Sec. 12-7c. Report on the overall incidence of certain taxes.
Sec. 12-7d. Report on the state tax gap.
Sec. 12-7e. Tax revenue sourcing and posting of list.
Sec. 12-18b. Grants in lieu of taxes for certain property.
Sec. 12-34f. Identified prescription drugs. Definitions.
Sec. 12-7c. Report on the overall incidence of certain taxes. (a)(1) The Commissioner of Revenue Services shall, on or before December 15, 2023, and biennially thereafter, submit to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, and post on the department's Internet web site a report on the overall incidence of the following:
(A) For the report due in the 2025 calendar year and quadrennially thereafter, the personal income tax, the affected business entity tax, sales and excise taxes, the corporation business tax, property tax and any other tax that generated at least one hundred million dollars in the most recent fiscal year prior to the submission of each report, for each of the most recent ten tax years for which complete data are available; and
(B) For the report due in the 2027 calendar year and quadrennially thereafter, the personal income tax, the affected business entity tax, sales and excise taxes and the corporation business tax, for each of the most recent ten tax years for which complete data are available.
(2) The report shall include incidence projections for each such tax and shall present information on the distribution of the tax burden as follows:
(A) For individuals:
(i) Income classes, including income distribution and population distribution expressed for (I) every ten percentage points, (II) the top five per cent of all income taxpayers, (III) the top one per cent of all income taxpayers, and (IV) the top one-half of one per cent of all income taxpayers;
(ii) For each income class, the percentage of taxpayers who (I) are homeowners, (II) are single, (III) are married, (IV) are seniors, or (V) have children;
(iii) Effective tax rates by population distribution expressed as state taxes compared to local taxes;
(iv) Effective tax rates by population distribution expressed as taxes imposed on businesses compared to taxes imposed on individuals; and
(v) Other appropriate taxpayer characteristics, as determined by said commissioner.
(B) For businesses:
(i) Business size as established by gross receipts;
(ii) Legal organization; and
(iii) Industry by NAICS code.
(3) In addition to the information required under subdivision (2) of this subsection, the report shall include the following in the years in which such tax is required to be included under subdivision (1) of this subsection:
(A) For the personal income tax, information on the distribution of the property tax credit under section 12-704c, the earned income tax credit under section 12-704e, the affected business entity tax credit under section 12-699 and any other modification against the personal income tax that resulted in a revenue loss to the state of at least twenty-five million dollars in the most recent fiscal year prior to the submission of each report. Each such distribution shall be expressed for (i) every ten percentage points, (ii) the top five per cent of all income taxpayers, (iii) the top one per cent of all income taxpayers, and (iv) the top one-half per cent of all income taxpayers;
(B) For property tax, to the extent available, information on the distribution of residential and commercial property and for residential property, the distribution of homeowners and renters; and
(C) For any other tax other than the personal income tax or property tax that generated at least one hundred million dollars in the most recent fiscal year prior to the submission of each report, information on the distribution of any modification against such tax that resulted in a revenue loss to the state of at least twenty-five million dollars in the most recent fiscal year prior to the submission of each report. Each such distribution shall be expressed for (i) every ten percentage points, (ii) the top five per cent of all taxpayers paying such tax, (iii) the top one per cent of all taxpayers paying such tax, and (iv) the top one-half per cent of all taxpayers paying such tax.
(b) The Commissioner of Revenue Services may enter into a contract with any public or private entity for the purpose of preparing the report required pursuant to subsection (a) of this section, provided, if the commissioner enters into such contract, the commissioner shall include in such report the resources that the commissioner deems necessary to allow the Department of Revenue Services to prepare such report in-house.
(P.A. 13-247, S. 330; June Sp. Sess. P.A. 15-5, S. 123; May Sp. Sess. P.A. 16-3, S. 192; June Sp. Sess. P.A. 17-2, S. 108; P.A. 19-117, S. 92; P.A. 22-118, S. 460; P.A. 23-204, S. 375; P.A. 25-168, S. 388.)
History: P.A. 13-247 effective July 1, 2013; June Sp. Sess. P.A. 15-5 changed deadline for incidence report from December 31, 2014, and biennially thereafter, to February 15, 2017, and biennially thereafter, effective June 30, 2015; May Sp. Sess. P.A. 16-3 amended Subsec. (a) by changing deadline for incidence report from February 15, 2017, and biennially thereafter, to February 15, 2018, and biennially thereafter, and making a technical change, effective June 2, 2016; June Sp. Sess. P.A. 17-2 amended Subsec. (a) by replacing “February 15, 2018” with “February 15, 2020”, effective October 31, 2017; P.A. 19-117 amended Subsec. (a) by replacing “2020” with “2022”, effective June 26, 2019; P.A. 22-118 amended Subsec. (a) by replacing “February 15, 2022” with “December 15, 2023”, adding provisions re incidence report for each of the most recent 10 tax years for which complete data are available and incidence projections for each tax, and requiring, for individuals, tax burden distribution information for the top 5 and the top 1 per cent of all income taxpayers, effective July 1, 2022; P.A. 23-204 substantially revised Subsec. (a) re taxes and information to be included in tax incidence report and amended Subsec. (b) by adding proviso re inclusion in report of resources needed for in-house preparation of report, effective July 1, 2023; P.A. 25-168 amended Subsec. (a) by redesignating provision re posting of incidence report as Subdiv. (1), redesignating provision re taxes to be included in incidence report as Subpara. (A) and specifying that said taxes be included in incidence report due in 2025 calendar year and quadrennially thereafter, adding new Subpara. (B) re taxes to be included in incidence report due in 2027 calendar year and quadrennially thereafter, redesignating existing Subdivs. (1) and (2) as Subdivs. (2) and (3), and making conforming changes in redesignated Subdiv. (3), effective June 30, 2025.
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Sec. 12-7d. Report on the state tax gap. (a) The Commissioner of Revenue Services shall biennially:
(1) Estimate the state tax gap and develop an overall strategy to promote compliance and discourage tax avoidance. Such estimate shall include an analysis of income distribution and population distribution expressed for (A) every ten percentage points, (B) the top five per cent of all income taxpayers, (C) the top one per cent of all income taxpayers, and (D) the top one-half of one per cent of all income taxpayers. As used in this section, “tax gap” means the difference between taxes and fees owed under full compliance with all state tax laws and the state taxes and fees voluntarily paid, where such difference may be due to a failure to file taxes, underreporting of tax liability or not paying all taxes and fees owing;
(2) Evaluate the specific staffing needs of the Department of Revenue Services to implement such overall strategy and reduce the state tax gap and determine the progress made, if any, towards filling such staffing needs; and
(3) Conduct (A) a cost benefit analysis of each major tax compliance initiative undertaken by the department in the preceding fiscal year, including tax amnesty programs, and (B) an analysis of audit rates, by income level, undertaken by the department in the preceding fiscal year.
