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| 3 | - | LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01235-R01- | |
| 4 | - | SB.docx | |
| 5 | - | 1 of 18 | |
| 3 | + | LCO No. 4291 1 of 7 | |
| 6 | 4 | ||
| 7 | - | General Assembly | |
| 5 | + | General Assembly Raised Bill No. 1235 | |
| 8 | 6 | January Session, 2023 | |
| 7 | + | LCO No. 4291 | |
| 9 | 8 | ||
| 9 | + | ||
| 10 | + | Referred to Committee on FINANCE, REVENUE AND | |
| 11 | + | BONDING | |
| 12 | + | ||
| 13 | + | ||
| 14 | + | Introduced by: | |
| 15 | + | (FIN) | |
| 10 | 16 | ||
| 11 | 17 | ||
| 12 | 18 | ||
| 13 | 19 | ||
| 14 | 20 | AN ACT IMPLEMENTING THE TREASURER'S RECOMMENDATIONS | |
| 15 | 21 | CONCERNING THE INVESTMENT ADVISORY COUNCIL AND | |
| 16 | - | RELATED STATUTES AND CONCERNING THE BABY BOND TRUST | |
| 17 | - | PROGRAM. | |
| 22 | + | RELATED STATUTES. | |
| 18 | 23 | Be it enacted by the Senate and House of Representatives in General | |
| 19 | 24 | Assembly convened: | |
| 20 | 25 | ||
| 21 | 26 | Section 1. Section 3-13a of the general statutes is repealed and the 1 | |
| 22 | 27 | following is substituted in lieu thereof (Effective from passage): 2 | |
| 23 | 28 | (a) The Treasurer, with the advice and consent of the Investment 3 | |
| 24 | 29 | Advisory Council, shall appoint a chief investment officer and may 4 | |
| 25 | 30 | appoint a deputy chief investment officer, [and] principal investment 5 | |
| 26 | 31 | officers, investment officers and other personnel to assist the chief 6 | |
| 27 | 32 | investment officer, for the Connecticut retirement pension and trust 7 | |
| 28 | 33 | funds, who shall serve at the pleasure of the Treasurer and whose 8 | |
| 29 | - | compensation shall be determined by the Treasurer within salary 9 | |
| 30 | - | ranges established by the Treasurer in consultation with the 10 | |
| 31 | - | Investment Advisory Council. The provisions of section 4-40 shall not 11 | |
| 32 | - | apply to the compensation of [said] such officers and personnel. The 12 | |
| 33 | - | chief investment officer shall be sworn to the faithful discharge of 13 | |
| 34 | - | duties under law and shall, under the direction of the Treasurer and 14 | |
| 35 | - | subject to the provisions of sections 3-13 to 3-13d, inclusive, and 3-31b, 15 | |
| 36 | - | advise the Treasurer on investing the trust funds of the state. [Said] 16 | |
| 37 | - | The chief investment officer shall also perform such other duties as the 17 Substitute Bill No. 1235 | |
| 34 | + | compensation shall be determined by the Treasurer within salary ranges 9 | |
| 35 | + | established by the Treasurer in consultation with the Investment 10 | |
| 36 | + | Advisory Council. The provisions of section 4-40 shall not apply to the 11 | |
| 37 | + | compensation of [said] such officers and personnel. The chief 12 | |
| 38 | + | investment officer shall be sworn to the faithful discharge of duties 13 | |
| 39 | + | under law and shall, under the direction of the Treasurer and subject to 14 Raised Bill No. 1235 | |
| 38 | 40 | ||
| 39 | 41 | ||
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| 43 | 42 | ||
| 44 | - | Treasurer may direct. [In addition to said officers, the Treasurer may 18 | |
| 45 | - | appoint investment officers and other personnel to assist said chief 19 | |
| 46 | - | investment officer, which officers and other personnel shall serve at 20 | |
| 47 | - | the pleasure of the Treasurer.] 21 | |
| 43 | + | LCO No. 4291 2 of 7 | |
| 44 | + | ||
| 45 | + | the provisions of sections 3-13 to 3-13d, inclusive, and 3-31b, advise the 15 | |
| 46 | + | Treasurer on investing the trust funds of the state. [Said] The chief 16 | |
| 47 | + | investment officer shall also perform such other duties as the Treasurer 17 | |
| 48 | + | may direct. [In addition to said officers, the Treasurer may appoint 18 | |
| 49 | + | investment officers and other personnel to assist said chief investment 19 | |
| 50 | + | officer, which officers and other personnel shall serve at the pleasure of 20 | |
| 51 | + | the Treasurer.] 21 | |
| 48 | 52 | (b) The Treasurer may retain professional investment counsel to 22 | |
| 49 | - | evaluate and recommend to the Treasurer changes in the portfolio of 23 | |
| 50 | - | ||
| 51 | - | Treasurer of suitable investment opportunities and shall investigate 25 | |
| 52 | - | ||
| 53 | + | evaluate and recommend to the Treasurer changes in the portfolio of the 23 | |
| 54 | + | state's trust and other funds. [Said] Such counsel shall inform the 24 | |
| 55 | + | Treasurer of suitable investment opportunities and shall investigate the 25 | |
| 56 | + | investment merit of any security or group of securities. 26 | |
| 53 | 57 | (c) The cost of operating the investment department including the 27 | |
| 54 | 58 | cost of personnel and professional investment counsel retained under 28 | |
| 55 | - | sections 3-13 to 3-13d, inclusive, and 3-31b shall be paid by the 29 | |
| 56 | - | ||
| 59 | + | sections 3-13 to 3-13d, inclusive, and 3-31b shall be paid by the Treasurer 29 | |
| 60 | + | charging the income derived from the trust funds. 30 | |
| 57 | 61 | Sec. 2. Section 3-13b of the general statutes is repealed and the 31 | |
| 58 | 62 | following is substituted in lieu thereof (Effective from passage): 32 | |
| 59 | 63 | (a) (1) There is created an Investment Advisory Council [which] that 33 | |
| 60 | 64 | shall consist of the following: 34 | |
| 61 | 65 | [(1)] (A) The Secretary of the Office of Policy and Management who 35 | |
| 62 | 66 | shall serve as an ex-officio member of said council; [(2) the State] 36 | |
| 63 | 67 | (B) The Treasurer who shall serve as an ex-officio member of said 37 | |
| 64 | 68 | council; [(3) five] 38 | |
| 65 | 69 | (C) (i) Five public members all of whom shall be experienced in 39 | |
| 66 | 70 | matters relating to investments. The Governor, the president pro 40 | |
| 67 | 71 | tempore of the Senate, the Senate minority leader, the speaker of the 41 | |
| 68 | 72 | House of Representatives and the minority leader of the House of 42 | |
| 69 | - | Representatives shall each appoint one such public member to serve 43 | |
| 70 | - | for a term of four years. [No such public member or such member's 44 | |
| 71 | - | business organization or affiliate shall directly or indirectly contract 45 | |
| 72 | - | with or provide any services for the investment of trust funds of the 46 | |
| 73 | - | state of Connecticut during the time of such member's service on said 47 Substitute Bill No. 1235 | |
| 73 | + | Representatives shall each appoint one such public member to serve for 43 | |
| 74 | + | a term of four years. [No such public member or such member's business 44 Raised Bill No. 1235 | |
| 74 | 75 | ||
| 75 | 76 | ||
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| 79 | 77 | ||
| 80 | - | council and for one year thereafter. The term of each public member in 48 | |
| 81 | - | office on June 30, 1983, shall end on July 1, 1983.] The appointing 49 | |
| 82 | - | authority shall fill all vacancies of the public members; [(4) three] 50 | |
| 83 | - | (ii) Such public members shall recuse themselves from discussions 51 | |
| 84 | - | or votes related to any direct or indirect contract with such public 52 | |
| 85 | - | member or such member's business organization or affiliate for the 53 | |
| 86 | - | provision of any services for the investment of trust funds of the state; 54 | |
| 78 | + | LCO No. 4291 3 of 7 | |
| 79 | + | ||
| 80 | + | organization or affiliate shall directly or indirectly contract with or 45 | |
| 81 | + | provide any services for the investment of trust funds of the state of 46 | |
| 82 | + | Connecticut during the time of such member's service on said council 47 | |
| 83 | + | and for one year thereafter. The term of each public member in office on 48 | |
