443
LCO No. 3267 41 of 79
(3) The commissioner shall mail notice of the commissioner's 1214
determination to the claimant, which notice shall set forth briefly the 1215
commissioner's findings of fact and the basis of decision in each case 1216
decided in whole or in part adversely to the claimant. 1217
(4) The action of the commissioner on the claimant's protest shall be 1218
final upon the expiration of thirty days from the date on which the 1219
commissioner mails notice of the commissioner's action to the company 1220
or municipal utility unless within such period the claimant seeks 1221
judicial review of the commissioner's determination pursuant to 1222
subsection (l) of this section. 1223
(i) (1) Any person required under this section or regulations adopted 1224
thereunder to pay any tax, make a return, keep any record or supply 1225
any information, who wilfully fails to pay such tax, make such return, 1226
keep such records or supply such information, at the time required by 1227
law, shall, in addition to any other penalty provided by law, be fined 1228
not more than one thousand dollars or imprisoned not more than one 1229
year, or both. Notwithstanding the provisions of section 54-193 of the 1230
general statutes, no person shall be prosecuted for a violation of the 1231
provisions of this subsection committed on or after January 1, 2023, 1232
except within three years next after such violation has been committed. 1233
As used in this subsection, "person" includes any officer or employee of 1234
a corporation or a member or employee of a partnership under a duty 1235
to pay such tax, make such return, keep such records or supply such 1236
information. 1237
(2) Any person who wilfully delivers or discloses to the commissioner 1238
or the commissioner's authorized agent any list, return, account, 1239
statement or other document, known by such person to be fraudulent 1240
or false in any material matter, shall, in addition to any other penalty 1241
provided by law, be guilty of a class D felony. No person shall be 1242
charged with an offense under both subdivisions (1) and (2) of this 1243
subsection in relation to the same tax period but such person may be 1244
charged and prosecuted for both such offenses upon the same 1245
information. 1246 Governor's Bill No. 6443
LCO No. 3267 42 of 79
(j) (1) Each carrier shall keep such records, receipts, invoices and other 1247
pertinent papers in such form as the commissioner requires. 1248
(2) In addition to the requirements set forth under subdivision (1) of 1249
this subsection, each carrier shall maintain, on a monthly basis, a list of 1250
all the eligible motor vehicles that such carrier operates or causes to 1251
operate on a highway in the state during such month. All such lists shall 1252
be maintained by the carrier for not less than four years after the date of 1253
each such month and shall be made available to the commissioner upon 1254
request. 1255
(3) The commissioner or the commissioner's authorized agent may 1256
examine the records, receipts, invoices, other pertinent papers and 1257
equipment of any person liable under the provisions of this section and 1258
may investigate the character of the business of such person to verify 1259
the accuracy of any return made or, if no return is made by such person, 1260
to ascertain and determine the amount required to be paid. 1261
(k) Any carrier that is aggrieved by the action of the commissioner or 1262
an authorized agent of the commissioner in fixing the amount of any 1263
tax, penalty or interest under this section may apply to the 1264
commissioner, in writing, not later than sixty days after the notice of 1265
such action is delivered or mailed to such carrier, for a hearing and a 1266
correction of the amount of such tax, penalty or interest, setting forth the 1267
reasons why such hearing should be granted and the amount by which 1268
such tax, penalty or interest should be reduced. The commissioner shall 1269
promptly consider each such application and may grant or deny the 1270
hearing requested. If the hearing request is denied, the carrier shall be 1271
notified forthwith. If the hearing request is granted, the commissioner 1272
shall notify the carrier of the date, time and place for such hearing. After 1273
such hearing, the commissioner may make such order as appears just 1274
and lawful to the commissioner and shall furnish a copy of such order 1275
to the carrier. The commissioner may, by notice in writing, order a 1276
hearing on the commissioner's own initiative and require a carrier or 1277
any other individual who the commissioner believes to be in possession 1278
of relevant information concerning such carrier to appear before the 1279 Governor's Bill No. 6443
LCO No. 3267 43 of 79
commissioner or the commissioner's authorized agent with any 1280
specified books of account, papers or other documents, for examination 1281
under oath. 1282
(l) Any carrier that is aggrieved because of any order, decision, 1283
determination or disallowance the commissioner made under 1284
subsection (h) or (k) of this section may, not later than thirty days after 1285
service of notice of such order, decision, determination or disallowance, 1286
take an appeal therefrom to the superior court for the judicial district of 1287
New Britain, which appeal shall be accompanied by a citation to the 1288
commissioner to appear before said court. Such citation shall be signed 1289
by the same authority and such appeal shall be returnable at the same 1290
time and served and returned in the same manner as is required in the 1291
case of a summons in a civil action. The authority issuing the citation 1292
shall take from the appellant a bond or recognizance to the state of 1293
Connecticut, with surety, to prosecute the appeal to effect and to comply 1294
with the orders and decrees of the court in the premises. Such appeals 1295
shall be preferred cases, to be heard, unless cause appears to the 1296
contrary, at the first session, by the court or by a committee appointed 1297
by the court. Said court may grant such relief as may be equitable and, 1298
if such tax has been paid prior to the granting of such relief, may order 1299
the Treasurer to pay the amount of such relief. If the appeal has been 1300
taken without probable cause, the court may tax double or triple costs, 1301
as the case demands and, upon all such appeals that are denied, costs 1302
may be taxed against such carrier at the discretion of the court but no 1303
costs shall be taxed against the state. 1304
(m) The commissioner and any agent of the commissioner duly 1305
authorized to conduct any inquiry, investigation or hearing pursuant to 1306
this section shall have power to administer oaths and take testimony 1307
under oath relative to the matter of inquiry or investigation. At any 1308
hearing ordered by the commissioner, the commissioner or the 1309
commissioner's agent authorized to conduct such hearing and having 1310
authority by law to issue such process may subpoena witnesses and 1311
require the production of books, papers and documents pertinent to 1312
such inquiry or investigation. No witness under subpoena authorized 1313 Governor's Bill No. 6443
LCO No. 3267 44 of 79
to be issued under the provisions of this section shall be excused from 1314
testifying or from producing books, papers or documentary evidence on 1315
the ground that such testimony or the production of such books, papers 1316
or documentary evidence would tend to incriminate such witness, but 1317
such books, papers or documentary evidence so produced shall not be 1318
used in any criminal proceeding against such witness. If any person 1319
disobeys such process or, having appeared in obedience thereto, refuses 1320
to answer any pertinent question put to such person by the 1321
commissioner or the commissioner's authorized agent, or to produce 1322
any books, papers or other documentary evidence pursuant thereto, the 1323
commissioner or such agent may apply to the superior court of the 1324
judicial district wherein the carrier has a business address or wherein 1325
the carrier's business has been conducted, or to any judge of such court 1326
if the same is not in session, setting forth such disobedience to process 1327
or refusal to answer, and such court or such judge shall cite such person 1328
to appear before such court or such judge to answer such question or to 1329
produce such books, papers or other documentary evidence and, upon 1330
such person's refusal so to do, shall commit such person to a community 1331
correctional center until such person testifies, but not for a period longer 1332
than sixty days. Notwithstanding the serving of the term of such 1333
commitment by any person, the commissioner may proceed in all 1334
respects with such inquiry and examination as if the witness had not 1335
previously been called upon to testify. Officers who serve subpoenas 1336
issued by the commissioner or under the commissioner's authority and 1337
witnesses attending hearings conducted by the commissioner pursuant 1338
to this section shall receive fees and compensation at the same rates as 1339
officers and witnesses in the courts of this state, to be paid on vouchers 1340
of the commissioner on order of the Comptroller from the proper 1341
appropriation for the administration of this section. 1342
(n) The amount of any tax, penalty or interest due and unpaid under 1343
the provisions of this section may be collected under the provisions of 1344
section 12-35 of the general statutes. The warrant provided under said 1345
section shall be signed by the commissioner or the commissioner's 1346
authorized agent. The amount of any such tax, penalty and interest shall 1347 Governor's Bill No. 6443
LCO No. 3267 45 of 79
be a lien on the real estate of the carrier from the last day of the month 1348
next preceding the due date of such civil penalty until such civil penalty 1349
is paid. The commissioner may record such lien in the records of any 1350
town in which the real estate of such carrier is situated but no such lien 1351
shall be enforceable against a bona fide purchaser or qualified 1352
encumbrancer of such real estate. When any tax with respect to which a 1353
lien has been recorded under the provisions of this subsection has been 1354
satisfied, the commissioner shall, upon request of any interested party, 1355
issue a certificate discharging such lien, which certificate shall be 1356
recorded in the same office in which the lien was recorded. Any action 1357
for the foreclosure of such lien shall be brought by the Attorney General 1358
in the name of the state in the superior court for the judicial district in 1359
which the real estate subject to such lien is situated, or, if such real estate 1360
is located in two or more judicial districts, in the superior court for any 1361
