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General Assembly Raised Bill No. 1012
January Session, 2021
LCO No. 4403
Referred to Committee on GOVERNMENT ADMINISTRATION
AND ELECTIONS
Introduced by:
(GAE)
AN ACT CONCERNING OP ERATIONS OF THE STATE TREASURER.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 8-169oo of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
(a) The board of directors of the Connecticut Municipal 3
Redevelopment Authority is authorized from time to time to issue its 4
bonds, notes and other obligations in such principal amounts as in the 5
opinion of the board shall be necessary to provide sufficient funds for 6
carrying out the purposes set forth in section 8-169jj, as amended by this 7
act, including the payment, funding or refunding of the principal of, or 8
interest or redemption premiums on, any bonds, notes and other 9
obligations issued by it, whether the bonds, notes or other obligations 10
or interest to be funded or refunded have or have not become due, the 11
establishment of reserves to secure such bonds, notes and other 12
obligations, loans made by the authority and all other expenditures of 13
the authority incident to and necessary or convenient to carry out the 14
purposes set forth in section 8-169jj, as amended by this act. 15 Raised Bill No. 1012
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(b) Every issue of bonds, notes or other obligations shall be a general 16
obligation of the authority payable out of any moneys or revenues of the 17
authority and subject only to any agreements with the holders of 18
particular bonds, notes or other obligations pledging any particular 19
moneys or revenues. Any such bonds, notes or other obligations may be 20
additionally secured by any grant or contributions from any 21
department, agency or instrumentality of the United States or person or 22
a pledge of any moneys, income or revenues of the authority from any 23
source whatsoever. 24
(c) Notwithstanding any other provision of any law, any bonds, notes 25
or other obligations issued by the authority pursuant to this section shall 26
be fully negotiable within the meaning and for all purposes of title 42a. 27
Any such bonds, notes or other obligations shall be legal investments 28
for all trust companies, banks, investment companies, savings banks, 29
building and loan associations, executors, administrators, guardians, 30
conservators, trustees and other fiduciaries and pension, profit-sharing 31
and retirement funds. 32
(d) Bonds, notes or other obligations of the authority shall be 33
authorized by resolution of the board of directors of the authority and 34
may be issued in one or more series and shall bear such date or dates, 35
mature at such time or times, in the case of any such note, or any renewal 36
thereof, not exceeding the term of years as the board shall determine 37
from the date of the original issue of such notes, and, in the case of 38
bonds, not exceeding thirty years from the date thereof, bear interest at 39
such rate or rates, be in such denomination or denominations, be in such 40
form, either coupon or registered, carry such conversion or registration 41
privileges, have such rank or priority, be executed in such manner, be 42
payable from such sources in such medium of payment at such place or 43
places within or without this state, and be subject to such terms of 44
redemption, with or without premium, as such resolution or resolutions 45
may provide. 46
(e) Bonds, notes or other obligations of the authority may be sold at 47
public or private sale at such price or prices as the board shall determine. 48 Raised Bill No. 1012
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(f) Bonds, notes or other obligations of the authority may be refunded 49
and renewed from time to time as may be determined by resolution of 50
the board, provided any such refunding or renewal shall be in 51
conformity with any rights of the holders of such bonds, notes or other 52
obligations. 53
(g) [Except as provided in section 8-169qq, bonds] Bonds, notes or 54
other obligations of the authority issued under the provisions of this 55
section shall not be deemed to constitute a debt or liability of the state 56
or of any political subdivision thereof other than the authority, or a 57
pledge of the faith and credit of the state or of any such political 58
subdivision other than the authority, and shall not constitute bonds or 59
notes issued or guaranteed by the state within the meaning of section 3-60
21, but shall be payable solely from the funds as provided in this section. 61
All such bonds, notes or other obligations shall contain on the face 62
thereof a statement to the effect that, unless otherwise provided by law, 63
neither the state of Connecticut nor any political subdivision thereof 64
other than the authority shall be obligated to pay the same or the interest 65
thereof except from revenues or other funds of the authority and that 66
neither the faith and credit nor the taxing power of the state of 67
Connecticut or of any political subdivision thereof other than the 68
authority is pledged to the payment of the principal of, or the interest 69
on, such bonds, notes or other obligations. 70
(h) Any resolution or resolutions authorizing the issuance of bonds, 71
notes or other obligations may contain provisions, except as limited by 72
existing agreements with the holders of bonds, notes or other 73
obligations, which shall be a part of the contract with the holders 74
thereof, as to the following: (1) The pledging of all or any part of the 75
moneys received by the authority to secure the payment of the principal 76
of and interest on any bonds, notes or other obligations or of any issue 77
thereof; (2) the pledging of all or part of the assets of the authority to 78
secure the payment of the principal and interest on any bonds, notes or 79
other obligations or of any issue thereof; (3) the establishment of 80
reserves or sinking funds, the making of charges and fees to provide for 81
the same, and the regulation and disposition thereof; (4) limitations on 82 Raised Bill No. 1012
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the purpose to which the proceeds of sale of bonds, notes or other 83
