Substitute Senate Bill No. 341
Public Act No. 24-27
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
section:
(1) "Dependent child" means a child, whether by blood or adoption,
of a police officer who (A) is under the age of twenty-two and was
dependent on the earnings of such officer at the time of such officer's
death, provided a child shall not be considered dependent if such child
provides more than half of such child's own support, is married or is
legally adopted by another person, or (B) is any age and is physically or
mentally incapacitated and was dependent on the earnings of such
officer at the time of such officer's death.
(2) "Killed in the line of duty" means the death of a police officer while
engaged in the performance of such officer's duties, resulting from an
incident, an accident or violence that caused such death or caused
injuries that were the direct or proximate cause of such officer's death,
including any death that is determined to be occupationally related by
a workers' compensation insurance carrier, an employer to whom a Substitute Senate Bill No. 341
Public Act No. 24-27 2 of 25
certificate of self-insurance has been issued pursuant to section 31-248
of the general statutes or an administrative law judge for workers'
compensation purposes under chapter 568 of the general statutes.
"Killed in the line of duty" does not include the death of a police officer
through such officer's own wanton or wilful act.
(3) "Law enforcement unit" has the same meaning as provided in
section 7-294a of the general statutes.
(4) "Police officer" has the same meaning as provided in section 7-
294a of the general statutes.
(5) "Surviving family" means any person who is a surviving spouse,
surviving dependent child, surviving child who is not a dependent child
or surviving parent of a police officer killed in the line of duty, or a
surviving individual listed on such officer's most recent beneficiary
form on file with such officer's employing law enforcement unit.
(b) There is established a fund to be known as the "Fallen Officer
Fund". The fund may contain any moneys required by law to be
deposited in the fund and shall be held by the Treasurer separate and
apart from all other moneys, funds and accounts. The interest derived
from the investment of the fund shall be credited to the fund. Amounts
in the fund may be expended by the Comptroller for purposes of
payments pursuant to subsection (c) of this section and reimbursement
of municipalities pursuant to subdivision (2) of subsection (c) of section
3-123eee of the general statutes, as amended by this act. Any balance
remaining in the fund at the end of any fiscal year shall be carried
forward in the fund for the fiscal year next succeeding.
(c) (1) After receiving notice, in a form and manner as determined by
the Comptroller, from an individual who is a member of the surviving
family of a police officer who was killed in the line of duty, the
Comptroller shall pay, within available appropriations, a lump sum Substitute Senate Bill No. 341
Public Act No. 24-27 3 of 25
death benefit totaling one hundred thousand dollars from the fund
established in subsection (b) of this section to such surviving family, in
accordance with regulations adopted pursuant to subsection (e) of this
section, provided the surviving family of a police officer killed in the
line of duty shall not receive more than one such lump sum death
benefit. Payments shall be made to surviving families in the order in
which notices are received until the amount in such fund is depleted.
(2) Any payment made pursuant to subdivision (1) of this subsection
shall be in addition to any other benefits for which individuals of such
officer's surviving family are eligible and such payments shall not be
reduced or offset due to any other benefits, including, but not limited to,
workers' compensation or other survivor benefits.
(d) Not later than July 1, 2025, and annually thereafter, the
Comptroller shall submit a report, in accordance with the provisions of
section 11-4a of the general statutes, to the joint standing committee of
the General Assembly having cognizance of matters relating to public
safety and security. Such report shall include a list of all expenditures
made from the fund established by subsection (b) of this section during
the prior year, the current balance of such fund and information
regarding additional amounts needed for such fund.
(e) The Comptroller shall adopt regulations in accordance with the
provisions of chapter 54 of the general statutes to implement the
provisions of this section, including, but not limited to, application
procedures and criteria for awarding grants among individuals who are
members of the surviving family, with priority given to awards that
would benefit a dependent child or children and a spouse who is a
member of the surviving family. The Comptroller may implement
policies and procedures necessary to implement the provisions of this
section while in the process of adopting such regulations, provided
notice of intent to adopt such regulations is published on the
eRegulations System not later than twenty days after the date of Substitute Senate Bill No. 341
Public Act No. 24-27 4 of 25
implementation of such policies and procedures. Any policies and
procedures implemented under this subsection shall be valid until the
time such regulations are adopted.
Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of
section 12-701 of the 2024 supplement to the general statutes is repealed
and the following is substituted in lieu thereof (Effective from passage and
applicable to taxable years commencing on or after January 1, 2024):
(B) There shall be subtracted therefrom:
(i) To the extent properly includable in gross income for federal
income tax purposes, any income with respect to which taxation by any
state is prohibited by federal law;
(ii) To the extent allowable under section 12-718, exempt dividends
paid by a regulated investment company;
(iii) To the extent properly includable in gross income for federal
income tax purposes, the amount of any refund or credit for
overpayment of income taxes imposed by this state, or any other state
of the United States or a political subdivision thereof, or the District of
Columbia;
(iv) To the extent properly includable in gross income for federal
income tax purposes and not otherwise subtracted from federal
adjusted gross income pursuant to clause (x) of this subparagraph in
computing Connecticut adjusted gross income, any tier 1 railroad
retirement benefits;
(v) To the extent any additional allowance for depreciation under
Section 168(k) of the Internal Revenue Code for property placed in
service after September 27, 2017, was added to federal adjusted gross
income pursuant to subparagraph (A)(ix) of this subdivision in
computing Connecticut adjusted gross income, twenty-five per cent of Substitute Senate Bill No. 341
Public Act No. 24-27 5 of 25
such additional allowance for depreciation in each of the four
succeeding taxable years;
(vi) To the extent properly includable in gross income for federal
income tax purposes, any interest income from obligations issued by or
on behalf of the state of Connecticut, any political subdivision thereof,
or public instrumentality, state or local authority, district or similar
public entity created under the laws of the state of Connecticut;
(vii) To the extent properly includable in determining the net gain or
loss from the sale or other disposition of capital assets for federal income
tax purposes, any gain from the sale or exchange of obligations issued
by or on behalf of the state of Connecticut, any political subdivision
thereof, or public instrumentality, state or local authority, district or
similar public entity created under the laws of the state of Connecticut,
in the income year such gain was recognized;
(viii) Any interest on indebtedness incurred or continued to purchase
or carry obligations or securities the interest on which is subject to tax
under this chapter but exempt from federal income tax, to the extent that
such interest on indebtedness is not deductible in determining federal
adjusted gross income and is attributable to a trade or business carried
on by such individual;
(ix) Ordinary and necessary expenses paid or incurred during the
taxable year for the production or collection of income which is subject
to taxation under this chapter but exempt from federal income tax, or
the management, conservation or maintenance of property held for the
production of such income, and the amortizable bond premium for the
taxable year on any bond the interest on which is subject to tax under
this chapter but exempt from federal income tax, to the extent that such
expenses and premiums are not deductible in determining federal
adjusted gross income and are attributable to a trade or business carried
on by such individual; Substitute Senate Bill No. 341
Public Act No. 24-27 6 of 25
(x) (I) For taxable years commencing prior to January 1, 2019, for a
person who files a return under the federal income tax as an unmarried
individual whose federal adjusted gross income for such taxable year is
less than fifty thousand dollars, or as a married individual filing
separately whose federal adjusted gross income for such taxable year is
less than fifty thousand dollars, or for a husband and wife who file a
return under the federal income tax as married individuals filing jointly
whose federal adjusted gross income for such taxable year is less than
sixty thousand dollars or a person who files a return under the federal
income tax as a head of household whose federal adjusted gross income
for such taxable year is less than sixty thousand dollars, an amount
equal to the Social Security benefits includable for federal income tax
purposes;
(II) For taxable years commencing prior to January 1, 2019, for a
person who files a return under the federal income tax as an unmarried
individual whose federal adjusted gross income for such taxable year is
fifty thousand dollars or more, or as a married individual filing
separately whose federal adjusted gross income for such taxable year is
fifty thousand dollars or more, or for a husband and wife who file a
return under the federal income tax as married individuals filing jointly
whose federal adjusted gross income from such taxable year is sixty
thousand dollars or more or for a person who files a return under the
federal income tax as a head of household whose federal adjusted gross
income for such taxable year is sixty thousand dollars or more, an
amount equal to the difference between the amount of Social Security
benefits includable for federal income tax purposes and the lesser of
twenty-five per cent of the Social Security benefits received during the
taxable year, or twenty-five per cent of the excess described in Section
86(b)(1) of the Internal Revenue Code;
(III) For the taxable year commencing January 1, 2019, and each
taxable year thereafter, for a person who files a return under the federal Substitute Senate Bill No. 341
Public Act No. 24-27 7 of 25
income tax as an unmarried individual whose federal adjusted gross
income for such taxable year is less than seventy-five thousand dollars,
