HB 5537 — AN ACT ESTABLISHING A WORKING GROUP TO STUDY WAYS TO FUND A UNIVERSAL FREE SCHOOL MEALS PROGRAM.

House of Representatives General Assembly RaisedFile Bill No.

5537643 February Session, 2026 LCOSubstitute House Bill No.

28305537 ReferredHouse toof Representatives, April 15, 2026 The Committee on FINANCE,Finance, REVENUERevenue ANDand BONDINGBonding Introducedreported by:through REP.

(FIN)HORN ANof ACTthe IMPOSING64th ADist., TAXChairperson ONof CERTAINthe SWEETENEDCommittee BEVERAGES,on SYRUPSthe ANDpart POWDERSof ANDthe DEDICATINGHouse, THEthat REVENUEthe GENERATEDsubstitute TObill Aought UNIVERSALto FREEpass. SCHOOL MEALS PROGRAM.

AN ACT ESTABLISHING A WORKING GROUP TO STUDY WAYS TO FUND A UNIVERSAL FREE SCHOOL MEALS PROGRAM.

(NEW) (Effective from passage) (a) AsThere usedis inestablished thisa section:working group to study ways to fund a universal free school meals program that would assist public schools to provide free breakfasts and lunches to all public school students.

The study shall examine (1) "Distributor"the meansamount anyof personfunding thatprojected receives,to stores,be manufacturesrequired orfor distributessuch sweetenedprogram, beverages,(2) syrupspossible sources for funding, including, but not limited to, the imposition of a dedicated tax or powders,fee, (3) the parameters for salethe toestablishment retailersof doingsuch businessprogram inand for disbursement of funds, and (4) any other matters relevant to the state;establishment or funding of such program.

(2)(b) "FruitThe juice"working meansgroupshall consist of (1) the originalchairpersons liquidof resultingthe fromjoint standing committees of the pressingGeneral Assembly having cognizance of fruitsmatters orrelating theto liquidfinance, resultingrevenue fromand thebonding, dilutioneducation, withchildren waterand public health, (2) representatives of dehydratedpublic fruitschools juice;and local or sHB5537 / File No.

(3)643 "Medical1 beverage"sHB5537 meansFile any (A) medical food, as defined in 21 USC 360ee, as amended from time to time, (B) product in liquid form that is (i) designed as oral nutrition therapy for individuals who may have a limited ability to absorb or metabolize dietary nutrients from traditional food or beverages, or (ii) an oral rehydration electrolyte LCO No.

2830643 1regional boards of 8education, Raised(3) Billpublic No.5537health solution to prevent or treatnutrition dehydration,experts, and (C)(4) productany soldother inindividuals liquidor formentities thatthe ischairpersons designeddeem asdesirable supplemental, meal replacement or sole-sourcenecessary nutritionto andcarry includesout proteins,the carbohydratesprovisions andof multiplethis vitaminssection. and minerals;

(4)The "Milk-basedmembers beverage"set meansforth anyin nonalcoholicsubdivisions beverage(2) thatto contains(4), atinclusive, leastof fiftythis persubsection centshall dairybe ingredientsappointed by volume,the includingchairpersons milk,of cream,the yogurt,joint kefirstanding orcommittee otherof dairy-derivedthe products,General regardlessAssembly having cognizance of butterfatmatters contentrelating orto addedfinance, sugar,revenue nonnutritiveand sweetenerbonding, ornot otherlater flavoring.than thirty days after the effective date of this section.

"Milk-based(c) beverage"The includeschairpersons dairyof creamer,the milkjoint concentrate,standing whethercommittee orof notthe reconstituted,General Assembly having cognizance of matters relating to finance, revenue and powderedbonding milk,shall whetherserve oras the chairpersons of the working group and shall schedule the first meeting of the working group, which shall be held not reconstituted.later than sixty days after the effective date of this section.

"Milk-based(d) beverage"The doesadministrative notstaff includeof nondairythe milkjoint alternativesstanding orcommittee nondairyof creamers;the General Assembly having cognizance of matters relating to finance, revenue and bonding shall serve as administrative staff of the working group.

(5)(e) "NonalcoholicNot beverage"later meansthan anyJanuary beverage1, that2027, containsthe lessworking thangroup one-halfshall ofsubmit onea perreport centon alcoholits byfindings volume;and recommendations to the General Assembly, inaccordancewiththeprovisionsofsection11-4aofthegeneralstatutes.

