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General Assembly Substitute Bill No. 5427
February Session, 2022
AN ACT CONCERNING THE RECOMMENDATIONS OF THE OFFICE
OF FINANCE WITHIN THE OFFICE OF POLICY AND MANAGEMENT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (c) of section 7-374c of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective October 2
1, 2022): 3
(c) Any municipality which has no outstanding pension deficit 4
funding bonds, other than an earlier series of such obligations issued 5
under subsection (b) of section 7-374b or this section to partially fund an 6
unfunded past pension obligation, may authorize and issue pension 7
deficit funding bonds to fund all or a portion of an unfunded past 8
benefit obligation, as determined by an actuarial valuation, and the 9
payment of costs related to the issuance of such bonds in accordance 10
with the following requirements. 11
(1) The municipality shall, within the time and in the manner 12
prescribed by regulations adopted by the secretary or as otherwise 13
required by the secretary, notify the secretary of its intent to issue such 14
pension deficit funding bonds and shall include with such notice (A) the 15
actuarial valuation, (B) an actuarial analysis of the method by which the 16
municipality proposes to fund any unfunded past benefit obligation not 17
to be defrayed by the pension deficit funding bonds, which method may 18 Substitute Bill No. 5427
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include a plan of issuance of a series of pension deficit funding bonds, 19
(C) an explanation of the municipality’s investment strategic plan for 20
the pension plan with respect to which the pension deficit funding 21
bonds are to be issued, including, but not limited to, an asset allocation 22
plan, (D) a [three-year] five-year financial plan, including the major 23
assumptions and plan of finance for such pension deficit funding bonds, 24
(E) a comparison of the anticipated effects of funding the unfunded past 25
benefit obligation through the issuance of pension deficit funding bonds 26
with the funding of the obligation through the annual actuarially 27
recommended contribution, prepared in the manner prescribed by the 28
secretary, (F) documentation of the municipality's authorization of the 29
issuance of such pension deficit funding bonds including a certified 30
copy of the resolution or ordinance of the municipality authorizing the 31
issuance of the pension deficit funding bonds and an opinion of 32
nationally recognized bond counsel as to the due authorization of the 33
issuance of the bonds, (G) documentation that the municipality has 34
adopted an ordinance, or with respect to a municipality not having the 35
authority to make ordinances, has adopted a resolution by a two-thirds 36
vote of the members of its legislative body, requiring the municipality 37
to appropriate funds in an amount sufficient to meet the actuarially 38
required contribution and contribute such amounts to the plan as 39
required in subdivision (3) of subsection (c) of this section, (H) the 40
methodology used and actuarial assumptions that will be utilized to 41
calculate the actuarially recommended contribution, (I) a draft official 42
statement with respect to the issuance of the pension deficit funding 43
bonds, and (J) such other information and documentation as reasonably 44
required by the secretary or the Treasurer to carry out the provisions of 45
this section. The secretary and the Treasurer may, if they deem 46
necessary, hire an independent actuary to review the information 47
submitted by the municipality. 48
(2) Not later than ten days after the sale of the pension deficit funding 49
bonds, the municipality shall provide the secretary and the Treasurer 50
with a final financing summary comparing the anticipated effects of 51
funding the unfunded past benefit obligation through the issuance of 52 Substitute Bill No. 5427
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the pension deficit funding bonds with the funding of the obligation 53
through the annual actuarially recommended contribution, prepared in 54
the manner prescribed by the secretary. 55
(3) As long as the pension deficit funding bonds or any bond 56
refunding such bonds are outstanding, the municipality shall (A) for 57
each fiscal year of the municipality commencing with the fiscal year in 58
which the bonds are issued, appropriate funds in an amount sufficient 59
to meet the actuarially required contribution and contribute such 60
amount to the plan, and (B) notify the secretary annually, who shall in 61
turn notify the Treasurer, of the amount or the rate of any such 62
actuarially recommended contribution and the amount or the rate, if 63
any, of the actual annual contribution by the municipality to the pension 64
plan to meet such actuarially recommended contribution. On an annual 65
basis, the municipality shall provide the secretary and the Treasurer 66
with: (i) The actuarial valuation of the pension plan, (ii) a specific 67
identification, in a format to be determined by the secretary, of any 68
changes that have been made in the actuarial assumptions or methods 69
compared to the previous actuarial valuation of the pension plan, (iii) 70
the footnote disclosure and required supplementary information 71
disclosure required by GASB Statement Number 27 with respect to the 72
pension plan, and (iv) a review of the investments of the pension plan 73
including a statement of the current asset allocation and an analysis of 74
performance by asset class. With respect to a municipality which issues 75
pension deficit funding bonds on or after July 1, 2006, in any fiscal year 76
for which such municipality fails to appropriate sufficient funds to meet 77
the actuarially required contribution in accordance with the provisions 78
of this subdivision there shall be deemed appropriated an amount 79
sufficient to meet such requirement, notwithstanding the provisions of 80
any other general statute or of any special act, charter, special act 81
charter, home-rule ordinance, local ordinance or local law. 82
(4) The municipality shall not issue pension deficit funding bonds 83
prior to, or more than six months subsequent to, receipt of the written 84
final review required under subsection (d) of this section. A 85 Substitute Bill No. 5427
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municipality may renotify the secretary of its intention to issue pension 86
deficit funding bonds and provide the secretary with updated 87
information and documentation in the manner and as described in 88
subdivision (1) of this subsection, and request an updated final review 89
from the secretary if more than six months will elapse between the 90
receipt of the prior final review of the secretary and the proposed date 91
of issue of the pension deficit funding bonds. 92
Sec. 2. Subsection (e) of section 7-392 of the general statutes is 93
repealed and the following is substituted in lieu thereof (Effective October 94
1, 2022): 95
(e) The treasurer or other officer having authority over the financial 96
affairs of any reporting agency shall, annually, file a statement 97
concerning the accounts and finances of such agency with the (1) town 98
clerk of the town in which such agency is located, and (2) Secretary of 99
the Office of Policy and Management, upon the secretary's request. Such 100
statement shall include, but shall not be limited to, a listing of major 101
disbursements and sources of receipts and shall be filed not later than 102
ninety days after the end of the fiscal year or period which is the subject 103
of the statement. Each treasurer or other officer who fails to file a 104
statement required pursuant to this subsection shall be fined five 105
hundred dollars for each statement not filed. The fine shall be levied and 106
collected by the town clerk. 107
Sec. 3. Section 7-393 of the general statutes is repealed and the 108
following is substituted in lieu thereof (Effective October 1, 2022): 109
Upon the completion of an audit, the independent auditor shall file 110
