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General Assembly Raised Bill No. 5502
February Session, 2022
LCO No. 3500
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING THE OPERATIONS OF THE STATE
TREASURER AND THE BONDING AUTHORITY OF THE
CONNECTICUT MUNICIPAL REDEVELOPMENT AUTHORITY.
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 Section 8-169oo of the general statutes is repealed and the 1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 Raised Bill No. 5502
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purposes set forth in section 8-169jj, as amended by this act. 15
(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 Raised Bill No. 5502
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(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
(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 of and interest on any bonds, notes 79 Raised Bill No. 5502
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or 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
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 Raised Bill No. 5502
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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
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 Raised Bill No. 5502
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authority. 149
[(k) Neither the members of the board of directors of the authority 150
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 Raised Bill No. 5502
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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
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 Raised Bill No. 5502
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act as trustee of such funds and accounts. 216
Sec. 2. Section 8-169qq of the general statutes is repealed and the 217
following is substituted in lieu thereof (Effective from passage): 218
(a) For the purposes of this section, "required minimum capital 219
reserve" means the maximum amount permitted to be deposited in a 220
special capital reserve fund by the Internal Revenue Code of 1986, or 221
any subsequent corresponding internal revenue code of the United 222
States, as amended from time to time, to permit the interest on the bonds 223
of the Connecticut Municipal Redevelopment Authority secured by 224
such special capital reserve fund to be excluded from gross income for 225
federal tax purposes. 226
(b) The authority may, in connection with the issuance of bonds, the 227
refunding of bonds previously issued by the authority or the issuance 228
of bonds to effect a refinancing or other restructuring with respect to one 229
or more projects, establish one or more special capital reserve funds. The 230
authority may pay into such special capital reserve funds (1) any 231
moneys appropriated and made available by the state for the purposes 232
of such special capital reserve funds, (2) any proceeds of the sale of 233
bonds or notes of the authority, to the extent provided in the resolution 234
of said authority authorizing the issuance of such bonds or notes, and 235
(3) any moneys made available to the authority from any other source 236
for the purposes of such special capital reserve funds. The amount of 237
bonds secured by special capital reserve funds shall not exceed fifty 238
million dollars in the aggregate. 239
(c) (1) Except as otherwise provided in this section, the moneys held 240
in or credited to any special capital reserve fund established under this 241
section shall be used for: 242
(A) The payment of the principal and interest as such payments 243
become due, whether due at maturity or by mandatory sinking fund 244
installments, on bonds of the authority secured by such special capital 245
reserve fund; or 246 Raised Bill No. 5502
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(B) The purchase of such bonds and the payment of any redemption 247
premium required to be paid when such bonds are redeemed prior to 248
maturity, including reimbursement of a provider of bond insurance or 249
of a credit or liquidity facility that has paid such redemption premium. 250
(2) (A) The authority may prohibit the withdrawal of moneys in any 251
special capital reserve fund in an amount that would result in the 252
balance of such special capital reserve fund being less than (i) the 253
maximum amount of principal and interest becoming due by reason of 254
maturity or a required sinking fund installment on the bonds of the 255
authority outstanding in the then current or any succeeding calendar 256
year, or (ii) the required minimum capital reserve. 257
(B) Notwithstanding the provisions of subparagraph (A) of this 258
