Senate Bill No. 3005
               Senate Bill No. 3005

   June 18 Special Session, PUBLIC ACT NO. 97-4


AN  ACT  CONCERNING STATE TAXES AND EXEMPTIONS AND
MAKING MISCELLANEOUS CHANGES RELATING TO THE STATE
BUDGET FOR THE BIENNIUM ENDING JUNE 30, 1999.

    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  1.  Section  12-218  of  the  general
statutes, as amended  by  section 10 of public act
97-243, is amended  by  adding  subsection  (j) as
follows:
    (NEW)  (j)  (1)   Any  taxpayer  described  in
subdivision (2) of  this  subsection may elect, on
or before the  due  date  or,  if  applicable, the
extended due date, of its corporation business tax
return for an  income  year commencing on or after
January  1, 1997,  to  apportion  its  net  income
derived from credit  card activities in the manner
provided in this subsection. The election, if made
by the taxpayer,  shall  be  irrevocable  for, and
applicable  for,  five  successive  income  years.
Income derived by such taxpayer from sources other
than credit card  activities  shall be apportioned
as  provided  in   this  section.  A  taxpayer  so
electing shall, for  purposes of subsection (a) of
this section, be  deemed  to be taxable in another
state if, under  the  laws  of  such  state,  such
taxpayer  is  subject  to  a  net  income  tax,  a
franchise tax for the privilege of doing business,
or a corporate  stock  tax  on such taxpayer's net
income derived from  credit  card  activities, and
such state does,  in  fact,  impose  such a tax on
such net income.
    (2)  A  taxpayer   is  eligible  to  make  the
election  provided  by  subdivision  (1)  of  this
subsection  if it  is  (A)  an  institution  whose
activities are limited  to  those  described in 12
USC Section 1841(c)(2)(F),  as  from  time to time
amended, (B) a  bank whose deposits are insured by
the  Federal  Deposit  Insurance  Corporation  and
which issues credit cards and regularly engages in
credit  card activities,  or  (C)  a  wholly-owned
subsidiary  of  a   bank   that  is  described  in
subparagraph  (B) of  this  subdivision,  if  such
subsidiary  is  engaged  in  purchasing,  holding,
selling,  assigning,  transferring,   pledging  or
otherwise dealing with  (i)  revolving credit card
accounts  and  credit   card   receivables,   (ii)
passthrough    or    asset-backed     certificates
evidencing interests in  one  or  more  trusts  or
pools of credit card receivables, or (iii) related
letters  of  credit,   indentures,   evidences  of
indebtedness  and agreements  including,  but  not
limited  to,  agreements   with   originators   or
servicers of credit  card receivables, and if both
such  subsidiary  and  such  bank  have  made  the
election  provided  by  subdivision  (1)  of  this
subsection for the  same  five  successive  income
years.  Notwithstanding  the  provisions  of  this
subdivision, a taxpayer  shall be eligible to make
the election provided  by  subdivision (l) of this
subsection for income years commencing on or after
January 1, 1997,  and  prior  to  January 1, 2002,
only  if  its  principal  credit  card  activities
during  such  income   years   are  located  in  a
distressed municipality as  defined  in subsection
(b) of section  32-9p. For income years commencing
on or after  January  1, 2002, a taxpayer shall be
eligible to make  the  election  without regard to
the  location  of   its   principal   credit  card
activities.
    (3)  The  numerator   of   the   apportionment
fraction   shall  consist   of   the   Connecticut
receipts, as described  in subdivision (4) of this
subsection. The denominator  of  the apportionment
fraction shall consist  of (A) the total amount of
interest and fees  or  penalties  in the nature of
interest  from  credit   card   receivables,   (B)
receipts  from  fees   charged  to  card  holders,
including,  but  not   limited  to,  annual  fees,
irrespective of the  billing  address  of the card
holder, (C) net gains from the sale of credit card
receivables, irrespective of  the  billing address
of  the card  holder,  and  (D)  all  credit  card
issuer's reimbursement fees,  irrespective  of the
billing address of the card holder.
    (4)   For   purposes   of   this   subsection,
"Connecticut  receipts"  shall  be  determined  by
adding (A) interest  and  fees or penalties in the
nature of interest  from  credit  card receivables
and receipts from  fees  charged  to card holders,
including, but not  limited to, annual fees, where
the billing address  of the card holder is in this
state and (B)  the  product  of (i) the sum of net
gains from the sale of credit card receivables and
all  credit  card   issuer's   reimbursement  fees
multiplied by (ii)  a  fraction,  the numerator of
which shall be  interest  and fees or penalties in
the   nature  of   interest   from   credit   card
receivables and receipts from fees charged to card
holders, including, but  not  limited  to,  annual
fees, where the billing address of the card holder
is in this  state,  and  the  denominator of which
shall be the  total amount of interest and fees or
penalties in the  nature  of  interest from credit
card receivables and receipts from fees charged to
card  holders,  including,  but  not  limited  to,
annual fees, irrespective  of  the billing address
of the card holder.