certified copies of the audit report with (1) the appointing authority, (2) 111
in the case of a town, city or borough, with the clerk of such town, city 112
or borough, (3) in the case of a regional school district, with the clerks of 113
the towns, cities or boroughs in which such regional school district is 114
located and with the board of education, (4) in the case of an audited 115
agency, with the clerks of the towns, cities or boroughs in which such 116
audited agency is located, and (5) in each case, with the Secretary of the 117 Substitute Bill No. 5427
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Office of Policy and Management. Such copies shall be filed within six 118
months from the end of the fiscal year of the municipality, regional 119
school district or audited agency, but the secretary may grant an 120
extension of not more than thirty days, provided the auditor making the 121
audit and the chief executive officer of the municipality, regional school 122
district or audited agency shall jointly submit a request in writing to the 123
secretary stating the reasons for such extension at least thirty days prior 124
to the end of such six-month period. If the reason for the extension 125
relates to deficiencies in the accounting system of the municipality, 126
regional school district or audited agency the request must be 127
accompanied by a corrective action plan. The secretary may, after a 128
hearing with the auditor and officials of the municipality, regional 129
school district or audited agency, grant an additional extension if 130
conditions warrant. Said auditor shall preserve all of his working papers 131
employed in the preparation of any such audit until the expiration of 132
three years from the date of filing a certified copy of the audit with the 133
secretary and such working papers shall be available, upon written 134
request and upon reasonable notice from the secretary, during such time 135
for inspection by the secretary or his authorized representative, at the 136
office or place of business of the auditor, during usual business hours. 137
Any municipality, regional school district, audited agency or auditor 138
who fails to have the audit report filed on its behalf within six months 139
from the end of the fiscal year or within the time granted by the secretary 140
shall be referred by the secretary to the Municipal Finance Advisory 141
Commission established pursuant to section 7-394b, assessed a civil 142
penalty of not less than one thousand dollars but not more than ten 143
thousand dollars [. The] or both, except that the secretary may waive 144
such [penalty] penalties if, in [his] the secretary's opinion, there appears 145
to be reasonable cause for not having completed or provided the 146
required audit report, provided an official of the municipality, regional 147
school district or audited agency or the auditor submits a written 148
request for such waiver. 149
Sec. 4. Subsection (d) of section 7-395 of the general statutes is 150
repealed and the following is substituted in lieu thereof (Effective October 151 Substitute Bill No. 5427
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1, 2022): 152
(d) The secretary shall refer to the Municipal Finance Advisory 153
Commission any municipality that has not been previously referred to 154
said commission pursuant to subsection (b) of this section or section 7-155
576, 7-576a, as amended by this act, or 7-576c, as amended by this act, 156
provided the municipality has: 157
(1) A negative fund balance percentage; 158
(2) Reported a fund balance percentage of less than five per cent in 159
the three immediately preceding fiscal years; 160
(3) Reported [a declining fund balance trend] an operating deficit in 161
the two immediately preceding fiscal years and a fund balance 162
percentage of less than five per cent in the immediately preceding fiscal 163
year, as determined by the statement of revenues, expenditures and 164
changes in fund balance of the general fund of the audited financial 165
statements of the municipality; 166
(4) Issued tax or [bond] revenue anticipation notes in the three 167
immediately preceding fiscal years to meet cash liquidity; 168
(5) [Had a general fund annual operating budget deficit of one and 169
one-half per cent or more of such municipality's general fund revenues 170
in the immediately preceding fiscal year] Did not file an annual audit 171
report in the twelve months after the end of the fiscal year; 172
(6) [Had a general fund annual operating budget deficit of two per 173
cent or more of such municipality's average general fund revenues in 174
the two immediately preceding fiscal years] Reported an annual audit 175
that included at least one material or significant audit finding that was 176
reported in the annual audits of the two immediately preceding fiscal 177
years; or 178
(7) Received a bond rating below A from a bond rating agency. 179 Substitute Bill No. 5427
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Sec. 5. Section 7-406c of the general statutes is repealed and the 180
following is substituted in lieu thereof (Effective October 1, 2022): 181
(a) Not later than July 1, 2014, the Secretary of the Office of Policy and 182
Management shall, in consultation with the Department of Education, 183
the Connecticut Conference of Municipalities and the Council of Small 184
Towns, develop and implement a uniform system of accounting for 185
municipal revenues and expenditures, including, but not limited to, 186
board of education and grant agency expenditures and revenue. Such 187
uniform system of accounting shall include a uniform chart of accounts 188
to be used at the municipal level. Such chart of accounts shall include, 189
but not be limited to, all amounts and sources of revenue and donations 190
of cash and real or personal property in the aggregate totaling five 191
hundred dollars or more received by a municipality. The secretary shall 192
make such chart of accounts available on the Internet web site of the 193
Office of Policy and Management. 194
(b) Not later than June 30, 2015, each municipality shall implement 195
the uniform system of accounting for municipal revenues and 196
expenditures developed pursuant to subsection (a) of this section by 197
using such uniform system to complete and file annual reports with the 198
Office of Policy and Management as may be required by the secretary in 199
order to increase transparency regarding municipal expenditures and to 200
meet the state's benchmarking goals. Any annual report required 201
pursuant to this subsection shall be filed not later than January thirty-202
first annually. 203
(c) Not later than January 31, 2023, and annually thereafter, each 204
municipality shall file financial data with the Office of Policy and 205
Management. Such data shall (1) be filed electronically, in a form and 206
manner prescribed by the Secretary of the Office of Policy and 207
Management, and (2) contain such municipality's audited financial 208
statements and any other information required by said secretary to 209
determine the financial condition of such municipality. 210
Sec. 6. Section 7-560 of the general statutes is repealed and the 211 Substitute Bill No. 5427
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following is substituted in lieu thereof (Effective October 1, 2022): 212
Whenever used in subsection (a) of section 7-394b, and sections 7-560 213
to 7-579, inclusive, the following definitions shall apply: 214
(1) "Attorney General" means the Attorney General of the state of 215
Connecticut. 216
(2) "Certified municipality" means a municipality that has been 217
certified as a tier I or tier II municipality by the secretary. 218
(3) "Chief executive officer" means the officer described in section 7-219
193. 220
(4) "Debt service payment fund" means the fund into which the 221
proceeds of the property tax intercept procedure are deposited and from 222
which debt service on all outstanding general obligations of a 223
