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    Wednesday, July 03, 2024

    Conn. special legislative session agenda to likely focus on motor vehicle taxes, banking

    Hartford — State lawmakers and Gov. Ned Lamont are close to agreeing on the full extent of a late-June special session of the General Assembly to make taxes on commercial vehicles less onerous, possibly eliminate local car taxes and tweak state banking regulations to try and lure lending institutions to move to Connecticut.

    Plans so far have the Senate meeting on June 26 and the House on June 27 to go over a limited agenda.

    And while Lamont said Friday he would be interested in changing a line in recent legislation on long-term borrowing for school-construction to make it tougher for project managers to take on subcontracting work, it seems less likely to become part of the mix as negotiations continue.

    "If people would like to add bills to the special session beyond the three that have been agreed to, I am all ears and am open," said Speaker of the House Matt Ritter to reporters in the State Capitol complex on Friday. He noted that a climate-related bill has already passed the House. Ritter, D-Hartford, said he would be amenable if a hybrid bill were developed from related Senate legislation that was never called for a vote, aimed at local climate resiliency programs.

    "I have talked to the leadership and I think there is less of an inclination to call the climate bill," said Lamont, who will determine the scope of the special session and the call to lawmakers to return to the Capitol. "I think it's a big bill, probably better suited for" a longer session, such as the one that starts in January. "I think this special session is going to be narrowly tailored to a couple of technical fixes we didn't get over the finish line."

    Lamont said that another special session in the fall, focused on climate change and resiliency, is also possible.

    "It is hard in a special session because if you let one bill in, members complain and get upset," Ritter said. "So far, in our chamber, people have not given me 'you better do my bill' sort of thing. If the governor puts something in the call, we don't have to do it."

    Ritter said that a "mistake" in the Senate resulted in legislation aimed at reducing local taxes on commercial and rental vehicles dying in the waning hours of the regular session that ended at midnight on May 8. That will be an easy fix in special session. It's the statewide car tax itself that lawmakers have tried to grapple with for years that's an evergreen problem for the General Assembly.

    "It's very hard to get rid of the car tax," Ritter said, stressing that reducing local revenue means that towns and cities have to find it elsewhere. "If you squeeze it one way, it hurts another way. I think it makes a lot of sense to involve OPM and towns have to apply for the program. There might be a suburban town out there that can make it work." It would require towns to have very high home ownership rates and very high value in real estate and taxes on residential or commercial property. "No city can pull it off," Ritter said.

    Speaking a few minutes after Lamont told reporters that the contracting issue could possibly be in the mix for the special session, Ritter said it would likely be a better item for the legislature that takes office next January. He noted that the contracting issue had a public hearing and became part of a bill that passed overwhelmingly. "There were obviously some public policy reasons that people supported it," Ritter said. "It's not like it was snuck in. If Democrats in the House and Republicans in the House agreed to something, I assume people thought it could save money."

    In his criticism of the bill, Lamont said that the recent arrest of the state's former school construction head, Kosta Diamantis underscored the need for tighter reforms on the process.

    "It may very well be a money saver, if you don't have somebody who commits crimes" in charge, Ritter said of the newly approved language. "If we're throwing out the entire program because of one incident, then I don't know if that's the right thing to do, if it can save taxpayers' money. We just need better oversight to make sure that nothing nefarious happens."

    As for the banking regulations, Jonathan Dach, Lamont's chief of staff, said that a minor change to state lending laws would help attract at least one bank to the Stamford area, along with about 200 new jobs in the business-to-business lending industry. "This is not a retail bank," Dach told reporters. "Connecticut is a great place to do business, and I am confident we could win on the merits." Ritter said the related legislation passed the House in the recent regular session, but failed to get called in the Senate.

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