PA 09-8, September 2009 Special Session—SB 2052

Emergency Certification

AN ACT IMPLEMENTING THE PROVISIONS OF THE BUDGET CONCERNING REVENUE

SUMMARY: This act makes various statutory changes to implement the revenue provisions of the state budget and tax package for FY 10 and FY 11 (PA 09-3, June Special Session (JSS)). Among other things, it:

1. establishes an optional corporation tax credit, beginning in income years starting on or after January 1, 2012, for constructing buildings that meet specified energy and environmental standards (“green buildings”);

2. temporarily exempts Bridgeport from certain pension funding requirements for FY 09 through FY 11, if the state treasurer and the Office of Policy and Management (OPM) secretary approve the city's alternative pension funding plans for those years;

3. requires taxpayers when making their estimated payments, and employers when calculating withholding taxes, for the remainder of the 2009 income year, to include catch-up payments to cover increases in personal income and the corporation taxes effective January 1, 2009 and adopted in PA 09-3, JSS; and

4. approves up to $40 million in economic development assistance from existing programs over the next two years for the Steel Point project in Bridgeport.

The act increases various Department of Public Health (DPH) fees. It reverses some fee increases made in PA 09-3, JSS including those for licensed practical nurses and resident marine waters fishing licenses. It eliminates a $1-per-bushel shellfish harvesting fee that act imposed and restores certain nonlapsing accounts, including the boating and air emissions permit operating fee accounts, that the budget act eliminated.

The act changes amounts PA 09-3, JSS transferred from the Budget Reserve Fund to the General Fund and from the General Fund to the Special Transportation Fund for FY 10 and FY 11. Finally, it alters the revenue estimates for the General and Special Transportation funds for FY 10 and FY 11 adopted in PA 09-3, JSS.

EFFECTIVE DATE: Various, see below.

1-5 — FILM PRODUCTION AND DIGITAL ANIMATION TAX CREDITS

Production Company Credit Eligibility Requirements

Starting January 1, 2010, PA 09-3, JSS makes a film production company eligible for a film production tax credit only if it conducts at least 50% of its principal photography days in the state. This act provides an alternative standard by also making a company eligible if it spends at least 50% of a film's post-production costs in Connecticut.

Minor and Technical Changes

Starting January 1, 2010, PA 09-3, JSS replaces the state's flat 30% tax credit for qualifying film production and digital animation expenditures over $50,000 with tiered credits of 10% for expenditures between $100,000 and $500,000; 15% for expenditures over $500,000 and up to $1 million; and 30% for expenditures over $1 million. Credits can be claimed in the year the eligible expenditures are made, or carried forward for up to the three following income years.

This act (1) makes a technical change in the expenditure range for the 15% credits and (2) specifies that a statutory provision allowing taxpayers to carry forward their available credits for the three years following the year in which the eligible expenditures are made applies to all or part of the credits.

EFFECTIVE DATE: Upon passage

6 — ESTIMATED CORPORATION TAX PAYMENTS FOR 2009

PA 09-3, JSS imposes a 10% corporation tax surcharge for the 2009, 2010, and 2011 income years on companies that have (1) $100 million or more in annual gross income in those years and (2) tax liability that exceeds the $250 minimum tax.

This act requires affected corporation taxpayers making estimated tax payments to adjust their payments for the 2009 income year to reflect any additional tax liability from the surcharge. It overrides a safe-harbor law excusing corporation taxpayers from interest and penalties on estimated taxes if they pay in four quarterly installments totaling at least (1) 90% of their liability for the current income year without credits or (2) 100% of their liability for the previous year without credits, whichever is less.

EFFECTIVE DATE: Upon passage

7 — GREEN BUILDINGS TAX CREDIT

Credits

Starting with income years beginning on or after January 1, 2012, this act allows the state to give corporation taxpayers a credit if they build buildings that meet certain energy and environmental standards (“green buildings”). It gives the OPM secretary discretion on whether to issue vouchers allowing taxpayers to claim the credits. It limits the credits for all building projects to $25 million.