municipality which have a term of more than one year and additionally 224
all outstanding general obligations which the municipality determines 225
are to be supported by the tax intercept procedure shall be paid as 226
provided in subsection (a) of section 7-394b and sections 7-560 to 7-579, 227
inclusive. 228
(5) "Debt service payment fund requirement" means an amount at 229
least equal to the aggregate amount of principal, sinking fund 230
installments, if any, and interest during the then current fiscal year as 231
the same become due and payable on all outstanding general 232
obligations of the municipality which have a term of more than one year 233
and additionally all outstanding general obligations which the 234
municipality determines are to be supported by the tax intercept 235
procedure. 236
(6) "Deficit" means with respect to the general fund of any 237
municipality, any cumulative excess of expenditures, encumbrances, or 238
other uses of funds for any fiscal year and all prior fiscal years over 239
revenues of the municipality for such period and the prior year's 240
unassigned fund balance, as reflected in the most recent audited 241 Substitute Bill No. 5427
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financial statements of such municipality. For purposes of determining 242
such excess, revenues shall not include the proceeds of tax anticipation 243
notes and expenditures shall not include any principal payment of tax 244
anticipation notes. 245
(7) "Deficit obligation" means any general obligation with a term of 246
more than one year or any bond or any note issued in anticipation 247
thereof, issued by a municipality either for the purpose of or having the 248
effect of reducing, eliminating or preventing a general fund, special 249
revenue fund or enterprise fund deficiency, other than any obligation 250
issued pursuant to chapter 110. 251
(8) "Designated tier I municipality" means a municipality designated 252
as a tier I municipality in accordance with the provisions of section 7-253
576a, as amended by this act. 254
(9) "Designated tier II municipality" means a municipality designated 255
as a tier II municipality in accordance with the provisions of section 7-256
576b, as amended by this act. 257
(10) "Designated tier III municipality" means a municipality 258
designated as a tier III municipality in accordance with the provisions 259
of section 7-576c, as amended by this act. 260
(11) "Designated tier IV municipality" means a municipality 261
designated as a tier IV municipality in accordance with the provisions 262
of section 7-576e, as amended by this act. 263
(12) "Equalized mill rate" means the tax rate derived from the most 264
recent available grand levy of a municipality divided by the equalized 265
net grand list on which such levy is based, as determined by the 266
secretary in accordance with section 10-261a. 267
(13) "Fund balance" means the amount that assets and deferred 268
outflow of resources of a municipality's general fund exceeds the 269
liabilities and deferred inflow of resources of the general fund of the 270
municipality, as of the fiscal year ended as reflected in the municipality's 271 Substitute Bill No. 5427
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most recent audited financial statements presented in accordance with 272
generally accepted accounting principles. 273
(14) "Fund balance percentage" means the fund balance of the general 274
fund of a municipality as of the fiscal year ended in the municipality's 275
most recent audited financial statements and presented in accordance 276
with generally accepted accounting principles, divided by the sum of 277
revenues of the general fund and operating transfers into the general 278
fund for the fiscal year. 279
(15) "General fund deficiency" means a deficit or a projected fiscal 280
year deficit, or both. 281
(16) "General obligation" means an obligation issued by a 282
municipality and secured by the full faith and credit and taxing power 283
of such municipality including any contingent obligation which is 284
payable from the general fund and is subject to annual appropriation. 285
(17) "Maximum required capital reserve" means the maximum 286
aggregate amount of principal, interest and other amounts due and 287
owing during any succeeding fiscal year, excluding any sinking fund 288
installments payable in a prior fiscal year on outstanding general 289
obligations of a certified municipality supported by a special capital 290
reserve fund issued pursuant to subsection (a) of section 7-394b and 291
sections 7-568 to 7-579, inclusive. 292
(18) "Minimum required capital reserve" means the aggregate 293
amount of principal, sinking fund installments, interest and other 294
amounts due and owing during the next succeeding fiscal year on 295
outstanding general obligations of a certified municipality supported by 296
a special capital reserve fund pursuant to subsection (a) of section 7-394b 297
and sections 7-560 to 7-579, inclusive. 298
(19) "Municipal Accountability Review Board" means the Municipal 299
Accountability Review Board established pursuant to section 7-576d, as 300
amended by this act. 301 Substitute Bill No. 5427
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(20) "Municipal aid" means formula grants, grants, payments in lieu 302
of taxes, reimbursements, payments and other funding provided by the 303
state to municipalities and used to fund municipal general fund 304
budgets, including education budgets. 305
(21) "Municipal Finance Advisory Commission" means the Municipal 306
Finance Advisory Commission established in section 7-394b. 307
(22) "Municipal restructuring fund loan" means a loan received by a 308
municipality from the Municipal Restructuring Fund pursuant to 309
section 7-576i, as amended by this act. 310
[(22)] (23) "Municipal revenue increase in fiscal year ending June 30, 311
2018, as a per cent of revenues" means the net difference in estimated 312
municipal revenues from state sources and new municipal taxing 313
authority as compiled by the secretary pursuant to section 4-71b for the 314
fiscal year ending June 30, 2018, as compared to the estimated municipal 315
revenues from such sources compiled by the secretary pursuant to 316
section 4-71b for the fiscal year ending June 30, 2017, divided by the sum 317
of revenues of the general fund and operating transfers into the general 318
fund as reported in the municipality's audited financial statements for 319
the fiscal year ending June 30, 2016. 320
[(23)] (24) "Municipality" means any town, city, borough, 321
consolidated town and city, consolidated city and borough, any 322
metropolitan district, any district, as defined in section 7-324, and any 323
other political subdivision of the state having the power to levy taxes 324
and to issue bonds, notes or other obligations. 325
[(24)] (25) "Obligation" means any bond, bond anticipation note or 326
other interim funding obligation, certificate of participation, security, 327
financing lease, installment purchase agreements, capital lease, 328
receivable or other asset sale, refinancing covered by this definition and 329
any other transaction which constitutes debt in accordance with both 330
municipal reporting standards in section 7-394a and the regulations 331
prescribing municipal financial reporting adopted by the secretary. 332 Substitute Bill No. 5427
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[(25)] (26) "Outstanding obligation" means any obligation with 333
respect to which a principal or interest payment, sinking fund 334
installment or other payment or deposit is, or will be, due in the future 335
and for which moneys or defeasance securities have not been deposited 336
in escrow. 337
[(26)] (27) "Projected fiscal year deficit" means, with respect to the 338
general fund of any municipality during any fiscal year, the excess of 339
estimated expenditures and uses of funds for the fiscal year over 340
estimated revenues and any cumulative unassigned general fund 341
balance from the prior fiscal year. For purposes of determining such 342