(6)The "Nonnutritiveworking sweetener"group meansshall anyterminate substanceon suitablethe fordate human consumption that humansit perceivesubmits assuch sweetreport andor containsJanuary fewer1, thanfive2027, caloriesperwhichever serving,suchasis aspartame,later. acesulfame potassium, neotame, saccharin, sucralose and stevia;

(7) "Person" means any individual, partnership, corporation, limited liability company, association,personalrepresentative,receiver,trustee, assignee or other legal entity;

(8) "Powder" means a dry mixture of ingredients used to make, mix or compound sweetened beverages by combining such mixture with one or more ingredients such as water, ice, syrup, simple syrup, fruits, vegetables, fruit juice, vegetable juice or carbonation or other gas;

(9) "Retailer" means any person that sells or otherwise dispenses sweetened beverages to consumers in the state;

(10) "Sugar" means any monosaccharide or disaccharide sweetener that contains five or more calories per serving, such as cane sugar, beet LCO No.

2830 2 of 8 Raised Bill No.5537 sugar, glucose, fructose, lactose, sucrose, high-fructose corn syrup, honey and fruit juice concentrate;

(11) "Sweetened beverage" means any carbonated or noncarbonated beverage that is intended for human consumption and contains any added sugar or nonnutritive sweetener.

"Sweetened beverage" does not include (A) any beverage that is one hundred per cent fruit juice, one hundred per cent vegetable juice or a combination thereof, (B) any milk- based beverage, (C) water, (D) infant formula, or (E) any medical beverage;

(12) "Syrup" means a liquid mixture of ingredients used to make, mix or compound sweetened beverages by combining such mixture with one or more ingredients such as water, ice, powder, simple syrup, fruits, vegetables, fruit juice, vegetable juice or carbonation or other gas, and includes such mixtures sold in a frozen state;

(13) "Vegetable juice" means the original liquid resulting from the pressing of vegetables or the liquid resulting from the dilution with water of dehydrated vegetable juice;

and (14) "Water" means carbonated or noncarbonated liquid water that is unflavored or is flavored without the use of sugars or nonnutritive sweeteners.

(b) (1) Commencing October 1, 2026, each distributor shall pay a tax on sweetened beverages, syrups and powders sold to a retailer for sale in the state of (A) two cents per fluid ounce of sweetened beverages,and (B)forsyrupsandpowdersintendedforcommercialorinstitutionaluse, two cents per fluid ounce of sweetened beverages that can be produced from each container of syrup or powder, however packaged, calculated as the largest volume of sweetened beverage resulting from the use of such container of syrup or powder in accordance with the manufacturer's instructions.

Any sweetened beverages, syrups and powders subject to the tax shall be taxed only once under this section.

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2830 3 of 8 Raised Bill No.

5537 (2) The tax imposed by this section shall not apply to:

(A) Sales of sweetened beverages, syrups or powders by a distributor to (i) the state or a political subdivision thereof, (ii) the federal government, (iii) a tribal government, (iv) a retailer expressly for resale or consumption outside the state, (v) another distributor, provided the sales invoice clearly indicates the sale is to another distributor, or (vi) a person that is both a distributor and a retailer, provided such person shall pay such tax upon the resale of such product to a retailer or a consumer;

or (B) Sales of syrups and powders packaged to be used by a consumer for personal use.

(c) On or before the last day of the month following each monthly period, each distributor shall file a return with the Department of Revenue Services.

Such return shall be in such form and contain such information as the Commissioner of Revenue Services prescribes as necessary for the administration of the tax under this section and shall be accompanied by a payment of the amount of tax shown to be due thereon.

Each distributor shall file such return electronically with the department and make such payment by electronic funds transfer in the manner provided by chapter 228g of the general statutes.

(d) The commissioner shall deposit the amounts received by the state from the tax imposed by subsection (b) of this section in the universal free school meals account established under section 2 of this act.

(e) The provisions of sections 12-547 to 12-554, inclusive, of the general statutes and section 12-555a of the general statutes shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of said sections had been incorporated in full into this section and had expressly referred to the tax under this section, except to the extent that any such provision is inconsistent with a provision of this section.

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2830 4 of 8 Raised Bill No.5537 (f) The Commissioner of Revenue Services may adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this section and may make rulings, not inconsistent with law, to carry into effect the provisions of this section, which regulations or rulings, when reasonably designed to carry out the intent and purposes of this section, shall be prima facie evidence of its proper interpretation.

(g) At the end of each fiscal year commencing with the fiscal year ending June 30, 2027, the Comptroller is authorizedto record asrevenue for such fiscal year the amount of tax imposed under the provisions of this section on all sweetened beverages, syrups and powders sold prior to the end of such fiscal year and which tax is received by the Commissioner of Revenue Services not later than five business days after the last day of July immediately following the end of such fiscal year.