Finance, Revenue and Bonding Committee
JOINT FAVORABLE REPORT
Bill No.: HB-6443
AN ACT CONCERNING REVENUE ITEMS TO IMPLEMENT THE BIENNIAL
Title: BUDGET.
Vote Date: 4/22/2021
Vote Action: Joint Favorable Substitute
PH Date: 3/24/2021
File No.: 638
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Introduced by:
The Finance, Revenue and Bonding Committee
Co-sponsors:
Rep. Jane M. Garibay, 60th Dist.
Rep. Susan Johnson, 49th Dist.
REASONS FOR BILL:
The bill implements the major revenue elements of the Governor's plan to balance the FY 22
FY 23 biennial budget
RESPONSE FROM ADMINISTRATION/AGENCY:
Melissa McCaw, Secretary Office of Policy and Management supports this bill state that this
proposed budget takes a conservative approach to achieving balancing over the FY 2022-
2023 biennial budget. McCaw states that the Governor understands the impact that the
pandemic has taken on the economy in our state and does not believe we should be
increasing taxes as it would be a step in the opposite direction to recovery. McCaw states
that this budget proposal does not increase the financial burden on the state's residents and
businesses while creating new opportunities in the state to remain competitive among our
neighboring states.
Marie Allen, Executive Director Southwestern CT Agency on Aging - supports this bill
stating that they support the legislation to leave the legislated phase out of taxes on pensions
and annuities. Ms. Allen states that this legislation was passed three years ago and it
provides much-needed relief to seniors when they are contemplating leaving Connecticut as
part of their long term financial plan.
Deidre S. Gifford, Acting Commissioner Department of Public Health supports section 23
no f this bill which will allow for the continuation of the safe drinking water assessment. The
section in this bill authorizes DPH to continue to collect the safe drinking water assessment.
Gifford states that this safe drinking water assessment supports the critical work that the
Departments Water Section does. The DWS is responsible for ensuring the adequacy and
purity of CT's public drinking water on a statewide basis. DPH relies on the full-time
equivalent staff that are funded by this assessment to ensure that residents of CT continue to
receive safe and adequate public drinking water.
Colleen Murphy, Executive Director - The Freedom of Information ("FOI") Commission
offered the following comments regarding this proposal. FOI states that in section 7 of this bill
the CT Lottery Corporation is required to establish a program to sell lottery tickets for lottery
draw games through the corporations website. This section also requires that the program
must establish a voluntary self-exclusion process to allow a person to exclude himself or
herself from establishing an online lottery account or purchasing a lottery ticket through the
program. In addition, section 10 of this proposal exempts from disclosure [t]he name and any
personally identifying information of a person who is participating or has participated in the
corporation's voluntary self-exclusion process" but also allows the corporation to disclose this
information. FOI states that the language as written is narrow in its application and would not
complete remove such information from the realm of public records subject to the FOI Act.
NATURE AND SOURCES OF SUPPORT:
Don Shubert, President Connecticut Construction Industries Association, Inc supports
section 24 of this proposal that creates a Heavy Truck Tax and allocates the revenue
collected to the Special Transportation Fund. Shubert states that this measure is important to
address the forecasted annual deficits. Shubert states that CT's infrastructure is falling into
despair. One of the main reasons for this is the lack of revenue that is flowing into the Special
Transportation Fund. Currently, it is estimated by the Department of Transportation that there
is a $400 million deficit annual to maintain our states highway and transit systems in good
repair. Shubert states that a recent report published by TRIP stated that nearly two-thirds of
CT's roads and highways in CT are in poor or mediocre condition. Shubert states that
Connecticut's future is riding on its transportation systems and that transportation
investments drive economic activity and jobs across every sector of the state economy.
Shubert ends stating that investments in our transportation provide one of the highest-rate-of-
return on investments for government spending and its very important to invest in CT's future.
