As the clock struck midnight on Wednesday, state lawmakers failed to act on a flurry of bills that would have impacted the business community, and did not provide state residents and businesses with a balanced budget.
After five months of intense finger pointing, Democrats and Republicans still remain divided on how to close a projected $8.7 billion budget deficit for the next two fiscal years and will hold a special session to hash it out.
Democratic lawmakers have proposed a plan that would raise taxes by $3.4 billion in the state by reducing the corporate tax credit, adding a 30 percent surcharge on corporate profits, and implementing a progressive income tax.
Gov. M. Jodi Rell recently presented an 11th-hour $37.2 billion budget that calls for no new tax increases, eliminates 10 state offices and 70 boards and commissions, and cuts an additional $650 million from her prior budgets. It also securitizes $350 million in the last quarter of 2011.
Democrats have said that Rell’s proposal still does not close the deficit.
Besides tax policies, other contentious business-related issues debated under the gold dome this session grabbed plenty of attention.
They included a proposal to institute mandatory paid sick leave days, which would make Connecticut the first state to do so, as well as an effort to make it easier for employees to organize.
Large business organizations, which typically oppose employer mandates, said the recession made this year an especially inappropriate time for further government mandates, arguing they would add unnecessary costs to already struggling businesses.
Meanwhile, a pair of revolutionary health insurance proposals, including one that would push for universal health care in Connecticut, await action from Rell’s office.
Finally, Connecticut, after years of unsuccessfully waiting for federal action, pushed for stricter regulation of hedge funds.
While the legislature’s deadline passed, bills that did not get voted on could be brought up during the special session.
The business-related bills include:
Senate Bill 365 Captive audience meetings
Prohibits private and state employers from requiring employees to attend meetings primarily about the employer’s position on religious or political matters. That includes “captive audience” meetings, which are traditionally used by employers to state their case against workers forming a union.
Status: Passed Senate; no House action.
Senate Bill 953 Hedge funds
Requires private investment funds located or operating in Connecticut that are not registered with the Securities and Exchange Commission to abide by the same regulations of those that are. Directly, it would require funds to disclose any conflicts of interest between the investment adviser and the investor.
Status: Passed Senate, no House action.
House Bill 6600 SustiNet
Opens the state employees health insurance pool to people covered under state assistance programs and transitions in the uninsured, underinsured, and small businesses. Specifically, the bill calls for the formation of a nine-member board of directors that must make legislative recommendations on the details of the SustiNet plan by Jan. 1, 2011.
Status: Passed House and Senate.
House Bill 5021 Health insurance mandates
Requires certain health insurance policies offered by employers to include coverage for hearing aids, bone marrow testing, surgical removal of tumors, repairs to or replacements of prosthetic devices, and treatment of leukemia, including outpatient chemotherapy.
Status: Passed House and Senate.
House Bill 5930 Small business impact analyses
Requires state agencies to outline how much a small business — defined as employing 75 or fewer — would have to pay in administration, record-keeping and reporting costs to comply with any new state regulation.
Status: Passed House and Senate.
Senate Bill 1049 Ban on gifts to health care providers
Prohibits pharmaceutical and medical device companies from providing many types of gifts and compensation to health care providers. It also requires disclosure compensation of more than $1,000 to a health care provider.
Status: No action.
House Bill 6582 Connecticut Healthcare Partnership
Opens the state employee health insurance pool and changes it to a self-insured plan to provide coverage to municipalities, nonprofits and small businesses. The state becomes the primary insurer, making it responsible to pay for medical claims.
Status: Passed House and Senate.
House Bill 6187 Paid sick leave to employees
Requires employers with fifty or more full-time employees in the state to provide six paid days to their employees to use for sickness, a child’s sickness or to deal with sexual assault or family violence issues.
Status: Passed House; no Senate action.
