JOURNAL OF THE SENATE

Tuesday, May 29, 2007

The Senate was called to order at 1: 09 p. m. , President in the Chair.

The prayer was offered by Acting Chaplain, Sheenu Srinivasan of Glastonbury, Connecticut. Founder, CT. Valley Hindu Temple Society.

The following is the prayer:

Almighty God! Lead us from the unreal to the real, Lead us from darkness to light, lead us from death to eternal life.

May the Creator protect us May we partake food together Let us work together with great energy Let us be illumined together Let us live in harmony Peace, peace, peace!

May God bless this chamber, its members and their staff as they gather here to serve the people of this great State. Amen.

PLEDGE

Senator Kissel of the 7th led the Senate in the pledge of Allegiance.

FAVORABLE REPORT OF THE JOINT STANDING COMMITTEE

SENATE RESOLUTION

The following favorable report was received from the Joint Standing Committee indicated, read the second time and tabled for the calendar and printing.

APPROPRIATIONS. S. R. No. 62 (File No. 879) RESOLUTION PROPOSING APPROVAL OF AN ARBITRATION AWARD BETWEEN THE BOARD OF TRUSTEES OF COMMUNITY-TECHNICAL COLLEGES AND THE CONGRESS OF CONNECTICUT COMMUNITY COLLEGES AND AFSCME, LOCAL 2480, COUNCIL 4.

EMERGENCY CERTIFICATION

SENATE BILL

The following Senate Bill was introduced. (Emergency Certification signed by the President Pro Tempore of the Senate and the Speaker of the House accompanied the bill in accordance with Section 2-26 of the Connecticut General Statutes and Joint Rules 9).

S. B. No. 1483 AN ACT CONCERNING REVENUES FROM THE CIGARETTE TAX.

BUSINESS FROM THE HOUSE

FAVORABLE REPORTS OF THE JOINT STANDING COMMITTEES

HOUSE BILLS

The following favorable reports of the Joint Standing Committees were received from the House, read the second time and tabled for the calendar.

APPROPRIATIONS. Substitute for H. B. No. 5639 (COMM) (File Nos. 694 and 883) AN ACT CONCERNING THE CLOSING OF A LONG-TERM CARE FACILITY. (As amended by House Amendment Schedule "A").

APPROPRIATIONS. H. B. No. 6893 (COMM) (File No. 702) AN ACT CONCERNING EXPANDED OUTREACH AND COMMUNICATION ACTIVITIES BY THE CHOICES HEALTH INSURANCE ASSISTANCE PROGRAM.

Substitute for H. B. No. 6949 (COMM) (File Nos. 703 and 885) AN ACT CONCERNING THE ADMINISTRATION OF THE SOLDIERS, SAILORS AND MARINES FUND AND SERVICE BONUSES FOR CERTAIN MEMBERS OF THE CONNECTICUT NATIONAL GUARD ON ACTIVE SERVICE WITH THE ARMED FORCES. (As amended by House Amendment Schedule "A").

APPROPRIATIONS. Substitute for H. B. No. 7338 (RAISED) (File No. 781) AN ACT CONCERNING THE IMPLEMENTATION OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP).

FINANCE, REVENUE AND BONDING. H. B. No. 7281 (RAISED) (File Nos. 676 and 889) AN ACT CONCERNING PROPERTY TAX EXEMPTIONS FOR CERTAIN MACHINERY AND EQUIPMENT. (As amended by House Amendment Schedule "A").

HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT. Substitute for H. B. No. 5751 (COMM) (File Nos. 695 and 884) AN ACT ESTABLISHING A PILOT FAMILY NURSE PRACTITIONER TRAINING PROGRAM. (As amended by House Amendment Schedule "A").

JUDICIARY. H. B. No. 7085 (File Nos. 601 and 886) AN ACT CONCERNING THE PROSECUTION, REGISTRATION AND MONITORING OF SEXUAL OFFENDERS. (As amended by House Amendment Schedule "A").

JUDICIARY. H. B. No. 7116 (RAISED) (File Nos. 101 and 887) AN ACT ALLOWING PARTICIPATION IN THE NATIONAL MORTGAGE LICENSING SYSTEM. (As amended by House Amendment Schedule "A").

JUDICIARY. Substitute for H. B. No. 7204 (RAISED) (File Nos. 65, 648 and 888) AN ACT CONCERNING THE ENFORCEABILITY OF AUTOMATIC CONTRACT RENEWAL PROVISIONS. (As amended by House Amendment Schedule "A").

PLANNING AND DEVELOPMENT. H. B. No. 5119 (COMM) (File Nos. 407 and 882) AN ACT CONCERNING THE LOCATION OF SOLID WASTE OR RESOURCES RECOVERY FACILITIES. (As amended by House Amendment Schedule "A").

BUSINESS FROM THE HOUSE

FAVORABLE REPORT OF THE JOINT STANDING COMMITTEE

DISAGREEING ACTION

The following favorable report was received from the House, read the second time and tabled for the calendar.

APPROPRIATIONS. Substitute for S. B. No. 977 (COMM) (File Nos. 760 and 881) AN ACT CONCERNING RESTRAINTS AND SECLUSION IN PUBLIC SCHOOLS. (As amended by Senate Amendment Schedule "A" and House Amendment Schedule "A").

RECESS

On motion of Senator Looney of the 11th, the Senate at 1: 18 p. m. recessed.

AFTER RECESS

The Senate reconvened at 7: 24 p. m. , the President in the Chair.

MATTERS RETURNED FROM COMMITTEE

FAVORABLE REPORTS OF THE JOINT STANDING COMMITTEE

NO NEW FILE

The following favorable reports were received from the Joint Standing Committee indicated, the bills were read the second time and tabled for the calendar.

APPROPRIATIONS. Substitute for S. B. No. 1057 (RAISED) (File No. 720) AN ACT ESTABLISHING A PROGRAM OF HOUSING FOR ECONOMIC GROWTH. (As amended by Senate Amendment Schedule "A").

APPROPRIATIONS. Substitute for S. B. No. 1418 (RAISED) (File No. 355) AN ACT CONCERNING THE FINANCING OF PROJECTS BY PRIVATE ENTITIES. (As amended by Senate Amendment Schedule "A").

ENVIRONMENT. Substitute for H. B. No. 6209 (COMM) (File Nos. 200 and 850) AN ACT CONCERNING THE RENEWABLE ENERGY INVESTMENT FUND. (As amended by House Amendment Schedule "A").

ENVIRONMENT. Substitute for H. B. No. 7138 (RAISED) (File Nos. 333 and 610) AN ACT CONCERNING MANUFACTURER PERMITS FOR BREW PUBS. (As amended by House Amendment Schedule "A").

LABOR AND PUBLIC EMPLOYEES. Substitute for S. B. No. 1431 (RAISED) (File No. 669) AN ACT ESTABLISHING A DEMONSTRATION PROJECT FOR AN OFFICE OF ADMINISTRATIVE HEARINGS.

BUSINESS ON THE CALENDAR

FAVORABLE REPORT OF THE SENATE COMMITTEE

RESOLUTION PLACED ON CONSENT CALENDAR NO. 1

On motion of Senator Looney of the 11th, the following resolution which was starred for action were placed on the Consent Calendar in accordance with Senate Rule 31.

EXECUTIVE AND LEGISLATIVE NOMINATIONS. S. R. No. 68 RESOLUTION CONFIRMING THE NOMINATION OF MARTIN B. COURNEEN OF WETHERSFIELD TO BE A MEMBER OF THE CONNECTICUT MEDICAL EXAMINING BOARD AS A PUBLIC MEMBER.

BUSINESS ON THE CALENDAR

FAVORABLE REPORT OF THE JOINT STANDING COMMITTEE

BILL PLACED ON CONSENT CALENDAR NO. 1

On motion of Senator Looney of the 11th, the following bill which was starred for action was placed on the Consent Calendar in accordance with Senate Rule 31

FINANCE, REVENUE AND BONDING. Substitute for H. B. No. 7089 (File Nos. 646 and 818) AN ACT CONCERNING SUPERVISING PHYSICIANS FOR PHYSICIAN ASSISTANTS. (As amended by House Amendment Schedule "A"). In concurrence with the House.

BUSINESS ON THE CALENDAR

MATTERS RETURNED FROM COMMITTEES

FAVORABLE REPORTS OF THE JOINT STANDING COMMITTEES

BILLS PLACED ON CONSENT CALENDAR NO. 1

On motion of Senator Looney of the 11th, the following bills which were starred for action were placed on the Consent Calendar in accordance with Senate Rule 31.

PLANNING AND DEVELOPMENT. Substitute for S. B. No. 145 (COMM) (File No. 485) AN ACT ESTABLISHING A TASK FORCE TO STUDY THE RECOMMENDATIONS OF THE OFFICE OF STATE ETHICS CONCERNING MUNICIPAL ETHICS. (As amended by Senate Amendment Schedule "A").

HUMAN SERVICES. H. B. No. 7067 (RAISED) (File Nos. 161 and 755) AN ACT CONCERNING THE APPOINTMENT AND POWERS OF CONSERVATORS AND SPECIAL LIMITED CONSERVATORS WITH RESPECT TO PSYCHIATRIC TREATMENT. (As amended by House Amendment Schedule "A"). In concurrence with the House.

BUSINESS ON THE CALENDAR

FAVORABLE REPORTS OF THE JOINT STANDING COMMITTEES

BILLS PLACED ON CONSENT CALENDAR NO. 1

The following bills were taken from the table, read the third time, the reports of the Committees accepted and the bills placed on the Consent Calendar No. 1.

JUDICIARY. Substitute for S. B. No. 1458 (RAISED) (File No. 627) AN ACT CONCERNING JESSICA'S LAW.

Senator McDonald of the 27th explained the bill, offered Senate Amendment Schedule “A” (LCO 8088) and moved adoption.

Remarking were Senators Kissel of the 7th, McKinney of the 28th and DeLuca of the 32nd.

On a voice vote the amendment was adopted.

The following is the Amendment.

Strike everything after the enacting clause and substitute the following in lieu thereof:

"Section 1. Section 53a-71 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(a) A person is guilty of sexual assault in the second degree when such person engages in sexual intercourse with another person and: (1) Such other person is thirteen years of age or older but under sixteen years of age and the actor is more than [two] three years older than such other person; or (2) such other person is mentally defective to the extent that such other person is unable to consent to such sexual intercourse; or (3) such other person is physically helpless; or (4) such other person is less than eighteen years old and the actor is such person's guardian or otherwise responsible for the general supervision of such person's welfare; or (5) such other person is in custody of law or detained in a hospital or other institution and the actor has supervisory or disciplinary authority over such other person; or (6) the actor is a psychotherapist and such other person is (A) a patient of the actor and the sexual intercourse occurs during the psychotherapy session, (B) a patient or former patient of the actor and such patient or former patient is emotionally dependent upon the actor, or (C) a patient or former patient of the actor and the sexual intercourse occurs by means of therapeutic deception; or (7) the actor accomplishes the sexual intercourse by means of false representation that the sexual intercourse is for a bona fide medical purpose by a health care professional; or (8) the actor is a school employee and such other person is a student enrolled in a school in which the actor works or a school under the jurisdiction of the local or regional board of education which employs the actor; or (9) the actor is a coach in an athletic activity or a person who provides intensive, ongoing instruction and such other person is a recipient of coaching or instruction from the actor and (A) is a secondary school student and receives such coaching or instruction in a secondary school setting, or (B) is under eighteen years of age; or (10) the actor is twenty years of age or older and stands in a position of power, authority or supervision over such other person by virtue of the actor's professional, legal, occupational or volunteer status and such other person's participation in a program or activity, and such other person is under eighteen years of age.