one such judicial district, and the court may limit the time for 1362
redemption or order the sale of such real estate or pass such other or 1363
further decree as it judges equitable. 1364
(o) No tax credit or credits shall be allowable against the tax imposed 1365
under this section. 1366
(p) Any person who knowingly violates any provision of this section 1367
for which no other penalty is provided shall be fined one thousand 1368
dollars. 1369
(q) The commissioner may adopt regulations, in accordance with the 1370
provisions of chapter 54 of the general statutes, to implement the 1371
provisions of this section. 1372
(r) At the close of each fiscal year, commencing with the fiscal year 1373
ending June 30, 2023, in which the tax imposed under the provisions of 1374
this section are received by the commissioner, the Comptroller is 1375
authorized to record as revenue for such fiscal year the amount of such 1376
tax that are received by the commissioner not later than five business 1377
days from the July thirty-first immediately following the end of such 1378
fiscal year. 1379 Governor's Bill No. 6443
LCO No. 3267 46 of 79
Sec. 25. Section 3-20j of the general statutes is repealed and the 1380
following is substituted in lieu thereof (Effective from passage): 1381
(a) As used in this section, the following terms have the following 1382
meanings, unless the context clearly indicates a different meaning or 1383
intent: 1384
(1) "Credit revenue bonds" means revenue bonds issued pursuant to 1385
this section; 1386
(2) "Collection agent" means the financial institution acting as the 1387
trustee or agent for the trustee that receives the pledged revenues 1388
directed by the state to be paid to it by taxpayers; 1389
(3) "Debt service requirements" means (A) (i) principal and interest 1390
with respect to bonds, (ii) interest with respect to bond anticipation 1391
notes, and (iii) unrefunded principal with respect to bond anticipation 1392
notes, (B) the purchase price of bonds and bond anticipation notes that 1393
are subject to purchase or redemption at the option of the bondowner or 1394
noteowner, (C) the amounts, if any, required to establish or maintain 1395
reserves, sinking funds or other funds or accounts at the respective 1396
levels required to be established or maintained therein in accordance 1397
with the proceedings authorizing the issuance of bonds, (D) expenses of 1398
issuance and administration with respect to bonds and bond 1399
anticipation notes, as determined by the Treasurer, (E) the amounts, if 1400
any, becoming due and payable under a reimbursement agreement or 1401
similar agreement entered into pursuant to authority granted under the 1402
proceedings authorizing the issuance of bonds and bond anticipation 1403
notes, and (F) any other costs or expenses deemed by the Treasurer to 1404
be necessary or proper to be paid in connection with the bonds and bond 1405
anticipation notes, including, without limitation, the cost of any credit 1406
facility, including, but not limited to, a letter of credit or policy of bond 1407
insurance, issued by a financial institution pursuant to an agreement 1408
approved pursuant to the proceedings authorizing the issuance of 1409
bonds and bond anticipation notes; 1410
(4) "Dedicated savings" for a period means the amounts for such 1411 Governor's Bill No. 6443
LCO No. 3267 47 of 79
period determined by the Treasurer pursuant to subsection (n) of this 1412
section to have been saved by the issuance of credit revenue bonds; 1413
(5) "Pledged revenues" means withholding taxes statutorily pledged 1414
to repayment of credit revenue bonds; 1415
(6) "Proceedings" means the proceedings of the State Bond 1416
Commission authorizing the issuance of bonds pursuant to this section, 1417
the provisions of any resolution or trust indenture securing bonds, that 1418
are incorporated into such proceedings, the provisions of any other 1419
documents or agreements that are incorporated into such proceedings 1420
and, to the extent applicable, a certificate of determination filed by the 1421
Treasurer in accordance with this section; 1422
(7) "Trustee" means the financial institution acting as trustee under 1423
the trust indenture pursuant to which bonds or notes are issued; and 1424
(8) "Withholding taxes" means taxes required to be deducted and 1425
withheld pursuant to sections 12-705 and 12-706 and paid to the 1426
Commissioner of Revenue Services pursuant to section 12-707 upon 1427
receipt by the state and including penalty and interest charges on such 1428
taxes. 1429
(b) Whenever any general statute or public or special act, whether 1430
enacted before, on or after October 31, 2017, authorizes general 1431
obligation bonds of the state to be issued for any purpose, such general 1432
statute or public or special act shall be deemed to have authorized such 1433
bonds to be issued as either general obligation bonds or credit revenue 1434
bonds under this section. In no event shall the total of the principal 1435
amount of general obligation bonds and credit revenue bonds issued 1436
pursuant to the authority of any general statute or public or special act 1437
exceed the amount authorized thereunder. Except as provided for in this 1438
section, all provisions of section 3-20, except subsection (p) of said 1439
section, shall apply to such credit revenue bonds. 1440
(c) Bonds issued pursuant to this section shall be special obligations 1441
of the state and shall not be payable from or charged upon any funds 1442 Governor's Bill No. 6443
LCO No. 3267 48 of 79
other than the pledged revenues or other receipts, funds or moneys 1443
pledged therefor, nor shall the state or any political subdivision thereof 1444
be subject to any liability thereon, except to the extent of such pledged 1445
revenues or other receipts, funds or moneys pledged therefor as 1446
provided in this section. As part of the contract of the state with the 1447
owners of such bonds, all amounts necessary for punctual payment of 1448
principal of and interest on such bonds, and redemption premium, if 1449
any, with respect to such bonds, is hereby appropriated and the 1450
Treasurer shall pay such principal and interest and redemption 1451
premium, if any, as the same shall become due but only from such 1452
sources. The issuance of bonds issued under this section shall not 1453
directly or indirectly or contingently obligate the state or any political 1454
subdivision thereof to levy or to pledge any form of taxation whatever 1455
therefor, except for taxes included in the pledged revenues, or to make 1456
any additional appropriation for their payment. Such bonds shall not 1457
constitute a charge, lien or encumbrance, legal or equitable, upon any 1458
property of the state or of any political subdivision thereof other than 1459
the pledged revenues or other receipts, funds or moneys pledged 1460
therefor as provided in this section, and the substance of such limitation 1461
shall be plainly stated on the face of each such bond and bond 1462
anticipation note. 1463
(d) The state hereby pledges all its right, title and interest to the 1464
pledged revenues to secure the due and punctual payment of the 1465
principal of and interest on the credit revenue bonds, and redemption 1466
premium, if any, with respect to such bonds. Such pledge shall secure 1467
all such credit revenue bonds equally, and such pledge is and shall be 1468
prior in interest to any other claim of any party to the pledged revenues, 1469
including any holder of general obligation bonds of the state. Such 1470
bonds also may be secured by a pledge of reserves, sinking funds and 1471
any other funds and accounts, including proceeds from investment of 1472
any of the foregoing, authorized hereby or by the proceedings 1473
authorizing the issuance of such bonds, and by moneys paid under a 1474
credit facility including, but not limited to, a letter of credit or policy of 1475
bond insurance, issued by a financial institution pursuant to an 1476 Governor's Bill No. 6443
LCO No. 3267 49 of 79
agreement authorized by such proceedings. 1477
(e) The pledge of the pledged revenues under this section is made by 1478
the state by operation of law through this section, and as a statutory lien 1479
is effective without any further act or agreement by the state, and shall 1480
be valid and binding from the time the pledge is made, and any 1481
revenues or other receipts, funds or moneys so pledged and received by 1482
the state shall be subject immediately to the lien of such pledge without 1483
any physical delivery thereof or further act. The lien of any such pledge 1484
shall be valid and binding as against all parties having claims of any 1485
kind in tort, contract or otherwise against the state, irrespective of 1486
whether such parties have notice thereof. 1487
(f) In the proceedings authorizing any credit revenue bonds, the state 1488
shall direct the trustee to establish one or more collection accounts with 1489
the collection agent to receive the pledged revenues and shall direct 1490
payment of the pledged revenues into such collection accounts of the 1491
collection agent. Funds in such collection accounts shall be kept separate 1492
and apart from any other funds of the state until disbursed as provided 1493
for in the proceedings authorizing such credit revenue bonds. Such 1494
proceedings shall provide that no funds from such collection accounts 1495
shall be disbursed to the control of the state until and at such times as 1496
all current claims of any trustee set out in the proceedings have been 1497
satisfied, and thereafter may be disbursed to the control of the state free 1498
and clear of any claim by the trustee or the holders of any credit revenue 1499
bonds. The agreements with the depositaries establishing the collection 1500
accounts may provide for customary settlement terms for the collection 1501
of revenues. The expenses of the state in establishing such collection 1502
accounts and directing the deposit of pledged revenues therein, 1503
including the expenses of the Department of Revenue Services and the 1504
office of the Comptroller in establishing mechanisms to verify, allocate, 1505
track and audit such accounts and the deposits therein, may be paid as 1506
costs of issuance of any bonds issued pursuant to section 3-20 or this 1507
section. 1508
(g) The proceedings under which bonds are authorized to be issued, 1509 Governor's Bill No. 6443
LCO No. 3267 50 of 79
pursuant to this section, may, subject to the provisions of the general 1510
statutes, contain any or all of the following: 1511
(1) Covenants that confirm, as part of the contract with the holders of 1512
the credit revenue bonds, the agreements of the state set forth in 1513
subsections (d) to (f), inclusive, of this section; 1514
(2) Provisions for the execution of reimbursement agreements or 1515
