The talk of a business-friendly Connecticut may have been more promise in word than in deed, industry leaders say.
At the midway point of the 2011 General Assembly legislative session, businesses have some things to cheer about, but a number of controversial measures passing out of committee will make it harder for employers to grow in Connecticut if they get through the House and Senate, business lobbyists say.
“Right now we are probably leaning more toward the negative side than the positive side,” said Bonnie Stewart, a lobbyist with Connecticut Business & Industry Association. “There is more of a willingness to look at issues that are important to the business community. But while many lawmakers say they want to be more business friendly, they are still acting on negative measures.”
And the worrisome proposals don’t include Gov. Dannel P. Malloy’s two-year budget plan, which is full of controversial tax increases and program cuts. That budget debate is still in its early stages.
When many key legislative committees wrapped up their sessions in March, a flurry of bills that industries have fought for years advanced toward becoming law. They include making Connecticut the first state to mandate employers with 50 or more workers to provide employees paid sick leave, and easing the ability of workers to unionize by limiting employer’s communication on political views.
There are also plenty of tax proposals floating around the legislature, including measures that aim to close so-called corporate loopholes by preventing companies from shifting their profits to foreign subsidiaries, and another measure that would require the state to disclose tax breaks and exemptions held by Connecticut businesses.
Out of the Energy and Technology Committee, an omnibus proposal to overhaul Connecticut’ energy policy has been almost overshadowed by a proposal to tax power plants running on nuclear, oil or coal.
Experts from CBIA, the Retail Energy Suppliers Association and the state’s electric generators all agree that, if passed, the $340 million tax on nuclear, oil and coal would be passed onto ratepayers, who already face the second highest electricity rates in the nation. More than 90 percent of the tax from Senate Bill 1176 would be paid by Dominion, operator of the nuclear Millstone Power Station in Waterford which provides half of the state’s generation.
“It is unreasonable to ask the state electric generators to disproportionately pay for the state’s spending problems,” said Ken Holt, spokesman for Dominion Nuclear Connecticut, Inc. “This is going to increase the electric bill of everyone in Connecticut.”
As for the omnibus energy reform Senate Bill 1, CBIA lobbyist Kevin Hennessy said the total effect of the legislation’s many provisions will be too costly. The provisions include expanding private solar installations in Connecticut, creating a new Department of Energy and Environmental Protection, and creating energy efficiency financing.
“We are convinced the cumulative costs will raise the price of electricity,” Hennessy said.
Meanwhile, the insurance and real estate committee has passed several new health insurance mandates, including expanded coverage for eye drops, bone marrow testing, ostomy supplies, breast MRIs, clinical trials, and prostate screening and treatment. And the sweeping health care reform proposal — SustiNet — still remains alive, although support for the measure, which calls for a public insurance option and payment reforms, has diminished in recent weeks.
Some business groups, including CBIA and the National Federation of Independent Business, and even Malloy have raised concerns about the cost of SustiNet. The total price tag of the plan has not yet been clearly defined.
But it’s not all doom and gloom for business in Connecticut, as the Commerce Committee has passed several business-friendly proposals, proponents say. They require the legislature to consider the jobs impact of proposed laws; set up tax-free savings accounts for manufacturers; establish a more nimble Bradley International Airport authority; reduce liability for brownfield redevelopment; and help businesses maneuver the state’s regulations and incentive programs.
Senate Bill 842 requires a jobs-impact statement to accompany certain legislative proposals. Stewart said the measure is a good one, although the CBIA is pushing for some minor changes to broaden the impact assessment and better define which bills would be examined.
House Bill 6584 lets manufacturers put $250,000 annually into tax-free savings accounts to spend on new equipment, facilities and workforce training, provided it is all done in Connecticut.
Senate Bill 1003 establishes the Connecticut Airport Authority. The new agency will be more independent for the state Department of Transportation in operating and growing Connecticut’s six airports, including Bradley International Airport in Windsor Locks.
House Bill 6526 encourages brownfield redevelopment. The legislation upgrades several pilot efforts to permanent programs. It also limits a new buyer’s environmental clean-up liability to the onsite contamination, instead of requiring clean-up for contamination on other properties as well.
“That provides developers with a lot more certainty,” said Eric Brown, CBIA environmental lobbyist.
A host of bills aimed at producing a one-stop shop for businesses are also moving forward.
That includes House Bill 6316 which directs the Secretary of the State’s office to establish an electronic business portal as a single entry point for business seeking information about permits and licenses, tax requirements and benefits, and state financial incentives and programs.
While it’s too early to tell what the final tally will be, there is still optimism going into the final two months of the session.
“While the message hasn’t been as responsive as we would have liked, there is still an opportunity to end on a positive note,” said CBIA’s Stewart. “We don’t want to adopt measures that increase the cost of employing people.”
Business-related bills passed by legislative committees:
S.B. 1 Multi-faceted reform of Connecticut energy policy
S.B. 842 Reviews the jobs impact of certain proposed legislation
S.B. 913 Requires certain employers to provide paid sick leave
S.B. 1003 Establishes a quasi-public Connecticut Airport Authority
S.B. 1176 Taxes generators of nuclear, coal and oil electricity
H.B. 5460 Restricts employer-employee communication on political issues
S.B.6305 Creates Sustinet health care reform proposal
H.B. 6316 Creates single point of entry for businesses dealing with government
H.B. 6526 Promotes brownfield redevelopment
H.B. 6584 Allows manufacturers to create tax-free savings accounts
Sources: Connecticut General Assembly
