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General Assembly Raised Bill No. 1461
January Session, 2025
LCO No. 4925
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING THE TREASURER'S RECOMMENDATION
FOR THE PAYDOWN OF SPECIAL TAX OBLIGATION
INDEBTEDNESS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 13b-68 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
(a) There is established a fund to be known as the "Special 3
Transportation Fund". The fund may contain any moneys required or 4
permitted by law to be deposited in the fund and any moneys recovered 5
by the state for overpayments, improper payments or duplicate 6
payments made by the state relating to any transportation infrastructure 7
improvements [which] that have been financed by special tax obligation 8
bonds issued pursuant to sections 13b-74 to 13b-77, inclusive, and shall 9
be held by the Treasurer separate and apart from all other moneys, 10
funds and accounts. Investment earnings credited to the assets of said 11
fund shall become part of the assets of said fund. Any balance remaining 12
in said fund at the end of any fiscal year shall be carried forward in said 13
fund for the fiscal year next succeeding. 14
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(b) The Special Transportation Fund shall be a perpetual fund, the 15
resources of which shall be expended solely for transportation purposes. 16
Such purposes include the payment of debt service on obligations of the 17
state incurred for transportation purposes. All sources of moneys, funds 18
and receipts of the state required to be credited, deposited or transferred 19
to said fund by state law on or after June 30, 2015, shall continue to be 20
credited, deposited or transferred to said fund, so long as the sources of 21
such moneys, funds and receipts are collected or received by the state or 22
any officer thereof. No law shall be enacted authorizing the resources of 23
said fund to be expended other than for transportation purposes. 24
(c) There is established a fund to be known as the "Transportation 25
Grants and Restricted Accounts Fund". Upon certification by the 26
Comptroller and the Secretary of the Office of Policy and Management 27
that the CORE-CT project for fiscal services is operational, the fund shall 28
contain all transportation moneys that are restricted, not available for 29
general use and previously accounted for in the Special Transportation 30
Fund as "Federal and Other Grants". The Comptroller is authorized to 31
make such transfers as are necessary to provide that, notwithstanding 32
any provision of the general statutes, all transportation moneys that are 33
restricted and not available for general use are in the Transportation 34
Grants and Restricted Accounts Fund. 35
(d) (1) For the fiscal year ending June 30, 2025, and each fiscal year 36
thereafter, after the accounts for the Special Transportation Fund have 37
been closed for each fiscal year and the Comptroller has determined the 38
balance remaining in said fund, after any amounts required by 39
provision of law to be transferred for other purposes have been 40
deducted, if the balance remaining exceeds eighteen per cent of the net 41
Special Transportation Fund appropriations for the current fiscal year, 42
the portion of the balance exceeding said eighteen per cent shall be 43
deemed to be appropriated for the following, as selected by the 44
Treasurer: 45
(A) Redeeming prior to maturity any outstanding special tax 46
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obligation indebtedness of the state selected by the Treasurer in the best 47
interests of the state; 48
(B) Purchasing outstanding special tax obligation indebtedness of the 49
state in the open market at such prices and on such terms and conditions 50
as the Treasurer determines to be in the best interests of the state for the 51
purpose of extinguishing or defeasing such debt; 52
(C) Providing for the defeasance of any outstanding special tax 53
obligation indebtedness of the state selected by the Treasurer in the best 54
interests of the state by irrevocably placing with an escrow agent in trust 55
an amount used solely for, and sufficient to satisfy, scheduled payments 56
of both interest and principal on such indebtedness; or 57
(D) Any combination of these methods. 58
(2) For any method or combination of methods selected by the 59
Treasurer pursuant to subdivision (1) of this subsection, (A) such 60
method or combination of methods shall provide a reduction in 61
projected debt service for the current fiscal year and each of the nine 62
subsequent fiscal years, and (B) for the second fiscal year after the fiscal 63
year in which the balance was used in accordance with the provisions 64
of this subsection and each of the seven subsequent fiscal years, the 65
amount of the reduction in projected debt service shall not vary by more 66
than (i) one million dollars, or (ii) ten per cent of the least amount by 67
which projected debt service is reduced for the seven subsequent fiscal 68
years, whichever is greater. 69
(3) The Treasurer shall include in the annual report required under 70
section 3-37, as amended by this act, information concerning the use of 71