    (5) For purposes of this subsection:
    (A) "Credit card"  means  a credit, travel, or
entertainment card;
    (B)   "Receipts"   means   receipts   computed
according to the  method of accounting used by the
taxpayer in the computation of net income;
    (C) "Credit card  issuer's  reimbursement fee"
means the fee  that  a  taxpayer  receives  from a
merchant's bank because one of the persons to whom
the taxpayer has  issued a credit card has charged
merchandise or services to the credit card;
    (D)  "Net  income  derived  from  credit  card
activities"  means  (i)   interest   and  fees  or
penalties in the  nature  of  interest from credit
card receivables and receipts from fees charged to
card  holders,  including,  but  not  limited  to,
annual fees, net  gains  from  the  sale of credit
card    receivables,    credit    card    issuer's
reimbursement fees, and  credit  card  receivables
servicing fees received  in connection with credit
cards issued by  the  taxpayer, less (ii) expenses
related to such  income,  to the extent deductible
under chapter 208; and
    (E) "Billing address"  shall be presumed to be
the location indicated in the books and records of
the taxpayer as  the  address  where  any  notice,
statement or bill  relating to a card holder is to
be mailed, as of the date of such mailing.
    (F)  "Credit  card   activities"  means  those
activities involving the underwriting and approval
of credit card  relationships  or  other  business
activities generally associated  with  the conduct
of business by  an  issuer  of  credit  cards from
which it derives income.
    (6) The Commissioner  of  Revenue Services may
adopt regulations, in  accordance with chapter 54,
to permit a  taxpayer described in subdivision (2)
of this subsection that is an owner of a financial
asset securitization investment  trust, as defined
in Section 860H(a)  of  the Internal Revenue Code,
to elect to  apportion its share of the net income
from credit card  activities  carried  on  by such
trust, and to  provide rules for apportioning such
share of net  income that are consistent with this
subsection.
    Sec. 2. Section 31-254 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) Each employer,  whether  or  not otherwise
subject  to  this  chapter,  shall  keep  accurate
records of employment as defined in subsection (a)
of section 31-222,  containing such information as
the administrator may  by  regulation prescribe in
order to effectuate  the purposes of this chapter.
Such records shall  be open to, and available for,
inspection and copying by the administrator or his
authorized representatives at  any reasonable time
and   as  often   as   may   be   necessary.   The
administrator  may  require   from  any  employer,
whether or not  otherwise subject to this chapter,
any  sworn or  unsworn  reports  with  respect  to
persons employed by  him  which  are necessary for
the  effective  administration  of  this  chapter.
Information thus obtained  shall  not be published
or be open  to  public  inspection,  other than to
public  employees  in  the  performance  of  their
public  duties,  in   any   manner  revealing  the
employee's or the  employer's  identity,  but  any
claimant at a  hearing before a commissioner shall
be supplied with  information from such records to
the extent necessary  for  the proper presentation
of his claim.  Any  employee of the administrator,
or any other  public  employee,  who  violates any
provision of this  section shall be fined not more
than two hundred  dollars  or  imprisoned not more
than six months  or  both  and  shall be dismissed
from the service.  Reports  or  records which have
been required by  the administrator and which have
been used in computing benefit rights of claimants
or in the  determination  of the amounts and rates
of  contributions  shall   be   preserved  by  the
administrator for a period of at least four years.
Those  records  or   reports   required   by   the
administrator which have  not  been  used  for the
purpose of computing  benefit  rights  or  in  the
determination  of  the   amounts   or   rates   of
contributions   shall   be    preserved   by   the
administrator for at least two and one-half years.
Such records or  reports  may,  after preservation
for the minimum  period  required by this section,
be  destroyed  by   the   administrator   in   his
discretion,  notwithstanding  the   provisions  of
section   11-8a.  Notwithstanding   any   of   the
disclosure  provisions  of   this   chapter,   the
administrator shall provide  upon  request  of the
public agency administering  the  AFDC  and  child
support   programs,   any   information   in   his
possession relating to  individuals:  (1)  Who are
receiving,  have received,  or  have  applied  for
unemployment insurance; (2) the amount of benefits
being received; (3)  the  current  home address of
such individuals, and  (4)  whether  any  offer of
work has been refused and, if so, a description of
the job and the terms, conditions, and rate of pay
therefor. Notwithstanding any  of  the  disclosure
provisions  of  this  chapter,  the  administrator
shall provide, upon  request  of  the  Connecticut
Student   Loan   Foundation,   its   officers   or
employees,  any  information   in  his  possession
relating to the current residence address or place
of  employment of  any  individual  who  has  been
determined  by  the   Connecticut   Student   Loan
Foundation to be  in  default on his student loan.
