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Business New Haven
4/19/1999
By: Tammy Rachau
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Worst Idea Since Euro-Disney?
HARTFORD: Attorney General Richard Blumenthal and Consumer Protection Commissioner James T. Fleming recently announced a settlement with Nestle U.S.A. Inc. for advertising and selling Nestle Magic, an unsafe chocolate-covered plastic ball with a Disney character toy inside that violated state and federal laws. Nestle Magic, which was sold in mid-1997 and withdrawn from the marketplace after about three months of marketing and sales, was alleged to be in violation of state and federal food laws and state consumer protection laws by attorneys from 12 states. The toy, which was small and smelled like chocolate, was alleged to be a choking hazard for children. Connecticut will receive $125,000 in costs and attorneys fees as its share of the $1.5 million settlement.
CBIA: Budget Good for Biz
HARTFORD: Gov. Rowland's $21.5 billion budget for the two-year period beginning July 1, 1999 calls for state spending to rise by four percent in the first year to $11.575 billion, and by 4.8 percent in the second fiscal year to a total of $12.127. While both years of the budget stay under the state spending cap (by $92 million and $37 million, respectively) and keep pace with the expected growth rate in personal income, they are double the current inflation rate. The Connecticut Business & Industry Association (CBIA) however has expressed general support for the budget's priorities, while expressing some concern with the overall level of spending.
CBIA says its has urged the legislature to pare down the budget's growth rate but was enthusiastic about the commitment to previously enacted business tax reductions, such as the phasing down of the corporate income tax rate from 13.8 percent to 7.5 percent by 2000.
CBIA also supported the education and job training reflected in the budget plan as expressed in such proposals as a computerized statewide education network, a freeze on tuition, tuition tax credits and new accountability measures. Rowland's budget was presented to the General Assembly February 10. The next step in the budget process is the Appropriations Committee (spending) and Finance Committee (taxing) process whereby subcommittees review the budget and make recommendations.
$1,000 an hour!!??
WASHINGTON: U.S. Chamber of Commerce has praised members of Congress for developing what it calls 'bipartisan Year 2000 (Y2K) remediation legislation' that will help businesses and consumers work to resolve Y2K problems quickly, and without costly litigation. The bipartisan bill would: give businesses a strong incentive to fix Y2K problems before facing litigation; recommend alternative ways to resolve disputes; make defendants liable only for their portion of the fault; limit punitive damages to a reasonable amount; and limit attorney fees to $1,000 an hour.
Stream On
WASHINGTON: The U.S. Chamber of Commerce's “ChamberCast” Web site, featuring live and archived news events broadcast from the business organization, has been nominated for RealNetworks' “Streamers” award for excellence and innovation in streaming media. The ChamberCast site (www.chambercast.org) was launched in March 1998 with a live Internet broadcast of a global environmental conference. Since then, ChamberCast has broadcast and archived more than 50 events held at the U.S. Chamber of Commerce, including addresses from numerous heads of state and major political figures, including Senate Majority Leader Trent Lott, Treasury Secretary Robert Rubin and Gen. Colin Powell, all of which may be viewed on demand.
Hoya To Open Bethel Plant
Bethel: Gov. John G. Rowland recently announced that the Hoya Corp. of Japan, the second-largest manufacturer of prescription eyeglass lenses in the world, will establish its first U.S. manufacturing facility in Bethel, creating 200 new jobs and as many as 300 within three years. Hoya is a diverse multi-billion dollar Japanese company publicly traded on the Tokyo Stock Exchange. It currently manufactures prescription eyeglasses in several countries. Its first U.S. operation, at 13 Francis J. Clark Circle in Bethel, represents an estimated $25 million capital investment. There Hoya workers will polish, tint and coat 7,000 pairs of lenses per day. The state's Department of Economic & Community Development provided the original lead to the Hoya, as well as detailed market, location, workforce and tax credit information.
Funds Awarded for Vocational Ed
HARTFORD: Gov. John G. Rowland and the Governor's Council of Economic Competitiveness & Technology recently announced grants totaling $420,000 to four pilot programs designed to attract and train high school students for manufacturing careers. Receiving funds were: Vinai Regional Vocational-Technical School's advanced placement program in Middletown; the Northeastern Connecticut Manufacturing Initiative involving 15 towns; the Central Naugatuck Valley Partnership based in Woodbury; and a computer-based training program at Windsor High School. These pilot programs encourage participation in manufacturing programs by offering flexible scheduling, enhanced training with new equipment and college credits. The programs are designed to eliminate the stigma of technical occupations that is believed to be widespread among today's high school students.
The IT Site
WASHINGTON: The U.S. Departments of Labor, Commerce and Education have launched initiatives to ensure that U.S. companies have the workforce skills, particularly the highly sought information technology (IT) skills, to compete and grow. The departments have developed a set of Internet-based services to match highly skilled U.S. workers with high-tech job opportunities. America's Job Bank (www.ajb.dni.us), the largest and most frequently visited job bank in cyberspace, lists thousands of high-tech jobs and résumés. America's Career InfoNet (wwww.acinet.org) provides useful information, such as employment trends, prevailing wages, etc. America's Learning Exchange (www.alx.org), still under development, will help employers and individuals find the training. These services are easy to use and free of charge for both employers and job-seekers.
Clinton Budget Slammed
President Clinton's budget proposal drew negative responses from the U.S. Chamber of Commerce on several issues. The chamber sharply criticized Clinton for pushing $82 billion in tax increases on American businesses and consumers at a time when the government is running a projected $117 billion surplus. Although the President projects a $117 billion surplus next year and a $4.4 trillion surplus over the next 15 years, the administration's budget includes 81 tax increases - a 55 cent-per-pack cigarette hike, higher airline ticket taxes, increases on life insurance companies and several corporate tax increases - in order to finance new spending programs. The chamber also questioned the need for a $600 million spending increase on workforce enforcement initiatives outlined in the Department of Labor's fiscal year 2000 budget request. Proposals in the DOL request include new workforce inspectors, a pay-equity initiative, and Family and Medical Leave Act (FMLA) expansion. The chamber also attacked a new administration tax increase plan targeted at not-for-profit business organizations, and pledged to work with congressional opponents of the measure to defeat it. According to the proposal, not-for-profit organizations that earn investment income - even by temporarily saving dues revenue before spending it - would be hit with a new tax. Organizations affected by this plan include real estate boards, boards of trade and chambers of commerce, all classified as 501(c)6 groups.
Publishers Clearing House May Already Be a Defendant
Attorney General Richard Blumenthal and state Consumer Protection Commissioner James T. Fleming have announced that they have filed a lawsuit against Publishers Clearing House for sending “deceptive and misleading” offerings to Connecticut residents. The lawsuit alleges that the solicitations are primarily designed to induce consumers to order magazines and merchandise by implying that the recipient had won or had a strong likelihood of winning a large cash prize, or that consumers who order merchandise have an improved chance of winning. Solicitations also imply that a prompt response will improve a consumer's chance of winning, the suit charges. The lawsuit seeks a court order to prevent the defendant from continuing to violate state law, specifically Connecticut Unfair Trade Practices Act, and to require the company to pay restitution and civil penalties.
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