a portion of the balance of the Special Transportation Fund pursuant to 72
this subsection. 73
Sec. 2. Section 3-37 of the general statutes is repealed and the 74
following is substituted in lieu thereof (Effective from passage): 75
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(a) The Treasurer shall, annually, on or before December thirty-first, 76
submit a final audited report to the Governor and a copy of such report 77
to the Investment Advisory Council, which shall include the following 78
information concerning the activities of the office of the State Treasurer 79
for the immediately preceding fiscal year ending June thirtieth: 80
(1) Complete financial statements and accompanying footnotes for 81
the combined investment funds prepared in accordance with generally 82
accepted accounting principles, which financial statements shall be 83
audited in accordance with generally accepted auditing standards and 84
supplementary schedules depicting the interests of the component 85
retirement plans and trust funds; 86
(2) [complete] Complete financial statements and accompanying 87
footnotes for the Short Term Investment Fund prepared in accordance 88
with generally accepted accounting principles and supplementary 89
schedules listing all assets held by the Short Term Investment Fund; 90
(3) [a] A discussion and review of the performance of the combined 91
investment funds and Short Term Investment Fund for such fiscal year 92
in accordance with recognized and appropriate performance 93
presentation and disclosure, including an analysis of the return earned 94
by the portfolio and each combined investment fund as well as the risk 95
profile of the portfolio and each combined investment fund according 96
to investment industry standards; 97
(4) [the] The activities and transactions in such reasonable detail as is 98
appropriate of the cash management division including information on 99
the state's cash receipts and disbursements for the fiscal year, and the 100
debt management division; 101
(5) [financial] Financial statements and accompanying footnotes as 102
well as a summary of operating results for the Second Injury Fund for 103
such fiscal year; 104
(6) [a] A financial summary and report on the activities of the state's 105
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unclaimed property program for such fiscal year; 106
(7) For a fiscal year in which the Treasurer used a portion of the 107
remaining balance of the Special Transportation Fund in accordance 108
with the provisions of subsection (d) of section 13b-68, as amended by 109
this act, a report on the amount used and the method or methods 110
selected pursuant to said subsection and the amount of the reduction in 111
projected debt service for the specified fiscal years and including a 112
statement that such reduction does not vary by more than the allowable 113
amount set forth in said subsection; 114
[(7) a] (8) A listing of the companies from which state funds were 115
divested based upon such companies' business in Sudan, pursuant to 116
the provisions of section 3-21e, and any companies identified by the 117
Treasurer as companies from which investment of state funds has been 118
declared impermissible by the Treasurer, pursuant to the provisions of 119
section 3-21e; and 120
[(8) such] (9) Such other information as the Treasurer deems of 121
interest to the public. 122
(b) Commencing October 1, 2010, and monthly thereafter, the 123
Treasurer shall submit a report to the chairpersons and ranking 124
members of the joint standing committees of the General Assembly 125
having cognizance of matters relating to finance, revenue and bonding 126
and appropriations and the budgets of state agencies, and to the 127
legislative Office of Fiscal Analysis. Such report shall include the 128
following information for the month two months prior to the month in 129
which the report is submitted: (1) A weekly list of the cash balance, with 130
amount and percentage of sources, such as the common cash pool, bond 131
fund investments and Special Transportation Fund investments, with 132
accompanying footnotes; (2) a year-to-date total, on an ongoing basis, of 133
authorized but unissued bonds, including assumptions in bond 134
issuance, and any changes from month to month in such assumptions; 135
(3) any other debt instruments or commercial paper issued, the types 136
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and amounts, with accompanying footnotes; and (4) the amounts in the 137
common cash fund, with all components, such as bank and different 138
investment accounts, and the amounts thereof separately listed. 139
(c) The reports required pursuant to this section shall be made 140
available to the public in hard copy and accessible electronically by 141
means of the Internet or other media or systems available to the public. 142
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 13b-68
Sec. 2 from passage 3-37
Statement of Purpose:
To dedicate a portion of the remaining balance of the Special
Transportation Fund, for each fiscal year that such balance exceeds a
certain threshold, to pay down special tax obligation indebtedness.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]