obligations may be applied and pledging such proceeds to secure the 84
payment of the bonds, notes or other obligations, or of any issues 85
thereof; (5) limitations on the issuance of additional bonds, notes or 86
other obligations, the terms upon which additional bonds, bond 87
anticipation notes or other obligations may be issued and secured, the 88
refunding or purchase of outstanding bonds, notes or other obligations 89
of the authority; (6) the procedure, if any, by which the terms of any 90
contract with the holders of any bonds, notes or other obligations of the 91
authority may be amended or abrogated, the amount of bonds, notes or 92
other obligations the holders of which must consent thereto and the 93
manner in which such consent may be given; (7) limitations on the 94
amount of moneys to be expended by the authority for operating, 95
administrative or other expenses of the authority; (8) the vesting in a 96
trustee or trustees of such property, rights, powers and duties in trust as 97
the authority may determine, which may include any or all of the rights, 98
powers and duties of any trustee appointed by the holders of any bonds, 99
notes or other obligations and limiting or abrogating the right of the 100
holders of any bonds, notes or other obligations of the authority to 101
appoint a trustee or limiting the rights, powers and duties of such 102
trustee; (9) provision for a trust agreement by and between the authority 103
and a corporate trustee which may be any trust company or bank having 104
the powers of a trust company within or without the state, which 105
agreement may provide for the pledging or assigning of any assets or 106
income from assets to which or in which the authority has any rights or 107
interest, and may further provide for such other rights and remedies 108
exercisable by the trustee as may be proper for the protection of the 109
holders of any bonds, notes or other obligations of the authority and not 110
otherwise in violation of law. Such agreement may provide for the 111
restriction of the rights of any individual holder of bonds, notes or other 112
obligations of the authority. All expenses incurred in carrying out the 113
provisions of such trust agreement may be treated as a part of the cost 114
of operation of the authority. The trust agreement may contain any 115
further provisions which are reasonable to delineate further the 116
respective rights, duties, safeguards, responsibilities and liabilities of 117 Raised Bill No. 1012
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the authority, individual and collective holders of bonds, notes and 118
other obligations of the authority and the trustees; (10) covenants to do 119
or refrain from doing such acts and things as may be necessary or 120
convenient or desirable in order to better secure any bonds, notes or 121
other obligations of the authority, or which, in the discretion of the 122
authority, will tend to make any bonds, notes or other obligations to be 123
issued more marketable, notwithstanding that such covenants, acts or 124
things may not be enumerated herein; and (11) any other matters of like 125
or different character, which in any way affect the security or protection 126
of the bonds, notes or other obligations. 127
(i) Any pledge made by the authority of income, revenues or other 128
property shall be valid and binding from the time the pledge is made. 129
The income, revenue, such state taxes as the authority shall be entitled 130
to receive or other property so pledged and thereafter received by the 131
authority shall immediately be subject to the lien of such pledge without 132
any physical delivery thereof or further act, and the lien of any such 133
pledge shall be valid and binding as against all parties having claims of 134
any kind in tort, contract or otherwise against the authority, irrespective 135
of whether such parties have notice thereof. 136
(j) The board of directors of the authority is authorized and 137
empowered to obtain from any department, agency or instrumentality 138
of the United States any insurance or guarantee as to, or of or for the 139
payment or repayment of, interest or principal or both, or any part 140
thereof, on any bonds, notes or other obligations issued by the authority 141
pursuant to the provisions of this section and, notwithstanding any 142
other provisions of sections 8-169ii to 8-169ss, inclusive, to enter into any 143
agreement, contract or any other instrument whatsoever with respect to 144
any such insurance or guarantee except to the extent that such action 145
would in any way impair or interfere with the authority's ability to 146
perform and fulfill the terms of any agreement made with the holders 147
of the bonds, bond anticipation notes or other obligations of the 148
authority. 149
[(k) Neither the members of the board of directors of the authority 150 Raised Bill No. 1012
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nor any person executing bonds, notes or other obligations of the 151
authority issued pursuant to this section shall be liable personally on 152
such bonds, notes or other obligations or be subject to any personal 153
liability or accountability by reason of the issuance thereof, nor shall any 154
director, officer or employee of the authority be personally liable for 155
damage or injury caused in the performance of such director, officer or 156
employee's duties and within the scope of employment or appointment 157
as such director, officer or employee, provided the conduct of such 158
director, officer or employee was found not to have been wanton, 159
reckless, wilful or malicious. The authority shall protect, save harmless 160
and indemnify its directors, officers or employees from financial loss 161
and expense, including legal fees and costs, if any, arising out of any 162
claim, demand, suit or judgment by reason of alleged negligence or 163
alleged deprivation of any person's civil rights or any other act or 164
omission resulting in damage or injury, if the director, officer or 165
employee is found to have been acting in the discharge of his or her 166
duties or within the scope of his or her employment and such act or 167
