Gov. Lamont Signs 3 New Bills Into Law: What You Need To Know

CONNECTICUT — Gov. Ned Lamont recently signed three new laws into the books.

One of the laws prevents thousands of Connecticut residents from being double taxed during the coronavirus pandemic if they worked remotely despite their employer being in another state.

Another law prohibits discrimination based on hairstyles in the workplace and the other law promotes the creation of data centers across the state.

The CROWN Act

The CROWN Act, which stands for “Creating a Respectful and Open World for Natural Hair,” prohibits workplace discrimination based on hairstyles that are commonly associated with people of color, such as afros, Bantu knots, braids, cornrows, dreadlocks and twists.

A 2019 study found that Black women are 80 percent more likely to alter their natural hair to accommodate social norms or work expectations and 1.5 times more likely to be sent home from work because of their hairstyles.

“When a Black man or woman shows up for a job interview or to work, they should never be judged based on their hairstyle," Lamont said. "Their work product, commitment, dedication, and work ethic should be the sources of their success.

Commissioner Vannessa Dorantes, the first Black commissioner of the Connecticut Department of Children and Families, submitted testimony saying, “Personally, I have had to devote too much time in decisions related to hairstyle choice and its effects on how I would be received. Negative perceptions do not change the skills I possess or the boundless potential in developing young people. However, it becomes all too real when discrimination of this kind occurs.”

New law promotes development of data centers in Connecticut

The law allows the state Department of Economic and Community Development to enter into agreements to provide tax incentives to “qualified data centers” in the state that make a minimum investment.

Specifically, the bill provides for sales and use tax exemptions for certain goods and services purchased or used by the data center and property tax exemptions for certain property and equipment used by the data center.

Under the bill, the state may enter into tax incentive agreements with qualified data centers for 20- or 30-year terms, depending on the size and location of the data center.

To be eligible, a data center must agree to make a “qualified" investment of at least $50 million and up to $200 million depending on its location.

What qualifies as a data center?

The bill says that a data center is a facility that is developed, acquired, constructed, rehabilitated, renovated, repaired or operated, to house a group of networked computer servers in one location or multiple contiguous locations to centralize the storage, management and dissemination of data and information pertaining to a particular business, classification or body of knowledge.

Lamont said in a statement, “Data centers are the backbone of the digital age, and with this growing need we are witnessing a significant period of national growth to build these infrastructures and create the corresponding jobs that support their operations. Connecticut needs to get in the game and bring this industry to our state."

Currently, there are 11 data centers in Connecticut.

Tax fairness during the coronavirus pandemic

Lamont said thousands of residents had to work remotely during the pandemic out of necessity and they "should be protected against paying a penny in extra taxes last year as a result."

The Hartford Courant reported there are about 110,000 Connecticut residents who typically commute to New York and Massachusetts for work. The new law would prevent these residents from being double taxed during the pandemic.

"For the 2020 income year only, any Connecticut resident paying nonresident income taxes to certain other states while working remotely during the COVID-19 pandemic is allowed a credit against their Connecticut personal income tax for such nonresident taxes paid," the Office of Fiscal Analysis said. "If the credit did not apply, Connecticut residents would owe approximately $300 million in additional personal income tax payments for the 2020 income year."

The new law also provides assistance to families in need and repeals liens on the property of public assistance recipients. This change will result in a $12 million annual loss of revenue for the state's general fund. This impacts about 1,300 Connecticut residents each year, the Courant reported.