Hartford Business Journal

September 5, 2016

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6 Hartford Business Journal • September 5, 2016 www.HartfordBusiness.com TOP STORY Liquor retailer fined for flouting pricing law Total Wine & More, the liquor retailer suing the Connecticut Department of Consumer Protection (DCP) over the state's minimum alcohol pricing laws, has agreed to halt advertising and illegal sales that it launched after filing its lawsuit, the agency reported. DCP launched an investigation into Total Wine & More's actions, deeming them in violation of existing state law, and fined the company $37,500, DCP Commissioner Jonathan Harris said. The fine and halt of ads and sales does not affect the lawsuit brought against DCP and its liquor control division last week, he said. On Aug. 23, Total Wine & More sued the state in federal court, alleging that Connecticut's minimum pricing laws constitute restraint of trade and a viola- tion of the federal Sherman Antitrust Act. Minimum pricing laws forbid retailers of alcoholic beverages from selling products below cost. State law defines "cost" as bottle price plus shipping and handling costs. Beer calculations are treated slightly differently. Shortly after filing the lawsuit, Total Wine began to advertise it would sell its products at cost in some instances and began doing so. DCP launched an investigation and levied its punishment Sept. 1. HEALTH CARE Health care will drive CT's job growth Connecticut's labor and economic development researchers project continued growth in health care through 2024 as harder-hit economic sectors recover gradually. According to the 2016 Connecticut Economic Digest, which was released last week, health care, the largest economic sector in Connecticut, remains the one likely to add the most jobs through 2024. In health care, and primarily in ambulatory settings, employment is projected to grow by nearly 25,000 jobs by 2024, to more than 1.2 million. The state's aging population is cited as a primary driver of this trend. Four economic sectors in Connecticut that lost the most jobs over the past decade – manufacturing, finance and insurance, construction and retail trade – are projected to expand significantly by 2024, but not to the point where they'd regain 2004 levels, the digest reports. Educational services, which grew by nearly 20,000 over the past 10 years, is still projected to grow, but more slowly – only by about 7,000 jobs, the report states. Hebrew HealthCare names interim leader Hebrew HealthCare has appointed Gary Jones interim executive officer of the West Hartford care provider, which filed for bankruptcy reorganization earlier this month. Hebrew HealthCare has appointed Gary Jones interim executive officer of the West Hartford care provider, which filed for bankruptcy reorganization earlier this month. Jones' appointment is the result of both a search process and succession planning, Jerry Long, chairman of the nonprofit healthcare provider's board of trustees, said in a statement. Jones will work closely with Bonnie Gauthier, Hebrew HealthCare's president and CEO and David Houle, executive vice president and chief financial officer, before they retire on Sept. 30. Jones will then become interim CEO, the organization said. GOVERNMENT & POLITICS CT collects $1.1M from companies operating illegally in state The state has collected $1.1 million in penalties paid by more than 240 out- of-state companies operating illegally in Connecticut, two state officials an- nounced last week. Connecticut Secretary of the State Denise Merrill and Attorney General George Jepsen said their enforcement yielded fines ranging from $135 to $39,630 in fiscal year 2016. State law requires that business corporations, limited partnerships, limited liability companies and other entities formed beyond state borders obtain a cer- tificate of authority from the Secretary of the State and pay a fee set by statute before transacting business in Connecticut. Failure to register an out-of-state business in Connecticut is not always in- tentional, said Merrill, who is also the state's chief business registrar. In FY2015, the state collected more than $1.7 million in fines from 353 out- of-state companies. Almost 5,000 foreign entities properly filed with the Secretary of the State's Office in 2015, state officials said. GAMING CT Lottery chief to depart Anne M. Noble, president and CEO of the CT Lottery Corp., will leave the orga- nization after a decade of service marked by rising profits and gaming popular- ity, Lottery officials announced. A reason for Noble's departure was not provided. Under Noble, the Lottery Corp. delivered seven years of record returns to Con- necticut's