Under the act, eligible projects would receive a base credit that increases with the project's green rating. It allows additional credits for mixed-use projects and those located in certain areas. Taxpayers could claim only 25% of the credit in any tax year, but could carry forward the remainder for up to five years. The credits are transferrable and assignable.

Eligible Projects and Allowable Costs

Projects eligible for credits are real estate developments in the state designed to meet or exceed the applicable Leadership in Energy and Environmental Design (LEED) Green Building Rating System gold certification or an equivalent standard as determined by the environmental protection (DEP) commissioner. Eligible projects must use no more than (1) 70% of the energy use permitted by the State Building Code for new construction or (2) 80% of the energy use permitted by the state energy code for a building renovation or rehabilitation. In addition, the project must use equipment and appliances that meet Energy Star standards, if applicable. If a development has more than one building, only the buildings that meet these standards would be eligible for the credit. For newly constructed buildings, the credits apply only to those that receive a certificate of occupancy on or after January 1, 2010.

To count towards the credit, a development cost must be chargeable to the project's capital account. These allowable costs include:

1. construction or rehabilitation costs;

2. commissioning costs;

3. architectural and engineering fees that can be allocated to construction or rehabilitation, including energy modeling;

4. such site costs as temporary electric wiring, scaffolding, demolition, and fencing and security facilities; and

5. costs of carpeting, partitions, walls and wall coverings, ceilings, lighting, plumbing, electrical wiring, mechanical, heating, cooling, and ventilation.

The purchase of land, remediation costs, and the cost of telephone systems or computers are not allowable. The act limits allowable costs to $250 per square foot for new construction and $150 per square foot for building renovations or rehabilitation.

Base and Supplemental Credits

The LEED rating system has four levels: certified, silver, gold, and platinum, with a building's rating depending on its number of green features (see BACKGROUND).

Under the act, the base credit for new construction or major renovation of a building (but not other site improvements) is 8% of allowable costs for a gold rating and 10. 5% for a platinum rating. For core and shell or commercial interior projects, the credit is 5% of allowable costs for a gold rating and 7% for a platinum rating. In all cases, the credit is the same for the equivalent rating under an alternative rating system, as determined by the DEP commissioner.

A project would receive an additional credit of 0. 5% of allowable costs if it:

1. is a “mixed use” development consisting of one or more buildings that include residential use and in which no more than 75% of the interior square footage has at least one of the following uses: (a) commercial; (b) office; (c) retail; or (d) any other nonresidential use that the OPM secretary determines poses no public health threat or nuisance to nearby residential areas;

2. is located in an enterprise zone or brownfield;

3. does not require a sewer line extension of more than one-eighth of a mile; or

4. is within walking distance of a public bus service or one-half mile of adequate rail, light rail, streetcar, or ferry service. (In the case of multi-building projects, at least one of the buildings must meet this criterion. )

Credit Issuance

The OPM secretary may issue an initial credit certificate if he determines that the applicant is likely, within a reasonable time, to place in service property that would be eligible for a credit. The certificate must state (1) the first income year for which the credit may be claimed; (2) the maximum credit allowable; and (3) an expiration date by which the property must be placed in service, which the secretary may extend at his discretion. The certificate must reserve the credit allowable for the applicant named in the application until the expiration date. The secretary may extend the reservation at his discretion, if he extends the expiration date. The secretary may not issue initial credit certificates for more than $25 million in the aggregate.

The taxpayer must obtain an eligibility certificate for each taxable year for which he or she claims a credit. The taxpayer must obtain this certificate from an architect or licensed professional engineer accredited through the LEED Accredited Professional Program or a program the DEP commissioner determines to be equivalent. The document must certify, under the architect's or engineer's seal, that the building, base building, or tenant space for which the credit is claimed meets or exceeds the applicable green building rating system gold certification (or other certification the commissioner considers equivalent) in effect when the building was certified. The certification must include the specific findings on which it is based and state that the architect or engineer is accredited through the accredited professional program.

