Connecticut Seal

General Assembly

 

Raised Bill No. 7263

January Session, 2017

 

LCO No. 4468

 

*04468_______FIN*

Referred to Committee on FINANCE, REVENUE AND BONDING

 

Introduced by:

 

(FIN)

 

AN ACT CONCERNING MINOR REVISIONS AND TECHNICAL CHANGES TO THE TAX AND RELATED STATUTES.

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

Section 1. Subdivision (1) of subsection (e) of section 4-28n of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(e) (1) [At least ten days prior to the first day of each calendar quarter,] In conjunction with the certification required under section 4-28l and as a condition precedent to having its brand families listed or retained in the directory, each nonparticipating manufacturer shall [file] post annually with the commissioner [a surety bond, the form of which shall be approved by the Attorney General,] either a good and valid bond that is issued by a [bonding company or insurance] surety company authorized to do business in this state [. The bond shall be in favor of the commissioner and be in the principal sum of] or other security acceptable to the commissioner. Any bond or other surety shall be in favor of the state of Connecticut and shall be equal in amount to the greater of (A) twenty-five thousand dollars, or (B) the greatest amount of the total escrow [payments] owed for a calendar year in any of the five calendar years preceding the [filing] posting of such bond or other security. The commissioner may, in consultation with the Attorney General, authorize the release of such bond or other security once it has been established that the nonparticipating manufacturer has met the requirements of section 4-28i.

Sec. 2. Subdivision (3) of subsection (a) of section 4-28m of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(3) The commissioner shall not include or retain in the directory any brand family of a nonparticipating manufacturer if the commissioner concludes: (A) All escrow payments required pursuant to the provisions of sections 4-28h to 4-28j, inclusive, for any period for any brand family, whether or not listed by such nonparticipating manufacturer, have not been fully paid into a qualified escrow fund governed by a qualified escrow agreement that has been approved by the Attorney General; (B) any outstanding final judgment, including interest thereon, for a violation of sections 4-28h to 4-28j, inclusive, has not been fully satisfied for such brand family and such manufacturer; or (C) a nonparticipating manufacturer's total nation-wide reported sales of cigarettes on which federal excise tax is paid exceeds the sum of (i) its [nation-wide reports] total interstate sales, as reported under 15 USC 375 et seq., as from time to time amended, or those made by its importer, and (ii) [any intrastate sales reports under 15 USC 375 et seq., as from time to time amended] its total intrastate sales, by more than [five] two and one-half per cent of its total nation-wide sales [or one million cigarettes, whichever is less,] during any calendar year, unless the nonparticipating manufacturer cures or satisfactorily explains the discrepancy not later than ten days after receiving notice of the discrepancy.

Sec. 3. Subdivision (3) of subsection (b) of section 4-28o of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(3) Notwithstanding the provisions of section 12-15, the commissioner may disclose to the Attorney General any returns or return information, as defined in section 12-15, received pursuant to this chapter or chapter 214 or 214a, when such returns or return information is directly related to the state's implementation of the Master Settlement Agreement or the Nonparticipating Manufacturer Adjustment Settlement Agreement. The Attorney General may further disclose (A) such returns or return information pursuant to an agreement with an entity designated to serve as a data clearinghouse in accordance with the terms of the Nonparticipating Manufacturer Adjustment Settlement Agreement, or (B) returns or return information of [a distributor licensed] any person purchasing or selling cigarettes or tobacco products taxable under the provisions of chapter 214 or chapter 214a, to a nonparticipating manufacturer subject to the provisions of subsection (a) of section 4-28i, provided the information disclosed is limited to information relating to such manufacturer's sales to consumers within this state, whether directly or through a distributor, dealer or similar intermediary or intermediaries, of cigarettes, as defined in section 4-28h.