Greg Smith, President & CEO Connecticut Lottery Corporation supports sections 7
through 13 of this proposal which authorizes iLottery in the state of Connecticut. Smith states
that this proposal authorizes a program which allows the sale of lottery tickets for lottery draw
games through online sales on the corporations website. Smith states that selling online and
through a mobile app it will enable the corporation to appeal to new players and will attract
new players. Smith states that they are projecting over $45 million in new revenue from
iLottery to the state over the next 5 years when it is authorized. Smith also states that the
corporation understands that every product that they offer they must also offer appropriate
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controls for responsible gambling. They state that they will incorporate responsible gaming
practice and will continue their partnership with the Department of Mental Health and
Addiction Services and the Connecticut Council on Problem Gambling.
NATURE AND SOURCES OF OPPOSITION:
Frank Antonacci, Owner of Murphy Road Recycling, LLC opposes section 24 of the
Governors bill that establishes a "highway use tax". This tax would apply to heavy weight
vehicles in the vehicle classes of 8 through 13 affecting vehicles weighing between 26,000 to
80,000. Mr. Antonacci states that Governor Lamont and other advocates want passage of
this section suggesting that users such as his company are the ones responsible for the wear
and tear of the State's infrastructure. Mr. Antonacci states that his company is located in the
state and purchases fuel in the state and pays a multitude of fees and taxes that are intended
to compensate for the states use of the roads. He states that imposing this tax will cause an
unfair economic burden on the company that could total to be in the hundreds and thousands
of dollars. He states that companies like his cannot absorb these additional costs and as a
result the costs will just be passed down to the consumers of their services including
municipalities.
The following residents and organizations testified in opposition to section 23 of this proposal
stating this fee originally was intended to be a temporary measure to ensure DPH maintained
their primacy role for drinking water programs under the EPA Safe Drinking Water Act as
federal funding was curtailed. While they recognize the need to provide residents and
businesses with safe, reliable public water supplies at a reasonable cost, in the original
legislation that was passed, they agreed to support the fee with the understanding that it
would sunset initially at the end of the 2019 fiscal year and then again at the end of fiscal
year 2021. Under this section, if passed, this fee would become a permanent tax on water
customers. In addition to it becoming permanent, the bill calls for an increase in the fee of
44% and will increase every year to reflect increases in wage and benefits paid to the DPH
staff. The bill also eliminates the requirement that DPH prepare an annual report detailing
how the funds were used and the department's efforts to improve efficiencies. The below
testifiers urge the committee to eliminate the safe drinking water primacy fee which
represents a $2.2 million tax on water customers.
Connecticut Water Company (CWC)
Jonathan Avery Hazardville and Jewett City Water Company
Dominick Di Gangi, General Manager City of Norwalk Water Department
Elizabeth Gara Connecticut Water Works Association
Alan Huth, CEO & General Manager Norwalk Electric and Water
Patrick Kearney, Administrator Town of Manchester Water and Sewer Department
Norwich Public Utilities (NPU)
Lori Vitagliano, Government and Public Relations Specialist South Central Connecticut
Regional Water Authority
John Walsh, V.P. of Operations & Utility Innovation Aquarion Water Company
Susan M. Suhanovsky The Torrington Water Company
Michael Turgeon Windham Water Works
The Metropolitan District
Robert Sherwood, Executive Vice President Jewett City Water Company
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The below residents and organizations testified in opposition to section 24 of HB 6443 which
eliminates the Ambulatory Surgical Center's $1 million exemption currently in statute. If
implemented, this will result in a tax increase of $60,000 to every surgery center in CT. They
also state that ASCs are taxed as small businesses and as a health-care provider. They state
that unlike hospital-owned outpatient facilities, ASCs are not afforded tax exemptions and are
still obligate to pay a wide range of taxes which include: income tax, sales tax, property tax
and more. They state that ASCs provide high quality, lower cost care to patients throughout
the state.