| 84 | + | June 30, 1983, shall end on July 1, 1983.] The appointing authority shall 49 | |
| 85 | + | fill all vacancies of the public members; [(4) three] 50 | |
| 86 | + | (ii) Such public members shall recuse themselves from discussions or 51 | |
| 87 | + | votes related to any direct or indirect contract with such public member 52 | |
| 88 | + | or such member's business organization or affiliate for the provision of 53 | |
| 89 | + | any services for the investment of trust funds of the state; 54 | |
| 87 | 90 | (D) Three representatives of the teachers' unions, and two 55 | |
| 88 | 91 | representatives of the state employees' unions. On or before July 15, 56 | |
| 89 | 92 | 1983, the teachers' unions shall jointly submit to the [State] Treasurer a 57 | |
| 90 | 93 | list of three nominees, and the state employees' unions or a majority 58 | |
| 91 | - | thereof who represent a majority of state employees shall jointly 59 | |
| 92 | - | submit to the Treasurer a list of two nominees. On or before July 30, 60 | |
| 93 | - | 1983, the Governor shall appoint five members of the council from 61 | |
| 94 | - | such lists, for terms of two years. Any person appointed to fill a 62 | |
| 95 | - | vacancy or to be a new member at the expiration of a given term, 63 | |
| 96 | - | whose predecessor in that position was either a representative of one 64 | |
| 97 | - | of the teachers' unions or one of the state employees' unions, shall also 65 | |
| 98 | - | be a representative of such respective union group. Any such 66 | |
| 99 | - | appointee shall be appointed by the Governor from a list of nominees 67 | |
| 100 | - | submitted to the Treasurer by the teachers' unions or state employees' 68 | |
| 101 | - | unions or such majority thereof, as the case may be, within thirty days 69 | |
| 102 | - | of notification by the Treasurer of the existence of a vacancy or a 70 | |
| 103 | - | prospective vacancy, or the expiration or prospective expiration of a 71 | |
| 104 | - | term. 72 | |
| 105 | - | (2) All members of the council shall serve until their respective 73 | |
| 106 | - | successors are appointed and have qualified. No public member of the 74 | |
| 107 | - | council shall serve more than two consecutive terms. [which 75 | |
| 108 | - | commence on or after July 1, 1983.] 76 | |
| 109 | - | (b) The Governor shall designate one of the members to be 77 | |
| 110 | - | chairperson of the council to serve as such at the Governor's pleasure. 78 | |
| 111 | - | The Treasurer shall serve as secretary of said council. A majority of the 79 Substitute Bill No. 1235 | |
| 94 | + | thereof who represent a majority of state employees shall jointly submit 59 | |
| 95 | + | to the Treasurer a list of two nominees. On or before July 30, 1983, the 60 | |
| 96 | + | Governor shall appoint five members of the council from such lists, for 61 | |
| 97 | + | terms of two years. Any person appointed to fill a vacancy or to be a 62 | |
| 98 | + | new member at the expiration of a given term, whose predecessor in 63 | |
| 99 | + | that position was either a representative of one of the teachers' unions 64 | |
| 100 | + | or one of the state employees' unions, shall also be a representative of 65 | |
| 101 | + | such respective union group. Any such appointee shall be appointed by 66 | |
| 102 | + | the Governor from a list of nominees submitted to the Treasurer by the 67 | |
| 103 | + | teachers' unions or state employees' unions or such majority thereof, as 68 | |
| 104 | + | the case may be, within thirty days of notification by the Treasurer of 69 | |
| 105 | + | the existence of a vacancy or a prospective vacancy, or the expiration or 70 | |
| 106 | + | prospective expiration of a term. 71 | |
| 107 | + | (2) All members of the council shall serve until their respective 72 | |
| 108 | + | successors are appointed and have qualified. No public member of the 73 | |
| 109 | + | council shall serve more than two consecutive terms. [which commence 74 | |
| 110 | + | on or after July 1, 1983.] 75 | |
| 111 | + | (b) The Governor shall designate one of the members to be 76 Raised Bill No. 1235 | |
| 112 | 112 | ||
| 113 | 113 | ||
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| 117 | 114 | ||
| 118 | - | members of the council then in office shall constitute a quorum for the 80 | |
| 119 | - | transaction of any business, and action shall be by the vote of a 81 | |
| 120 | - | majority of the members present at a meeting. Votes by members on 82 | |
| 121 | - | investment policies shall be recorded in the minutes of each meeting. 83 | |
| 122 | - | Members of said council shall not be compensated for their services 84 | |
| 123 | - | but shall be reimbursed for all necessary expenses incurred in the 85 | |
| 124 | - | performance of their duties as members of said council. The council 86 | |
| 125 | - | shall meet at least once during each calendar quarter and at such other 87 | |
| 126 | - | times as the chairperson deems necessary or upon the request of a 88 | |
| 127 | - | majority of the members in office. Special meetings shall be held at the 89 | |
| 128 | - | request of such majority after notice in accordance with the provisions 90 | |
| 129 | - | of section 1-225. Any member who fails to attend three consecutive 91 | |
| 130 | - | meetings or who fails to attend fifty per cent of all meetings held 92 | |
| 131 | - | during any calendar year shall be deemed to have resigned from office. 93 | |
| 132 | - | (c) (1) The Treasurer shall recommend to the Investment Advisory 94 | |
| 133 | - | Council an investment policy statement [which] that shall set forth the 95 | |
| 134 | - | standards governing investment of trust funds by the Treasurer. Such 96 | |
| 135 | - | statement shall include, with respect to each trust fund, without 97 | |
| 136 | - | limitation, (A) investment objectives; (B) asset allocation policy and 98 | |
| 137 | - | risk tolerance; (C) asset class definitions, including specific types of 99 | |
| 138 | - | permissible investments within each asset class and any specific 100 | |
| 139 | - | limitations or other considerations governing the investment of any 101 | |
| 140 | - | funds; (D) investment manager guidelines; (E) investment 102 | |
| 141 | - | performance evaluation guidelines; (F) guidelines for the selection and 103 | |
| 142 | - | termination of providers of investment-related services who shall 104 | |
| 143 | - | include, but not be limited to, investment advisors, external money 105 | |
| 144 | - | managers, investment consultants, custodians, broker-dealers, legal 106 | |
| 145 | - | counsel, and similar investment industry professionals; and (G) proxy 107 | |
| 146 | - | voting guidelines. A draft of the statement shall be submitted to the 108 | |
| 147 | - | Investment Advisory Council at a meeting of said council and shall be 109 | |
| 148 | - | made available to the public. Notice of such availability shall be 110 | |
| 149 | - | published in at least one newspaper having a general circulation in 111 | |
| 150 | - | each municipality in the state which publication shall be not less than 112 | |
| 151 | - | two weeks prior to such meeting. Said council shall review the draft 113 Substitute Bill No. 1235 | |
| 115 | + | LCO No. 4291 4 of 7 | |
| 116 | + | ||
| 117 | + | chairperson of the council to serve as such at the Governor's pleasure. 77 | |
| 118 | + | The Treasurer shall serve as secretary of said council. A majority of the 78 | |
| 119 | + | members of the council then in office shall constitute a quorum for the 79 | |
| 120 | + | transaction of any business, and action shall be by the vote of a majority 80 | |
| 121 | + | of the members present at a meeting. Votes by members on investment 81 | |