similar agreements in connection with credit facilities including, but not 1516
limited to, letters of credit or policies of bond insurance, remarketing 1517
agreements and agreements for the purpose of moderating interest rate 1518
fluctuations, and of such other agreements entered into pursuant to 1519
section 3-20a; 1520
(3) Provisions for the collection, custody, investment, reinvestment 1521
and use of the pledged revenues or other receipts, funds or moneys 1522
pledged therefor; 1523
(4) Provisions regarding the establishment and maintenance of 1524
reserves, sinking funds and any other funds and accounts as shall be 1525
approved by the State Bond Commission in such amounts as may be 1526
established by the State Bond Commission, and the regulation and 1527
disposition thereof, including requirements that any such funds and 1528
accounts be held separate from or not be commingled with other funds 1529
of the state; 1530
(5) Provisions for the issuance of additional bonds on a parity with 1531
bonds theretofore issued, including establishment of coverage 1532
requirements as a condition of the issuance of such additional bonds; 1533
(6) Provisions regarding the rights and remedies available in case of 1534
a default to the bondowners, or any trustee under any contract, loan 1535
agreement, document, instrument or trust indenture, including the right 1536
to appoint a trustee to represent their interests upon occurrence of an 1537
event of default, as defined in said proceedings, provided, if any bonds 1538
shall be secured by a trust indenture, the respective owners of such 1539
bonds or notes shall have no authority except as set forth in such trust 1540 Governor's Bill No. 6443
LCO No. 3267 51 of 79
indenture to appoint a separate trustee to represent them, and provided 1541
further no such right or remedy shall allow principal and interest on 1542
such bonds to be accelerated; and 1543
(7) Provisions or covenants of like or different character from the 1544
foregoing which are consistent with this and which the State Bond 1545
Commission determines in such proceedings are necessary, convenient 1546
or desirable to better secure the bonds, or will tend to make the bonds 1547
more marketable, and which are in the best interests of the state. Any 1548
provision which may be included in proceedings authorizing the 1549
issuance of bonds hereunder may be included in a trust indenture duly 1550
approved in accordance with this subsection which secures the bonds 1551
and any notes issued in anticipation thereof, and in such case the 1552
provisions of such indenture shall be deemed to be a part of such 1553
proceedings as though they were expressly included therein. 1554
(h) Bonds issued pursuant to this section shall be secured by a trust 1555
indenture, approved by the State Bond Commission, by and between 1556
the state and a corporate trustee, which may be any trust company or 1557
bank having the powers of a trust company within or without the state. 1558
Such trust indenture may contain such provisions for protecting and 1559
enforcing the rights and remedies of the bondowners as may be 1560
reasonable and proper and not in violation of law, including covenants 1561
setting forth the duties of the state in relation to the exercise of its powers 1562
pursuant to the pledged revenues and the custody, safeguarding and 1563
application of all moneys. The state may provide by such trust indenture 1564
for the payment of the pledged revenues or other receipts, funds or 1565
moneys to the trustee under such trust indenture or to any other 1566
depository, and for the method of disbursement thereof, with such 1567
safeguards and restrictions as it may determine, but consistent with the 1568
provisions of subsections (d) to (f), inclusive, of this section. 1569
(i) The Treasurer shall have power to purchase bonds of the state 1570
issued pursuant to this section out of any funds available therefor. The 1571
Treasurer may hold, pledge, cancel or resell such bonds subject to and 1572
in accordance with agreements with bondowners. 1573 Governor's Bill No. 6443
LCO No. 3267 52 of 79
(j) Bonds issued pursuant to this section are hereby made negotiable 1574
instruments within the meaning of and for all purposes of the Uniform 1575
Commercial Code, whether or not such bonds are of such form and 1576
character as to be negotiable instruments under the terms of the 1577
Uniform Commercial Code, subject only to the provisions of such bonds 1578
for registration. 1579
(k) Any moneys held by the Treasurer or a trustee pursuant to a trust 1580
indenture with respect to bonds issued pursuant to this section, 1581
including pledged revenues, other pledged receipts, funds or moneys 1582
and proceeds from the sale of such bonds, may, pending the use or 1583
application of the proceeds thereof for an authorized purpose, be (1) 1584
invested and reinvested in such obligations, securities and investments 1585
as are set forth in subsection (f) of section 3-20 and in participation 1586
certificates in the Short Term Investment Fund created under section 3-1587
27a, or (2) deposited or redeposited in such bank or banks as shall be 1588
provided in the resolution authorizing the issuance of such bonds, the 1589
certificate of determination authorizing issuance of such bond 1590
anticipation notes or in the indenture securing such bonds. Proceeds 1591
from investments authorized by this subsection, less amounts required 1592
under the proceedings authorizing the issuance of bonds, shall be 1593
credited to the General Fund. 1594
(l) Bonds issued pursuant to this section are hereby made securities 1595
in which all public officers and public bodies of the state and its political 1596
subdivisions, all insurance companies, credit unions, building and loan 1597
associations, investment companies, banking associations, trust 1598
companies, executors, administrators, trustees and other fiduciaries and 1599
pension, profit-sharing and retirement funds may properly and legally 1600
invest funds, including capital in their control or belonging to them. 1601
Such bonds are hereby made securities which may properly and legally 1602
be deposited with and received by any state or municipal officer or any 1603
agency or political subdivision of the state for any purpose for which 1604
the deposit of bonds or obligations of the state is now or may hereafter 1605
be authorized by law. 1606 Governor's Bill No. 6443
LCO No. 3267 53 of 79
(m) The state covenants with the purchasers and all subsequent 1607
owners and transferees of bonds issued by the state pursuant to this 1608
section, in consideration of the acceptance of the payment for the bonds, 1609
until such bonds, together with the interest thereon, with interest on any 1610
unpaid installment of interest and all costs and expenses in connection 1611
with any action or proceeding on behalf of such owners, are fully met 1612
and discharged, or unless expressly permitted or otherwise authorized 1613
by the terms of each contract and agreement made or entered into by or 1614
on behalf of the state with or for the benefit of such owners, that the state 1615
will impose, charge, raise, levy, collect and apply the pledged revenues 1616
and other receipts, funds or moneys pledged for the payment of debt 1617
service requirements as provided in this section, in such amounts as 1618
may be necessary to pay such debt service requirements in each year in 1619
which bonds are outstanding and further, that the state (1) will not limit 1620
or alter the duties imposed on the Treasurer and other officers of the 1621
state by law and by the proceedings authorizing the issuance of bonds 1622
with respect to application of pledged revenues or other receipts, funds 1623
or moneys pledged for the payment of debt service requirements as 1624
provided in said sections; (2) will not alter the provisions establishing 1625
collection accounts with the collection agent or the direction of pledged 1626
revenues to such collection accounts, or the provisions applying such 1627
pledged revenues to the debt service requirements with respect to bonds 1628
or notes; (3) will not issue any bonds, notes or other evidences of 1629
indebtedness, other than the bonds, having any rights arising out of said 1630
sections or secured by any pledge of or other lien or charge on the 1631
pledged revenues or other receipts, funds or moneys pledged for the 1632
payment of debt service requirements as provided in said sections; (4) 1633
will not create or cause to be created any lien or charge on such pledged 1634
amounts, other than a lien or pledge created thereon pursuant to said 1635
sections, provided nothing in this subsection shall prevent the state from 1636
issuing evidences of indebtedness (A) which are secured by a pledge or 1637
lien which is and shall on the face thereof be expressly subordinate and 1638
junior in all respects to every lien and pledge created by or pursuant to 1639
said sections; (B) for which the full faith and credit of the state is pledged 1640
and which are not expressly secured by any specific lien or charge on 1641 Governor's Bill No. 6443
LCO No. 3267 54 of 79
such pledged amounts; or (C) which are secured by a pledge of or lien 1642
on moneys or funds derived on or after such date as every pledge or lien 1643
thereon created by or pursuant to said sections shall be discharged and 1644
satisfied; (5) will carry out and perform, or cause to be carried out and 1645
performed, every promise, covenant, agreement or contract made or 1646
entered into by the state or on its behalf with the owners of any bonds; 1647
(6) will not in any way impair the rights, exemptions or remedies of such 1648
owners; and (7) will not limit, modify, rescind, repeal or otherwise alter 1649
the rights or obligations of the appropriate officers of the state to impose, 1650
maintain, charge or collect the taxes, fees, charges and other receipts 1651
constituting the pledged revenues as may be necessary to produce 1652
sufficient revenues to fulfill the terms of the proceedings authorizing the 1653
issuance of the bonds; and provided further the state may change the 1654
rate of withholding taxes, calculation of amounts to which the rate 1655
applies, including exemptions and deductions so long as any such 1656
change, had it been in effect, would not have reduced the withholding 1657
taxes for any twelve consecutive months within the preceding fifteen 1658
months to less than an amount three times the maximum debt service 1659
payable on bonds issued and outstanding under this section for the 1660
current or any future fiscal year. The State Bond Commission is 1661
authorized to include this covenant of the state in any agreement with 1662
the owner of any such bonds. 1663
[(n) At the time of issuance of any credit revenue bonds pursuant to 1664
