New State Laws Take Effect July 1

Lawmakers approved a number of bills impacting employers in 2024, along with legislation overhauling several economic development programs.

Many of those bills, passed during the regular General Assembly session and the subsequent June special session, took effect July 1, 2024.

Labor and Employment

SB 220, which passed both the House and Senate unanimously, clarifies the appeals process through the Superior Court for denied paid family and medical leave claims.

The bill outlines certain procedural steps and other criteria that must be followed in appeals to the court, including:

• Requires the appealing party to also file the appeal with the Department of Labor
• Specifies what must be included in the record and requires DOL to certify it
• Sets a process for the appealing party to request corrections for findings in the record
• Generally limits what the court considers in the appeal to certain factors
• Specifies what actions the court may take in deciding the appeal

Energy and Technology

CBIA strongly supported HB 5232, which establishes a standardized solar capacity tax for solar photovoltaic systems.

The bill facilitates the affordable deployment of solar energy by saving consumers money on their electric bills and reducing fees associated with peak electricity demand.

Effective July 1, 2024, the Department of Energy and Environmental Protection must develop a strategic plan for the widespread approval and installation of canopy solar systems.

SB 385, which passed both chambers with near-unanimous support, requires DEEP to conduct multi-state procurements for the Millstone Power Station, allowing ratepayers to receive cost-efficient, clean energy while addressing the state’s zero carbon emission goals.

SB 385 also allows the state to enter power purchase agreements with offshore wind facilities over a 30-year period, lowering the cost of various projects.

Education and Workforce Development

CBIA supported SB 13, which extends the student loan repayment assistance tax credit to include employer-supported repayment of all student loans.

The credit program provides employers with a 50% tax credit for making direct payments to a student loan servicer on behalf of a qualified employee.

The bill alleviates the burden of student loan debt in key sectors by providing financial support to employers and employees.

CBIA also supported SB 250, which passed both chambers unanimously, requiring the Department of Economic and Community Development to create a three-year Global Entrepreneur in Residence pilot program.

The bill is designed attract and retain entrepreneurs and innovative start-ups and scientists, helping drive economic growth.

CBIA backed HB 5002, which outlines an approach for providing quality, affordable childcare to Connecticut families.

The bill establishes an advisory commission to review the financial health of the fund, submit a 10-year plan to the legislature on fund expenditures to enhance the state’s early childhood education and childcare, and recommend legislative changes.

Business Law and Liability

CBIA supported SB 201, which bans certain service providers from entering into “unfair service agreements” with residential property owners, renders these agreements unenforceable, and classifies violations as an unfair or deceptive trade practice under the Connecticut Unfair Trade Practices Act.

Approved with broad bipartisan support, SB 201 protects homeowners from liens due to the execution of unfair and excessive hidden costs, closing a loophole in legislation passed in 2023.

In June, the General Assembly met in a special session and approved SB 501, which resolved concerns with previous legislation regarding motor vehicle assessments and property tax billing procedures.

The bill accomplishes the following:

• Adjusts the depreciation schedule assessors must use to value motor vehicles
• Eliminates a requirement that the Office of Policy and Management define a class of motor vehicles to be treated as personal property for taxing purposes
• Specifies how assessors must value commercial vehicle modifications and attachments
• Eliminates certain statutory deadlines for supplemental motor vehicle tax bills

Lawmakers also passed additional legislation that takes effect Oct. 1, 2024, and Jan. 1, 2025. We will provide updates on these bills as the dates approach.