Sec. 4. Subsection (b) of section 2-124 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) The commission shall consist of the following members:

(1) Three appointed by the speaker of the House of Representatives, one of whom shall be an executive at a publicly traded corporation;

(2) Three appointed by the president pro tempore of the Senate, one of whom shall be an attorney;

(3) One appointed by the majority leader of the House of Representatives, who shall be a member of an employee advocacy group;

(4) One appointed by the majority leader of the Senate, who shall be an economist;

(5) One appointed by the minority leader of the House of Representatives, who shall be a representative of a major corporation that has its headquarters in the state;

(6) One appointed by the minority leader of the Senate, who shall be the owner of a small business based in the state;

(7) The Commissioner of Revenue Services, or the commissioner's designee;

(8) The Commissioner of Economic and Community Development, or the commissioner's designee;

(9) A representative of the Connecticut Business and Industry Association, who shall be appointed by the president of said association;

(10) The chairpersons and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding or the chairpersons' or ranking members' designees;

(11) The chairpersons and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to commerce or the chairpersons' or ranking members' designees;

(12) One appointed by the Governor; and

(13) The chairperson of CTNext, or the chairperson's designee.

Sec. 5. Section 12-18d of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

During the fiscal year ending June 30, 2017, an amount equal to the appropriation from the Municipal Revenue Sharing Fund to the Office of Policy and Management shall be transferred from the General Fund to the Municipal Revenue Sharing Fund and shall be distributed by said office, during [each] such fiscal year, in accordance with the provisions of sections 4-66l, 4-66p and 12-18b.

Sec. 6. Subdivision (2) of subsection (a) of section 12-35f of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(2) "Claimant state" means any other state or the District of Columbia [which] that extends a like comity for the collection of taxes [owned] owed to this state;

Sec. 7. Subdivision (1) of subsection (e) of section 12-414 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(1) The commissioner, if he or she deems it necessary in order to [insure] ensure payment to or facilitate the collection by the state of the amount of taxes, may permit or require returns and payment of the amount of taxes for other than monthly or quarterly periods.

Sec. 8. Section 12-649 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

The provisions of sections 12-548 to 12-554, inclusive, and section 12-555a shall apply to the provisions of this [section] chapter 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 chapter and had expressly referred to the tax under this chapter, except to the extent that any provision is inconsistent with a provision in this chapter.

Sec. 9. Subsection (b) of section 51-56a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(b) (1) The state shall remit to the municipalities in which the violations occurred all amounts received in respect to the violation of subdivision (2) of subsection (a) of section 14-12, sections 14-251, 14-252, 14-253a and 14-305 to 14-308, inclusive, or any regulation adopted thereunder or ordinance enacted in accordance therewith, and (2) in the case of the municipalities ranked one to eight, inclusive, when all municipalities are ranked from highest to lowest in population, based on the most recent federal decennial census, the state shall remit to the municipality in which the violations occurred [,] fifty per cent of the fine amounts received in respect to the violation of section 14-250b, or any ordinance enacted in accordance therewith. Each clerk of the Superior Court or the Chief Court Administrator, or any other official of the Superior Court designated by the Chief Court Administrator, shall, on or before the thirtieth day of January, April, July and October in each year, certify to the Comptroller the amount due for the previous quarter under this subsection to each municipality served by the office of the clerk or official, provided prior to the institution of court proceedings, a city, town or borough shall have the authority to collect and retain all proceeds from parking violations committed within the jurisdiction of such city, town or borough.

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

Section 1

October 1, 2017

4-28n(e)(1)

Sec. 2

October 1, 2017

4-28m(a)(3)

Sec. 3

October 1, 2017

4-28o(b)(3)

Sec. 4

from passage

2-124(b)

Sec. 5

October 1, 2017

12-18d

Sec. 6

October 1, 2017

12-35f(a)(2)

Sec. 7

October 1, 2017

12-414(e)(1)

Sec. 8

October 1, 2017

12-649

Sec. 9

October 1, 2017

51-56a(b)

Statement of Purpose:

To make revisions to certain tobacco enforcement statutes related to the Tobacco Master Settlement Agreement, allow the appointment of designees for certain members of the Commission on Economic Competitiveness, and make technical changes to the tax and related statutes.

[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.]