(b) Sexual assault in the second degree is a class C felony or, if the victim of the offense is under sixteen years of age, a class B felony, and any person found guilty under this section shall be sentenced to a term of imprisonment of which nine months of the sentence imposed may not be suspended or reduced by the court.

Sec. 2. Section 53a-73a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(a) A person is guilty of sexual assault in the fourth degree when: (1) Such person intentionally subjects another person to sexual contact who is (A) under [fifteen] thirteen years of age and the actor is more than two years older than such other person, or (B) thirteen years of age or older but under fifteen years of age and the actor is more than three years older than such other person, or [(B)] (C) mentally defective or mentally incapacitated to the extent that such other person is unable to consent to such sexual contact, or [(C)] (D) physically helpless, or [(D)] (E) less than eighteen years old and the actor is such other person's guardian or otherwise responsible for the general supervision of such other person's welfare, or [(E)] (F) in custody of law or detained in a hospital or other institution and the actor has supervisory or disciplinary authority over such other person; or (2) such person subjects another person to sexual contact without such other person's consent; or (3) such person engages in sexual contact with an animal or dead body; or (4) such person is a psychotherapist and subjects another person to sexual contact who is (A) a patient of the actor and the sexual contact occurs during the psychotherapy session, or (B) a patient or former patient of the actor and such patient or former patient is emotionally dependent upon the actor, or (C) a patient or former patient of the actor and the sexual contact occurs by means of therapeutic deception; or (5) such person subjects another person to sexual contact and accomplishes the sexual contact by means of false representation that the sexual contact is for a bona fide medical purpose by a health care professional; or (6) such person is a school employee and subjects another person to sexual contact who is a student enrolled in a school in which the actor works or a school under the jurisdiction of the local or regional board of education which employs the actor; or (7) such person is a coach in an athletic activity or a person who provides intensive, ongoing instruction and subjects another person to sexual contact who is a recipient of coaching or instruction from the actor and (A) is a secondary school student and receives such coaching or instruction in a secondary school setting, or (B) is under eighteen years of age; or (8) such person subjects another person to sexual contact and (A) the actor is twenty years of age or older and stands in a position of power, authority or supervision over such other person by virtue of the actor's professional, legal, occupational or volunteer status and such other person's participation in a program or activity, and (B) such other person is under eighteen years of age.

(b) Sexual assault in the fourth degree is a class A misdemeanor or, if the victim of the offense is under sixteen years of age, a class D felony.

Sec. 3. (NEW) (Effective July 1, 2007) (a) A person is guilty of aggravated sexual assault of a minor when such person commits a violation of subdivision (2) of subsection (a) of section 53-21 or section 53a-70, 53a-70a, 53a-71, 53a-86, 53a-87 or 53a-196a of the general statutes, as amended by this act, and the victim of such offense is under thirteen years of age, and (1) such person kidnapped or illegally restrained the victim, (2) such person stalked the victim, (3) such person used violence to commit such offense against the victim, (4) such person caused serious physical injury to or disfigurement of the victim, (5) there was more than one victim of such offense under thirteen years of age, (6) such person was not known to the victim, or (7) such person has previously been convicted of a violent sexual assault.

(b) Aggravated sexual assault of a minor is a class A felony and any person found guilty under this section shall, for a first offense, be sentenced to a term of imprisonment of twenty-five years which may not be suspended or reduced by the court and, for any subsequent offense, be sentenced to a term of imprisonment of fifty years which may not be suspended or reduced by the court.

Sec. 4. Section 53-21 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) Any person who (1) wilfully or unlawfully causes or permits any child under the age of sixteen years to be placed in such a situation that the life or limb of such child is endangered, the health of such child is likely to be injured or the morals of such child are likely to be impaired, or does any act likely to impair the health or morals of any such child, or (2) has contact with the intimate parts, as defined in section 53a-65, of a child under the age of sixteen years or subjects a child under sixteen years of age to contact with the intimate parts of such person, in a sexual and indecent manner likely to impair the health or morals of such child, or (3) permanently transfers the legal or physical custody of a child under the age of sixteen years to another person for money or other valuable consideration or acquires or receives the legal or physical custody of a child under the age of sixteen years from another person upon payment of money or other valuable consideration to such other person or a third person, except in connection with an adoption proceeding that complies with the provisions of chapter 803, shall be guilty of a class C felony for a violation of subdivision (1) or (3) of this subsection and a class B felony for a violation of subdivision (2) of this subsection, except that, if the violation is of subdivision (2) of this subsection and the victim of the offense is under thirteen years of age, such person shall be sentenced to a term of imprisonment of which five years of the sentence imposed may not be suspended or reduced by the court.

(b) The act of a parent or agent leaving an infant thirty days or younger with a designated employee pursuant to section 17a-58 shall not constitute a violation of this section.

Sec. 5. Section 53a-90a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) A person is guilty of enticing a minor when such person uses an interactive computer service to knowingly persuade, induce, entice or coerce any person under sixteen years of age to engage in prostitution or sexual activity for which the actor may be charged with a criminal offense. For purposes of this section, "interactive computer service" means any information service, system or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the Internet and such systems operated or services offered by libraries or educational institutions.

(b) [Enticing] (1) Except as provided in subdivision (2) of this subsection, enticing a minor is a class D felony for a first offense, a class C felony for a second offense and a class B felony for any subsequent offense.

(2) Enticing a minor is a class B felony if the victim of the offense is under thirteen years of age and any person found guilty of such class B felony shall, for a first offense, be sentenced to a term of imprisonment of which five years of the sentence imposed may not be suspended or reduced by the court and, for any subsequent offense, be sentenced to a term of imprisonment of which ten years of the sentence imposed may not be suspended or reduced by the court.

Sec. 6. Section 53a-196a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) A person is guilty of employing a minor in an obscene performance when [(1) he] such person (1) employs any minor, whether or not such minor receives any consideration, for the purpose of promoting any material or performance which is obscene as to minors, notwithstanding that such material or performance is intended for an adult audience, or (2) [he] permits any such minor to be employed, whether or not such minor receives any consideration, in the promotion of any material or performance which is obscene as to minors, notwithstanding that such material or performance is intended for an adult audience, and [he] such person is the parent or guardian of such minor or otherwise responsible for the general supervision of such minor's welfare.

(b) Employing a minor in an obscene performance is a class A felony and any person found guilty under this section shall be sentenced to a term of imprisonment of which ten years of the sentence imposed may not be suspended or reduced by the court.

Sec. 7. Section 53a-196c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) A person is guilty of importing child pornography when, with intent to promote child pornography, such person knowingly imports or causes to be imported into the state three or more visual depictions of child pornography of known content and character.

(b) Importing child pornography is a class B felony and any person found guilty under this section shall be sentenced to a term of imprisonment of which five years of the sentence imposed may not be suspended or reduced by the court.

Sec. 8. Section 53a-196d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) A person is guilty of possessing child pornography in the first degree when such person knowingly possesses fifty or more visual depictions of child pornography.

(b) Possessing child pornography in the first degree is a class B felony and any person found guilty under this section shall be sentenced to a term of imprisonment of which five years of the sentence imposed may not be suspended or reduced by the court.

Sec. 9. Section 53a-196e of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) A person is guilty of possessing child pornography in the second degree when such person knowingly possesses twenty or more but fewer than fifty visual depictions of child pornography.

(b) Possessing child pornography in the second degree is a class C felony and any person found guilty under this section shall be sentenced to a term of imprisonment of which two years of the sentence imposed may not be suspended or reduced by the court.

Sec. 10. Section 53a-196f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) A person is guilty of possessing child pornography in the third degree when such person knowingly possesses fewer than twenty visual depictions of child pornography.

(b) Possessing child pornography in the third degree is a class D felony and any person found guilty under this section shall be sentenced to a term of imprisonment of which one year of the sentence imposed may not be suspended or reduced by the court.

Sec. 11. (NEW) (Effective July 1, 2007) (a) Notwithstanding any other rule of evidence or provision of law, a statement by a child under thirteen years of age relating to a sexual offense committed against that child, or an offense involving physical abuse committed against that child by a person or persons who had authority or apparent authority over the child, shall be admissible in a criminal, juvenile or civil proceeding if: (1) The court finds, in a hearing conducted outside the presence of the jury, if any, that the circumstances of the statement, including its timing and content, provide particularized guarantees of its trustworthiness, (2) the statement was not made in preparation for a legal proceeding, (3) the proponent of the statement makes known to the adverse party an intention to offer the statement and the particulars of the statement including the content of the statement, the approximate time, date and location of the statement, the person to whom the statement was made and the circumstances surrounding the statement that indicate its trustworthiness, at such time as to provide the adverse party with a fair opportunity to prepare to meet it, and (4) either (A) the child testifies and is subject to cross-examination at the proceeding, or (B) the child is unavailable as a witness and (i) there is independent nontestimonial corroborative evidence of the alleged act, and (ii) the statement was made prior to the defendant's arrest or institution of juvenile proceedings in connection with the act described in the statement.

(b) Nothing in this section shall be construed to (1) prevent the admission of any statement under another hearsay exception, (2) allow broader definitions in other hearsay exceptions for statements made by children under thirteen years of age at the time of the statement concerning any alleged act described in subsection (a) of this section than is done for other declarants, or (3) allow the admission pursuant to the residual hearsay exception of a statement described in subsection (a) of this section.

Sec. 12. Section 53a-35a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

For any felony committed on or after July 1, 1981, the sentence of imprisonment shall be a definite sentence and the term shall be fixed by the court as follows: (1) For a capital felony, a term of life imprisonment without the possibility of release unless a sentence of death is imposed in accordance with section 53a-46a; (2) for the class A felony of murder, a term not less than twenty-five years nor more than life; (3) for the class A felony of aggravated sexual assault of a minor under section 3 of this act, a term not less than twenty-five years or more than fifty years; (4) for a class A felony other than [murder] an offense specified in subdivision (2) or (3) of this section, a term not less than ten years nor more than twenty-five years; [(4)] (5) for the class B felony of manslaughter in the first degree with a firearm under section 53a-55a, a term not less than five years nor more than forty years; [(5)] (6) for a class B felony other than manslaughter in the first degree with a firearm under section 53a-55a, a term not less than one year nor more than twenty years, except that for a conviction under section 53a-59(a)(1), 53a-59a, 53a-70a, 53a-94a, 53a-101(a)(1) or 53a-134(a)(2), the term shall be not less than five years nor more than twenty years; [(6)] (7) for a class C felony, a term not less than one year nor more than ten years, except that for a conviction under section 53a-56a, the term shall be not less than three years nor more than ten years; [(7)] (8) for a class D felony, a term not less than one year nor more than five years, except that for a conviction under section 53a-60b or 53a-217, the term shall be not less than two years nor more than five years, for a conviction under section 53a-60c, the term shall be not less than three years nor more than five years, and for a conviction under section 53a-216, the term shall be five years; [(8)] (9) for an unclassified felony, a term in accordance with the sentence specified in the section of the general statutes that defines the crime.

