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General Assembly Raised Bill No. 1227
January Session, 2023
LCO No. 5539
Referred to Committee on GOVERNMENT
ADMINISTRATION AND ELECTIONS
Introduced by:
(GAE)
AN ACT CONCERNING THE BONDING AUTHORITY OF THE
CONNECTICUT MUNICIPAL REDEVELOPMENT AUTHORITY, THE
REPORTING OF MATERIAL FINANCIAL OBLIGATIONS BY STATE
AGENCIES, TAX-EXEMPT PROCEEDS FUND REFERENCES, AND
THE NOTIFICATION OF THE SALE OR LEASE OF PROJECTS
FINANCED WITH BOND PROCEEDS.
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 Section 8-169oo of the general statutes is repealed and the 1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 Bill No. 1227
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establishment of reserves to secure such bonds, notes and other 12
obligations, loans made by the authority and all other expenditures of 13
the authority incident to and necessary or convenient to carry out the 14
purposes set forth in section 8-169jj, as amended by this act. 15
(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 Bill No. 1227
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redemption, with or without premium, as such resolution or resolutions 45
may provide. 46
(e) Bonds, notes or other obligations of the authority may be sold at 47
public or private sale at such price or prices as the board shall determine. 48
(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 Bill No. 1227
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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
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 Bill No. 1227
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restriction of the rights of any individual holder of bonds, notes or other 112
obligations of the authority. All expenses incurred in carrying out the 113
provisions of such trust agreement may be treated as a part of the cost 114
of operation of the authority. The trust agreement may contain any 115
further provisions which are reasonable to delineate further the 116
respective rights, duties, safeguards, responsibilities and liabilities of 117
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 Bill No. 1227
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any such insurance or guarantee except to the extent that such action 145
would in any way impair or interfere with the authority's ability to 146
perform and fulfill the terms of any agreement made with the holders 147
of the bonds, bond anticipation notes or other obligations of the 148
authority. 149
[(k) Neither the members of the board of directors of the authority 150
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 Bill No. 1227
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this section. Any officer with whom, or any bank or trust company with 178
which, such moneys shall be deposited shall act as trustee of such 179
moneys and shall hold and apply the same for the purposes of section 180
8-169jj, as amended by this act, and the resolution authorizing the bonds 181
of any issue or the trust agreement securing such bonds may provide. 182
[(n)] (m) Any holder of bonds, notes or other obligations issued under 183
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 Bill No. 1227
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to the holders or owners of such bonds, notes or other obligations are 211
finally met and discharged; and (3) provisions to (A) establish trust and 212
other accounts which may be appropriate to carry out such 213
representations and agreements, (B) retain fiscal agents as depositories 214
for such funds and accounts, and (C) provide that such fiscal agents may 215
act as trustee of such funds and accounts. 216
Sec. 2. Section 8-169qq of the general statutes is repealed and the 217
following is substituted in lieu thereof (Effective from passage): 218
[(a) The state shall protect, save harmless and indemnify the 219
directors, officers and employees of the Connecticut Municipal 220
Redevelopment Authority from financial loss and expenses, including 221
legal fees and costs, if any, arising out of any claim, demand, suit or 222
judgment based upon any alleged act or omission of any such director, 223
officer or employee in connection with, or any other legal challenge to, 224
authority development projects within a Connecticut Municipal 225
Redevelopment Authority development district, provided any such 226
director, officer or employee is found to have been acting in the 227
discharge of such director, officer or employee's duties or within the 228
scope of such director, officer or employee's employment and any such 229
act or omission is found not to have been wanton, reckless, wilful or 230
malicious. 231
(b) In the event any bond, note or other obligation of the authority 232
cannot be paid by the authority, the state shall assume the liability of 233
