CCA Lobbying Efforts Pay Off
The Connecticut General Assembly adjourned after adopting a spending and bonding package much later then their constitutional deadline. The Connecticut Carwash Association (CCA) and its members were active and involved in a number of important business policy fights during the session. The following are some issues the CCA has been monitoring.
State Budget
Amid projections of a nearly $1 billion state budget surplus for fiscal year 2007, and with a similar amount tucked into Connecticut’s Rainy Day Fund, state lawmakers and Governor Rell agreed during the June special session on a $36 billion, two-year budget. While the budget bills fund important initiatives such as education, health care, brownfield remediation, energy and housing, the state’s spending cap is exceeded in the first year. The new budget does not, however, include any major tax increases. This year lawmakers also enacted a measure to further encourage the film industry in Connecticut and created incentives for rehabilitating historic property used for commercial and residential purposes.
Energy Legislation
After identifying energy as a priority subject for this year’s session, lawmakers eventually approved a wide-ranging energy bill that addresses many of the concerns of the business community. The legislation calls for a long-term energy plan for the state and focuses on helping both Connecticut consumers become more efficient energy users, and ensuring that consumers have access to adequate, stable and affordable energy resources.
Health Care
Lawmakers eventually approved a wide-ranging energy bill that addresses many of the concerns of the business community. The legislation calls for a long-term energy plan for the state and focuses on helping both Connecticut consumers become more efficient energy users, and ensuring that consumers have access to adequate, stable and affordable energy resources.
With the cost of health insurance escalating faster than nearly every other economic indicator, the winds of health care reform were blowing strongly during the 2007 legislative session. The business community called for market-based approaches that would expand access to quality, employer-based health benefit coverage. Other advocates, however, called for the abolition of Connecticut’s employer-sponsored health insurance through the imposition of a government-run health care scheme. Even though lawmakers did temporarily shut the door on both a single-payer and statewide purchasing pool system, the door was left open for a future push in this direction. Lawmakers passed legislation that created new authorities that will look at both the viability of these systems and future reform proposals and the establishment of certain systems of universal primary care. In the end, a package of positive reform measures was passed (SB-1484) that included several measures consistent with some of the business community’s priorities for health care. But given this year’s legislative trends, the future of the state’s private system of employer-based health insurance is still in doubt.
Transportation
After two years of approving substantial investments to upgrade Connecticut’s transportation infrastructure — including $1.3 billion in 2005 and $2.3 billion in 2006 — lawmakers this year considered more-modest proposals to keep the momentum going. The most significant proposal (HB-6366) was not approved, but its recommendations to implement the next phase of transportation improvements mostly based on the work of the Transportation Strategy Board were expected to be included in the bonding package. Also passed was an act concerning the diesel fuel tax. This act makes significant changes to the way diesel fuel is taxed in Connecticut. Essentially, it evens the playing field for those fleets that, for all intents and purposes, must purchase diesel fuel in Connecticut because they’re located here, and those who do business in, or pass through Connecticut and can easily avoid buying gas in Connecticut.
Workplace Costs
This year, the CCA and many business groups successfully defeated several measures, mostly Labor Committee bills, that would have significantly increased labor and workplace costs for Connecticut businesses. Among the major negative bills proposed were measures to:
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Increase scarring and discretionary benefits for workers’ compensation claimants.
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Require employers to provide all employees with a minimum amount of paid sick leave.
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Prohibit employers from implementing “use-it-or-lose-it” policies regarding paid time off.
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Make employers liable for acts of “bullying” in the workplace.
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Require employers of 100 of more employees to institute employee-developed health and safety protocols and guidelines
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Restrict communication between employers and their employees about matters that may affect the workplace, community at large and the state economy.
While lawmakers fortunately either defeated or took no action on these proposals, the measures nevertheless sent decidedly anti-business messages from the legislature. Workers’ comp rates to rise in 2008
The Connecticut Insurance Department has issued its final rate order approving the workers’ compensation insurance rates proposed by the National Council on Compensation Insurance (NCCI). On average, Connecticut employers will see increases in the basic rates affecting their workers’ compensation premiums in 2008. The overall change approved for policies purchased in the normal, or “voluntary,” market is +3.4 percent. The overall premium level change approved for the assigned risk pool is +1.2 percent. The rates will be effective Jan. 1, 2008, for new and renewal policies.
Governor Economic Strategy Forums
Gov. M. Jodi Rell has announced that the Department of Economic and Community Development will hold a series of 10 regional forums around the state to provide businesses and the public the opportunity to share their views on the future course of Connecticut’s economy. Businesses are invited to contribute ideas, concerns and their input is welcomed. The forums are the result of Public Act 07-239, An Act Concerning Responsible Growth, which spelled out Gov. Rell’s plans for growing the state’s economy while preserving and enhancing Connecticut’s natural treasures. The new law, signed by the governor in July, requires the Department of Economic and Community Development (DECD) to develop an economic strategic plan by July 1, 2009. The strategic plan will establish clear and measurable goals and objectives along with necessary strategies for the next five, 10, 15 and 20 years. Key areas to be studied include: transportation, technology transfer, brownfield remediation and redevelopment, business, affordable and work force housing, land use policy, taxation, availability of capital and energy costs and supply.
P.J. Cimini, Esq. is the CCA's lobbyist and a partner in Capitol Strategies Group, LLC, in Hartford. You can reach P.J. at 860/293-2581 or click here to email him.