(b) On or before December 15, 2026, and biennially thereafter, the commissioner shall submit a report, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding and appropriations. Such report shall be posted on the Department of Revenue Service's Internet web site and shall include (1) the tax gap estimate and analysis and the compliance strategy developed under subdivision (1) of subsection (a) of this section and any information supporting the amount of the tax gap estimate, (2) a summary of the evaluation and determination of the department's staffing needs under subdivision (2) of subsection (a) of this section, (3) the findings of the analyses conducted under subdivision (3) of subsection (a) of this section, and (4) an update of the plan set forth in subsection (c) of this section.
(c) On or before July 1, 2025, the commissioner shall post on the department's Internet web site a plan that includes the department's measurable goals for closing the tax gap, specific strategies to achieve such goals and a timetable to measure progress towards closing the tax gap.
(P.A. 23-204, S. 374; P.A. 25-168, S. 387.)
History: P.A. 23-204 effective July 1, 2023; P.A. 25-168 amended Subsec. (a) by replacing “annually” with “biennially”, amended Subsec. (b) by changing deadline for report from December 15, 2024, and annually thereafter to December 15, 2026, and biennially thereafter and adding Subdiv. (4) re update of plan set forth in Subsec. (c), and amended Subsec. (c) by replacing “publish” with “post on the department's Internet web site” re plan and making a conforming change, effective June 30, 2025.
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Sec. 12-7e. Tax revenue sourcing and posting of list. Commencing July 1, 2025, the Commissioner of Revenue Services shall track and record the source of the revenue received by the state each fiscal year from the tax imposed under chapters 208, 219 and 229, for the purpose of accurately and fairly attributing to each municipality revenue received from each such tax. The commissioner shall determine the sourcing method for the revenue from the tax imposed under said chapters, provided the revenue from the taxes imposed under chapters 208 and 219 is sourced to each municipality in which the taxpayer has an office or facility in the state and the revenue from the tax imposed under chapter 229 from earned income shall be sourced, to the extent possible, to the municipality in which the employer's office or facility is located, for the employees who work primarily at such location. Taxpayers paying a tax specified in this subsection shall provide disaggregated information and such other data the commissioner requests to carry out the provisions of this section. On or before October 31, 2026, and annually thereafter, the commissioner shall post on the Department of Revenue Services' Internet web site a list of all municipalities and the amount of revenue from each such tax attributed to the municipality for the applicable fiscal year.
(P.A. 25-168, S. 391.)
History: P.A. 25-168 effective June 30, 2025.
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Sec. 12-15. Limitations on inspection or disclosure of tax returns or return information. Exceptions. Penalty. (a) No officer or employee, including any former officer or former employee, of the state or of any other person who has or had access to returns or return information in accordance with subdivision (12) of subsection (b) of this section shall disclose or inspect any return or return information, except as provided in this section.
(b) The commissioner may disclose:
(1) Returns or return information to (A) an authorized representative of another state agency or office, upon written request by the head of such agency or office, when required in the course of duty or when there is reasonable cause to believe that any state law is being violated, or (B) an authorized representative of an agency or office of the United States, upon written request by the head of such agency or office, when required in the course of duty or when there is reasonable cause to believe that any federal law is being violated, provided no such agency or office shall disclose such returns or return information, other than in a judicial or administrative proceeding to which such agency or office is a party pertaining to the enforcement of state or federal law, as the case may be, in a form which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer except that the names and addresses of jurors or potential jurors and the fact that the names were derived from the list of taxpayers pursuant to chapter 884 may be disclosed by the Judicial Branch;
(2) Returns or return information to the Auditors of Public Accounts, when required in the course of duty under chapter 23;
(3) Returns or return information to tax officers of another state or of a Canadian province or of a political subdivision of such other state or province or of the District of Columbia or to any officer of the United States Treasury Department or the United States Department of Health and Human Services, authorized for such purpose in accordance with an agreement between this state and such other state, province, political subdivision, the District of Columbia or department, respectively, when required in the administration of taxes imposed under the laws of such other state, province, political subdivision, the District of Columbia or the United States, respectively, and when a reciprocal arrangement exists;
(4) Returns or return information in any action, case or proceeding in any court of competent jurisdiction, when the commissioner or any other state department or agency is a party, and when such information is directly involved in such action, case or proceeding;
(5) Returns or return information to a taxpayer or its authorized representative, upon written request for a return filed by or return information on such taxpayer;
(6) Returns or return information to a successor, receiver, trustee, executor, administrator, assignee, guardian or guarantor of a taxpayer, when such person establishes, to the satisfaction of the commissioner, that such person has a material interest which will be affected by information contained in such returns or return information;
(7) Information to the assessor or an authorized representative of the chief executive officer of a Connecticut municipality, when the information disclosed is limited to (A) a list of real or personal property that is or may be subject to property taxes in such municipality, or (B) a list containing the name of each person who is issued any license, permit or certificate which is required, under the provisions of this title, to be conspicuously displayed and whose address is in such municipality;
(8) Real estate conveyance tax return information or controlling interest transfer tax return information to the town clerk or an authorized representative of the chief executive officer of a Connecticut municipality to which the information relates;
(9) Estate tax returns and estate tax return information to the Probate Court Administrator or to the court of probate for the district within which a decedent resided at the date of the decedent's death, or within which the commissioner contends that a decedent resided at the date of the decedent's death or, if a decedent died a nonresident of this state, in the court of probate for the district within which real estate or tangible personal property of the decedent is situated, or within which the commissioner contends that real estate or tangible personal property of the decedent is situated;
(10) Returns or return information to the (A) Secretary of the Office of Policy and Management for purposes of subsection (b) of section 12-7a, and (B) Office of Fiscal Analysis for purposes of, and subject to the provisions of, subdivision (2) of subsection (f) of section 12-7b;
(11) Return information to the Jury Administrator or Clerk of the United States District Court for the District of Connecticut, when the information disclosed is limited to the names, addresses, federal Social Security numbers and dates of birth, if available, of residents of this state, as defined in subdivision (1) of subsection (a) of section 12-701;
(12) Returns or return information to any person to the extent necessary in connection with the processing, storage, transmission or reproduction of such returns or return information, and the programming, maintenance, repair, testing or procurement of equipment, or the providing of other services, for purposes of tax administration;
(13) Without written request and unless the commissioner determines that disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation, returns and return information which may constitute evidence of a violation of any civil or criminal law of this state or the United States to the extent necessary to apprise the head of such agency or office charged with the responsibility of enforcing such law, in which event the head of such agency or office may disclose such return information to officers and employees of such agency or office to the extent necessary to enforce such law;
(14) Names and addresses of operators, as defined in section 12-407, to tourism districts, as defined in section 10-397;
(15) Names of each licensed dealer, as defined in section 12-285, and the location of the premises covered by the dealer's license;
(16) To a tobacco product manufacturer that places funds into escrow pursuant to the provisions of subsection (a) of section 4-28i, return information of a distributor licensed under the provisions of chapter 214 or chapter 214a, provided the information disclosed is limited to information relating to such manufacturer's sales to consumers within this state, whether directly or through a distributor, dealer or similar intermediary or intermediaries, of cigarettes, as defined in section 4-28h, and further provided there is reasonable cause to believe that such manufacturer is not in compliance with section 4-28i;
(17) Returns or return information to the State Elections Enforcement Commission, upon written request by said commission, when necessary to investigate suspected violations of state election laws;
(18) Returns or return information for purposes of, and subject to the conditions of, subsection (e) of section 5-240;
(19) To the extent allowable under federal law, return information to another state agency or to support a data request submitted through P20 WIN, established in section 10a-57g, in accordance with the policies and procedures of P20 WIN for the purposes of evaluation or research, provided the recipient of such data enters into a data sharing agreement pursuant to section 4-67aa if such recipient is not a state agency;
(20) Return information to the Connecticut Health Insurance Exchange pursuant to section 12-156; and
(21) Return information to the Treasurer pursuant to an agreement entered into under section 3-66d.