and make payment on such debt.] 234
(a) For the purposes of this section, "required minimum capital 235
reserve" means the maximum amount permitted to be deposited in a 236
special capital reserve fund by the Internal Revenue Code of 1986, or 237
any subsequent corresponding internal revenue code of the United 238
States, as amended from time to time, to permit the interest on the bonds 239
of the Connecticut Municipal Redevelopment Authority secured by 240
such special capital reserve fund to be excluded from gross income for 241
federal tax purposes. 242 Bill No. 1227
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(b) The authority may, in connection with the issuance of bonds, the 243
refunding of bonds previously issued by the authority or the issuance 244
of bonds to effect a refinancing or other restructuring with respect to one 245
or more projects, establish one or more special capital reserve funds. The 246
authority may pay into such special capital reserve funds (1) any 247
moneys appropriated and made available by the state for the purposes 248
of such special capital reserve funds, (2) any proceeds of the sale of 249
bonds or notes of the authority, to the extent provided in the resolution 250
of said authority authorizing the issuance of such bonds or notes, and 251
(3) any moneys made available to the authority from any other source 252
for the purposes of such special capital reserve funds. The amount of 253
bonds of the authority secured by special capital reserve funds shall not 254
exceed fifty million dollars in the aggregate. 255
(c) (1) Except as otherwise provided in this section, the moneys held 256
in or credited to any special capital reserve fund established under this 257
section shall be used for: 258
(A) The payment of the principal and interest as such payments 259
become due, whether due at maturity or by mandatory sinking fund 260
installments, on bonds of the authority secured by such special capital 261
reserve fund; or 262
(B) The purchase of such bonds and the payment of any redemption 263
premium required to be paid when such bonds are redeemed prior to 264
maturity, including reimbursement of a provider of bond insurance or 265
of a credit or liquidity facility that has paid such redemption premium. 266
(2) The authority may prohibit, except for the purpose of paying the 267
principal of and interest and redemption premium on bonds of the 268
authority secured by a special capital reserve fund for which other 269
moneys of the authority are not available, the withdrawal of moneys in 270
any special capital reserve fund in an amount that would result in the 271
balance of such special capital reserve fund being less than (A) the 272
maximum amount of principal and interest becoming due by reason of 273
maturity or a required sinking fund installment on the bonds of the 274 Bill No. 1227
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authority outstanding in the then current or any succeeding calendar 275
year, or (B) the required minimum capital reserve. 276
(3) The authority may provide at any time that it shall not issue bonds 277
secured by a special capital reserve fund if the required minimum 278
capital reserve on the bonds outstanding and the bonds to be issued and 279
secured by the same special capital reserve fund at the time of issuance 280
exceeds the moneys in the special capital reserve fund, unless the 281
authority deposits proceeds from the bonds to be issued or moneys from 282
other sources into such special capital reserve fund, in an amount that, 283
together with the amount then in such special capital reserve fund, will 284
be not less than the required minimum capital reserve. 285
(d) (1) (A) Prior to December first, annually, the authority shall 286
deposit, for any special capital reserve fund for which the balance is 287
below the required minimum capital reserve, the full amount required 288
to meet the required minimum capital reserve for such special capital 289
reserve fund. Such deposit shall be made from any resources available 290
to the authority not otherwise pledged or dedicated to another purpose. 291
(B) On or prior to December first, annually, but after the authority has 292
made any deposits required under subparagraph (A) of this 293
subdivision, there shall be deemed appropriated from the General Fund 294
any sums necessary to restore the balance of each such special capital 295
reserve fund to the required minimum capital reserve amount. The 296
amount of any such sum shall be allotted and paid to the authority upon 297
the certification of such sum by the chairperson or vice-chairperson of 298
the authority to the Secretary of the Office of Policy and Management, 299
the Treasurer and the joint standing committees of the General 300
Assembly having cognizance of matters relating to planning and 301