To obtain the credit, the applicant must file with the revenue services (DRS) commissioner (1) the initial credit voucher, (2) the eligibility certificate, and (3) an application to claim the credit. The applicant must send a copy of the documents to the OPM secretary.

Credit Transfers

The act allows credits to be assigned or otherwise transferred. A project owner may transfer a credit to a pass-through partner in return for a lump sum payment. (This approach can be used if the project owner is a nonprofit organization, among other situations. )

Any subsequent successor in interest to the property eligible for a credit may claim it if the deed transferring the property assigns the successor this right, unless the deed specifies that the seller retains the right to claim the credit. Any subsequent tenant of a building for which a credit was granted may claim it. Such a claim applies to any period after the termination of the previous tenancy for which the previous tenant would have been allowed to take the credit.

Regulations and Reporting

The act (1) requires the OPM secretary, in consultation with the DRS commissioner, to adopt implementing regulations by January 1, 2011; (2) requires the secretary to establish a uniform application fee of up to $10,000 to cover all direct costs of administering the tax credit program; and (3) allows the secretary to hire a private consultant or outside firm to administer and review program applications.

The secretary, in consultation with the commissioner, must report to the governor and Planning and Development and Finance, Revenue and Bonding committees by July 1, 2013 on (1) the number of taxpayers applying for the credits, (2) the amount and geographical distribution of the credits granted, and (3) any other information the secretary considers appropriate. The secretary must submit a preliminary draft report to the governor and the committees by July 1, 2012.

EFFECTIVE DATE: Upon passage

8-12 — ESTATE AND GIFT TAX

Starting with deaths occurring, and gifts made, on or after January 1, 2010, PA 09-3, JSS (1) increased, from $2 million to $3. 5 million, the threshold value of an estate or gift subject to the estate and gift tax; (2) reduced marginal tax rates on taxable estates and gifts by 25%; and (3) eliminated the tax “cliff. ” (Under the pre-January 1, 2010 tax, an estate or gift valued at $2 million or less was fully exempt, while the full value of an estate or gift of more than $2 million was taxed. Thus, a $1 increase in the value from $2,000,000 to $2,000,001 increased the tax liability for a gift or estate over $2 million by $101,700 (the “cliff')).

8 — Connecticut Taxable Estate and Gift Taxes Paid Between January 1, 2005 and December 31, 2009

For those who die on or after January 1, 2010, this act includes in the Connecticut taxable estate the aggregate value of all Connecticut taxable gifts the decedent made on or after January 1, 2005.

Under the act, for a person who dies on or after January 1, 2010, gifts subject to the higher tax rates in effect between January 1, 2005 and December 31, 2009 count towards the combined lifetime total exclusion for estate tax purposes, but the estate is not entitled to any refund for gift taxes paid under those higher rates. Instead, the act gives such estates a credit for any gift taxes paid on gifts made on or after January 1, 2005, as long as the credit does not exceed the estate tax due.

EFFECTIVE DATE: Upon passage and applicable to estates of those dying on or after January 1, 2010.

9 — Estate Tax Filing Deadline

PA 09-3, JSS reduced the time an executor has to file an estate tax return from nine to six months after the date of death. This act specifies that the new filing deadline applies to estates of those who die on or after July 1, 2009 rather than to taxes due on or after that date.

EFFECTIVE DATE: Upon passage and applicable to estates of those dying on or after July 1, 2009.

10 — Tax Returns Filed with Probate Court

By law, all estates, regardless of their gross value, must file an estate tax return. If the estate's value is more than the taxable threshold, the executor must file the return with DRS, with a copy to the probate court for the district where the decedent lived or, if the decedent was not a Connecticut resident, where his or her Connecticut property is located. If the estate's value is below the tax threshold, the return must be filed only with the appropriate probate court. The probate judge must review the return and issue a written opinion to the estate's representative if the judge determines it is not subject to the estate tax.

