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General Assembly Substitute Bill No. 341
February Session, 2024
AN ACT ESTABLISHING A FALLEN OFFICER FUND AND PROVIDING
HEALTH INSURANCE COVERAGE TO SURVIVORS OF A POLICE
OFFICER KILLED IN THE LINE OF DUTY.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) For purposes of this 1
section: 2
(1) "Dependent child" means a child, whether by blood or adoption, 3
of a police officer who (A) is under the age of twenty-two and was 4
dependent on the earnings of such officer at the time of such officer's 5
death, provided a child shall not be considered dependent if such child 6
provides more than half of such child's own support, is married or is 7
legally adopted by another person, or (B) is any age and is physically or 8
mentally incapacitated and was dependent on the earnings of such 9
officer at the time of such officer's death. 10
(2) "Killed in the line of duty" means the death of a police officer while 11
engaged in the performance of such officer's duties, resulting from an 12
incident, an accident or violence that caused such death or caused 13
injuries that were the direct or proximate cause of such officer's death, 14
including any death that is determined to be occupationally related by 15
a workers' compensation insurance carrier, an employer to whom a 16
certificate of self-insurance has been issued pursuant to section 31-248 17 Substitute Bill No. 341
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of the general statutes or an administrative law judge for workers' 18
compensation purposes under chapter 568 of the general statutes. 19
"Killed in the line of duty" does not include the death of a police officer 20
through such officer's own wanton or wilful act. 21
(3) "Law enforcement unit" has the same meaning as provided in 22
section 7-294a of the general statutes. 23
(4) "Police officer" has the same meaning as provided in section 7-24
294a of the general statutes. 25
(5) "Surviving family" means any person who is a surviving spouse, 26
surviving dependent child, surviving child who is not a dependent child 27
or surviving parent of a police officer killed in the line of duty, or a 28
surviving individual listed on such officer's most recent beneficiary 29
form on file with such officer's employing law enforcement unit. 30
(b) There is established a fund to be known as the "Fallen Officer 31
Fund". The fund may contain any moneys required by law to be 32
deposited in the fund and shall be held by the Treasurer separate and 33
apart from all other moneys, funds and accounts. The interest derived 34
from the investment of the fund shall be credited to the fund. Amounts 35
in the fund may be expended by the Comptroller for purposes of 36
payments pursuant to subsection (c) of this section and reimbursement 37
of municipalities pursuant to subdivision (2) of subsection (c) of section 38
3-123eee of the general statutes, as amended by this act. Any balance 39
remaining in the fund at the end of any fiscal year shall be carried 40
forward in the fund for the fiscal year next succeeding. 41
(c) (1) After receiving notice, in a form and manner as determined by 42
the Comptroller, from an individual who is a member of the surviving 43
family of a police officer who was killed in the line of duty, the 44
Comptroller shall pay, within available appropriations, a lump sum 45
death benefit totaling one hundred thousand dollars from the fund 46
established in subsection (b) of this section to such surviving family, in 47
accordance with regulations adopted pursuant to subsection (e) of this 48 Substitute Bill No. 341
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section, provided the surviving family of a police officer killed in the 49
line of duty shall not receive more than one such lump sum death 50
benefit. Payments shall be made to surviving families in the order in 51
which notices are received until the amount in such fund is depleted. 52
(2) Any payment made pursuant to subdivision (1) of this subsection 53
shall be in addition to any other benefits for which individuals of such 54
officer's surviving family are eligible and such payments shall not be 55
reduced or offset due to any other benefits, including, but not limited to, 56
workers' compensation or other survivor benefits. 57
(d) Not later than July 1, 2025, and annually thereafter, the 58
Comptroller shall submit a report, in accordance with the provisions of 59
section 11-4a of the general statutes, to the joint standing committee of 60
the General Assembly having cognizance of matters relating to public 61
safety and security. Such report shall include a list of all expenditures 62
made from the fund established by subsection (b) of this section during 63
the prior year, the current balance of such fund and information 64
regarding additional amounts needed for such fund. 65
(e) The Comptroller shall adopt regulations in accordance with the 66
provisions of chapter 54 of the general statutes to implement the 67
provisions of this section, including, but not limited to, application 68
procedures and criteria for awarding grants among individuals who are 69
members of the surviving family, with priority given to awards that 70
would benefit a dependent child or children and a spouse who is a 71
member of the surviving family. The Comptroller may implement 72
policies and procedures necessary to implement the provisions of this 73
section while in the process of adopting such regulations, provided 74
notice of intent to adopt such regulations is published on the 75
eRegulations System not later than twenty days after the date of 76
implementation of such policies and procedures. Any policies and 77
procedures implemented under this subsection shall be valid until the 78
time such regulations are adopted. 79
Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 80 Substitute Bill No. 341
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section 12-701 of the 2024 supplement to the general statutes is repealed 81
and the following is substituted in lieu thereof (Effective from passage and 82
applicable to taxable years commencing on or after January 1, 2024): 83
(B) There shall be subtracted therefrom: 84
(i) To the extent properly includable in gross income for federal 85
