AN ACT IMPLEMENTING THE TREASURER'S RECOMMENDATIONS CONCERNING THE CONNECTICUT BABY BOND TRUST PROGRAM.
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SB 384 — AN ACT IMPLEMENTING THE TREASURER'S RECOMMENDATIONS CONCERNING THE CONNECTICUT BABY BOND TRUST PROGRAM.
Last action — FILE NO. 615
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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2In Committee
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3Passed Senate
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4Passed House
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5To Executive
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6Enacted
This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
170 added · 47 removed170 line(s) added, 47 removed.
Senate General Assembly SubstituteFile Bill No.
384615 February Session, 2022 ANSubstitute ACTSenate IMPLEMENTINGBill THENo. TREASURER'S RECOMMENDATIONS CONCERNING THE CONNECTICUT BABY BOND TRUST PROGRAM.
384 Senate, April 25, 2022 The Committee on Finance, Revenue and Bonding reported through SEN.
FONFARA of the 1st Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.
AN ACT IMPLEMENTING THE TREASURER'S RECOMMENDATIONS CONCERNING THE CONNECTICUT BABY BOND TRUST PROGRAM.
(b)sSB384 The/ amountsFile onNo. deposit in the trust shall not constitute property of the state and the trust shall not be construed to be a department, institution or agency of the state.
615 1 sSB384 File No.
615 (b) The amounts on deposit in the trust shall not constitute property of the state and the trust shall not be construed to be a department, institution or agency of the state.
Any contract enteredinto by or any obligationofthetrust shallnot constitute adebt orobligationofthestate and the state shall have no obligation to any designated beneficiary or LCOany \\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00384-R1other person on account of 13the SB.docxtrust Substituteand Billall No.amounts obligated to be paid from the trust shall be limited to amounts available for such obligation on deposit in the trust.
384 any other person on account of the trust and all amounts obligated to be paid from the trust shall be limited to amounts available for such obligation on deposit in the trust.
(3)sSB384 Procure/ insuranceFile inNo. connection with the trust's property, assets, activities or deposits to the trust;
615 2 sSB384 File No.
615 (3) Procure insurance in connection with the trust's property, assets, activities or deposits to the trust;
(5) Adopt regulations in accordance with chapter 54 for purposes of LCO[public {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-003842act of21-111] 13sections R01-SB.docx3-36b }to Substitute3-36i, Billinclusive, No.as amended by this act;
384 [public act 21-111] sections 3-36b to 3-36i, inclusive, as amended by this act;
(b) Notwithstanding any provision of the general statutes, no [moneyssSB384 invested/ in]File disbursementsNo. from the trust shall be considered to be an asset for purposes of determining an individual's eligibility for need-based, institutional aid grants offered to an individual at the public eligible educational institutions in the state.
LCO615 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00333 ofsSB384 13File R01-SB.docx } Substitute Bill No.
384615 Sec.[moneys invested in] disbursements from the trust shall be considered to be an asset for purposes of determining an individual's eligibility for need-based, institutional aid grants offered to an individual at the public eligible educational institutions in the state.
Sec.
If a designated beneficiary (1) is deceased before submitting a valid claim, or (2) fails to submit a valid claim, as determined by the Treasurer, before his or her thirtieth birthday, [such accounting] the sum such designated beneficiary was eligible to claim shall be [credited back to thesSB384 assets/ of]File retainedNo. by the trust to credit to designated beneficiaries born in subsequent years.
[(d)]615 (c)4 SubjectsSB384 toFile obtaining adequate consent authorizing the LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-003844 of 13 R01-SB.docx } Substitute Bill No.
384615 disclosurethe ofassets confidentialof] informationretained relatedby to designated beneficiaries in accordance with all applicable state or federal laws, the Treasurertrust and the Department of Social Services shall enter into a memorandum of understanding to establishcredit information sharing practicesinordertocarryoutthepurposesof [publicact21-111]sections 3-36b to 3-36h,designated inclusive,beneficiaries asborn amendedin bysubsequent thisyears. act.
[(d)] (c) Subject to obtaining adequate consent authorizing the disclosure of confidential information related to designated beneficiaries in accordance with all applicable state or federal laws, the Treasurer and the Department of Social Services shall enter into a memorandum of understanding to establish information sharing practicesinordertocarryoutthepurposesof [publicact21-111]sections 3-36b to 3-36h, inclusive, as amended by this act.