omission is found not to have been wanton, reckless, wilful or 168
malicious.] 169
[(l)] (k) The board of directors of the authority [shall have power to] 170
may purchase bonds, notes or other obligations of the authority out of 171
any funds available for such purpose. The authority may hold, cancel or 172
resell such bonds, notes or other obligations subject to and in accordance 173
with agreements with holders of its bonds, notes and other obligations. 174
[(m)] (l) All moneys received pursuant to the authority of this section, 175
whether as proceeds from the sale of bonds or as revenues, shall be 176
deemed to be trust funds to be held and applied solely as provided in 177
this section. Any officer with whom, or any bank or trust company with 178
which, such moneys shall be deposited shall act as trustee of such 179
moneys and shall hold and apply the same for the purposes of section 180
8-169jj, as amended by this act, and the resolution authorizing the bonds 181
of any issue or the trust agreement securing such bonds may provide. 182
[(n)] (m) Any holder of bonds, notes or other obligations issued under 183 Raised Bill No. 1012
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the provisions of this section, and the trustee or trustees under any trust 184
agreement, except to the extent the rights herein given may be restricted 185
by any resolution authorizing the issuance of or any such trust 186
agreement securing such bonds, may, either at law or in equity, by suit, 187
action, mandamus or other proceeding, protect and enforce any and all 188
rights under the laws of the state or granted under this section or under 189
such resolution or trust agreement and may enforce and compel the 190
performance of all duties required by this section or by such resolution 191
or trust agreement to be performed by the authority or by any officer, 192
employee or agent of the authority, including the fixing, charging and 193
collecting of the rates, rents, fees and charges herein authorized and 194
required by the provisions of such resolution or trust agreement to be 195
fixed, established and collected. 196
[(o)] (n) The authority may make representations and agreements for 197
the benefit of the holders of any bonds, notes or other obligations of the 198
state which are necessary or appropriate to ensure the exclusion from 199
gross income for federal income tax purposes of interest on bonds, notes 200
or other obligations of the state from taxation under the Internal 201
Revenue Code of 1986 or any subsequent corresponding internal 202
revenue code of the United States, as amended from time to time, 203
including agreement to pay rebates to the federal government of 204
investment earnings derived from the investment of the proceeds of the 205
bonds, notes or other obligations of the authority. Any such agreement 206
may include: (1) A covenant to pay rebates to the federal government of 207
investment earnings derived from the investment of the proceeds of the 208
bonds, notes or other obligations of the authority; (2) a covenant that the 209
authority will not limit or alter its rebate obligations until its obligations 210
to the holders or owners of such bonds, notes or other obligations are 211
finally met and discharged; and (3) provisions to (A) establish trust and 212
other accounts which may be appropriate to carry out such 213
representations and agreements, (B) retain fiscal agents as depositories 214
for such funds and accounts, and (C) provide that such fiscal agents may 215
act as trustee of such funds and accounts. 216
Sec. 2. Section 8-169qq of the general statutes is repealed and the 217 Raised Bill No. 1012
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following is substituted in lieu thereof (Effective from passage): 218
[(a) The state shall protect, save harmless and indemnify the 219
directors, officers and employees of the Connecticut Municipal 220
Redevelopment Authority from financial loss and expenses, including 221
legal fees and costs, if any, arising out of any claim, demand, suit or 222
judgment based upon any alleged act or omission of any such director, 223
officer or employee in connection with, or any other legal challenge to, 224
authority development projects within a Connecticut Municipal 225
Redevelopment Authority development district, provided any such 226
director, officer or employee is found to have been acting in the 227
discharge of such director, officer or employee's duties or within the 228
scope of such director, officer or employee's employment and any such 229
act or omission is found not to have been wanton, reckless, wilful or 230
malicious. 231
(b) In the event any bond, note or other obligation of the authority 232
cannot be paid by the authority, the state shall assume the liability of 233
and make payment on such debt.] 234
(a) For the purposes of this section, "required minimum capital 235
reserve" means the maximum amount permitted to be deposited in a 236
special capital reserve fund by the Internal Revenue Code of 1986, or 237
any subsequent corresponding internal revenue code of the United 238
States, as amended from time to time, to permit the interest on such 239
bonds to be excluded from gross income for federal tax purposes and 240
secured by such special capital reserve fund. 241
(b) In connection with the issuance of bonds or to refund bonds 242
previously issued by the authority, or in connection with the issuance of 243
bonds to effect a refinancing or other restructuring with respect to one 244
or more projects, the authority may create and establish one or more 245
reserve funds to be known as special capital reserve funds, and may pay 246
into such special capital reserve funds (1) any moneys appropriated and 247
made available by the state for the purposes of such special capital 248
reserve funds, (2) any proceeds of the sale of notes or bonds, to the extent 249 Raised Bill No. 1012
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provided in the resolution of said authority authorizing the issuance 250
thereof, and (3) any other moneys which may be made available to the 251
authority for the purpose of such special capital reserve funds from any 252
other source or sources. 253