or as a married individual filing separately whose federal adjusted gross
income for such taxable year is less than seventy-five thousand dollars,
or for a husband and wife who file a return under the federal income tax
as married individuals filing jointly whose federal adjusted gross
income for such taxable year is less than one hundred thousand dollars
or a person who files a return under the federal income tax as a head of
household whose federal adjusted gross income for such taxable year is
less than one hundred thousand dollars, an amount equal to the Social
Security benefits includable for federal income tax purposes; and
(IV) For the taxable year commencing January 1, 2019, and each
taxable year thereafter, for a person who files a return under the federal
income tax as an unmarried individual whose federal adjusted gross
income for such taxable year is seventy-five thousand dollars or more,
or as a married individual filing separately whose federal adjusted gross
income for such taxable year is seventy-five thousand dollars or more,
or for a husband and wife who file a return under the federal income tax
as married individuals filing jointly whose federal adjusted gross
income from such taxable year is one hundred thousand dollars or more
or for a person who files a return under the federal income tax as a head
of household whose federal adjusted gross income for such taxable year
is one hundred thousand dollars or more, an amount equal to the
difference between the amount of Social Security benefits includable for
federal income tax purposes and the lesser of twenty-five per cent of the
Social Security benefits received during the taxable year, or twenty-five
per cent of the excess described in Section 86(b)(1) of the Internal
Revenue Code;
(xi) To the extent properly includable in gross income for federal
income tax purposes, any amount rebated to a taxpayer pursuant to
section 12-746; Substitute Senate Bill No. 341
Public Act No. 24-27 8 of 25
(xii) To the extent properly includable in the gross income for federal
income tax purposes of a designated beneficiary, any distribution to
such beneficiary from any qualified state tuition program, as defined in
Section 529(b) of the Internal Revenue Code, established and
maintained by this state or any official, agency or instrumentality of the
state;
(xiii) To the extent allowable under section 12-701a, contributions to
accounts established pursuant to any qualified state tuition program, as
defined in Section 529(b) of the Internal Revenue Code, established and
maintained by this state or any official, agency or instrumentality of the
state;
(xiv) To the extent properly includable in gross income for federal
income tax purposes, the amount of any Holocaust victims' settlement
payment received in the taxable year by a Holocaust victim;
(xv) To the extent properly includable in the gross income for federal
income tax purposes of a designated beneficiary, as defined in section
3-123aa, interest, dividends or capital gains earned on contributions to
accounts established for the designated beneficiary pursuant to the
Connecticut Homecare Option Program for the Elderly established by
sections 3-123aa to 3-123ff, inclusive;
(xvi) To the extent properly includable in gross income for federal
income tax purposes, any income received from the United States
government as retirement pay for a retired member of (I) the Armed
Forces of the United States, as defined in Section 101 of Title 10 of the
United States Code, or (II) the National Guard, as defined in Section 101
of Title 10 of the United States Code;
(xvii) To the extent properly includable in gross income for federal
income tax purposes for the taxable year, any income from the discharge
of indebtedness in connection with any reacquisition, after December Substitute Senate Bill No. 341
Public Act No. 24-27 9 of 25
31, 2008, and before January 1, 2011, of an applicable debt instrument or
instruments, as those terms are defined in Section 108 of the Internal
Revenue Code, as amended by Section 1231 of the American Recovery
and Reinvestment Act of 2009, to the extent any such income was added
to federal adjusted gross income pursuant to subparagraph (A)(xi) of
this subdivision in computing Connecticut adjusted gross income for a
preceding taxable year;
(xviii) To the extent not deductible in determining federal adjusted
gross income, the amount of any contribution to a manufacturing
reinvestment account established pursuant to section 32-9zz in the
taxable year that such contribution is made;
(xix) To the extent properly includable in gross income for federal
income tax purposes, (I) for the taxable year commencing January 1,
2015, ten per cent of the income received from the state teachers'
retirement system, (II) for the taxable years commencing January 1,
2016, to January 1, 2020, inclusive, twenty-five per cent of the income
received from the state teachers' retirement system, and (III) for the
taxable year commencing January 1, 2021, and each taxable year
thereafter, fifty per cent of the income received from the state teachers'
retirement system or, for a taxpayer whose federal adjusted gross
income does not exceed the applicable threshold under clause (xx) of
this subparagraph, the percentage pursuant to said clause of the income
received from the state teachers' retirement system, whichever
deduction is greater;
(xx) To the extent properly includable in gross income for federal
income tax purposes, except for retirement benefits under clause (iv) of
this subparagraph and retirement pay under clause (xvi) of this
subparagraph, for a person who files a return under the federal income
tax as an unmarried individual whose federal adjusted gross income for
such taxable year is less than seventy-five thousand dollars, or as a
married individual filing separately whose federal adjusted gross Substitute Senate Bill No. 341