development and finance, revenue and bonding. 302
(C) For the purposes of this subdivision, obligations acquired as an 303
investment for any special capital reserve fund shall be valued at 304
amortized cost. 305 Bill No. 1227
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(2) Subject to any agreement or agreements with holders of 306
outstanding bonds or notes of the authority, any amount allotted and 307
paid to the authority pursuant to subdivision (1) of this subsection shall 308
be repaid to the state from moneys of the authority, at such time as such 309
moneys are not required for any other corporate purposes of the 310
authority. Such repayment shall occur not later than one year after the 311
date the following liabilities are met and fully discharged by the 312
authority: (A) All bonds and notes of the authority that were issued 313
before, on or after the date such allotted amount was paid to the 314
authority; (B) all interest on such bonds and notes and on any unpaid 315
installments of interest; and (C) all costs and expenses incurred in 316
connection with any action or proceeding by or on behalf of the holders 317
of such bonds or notes. 318
(e) (1) The authority shall not issue bonds secured by a special capital 319
reserve fund until and unless: 320
(A) The authority has determined, and has provided such 321
determination to the Secretary of the Office of Policy and Management 322
or the secretary's deputy and to the Treasurer or the Deputy Treasurer, 323
that the revenues from the project shall be sufficient to (i) pay the 324
principal of and interest on the bonds issued to finance the project, (ii) 325
establish, increase and maintain any reserves deemed advisable by the 326
authority to secure the payment of the principal of and interest on such 327
bonds, (iii) pay the cost of maintaining the project in good repair and 328
properly insured, and (iv) pay such other costs of the project as may be 329
required; 330
(B) The issuance has been approved by the Secretary of the Office of 331
Policy and Management or the secretary's deputy; and 332
(C) The authority has provided the documentation required under 333
subsection (a) of section 1-124 to the Treasurer or the Deputy Treasurer 334
and the issuance has been approved by the Treasurer or the Deputy 335
Treasurer pursuant to said subsection. 336 Bill No. 1227
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(2) The approval by the Secretary of the Office of Policy and 337
Management or the secretary's deputy may provide for the waiver or 338
modification of the requirements of this section as the secretary deems 339
necessary or appropriate to effectuate such issuance, subject to any 340
applicable tax covenants of the authority and the state. 341
(f) Nothing in this section shall preclude the authority from 342
establishing other debt service reserve funds that are not special capital 343
reserve funds in connection with the issuance of bonds or notes of the 344
authority. 345
Sec. 3. (NEW) (Effective from passage) (a) As used in this section, (1) 346
"person" means any (A) state officer, (B) state agency, department, board 347
or commission, or (C) state employee, or any agent thereof. "Person" 348
includes The University of Connecticut Health Care Finance 349
Corporation, and (2) "financial obligation" has the same meaning as 350
provided in 17 CFR 240.15c2-12, as amended from time to time. 351
(b) (1) Before any person incurs any financial obligation of the state 352
or enters into any agreement to covenants, events of default, remedies, 353
priority rights or other similar terms in connection with a financial 354
obligation of the state, where such financial obligation (A) is in excess of 355
one million dollars, or (B) encumbers property or rights of the state 356
material to the operations of the state, such person shall notify the 357
Treasurer of such proposed financial obligation or agreement and 358
submit any documents pursuant to which such financial obligation is to 359
be incurred or such agreement is to be entered into. No such person shall 360
incur any such financial obligation or enter into any such agreement 361
until such person has received a written acknowledgment pursuant to 362
subdivision (2) of this subsection. 363
(2) Upon receipt of such notification and documents, the Treasurer 364
shall determine whether the information provided is adequate for the 365
Treasurer to timely meet required disclosure obligations under federal 366
securities law. The Treasurer may request additional information the 367
Treasurer deems necessary to make such determination. Upon the 368 Bill No. 1227
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Treasurer's satisfaction that adequate information has been provided for 369
the Treasurer to timely meet required disclosure obligations under 370
federal securities law, the Treasurer or the Treasurer's designee shall 371