(c) Any federal returns or return information made available to the commissioner in accordance with a written agreement between the commissioner and the Internal Revenue Service concerning exchange of information for tax administration purposes, shall not be open to inspection by or disclosed to any individual or disclosed in any manner other than as permitted under the provisions of Section 6103 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended.
(d) (1) The commissioner may, upon request, verify whether or not any license, permit or certificate required under the provisions of this title to be conspicuously displayed has been issued by the commissioner to any particular person.
(2) The commissioner may make public the names and municipality of residence or postal district of persons entitled to tax refunds for purposes of notifying them when the commissioner, after reasonable effort and lapse of time, has been unable to locate such persons.
(e) The commissioner may refuse to open to inspection or disclose to any person any returns or return information made available to the commissioner by any tax officer of another state, a Canadian province or political subdivision of such other state or province or of the District of Columbia or by any officer of the United States Treasury Department or the United States Department of Health and Human Services in accordance with a written agreement between this state and such other state, province, political subdivision, the District of Columbia or department, respectively, which agreement provides that the disclosure of such returns or return information by the commissioner is prohibited. In addition, he may refuse to open to inspection or disclosure to any state or United States agency or office described in subdivision (1) of subsection (b) of this section, returns or return information unless such agency or office shall have:
(1) Established and maintained, to the satisfaction of the commissioner, a permanent system of standardized records with respect to any request, the reason for such request, and the date of such request made by or of it and any disclosure or inspection of returns or return information made by or to it;
(2) Established and maintained, to the satisfaction of the commissioner, a secure area or place in which such returns or return information shall be stored;
(3) Restricted, to the satisfaction of the commissioner, access to the returns or return information only to persons whose duties or responsibilities require access and to whom disclosure may be made under this section or by whom inspection may be made under this section;
(4) Provided such other safeguards which the commissioner prescribes as necessary or appropriate to protect the confidentiality of the returns or return information;
(5) Furnished a report to the commissioner, at such time and containing such information as the commissioner may prescribe, which describes the procedures established and utilized by such agency or office for ensuring the confidentiality of returns and return information required by this subsection; and
(6) Upon completion of use of such returns or return information, returned to the commissioner such returns or return information, along with any copies made therefrom, or makes such returns or return information undisclosable in such manner as the commissioner may prescribe and furnishes a written report to the commissioner identifying the returns or return information that were made undisclosable.
(f) Returns and return information shall, without written request, be open to inspection by or disclosure to: (1) Officers and employees of the Department of Revenue Services whose official duties require such inspection or disclosure for tax administration purposes; (2) officers or employees of an agency or office in accordance with subdivision (1) or (13) of subsection (b) of this section whose official duties require such inspection; and (3) officers or employees of any person in accordance with subdivision (12) of subsection (b) of this section, whose duties require such inspection or disclosure.
(g) Any person who violates any provision of this section shall be fined not more than one thousand dollars or imprisoned not more than one year, or both.
(h) For purposes of this section:
(1) “Return” means any tax or information return, declaration of estimated tax, claim for refund, license application, permit application, registration application or other application required by, or provided for or permitted under, the provisions of this or any other title which is filed with the commissioner by, on behalf of, or with respect to any person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists which are supplemental to, or part of, the return so filed.
(2) “Return information” means a taxpayer's identity, the nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax collected or withheld, tax underreportings, tax overreportings, or tax payments, whether the taxpayer's return was, is being, or will be examined or subjected to other investigation or processing, or any other data received by, recorded by, prepared by, furnished to, or collected by the commissioner with respect to a return or with respect to the determination of the existence, or possible existence, of liability of any person for any tax, penalty, interest, fine, forfeiture, or other imposition, or offense. “Return information” does not include data in a form which cannot be associated with, or otherwise identify, directly or indirectly, a particular taxpayer. Nothing in the preceding sentence, or in any other provision of law, shall be construed to require the disclosure of standards used or to be used for the selection of returns for examination, or data used or to be used for determining such standards or the disclosure of the identity of a confidential informant, whether or not a civil or criminal tax investigation has been undertaken or completed.
(3) “Disclosure” means the making known to any person, in any manner whatever, a return or return information.
(4) “Inspection” means any examination of a return or return information.
(5) “Tax administration” means the administration, management, conduct, direction and supervision of the execution and application of the tax laws of this state, and the development and formulation of tax policy relating to existing or proposed tax laws of this state, and includes assessment, collection, enforcement, litigation, publication and statistical gathering functions under such laws.
(1949 Rev., S. 1693; 1969, P.A. 538, S. 1; P.A. 77-382, S. 1, 2; P.A. 82-67, S. 1; P.A. 83-433, S. 1, 2; P.A. 84-479, S. 1, 2; P.A. 89-211, S. 20; P.A. 90-93; P.A. 91-102, S. 1, 2; P.A. 95-23; P.A. 97-165, S. 6, 16; 97-193, S. 4, 5; 97-200, S. 1; 97-243, S. 4, 67; P.A. 98-244, S. 1, 35; P.A. 99-121, S. 1, 28; P.A. 00-174, S. 51, 83; 00-196, S. 2; P.A. 01-2, S. 2, 4; June Sp. Sess. P.A. 01-6, S. 23, 85; June 30 Sp. Sess. P.A. 03-6, S. 238; P.A. 04-218, S. 12; P.A. 05-235, S. 12; 05-251, S. 65; June Sp. Sess. P.A. 05-3, S. 5, 36; P.A. 06-159, S. 4; P.A. 13-150, S. 2; P.A. 17-147, S. 20; June Sp. Sess. P.A. 21-2, S. 272; P.A. 23-46, S. 39; 23-204, S. 236, 301; P.A. 24-114, S. 7; 24-151, S. 91; P.A. 25-119, S. 6.)