Sec. 13. Subsection (b) of section 53a-55a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(b) Manslaughter in the first degree with a firearm is a class B felony and any person found guilty under this section shall be sentenced to a term of imprisonment in accordance with subdivision [(4)] (5) of section 53a-35a, as amended by this act, of which five years of the sentence imposed may not be suspended or reduced by the court.

Sec. 14. Subsection (b) of section 54-125e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007):

(b) When sentencing a person to a period of special parole, the court may, as a condition of the sentence, order such person to comply with any or all of the requirements of subsection (a) of section 53a-30. The court shall cause a copy of any such order to be delivered to such person and to the Department of Correction. The Board of Pardons and Paroles may require that such person comply with any or all of the requirements of subsection (a) of section 53a-30 which the court could have imposed and which are not inconsistent with any condition actually imposed by the court. Any person sentenced to a period of special parole shall also be subject to such rules and conditions as may be established by the Board of Pardons and Paroles or its chairperson pursuant to section 54-126. "

On motion of Senator McDonald of the 27th, the bill as amended by Senate Amendment Schedule “A” (LCO 8088) was placed on the Consent Calendar No. 1.

BUSINESS ON THE CALENDAR

MATTER RETURNED FROM COMMITTEE

FAVORABLE REPORT OF THE JOINT STANDING COMMITTEE

BILL PASSED

The following bill was taken from the table, read the third time, the report of the Committee accepted and the bill passed.

APPROPRIATIONS. Substitute for S. B. No. 601 (COMM) (File Nos. 220 and 806) AN ACT MANDATING EMPLOYERS TO PROVIDE PAID SICK LEAVE TO EMPLOYEES.

Senator Prague of the 19th explained the bill, offered Senate Amendment Schedule “A” (LCO 7905) and moved adoption.

On a voice vote the amendment was adopted.

The following is the Amendment.

In line 10, strike "twenty-five" and substitute "fifty" in lieu thereof

In line 29, strike "ninetieth" and insert "one hundred twentieth" in lieu thereof

In line 33, strike "a maximum" and insert "the greater"

In line 34, after "year" insert "or the number of hours of paid sick leave per year provided by such employee's employer in accordance with subsection (d) of this section"

In line 87, after "against" insert "and reasonable attorney's fees and costs"

In line 90, after the period add the following:

"Any employee who prevails in such appeal shall be awarded reasonable attorney's fees and costs by the court. "

Senator Debicella of the 21st offered Senate Amendment Schedule “B” (LCO 7383), moved adoption and request the vote be taken by roll call.

Remarking were Senators Fasano of the 34th, Roraback of the 30th, LeBeau of the 3rd, Prague of the 19th, Cappiello of the 24th, DeLuca of the 32nd, Harp of the 10th, Stillman of the 20th and Looney of the 11th.

The chair ordered the vote be taken by roll call.

On the roll call vote Senate Amendment Schedule “B” (LCO 7383) was rejected.

The following is the Amendment.

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. (NEW) (Effective July 1, 2007) (a) On or before December 31, 2013, the Office of the Business Advocate shall conduct a comprehensive cost-benefit analysis of each state regulation. In the course of conducting said analysis, on or before March 30, 2008, the office shall compile a comprehensive list of all state regulations. Said list shall include a methodology for calculating the societal costs and benefits of such regulations and a schedule of conducting such calculation and analysis. In creating the schedule, the office may consider the potential business expense as a basis of prioritization. The office shall submit the prioritized list of regulations and review schedule to the joint standing committees of the General Assembly having cognizance of matters relating to commerce and regulation review on or before March 30, 2008. The office shall also submit such analysis as completed according to the schedule to said joint standing committees on or before December thirty-first of each year.

(b) Notwithstanding section 4-171 of the general statutes, if the Office of the Business Advocate finds in its analysis conducted pursuant to subsection (a) of this section that the societal costs outweigh the societal benefits for any given regulation, the office shall report such finding pursuant to subsection (a) and place such regulation on a regulation revocation list. The office shall submit said regulation revocation list to the General Assembly.

(c) The General Assembly may reapprove any regulations on said regulation revocation list by a majority vote of both houses not later than six months after the release of said list each year. If the General Assembly does not reapprove a regulation within such time frame, the regulation shall be deemed revoked effective July first of that year.

Sec. 502. (Effective July 1, 2007) The sum of five hundred thousand dollars is appropriated to the Office of the Business Advocate, from the General Fund, for the fiscal year ending June 30, 2008, and the fiscal year ending June 30, 2009, for the purposes of hiring additional personnel to complete the analysis pursuant to section 501 of this act. "

Remarking were Senators Roraback of the 30th and Gomes of the 23rd.

Senator Roraback of the 30th raised the Point of Order.

Remarking was Senator Looney of the 11th.

Senator Roraback of the 30th withdrew his Point of Order.

Remarking was Senator Gomes of the 23rd.

Remarking were Senators Debicella of the 21st, Cappiello of the 24th, Colapietro of the 31st and McKinney of the 28th.

Senator McKinney of the 28th offered Senate Amendment Schedule “C” (LCO 7922), moved adoption and requested that the vote be taken by roll call.

Remarking were Senators Prague of the 19th, Gomes of the 23rd, LeBeau of the 3rd and Freedman of the 26th.

The chair ordered the vote be taken by roll call.

On the roll call vote Senate Amendment Schedule “C” (LCO 7922) was rejected.

The following is the Amendment.

In line 3, after "engaged" insert "on a full-time basis"

Remarking were Senators McDonald of the 27th, Fasano of the 34th, Harp of the 10th, McKinney of the 28th, Gomes of the 23rd and Looney of the 11th.

The chair ordered the vote be taken by roll call.

On the roll call vote Senate Bill No. 601 as amended by Senate Amendment Schedule “A” (LCO 7905) was passed.

BUSINESS ON THE CALENDAR

FAVORABLE REPORTS OF THE JOINT STANDING COMMITTEES

SENATE AMENDMENT ADOPTED

BILL AS AMENDED REFERRED TO THE FOOT

The following bill taken from the table, read the third time, the report of the Committee accepted and the bill as amended was referred to the Foot of the Calendar.

APPROPRIATIONS. Substitute for S. B. No. 1448 (RAISED) (File No. 566) AN ACT EXTENDING THE STATE PHYSICIAN PROFILE AND RELATED MALPRACTICE REPORTING REQUIREMENTS TO CERTAIN OTHER HEALTH CARE PROVIDERS.

Senator McDonald of the 27th explained the bill, offered Senate Amendment Schedule “A” (LCO 7830) and moved adoption.

On a voice vote the amendment was adopted.

The following is the Amendment.

In line 38, strike the brackets and strike "With respect to a physician, any"

In line 39, insert an opening bracket before "physician"

In line 40, insert a closing bracket after "Specialties" and insert "health care provider by any applicable specialty board recognized by the department" after the closing bracket and before the semicolon

In line 41, strike the brackets and strike "With respect to a physician, the"

In line 42, bracket "physician" and insert "health care provider" after the closing bracket

In line 43, strike the brackets and strike "With respect to a physician, any"

In line 44, bracket "physician", insert "health care provider" after the closing bracket, insert "or dental" after "medical" and insert "or the faculty of any other school or institution giving instruction in the healing arts" after "faculty"

In line 45, bracket "physician" and insert "health care provider" after the closing bracket

On the motion of Senator Looney of the 11th the bill as amended by Senate Amendment Schedule “A” (LCO 7830) was referred to the Foot of the Calendar.

BUSINESS ON THE CALENDAR

MATTER REFERRED TO COMMITTEE ON

JUDICIARY

On motion of Senator Looney of the 11th, the following matter was referred to the Committee on Judiciary.

PLANNING AND DEVELOPMENT. Substitute for S. B. No. 1312 (RAISED) (File No. 494) AN ACT CONCERNING ELECTION DAY REGISTRATION, CHANGES TO THE CONDUCT OF ELECTIONS, AND CERTAIN COMPENSATION OF REGISTRARS OF VOTERS.

MOTION TO RECONSIDER

MOTION ADOPTED

BILL PASSED RETAINED

Senator Looney of the 11th who was on the prevailing side moved for reconsideration of Senate Bill 1312 which was referred to the Committee on Judiciary.

On a voice vote the motion was adopted.

PLANNING AND DEVELOPMENT. Substitute for S. B. No. 1312 (RAISED) (File No. 494) AN ACT CONCERNING ELECTION DAY REGISTRATION, CHANGES TO THE CONDUCT OF ELECTIONS, AND CERTAIN COMPENSATION OF REGISTRARS OF VOTERS.

On a motion of Senator Looney of the 11th the bill was Passed Retained on the Calendar.

CONSENT CALENDAR NO. 1

ADOPTED

The chair ordered the vote on business placed on the Consent Calendar be taken by roll call.

On the roll call vote the Consent Calendar No. 1 was adopted.

RECESS

On motion of Senator Looney of the 11th, the Senate at 10: 06 p. m. recessed.

AFTER RECESS

The Senate reconvened at 11: 01 p. m. , the President in the Chair.

BUSINESS FROM THE HOUSE

FAVORABLE REPORT OF THE JOINT STANDING COMMITTEE

DISAGREEING ACTION

SENATE AMENDMENT ADOPTED

BILL REFERRED TO THE COMMITTEE ON APPROPRIATIONS

The following favorable report was received from the House, read the second time and tabled for the calendar.

FINANCE, REVENUE AND BONDING. Substitute for S. B. No. 1059 (RAISED) (File Nos. 121 and 872) AN ACT CONCERNING THE NEW MOTOR VEHICLE LEMON LAW. (As amended by Senate Amendment Schedule "A" and House Amendment Schedule "A").

Senator DeFronzo of the 6th explained the bill as amended offered Senate Amendment Schedule “B” (LCO 8154) and moved adoption.

Senator Debicella of the 21st raised the Point of Order.

Remarking was Senator Looney of the 11th.

Senator Debicella of the 21st withdrew his Point of Order.

Senator Debicella of the 21st raised a point of Parliamentary procedure on number of members needed to suspend the rules to send to the House.

The Chair ruled it is a two thirds vote.

Senator Roraback of the 30th moved to divide the question to vote on Sections 1-4 and 6 and then vote on Section 5.

Senator Looney of the 11th opposed.

The chair ordered the vote be taken by roll call.

On the motion to divide the question the vote failed.

Remarking was Senators Freedman of the 26th, Cappiello of the 24th, Guglielmo of the 35th and Fasano of the 34th.

The chair ordered the vote be taken by roll call.

