Despite a short legislative session, interest groups pushing major policy agendas in 2020

Photo | HBJ File The Connecticut State Capitol.

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By Matt Pilon

In Connecticut’s two-year budget cycle, legislative sessions in even-numbered years are only three months long, creating a relatively tight window that typically tempers lawmakers’ and interest groups’ policy aspirations.

“Going into a short session, obviously your expectations of being able to accomplish a lot are a little different than in a long session,” said Joe Brennan, CEO of the Connecticut Business & Industry Association.

However, this year’s short session, which begins Feb. 5, might be different, even though it’s an election year that could make some state lawmakers skittish about voting on controversial issues. With last year’s two-year budget still in relatively good shape — the current fiscal year is trending toward a modest $30-million deficit, while a $184-million surplus is projected for fiscal 2021 — lawmakers may not have to tackle fiscal emergencies like they’ve done for much of the last decade.

That opens up breathing room for more significant policy proposals, and there will be plenty, including highway tolls.

If Gov. Ned Lamont can’t get his 10-year, $19-billion trucks-only tolling and infrastructure plan approved during a special session before Feb. 5, the issue could suck up a lot of oxygen in the coming months.

Tolls aside, businesses are still digesting last year’s new laws, including a minimum-wage hike and creation of a relatively generous paid family and medical leave program, said Andrew Markowski, Connecticut state director for the National Federation of Independent Businesses (NFIB).

“Coming on the heels of … last year, a lot of members are asking me ‘what’s next?’ ” Markowski said. “They’re just hoping for a year of status quo, no uncertainty, and they just want to digest and absorb what’s happened.”

CBIA will keep its legislative agenda relatively modest this session, said Brennan, who is hopeful that tax increases won’t be part of the discussion.

CBIA’s agenda includes some business-friendly tweaks to state tax policy, advocating for expanded workforce-training programs, and continuing to push the state to outsource more of its services to the private sector.

Whether modest or moonshot, here are five policy issues to watch during the upcoming short session:

Wrangling healthcare costs

After insurer opposition forced Lamont to abandon a controversial proposal last year to establish a state-subsidized health plan for business and individuals, some lawmakers are trying to revive the issue. Democratic senators announced Jan. 21 they will pursue a public option-style plan again this session.

There could also be bipartisan support for legislation that would: allow prescription drugs to be imported from outside the U.S., and create a reinsurance program meant to stabilize rising premiums in the individual health insurance market, which could cost at least $20 million.

In addition, a state task force that spent the last year analyzing high-deductible health plans will have a list of policy recommendations, some potentially contentious, ready for the start of the session.

A draft version lists various cost-sharing reforms, increased consumer protections for patients being sued over medical debts, and capping growth rates of statewide healthcare spending.

Lamont recently signed an executive order to establish annual healthcare spending caps, called “benchmarks.” Connecticut is following the lead of Massachusetts, which has been setting those limits for the past six years. The Lamont administration said it expects to file several healthcare cost-containment bills this session.

HBJ Photo | Matt Pilon

CBIA CEO Joe Brennan (left) conducts a recent panel discussion with state legislators previewing the upcoming 2020 legislative session. To his right are Sen. Norm Needleman (D-Essex) and Rep. Laura Devlin (R-Fairfield).

Another bite at the apple

Employers have plenty of concerns about the state’s pending paid family and medical leave program, which will be funded by employee payroll deductions beginning in 2021.

The law will apply to any employer with one or more workers, and Brennan said the CBIA will continue to push for exemptions for smaller companies, but not a full repeal.

“We’re not against it in principle, we’re against it in operation,” he said of the law.

Besides employers concerned about how they will find workers to replace employees on months-long leaves, there are worries that the payroll deductions won’t cover the planned benefits.

If that happens, Lamont has said the state will simply reduce benefit levels to compensate, but Senate Republican Leader Len Fasano (R-North Haven) predicts another potential outcome: That lawmakers may feel pressure to make employers shoulder some of the extra burden.

“We haven’t done the math that says this is going to be enough money,” Fasano said.

Matt Ritter, House Majority Leader (D-Hartford)

House Majority Leader Matt Ritter (D-Hartford) says concerns are overstated.

“I think we’re going to have a very successful program,” he said. “Will there be changes? Sure. Any complex program will have some minor tinkering.”

Another recent policy Brennan hopes to revisit this year is charging sales tax on dry-cleaning services and safety-equipment purchases. He also wants the sales tax on certain worker-training services repealed.

“It’s not huge dollars, but it’s something we’ll look at,” he said.

Transfer Act

Lawmakers last year made several significant changes to a state law that governs the disclosure and cleanup of a contaminated property when it’s sold.

Developers and others have argued that the Transfer Act has been causing unnecessary delays in returning parcels to productive use.

The 2019 changes exempted certain types of hazardous waste from the law and tightened the timeframe for the state to conduct an audit of a contaminated property.

The changes are expected to reduce the number of property redevelopments that get delayed, but further tweaks could be coming.

A working group formed under the 2019 law will make recommendations to lawmakers early next month.

“[The Transfer Act] is a business killer in the state of Connecticut,” said Sen. Christine Cohen (D-Guilford), co-chair of the Environment Committee, during a recent panel discussion in Hartford, adding that the act’s aim to protect the environment is also important.

She said the working group hopes to strike that balance with its coming policy recommendations.

“That’s one of the things I’m most excited about for next session,” she said.

Sin bills

Count on a strong push to legalize sports betting this session, said Ritter, who has been frustrated to see neighboring states reap tax revenue from their brick-and-mortar and online sportsbooks.

“I think there’s more momentum this year to really consider it long and hard, and I hope we can get to a deal with the tribes,” Ritter said.

He is encouraged by Lamont’s recent rekindling of talks with the state’s two casino-operating tribes. An agreement will be crucial, as the tribes claim their long-standing revenue-sharing compact with the state gives them rights to sports betting.

The matter could end up in a lengthy court battle if the state tries to cut them out.

Lamont sought a grand bargain last year that would have included a third casino, sports betting and online wagering, but the talks ultimately fell apart. Lamont has indicated he may be willing to decouple sports betting from the contentious casino issue in order to get a deal done.

Lamont may also push recreational marijuana legalization.

CT News Junkie recently reported that Lamont’s team is preparing a bill that includes regulation, taxation, expungement of criminal records and an equity commission.

New rules for quasi-public agencies

Last summer, after reporters revealed questionable expenditures and hiring at the fledgling Connecticut Port Authority, Lamont ordered a review of the operations and governance of all state quasi-public agencies.

Fasano said he will pursue stricter rules on quasi-publics this session that could get bipartisan support. He wants to require increased reporting, legislative review of salaries above $100,000 and raises of more than 10 percent, and Attorney General review of larger contracts.

“I think there are still arguments for quasis [to exist] but that doesn’t mean they can run amok,” Fasano said.

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