excess, estimated revenues shall not include the proceeds of tax 343
anticipation notes and estimated expenditures shall not include any 344
principal payment of tax anticipation notes. 345
[(27)] (28) "Property taxes" means all taxes on real and personal 346
property levied by the municipality in accordance with the general 347
statutes including any interest, penalties and other related charges, and 348
shall not mean any rent, rate, fee, special assessment or other charge 349
based on benefit or use. 350
[(28)] (29) "Property tax intercept procedure" means a procedure 351
where a municipality provides for the collection and deposit in a debt 352
service payment fund maintained with a trustee of all property taxes 353
needed to meet the debt service payment fund requirement and which 354
meets all the requirements of section 7-562. 355
[(29)] (30) "Property tax levy" means the mill rate of the municipality 356
multiplied by the net taxable grand list of the municipality. 357
[(30)] (31) "Revenues" means, with respect to the general fund for any 358
municipality for any fiscal year, property taxes and other moneys that 359
are generally available for, accounted for and deposited in the 360
municipality's general fund. 361
[(31)] (32) "Secretary" means the Secretary of the Office of Policy and 362
Management. 363 Substitute Bill No. 5427
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[(32)] (33) "Special capital reserve fund" means the fund established 364
pursuant to section 7-571 to secure the timely payment of principal and 365
interest on general obligations issued by a certified municipality 366
approved by the Treasurer pursuant to section 7-573. 367
[(33)] (34) "State" means the state of Connecticut. 368
[(34)] (35) "Tier I municipality" means any municipality which has 369
applied to and been certified by the secretary as a tier I municipality. 370
[(35)] (36) "Tier II municipality" means any municipality which has 371
applied to and been certified by the secretary as a tier II municipality. 372
[(36)] (37) "Treasurer" means the Treasurer of the state of Connecticut. 373
[(37)] (38) "Trustee" means any trust company or bank having the 374
powers of a trust company within or without the state, appointed by the 375
municipality as trustee for the municipality's tax intercept procedure or 376
special capital reserve fund and approved by the Treasurer, as well as 377
any successor trust company or bank having the powers of a trust 378
company within or without the state succeeding a prior trust company 379
or bank as trustee, so appointed and approved. 380
Sec. 7. Section 7-576a of the general statutes is repealed and the 381
following is substituted in lieu thereof (Effective October 1, 2022): 382
(a) [The chief elected official of a municipality may apply to the 383
secretary to request designation as a tier I municipality if any of the 384
following conditions exist: (1) The municipality has no bond rating, or 385
its highest bond rating is A or above, provided the municipality has no 386
rating that is not investment grade, receives less than thirty per cent of 387
its current fiscal year general fund budget revenues in the form of 388
municipal aid from the state, has a positive fund balance percentage, 389
and has a municipal revenue increase in fiscal year ending June 30, 2018, 390
as a per cent of revenues of two per cent or more, (2) the municipality 391
has no bond rating or its highest bond rating is A, provided the 392
municipality has no rating that is not investment grade, receives less 393 Substitute Bill No. 5427
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than thirty per cent of its current fiscal year general fund budget 394
revenues in the form of municipal aid from the state, and had a positive 395
fund balance percentage of less than five per cent, or (3) the 396
municipality's highest bond rating is AA or above, provided the 397
municipality has no rating that is not investment grade, receives thirty 398
per cent or more of its current fiscal year general fund budget revenues 399
in the form of municipal aid from the state, has an equalized mill rate of 400
less than thirty, has a positive fund balance percentage, and has a 401
municipal revenue increase in the fiscal year ending June 30, 2018, as a 402
per cent of revenues of two per cent or more.] Any municipality referred 403
pursuant to subsection (d) of section 7-395, as amended by this act, to 404
the Municipal Finance Advisory Commission shall be designated a tier 405
I municipality. The chief elected official of any municipality that does 406
not meet the conditions identified under subsection (d) of section 7-395, 407
as amended by this act, may apply to the Municipal Finance Advisory 408
Commission for designation as a tier I municipality, provided such 409
official (1) expects that such municipality will meet one or more such 410
conditions in the following twenty-four month period, and (2) submits 411
a report to the Municipal Finance Advisory Commission, in a form and 412
manner prescribed by the commission, that confirms that such condition 413
or conditions will be met in such period. 414
(b) The secretary shall refer any municipality [which has requested 415
designation] designated as a tier I municipality to the Municipal Finance 416
Advisory Commission, pursuant to the provisions of section 7-395, as 417
amended by this act. In addition to the requirements of section 7-394b, 418
such municipality shall prepare and present a [three-year] five-year 419
financial plan to the Municipal Finance Advisory Commission for its 420
review and approval. 421
Sec. 8. Section 7-576b of the general statutes is repealed and the 422
following is substituted in lieu thereof (Effective October 1, 2022): 423
(a) The chief elected official of a municipality designated as a tier I 424
municipality pursuant to section 7-576a, as amended by this act, may 425
apply to the secretary to request designation as a tier II municipality if 426 Substitute Bill No. 5427
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[any of the following conditions exist: (1) The municipality has no bond 427
rating from a bond rating agency, or, if its highest bond rating is A, 428
provided the municipality has no rating that is not investment grade, 429
receives thirty per cent or more of its current or prior fiscal year general 430
fund budget revenues were or are in the form of municipal aid from the 431
state, has a positive fund balance percentage of five per cent or more, 432
has an equalized mill rate of less than thirty, and has a municipal 433
revenue increase in fiscal year ending June 30, 2018, as a per cent of 434
revenues of two per cent or more, (2) the municipality has no bond 435
rating from a bond rating agency, or, if its highest bond rating is A, 436
provided the municipality has no rating that is not investment grade, 437
receives thirty per cent or more of its current or prior fiscal year general 438
fund budget revenues were or are in the form of municipal aid from the 439
state, has an equalized mill rate of less than thirty, and has a positive 440
fund balance percentage of less than five per cent, (3) the municipality's 441
highest bond rating is AA or higher, provided the municipality has no 442
rating that is not investment grade, receives thirty per cent or more of 443
its current or prior fiscal year general fund budget revenues were or are 444
in the form of municipal aid from the state, and has an equalized mill 445
rate of thirty or more, (4) the municipality's highest bond rating is AA 446
or higher, provided the municipality has no rating that is not investment 447
grade, and has a negative fund balance percentage, or (5) the 448
municipality's highest bond rating is Baa or BBB, provided the 449
municipality has no rating that is not investment grade, has a positive 450
fund balance percentage and] the municipality has held one or more 451
meetings with the Municipal Finance Advisory Committee, and (1) has 452
an equalized mill rate of not less than thirty, or (2) received thirty per 453
