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 Section 3-13a of the general statutes is repealed and the 1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