SB 711 — AN ACT CONCERNING COVID-19 RELIEF FOR SMALL BUSINESSES AND REQUIRING FEDERAL REGULATORY ANALYSIS FOR PROPOSED STATE REGULATIONS.
Last action — HOUSE CALENDAR NUMBER 581
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✓Introduced
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✓In Committee
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3Passed Senate
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4Passed House
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5To Executive
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6Enacted
This bill died with 2021 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
11 added · 10 removed11 line(s) added, 10 removed.
Senate General Assembly FileCommittee Bill No.
183711 January Session, 2021 SenateLCO Bill No.
7114120 Senate,Referred Marchto 29, 2021 The Committee on CommerceCOMMERCE reportedIntroduced throughby: SEN.
HARTLEY(CE) ofAN theACT 15thCONCERNING Dist.,COVID-19 ChairpersonRELIEF ofFOR theSMALL CommitteeBUSINESSES onAND theREQUIRING partFEDERAL ofREGULATORY theANALYSIS Senate,FOR thatPROPOSED theSTATE billREGULATIONS. ought to pass.
AN ACT CONCERNING COVID-19 RELIEF FOR SMALL BUSINESSES AND REQUIRING FEDERAL REGULATORY ANALYSIS FOR PROPOSED STATE REGULATIONS.
(c) (1) (A) Any week for which the employer has compensated the claimant in the form of wages in lieu of notice, dismissal payments or any similar payment for loss of wages shall be considered a week of employment for the purpose of determining employer chargeability.(B)chargeability. No benefits shall be charged to any employer who paid wages of five hundred dollars or less to the claimant in his or her base period.
(C)(B) No dependencybenefits allowance paid to a claimant shall be charged to any employer.(D)IntheeventofanaturaldisasterdeclaredbythePresidentemployer ofwho the United States, no benefits paid onwages theof basisfive ofhundred totaldollars or partialless unemploymentto which is the resultclaimant ofin physicalhis damageor toher abase placeperiod. of SB711 / File No.
183(C) 1No SB711dependency Fileallowance paid to a claimant shall be charged to any employer.(D)IntheeventofanaturaldisasterdeclaredbythePresident of the United States, no benefits paid on the basis of total or partial unemployment which is the result of physical damage to a place of employment caused by severe weather conditions including, but not LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00711-R1 of 11 SB.docx Committee Bill No.
183711 employment caused by severe weather conditions including, but not limited to, hurricanes, snowstorms,ice stormsor flooding,or fireexcept where caused by the employer, shall be charged to any employer.
(E) If the administrator finds that (i) an individual's most recent separation from a base period employer occurred under conditions which would result in disqualification by reason of subdivision (2), (6) or (9) of subsection (a) of section 31-236, or (ii) an individual was discharged for violating an employer's drug testing policy, provided the policy has been adopted and applied consistent with sections 31-51t to 31-51aa, inclusive, section 14-261b and any applicable federal law, no benefits paid thereafter to such individual with respect to any week of unemployment which is based upon wages paid by such employer with respect to employment prior to such separation shall be charged to such employer's account, provided such employer shall have filed a notice with the administrator within the time allowed for appeal in section 31- 241.(F)Nobaseperiodemployer'saccountshallbechargedwithrespect241.(F)Nobaseperiodemployer'saccountshallbechargedwith respect to benefits paid to a claimant if such employer continues to employ such claimant at the time the employer's account would otherwise have been charged to the same extent that he or she employed him or her during the individual's base period, provided the employer shall notify the administrator within the time allowed for appeal in section 31-241.
(H) Fifty per cent of benefits paid to a claimant under the federal-state extended duration unemployment benefits program established by the federal SB711Employment /Security FileAct shall be charged to the experience accounts of LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0072 of 11 R03-SB.docx } Committee Bill No.
183711 2the SB711claimant's Filebase No.period employers in the same manner as the regular benefits paid for such benefit year.
183 Employment Security Act shall be charged to the experience accounts of the claimant's base period employers in the same manner as the regular benefits paid for such benefit year.
(J) No base period employer's account shallbecharged withwithrespect respect to benefitspaidto aclaimant who hasbeen discharged or suspended because the claimant has been disqualified from performing the work for which he or she was hired due to the loss of such claimant's operator license as a result of a drug or alcohol test or testing program conducted in accordance with section 14-44k, 14-227a or 14-227b while the claimant was off duty.