(c) Except as otherwise provided in this section, the moneys held in 254
or credited to any special capital reserve fund established under this 255
section shall be used for (1) the payment of the principal of and interest, 256
when due, whether at maturity or by mandatory sinking fund 257
installments, on bonds of the authority secured by such special capital 258
reserve fund as such payments become due, or (2) the purchase of such 259
bonds of the authority and the payment of any redemption premium 260
required to be paid when such bonds are redeemed prior to maturity, 261
including reimbursement of a provider of bond insurance or of a credit 262
or liquidity facility that has paid such redemption premiums. The 263
authority may prohibit the withdrawal of moneys in any such special 264
capital reserve fund in an amount that would result in the balance of 265
such fund being less than (A) the maximum amount of principal and 266
interest becoming due by reasons of maturity or a required sinking fund 267
installment in the then current or any succeeding calendar year on the 268
bonds of said authority then outstanding, or (B) the required minimum 269
capital reserve, except for the purpose of paying such principal of, 270
redemption premium and interest on such bonds of the authority 271
secured by such special capital reserve becoming due and for the 272
payment of which other moneys of said authority are not available. The 273
authority may provide that it shall not issue bonds secured by a special 274
capital reserve fund at any time if the required minimum capital reserve 275
on the bonds outstanding and the bonds then to be issued and secured 276
by the same special capital reserve fund at the time of issuance exceeds 277
the moneys in the special capital reserve fund, unless the authority, at 278
the time of the issuance of such bonds, deposits in such special capital 279
reserve fund from the proceeds of the bonds so to be issued, or from 280
other sources, an amount which, together with the amount then in such 281
special capital reserve fund, will be not less than the required minimum 282
capital reserve. 283 Raised Bill No. 1012
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(d) Prior to December first, annually, the authority shall deposit into 284
any special capital reserve fund, the balance of which has fallen below 285
the required minimum capital reserve of such fund, the full amount 286
required to meet the minimum capital reserve of such fund, as available 287
to the authority from any resources of the authority not otherwise 288
pledged or dedicated to another purpose. On or before December first, 289
annually, but after the authority has made such required deposit, there 290
is deemed to be appropriated from the General Fund such sums, if any, 291
as shall be certified by the chairperson or vice-chairperson of the 292
authority to the Secretary of the Office of Policy and Management, the 293
State Treasurer and the joint standing committees of the General 294
Assembly having cognizance of matters relating to finance, revenue and 295
bonding and planning and development, as necessary to restore each 296
such special capital reserve fund to the amount equal to the required 297
minimum capital reserve of such fund, and such amounts shall be 298
allotted and paid to the authority. For the purpose of evaluation of any 299
such special capital reserve fund, obligations acquired as an investment 300
for any such special capital reserve fund shall be valued at amortized 301
cost. 302
(e) Nothing contained in this section shall preclude the authority 303
from establishing and creating other debt service reserve funds in 304
connection with the issuance of bonds or notes of the authority which 305
are not special capital reserve funds. Subject to any agreement or 306
agreements with holders of outstanding notes and bonds of the 307
authority, any amount or amounts allotted and paid to the authority 308
pursuant to subsection (d) of this section shall be repaid to the state from 309
moneys of the authority at such time as such moneys are not required 310
for any other of the authority's corporate purposes, and in any event 311
shall be repaid to the state on the date one year after all bonds and notes 312
of the authority theretofore issued on the date or dates such amount or 313
amounts are allotted and paid to the authority or thereafter issued, 314
together with interest on such bonds and notes, with interest on any 315
unpaid installments of interest and all costs and expenses in connection 316
with any action or proceeding by or on behalf of the holders thereof, are 317 Raised Bill No. 1012
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fully met and discharged. 318
(f) No bonds secured by a special capital reserve fund shall be issued 319
to pay project costs unless the authority has obtained the required 320
approvals under subsection (g) of this section and determines that the 321
revenues from the project shall be sufficient to (1) pay the principal of 322
and interest on the bonds issued to finance the project, (2) establish, 323
increase and maintain any reserves deemed by the authority to be 324
advisable to secure the payment of the principal of and interest on such 325
bonds, (3) pay the cost of maintaining the project in good repair and 326
keeping it properly insured, and (4) pay such other costs of the project 327
as may be required. 328
(g) No bonds secured by a special capital reserve fund shall be issued 329
by the authority until and unless such issuance has been approved by 330
the Secretary of the Office of Policy and Management or his or her 331
deputy. Any such approval by the secretary pursuant to this subsection 332
shall be in addition to (1) the otherwise required opinion of sufficiency 333
by the authority set forth in subsection (f) of this section, and (2) the 334
approval of the State Treasurer or the Deputy State Treasurer and the 335
documentation by the authority otherwise required under subsection 336
(a) of section 1-124. Such approval may provide for the waiver or 337
modification of such other requirements of this section as the secretary 338
determines to be necessary or appropriate in order to effectuate such 339