Reimbursement  for the  cost  of  furnishing  this
information shall be made by the agency requesting
the  data  in   a   manner   prescribed   by   the
administrator of this chapter.
    (b) THE LABOR  DEPARTMENT  SHALL  ADMINISTER A
STATE DIRECTORY OF  NEW  HIRES  IN ACCORDANCE WITH
THIS SECTION. NOT LATER THAN TWENTY DAYS AFTER THE
DATE OF EMPLOYMENT,  EACH  EMPLOYER MAINTAINING AN
OFFICE OR TRANSACTING BUSINESS IN THIS STATE SHALL
REPORT  THE  NAME,  ADDRESS  AND  SOCIAL  SECURITY
NUMBER OF EACH NEW EMPLOYEE EMPLOYED IN THIS STATE
TO THE LABOR  DEPARTMENT  BY  FORWARDING  TO  SAID
DEPARTMENT A COPY  OF  THE  CONNECTICUT INCOME TAX
WITHHOLDING OR EXEMPTION  CERTIFICATE COMPLETED BY
SUCH EMPLOYEE OR  BY  ANY  OTHER  MEANS CONSISTENT
WITH REGULATIONS THE  LABOR COMMISSIONER MAY ADOPT
IN  ACCORDANCE  WITH   CHAPTER   54,  EXCEPT  THAT
EMPLOYERS REPORTING MAGNETICALLY OR ELECTRONICALLY
SHALL REPORT NEW EMPLOYEES, IF ANY, AT LEAST TWICE
PER MONTH BY  TRANSMISSIONS  NOT  LESS THAN TWELVE
NOR MORE THAN SIXTEEN DAYS APART. EACH SUCH REPORT
SHALL INDICATE THE  NAME,  ADDRESS  AND  STATE AND
FEDERAL TAX REGISTRATION OR IDENTIFICATION NUMBERS
OF  THE  EMPLOYER.   SUCH   INFORMATION  SHALL  BE
TRANSMITTED IN A  FORMAT  PRESCRIBED  BY THE LABOR
COMMISSIONER. SUCH INFORMATION SHALL BE ENTERED BY
THE LABOR DEPARTMENT IN THE STATE DIRECTORY OF NEW
HIRES WITHIN FIVE BUSINESS DAYS OF RECEIPT AND MAY
BE USED BY  THE  LABOR  COMMISSIONER IN ACCORDANCE
WITH  HIS  POWERS   AND   DUTIES   BUT   SHALL  BE
CONFIDENTIAL AND SHALL  NOT BE DISCLOSED EXCEPT AS
PROVIDED  IN  SUBSECTIONS  (d)  AND  (e)  OF  THIS
SECTION AND SUBSECTION  (b)  OF  SECTION 3 OF THIS
ACT.
    (c) (1) FOR  THE  PURPOSES  OF  THIS  SECTION,
"EMPLOYER" DOES NOT INCLUDE ANY DEPARTMENT, AGENCY
OR INSTRUMENTALITY OF  THE  UNITED  STATES; OR ANY
STATE    AGENCY   PERFORMING    INTELLIGENCE    OR
COUNTERINTELLIGENCE FUNCTIONS, IF THE HEAD OF SUCH
AGENCY HAS DETERMINED  THAT  REPORTING PURSUANT TO
THIS SECTION WITH  RESPECT  TO  THE EMPLOYEE COULD
ENDANGER THE SAFETY  OF THE EMPLOYEE OR COMPROMISE
AN ONGOING INVESTIGATION OR INTELLIGENCE MISSION.
    (2) AN EMPLOYER  THAT  HAS  EMPLOYEES  WHO ARE
EMPLOYED IN THIS  STATE  AND  ONE  OR  MORE  OTHER
STATES AND THAT  TRANSMITS REPORTS MAGNETICALLY OR
ELECTRONICALLY SHALL NOT  BE REQUIRED TO REPORT TO
THIS STATE IF SUCH EMPLOYER HAS DESIGNATED ANOTHER
STATE IN WHICH  IT  HAS EMPLOYEES TO WHICH IT WILL
TRANSMIT  REPORTS,  PROVIDED   SUCH  EMPLOYER  HAS
NOTIFIED THE LABOR COMMISSIONER, IN WRITING, AS TO
WHICH  OTHER  STATE  IT  HAS  DESIGNATED  FOR  THE
PURPOSE OF SENDING SUCH REPORTS.
    (d) ON A  DAILY  BASIS, IN IV-D SUPPORT CASES,
AS DEFINED IN  SECTION  46b-231, THE DEPARTMENT OF
SOCIAL  SERVICES  SHALL  COMPILE  A  LIST  OF  ALL
INDIVIDUALS WHO ARE THE SUBJECT OF A CHILD SUPPORT
INVESTIGATION OR ACTION  BEING  UNDERTAKEN  BY THE
IV-D AGENCY, AS  DEFINED  IN  SECTION 46b-231, AND
SHALL TRANSMIT SUCH  LIST TO THE LABOR DEPARTMENT.