income tax purposes, any income with respect to which taxation by any 86
state is prohibited by federal law; 87
(ii) To the extent allowable under section 12-718, exempt dividends 88
paid by a regulated investment company; 89
(iii) To the extent properly includable in gross income for federal 90
income tax purposes, the amount of any refund or credit for 91
overpayment of income taxes imposed by this state, or any other state 92
of the United States or a political subdivision thereof, or the District of 93
Columbia; 94
(iv) To the extent properly includable in gross income for federal 95
income tax purposes and not otherwise subtracted from federal 96
adjusted gross income pursuant to clause (x) of this subparagraph in 97
computing Connecticut adjusted gross income, any tier 1 railroad 98
retirement benefits; 99
(v) To the extent any additional allowance for depreciation under 100
Section 168(k) of the Internal Revenue Code for property placed in 101
service after September 27, 2017, was added to federal adjusted gross 102
income pursuant to subparagraph (A)(ix) of this subdivision in 103
computing Connecticut adjusted gross income, twenty-five per cent of 104
such additional allowance for depreciation in each of the four 105
succeeding taxable years; 106
(vi) To the extent properly includable in gross income for federal 107
income tax purposes, any interest income from obligations issued by or 108
on behalf of the state of Connecticut, any political subdivision thereof, 109
or public instrumentality, state or local authority, district or similar 110 Substitute Bill No. 341
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public entity created under the laws of the state of Connecticut; 111
(vii) To the extent properly includable in determining the net gain or 112
loss from the sale or other disposition of capital assets for federal income 113
tax purposes, any gain from the sale or exchange of obligations issued 114
by or on behalf of the state of Connecticut, any political subdivision 115
thereof, or public instrumentality, state or local authority, district or 116
similar public entity created under the laws of the state of Connecticut, 117
in the income year such gain was recognized; 118
(viii) Any interest on indebtedness incurred or continued to purchase 119
or carry obligations or securities the interest on which is subject to tax 120
under this chapter but exempt from federal income tax, to the extent that 121
such interest on indebtedness is not deductible in determining federal 122
adjusted gross income and is attributable to a trade or business carried 123
on by such individual; 124
(ix) Ordinary and necessary expenses paid or incurred during the 125
taxable year for the production or collection of income which is subject 126
to taxation under this chapter but exempt from federal income tax, or 127
the management, conservation or maintenance of property held for the 128
production of such income, and the amortizable bond premium for the 129
taxable year on any bond the interest on which is subject to tax under 130
this chapter but exempt from federal income tax, to the extent that such 131
expenses and premiums are not deductible in determining federal 132
adjusted gross income and are attributable to a trade or business carried 133
on by such individual; 134
(x) (I) For taxable years commencing prior to January 1, 2019, for a 135
person who files a return under the federal income tax as an unmarried 136
individual whose federal adjusted gross income for such taxable year is 137
less than fifty thousand dollars, or as a married individual filing 138
separately whose federal adjusted gross income for such taxable year is 139
less than fifty thousand dollars, or for a husband and wife who file a 140
return under the federal income tax as married individuals filing jointly 141
whose federal adjusted gross income for such taxable year is less than 142 Substitute Bill No. 341
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sixty thousand dollars or a person who files a return under the federal 143
income tax as a head of household whose federal adjusted gross income 144
for such taxable year is less than sixty thousand dollars, an amount 145
equal to the Social Security benefits includable for federal income tax 146
purposes; 147
(II) For taxable years commencing prior to January 1, 2019, for a 148
person who files a return under the federal income tax as an unmarried 149
individual whose federal adjusted gross income for such taxable year is 150
fifty thousand dollars or more, or as a married individual filing 151
separately whose federal adjusted gross income for such taxable year is 152
fifty thousand dollars or more, or for a husband and wife who file a 153
return under the federal income tax as married individuals filing jointly 154
whose federal adjusted gross income from such taxable year is sixty 155
thousand dollars or more or for a person who files a return under the 156
federal income tax as a head of household whose federal adjusted gross 157
income for such taxable year is sixty thousand dollars or more, an 158
amount equal to the difference between the amount of Social Security 159
benefits includable for federal income tax purposes and the lesser of 160
twenty-five per cent of the Social Security benefits received during the 161
taxable year, or twenty-five per cent of the excess described in Section 162
86(b)(1) of the Internal Revenue Code; 163
(III) For the taxable year commencing January 1, 2019, and each 164
taxable year thereafter, for a person who files a return under the federal 165
income tax as an unmarried individual whose federal adjusted gross 166
income for such taxable year is less than seventy-five thousand dollars, 167
or as a married individual filing separately whose federal adjusted gross 168
income for such taxable year is less than seventy-five thousand dollars, 169
or for a husband and wife who file a return under the federal income tax 170
as married individuals filing jointly whose federal adjusted gross 171
income for such taxable year is less than one hundred thousand dollars 172
or a person who files a return under the federal income tax as a head of 173
household whose federal adjusted gross income for such taxable year is 174
less than one hundred thousand dollars, an amount equal to the Social 175 Substitute Bill No. 341