issuance, subject to all applicable tax covenants of the authority and the 340
state. 341
(h) Notwithstanding any other provision contained in this section, 342
the aggregate amount of bonds secured by such special capital reserve 343
fund authorized to be created and established by this section shall not 344
exceed fifty million dollars. 345
Sec. 3. (NEW) (Effective from passage) (a) Before any state officer, state 346
employee, state agency, state board or state commission, or any agent 347
thereof, for any purpose, (1) shall incur any financial obligation of the 348
state, or (2) shall enter into any agreement to covenants, events of 349 Raised Bill No. 1012
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default, remedies, priority rights or other similar terms in connection 350
with a financial obligation of the state, where such financial obligation 351
is (A) in excess of one million dollars, or (B) encumbers property or 352
rights of the state material to the operations of the state, such officer, 353
employee, agency, board or commission, or any agent thereof, shall 354
notify the State Treasurer of such proposed obligation or agreement and 355
receive a written acknowledgment under this section. Upon receipt of 356
such notification, the State Treasurer shall determine whether the 357
information provided is adequate for the State Treasurer to meet timely 358
required disclosure obligations under federal securities law. Once the 359
State Treasurer has determined that adequate disclosure information 360
has been received concerning the financial obligation, including any 361
document pursuant to which such financial obligation is to be incurred 362
and such additional information as may be requested by the State 363
Treasurer, the State Treasurer, or his or her designee, shall provide 364
written acknowledgment of such determination to the state officer, state 365
employee, state agency, state board or state commission, or any agent 366
thereof. The State Treasurer may establish, and revise from time to time, 367
exemptions from such filing requirements as the State Treasurer 368
determines are consistent with the state's obligations under the federal 369
securities laws. 370
(b) For the purposes of this section, (1) "state officer, state employee, 371
state agency, state board or state commission, or any agent thereof" 372
includes the John Dempsey Hospital Finance Corporation or any similar 373
organization; and (2) "financial obligation" means (A) a debt obligation, 374
(B) a derivative instrument entered into in connection with, or pledged 375
as security or a source of payment for, an existing or planned debt 376
obligation, (C) a guarantee of subparagraph (A) or (B) of this 377
subdivision, or (D) any other financial obligation, as defined in 17 CFR 378
240.15c2-12, as amended from time to time. 379
Sec. 4. Subsection (a) of section 3-37 of the general statutes is repealed 380
and the following is substituted in lieu thereof (Effective July 1, 2021): 381
(a) The Treasurer shall, annually, on or before December thirty-first, 382 Raised Bill No. 1012
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submit a final audited report to the Governor and a copy of such report 383
to the Investment Advisory Council, which shall include the following 384
information concerning the activities of the office of the State Treasurer 385
for the immediately preceding fiscal year ending June thirtieth: (1) 386
Complete financial statements and accompanying footnotes for the 387
combined investment funds prepared in accordance with generally 388
accepted accounting principles, which financial statements shall be 389
audited in accordance with generally accepted auditing standards and 390
supplementary schedules depicting the interests of the component 391
retirement plans and trust funds; (2) complete financial statements and 392
accompanying footnotes for the Short Term Investment Fund prepared 393
in accordance with generally accepted accounting principles and 394
supplementary schedules listing all assets held by the Short Term 395
Investment Fund; (3) a discussion and review of the performance of the 396
combined investment funds and Short Term Investment Fund for such 397
fiscal year in accordance with recognized and appropriate performance 398
presentation and disclosure, including an analysis of the return earned 399
by the portfolio and each combined investment fund as well as the risk 400
profile of the portfolio and each combined investment fund according 401
to investment industry standards; (4) the activities and transactions in 402
such reasonable detail as is appropriate of the cash management 403
division including information on the state's cash receipts and 404
disbursements for the fiscal year, and the debt management division; 405
[including the financial statements of the tax-exempt proceeds fund 406
prepared in accordance with generally accepted accounting principles;] 407
(5) financial statements and accompanying footnotes as well as a 408
summary of operating results for the Second Injury Fund for such fiscal 409
year; (6) a financial summary and report on the activities of the state's 410
unclaimed property program for such fiscal year; (7) a listing of the 411
companies from which state funds were divested based upon such 412
companies' business in Sudan, pursuant to the provisions of section 3-413
21e, and any companies identified by the Treasurer as companies from 414
which investment of state funds has been declared impermissible by the 415
Treasurer, pursuant to the provisions of section 3-21e; and (8) such other 416
information as the Treasurer deems of interest to the public. 417 Raised Bill No. 1012
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Sec. 5. Subsection (q) of section 3-62h of the general statutes is 418
repealed and the following is substituted in lieu thereof (Effective July 1, 419
2021): 420
(q) Any moneys held by the Treasurer or by a trustee pursuant to an 421
indenture of trust with respect to abandoned property fund bonds 422
including pledged revenues, other pledged receipts, funds or moneys 423
and proceeds from the sale of such abandoned property fund bonds, 424