provide written acknowledgment to the person seeking to incur such 372
financial obligation or enter into such agreement. The Treasurer may 373
establish, and revise from time to time, exemptions from such 374
notification and submission requirements as the Treasurer determines 375
are consistent with the state's disclosure obligations under federal 376
securities law. 377
Sec. 4. Subsection (x) of section 3-20 of the general statutes is repealed 378
and the following is substituted in lieu thereof (Effective July 1, 2023): 379
(x) Notwithstanding any provision of the general statutes, public acts 380
or special acts, [upon] any sale, lease or other disposition to or use by a 381
nongovernmental entity of all or a portion of any project financed with 382
proceeds of bonds of the state the interest on which is not included in 383
gross income pursuant to Section 103 of the Internal Revenue Code of 384
1986, or any subsequent corresponding internal revenue code of the 385
United States, as amended from time to time, [amended,] that would 386
otherwise cause such bonds to be treated as private activity bonds 387
within the meaning of Section 141 of said internal revenue code [, the] 388
shall be subject to the prior approval of the Treasurer. The Treasurer is 389
authorized to transfer all or a portion of the proceeds received with 390
respect to and at the time of such disposition or use, in an amount not 391
less than the amount required by said internal revenue code to preserve 392
the exclusion from gross income of interest on such bonds, (1) to the 393
General Fund to pay debt service on, including redemption, defeasance 394
or purchase of, outstanding bonds of the state the interest on which is 395
not included in gross income pursuant to Section 103 of said internal 396
revenue code, (2) with the approval of the State Bond Commission, in 397
lieu of the issuance of bonds, to the appropriate account or fund for any 398
projects or purposes authorized by the State Bond Commission 399
pursuant to a bond act and with the same force and effect as bond 400
proceeds, thereby reducing the authority to issue bonds by such dollar 401 Bill No. 1227
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amount, provided in any event that any such transfer does not cause the 402
interest on the subject bonds to become included in gross income 403
pursuant to Section 103 of said internal revenue code. 404
Sec. 5. Subsection (a) of section 3-37 of the general statutes is repealed 405
and the following is substituted in lieu thereof (Effective July 1, 2023): 406
(a) The Treasurer shall, annually, on or before December thirty-first, 407
submit a final audited report to the Governor and a copy of such report 408
to the Investment Advisory Council, which shall include the following 409
information concerning the activities of the office of the State Treasurer 410
for the immediately preceding fiscal year ending June thirtieth: (1) 411
Complete financial statements and accompanying footnotes for the 412
combined investment funds prepared in accordance with generally 413
accepted accounting principles, which financial statements shall be 414
audited in accordance with generally accepted auditing standards and 415
supplementary schedules depicting the interests of the component 416
retirement plans and trust funds; (2) complete financial statements and 417
accompanying footnotes for the Short Term Investment Fund prepared 418
in accordance with generally accepted accounting principles and 419
supplementary schedules listing all assets held by the Short Term 420
Investment Fund; (3) a discussion and review of the performance of the 421
combined investment funds and Short Term Investment Fund for such 422
fiscal year in accordance with recognized and appropriate performance 423
presentation and disclosure, including an analysis of the return earned 424
by the portfolio and each combined investment fund as well as the risk 425
profile of the portfolio and each combined investment fund according 426
to investment industry standards; (4) the activities and transactions in 427
such reasonable detail as is appropriate of the cash management 428
division including information on the state's cash receipts and 429
disbursements for the fiscal year, and the debt management division; 430
[including the financial statements of the tax-exempt proceeds fund 431
prepared in accordance with generally accepted accounting principles;] 432
(5) financial statements and accompanying footnotes as well as a 433
summary of operating results for the Second Injury Fund for such fiscal 434 Bill No. 1227
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year; (6) a financial summary and report on the activities of the state's 435
unclaimed property program for such fiscal year; (7) a listing of the 436