THE LABOR DEPARTMENT  SHALL  PROMPTLY IDENTIFY ANY
NEW EMPLOYEE WHO  IS  SUCH  AN INDIVIDUAL AND SAID
DEPARTMENT SHALL TRANSMIT  TO  THE  DEPARTMENT  OF
SOCIAL  SERVICES  THE  NAME,  ADDRESS  AND  SOCIAL
SECURITY NUMBER OF EACH NEW EMPLOYEE AND THE NAME,
ADDRESS AND STATE  AND FEDERAL TAX REGISTRATION OR
IDENTIFICATION NUMBERS OF  THE  EMPLOYER. THE IV-D
AGENCY  SHALL  USE   SUCH  INFORMATION  TO  LOCATE
INDIVIDUALS FOR PURPOSES OF ESTABLISHING PATERNITY
AND ESTABLISHING, MODIFYING AND ENFORCING CHILD OR
MEDICAL  SUPPORT ORDERS,  AND  MAY  DISCLOSE  SUCH
INFORMATION TO ANY  AGENT  OF  SUCH AGENCY THAT IS
UNDER CONTRACT TO  CARRY  OUT  SUCH  PURPOSES. THE
LABOR    COMMISSIONER    SHALL     REQUIRE    THAT
CONFIDENTIALITY   SAFEGUARDS  BE   PART   OF   THE
CONTRACTING AGENCY'S AGREEMENT WITH THE DEPARTMENT
OF SOCIAL SERVICES.
    (e) ON A  BIWEEKLY  BASIS,  THE  DEPARTMENT OF
SOCIAL   SERVICES  SHALL   COMPILE   A   LIST   OF
INDIVIDUALS WHO ARE  RECEIVING  PUBLIC  ASSISTANCE
UNDER THE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES,
MEDICAID, FOOD STAMP, STATE SUPPLEMENT AND GENERAL
ASSISTANCE PROGRAMS AND  SHALL  TRANSMIT SUCH LIST
TO  THE LABOR  DEPARTMENT.  THE  LABOR  DEPARTMENT
SHALL PROMPTLY IDENTIFY  ANY  NEW  EMPLOYEE WHO IS
SUCH  AN  INDIVIDUAL  AND  SAID  DEPARTMENT  SHALL
TRANSMIT TO THE  DEPARTMENT OF SOCIAL SERVICES THE
NAME, ADDRESS AND  SOCIAL  SECURITY NUMBER OF EACH
SUCH NEW EMPLOYEE  AND THE NAME, ADDRESS AND STATE
AND  FEDERAL TAX  REGISTRATION  OR  IDENTIFICATION
NUMBERS OF THE EMPLOYER.
    (f) THE DEPARTMENT  OF  SOCIAL  SERVICES SHALL
REIMBURSE  THE  LABOR  DEPARTMENT  FOR  ANY  COSTS
INCLUDED IN CARRYING  OUT  THE  PROVISIONS OF THIS
SECTION,  INCLUDING  THE   COST   OF  PROVIDING  A
TOLL-FREE FACSIMILE NUMBER  FOR EMPLOYERS REQUIRED
TO  REPORT PURSUANT  TO  SUBSECTION  (b)  OF  THIS
SECTION  AND  SECTION   3   OF   THIS   ACT.   THE
COMMISSIONER  OF SOCIAL  SERVICES  AND  THE  LABOR
COMMISSIONER  SHALL  ENTER   INTO  A  PURCHASE  OF
SERVICE  AGREEMENT  WHICH  ESTABLISHES  PROCEDURES
NECESSARY FOR THE  ADMINISTRATION  OF  SUBSECTIONS
(b) TO (f), INCLUSIVE, OF THIS SECTION.
    Sec. 3. (NEW)  (a) The Labor Department shall,
on a quarterly  basis,  furnish  to  the  national
directory of new  hires  extracts  of the wage and
claim  information  contained   in   the   records
required and maintained  by the Labor Commissioner
pursuant to chapter  567  of  the general statutes
and  to  the   extent   required   by   applicable
provisions of state and federal law.
    (b) Not later  than  three business days after
the  date  information  regarding  a  newly  hired
employee is entered  into  the  state directory of
new hires, the Labor Department shall furnish such
information to the national directory of new hires
established under the  Welfare  Reform Act, 42 USC
653.