this section, the Treasurer shall determine the amount of principal and 1665
interest estimated to be saved by the issuance of credit revenue bonds 1666
instead of general obligation bonds, as measured by the difference 1667
between the stated principal and interest payable with respect to such 1668
credit revenue bonds in each fiscal year during which bonds shall be 1669
outstanding, and the principal and interest estimated to be payable in 1670
each fiscal year during which such bonds would have been outstanding 1671
had such bonds been issued as general obligation bonds payable over 1672
the same period on the basis of equal amounts of principal stated to be 1673
due in each fiscal year, subject to any specific adjustments which the 1674
Treasurer may consider appropriate to take into account in the structure 1675 Governor's Bill No. 6443
LCO No. 3267 55 of 79
for a specific bond issue, provided in any fiscal year that the Treasurer 1676
determines there are no savings, the estimated savings shall be zero for 1677
such fiscal year. The Treasurer shall base such determination on such 1678
factors as the Treasurer shall deem relevant, which may include advice 1679
from financial advisors to the state, historical trading patterns of 1680
outstanding state general obligation bonds and spreads to common 1681
municipal bond indexes. The Treasurer shall set out such estimated 1682
savings for each fiscal year during which each issue of credit revenue 1683
bonds shall be stated to be outstanding in a bond determination which 1684
shall be filed with the State Bond Commission at or prior to the issuance 1685
of such credit revenue bonds, and such amounts shall be dedicated 1686
savings for purposes of this section. 1687
(o) For each fiscal year during which credit revenue bonds shall be 1688
outstanding, there shall be transferred from the General Fund of the 1689
state to the Budget Reserve Fund established pursuant to section 4-30a, 1690
at the beginning of such fiscal year, an amount equal to the aggregate 1691
dedicated savings for all such bonds issued and to be outstanding in 1692
such fiscal year, unless the Governor declares an emergency or the 1693
existence of extraordinary circumstances, in which the provisions of 1694
section 4-85 are invoked, and at least three-fifths of the members of each 1695
chamber of the General Assembly vote to diminish such required 1696
transfer during the fiscal year for which the emergency or existence of 1697
extraordinary circumstances are determined, or in such other 1698
circumstances as may be permitted by the terms of the bonds, notes or 1699
other obligations issued pursuant to this section. Amounts so 1700
transferred shall not be available for appropriation for any other 1701
purpose, but shall only be used as provided in section 4-30a. 1702
(p) (1) Prior to July 1, 2021, net earnings of investments of proceeds 1703
of bonds issued pursuant to section 3-20 or pursuant to this section and 1704
accrued interest on the issuance of such bonds and premiums on the 1705
issuance of such bonds shall be deposited to the credit of the General 1706
Fund, after (A) payment of any expenses incurred by the Treasurer or 1707
State Bond Commission in connection with such issuance, or (B) 1708
application to interest on bonds, notes or other obligations of the state. 1709 Governor's Bill No. 6443
LCO No. 3267 56 of 79
(2) On and after July 1, 2021, notwithstanding subsection (f) of section 1710
3-20, (A) net earnings of investments of proceeds of bonds issued 1711
pursuant to section 3-20 or pursuant to this section and accrued interest 1712
on the issuance of such bonds shall be deposited to the credit of the 1713
General Fund, and (B) premiums, net of any original issue discount, on 1714
the issuance of such bonds shall, after payment of any expenses incurred 1715
by the Treasurer or State Bond Commission in connection with such 1716
issuance, be deposited at the direction of the Treasurer to the credit of 1717
an account or fund to fund all or a portion of any purpose or project 1718
authorized by the State Bond Commission pursuant to any bond act up 1719
to the amount authorized by the State Bond Commission, provided the 1720
bonds for such purpose or project are unissued, and provided further 1721
the certificate of determination the Treasurer files with the secretary of 1722
the State Bond Commission for such authorized bonds sets forth the 1723
amount of the deposit applied to fund each such purpose and project. 1724
Upon such filing, the Treasurer shall record bonds in the amount of net 1725
premiums credited to each purpose and project as set forth in the 1726
certificate of determination of the Treasurer as deemed issued and 1727
retired and the Treasurer shall not thereafter exercise authority to issue 1728
bonds in such amount for such purpose or project. Upon such recording 1729
by the Treasurer, such bonds shall be deemed to have been issued, 1730
retired and no longer authorized for issuance or outstanding for the 1731
purposes of section 3-21, and for the purpose of aligning the funding of 1732
such authorized purpose and project with amounts generated by net 1733
premiums, but shall not constitute an actual bond issuance or bond 1734
retirement for any other purposes including, but not limited to, financial 1735
reporting purposes.] 1736
[(q)] (n) Any general obligation bonds or notes issued pursuant to 1737
section 3-20 may be refunded by credit revenue bonds or notes issued 1738
pursuant to this section, and any credit revenue bonds issued pursuant 1739
to this section may be refunded by general obligation bonds or notes 1740
issued pursuant to subsection (g) of section 3-20 in the manner, and 1741
subject to the same conditions, as set out in subsection (g) of section 3-1742
20. 1743 Governor's Bill No. 6443
LCO No. 3267 57 of 79
Sec. 26. Subparagraph (B) of subdivision (20) of subsection (a) of 1744
section 12-701 of the general statutes is repealed and the following is 1745
substituted in lieu thereof (Effective from passage and applicable to taxable 1746
years commencing on or after January 1, 2021): 1747
(B) There shall be subtracted therefrom: 1748
(i) To the extent properly includable in gross income for federal 1749
income tax purposes, any income with respect to which taxation by any 1750
state is prohibited by federal law; 1751
(ii) To the extent allowable under section 12-718, exempt dividends 1752
paid by a regulated investment company; 1753
(iii) To the extent properly includable in gross income for federal 1754
income tax purposes, the amount of any refund or credit for 1755
overpayment of income taxes imposed by this state, or any other state 1756
of the United States or a political subdivision thereof, or the District of 1757
Columbia; 1758
(iv) To the extent properly includable in gross income for federal 1759
income tax purposes and not otherwise subtracted from federal 1760
adjusted gross income pursuant to clause (x) of this subparagraph in 1761
computing Connecticut adjusted gross income, any tier 1 railroad 1762
retirement benefits; 1763
(v) To the extent any additional allowance for depreciation under 1764
Section 168(k) of the Internal Revenue Code for property placed in 1765
service after September 27, 2017, was added to federal adjusted gross 1766
income pursuant to subparagraph (A)(ix) of this subdivision in 1767
computing Connecticut adjusted gross income, twenty-five per cent of 1768
such additional allowance for depreciation in each of the four 1769
succeeding taxable years; 1770
(vi) To the extent properly includable in gross income for federal 1771
income tax purposes, any interest income from obligations issued by or 1772
on behalf of the state of Connecticut, any political subdivision thereof, 1773 Governor's Bill No. 6443
LCO No. 3267 58 of 79
or public instrumentality, state or local authority, district or similar 1774
public entity created under the laws of the state of Connecticut; 1775
(vii) To the extent properly includable in determining the net gain or 1776
loss from the sale or other disposition of capital assets for federal income 1777
tax purposes, any gain from the sale or exchange of obligations issued 1778
by or on behalf of the state of Connecticut, any political subdivision 1779
thereof, or public instrumentality, state or local authority, district or 1780
similar public entity created under the laws of the state of Connecticut, 1781
in the income year such gain was recognized; 1782
(viii) Any interest on indebtedness incurred or continued to purchase 1783
or carry obligations or securities the interest on which is subject to tax 1784
under this chapter but exempt from federal income tax, to the extent that 1785
such interest on indebtedness is not deductible in determining federal 1786
adjusted gross income and is attributable to a trade or business carried 1787
on by such individual; 1788
(ix) Ordinary and necessary expenses paid or incurred during the 1789
taxable year for the production or collection of income which is subject 1790
to taxation under this chapter but exempt from federal income tax, or 1791
the management, conservation or maintenance of property held for the 1792
production of such income, and the amortizable bond premium for the 1793
taxable year on any bond the interest on which is subject to tax under 1794
this chapter but exempt from federal income tax, to the extent that such 1795
expenses and premiums are not deductible in determining federal 1796
adjusted gross income and are attributable to a trade or business carried 1797
on by such individual; 1798
(x) (I) For taxable years commencing prior to January 1, 2019, for a 1799
person who files a return under the federal income tax as an unmarried 1800
individual whose federal adjusted gross income for such taxable year is 1801
less than fifty thousand dollars, or as a married individual filing 1802
separately whose federal adjusted gross income for such taxable year is 1803
less than fifty thousand dollars, or for a husband and wife who file a 1804
return under the federal income tax as married individuals filing jointly 1805 Governor's Bill No. 6443
LCO No. 3267 59 of 79
whose federal adjusted gross income for such taxable year is less than 1806
sixty thousand dollars or a person who files a return under the federal 1807
income tax as a head of household whose federal adjusted gross income 1808
for such taxable year is less than sixty thousand dollars, an amount 1809
equal to the Social Security benefits includable for federal income tax 1810
purposes; 1811
(II) For taxable years commencing prior to January 1, 2019, for a 1812
person who files a return under the federal income tax as an unmarried 1813
individual whose federal adjusted gross income for such taxable year is 1814
fifty thousand dollars or more, or as a married individual filing 1815