The proceeds of the sale of bonds described in this section shall besSB384 used/ forFile theNo. purpose of funding the transfers provided for under section 3-36h, as amended by this act.
The615 amount5 authorizedsSB384 forFile the issuance andsale ofsuchbondsineachofthefollowing fiscalyearsshall LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-003845 of 13 R01-SB.docx } Substitute Bill No.
384615 notbe exceedused the following corresponding amount for each such fiscal year, except that, to the extentpurpose theof Statefunding Bond Commission does not provide for the usetransfers of all or a portion of such amount in any such fiscal year, such amount not provided for shallunder besection carried forward and added to the authorized amount for the next two succeeding fiscal years, and provided further, the costs of issuance, including expenses of implementing the provisions of sections 3-36b to 3-36h, inclusive, as amended by this act,act. and capitalized interest, if any, may be added to the capped amount in each fiscal year, and each of the authorized amounts shall be effective on July first of the fiscal year indicated as follows:
T1The Fiscalamount Yearauthorized Endingfor Amountthe T2issuance Juneandsale Thirtiethofsuchbondsineachofthefollowing T3fiscalyearsshall [$50,000,000]not $100,000,000exceed T4the 2024following $50,000,000corresponding T5amount 2025for $50,000,000each T6such 2026fiscal $50,000,000year, T7except 2027that, $50,000,000to T8the 2028extent $50,000,000the T9State $50,000,000Bond T10Commission 2030does $50,000,000not T11provide 2031for $50,000,000the T12use 2032of $50,000,000all T13or 2033a $50,000,000portion T14of [2034such $50,000,000]amount (b)in [Onany orsuch beforefiscal theyear, firstsuch dayamount ofSeptembernot ineachprovided year,for commencingshall Septemberbe 1,carried 2022]forward Commencingand withadded to the fiscalauthorized yearamount endingfor Junethe 30,next 2023,two notsucceeding laterfiscal thanyears, theand firstprovided dayfurther, ofthe Septembercosts of eachissuance, fiscalincluding year,expenses of implementing the Departmentprovisions of Socialsections Services3-36b shallto inform3-36h, inclusive, as amended by this act, and capitalized interest, if any, may be added to the Treasurercapped amount in each fiscal year, and each of the numberauthorized ofamounts designatedshall beneficiariesbe borneffective inon theJuly priorfirst of the fiscal year.year indicated as follows:
PromptlyT1 LCOFiscal {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-0036Year ofEnding 13Amount R01-SB.docxT2 }June SubstituteThirtieth BillT3 [$50,000,000] $100,000,000 T4 2024 $50,000,000 T5 2025 $50,000,000 T6 2026 $50,000,000 T7 2027 $50,000,000 T8 2028 $50,000,000 T9 2029 $50,000,000 T10 2030 $50,000,000 T11 2031 $50,000,000 T12 2032 $50,000,000 T13 2033 $50,000,000 T14 [2034 $50,000,000] (b) [On or before the first day ofSeptember ineach year, commencing September 1, 2022] Commencing with the fiscal year ending June 30, sSB384 / File No.
384615 thereafter,6 thesSB384 TreasurerFile shallNo. submit to the Governor and the Secretary of the Office of Policy and Management, by certified mail, a report of anda calculationofthetotalamount requiredto [deposit]betransferred to the trust [for crediting] to credit three thousand two hundred dollars [for the account of] to each such designated beneficiary born in the prior fiscal year.
615 2023, not later than the first day of September of each fiscal year, the Department of Social Services shall inform the Treasurer of the number of designated beneficiaries born in the prior fiscal year.
Promptly thereafter, the Treasurer shall submit to the Governor and the Secretary of the Office of Policy and Management, by certified mail, a report of anda calculationofthetotalamount requiredto [deposit]betransferred to the trust [for crediting] to credit three thousand two hundred dollars [for the account of] to each such designated beneficiary born in the prior fiscal year.
All such bonds, notes or other obligations shall mature at such time or times not later than twenty years after their respective issuance, in such principal amounts and at such times, bear such date or dates, be payable at such place or places, bear interest at such rate or different or varying rates,sSB384 payable/ atFile such time or times, be in such denominations, be in such form with or without interest coupons attached, carry such LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-0037 of 13 R01-SB.docx } Substitute Bill No.
384615 registration7 andsSB384 transferFile privileges,No. be payable in such medium of payment, be subject to such terms of redemption with or without premium and have such additional security, covenant or contract provisions, as appropriate or necessary to improve their marketability, as the Treasurer shall determine prior to their issuance.