Michael Aronow, President Connecticut Orthopaedic Society
Carissa Beaulieu, Chief Executive Officer Bloomfield Ambulatory Surgery Center
Lisa Bogel, Center Administrator Eastern Connecticut Endoscopy Center
Danilo D'Aprile, Administrator Orthopaedic & Specialty Surgery Center
Dwayne Kertanis Constitution Surgery Center East LLC
Kyle Friedman, CEO Surgical Center of Connecticut, LLC
Jennifer Gale, CEO/Administrator River Valley Ambulatory Surgery Center
Amanda Gunthel, President Connecticut Association of Ambulatory Surgery Centers
Lynn Halkowicz, Nurse Manager Endoscopy Center
Sarah Harris, Business Manager Wallingford Endoscopy Center opposes
Diane Heelan, Chief Executive Officer Western Connecticut Orthopedic Surgical Center
Cathy Kean, RN Diagnostic Endoscopy Center
Karen Vulcano, CEO/DON Specialty Surgery Center of Connecticut
Bill Wollman Evergreen Endoscopy Center, LLC
Steven P. Oster, Administrator Connecticut Eye Surgery Center
David Shipley, Administrator Norwalk Surgery Center
David M. Sones, V.P. of Operations and Administrator Constitution Surgery Alliance
Edward Staunton, Executive Director Stamford Ambulatory Surgical Center
Diane Youd, DON/Administrator Waterbury Surgery Center
Maurizio Nichele, MD Shoreline Colonoscopy Suites
Catherine D'Agostino and Sandra Bove, Legislative Co-Chairs Association of Retired
Teachers of Connecticut testified opposing the postponement of the 50% Connecticut tax
exclusion for retired teachers. They state that PA 14-47 exempts 50% of the retirement
income for retired teachers starting January 1, 2017 and each taxable year thereafter. The
Governor's proposal once again postpones this promise 50% tax exclusion to 2023. They
believe that this 50% exclusion would make teaching professions more equitable and
attractive in CT. They also state that while postponing the exclusion will save the state $8M,
this results in higher taxes for retired teachers, many teachers whom are considering whether
to move to lower tax states.
The following residents testified asking the Governor to alleviate the disparity teachers were
promised which is a 50% Connecticut income tax exclusion on teachers retirement income.
They state that the Governor's proposal this year postpones the promised 50% tax exclusion
to 2023 which keeps the state income tax exclusion at 25%.
Bonnie Barnes, Retired Teacher East Haddam, CT
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Harriet Baskette, Retired Teacher Manchester, CT
Pamela Benson, Retired CT Teacher
David Berrill, Retired Teacher Glastonbury, CT
Patricia Berrill, Retired Teacher Glastonbury, CT
John S. Boccuzzi, Retired Teacher Newtown, CT
Patricia Charles, Retired Superintendent
Kathleen Colburn, Retired Teacher
Diane Wilder Cornwell Norwalk, CT
Daniel and Paula Coughlin Woodstock, CT
Kenneth B. Daniels
Cindy Davis
Jerry Davis Canterbury, CT
Alan DeBisschop, Retired Teacher Plantsville, CT
Lillian H. Diachenko Retired Teacher
Gail and Tony Diminico, Retired CT Teachers Newtown, CT
Mia DiStasi Retired CT Teacher
Karen Drake Retired CT Teacher
Walter and Beatrice Drozeck
Sherry Flaherty - Retired Teacher
Vito Giannini, Retired CT Teacher Plainville, CT
Barbara Giardini, Retired Teacher Brookfield, CT
Tammy Gowash, Retired Teacher Somers, CT
Patrick Hickey, Retired CT Teacher Bristol, CT
Keith Higgins Bloomfield, CT
Robert Horn Durham, CT
Ruth-Ellen Hunt Bethel, CT
Elaine R. Klein, Retired Teacher Orange, CT
Theodora L. Kopcha, Retired Educator
Christine Kopyt, Retired Teacher from Avon Public Schools
Mary Jane Kubeck, Retired Teacher
William Lenahan Fairfield, CT
M. Terry Lieberman Retired Teacher
Robert Liepolt, Retired Teacher Westport, CT
Werner Liepolt, Retired Teacher Westport, CT
Therese McDonald, Retired Bridgeport Teacher Monroe, CT
Jean Merz, Retired CT Teacher Vernon, CT
Marilyn Mitchell - Trumbull, CT
Sheila Murphy, Retired Glastonbury High School Teacher Portland, CT
Jane C. Newpeck, Retired CT Teacher Canton, CT
Kerry O'Keefe, Retired Teacher Ledyard, CT
Mark and Barbara Popeleski Retired CT Teachers
Agnes Rath CT Teacher
Kenneth N. Reed, Jr. Retired Norwalk and New Fairfield Teacher
Eileen Richmond Retired CT Teacher
Margaret Rick, Retired Educator West Hartford, CT