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Security benefits includable for federal income tax purposes; and 176
(IV) For the taxable year commencing January 1, 2019, and each 177
taxable year thereafter, for a person who files a return under the federal 178
income tax as an unmarried individual whose federal adjusted gross 179
income for such taxable year is seventy-five thousand dollars or more, 180
or as a married individual filing separately whose federal adjusted gross 181
income for such taxable year is seventy-five thousand dollars or more, 182
or for a husband and wife who file a return under the federal income tax 183
as married individuals filing jointly whose federal adjusted gross 184
income from such taxable year is one hundred thousand dollars or more 185
or for a person who files a return under the federal income tax as a head 186
of household whose federal adjusted gross income for such taxable year 187
is one hundred thousand dollars or more, an amount equal to the 188
difference between the amount of Social Security benefits includable for 189
federal income tax purposes and the lesser of twenty-five per cent of the 190
Social Security benefits received during the taxable year, or twenty-five 191
per cent of the excess described in Section 86(b)(1) of the Internal 192
Revenue Code; 193
(xi) To the extent properly includable in gross income for federal 194
income tax purposes, any amount rebated to a taxpayer pursuant to 195
section 12-746; 196
(xii) To the extent properly includable in the gross income for federal 197
income tax purposes of a designated beneficiary, any distribution to 198
such beneficiary from any qualified state tuition program, as defined in 199
Section 529(b) of the Internal Revenue Code, established and 200
maintained by this state or any official, agency or instrumentality of the 201
state; 202
(xiii) To the extent allowable under section 12-701a, contributions to 203
accounts established pursuant to any qualified state tuition program, as 204
defined in Section 529(b) of the Internal Revenue Code, established and 205
maintained by this state or any official, agency or instrumentality of the 206
state; 207 Substitute Bill No. 341
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(xiv) To the extent properly includable in gross income for federal 208
income tax purposes, the amount of any Holocaust victims' settlement 209
payment received in the taxable year by a Holocaust victim; 210
(xv) To the extent properly includable in the gross income for federal 211
income tax purposes of a designated beneficiary, as defined in section 212
3-123aa, interest, dividends or capital gains earned on contributions to 213
accounts established for the designated beneficiary pursuant to the 214
Connecticut Homecare Option Program for the Elderly established by 215
sections 3-123aa to 3-123ff, inclusive; 216
(xvi) To the extent properly includable in gross income for federal 217
income tax purposes, any income received from the United States 218
government as retirement pay for a retired member of (I) the Armed 219
Forces of the United States, as defined in Section 101 of Title 10 of the 220
United States Code, or (II) the National Guard, as defined in Section 101 221
of Title 10 of the United States Code; 222
(xvii) To the extent properly includable in gross income for federal 223
income tax purposes for the taxable year, any income from the discharge 224
of indebtedness in connection with any reacquisition, after December 225
31, 2008, and before January 1, 2011, of an applicable debt instrument or 226
instruments, as those terms are defined in Section 108 of the Internal 227
Revenue Code, as amended by Section 1231 of the American Recovery 228
and Reinvestment Act of 2009, to the extent any such income was added 229
to federal adjusted gross income pursuant to subparagraph (A)(xi) of 230
this subdivision in computing Connecticut adjusted gross income for a 231
preceding taxable year; 232
(xviii) To the extent not deductible in determining federal adjusted 233
gross income, the amount of any contribution to a manufacturing 234
reinvestment account established pursuant to section 32-9zz in the 235
taxable year that such contribution is made; 236
(xix) To the extent properly includable in gross income for federal 237
income tax purposes, (I) for the taxable year commencing January 1, 238 Substitute Bill No. 341
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2015, ten per cent of the income received from the state teachers' 239
retirement system, (II) for the taxable years commencing January 1, 240
2016, to January 1, 2020, inclusive, twenty-five per cent of the income 241
received from the state teachers' retirement system, and (III) for the 242
taxable year commencing January 1, 2021, and each taxable year 243
thereafter, fifty per cent of the income received from the state teachers' 244
retirement system or, for a taxpayer whose federal adjusted gross 245
income does not exceed the applicable threshold under clause (xx) of 246
this subparagraph, the percentage pursuant to said clause of the income 247
received from the state teachers' retirement system, whichever 248
deduction is greater; 249
(xx) To the extent properly includable in gross income for federal 250
income tax purposes, except for retirement benefits under clause (iv) of 251
this subparagraph and retirement pay under clause (xvi) of this 252
subparagraph, for a person who files a return under the federal income 253
tax as an unmarried individual whose federal adjusted gross income for 254
such taxable year is less than seventy-five thousand dollars, or as a 255
married individual filing separately whose federal adjusted gross 256
income for such taxable year is less than seventy-five thousand dollars, 257
or as a head of household whose federal adjusted gross income for such 258
taxable year is less than seventy-five thousand dollars, or for a husband 259
and wife who file a return under the federal income tax as married 260
individuals filing jointly whose federal adjusted gross income for such 261
taxable year is less than one hundred thousand dollars, (I) for the taxable 262
year commencing January 1, 2019, fourteen per cent of any pension or 263
annuity income, (II) for the taxable year commencing January 1, 2020, 264