cent or more of its current year audited revenues in the form of 454
municipal aid from the state. Any such official that applies for such 455
designation pursuant to this subsection shall provide a copy of such 456
application to the Municipal Finance Advisory Committee not later than 457
ten days after making such application. 458
(b) The secretary shall [refer any municipality which has requested 459
designation as a tier II] (1) designate any tier I municipality as a tier II 460 Substitute Bill No. 5427
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municipality at the request of such municipality, if the secretary 461
determines that the fiscal condition of the municipality warrants such 462
designation, based on the secretary's review of the reports and findings 463
of the Municipal Finance Advisory Commission concerning such 464
municipality, and (2) refer such municipality to the Municipal 465
Accountability Review Board established pursuant to section 7-576d, as 466
amended by this act. Said board shall have the same authority and 467
responsibilities possessed by the Municipal Finance Advisory 468
Commission with respect to tier II certified municipalities referred to it, 469
including, but not limited to, requiring that such municipalities prepare 470
and present to said board for its review and approval a [three-year] five-471
year financial plan and monthly financial reports, in a manner 472
prescribed by said board. In preparing and adopting its annual budgets, 473
such municipality shall only include assumptions respecting state 474
revenues and property tax revenues as approved by such board and 475
such board shall approve or disapprove all obligations issued by a 476
designated tier II municipality pursuant to section 7-575 and this 477
section, provided it shall only approve such obligations which in its 478
judgment improve the financial condition of such municipality. 479
(c) The Municipal Finance Advisory Commission may, after holding 480
at least one meeting with a designated tier I municipality, recommend 481
to the secretary that such municipality be designated as a tier II 482
municipality. Any such recommendation shall be made on the basis of 483
such municipality's financial condition, which shall be documented by 484
the commission in a report submitted to the secretary. A copy of such 485
report shall be provided to such municipality not later than ten days 486
after such submission. Not later than forty-five days after such 487
submission, the secretary may approve or reject such recommendation. 488
If the secretary does not approve or reject such recommendation during 489
such forty-five-day period, such recommendation shall be deemed 490
rejected. 491
Sec. 9. Section 7-576c of the general statutes is repealed and the 492
following is substituted in lieu thereof (Effective October 1, 2022): 493 Substitute Bill No. 5427
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(a) The chief elected official of a municipality designated as a tier I 494
municipality pursuant to section 7-576a, as amended by this act, or the 495
legislative body of such municipality, by majority vote, may apply to 496
the secretary to request designation as a tier III municipality after 497
holding at least one meeting with the Municipal Finance Advisory 498
Commission, if [any of the following conditions exist: (1) The 499
municipality has at least one bond rating from a bond rating agency that 500
is below investment grade, or (2) the municipality has no bond rating 501
from a bond rating agency, or, if its highest bond rating is A, Baa or BBB, 502
provided the municipality has no rating that is not investment grade, 503
and it has either (A) a negative fund balance percentage, or (B)] the 504
municipality (1) has an equalized mill rate that is thirty or more, [and it 505
receives] or (2) received thirty per cent or more of its current [or prior 506
fiscal year general fund budget revenues were or are] year audited 507
revenues in the form of municipal aid from the state. Prior to submission 508
of such request by a chief elected official, such official shall provide 509
notice of intent to apply for such designation to the legislative body of 510
such municipality. Such legislative body shall have [thirty] forty-five 511
days from receipt of such notice to approve or reject the chief elected 512
official's decision to submit such a request. If such legislative body does 513
not approve or reject such decision during such [thirty-day] forty-five-514
day period, the chief elected official's decision to submit such request 515
shall be deemed approved by such legislative body. Any chief elected 516
official or legislative body that submits a request pursuant to this 517
subsection shall provide a copy of such request to the Municipal Finance 518
Advisory Commission not later than ten days after submitting such 519
request. The secretary shall designate a municipality as tier III if [: (i) A 520
municipality meets either condition described in subdivision (1) or (2) 521
of] a request for such designation has been made pursuant to this 522
subsection, and based on reports and findings of the Municipal Finance 523
Advisory Commission, the secretary finds that the fiscal condition of the 524
municipality warrants such designation. [, (ii) the municipality] 525
(b) Any municipality that (1) receives a bond rating below investment 526
grade from a rating agency, (2) issues refunding bonds that [(I)] (A) have 527 Substitute Bill No. 5427
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a term of more than twenty-five years, [(II)] (B) do not achieve net 528
present value savings pursuant to the provisions of section 7-370c, and 529
[(III)] (C) have annual debt service obligations associated with any 530
existing debt and such refunding bonds in any year that are greater than 531
the first full year debt service obligation following the issuance of such 532
refunding bonds, or [(iii) the municipality] (3) issues a deficit obligation 533
[or has issued a deficit obligation in the five years preceding July 1, 534
2017.] shall be designated as a tier III municipality. Any municipality 535
that meets one or more conditions described in subdivisions (1) to (3), 536
inclusive, of this subsection, shall notify the secretary not later than ten 537
days after having met such condition or conditions. 538
(c) The Municipal Finance Advisory Commission may, after holding 539
at least one meeting with a designated tier I municipality, recommend 540
to the secretary that such municipality be designated as a tier III 541
municipality. Any such recommendation shall be made on the basis of 542
such municipality's financial condition, which shall be documented by 543
the commission in a report submitted to the secretary. A copy of such 544
report shall be provided to such municipality not later than ten days 545
after such submission. Not later than forty-five days after such 546
submission, the secretary may approve or reject such recommendation. 547
If the secretary does not approve or reject such recommendation during 548
such forty-five-day period, such recommendation shall be deemed 549
rejected. 550
[(b)] (d) The secretary shall refer any municipality that is a designated 551
tier III municipality to the Municipal Accountability Review Board 552
established pursuant to the provisions of section 7-576d, as amended by 553
this act. 554
[(c) Notwithstanding any provision of this section, no municipality 555
shall be designated a tier III municipality prior to July 1, 2018, by any 556
means other than an application as described in subsection (a) of this 557
section, except a municipality with a population of one hundred twenty 558
thousand or more that has a bond rating of Caa1 or less.] 559 Substitute Bill No. 5427
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Sec. 10. Subdivision (6) of subsection (b) of section 7-576d of the 560
general statutes is repealed and the following is substituted in lieu 561
thereof (Effective October 1, 2022): 562
(6) With respect to any municipality referred to the Municipal 563
