Connecticut 2021 Regular Session

Connecticut House Bill HB06659 Compare Versions

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7		-	General Assembly Substitute Bill No. 6659
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	7	+	General Assembly Raised Bill No. 6659
8	8		January Session, 2021
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	12	+	Referred to Committee on APPROPRIATIONS
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	15	+	Introduced by:
	16	+	(APP)
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14	21		AN ACT CONCERNING TH E ESTABLISHMENT OF T HE
15	22		CONNECTICUT BABY BON D TRUST.
16	23		Be it enacted by the Senate and House of Representatives in General
17	24		Assembly convened:
18	25
19	26		Section 1. (NEW) (Effective July 1, 2021) As used in this section and 1
20	27		sections 2 to 8, inclusive, of this act: 2
21	28		(1) "Designated beneficiary" means an individual born on or after July 3
22	29		1, 2021, whose birth was subject to medical coverage provided under 4
23	30		HUSKY Health, as defined in section 17b-290 of the general statutes; 5
24	31		(2) "Eligible expenditure" means an expenditure associated with any 6
25		-	of the following~~, each as prescribed by the Treasurer~~: (A) Education of a 7
26		-	~~designated beneficiary; (B) purchase~~ of a home ~~in Connecticut by~~ a 8
27		-	designated beneficiary; (C) investment in ~~a business in Connecticut by~~ 9
28		-	~~a designated beneficiary;~~ or ~~(D) any investment in financial assets~~ or 10
29		-	~~personal capital that provides long-term~~ ~~gains to wages or wealth~~; and 11
	32	+	of the following: (A) Education of a designated beneficiary; (B) 7
	33	+	ownership of a home by a designated beneficiary; (C) ownership of a 8
	34	+	business by a designated beneficiary; or (D) any investment in financial 9
	35	+	assets or personal capital that provides long-term gains to wages or 10
	36	+	wealth, as prescribed by the Treasurer; and 11
30	37		(3) "Trust" means the Connecticut Baby Bond Trust. 12
31		-	Sec. 2. (NEW) (Effective July 1, 2021) (a) There is established the 13
	38	+	Sec. 2. (NEW) (Effective July 1, 2021) (a) There is established the 13 Raised Bill No. 6659
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32	44		Connecticut Baby Bond Trust. The trust shall constitute an 14
33	45		instrumentality of the state and shall perform essential governmental 15
34		-	functions as provided in sections 1 to 8, inclusive, of this act. The trust 16 Substitute Bill No. 6659
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	46	+	functions as provided in sections 1 to 8, inclusive, of this act. The trust 16
41	47		shall receive and hold all payments and deposits or contributions 17
42	48		intended for the trust, as well as gifts, bequests, endowments or federal, 18
43	49		state or local grants and any other funds from any public or private 19
44	50		source and all earnings until disbursed in accordance with section 7 of 20
45	51		this act. 21
46	52		(b) The amounts on deposit in the trust shall not constitute property 22
47	53		of the state and the trust shall not be construed to be a department, 23
48	54		institution or agency of the state. Amounts on deposit in the trust shall 24
49	55		not be commingled with state funds and the state shall have no claim to 25
50	56		or against, or interest in, such funds. Any contract entered into by or any 26
51	57		obligation of the trust shall not constitute a debt or obligation of the state 27
52	58		and the state shall have no obligation to any designated beneficiary or 28
53	59		any other person on account of the trust and all amounts obligated to be 29
54	60		paid from the trust shall be limited to amounts available for such 30
55	61		obligation on deposit in the trust. The amounts on deposit in the trust 31
56	62		may only be disbursed in accordance with the provisions of section 7 of 32
57	63		this act. The trust shall continue in existence as long as it holds any 33
58	64		deposits or has any obligations and until its existence is terminated by 34
59	65		law and upon termination any unclaimed assets shall return to the state. 35
60	66		Property of the trust shall be governed by section 3-61a of the general 36
61	67		statutes. 37
62	68		(c) The Treasurer shall be responsible for the receipt, maintenance, 38
63	69		administration, investing and disbursements of amounts from the trust. 39
64	70		The trust shall not receive deposits in any form other than cash. 40
65	71		Sec. 3. (NEW) (Effective July 1, 2021) The Treasurer, on behalf of the 41
66	72		trust and for purposes of the trust, may: 42
67	73		(1) Receive and invest moneys in the trust in any instruments, 43
68	74		obligations, securities or property in accordance with section 4 of this 44
69		-	act; 45
70		-	(2) Enter into one or more contractual agreements, including 46
71		-	contracts for legal, actuarial, accounting, custodial, advisory, 47 Substitute Bill No. 6659
	75	+	act; 45 Raised Bill No. 6659
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	81	+	(2) Enter into one or more contractual agreements, including 46
	82	+	contracts for legal, actuarial, accounting, custodial, advisory, 47
78	83		management, administrative, advertising, marketing and consulting 48
79		-	services for the trust and pay for such services from the ~~assets of the~~ 49
80		-	trust; 50
	84	+	services for the trust and pay for such services from the gains and 49