may, pending the use or application of the proceeds thereof for an 425
authorized purpose, be (1) invested and reinvested in such obligations, 426
securities and investments as are set forth in subsection (f) of section 3-427
20 [,] and in participation certificates in the Short Term Investment 428
Funds created under sections 3-27a and 3-27f, [and in participation 429
certificates or securities of the Tax-Exempt Proceeds Fund created under 430
section 3-24a] or (2) deposited or redeposited in such bank or banks as 431
shall be provided in the proceedings. Unless the proceedings provide 432
otherwise, proceeds from investments authorized by this subsection, 433
less amounts required under the proceedings authorizing the issuance 434
of abandoned property fund bonds for the payment of Special 435
Abandoned Property Fund financing costs relating to such abandoned 436
property fund bonds, shall be credited to the Special Abandoned 437
Property Fund. 438
Sec. 6. Subsection (d) of section 7-406n of the general statutes is 439
repealed and the following is substituted in lieu thereof (Effective July 1, 440
2021): 441
(d) Any moneys held by the Treasurer or by a trustee pursuant to an 442
indenture of trust with respect to municipal pension solvency account 443
bonds including pledged revenues, other pledged receipts, funds or 444
moneys and proceeds from the sale of such municipal pension solvency 445
account bonds, may, pending the use or application of such proceeds 446
for an authorized purpose, be (1) invested and reinvested in such 447
obligations, securities and investments as are set forth in subsection (f) 448
of section 3-20 [,] and in participation certificates in the Short Term 449
Investment Funds created under sections 3-27a and 3-27f, [and in 450 Raised Bill No. 1012
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participation certificates or securities of the Tax-Exempt Proceeds Fund 451
created under section 3-24a,] or (2) deposited or redeposited in such 452
bank or banks as shall be provided in the proceedings authorizing the 453
issuance of municipal pension solvency account bonds. Unless the 454
proceedings provide otherwise, proceeds from investments authorized 455
by this subsection, less amounts required under the proceedings for the 456
payment of municipal pension solvency loan costs relating to such 457
municipal pension solvency account bonds, shall be credited to the 458
municipal pension solvency account. 459
Sec. 7. Subdivision (9) of subsection (b) of section 8-169jj of the general 460
statutes is repealed and the following is substituted in lieu thereof 461
(Effective July 1, 2021): 462
(9) Invest any funds not needed for immediate use or disbursement 463
in obligations issued or guaranteed by the United States or the state, 464
including the Short Term Investment Fund, [and the Tax-Exempt 465
Proceeds Fund,] and in other obligations that are legal investments for 466
savings banks in this state, and in-time deposits or certificates of deposit 467
or other similar banking arrangements secured in such manner as the 468
authority determines; 469
Sec. 8. Subsection (b) of section 8-336o of the general statutes is 470
repealed and the following is substituted in lieu thereof (Effective July 1, 471
2021): 472
(b) Any moneys held in the Housing Trust Fund may, pending the 473
use or application of the proceeds thereof for an authorized purpose, be 474
(1) invested and reinvested in such obligations, securities and 475
investments as are set forth in subsection (f) of section 3-20, in 476
participation certificates in the Short Term Investment Fund created 477
under sections 3-27a and 3-27f, [and in participation certificates or 478
securities of the Tax-Exempt Proceeds Fund created under section 3-479
24a,] (2) deposited or redeposited in such bank or banks at the direction 480
of the Treasurer, or (3) invested in participation units in the combined 481
investment funds, as defined in section 3-31b. Unless otherwise 482 Raised Bill No. 1012
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provided pursuant to subsection (c) of this section, proceeds from 483
investments authorized by this subsection shall be credited to the 484
Housing Trust Fund. 485
Sec. 9. Subsection (b) of section 32-7o of the general statutes is 486
repealed and the following is substituted in lieu thereof (Effective July 1, 487
2021): 488
(b) Any moneys held in the Connecticut Manufacturing Innovation 489
Fund may, pending the use or application of the proceeds thereof for an 490
authorized purpose, be (1) invested and reinvested in such obligations, 491
securities and investments as are set forth in subsection (f) of section 3-492
20, in participation certificates in the Short Term Investment Fund 493
created under sections 3-27a and 3-27f, [and in participation certificates 494
or securities of the Tax-Exempt Proceeds Fund created under section 3-495
24a,] (2) deposited or redeposited in any bank or banks, at the direction 496
of the Treasurer, or (3) invested in participation units in the combined 497
investment funds, as defined in section 3-31b. Proceeds from 498
investments authorized by this subsection shall be credited to the 499
Connecticut Manufacturing Innovation Fund. 500
Sec. 10. Subsection (b) of section 32-602 of the general statutes is 501
repealed and the following is substituted in lieu thereof (Effective July 1, 502
2021): 503
(b) For these purposes, the authority shall have the following powers: 504
(1) To have perpetual succession as a body corporate and to adopt 505
procedures for the regulation of its affairs and the conduct of its business 506
as provided in subsection (f) of section 32-601, to adopt a corporate seal 507
and alter the same at its pleasure, and to maintain an office at such place 508
or places within the city of Hartford as it may designate; (2) to sue and 509
be sued, to contract and be contracted with; (3) to employ such 510
assistants, agents and other employees as may be necessary or desirable 511
to carry out its purposes, which employees shall be exempt from the 512
classified service and shall not be employees, as defined in subsection 513
(b) of section 5-270, to fix their compensation, to establish and modify 514 Raised Bill No. 1012