twenty-eight per cent of any pension or annuity income, (III) for the 265
taxable year commencing January 1, 2021, forty-two per cent of any 266
pension or annuity income, and (IV) for the taxable years commencing 267
January 1, 2022, and January 1, 2023, one hundred per cent of any 268
pension or annuity income; 269
(xxi) To the extent properly includable in gross income for federal 270
income tax purposes, except for retirement benefits under clause (iv) of 271 Substitute Bill No. 341
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this subparagraph and retirement pay under clause (xvi) of this 272
subparagraph, any pension or annuity income for the taxable year 273
commencing on or after January 1, 2024, and each taxable year 274
thereafter, in accordance with the following schedule, for a person who 275
files a return under the federal income tax as an unmarried individual 276
whose federal adjusted gross income for such taxable year is less than 277
one hundred thousand dollars, or as a married individual filing 278
separately whose federal adjusted gross income for such taxable year is 279
less than one hundred thousand dollars, or as a head of household 280
whose federal adjusted gross income for such taxable year is less than 281
one hundred thousand dollars: 282
T1
Federal Adjusted Gross Income Deduction
T2 Less than $75,000 100.0%
T3 $75,000 but not over $77,499 85.0%
T4 $77,500 but not over $79,999 70.0%
T5 $80,000 but not over $82,499 55.0%
T6 $82,500 but not over $84,999 40.0%
T7 $85,000 but not over $87,499 25.0%
T8 $87,500 but not over $89,999 10.0%
T9 $90,000 but not over $94,999 5.0%
T10 $95,000 but not over $99,999 2.5%
T11 $100,000 and over 0.0%
(xxii) To the extent properly includable in gross income for federal 283
income tax purposes, except for retirement benefits under clause (iv) of 284
this subparagraph and retirement pay under clause (xvi) of this 285
subparagraph, any pension or annuity income for the taxable year 286
commencing on or after January 1, 2024, and each taxable year 287
thereafter, in accordance with the following schedule for married 288
individuals who file a return under the federal income tax as married 289
individuals filing jointly whose federal adjusted gross income for such 290
taxable year is less than one hundred fifty thousand dollars: 291
T12
Federal Adjusted Gross Income Deduction Substitute Bill No. 341
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T13 Less than $100,000 100.0%
T14 $100,000 but not over $104,999 85.0%
T15 $105,000 but not over $109,999 70.0%
T16 $110,000 but not over $114,999 55.0%
T17 $115,000 but not over $119,999 40.0%
T18 $120,000 but not over $124,999 25.0%
T19 $125,000 but not over $129,999 10.0%
T20 $130,000 but not over $139,999 5.0%
T21 $140,000 but not over $149,999 2.5%
T22 $150,000 and over 0.0%
(xxiii) The amount of lost wages and medical, travel and housing 292
expenses, not to exceed ten thousand dollars in the aggregate, incurred 293
by a taxpayer during the taxable year in connection with the donation 294
to another person of an organ for organ transplantation occurring on or 295
after January 1, 2017; 296
(xxiv) To the extent properly includable in gross income for federal 297
income tax purposes, the amount of any financial assistance received 298
from the Crumbling Foundations Assistance Fund or paid to or on 299
behalf of the owner of a residential building pursuant to sections 8-442 300
and 8-443; 301
(xxv) To the extent properly includable in gross income for federal 302
income tax purposes, the amount calculated pursuant to subsection (b) 303
of section 12-704g for income received by a general partner of a venture 304
capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 305
time; 306
(xxvi) To the extent any portion of a deduction under Section 179 of 307
the Internal Revenue Code was added to federal adjusted gross income 308
pursuant to subparagraph (A)(xiv) of this subdivision in computing 309
Connecticut adjusted gross income, twenty-five per cent of such 310
disallowed portion of the deduction in each of the four succeeding 311
taxable years; 312
(xxvii) To the extent properly includable in gross income for federal 313 Substitute Bill No. 341
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income tax purposes, for a person who files a return under the federal 314
income tax as an unmarried individual whose federal adjusted gross 315
income for such taxable year is less than seventy-five thousand dollars, 316
or as a married individual filing separately whose federal adjusted gross 317
income for such taxable year is less than seventy-five thousand dollars, 318
or as a head of household whose federal adjusted gross income for such 319
taxable year is less than seventy-five thousand dollars, or for a husband 320
and wife who file a return under the federal income tax as married 321
individuals filing jointly whose federal adjusted gross income for such 322
taxable year is less than one hundred thousand dollars, for the taxable 323
year commencing January 1, 2023, twenty-five per cent of any 324
distribution from an individual retirement account other than a Roth 325
individual retirement account; 326
(xxviii) To the extent properly includable in gross income for federal 327
income tax purposes, for a person who files a return under the federal 328
income tax as an unmarried individual whose federal adjusted gross 329
income for such taxable year is less than one hundred thousand dollars, 330
or as a married individual filing separately whose federal adjusted gross 331
income for such taxable year is less than one hundred thousand dollars, 332
or as a head of household whose federal adjusted gross income for such 333
taxable year is less than one hundred thousand dollars, (I) for the taxable 334
year commencing January 1, 2024, fifty per cent of any distribution from 335
an individual retirement account other than a Roth individual 336
retirement account, (II) for the taxable year commencing January 1, 2025, 337
seventy-five per cent of any distribution from an individual retirement 338
account other than a Roth individual retirement account, and (III) for 339
the taxable year commencing January 1, 2026, and each taxable year 340
thereafter, any distribution from an individual retirement account other 341