| 122 | + | policies shall be recorded in the minutes of each meeting. Members of 82 | |
| 123 | + | said council shall not be compensated for their services but shall be 83 | |
| 124 | + | reimbursed for all necessary expenses incurred in the performance of 84 | |
| 125 | + | their duties as members of said council. The council shall meet at least 85 | |
| 126 | + | once during each calendar quarter and at such other times as the 86 | |
| 127 | + | chairperson deems necessary or upon the request of a majority of the 87 | |
| 128 | + | members in office. Special meetings shall be held at the request of such 88 | |
| 129 | + | majority after notice in accordance with the provisions of section 1-225. 89 | |
| 130 | + | Any member who fails to attend three consecutive meetings or who fails 90 | |
| 131 | + | to attend fifty per cent of all meetings held during any calendar year 91 | |
| 132 | + | shall be deemed to have resigned from office. 92 | |
| 133 | + | (c) (1) The Treasurer shall recommend to the Investment Advisory 93 | |
| 134 | + | Council an investment policy statement [which] that shall set forth the 94 | |
| 135 | + | standards governing investment of trust funds by the Treasurer. Such 95 | |
| 136 | + | statement shall include, with respect to each trust fund, without 96 | |
| 137 | + | limitation, (A) investment objectives; (B) asset allocation policy and risk 97 | |
| 138 | + | tolerance; (C) asset class definitions, including specific types of 98 | |
| 139 | + | permissible investments within each asset class and any specific 99 | |
| 140 | + | limitations or other considerations governing the investment of any 100 | |
| 141 | + | funds; (D) investment manager guidelines; (E) investment performance 101 | |
| 142 | + | evaluation guidelines; (F) guidelines for the selection and termination 102 | |
| 143 | + | of providers of investment-related services who shall include, but not 103 | |
| 144 | + | be limited to, investment advisors, external money managers, 104 | |
| 145 | + | investment consultants, custodians, broker-dealers, legal counsel, and 105 | |
| 146 | + | similar investment industry professionals; and (G) proxy voting 106 | |
| 147 | + | guidelines. A draft of the statement shall be submitted to the Investment 107 | |
| 148 | + | Advisory Council at a meeting of said council and shall be made 108 | |
| 149 | + | available to the public. Notice of such availability shall be published in 109 | |
| 150 | + | at least one newspaper having a general circulation in each municipality 110 Raised Bill No. 1235 | |
| 152 | 151 | ||
| 153 | 152 | ||
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| 157 | 153 | ||
| 158 | - | statement and shall publish any recommendations it may have for 114 | |
| 159 | - | changes to such statement in the manner provided for publication of 115 | |
| 160 | - | the statement by the Treasurer. The Treasurer shall thereafter adopt 116 | |
| 161 | - | the statement, including any such changes the Treasurer deems 117 | |
| 162 | - | appropriate, with the approval of a majority of the members appointed 118 | |
| 163 | - | to said council. If a majority of the members appointed to said council 119 | |
| 164 | - | fail to approve such statement, [said] such majority shall provide the 120 | |
| 165 | - | reasons for its failure to approve to the Treasurer who may submit an 121 | |
| 166 | - | amended proposed statement at a subsequent regular or special 122 | |
| 167 | - | meeting of said council. Such revised proposed statement shall be 123 | |
| 168 | - | made available to the public in accordance with the provisions of the 124 | |
| 169 | - | Freedom of Information Act, as defined in section 1-200. Any revisions 125 | |
| 170 | - | or additions to the investment policy statement shall be made in 126 | |
| 171 | - | accordance with the procedures set forth in this subdivision for the 127 | |
| 172 | - | adoption of the statement. The Treasurer shall annually review the 128 | |
| 173 | - | investment policy statement and shall consult with the Investment 129 | |
| 174 | - | Advisory Council regarding possible revisions to such statement. 130 | |
| 175 | - | (2) All trust fund investments by the [State] Treasurer shall be 131 | |
| 176 | - | reviewed by [said] the Investment Advisory Council. The Treasurer 132 | |
| 177 | - | shall provide to the council all information regarding such investments 133 | |
| 178 | - | which the Treasurer deems relevant to the council's review and such 134 | |
| 179 | - | other information as may be requested by the council. The Treasurer 135 | |
| 180 | - | shall provide a report at each regularly scheduled meeting of the 136 | |
| 181 | - | Investment Advisory Council as to the status of the trust funds and 137 | |
| 182 | - | any significant changes [which] that may have occurred or [which] 138 | |
| 183 | - | that may be pending with regard to the funds. The council shall 139 | |
| 184 | - | promptly notify the Auditors of Public Accounts and the Comptroller 140 | |
| 185 | - | of any unauthorized, illegal, irregular or unsafe handling or 141 | |
| 186 | - | expenditure of trust funds or breakdowns in the safekeeping of trust 142 | |
| 187 | - | funds or contemplated action to do the same within [their] said 143 | |
| 188 | - | council's knowledge. The Governor may direct the Treasurer to change 144 | |
| 189 | - | any investments made by the Treasurer when in the judgment of said 145 | |
| 190 | - | council such action is for the best interest of the state. Said council 146 | |
| 191 | - | shall, at the close of the fiscal year, make a complete examination of the 147 Substitute Bill No. 1235 | |
| 154 | + | LCO No. 4291 5 of 7 | |
| 155 | + | ||
| 156 | + | in the state which publication shall be not less than two weeks prior to 111 | |
| 157 | + | such meeting. Said council shall review the draft statement and shall 112 | |
| 158 | + | publish any recommendations it may have for changes to such 113 | |
| 159 | + | statement in the manner provided for publication of the statement by 114 | |
| 160 | + | the Treasurer. The Treasurer shall thereafter adopt the statement, 115 | |
| 161 | + | including any such changes the Treasurer deems appropriate, with the 116 | |
| 162 | + | approval of a majority of the members appointed to said council. If a 117 | |
| 163 | + | majority of the members appointed to said council fail to approve such 118 | |
| 164 | + | statement, [said] such majority shall provide the reasons for its failure 119 | |
| 165 | + | to approve to the Treasurer who may submit an amended proposed 120 | |
| 166 | + | statement at a subsequent regular or special meeting of said council. 121 | |
| 167 | + | Such revised proposed statement shall be made available to the public 122 | |
| 168 | + | in accordance with the provisions of the Freedom of Information Act, as 123 | |
| 169 | + | defined in section 1-200. Any revisions or additions to the investment 124 | |
| 170 | + | policy statement shall be made in accordance with the procedures set 125 | |
| 171 | + | forth in this subdivision for the adoption of the statement. The Treasurer 126 | |
| 172 | + | shall annually review the investment policy statement and shall consult 127 | |
| 173 | + | with the Investment Advisory Council regarding possible revisions to 128 | |
| 174 | + | such statement. 129 | |
| 175 | + | (2) All trust fund investments by the [State] Treasurer shall be 130 | |
| 176 | + | reviewed by [said] the Investment Advisory Council. The Treasurer 131 | |
| 177 | + | shall provide to the council all information regarding such investments 132 | |
| 178 | + | which the Treasurer deems relevant to the council's review and such 133 | |
| 179 | + | other information as may be requested by the council. The Treasurer 134 | |
