Capitol Update, Special Session Recap & Community Activities

Special Session

The Governor called the legislature in for a special session with the House convening on June 27. Senate Bill 501 was the only item on the agenda and its 137 pages addressed several areas of state law:

• excluding commercial vehicles from being double-taxed as tangible personal property (the primary justification for the special session)
• increasing the October 1 assessment rate formula for motor vehicles by 5%, while allowing towns to lower the motor vehicle tax below 32.46 mills
• changing “Uninsured Bank” to “Innovation Bank” so that certain corporation deposits can be insured
• eliminating state interest and penalties on businesses that received federal taxable Employee Retention Tax Credits during the COVID pandemic
• clarifying insurance company assessments by requiring the Department of Revenue Services to report the gross rather than the net tax figure to the Insurance Department
• tightening controls on school construction projects by requiring a minimum of 3 bids, prohibiting “self-performance” of subcontracting, and increasing reporting requirements
• streamlining the approval and appeals process for developers of historic properties which are under the purview of the State Historic Preservation Office
• approving a charter revision for the quasi-public South-Central Connecticut Regional Water Authority (RWA) which would allow them to bid on Aquarion Water which Eversource plans to sell

All of the above measures except the last were subject to a public hearing during the regular session. My main objection to SB 501 was that the RWA provision did not go through the normal public hearing process to flush out all potential repercussions. This would have allowed the affected towns a chance to weigh in before such a major change is put into motion. Eversource announced their intent to sell Aquarion in February, so this legislation could have been brought up during regular session with a public hearing.

Aquarion Water was acquired by Eversource for $1.7 billion dollars in 2017. It is subject to rate regulation by the Public Utilities Regulatory Authority (PURA). The company is also liable for property taxes to the towns that it serves, which include Granby and New Hartford.

Unlike other potential bidders, RWA can bond, and is not subject to property taxes or PURA regulation. These differences are potential bidding advantages for RWA, and could lead to a higher sales price for Eversource. It could result also in rate increases for customers, and lower property taxes collected by the towns.

Because a prior motion to divide the bill failed in the Senate, we could only vote up or down on the whole package. This is unfortunate, because I supported most of the other sections of the bill.

Canoe and Kayak Trip on the Farmington River

I recently took part in a canoe trip with the FRCC and DEEP on a section of the Wild and Scenic Upper Farmington River. Rivers Alliance was also represented. The FRCC was established by Congress to promote the long-term protection of the upper Farmington River. It was a welcome opportunity to enjoy one of the most beautiful locations in our state which many have worked together to preserve.

Under Public Act 24-13, introduced by Senator Lisa Seminara and myself, DEEP plays a greater role in dam releases to maintain a more regular and beneficial flow. By all indications the new protocol is working for the benefit of aquatic life, tubing, canoeing, fishing and the local economy. This paddle trip was an outstanding opportunity to interact with DEEP employees who are implementing this hard-fought-for legislation.

Legislative Update – Granby Town Hall

Thank you to all who attended our late-June legislative update in Granby. I was joined by Senators Lisa Seminara and John Kissel to give our neighbors a wrap-up of the 2024 session. We covered a range of topics including education funding, election security, the new paid sick leave mandate, special session, and active bear safety management. Most importantly, we discussed what we are doing to make life in our neck of the woods a little more affordable, to include trying to reduce taxes and fees.