than a Roth individual retirement account. The subtraction under this 342
clause shall be made in accordance with the following schedule: 343
T23
Federal Adjusted Gross Income Deduction
T24 Less than $75,000 100.0%
T25 $75,000 but not over $77,499 85.0% Substitute Bill No. 341
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T26 $77,500 but not over $79,999 70.0%
T27 $80,000 but not over $82,499 55.0%
T28 $82,500 but not over $84,999 40.0%
T29 $85,000 but not over $87,499 25.0%
T30 $87,500 but not over $89,999 10.0%
T31 $90,000 but not over $94,999 5.0%
T32 $95,000 but not over $99,999 2.5%
T33 $100,000 and over 0.0%
(xxix) To the extent properly includable in gross income for federal 344
income tax purposes, for married individuals who file a return under 345
the federal income tax as married individuals filing jointly whose 346
federal adjusted gross income for such taxable year is less than one 347
hundred fifty thousand dollars, (I) for the taxable year commencing 348
January 1, 2024, fifty per cent of any distribution from an individual 349
retirement account other than a Roth individual retirement account, (II) 350
for the taxable year commencing January 1, 2025, seventy-five per cent 351
of any distribution from an individual retirement account other than a 352
Roth individual retirement account, and (III) for the taxable year 353
commencing January 1, 2026, and each taxable year thereafter, any 354
distribution from an individual retirement account other than a Roth 355
individual retirement account. The subtraction under this clause shall 356
be made in accordance with the following schedule: 357
T34
Federal Adjusted Gross Income Deduction
T35 Less than $100,000 100.0%
T36 $100,000 but not over $104,999 85.0%
T37 $105,000 but not over $109,999 70.0%
T38 $110,000 but not over $114,999 55.0%
T39 $115,000 but not over $119,999 40.0%
T40 $120,000 but not over $124,999 25.0%
T41 $125,000 but not over $129,999 10.0%
T42 $130,000 but not over $139,999 5.0%
T43 $140,000 but not over $149,999 2.5%
T44 $150,000 and over 0.0%
Substitute Bill No. 341
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(xxx) To the extent properly includable in gross income for federal 358
income tax purposes, for the taxable year commencing January 1, 2022, 359
the amount or amounts paid or otherwise credited to any eligible 360
resident of this state under (I) the 2020 Earned Income Tax Credit 361
enhancement program from funding allocated to the state through the 362
Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 363
and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 364
Income Tax Credit enhancement program from funding allocated to the 365
state pursuant to Section 9901 of Subtitle M of Title IX of the American 366
Rescue Plan Act of 2021, P.L. 117-2; 367
(xxxi) For the taxable year commencing January 1, 2023, and each 368
taxable year thereafter, for a taxpayer licensed under the provisions of 369
chapter 420f or 420h, the amount of ordinary and necessary expenses 370
that would be eligible to be claimed as a deduction for federal income 371
tax purposes under Section 162(a) of the Internal Revenue Code but that 372
are disallowed under Section 280E of the Internal Revenue Code 373
because marijuana is a controlled substance under the federal 374
Controlled Substance Act; 375
(xxxii) To the extent properly includable in gross income for federal 376
income tax purposes, for the taxable year commencing on or after 377
January 1, 2025, and each taxable year thereafter, any common stock 378
received by the taxpayer during the taxable year under a share plan, as 379
defined in section 12-217ss; 380
(xxxiii) To the extent properly includable in gross income for federal 381
income tax purposes, the amount of any student loan reimbursement 382
payment received by a taxpayer pursuant to section 10a-19m; [and] 383
(xxxiv) Contributions to an ABLE account established pursuant to 384
sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 385
each individual taxpayer or ten thousand dollars for taxpayers filing a 386
joint return; and 387
(xxxv) To the extent properly includable in gross income for federal 388 Substitute Bill No. 341
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income tax purposes, the amount of any payment received pursuant to 389
subsection (c) of section 1 of this act. 390
Sec. 3. Section 3-123aaa of the general statutes is repealed and the 391
following is substituted in lieu thereof (Effective July 1, 2024): 392
As used in this section and sections 3-123bbb to 3-123hhh, inclusive, 393
as amended by this act: 394
(1) "Health Care Cost Containment Committee" means the committee 395
established in accordance with the ratified agreement between the state 396
and the State Employees Bargaining Agent Coalition pursuant to 397
subsection (f) of section 5-278. 398
(2) "Killed in the line of duty" has the same meaning as provided in 399
section 1 of this act. 400
[(2)] (3) "Nonprofit employee" means any employee of a nonprofit 401
employer. 402
[(3)] (4) "Nonprofit employer" means (A) a nonprofit corporation, 403
organized under 26 USC 501, as amended from time to time, that (i) has 404
a purchase of service contract, as defined in section 4-70b, or (ii) receives 405
fifty per cent or more of its gross annual revenue from grants or funding 406
from the state, the federal government or a municipality or any 407
combination thereof, or (B) an organization that is tax exempt pursuant 408
to 26 USC 501(c)(5), as amended from time to time. 409
[(4)] (5) "Nonstate public employee" means any employee or elected 410
officer of a nonstate public employer. 411
[(5)] (6) "Nonstate public employer" means a municipality or other 412
political subdivision of the state, including a board of education, quasi-413
public agency or public library. A municipality and a board of education 414
may be considered separate employers. 415
[(6)] (7) "Partnership plan" means a health care benefit plan offered 416 Substitute Bill No. 341
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by the Comptroller to (A) nonstate public employers or nonprofit 417
employers pursuant to section 3-123bbb, as amended by this act, (B) 418
graduate assistants at The University of Connecticut and The University 419