Public Act No. 24-27 10 of 25
income for such taxable year is less than seventy-five thousand dollars,
or as a head of household whose federal adjusted gross income for such
taxable year is less than seventy-five thousand dollars, or for a husband
and wife who file a return under the federal income tax as married
individuals filing jointly whose federal adjusted gross income for such
taxable year is less than one hundred thousand dollars, (I) for the taxable
year commencing January 1, 2019, fourteen per cent of any pension or
annuity income, (II) for the taxable year commencing January 1, 2020,
twenty-eight per cent of any pension or annuity income, (III) for the
taxable year commencing January 1, 2021, forty-two per cent of any
pension or annuity income, and (IV) for the taxable years commencing
January 1, 2022, and January 1, 2023, one hundred per cent of any
pension or annuity income;
(xxi) To the extent properly includable in gross income for federal
income tax purposes, except for retirement benefits under clause (iv) of
this subparagraph and retirement pay under clause (xvi) of this
subparagraph, any pension or annuity income for the taxable year
commencing on or after January 1, 2024, and each taxable year
thereafter, in accordance with the following schedule, for a person who
files a return under the federal income tax as an unmarried individual
whose federal adjusted gross income for such taxable year is less than
one hundred thousand dollars, or as a married individual filing
separately whose federal adjusted gross income for such taxable year is
less than one hundred thousand dollars, or as a head of household
whose federal adjusted gross income for such taxable year is less than
one hundred thousand dollars:
Federal Adjusted Gross Income Deduction
Less than $75,000 100.0%
$75,000 but not over $77,499 85.0%
$77,500 but not over $79,999 70.0%
$80,000 but not over $82,499 55.0%
$82,500 but not over $84,999 40.0% Substitute Senate Bill No. 341
Public Act No. 24-27 11 of 25
$85,000 but not over $87,499 25.0%
$87,500 but not over $89,999 10.0%
$90,000 but not over $94,999 5.0%
$95,000 but not over $99,999 2.5%
$100,000 and over 0.0%
(xxii) To the extent properly includable in gross income for federal
income tax purposes, except for retirement benefits under clause (iv) of
this subparagraph and retirement pay under clause (xvi) of this
subparagraph, any pension or annuity income for the taxable year
commencing on or after January 1, 2024, and each taxable year
thereafter, in accordance with the following schedule for married
individuals who file a return under the federal income tax as married
individuals filing jointly whose federal adjusted gross income for such
taxable year is less than one hundred fifty thousand dollars:
Federal Adjusted Gross Income Deduction
Less than $100,000 100.0%
$100,000 but not over $104,999 85.0%
$105,000 but not over $109,999 70.0%
$110,000 but not over $114,999 55.0%
$115,000 but not over $119,999 40.0%
$120,000 but not over $124,999 25.0%
$125,000 but not over $129,999 10.0%
$130,000 but not over $139,999 5.0%
$140,000 but not over $149,999 2.5%
$150,000 and over 0.0%
(xxiii) The amount of lost wages and medical, travel and housing
expenses, not to exceed ten thousand dollars in the aggregate, incurred
by a taxpayer during the taxable year in connection with the donation
to another person of an organ for organ transplantation occurring on or
after January 1, 2017;
(xxiv) To the extent properly includable in gross income for federal
income tax purposes, the amount of any financial assistance received Substitute Senate Bill No. 341
Public Act No. 24-27 12 of 25
from the Crumbling Foundations Assistance Fund or paid to or on
behalf of the owner of a residential building pursuant to sections 8-442
and 8-443;
(xxv) To the extent properly includable in gross income for federal
income tax purposes, the amount calculated pursuant to subsection (b)
of section 12-704g for income received by a general partner of a venture
capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to
time;
(xxvi) To the extent any portion of a deduction under Section 179 of
the Internal Revenue Code was added to federal adjusted gross income
pursuant to subparagraph (A)(xiv) of this subdivision in computing
Connecticut adjusted gross income, twenty-five per cent of such
disallowed portion of the deduction in each of the four succeeding
taxable years;
(xxvii) To the extent properly includable in gross income for federal
income tax purposes, for a person who files a return under the federal
income tax as an unmarried individual whose federal adjusted gross
income for such taxable year is less than seventy-five thousand dollars,
or as a married individual filing separately whose federal adjusted gross
income for such taxable year is less than seventy-five thousand dollars,
or as a head of household whose federal adjusted gross income for such
taxable year is less than seventy-five thousand dollars, or for a husband
and wife who file a return under the federal income tax as married
individuals filing jointly whose federal adjusted gross income for such
taxable year is less than one hundred thousand dollars, for the taxable
year commencing January 1, 2023, twenty-five per cent of any
distribution from an individual retirement account other than a Roth
individual retirement account;
(xxviii) To the extent properly includable in gross income for federal
income tax purposes, for a person who files a return under the federal Substitute Senate Bill No. 341
Public Act No. 24-27 13 of 25
income tax as an unmarried individual whose federal adjusted gross
income for such taxable year is less than one hundred thousand dollars,
or as a married individual filing separately whose federal adjusted gross
income for such taxable year is less than one hundred thousand dollars,