Subsection (c) of section 31-225a of the general statutes, as amended by section 26 of public act 19-25 and section 235 of public act SB71119-117, /is Filerepealed and the following is substituted in lieu thereof LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0073 of 11 R03-SB.docx } Committee Bill No.
183711 3(Effective SB711January File1, No.2022):
183(c) 19-117,(1) is(A) repealedAny andweek for which the followingemployer ishas substitutedcompensated the claimant in the form of wages in lieu thereofof (Effectivenotice, Januarydismissal 1,payments 2022):or any similar payment for loss of wages shall be considered a week of employment for the purpose of determining employer chargeability.(B) No benefits shall be charged to any employer who paid wages of five hundred dollars or less to the claimant in his or her base period.
(c) (1) (A) Any week for which the employer has compensated the claimant in the form of wages in lieu of notice, dismissal payments or any similar payment for loss of wages shall be considered a week of employment for the purpose of determining employer chargeability.
(B) No benefits shall be charged to any employer who paid wages of five hundred dollars or less to the claimant in his or her base period.
(E) If the administrator finds that (i) an individual's most recent separation from a base period employer occurred under conditions which would result in disqualification by reason of subdivision (2), (6) or (9) of subsection (a) of section 31-236, or (ii) an individual was discharged for violating an employer's drug testing policy, provided the policy has been adopted and applied consistent with sections 31-51t to 31-51aa, inclusive, section 14-261b and any applicable federal law, no benefits paid thereafter to such individual with respect to any week of unemployment which is based upon wages paid by such employer with respect to employment prior to such separation shall be charged to such employer's account, provided such employer shall have filed a notice with the administrator within the time allowed for appeal in section 31- 241.(F)Nobaseperiodemployer'saccountshallbechargedwith241.(F)Nobaseperiodemployer'saccount respectshallbechargedwithrespect to benefits paid to a claimant if such employer continues to employ such claimant at the time the employer's account would otherwise have been charged to the same extent that he or she employed him or her during the individual's base period, provided the employer shall notify the administrator within the time allowed for appeal in section 31-241.
(G) If a claimant has failed to accept suitable employment under the provisions of subdivision (1) of subsection (a) of section 31-236 and the SB711LCO /{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0074 Fileof 11 R03-SB.docx } Committee Bill No.
183711 4disqualification SB711has Filebeen No.imposed, the account of the employer who makes an offer of employment to a claimant who was a former employee shall not be charged with any benefit payments made to such claimant after such initial offer of reemployment until such time as such claimant resumes employment with such employer, provided such employer shall make application therefor in a form acceptable to the administrator.
183 disqualification has been imposed, the account of the employer who makes an offer of employment to a claimant who was a former employee shall not be charged with any benefit payments made to such claimant after such initial offer of reemployment until such time as such claimant resumes employment with such employer, provided such employer shall make application therefor in a form acceptable to the administrator.
(L) No base period employer's account shall be charged with respect to benefits paid to a claimant due to partial or total unemployment that the Labor Commissioner, or his or her designee, determines are attributable to COVID-19, including, but not limited to, SB711LCO /{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0075 Fileof 11 R03-SB.docx } Committee Bill No.
183711 5benefits SB711paid Fileto No.a claimant who, through no fault of his or her own, becomes either partially or fully unemployed during the public health and civil preparedness emergency declared on March 10, 2020, and any period of extension or renewal.
183 benefits paid to a claimant who, through no fault of his or her own, becomes either partially or fully unemployed during the public health and civil preparedness emergency declared on March 10, 2020, and any period of extension or renewal.
SB711LCO /{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0076 Fileof 11 R03-SB.docx } Committee Bill No.
183711 6(1) SB711"Agency", File"proposed No.regulation" and "regulation" have the same meanings as provided in section 4-166;
183 (1) "Agency", "proposed regulation" and "regulation" have the same meanings as provided in section 4-166;
(5) Whether and to what extent the agency communicated with small businesses or small business organizations in developing the proposed regulationLCO and{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00717 theof regulatory11 flexibilityR03-SB.docx analysis,} ifCommittee applicable;Bill No.