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personnel procedures as may be necessary from time to time and to 515
negotiate and enter into collective bargaining agreements with labor 516
unions; (4) to acquire, lease, hold and dispose of personal property for 517
the purposes set forth in this section; (5) to procure insurance against 518
any liability or loss in connection with its property and other assets, in 519
such amounts and from such insurers as it deems desirable and to 520
procure insurance for employees; (6) to invest any funds not needed for 521
immediate use or disbursement in obligations issued or guaranteed by 522
the United States of America or the state of Connecticut, including the 523
Short Term Investment Fund, [and the Tax-Exempt Proceeds Fund,] and 524
in other obligations which are legal investments for savings banks in 525
this state and in time deposits or certificates of deposit or other similar 526
banking arrangements secured in such manner as the authority 527
determines; (7) notwithstanding any other provision of the general 528
statutes, upon request of the Secretary of the Office of Policy and 529
Management, to enter into an agreement for funding to facilitate the 530
relocation of state offices within the capital city economic development 531
district; (8) to enter into such memoranda of understanding as the 532
authority deems appropriate to carry out its responsibilities under this 533
chapter; and (9) to do all acts and things necessary or convenient to carry 534
out the purposes of and the powers expressly granted by this section. 535
Sec. 11. Section 10-63b of the general statutes is repealed and the 536
following is substituted in lieu thereof (Effective from passage): 537
Within thirty days of receipt of an application pursuant to section 10-538
63a the regional board of education shall call for the appointment of a 539
committee to study issues relating to withdrawal or dissolution. The 540
committee shall consist of the following: One member of the board of 541
education of each town within the district, to be selected by each such 542
board, if any, or if none, an elector to be elected by the legislative body 543
in such town; one member of the board of finance or comparable fiscal 544
body of each town within the district to be selected by each such board 545
or body; two members of the regional board of education, to be selected 546
by such board, no more than one of whom may be a resident of a town 547
making the application for the appointment of the committee; one 548 Raised Bill No. 1012
LCO No. 4403 18 of 22
member to be appointed by the Commissioner of Education, who [shall] 549
is not [be] a resident of any town within the district; [the State Treasurer 550
or the Treasurer's designee,] and one member to be appointed by the 551
regional board of education, who [shall be] is an expert in municipal 552
bonding and financing and who [shall] is not [be] a resident of any town 553
within the district. The members shall receive no compensation for their 554
services, but their expenses and those incurred by the regional board in 555
connection with withdrawal or dissolution procedures shall be paid by 556
the towns applying for withdrawal or dissolution. The appointee of the 557
Commissioner of Education shall call the first meeting of the committee, 558
and the committee shall organize and function in accordance with 559
section 10-41. 560
Sec. 12. Subdivision (3) of subsection (a) of section 10-283 of the 561
general statutes is repealed and the following is substituted in lieu 562
thereof (Effective July 1, 2021): 563
(3) (A) All final calculations completed by the Department of 564
Administrative Services for school building projects shall include a 565
computation of the state grant for the school building project amortized 566
on a straight line basis over a twenty-year period for school building 567
projects with costs equal to or greater than two million dollars and over 568
a ten-year period for school building projects with costs less than two 569
million dollars. Any town or regional school district which abandons, 570
sells, leases, demolishes or otherwise redirects the use of such a school 571
building project to other than a public school use during such 572
amortization period shall refund to the state the unamortized balance of 573
the state grant remaining as of the date the abandonment, sale, lease, 574
demolition or redirection occurs. The amortization period for a project 575
shall begin on the date the project was accepted as complete by the local 576
or regional board of education. A town or regional school district 577
required to make a refund to the state pursuant to this subdivision may 578
request forgiveness of such refund if the building is redirected for public 579
use. The Department of Administrative Services shall include as an 580
addendum to the annual school construction priority list all those towns 581
requesting forgiveness. General Assembly approval of the priority list 582 Raised Bill No. 1012
LCO No. 4403 19 of 22
containing such request shall constitute approval of such request. This 583
subdivision shall not apply to projects to correct safety, health and other 584
code violations or to remedy certified school indoor air quality 585
emergencies approved pursuant to subsection (b) of this section or 586
projects subject to the provisions of section 10-285c. 587
(B) If the board of governors for an independent institution of higher 588
education, as defined in subsection (a) of section 10a-173, or the 589
equivalent of such a board, on behalf of the independent institution of 590
higher education, that operates an interdistrict magnet school makes 591
private use of any portion of a school building in which such operator 592
received a school building project grant pursuant to this chapter, such 593
operator shall annually submit a report to the Commissioner of 594
Education that demonstrates that such operator provides an equal to or 595
greater than in-kind or supplemental benefit of such institution's 596
facilities to students enrolled in such interdistrict magnet school that 597
outweighs the private use of such school building. If the commissioner 598