subdivision, the authority may withdraw moneys for the purpose of 259
paying the principal of and interest and redemption premium on bonds 260
of the authority secured by such special capital reserve fund for which 261
other moneys of the authority are not available. 262
(3) The authority may provide at any time that it shall not issue bonds 263
secured by a special capital reserve fund if the required minimum 264
capital reserve on the bonds outstanding and the bonds to be issued and 265
secured by the same special capital reserve fund at the time of issuance 266
exceeds the moneys in the special capital reserve fund, unless the 267
authority deposits proceeds from the bonds to be issued or moneys from 268
other sources into such special capital reserve fund, in an amount that, 269
together with the amount then in such special capital reserve fund, will 270
be not less than the required minimum capital reserve. 271
(d) (1) Prior to December first, annually, the authority shall deposit, 272
for any special capital reserve fund for which the balance is below the 273
required minimum capital reserve, the full amount required to meet the 274
required minimum capital reserve for such special capital reserve fund. 275
Such deposit shall be made from any resources available to the authority 276
not otherwise pledged or dedicated to another purpose. For the 277
purposes of this subsection, obligations acquired as an investment for 278 Raised Bill No. 5502
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any special capital reserve fund shall be valued at amortized cost. 279
(2) On or prior to December first, annually, but after the authority has 280
made any deposits required under subdivision (1) of this subsection, 281
there shall be deemed appropriated any sums necessary to restore the 282
balance of each such special capital reserve fund to the required 283
minimum capital reserve amount. The amount of any such sum shall be 284
allotted and paid to the authority upon the certification of such sum by 285
the chairperson or vice-chairperson of the authority to the Secretary of 286
the Office of Policy and Management, the Treasurer and the joint 287
standing committees of the General Assembly having cognizance of 288
matters relating to planning and development and finance, revenue and 289
bonding. 290
(3) Subject to any agreement or agreements with holders of 291
outstanding bonds or notes of the authority, any amount allotted and 292
paid to the authority pursuant to subdivision (2) of this subsection shall 293
be repaid to the state from moneys of the authority, at such time as such 294
moneys are not required for any other corporate purposes of the 295
authority. Such repayment shall occur not later than one year after the 296
date the following liabilities are met and fully discharged by the 297
authority: (A) All bonds and notes of the authority that were issued 298
before, on or after the date such allotted amount was paid to the 299
authority; (B) all interest on such bonds and notes and on any unpaid 300
installments of interest; and (C) all costs and expenses incurred in 301
connection with any action or proceeding by or on behalf of the holders 302
of such bonds or notes. 303
(e) (1) The authority shall not issue bonds secured by a special capital 304
reserve fund until and unless: 305
(A) If such bonds are to be issued to pay for project costs, the 306
authority has determined, and provided such determination to the 307
Secretary of the Office of Policy and Management or the secretary's 308
deputy and to the Treasurer or the Deputy Treasurer, that the revenues 309
from the project shall be sufficient to (i) pay the principal of and interest 310 Raised Bill No. 5502
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on the bonds issued to finance the project, (ii) establish, increase and 311
maintain any reserves deemed advisable by the authority to secure the 312
payment of the principal of and interest on such bonds, (iii) pay the cost 313
of maintaining the project in good repair and properly insured, and (iv) 314
pay such other costs of the project as may be required; 315
(B) The issuance has been approved by the Secretary of the Office of 316
Policy and Management or the secretary's deputy; and 317
(C) The authority has provided the documentation required under 318
subsection (a) of section 1-124 to the Treasurer or the Deputy Treasurer 319
and the issuance has been approved by the Treasurer or the Deputy 320
Treasurer pursuant to said subsection. 321
(2) The approval by the Secretary of the Office of Policy and 322
Management or the secretary's deputy may provide for the waiver or 323
modification of the requirements of this section as the secretary deems 324
