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General Assembly Substitute Bill No. 971
January Session, 2021
AN ACT CONCERNING TH E STATE TREASURER AN D CLIMATE
CHANGE AND COASTAL R ESILIENCY RESERVE FUNDS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (c) of section 7-159d of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective from 2
passage): 3
(c) The budget-making authority of such municipality may, from 4
time to time, direct the treasurer to invest a portion of such Climate 5
Change and Coastal Resiliency Reserve Fund as in the opinion of such 6
authority is advisable, including in any trust fund administered, held or 7
invested by the State Treasurer pursuant to chapter 32 and for which the 8
State Treasurer may adopt regulations, in accordance with chapter 54, 9
to allow for the investment of moneys held in any such reserve fund, 10
provided: (1) Not more than forty per cent, or with respect to such a 11
reserve fund for which the budget-making authority has adopted an 12
asset allocation and investment policy, fifty per cent, of the total amount 13
of such reserve fund shall be invested in equity securities, and (2) any 14
portion of such reserve fund not invested pursuant to subdivision (1) of 15
this subsection may be invested in: (A) Bonds or obligations of, or 16
guaranteed by, the state or the United States, or agencies or 17
instrumentalities of the United States, (B) certificates of deposit, 18 Substitute Bill No. 971
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commercial paper, savings accounts and bank acceptances, (C) the 19
obligations of any state of the United States or any political subdivision 20
thereof or the obligations of any instrumentality, authority or agency of 21
any state or political subdivision thereof, if, at the time of investment, 22
such obligations are rated in the top rating categories of any nationally 23
recognized rating service or of any rating service recognized by the 24
Banking Commissioner, and applicable to such obligations, (D) the 25
obligations of any regional school district in this state, of any 26
municipality in this state or any metropolitan district in this state, if, at 27
the time of investment, such obligations of such government entity are 28
rated in one of the top two rating categories of any nationally recognized 29
rating service or of any rating service recognized by the Banking 30
Commissioner, and applicable to such obligations, (E) in any fund in 31
which a trustee may invest pursuant to section 36a-353, (F) investment 32
agreements with financial institutions whose long-term obligations are 33
rated in the top two rating categories of any nationally recognized rating 34
service or of any rating service recognized by the Banking 35
Commissioner or whose short-term obligations are rated in the top 36
rating category of any nationally recognized rating service or of any 37
rating service recognized by the Banking Commissioner, or (G) 38
investment agreements fully secured by obligations of, or guaranteed 39
by, the United States or agencies or instrumentalities of the United 40
States. 41
Sec. 2. Section 3-13c of the general statutes is repealed and the 42
following is substituted in lieu thereof (Effective from passage): 43
Trust funds as used in sections 3-13 to 3-13e, inclusive, and 3-31b shall 44
be construed to include Connecticut Municipal Employees' Retirement 45
Fund A, Connecticut Municipal Employees' Retirement Fund B, 46
Soldiers, Sailors and Marines Fund, Family and Medical Leave 47
Insurance Trust Fund, State's Attorneys' Retirement Fund, Teachers' 48
Annuity Fund, Teachers' Pension Fund, Teachers' Survivorship and 49
Dependency Fund, School Fund, State Employees Retirement Fund, the 50
Hospital Insurance Fund, Policemen and Firemen Survivor's Benefit 51 Substitute Bill No. 971
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Fund, any Climate Change and Coastal Resiliency Reserve Fund created 52
pursuant to section 7-159d, as amended by this act, that is administered, 53
held or invested by the State Treasurer and all other trust funds 54
administered, held or invested by the State Treasurer. 55
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 7-159d(c)
Sec. 2 from passage 3-13c
PD Joint Favorable Subst.