Lynn Rosenblatt Retired CT Teacher
Joyce E. Rousseau, Retired CT Teacher Southbury, CT
Margaret and Lorraine Samela, Retired Teachers Old Saybrook, CT
Frances Schilling, Retired Teacher New Milford, CT
Page 5 of 12 HB-6443
Karen Schmidt, Retired Teacher Guilford, CT
Paula Schwartz, Retired South Windsor Teacher Avon, CT
Michele Sinkez, Retired Windsor High School Teacher
Karen Spotts, Retired CT Teacher Cromwell, CT
Eileen Szalkiewicz Retired CT Teacher
Gordon Turnbull, Retired CT Teacher Wallingford, CT
Matthew P. Valenti, Retired CT Teacher New Hartford, CT
Axel Carrion, Vice President of State Public Affairs United Postal Service (UPS)- opposes
the proposal to implement a Highway Use Tax (HUT). Carrion states that UPS is eager to
work with State and Federal government to address the continuous cycle of underinvestment
in our nations infrastructure and finding a long term sustainable funding for our roads. Carrion
states that they would like to work together to find a funding mechanism that provides a level
playing field across the trucking industry without placing an unfair burden on carriers. Carrion
also states that this tax is utilized in four other states around the country and due its policy,
CT HUT proposal differs greatly from the state of New York's. Carrion states that although
UPS travels significantly less miles in CT compared to the larger New York territory, the CT
HUT tax would cost UPS nearly three times the expense incurred. Carrion states that while
they oppose the Highway Use Tax, they do however favor an increase in the federal fuel tax
indexing it to inflation and dedicating that revenue to the Highway Trust Fund.
Carl Chisem, President Connecticut Employees Union Independent, SEIU Local 511 and
the Municipal Employees Union Independent, SEIU Local 506 opposes this proposal stating
that it does not go far enough and only perpetuates our regressive system which is where the
wealthy are indulged and those in need are forgotten. Mr. Chisem represents over 3,600 blue
collar maintenance and service workers. Mr. Chisem states that in order for everyone in our
state to thrive, we must implement fair updates to our tax code that will help to undo the many
inequalities and disparities in our state budget to build a stronger economy.
Sandra Clark Small Choice Trucking LLC Opposes the section that implements a
"Highway Use Tax". Clark states that trucks already pay a Highway Use Tax through IFTA.
Clark also states that small businesses do not have the same leverage as larger companies
and their rates have not changed in 5 years. She also states that small business trucking
companies are approximately 90% of all trucking companies. Clark also states that there is
no guarantee that money goes to the roads and asks that the committee do not pass this bill.
She states that it does not reflect a logical and fair evaluation of the tur needs and seems to
be a quick fix and quick way out.
CT Chapter of the National Waste and Recycling Association oppose section 24 of this bill
stating that this section purposes a new tax that would be levied on trucks in the weight class
vehicle range between 26,000 to 80,000 pounds. If this passes, the vehicles that are in this
weight class are the same vehicles that NWRA use. NWRA states that they already pay
significant taxes to support and improve CTs transportation infrastructure. NWRA also states
that if this additional tax is imposed, it would result in having the fee passed down to CT
residents, municipalities, and business that use their trash and recycling services.
Linda DeGray - opposes this bill stating that the small businesses and residents have
undergone enough financial hardship this past year. DeGray states that to impose an
additional mileage tax on large trucks adds additional costs on all businesses and residents.
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DeGray also states that the trucking industry is already paying the most in fuel tax along with
a mileage tax. DeGray states that there is no reason to impose this tax.
John Erlingheuser, Associate State Director AARP oppose section 26 of this proposal
which postpones the promised retirement income ta