necessary or appropriate to effectuate such issuance, subject to any 325
applicable tax covenants of the authority and the state. 326
(f) Nothing in this section shall preclude the authority from 327
establishing other debt service reserve funds that are not special capital 328
reserve funds in connection with the issuance of bonds or notes of the 329
authority. 330
(g) (1) The provisions of this subsection shall not apply to any 331
financial loss and expenses arising out of any claim, demand, suit, 332
judgment or legal challenge described in this subsection filed on or after 333
the effective date of this section. 334
[(a)] (2) The state shall protect, save harmless and indemnify the 335
directors, officers and employees of the Connecticut Municipal 336
Redevelopment Authority from financial loss and expenses, including 337
legal fees and costs, if any, arising out of any claim, demand, suit or 338
judgment based upon any alleged act or omission of any such director, 339
officer or employee in connection with, or any other legal challenge to, 340
authority development projects within a Connecticut Municipal 341 Raised Bill No. 5502
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Redevelopment Authority development district, provided any such 342
director, officer or employee is found to have been acting in the 343
discharge of such director, officer or employee's duties or within the 344
scope of such director, officer or employee's employment and any such 345
act or omission is found not to have been wanton, reckless, wilful or 346
malicious. 347
[(b) In the event any bond, note or other obligation of the authority 348
cannot be paid by the authority, the state shall assume the liability of 349
and make payment on such debt.] 350
Sec. 3. (NEW) (Effective from passage) (a) As used in this section, (1) 351
"person" means any (A) state officer, (B) state agency, department, board 352
or commission, or (C) state employee, or any agent thereof. "Person" 353
includes The University of Connecticut Health Care Finance 354
Corporation, and (2) "financial obligation" has the same meaning as 355
provided in 17 CFR 240.15c2-12, as amended from time to time. 356
(b) Before any person incurs any financial obligation of the state or 357
enters into any agreement to covenants, events of default, remedies, 358
priority rights or other similar terms in connection with a financial 359
obligation of the state, where such financial obligation (1) is in excess of 360
one million dollars, or (2) encumbers property or rights of the state 361
material to the operations of the state, such person shall notify the 362
Treasurer of such proposed financial obligation or agreement and 363
submit any documents pursuant to which such financial obligation or 364
agreement is to be incurred or entered into. Upon receipt of such 365
notification and documents, the Treasurer shall determine whether the 366
information provided is adequate for the Treasurer to timely meet 367
required disclosure obligations under federal securities law. The 368
Treasurer may request additional information the Treasurer deems 369
necessary to make such determination. Upon the Treasurer's satisfaction 370
that adequate information has been provided for the Treasurer to timely 371
meet required disclosure obligations under federal securities law, the 372
Treasurer or the Treasurer's designee shall provide written 373
acknowledgment to the person seeking to incur such financial 374 Raised Bill No. 5502
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obligation or enter into such agreement. The Treasurer may establish, 375
and revise from time to time, exemptions from such notification and 376
submission requirements as the Treasurer determines are consistent 377
with the state's disclosure obligations under federal securities law. 378
Sec. 4. Subsection (x) of section 3-20 of the general statutes is repealed 379
and the following is substituted in lieu thereof (Effective July 1, 2022): 380
(x) Notwithstanding any provision of the general statutes, public acts 381
or special acts, [upon] any sale, lease or other disposition to or use by a 382
nongovernmental entity of all or a portion of any project financed with 383
proceeds of bonds of the state the interest on which is not included in 384
gross income pursuant to Section 103 of the Internal Revenue Code of 385
1986, or any subsequent corresponding internal revenue code of the 386
United States, as amended from time to time, [amended,] that would 387
otherwise cause such bonds to be treated as private activity bonds 388
within the meaning of Section 141 of said internal revenue code [, the] 389
