Senate Bill No. 1154
Public Act No. 23-197
AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE
AUDITORS OF PUBLIC ACCOUNTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subdivision (13) of subsection (b) of section 1-210 of the
general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2023):
(13) Records of an investigation, including any complaint or the name
of [an employee] a person providing information under the provisions
of section 4-61dd or sections 4-276 to 4-280, inclusive;
Sec. 2. Subsections (b) and (c) of section 7-395 of the general statutes
are repealed and the following is substituted in lieu thereof (Effective
October 1, 2023):
(b) If, upon such review of the audit report, the secretary finds (1) that
such audit has not been prepared in accordance with subsection (a) of
section 7-394a, and the municipality, regional school district or audited
agency did not request permission to have the audit report prepared in
a manner not in compliance with said subsection; or (2) evidence of
unsound or irregular financial practices or management letter
comments or lack of internal controls in relation to commonly accepted
standards in municipal finance, then the secretary shall prepare a report Senate Bill No. 1154
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concerning such finding, including, but not limited to, information to
aid in the evaluation of such finding and recommendations for
corrective action. The secretary shall submit such report to (A) the
Municipal Finance Advisory Commission established pursuant to
section 7-394b; (B) the Auditors of Public Accounts; and (C) the chief
executive officer and clerk of the municipality, superintendent of
schools for the regional school district or chief executive officer of the
audited agency.
(c) Upon receipt of a report submitted pursuant to subsection (b) of
this section, the legislative body of the municipality, or in a municipality
where the legislative body is a town meeting, the board of selectmen, or
if the report involves a school district operating within its boundaries,
the regional board of education, shall hold a public meeting to discuss
the nature of the unsound or irregular financial practices, management
letter comments or lack of internal controls in relation to commonly
accepted standards in municipal finance, to address potential causes for
such practices, comments or lack of internal controls and to inform
proposing a plan for corrective action. After such meeting, the chief
executive officer of a municipality or audited agency or superintendent
of schools for the regional school district shall attest to and explain the
secretary's findings and submit a plan for corrective action, in writing,
to the secretary.
Sec. 3. Subsections (c) and (d) of section 3-115b of the general statutes
are repealed and the following is substituted in lieu thereof (Effective
October 1, 2023):
(c) The Comptroller shall establish an opening combined balance
sheet for each appropriated fund as of July 1, 2013, on the basis of
generally accepted accounting principles. The accumulated deficit in the
General Fund on June 30, 2013, as determined on the basis of generally
accepted accounting principles and identified in the annual
comprehensive [annual] financial report of the state as the unassigned Senate Bill No. 1154
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negative balance of the General Fund on said date, reduced by any
funds deposited in the General Fund from other resources for the
purpose of reducing the negative unassigned balance of the fund, shall
be amortized in each fiscal year of each biennial budget, commencing
with the fiscal year ending June 30, 2016, and for the succeeding twelve
fiscal years. The Comptroller shall, to the extent necessary to report the
fiscal position of the state in accordance with generally accepted
accounting principles, reconcile the unassigned balance in the General
Fund at the end of each fiscal year to the unassigned balance in the
General Fund on June 30, 2013, the portion already amortized and any
unassigned balance created after June 30, 2013. The Secretary of the
Office of Policy and Management shall annually publish a
recommended amortization schedule to fully reduce such negative
unassigned balance by June 30, 2028.
(d) The unreserved negative balance in the General Fund reported in
the annual comprehensive [annual] financial report issued by the
Comptroller for the fiscal year ending June 30, 2014, reduced by (1) the
negative unassigned balance in the General Fund for the fiscal year
ending June 30, 2013, and (2) any funds from other resources deposited
in the General Fund for the purpose of reducing the negative
unassigned balance of the fund shall be amortized in each fiscal year of
each biennial budget, commencing with the fiscal year ending June 30,
2018, and for the succeeding ten fiscal years. The Secretary of the Office
of Policy and Management shall annually publish a recommended
amortization schedule to fully reduce such negative unassigned balance
by June 30, 2028.