On the roll call vote Senate Amendment Schedule “B” (LCO 8154) was adopted.

The following is the Amendment.

Strike everything after the enacting clause and substitute the following in lieu thereof:

"Section. 1. Subsection (a) of section 12-458 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) (1) Each distributor shall, on or before the twenty-fifth day of each month, render a return to the commissioner. Each return shall be signed by the person required to file the return or by his authorized agent but need not be verified by oath. Any return required to be filed by a corporation shall be signed by an officer of such corporation or his authorized agent. Such return shall state the number of gallons of fuel sold or used by him during the preceding calendar month, on forms to be furnished by the commissioner, and shall contain such further information as the commissioner shall prescribe. The commissioner may make public the number of gallons of fuel sold or used by the distributor, as contained in such report, notwithstanding the provisions of section 12-15 or any other section. For purposes of this section, fuel sold shall include but not be limited to the transfer of fuel by a distributor into a receptacle from which fuel is supplied or intended to be supplied to other than such distributor's motor vehicles.

(2) On said date and coincident with the filing of such return each distributor shall pay to the commissioner for the account of the purchaser or consumer a tax (A) on each gallon of such fuels sold or used in this state during the preceding calendar month of twenty-six cents on and after January 1, 1992, twenty-eight cents on and after January 1, 1993, twenty-nine cents on and after July 1, 1993, thirty cents on and after January 1, 1994, thirty-one cents on and after July 1, 1994, thirty-two cents on and after January 1, 1995, thirty-three cents on and after July 1, 1995, thirty-four cents on and after October 1, 1995, thirty-five cents on and after January 1, 1996, thirty-six cents on and after April 1, 1996, thirty-seven cents on and after July 1, 1996, thirty-eight cents on and after October 1, 1996, thirty-nine cents on and after January 1, 1997, thirty-six cents on and after July 1, 1997, thirty-two cents on and after July 1, 1998, and twenty-five cents on and after July 1, 2000; and (B) in lieu of said taxes, each distributor shall pay a tax on each gallon of gasohol, as defined in section 14-1, sold or used in this state during such preceding calendar month, of twenty-five cents on and after January 1, 1992, twenty-seven cents on and after January 1, 1993, twenty-eight cents on and after July 1, 1993, twenty-nine cents on and after January 1, 1994, thirty cents on and after July 1, 1994, thirty-one cents on and after January 1, 1995, thirty-two cents on and after July 1, 1995, thirty-three cents on and after October 1, 1995, thirty-four cents on and after January 1, 1996, thirty-five cents on and after April 1, 1996, thirty-six cents on and after July 1, 1996, thirty-seven cents on and after October 1, 1996, thirty-eight cents on and after January 1, 1997, thirty-five cents on and after July 1, 1997, thirty-one cents on and after July 1, 1998, and twenty-four cents on and after July 1, 2000, and twenty-five cents on and after July 1, 2004; and (C) in lieu of such rate, on each gallon of diesel fuel, propane or natural gas sold or used in this state during such preceding calendar month, of eighteen cents on and after September 1, 1991, and twenty-six cents on and after August 1, 2002.

(3) Said tax shall not be payable on such fuel as may have been (A) sold to the United States, (B) sold to a municipality of this state, (i) for use by any contractor performing a service for such municipality in accordance with a contract, provided such fuel is used by such contractor exclusively for the purposes of and in accordance with such contract, or (ii) for use exclusively in a school bus, as defined in section 14-275, (C) sold to a municipality of this state, a transit district of this state, or this state, at other than a retail outlet, for governmental purposes and for use in vehicles owned and operated, or leased and operated by such municipality, such transit district or this state, (D) sold to a person licensed as a distributor in this state under section 12-456, (E) transferred from storage within this state to some point without this state, (F) sold to the holder of a permit issued under section 12-458a for sale or use without this state, (G) sold to the holder of a permit issued under subdivision (63) of section 12-412, provided (i) such fuel is not used in motor vehicles registered or required to be registered to operate upon the public highways of this state, unless such fuel is used in motor vehicles registered exclusively for farming purposes, (ii) such fuel is not delivered, upon such sale, to a tank in which such person keeps fuel for personal and farm use, and (iii) a statement, prescribed as to form by the Commissioner of Revenue Services and bearing notice to the effect that false statements made under this section are punishable, that such fuel is used exclusively for farming purposes, is submitted by such person to the distributor, (H) sold exclusively to furnish power for an industrial plant in the actual fabrication of finished products to be sold, or for the fishing industry, (I) sold exclusively for heating purposes, (J) sold exclusively to furnish gas, water, steam or electricity, if delivered to consumers through mains, lines or pipes, (K) sold to the owner or operator of an aircraft, as defined in section 15-34, exclusively for aviation purposes, provided (i) for purposes of this subdivision, "aviation purposes" means for the purpose of powering an aircraft or an aircraft engine, (ii) such fuel is delivered, upon such sale, to a tank in which fuel is kept exclusively for aviation purposes, and (iii) a statement, prescribed as to form by the Commissioner of Revenue Services and bearing notice to the effect that false statements made under this section are punishable, that such fuel is used exclusively for aviation purposes, is submitted by such person to the distributor, (L) sold to a dealer who is licensed under section 12-462 and whose place of business is located upon an established airport within this state, [or] (M) diesel fuel sold exclusively for use in portable power system generators that are larger than one hundred fifty kilowatts, or (N) sold during the period beginning on the effective date of this section, and ending Tuesday, September 4, 2007, at 12: 01 a. m.

(4) Each distributor, when making a taxable sale, shall furnish to the purchaser an invoice showing the quantities of fuel sold, the classification thereof under the provisions of this chapter and the amount of tax to be paid by the distributor for the account of the purchaser or consumer.

(5) If any distributor fails to pay the amount of tax reported to be due on its report within the time specified under the provisions of this section, there shall be imposed a penalty equal to ten per cent of such amount due and unpaid, or fifty dollars, whichever is greater. The tax shall bear interest at the rate of one per cent per month or fraction thereof from the due date of the tax until the date of payment.

(6) If no return has been filed within three months after the time specified under the provisions of this chapter, the commissioner may make such return at any time thereafter, according to the best information obtainable and the form prescribed. There shall be added to the tax imposed upon the basis of such return an amount equal to ten per cent of such tax, or fifty dollars, whichever is greater. The tax shall bear interest at the rate of one per cent per month or fraction thereof from the due date of such tax to the date of payment.

(7) Subject to the provisions of section 12-3a, the commissioner may waive all or part of the penalties provided under this chapter when it is proven to his satisfaction that the failure to pay any tax was due to reasonable cause and was not intentional or due to neglect.

(8) A distributor who is exclusively making sales of fuel on which the tax imposed by this chapter is not payable may be permitted, as specified in regulations adopted in accordance with the provisions of chapter 54, to file reports less frequently than monthly but not less frequently than annually if the commissioner determines that enforcement of this section would not be adversely affected by less frequent filings. Distributors permitted to file such reports shall maintain records that shall detail (A) the persons from whom the fuel was purchased, (B) the persons to whom, the quantities in which and the dates on which such fuel was sold, and (C) any other information deemed necessary by the commissioner.

Sec. 2. (NEW) (Effective from passage) During the period specified in subparagraph (N) of subdivision (3) of subsection (a) of section 12-458 of the general statutes, as amended by this act, upon the reduction in the tax required by subsection (a) of section 12-458 of the general statutes, as amended by this act, each distributor, as defined in section 12-455a of the general statutes, shall reduce the per-gallon price of gasoline or other product intended for use in the propelling of motor vehicles using combustion type engines sold in this state by such distributor to any retail dealer, as defined in section 14-318 of the general statutes, in an amount equal to the amount of the reduction in such tax that is imposed on each gallon of such gasoline or other product.

Sec. 3. Section 14-332 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The commissioner may adopt regulations, in accordance with chapter 54, governing the administration of all statutes relating to gasoline or any other product intended as a fuel for motor vehicles or internal combustion engines or relating to the sale of such gasoline or such other product, except as provided in subsection (b) of this section.

(b) The commissioner, in consultation with the Secretary of the Office of Policy and Management, shall adopt emergency regulations, in accordance with chapter 54, to establish a program to monitor and enforce compliance with the requirements of subsection (c) of section 14-332a, as amended by this act.

Sec. 4. Section 14-332a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) As used in subsection (b) of this section: (1) "Surcharge" means any charge by a retail dealer to any person for the pumping or sale of gasoline or other product intended for use in the propelling of motor vehicles using combustion type engines which exceeds the amount of the posted retail price displayed on such price signs as may be required by law; and (2) "tie-in-sale" means any sale by a retail dealer of any petroleum product, except gasoline, or of any other product or merchandise or of any service which is made a condition for the purchase of gasoline.

(b) Any retail dealer that adds a surcharge to the price of gasoline or other product intended for use in the propelling of motor vehicles using combustion type engines sold by him at retail, or requires a tie-in-sale as a condition of such sale, shall be subject to the penalties provided in section 14-331. Nothing in this subsection shall be construed to prohibit any charge for financing in accordance with sections 36a-675 to 36a-685, inclusive.

(c) (1) During the period [commencing on July 1, 1998, and ending on October 1, 1998] specified in subparagraph (N) of subdivision (3) of subsection (a) of section 12-458, as amended by this act, upon the reduction in the tax required by said section, [12-458, that is effective July 1, 1998, and during the period commencing on July 1, 2000, and ending November 1, 2000, upon the reduction in the tax required by said section 12-458, that is effective July 1, 2000,] each retail dealer shall, in accordance with subdivision (2) of this subsection, reduce the per-gallon price of gasoline or other product intended for use in the propelling of motor vehicles using combustion type engines sold by such retail dealer at retail in an amount equal to the amount of the reduction in such tax that is imposed on each gallon of such gasoline or other product. [Such retail dealer shall maintain any such price reduction in effect for a period of not less than one hundred twenty days after such tax reduction. ]

(2) The price reduction required by subdivision (1) of this subsection shall take effect not later than (A) two days following the effective date of the applicable tax reduction, or (B) the close of business on the business day on which the retail dealer has completed the sale of an amount of such gasoline or other product equal to the total number of gallons of such gasoline or other product in the inventory of the retail dealer at midnight on the effective date of such tax reduction, whichever is later.

(3) Any retail dealer that violates this subsection shall be subject to the penalties set forth in section 14-331. A violation of this subsection shall be deemed an unfair or deceptive trade practice under subsection (a) of section 42-110b.

(4) The following shall be affirmative defenses to any action or administrative proceeding brought against a retail dealer under section 14-331 or chapter 735a for an alleged violation of this subsection: (A) An increase in the wholesale price of such gasoline or other product that occurs after any such tax reduction; (B) an increase in any other tax imposed on such gasoline or other product that occurs after any such tax reduction; or (C) any other bona fide business cost increase incurred by a retail dealer and upon which the retail dealer relied in making the decision to forego the implementation or continuation of any such price reduction in whole or in part.

Sec. 5. (NEW) (Effective from passage) (a) This section shall be known as and may be cited as the "Petroleum Transparency and Reporting Oversight Law".