For deaths on or after January 1, 2010, this act increases the threshold for filing an estate tax return only with the probate court from $2 million to $3. 5 million. This change conforms to the increase in the taxable estate threshold under PA 09-3, JSS.

EFFECTIVE DATE: Upon passage and applicable to estates of those dying on or after January 1, 2010.

11 — Release of Estate Tax Liens

By law, a person who does not owe, or who has paid, the estate tax receives a certificate releasing the lien on his or her interest in real property in the estate. The probate court is required to issue all lien release certificates for estates below the estate tax threshold. For deaths on or after January 1, 2010, the act requires probate courts to issue all lien release certificates for estates of $3. 5 million or less. This change conforms to the increase in the taxable estate threshold under PA 09-3, JSS.

EFFECTIVE DATE: Upon passage and applicable to estates of those dying on or after January 1, 2010.

12 — Gift Tax Credits

PA 09-3, JSS gives a taxpayer a credit against taxes owed for gifts made on or after January 1, 2010, but only for gift taxes previously paid on post-January 1, 2010 gifts. This act also gives the credit for taxes previously paid on gifts made between January 1, 2005 and December 31, 2009. But it limits the total credits to no more than the gift tax imposed. This means taxpayers are not entitled to any refunds of gift taxes paid at the higher rates in effect between January 1, 2005 and December 31, 2009.

EFFECTIVE DATE: Upon passage and applicable to gifts made on or after January 1, 2010.

13 — BRIDGEPORT PENSION PLAN FUNDING

For FY 09, the act exempts a municipality (1) with a population greater than 130,000 and (2) that has issued pension deficit funding bonds, from a statutory requirement to appropriate money for, or contribute more than $6 million to, a pension plan funded with the bond proceeds. Only Bridgeport qualifies.

The act also exempts the city from the statutory funding requirements for FY 10 and FY 11, if it submits plans for funding the pension plan in those years to the OPM secretary and the state treasurer and obtains their approval. The plans for FY 10 and FY 11 are due by April 1, 2010 and April 1, 2011, respectively.

The secretary and the treasurer may accept, reject, or modify the city's funding plans. In any year they fail to approve the plans, the city must contribute at least $4 million to the pension plan.

State law allows municipalities to issue pension deficit funding bonds to fund unfunded past pension obligations. If a municipality issues such bonds, it must ordinarily contribute at least the actuarially required amount to its pension plan in each fiscal year that it has outstanding pension deficit funding bonds for the plan (CGS 7-364c (c) (3)).

EFFECTIVE DATE: Upon passage

14 & 15 — CATCH-UP INCOME TAX PAYMENTS FOR 2009

PA 09-3, JSS increased income taxes for those with taxable incomes over $1 million for joint filers, $800,000 for heads of households, and $500,000 for single filers and married people filing separately. The increase is effective for the tax year beginning January 1, 2009.

This act requires taxpayers who must make quarterly estimated tax payments for 2009 to adjust their January 15, 2010 payment to reflect the income tax rate changes applicable to the 2009 tax year. It also requires the DRS commissioner to issue new withholding tax rules for the 2009 tax year by October 1, 2009 and publish them on DRS' web site.

By law, taxpayers who expect to have $1,000 or more in income tax liability and who do not have sufficient Connecticut income tax withheld by payers or employers must make quarterly estimated tax payments, generally by April 15, June 15, October 15, and January 15. The act's requirement to adjust the January 15, 2010 payment to include applicable 2009 tax increases overrides the statutory “safe harbor” provision that taxpayers are not liable for interest or penalties for underpaying estimated taxes if their quarterly payments total (1) 90% of their estimated tax liability for the current year or (2) 100% of their liability for the preceding tax year, whichever is less.