    Sec. 4. Subsection  (d)  of  section 31-225 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (d)  In  lieu  of  contributions  required  of
employers subject to this chapter, the state shall
pay into the  Unemployment  Compensation  Fund  an
amount  equivalent  to   the  amount  of  benefits
charged  to  the  state  as  provided  in  section
31-225a, or may  at  its  option  make payments as
provided in subdivision  (1)  of subsection (g) of
this  section. The  amount  of  payments  required
under this section  to be made into the fund shall
be ascertained by  the  administrator  as  soon as
practicable after the end of each calendar quarter
and shall be  payable from the General Fund of the
state, except as provided hereafter. If a claimant
to whom benefits  were  paid was paid wages by the
state during the  base  period  from  a special or
administrative  fund  provided  for  by  law,  the
payment into the  Unemployment  Compensation  Fund
shall be made  from such special or administrative
fund with the  approval  of  the  Secretary of the
Office of Policy  and  Management.  The payment by
the state into  the  fund  shall  be  made at such
times and in  such manner as the administrator may
determine and prescribe.  [The  state shall not be
required  to  maintain  a  record  of  the  Social
Security account numbers of its employees.]
    Sec.  5.  Section   12-412   of   the  general
statutes,  as  amended   by  sections  21  to  25,
inclusive, of public  act  97-243,  section  6  of
public act 97-295,  public  act 97-315, and public
act 97-316, is  amended  by adding subsection (94)
as follows:
    (NEW) (94) Sales of and the acceptance, use or
other  consumption of  any  service  described  in
subsection (2) of section 12-407 that is accepted,
used or consumed in the development, construction,
rehabilitation, renovation or  repair  of  housing
facilities for low  and  moderate  income families
and persons, provided such facilities are situated
in   Qualified   Census    Tracts   or   Difficult
Development Areas as  designated  by the Secretary
of the United  States  Department  of  Housing and
Urban Development and  provided, further, that the
development of such  facilities  is assisted by an
allocation  of  Low  Income  Housing  Tax  Credits
pursuant to Section  42  of  the  Internal Revenue
Code.  For  purposes   of   this  subsection,  (A)
"housing facilities" means  facilities  having  as
their primary purpose  the  provision  of safe and
adequate housing and  related  facilities  for low
and   moderate  income   families   and   persons,
notwithstanding that said  housing  provides other
dwelling  accommodations  for   low  and  moderate
income families; (B)  "related  facilities"  means
those  facilities defined  in  subsection  (d)  of
section 8-243; and  (C)  "low  and moderate income
families"  means  those  families  as  defined  in
subsection (h) of said section 8-243.
    Sec. 6. Section 12-692 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) For purposes of this section:
    (1)   ["Motor   vehicle"]   "PASSENGER   MOTOR
VEHICLE"  means  a  [private]  passenger  vehicle,
[designed   to   transport    fifteen   or   fewer
passengers,] which is  rented without a driver and
WHICH is part  of a motor vehicle fleet of five or
more passenger MOTOR  vehicles  THAT ARE owned AND
USED FOR RENTAL  PURPOSES  by the same [person or]
rental company. [used for rentals.]
    (2) "Rental company" means any business entity
THAT  IS  engaged   in  the  business  of  renting
PASSENGER motor vehicles  WITHOUT A DRIVER in this
state AND THAT OWNS AND USES FOR RENTAL PURPOSES A
MOTOR VEHICLE FLEET  OF  FIVE  OR  MORE  PASSENGER
MOTOR VEHICLES IN THIS STATE, but does not mean [a
motor vehicle repair  shop  as  defined in section
14-65e] ANY PERSON,  FIRM  OR  CORPORATION THAT IS
LICENSED, OR REQUIRED  TO BE LICENSED, PURSUANT TO
SECTION 14-52, AS  A  NEW  CAR  DEALER,  USED  CAR
DEALER, REPAIRER OR LIMITED REPAIRER.
    (b) There is  hereby  imposed a three per cent
surcharge on each  PASSENGER  motor vehicle rented
within the state  BY  A RENTAL COMPANY TO A LESSEE
for a period  of  less  than  thirty-one days. The
rental surcharge shall  be  imposed  on  the total
amount the [lessor]  RENTAL  COMPANY  charges  the
lessee for the  rental  of  a  motor vehicle. SUCH
SURCHARGE  SHALL  BE   IN   ADDITION  TO  ANY  TAX
OTHERWISE APPLICABLE TO  ANY  SUCH TRANSACTION AND
SHALL BE INCLUDABLE  IN  THE  MEASURE OF THE SALES
AND USE TAXES IMPOSED UNDER CHAPTER 219.
    (c) Reimbursement for the surcharge imposed by
subsection (b) of  this section shall be collected
by the [lessor] RENTAL COMPANY from the lessee and
such surcharge reimbursement,  termed  "surcharge"
in  this  subsection,   shall   be   paid  by  the
[consumer] LESSEE to the [retailer] RENTAL COMPANY
and each [retailer]  RENTAL  COMPANY shall collect
from the [consumer]  LESSEE the full amount of the
surcharge imposed by  said  subsection  (b).  Such
surcharge shall be  a  debt from the lessee to the
[lessor] RENTAL COMPANY,  when  so  added  to  the
original  lease or  rental  price,  and  shall  be
recoverable at law  in  the  same  manner as other
debts.  The  rental   contract   shall  separately
indicate  the rental  surcharge  imposed  on  each
PASSENGER  motor  vehicle   rental.   The   rental
surcharge  shall, SUBJECT  TO  THE  PROVISIONS  OF
SUBSECTION (d) OF THIS SECTION, be retained by the
rental company.