shall be subject to the prior approval of the Treasurer. The Treasurer is 390
authorized to transfer all or a portion of the proceeds received with 391
respect to and at the time of such disposition or use, in an amount not 392
less than the amount required by said internal revenue code to preserve 393
the exclusion from gross income of interest on such bonds, (1) to the 394
General Fund to pay debt service on, including redemption, defeasance 395
or purchase of, outstanding bonds of the state the interest on which is 396
not included in gross income pursuant to Section 103 of said internal 397
revenue code, (2) with the approval of the State Bond Commission, in 398
lieu of the issuance of bonds, to the appropriate account or fund for any 399
projects or purposes authorized by the State Bond Commission 400
pursuant to a bond act and with the same force and effect as bond 401
proceeds, thereby reducing the authority to issue bonds by such dollar 402
amount, provided in any event that any such transfer does not cause the 403
interest on the subject bonds to become included in gross income 404
pursuant to Section 103 of said internal revenue code. 405
Sec. 5. Subsection (a) of section 3-37 of the general statutes is repealed 406
and the following is substituted in lieu thereof (Effective July 1, 2022): 407 Raised Bill No. 5502
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(a) The Treasurer shall, annually, on or before December thirty-first, 408
submit a final audited report to the Governor and a copy of such report 409
to the Investment Advisory Council, which shall include the following 410
information concerning the activities of the office of the State Treasurer 411
for the immediately preceding fiscal year ending June thirtieth: (1) 412
Complete financial statements and accompanying footnotes for the 413
combined investment funds prepared in accordance with generally 414
accepted accounting principles, which financial statements shall be 415
audited in accordance with generally accepted auditing standards and 416
supplementary schedules depicting the interests of the component 417
retirement plans and trust funds; (2) complete financial statements and 418
accompanying footnotes for the Short Term Investment Fund prepared 419
in accordance with generally accepted accounting principles and 420
supplementary schedules listing all assets held by the Short Term 421
Investment Fund; (3) a discussion and review of the performance of the 422
combined investment funds and Short Term Investment Fund for such 423
fiscal year in accordance with recognized and appropriate performance 424
presentation and disclosure, including an analysis of the return earned 425
by the portfolio and each combined investment fund as well as the risk 426
profile of the portfolio and each combined investment fund according 427
to investment industry standards; (4) the activities and transactions in 428
such reasonable detail as is appropriate of the cash management 429
division including information on the state's cash receipts and 430
disbursements for the fiscal year, and the debt management division; 431
[including the financial statements of the tax-exempt proceeds fund 432
prepared in accordance with generally accepted accounting principles;] 433
(5) financial statements and accompanying footnotes as well as a 434
summary of operating results for the Second Injury Fund for such fiscal 435
year; (6) a financial summary and report on the activities of the state's 436
unclaimed property program for such fiscal year; (7) a listing of the 437
companies from which state funds were divested based upon such 438
companies' business in Sudan, pursuant to the provisions of section 3-439
21e, and any companies identified by the Treasurer as companies from 440
which investment of state funds has been declared impermissible by the 441
Treasurer, pursuant to the provisions of section 3-21e; and (8) such other 442 Raised Bill No. 5502
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information as the Treasurer deems of interest to the public. 443
Sec. 6. Subsection (q) of section 3-62h of the general statutes is 444
repealed and the following is substituted in lieu thereof (Effective July 1, 445
2022): 446
(q) Any moneys held by the Treasurer or by a trustee pursuant to an 447
indenture of trust with respect to abandoned property fund bonds 448
including pledged revenues, other pledged receipts, funds or moneys 449
and proceeds from the sale of such abandoned property fund bonds, 450
may, pending the use or application of the proceeds thereof for an 451
authorized purpose, be (1) invested and reinvested in such obligations, 452