| 180 | + | shall provide a report at each regularly scheduled meeting of the 135 | |
| 181 | + | Investment Advisory Council as to the status of the trust funds and any 136 | |
| 182 | + | significant changes [which] that may have occurred or [which] that may 137 | |
| 183 | + | be pending with regard to the funds. The council shall promptly notify 138 | |
| 184 | + | the Auditors of Public Accounts and the Comptroller of any 139 | |
| 185 | + | unauthorized, illegal, irregular or unsafe handling or expenditure of 140 | |
| 186 | + | trust funds or breakdowns in the safekeeping of trust funds or 141 | |
| 187 | + | contemplated action to do the same within [their] said council's 142 | |
| 188 | + | knowledge. The Governor may direct the Treasurer to change any 143 | |
| 189 | + | investments made by the Treasurer when in the judgment of said 144 Raised Bill No. 1235 | |
| 192 | 190 | ||
| 193 | 191 | ||
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| 197 | 192 | ||
| 198 | - | security investments of the state and determine as of June thirtieth, the 148 | |
| 199 | - | value of such investments in the custody of the Treasurer and report 149 | |
| 200 | - | thereon to the Governor, the General Assembly and beneficiaries of 150 | |
| 201 | - | trust funds administered, held or invested by the Treasurer. With the 151 | |
| 202 | - | approval of the Treasurer and the council, [said] such report may be 152 | |
| 203 | - | included in the Treasurer's annual report. 153 | |
| 204 | - | (d) The Investment Advisory Council shall be within the office of 154 | |
| 205 | - | the [State] Treasurer for administrative purposes only. 155 | |
| 206 | - | (e) For the purposes of this section, "teachers' union" means a 156 | |
| 207 | - | representative organization for certified professional employees, as 157 | |
| 208 | - | defined in section 10-153b, and "state employees' union" means an 158 | |
| 209 | - | organization certified to represent state employees, pursuant to section 159 | |
| 210 | - | 5-275. 160 | |
| 211 | - | Sec. 3. Section 3-13i of the general statutes is repealed and the 161 | |
| 212 | - | following is substituted in lieu thereof (Effective from passage): 162 | |
| 213 | - | (a) On and after January 1, 2001, or on and after the first adoption of 163 | |
| 214 | - | an investment policy statement under section 3-13b, as amended by 164 | |
| 215 | - | this act, whichever is later, any contract for services related to the 165 | |
| 216 | - | investment of trust funds, as defined in section 3-13c, as amended by 166 | |
| 217 | - | this act, shall be subject to the investment policy statement adopted 167 | |
| 218 | - | under section 3-13b, as amended by this act. [No contract for services 168 | |
| 219 | - | related to the investment of such funds shall be awarded to a provider 169 | |
| 220 | - | of such services until the Treasurer's recommendation of a provider is 170 | |
| 221 | - | reviewed by the Investment Advisory Council. The] If any contract for 171 | |
| 222 | - | services related to the investment of trust funds deviates from such 172 | |
| 223 | - | investment policy statement, the Treasurer shall provide notice of 173 | |
| 224 | - | [such] the Treasurer's recommendation concerning the selection of 174 | |
| 225 | - | such provider at a meeting of the council. Not later than forty-five 175 | |
| 226 | - | days after such meeting, the council may file a written review of the 176 | |
| 227 | - | Treasurer's recommendation [concerning the selection of such 177 | |
| 228 | - | provider] with the Office of the Treasurer where it shall be available 178 | |
| 229 | - | for public inspection. The Treasurer may proceed to award the contract 179 Substitute Bill No. 1235 | |
| 193 | + | LCO No. 4291 6 of 7 | |
| 194 | + | ||
| 195 | + | council such action is for the best interest of the state. Said council shall, 145 | |
| 196 | + | at the close of the fiscal year, make a complete examination of the 146 | |
| 197 | + | security investments of the state and determine as of June thirtieth, the 147 | |
| 198 | + | value of such investments in the custody of the Treasurer and report 148 | |
| 199 | + | thereon to the Governor, the General Assembly and beneficiaries of trust 149 | |
| 200 | + | funds administered, held or invested by the Treasurer. With the 150 | |
| 201 | + | approval of the Treasurer and the council, [said] such report may be 151 | |
| 202 | + | included in the Treasurer's annual report. 152 | |
| 203 | + | (d) The Investment Advisory Council shall be within the office of the 153 | |
| 204 | + | [State] Treasurer for administrative purposes only. 154 | |
| 205 | + | (e) For the purposes of this section, "teachers' union" means a 155 | |
| 206 | + | representative organization for certified professional employees, as 156 | |
| 207 | + | defined in section 10-153b, and "state employees' union" means an 157 | |
| 208 | + | organization certified to represent state employees, pursuant to section 158 | |
| 209 | + | 5-275. 159 | |
| 210 | + | Sec. 3. Section 3-13i of the general statutes is repealed and the 160 | |
| 211 | + | following is substituted in lieu thereof (Effective from passage): 161 | |
| 212 | + | (a) On and after January 1, 2001, or on and after the first adoption of 162 | |
| 213 | + | an investment policy statement under section 3-13b, as amended by this 163 | |
| 214 | + | act, whichever is later, any contract for services related to the investment 164 | |
| 215 | + | of trust funds, as defined in section 3-13c, shall be subject to the 165 | |
| 216 | + | investment policy statement adopted under section 3-13b, as amended 166 | |
| 217 | + | by this act. [No contract for services related to the investment of such 167 | |
| 218 | + | funds shall be awarded to a provider of such services until the 168 | |
| 219 | + | Treasurer's recommendation of a provider is reviewed by the 169 | |
| 220 | + | Investment Advisory Council. The] If any contract for services related 170 | |
| 221 | + | to the investment of trust funds deviates from such investment policy 171 | |
| 222 | + | statement, the Treasurer shall provide notice of [such] the Treasurer's 172 | |
| 223 | + | recommendation concerning the selection of such provider at a meeting 173 | |
| 224 | + | of the council. Not later than forty-five days after such meeting, the 174 | |
| 225 | + | council may file a written review of the Treasurer's recommendation 175 | |
| 226 | + | [concerning the selection of such provider] with the Office of the 176 Raised Bill No. 1235 | |
| 230 | 227 | ||
| 231 | 228 | ||
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| 235 | 229 | ||
| 236 | - | after such forty-five-day period. 180 | |
| 237 | - | (b) Commencing with the calendar quarter ending September 30, 181 | |
| 238 | - | 2023, and each calendar quarter thereafter, the Treasurer shall submit a 182 | |
| 239 | - | report to the Investment Advisory Council regarding contracts 183 | |
| 240 | - | awarded during each such calendar quarter for services related to the 184 | |
| 241 | - | investment of trust funds. The initial report shall include all such 185 | |
| 242 | - | contracts awarded and in effect on July 1, 2023, and each report shall 186 | |
| 243 | - | include the name of each provider awarded any such contract and the 187 | |
| 244 | - | value of such contract. 188 | |
| 245 | - | Sec. 4. Section 3-36b of the general statutes is repealed and the 189 | |
| 246 | - | following is substituted in lieu thereof (Effective from passage): 190 | |
| 247 | - | (a) Commencing July 1, 2023, there is established the Connecticut 191 | |
| 248 | - | Baby Bond Trust. The trust shall constitute an instrumentality of the 192 | |
| 249 | - | state and shall perform essential governmental functions as provided 193 | |
| 250 | - | in sections 3-36a to 3-36h, inclusive, as amended by this act. The trust 194 | |
| 251 | - | shall receive and hold all payments and deposits or contributions 195 | |
| 252 | - | intended for the trust, as well as gifts, bequests, endowments or 196 | |
| 253 | - | federal, state or local grants and any other funds from any public or 197 | |
| 254 | - | private source and all earnings until disbursed in accordance with 198 | |
| 255 | - | [section] sections 3-36c, 3-36d and 3-36g, as amended by this act. 199 | |
| 256 | - | (b) The amounts on deposit in the trust shall not constitute property 200 | |
| 257 | - | of the state and the trust shall not be construed to be a department, 201 | |
| 258 | - | institution or agency of the state. Amounts on deposit in the trust shall 202 | |
| 259 | - | not be commingled with state funds and the state shall have no claim 203 | |
| 260 | - | to or against, or interest in, such funds. Any contract entered into by or 204 | |
| 261 | - | any obligation of the trust shall not constitute a debt or obligation of 205 | |
| 262 | - | the state and the state shall have no obligation to any designated 206 | |
| 263 | - | beneficiary or any other person on account of the trust and all amounts 207 | |
| 264 | - | obligated to be paid from the trust shall be limited to amounts 208 | |
| 265 | - | available for such obligation on deposit in the trust. The amounts on 209 | |
| 266 | - | deposit in the trust may only be disbursed in accordance with the 210 | |
| 267 | - | provisions of [section] sections 3-36c, 3-36d and 3-36g, as amended by 211 Substitute Bill No. 1235 | |
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| 273 | - | ||
| 274 | - | this act. The trust shall continue in existence as long as it holds any 212 | |
| 275 | - | deposits or has any obligations and until its existence is terminated by 213 | |
| 276 | - | law and upon termination any unclaimed assets shall return to the 214 | |
| 277 | - | state. Property of the trust shall not be governed by section 3-61a. 215 | |
| 278 | - | (c) The Treasurer shall be responsible for the receipt, maintenance, 216 | |
| 279 | - | administration, investing and disbursements of amounts from the 217 | |
| 280 | - | trust. The trust shall not receive deposits in any form other than cash. 218 | |
| 281 | - | Sec. 5. Section 3-36e of the general statutes is repealed and the 219 | |
| 282 | - | following is substituted in lieu thereof (Effective from passage): 220 | |
| 283 | - | [The property of the trust and the earnings on] Disbursements from 221 | |
| 284 | - | the trust shall be exempt from all taxation by the state and all political 222 | |
| 285 | - | subdivisions of the state. 223 | |
| 286 | - | Sec. 6. Section 3-36f of the general statutes is repealed and the 224 | |
| 287 | - | following is substituted in lieu thereof (Effective from passage): 225 | |
| 288 | - | (a) Notwithstanding any provision of the general statutes, to the 226 | |
| 289 | - | extent permitted by federal law, no [moneys invested in] 227 | |
| 290 | - | disbursements from the Connecticut Baby Bond Trust shall be 228 | |
| 291 | - | considered to be an asset or income for purposes of determining an 229 | |
| 292 | - | individual's eligibility for assistance under any program administered 230 | |
| 293 | - | by the [Department of Social Services] state. 231 | |
| 294 | - | (b) Notwithstanding any provision of the general statutes, no 232 | |
| 295 | - | [moneys invested in] disbursements from the trust shall be considered 233 | |
| 296 | - | to be an asset for purposes of determining an individual's eligibility for 234 | |
| 297 | - | need-based, institutional aid grants offered to an individual at the 235 | |
| 298 | - | public eligible educational institutions in the state. 236 | |
| 299 | - | Sec. 7. Section 3-36g of the general statutes is repealed and the 237 | |
| 300 | - | following is substituted in lieu thereof (Effective from passage): 238 | |
| 301 | - | [(a) The Treasurer shall establish in the Connecticut Baby Bond 239 | |
| 302 | - | Trust an accounting for each designated beneficiary. Each such 240 Substitute Bill No. 1235 | |
| 303 | - | ||
| 304 | - | ||
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| 308 | - | ||
| 309 | - | accounting shall include the amount transferred to the trust pursuant 241 | |
| 310 | - | to section 3-36h, plus the designated beneficiary's pro rata share of 242 | |
| 311 | - | total net earnings from investments of sums held in the trust.] 243 | |
| 312 | - | [(b)] (a) Upon a designated beneficiary's eighteenth birthday and 244 | |
| 313 | - | completion of a financial literacy requirement as prescribed by the 245 | |
| 314 | - | Treasurer, such beneficiary shall become eligible to [receive the total 246 | |
| 315 | - | sum of the accounting under subsection (a) of this section to be used 247 | |
| 316 | - | for an eligible expenditure. The Treasurer may adopt regulations, in 248 | |
| 317 | - | accordance with the provisions of chapter 54, to carry out the purposes 249 | |
| 318 | - | of this section] request an amount, to be used for payment of an 250 | |
| 319 | - | eligible expenditure, of up to the total sum of the amount transferred 251 | |
| 320 | - | on behalf of the designated beneficiary pursuant to section 3-36h, as 252 | |
| 321 | - | amended by this act, and adjusted, if applicable, in accordance with 253 | |
| 322 | - | said section, plus the designated beneficiary's pro rata share of the 254 | |
| 323 | - | total net earnings from investments of sums held in the trust at the 255 | |
| 324 | - | time of disbursement. 256 | |
| 325 | - | [(c)] (b) A designated beneficiary may submit a claim [for such 257 | |
| 326 | - | accounting until his or her thirtieth birthday,] pursuant to subsection 258 | |
| 327 | - | (a) of this section, in such form and manner as prescribed by the 259 | |
| 328 | - | Treasurer, until such designated beneficiary's thirtieth birthday, 260 | |
| 329 | - | provided such designated beneficiary is a resident of the state at the 261 | |
| 330 | - | time of such claim. If a designated beneficiary (1) is deceased before 262 | |
| 331 | - | submitting a valid claim, or (2) fails to submit a valid claim, as 263 | |
| 332 | - | determined by the Treasurer, before [his or her thirtieth birthday, such 264 | |
| 333 | - | accounting shall be credited back to the assets of the trust] such 265 | |
| 334 | - | designated beneficiary's thirtieth birthday, the sum such designated 266 | |
| 335 | - | beneficiary was eligible to claim shall be retained by the trust to credit 267 | |
| 336 | - | to designated beneficiaries born in subsequent years. 268 | |
| 337 | - | [(d)] (c) Subject to obtaining adequate consent authorizing the 269 | |
| 338 | - | disclosure of confidential information related to designated 270 | |
| 339 | - | beneficiaries in accordance with all applicable state or federal laws, the 271 | |
| 340 | - | Treasurer and the Department of Social Services shall enter into a 272 | |
| 341 | - | memorandum of understanding to establish information sharing 273 Substitute Bill No. 1235 | |
| 342 | - | ||
| 343 | - | ||
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| 347 | - | ||
| 348 | - | practices in order to carry out the purposes of [public act 21-111] 274 | |
| 349 | - | sections 3-36b to 3-36h, inclusive, as amended by this act. 275 | |
| 350 | - | Sec. 8. Section 3-36h of the general statutes is repealed and the 276 | |
| 351 | - | following is substituted in lieu thereof (Effective from passage): 277 | |
| 352 | - | [Upon] After the birth of a designated beneficiary, the Treasurer 278 | |
| 353 | - | may transfer up to three thousand two hundred dollars [from the bond 279 | |
| 354 | - | proceeds issued pursuant to section 3-36i] to the trust. [to be credited 280 | |
| 355 | - | toward the accounting of such designated beneficiary as described in 281 | |
| 356 | - | section 3-36g.] For any year in which the funds [made available] 282 | |
| 357 | - | authorized pursuant to section 3-36i, as amended by this act, [is] are 283 | |
| 358 | - | insufficient to provide such amount per designated beneficiary, the 284 | |
| 359 | - | amount so transferred shall be reduced pro rata and the Treasurer 285 | |
| 360 | - | shall adjust the shares of each designated beneficiary accordingly. For 286 | |
| 361 | - | any year in which such funds are in excess of the amount sufficient to 287 | |
| 362 | - | provide such amount per designated beneficiary, the excess shall be 288 | |
| 363 | - | retained by the trust to credit to designated beneficiaries born in 289 | |
| 364 | - | subsequent years. 290 | |
| 365 | - | Sec. 9. Section 3-36i of the general statutes is repealed and the 291 | |
| 366 | - | following is substituted in lieu thereof (Effective from passage): 292 | |
| 367 | - | (a) The State Bond Commission may authorize the issuance of 293 | |
| 368 | - | bonds of the state, in accordance with the provisions of section 3-20, in 294 | |
| 369 | - | principal amounts not exceeding in the aggregate six hundred million 295 | |
| 370 | - | dollars. The proceeds of the sale of bonds described in this section shall 296 | |
| 371 | - | be used for the purpose of funding the transfers provided for under 297 | |
| 372 | - | section 3-36h, as amended by this act. The amount authorized for the 298 | |
| 373 | - | issuance and sale of such bonds in each of the following fiscal years 299 | |
| 374 | - | shall not exceed the following corresponding amount for each such 300 | |
| 375 | - | fiscal year, except that, to the extent the State Bond Commission does 301 | |
| 376 | - | not provide for the use of all or a portion of such amount in any such 302 | |
| 377 | - | fiscal year, such amount not provided for shall be carried forward and 303 | |
| 378 | - | added to the authorized amount for the next two succeeding fiscal 304 | |
| 379 | - | years, and provided further, the costs of issuance, including the 305 Substitute Bill No. 1235 | |
| 380 | - | ||
| 381 | - | ||
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| 385 | - | ||
| 386 | - | expenses of implementing the provisions of sections 3-36b to 3-36h, 306 | |
| 387 | - | inclusive, as amended by this act, and capitalized interest, if any, may 307 | |
| 388 | - | be added to the capped amount in each fiscal year, and each of the 308 | |
| 389 | - | authorized amounts shall be effective on July first of the fiscal year 309 | |
| 390 | - | indicated as follows: 310 | |
| 391 | - | T1 Fiscal Year Ending Amount | |
| 392 | - | T2 June Thirtieth | |
| 393 | - | T3 2025 $50,000,000 | |
| 394 | - | T4 2026 $50,000,000 | |
| 395 | - | T5 2027 $50,000,000 | |
| 396 | - | T6 2028 $50,000,000 | |
| 397 | - | T7 2029 $50,000,000 | |
| 398 | - | T8 2030 $50,000,000 | |
| 399 | - | T9 2031 $50,000,000 | |
| 400 | - | T10 2032 $50,000,000 | |
| 401 | - | T11 2033 $50,000,000 | |
| 402 | - | T12 2034 $50,000,000 | |
| 403 | - | T13 2035 $50,000,000 | |
| 404 | - | T14 2036 $50,000,000 | |
| 405 | - | ||
| 406 | - | (b) [On or before the first day of September in each year, 311 | |
| 407 | - | commencing September 1, 2024] Commencing with the fiscal year 312 | |
| 408 | - | ending June 30, 2025, the Department of Social Services shall, not later 313 | |
| 409 | - | than September first of each fiscal year, inform the Treasurer of the 314 | |
| 410 | - | number of designated beneficiaries born in the prior fiscal year. 315 | |
| 411 | - | Promptly thereafter, the Treasurer shall submit to the Governor and 316 | |
| 412 | - | the Secretary of the Office of Policy and Management, by certified 317 | |
| 413 | - | mail, a report of and a calculation of the total amount required to 318 | |
| 414 | - | [deposit] be transferred to the trust [for crediting] to credit three 319 | |
| 415 | - | thousand two hundred dollars [for the account of] to each such 320 | |
| 416 | - | designated beneficiary born in the prior fiscal year. [as described in 321 | |
| 417 | - | section 3-36g.] 322 Substitute Bill No. 1235 | |
| 418 | - | ||
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| 424 | - | (c) All provisions of section 3-20, or the exercise of any right or 323 | |
| 425 | - | power granted thereby which are not inconsistent with the provisions 324 | |
| 426 | - | of this section, are hereby adopted and shall apply to all bonds 325 | |
| 427 | - | authorized by the State Bond Commission pursuant to this section, and 326 | |
| 428 | - | temporary notes in anticipation of the money to be derived from the 327 | |
| 429 | - | sale of any such bonds so authorized may be issued in accordance with 328 | |
| 430 | - | section 3-20 and from time to time renewed. Such bonds shall mature 329 | |
| 431 | - | at such time or times not exceeding twenty years from their respective 330 | |
| 432 | - | dates as may be provided in or pursuant to the resolution or 331 | |
| 433 | - | resolutions of the State Bond Commission authorizing such bonds. All 332 | |
| 434 | - | such bonds, notes or other obligations shall be general obligations of 333 | |
| 435 | - | the state and the full faith and credit of the state of Connecticut are 334 | |
| 436 | - | pledged for the payment of the principal of and interest on such bonds, 335 | |
| 437 | - | notes or other obligations as the same shall become due, and 336 | |
| 438 | - | accordingly and as part of the contract of the state with the holders of 337 | |
| 439 | - | such bonds, notes or other obligations, appropriation of all amounts 338 | |
| 440 | - | necessary for punctual payment of such principal and interest is 339 | |
| 441 | - | hereby made, and the Treasurer shall pay such principal and interest 340 | |
| 442 | - | as the same become due. [All such bonds, notes or other obligations 341 | |
| 443 | - | shall be sold at not less than par and accrued interest in such manner 342 | |
| 444 | - | and on such terms as the Treasurer may determine is in the best 343 | |
| 445 | - | interest of the state, and shall be signed in the name of the state and on 344 | |
| 446 | - | its behalf by the Treasurer. All such bonds, notes or other obligations 345 | |
| 447 | - | shall mature at such time or times not later than twenty years after 346 | |
| 448 | - | their respective issuance, in such principal amounts and at such times, 347 | |
| 449 | - | bear such date or dates, be payable at such place or places, bear 348 | |
| 450 | - | interest at such rate or different or varying rates, payable at such time 349 | |
| 451 | - | or times, be in such denominations, be in such form with or without 350 | |
| 452 | - | interest coupons attached, carry such registration and transfer 351 | |
| 453 | - | privileges, be payable in such medium of payment, be subject to such 352 | |
| 454 | - | terms of redemption with or without premium and have such 353 | |
| 455 | - | additional security, covenant or contract provisions, as appropriate or 354 | |
| 456 | - | necessary to improve their marketability, as the Treasurer shall 355 | |
| 457 | - | determine prior to their issuance. In connection with such bonds, notes 356 | |
| 458 | - | or other obligations, the Treasurer may enter into such paying agent 357 Substitute Bill No. 1235 | |
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| 464 | - | ||
| 465 | - | agreements, indentures of trust, escrow agreements or other 358 | |
| 466 | - | agreements, with such parties and with such provisions as the 359 | |
| 467 | - | Treasurer determines are appropriate or necessary. 360 | |
| 468 | - | (d) The Treasurer may obtain from a commercial bank or insurance 361 | |
| 469 | - | company authorized to do business within or without this state a letter 362 | |
| 470 | - | of credit, line of credit or other liquidity facility or credit facility for the 363 | |
| 471 | - | purpose of providing funds for the payments in respect of bonds, 364 | |
| 472 | - | notes or other obligations required by the holder thereof to be 365 | |
| 473 | - | redeemed or repurchased prior to maturity or for providing additional 366 | |
| 474 | - | security for such bonds, notes or other obligations. In connection with 367 | |
| 475 | - | any such liquidity facility or credit facility, the Treasurer may enter 368 | |
| 476 | - | into any reimbursement agreements, remarketing agreements, standby 369 | |
| 477 | - | purchase agreements or any other necessary or appropriate 370 | |
| 478 | - | agreements on behalf of the state in connection with securing, insuring 371 | |
| 479 | - | or remarketing such bonds, notes or other obligations, on such terms 372 | |
| 480 | - | and conditions as the Treasurer determines to be in the best interest of 373 | |
| 481 | - | the state. The Treasurer is authorized to pledge the full faith and credit 374 | |
| 482 | - | of the state to the state's payment obligations under any such 375 | |
| 483 | - | agreement and the Treasurer is authorized to include such pledge in 376 | |
| 484 | - | any such agreement as part of the contract with the provider of such 377 | |
| 485 | - | liquidity facility or credit facility. The Treasurer shall apply any 378 | |
| 486 | - | appropriation for the payment of such bonds, notes or other 379 | |
| 487 | - | obligations to such reimbursement repayment if such liquidity facility 380 | |
| 488 | - | or credit facility is drawn upon. As part of the contract of the state with 381 | |
| 489 | - | the other parties to any agreement entered into pursuant to this 382 | |
| 490 | - | subsection for which the full faith and credit of the state is pledged to 383 | |
| 491 | - | the state's payment obligations under such agreement, appropriation 384 | |
| 492 | - | of all amounts necessary for the punctual payment of the obligations of 385 | |
| 493 | - | the state under any such agreement is hereby made and the Treasurer 386 | |
| 494 | - | shall pay such amounts as the same become due. 387 | |
| 495 | - | (e) In connection with or incidental to the carrying of such bonds, 388 | |
| 496 | - | notes or other obligations, or in connection with or incidental to the 389 | |
| 497 | - | sale and issuance of such bonds, notes or other obligations, the 390 Substitute Bill No. 1235 | |
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| 503 | - | ||
| 504 | - | Treasurer may enter into such contracts as the Treasurer may 391 | |
| 505 | - | determine to be necessary or appropriate to place the obligation of the 392 | |
| 506 | - | state, as represented by the bonds, notes or other obligations, in whole 393 | |
| 507 | - | or in part, on such interest rate or cash flow basis as the Treasurer may 394 | |
| 508 | - | determine, including without limitation, interest rate swap 395 | |
| 509 | - | agreements, insurance agreements, forward payment conversion 396 | |
| 510 | - | agreements, futures contracts, contracts providing for payments based 397 | |
| 511 | - | on levels of, or changes in, interest rates or market indices, contracts to 398 | |
| 512 | - | manage interest rate risk, including without limitation, interest rate 399 | |
| 513 | - | floors or caps, options, puts, calls and similar arrangements. Such 400 | |
| 514 | - | contracts shall contain such payment, security, default, remedy and 401 | |
| 515 | - | other terms and conditions as the Treasurer may deem appropriate 402 | |
| 516 | - | and shall be entered into with such party or parties as the Treasurer 403 | |
| 517 | - | may select, after giving due consideration, where applicable, for the 404 | |
| 518 | - | creditworthiness of the counter party or counter parties, including any 405 | |
| 519 | - | rating by a nationally recognized rating agency, the impact on any 406 | |
| 520 | - | rating on outstanding bonds, notes or other obligations or any other 407 | |
| 521 | - | criteria as the Treasurer may deem appropriate, provided the 408 | |
| 522 | - | unsecured long-term obligations of the counter party or counter 409 | |
| 523 | - | parties are rated the same or higher than the underlying rating of the 410 | |
| 524 | - | state on the applicable bonds, notes or other obligations by at least one 411 | |
| 525 | - | nationally recognized rating agency. The Treasurer is authorized to 412 | |
| 526 | - | pledge the full faith and credit of the state to the state's payment 413 | |
| 527 | - | obligations under any contract entered into pursuant to this 414 | |
| 528 | - | subsection. As part of the contract of the state with the other parties to 415 | |
| 529 | - | any agreement entered into pursuant to this subsection for which the 416 | |
| 530 | - | full faith and credit of the state is pledged to the state's payment 417 | |
| 531 | - | obligations under such agreement, appropriation of all amounts 418 | |
| 532 | - | necessary for the punctual payment of the obligations of the state 419 | |
| 533 | - | under any such agreement is hereby made and the Treasurer shall pay 420 | |
| 534 | - | such amounts as the same become due. 421 | |
| 535 | - | (f) The Superior Court shall have jurisdiction to enter judgment 422 | |
| 536 | - | against the state founded (1) upon any express contract between the 423 | |
| 537 | - | state and the purchasers and subsequent owners and transferees of any 424 Substitute Bill No. 1235 | |
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| 543 | - | ||
| 544 | - | bonds, notes or other obligations issued or contracted to be issued by 425 | |
| 545 | - | the state pursuant to this section, and (2) upon any agreement entered 426 | |
| 546 | - | into pursuant to subsection (c) or (d) of this section. Any action 427 | |
| 547 | - | brought under this subsection shall be brought in the superior court 428 | |
| 548 | - | for the judicial district of Hartford. The jurisdiction conferred upon the 429 | |
| 549 | - | Superior Court by this subsection includes any set-off, claim or 430 | |
| 550 | - | demand on the part of the state against any plaintiff commencing an 431 | |
| 551 | - | action under this subsection. Such action shall be tried to the court 432 | |
| 552 | - | without a jury. All legal defenses, except governmental immunity, 433 | |
| 553 | - | shall be reserved to the state. Any action brought under this subsection 434 | |
| 554 | - | shall be privileged in respect to assignment for trial upon motion of 435 | |
| 555 | - | either party. 436 | |
| 556 | - | (g) Any expense incurred in connection with the issuance or 437 | |
| 557 | - | renewal of the bonds, notes or other obligations issued pursuant to this 438 | |
| 558 | - | section shall be paid from the accrued interest and premiums on such 439 | |
| 559 | - | bonds, notes or other obligations, from the proceeds of the sale of such 440 | |
| 560 | - | bonds, notes or other obligations or otherwise from the General Fund. 441 | |
| 561 | - | The Treasurer is authorized to issue such bonds, notes or other 442 | |
| 562 | - | obligations in such form and manner that the interest on such bonds, 443 | |
| 563 | - | notes or other obligations may be includable or excludable under the 444 | |
| 564 | - | Internal Revenue Code of 1986, or any subsequent corresponding 445 | |
| 565 | - | internal revenue code of the United States, as amended from time to 446 | |
| 566 | - | time, in the gross income of the holders or owners of such bonds, notes 447 | |
| 567 | - | or other obligations. The Treasurer may make representations and 448 | |
| 568 | - | agreements for the benefit of the holders or owners of any such bonds, 449 | |
| 569 | - | notes or other obligations which are necessary or appropriate to ensure 450 | |
| 570 | - | the inclusion or exclusion of interest on such bonds, notes or other 451 | |
| 571 | - | obligations of the state from taxation under the Internal Revenue Code 452 | |
| 572 | - | of 1986 or any subsequent corresponding internal revenue code of the 453 | |
| 573 | - | United States, as amended from time to time, including agreements to 454 | |
| 574 | - | pay rebates to the federal government of investment earnings derived 455 | |
| 575 | - | from the investment of the proceeds of bonds, notes or other 456 | |
| 576 | - | obligations. The Treasurer may make representations and agreements 457 | |
| 577 | - | for the benefit of the holders or owners of such bonds, notes or other 458 Substitute Bill No. 1235 | |
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| 584 | - | obligations on behalf of the state to provide secondary market 459 | |
| 585 | - | disclosure information. Any such agreement may include: (1) 460 | |
| 586 | - | Covenants to provide secondary market disclosure information, (2) 461 | |
| 587 | - | arrangements for such information to be provided with the assistance 462 | |
| 588 | - | of a paying agent, trustee or other agent, and (3) remedies for breach of 463 | |
| 589 | - | such agreement, which remedies may be limited to specific 464 | |
| 590 | - | performance. The state shall protect and save harmless any official or 465 | |
| 591 | - | former official of the state from financial loss and expense, including 466 | |
| 592 | - | legal fees and costs, if any, arising out of any claim, demand, suit or 467 | |
| 593 | - | judgment by reason of alleged negligence on the part of such official, 468 | |
| 594 | - | while acting in the discharge of his or her official duties, in providing 469 | |
| 595 | - | secondary market disclosure information or performing any other 470 | |
| 596 | - | duties set forth in any agreement to provide secondary market 471 | |
| 597 | - | disclosure information. Nothing in this section shall be construed to 472 | |
| 598 | - | preclude the defense of governmental immunity to any such claim, 473 | |
| 599 | - | demand or suit. For purposes of this subsection "official" means any 474 | |
| 600 | - | person elected or appointed to office or any state employee. This 475 | |
| 601 | - | indemnity provision shall not apply to cases of wilful and wanton 476 | |
| 602 | - | fraud. 477 | |
| 603 | - | (h) All such bonds, notes or other obligations, their transfer and the 478 | |
| 604 | - | income therefrom, including any profit on the sale or transfer thereof, 479 | |
| 605 | - | shall at all times be exempt from all taxation by the state or under its 480 | |
| 606 | - | authority, except for estate or succession taxes, but the interest on such 481 | |
| 607 | - | bonds, notes or other obligations shall be included in the computation 482 | |
| 608 | - | of any excise or franchise tax. Such bonds, notes or other obligations 483 | |
| 609 | - | are hereby made and declared to be (1) legal investments for savings 484 | |
| 610 | - | banks and trustees unless otherwise provided in the instrument 485 | |
| 611 | - | creating the trust, (2) securities in which all public officers and bodies, 486 | |
| 612 | - | all insurance companies and associations and persons carrying on an 487 | |
| 613 | - | insurance business, all banks, bankers, trust companies, savings banks 488 | |
| 614 | - | and savings associations, including savings and loan associations, 489 | |
| 615 | - | building and loan associations, investment companies and persons 490 | |
| 616 | - | carrying on a banking or investment business, all administrators, 491 | |
| 617 | - | guardians, executors, trustees and other fiduciaries and all persons 492 Substitute Bill No. 1235 | |
| 618 | - | ||
| 619 | - | ||
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| 623 | - | ||
| 624 | - | who are or may be authorized to invest in bonds, notes or other 493 | |
| 625 | - | obligations of the state, may properly and legally invest funds, 494 | |
| 626 | - | including capital in their control or belonging to them, and (3) 495 | |
| 627 | - | securities that may be deposited with and shall be received by all 496 | |
| 628 | - | public officers and bodies for any purpose for which the deposit of 497 | |
| 629 | - | bonds, notes or other obligations of the state is or may be authorized.] 498 | |
| 630 | - | Sec. 10. Section 3-13c of the general statutes is repealed and the 499 | |
| 631 | - | following is substituted in lieu thereof (Effective from passage): 500 | |
| 632 | - | [Trust funds as] As used in sections 3-13 to 3-13e, inclusive, and 3-501 | |
| 633 | - | 31b, [shall be construed to include] "trust funds" includes the 502 | |
| 634 | - | Connecticut Municipal Employees' Retirement Fund A, the 503 | |
| 635 | - | Connecticut Municipal Employees' Retirement Fund B, the Soldiers, 504 | |
| 636 | - | Sailors and Marines Fund, the Family and Medical Leave Insurance 505 | |
| 637 | - | Trust Fund, the State's Attorneys' Retirement Fund, the Teachers' 506 | |
| 638 | - | Annuity Fund, the Teachers' Pension Fund, the Teachers' Survivorship 507 | |
| 639 | - | and Dependency Fund, the School Fund, the State Employees 508 | |
| 640 | - | Retirement Fund, the Hospital Insurance Fund, the Policemen and 509 | |
| 641 | - | Firemen Survivor's Benefit Fund, any trust fund described in 510 | |
| 642 | - | subdivision (1) of subsection (b) of section 7-450 that is administered, 511 | |
| 643 | - | held or invested by the State Treasurer, the Connecticut Baby Bond 512 | |
| 644 | - | Trust and all other trust funds administered, held or invested by the 513 | |
| 645 | - | State Treasurer. 514 | |
| 232 | + | Treasurer where it shall be available for public inspection. The Treasurer 177 | |
| 233 | + | may proceed to award the contract after such forty-five-day period. 178 | |
| 234 | + | (b) Commencing with the calendar quarter ending September 30, 179 | |
| 235 | + | 2023, and each calendar quarter thereafter, the Treasurer shall submit a 180 | |
| 236 | + | report to the Investment Advisory Council regarding contracts awarded 181 | |
| 237 | + | during each such calendar quarter for services related to the investment 182 | |
| 238 | + | of trust funds. The initial report shall include all such contracts awarded 183 | |
| 239 | + | and in effect on July 1, 2023, and each report shall include the name of 184 | |
| 240 | + | each provider awarded any such contract and the value of such contract. 185 | |
| 646 | 241 | This act shall take effect as follows and shall amend the following | |
| 647 | 242 | sections: | |
| 648 | 243 | ||
| 649 | 244 | Section 1 from passage 3-13a | |
| 650 | 245 | Sec. 2 from passage 3-13b | |
| 651 | 246 | Sec. 3 from passage 3-13i | |
| 652 | - | Sec. 4 from passage 3-36b | |
| 653 | - | Sec. 5 from passage 3-36e | |
| 654 | - | Sec. 6 from passage 3-36f | |
| 655 | - | Sec. 7 from passage 3-36g | |
| 656 | - | Sec. 8 from passage 3-36h | |
| 657 | - | Sec. 9 from passage 3-36i Substitute Bill No. 1235 | |
| 658 | 247 | ||
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| 663 | - | ||
| 664 | - | Sec. 10 from passage 3-13c | |
| 665 | - | ||
| 666 | - | FIN Joint Favorable Subst. | |
| 248 | + | Statement of Purpose: | |
| 249 | + | To implement the Treasurer's recommendations concerning the | |
| 250 | + | Investment Advisory Council and related statutes. | |
| 251 | + | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except | |
| 252 | + | that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not | |
| 253 | + | underlined.] | |
| 667 | 254 |