of Connecticut Health Center, (C) postdoctoral trainees at The 420
University of Connecticut and The University of Connecticut Health 421
Center, (D) graduate fellows at The University of Connecticut and The 422
University of Connecticut Health Center, and (E) graduate students of 423
The University of Connecticut participating in university-funded 424
internships as part of their graduate program. 425
(8) "Police officer" has the same meaning as provided in section 7-426
294a. 427
[(7)] (9) "State employee plan" means a self-insured group health care 428
benefits plan established under subsection (m) of section 5-259. 429
Sec. 4. Section 3-123bbb of the general statutes is repealed and the 430
following is substituted in lieu thereof (Effective July 1, 2024): 431
(a) (1) Notwithstanding the provisions of title 38a, the Comptroller 432
shall offer to nonstate public employers and nonprofit employers, and 433
their respective retirees, if applicable, coverage under a partnership plan 434
or plans. Such plan or plans may be offered on a fully-insured or risk-435
pooled basis at the discretion of the Comptroller. Any health insurer, 436
health care center or other entity that contracts with the Comptroller for 437
the purposes of this section and any fully-insured plan offered by the 438
Comptroller under such contract shall be subject to title 38a. Eligible 439
employers shall submit an application to the Comptroller for coverage 440
under any such plan or plans. 441
(2) Beginning January 1, 2012, the Comptroller shall offer coverage 442
under such plan or plans to nonstate public employers. Beginning 443
January 1, 2013, the Comptroller shall offer coverage under such plan or 444
plans to nonprofit employers. 445
(b) (1) The Comptroller shall require nonstate public employers and 446
nonprofit employers that elect to obtain coverage under a partnership 447 Substitute Bill No. 341
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plan to participate in such plan for not less than two-year intervals, 448
except participation pursuant to an application described in subdivision 449
(2) of subsection (i) of this section may be for one-year intervals. An 450
employer may apply for renewal prior to the expiration of each interval. 451
(2) The Comptroller shall develop procedures by which: 452
(A) Such employers may apply to obtain coverage under a 453
partnership plan, including procedures for nonstate public employers 454
that are currently fully insured and procedures for nonstate public 455
employers that are currently self-insured; 456
(B) Employers receiving coverage for their employees pursuant to a 457
partnership plan may (i) apply for renewal, or (ii) withdraw from such 458
coverage, including, but not limited to, the terms and conditions under 459
which such employers may withdraw prior to the expiration of the 460
interval and the procedure by which any premium payments such 461
employers may be entitled to or premium equivalent payments made in 462
excess of incurred claims shall be refunded to such employer. Any such 463
procedures shall provide that nonstate public employees covered by 464
collective bargaining shall withdraw from such coverage in accordance 465
with chapters 113 and 166; [and] 466
(C) Nonstate public employers may continue and renew coverage 467
pursuant to subdivision (1) of subsection (i) of this section and initiate 468
and renew enrollment and coverage pursuant to subdivision (2) of 469
subsection (i) of this section; and 470
[(C)] (D) The Comptroller may collect payments and fees for 471
unreported claims and expenses. 472
(c) (1) The initial open enrollment for nonstate public employers shall 473
be for coverage beginning July 1, 2012. Thereafter, open enrollment for 474
nonstate public employers shall be for coverage periods beginning July 475
first. 476
(2) The initial open enrollment for nonprofit employers shall be for 477 Substitute Bill No. 341
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coverage beginning January 1, 2013. Thereafter, open enrollment for 478
nonprofit employers shall be for coverage periods beginning January 479
first and July first. 480
(d) Nothing in this section or sections 3-123ccc, as amended by this 481
act, and 3-123ddd shall require the Comptroller to offer coverage to 482
every employer seeking coverage under sections 3-123ccc, as amended 483
by this act, and 3-123ddd from every partnership plan offered by the 484
Comptroller. 485
(e) The Comptroller shall create applications for coverage for the 486
purposes of sections 3-123ccc, as amended by this act, and 3-123ddd and 487
for renewal of a partnership plan. Such applications shall require an 488
employer to disclose whether the employer will offer any other health 489
care benefits plan to the employees who are offered a partnership plan. 490
(f) No employee shall be enrolled in a partnership plan if such 491
employee is covered through such employee's employer by health 492
insurance plans or insurance arrangements issued to or in accordance 493
with a trust established pursuant to collective bargaining subject to the 494
federal Labor Management Relations Act. 495
(g) (1) The Comptroller shall take such actions as are necessary to 496
ensure that granting coverage to an employer under sections 3-123ccc, 497
as amended by this act, and 3-123ddd will not affect the status of the 498
state employee plan as a governmental plan under the Employee 499
Retirement Income Security Act of 1974, as amended from time to time. 500
Such actions may include, but are not limited to, cancelling coverage, 501
with notice, to such employer and discontinuing the acceptance of 502
applications for coverage from nonprofit employers. The Comptroller 503
shall establish the form and time frame for the notice of cancellation to 504
be provided to such employer. 505
(2) The Comptroller shall resume providing coverage for, or 506
accepting applications for coverage from, nonprofit employers if the 507
Comptroller determines that granting coverage to such employers will 508 Substitute Bill No. 341
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not affect the state employee plan's status as a governmental plan under 509
the Employee Retirement Income Security Act of 1974, as amended from 510
time to time. 511
(3) The Comptroller shall make a public announcement of the 512
