Judiciary Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-5505

Title:

AN ACT PROMOTING THE EXPEDITIOUS RESOLUTION OF COMMERCIAL CASES IN THE STATE.

Vote Date:

4/2/2018

Vote Action:

Joint Favorable

PH Date:

3/16/2018

File No.:

567

Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose.

SPONSORS OF BILL:

State Representative William Tong

REASONS FOR BILL:

Currently, over fifty percent of corporations and over sixty percent of Fortune 500 companies are incorporated in Delaware. This bill follows the work of the Commission on Connecticut's Leadership in Corporation and Business Law and their October 1, 2015 report to reform the way commercial cases are handled in the state and to make Connecticut a more attractive jurisdiction in which to incorporate.

RESPONSE FROM ADMINISTRATION/AGENCY:

Judicial Branch testified that they share the goal to establish a mechanism for the expeditious resolution of commercial claims. For the past several years the branch has been re-engineering the civil system with the goal of reducing cost and streamlining the process. However, the state's ongoing fiscal challenges has impeded their ability to move forward. They would like to request the effective date of the bill be moved back to January 1, 2019, that the fee be changed to a onetime fee instead of one assessed by the day and, should the resources exist, be provided more flexibility in how this new process will work.

NATURE AND SOURCES OF SUPPORT:

Houston Putnam Lowry testified that there are several locations which have a reputation for expeditiously handling business disputes, such as London, Delaware and New York City, and each of these locations has a specialized court for business disputes. He made some suggestions for small changes to the bill.

NATURE AND SOURCES OF OPPOSITION:

None

Reported by: Adam Skowera

Date: April 20, 2018