615 rates, payable at such time or times, be in such denominations, be in such form with or without interest coupons attached, carry such registration and transfer privileges, be payable in such medium of payment, be subject to such terms of redemption with or without premium and have such additional security, covenant or contract provisions, as appropriate or necessary to improve their marketability, as the Treasurer shall determine prior to their issuance.
As part of the contract of the state with the other parties to any agreement entered into pursuant to this subsection for which the full faith and credit of the state is pledged to the state's payment obligations under such agreement, appropriation of all amounts necessary for the punctual payment of the obligationssSB384 of/ theFile state under any such agreement is hereby made and LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-0038 of 13 R01-SB.docx } Substitute Bill No.
384615 the8 TreasurersSB384 shallFile payNo. such amounts as the same become due.
615 obligations of the state under any such agreement is hereby made and the Treasurer shall pay such amounts as the same become due.
LCOsSB384 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-0039/ ofFile 13 R01-SB.docx } Substitute Bill No.
384615 (f)9 ThesSB384 SuperiorFile CourtNo. shall have jurisdiction to enter judgment against the state founded (1) upon any express contract between the state and the purchasers and subsequent owners and transferees of any bonds, notes or other obligations issued or contracted to be issued by the state pursuant to this section, and (2) upon any agreement entered into pursuant to subsection (c) or (d) of this section.
615 (f) The Superior Court shall have jurisdiction to enter judgment against the state founded (1) upon any express contract between the state and the purchasers and subsequent owners and transferees of any bonds, notes or other obligations issued or contracted to be issued by the state pursuant to this section, and (2) upon any agreement entered into pursuant to subsection (c) or (d) of this section.
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The Treasurer may make LCOrepresentations {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-003810and agreements for the benefit of 13the R01-SB.docxholders }or Substituteowners BillsSB384 / File No.
384615 representations10 andsSB384 agreementsFile forNo. the benefit of the holders or owners ofsuchbonds,notesor otherobligationsonbehalfofthestatetoprovide secondary market disclosure information.
615 ofsuchbonds,notesor otherobligationsonbehalfofthestatetoprovide secondary market disclosure information.
Such bonds, notes or other obligations are hereby made and declared to be (1) legal investments for savings banks and trustees unless otherwise provided in the instrument creating the trust, (2) securities in which all public officers and bodies, all insurance companies and associations and persons carrying on an insurance business,allbanks,bankers,trustcompanies,savingsbanksandsavings associations, including savings and loan associations, building and loan associations, investment companies and persons carrying on a banking or investment business, all administrators, guardians, executors, trustees and other fiduciaries and all persons who are or may be LCOauthorized {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-0011to invest in bonds, notes or other obligations of 13the R01-SB.docxstate, }may Substituteproperly Billand legally invest funds, including capital in their control sSB384 / File No.
384615 authorized11 tosSB384 investFile inNo. bonds, notes or other obligations of the state, may properly and legally invest funds, including capital in their control or belonging to them, and (3) securities that may be deposited with and shall be received by all public officers and bodies for any purpose for which the deposit of bonds, notes or other obligations of the state is or may be authorized.] Sec.
615 or belonging to them, and (3) securities that may be deposited with and shall be received by all public officers and bodies for any purpose for which the deposit of bonds, notes or other obligations of the state is or may be authorized.] Sec.
8 from passage 3-13c LCOStatement {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00384-12 of 13Legislative R01-SB.docxCommissioners: } Substitute Bill No.
384 Statement of Legislative Commissioners:
FINsSB384 Joint/ FavorableFile Subst.No.
-LCO615 LCO12 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-0038413sSB384 ofFile 13No. R01-SB.docx }
615 FIN Joint Favorable Subst.
-LCO sSB384 / File No.
615 13 sSB384 File No.
615 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $ Resources of the General Fund GF - Precludes See Below See Below Revenue Gain Treasurer, Debt Serv.
GF - Potential See Below See Below Cost Note:
GF=General Fund Municipal Impact:
None Explanation The bill increases FY 23GeneralObligation(GO)bondauthorizations by $50 million and eliminates the FY 34 authorization for the program of $50 million.
The bill also alters technical and administrative aspects of the program.
Future General Fund debt service costs may be incurred sooner under the bill to the degree that it causes authorized GO bond funds to be available, expended, or to be expended more rapidly than they otherwise would have been.