Comptroller's decision to discontinue or resume coverage or the 513
acceptance of applications for coverage under a partnership plan or 514
plans. 515
(h) The Comptroller, in consultation with the Health Care Cost 516
Containment Committee, shall: 517
(1) Develop and implement patient-centered medical homes for the 518
state employee plan and partnership plans offered under this section, in 519
a manner that will reduce the costs of such plans; and 520
(2) Review claims data of the state employee plan and partnership 521
plans offered under this section, to target high-cost health care 522
providers and medical conditions and monitor costly trends. 523
(i) (1) A nonstate public employer that provides coverage pursuant to 524
a partnership plan to a police officer who is killed in the line of duty 525
shall continue to provide such coverage to the survivors of such officer 526
who were covered under such plan at the time of such officer's death. 527
Such coverage shall continue without break for a period of one year after 528
such officer's death, and may be renewed annually for up to five years. 529
Such nonstate public employer shall facilitate continuation and renewal 530
of such coverage. 531
(2) A nonstate public employer that did not provide coverage 532
pursuant to a partnership plan to a police officer who is killed in the line 533
of duty shall apply for coverage pursuant to a partnership plan for those 534
survivors of such officer who were receiving health care benefit 535
coverage through a plan offered to such officer at the time of such 536
officer's death, at the request of such survivors. The Comptroller shall 537
accept such application upon the terms and conditions applicable to the 538
partnership plan for enrollment and provision of coverage to such 539 Substitute Bill No. 341
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survivors for one year. Such enrollment and coverage may be renewed 540
annually for up to five years. Such nonstate public employer shall 541
facilitate initiation and renewal of such enrollment and coverage. 542
Sec. 5. Section 3-123ccc of the general statutes is repealed and the 543
following is substituted in lieu thereof (Effective July 1, 2024): 544
(a) Nonstate public employers and nonprofit employers may apply 545
for coverage under a partnership plan in accordance with this section. 546
(1) Notwithstanding any provision of the general statutes, initial and 547
continuing participation in a partnership plan by a nonstate public 548
employer shall be a permissive subject of collective bargaining and shall 549
be subject to binding interest arbitration only if the collective bargaining 550
agent and the employer mutually agree to bargain over such 551
participation. 552
(2) If a nonstate public employer or a nonprofit employer submits an 553
application for coverage for all of its respective employees, the 554
Comptroller shall accept such application upon the terms and 555
conditions applicable to the partnership plan, for the next open 556
enrollment. The Comptroller shall provide written notification to such 557
employer of such acceptance and the date on which such coverage shall 558
begin, pending acceptance by such employer of the terms and 559
conditions of such plan. 560
(3) (A) Except as specified in subparagraph (D) of this subdivision, if 561
a nonstate public employer or a nonprofit employer submits an 562
application for coverage for less than all of its respective employees, or 563
indicates in the application the employer will offer other health plans to 564
employees who are offered a partnership plan, the Comptroller shall 565
forward such application to a health care actuary not later than five 566
business days after receiving such application. Not later than sixty days 567
after receiving such application, such actuary shall notify the 568
Comptroller whether, as a result of the employees included in such 569
application or other factors, the application will shift a significant part 570 Substitute Bill No. 341
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of such employer's employees' medical risks to the partnership plan. 571
Such actuary shall provide, in writing, to the Comptroller the specific 572
reasons for such actuary's finding, including a summary of all 573
information relied upon in making such a finding. 574
(B) If the Comptroller determines that, based on such finding, the 575
application will shift a significant part of such employer's employees' 576
medical risks to the partnership plan, the Comptroller shall not provide 577
coverage to such employer and shall provide written notification and 578
the specific reasons for such denial to such employer and the Health 579
Care Cost Containment Committee. 580
(C) If the Comptroller determines that, based on such finding, the 581
application will not shift a significant part of such employer's 582
employees' medical risks to the partnership plan, the Comptroller shall 583
accept such application for the next open enrollment. The Comptroller 584
shall provide written notification to such employer of such acceptance 585
and the date on which such coverage shall begin, pending acceptance 586
by such employer of the terms and conditions of such plan. 587
(D) If an employer included less than all of its employees in its 588
application for coverage because (i) of [(i)] the decision by individual 589
employees to decline coverage from their employer for themselves or 590
their dependents, [or] (ii) of the employer's decision not to offer 591
coverage to temporary, part-time or durational employees, or (iii) the 592
application is made pursuant to subdivision (2) of subsection (i) of 593
section 3-123bbb, as amended by this act, the Comptroller shall not 594
forward such employer's application to a health care actuary. 595
(b) The Comptroller shall consult with a health care actuary who shall 596
develop: 597
(1) Actuarial standards to assess the shift in medical risks of an 598
employer's employees to a partnership plan. The Comptroller shall 599
present such standards to the Health Care Cost Containment Committee 600
for its review, evaluation and approval prior to the use of such 601 Substitute Bill No. 341
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standards; and 602