History: 1969 act revised list of persons having access to data to include other officers and departments in the performance of official duties, removing limitation to officers and departments involved in assessing or collecting taxes, and included officers of U.S. treasury department and officers of other states in connection with federal taxes or other states' taxes; P.A. 77-382 added Subsec. (b) re disclosure of information re federal returns provided to commissioner; effect of P.A. 77-614 was to make “commissioner” refer to commissioner of revenue services rather than tax commissioner as previously, effective January 1, 1979; P.A. 82-67 combined in Sec. 12-15 references to limitations on disclosure of information obtained in examining records or returns of taxpayers in the course of duty, which limitations were previously included in Secs. 12-240, 12-426, 12-444 and 12-520, and which are deleted therefrom in P.A. 82-67; P.A. 83-433 inserted provision in Subsec. (a) allowing the commissioner or commissioner's attorney or agent to photocopy or microfilm certain tax information as necessary for administrative purposes; P.A. 84-479 amended Subsec. (a) so as to enable the commissioner to photocopy or microfilm tax records whenever necessary in the administration of state taxes, without limitation related to the specific purposes for disclosure as allowed under this section; P.A. 89-211 clarified reference to the Internal Revenue Code of 1986; P.A. 90-93 amended Subsec. (a) so as to provide with respect to each type of disclosure allowed that it applies to returns or return information, or to returns only, as in the case of disclosure to a successor, receiver, trustee, etc., added Subsec. (c) allowing disclosure as necessary for certain verification by the commissioner, in the processing of returns or return information or for purposes of tax administration and added Subsec. (d) defining “return”, “return information” and “disclosure”; P.A. 91-102 added Subsec. (a)(7) and (8) re information to municipal assessors and re information to town clerks, and added Subsec. (c)(3) re nondisclosure of certain information from other jurisdictions; P.A. 95-23 added prohibition on disclosure of confidential taxpayer information by former state employees and current and former employees of private contractors having access to returns and return information and required secure storage of information and return to the department; P.A. 97-165 added Subsec. (a)(9) re estate tax return and return information to the probate court and probate court administrator, effective July 1, 1997; P.A. 97-193 added Subsec. (a)(10) re return and return information to the Secretary of the Office of Policy and Management, effective June 24, 1997, and applicable to income years commencing on or after January 1, 1998; P.A. 97-200 amended Subsec. (a)(1) by specifying that names and addresses of jurors or potential jurors and fact that names were derived from list of taxpayers may be disclosed to judicial branch, and by adding Subdiv. (11) re return information disclosed to jury administrator of residents of state; P.A. 97-243 amended Subsec. (a) to allow disclosure to an authorized representative of a state agency and the chief executive officer of a municipality instead of the assessor or the town clerk, added Subsec. (c)(4) allowing the commissioner to voluntarily disclose information to another state agency or agency of the federal government when it is believed that a state or federal law is broken, and amended definition of “return” in Subsec. (e)(1), effective July 1, 1997; P.A. 98-244 reorganized section and added provisions re authorized representative of a municipality and of an agency or office of the United States, effective June 8, 1998; P.A. 99-121 amended Subsec. (b) to allow the department to disclose tax return information to a successor that has a material interest which is affected by the information contained in the return, effective June 3, 1999; P.A. 00-174 amended Subsec. (a) by making a technical change and added Subsec. (b)(14) re information which may be provided to tourism districts and making a technical change, effective May 26, 2000; P.A. 00-196 made a technical change in Subsec. (a); P.A. 01-2 added Subsec. (b)(15) re disclosure of names and locations of cigarette dealers, effective March 30, 2001; June Sp. Sess. P.A. 01-6 amended Subsec. (d) to designate existing provisions as Subdiv. (1), making a technical change for purposes of gender neutrality therein, and to add new Subdiv. (2) re publication of information about persons entitled to tax refunds, effective July 1, 2001; June 30 Sp. Sess. P.A. 03-6 made a technical change in Subsec. (b)(7) and changed section reference for tourism districts in Subsec. (b)(14), effective August 20, 2003; P.A. 04-218 added Subsec. (b)(16) re disclosure of return information of certain tobacco distributors, effective June 8, 2004; P.A. 05-235 added new Subdiv. In Subsec. (b), designated as (18), re disclosure of returns or return information to State Elections Enforcement Commission when necessary to investigate suspected violations of state election laws, effective July 1, 2005; P.A. 05-251 added Subsec. (b)(17) re disclosure of returns or return information for purposes of Sec. 12-217z, effective June 30, 2005, and applicable to income years commencing January 1, 2005; June Sp. Sess. P.A. 05-3 amended Subsec. (b)(17) to provide that a copy of the return filed with commissioner shall not be included, and changed effective date of P.A. 05-251, S. 65 to July 1, 2005, effective June 30, 2005; P.A. 06-159 amended Subsec. (b)(10) by designating provision re disclosure to secretary as Subpara. (A) and adding Subpara. (B) re disclosure to Office of Fiscal Analysis for certain purposes, effective July 1, 2006; P.A. 13-150 amended Subsec. (b) by adding Subdiv. (19) re disclosure of returns or return information for purposes of Sec. 5-240(e), effective June 25, 2013; P.A. 17-147 amended Subsec. (b)(12) by deleting “pursuant to regulations adopted by the commissioner,”, effective July 7, 2017; June Sp. Sess. P.A. 21-2 amended Subsec. (b) by adding Subdiv. (20) re disclosure of return information to another state agency, to support a data request through CP20 WIN or pursuant to a data sharing agreement; P.A. 23-46 amended Subsec. (b)(11) by adding disclosure of return information to the Clerk of the United States District Court for the District of Connecticut, effective June 13, 2023; P.A. 23-204 amended Subsec. (b) by deleting former Subdiv. (17) re disclosure of returns or return information for purposes of Sec. 12-217z and redesignating existing Subdivs. (18) to (20) as Subdivs. (17) to (19), effective July 1, 2023, and further amended Subsec. (b) by adding Subdiv. 21, codified by the Revisors as Subdiv. (20), re information disclosure to Connecticut Health Insurance Exchange, effective January 1, 2024; P.A. 24-114 amended Subsec. (b) by adding Subdiv. (21) re disclosure of return information to the Treasurer, effective June 4, 2024; P.A. 24-151 made technical changes in Subsecs. (b) and (e); P.A. 25-119 replaced references to CP20 WIN with P20 WIN in Subsec. (b)(19), effective July 1, 2025.
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Sec. 12-18b. Grants in lieu of taxes for certain property. (a) For the purposes of this section:
(1) “College and hospital property” means all real property described in subsection (a) of section 12-20a;
(2) “Equalized net grand list per capita” means the grand list of a municipality upon which taxes were levied for the general expenses of such municipality three years prior to the fiscal year in which a grant under this section is to be paid, equalized in accordance with the provisions of section 10-261a and divided by the total population of such municipality;
(3) “Municipality” means any town, city, borough, consolidated town and city and consolidated town and borough;
(4) “State, municipal or tribal property” means all real property described in subsection (a) of section 12-19a;
(5) “Tier one municipality” means a municipality with an equalized net grand list per capita of less than one hundred thousand dollars;
(6) “Tier two municipality” means a municipality with an equalized net grand list per capita of one hundred thousand dollars to two hundred thousand dollars; and
(7) “Tier three municipality” means a municipality with an equalized net grand list per capita of greater than two hundred thousand dollars.