(b) As used in this section:

(1) "Classes of retail trade" means the separate subdivisions of outlets or methods of retail sales of liquid fuels, typically but not always limited to gasoline and diesel for motor vehicles, and includes any:

(A) Company-operated station operated pursuant to chapter 250a of the general statutes that is a retail service station owned and operated by a distributor and where retail prices are set by such distributor;

(B) Lessee dealer-operated station that is a retail service station owned by a distributor and operated by a qualified gasoline dealer other than a distributor under a franchise; or

(C) Owner-operated station that is a retail service station not owned by a distributor and operated by a qualified gasoline dealer;

(2) "Office of the Attorney General" means the office of the Attorney General of the state of Connecticut;

(3) "Distributor" has the same meaning as provided in section 14-327a of the general statutes;

(4) "Energy" means work or heat that is, or may be, produced from any fuel or source whatsoever;

(5) "Fuel" means "fuels", as defined in section 14-1 of the general statutes, diesel fuel and number two heating oil, but does not include aviation fuel;

(6) "Major marketer" means any person who sells fuel in amounts determined by the office of the Attorney General as having an effect on energy supplies;

(7) "Major oil producer" means any person who produces oil in amounts determined by the office of the Attorney General as having an effect on energy supplies;

(8) "Major oil storer" means any person who stores oil or other petroleum products in amounts determined by the office of the Attorney General as having an effect on energy supplies;

(9) "Major oil transporter" means any person who transports oil or other petroleum products in amounts determined by the office of the Attorney General as having an effect on energy supplies; and

(10) "Person" has the same meaning as provided in section 14-1 of the general statutes.

(c) Notwithstanding the provisions of section 14-327b of the general statutes, any person holding himself or herself out as a distributor shall register as such with the office of the Attorney General, on forms to be prescribed, prepared and furnished by said office.

(d) (1) On and after January 1, 2008, and each week thereafter, every distributor, shall file with the office of the Attorney General, on forms prescribed, prepared and furnished by said office, a certified statement showing separately for each transaction in the state in which fuel was sold or used during the time period commencing on the effective date of this section and for each weekly period after January 1, 2008, the following:

(A) The total number of gallons or units of fuel, by type or grade, compounded by the distributor within the state and the number of gallons or units of fuel, by type or grade, sold, exchanged or otherwise transferred or used by the distributor in each transaction;

(B) The total number of gallons or units of fuel, by type or grade, imported or exported by the distributor; the total volumes of fuel, by type or grade, sold, exchanged or otherwise transferred or used by the distributor; the number of gallons or units of fuel, by type or grade, sold, exchanged or otherwise transferred or used by the distributor in each transaction;

(C) The total number of gallons or units of fuel sold as fuel;

(D) The total number of gallons or units of fuel, by type or grade, and their respective sales prices for all fuel sold to federal, state and municipal agencies, ships stores or base exchanges, commercial agricultural accounts, commercial nonagricultural accounts, retail dealers and other customers;

(E) Weekly weighted average acquisition cost per barrel and volumes of foreign or domestic crude oil or other liquid fuels, finished or unfinished, imported to this state, including information identifying the source of the crude oil or other fuels;

(F) The effective date and time, and the amount of change in cents per gallon, of any increase or decrease in wholesale price occurring during the week and the weekly weighted average wholesale prices and sales volumes of finished unleaded regular and premium motor gasoline, and of each other grade of gasoline sold, by transaction, to retail outlets, by classes of retail trade, and to wholesale distributors;

(G) Weekly weighted average retail prices, and sales volumes of finished unleaded regular and premium motor gasoline, and of each other grade of gasoline sold, by transaction, by retail distributor outlets of all classes of retail trade and by any distributor to other end-users; provided the office of the Attorney General may purchase retail price data from data service companies that said office may use to substitute some or all data to meet the reporting requirement for retail price data under this subdivision;

(H) The effective date and time, and the amount of change in cents per gallon, of any increase or decrease in wholesale price occurring during the week and the weekly weighted average wholesale prices, and sales volumes of diesel fuel and number two heating oil, by transaction, to retail distributor outlets, by classes of retail trade, and to all other wholesale distributors. Weighted average wholesale prices and sales volumes shall be reported by type of wholesale fuel price;

(I) Weekly weighted average retail prices, and sales volumes of diesel fuel and number two heating oil sold, by transaction, by retail distributor outlets of all classes of retail trade and by any distributor to other end-users. The office of the Attorney General may purchase retail price data from data service companies that said office may use to substitute some or all data to meet the reporting requirement for retail price data under this subdivision;

(J) For each distributor, the gross margins or spreads between the distributor's average weighted price for each gallon or unit of fuel acquired by the distributor and the average weighted prices for each gallon or unit of fuel sold, by transaction, to another distributor, a retail dealer, end-user or consumer.

(2) The office of the Attorney General shall prescribe applicable standards and practices for reporting to facilitate uniformity, consistency and comparability of the data to be submitted pursuant to this subsection.

(3) On and after the effective date of this section, distributors shall maintain all data required to be reported to the office of the Attorney General pursuant to this subsection and shall report such data to said office on the date and in the manner required by subdivision (1) of this subsection.

(e) Each major marketer shall submit to the office of the Attorney General, at a time and in a form as said office shall prescribe, information, including petroleum and petroleum product receipts, exchanges, inventories and distributions.

(f) The office of the Attorney General may request additional information as and when said office deems necessary to perform said office's responsibilities under this section.

(g) Information in the statements filed pursuant to subsections (d), (e), (f) and (h) of this section shall be collected and maintained for the purpose of facilitating the analysis required by subsection (i) of this section, provided the office of the Attorney General shall make available to the public the information contained in the statements but not the statements themselves, as provided in subsections (k) and (m) of this section.

(h) Each major oil producer, marketer, oil transporter and oil storer shall submit to the office of the Attorney General, in a form and at intervals as said office shall prescribe, information that includes the following:

(1) Major oil transporters shall report the capacities of each major petroleum transportation system, the amount transported by each system and inventories thereof;

(2) Major oil storers shall report on their storage capacity, inventories, receipts and distributions, and methods of transportation of receipts and distributions; and

(3) Major oil marketers shall report on facility capacity and methods of transportation of receipts and distributions.

(i) (1) The office of the Attorney General, with said office's own staff and other support staff with expertise and experience in, or with, the petroleum industry, shall gather, analyze and interpret the information submitted to it pursuant to subsections (d), (e), (f) and (h) of this section and other information relating to the supply, prices, margins and profits of petroleum products, with particular emphasis on motor vehicle fuels, including, but not limited to, the following:

(A) The nature, cause and extent of any petroleum or petroleum product situation or condition affecting supply, price, margins or profits;

(B) The prices, with particular emphasis on wholesale and retail motor vehicle fuel prices, and any significant changes in prices charged by the petroleum industry for petroleum or petroleum products sold in the state and the reasons for the changes;

(C) The income, expenses, margins and profits in the state, both before and after taxes, of each distributor and the income, expenses, margins and profits, both before and after taxes, of major oil companies in other regions of the United States and other countries; and

(D) The emerging trends relating to supply, demand, price, margins and profits.

(2) The office of the Attorney General shall analyze the effects of state and federal policies, rules and regulations upon the supply and pricing of petroleum products.

(3) The office of the Attorney General shall annually submit to the Governor and the General Assembly, in accordance with section 11-4a of the general statutes, twenty days prior to the first day of each regular legislative session a summary, including any analysis and interpretation of the information submitted to it pursuant to this section and any other activities taken by said office, including civil penalties imposed and violation notices issued by the Attorney General under subsection (n) of this section.

(j) The office of the Attorney General shall establish a petroleum transparency and reporting oversight program that includes development and maintenance of an automated petroleum industry information reporting system that meets the requirements of government, industry and the public while promoting sound policy-making and consumer information and protection. Such program shall conduct and facilitate the efficient analysis and reporting of all information and data provided by the petroleum industry pursuant to this section. The office of the Attorney General shall develop such program in a manner that will result in greater market transparency and provide useful information to the general public and those agencies that are authorized to conduct oversight of the petroleum industry and ensure compliance with all relevant laws.

(k) (1) Confidential commercial information provided to the office of the Attorney General pursuant to this section shall be held in confidence by said office or aggregated to the extent necessary to ensure the confidentiality of such information.

(2) No data or information submitted to the office of the Attorney General shall be deemed confidential if the person submitting the information or data has made it public.

(3) Unless otherwise provided by law, with respect to data that the office of the Attorney General obtains or is provided pursuant to subsections (d), (e) or (f) of this section, neither the office of the Attorney General or any employee of said office may do any of the following:

(A) Make any publication whereby the data furnished by any person can be identified; or

(B) Permit any person other than the office of the Attorney General, the Department of Revenue Services, the Commissioner of Consumer Protection or the Chief State's Attorney and the authorized representatives and employees of each to examine the individual reports or statements provided.

(l) Any confidential information pertinent to the responsibilities of the office of the Attorney General specified in this section that is obtained by another agency or department of this state shall be treated in a confidential manner;

(m) (1) Notwithstanding the provisions of any general statutes, including any other provision of this section, not later than fourteen days after the reporting date established by the office of the Attorney General under subsection (e) of this section, said office shall disclose to the public, using the best readily available technology, the information contained in the statements, but not the statements themselves, that are filed pursuant to said section;

(2) Nothing in this section shall be construed to prohibit the implementation of the petroleum transparency and reporting oversight program under subsection (j) of this section or the public disclosure of the analysis of information and reports pursuant to this section.

(n) (1) The office of the Attorney General shall notify those persons who have failed to timely provide the information specified in subsections (d) and (h) of this section or requested by the office of the Attorney General under said subsections. If, within five business days after being notified of the failure to provide the specified or requested information, the person fails to supply the specified or requested information, the person shall be subject to a civil penalty of not less than fifty thousand dollars per day or more than one hundred thousand dollars per day for each day the submission of information is refused or delayed;

(2) Any person or any employee of any person, who wilfully makes any false statement, representation or certification in any record, report, plan or other document filed with the office of the Attorney General pursuant to this section shall be subject to a civil penalty not to exceed five hundred thousand dollars and shall be deemed to have committed an unfair or deceptive act or practice in the conduct of a trade or commerce in violation of section 42-110b of the general statutes.

(o) The provisions of subsections (a) to (n), inclusive, of this section shall not be applied in a manner that would render its application preempted by the "Petroleum Marketing Practices Act", 15 USC 2801, et seq. , as amended from time to time, or other applicable federal law. "

(p) Any employee or agent of the office of the Attorney General or of another agency or department of the state who discloses confidential information in violation of subsection (k), (l) or (m) of this section shall be fined not more than five thousand dollars or imprisoned not more than five years, or both.

Sec. 6. (Effective from passage) The Comptroller may transfer up to one hundred twenty-four million seven hundred thousand dollars from the resources of the General Fund to the Special Transportation Fund for the fiscal year ending June 30, 2007, of which an amount equal to the number of days in June that the tax imposed by section 12-458 of the general statutes is suspended pursuant to section 1 of this act, multiplied by one million three hundred seventy thousand dollars shall be transferred into the Special Transportation Fund for the fiscal year ending June 30, 2007, and eighty-three million seven hundred thousand dollars shall be deemed transferred into the Special Transportation Fund for the fiscal year ending June 30, 2008. "

Remarking was Senator McKinney of the 28th.