Sec. 4. Section 4-72 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2023):
(a) The budget document shall consist of the Governor's budget
message in which he or she shall set forth as follows: (1) The Governor's
program for meeting all the expenditure needs of the government for Senate Bill No. 1154
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each fiscal year of the biennium to which the budget relates, indicating
the classes of funds, general or special, from which such appropriations
are to be made and the means through which such expenditure shall be
financed; and (2) financial statements giving in summary form: (A) The
financial position of all major state operating funds including revolving
funds at the end of the last-completed fiscal year in a form consistent
with accepted accounting practice. The Governor shall also set forth in
similar form the estimated position of each such fund at the end of the
year in progress and the estimated position of each such fund at the end
of each fiscal year of the biennium to which the budget relates if the
Governor's proposals are put into effect; (B) a statement showing as of
the close of the last-completed fiscal year, a year by year summary of all
outstanding general obligation and special tax obligation debt of the
state and a statement showing the yearly interest requirements on such
outstanding debt; (C) a summary of appropriations recommended for
each fiscal year of the biennium to which the budget relates for each
budgeted agency and for the state as a whole in comparison with actual
expenditures of the last-completed fiscal year and appropriations and
estimated expenditures for the year in progress; (D) for the biennium
commencing July 1, 1999, and each biennium thereafter, a summary of
estimated expenditures for certain fringe benefits for each fiscal year of
the biennium to which the budget relates for each budgeted agency; (E)
a summary of permanent full-time positions setting forth the number
filled and the number vacant as of the end of the last-completed fiscal
year, the total number intended to be funded by appropriations without
reduction for turnover for the fiscal year in progress, the total number
requested and the total number recommended for each fiscal year of the
biennium to which the budget relates; (F) a statement of expenditures
for the last-completed and current fiscal years, the agency request and
the Governor's recommendation for each fiscal year of the ensuing
biennium and, for any new or expanded program, estimated
expenditure requirements for the fiscal year next succeeding the
biennium to which the budget relates; (G) an explanation of any Senate Bill No. 1154
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significant program changes requested by the agency or recommended
by the Governor; (H) a summary of the revenue estimated to be received
by the state during each fiscal year of the biennium to which the budget
relates classified according to sources in comparison with the actual
revenue received by the state during the last-completed fiscal year and
estimated revenue during the year in progress; and (I) such other
financial statements, data and comments as in the Governor's opinion
are necessary or desirable in order to make known in all practicable
detail the financial condition and operations of the government and the
effect that the budget as proposed by the Governor will have on such
condition and operations.
(b) If the estimated revenue of the state for the ensuing biennium as
set forth in the budget on the basis of existing statutes is less than the
sum of net appropriations recommended for the ensuing biennium as
contained in the budget, plus, for the fiscal year ending June 30, 2014,
and each fiscal year thereafter, the projected amount necessary to
extinguish any unreserved negative balance in such fund as reported in
the most recently audited annual comprehensive [annual] financial
report issued by the Comptroller prior to the start of the biennium, the
Governor shall make recommendations to the General Assembly in
respect to the manner in which such deficit shall be met, whether by an
increase in the indebtedness of the state, by the imposition of new taxes,
by increased rates on existing taxes or otherwise. If the aggregate of such
estimated revenue is greater than the sum of such recommended
appropriations for the ensuing biennium plus, for the fiscal year ending
June 30, 2014, and each fiscal year thereafter, the projected amount
necessary to extinguish any unreserved negative balance in such fund
as reported in the most recently issued annual report of the Comptroller
published in accordance with section 3-115, the Governor shall make
such recommendations for the use of such surplus for the reduction of
indebtedness, for the reduction in taxation or for other purposes as in
the Governor's opinion are in the best interest of the public welfare. Senate Bill No. 1154
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Sec. 5. Subsection (a) of section 8-169mm of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2023):
(a) In lieu of the report required under section 1-123, within the first
ninety days of each fiscal year of the Connecticut Municipal
Redevelopment Authority, the board of directors of the authority shall