or as a head of household whose federal adjusted gross income for such
taxable year is less than one hundred thousand dollars, (I) for the taxable
year commencing January 1, 2024, fifty per cent of any distribution from
an individual retirement account other than a Roth individual
retirement account, (II) for the taxable year commencing January 1, 2025,
seventy-five per cent of any distribution from an individual retirement
account other than a Roth individual retirement account, and (III) for
the taxable year commencing January 1, 2026, and each taxable year
thereafter, any distribution from an individual retirement account other
than a Roth individual retirement account. The subtraction under this
clause shall be made in accordance with the following schedule:
Federal Adjusted Gross Income Deduction
Less than $75,000 100.0%
$75,000 but not over $77,499 85.0%
$77,500 but not over $79,999 70.0%
$80,000 but not over $82,499 55.0%
$82,500 but not over $84,999 40.0%
$85,000 but not over $87,499 25.0%
$87,500 but not over $89,999 10.0%
$90,000 but not over $94,999 5.0%
$95,000 but not over $99,999 2.5%
$100,000 and over 0.0%
(xxix) To the extent properly includable in gross income for federal
income tax purposes, for married individuals who file a return under
the federal income tax as married individuals filing jointly whose
federal adjusted gross income for such taxable year is less than one
hundred fifty thousand dollars, (I) for the taxable year commencing
January 1, 2024, fifty per cent of any distribution from an individual Substitute Senate Bill No. 341
Public Act No. 24-27 14 of 25
retirement account other than a Roth individual retirement account, (II)
for the taxable year commencing January 1, 2025, seventy-five per cent
of any distribution from an individual retirement account other than a
Roth individual retirement account, and (III) for the taxable year
commencing January 1, 2026, and each taxable year thereafter, any
distribution from an individual retirement account other than a Roth
individual retirement account. The subtraction under this clause shall
be made in accordance with the following schedule:
Federal Adjusted Gross Income Deduction
Less than $100,000 100.0%
$100,000 but not over $104,999 85.0%
$105,000 but not over $109,999 70.0%
$110,000 but not over $114,999 55.0%
$115,000 but not over $119,999 40.0%
$120,000 but not over $124,999 25.0%
$125,000 but not over $129,999 10.0%
$130,000 but not over $139,999 5.0%
$140,000 but not over $149,999 2.5%
$150,000 and over 0.0%
(xxx) To the extent properly includable in gross income for federal
income tax purposes, for the taxable year commencing January 1, 2022,
the amount or amounts paid or otherwise credited to any eligible
resident of this state under (I) the 2020 Earned Income Tax Credit
enhancement program from funding allocated to the state through the
Coronavirus Relief Fund established under the Coronavirus Aid, Relief,
and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned
Income Tax Credit enhancement program from funding allocated to the
state pursuant to Section 9901 of Subtitle M of Title IX of the American
Rescue Plan Act of 2021, P.L. 117-2;
(xxxi) For the taxable year commencing January 1, 2023, and each
taxable year thereafter, for a taxpayer licensed under the provisions of
chapter 420f or 420h, the amount of ordinary and necessary expenses Substitute Senate Bill No. 341
Public Act No. 24-27 15 of 25
that would be eligible to be claimed as a deduction for federal income
tax purposes under Section 162(a) of the Internal Revenue Code but that
are disallowed under Section 280E of the Internal Revenue Code
because marijuana is a controlled substance under the federal
Controlled Substance Act;
(xxxii) To the extent properly includable in gross income for federal
income tax purposes, for the taxable year commencing on or after
January 1, 2025, and each taxable year thereafter, any common stock
received by the taxpayer during the taxable year under a share plan, as
defined in section 12-217ss;
(xxxiii) To the extent properly includable in gross income for federal
income tax purposes, the amount of any student loan reimbursement
payment received by a taxpayer pursuant to section 10a-19m; [and]
(xxxiv) Contributions to an ABLE account established pursuant to
sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for
each individual taxpayer or ten thousand dollars for taxpayers filing a
joint return; and
(xxxv) To the extent properly includable in gross income for federal
income tax purposes, the amount of any payment received pursuant to
subsection (c) of section 1 of this act.
Sec. 3. Section 3-123aaa of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
As used in this section and sections 3-123bbb to 3-123hhh, inclusive,
as amended by this act:
(1) "Health Care Cost Containment Committee" means the committee
established in accordance with the ratified agreement between the state
and the State Employees Bargaining Agent Coalition pursuant to
subsection (f) of section 5-278. Substitute Senate Bill No. 341
Public Act No. 24-27 16 of 25
(2) "Killed in the line of duty" has the same meaning as provided in
section 1 of this act.
[(2)] (3) "Nonprofit employee" means any employee of a nonprofit
employer.
[(3)] (4) "Nonprofit employer" means (A) a nonprofit corporation,
organized under 26 USC 501, as amended from time to time, that (i) has
a purchase of service contract, as defined in section 4-70b, or (ii) receives
fifty per cent or more of its gross annual revenue from grants or funding
from the state, the federal government or a municipality or any
combination thereof, or (B) an organization that is tax exempt pursuant
to 26 USC 501(c)(5), as amended from time to time.
[(4)] (5) "Nonstate public employee" means any employee or elected
officer of a nonstate public employer.