    (d) On or  before  February  15, 1997, and the
fifteenth of February  annually  thereafter,  each
rental  company  shall  file  a  report  with  the
[Secretary of the  Office of Policy and Management
detailing the amount  of  personal  property  tax,
licensing  and  titling   fees   paid  during  the
previous year on  motor vehicles used for rent and
the  amount  received   pursuant   to  the  rental
surcharge imposed under this section] COMMISSIONER
OF REVENUE SERVICES DETAILING THE AGGREGATE AMOUNT
OF PERSONAL PROPERTY  TAX THAT IS ACTUALLY PAID BY
SUCH  COMPANY TO  A  CONNECTICUT  MUNICIPALITY  OR
MUNICIPALITIES DURING THE  PRECEDING CALENDAR YEAR
ON PASSENGER MOTOR  VEHICLES  THAT  ARE  OWNED AND
USED FOR RENTAL  PURPOSES  BY  SUCH  COMPANY,  THE
AGGREGATE AMOUNT OF  REGISTRATION AND TITLING FEES
THAT ARE ACTUALLY  PAID  BY  SUCH  COMPANY  TO THE
DEPARTMENT OF MOTOR  VEHICLES OF THIS STATE DURING
THE PRECEDING CALENDAR  YEAR  ON  PASSENGER  MOTOR
VEHICLES  THAT  ARE  OWNED  AND  USED  FOR  RENTAL
PURPOSES BY SUCH  COMPANY AND THE AGGREGATE AMOUNT
OF THE RENTAL SURCHARGE THAT IS ACTUALLY RECEIVED,
PURSUANT TO THIS  SECTION,  BY SUCH COMPANY DURING
THE PRECEDING CALENDAR  YEAR  ON  PASSENGER  MOTOR
VEHICLES  THAT  ARE  OWNED  AND  USED  FOR  RENTAL
PURPOSES BY SUCH  COMPANY.  THE  REPORT SHALL ALSO
SHOW SUCH OTHER  INFORMATION  AS  THE COMMISSIONER
DEEMS NECESSARY FOR  THE  PROPER ADMINISTRATION OF
THIS SECTION. On  or before February 15, 1997, and
the  fifteenth of  February  annually  thereafter,
each   rental   company   shall   remit   to   the
[Comptroller] COMMISSIONER OF REVENUE SERVICES for
deposit  in  the  General  Fund,  the  amount  [of
surcharge collected which  exceeds  the  amount of
property taxes, licensing  and  titling  fees paid
and a copy  of  the  report which was submitted to
the Office of  Policy and Management] BY WHICH THE
AGGREGATE AMOUNT OF  THE RENTAL SURCHARGE ACTUALLY
RECEIVED BY SUCH  COMPANY  ON SUCH VEHICLES DURING
THE PRECEDING CALENDAR YEAR EXCEEDS THE SUM OF THE
AGGREGATE AMOUNT OF  PROPERTY  TAXES ACTUALLY PAID
BY SUCH COMPANY  ON SUCH VEHICLES TO A CONNECTICUT
MUNICIPALITY   OR   MUNICIPALITIES    DURING   THE
PRECEDING CALENDAR YEAR  AND  THE AGGREGATE AMOUNT
OF REGISTRATION AND  TITLING FEES ACTUALLY PAID BY
SUCH COMPANY ON SUCH VEHICLES TO THE DEPARTMENT OF
MOTOR VEHICLES OF  THIS STATE DURING THE PRECEDING
CALENDAR YEAR.
    (e) ANY PERSON  WHO  FAILS  TO  PAY ANY AMOUNT
REQUIRED TO BE PAID TO THE COMMISSIONER OF REVENUE
SERVICES  UNDER  THIS   SECTION  WITHIN  THE  TIME
REQUIRED SHALL PAY  A  PENALTY OF FIFTEEN PER CENT
OF SUCH AMOUNT  OR FIFTY DOLLARS, WHICHEVER AMOUNT
IS  GREATER, IN  ADDITION  TO  SUCH  AMOUNT,  PLUS
INTEREST AT THE  RATE OF ONE PER CENT PER MONTH OR
FRACTION THEREOF FROM  THE DUE DATE OF SUCH AMOUNT
UNTIL  THE  DATE   OF   PAYMENT.  SUBJECT  TO  THE
PROVISIONS OF SECTION  12-3a, THE COMMISSIONER MAY
WAIVE ALL OR  ANY  PART  OF THE PENALTIES PROVIDED
UNDER  THIS SECTION  WHEN  IT  IS  PROVEN  TO  THE
SATISFACTION OF THE  COMMISSIONER THAT THE FAILURE
TO PAY ANY  AMOUNT  REQUIRED  TO  BE  PAID  TO THE
COMMISSIONER WAS DUE  TO  REASONABLE CAUSE AND WAS
NOT INTENTIONAL OR DUE TO NEGLECT.