separately whose federal adjusted gross income for such taxable year is 1816
fifty thousand dollars or more, or for a husband and wife who file a 1817
return under the federal income tax as married individuals filing jointly 1818
whose federal adjusted gross income from such taxable year is sixty 1819
thousand dollars or more or for a person who files a return under the 1820
federal income tax as a head of household whose federal adjusted gross 1821
income for such taxable year is sixty thousand dollars or more, an 1822
amount equal to the difference between the amount of Social Security 1823
benefits includable for federal income tax purposes and the lesser of 1824
twenty-five per cent of the Social Security benefits received during the 1825
taxable year, or twenty-five per cent of the excess described in Section 1826
86(b)(1) of the Internal Revenue Code; 1827
(III) For the taxable year commencing January 1, 2019, and each 1828
taxable year thereafter, for a person who files a return under the federal 1829
income tax as an unmarried individual whose federal adjusted gross 1830
income for such taxable year is less than seventy-five thousand dollars, 1831
or as a married individual filing separately whose federal adjusted gross 1832
income for such taxable year is less than seventy-five thousand dollars, 1833
or for a husband and wife who file a return under the federal income tax 1834
as married individuals filing jointly whose federal adjusted gross 1835
income for such taxable year is less than one hundred thousand dollars 1836
or a person who files a return under the federal income tax as a head of 1837
household whose federal adjusted gross income for such taxable year is 1838
less than one hundred thousand dollars, an amount equal to the Social 1839 Governor's Bill No. 6443
LCO No. 3267 60 of 79
Security benefits includable for federal income tax purposes; and 1840
(IV) For the taxable year commencing January 1, 2019, and each 1841
taxable year thereafter, for a person who files a return under the federal 1842
income tax as an unmarried individual whose federal adjusted gross 1843
income for such taxable year is seventy-five thousand dollars or more, 1844
or as a married individual filing separately whose federal adjusted gross 1845
income for such taxable year is seventy-five thousand dollars or more, 1846
or for a husband and wife who file a return under the federal income tax 1847
as married individuals filing jointly whose federal adjusted gross 1848
income from such taxable year is one hundred thousand dollars or more 1849
or for a person who files a return under the federal income tax as a head 1850
of household whose federal adjusted gross income for such taxable year 1851
is one hundred thousand dollars or more, an amount equal to the 1852
difference between the amount of Social Security benefits includable for 1853
federal income tax purposes and the lesser of twenty-five per cent of the 1854
Social Security benefits received during the taxable year, or twenty-five 1855
per cent of the excess described in Section 86(b)(1) of the Internal 1856
Revenue Code; 1857
(xi) To the extent properly includable in gross income for federal 1858
income tax purposes, any amount rebated to a taxpayer pursuant to 1859
section 12-746; 1860
(xii) To the extent properly includable in the gross income for federal 1861
income tax purposes of a designated beneficiary, any distribution to 1862
such beneficiary from any qualified state tuition program, as defined in 1863
Section 529(b) of the Internal Revenue Code, established and 1864
maintained by this state or any official, agency or instrumentality of the 1865
state; 1866
(xiii) To the extent allowable under section 12-701a, contributions to 1867
accounts established pursuant to any qualified state tuition program, as 1868
defined in Section 529(b) of the Internal Revenue Code, established and 1869
maintained by this state or any official, agency or instrumentality of the 1870
state; 1871 Governor's Bill No. 6443
LCO No. 3267 61 of 79
(xiv) To the extent properly includable in gross income for federal 1872
income tax purposes, the amount of any Holocaust victims' settlement 1873
payment received in the taxable year by a Holocaust victim; 1874
(xv) To the extent properly includable in gross income for federal 1875
income tax purposes of an account holder, as defined in section 31-1876
51ww, interest earned on funds deposited in th e individual 1877
development account, as defined in section 31-51ww, of such account 1878
holder; 1879
(xvi) To the extent properly includable in the gross income for federal 1880
income tax purposes of a designated beneficiary, as defined in section 1881
3-123aa, interest, dividends or capital gains earned on contributions to 1882
accounts established for the designated beneficiary pursuant to the 1883
Connecticut Homecare Option Program for the Elderly established by 1884
sections 3-123aa to 3-123ff, inclusive; 1885
(xvii) To the extent properly includable in gross income for federal 1886
income tax purposes, any income received from the United States 1887
government as retirement pay for a retired member of (I) the Armed 1888
Forces of the United States, as defined in Section 101 of Title 10 of the 1889
United States Code, or (II) the National Guard, as defined in Section 101 1890
of Title 10 of the United States Code; 1891
(xviii) To the extent properly includable in gross income for federal 1892
income tax purposes for the taxable year, any income from the discharge 1893
of indebtedness in connection with any reacquisition, after December 1894
31, 2008, and before January 1, 2011, of an applicable debt instrument or 1895
instruments, as those terms are defined in Section 108 of the Internal 1896
Revenue Code, as amended by Section 1231 of the American Recovery 1897
and Reinvestment Act of 2009, to the extent any such income was added 1898
to federal adjusted gross income pursuant to subparagraph (A)(xi) of 1899
this subdivision in computing Connecticut adjusted gross income for a 1900
preceding taxable year; 1901
(xix) To the extent not deductible in determining federal adjusted 1902
gross income, the amount of any contribution to a manufacturing 1903 Governor's Bill No. 6443
LCO No. 3267 62 of 79
reinvestment account established pursuant to section 32-9zz in the 1904
taxable year that such contribution is made; 1905
(xx) To the extent properly includable in gross income for federal 1906
income tax purposes, (I) for the taxable year commencing January 1, 1907
2015, ten per cent of the income received from the state teachers' 1908
retirement system, (II) for the taxable years commencing January 1, 1909
2016, to January 1, [2020] 2022, inclusive, twenty-five per cent of the 1910
income received from the state teachers' retirement system, and (III) for 1911
the taxable year commencing January 1, [2021] 2023, and each taxable 1912
year thereafter, fifty per cent of the income received from the state 1913
teachers' retirement system or the percentage, if applicable, pursuant to 1914
clause (xxi) of this subparagraph; 1915
(xxi) To the extent properly includable in gross income for federal 1916
income tax purposes, except for retirement benefits under clause (iv) of 1917
this subparagraph and retirement pay under clause (xvii) of this 1918
subparagraph, for a person who files a return under the federal income 1919
tax as an unmarried individual whose federal adjusted gross income for 1920
such taxable year is less than seventy-five thousand dollars, or as a 1921
married individual filing separately whose federal adjusted gross 1922
income for such taxable year is less than seventy-five thousand dollars, 1923
or as a head of household whose federal adjusted gross income for such 1924
taxable year is less than seventy-five thousand dollars, or for a husband 1925
and wife who file a return under the federal income tax as married 1926
individuals filing jointly whose federal adjusted gross income for such 1927
taxable year is less than one hundred thousand dollars, (I) for the taxable 1928
year commencing January 1, 2019, fourteen per cent of any pension or 1929
annuity income, (II) for the taxable [year] years commencing January 1, 1930
2020, to January 1, 2022, inclusive, twenty-eight per cent of any pension 1931
or annuity income, (III) for the taxable year commencing January 1, 1932
[2021] 2023, forty-two per cent of any pension or annuity income, (IV) 1933
for the taxable year commencing January 1, [2022] 2024, fifty-six per cent 1934
of any pension or annuity income, (V) for the taxable year commencing 1935
January 1, [2023] 2025, seventy per cent of any pension or annuity 1936
income, (VI) for the taxable year commencing January 1, [2024] 2026, 1937 Governor's Bill No. 6443
LCO No. 3267 63 of 79
eighty-four per cent of any pension or annuity income, and (VII) for the 1938
taxable year commencing January 1, [2025] 2027, and each taxable year 1939
thereafter, any pension or annuity income; 1940
(xxii) The amount of lost wages and medical, travel and housing 1941
expenses, not to exceed ten thousand dollars in the aggregate, incurred 1942
by a taxpayer during the taxable year in connection with the donation 1943
to another person of an organ for organ transplantation occurring on or 1944
after January 1, 2017; 1945
(xxiii) To the extent properly includable in gross income for federal 1946
income tax purposes, the amount of any financial assistance received 1947
from the Crumbling Foundations Assistance Fund or paid to or on 1948
behalf of the owner of a residential building pursuant to sections 8-442 1949
and 8-443; 1950
(xxiv) To the extent properly includable in gross income for federal 1951
income tax purposes, the amount calculated pursuant to subsection (b) 1952
of section 12-704g for income received by a general partner of a venture 1953
capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 1954
time; and 1955
(xxv) To the extent any portion of a deduction under Section 179 of 1956
the Internal Revenue Code was added to federal adjusted gross income 1957
pursuant to subparagraph (A)(xiv) of this subdivision in computing 1958
Connecticut adjusted gross income, twenty-five per cent of such 1959
disallowed portion of the deduction in each of the four succeeding 1960
taxable years. 1961
Sec. 27. (Effective from passage) The provisions of section 12-722 of the 1962
general statutes shall not apply to any additional tax due as a result of 1963
the changes made to subparagraph (B) of subdivision (20) of subsection 1964
(a) of section 12-701 of the general statutes pursuant to section 26 of this 1965
act, for the taxable year commencing January 1, 2021. 1966
Sec. 28. Subdivision (2) of subsection (b) of section 12-704c of the 1967
general statutes is repealed and the following is substituted in lieu 1968 Governor's Bill No. 6443
LCO No. 3267 64 of 79