EFFECTIVE DATE: Upon passage

16 — FINANCIAL ASSISTANCE TO THE STEEL POINT PROJECT IN BRIDGEPORT

The act allows the Department of Economic and Community Development, the Connecticut Development Authority (CDA), and Connecticut Innovations, Inc. (CII) to provide up to $40 million in financial assistance from existing programs to the Steel Point project in Bridgeport between January 1, 2010 and June 30, 2012. The assistance must be used for developing and improving property in Bridgeport.

The assistance may be in the form of grants, loans, loan guarantees, insurance contracts, investments, or a combination of these and may be provided from proceeds from sales of bonds, notes, or other debt issued by the state, CDA, or CII. By law, any such financial assistance exceeding $10 million over a two-year period for any applicant or business project must be expressly authorized by the General Assembly.

EFFECTIVE DATE: Upon passage

17-35, 37-38 & 43 — FEE PROVISIONS

PA 09-3, JSS increased various state fees effective October 1, 2009. This act makes additional changes in fees, establishes new fees, increases additional fees, and reduces and repeals certain of the prior act's fee increases.

17 — Nonresidential Underground Storage Tank Notification Fee

Under PA 09-3, JSS, starting October 1, 2009, the fee to inspect certain nonresidential underground storage facilities is $100 per tank for each facility that submits notification to the DEP commissioner. This act (1) requires the fee to be for the notification instead of the inspection and (2) delays the start of the change to October 10, 2009. By law, the notification must be submitted annually along with the fee.

EFFECTIVE DATE: Upon passage

18 — License Fee Increase for Certain Cigarette Distributors

The act increases the annual fee for a DRS license as a “non-exclusive” cigarette distributor (a distributor who does not sell cigarettes exclusively to retail stores that the distributor operates) from $1,000 to $1,250. This matches the license fee increase in PA 09-3, JSS for a cigarette distributor who sells to more than 25 retail stores that the distributor operates.

EFFECTIVE DATE: Upon passage and applicable to renewal of licenses expiring on or after September 30, 2009.

19 — Applicability of Increased License Renewal Fees

With the exception of several cigarette licenses issued by DRS, the act makes the increases in license renewal fees enacted in PA 09-3, JSS apply only to the renewal of licenses that expire on or after October 1, 2009.

The act does not apply to increased fees for (1) cigarette manufacturers' licenses and duplicate copies, (2) cigarette dealers' licenses and duplicate copies, and (3) cigarette distributors' licenses.

EFFECTIVE DATE: Upon passage

20 — Licensed Practical Nurse License Fee

The act reverses an increase in the annual license fee for licensed practical nurses. PA 09-3, JSS doubled the fee from $60 to $120, effective October 1, 2009. This act restores the $60 fee.

EFFECTIVE DATE: Upon passage

21 & 37-38 — Boating Account and Boating Fee Revenue

PA 09-3, JSS eliminated the Conservation Fund and the separate boating account within that fund and transferred all revenue from boat and watercraft numbering and registration fees to the General Fund. This act reestablishes (1) the boating account as a separate, nonlapsing General Fund account and (2) the account's purposes under the law prior to PA 09-3, JSS. But the act also modifies the distribution of boating fee revenue from the way it existed before PA 09-3, JSS.

Under the law prior to PA 09-3, JSS, the first $1 million of the revenue received from the boating fees each year went into the boating account, along with any excess after towns received their share. This act eliminates the requirement to save the first $1 million in the account. It instead allocates annual boating fee revenue received in the 12 months between November 1 and the following October 31 to the towns first. As under the law prior to PA 09-3, JSS, the act requires that (1) if annual fee revenue is not enough to pay all the towns their full allotment, any additional amount necessary be taken from unallocated funds in the account and (2) the towns receive amounts according to their proportionate share of the total property taxes paid on vessels in these towns based on October 1, 1978 assessment.