(b) Notwithstanding the provisions of sections 12-19a and 12-20a, on or before September thirtieth, annually, all funds appropriated for state grants in lieu of taxes shall be payable to municipalities and fire districts pursuant to the provisions of this section. On or before January first, annually, the Secretary of the Office of Policy and Management shall determine the amount due, as a state grant in lieu of taxes, to each municipality and fire district in this state wherein college and hospital property is located and to each municipality and fire district in this state wherein state, municipal or tribal property, except that which was acquired and used for highways and bridges, but not excepting property acquired and used for highway administration or maintenance purposes, is located. Such determination shall be calculated based on assessed values provided to the Office of Policy and Management prior to the preceding April first, pursuant to section 12-19b.
(1) The grant payable to any municipality or fire district for state, municipal or tribal property under the provisions of this section in the fiscal year ending June 30, 2022, and each fiscal year thereafter, shall be equal to the total of:
(A) One hundred per cent of the property taxes that would have been paid with respect to any facility designated by the Commissioner of Correction, on or before August first of each year, to be a correctional facility administered under the auspices of the Department of Correction or a juvenile residential center under direction of the Judicial Branch that was used for incarcerative purposes during the preceding fiscal year. If a list containing the name and location of such designated facilities and information concerning their use for purposes of incarceration during the preceding fiscal year is not available from the Secretary of the State on August first of any year, the Commissioner of Correction shall, on said date, certify to the Secretary of the Office of Policy and Management a list containing such information;
(B) One hundred per cent of the property taxes that would have been paid with respect to that portion of the John Dempsey Hospital located at The University of Connecticut Health Center in Farmington that is used as a permanent medical ward for prisoners under the custody of the Department of Correction. Nothing in this section shall be construed as designating any portion of The University of Connecticut Health Center John Dempsey Hospital as a correctional facility;
(C) One hundred per cent of the property taxes that would have been paid on any land designated within the 1983 Settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation on or after June 8, 1999;
(D) One hundred per cent of the property taxes that would have been paid with respect to the property and facilities owned by the Connecticut Port Authority;
(E) Subject to the provisions of subsection (c) of section 12-19a, sixty-five per cent of the property taxes that would have been paid with respect to the buildings and grounds comprising Connecticut Valley Hospital and Whiting Forensic Hospital in Middletown;
(F) With respect to any municipality in which more than fifty per cent of the property is state-owned real property, one hundred per cent of the property taxes that would have been paid with respect to such state-owned property;
(G) Forty-five per cent of the property taxes that would have been paid with respect to all municipally owned airports; except for the exemption applicable to such property, on the assessment list in such municipality for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable. The grant provided pursuant to this section for any municipally owned airport shall be paid to any municipality in which the airport is located, except that the grant applicable to Sikorsky Airport shall be paid one-half to the town of Stratford and one-half to the city of Bridgeport;
(H) One hundred per cent of the property taxes that would have been paid with respect to any land designated within the 1983 Settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation prior to June 8, 1999, or taken into trust by the federal government for the Mohegan Tribe of Indians of Connecticut, provided the real property subject to this subparagraph shall be the land only, and shall not include the assessed value of any structures, buildings or other improvements on such land; and
(I) Forty-five per cent of the property taxes that would have been paid with respect to all other state-owned real property.
(2) The grant payable to any municipality or fire district for college and hospital property under the provisions of this section in the fiscal year ending June 30, 2017, and each fiscal year thereafter, shall be equal to the total of seventy-seven per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, would have been paid with respect to college and hospital property on the assessment list in such municipality or fire district for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable.
(c) The Secretary of the Office of Policy and Management shall list municipalities, boroughs and fire districts based on the equalized net grand list per capita. Boroughs and fire districts shall have the same equalized net grand list per capita as the town, city, consolidated town and city or consolidated town and borough in which such borough or fire district is located.
(d) For the fiscal year ending June 30, 2026, and each fiscal year thereafter:
(1) The total amount of the grants paid to a municipality or fire district pursuant to the provisions of this subsection shall not be lower than the total amount of the payment in lieu of taxes grants received by such municipality or fire district for the fiscal year ending June 30, 2021.
(2) If the total of grants payable to each municipality and fire district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection for a fiscal year:
(A) Each tier one municipality shall receive fifty-three per cent of the grant amount payable to such municipality as calculated under subsection (b) of this section;
(B) Each tier two municipality shall receive forty-three per cent of the grant amount payable to such municipality as calculated under subsection (b) of this section; and
(C) Each tier three municipality shall receive thirty-three per cent of the grant amount payable to such municipality as calculated under subsection (b) of this section.
(3) Each municipality designated as an alliance district pursuant to section 10-262u or in which more than fifty per cent of the property is state-owned real property shall be classified as a tier one municipality.
(4) Each fire district shall receive the same percentage of the grant amount payable to the municipality in which it is located.
(5) (A) If the total of grants payable to each municipality and fire district in accordance with the provisions of subsection (b) of this section exceeds the amount appropriated for the purposes of said subsection, but such appropriated amount exceeds the amount required for grants payable to each municipality and fire district in accordance with the provisions of subdivisions (1) to (4), inclusive, of this subsection, the amount of the grant payable to each municipality and fire district shall be increased proportionately.
(B) If the total of grants payable to each municipality and fire district in accordance with the provisions of subdivisions (1) to (4), inclusive, of this subsection exceeds the amount appropriated for the purposes of said subdivisions, the amount of the grant payable to each municipality and fire district shall be reduced proportionately, except that no grant shall be reduced below the amount set forth in subdivision (1) of this subsection.
(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section and sections 12-19b and 12-20b:
(1) The grant payable to any municipality or fire district with respect to a campus of the United States Department of Veterans Affairs Connecticut Healthcare Systems shall be one hundred per cent; and
(2) For any municipality receiving payments under section 15-120ss, property located in such municipality at Bradley International Airport shall not be included in the calculation of any state grant in lieu of taxes pursuant to this section.
(f) For purposes of this section, any real property that is owned by The University of Connecticut Health Center Finance Corporation established pursuant to the provisions of sections 10a-250 to 10a-263, inclusive, or by one or more subsidiary corporations established pursuant to subdivision (13) of section 10a-254 and that is free from taxation pursuant to the provisions of section 10a-259 shall be deemed to be state-owned real property.
(g) Any amount due under this section to a district, as defined in section 7-324, located wholly within the town of Windham, shall be paid to the town of Windham.
(P.A. 15-244, S. 183; P.A. 16-146, S. 1; May Sp. Sess. P.A. 16-2, S. 43; May Sp. Sess. P.A. 16-3, S. 190; P.A. 18-86, S. 53; P.A. 21-3, S. 5; June Sp. Sess. P.A. 21-2, S. 445; P.A. 22-74, S. 18; 22-110, S. 36; P.A. 23-46, S. 1; 23-204, S. 76, 139; P.A. 25-168, S. 123; 25-174, S. 189.)