[(5)] (6) "Nonstate public employer" means a municipality or other
political subdivision of the state, including a board of education, quasi-
public agency or public library. A municipality and a board of education
may be considered separate employers.
[(6)] (7) "Partnership plan" means a health care benefit plan offered
by the Comptroller to (A) nonstate public employers or nonprofit
employers pursuant to section 3-123bbb, as amended by this act, (B)
graduate assistants at The University of Connecticut and The University
of Connecticut Health Center, (C) postdoctoral trainees at The
University of Connecticut and The University of Connecticut Health
Center, (D) graduate fellows at The University of Connecticut and The
University of Connecticut Health Center, and (E) graduate students of
The University of Connecticut participating in university-funded
internships as part of their graduate program.
(8) "Police officer" has the same meaning as provided in section 7-
294a. Substitute Senate Bill No. 341
Public Act No. 24-27 17 of 25
[(7)] (9) "State employee plan" means a self-insured group health care
benefits plan established under subsection (m) of section 5-259.
Sec. 4. Section 3-123bbb of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
(a) (1) Notwithstanding the provisions of title 38a, the Comptroller
shall offer to nonstate public employers and nonprofit employers, and
their respective retirees, if applicable, coverage under a partnership plan
or plans. Such plan or plans may be offered on a fully-insured or risk-
pooled basis at the discretion of the Comptroller. Any health insurer,
health care center or other entity that contracts with the Comptroller for
the purposes of this section and any fully-insured plan offered by the
Comptroller under such contract shall be subject to title 38a. Eligible
employers shall submit an application to the Comptroller for coverage
under any such plan or plans.
(2) Beginning January 1, 2012, the Comptroller shall offer coverage
under such plan or plans to nonstate public employers. Beginning
January 1, 2013, the Comptroller shall offer coverage under such plan or
plans to nonprofit employers.
(b) (1) The Comptroller shall require nonstate public employers and
nonprofit employers that elect to obtain coverage under a partnership
plan to participate in such plan for not less than two-year intervals,
except participation pursuant to an application described in subdivision
(2) of subsection (i) of this section may be for one-year intervals. An
employer may apply for renewal prior to the expiration of each interval.
(2) The Comptroller shall develop procedures by which:
(A) Such employers may apply to obtain coverage under a
partnership plan, including procedures for nonstate public employers
that are currently fully insured and procedures for nonstate public
employers that are currently self-insured; Substitute Senate Bill No. 341
Public Act No. 24-27 18 of 25
(B) Employers receiving coverage for their employees pursuant to a
partnership plan may (i) apply for renewal, or (ii) withdraw from such
coverage, including, but not limited to, the terms and conditions under
which such employers may withdraw prior to the expiration of the
interval and the procedure by which any premium payments such
employers may be entitled to or premium equivalent payments made in
excess of incurred claims shall be refunded to such employer. Any such
procedures shall provide that nonstate public employees covered by
collective bargaining shall withdraw from such coverage in accordance
with chapters 113 and 166; [and]
(C) Nonstate public employers may continue and renew coverage
pursuant to subdivision (1) of subsection (i) of this section and initiate
and renew enrollment and coverage pursuant to subdivision (2) of
subsection (i) of this section; and
[(C)] (D) The Comptroller may collect payments and fees for
unreported claims and expenses.
(c) (1) The initial open enrollment for nonstate public employers shall
be for coverage beginning July 1, 2012. Thereafter, open enrollment for
nonstate public employers shall be for coverage periods beginning July
first.
(2) The initial open enrollment for nonprofit employers shall be for
coverage beginning January 1, 2013. Thereafter, open enrollment for
nonprofit employers shall be for coverage periods beginning January
first and July first.
(d) Nothing in this section or sections 3-123ccc, as amended by this
act, and 3-123ddd shall require the Comptroller to offer coverage to
every employer seeking coverage under sections 3-123ccc, as amended
by this act, and 3-123ddd from every partnership plan offered by the
Comptroller. Substitute Senate Bill No. 341
Public Act No. 24-27 19 of 25
(e) The Comptroller shall create applications for coverage for the
purposes of sections 3-123ccc, as amended by this act, and 3-123ddd and
for renewal of a partnership plan. Such applications shall require an
employer to disclose whether the employer will offer any other health
care benefits plan to the employees who are offered a partnership plan.
(f) No employee shall be enrolled in a partnership plan if such
employee is covered through such employee's employer by health
insurance plans or insurance arrangements issued to or in accordance
with a trust established pursuant to collective bargaining subject to the
federal Labor Management Relations Act.
(g) (1) The Comptroller shall take such actions as are necessary to
ensure that granting coverage to an employer under sections 3-123ccc,
as amended by this act, and 3-123ddd will not affect the status of the
state employee plan as a governmental plan under the Employee
Retirement Income Security Act of 1974, as amended from time to time.
