CT
Connecticut House Bill HB05876

Connecticut 2011 Regular Session

Connecticut House Bill HB05876

Introduced
1/24/11  
Introduced
1/24/11  

Caption

An Act Concerning Investment Of State Funds In Connecticut Businesses And Community Banks.

Impact

If enacted, HB 5876 would significantly alter the investment strategy employed by the State Treasurer, focusing on fostering local economic conditions by supporting businesses and financial institutions that adhere to strong community reinvestment standards. This shift in investment strategy aligns with a broader vision of stimulating Connecticut's economy through local job creation, which might also enhance financial stability in the region by ensuring that funding stays within the community. Advocates for the bill argue that such investments can have a multiplier effect on the local economy, leading to sustainable growth and development.

Summary

House Bill 5876, concerning the investment of state funds in Connecticut businesses and community banks, aims to mandate the State Treasurer to allocate state pension and trust funds in a manner that bolsters local economic growth. The proposed legislation specifies that any new contributions from Connecticut retirement funds must be invested in businesses and community banks with a physical presence in the state. Moreover, it requires that at least five percent of currently invested pension funds be directed towards these entities. The intent of the bill is to prioritize local economic development by ensuring that state funds contribute directly to job creation and community prosperity rather than being placed in broader financial markets.

Contention

Despite its potential benefits, HB 5876 may face scrutiny and debate surrounding its practicality and implications for the state's pension fund management. Critics may argue that focusing investments locally could limit the profit potential of retirement funds by reducing exposure to larger, possibly more lucrative financial markets. Additionally, there may be concerns regarding the selection criteria for businesses and banks, particularly around the definition of 'strong community reinvestment standards.' Stakeholders may worry about how these standards are evaluated and enforced, which could create hurdles or biases against certain local entities.

Companion Bills

No companion bills found.

Previously Filed As

CT HB05142

An Act Concerning Consumer Credit, Certain Bank Real Estate Improvements, The Connecticut Uniform Securities Act, Shared Appreciation Agreements, Innovation Banks, The Community Bank And Community Credit Union Program And Technical Revisions To The Banking Statutes.

CT SB00351

An Act Increasing Funding For The Community Investment Account.

CT SB00105

An Act Concerning Funding For The Community Investment Account.

CT HB05088

An Act Concerning Funding For The Connecticut Food Bank.

CT SB00455

An Act Concerning The Establishment Of An Investment Instrument Program By The University Of Connecticut And The Connecticut State University System.

CT HB05446

An Act Concerning Funding For Community Access Television, The Connecticut Television Network And Low-income Internet Access And Taxation Of Communications Services Providers.

CT SB00501

An Act Concerning Motor Vehicle Assessments For Property Taxation, Innovation Banks, The Interest On Certain Tax Underpayments, The Assessment On Insurers, School Building Projects, The South Central Connecticut Regional Water Authority Charter And Certain State Historic Preservation Officer Procedures.

CT HB05145

An Act Concerning Innovation Banks.

CT SB00001

An Act Concerning The Health And Safety Of Connecticut Residents.

CT SB00057

An Act Concerning Funding For School-based Health Centers In Eastern Connecticut.

Similar Bills

No similar bills found.