securities and investments as are set forth in subsection (f) of section 3-453
20 [,] and in participation certificates in the Short Term Investment 454
Funds created under sections 3-27a and 3-27f, [and in participation 455
certificates or securities of the Tax-Exempt Proceeds Fund created under 456
section 3-24a] or (2) deposited or redeposited in such bank or banks as 457
shall be provided in the proceedings. Unless the proceedings provide 458
otherwise, proceeds from investments authorized by this subsection, 459
less amounts required under the proceedings authorizing the issuance 460
of abandoned property fund bonds for the payment of Special 461
Abandoned Property Fund financing costs relating to such abandoned 462
property fund bonds, shall be credited to the Special Abandoned 463
Property Fund. 464
Sec. 7. Subsection (d) of section 7-406n of the general statutes is 465
repealed and the following is substituted in lieu thereof (Effective July 1, 466
2022): 467
(d) Any moneys held by the Treasurer or by a trustee pursuant to an 468
indenture of trust with respect to municipal pension solvency account 469
bonds including pledged revenues, other pledged receipts, funds or 470
moneys and proceeds from the sale of such municipal pension solvency 471
account bonds, may, pending the use or application of such proceeds 472
for an authorized purpose, be (1) invested and reinvested in such 473
obligations, securities and investments as are set forth in subsection (f) 474 Raised Bill No. 5502
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of section 3-20 [,] and in participation certificates in the Short Term 475
Investment Funds created under sections 3-27a and 3-27f, [and in 476
participation certificates or securities of the Tax-Exempt Proceeds Fund 477
created under section 3-24a,] or (2) deposited or redeposited in such 478
bank or banks as shall be provided in the proceedings authorizing the 479
issuance of municipal pension solvency account bonds. Unless the 480
proceedings provide otherwise, proceeds from investments authorized 481
by this subsection, less amounts required under the proceedings for the 482
payment of municipal pension solvency loan costs relating to such 483
municipal pension solvency account bonds, shall be credited to the 484
municipal pension solvency account. 485
Sec. 8. Subdivision (9) of subsection (b) of section 8-169jj of the general 486
statutes is repealed and the following is substituted in lieu thereof 487
(Effective July 1, 2022): 488
(9) Invest any funds not needed for immediate use or disbursement 489
in obligations issued or guaranteed by the United States or the state, 490
including the Short Term Investment Fund, [and the Tax-Exempt 491
Proceeds Fund,] and in other obligations that are legal investments for 492
savings banks in this state, and in-time deposits or certificates of deposit 493
or other similar banking arrangements secured in such manner as the 494
authority determines; 495
Sec. 9. Subsection (b) of section 8-336o of the general statutes is 496
repealed and the following is substituted in lieu thereof (Effective July 1, 497
2022): 498
(b) Any moneys held in the Housing Trust Fund may, pending the 499
use or application of the proceeds thereof for an authorized purpose, be 500
(1) invested and reinvested in such obligations, securities and 501
investments as are set forth in subsection (f) of section 3-20 [,] and in 502
participation certificates in the Short Term Investment Fund created 503
under sections 3-27a and 3-27f, [and in participation certificates or 504
securities of the Tax-Exempt Proceeds Fund created under section 3-505
24a,] (2) deposited or redeposited in such bank or banks at the direction 506 Raised Bill No. 5502
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of the Treasurer, or (3) invested in participation units in the combined 507
investment funds, as defined in section 3-31b. Unless otherwise 508
provided pursuant to subsection (c) of this section, proceeds from 509
investments authorized by this subsection shall be credited to the 510
Housing Trust Fund. 511
Sec. 10. Subdivision (3) of subsection (a) of section 10-283 of the 2022 512
supplement to the general statutes is repealed and the following is 513
substituted in lieu thereof (Effective July 1, 2022): 514
(3) (A) All final calculations completed by the Department of 515
Administrative Services for school building projects shall include a 516
computation of the state grant for the school building project amortized 517
on a straight line basis over a twenty-year period for school building 518
projects with costs equal to or greater than two million dollars and over 519
a ten-year period for school building projects with costs less than two 520