General Fund, said Frank Farricker, chairman of the board. The Lottery also adopted a corporate social responsibility program during her tenure and has been recognized nationally for its commitment to responsible gam- bling, Farricker said. Noble also was "instrumental" in the successful roll out of Keno this past spring. Municipalities taskforce targeting regionalism, local funding A new municipal task force has been formed to spend four months exploring property tax and local revenue diversification as well as delivery of regional services, the Connecticut Conference of Municipalities announced. The goal is to develop a package of legislative initiatives for the upcoming 2017 legislative session for the state's 169 cities and towns. Mark Boughton, mayor of Danbury and CCM president, will lead the panel, which will have two subcommittees. He will present its findings in a report in December before the General As- sembly convenes for the new year on Jan. 4. Some of the focus will involve expanding the work of the 2015 State Tax Panel and finding ways to maximize regional cooperation, CCM said. ECONOMY & LABOR Pessimism climbing in residents' views of CT's economy Nearly half of the residents surveyed about Connecticut's economy say cir- cumstances here are not improving, an uptick from the previous quarter. And more than half of those aged 18 to 25 say they may leave the state in the next five years. Not a pretty picture, according to the Connecticut Economic Resource Center, whose Inform CT Consumer Confidence Survey is compiled quarterly — though also not entirely bleak. A year ago, 40 percent of those surveyed disagreed with the statement that the Connecticut economy is improving, but that view has increased, with 49 percent of those surveyed thinking that way. Likewise, belief that the state's economy is improving has dropped from 29 percent a year ago to 23 percent during the second quarter of this year. The analysis is based on the responses of 400 randomly selected Connecti- cut residents, approximately 50 per county. School nurses at CREC usher in a union School nurses who work at institutions operated by the Capitol Region Edu- cation Council (CREC) voted last week to unionize, AFT Connecticut reported. The vote tally was not immediately available, but the union said the vote will result in a 30-member bargaining unit of registered and licensed practi- cal nurses employed by CREC, a regional educational service center with three dozen member municipalities. The Connecticut Education Association (CEA) represents CREC's certified teachers, while classroom paraprofessionals and child-care providers are in Council 4 AFSCME, and school van drivers are International Brotherhood of Teamsters (IBT) members. Teamsters approve 5-year contract with Hartford Distributors Members of Teamsters union Local 1035 overwhelmingly ratified a new five- year contract with Hartford Distributors Inc., ending a protracted, contentious process that included a nearly two-month lockout by management. Ninety percent of union members voted in favor of the pact, with only 10 percent voting against it, Christopher Roos, principle officer of Local 1035, said. The pact gives drivers around a 5 percent raise each year, and warehouse workers will receive raises of slightly more than 3 percent per year. The new agreement also retains all healthcare benefits, with no additional contributions by workers, Roos said. – Howard French | Journal Inquirer BY THE NUMBERS 240 The number of out-of-state companies caught operating illegally in Connecticut in fiscal 2016, which led to more than $1.1 million in fines to the Secretary of the State's office. 18.5% The share of Connecticut's May 2016 home sales that were short sales or involved bank-owned properties — the second highest percentage in the country. $71.7M The current cost of the Downtown North baseball stadium, up from a bonded amount of $63.3 million, according to a recent calculation by Hartford's Internal Audit Commission. 150 The number of Connecticut job cuts Lockheed Martin announced last week at Sikorsky, which it acquired from United Technologies last year. TOP 5 MOST READ on HartfordBusiness.com ■ Second liquor retailer pledges to violate state pricing law ■ CT distressed home sales 2nd highest in country ■ Hartford lawyer elevated to U.S. bankruptcy judge in CT ■ State investigating liquor company suing over pricing ■ CT collects $1.1M from companies operating illegally in state ■ Hartford HealthCare splits Joseph's role STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly, CT Health Care Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW P H O T O | C O N T R I B U T E D

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