SB711711 /regulation Fileand No.the regulatory flexibility analysis, if applicable;
183(6) 7Whether SB711and Fileto No.what extent the proposed regulation provides alternative compliance methods for small businesses that will accomplish the objectives of applicable statutes while minimizing adverse impact on small businesses.
183 (6) Whether and to what extent the proposed regulation provides alternative compliance methods for small businesses that will accomplish the objectives of applicable statutes while minimizing adverse impact on small businesses.
(4) Any adverse impact of such federal regulation on small businesses;LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0078 of 11 R03-SB.docx } Committee Bill No.
and711 (5)businesses; Whether and to what extent the agency took steps to avoid such SB711 / File No.
183and 8(5) SB711Whether Fileand No.to what extent the agency took steps to avoid such adverse impact on small businesses in developing the proposed regulation.
183 adverse impact on small businesses in developing the proposed regulation.
(b) (1) No adoption, amendment or repeal of any regulation, except a regulation issued pursuant to subsection (g) of section 4-168, shall be effective until (A) an electronic copy of the proposed regulation approved by the Attorney General, as provided in section 4-169, [and] an electronic copy of the regulatory flexibility analysis, as provided in sectionLCO 4-168a,{\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0079 as amended by this act, and an electronic copy of the11 federalR03-SB.docx regulatory} analysis,Committee asBill provided in section 4-168a, as amended by this act, are submitted to the standing legislative regulation review committee in a manner designated by the committee, by the agency SB711 / File No.
183711 9section SB7114-168a, Fileas No.amended by this act, and an electronic copy of the federal regulatory analysis, as provided in section 4-168a, as amended by this act, are submitted to the standing legislative regulation review committee in a manner designated by the committee, by the agency proposing the regulation, (B) the regulation is approved by the committee, at a regular meeting or a special meeting called for the purpose, and (C) a certified electronic copy of the regulation is submitted to the office of the Secretary of the State by the agency, as provided in section 4-172, and the regulation is posted on the eRegulations System by the Secretary.
183 proposing the regulation, (B) the regulation is approved by the committee, at a regular meeting or a special meeting called for the purpose, and (C) a certified electronic copy of the regulation is submitted to the office of the Secretary of the State by the agency, as provided in section 4-172, and the regulation is posted on the eRegulations System by the Secretary.
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On and after October 1, 1994, if the committee finds that a federal statute requires, as a condition of the state exercising regulatory authority, that a Connecticut regulationatalltimesmustbeidenticaltoafederalstatuteorregulation, then the committee may approve a Connecticut regulation that by reference specifically incorporates future amendments to such federal statuteorregulationprovidedtheagencythatproposedtheConnecticutstatuteorregulationprovided theagencythatproposedtheConnecticut regulation shall submit for approval amendments to such Connecticut regulations to the committee not later than thirty days after the effective dateLCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0010 of such11 amendment,R03-SB.docx and} providedCommittee furtherBill theNo. committee may hold a public hearing on such Connecticut amendments.
711 date of such amendment, and provided further the committee may hold a public hearing on such Connecticut amendments.
At the time of submission to SB711the /committee, Filethe No.agency shall submit an electronic copy of the proposed regulation and the fiscal note to (A) the Office of Fiscal Analysis which, not later than seven days after receipt, shall submit an analysis of the fiscal note to the committee;
183 10 SB711 File No.
183 the committee, the agency shall submit an electronic copy of the proposed regulation and the fiscal note to (A) the Office of Fiscal Analysis which, not later than seven days after receipt, shall submit an analysis of the fiscal note to the committee;
Section 1 July 1, 2021 Section 1 31-225a(c) Sec.
5 October 1, 2021 4-170(b)(1) CE Joint Favorable SB711FIN /Joint FileFavorable No.LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00711-11 of 11 R03-SB.docx }
183 11 SB711 File No.
183 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $ Department of Revenue Services GF - Revenue up to up to Loss $250,000 $250,000 Various State Agencies Various - See Below See Below Potential Cost Note:
GF=General Fund;
Various=Various Municipal Impact:
None Explanation The bill enacts state policy put into place by the Governor's Executive Order 7W that prohibits charging contributing employer's unemployment insurance accounts to reflect benefits paid to a claimant due to partial or total unemployment attributable to the COVID-19 pandemic declared on March 10, 2020.
The bill conforms statute to current practice, which shifts the additional costs attributable to the COVID-19 pandemic to all contributing employers.
The bill exempts certain employers from the sales and use tax on purchases of Personal Protective Equipment (PPE).
In total, the sales tax exemption on safety apparel is estimated to be $250,000 annually.
Lastly, the bill expands the scope of regulatory analyses state agencies must conduct.
Specifically, for each proposed regulation state agencies much prepare an analysis that identifies (1) each comparable federal regulation, (2) how it differs from the proposed regulation, (3) any adverse impact of the federal regulation on small businesses, and (4) the extent to which the agency attempted to mitigate the adverse SB711 / File No.
183 12 SB711 File No.
183 impact.
The bill could result ina cost to variousagencies associatedwith requiring small business impact analyses for proposed regulations.
Any additional staff costs for each agency is dependent upon the number of regulations filed and time required to complete such analyses.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.
SB711 / File No.
183 13 SB711 File No.
183 OLR Bill Analysis SB 711 AN ACT CONCERNING COVID-19 RELIEF FOR SMALL BUSINESSES AND REQUIRING FEDERAL REGULATORY ANALYSIS FOR PROPOSED STATE REGULATIONS.
SUMMARY Thisbill createsa “non-charge” against anemployer’sexperience rate for the unemployment benefits paid to former employees whom the Labor commissioner (or his designee) determines became partially or totally unemployed because of COVID-19.
(This provision codifies Executive Order 7W (§ 2), which the governor issued on April 9, 2020.) The bill also establishes a sales and use tax exemption for small businesses for personal protective equipment used or worn to prevent COVID-19 infection or transmission.
Lastly, it requires state agencies to prepare a federal regulatory analysis when adopting regulations.
Generally, the analysis must compare the proposed regulation with any similar federal regulations.
EFFECTIVE DATE:
(1) July 1, 2021, for the unemployment provision and sales and use tax provision, with the latter applicable to sales occurring on or after that date;
(2) October 1, 2021, for the regulatory analysis;
and (3) January 1, 2022, for a conforming change.
§§ 1 & 2 — UNEMPLOYMENT NON-CHARGE The bill creates a “non-charge” against an employer’s experience rate for the unemployment benefits paid to former employees whom the Labor commissioner (or his designee) determines became partially or totally unemployed because of COVID-19.
This includes former employees who, through no fault of their own, became partially or fully unemployedduringthepublichealthandcivilpreparednessemergency declaredbythegovernoronMarch10,2020,andanyperiodofextension SB711 / File No.
183 14 SB711 File No.
183 or renewal.
In effect, this allows employers to lay off these employees without increasing the employer’s unemployment taxes (see BACKGROUND).
Aswithmost otherunemployment non-charges,thebill’snon-charge provisiondoesnotapply to“reimbursing employers”(e.g.,thestate and municipalities) who do not pay unemployment taxes but instead directly reimburse the unemployment trust fund for the benefits collected by their former employees.
§ 3 — SALES AND USE TAX EXEMPTION The billestablishes a salesanduse tax exemption for smallbusinesses for personal protective equipment used or worn to prevent COVID-19 infection or transmission.
Under the bill, a small business (1) is a corporation, limited liability company, partnership, sole proprietorship, or individual, operating a business for a profit and (2) has up to 100 full- time employees, including subsidiaries or affiliated corporations.
The billdoesnot establisha mechanismfor sellerstoverifywhichbusinesses are eligible for the exemption.
§§ 4 & 5 — FEDERAL REGULATORY ANALYSIS The bill requires state agencies to prepare a federal regulatory analysis when adopting regulations.
They must do so before, or concurrently with, posting a notice of intent to adopt regulations on the eRegulations System.
The analysis must identify (1) the proposed regulation’s scope and objectives, (2) each comparable federal regulation and how it differs from the proposed regulation, (3) any adverse impact of the federal regulation on small businesses, and (4) the extent to which the agency attempted to avoid the adverse impact when developing the regulation.
The agency must also submit the analysis to the Regulation Review Committee.
For purposes of this analysis, a “small business” is a business entity that, including its affiliates, (1) is independently owned and operated and (2) employs fewer than 250 full-time employees or has gross annual sales of less than $5 million.
The agency may define “small business” to SB711 / File No.
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183 include a greater number of full-time employees, up to the applicable federal standard or 500, whichever is less.
BACKGROUND Related Bill HB 5377, reported favorably by the Labor and Public Employees Committee,disregardsanemployer’sbenefit chargesandtaxablewages betweenJuly 1, 2019, andJune30,2021,whencalculating theemployer’s unemployment tax experience rate for taxable years starting on or after January 1, 2022.
Unemployment Non-Charge In general, a portion of a private-sector employer’s unemployment insurance tax is based on the employer’s “experience rate,” which reflects the amount of unemployment benefits paid to former employees.
Typically, laying off employees leads to a higher experience rate and higher unemployment tax for the employer.
The law, however, allows several non-charging separations in which an employee can collect benefits that are not charged against a former employer’s experience rate (e.g., voluntarily leaving work to care for a seriously ill spouse, parent, or child), and thus do not increase the employer’s unemployment taxes.
In these instances, the cost of the benefits paid to the former employee is shared by all employers who pay unemployment taxes.
COMMITTEE ACTION Commerce Committee Joint Favorable Yea 23 Nay 0 (03/11/2021) SB711 / File No.
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Action History
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HOUSE CALENDAR NUMBER 581
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FAV. RPT., TABLED FOR HOUSE CALENDAR
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ON CONSENT CALENDAR
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SEN. PASSED, SEN. AMEND. SCH. A
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FAV. RPT., TAB. FOR CAL., SEN.
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NO NEW FILE BY COMM. ON Finance, Revenue and Bonding
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RPTD. OUT OF LCO
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FILED WITH LCO
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Joint Favorable
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REF. BY SEN. TO COMM. ON Finance, Revenue and Bonding
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SEN. ADOPTED SEN. AMEND. SCH. A
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FILE NO. 183
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SENATE CALENDAR NUMBER 145
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FAV. RPT., TAB. FOR CAL., SEN.
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RPTD. OUT OF LCO
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REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 03/29/21
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FILED WITH LCO
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Joint Favorable
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REF. TO JOINT COMM. ON Commerce
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DRAFTED BY COMMITTEE
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Vote to Draft
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PUBLIC HEARING 0211
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Reserved for Subject Matter Public Hearing
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REF. TO JOINT COMM. ON Commerce
Sponsors
- Brian T. Smith · Primary
- Eric C. Berthel · Primary
- Christine Cohen · Primary
- Michael DiGiovancarlo · Primary
- Steve Cassano · Primary
- Catherine A. Osten · Primary
- Joan V. Hartley · Primary
- Paul Cicarella · Primary
- Ronald A. Napoli · Primary
- Tammy Nuccio · Primary
- Will Haskell · Primary
- Kevin D. Witkos · Primary
- Norman Needleman · Primary
- Gary A. Turco · Primary
- James J. Maroney · Primary
Sponsorship breakdown
Export CSV (upgrade) →15 sponsors · 0 co-sponsors · 172 not signed on
Sponsors (15)
- Smith, Brian T.
- Eric C. Berthel Republican
- Christine Cohen Democratic
- Michael DiGiovancarlo Democratic
- Cassano, Steve
- Catherine A. Osten Democratic
- Joan V. Hartley Democratic
- Paul Cicarella Republican
- Ronald A. Napoli Democratic
- Tammy Nuccio Republican
- Haskell, Will
- Witkos, Kevin D.
- Norman Needleman Democratic
- Gary A. Turco Democratic
- James J. Maroney Democratic
Co-sponsors (0)
None.
Not signed on (172)
172 members have not signed on to this bill.
Show all 172 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors SB 711?
- SB 711 is sponsored by Smith, Brian T., Eric C. Berthel (Republican), Christine Cohen (Democratic), Michael DiGiovancarlo (Democratic), Cassano, Steve, Catherine A. Osten (Democratic), Joan V. Hartley (Democratic), Paul Cicarella (Republican), Ronald A. Napoli (Democratic), Tammy Nuccio (Republican), Haskell, Will, Witkos, Kevin D., Norman Needleman (Democratic), Gary A. Turco (Democratic), and James J. Maroney (Democratic).
- What is the current status of SB 711?
- This bill died with 2021 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 711?
- Track SB 711 free on One Click Politics — get push/email alerts when it moves.
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