thereof (Effective from passage and applicable to taxable years commencing on 1969
or after January 1, 2021): 1970
(2) Notwithstanding the provisions of subsection (a) of this section, 1971
for the taxable years commencing January 1, 2017, to January 1, [2020] 1972
2022, inclusive, the credit under this section shall be allowed only for a 1973
resident of this state (A) who has attained age sixty-five before the close 1974
of the applicable taxable year, or (B) who files a return under the federal 1975
income tax for the applicable taxable year validly claiming one or more 1976
dependents. 1977
Sec. 29. Subparagraph (L) of subdivision (1) of section 12-408 of the 1978
general statutes is repealed and the following is substituted in lieu 1979
thereof (Effective from passage): 1980
(L) For calendar months commencing on or after July 1, [2021] 2023, 1981
the commissioner shall deposit into the municipal revenue sharing 1982
account established pursuant to section 4-66l seven and nine-tenths per 1983
cent of the amounts received by the state from the tax imposed under 1984
subparagraph (A) of this subdivision; and 1985
Sec. 30. Subparagraph (K) of subdivision (1) of section 12-411 of the 1986
general statutes is repealed and the following is substituted in lieu 1987
thereof (Effective from passage): 1988
(K) For calendar months commencing on or after July 1, [2021] 2023, 1989
the commissioner shall deposit into said municipal revenue sharing 1990
account seven and nine-tenths per cent of the amounts received by the 1991
state from the tax imposed under subparagraph (A) of this subdivision; 1992
and 1993
Sec. 31. Subdivision (8) of subsection (b) of section 12-214 of the 1994
general statutes is repealed and the following is substituted in lieu 1995
thereof (Effective from passage): 1996
(8) (A) With respect to income years commencing on or after January 1997
1, 2018, [and prior to January 1, 2021,] any company subject to the tax 1998 Governor's Bill No. 6443
LCO No. 3267 65 of 79
imposed in accordance with subsection (a) of this section shall pay, for 1999
such income year, except when the tax so calculated is equal to two 2000
hundred fifty dollars, an additional tax in an amount equal to ten per 2001
cent of the tax calculated under said subsection (a) for such income year, 2002
without reduction of the tax so calculated by the amount of any credit 2003
against such tax. The additional amount of tax determined under this 2004
subsection for any income year shall constitute a part of the tax imposed 2005
by the provisions of said subsection (a) and shall become due and be 2006
paid, collected and enforced as provided in this chapter. 2007
(B) Any company whose gross income for the income year was less 2008
than one hundred million dollars shall not be subject to the additional 2009
tax imposed under subparagraph (A) of this subdivision. This exception 2010
shall not apply to taxable members of a combined group that files a 2011
combined unitary tax return. 2012
Sec. 32. Subdivision (8) of subsection (b) of section 12-219 of the 2013
general statutes is repealed and the following is substituted in lieu 2014
thereof (Effective from passage): 2015
(8) (A) With respect to income years commencing on or after January 2016
1, 2018, [and prior to January 1, 2021,] the additional tax imposed on any 2017
company and calculated in accordance with subsection (a) of this section 2018
shall, for such income year, except when the tax so calculated is equal to 2019
two hundred fifty dollars, be increased by adding thereto an amount 2020
equal to ten per cent of the additional tax so calculated for such income 2021
year, without reduction of the tax so calculated by the amount of any 2022
credit against such tax. The increased amount of tax payable by any 2023
company under this section, as determined in accordance with this 2024
subsection, shall become due and be paid, collected and enforced as 2025
provided in this chapter. 2026
(B) Any company whose gross income for the income year was less 2027
than one hundred million dollars shall not be subject to the additional 2028
tax imposed under subparagraph (A) of this subdivision. This exception 2029
shall not apply to taxable members of a combined group that files a 2030 Governor's Bill No. 6443
LCO No. 3267 66 of 79
combined unitary tax return. 2031
Sec. 33. Subdivision (1) of subsection (a) of section 12-219 of the 2032
general statutes is repealed and the following is substituted in lieu 2033
thereof (Effective from passage): 2034
(a) (1) Each company subject to the provisions of this part shall pay 2035
for the privilege of carrying on or doing business within the state, the 2036
larger of the tax, if any, imposed by section 12-214, as amended by this 2037
act, and the tax calculated under this subsection. The tax calculated 2038
under this section shall be a tax of (A) three and one-tenth mills per 2039
dollar for income years commencing prior to January 1, [2021] 2024, (B) 2040
two and six-tenths mills per dollar for the income year commencing on 2041
or after January 1, [2021] 2024, and prior to January 1, [2022] 2025, (C) 2042
two and one-tenth mills per dollar for the income year commencing on 2043
or after January 1, [2022] 2025, and prior to January 1, [2023] 2026, (D) 2044
one and six-tenths mills per dollar for the income year commencing on 2045
or after January 1, 2026, and prior to January 1, 2027, (E) one and one-2046
tenth mills per dollar for the income year commencing on or after 2047
January 1, [2023] 2027, and prior to January 1, [2024] 2028, and [(E)] (F) 2048
zero mills per dollar for income years commencing on or after January 2049
1, [2024] 2028, of the amount derived (i) by adding (I) the average value 2050
of the issued and outstanding capital stock, including treasury stock at 2051
par or face value, fractional shares, scrip certificates convertible into 2052
shares of stock and amounts received on subscriptions to capital stock, 2053
computed on the balances at the beginning and end of the taxable year 2054
or period, the average value of surplus and undivided profit computed 2055
on the balances at the beginning and end of the taxable year or period, 2056
and (II) the average value of all surplus reserves computed on the 2057
balances at the beginning and end of the taxable year or period, (ii) by 2058
subtracting from the sum so calculated (I) the average value of any 2059
deficit carried on the balance sheet computed on the balances at the 2060
beginning and end of the taxable year or period, and (II) the average 2061
value of any holdings of stock of private corporations including treasury 2062
stock shown on the balance sheet computed on the balances at the 2063
beginning and end of the taxable year or period, and (iii) by 2064 Governor's Bill No. 6443
LCO No. 3267 67 of 79
apportioning the remainder so derived between this and other states 2065
under the provisions of section 12-219a, provided in no event shall the 2066
tax so calculated exceed one million dollars or be less than two hundred 2067
fifty dollars. 2068
Sec. 34. (Effective from passage) The provisions of section 12-242d of the 2069
general statutes shall not apply to any additional tax due as a result of 2070
the changes made to subdivision (8) of subsection (b) of section 12-214 2071
of the general statutes pursuant to section 31 of this act or to section 12-2072
219 of the general statutes pursuant to sections 32 and 33 of this act, for 2073
income years commencing on or after January 1, 2021, but prior to the 2074
effective date of sections 32 to 34, inclusive, of this act. 2075
Sec. 35. Subsection (d) of section 12-217n of the general statutes is 2076
repealed and the following is substituted in lieu thereof (Effective from 2077
passage and applicable to income years commencing on or after January 1, 2078
2021): 2079
(d) (1) The credit provided for by this section shall be allowed for any 2080
income year commencing on or after January 1, 1993, provided any 2081
credits allowed for income years commencing on or after January 1, 2082
1993, and prior to January 1, 1995, may not be taken until income years 2083
commencing on or after January 1, 1995, and, for the purposes of 2084
subdivision (2) of this subsection, shall be treated as if the credit for each 2085
such income year first became allowable in the first income year 2086
commencing on or after January 1, 1995. 2087
(2) No more than one-third of the amount of the credit allowable for 2088
any income year may be included in the calculation of the amount of the 2089
credit that may be taken in that income year. 2090
(3) The total amount of the credit under subdivision (1) of this 2091
subsection that may be taken for any income year may not exceed the 2092
greater of (A) fifty per cent of the taxpayer's tax liability or in the case of 2093
a combined return, fifty per cent of the combined tax liability, for such 2094
income year, determined without regard to any credits allowed under 2095
this section, and (B) the lesser of (i) two hundred per cent of the credit 2096 Governor's Bill No. 6443
LCO No. 3267 68 of 79
otherwise allowed under subsection (c) of this section for such income 2097
year, and (ii) ninety per cent of the taxpayer's tax liability or in the case 2098
of a combined return, ninety per cent of the combined liability for such 2099
income year, determined without regard to any credits allowed under 2100
this section. 2101
(4) (A) Credits that are allowed under this section [but] for income 2102
years commenting prior to January 1, 2021, that exceed the amount 2103
permitted to be taken in an income year [by reason] pursuant to the 2104
provisions of subdivision (1), (2) or (3) of this subsection [,] shall be 2105
carried forward to each of the successive income years until such credits, 2106
or applicable portion thereof, are fully taken. 2107
(B) Credits that are allowed under this section for income years 2108
commencing on or after January 1, 2021, that exceed the amount 2109
permitted to be taken in an income year pursuant to the provisions of 2110
subdivision (1), (2) or (3) of this subsection shall be carried forward to 2111
each of the successive income years until such credits, or applicable 2112
portion thereof, are fully taken. No credit or portion thereof allowed 2113
under this section for income years commencing on or after January 1, 2114
2021, shall be carried forward for a period of more than fifteen years. 2115
(C) No credit [permitted] allowed under this section shall be taken in 2116
any income year until the full amount of all allowable credits carried 2117
forward to such year from any prior income year, commencing with the 2118
earliest such prior year, that otherwise may be taken under subdivision 2119
(2) of this subsection in that income year, have been fully taken. 2120
Sec. 36. Subsection (a) of section 12-264 of the general statutes is 2121