Senator Looney of the 11th moved for the bill as amended to be referred to the Committee on Appropriations.

Senator McKinney of the 28th objected the motion to refer.

Remarking were Senators Looney of the 11th who requested the vote be taken by roll call, Debicella of the 21st and DeLuca of the 32nd.

The chair ordered the vote be taken by roll call.

On the roll call vote the motion to refer the bill as amended by Senate Amendment Schedules “A” (LCO 6522) and “B” (LCO 8154) and House Amendment “A” (LCO 7071) was passed.

SENATE AGENDA NO. 1

EMERGENCY CERTIFICATION

SENATE BILL

SENATE BILL PASSED

The following Senate Bill was passed. (Emergency Certification signed by the President Pro Tempore of the Senate and the Speaker of the House accompanied the bill in accordance with Section 2-26 of the Connecticut General Statutes and Joint Rules 9).

. S. B. No. 1483 AN ACT CONCERNING REVENUES FROM THE CIGARETTE TAX.

Senator Daily of the 33rd explained the bill, offered Senate Amendment Schedule “A” (LCO 8177) and moved adoption.

Remarking were Senators Nickerson of the 36th, Cappiello of the 24th, Freedman of the 26th, Debicella of the 21st, Meyer of the 12th, Caligiuri of the 16th, McKinney of the 28th, Gaffey of the 13th, Looney of the 11th, DeLuca of the 32nd and Williams of the 29th.

The chair ordered the vote be taken by roll call.

On the roll call vote Senate Amendment Schedule “A” (LCO 8177) was adopted.

The following is the Amendment.

Strike everything after the enacting clause and substitute the following in lieu thereof:

"Section 1. Section 12-211a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to income years commencing on or after January 1, 2007):

Notwithstanding any provision of the general statutes, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for any income year shall not exceed [seventy] sixty per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits.

Sec. 2. Section 12-217zz of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to income years commencing on or after January 1, 2007):

Notwithstanding any other provision of law, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for any income year shall not exceed [seventy] sixty per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits.

Sec. 3. Section 12-296 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to sales occurring on or after July 1, 2007):

A tax is imposed on all cigarettes held in this state by any person for sale, said tax to be at the rate of [seventy-five and one-half] one hundred mills for each cigarette and the payment thereof shall be for the account of the purchaser or consumer of such cigarettes and shall be evidenced by the affixing of stamps to the packages containing the cigarettes as provided in this chapter.

Sec. 4. Section 12-316 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to the storage or use of unstamped cigarettes occurring on or after July 1, 2007):

A tax is hereby imposed at the rate of [seventy-five and one-half] one hundred mills for each cigarette upon the storage or use within this state of any unstamped cigarettes in the possession of any person other than a licensed distributor or dealer, or a carrier for transit from without this state to a licensed distributor or dealer within this state. Any person, including distributors, dealers, carriers, warehousemen and consumers, last having possession of unstamped cigarettes in this state shall be liable for the tax on such cigarettes if such cigarettes are unaccounted for in transit, storage or otherwise, and in such event a presumption shall exist for the purpose of taxation that such cigarettes were used and consumed in Connecticut.

Sec. 5. (NEW) (Effective July 1, 2007) (a) An excise tax is hereby imposed upon each distributor and each dealer, as each are defined in section 12-285 of the general statutes and licensed pursuant to chapter 214 of the general statutes, in the amount of twenty-four and one-half mills per cigarette, as defined in said section 12-285, in such distributor's or such dealer's inventory as of the close of business on June 30, 2007, or, if the business closes after eleven fifty-nine p. m. on such date, at eleven fifty-nine p. m. on such date.

(b) Each such licensed distributor or dealer shall, not later than August 15, 2007, file with the Commissioner of Revenue Services, on forms prescribed by said commissioner, a report that shows the number of cigarettes in inventory as of the close of business on June 30, 2007, or, if the business closes after eleven fifty-nine p. m. on such date, at eleven fifty-nine p. m. on such date, upon which inventory the tax under subsection (a) of this section shall be imposed. The tax shall be due and payable on the due date of such report. If any distributor or dealer required to file a report pursuant to this section fails to file such report on or before August 15, 2007, the commissioner shall make an estimate of the number of cigarettes in such distributor's or dealer's inventory as of the close of business on June 30, 2007, based upon any information that is in the commissioner's possession or that may come into the commissioner's possession. The provisions of chapter 214 of the general statutes pertaining to failure to file returns, examination of returns by the commissioner, the issuance of deficiency assessments or assessments where no return has been filed, the collection of tax, the imposition of penalties and the accrual of interest shall apply to the distributors and dealers required to pay the tax imposed under this section. Failure of any distributor or dealer to file such report when due shall be sufficient reason to revoke such distributor's or dealer's license under the provisions of said chapter 214 and to revoke any other state license or permit held by such distributor or dealer.

Sec. 6. Section 12-391 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to the estates of decedents who die on or after January 1, 2007):

(a) With respect to estates of decedents who die prior to January 1, 2005, and except as otherwise provided in section 59 of public act 03-1 of the June 30 special session*, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be the amount of the federal credit allowable for estate, inheritance, legacy and succession taxes paid to any state or the District of Columbia under the provisions of the federal internal revenue code in force at the date of such decedent's death in respect to any property owned by such decedent or subject to such taxes as part of or in connection with the estate of such decedent. If real or tangible personal property of such decedent is located outside of this state and is subject to estate, inheritance, legacy, or succession taxes by any state or states, other than the state of Connecticut, or by the District of Columbia for which such federal credit is allowable, the amount of tax due under this section shall be reduced by the lesser of: (1) The amount of any such taxes paid to such other state or states or said district and allowed as a credit against the federal estate tax; or (2) an amount computed by multiplying such federal credit by a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate over which such other state or states or said district have jurisdiction for estate tax purposes to the same extent to which this state would assert jurisdiction for estate tax purposes under this chapter with respect to the residents of such other state or states or said district, and (B) the denominator of which is the value of the decedent's gross estate. Property of a resident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state, tangible personal property having an actual situs in this state, and intangible personal property owned by the decedent, regardless of where it is located. The amount of any estate tax imposed under this subsection shall also be reduced, but not below zero, by the amount of any tax that is imposed under chapter 216 and that is actually paid to this state.

(b) With respect to the estates of decedents who die prior to January 1, 2005, and except as otherwise provided in section 59 of public act 03-1 of the June 30 special session*, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state, the amount of which shall be computed by multiplying (1) the federal credit allowable for estate, inheritance, legacy, and succession taxes paid to any state or states or the District of Columbia under the provisions of the federal internal revenue code in force at the date of such decedent's death in respect to any property owned by such decedent or subject to such taxes as a part of or in connection with the estate of such decedent by (2) a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes and (B) the denominator of which is the value of the decedent's gross estate. Property of a nonresident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state and tangible personal property having an actual situs in this state. The amount of any estate tax imposed under this subsection shall also be reduced, but not below zero, by the amount of any tax that is imposed under chapter 216 and that is actually paid to this state.

(c) For purposes of this section:

(1) "Connecticut taxable estate" means (A) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (B) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, made by the decedent for all calendar years beginning on or after January 1, 2005, other than gifts that are includable in the gross estate of the decedent. The deduction for state death taxes paid under Section 2058 of said code shall be disregarded.

(2) "Internal Revenue Code" means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, except in the event of repeal of the federal estate tax, then all references to the Internal Revenue Code in this section shall mean the Internal Revenue Code as in force on the day prior to the effective date of such repeal.

(3) "Gross estate" means the gross estate, for federal estate tax purposes.

(d) (1) With respect to the estates of decedents who die on or after January 1, 2005, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642 for Connecticut taxable gifts made on or after January 1, 2005.

(2) If real or tangible personal property of such decedent is located outside of this state, [and is subject to estate, inheritance, legacy or succession taxes by any state or states, other than the state of Connecticut, or by the District of Columbia,] the amount of tax due under this section shall be reduced by [the lesser of: (A) The amount of any taxes paid to such other state or states or said district; or (B)] an amount computed by multiplying the tax otherwise due pursuant to subdivision (1) of this subsection, without regard to the credit allowed for any taxes paid to this state pursuant to section 12-642, by a fraction, (i) the numerator of which is the value of that part of the decedent's gross estate over which such other state or states or said district have jurisdiction for estate tax purposes to the same extent to which this state would assert jurisdiction for estate tax purposes under this chapter, with respect to the residents of such other state or states or said district, and (ii) the denominator of which is the value of the decedent's gross estate.

(3) Property of a resident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state, tangible personal property having an actual situs in this state and intangible personal property owned by the decedent, regardless of where it is located.

(e) (1) With respect to the estates of decedents who die on or after January 1, 2005, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (A) the amount of tax determined using the appropriate schedule in subsection (g) of this section by (B) a fraction, (i) the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and (ii) the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, on or after January 1, 2005.

(2) Property of a nonresident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state and tangible personal property having an actual situs in this state.

(f) (1) For purposes of the tax imposed under this section, the value of the Connecticut taxable estate shall be determined taking into account all of the deductions available under the Internal Revenue Code of 1986, specifically including, but not limited to, the deduction available under Section 2056(b)(7) of said code for a qualifying income interest for life in a surviving spouse.

(2) An election under said Section 2056(b)(7) may be made for state estate tax purposes regardless of whether any such election is made for federal estate tax purposes. The value of the gross estate shall include the value of any property in which the decedent had a qualifying income interest for life for which an election was made under this subsection.

(g) (1) With respect to the estates of decedents dying on or after January 1, 2005, but prior to January 1, 2007, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

(2) With respect to the estates of decedents dying on or after January 1, 2007, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

(h) (1) For the purposes of this chapter, each decedent shall be presumed to have died a resident of this state. The burden of proof in an estate tax proceeding shall be upon any decedent's estate claiming exemption by reason of the decedent's alleged nonresidency.

(2) Any person required to make and file a tax return under this chapter, believing that the decedent died a nonresident of this state, may file a request for determination of domicile in writing with the Commissioner of Revenue Services, stating the specific grounds upon which the request is founded provided (A) such person has filed such return, (B) at least two hundred seventy days, but no more than three years, has elapsed since the due date of such return or, if an application for extension of time to file such return has been granted, the extended due date of such return, (C) such person has not been notified, in writing, by said commissioner that a written agreement of compromise with the taxing authorities of another jurisdiction, under section 12-395a, is being negotiated, and (D) the commissioner has not previously determined whether the decedent died a resident of this state. Not later than one hundred eighty days following receipt of such request for determination, the commissioner shall determine whether such decedent died a resident or a nonresident of this state. If the commissioner commences negotiations over a written agreement of compromise with the taxing authorities of another jurisdiction after a request for determination of domicile is filed, the one-hundred-eighty-day period shall be tolled for the duration of such negotiations. When, before the expiration of such one-hundred-eighty-day period, both the commissioner and the person required to make and file a tax return under this chapter have consented in writing to the making of such determination after such time, the determination may be made at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. The commissioner shall mail notice of his proposed determination to the person required to make and file a tax return under this chapter. Such notice shall set forth briefly the commissioner's findings of fact and the basis of such proposed determination. Sixty days after the date on which it is mailed, a notice of proposed determination shall constitute a final determination unless the person required to make and file a tax return under this chapter has filed, as provided in subdivision (3) of this subsection, a written protest with the Commissioner of Revenue Services.

