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PIACT 2017 legislative wrap-up
Resource kit 06006
By Sarah Coli, Esq.
It feels like only yesterday that the 2017 legislative session began, but it has actually been just over five months with the session coming to a whirlwind end on June 7, 2017. The Legislature ended the session in a flurry, with several of the last days of session continuing into the early morning hours in order to debate and pass priority legislation. It was in these final days that PIACT-priority legislation began to see increasing activity, with several bills being passed and subsequently signed into law.
Ride-hailing legislation
One of PIACT’s biggest priorities was legislation dealing with the regulation of transportation network companies. H.B.7126, An Act Regulating Transportation Network Companies and Taxicabs, was passed by the House on May 11, and went through several amendments and debates in the Senate before its passage on June 6. It was signed into law on June 19 as Public Act 17-140 and goes into effect Jan. 1, 2018.
The act requires that TNC drivers carry, either through their own personal auto policy or through the TNC policy, $50,000 for damages by reason of bodily injury to, or the death of, any one person; $100,000 for damages by reason of bodily injury or death per accident; and $25,000 for property damage during Stage 1 (when the driver is connected to the TNC network and is available to receive requests for prearranged rides). For Stages 2 and 3, which begin once the driver has accepted a prearranged ride and ends when the passenger exits the vehicle, the act requires $1 million combined single limit. During all stages, the driver also must have uninsured/underinsured motorist coverage of the state minimums.
PIACT had concerns with the previous draft of the legislation, which created insurance gaps by repealing the current insurance requirements for taxis and livery vehicles and replacing them with those for ride hailing, including the three-stage system. PIACT submitted testimony respectfully requesting that legislators revisit this provision to eliminate the gaps created when taxi and livery drivers engage in activities not covered by the TNC model, such as picking up street hails or being dispatched via radio to pick up passengers for hire. The version passed by both chambers removing these gaps by eliminating the insurance repeal and instead creating regulations to require any taxi owner or operator to use tiered rates when posting rates.
Increasing state minimum limits on personal auto policies
Connecticut mandatory limits for personal auto policies will increase as of Jan. 1, 2018. Public Act 17-114, An Act Increasing The Minimum Amount Of Insurance Coverage Required To Issue A Motor Vehicle Operator's License Or Certificate Of Motor Vehicle Registration, was signed by Gov. Dannel Malloy on June 16. Beginning Jan. 1, 2018, all automobile liability insurance policies delivered, issued for delivery, renewed, amended or endorsed in Connecticut must have at least $25,000 for injury or death of one person, $50,000 for damages by reason of bodily injury or death per accident and $25,000 for property damage. This increases the previous limits of $20,000, $40,000 and $10,000, respectively. By the nature of the statute, the uninsured/underinsured minimum limits also will increase to match the new 25/50 limits.
Task force to improve the insurance industry workforce
Special Act 17-10, An Act Establishing a Task Force to Study Methods of Developing, Expanding and Improving the Insurance Industry Workforce in This State, was signed into law on June 19. PIACT past President Augusto Russell, CIC, presented testimony to the Insurance and Real Estate Committee in March to applaud them taking up this issue that is recurring among PIACT members and encouraged them to consider the insight and experience an active agent would be able to provide in service of such a task force.
Paid family leave
S.B.1, An Act Concerning Earned Family and Medical Leave, received a favorable report on March 9 and was debated briefly in June before being passed temporarily by the Senate. It was not taken up by the House before the end of the session. There is a small chance it could be revisited during the special session this summer, but it is unlikely due to the large fiscal components attached to the proposal. The bill made several key changes in the state’s current FMLA and family violence leave law, including expanding coverage from private-sector employees with at least 75 employees to all employers with at least two employees; changing the maximum leave allowed from 16 weeks in a 24-month period to 12 weeks in a 12-month period; and eliminates an employer’s ability to require an employee taking FMLA leave to exhaust their paid time off. It created a Family and Medical Leave Compensation Program, which would be funded by a trust and would determine the eligibility of the employee for leave. The LCO projects that the start-up costs to the Department of Labor of implementing the FMLC program would be in excess of $10 million.
Budget and special session
The Legislature and Gov. Malloy were not able to come to an agreement on the 2018-19 biennium budget, forcing the Legislature into a special session this summer. The big issue for the session is closing the $317 million budget deficit. The Senate passed a mitigation bill that transferred money from off-budget accounts to close the deficit and guarantee certain state agencies receive the necessary funds to pay their obligations. This moving of funds would essentially deplete the state’s emergency reserve funds, leaving only $29.2 million in the emergency reserve, an amount equal to less than one-sixth of 1 percent of annual operating costs. The bill was sent to the House, but an agreement has not yet been reached.
One of the budget proposals currently being considered would substantially increase the licensing fees of insurance agents and brokers. The proposed fee increase, opposed by PIACT, would be charged annually, rather than every two years. The Connecticut Legislature expects the proposal to affect roughly 20,000 agents and brokers in Connecticut. PIACT will continue to monitor budget discussions and oppose any proposed increase to agent and broker licensing fees.
Crumbling foundations
Along with discussing the budget issues, the Legislature also will take up crumbling foundations issues during their special session. There was initially an amendment made by House Republicans to ensure that crumbling foundations was on the agenda for the special session. In response to the amendment, Rep. Tim Ackert, R-8, said House Majority Leader Matthew Ritter, D-1, assured everyone that the House would be taking up the crumbling foundation issue during the special session as part of the budget implementation and bond authorization processes. The amendment was then withdrawn. 6/17