History: P.A. 15-244 effective July 1, 2016; P.A. 16-146 amended Subsec. (a) by adding Subdiv. (16) defining “mill rate”, amended Subsec. (b)(2)(A) by replacing “institution of higher education or general hospital facility” with “college and hospital property”, amended Subsec. (e) by adding “, except for any exemption applicable to any college and hospital property under the provisions of section 12-81,” in Subdiv. (1)(B), adding “, except for any exemption applicable to any state property under the provisions of section 12-81,” in Subdiv. (1)(C), and adding “and said subdivision” and replacing “that would have been paid on select college and hospital property” and “that would have been paid on select state property” with “pursuant to this subsection” in Subdiv. (2), and made technical changes, effective July 1, 2016; May Sp. Sess. P.A. 16-2 amended Subsec. (d) by replacing “select payment in lieu of taxes account” with “Municipal Revenue Sharing Fund established in section 4-66p” in provision re additional payment in lieu of taxes grant in Subdiv. (2) and reducing grant amounts, and made technical changes, effective July 1, 2016; May Sp. Sess. P.A. 16-3 amended Subsec. (e) by redesignating existing Subdiv. (1) as Subdiv. (2) and amending same by replacing “June 30, 2018” with “June 30, 2020”, adding new Subdiv. (1) re grants payable to each municipality and district for fiscal years ending June 30, 2018, and June 30, 2019, and redesignating existing Subdiv. (2) as Subdiv. (3) and amending same by making a conforming change, effective July 1, 2016; P.A. 18-86 amended Subsec. (b)(1)(D) by adding reference to Whiting Forensic Hospital, effective June 4, 2018; P.A. 21-3 substantially revised section re calculation of payment of grants in lieu of taxes when total of grants payable under Subsec. (b) exceeds amount appropriated for a fiscal year, effective July 1, 2021; June Sp. Sess. P.A. 21-2 amended Subsec. (b) by adding references to district, and replacing “June 30, 2017” with “June 30, 2022”, adding new Subpara. (D) re property and facilities owned by Connecticut Port Authority, redesignating existing Subparas. (D) to (H) as Subparas. (E) to (I) and replacing “Forty-five” with “One hundred” in redesignated Subdiv. (1)(H), amended Subsec. (d) by replacing references to amount of grant paid with references to total amount of grants paid in Subdiv. (1) and making a technical change in Subdiv. (2), and amended Subsec. (e)(3) by deleting Subpara. (A) re payment from annual appropriation and Subpara. (B) designator, effective July 1, 2021; P.A. 22-74 amended Subsec. (a) by deleting Subdiv. (2) defining “district” and redesignating existing Subdivs. (3) to (8) as Subdivs. (2) to (7), amended Subsec. (b) by adding “on or before May thirtieth, annually,”, and specifying process for calculating determination of amount due, and changed references to “district” or “districts” to “fire district” or “fire districts”, effective July 1, 2022; P.A. 22-110 amended Subsec. (f) by replacing “the John Dempsey Hospital” with “The University of Connecticut Health Center”; P.A. 23-46 amended Subsec. (a)(1)(A) by replacing “juvenile detention center” with “juvenile residential center” and replacing “Department of Children and Families” with “Judicial Branch”, effective June 13, 2023; P.A. 23-204 amended Subsec. (b) by replacing “May thirtieth” with “September thirtieth”, amended Subsec. (d)(2) by replacing reference to Subsec. (b) with reference to Subsecs. (b) and (e), and amended Subsec. (e) by adding reference to Secs. 12-19b and 12-20b, deleting reference to thirtieth day of September in Subdiv. (3), adding Subdivs. (4) to (6) re amounts due to Voluntown, Branford and New London, respectively, and making technical and conforming changes, effective June 12, 2023, and amended Subsec. (d)(2) by replacing “fifty” with “fifty-three” in Subpara. (A), replacing “forty” with “forty-three” in Subpara. (B) and replacing “thirty” with “thirty-three” in Subpara. (C), effective July 1, 2023; P.A. 25-168 added Subsec. (g) re Windham, effective July 1, 2025; P.A. 25-174 amended Subsec. (d) by replacing “June 30, 2022” with “June 30, 2026”, and replacing “subsections (b) and (e)” with “subsection (b)” in Subdiv. (2), and amended Subsec. (e) by deleting former Subdivs. (3) to (6) re amounts due to Bridgeport, Voluntown, Branford and New London, effective July 1, 2025.
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Sec. 12-34f. Identified prescription drugs. Definitions. For the purposes of this section and sections 12-34g and 12-34h:
(1) “Biological product” has the same meaning as provided in section 20-619;
(2) “Brand-name drug” means a drug that is produced or distributed in accordance with an original new drug application approved under 21 USC 355, as amended from time to time, but does not include an authorized generic drug as defined in 42 CFR 447.502, as amended from time to time;
(3) “Commissioner” means the Commissioner of Revenue Services;
(4) “Consumer price index” means the consumer price index, annual average, for all urban consumers: United States city average, all items, published by the United States Department of Labor, Bureau of Labor Statistics, or its successor, or, if the index is discontinued, an equivalent index published by a federal authority, or, if no such index is published, a comparable index published by the United States Department of Labor, Bureau of Labor Statistics;
(5) “Generic drug” means (A) a prescription drug product that is marketed or distributed in accordance with an abbreviated new drug application approved under 21 USC 355, as amended from time to time, (B) an authorized generic drug as defined in 42 CFR 447.502, as amended from time to time, or (C) a drug that entered the market before calendar year 1962 that was not originally marketed under a new prescription drug product application;
(6) “Identified prescription drug” means (A) a brand-name drug or biological product to which all exclusive marketing rights granted under the federal Food, Drug and Cosmetic Act, Section 351 of the federal Public Health Service Act and federal patent law have expired for at least twenty-four months, including any drug-device combination product for the delivery of the brand-name drug or biological product, or (B) a generic drug or interchangeable biological product;
(7) “Interchangeable biological product” has the same meaning as provided in section 20-619;
(8) “Person” has the same meaning as provided in section 12-1;
(9) “Pharmaceutical manufacturer” means a person that manufactures a prescription drug and sells, directly or through another person, the prescription drug for distribution in this state;
(10) “Prescription drug” means a legend drug, as defined in section 20-571, approved by the federal Food and Drug Administration, or any successor agency, and prescribed by a health care provider to an individual in this state;
(11) “Reference price” means the wholesale acquisition cost, as defined in 42 USC 1395w-3a, as amended from time to time, of (A) a brand-name drug or biological product (i) on January 1, 2025, if the patent for the brand-name drug or biological product expired on or before said date, or (ii) if the patent for the brand-name drug or biological product expires after January 1, 2025, on the date the patent for such brand-name drug or biological product expires, or (B) a generic drug or interchangeable biological product (i) on January 1, 2025, or (ii) if the generic drug or interchangeable biological product is first commercially marketed in the United States after January 1, 2025, on the date such generic drug or interchangeable biological product is first commercially marketed in the United States; and
(12) “Wholesale distributor” means a person, including, but not limited to, a repacker, own-label distributor, private-label distributor or independent wholesale drug trader, engaged in the wholesale distribution of prescription drugs.