Under the act, as under the law prior to PA 09-3, JSS the boating account must be used for the various purposes, including to cover all expenses the DMV and DEP commissioners incur in administering and enforcing state laws and regulations on boating safety and water pollution from vessels and any payments the law requires (e. g. , payments to towns that apply to DEP for reimbursement for enforcing boating laws).

The act modifies the annual reporting requirement for the account from that required prior to PA 09-3, JSS. It requires the report to:

1. be from the DEP commissioner alone, rather than both the DEP and DMV commissioners each separately;

2. be made to the comptroller, rather than the Finance, Revenue and Bonding Committee;

3. be submitted by December 1 instead of December 31 each year;

4. cover the preceding fiscal year instead of the 12 months ending the preceding October 31; and

5. include all revenue deposited in and expenditures from the account rather than reporting on the account's operation, giving a detailed statement of expenditures for each of its required purposes, and making any recommendations for operating the account and for boating safety and enforcement programs.

EFFECTIVE DATE: Upon passage

22 & 28 — Resident Marine Waters Fishing License Fee

PA 09-3, JSS imposed a $30 fee for a resident marine waters fishing license, effective October 1, 2009. This act reduces the fee to $10. It also makes a conforming change.

EFFECTIVE DATE: Upon passage and applicable to renewal of licenses expiring on or after October 1, 2009.

23-27 — Department of Public Health Fees

The act increases the DPH fees shown in Table 1.

Table 1: DPH Fee Increases

Act

CGS

Fee Description

Prior Law

The Act

23

20-341g

Subsurface sewage disposal system installer license – annual renewal

$25

$50

23

20-341g

Subsurface sewage disposal system cleaner license – annual renewal

10

20

24

20-438

Asbestos abatement site supervisor's certificate -application

50

100

24

20-438

Asbestos abatement site supervisor's certificate – annual renewal

50

100

25

20-162bb (b)

Perfusionist license – application fee

250

315

26

20-162bb (g)

Perfusionist license – annual renewal

250

315

27

PA 09-232,

56 (a)

Audiologist – initial license fee and annual renewal

100

200

EFFECTIVE DATE: Upon passage and applicable to renewal of licenses expiring on or after October 1, 2009.

29 — Liquor Permit Administrative Fee

By law, retailers holding permits to sell liquor for off-premises consumption must pay the Department of Consumer Protection (DCP) an additional fee equal to 6. 25% of their permit fee to cover DCP's costs for administering the liquor control laws. This act requires DCP to round the administrative fee up to the nearest $5. Revenue from the administrative fee goes to the General Fund.

EFFECTIVE DATE: Upon passage

30 — Insurance Agent Fees

The act increases, from $80 to $100, the fee for each appointment issued to or continued for an agent of a domestic insurance company. It exempts from the fee an appointment issued to or continued for an agent of a nondomestic insurance company. Under prior law and this act, there is no fee for a nondomestic insurer to appoint an agent in Connecticut if the insurer's domiciliary (home) jurisdiction does not charge a fee for appointments. The act also sets a lower $20 fee for an appointment issued by a nondomestic insurer whose domiciliary jurisdiction has a premium tax rate lower than Connecticut's.

EFFECTIVE DATE: Upon passage and applicable to appointments issued or continued on or after October 1, 2009.

31 & 32 — Solar Thermal Work Certificate

This act requires the DCP commissioner, after consulting with the Plumbing and Piping Work Board or the Heating, Piping, Cooling, and Sheet Metal Work Board as appropriate, to issue a solar thermal work certificate authorizing its holder to perform solar thermal work. To qualify for the certificate, a person must (1) hold a P-1, P-2, P-3, P-4, S-1, S-2, S-3 or S-4 license issued by DCP; (2) complete a commissioner-approved solar thermal installation training course; and (3) pass a commissioner-approved solar thermal work examination. The certificate must be renewed in the same way that its holder's trade license is renewed. The certificate fee is $50.