    (f) THE COMMISSIONER  OF  REVENUE SERVICES FOR
GOOD CAUSE MAY  EXTEND  THE  TIME  FOR  MAKING ANY
REPORT AND PAYING  ANY  AMOUNT REQUIRED TO BE PAID
TO  THE  COMMISSIONER  UNDER  THIS  SECTION  IF  A
WRITTEN  REQUEST  THEREFOR   IS   FILED  WITH  THE
COMMISSIONER  TOGETHER  WITH  A  TENTATIVE  REPORT
WHICH SHALL BE  ACCOMPANIED  BY  A  PAYMENT OF ANY
AMOUNT  TENTATIVELY BELIEVED  TO  BE  DUE  TO  THE
COMMISSIONER, ON OR BEFORE THE LAST DAY FOR FILING
THE REPORT. ANY  PERSON  TO  WHOM  AN EXTENSION IS
GRANTED  SHALL PAY,  IN  ADDITION  TO  THE  AMOUNT
REQUIRED TO BE  PAID,  INTEREST AT THE RATE OF ONE
PER CENT PER  MONTH  OR  FRACTION THEREOF FROM THE
DATE ON WHICH  SUCH  AMOUNT  WOULD  HAVE  BEEN DUE
WITHOUT THE EXTENSION UNTIL THE DATE OF PAYMENT.
    (g)  THE  PROVISIONS  OF  SECTIONS  12-548  TO
12-554, INCLUSIVE, AND SECTION 12-555a SHALL APPLY
TO THE PROVISIONS  OF  THIS  SECTION  IN  THE SAME
MANNER AND WITH  THE  SAME  FORCE AND EFFECT AS IF
THE LANGUAGE OF  SAID  SECTIONS  12-548 TO 12-554,
INCLUSIVE,   AND   SECTION    12-555a   HAD   BEEN
INCORPORATED IN FULL  INTO THIS SECTION, EXCEPT TO
THE EXTENT THAT ANY PROVISION IS INCONSISTENT WITH
A PROVISION IN  THIS  SECTION, AND EXCEPT THAT THE
TERM "TAX" SHALL BE READ AS "SURCHARGE".
    Sec. 7. Subsection  (a)  of  section 14-307 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) The traffic authority of any city, town or
borough shall have  power  to  prohibit,  limit or
restrict the parking  of vehicles and to erect and
maintain signs in  each block designating the time
or terms of such prohibition or restriction on any
highway   or   thoroughfare   coming   under   the
jurisdiction of such  city,  town  or  borough and
such  traffic  authority  may  remove  from  state
highways, except limited  access  highways, within
the  territorial limits  of  such  city,  town  or
borough any vehicles  parked  in  violation of any
regulation  of  the   State   Traffic   Commission
established in accordance  with  subsection (b) of
this section and of any rule, regulation, order or
ordinance  of  any  such  city,  town  or  borough
relative to or  in connection with parking on such
highway.  Such  removal  shall  be  undertaken  in
accordance with the  procedures  employed  by  the
city, town or  borough  in the removal of vehicles
from any highway  or thoroughfare coming under the
jurisdiction of such  city,  town  or borough. THE
COMMISSIONER  OF  MOTOR   VEHICLES   SHALL   ADOPT
REGULATIONS IN ACCORDANCE  WITH  THE PROVISIONS OF
CHAPTER 54 TO ESTABLISH PROCEDURES FOR THE REMOVAL
OF SUCH VEHICLES BY SUCH TRAFFIC AUTHORITY AND FOR
THE  STORAGE OF  SUCH  VEHICLES.  THE  REGULATIONS
SHALL, AT A MINIMUM, (1) REQUIRE THAT SUCH TRAFFIC
AUTHORITY PROVIDE WRITTEN NOTICE BY CERTIFIED MAIL
TO THE OWNER  OF  ANY VEHICLE REMOVED, (2) PROVIDE
ANY SUCH OWNER  WITH  AN OPPORTUNITY FOR A HEARING
BEFORE A HEARING  OFFICER  APPOINTED  BY THE CHIEF
EXECUTIVE OFFICER OF  EACH  CITY,  TOWN OR BOROUGH
AND SPECIFY PROCEDURES  FOR  THE  HOLDING  OF SUCH
HEARING, (3) PROVIDE  THAT  THE OWNER OR KEEPER OF
ANY GARAGE OR  OTHER  PLACE WHERE ANY SUCH VEHICLE
IS STORED SHALL HAVE A LIEN ON THE VEHICLE FOR HIS
STORAGE CHARGES AND (4) SPECIFY PROCEDURES FOR THE
SALE AT PUBLIC  AUCTION  OF  ANY VEHICLE PLACED IN
STORAGE WHICH IS  NOT  CLAIMED  WITHIN A SPECIFIED
PERIOD OF TIME BY THE OWNER THEREOF.