(3) On or before the sixtieth day after mailing of the proposed determination, the person required to make and file a tax return under this chapter may file with the commissioner a written protest against the proposed determination in which such person shall set forth the grounds on which the protest is based. If such a protest is filed, the commissioner shall reconsider the proposed determination and, if the person required to make and file a tax return under this chapter has so requested, may grant or deny such person or the authorized representatives of such person an oral hearing.

(4) Notice of the commissioner's determination shall be mailed to the person required to make and file a tax return under this chapter and such notice shall set forth briefly the commissioner's findings of fact and the basis of decision in each case decided adversely to such person.

(5) The action of the commissioner on a written protest shall be final upon the expiration of one month from the date on which he mails notice of his action to the person required to make and file a tax return under this chapter unless within such period such person seeks review of the commissioner's determination pursuant to subsection (b) of section 12-395.

(6) Nothing in this subsection shall be construed to relieve any person filing a request for determination of domicile of the obligation to pay the correct amount of tax on or before the due date of the tax.

Sec. 7. Subdivision (37) of subsection (a) of section 12-407 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(37) "Services" for purposes of subdivision (2) of this subsection, means:

(A) Computer and data processing services, including, but not limited to, time, programming, code writing, modification of existing programs, feasibility studies and installation and implementation of software programs and systems even where such services are rendered in connection with the development, creation or production of canned or custom software or the license of custom software, and exclusive of services rendered in connection with the creation, development hosting or maintenance of all or part of a web site which is part of the graphical, hypertext portion of the Internet, commonly referred to as the World Wide Web;

(B) Credit information and reporting services;

(C) Services by employment agencies and agencies providing personnel services;

(D) Private investigation, protection, patrol work, watchman and armored car services, exclusive of (i) services of off-duty police officers and off-duty firefighters, and (ii) coin and currency services provided to a financial services company by or through another financial services company. For purposes of this subparagraph, "financial services company" has the same meaning as provided under subparagraphs (A) to (H), inclusive, of subdivision (6) of subsection (a) of section 12-218b;

(E) Painting and lettering services;

(F) Photographic studio services;

(G) Telephone answering services;

(H) Stenographic services;

(I) Services to industrial, commercial or income-producing real property, including, but not limited to, such services as management, electrical, plumbing, painting and carpentry and excluding any such services rendered in the voluntary evaluation, prevention, treatment, containment or removal of hazardous waste, as defined in section 22a-115, or other contaminants of air, water or soil, provided income-producing property shall not include property used exclusively for residential purposes in which the owner resides and which contains no more than three dwelling units, or a housing facility for low and moderate income families and persons owned or operated by a nonprofit housing organization, as defined in subdivision (29) of section 12-412;

(J) Business analysis, management, management consulting and public relations services, excluding (i) any environmental consulting services, (ii) any training services provided by an institution of higher education licensed or accredited by the Board of Governors of Higher Education pursuant to section 10a-34, and (iii) on and after January 1, 1994, any business analysis, management, management consulting and public relations services when such services are rendered in connection with an aircraft leased or owned by a certificated air carrier or in connection with an aircraft which has a maximum certificated take-off weight of six thousand pounds or more;

(K) Services providing "piped-in" music to business or professional establishments;

(L) Flight instruction and chartering services by a certificated air carrier on an aircraft, the use of which for such purposes, but for the provisions of subdivision (4) of section 12-410 and subdivision (12) of section 12-411, would be deemed a retail sale and a taxable storage or use, respectively, of such aircraft by such carrier;

(M) Motor vehicle repair services, including any type of repair, painting or replacement related to the body or any of the operating parts of a motor vehicle;

(N) Motor vehicle parking, including the provision of space, other than metered space, in a lot having thirty or more spaces, excluding (i) space in a seasonal parking lot provided by a person who is exempt from taxation under this chapter pursuant to subdivision (1), (5) or (8) of section 12-412, (ii) space in a parking lot owned or leased under the terms of a lease of not less than ten years' duration and operated by an employer for the exclusive use of its employees, (iii) valet parking provided at any airport, and (iv) space in municipally-operated railroad parking facilities in municipalities located within an area of the state designated as a severe nonattainment area for ozone under the federal Clean Air Act or space in a railroad parking facility in a municipality located within an area of the state designated as a severe nonattainment area for ozone under the federal Clean Air Act owned or operated by the state on or after April 1, 2000;

(O) Radio or television repair services;

(P) Furniture reupholstering and repair services;

(Q) Repair services to any electrical or electronic device, including, but not limited to, equipment used for purposes of refrigeration or air-conditioning;

(R) Lobbying or consulting services for purposes of representing the interests of a client in relation to the functions of any governmental entity or instrumentality;

(S) Services of the agent of any person in relation to the sale of any item of tangible personal property for such person, exclusive of the services of a consignee selling works of art, as defined in subsection (b) of section 12-376c, or articles of clothing or footwear intended to be worn on or about the human body other than (i) any special clothing or footwear primarily designed for athletic activity or protective use and which is not normally worn except when used for the athletic activity or protective use for which it was designed, and (ii) jewelry, handbags, luggage, umbrellas, wallets, watches and similar items carried on or about the human body but not worn on the body in the manner characteristic of clothing, [intended for exemption under subdivision (47) of section 12-412,] under consignment, exclusive of services provided by an auctioneer;

(T) Locksmith services;

(U) Advertising or public relations services, including layout, art direction, graphic design, mechanical preparation or production supervision, not related to the development of media advertising or cooperative direct mail advertising;

(V) Landscaping and horticulture services;

(W) Window cleaning services;

(X) Maintenance services;

(Y) Janitorial services;

(Z) Exterminating services;

(AA) Swimming pool cleaning and maintenance services;

(BB) Miscellaneous personal services included in industry group 729 in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, or U. S. industry 532220, 812191, 812199 or 812990 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition, exclusive of (i) services rendered by massage therapists licensed pursuant to chapter 384a, and (ii) services rendered by an electrologist licensed pursuant to chapter 388;

(CC) Any repair or maintenance service to any item of tangible personal property including any contract of warranty or service related to any such item;

(DD) Business analysis, management or managing consulting services rendered by a general partner, or an affiliate thereof, to a limited partnership, provided (i) the general partner, or an affiliate thereof, is compensated for the rendition of such services other than through a distributive share of partnership profits or an annual percentage of partnership capital or assets established in the limited partnership's offering statement, and (ii) the general partner, or an affiliate thereof, offers such services to others, including any other partnership. As used in this subparagraph "an affiliate of a general partner" means an entity which is directly or indirectly owned fifty per cent or more in common with a general partner;

(EE) Notwithstanding the provisions of section 12-412, except subdivision (87) of said section 12-412, patient care services, as defined in subdivision (29) of this subsection by a hospital, except that "sale" and "selling" does not include such patient care services for which payment is received by the hospital during the period commencing July 1, 2001, and ending June 30, 2003. [; ]

[(FF) Health and athletic club services, exclusive of (i) any such services provided without any additional charge which are included in any dues or initiation fees paid to any such club, which dues or fees are subject to tax under section 12-543, (ii) any such services provided by a municipality or an organization that is described in Section 501(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, and (iii) yoga instruction provided at a yoga studio. ]

Sec. 8. Subdivision (1) of section 12-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(1) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or from the rendering of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu of said rate of six per cent, (A) at a rate of twelve per cent with respect to each transfer of occupancy, from the total amount of rent received for such occupancy of any room or rooms in a hotel or lodging house for the first period not exceeding thirty consecutive calendar days, (B) with respect to the sale of a motor vehicle to any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse thereof, at a rate of four and one-half per cent of the gross receipts of any retailer from such sales, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574, (C) (i) with respect to the sales of computer and data processing services occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent, on or after July 1, 1998, and prior to July 1, 1999, at the rate of four per cent, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three per cent, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent, on or after July 1, 2001, at the rate of one per cent, and on and after July 1, 2007, such services shall be exempt from such tax, (ii) with respect to sales of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax, (D) with respect to the sales of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax, (E) with respect to patient care services for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax. The rate of tax imposed by this chapter shall be applicable to all retail sales upon the effective date of such rate, except that a new rate which represents an increase in the rate applicable to the sale shall not apply to any sales transaction wherein a binding sales contract without an escalator clause has been entered into prior to the effective date of the new rate and delivery is made within ninety days after the effective date of the new rate. For the purposes of payment of the tax imposed under this section, any retailer of services taxable under subparagraph (I) of subdivision (2) of subsection (a) of section 12-407, who computes taxable income, for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, on an accounting basis which recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such services may make payments related to such tax for the period during which such income is received, without penalty or interest, without regard to when such service is rendered.

Sec. 9. Subdivision (55) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to sales occurring on and after July 1, 2007):

(55) Sales of [(A) tangible personal property by any funeral establishment performing the primary services in preparation for and the conduct of burial or cremation, provided any such property must be used directly in the performance of such services and the total amount of such exempt sales with respect to any single funeral may not exceed two thousand five hundred dollars, or (B)] caskets used for burial or cremation.

Sec. 10. (Effective from passage) The state shall apply to become a party to the Streamlined Sales and Use Tax Agreement on or before October 1, 2007. The Commissioner of Revenue Services, in consultation with the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding shall take all steps necessary to ensure that the state is in compliance with said agreement.

Sec. 11. Subdivision (27) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to sales occurring on or after July 1, 2007):

(27) (A) Sales of any items for fifty cents or less from vending machines; or (B) [sales of food products, as defined in subsection (13) of this section,] notwithstanding the provisions of subdivision (13) of this section, meals sold through coin-operated vending machines or at unattended "honor boxes".

Sec. 12. Subsection (b) of section 12-412k of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to sales occurring on or after July 1, 2007):

(b) Notwithstanding the provisions of the general statutes, from November 25, 2005, to April 1, 2006, and from June 1, 2006, to June 30, [2007] 2010, the provisions of this chapter shall not apply to sales of any residential weatherization products.

Sec. 13. Section 12-460a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) Notwithstanding the provisions of section 13b-61, with respect to the fiscal year ending June 30, 2003, the Commissioner of Revenue Services shall deposit into the Conservation Fund established under section 22a-27h, two million dollars of the amount of the funds received by the state from the tax imposed under this chapter attributable to sales of fuel from distributors to any boat yard, public or private marina or other entity renting or leasing slips, dry storage, mooring or other space for marine vessels, provided (1) two hundred fifty thousand dollars shall be credited to the boating account, and (2) one million dollars shall be credited to the fisheries account, of which not less than seventy-five thousand dollars shall be allocated to The University of Connecticut for the Long Island Sound councils.

