General Assembly Substitute Bill No. 6586
January Session, 2011 *_____HB06586FIN___040711____*
General Assembly
Substitute Bill No. 6586
January Session, 2011
*_____HB06586FIN___040711____*
AN ACT CONCERNING THE USE OF CERTAIN REVENUES TO PROVIDE FUNDS FOR THE BUDGET RESERVE FUND, CAPITAL DEBT PAYMENTS AND PENSION PAYMENTS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsection (a) of section 4-30a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) [After the accounts for the General Fund have been closed for each fiscal year and the Comptroller has determined the amount of unappropriated surplus in said fund, after any amounts required by provision of law to be transferred for other purposes have been deducted, the amount of such surplus shall be transferred by the State Treasurer to a special fund to be known as the Budget Reserve Fund.] The State Treasurer shall transfer the following amounts into a special fund to be known as the Budget Reserve Fund: (1) An amount equal to fifty per cent of any projected surplus in the General Fund for the current fiscal year as determined in the Comptroller's January cumulative monthly financial statement pursuant to section 3-115; (2) any amounts received from a sale of surplus state property pursuant to subsection (c) of section 4b-21; (3) any amounts in excess of the estimated revenues in the revised consensus revenue estimate issued on April thirtieth pursuant to section 2-36c; and (4) an amount equal to any unappropriated surplus remaining in the General Fund after any amounts required by provision of law to be transferred for other purposes have been deducted as determined by the Comptroller after the accounts for the General Fund have been closed for each fiscal year. The State Treasurer shall transfer the amount in subdivision (1) of this subsection not later than five days after the Comptroller issues the January cumulative monthly financial statement pursuant to section 3-115. When the amount in [said fund] the Budget Reserve Fund equals [ten] fifteen per cent of the net General Fund appropriations for the fiscal year in progress, no further transfers shall be made by the Treasurer to said fund and the amount of such surplus in excess of that transferred to said fund shall be deemed to be appropriated to the State Employees Retirement Fund, in addition to the contributions required pursuant to section 5-156a, but not exceeding five per cent of the unfunded past service liability of the system as set forth in the most recent actuarial valuation certified by the Retirement Commission. Such surplus in excess of the amounts transferred to the Budget Reserve Fund and the state employees retirement system shall be deemed to be appropriated for: [(1)] (A) Redeeming prior to maturity any outstanding indebtedness of the state selected by the Treasurer in the best interests of the state; [(2)] (B) purchasing outstanding indebtedness of the state in the open market at such prices and on such terms and conditions as the Treasurer shall determine to be in the best interests of the state for the purpose of extinguishing or defeasing such debt; [(3)] (C) providing for the defeasance of any outstanding indebtedness of the state selected by the Treasurer in the best interests of the state by irrevocably placing with an escrow agent in trust an amount to be used solely for, and sufficient to satisfy, scheduled payments of both interest and principal on such indebtedness; or [(4)] (D) any combination of these methods. Pending the use or application of such amount for the payment of interest and principal, such amount may be invested in [(A)] (i) direct obligations of the United States government, including state and local government treasury securities that the United States Treasury issues specifically to provide state and local governments with required cash flows at yields that do not exceed Internal Revenue Service arbitrage limits, [(B)] (ii) obligations guaranteed by the United States government, and [(C)] (iii) securities backed by United States government obligations as collateral and for which interest and principal payments on the collateral generally flow immediately through to the security holder.
Sec. 2. Section 4-30b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
Notwithstanding the provisions of section 4-30a, as amended by this act, after the accounts for the fiscal year ending June 30, 2010, and each fiscal year thereafter, until and including the fiscal year ending June 30, 2017, are closed, if the Comptroller determines there exists an unappropriated surplus in the General Fund, the Secretary of the Office of Policy and Management, in consultation with the State Treasurer, shall use the amount of any such surplus [shall first be used] for either redeeming prior to maturity any outstanding notes issued under section 3-20g [, and any amount beyond that required to redeem such notes shall be used] or to reduce the obligations of the state under the financing plan authorized under section 88 of public act 09-3 of the June special session.
Sec. 3. (NEW) (Effective from passage) Any payment to the state as a settlement of a court action shall, at the discretion of the Secretary of the Office of Policy and Management, be deposited in the state's trust fund for other post employment benefits, the State Employees Retirement Fund or the Teachers' Retirement Fund.
This act shall take effect as follows and shall amend the following sections:
Section 1 from passage 4-30a(a)
Sec. 2 from passage 4-30b
Sec. 3 from passage New section
This act shall take effect as follows and shall amend the following sections:
Section 1
from passage
4-30a(a)
Sec. 2
from passage
4-30b
Sec. 3
from passage
New section
FIN Joint Favorable Subst.
FIN
Joint Favorable Subst.