repealed and the following is substituted in lieu thereof (Effective July 1, 2122
2021): 2123
(a) Each (1) municipality, or department or agency thereof, or district 2124
manufacturing, selling or distributing gas to be used for light, heat or 2125
power, (2) company the principal business of which is manufacturing, 2126
selling or distributing gas or steam to be used for light, heat or power, 2127
including each foreign electric company, as defined in section 16-246f, 2128 Governor's Bill No. 6443
LCO No. 3267 69 of 79
that holds property in this state, and (3) company required to register 2129
pursuant to section 16-258a, shall pay a quarterly tax upon gross 2130
earnings from such operations in this state. Gross earnings from such 2131
operations under subdivisions (1) and (2) of this subsection shall 2132
include, as determined by the Commissioner of Revenue Services, (A) 2133
all income included in operating revenue accounts in the uniform 2134
systems of accounts prescribed by the Public Utilities Regulatory 2135
Authority for operations within the taxable quarter and, with respect to 2136
each such company, (B) all income identified in said uniform systems of 2137
accounts as income from merchandising, jobbing and contract work, (C) 2138
all revenues identified in said uniform systems of accounts as income 2139
from nonutility operations, (D) all revenues identified in said uniform 2140
systems of accounts as nonoperating retail income, and (E) receipts from 2141
the sale of residuals and other by-products obtained in connection with 2142
the production of gas, electricity or steam. Gross earnings from such 2143
operations under subdivision (3) of this subsection shall be gross income 2144
from the sales of natural gas. [, provided gross income shall not include 2145
income from the sale of natural gas to an existing combined cycle facility 2146
comprised of three gas turbines providing electric generation services, 2147
as defined in section 16-1, with a total capacity of seven hundred 2148
seventy-five megawatts, for use in the production of electricity.] Gross 2149
earnings of a gas company, as defined in section 16-1, shall not include 2150
income earned in a taxable quarter commencing prior to June 30, 2008, 2151
from the sale of natural gas or propane as a fuel for a motor vehicle. No 2152
deductions shall be allowed from such gross earnings for any 2153
commission, rebate or other payment, except a refund resulting from an 2154
error or overcharge and those specifically mentioned in section 12-265. 2155
Gross earnings of a company, as described in subdivision (2) of this 2156
subsection, shall not include income earned in any taxable quarter 2157
commencing on or after July 1, 2000, from the sale of steam. 2158
Sec. 37. (NEW) (Effective from passage and applicable to quarterly periods 2159
commencing on or after July 1, 2021) Notwithstanding any provision of the 2160
general statutes allowing for a higher amount, for quarterly periods 2161
commencing on or after July 1, 2021, the amount of the tax credit or 2162 Governor's Bill No. 6443
LCO No. 3267 70 of 79
credits allowable against the tax imposed under chapter 212 of the 2163
general statutes shall not exceed fifty and one one-hundredths per cent 2164
of the amount of tax due from a taxpayer under said chapter with 2165
respect to any such quarterly period of the taxpayer prior to the 2166
application of such credit or credits. 2167
Sec. 38. (Effective from passage) (a) As used in this section: 2168
(1) "Person" has the same meaning as provided in section 12-1 of the 2169
general statutes; 2170
(2) "Affected taxable period" means any taxable period ending on or 2171
before December 30, 2020; 2172
(3) "Affected person" means a person owing any tax for an affected 2173
taxable period; 2174
(4) "Tax" means any tax imposed by any law of this state and required 2175
to be collected by the department, other than the tax imposed under 2176
chapter 222 of the general statutes on any licensee, as defined in 2177
subdivision (1) of subsection (c) of section 12-486 of the general statutes; 2178
(5) "Commissioner" means the Commissioner of Revenue Services; 2179
and 2180
(6) "Department" means the Department of Revenue Services. 2181
(b) (1) The commissioner shall establish a tax amnesty program for 2182
persons owing any tax for any affected taxable period. The tax amnesty 2183
program shall be conducted during the period from November 1, 2021, 2184
to January 31, 2022, inclusive. 2185
(2) An amnesty application shall be prepared by the commissioner 2186
that shall provide for specification by the affected person of the tax and 2187
the affected taxable period for which amnesty is being sought under the 2188
tax amnesty program. The commissioner may require that such amnesty 2189
applications be filed electronically and that the amounts associated with 2190
such applications be paid electronically. 2191 Governor's Bill No. 6443
LCO No. 3267 71 of 79
(3) Any affected person who files an amnesty application shall, 2192
subject to review of such application by the commissioner, be eligible 2193
for a reduction of interest due on the amount of tax owed by such person 2194
for an affected taxable period. Upon compliance with all requirements 2195
of the tax amnesty program under this section, an affected person whose 2196
application is granted by the commissioner shall be entitled to a 2197
seventy-five per cent reduction in interest that would otherwise be 2198
owed on the tax such person owes for the affected taxable period. 2199
(4) The tax amnesty program shall provide that, upon the filing of an 2200
amnesty application by an affected person and payment by such person 2201
of the tax and interest determined to be due by the commissioner from 2202
such person for an affected taxable period, the commissioner shall not 2203
seek to collect any civil penalties that may be applicable and shall not 2204
seek criminal prosecution for any affected person for an affected taxable 2205
period for which amnesty has been granted. 2206
(5) An amnesty application, if filed by an affected person and if 2207
granted by the commissioner, shall constitute an express and absolute 2208
relinquishment by the affected person of all of the affected person's 2209
administrative and judicial rights of appeal that have not run or 2210
otherwise expired as of the date payment is made for an affected taxable 2211
period, and no payment made by an affected person pursuant to this 2212
section for an affected taxable period shall be refunded or credited to 2213
such person. The commissioner shall not consider any request to 2214
exercise the authority granted to the commissioner under section 12-39s 2215
of the general statutes in connection with any amnesty application 2216
granted by the commissioner under this section. 2217
(6) Each affected person who files an amnesty application during the 2218
period the tax amnesty program under this section is conducted shall 2219
pay all amounts due to the state under such program with such 2220
application. Any person who fails to pay all such amounts due shall be 2221
ineligible for amnesty under such program. 2222
(7) No amnesty application shall be accepted for an affected taxable 2223 Governor's Bill No. 6443
LCO No. 3267 72 of 79
period in which the liability for such period has already been paid, 2224
unless such application is filed to report an additional amount of tax for 2225
such period. In no event shall an amnesty application result in a refund 2226
or credit of any amount of tax, penalty or interest previously paid. 2227
(c) Amnesty shall not be granted pursuant to subsection (b) of this 2228
section to any affected person who (1) is a party to any criminal 2229
investigation or to any criminal litigation that is pending on July 1, 2021, 2230
in any court of the United States or this state, (2) is a party to a closing 2231
agreement with the commissioner, (3) has made an offer of compromise 2232
that has been accepted by the commissioner, or (4) is a party to a 2233
managed audit agreement. 2234
(d) The provisions of subsection (d) of section 12-35i of the general 2235
statutes shall not apply to an affected taxable period that ends on or 2236
before November 30, 2012, for which no return has been previously 2237
filed, if such period is the subject of or included in any amnesty 2238
application granted by the commissioner under this section, provided 2239
the affected person pays all amounts due to the state in connection with 2240
such application in accordance with the provisions of subdivision (6) of 2241
subsection (b) of this section. 2242
(e) Any person who wilfully delivers or discloses to the commissioner 2243
or the commissioner's authorized agent any application, list return, 2244
account, statement or other document, known by such person to be 2245
fraudulent or false in any material matter, shall be ineligible for the tax 2246
amnesty program under this section and may, in addition to any other 2247
penalty provided by law, be fined not more than five thousand dollars 2248
or imprisoned not more than five years nor less than one year, or both. 2249
(f) Notwithstanding any provision of the general statutes, the 2250
commissioner may do all things necessary to provide for the timely 2251
implementation of this section. 2252
Sec. 39. (Effective from passage) Notwithstanding the provisions of 2253
section 4-66k of the general statutes, as amended by this act, the 2254
Comptroller shall transfer from the regional planning incentive account, 2255 Governor's Bill No. 6443
LCO No. 3267 73 of 79
established pursuant to said section: (1) On or before June 30, 2022, three 2256
million dollars, to be credited to the resources of the General Fund for 2257
the fiscal year ending June 30, 2022; and (2) on or before June 30, 2023, 2258
three million dollars, to be credited to the resources of the General Fund 2259
for the fiscal year ending June 30, 2023. 2260
Sec. 40. Section 4-66k of the general statutes is repealed and the 2261
following is substituted in lieu thereof (Effective from passage): 2262
(a) There is established an account to be known as the "regional 2263
planning incentive account" which shall be a separate, nonlapsing 2264
account within the General Fund. The account shall contain any moneys 2265
required by law to be deposited in the account. [Except as provided in 2266
subsection (d) of this section, moneys,] Moneys in the account shall be 2267
expended by the Secretary of the Office of Policy and Management in 2268
accordance with subsection (b) of this section for the purposes of first 2269
providing funding to regional planning organizations in accordance 2270
with the provisions of subsections (b) and (c) of this section and then to 2271
providing grants under the regional performance incentive program 2272
established pursuant to section 4-124s. 2273