(b) [With] Notwithstanding the provisions of section 13b-61, with respect to fiscal years ending on or after June 30, 2004, but prior to June 30, 2008, the Commissioner of Revenue Services shall deposit into the Conservation Fund established under section 22a-27h, three million dollars of the amount of the funds received by the state from the tax imposed under this chapter attributable to sales of fuel from distributors to any boat yard, public or private marina or other entity renting or leasing slips, dry storage, mooring or other space for marine vessels, provided (1) two hundred fifty thousand dollars shall be credited to the boating account, and (2) two million dollars shall be credited to the fisheries account, of which not less than seventy-five thousand dollars shall be allocated to The University of Connecticut for the Long Island Sound councils.

(c) Notwithstanding the provisions of section 13b-61, with respect to fiscal years ending on or after June 30, 2008, the Commissioner of Revenue Services shall deposit into the Conservation Fund established under section 22a-27h, three million five hundred thousand dollars of the amount of the funds received by the state from the tax imposed under this chapter attributable to sales of fuel from distributors to any boat yard, public or private marina or other entity renting or leasing slips, dry storage, mooring or other space for marine vessels, provided (1) two hundred ninety-five thousand dollars shall be credited to the boating account, and (2) two million three hundred thirty thousand dollars shall be credited to the fisheries account, of which not less than one hundred twenty-five thousand dollars shall be allocated to The University of Connecticut for the Long Island Sound councils.

Sec. 14. Subsection (a) of section 12-494 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) There is imposed a tax on each deed, instrument or writing, whereby any lands, tenements or other realty is granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser, or any other person by his direction, when the consideration for the interest or property conveyed equals or exceeds two thousand dollars, (1) subject to the provisions of subsection (b) of this section, at the rate of five-tenths of one per cent of the consideration for the interest in real property conveyed by such deed, instrument or writing, the revenue from which shall be remitted by the town clerk of the municipality in which such tax is paid, not later than ten days following receipt thereof, to the Commissioner of Revenue Services for deposit to the credit of the state General Fund, and (2) at the rate of one-fourth of one per cent of the consideration for the interest in real property conveyed by such deed, instrument or writing, [and on and after July 1, 2007, at the rate of eleven one-hundredths of one per cent of the consideration for the interest in real property conveyed by such deed, instrument or writing,] provided the amount imposed under this subdivision shall become part of the general revenue of the municipality in accordance with section 12-499.

Sec. 15. Section 12-587 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) As used in this chapter: (1) "Company" includes a corporation, partnership, limited partnership, limited liability company, limited liability partnership, association, individual or any fiduciary thereof; (2) "quarterly period" means a period of three calendar months commencing on the first day of January, April, July or October and ending on the last day of March, June, September or December, respectively; (3) "gross earnings" means all consideration received from the first sale within this state of a petroleum product; (4) "petroleum products" means those products which contain or are made from petroleum or a petroleum derivative; (5) "first sale of petroleum products within this state" means the initial sale of a petroleum product delivered to a location in this state; (6) "export" or "exportation" means the conveyance of petroleum products from within this state to a location outside this state for the purpose of sale or use outside this state; and (7) "sale for exportation" means a sale of petroleum products to a purchaser which itself exports such products.

(b) (1) Except as otherwise provided in subdivision (2) of this subsection, any company which is engaged in the refining or distribution, or both, of petroleum products and which distributes such products in this state shall pay a quarterly tax on its gross earnings derived from the first sale of petroleum products within this state. Each company shall on or before the last day of the month next succeeding each quarterly period render to the commissioner a return on forms prescribed or furnished by the commissioner and signed by the person performing the duties of treasurer or an authorized agent or officer, including the amount of gross earnings derived from the first sale of petroleum products within this state for the quarterly period and such other facts as the commissioner may require for the purpose of making any computation required by this chapter. Except as otherwise provided in subdivision (3) of this subsection, the rate of tax shall be (A) five per cent with respect to calendar quarters prior to July 1, 2005; (B) five and eight-tenths per cent with respect to calendar quarters commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six and three-tenths per cent with respect to calendar quarters commencing on or after July 1, 2006, and prior to July 1, [2007] 2008; (D) seven per cent with respect to calendar quarters commencing on or after July 1, [2007] 2008, and prior to July 1, [2008] 2009; (E) seven and one-half per cent with respect to calendar quarters commencing on or after July 1, [2008] 2009, and prior to July 1, [2013] 2014; and (F) eight and one-tenth per cent with respect to calendar quarters commencing on or after July 1, [2013] 2014.

(2) Gross earnings derived from the first sale of the following petroleum products within this state shall be exempt from tax: (A) Any petroleum products sold for exportation from this state for sale or use outside this state; (B) the product designated by the American Society for Testing and Materials as "Specification for Heating Oil D396-69", commonly known as number 2 heating oil, to be used exclusively for heating purposes or to be used in a commercial fishing vessel, which vessel qualifies for an exemption pursuant to section 12-412; (C) kerosene, commonly known as number 1 oil, to be used exclusively for heating purposes, provided delivery is of both number 1 and number 2 oil, and via a truck with a metered delivery ticket to a residential dwelling or to a centrally metered system serving a group of residential dwellings; (D) the product identified as propane gas, to be used exclusively for heating purposes; (E) bunker fuel oil, intermediate fuel, marine diesel oil and marine gas oil to be used in any vessel having a displacement exceeding four thousand dead weight tons; (F) for any first sale occurring prior to July 1, 2008, propane gas to be used as a fuel for a motor vehicle; (G) for any first sale occurring on or after July 1, 2002, grade number 6 fuel oil, as defined in regulations adopted pursuant to section 16a-22c, to be used exclusively by a company which, in accordance with census data contained in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 32 or 33 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition; (H) for any first sale occurring on or after July 1, 2002, number 2 heating oil to be used exclusively in a vessel primarily engaged in interstate commerce, which vessel qualifies for an exemption under section 12-412; (I) for any first sale occurring on or after July 1, 2000, paraffin or microcrystalline waxes; (J) for any first sale occurring prior to July 1, 2008, petroleum products to be used as a fuel for a fuel cell, as defined in subdivision (113) of section 12-412; or (K) a commercial heating oil blend containing not less than ten per cent of alternative fuels derived from agricultural produce, food waste, waste vegetable oil or municipal solid waste, including, but not limited to, biodiesel or low sulfur dyed diesel fuel.

(3) The rate of tax on gross earnings derived from the first sale of grade number 6 fuel oil, as defined in regulations adopted pursuant to section 16a-22c, to be used exclusively by a company which, in accordance with census data contained in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 32 or 33 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition, or number 2 heating oil used exclusively in a vessel primarily engaged in interstate commerce, which vessel qualifies for an exemption under section 12-412 shall be: (A) Four per cent with respect to calendar quarters commencing on or after July 1, 1998, and prior to July 1, 1999; (B) three per cent with respect to calendar quarters commencing on or after July 1, 1999, and prior to July 1, 2000; (C) two per cent with respect to calendar quarters commencing on or after July 1, 2000, and prior to July 1, 2001; and (D) one per cent with respect to calendar quarters commencing on or after July 1, 2001, and prior to July 1, 2002.

(c) (1) Any company which imports or causes to be imported into this state petroleum products for sale, use or consumption in this state, other than a company subject to and having paid the tax on such company's gross earnings from first sales of petroleum products within this state, which earnings include gross earnings attributable to such imported or caused to be imported petroleum products, in accordance with subsection (b) of this section, shall pay a quarterly tax on the consideration given or contracted to be given for such petroleum product if the consideration given or contracted to be given for all such deliveries during the quarterly period for which such tax is to be paid exceeds three thousand dollars. Except as otherwise provided in subdivision (3) of this subsection, the rate of tax shall be (A) five per cent with respect to calendar quarters commencing prior to July 1, 2005; (B) five and eight-tenths per cent with respect to calendar quarters commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six and three-tenths per cent with respect to calendar quarters commencing on or after July 1, 2006, and prior to July 1, [2007] 2008; (D) seven per cent with respect to calendar quarters commencing on or after July 1, [2007] 2008, and prior to July 1, [2008] 2009; (E) seven and one-half per cent with respect to calendar quarters commencing on or after July 1, [2008] 2009, and prior to July 1, [2013] 2014; and (F) eight and one-tenth per cent with respect to calendar quarters commencing on or after July 1, [2013] 2014. Fuel in the fuel supply tanks of a motor vehicle, which fuel tanks are directly connected to the engine, shall not be considered a delivery for the purposes of this subsection.

(2) Consideration given or contracted to be given for petroleum products, gross earnings from the first sale of which are exempt from tax under subdivision (2) of subsection (b) of this section, shall be exempt from tax.

(3) The rate of tax on consideration given or contracted to be given for grade number 6 fuel oil, as defined in regulations adopted pursuant to section 16a-22c, to be used exclusively by a company which, in accordance with census data contained in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 32 or 33 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition, or number 2 heating oil used exclusively in a vessel primarily engaged in interstate commerce, which vessel qualifies for an exemption under section 12-412 shall be: (A) Four per cent with respect to calendar quarters commencing on or after July 1, 1998, and prior to July 1, 1999; (B) three per cent with respect to calendar quarters commencing on or after July 1, 1999, and prior to July 1, 2000; (C) two per cent with respect to calendar quarters commencing on or after July 1, 2000, and prior to July 1, 2001; and (D) one per cent with respect to calendar quarters commencing on or after July 1, 2001, and prior to July 1, 2002.

(d) The amount of tax reported to be due on such return shall be due and payable on or before the last day of the month next succeeding the quarterly period. The tax imposed under the provisions of this chapter shall be in addition to any other tax imposed by this state on such company.

(e) For the purposes of this chapter, the gross earnings of any producer or refiner of petroleum products operating a service station along the highways or interstate highways within the state pursuant to a contract with the Department of Transportation or operating a service station which is used as a training or test marketing center under the provisions of subsection (b) of section 14-344d, shall be calculated by multiplying the volume of petroleum products delivered by any producer or refiner to any such station by such producer's or refiner's dealer tank wagon price or dealer wholesale price in the area of the service station.

Sec. 16. Subsection (a) of section 12-642 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to calendar years commencing on or after January 1, 2007):

(a) (1) With respect to calendar years commencing prior to January 1, 2001, the tax imposed by section 12-640 for the calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

(2) With respect to the calendar years commencing January 1, 2001, January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed by section 12-640 for each such calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

(3) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2007, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, but prior to January 1, 2007, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:

(4) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2007, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2007, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:

Sec. 17. Subsection (a) of section 12-700 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to taxable years commencing on or after January 1, 2007):

(a) There is hereby imposed on the Connecticut taxable income of each resident of this state a tax:

(1) At the rate of four and one-half per cent of such Connecticut taxable income for taxable years commencing on or after January 1, 1992, and prior to January 1, 1996.

(2) For taxable years commencing on or after January 1, 1996, but prior to January 1, 1997, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code: