CT HB07424

General Fund appropriations total $19.3 billion (FY2020) and $20.0 billion (FY2021), with the largest allocations to the Department of Social Services ($4.4B/$4.6B including $2.7B/$2.8B for Medicaid), State Comptroller fringe benefits ($3.1B/$3.3B), Education ($3.0B/$3.1B including $2.05B/$2.09B for ECS grants), and Teachers' Retirement contributions ($1.2B/$1.3B); Special Transportation Fund totals $1.7B/$1.8B supporting rail ($216M), bus ($197M/$202M), and debt service ($697M/$768M)

Teachers' retirement system restructured with $380.9 million appropriated to a new CT Teachers' Retirement Fund Bonds Special Capital Reserve Fund backed by lottery revenues; unfunded liability amortization transitions from level percent of salaries to level payment over 5 years; unfunded liability as of June 30, 2018 amortized over a closed 30-year period; credited interest capped at 4% and return assumption set at 6.9%; appropriation reductions require a Governor-declared emergency and three-fifths legislative vote

Revenue measures include new and increased taxes: a 1% meals tax surcharge (effective October 1, 2019); new electronic cigarette tax ($0.40/mL prefilled, 10% wholesale for other products); alcoholic beverage tax increases of approximately 10%; hotel lodging tax raised to 15%; motor vehicle parking and dry cleaning/laundry added as taxable services; digital goods brought under sales tax; corporate income tax 10% surcharge extended through January 1, 2021; conveyance tax on residential sales over $2.5 million raised to 2.25% (effective July 1, 2020); and a $0.10 single-use plastic bag fee transitioning to a full ban on July 1, 2021

Paid Family and Medical Leave Insurance program refined with employee contributions capped at 0.5% of subject earnings, board reduced from 15 to 13 voting members with 3-year terms, authority employees deemed state employees effective January 1, 2022, and the program's effective date set to January 1, 2022; $5.1 million transferred from the General Fund to the Family and Medical Leave Insurance Trust Fund for FY2020

Health insurance consumer protections strengthened effective January 1, 2020: out-of-pocket expenses capped at amounts no greater than what insurers actually pay providers; gag clauses prohibiting cost disclosure banned; surprise billing expanded to cover out-of-network clinical laboratories; urgent care review timelines shortened from 72 to 48 hours; disability insurance discretionary interpretation clauses prohibited; and a 13-member task force established to study high-deductible health plan impacts (report due February 1, 2020)

New professional licensure categories created including licensed professional counselor associate ($220 fee), licensed marital and family therapy associate ($125 fee), licensed art therapist ($315 fee), and community health worker certification ($100 fee with 1,000 hours experience or 2,000 hours alternative pathway); new esthetician, eyelash technician, and nail technician licenses established ($100 each) with practice requirements effective July 1, 2020–January 1, 2021; insurance cybersecurity event notification requirements imposed with civil penalties up to $50,000 per violation and mandatory 24-month identity theft prevention services for data breaches (effective October 1, 2020)

Education and youth initiatives funded through The Partnership for Connecticut, Inc., a nonprofit matching $20 million in state funds with $20 million from a philanthropic enterprise annually for up to 5 years to connect at-risk youth ages 14–24 to career opportunities; a Debt-Free Community College program launching fall 2020 covering unpaid tuition or a $250 minimum for qualifying students; minority educator loan reimbursement up to $5,000/year for 10 years; and after-school program grants expanded to include municipalities with 10% reserved for communities with population ≤7,500

Healthcare facility rate provisions freeze most institutional rates at FY2019 levels for FY2020–FY2021, including nursing homes, developmental services residential facilities, and intermediate care facilities; nursing home receivership reforms reduce viability determination from six months to 45 days and mandate closure for facilities below 70% occupancy; hospital tax restructured with base year updated triennially and quality-based supplemental payment allocations of $15 million (FY2020) and $45 million (FY2021); Medicaid eligibility for parents/caretaker relatives expanded from 150% to 155% of federal poverty level

State fleet electrification mandated: by January 1, 2030, at least 50% of state cars/light-duty trucks and 30% of state buses must be zero-emission vehicles; a Connecticut Hydrogen and Electric Automobile Purchase Rebate program established (2020–2025) providing at least $3 million annually in rebates funded by increased motor vehicle registration fees ($5 to $10 for new vehicles); the Commission on Women, Children and Seniors merged with the Commission on Equity and Opportunity into a single commission with six subcommissions

Municipal aid and fiscal provisions maintain Payment in Lieu of Taxes reimbursements ($54.9M for state property, $109.9M for private tax-exempt property), Municipal Revenue Sharing ($36.8M), and Municipal Stabilization Grants ($38.0M/$38.3M); capital base tax phased out by January 1, 2024; angel investor tax credit expanded to $500,000 per investor and $5 million aggregate annually through 2024; remote seller sales tax nexus threshold reduced from $250,000 to $100,000; and fund transfers include $85 million in General Fund revenue shifted from FY2020 to FY2021