	85	+	earnings of the trust; 50
81	86		(3) Procure insurance in connection with the trust's property, assets, 51
82	87		activities or deposits to the trust; 52
83	88		(4) Apply for, accept and expend gifts, grants or donations from 53
84	89		public or private sources to enable the trust to carry out its objectives; 54
85	90		(5) Adopt regulations in accordance with chapter 54 of the general 55
86	91		statutes for purposes of this act; 56
87	92		(6) Sue and be sued; 57
88		-	(7) Establish one or more funds within the trust; and 58
89		-	(8) Take any other action necessary to carry out the purposes of this 59
90		-	act, and incidental to the duties imposed on the Treasurer pursuant to 60
91		-	this act. 61
92		-	Sec. 4. (NEW) (Effective July 1, 2021) Notwithstanding the provisions 62
93		-	of sections 3-13 to 3-13h, inclusive, of the general statutes, the Treasurer 63
94		-	shall invest the amounts on deposit in the trust in a manner reasonable 64
95		-	and appropriate to achieve the objectives of the trust, exercising the 65
96		-	discretion and care of a prudent person in similar circumstances with 66
97		-	similar objectives. The Treasurer shall give due consideration to rate of 67
98		-	return, risk, term or maturity, diversification of the total portfolio within 68
99		-	the trust, liquidity, the projected disbursements and expenditures and 69
100		-	the expected payments, deposits, contributions and gifts to be received. 70
101		-	The Treasurer shall not require the trust to invest directly in obligations 71
102		-	of the state or any political subdivision of the state or in any investment 72
103		-	or other fund administered by the Treasurer. The assets of the trust shall 73
104		-	be continuously invested and reinvested in a manner consistent with the 74
105		-	objectives of the trust until disbursed for qualified expenses as defined 75
106		-	by this act or expended on expenses incurred by the operations of the 76
107		-	trust. 77 Substitute Bill No. 6659
	93	+	(7) Establish one or more funds within the trust and maintain 58
	94	+	separate accounts for each designated beneficiary; and 59
	95	+	(8) Take any other action necessary to carry out the purposes of this 60
	96	+	act, and incidental to the duties imposed on the Treasurer pursuant to 61
	97	+	this act. 62
	98	+	Sec. 4. (NEW) (Effective July 1, 2021) Notwithstanding the provisions 63
	99	+	of sections 3-13 to 3-13h, inclusive, of the general statutes, the Treasurer 64
	100	+	shall invest the amounts on deposit in the trust in a manner reasonable 65
	101	+	and appropriate to achieve the objectives of the trust, exercising the 66
	102	+	discretion and care of a prudent person in similar circumstances with 67
	103	+	similar objectives. The Treasurer shall give due consideration to rate of 68
	104	+	return, risk, term or maturity, diversification of the total portfolio within 69
	105	+	the trust, liquidity, the projected disbursements and expenditures and 70
	106	+	the expected payments, deposits, contributions and gifts to be received. 71
	107	+	The Treasurer shall not require the trust to invest directly in obligations 72
	108	+	of the state or any political subdivision of the state or in any investment 73
	109	+	or other fund administered by the Treasurer. The assets of the trust shall 74
	110	+	be continuously invested and reinvested in a manner consistent with the 75 Raised Bill No. 6659
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114		-	Sec. 5. (NEW) (Effective July 1, 2021) The property of the trust and the 78
115		-	earnings on the trust shall be exempt from all taxation by the state and 79
116		-	all political subdivisions of the state. 80
117		-	Sec. 6. (NEW) (Effective July 1, 2021) (a) Notwithstanding any 81
118		-	provision of the general statutes, no moneys invested in the Connecticut 82
119		-	Baby Bond Trust shall be considered to be an asset for purposes of 83
120		-	determining an individual's eligibility for assistance under the 84
121		-	temporary family assistance program, as described in section 17b-112 of 85
122		-	the general statutes, programs funded under the federal Low Income 86
123		-	Home Energy Assistance Program block grant and the federally 87
124		-	appropriated weatherization assistance program. 88
125		-	(b) Notwithstanding any provision of the general statutes, no moneys 89
126		-	invested in the trust shall be considered to be an asset for purposes of 90
127		-	determining an individual's eligibility for need-based, institutional aid 91
128		-	grants offered to an individual at the public eligible educational 92
129		-	institutions in the state. 93
130		-	Sec. 7. (NEW) (Effective July 1, 2021) (a) The Treasurer shall establish 94
131		-	in the Connecticut Baby Bond Trust an accounting for each designated 95
132		-	beneficiary. Each such accounting shall include the amount transferred 96
133		-	to the trust pursuant to section 8 of this act, plus the designated 97
134		-	beneficiary's pro rata share of total net earnings from investments of 98
135		-	sums held in the trust. 99
136		-	(b) Upon a designated beneficiary's eighteenth birthday and 100
137		-	completion of a financial literacy requirement as prescribed by the 101
138		-	Treasurer, such beneficiary shall become eligible to receive the total sum 102
139		-	of the accounting under subsection (a) of this section to be used for a 103