Accountability Review Board on or after [January 1, 2018] October 1, 564
2022, in the case of any proposed collective bargaining agreement or 565
amendments negotiated pursuant to sections 7-467 to 7-477, inclusive, 566
including any such agreement negotiated by a board of education, 567
notwithstanding the provisions of subsection (d) of section 7-474, or 568
pursuant to section 10-153d, the Municipal Accountability Review 569
Board shall have the same opportunity and authority to approve or 570
reject, on not more than two occasions, collective bargaining agreements 571
or amendments as are provided to the legislative body of such 572
municipality in said respective sections, except that (A) any such 573
agreement negotiated by a board of education shall be submitted to the 574
Municipal Accountability Review Board by the bargaining 575
representative of such board of education not later than fourteen days 576
after any such agreement is reached, and (B) [the Municipal 577
Accountability Review Board shall act upon such agreement, pursuant 578
to this subdivision, not later than thirty days after submission by such 579
bargaining representative] such agreement shall be considered 580
approved thirty days after such submission if the Municipal 581
Accountability Review Board has failed to approve or reject such 582
agreement. 583
Sec. 11. Subdivision (8) of subsection (b) of section 7-576d of the 584
general statutes is repealed and the following is substituted in lieu 585
thereof (Effective October 1, 2022): 586
(8) The board shall monitor compliance with the municipality's 587
[three-year] five-year financial plan and annual budget and recommend 588
that the municipality make such changes as are necessary to ensure 589
budgetary balance in such plan and budget. 590
Sec. 12. Subsection (a) of section 7-576e of the general statutes is 591 Substitute Bill No. 5427
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repealed and the following is substituted in lieu thereof (Effective October 592
1, 2022): 593
(a) (1) The chief elected official of a tier III municipality or the 594
legislative body of such municipality, by a majority vote, may apply to 595
the secretary to request designation as a tier IV municipality. The 596
secretary may approve the request if the secretary determines that such 597
designation is necessary to ensure the fiscal sustainability of the 598
municipality and is in the best interests of the state. Prior to submission 599
of any such request by the chief elected official, such official shall 600
provide notice of intent to apply for such designation to the legislative 601
body of such municipality. Such legislative body shall have thirty days 602
from receipt of such notice to approve or reject the chief elected official's 603
decision to submit such a request. If such legislative body does not 604
approve or reject such decision to seek such designation during such 605
thirty-day period, the chief elected official's decision to submit such 606
request shall be deemed approved by such legislative body. 607
(2) The Municipal Accountability Review Board may designate a tier 608
III municipality as a tier IV municipality based on a finding by the board 609
that the fiscal condition of such municipality warrants such a 610
designation based upon an evaluation of the following criteria: (A) The 611
balance in the municipal reserve fund; (B) the short and long-term 612
liabilities of the municipality, including, but not limited to, the 613
municipality's ability to meet minimum funding levels required by law, 614
contract or court order; (C) the initial budgeted revenue for the 615
municipality for the past five fiscal years as compared to the actual 616
revenue received by the municipality for such fiscal years; (D) budget 617
projections for the following [three] five fiscal years; (E) the economic 618
outlook for the municipality; and (F) the municipality's access to capital 619
markets. For the purpose of determining whether to make a finding 620
pursuant to this subdivision, the membership of the board shall 621
additionally include the chief elected official of such municipality, the 622
treasurer of such municipality and a member of the legislative body of 623
such municipality, as selected by such body. In conducting a vote on 624 Substitute Bill No. 5427
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any such determination, the treasurer of such municipality shall be a 625
non-voting member of the board. The board shall submit such finding 626
and recommended designation to the secretary, who shall provide for a 627
thirty-day notice and public comment period related to such finding 628
and recommendation. Following the public notice and comment period, 629
the secretary shall forward the board's finding and recommended 630
designation and a report regarding the comments received in this regard 631
to the Governor. Following the receipt of such documentation from the 632
secretary, the Governor may approve or disapprove the board's 633
recommended designation. 634
(3) If any municipality is designated as a tier IV municipality, the 635
following individuals shall serve as ex-officio, nonvoting members of 636
the Municipal Accountability Review Board, provided such additional 637
members shall only serve for purposes of the tier IV municipality that 638
they represent: (A) The chief elected official of such municipality, or the 639
chief elected official's designee, (B) an elected member of the local 640
legislative body of such municipality, or such member's designee, as 641
selected by a majority vote of the local legislative body of such 642
municipality, (C) in the case where the municipality has an elected 643
treasurer, the municipal treasurer or other municipal official responsible 644
for the issuance of bonds, and (D) a member of the minority party of the 645
municipality's legislative body as elected by such minority party 646
members. Notwithstanding the provisions of sections 7-568 to 7-575, 647
inclusive, and sections 7-576a, as amended by this act, and 7-576b, as 648
amended by this act, a municipality designated as a tier IV municipality 649
pursuant to this section shall retain such designation following the 650
issuance of a deficit obligation subsequent to such municipality's 651
designation as a tier IV municipality. With respect to a designated tier 652
IV municipality, the Municipal Accountability Review Board shall have 653
the same powers and responsibilities as it has with respect to designated 654
tier III municipalities in addition to which it shall have the following 655
additional or superseding authority and responsibilities: 656
(i) To review and approve or disapprove the municipality's annual 657 Substitute Bill No. 5427
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budget, including, but not limited to, the general fund, other 658
governmental funds, enterprise funds and internal service funds. No 659
annual budget, annual tax levy or user fee for the municipality shall 660
become operative until it has been approved by the board. If the board 661
disapproves any annual budget, not later than the May twenty-first 662
prior to the beginning of the new fiscal year, the board shall specify the 663
reasons for such disapproval and shall provide the legislative body until 664
the June fifteenth prior to the beginning of the new fiscal year to 665
resubmit the annual budget in accordance with this section. If the 666
legislative body has not adopted a budget by such June fifteenth date or 667
its resubmitted annual budget is not approved by the board, the board 668
shall adopt an interim budget and establish a tax rate and user fees. Such 669
interim budget shall take effect at the commencement of the fiscal year 670
and shall remain in effect until the municipality submits and the board 671
approves a modified budget. Notwithstanding any provision of the 672
general statutes, or any public or special act, local law, charter or 673
ordinance or resolution, a municipality may approve a modified budget 674