(b) For the fiscal year ending June 30, 2014, funds from the regional 2274
planning incentive account shall be distributed to each regional 2275
planning organization, as defined in section 4-124i, revision of 1958, 2276
revised to January 1, 2013, in the amount of one hundred twenty-five 2277
thousand dollars. Any regional council of governments that is 2278
comprised of any two or more regional planning organizations that 2279
voluntarily consolidate on or before December 31, 2013, shall receive an 2280
additional payment in an amount equal to the amount the regional 2281
planning organizations would have received if such regional planning 2282
organizations had not voluntarily consolidated. 2283
(c) Beginning in the fiscal year ending June 30, 2015, and annually 2284
thereafter, funds from the regional planning incentive account shall be 2285
distributed to each regional council of governments formed pursuant to 2286
section 4-124j, in the amount of one hundred twenty-five thousand 2287 Governor's Bill No. 6443
LCO No. 3267 74 of 79
dollars plus fifty cents per capita, using population information from 2288
the most recent federal decennial census. Any regional council of 2289
governments that is comprised of any two or more regional planning 2290
organizations, as defined in section 4-124i, revision of 1958, revised to 2291
January 1, 2013, that voluntarily consolidated on or before December 31, 2292
2013, shall receive a payment in the amount of one hundred twenty-five 2293
thousand dollars for each such regional planning organization that 2294
voluntarily consolidated on or before said date. 2295
[(d) There is established a regionalization subaccount within the 2296
regional planning incentive account. If the Connecticut Lottery 2297
Corporation offers online its existing lottery draw games through the 2298
corporation's Internet web site, online service or mobile application, the 2299
revenue from such online offering that exceeds an amount equivalent to 2300
the costs of the debt-free community college program under section 10a-2301
174 shall be deposited in the subaccount, or, if such online offering is not 2302
established, the amount provided under subsection (b) of section 364 of 2303
public act 19-117 for regionalization initiatives shall be deposited in the 2304
subaccount. Moneys in the subaccount shall be expended only for the 2305
purposes recommended by the task force established under section 4-2306
66s.] 2307
Sec. 41. Subsection (a) of section 4-66s of the general statutes is 2308
repealed and the following is substituted in lieu thereof (Effective from 2309
passage): 2310
(a) There is established a task force to study ways to encourage 2311
greater and improved collaboration among the state and municipal 2312
governments and regional bodies. Such study shall include, but not be 2313
limited to, (1) the examination of functions, activities or services, 2314
currently performed by municipalities individually, that might be more 2315
efficiently performed by the Office of Policy and Management on behalf 2316
of municipalities willing to opt in or opt out of accepting such 2317
performance on their behalf, (2) the examination of functions, activities 2318
or services, currently performed by the state or municipalities that 2319
might be provided in a more efficient, high-quality, cost-effective or 2320 Governor's Bill No. 6443
LCO No. 3267 75 of 79
responsive manner by regional councils of governments, regional 2321
educational service centers or other similar regional bodies that are 2322
responsive to residents, (3) cost savings of government services, 2323
including, but not limited to, joint purchasing, for a municipality and its 2324
local or regional school district, (4) cost savings through the sharing of 2325
government services, including, but not limited to, joint purchasing, 2326
among municipalities, (5) the standardization and alignment of various 2327
regions of the state, and (6) analyses of any other initiatives that might 2328
facilitate the delivery of services in a more efficient, high-quality, cost-2329
effective or responsive manner. [, and (7) a recommendation of the 2330
division, if any, of revenue in the regionalization subaccount within the 2331
regional planning incentive account established under section 4-66k, 2332
between the Office of Policy and Management and the regional councils 2333
of governments, regional educational service centers or similar regional 2334
bodies for the purposes of subdivisions (1) and (2) of this subsection.] 2335
Any initiative recommended to be undertaken by the task force shall be 2336
offered to municipalities on a voluntary basis. 2337
Sec. 42. (Effective from passage) The Comptroller shall transfer from the 2338
General Fund to the Tourism Fund established under section 10-395b of 2339
the general statutes: (1) For the fiscal year ending June 30, 2021, nine 2340
million eight hundred thousand dollars; and (2) for the fiscal year 2341
ending June 30, 2022, three million one hundred thousand dollars. 2342
Sec. 43. (Effective from passage) For the fiscal years ending June 30, 2343
2022, and June 30, 2023, the amount deemed appropriated pursuant to 2344
sections 3-20i and 3-115b of the general statutes in each of said fiscal 2345
years shall be one dollar. 2346
Sec. 44. (Effective from passage) Notwithstanding the provisions of 2347
section 4-30a of the general statutes, the Comptroller shall transfer from 2348
the Budget Reserve Fund: (1) On July 1, 2021, seven hundred seventy-2349
five million dollars, to be credited to the resources of the General Fund 2350
and used as revenue for the fiscal year ending June 30, 2022; and (2) on 2351
July 1, 2022, nine hundred seventy-five million dollars, to be credited to 2352
the resources of the General Fund and used as revenue for the fiscal year 2353 Governor's Bill No. 6443
LCO No. 3267 76 of 79
ending June 30, 2023. The amount of a transfer set forth in this section 2354
shall be reduced by the amount of any federal aid received by the state 2355
that is used to reduce state budgetary requirements for such fiscal year. 2356
Sec. 45. Subsection (a) of section 10a-8c of the general statutes is 2357
repealed and the following is substituted in lieu thereof (Effective from 2358
passage): 2359
(a) Except as provided in subsection (b) of this section, 2360
notwithstanding the provisions of sections 10a-77a, 10a-99a, 10a-109c, 2361
10a-109i and 10a-143a, no funds shall be appropriated to the Office of 2362
Higher Education for grants pursuant to subdivision (2) of subsection 2363
(a) of section 10a-77a, subdivision (2) of subsection (a) of section 10a-2364
99a, subdivision (2) of subsection (b) of section 10a-109i and subdivision 2365
(2) of subsection (a) of section 10a-143a, [: (1) Until] until such time as 2366
the amount in the Budget Reserve Fund, established in section 4-30a, 2367
equals [ten] fifteen per cent of the net General Fund appropriations for 2368
the fiscal year in progress, [(2)] and provided further, (1) the amount of 2369
the grants appropriated shall be reduced proportionately if the amount 2370
available is less than the amount required for such grants, and [(3)] (2) 2371
the amount of funds available to be appropriated during any fiscal year 2372
for such grants shall not exceed twenty-five million dollars. 2373
Sec. 46. (NEW) (Effective from passage) (a) The Attorney General may, 2374
pursuant to the Attorney General's authority under section 3-125 of the 2375
general statutes, enter into any agreement concerning any state-wide 2376
opioid claim, including an agreement to compromise, release, waive or 2377
otherwise settle such claim, on behalf of the state and any political 2378
subdivisions. For the purposes of this section, "state-wide opioid claim" 2379
means any claim the state asserts or could assert concerning the 2380
manufacturing, marketing, distributing or selling of opioids, or 2381
activities related thereto. 2382
(b) Notwithstanding any provision of the general statutes, no 2383
claimant may assert any state-wide opioid claim for which the state has 2384
entered into an agreement to compromise, release, waive or otherwise 2385 Governor's Bill No. 6443
LCO No. 3267 77 of 79
settle such claim pursuant to this section. 2386
Sec. 47. Section 368 of public act 19-117 is repealed. (Effective from 2387
passage) 2388
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2022 1-1j
Sec. 2 July 1, 2022 3-99a(g)
Sec. 3 July 1, 2022 14-11i
Sec. 4 July 1, 2022 19a-88(g)
Sec. 5 July 1, 2022 45a-113b
Sec. 6 July 1, 2022 51-193b
Sec. 7 from passage New section
Sec. 8 from passage 12-806(b)(4)
Sec. 9 from passage 12-806(b)(13)
Sec. 10 from passage 12-810
Sec. 11 from passage 12-818
Sec. 12 from passage 52-553
Sec. 13 from passage 52-554
Sec. 14 July 1, 2021, and
applicable to calendar
quarters commencing on or
after July 1, 2021
12-263p
Sec. 15 July 1, 2021, and
applicable to calendar
quarters commencing on or
after July 1, 2021
New section
Sec. 16 July 1, 2021 12-263i
Sec. 17 July 1, 2021, and
applicable to calendar
quarters commencing on or
after July 1, 2021
12-263s
Sec. 18 July 1, 2021, and
applicable to calendar
quarters commencing on or
after July 1, 2021
12-263t
Sec. 19 July 1, 2021, and
applicable to calendar
quarters commencing on or
after July 1, 2021
12-263u Governor's Bill No. 6443
LCO No. 3267 78 of 79
Sec. 20 July 1, 2021 12-263v
Sec. 21 July 1, 2021, and
applicable to calendar
quarters commencing on or
after July 1, 2021
12-263x
Sec. 22 July 1, 2021 3-114s
Sec. 23 from passage 19a-37f
Sec. 24 from passage and
applicable to calendar
months commencing on or
after January 1, 2023
New section
Sec. 25 from passage 3-20j
Sec. 26 from passage and
applicable to taxable years
commencing on or after
January 1, 2021
12-701(a)(20)(B)
Sec. 27 from passage New section
Sec. 28 from passage and
applicable to taxable years
commencing on or after
January 1, 2021
12-704c(b)(2)
Sec. 29 from passage 12-408(1)(L)
Sec. 30 from passage 12-411(1)(K)
Sec. 31 from passage 12-214(b)(8)
Sec. 32 from passage 12-219(b)(8)
Sec. 33 from passage 12-219(a)(1)
Sec. 34 from passage New section
Sec. 35 from passage and
applicable to income years
commencing on or after
January 1, 2021
12-217n(d)
Sec. 36 July 1, 2021 12-264(a)
Sec. 37 from passage and
applicable to quarterly
periods commencing on or
after July 1, 2021
New section
Sec. 38 from passage New section
Sec. 39 from passage New section
Sec. 40 from passage 4-66k
Sec. 41 from passage 4-66s(a)
Sec. 42 from passage New section
Sec. 43 from passage New section Governor's Bill No. 6443
LCO No. 3267 79 of 79
Sec. 44 from passage New section
Sec. 45 from passage 10a-8c(a)
Sec. 46 from passage New section
Sec. 47 from passage Repealer section
Statement of Purpose:
To implement the Governor's budget recommendations.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]