140		-	qualified expense. The Treasurer may adopt regulations, in accordance 104
141		-	with the provisions of chapter 54 of the general statutes, to carry out the 105
142		-	purposes of this section. 106
143		-	(c) A designated beneficiary may submit a claim for such accounting 107
144		-	until his or her thirtieth birthday, as prescribed by the Treasurer, 108 Substitute Bill No. 6659
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	116	+	objectives of the trust until disbursed for qualified expenses as defined 76
	117	+	by this act or expended on expenses incurred by the operations of the 77
	118	+	trust. 78
	119	+	Sec. 5. (NEW) (Effective July 1, 2021) The property of the trust and the 79
	120	+	earnings on the trust shall be exempt from all taxation by the state and 80
	121	+	all political subdivisions of the state. 81
	122	+	Sec. 6. (NEW) (Effective July 1, 2021) (a) Notwithstanding any 82
	123	+	provision of the general statutes, no moneys invested in the Connecticut 83
	124	+	Baby Bond Trust shall be considered to be an asset for purposes of 84
	125	+	determining an individual's eligibility for assistance under the 85
	126	+	temporary family assistance program, as described in section 17b-112 of 86
	127	+	the general statutes, programs funded under the federal Low Income 87
	128	+	Home Energy Assistance Program block grant and the federally 88
	129	+	appropriated weatherization assistance program. 89
	130	+	(b) Notwithstanding any provision of the general statutes, no moneys 90
	131	+	invested in the trust shall be considered to be an asset for purposes of 91
	132	+	determining an individual's eligibility for need-based, institutional aid 92
	133	+	grants offered to an individual at the public eligible educational 93
	134	+	institutions in the state. 94
	135	+	Sec. 7. (NEW) (Effective July 1, 2021) (a) The Treasurer shall establish 95
	136	+	in the Connecticut Baby Bond Trust an accounting for each designated 96
	137	+	beneficiary. Each such accounting shall include the amount transferred 97
	138	+	to the trust pursuant to section 8 of this act, plus the designated 98
	139	+	beneficiary's pro rata share of total net earnings from investments of 99
	140	+	sums held in the trust. 100
	141	+	(b) Upon a designated beneficiary's eighteenth birthday, if such 101
	142	+	beneficiary is a resident of the state, such beneficiary shall become 102
	143	+	eligible to receive the total sum of the accounting under subsection (a) 103
	144	+	of this section to be used for a qualified expense. The Treasurer may 104
	145	+	adopt regulations, in accordance with the provisions of chapter 54 of the 105
	146	+	general statutes, to carry out the purposes of this section. 106 Raised Bill No. 6659
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151		-	provided such designated beneficiary is a resident of the state at the time 109
152		-	of such claim. If a designated beneficiary (1) is deceased before his or 110
153		-	her eighteenth birthday, or (2) fails to submit a valid claim, as 111
154		-	determined by the Treasurer, before his or her thirtieth birthday, such 112
155		-	accounting shall be credited back to the assets of the trust. 113
156		-	(d) The Treasurer and the Department of Social Services shall enter 114
157		-	into a memorandum of understanding to establish information sharing 115
158		-	practices in order to carry out the purposes of this act. 116
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	152	+	(c) If a designated beneficiary is deceased before his or her eighteenth 107
	153	+	birthday, or is no longer a resident of the state on his or her eighteenth 108
	154	+	birthday, such accounting shall be credited back to the trust. 109
	155	+	(d) The Treasurer shall furnish each eligible beneficiary with an 110
	156	+	annual statement relating to the individual's accounting, which shall 111
	157	+	include (1) a statement of the balance attributable to the individual, (2) 112
	158	+	a projection of the balance's growth by the time the individual attains 113
	159	+	the age of eighteen, (3) resources and information to promote financial 114
	160	+	wellness and capability, and (4) such other information as the Treasurer 115
	161	+	deems relevant. 116
159	162		Sec. 8. (NEW) (Effective July 1, 2021) Upon the birth of a designated 117
160	163		beneficiary, the Treasurer shall transfer five thousand dollars from the 118
161	164		General Fund to the trust to be credited toward the accounting of such 119
162	165		designated beneficiary as described in section 7 of this act. 120
163	166		This act shall take effect as follows and shall amend the following
164	167		sections:
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166	169		Section 1 July 1, 2021 New section
167	170		Sec. 2 July 1, 2021 New section
168	171		Sec. 3 July 1, 2021 New section
169	172		Sec. 4 July 1, 2021 New section
170	173		Sec. 5 July 1, 2021 New section
171	174		Sec. 6 July 1, 2021 New section
172	175		Sec. 7 July 1, 2021 New section
173	176		Sec. 8 July 1, 2021 New section
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175		-	APP Joint Favorable Subst.
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	179	+	Statement of Purpose:
	180	+	To establish the Connecticut Baby Bond Trust.
	181	+
	182	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	183	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	184	+	not underlined.]