companies from which state funds were divested based upon such 437
companies' business in Sudan, pursuant to the provisions of section 3-438
21e, and any companies identified by the Treasurer as companies from 439
which investment of state funds has been declared impermissible by the 440
Treasurer, pursuant to the provisions of section 3-21e; and (8) such other 441
information as the Treasurer deems of interest to the public. 442
Sec. 6. Subsection (q) of section 3-62h of the general statutes is 443
repealed and the following is substituted in lieu thereof (Effective July 1, 444
2023): 445
(q) Any moneys held by the Treasurer or by a trustee pursuant to an 446
indenture of trust with respect to abandoned property fund bonds 447
including pledged revenues, other pledged receipts, funds or moneys 448
and proceeds from the sale of such abandoned property fund bonds, 449
may, pending the use or application of the proceeds thereof for an 450
authorized purpose, be (1) invested and reinvested in such obligations, 451
securities and investments as are set forth in subsection (f) of section 3-452
20 [,] and in participation certificates in the Short Term Investment 453
Funds created under sections 3-27a and 3-27f, [and in participation 454
certificates or securities of the Tax-Exempt Proceeds Fund created under 455
section 3-24a] or (2) deposited or redeposited in such bank or banks as 456
shall be provided in the proceedings. Unless the proceedings provide 457
otherwise, proceeds from investments authorized by this subsection, 458
less amounts required under the proceedings authorizing the issuance 459
of abandoned property fund bonds for the payment of Special 460
Abandoned Property Fund financing costs relating to such abandoned 461
property fund bonds, shall be credited to the Special Abandoned 462
Property Fund. 463
Sec. 7. Subsection (d) of section 7-406n of the general statutes is 464
repealed and the following is substituted in lieu thereof (Effective July 1, 465
2023): 466 Bill No. 1227
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(d) Any moneys held by the Treasurer or by a trustee pursuant to an 467
indenture of trust with respect to municipal pension solvency account 468
bonds including pledged revenues, other pledged receipts, funds or 469
moneys and proceeds from the sale of such municipal pension solvency 470
account bonds, may, pending the use or application of such proceeds 471
for an authorized purpose, be (1) invested and reinvested in such 472
obligations, securities and investments as are set forth in subsection (f) 473
of section 3-20 [,] and in participation certificates in the Short Term 474
Investment Funds created under sections 3-27a and 3-27f, [and in 475
participation certificates or securities of the Tax-Exempt Proceeds Fund 476
created under section 3-24a,] or (2) deposited or redeposited in such 477
bank or banks as shall be provided in the proceedings authorizing the 478
issuance of municipal pension solvency account bonds. Unless the 479
proceedings provide otherwise, proceeds from investments authorized 480
by this subsection, less amounts required under the proceedings for the 481
payment of municipal pension solvency loan costs relating to such 482
municipal pension solvency account bonds, shall be credited to the 483
municipal pension solvency account. 484
Sec. 8. Subdivision (9) of subsection (b) of section 8-169jj of the general 485
statutes is repealed and the following is substituted in lieu thereof 486
(Effective July 1, 2023): 487
(9) Invest any funds not needed for immediate use or disbursement 488
in obligations issued or guaranteed by the United States or the state, 489
including the Short Term Investment Fund, [and the Tax-Exempt 490
Proceeds Fund,] and in other obligations that are legal investments for 491
savings banks in this state, and in-time deposits or certificates of deposit 492
or other similar banking arrangements secured in such manner as the 493
authority determines; 494
Sec. 9. Subsection (b) of section 8-336o of the general statutes is 495
repealed and the following is substituted in lieu thereof (Effective July 1, 496
2023): 497
(b) Any moneys held in the Housing Trust Fund may, pending the 498 Bill No. 1227
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use or application of the proceeds thereof for an authorized purpose, be 499
(1) invested and reinvested in such obligations, securities and 500
investments as are set forth in subsection (f) of section 3-20 [,] and in 501
participation certificates in the Short Term Investment Fund created 502
under sections 3-27a and 3-27f, [and in participation certificates or 503
securities of the Tax-Exempt Proceeds Fund created under section 3-504
24a,] (2) deposited or redeposited in such bank or banks at the direction 505
of the Treasurer, or (3) invested in participation units in the combined 506
investment funds, as defined in section 3-31b. Unless otherwise 507
provided pursuant to subsection (c) of this section, proceeds from 508
investments authorized by this subsection shall be credited to the 509
Housing Trust Fund. 510
Sec. 10. Subsection (b) of section 32-7o of the general statutes is 511
repealed and the following is substituted in lieu thereof (Effective July 1, 512
2023): 513
(b) Any moneys held in the Connecticut Manufacturing Innovation 514
Fund may, pending the use or application of the proceeds thereof for an 515
authorized purpose, be (1) invested and reinvested in such obligations, 516
securities and investments as are set forth in subsection (f) of section 3-517
20 [,] and in participation certificates in the Short Term Investment Fund 518
created under sections 3-27a and 3-27f, [and in participation certificates 519
or securities of the Tax-Exempt Proceeds Fund created under section 3-520
24a,] (2) deposited or redeposited in any bank or banks, at the direction 521
of the Treasurer, or (3) invested in participation units in the combined 522
investment funds, as defined in section 3-31b. Proceeds from 523
investments authorized by this subsection shall be credited to the 524
Connecticut Manufacturing Innovation Fund. 525
Sec. 11. Subdivision (6) of subsection (b) of section 32-602 of the 526
general statutes is repealed and the following is substituted in lieu 527
thereof (Effective July 1, 2023): 528
(6) To invest any funds not needed for immediate use or 529
disbursement in obligations issued or guaranteed by the United States 530 Bill No. 1227
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of America or the state of Connecticut, including the Short Term 531
Investment Fund, [and the Tax-Exempt Proceeds Fund,] and in other 532
obligations which are legal investments for savings banks in this state 533
and in time deposits or certificates of deposit or other similar banking 534
arrangements secured in such manner as the authority determines; 535
Sec. 12. Section 10-63b of the general statutes is repealed and the 536
following is substituted in lieu thereof (Effective from passage): 537
Within thirty days of receipt of an application pursuant to section 10-538
63a the regional board of education shall call for the appointment of a 539
committee to study issues relating to withdrawal or dissolution. The 540
committee shall consist of the following: One member of the board of 541
education of each town within the district, to be selected by each such 542
board, if any, or if none, an elector to be elected by the legislative body 543
in such town; one member of the board of finance or comparable fiscal 544
body of each town within the district to be selected by each such board 545
or body; two members of the regional board of education, to be selected 546
by such board, no more than one of whom may be a resident of a town 547
making the application for the appointment of the committee; one 548
member to be appointed by the Commissioner of Education, who shall 549
not be a resident of any town within the district; [the State Treasurer or 550
the Treasurer's designee,] and one member to be appointed by the 551
regional board of education, who [shall be] is an expert in municipal 552
bonding and financing and who shall not be a resident of any town 553
within the district. The members shall receive no compensation for their 554
services, but their expenses and those incurred by the regional board in 555
connection with withdrawal or dissolution procedures shall be paid by 556
the towns applying for withdrawal or dissolution. The appointee of the 557
Commissioner of Education shall call the first meeting of the committee, 558
and the committee shall organize and function in accordance with 559
section 10-41. 560
Sec. 13. Subdivision (3) of subsection (a) of section 10-283 of the 561
general statutes is repealed and the following is substituted in lieu 562
thereof (Effective July 1, 2023): 563 Bill No. 1227
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(3) (A) All final calculations completed by the Department of 564
Administrative Services for school building projects shall include a 565
computation of the state grant for the school building project amortized 566
on a straight line basis over a twenty-year period for school building 567
projects with costs equal to or greater than two million dollars and over 568
a ten-year period for school building projects with costs less than two 569
million dollars. Any town or regional school district which abandons, 570
sells, leases, demolishes or otherwise redirects the use of such a school 571
building project to other than a public school use during such 572
amortization period shall refund to the state the unamortized balance of 573
the state grant remaining as of the date the abandonment, sale, lease, 574
demolition or redirection occurs. The amortization period for a project 575
shall begin on the date the project was accepted as complete by the local 576
or regional board of education. A town or regional school district 577
required to make a refund to the state pursuant to this subdivision may 578
request forgiveness of such refund if the building is redirected for public 579
use. The Department of Administrative Services shall include as an 580
addendum to the annual school construction priority list all those towns 581
requesting forgiveness. General Assembly approval of the priority list 582
containing such request shall constitute approval of such request. This 583
subdivision shall not apply to projects to correct safety, health and other 584
code violations or to remedy certified school indoor air quality 585
emergencies approved pursuant to subsection (b) of this section or 586
projects subject to the provisions of section 10-285c. 587
(B) If the board of governors for an independent institution of higher 588
education, as defined in subsection (a) of section 10a-173, or the 589
equivalent of such a board, on behalf of the independent institution of 590
higher education, that operates an interdistrict magnet school makes 591
private use of any portion of a school building in which such operator 592
received a school building project grant pursuant to this chapter, such 593
operator shall annually submit a report to the Commissioner of 594
Education that demonstrates that such operator provides an equal to or 595
greater than in-kind or supplemental benefit of such institution's 596
facilities to students enrolled in such interdistrict magnet school that 597 Bill No. 1227
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outweighs the private use of such school building. If the commissioner 598
finds that the private use of such school building exceeds the in-kind or 599
supplemental benefit to magnet school students, the commissioner may 600
require such institution to refund to the state the unamortized balance 601
of the state grant. 602
[(C) Any moneys refunded to the state pursuant to subparagraphs 603
(A) and (B) of this subdivision shall be deposited in the state's tax-604
exempt proceeds fund and used not later than sixty days after 605
repayment to pay debt service on, including redemption, defeasance or 606
purchase of, outstanding bonds of the state the interest on which is not 607
included in gross income pursuant to Section 103 of the Internal 608
Revenue Code of 1986, or any subsequent corresponding internal 609
revenue code of the United States, as from time to time amended.] 610
Sec. 14. Subsection (b) of section 22a-260a of the general statutes is 611
repealed and the following is substituted in lieu thereof (Effective July 1, 612
2023): 613
(b) Wherever the words "Connecticut Resources Recovery Authority" 614
are used in any public or special act of 2014 or in the following sections 615
of the general statutes, the words "Materials Innovation and Recycling 616
Authority" shall be substituted in lieu thereof: 1-79, 1-120, 1-124, 1-125, 617
[3-24d, 3-24f,] 7-329a, 12-412, 12-459, 16-1, 16-245, 16-245b, 22a-208a, 22a-618
208v, 22a-209h, 22a-219b, 22a-220, 22a-241, 22a-260, 22a-261, 22a-263a, 619
22a-263b, 22a-268a, 22a-268b, 22a-270a, 22a-272a, 22a-282, 22a-283, 22a-620
284, 32-1e and 32-658. 621
Sec. 15. Subdivision (1) of subsection (a) of section 32-11f of the 622
general statutes is repealed and the following is substituted in lieu 623
thereof (Effective July 1, 2023): 624
(a) (1) Wherever the term "Connecticut Development Authority" is 625
used in the following sections of the general statutes, the term 626
"Connecticut Innovations, Incorporated" shall be substituted in lieu 627
thereof: [3-24d, 3-24f,] 3-99d, 8-134, 8-134a, 8-192, 8-192a, 8-240m, 13b-628 Bill No. 1227
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79w, 16-243v, 22a-134, 22a-173, 22a-259, 22a-264, 25-33a, 32-1l, 32-3, 32-629
4l, 32-6j, 32-9c, 32-9n, 32-9qq, 32-22b, 32-23l, 32-23o, 32-23q, 32-23r, 32-630
23s, 32-23t, 32-23v, 32-23x, 32-23z, 32-23aa, 32-23qq, 32-23ss, 32-23tt, 32-631
31a, 32-61, 32-68a, 32-141, 32-222, 32-223, 32-227, 32-244, 32-244a, 32-262, 632
32-263, 32-265, 32-266, 32-285, 32-341, 32-477, 32-500, 32-503, 32-609, 32-633
761, 32-763 and 32-768. 634
Sec. 16. Sections 3-24a to 3-24h, inclusive, of the general statutes are 635
repealed. (Effective July 1, 2023) 636
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, 2023 3-20(x)
Sec. 5 July 1, 2023 3-37(a)
Sec. 6 July 1, 2023 3-62h(q)
Sec. 7 July 1, 2023 7-406n(d)
Sec. 8 July 1, 2023 8-169jj(b)(9)
Sec. 9 July 1, 2023 8-336o(b)
Sec. 10 July 1, 2023 32-7o(b)
Sec. 11 July 1, 2023 32-602(b)(6)
Sec. 12 from passage 10-63b
Sec. 13 July 1, 2023 10-283(a)(3)
Sec. 14 July 1, 2023 22a-260a(b)
Sec. 15 July 1, 2023 32-11f(a)(1)
Sec. 16 July 1, 2023 Repealer section
GAE Joint Favorable