submit a report to the Governor, the Auditors of Public Accounts and
the joint standing committee of the General Assembly having
cognizance of matters relating to finance, revenue and bonding. Such
report shall include, but not be limited to, the following: (1) A list of all
bonds issued during the preceding fiscal year, including, for each such
issue, the financial advisor and underwriters, whether the issue was
competitive, negotiated or privately placed, and the issue's face value
and net proceeds; (2) a description of each authority development
project in which the authority is involved, its location and the amount
of funds, if any, provided by the authority with respect to the
construction of such project; (3) a list of all outside individuals and
firms, including principal and other major stockholders, receiving in
excess of five thousand dollars as payments for services; (4) [a] an
annual comprehensive [annual] financial report prepared in accordance
with generally accepted accounting principles for governmental
enterprises; (5) the cumulative value of all bonds issued, the value of
outstanding bonds and the amount of the state's contingent liability; (6)
the affirmative action policy adopted pursuant to section 8-169kk, a
description of the composition of the workforce of the Connecticut
Municipal Redevelopment Authority by race, sex and occupation and a
description of the affirmative action efforts of the authority; and (7) a
description of planned activities for the current fiscal year.
Sec. 6. Subsection (a) of section 15-120o of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2023): Senate Bill No. 1154
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(a) Within the first ninety days of each fiscal year of the authority, the
board of directors of the authority shall submit a report to the Governor,
the Auditors of Public Accounts and the joint standing committee of the
General Assembly having cognizance of matters relating to finance,
revenue and bonding. Such report shall include, but not be limited to,
the following: (1) A list of all bonds issued during the preceding fiscal
year, including, for each such issue, the financial advisor and
underwriters, whether the issue was competitive, negotiated or
privately placed, and the issue's face value and net proceeds; (2) a
description of the project, its location, and the amount of funds, if any,
provided by the authority with respect to the construction of the project;
(3) a list of all outside individuals and firms receiving in excess of five
thousand dollars in the form of loans, grants or payments for services;
(4) [a] an annual comprehensive [annual] financial report prepared in
accordance with generally accepted accounting principles for
governmental enterprises; (5) the cumulative value of all bonds issued,
the value of outstanding bonds, and the amount of the state's contingent
liability; (6) the affirmative action policy statement, a description of the
composition of the work force of the authority by race, sex and
occupation and a description of the affirmative action efforts of the
authority; and (7) a description of planned activities for the current fiscal
year.
Sec. 7. Subsection (a) of section 32-605 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2023):
(a) In lieu of the report required under section 1-123, within the first
ninety days of each fiscal year of the Capital Region Development
Authority, the board of directors of the authority shall submit a report
to the Governor, the Auditors of Public Accounts and the joint standing
committee of the General Assembly having cognizance of matters
relating to finance, revenue and bonding. Such report shall include, but Senate Bill No. 1154
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not be limited to, the following: (1) A list of all bonds issued during the
preceding fiscal year, including, for each such issue, the financial
advisor and underwriters, whether the issue was competitive,
negotiated or privately placed, and the issue's face value and net
proceeds; (2) a description of the capital city project or any economic
development project in the capital region in which the authority is
involved, its location and the amount of funds, if any, provided by the
authority with respect to the construction of such project; (3) a list of all
outside individuals and firms, including principal and other major
stockholders, receiving in excess of five thousand dollars as payments
for services; (4) [a] an annual comprehensive [annual] financial report
prepared in accordance with generally accepted accounting principles
for governmental enterprises; (5) the cumulative value of all bonds
issued, the value of outstanding bonds and the amount of the state's
contingent liability; (6) the affirmative action policy statement, a
description of the composition of the work force of the authority by race,
sex and occupation and a description of the affirmative action efforts of
the authority; (7) a description of planned activities for the current fiscal
year; (8) a list of all private investments made or committed for
commercial development within the capital city economic development
district; and (9) an analysis of the authority's success in achieving the
purposes stated in section 32-602.