(2) Actuarial standards to determine the administrative fees and 603
fluctuating reserves fees set forth in section 3-123eee, as amended by this 604
act, and the amount of premiums or premium equivalent payments to 605
cover anticipated claims and claim reserves. The Comptroller shall 606
present such standards to the Health Care Cost Containment Committee 607
for its review, evaluation and approval prior to the use of such 608
standards. 609
(c) The Comptroller may adopt regulations, in accordance with 610
chapter 54, to establish the procedures and criteria for any reviews or 611
evaluations performed by the Health Care Cost Containment 612
Committee pursuant to subsection (b) of this section or subsection (c) of 613
section 3-123ddd. 614
Sec. 6. Section 3-123eee of the general statutes is repealed and the 615
following is substituted in lieu thereof (Effective July 1, 2024): 616
(a) There is established an account to be known as the "partnership 617
plan premium account", which shall be a separate, nonlapsing account 618
within the General Fund. All premiums paid by employers and their 619
respective employees and retirees for coverage under a partnership plan 620
pursuant to sections 3-123bbb to 3-123ddd, inclusive, as amended by 621
this act, shall be deposited into said account. The account shall be 622
administered by the Comptroller for payment of claims and 623
administrative fees to entities providing coverage or services under 624
partnership plans. 625
(b) The Comptroller may charge each employer participating in a 626
partnership plan an administrative fee calculated on a per member per 627
month basis, in accordance with the actuarial standards developed 628
under subsection (b) of section 3-123ccc, as amended by this act, and 629
subsection (c) of section 3-123ddd. In addition, the Comptroller may 630
charge a fluctuating reserves fee the Comptroller deems necessary and 631
in accordance with the actuarial standards developed under subsection 632 Substitute Bill No. 341
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(b) of section 3-123ccc, as amended by this act, and subsection (c) of 633
section 3-123ddd to ensure adequate claims reserves. 634
(c) (1) Each employer shall pay monthly the amount determined by 635
the Comptroller, pursuant to this section, for coverage of its employees 636
or its employees and retirees, as appropriate, under a partnership plan. 637
An employer may require each covered employee to contribute a 638
portion of the cost of such employee's coverage under the plan, subject 639
to any collective bargaining obligation applicable to such employer, 640
provided no contribution may be required of an individual receiving 641
coverage as described in subsection (i) of section 3-123bbb, as amended 642
by this act. 643
(2) An employer making payments pursuant to subdivision (1) of this 644
subsection for coverage under a partnership plan of an individual or 645
individuals described in subsection (i) of section 3-123bbb, as amended 646
by this act, shall be reimbursed by the Comptroller for the total cost of 647
such payments from the Fallen Officer Fund established pursuant to 648
subsection (b) of section 1 of this act. 649
(d) If any payment due by an employer under this section is not 650
submitted to the Comptroller by the tenth day after the date such 651
payment is due, interest to be paid by such employer shall be added, 652
retroactive to the date such payment was due, at the prevailing rate of 653
interest as determined by the Comptroller. 654
(1) The Comptroller may terminate participation in the partnership 655
plan by a nonprofit employer on the basis of nonpayment of premium 656
or premium equivalent, provided at least ten days' advance notice is 657
given to such employer, which may continue the coverage and avoid 658
the effect of the termination by remitting payment in full at any time 659
prior to the effective date of termination. 660
(2) (A) If a nonstate public employer fails to make premium payments 661
or premium equivalent payments as required by this section, the 662
Comptroller may direct the State Treasurer, or any other officer of the 663 Substitute Bill No. 341
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state who is the custodian of any moneys made available by grant, 664
allocation or appropriation payable to such nonstate public employer, 665
to withhold the payment of such moneys until the amount of the 666
premium or premium equivalent or interest due has been paid to the 667
Comptroller, or until the State Treasurer or such custodial officer 668
determines that arrangements have been made, to the satisfaction of the 669
State Treasurer, for the payment of such premium or premium 670
equivalent and interest. Such moneys shall not be withheld if such 671
withholding will adversely affect the receipt of any federal grant or aid 672
in connection with such moneys. 673
(B) If no grant, allocation or appropriation is payable to such nonstate 674
public employer or is not withheld, pursuant to subparagraph (A) of 675
this subdivision, the Comptroller may terminate participation in a 676
partnership plan by a nonstate public employer on the basis of 677
nonpayment of premium or premium equivalent, provided at least ten 678
days' advance notice is given to such employer, which may continue the 679
coverage and avoid the effect of the termination by remitting payment 680
in full at any time prior to the effective date of termination. 681
(3) The Comptroller may request the Attorney General to bring an 682
action in the superior court for the judicial district of Hartford to recover 683
any premium or premium equivalent, interest costs, paid claim 684
expenses or equitable relief from a terminated employer. 685
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 from passage and
applicable to taxable years
commencing on or after
January 1, 2024
12-701(a)(20)(B)
Sec. 3 July 1, 2024 3-123aaa
Sec. 4 July 1, 2024 3-123bbb
Sec. 5 July 1, 2024 3-123ccc
Sec. 6 July 1, 2024 3-123eee Substitute Bill No. 341
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Statement of Legislative Commissioners:
In Section 1(c)(1), "surviving family" was changed to "surviving family
of a police officer killed in the line of duty" for clarity.
PS Joint Favorable Subst.