Such actions may include, but are not limited to, cancelling coverage,
with notice, to such employer and discontinuing the acceptance of
applications for coverage from nonprofit employers. The Comptroller
shall establish the form and time frame for the notice of cancellation to
be provided to such employer.
(2) The Comptroller shall resume providing coverage for, or
accepting applications for coverage from, nonprofit employers if the
Comptroller determines that granting coverage to such employers will
not affect the state employee plan's status as a governmental plan under
the Employee Retirement Income Security Act of 1974, as amended from
time to time.
(3) The Comptroller shall make a public announcement of the
Comptroller's decision to discontinue or resume coverage or the
acceptance of applications for coverage under a partnership plan or
plans. Substitute Senate Bill No. 341
Public Act No. 24-27 20 of 25
(h) The Comptroller, in consultation with the Health Care Cost
Containment Committee, shall:
(1) Develop and implement patient-centered medical homes for the
state employee plan and partnership plans offered under this section, in
a manner that will reduce the costs of such plans; and
(2) Review claims data of the state employee plan and partnership
plans offered under this section, to target high-cost health care
providers and medical conditions and monitor costly trends.
(i) (1) A nonstate public employer that provides coverage pursuant to
a partnership plan to a police officer who is killed in the line of duty
shall continue to provide such coverage to the survivors of such officer
who were covered under such plan at the time of such officer's death.
Such coverage shall continue without break for a period of one year after
such officer's death, and may be renewed annually for up to five years.
Such nonstate public employer shall facilitate continuation and renewal
of such coverage.
(2) A nonstate public employer that did not provide coverage
pursuant to a partnership plan to a police officer who is killed in the line
of duty shall apply for coverage pursuant to a partnership plan for those
survivors of such officer who were receiving health care benefit
coverage through a plan offered to such officer at the time of such
officer's death, at the request of such survivors. The Comptroller shall
accept such application upon the terms and conditions applicable to the
partnership plan for enrollment and provision of coverage to such
survivors for one year. Such enrollment and coverage may be renewed
annually for up to five years. Such nonstate public employer shall
facilitate initiation and renewal of such enrollment and coverage.
Sec. 5. Section 3-123ccc of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024): Substitute Senate Bill No. 341
Public Act No. 24-27 21 of 25
(a) Nonstate public employers and nonprofit employers may apply
for coverage under a partnership plan in accordance with this section.
(1) Notwithstanding any provision of the general statutes, initial and
continuing participation in a partnership plan by a nonstate public
employer shall be a permissive subject of collective bargaining and shall
be subject to binding interest arbitration only if the collective bargaining
agent and the employer mutually agree to bargain over such
participation.
(2) If a nonstate public employer or a nonprofit employer submits an
application for coverage for all of its respective employees, the
Comptroller shall accept such application upon the terms and
conditions applicable to the partnership plan, for the next open
enrollment. The Comptroller shall provide written notification to such
employer of such acceptance and the date on which such coverage shall
begin, pending acceptance by such employer of the terms and
conditions of such plan.
(3) (A) Except as specified in subparagraph (D) of this subdivision, if
a nonstate public employer or a nonprofit employer submits an
application for coverage for less than all of its respective employees, or
indicates in the application the employer will offer other health plans to
employees who are offered a partnership plan, the Comptroller shall
forward such application to a health care actuary not later than five
business days after receiving such application. Not later than sixty days
after receiving such application, such actuary shall notify the
Comptroller whether, as a result of the employees included in such
application or other factors, the application will shift a significant part
of such employer's employees' medical risks to the partnership plan.
Such actuary shall provide, in writing, to the Comptroller the specific
reasons for such actuary's finding, including a summary of all
information relied upon in making such a finding. Substitute Senate Bill No. 341
Public Act No. 24-27 22 of 25
(B) If the Comptroller determines that, based on such finding, the
application will shift a significant part of such employer's employees'
medical risks to the partnership plan, the Comptroller shall not provide
coverage to such employer and shall provide written notification and
the specific reasons for such denial to such employer and the Health
Care Cost Containment Committee.
(C) If the Comptroller determines that, based on such finding, the
application will not shift a significant part of such employer's
employees' medical risks to the partnership plan, the Comptroller shall
accept such application for the next open enrollment. The Comptroller
shall provide written notification to such employer of such acceptance
and the date on which such coverage shall begin, pending acceptance
by such employer of the terms and conditions of such plan.
(D) If an employer included less than all of its employees in its
application for coverage because (i) of [(i)] the decision by individual
employees to decline coverage from their employer for themselves or
their dependents, [or] (ii) of the employer's decision not to offer
coverage to temporary, part-time or durational employees, or (iii) the
application is made pursuant to subdivision (2) of subsection (i) of
section 3-123bbb, as amended by this act, the Comptroller shall not
forward such employer's application to a health care actuary.