finds that the private use of such school building exceeds the in-kind or 599
supplemental benefit to magnet school students, the commissioner may 600
require such institution to refund to the state the unamortized balance 601
of the state grant. 602
[(C) Any moneys refunded to the state pursuant to subparagraphs 603
(A) and (B) of this subdivision shall be deposited in the state's tax-604
exempt proceeds fund and used not later than sixty days after 605
repayment to pay debt service on, including redemption, defeasance or 606
purchase of, outstanding bonds of the state the interest on which is not 607
included in gross income pursuant to Section 103 of the Internal 608
Revenue Code of 1986, or any subsequent corresponding internal 609
revenue code of the United States, as from time to time amended.] 610
Sec. 13. Subsection (x) of section 3-20 of the general statutes is 611
repealed and the following is substituted in lieu thereof (Effective July 1, 612
2021): 613
(x) Notwithstanding any provision of the general statutes, public acts 614 Raised Bill No. 1012
LCO No. 4403 20 of 22
or special acts, [upon] any sale, lease or other disposition to or use by a 615
nongovernmental entity of all or a portion of any project financed with 616
proceeds of bonds of the state the interest on which is not included in 617
gross income pursuant to Section 103 of the Internal Revenue Code of 618
1986, or any subsequent corresponding internal revenue code of the 619
United States, as from time to time amended, that would otherwise 620
cause such bonds to be treated as private activity bonds within the 621
meaning of Section 141 of said internal revenue code [,] shall be subject 622
to the prior approval of the Treasurer, and the Treasurer is authorized 623
to transfer all or a portion of the proceeds received with respect to and 624
at the time of such disposition or use, in an amount not less than the 625
amount required by said internal revenue code to preserve the exclusion 626
from gross income of interest on such bonds, (1) to the General Fund to 627
pay debt service on, including redemption, defeasance or purchase of, 628
outstanding bonds of the state the interest on which is not included in 629
gross income pursuant to Section 103 of said internal revenue code, (2) 630
with the approval of the State Bond Commission, in lieu of the issuance 631
of bonds, to the appropriate account or fund for any projects or purposes 632
authorized by the State Bond Commission pursuant to a bond act and 633
with the same force and effect as bond proceeds, thereby reducing the 634
authority to issue bonds by such dollar amount, provided in any event 635
that any such transfer does not cause the interest on the subject bonds 636
to become included in gross income pursuant to Section 103 of said 637
internal revenue code. 638
Sec. 14. Subsection (b) of section 22a-260a of the general statutes is 639
repealed and the following is substituted in lieu thereof (Effective July 1, 640
2021): 641
(b) Wherever the words "Connecticut Resources Recovery Authority" 642
are used in any public or special act of 2014 or in the following sections 643
of the general statutes, the words "Materials Innovation and Recycling 644
Authority" shall be substituted in lieu thereof: 1-79, 1-120, 1-124, 1-125, 645
[3-24d, 3-24f,] 7-329a, 12-412, 12-459, 16-1, 16-245, 16-245b, 22a-208a, 22a-646
208v, 22a-209h, 22a-219b, 22a-220, 22a-241, 22a-260, 22a-261, 22a-263a, 647
22a-263b, 22a-268a, 22a-268b, 22a-270a, 22a-272a, 22a-282, 22a-283, 22a-648 Raised Bill No. 1012
LCO No. 4403 21 of 22
284, 32-1e and 32-658. 649
Sec. 15. Subsection (a) of section 32-11f of the general statutes is 650
repealed and the following is substituted in lieu thereof (Effective July 1, 651
2021): 652
(a) (1) Wherever the term "Connecticut Development Authority" is 653
used in the following sections of the general statutes, the term 654
"Connecticut Innovations, Incorporated" shall be substituted in lieu 655
thereof: [3-24d, 3-24f,] 3-99d, 8-134, 8-134a, 8-192, 8-192a, 8-240m, 13b-656
79w, 16-243v, 22a-134, 22a-173, 22a-259, 22a-264, 25-33a, 32-1l, 32-3, 32-657
4l, 32-6j, 32-9c, 32-9n, 32-9qq, 32-22b, 32-23l, 32-23o, 32-23q, 32-23r, 32-658
23s, 32-23t, 32-23v, 32-23x, 32-23z, 32-23aa, 32-23qq, 32-23ss, 32-23tt, 32-659
31a, 32-61, 32-68a, 32-141, 32-222, 32-223, 32-227, 32-244, 32-244a, 32-262, 660
32-263, 32-265, 32-266, 32-285, 32-341, 32-477, 32-500, 32-503, 32-609, 32-661
761, 32-763 and 32-768. 662
(2) Wherever the term "authority" is used in the following sections of 663
the general statutes, the term "corporation" shall be substituted in lieu 664
thereof: 32-14, 32-15, 32-16, 32-16a, 32-17a, 32-18, 32-19, 32-22, 32-22a, 32-665
23a, 32-23j, 32-23o, 32-23p, 32-23q, 32-23r, 32-23s, 32-23v, 32-23x, 32-23y, 666
32-23z, 32-23bb, 32-23ii, 32-23jj, 32-23kk, 32-23ll, 32-23qq, 32-23ss, 32-667
23tt, 32-23uu, 32-23vv, 32-31a, 32-61, 32-62, 32-63, 32-64, 32-65, 32-67, 32-668
68a, 32-262, 32-263, 32-265, 32-267, 32-269, 32-270, 32-271, 32-272, 32-280, 669
32-282, 32-285, 32-341, 32-356, 32-500, 32-503, 32-717 and 32-718. 670
Sec. 16. Sections 3-24a to 3-24h, inclusive, of the general statutes are 671
repealed. (Effective July 1, 2021) 672
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 8-169oo
Sec. 2 from passage 8-169qq
Sec. 3 from passage New section
Sec. 4 July 1, 2021 3-37(a)
Sec. 5 July 1, 2021 3-62h(q)
Sec. 6 July 1, 2021 7-406n(d) Raised Bill No. 1012
LCO No. 4403 22 of 22
Sec. 7 July 1, 2021 8-169jj(b)(9)
Sec. 8 July 1, 2021 8-336o(b)
Sec. 9 July 1, 2021 32-7o(b)
Sec. 10 July 1, 2021 32-602(b)
Sec. 11 from passage 10-63b
Sec. 12 July 1, 2021 10-283(a)(3)
Sec. 13 July 1, 2021 3-20(x)
Sec. 14 July 1, 2021 22a-260a(b)
Sec. 15 July 1, 2021 32-11f(a)
Sec. 16 July 1, 2021 Repealer section
Statement of Purpose:
To (1) amend provisions concerning the bonding authority of the
Connecticut Municipal Redevelopment Authority, (2) require state
agencies to notify the Treasurer of reportable financial obligations, (3)
remove the Treasurer from the regional school district committee, (4)
remove provisions concerning the Tax-Exempt Proceeds Fund, and (5)
require the approval of the Treasurer for certain transactions.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]