pursuant to this section after any applicable deadline for such adoption 675
has passed. 676
(ii) To review and approve all bond ordinances and bond resolutions 677
of the municipality. 678
(iii) To monitor compliance with the municipality's [three-year] five- 679
year financial plan and annual budget and require that the municipality 680
make such changes as are necessary to ensure budgetary balance in such 681
plan and budget. 682
(iv) To approve or reject all collective bargaining agreements for a 683
new term, other than modifications, amendments or reopening of an 684
agreement, to be entered into by the municipality or any of its agencies 685
or administrative units, including the board of education. If it rejects an 686
agreement, the board shall indicate the specific provisions of the 687
proposed agreement present or missing which caused the rejection, as 688
well as its rationale for the rejection. The board may indicate the total 689
cost impact or savings that are acceptable in a new agreement. At any 690 Substitute Bill No. 5427
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time during negotiations and prior to reaching any agreement, or a 691
modified agreement, the parties, by mutual agreement, may request 692
guidance from the board as to the level and areas of savings that may be 693
acceptable to the board in a new agreement. Following any rejection of 694
a proposed collective bargaining agreement, the parties to the 695
agreement shall have ten days from the date of the board's rejection to 696
consider the board's concerns and propose a modified agreement. After 697
the expiration of such ten-day period, the board shall approve or reject 698
any such modified agreement. If the parties have been unable to reach a 699
modified agreement or the board rejects such modified agreement, the 700
board shall impose binding arbitration on the parties, in accordance 701
with clause (v) of this subdivision, to arbitrate issues identified by the 702
board as the cause for such inability or rejection. In establishing the 703
issues to be arbitrated, as well as in making a determination to reject a 704
proposed agreement, the board shall not be limited to matters raised or 705
negotiated by the parties. Also, to approve or reject all modifications, 706
amendments or reopeners to collective bargaining agreements entered 707
into by the municipality or any of its agencies or administrative units, 708
including the board of education. If it rejects a modification, amendment 709
or reopener to an agreement, the board shall indicate the specific 710
provisions of the proposed modification, amendment or reopener which 711
caused the rejection, as well as its rationale for the rejection. The board 712
may indicate the total cost impact or savings acceptable in a new 713
modification, amendment or reopener. If the board rejects a proposed 714
amendment or reopener to a collective bargaining agreement, the 715
parties to the agreement shall have ten days from the date of the board's 716
rejection to consider the board's concerns and put forth a revised 717
modification, amendment or reopener. After the expiration of such ten-718
day period, the board shall approve or reject any revised modification, 719
amendment or reopener amendment. If the parties are unable to reach 720
a revised modification, amendment or reopener or the board rejects 721
such revised modification, amendment or reopener, the board shall 722
impose binding arbitration upon the parties in accordance with clause 723
(v) of this subdivision. The issues to be arbitrated shall be those 724
identified by the board as causing such inability or rejection. Prior to the 725 Substitute Bill No. 5427
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board taking action on any such modification, amendment or reopener, 726
the parties shall have an opportunity to make a presentation to the 727
board. 728
(v) Except as otherwise provided in this subdivision, with respect to 729
collective bargaining agreements of the municipality or any of its 730
agencies or administrative units, including, but not limited to, the board 731
of education, that are in or are subject to binding arbitration, the board 732
shall have the power to impose binding arbitration upon the parties any 733
time after the seventy-fifth day following the commencement of 734
negotiations or to reject any arbitration award pending municipal or 735
board of education action pursuant to section 7-473c or 10-153f on the 736
date the board is established. If, upon the date of a municipality's 737
designation as a tier IV municipality, the parties are in binding 738
arbitration, or if the board rejects a pending arbitration award, the board 739
shall immediately replace any established binding arbitration panel 740
with an arbitrator selected in accordance with this section. If the board 741
imposes binding arbitration or replaces an existing binding arbitration 742
panel, it shall do so with an arbitrator selected by the Governor from a 743
list of three potential arbitrators approved by and submitted to the 744
Governor by the board. Such list of potential arbitrators shall include 745
former judges of the state or federal judicial systems or other persons 746
who have experience with arbitration or similar proceedings. Prior to 747
the Governor's selection of an arbitrator, the parties may provide 748
recommendations for such selection to the board. The board shall not be 749
limited to selecting arbitrators from those recommended by the parties. 750
The board may reduce the time limits in the applicable provisions of the 751
general statutes or any public or special acts governing binding 752
arbitration by one-half. In imposing such arbitration or in replacing an 753
arbitration panel, the board shall not be limited to consideration and 754
inclusion in the collective bargaining agreement of the last best offers or 755
the matters raised by or negotiated by the parties provided the board 756
shall indicate reasons for raising any matters not negotiated by the 757
parties. The board shall be given the opportunity to make a presentation 758
before the arbitrator. In addition to any statutory factors that shall be 759 Substitute Bill No. 5427
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considered by the arbitrator with respect to proposed municipal or 760
board of education collective bargaining agreements, the arbitrator shall 761
give highest priority to the short and long-term fiscal exigencies that 762
resulted in the municipality's designation as a tier IV municipality. Not 763
later than ten days after the issuance of any of the arbitrator's decisions 764
on the matters subject to such binding arbitration, the board may 765
request reconsideration of one or more of such decisions and state its 766
position as to the impact of such decisions on the short and long-term 767
fiscal sustainability of the municipality. Not later than five days after the 768
board's request for such reconsideration, the parties may submit 769
comments to the arbitrator in response to the board's stated position. 770
Not later than thirty days following the board's request for such 771
reconsideration, the arbitrator, based on the record of the arbitration, 772
may either modify or maintain the original arbitration decisions. The 773
arbitrator's decisions shall be binding upon the parties. With respect to 774
collective bargaining agreements negotiated pursuant to section 10-775
153d and arbitration awards issued pursuant to section 10-153f, the 776
provisions of this subdivision shall not apply until the board has 777
rejected such agreement or award pursuant to subdivision (7) of 778
subsection (b) of section 7-576d, as amended by this act, on two 779
occasions. 780
(4) (A) To require its approval of proposed transfers of a 781
municipality's appropriations in excess of fifty thousand dollars, (B) to 782
require its review, approval, disapproval or modification of the budget 783
of the board of education for the municipality on a line-item basis and 784