(b) The Comptroller shall consult with a health care actuary who shall
develop:
(1) Actuarial standards to assess the shift in medical risks of an
employer's employees to a partnership plan. The Comptroller shall
present such standards to the Health Care Cost Containment Committee
for its review, evaluation and approval prior to the use of such
standards; and
(2) Actuarial standards to determine the administrative fees and Substitute Senate Bill No. 341
Public Act No. 24-27 23 of 25
fluctuating reserves fees set forth in section 3-123eee, as amended by this
act, and the amount of premiums or premium equivalent payments to
cover anticipated claims and claim reserves. The Comptroller shall
present such standards to the Health Care Cost Containment Committee
for its review, evaluation and approval prior to the use of such
standards.
(c) The Comptroller may adopt regulations, in accordance with
chapter 54, to establish the procedures and criteria for any reviews or
evaluations performed by the Health Care Cost Containment
Committee pursuant to subsection (b) of this section or subsection (c) of
section 3-123ddd.
Sec. 6. Section 3-123eee of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
(a) There is established an account to be known as the "partnership
plan premium account", which shall be a separate, nonlapsing account
within the General Fund. All premiums paid by employers and their
respective employees and retirees for coverage under a partnership plan
pursuant to sections 3-123bbb to 3-123ddd, inclusive, as amended by
this act, shall be deposited into said account. The account shall be
administered by the Comptroller for payment of claims and
administrative fees to entities providing coverage or services under
partnership plans.
(b) The Comptroller may charge each employer participating in a
partnership plan an administrative fee calculated on a per member per
month basis, in accordance with the actuarial standards developed
under subsection (b) of section 3-123ccc, as amended by this act, and
subsection (c) of section 3-123ddd. In addition, the Comptroller may
charge a fluctuating reserves fee the Comptroller deems necessary and
in accordance with the actuarial standards developed under subsection
(b) of section 3-123ccc, as amended by this act, and subsection (c) of Substitute Senate Bill No. 341
Public Act No. 24-27 24 of 25
section 3-123ddd to ensure adequate claims reserves.
(c) (1) Each employer shall pay monthly the amount determined by
the Comptroller, pursuant to this section, for coverage of its employees
or its employees and retirees, as appropriate, under a partnership plan.
An employer may require each covered employee to contribute a
portion of the cost of such employee's coverage under the plan, subject
to any collective bargaining obligation applicable to such employer,
provided no contribution may be required of an individual receiving
coverage as described in subsection (i) of section 3-123bbb, as amended
by this act.
(2) An employer making payments pursuant to subdivision (1) of this
subsection for coverage under a partnership plan of an individual or
individuals described in subsection (i) of section 3-123bbb, as amended
by this act, shall be reimbursed by the Comptroller for the total cost of
such payments from the Fallen Officer Fund established pursuant to
subsection (b) of section 1 of this act.
(d) If any payment due by an employer under this section is not
submitted to the Comptroller by the tenth day after the date such
payment is due, interest to be paid by such employer shall be added,
retroactive to the date such payment was due, at the prevailing rate of
interest as determined by the Comptroller.
(1) The Comptroller may terminate participation in the partnership
plan by a nonprofit employer on the basis of nonpayment of premium
or premium equivalent, provided at least ten days' advance notice is
given to such employer, which may continue the coverage and avoid
the effect of the termination by remitting payment in full at any time
prior to the effective date of termination.
(2) (A) If a nonstate public employer fails to make premium payments
or premium equivalent payments as required by this section, the Substitute Senate Bill No. 341
Public Act No. 24-27 25 of 25
Comptroller may direct the State Treasurer, or any other officer of the
state who is the custodian of any moneys made available by grant,
allocation or appropriation payable to such nonstate public employer,
to withhold the payment of such moneys until the amount of the
premium or premium equivalent or interest due has been paid to the
Comptroller, or until the State Treasurer or such custodial officer
determines that arrangements have been made, to the satisfaction of the
State Treasurer, for the payment of such premium or premium
equivalent and interest. Such moneys shall not be withheld if such
withholding will adversely affect the receipt of any federal grant or aid
in connection with such moneys.
(B) If no grant, allocation or appropriation is payable to such nonstate
public employer or is not withheld, pursuant to subparagraph (A) of
this subdivision, the Comptroller may terminate participation in a
partnership plan by a nonstate public employer on the basis of
nonpayment of premium or premium equivalent, provided at least ten
days' advance notice is given to such employer, which may continue the
coverage and avoid the effect of the termination by remitting payment
in full at any time prior to the effective date of termination.
(3) The Comptroller may request the Attorney General to bring an
action in the superior court for the judicial district of Hartford to recover
any premium or premium equiva lent, interest costs, paid claim
expenses or equitable relief from a terminated employer.