(P.A. 25-168, S. 345.)
History: P.A. 25-168 effective July 1, 2025.
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Sec. 12-34g. Sale price limitations on identified prescription drugs. Penalties for noncompliance. Appeals. (a)(1) Notwithstanding any provision of the general statutes and except as provided in subdivision (2) of this subsection, no pharmaceutical manufacturer or wholesale distributor shall, on or after January 1, 2026, sell an identified prescription drug in this state at a price that exceeds the reference price for the identified prescription drug, adjusted for any increase in the consumer price index.
(2) A pharmaceutical manufacturer or wholesale distributor may, on or after January 1, 2026, sell an identified prescription drug in this state at a price that exceeds the reference price for the identified prescription drug, adjusted for any increase in the consumer price index, if the federal Secretary of Health and Human Services determines, pursuant to 21 USC 356e, as amended from time to time, that such identified prescription drug is in shortage in the United States.
(b) (1) Except as provided in subdivision (2) of this subsection, any pharmaceutical manufacturer or wholesale distributor that violates the provisions of subsection (a) of this section shall be liable to this state for a civil penalty. Such civil penalty shall be imposed, calculated and collected on a calendar year basis by the Commissioner of Revenue Services, and the amount of such civil penalty for a calendar year shall be equal to eighty per cent of the difference between:
(A) The revenue that the pharmaceutical manufacturer or wholesale distributor earned from all sales of the identified prescription drug in this state during the calendar year; and
(B) The revenue that the pharmaceutical manufacturer or wholesale distributor would have earned from all sales of the identified prescription drug in this state during the calendar year if the pharmaceutical manufacturer or wholesale distributor had sold such identified prescription drug at a price that did not exceed the reference price for such identified prescription drug, as such reference price is adjusted for any increase in the consumer price index.
(2) No pharmaceutical manufacturer or wholesale distributor of an identified prescription drug shall be liable to this state for the civil penalty imposed under subdivision (1) of this subsection unless the pharmaceutical manufacturer or wholesale distributor made at least two hundred fifty thousand dollars in total annual sales in this state for the calendar year for which such civil penalty would otherwise be imposed.
(c) (1) (A) For calendar years commencing on or after January 1, 2026, each pharmaceutical manufacturer or wholesale distributor that violated the provisions of subsection (a) of this section during any calendar year shall, not later than the first day of March immediately following the end of such calendar year:
(i) Pay to the commissioner the civil penalty imposed under subsection (b) of this section for such calendar year; and
(ii) File with the commissioner a statement for such calendar year in a form and manner, and containing all information, prescribed by the commissioner.
(B) A pharmaceutical manufacturer or wholesale distributor that is required to file the statement and pay the civil penalty pursuant to subparagraph (A) of this subdivision shall electronically file such statement and make such payment by electronic funds transfer in the manner provided by chapter 228g, irrespective of whether the pharmaceutical manufacturer or wholesale distributor would have otherwise been required to electronically file such statement or make such payment by electronic funds transfer under chapter 228g.
(2) If no statement is filed pursuant to subdivision (1) of this subsection, the commissioner may make such statement at any time thereafter, according to the best obtainable information and the prescribed form.
(d) The commissioner may examine the records of any pharmaceutical manufacturer or wholesale distributor that is subject to the civil penalty imposed under subsection (b) of this section as the commissioner deems necessary. If the commissioner determines from such examination that the pharmaceutical manufacturer or wholesale distributor failed to pay the full amount of such civil penalty, the commissioner shall bill such pharmaceutical manufacturer or wholesale distributor for the full amount of such civil penalty.
(e) (1) The commissioner may require each pharmaceutical manufacturer or wholesale distributor that is subject to the civil penalty imposed under subsection (b) of this section to keep such records as the commissioner may prescribe, and produce books, papers, documents and other data to provide or secure information pertinent to the enforcement and collection of such civil penalty.
(2) The commissioner, or the commissioner's authorized representative, may examine the books, papers, records and equipment of any person who is subject to the provisions of this section and may investigate the character of the business of such person to verify the accuracy of any statement made or, if no statement is made by such person, to ascertain and determine the amount of the civil penalty due under subsection (b) of this section.
(f) Any pharmaceutical manufacturer or wholesale distributor that is subject to the civil penalty imposed under subsection (b) of this section and aggrieved by any action of the commissioner under subdivision (2) of subsection (c) of this section or subsection (d) of this section may apply to the commissioner, in writing and not later than sixty days after the notice of such action is delivered or mailed to such pharmaceutical manufacturer or wholesale distributor, for a hearing, setting forth the reasons why such hearing should be granted and if such pharmaceutical manufacturer or wholesale distributor believes that such pharmaceutical manufacturer or wholesale distributor is not liable for such civil penalty or the full amount of such civil penalty, the grounds for such belief and the amount by which such pharmaceutical manufacturer or wholesale distributor believes such civil penalty should be reduced. The commissioner shall promptly consider each such application and may grant or deny the hearing requested. If the hearing request is denied, the commissioner shall immediately notify the pharmaceutical manufacturer or wholesale distributor. If the hearing request is granted, the commissioner shall notify the pharmaceutical manufacturer or wholesale distributor of the date, time and place for such hearing. After such hearing, the commissioner may make such order as appears just and lawful to the commissioner and shall furnish a copy of such order to the pharmaceutical manufacturer or wholesale distributor. The commissioner may, by notice in writing, order a hearing on the commissioner's own initiative and require a pharmaceutical manufacturer or wholesale distributor, or any other person who the commissioner believes to be in possession of relevant information concerning such pharmaceutical manufacturer or wholesale distributor, to appear before the commissioner or the commissioner's authorized agent with any specified books of account, papers or other documents for examination under oath.
(g) Any pharmaceutical manufacturer or wholesale distributor that is aggrieved by any order, decision, determination or disallowance of the commissioner made under subsection (f) of this section may, not later than thirty days after service of notice of such order, decision, determination or disallowance, take an appeal therefrom to the superior court for the judicial district of New Britain, which appeal shall be accompanied by a citation to the commissioner to appear before said court. Such citation shall be signed by the same authority and such appeal shall be returnable at the same time and served and returned in the same manner as is required in case of a summons in a civil action. The authority issuing the citation shall take from the appellant a bond or recognizance to this state, with surety, to prosecute the appeal to effect and to comply with the orders and decrees of the court. Such appeals shall be preferred cases, to be heard, unless cause appears to the contrary, at the first session, by the court or by a committee appointed by the court. Said court may grant such relief as may be equitable and, if the civil penalty was paid prior to the granting of such relief, may order the Treasurer to pay the amount of such relief. If the appeal was taken without probable cause, the court may tax double or triple costs, as the case demands and, upon all such appeals that are denied, costs may be taxed against such pharmaceutical manufacturer or wholesale distributor at the discretion of the court but no costs shall be taxed against this state.