to require the board of education to submit to it any budget transfers, or 785
(C) to appoint a financial manager and delegate to such manager, in 786
writing, such powers as the board deems necessary or appropriate for 787
the purpose of managing the financial and administrative affairs of the 788
municipality for the period of time during which the municipality is 789
subject to the powers of the board provided the board may override any 790
actions taken by such manager at any time and shall not delegate the 791
powers enumerated under subdivisions (2), (3) and (5) to (7), inclusive, 792
and (11) to (13), inclusive, of subsection (b) of section 7-576d, as 793 Substitute Bill No. 5427
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amended by this act, or subdivisions (1), (2) and (4) to (6), inclusive of 794
this subsection. The board shall consult with such municipality and the 795
board of education of such municipality, as applicable, to establish 796
policies and procedures for the implementation of the provisions of 797
subparagraphs (A) and (B) of this subdivision. 798
(5) The board may require that the municipality or its board of 799
education notify and submit to the board any or all municipal or board 800
of education contracts that exceed (A) fifty thousand dollars for 801
municipalities with a resident population under seventy thousand, or 802
(B) one hundred thousand dollars for municipalities with a resident 803
population of seventy thousand or more, not less than thirty days prior 804
to execution of such contract, for the purpose of the board's review and 805
approval of such contracts. The board shall establish policies and 806
procedures, in consultation with any such municipality and such 807
municipality's board of education, to implement the provisions of this 808
subdivision. 809
(6) To approve and authorize the issuance of obligations under 810
section 7-575, including, with regard to a designated tier IV municipality 811
otherwise ineligible to issue such obligations, for the purposes of issuing 812
general obligations for purposes of deficit financing, addressing pension 813
liabilities in accordance with section 7-374c, as amended by this act, debt 814
restructuring and other purposes allowed for which municipal 815
obligations are authorized by the general statutes. 816
Sec. 13. Section 7-576f of the general statutes is repealed and the 817
following is substituted in lieu thereof (Effective October 1, 2022): 818
(a) A municipality designated as a tier I municipality in accordance 819
with section 7-576a, [or designated as a] as amended by this act, tier II 820
municipality in accordance with section 7-576b, as amended by this act, 821
tier III municipality in accordance with section 7-576c, as amended by 822
this act, or tier IV municipality in accordance with section 7-576e, as 823
amended by this act, shall retain such designation, notwithstanding any 824
positive changes in the factors leading to its current designation, [or] 825 Substitute Bill No. 5427
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until, in the fiscal years following such designation, (1) there have been 826
no [annual] audited operating [budgetary] deficits in the general fund 827
of the municipality for two consecutive fiscal years, (2) the 828
municipality's bond rating has either improved or remained unchanged 829
since its most current designation, (3) the municipality has presented 830
and the commission or board has approved a financial plan that projects 831
a positive [unreserved] fund balance for the three succeeding 832
consecutive fiscal years covered by such financial plan, where a positive 833
fund balance of at least five per cent is projected in the third such fiscal 834
year, and (4) the municipality's audits for such consecutive fiscal years 835
have been completed and contain no general fund deficit. 836
[Notwithstanding any other provisions of sections 7-560 to 7-575, 837
inclusive, sections 7-568 to 7-579, inclusive, the municipality shall 838
remain undesignated for purposes of a tier designation, unless 839
circumstances would result in the municipality being designated as a 840
tier numerically higher than its most recent designation.] 841
(b) Notwithstanding subsection (a) of this section, the Municipal 842
Finance Advisory Commission may, by unanimous vote, end the 843
designation of a municipality designated as a tier I municipality, based 844
on an evaluation of such municipality's financial condition. 845
Sec. 14. Subsection (a) of section 7-576i of the general statutes is 846
repealed and the following is substituted in lieu thereof (Effective October 847
1, 2022): 848
(a) Any designated tier II, III, or IV municipality shall be eligible to 849
receive funding from the Municipal Restructuring Fund, which fund 850
shall be nonlapsing. A designated tier II, III or IV municipality seeking 851
such funds shall submit, for approval by the Secretary of the Office of 852
Policy and Management, a plan detailing its overall restructuring plan, 853
including local actions to be taken and its proposed use of such funds. 854
Notwithstanding section 10-262j, a municipality may, as part of such 855
plan and in consultation with its local board of education, submit a 856
proposed reduction in the minimum budget requirement related to its 857
education budget. The secretary shall consult with the Commissioner of 858 Substitute Bill No. 5427
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Education in approving or rejecting such proposed reduction. The 859
secretary shall consult with the municipal accountability review board 860
in making distribution decisions and attaching appropriate conditions 861
thereto, including the timing of any such distributions and whether such 862
funds shall be distributed in the form of a municipal restructuring fund 863
loan subject to repayment by the municipality. The distribution of such 864
assistance funds shall be based on the relative fiscal needs of the 865
requesting municipalities. The secretary may approve all, none or a 866
portion of the funds requested by a municipality. In attaching 867
conditions to such funding, the secretary shall consider the impact of 868
such conditions on the ability of a municipality to meet legal and other 869
obligations. The board shall monitor and report to the secretary on the 870
use of such funds and adherence to the conditions attached thereto. The 871
secretary shall develop and issue guidance on the (1) administration of 872
the municipal restructuring fund, (2) criteria for participation by 873
municipalities and requirements for plan submission, and (3) 874
prioritization for the awarding of assistance funds pursuant to this 875
section. Any municipality that receives funding from the municipal 876
restructuring fund, in addition to the other responsibilities and 877
authority given to the board with respect to designated tiers II, III and 878
IV municipalities, shall be required to receive board approval of its 879
annual budgets. 880
Sec. 15. Section 7-576g of the general statutes is repealed. (Effective 881
October 1, 2022) 882
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2022 7-374c(c)
Sec. 2 October 1, 2022 7-392(e)
Sec. 3 October 1, 2022 7-393
Sec. 4 October 1, 2022 7-395(d)
Sec. 5 October 1, 2022 7-406c
Sec. 6 October 1, 2022 7-560
Sec. 7 October 1, 2022 7-576a
Sec. 8 October 1, 2022 7-576b Substitute Bill No. 5427
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Sec. 9 October 1, 2022 7-576c
Sec. 10 October 1, 2022 7-576d(b)(6)
Sec. 11 October 1, 2022 7-576d(b)(8)
Sec. 12 October 1, 2022 7-576e(a)
Sec. 13 October 1, 2022 7-576f
Sec. 14 October 1, 2022 7-576i(a)
Sec. 15 October 1, 2022 Repealer section
Statement of Legislative Commissioners:
In Section 13(a), "where the third such fiscal year projecting a positive
fund balance of at least five per cent" was changed to "where a positive
fund balance of at least five per cent is projected in the third such fiscal
year" for clarity.
PD Joint Favorable Subst. C/R FIN
FIN Joint Favorable Subst.-LCO