    Sec. 8. Subsection (a) of section 3-13d of the
general  statutes, as  amended  by  section  1  of
public act 97-260,  is  repealed and the following
is substituted in lieu thereof:
    (a) Notwithstanding any other provision in the
general statutes or elsewhere to the contrary, the
Treasurer shall invest  as  much  of  the  state's
trust  funds  as  are  not  required  for  current
disbursements in accordance with the provisions of
section 45a-203 or  the  provisions  of this part.
Notwithstanding the provisions  of this section or
any other provision  in  the  general  statutes or
elsewhere to the contrary, the Treasurer shall not
invest more than fifty-five per cent of the market
value of each  such  trust  fund  in common stock,
EXCEPT IN THE  EVENT OF A STOCK MARKET FLUCTUATION
THAT  CAUSES  THE   COMMON   STOCK  PERCENTAGE  TO
INCREASE AND THE  TREASURER  DEEMS  IT IN THE BEST
INTEREST OF SUCH  TRUST  FUND TO MAINTAIN A HIGHER
PERCENTAGE  OF EQUITIES,  PROVIDED  THE  TREASURER
SHALL NOT ALLOW  THE  MARKET  VALUE  OF  EACH SUCH
TRUST FUND IN  COMMON  STOCK  TO EXCEED FIFTY-FIVE
PER CENT FOR  MORE  THAN  SIX  MONTHS  AFTER  SUCH
FLUCTUATION  OCCURS. Investments  in  real  estate
investment  trusts  (REITS)  shall  be  considered
alternative  investments  and   not  common  stock
investments  under  this   section.  In  order  to
increase  the  income   for   each  such  combined
investment fund established  pursuant  to  section
3-31b, the Treasurer  may  enter  into  repurchase
agreements or lend securities from each such fund,
provided that at  the time of the execution of the
repurchase agreement or  the  loan  at  least  one
hundred  per cent  of  the  market  value  of  the
security  sold  or   lent  shall  be  received  as
consideration in the  form  of  cash or securities
guaranteed by the  United States government or any
agency of the United States government in the case
of a repurchase  agreement  or  secured by cash or
such securities in  the  case  of  a  loan. At all
times during the  term  of  each  such  repurchase
agreement  or the  term  of  each  such  loan  the
consideration received or  the collateral shall be
equal to not less than ninety-five per cent of the
full  market  value   of  the  security  and  said
consideration received or  said  collateral  shall
not be more than one hundred thousand dollars less
than the full  market  value  of the security. The
Treasurer may sell  call  options which would give
the holders of  such options the right to purchase
securities held by  the  Treasurer at the date the
call is sold  for  investment purposes, under such
terms  and  conditions   as   the   Treasurer  may
determine. Among the  factors  to be considered by
the Treasurer with  respect  to all securities may
be   the  social,   economic   and   environmental
implications  of investments  of  trust  funds  in
particular securities or  types  of securities. In
the investment of  the  state's  trust  funds  the
Treasurer shall consider  the  implications of any
particular investment in  relation  to the foreign
policy  and  national   interests  of  the  United
States.
    Sec.  9.  Notwithstanding  the  provisions  of
subparagraph (c) of  subdivision  (59)  of section
12-81  of  the   general   statutes,   any  person
otherwise eligible for  an  exemption  pursuant to
subparagraph (a) of  said  subdivision  for  taxes
payable in July,  1996,  and January, 1997, except
that such person failed to make application within
the time specified  in  said subparagraph (c), may
submit an application  for exemption within thirty
days after the effective date of this section. The
application  shall  be   accompanied  by  the  fee
required  by  section   12-81k   of   the  general
statutes. Upon receipt  of the application and fee
and verification of  payment  of  such  taxes, the
municipality  may  reimburse  such  person  in  an
amount equal to  one-half  of  the amount by which
such  taxes  exceed   the  taxes  payable  if  the
application had been filed in a timely manner and,
notwithstanding  the  time  for  filing  with  the
Secretary of the  Office  of Policy and Management
specified  in  section   32-9s   of   the  general
statutes, shall be  eligible  for payment pursuant
to said section 32-9s.
    Sec. 10. Section 31-2c of the general statutes
is repealed.
    Sec. 11. This  act  shall take effect from its
passage  except  that   (1)  section  1  shall  be
applicable to income  years commencing on or after
January 1, 1997; (2) section 5 shall be applicable
to sales occurring  on  or  after January 1, 1997;
(3) section 3  shall  take effect October 1, 1997;
and (4) sections  2,  4  and  10 shall take effect
October 1, 1998.

Approved June 30, 1997