EFFECTIVE DATE: Upon passage

33 & 34 — Air Emissions Permit Operating Fee Account

The act restores the air emissions permit operating fee account and makes it a separate account within the General Fund instead of within the Environmental Quality Fund. PA 09-3, JSS eliminated the latter fund and the account. This act once again requires revenue from fees the DEP commissioner charges owners or operators of air pollution sources to go into the account.

EFFECTIVE DATE: Upon passage

35 — Department of Environmental Protection Fees

The act raises to at least $100 any fee that the DEP commissioner charges by regulation for activities the department regulates, such as those of solid waste facilities. PA 09-3, JSS doubled any of these fees that were less than $150. This act increases any of the fees that were formerly less than $100 to at least $100.

It also increases the fee for a general permit:

1. from $1,000 to $1,250, for people intending to engage in a regulated activity that requires registration with, and approval from, DEP before it can begin and

2. from $500 to $625, for people intending to engage in a regulated activity that only requires them to register with DEP before the activity can begin.

By law, this fee structure applies unless a different fee is specified in the general permit.

Finally, the act increases the maximum general permit fee from $5,000 to $6,250.

EFFECTIVE DATE: Upon passage

36 — REGIONAL GREENHOUSE GAS ACCOUNT

By law, the DEP commissioner, in consultation with the Department of Public Utility Control, must auction emission allowances and invest the proceeds. This act (1) creates a regional greenhouse gas account as a separate, nonlapsing General Fund account and (2) requires the auction emission allowance proceeds to be deposited in the account. By law, the proceeds are invested in energy conservation, load management, and certain renewable energy programs on behalf of electric ratepayers.

EFFECTIVE DATE: Upon passage

39 — PREFERENCE TAX INCREASE

PA 09-3, JSS doubled, from $250,000 to $500,000, the maximum preference tax for groups of companies filing combined corporation tax returns. The increase was effective on passage. This act applies the increase to income years starting on or after January 1, 2009.

EFFECTIVE DATE: Upon passage

40 — ATTORNEY OCCUPATIONAL TAX

PA 09-3, JSS increased the annual attorney occupational tax from $450 to $565, effective October 1, 2009. This act applies the increased tax to calendar years starting on or after January 1, 2009.

EFFECTIVE DATE: Upon passage

41 —TRANSFERS TO THE SPECIAL TRANSPORTATION FUND

PA 09-3, JSS requires the comptroller to transfer from the General Fund to the Special Transportation Fund the following amounts: $72. 0 million in FY 10 and $117. 5 million in FY 11 and each fiscal year thereafter. This act instead requires the comptroller to transfer (1) $81. 2 million in FY 10, (2) $126 million in FY 11 and FY 12 and (3) $172. 8 million in FY 13 and each subsequent year.

EFFECTIVE DATE: Upon passage

42 — REVISED BUDGET RESERVE FUND TRANSFERS TO GENERAL FUND

PA 09-3, JSS requires the treasurer to transfer from the Budget Reserve Fund to the General Fund $1. 062 billion in FY 10 and $319. 7 million in FY 11. This act (1) reduces the FY 10 transfer amount by $22. 3 million to $1,039. 7 million and (2) increases the FY 11 transfer amount by $22. 3 million to $342 million.

EFFECTIVE DATE: Upon passage

43 — LATE FILING FEE FOR CAMPAIGN TREASURERS

The act reverses an increase in the State Elections Enforcement Commission's late filing fee for campaign treasurers. PA 09-3, JSS doubled the fee, from $100 to $200, effective October 1, 2009. This act restores the $100 late fee that was in effect before that date.

EFFECTIVE DATE: Upon passage

44-54 — PROPERTY TAX EXEMPTION DEADLINE WAIVERS

The act allows certain taxpayers to receive the following property tax exemptions for particular grand list years even though they missed the filing deadlines for the exemption:

1. machinery and equipment used for manufacturing, biotechnology, or recycling (CGS 12-81 (72)) and

2. manufacturing and service facilities located in targeted investment communities or enterprise zones (CGS 12-81 (59)).