(h) The commissioner, and any agent of the commissioner duly authorized to conduct any inquiry, investigation or hearing pursuant to this section, shall have power to administer oaths and take testimony under oath relative to the matter of inquiry or investigation. At any hearing ordered by the commissioner, the commissioner, or the commissioner's agent authorized to conduct such hearing and having authority by law to issue such process, may subpoena witnesses and require the production of books, papers and documents pertinent to such inquiry or investigation. No witness under any subpoena authorized to be issued under the provisions of this section shall be excused from testifying or from producing books, papers or documentary evidence on the ground that such testimony or the production of such books, papers or documentary evidence would tend to incriminate such witness, but such books, papers or documentary evidence so produced shall not be used in any criminal proceeding against such witness. If any person disobeys such process or, having appeared in obedience thereto, refuses to answer any pertinent question put to such person by the commissioner, or the commissioner's authorized agent, or to produce any books, papers or other documentary evidence pursuant thereto, the commissioner, or such agent, may apply to the superior court of the judicial district wherein the pharmaceutical manufacturer or wholesale distributor resides or wherein the business was conducted, or to any judge of such court if the same is not in session, setting forth such disobedience to process or refusal to answer, and such court or such judge shall cite such person to appear before such court or such judge to answer such question or to produce such books, papers or other documentary evidence and, upon such person's refusal to do so, shall commit such person to a community correctional center until such person testifies, but not for a period longer than sixty days. Notwithstanding the serving of the term of such commitment by any person, the commissioner may proceed in all respects with such inquiry and examination as if the witness had not previously been called upon to testify. Officers who serve subpoenas issued by the commissioner or under the commissioner's authority and witnesses attending hearings conducted by the commissioner pursuant to this section shall receive fees and compensation at the same rates as officers and witnesses in the courts of this state, to be paid on vouchers of the commissioner on order of the Comptroller from the proper appropriation for the administration of this section.
(i) The amount of any civil penalty unpaid under the provisions of this section may be collected under the provisions of section 12-35. The warrant provided under section 12-35 shall be signed by the commissioner or the commissioner's authorized agent. The amount of any such civil penalty shall be a lien on the real property of the pharmaceutical manufacturer or wholesale distributor from the last day of the month next preceding the due date of such civil penalty until such civil penalty is paid. The commissioner may record such lien in the records of any town in which the real property of such pharmaceutical manufacturer or wholesale distributor is situated, but no such lien shall be enforceable against a bona fide purchaser or qualified encumbrancer of such real property. When any civil penalty with respect to which a lien was recorded under the provisions of this subsection is satisfied, the commissioner shall, upon request of any interested party, issue a certificate discharging such lien, which certificate shall be recorded in the same office in which such lien was recorded. Any action for the foreclosure of such lien shall be brought by the Attorney General in the name of this state in the superior court for the judicial district in which the real property subject to such lien is situated, or, if such property is located in two or more judicial districts, in the superior court for any one such judicial district, and the court may limit the time for redemption or order the sale of such real property or make such other or further decree as the court judges equitable. The provisions of section 12-39g shall apply to all civil penalties imposed under this section.
(j) (1) Any officer or employee of a pharmaceutical manufacturer or wholesale distributor, who owes a duty to the pharmaceutical manufacturer or wholesale distributor to pay the civil penalty imposed under subsection (b) of this section on behalf of such pharmaceutical manufacturer or wholesale distributor, shall file a statement with the commissioner pursuant to subsection (c) of this section on behalf of such pharmaceutical manufacturer or wholesale distributor and keep records or supply information to the commissioner on behalf of such pharmaceutical manufacturer or wholesale distributor pursuant to this section. Any such officer or employee who wilfully fails, at the time required under this section, to pay such civil penalty, file such statement, keep such records or supply such information on behalf of such pharmaceutical manufacturer or wholesale distributor shall, in addition to any other penalty provided by law, be fined not more than one thousand dollars or imprisoned not more than one year, or both. Notwithstanding the provisions of section 54-193, no such officer or employee shall be prosecuted for a violation of the provisions of this subdivision committed on or after January 1, 2026, except within three years next after such violation is committed.
(2) Any officer or employee of a pharmaceutical manufacturer or wholesale distributor, who owes a duty to the pharmaceutical manufacturer or wholesale distributor to deliver or disclose to the commissioner, or the commissioner's authorized agent, any list, statement, return, account statement or other document on behalf of such pharmaceutical manufacturer or wholesale distributor, and who wilfully delivers or discloses to the commissioner, or the commissioner's authorized agent, any such list, statement, return, account statement or other document that such officer or employee knows to be fraudulent or false in any material matter shall, in addition to any other penalty provided by law, be guilty of a class D felony.
(3) No officer or employee of a pharmaceutical manufacturer or wholesale distributor shall be charged with an offense under both subdivisions (1) and (2) of this subsection in relation to the same civil penalty, but such officer or employee may be charged and prosecuted for both such offenses upon the same information.
(k) Each civil penalty imposed under subsection (b) of this section shall be deemed to constitute a civil fine or penalty within the meaning of 42 USC 1396b(w), as amended from time to time. No portion of any civil penalty imposed under subsection (b) of this section shall be waived under section 12-3a or any other applicable law. No tax credit shall be allowable against any civil penalty imposed under subsection (b) of this section.
(l) Not later than July 1, 2027, and annually thereafter, the commissioner shall prepare a list containing the name of each pharmaceutical manufacturer or wholesale distributor that violated subsection (a) of this section during the preceding calendar year. The commissioner shall make each such list publicly available.
(m) The commissioner may adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section.
(P.A. 25-168, S. 346.)
History: P.A. 25-168 effective July 1, 2025.
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Sec. 12-34h. Penalty for withdrawal of identified prescription drug from sale in state for purpose of avoiding penalty. Withdrawal notice requirement. (a) No pharmaceutical manufacturer or wholesale distributor of an identified prescription drug shall withdraw the identified prescription drug from sale in this state for the purpose of avoiding the civil penalty established in subsection (b) of section 12-34g.
(b) Any pharmaceutical manufacturer or wholesale distributor that intends to withdraw an identified prescription drug from sale in this state shall, at least one hundred eighty days before such withdrawal, send advance written notice to the Office of Health Strategy disclosing such pharmaceutical manufacturer's or wholesale distributor's intention.
(c) Any pharmaceutical manufacturer or wholesale distributor that violates the provisions of subsection (a) or (b) of this section shall be liable to this state for a civil penalty in the amount of five hundred thousand dollars.
(P.A. 25-168, S. 347.)
History: P.A. 25-168 effective July 1, 2025.
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