million dollars. Any town or regional school district which abandons, 521
sells, leases, demolishes or otherwise redirects the use of such a school 522
building project to other than a public school use during such 523
amortization period shall refund to the state the unamortized balance of 524
the state grant remaining as of the date the abandonment, sale, lease, 525
demolition or redirection occurs. The amortization period for a project 526
shall begin on the date the project was accepted as complete by the local 527
or regional board of education. A town or regional school district 528
required to make a refund to the state pursuant to this subdivision may 529
request forgiveness of such refund if the building is redirected for public 530
use. The Department of Administrative Services shall include as an 531
addendum to the annual school construction priority list all those towns 532
requesting forgiveness. General Assembly approval of the priority list 533
containing such request shall constitute approval of such request. This 534
subdivision shall not apply to projects to correct safety, health and other 535
code violations or to remedy certified school indoor air quality 536
emergencies approved pursuant to subsection (b) of this section or 537
projects subject to the provisions of section 10-285c. 538
(B) If the board of governors for an independent institution of higher 539 Raised Bill No. 5502
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education, as defined in subsection (a) of section 10a-173, or the 540
equivalent of such a board, on behalf of the independent institution of 541
higher education, that operates an interdistrict magnet school makes 542
private use of any portion of a school building in which such operator 543
received a school building project grant pursuant to this chapter, such 544
operator shall annually submit a report to the Commissioner of 545
Education that demonstrates that such operator provides an equal to or 546
greater than in-kind or supplemental benefit of such institution's 547
facilities to students enrolled in such interdistrict magnet school that 548
outweighs the private use of such school building. If the commissioner 549
finds that the private use of such school building exceeds the in-kind or 550
supplemental benefit to magnet school students, the commissioner may 551
require such institution to refund to the state the unamortized balance 552
of the state grant. 553
[(C) Any moneys refunded to the state pursuant to subparagraphs 554
(A) and (B) of this subdivision shall be deposited in the state's tax-555
exempt proceeds fund and used not later than sixty days after 556
repayment to pay debt service on, including redemption, defeasance or 557
purchase of, outstanding bonds of the state the interest on which is not 558
included in gross income pursuant to Section 103 of the Internal 559
Revenue Code of 1986, or any subsequent corresponding internal 560
revenue code of the United States, as from time to time amended.] 561
Sec. 11. Subsection (b) of section 22a-260a of the general statutes is 562
repealed and the following is substituted in lieu thereof (Effective July 1, 563
2022): 564
(b) Wherever the words "Connecticut Resources Recovery Authority" 565
are used in any public or special act of 2014 or in the following sections 566
of the general statutes, the words "Materials Innovation and Recycling 567
Authority" shall be substituted in lieu thereof: 1-79, 1-120, 1-124, 1-125, 568
[3-24d, 3-24f,] 7-329a, 12-412, 12-459, 16-1, 16-245, 16-245b, 22a-208a, 22a-569
208v, 22a-209h, 22a-219b, 22a-220, 22a-241, 22a-260, 22a-261, 22a-263a, 570
22a-263b, 22a-268a, 22a-268b, 22a-270a, 22a-272a, 22a-282, 22a-283, 22a-571
284, 32-1e and 32-658. 572 Raised Bill No. 5502
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Sec. 12. Subsection (b) of section 32-7o of the general statutes is 573
repealed and the following is substituted in lieu thereof (Effective July 1, 574
2022): 575
(b) Any moneys held in the Connecticut Manufacturing Innovation 576
Fund may, pending the use or application of the proceeds thereof for an 577
authorized purpose, be (1) invested and reinvested in such obligations, 578
securities and investments as are set forth in subsection (f) of section 3-579
20 [,] and in participation certificates in the Short Term Investment Fund 580
created under sections 3-27a and 3-27f, [and in participation certificates 581
or securities of the Tax-Exempt Proceeds Fund created under section 3-582
24a,] (2) deposited or redeposited in any bank or banks, at the direction 583
of the Treasurer, or (3) invested in participation units in the combined 584