By law, property owners must apply to local assessors for these exemptions by November 1 annually. The act waives this filing deadline for property owners in the towns and for one or more of the above property categories and the grand lists shown in Table 2, if the property owners apply within 30 days of the act's passage and pay the statutory late fee.

In each case, the act requires the local assessor to (1) verify eligibility for the exemption and approve the exemption, (2) refund any taxes paid on the property, and (3) submit the request for a tax loss reimbursement to the OPM secretary. Subject to the secretary's review and approval, the act requires the state to reimburse the town for the tax loss under the applicable statute.

Table 2: Exemption Application Deadline Waivers

Town

Grand List

Type of Property

CGS

44

Newtown

2007

Machinery and equipment

12-81 (72)

45

Watertown

2007

Machinery and equipment

12-81 (72)

46

Suffield

2007

Machinery and equipment

12-81 (72)

47

Windsor

2007

Machinery and equipment

12-81 (72)

48

West Hartford

2008

Machinery and equipment

12-81 (72)

49

New Britain

2006

Machinery and equipment

12-81 (72)

50

Hartford

2007

Machinery and equipment

12-81 (72)

51

New Haven

2007

Manufacturing or service facility

12-81 (59)

52

Torrington

2008

Manufacturing or service facility

12-81 (59)

53

Stonington

2008

Machinery and equipment

12-81 (72)

54

Bridgeport

2007

Manufacturing or service facility

12-81 (59)

EFFECTIVE DATE: Upon passage

55-58 — REVISED REVENUE ESTIMATES

The act amends the General Fund and Special Transportation Fund revenue estimates for FY 10 and FY 11 adopted by PA 09-3, JSS. It reduces the total General Fund estimate for FY 10 by $3 million from $17,375. 4 million to $17,372. 4 million and increases the estimate for FY 11 by $4. 9 million, from $17,591. 9 million to $17,596. 8 million.

For the Special Transportation Fund, the act increases the revenue estimate (1) for FY 10 by $9. 2 million, from $1,106. 5 million to $1,115. 7 million and (2) for FY 11 by $8. 5 million, from $1,173. 2 million to $1,181. 7 million.

EFFECTIVE DATE: Upon passage

59 — REPEALERS

Economic Recovery Notes

PA 09-2, JSS authorized the state to issue economic recovery notes (ERNs) to fund the FY 09 General Fund deficit. This act repeals a requirement that, if the comptroller determines there is an unappropriated General Fund surplus at the end of any fiscal year from FY 10 through FY 17, that surplus first be used to redeem any outstanding ERNs before they mature.

The repealed provision conflicts with a similar provision of PA 09-3, JSS requiring that any General Fund surpluses for those years first be used to redeem ERNs before they mature and second to reduce the state's obligations under any plan to borrow against future state revenue (“securitization”).

Bridgeport Pension Financing

The act repeals a provision of PA 09-3, JSS concerning financing Bridgeport's pension contributions. The repealed provision conflicts with a similar provision in this act.

Shellfish Harvesting Fee

The act eliminates a fee of $1 per bushel bag or equivalent for harvesting shellfish in state waters for wholesale or retail sale. PA 09-3, JSS imposed the fee, effective October 1, 2009.

EFFECTIVE DATE: Upon passage

BACKGROUND

LEED Rating System

The U. S. Green Building Council has established rating systems for a variety of developments. There are separate rating systems for new, and major renovations of, commercial, institutional, and government buildings; commercial building interiors; the core and shell of commercial buildings, which covers such elements as the building envelope and heating, ventilation, air conditioning systems; retail establishments; and health care facilities. LEED addresses a building's performance in five areas: sustainable site development, water savings, energy efficiency, material selection, and indoor environmental quality. Participating buildings can be rated as certified, silver, gold, or platinum.