Hartford Business Journal

www.HartfordBusiness.com March 28, 2016 • Hartford Business Journal 5 TOP STORY OCC continues to press for public-private broadband models The Office of Consumer Counsel's fledgling and controversial State Broad- band Office isn't backing down from its push for deeper government involve- ment in facilitating the buildout of gigabit-speed Internet infrastructure. The office, which has drawn the ire of telecom providers for its efforts, released a report last week recommending the state legisla- ture to consider funding and tax incentives to support the buildout of last-mile connections to higher-speed broadband Internet, including fiber-to-the-premises (FTTP) — which the report said is increasingly recognized as the "ultimate platform for communications networks." The Broadband Office also wants the legislature to create an infra- structure bank, akin to the Connecticut Green Bank, to provide lower-cost financing options for municipalities to buildout affordable, high-speed Internet in underserved areas. Cities and towns could lease network ca- pacity to private carriers, raise property taxes in new service areas or employ other strategies to service that debt, the report said. The telecom industry responded to the report's proposals arguing they would cost the state too much and likely lead to tax increases. The report, "Opportunities for the State and Localities to Enable World-Class Broadband," was prepared by OCC's consultant CTC Tech- nology & Energy. It argues that, while Connecticut businesses and residents are rel- atively well served by Internet providers, and that incremental FTTP deployments by Comcast and Frontier should be commended, gaps remain across the state, and that the state's Internet infrastructure confers no discernible competitive advantage with other states. The report warned Connecticut could fall behind states like New York, which is investing $500 million to ensure every resident there has access to high-speed service by late 2018. OCC would also like to copy New York City's WireScore program, which identifies buildings with robust broad- band to help companies looking to locate or relocate to the region. The legislature could also enact "dig-once" policies to ensure that cable and fiber are laid in the ground during construction projects, to lower the overall costs of installations, the report said. Paul Cianelli, president and CEO of the New England Cable & Tele- communications Association, said the report confirms many concerns held by his industry group. Cianelli contends that the report: Underestimates the construction costs of government-sponsored broadband networks; fails to recog- nize NECTA's contention that government shouldn't invest as much as $3 billion on a network that is being built and upgraded as quickly as possible by the private sector; and that the proposed financing models would lead to higher taxes. HEALTH CARE CT coalition seeks more transparency on insurance mergers Three community and professional organizations have joined together to request greater transparency and accountability of proposed health insurance mergers by the state Department of Insurance. The coalition, which calls itself the Connecticut Campaign for Consumer Choice, is made up of the Universal Health Care Foundation of CT, Connecticut Citizen Action Group and Connecticut State Medical Society. It wants the insurance department to increase scrutiny and public input regarding major healthcare mergers. The group said in a statement the proposed Anthem-Cigna and Aetna- Humana mergers are likely to have a negative impact on both the cost and quality of care in Connecticut. The Anthem-Cigna merger is valued at $54.2 billion and is expected to close in the second half of 2016, pending federal and state regulatory approvals. The Aetna-Humana merger is valued at $37 billion and requires the ap- proval of 20 state insurance departments. Half had approved by last month. The deal still needs approval from Connecticut insurance regulators and the Department of Justice, which the insurer said may require it to divest certain businesses in some states. ADVERTISING, MEDIA & MARKETING Stanley Black & Decker to sponsor New Britain Bees Stanley Black & Decker said it will continue to sponsor the home baseball team at New Britain Stadium, even though the players, league and team have all changed. Stanley announced last week it will sponsor the New Britain Bees, which begins play in April. The team moved in when the New Britain Rock Cats moved to become the Hartford Yard Goats and play in a new downtown Hartford stadium. Stanley Black & Decker had been a sponsor of the Rock Cats when the team played in their shared hometown. The partnership includes premium signage and hospitality at the ballpark, promotional nights, on-field promotions, print advertisements, social media and presenting sponsor logo inclusion on all Bees marketing and promotional material. EDUCATION UConn moving ahead with Quiet Corner business initiative Now that it has $500,000 in federal support, the University of Connecticut is prepared to launch the first pilot program of its $1.5 million Quiet Corner Innovation Cluster this summer. The cluster will help develop companies in New London, Tolland and Wind- ham counties — largely rural areas affected by the loss and stagnation of local manufacturers, many of which don't have the research and development capabilities to cope with rapid advances in technology. Through the cluster, UConn will work with local companies to develop new products and update business opportunities for manufacturers in the eastern part of the state. It is the first UConn program aimed at partnering with small and medium-sized technological manufacturers. The innovation cluster is a partnership between UConn and Connecticut Innovations. GOVERNMENT, POLITICS & LAW Tax preparer legislation passes committee The General Assembly's Government, Administration and Elections Com- mittee has approved legislation requiring the licensing of tax preparers and facilitators. The bill would create a State Board of Tax Practitioners, which would reside in the Secretary of the State's office. The board would oversee registration, licensure, continuing education, renewals, disclosures and enforcement for non-credentialed commercial tax preparers. Each commercial tax return preparer will pay an annual fee of $100 to the board to obtain a license. The proposed legislation also sets the required experience to be licensed as a commercial tax preparer. Shipman & Goodwin adds NYC outpost Shipman & Goodwin LLP, one of Connecticut's largest law firms with 180 attorneys, has opened an office in New York City. It is the Hartford firm's sec- ond location outside of Connecticut. The Manhattan office is part of the firm's goal of expanding its presence in New York, said Alan E. Lieberman, managing partner of Shipman & Goodwin. He said the new office will enhance the firm's existing work for clients in the areas of mergers and acquisitions, bankruptcy, finance, litigation, tax and trusts and estates. Shipman & Goodwin's newest office is at 400 Park Ave. in Manhattan. The firm's other locations are in Hartford, Stamford, Greenwich, New Haven and Lakeville, Conn., and in Washington D.C. ECONOMY CT has highest U.S. per-capita income New figures released last week by the U.S. Bureau of Economic Analysis show Connecticut had the highest per-capita income in the United States last year, but the growth rate still lagged the national average. The state's 2015 per-capita income was $66,972, 40.5 percent higher than the national average of $47,669. Connecticut's personal income grew 3.7 percent from 2014 to 2015, which rep - resents a 39 percent improvement, according to the bureau's figures. The strongest driver to Connecticut's personal income growth was in the con- struction sector, followed by finance and insurance, and professional, scientific and technical services sector. The durable goods manufacturing sector in Connecticut had the biggest downward trend in personal income. Nationally, state personal income grew on average 4.4 percent in 2015, the same rate as in 2014, the U.S. Bureau of Economic Analysis said. State personal income growth ranged from -0.2 percent in North Dakota to 6.3 percent in California. WEEK IN REVIEW LET'S TALK ABOUT HOW WE CAN HELP YOUR BUSINESS MAKE IT BUILD IT BUY IT LEASE IT MOVE IT GROW IT EDUCATIONAL PLAYCARE Financed the expansion of day care centers across the state CADCO, LTD Financed acquisition of major equipment DOYLE'S MEDICAL SUPPLY Maintaining a long-standing business relationship www.nwcommunitybank.com Member FDIC Equal Housing Lender Contact Steve Zarrella Senior Vice President & Chief Lending Officer 860-379-7561 zarrella@nwcommunitybank.com YOUR COMMUNITY – YOUR COMMUNITY BANK FOR OVER 150 YEARS Move your plans from the drawing board into action. You know your business— and we know ours. Together we can make things happen. NCB COMMERCIAL HBJ 1-4pV_Layout 1 3/2/16 1:23 P H O T O | C O N T R I B U T E D

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