Connecticut Seal

General Assembly

 

Raised Bill No. 6566

January Session, 2013

 

LCO No. 3880

 

*03880_______FIN*

Referred to Committee on FINANCE, REVENUE AND BONDING

 

Introduced by:

 

(FIN)

 

AN ACT CONCERNING TRANSPARENCY IN ECONOMIC ASSISTANCE PROGRAMS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective July 1, 2013) (a) On or before January 1, 2014, the Commissioner of Economic and Community Development, in collaboration with the Commissioner of Revenue Services, shall establish and maintain searchable electronic databases on the Department of Economic and Community Development's Internet web site for purposes of posting information regarding economic assistance provided through any tax credit, abatement or other economic assistance program enacted for the purpose of recruitment or retention of businesses. The databases shall include, but need not be limited to, the items listed in subdivisions (1) and (2) of this subsection.

(1) For property tax abatements, grants, payments, loans or other forms of economic assistance:

(A) The name and principal location of the recipient of the economic assistance, excluding release of information relating to an individual's place of residence or release of information prohibited by state or federal law;

(B) The amount of state funds expended for economic assistance;

(C) The type of economic assistance, the statutory authority for such assistance and the state agency providing such assistance;

(D) A description of the specific purpose for the economic assistance;

(E) The number of persons employed by the recipient of the economic assistance;

(F) The number of jobs created or retained, if available and applicable;

(G) Actions required from, or conditions required of a recipient, if any, for receipt of the economic assistance;

(H) The status of compliance with such actions or conditions, if applicable; and

(I) An analysis of net direct and indirect state economic benefit and state tax impact, if available.

(2) For each tax credit claimed, information including, but not limited to:

(A) The name and principal location of the recipient of such credit, excluding release of information relating to an individual's place of residence or release of information otherwise prohibited by state or federal law;

(B) The amount of such credit;

(C) The specific statutory provision under which a credit has been granted;

(D) A description of the specific purpose of the credit;

(E) The number of persons employed by the recipient;

(F) The number of jobs created or retained, if available and applicable;

(G) Actions required from, or conditions required of a recipient, if any, for receipt of the economic assistance;

(H) The status of compliance with such actions or conditions, if applicable;

(I) An analysis of net direct and indirect state economic benefit and state tax impact, if available; and

(J) The identity of all taxpayers or organizations having any part in the chain of custody or claim to a credit at any time prior to the credit being claimed by a taxpayer.

(b) Each Internet web site established pursuant to subsection (a) of this section shall (1) allow members of the public to export sets of data produced by search query in a standardized exportable form, and (2) include data on economic assistance for the fiscal years ending on and after June 30, 2008, and on state tax credits for taxable periods commencing on and after January 1, 2007. Such data shall be available on each such web site not later than November first following the start of each fiscal year, except the initial data shall be available not later than January 1, 2014.

(c) Nothing in this section shall require the disclosure of information which is required to be kept confidential by state or federal law.

(d) The methodology and assumptions used in carrying out the analyses required pursuant to subdivisions (1) and (2) of subsection (a) of this section shall be available on each department's Internet web site.

Sec. 2. (NEW) (Effective July 1, 2013) (a) Each taxpayer claiming a credit against tax liability under chapter 207, 208 or 229 of the general statutes shall provide the Commissioner of Economic and Community Development with the following information, in a format determined by said commissioner:

(1) The name and principal location of the taxpayer; and

(2) The type and amount of credits claimed against tax liability under chapter 207, 208 or 229 of the general statutes for the most recent calendar, income or taxable year, as applicable.

(b) The information required pursuant to subsection (a) of this section shall be due on or before the first day of the month next succeeding the due date of the taxpayer's corresponding federal income tax return for the taxable period, determined without regard to any extension of time for filing, or, in the case of any taxpayer that is not required to file a federal income tax return for the taxable period, on or before the first day of the fourth month next succeeding the end of the calendar, income or taxable year, as applicable.

(c) Any information provided to the Commissioner of Economic and Community Development under this section shall be subject to disclosure under chapter 14 of the general statutes and shall be used in the development of the electronic database required pursuant to section 1 of this act.

Sec. 3. (NEW) (Effective July 1, 2013) The Commissioner of Revenue Services shall, on or before December 31, 2014, and every other year thereafter, submit to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, and post on said department's Internet web site a report on the overall incidence of the income tax, sales and excise taxes, the corporation business tax and property tax. The report shall present information on the distribution of the tax burden as follows:

(1) For individuals:

(A) Income classes, including income distribution expressed for every ten percentage points; and

(B) Other appropriate taxpayer characteristics, as determined by said commissioner.

(2) For businesses:

(A) Business size as established by gross receipts;

(B) Legal organization; and

(C) Industry by NAICS code.

Sec. 4. (NEW) (Effective from passage) (a) Not later than thirty days after the passage of the state budget act signed by the Governor for funding the expenses of operation of the state government in the ensuing biennium, the legislative Office of Fiscal Analysis shall post on its Internet web site the list of all line item appropriations in a downloadable database format.

(b) Upon transmission by the Governor to the General Assembly of a budget document as prescribed in section 4-71 of the general statutes, the Office of Policy and Management shall post on its Internet web site a list of all line item appropriations in a downloadable database format.

Sec. 5. Section 3-115 of the general statutes, as amended by section 44 of public act 11-48, is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

The Comptroller shall prepare all accounting statements relating to the financial condition of the state as a whole, the condition and operation of state funds, appropriations, reserves and costs of operations; shall furnish such statements when they are required for administrative purposes; and shall issue cumulative monthly financial statements concerning the state's General Fund which shall include a statement of revenues and expenditures to the end of the last-completed month together with the statement of estimated revenue by source to the end of the fiscal year and the statement of appropriation requirements of the state's General Fund to the end of the fiscal year furnished pursuant to section 4-66 and itemized as far as practicable for each budgeted agency, including estimates of lapsing appropriations, unallocated lapsing balances and unallocated appropriation requirements. The Comptroller shall provide such statements, in the same form and in the same categories as appears in the budget act enacted by the General Assembly, on or before the first day of the following month. The Comptroller shall submit a copy of the monthly trial balance and monthly analysis of expenditure run to the Office of Fiscal Analysis. On or before September thirtieth, annually, the Comptroller shall submit a report, prepared in accordance with generally accepted accounting principles, to the Governor which shall include (1) a statement of all appropriations and expenditures of the public funds during the fiscal year next preceding itemized by each appropriation account of each budgeted agency; (2) a statement of the revenues of the state classified as far as practicable as to budgeted agencies, sources and funds during such year; (3) a statement setting forth the total tax receipts of the state during such year; (4) a balance sheet setting forth, as of the close of such year, the financial condition of the state as to its funds; and such other information as will, in the Comptroller's opinion, be of interest to the public or as will convey to the General Assembly and the Governor the essential facts as to the financial condition and operations of the state government. The annual report of the Comptroller shall be published and made available to the public on or before the thirty-first day of December. Any financial tables in said annual report shall be posted on the Comptroller's Internet web site in a downloadable database format.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2013

New section

Sec. 2

July 1, 2013

New section

Sec. 3

July 1, 2013

New section

Sec. 4

from passage

New section

Sec. 5

July 1, 2013

3-115

Statement of Purpose:

To increase transparency in government, specifically in the areas of tax credits, state financial documents and the state's tax structure.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]