investment funds, as defined in section 3-31b. Proceeds from 585
investments authorized by this subsection shall be credited to the 586
Connecticut Manufacturing Innovation Fund. 587
Sec. 13. Subdivision (1) of subsection (a) of section 32-11f of the 588
general statutes is repealed and the following is substituted in lieu 589
thereof (Effective July 1, 2022): 590
(a) (1) Wherever the term "Connecticut Development Authority" is 591
used in the following sections of the general statutes, the term 592
"Connecticut Innovations, Incorporated" shall be substituted in lieu 593
thereof: [3-24d, 3-24f,] 3-99d, 8-134, 8-134a, 8-192, 8-192a, 8-240m, 13b-594
79w, 16-243v, 22a-134, 22a-173, 22a-259, 22a-264, 25-33a, 32-1l, 32-3, 32-595
4l, 32-6j, 32-9c, 32-9n, 32-9qq, 32-22b, 32-23l, 32-23o, 32-23q, 32-23r, 32-596
23s, 32-23t, 32-23v, 32-23x, 32-23z, 32-23aa, 32-23qq, 32-23ss, 32-23tt, 32-597
31a, 32-61, 32-68a, 32-141, 32-222, 32-223, 32-227, 32-244, 32-244a, 32-262, 598
32-263, 32-265, 32-266, 32-285, 32-341, 32-477, 32-500, 32-503, 32-609, 32-599
761, 32-763 and 32-768. 600
Sec. 14. Subsection (b) of section 32-602 of the general statutes is 601
repealed and the following is substituted in lieu thereof (Effective July 1, 602
2022): 603
(b) For these purposes, the authority shall have the following powers: 604 Raised Bill No. 5502
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(1) To have perpetual succession as a body corporate and to adopt 605
procedures for the regulation of its affairs and the conduct of its business 606
as provided in subsection (f) of section 32-601, to adopt a corporate seal 607
and alter the same at its pleasure, and to maintain an office at such place 608
or places within the city of Hartford as it may designate; (2) to sue and 609
be sued, to contract and be contracted with; (3) to employ such 610
assistants, agents and other employees as may be necessary or desirable 611
to carry out its purposes, which employees shall be exempt from the 612
classified service and shall not be employees, as defined in subsection 613
(b) of section 5-270, to fix their compensation, to establish and modify 614
personnel procedures as may be necessary from time to time and to 615
negotiate and enter into collective bargaining agreements with labor 616
unions; (4) to acquire, lease, hold and dispose of personal property for 617
the purposes set forth in this section; (5) to procure insurance against 618
any liability or loss in connection with its property and other assets, in 619
such amounts and from such insurers as it deems desirable and to 620
procure insurance for employees; (6) to invest any funds not needed for 621
immediate use or disbursement in obligations issued or guaranteed by 622
the United States of America or the state of Connecticut, including the 623
Short Term Investment Fund, [and the Tax-Exempt Proceeds Fund,] and 624
in other obligations which are legal investments for savings banks in 625
this state and in time deposits or certificates of deposit or other similar 626
banking arrangements secured in such manner as the authority 627
determines; (7) notwithstanding any other provision of the general 628
statutes, upon request of the Secretary of the Office of Policy and 629
Management, to enter into an agreement for funding to facilitate the 630
relocation of state offices within the capital city economic development 631
district; (8) to enter into such memoranda of understanding as the 632
authority deems appropriate to carry out its responsibilities under this 633
chapter; and (9) to do all acts and things necessary or convenient to carry 634
out the purposes of and the powers expressly granted by this section. 635
Sec. 15. Sections 3-24a to 3-24h, inclusive, of the general statutes are 636
repealed. (Effective July 1, 2022) 637 Raised Bill No. 5502
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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, 2022 3-20(x)
Sec. 5 July 1, 2022 3-37(a)
Sec. 6 July 1, 2022 3-62h(q)
Sec. 7 July 1, 2022 7-406n(d)
Sec. 8 July 1, 2022 8-169jj(b)(9)
Sec. 9 July 1, 2022 8-336o(b)
Sec. 10 July 1, 2022 10-283(a)(3)
Sec. 11 July 1, 2022 22a-260a(b)
Sec. 12 July 1, 2022 32-7o(b)
Sec. 13 July 1, 2022 32-11f(a)(1)
Sec. 14 July 1, 2022 32-602(b)
Sec. 15 July 1, 2022 Repealer section
Statement of Purpose:
To (1) amend provisions concerning the bonding authority of the
Connecticut Municipal Redevelopment Authority, (2) require state
actors to notify the Treasurer of reportable financial obligations and
agreements, (3) require the prior approval of the Treasurer for certain
transactions, and (4) delete provisions concerning the Tax-Exempt
Proceeds Funds.
[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.]