The bill also exempts disbursements from the fund from state and local taxes, which precludes a potential revenue gain to the state beginning in FY 40.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the terms of any bonds issued.
sSB384 / File No.
615 14 sSB384 File No.
615 OLR Bill Analysis sSB 384 AN ACT IMPLEMENTING THE TREASURER'S RECOMMENDATIONS CONCERNING THE CONNECTICUT BABY BOND TRUST PROGRAM.
SUMMARY This bill makes various changes to the Connecticut Baby Bond Trust program.
Administered by the state treasurer, the program authorizes up to $600 million in bonds to provide designated beneficiaries (i.e., babies born on or after July 1, 2021, whose births were covered under HUSKY) up to $3,200 in a state trust.
Once they reach age 18, designated beneficiaries that meet the program’s eligibility requirements may receive the funds, including any investment earnings, to be used for an eligible expenditure (e.g., education, buying a home or investing in a business in Connecticut, and personal financial investments).
The bill makes the following changes:
1.
increases, from $50 million to $100 million, the amount of bonds authorized for the program in FY 23 and eliminates the $50 million authorization for FY 34;
2.
allows the program’s implementation expenses to be added to the capped amount of bonds authorized for each year of the program;
3.
subjects the bonds to standard statutory GO bond procedures and repayment requirements;
4.
exempts disbursements from the trust, rather than the trust’s property and earnings, from all state and local taxes;
5.
requiresthat thedisbursements,rather thanfundsinvested inthe trust, be disregarded as assets or income for state assistance programs and need-based educational aid;
sSB384 / File No.
615 15 sSB384 File No.
615 6.
eliminates the requirement that the state treasurer establish an accounting for each designated beneficiary and makes conforming changes;
7.
exempts the trust’s property from the law for determining when property held by a fiduciary is presumed abandoned;
8.
explicitly subjects the treasurer’s trust investments to the same oversight and requirements that the law establishes for other treasurer-administered funds, such as the Teachers’ Pension Fund, the State Employee Retirement Fund, and the Connecticut Municipal Employees’ Retirement Fund (e.g., investment review by the Investment Advisory Council);
and 9.
makes various minor, technical, and conforming changes and corrections.
EFFECTIVE DATE:
Upon passage IMPACT ON ASSISTANCE PROGRAMS AND NEED-BASED AID The bill prohibits disbursements from the trust from being considered assets or income when determining an individual’s eligibility for (1) state-administered assistance programs, to the extent allowed by federal law, or (2) need-based, institutional aid grants offered at the state’s public eligible educational institutions.
In doing so, it eliminates similar provisions in current law that applied to funds invested in the trust.
AMOUNTS TRANSFERRED FOR DESIGNATED BENEFICIARIES Under current law, the state treasurer must establish an accounting for each designated beneficiary and may transfer up to $3,200 from the program’s bond proceeds to the trust to be credited to the beneficiary’s accounting at birth.
The bill eliminates the requirement that (1) each designated beneficiary have an accounting and (2) the transferred funds come from these bond proceeds (see Bond Authorization below).
It also allows the transfer to be made after the designated beneficiary’s birth, rather than at birth.
Under current law, if a designated beneficiary fails to submit a valid sSB384 / File No.
615 16 sSB384 File No.
615 claim before his or her 30th birthday or dies before doing so,the amount of his or her accounting is credited back to the trust’s assets.
The bill instead requires that this amount be retained by the trust to credit to designated beneficiaries born in subsequent years.
Existing law requires the treasurer to proportionately reduce the transfer amount for any year in which the bond funds are insufficient to provide the $3,200 transfer to each beneficiary.
The bill additionally requires, for any year in which these funds exceed the amount required to provide the transfer, that any excess be retained by the trust to credit to designated beneficiaries born in subsequent years.
It also makes technical and conforming changes.
BOND AUTHORIZATION Current law authorizes the treasurer to issue up to $600 million in state general obligation bonds for the program, in amounts of up to $50 million per year from FYs 23-34.
The bill increases the FY 23 authorization to $100 million and eliminates the $50 million authorization for FY 34.
It also authorizes the program’s implementation expenses to be added to the capped amount of bonds authorized for each year of the program.
Current law requires the Baby Bonds program to be funded with bonds from a specific bond issuance and incorporates certain provisions relating to this issuance, including the treasurer’s powers in connection with the bond sale and certain legal actions related to the bonds.
The bill instead subjects the bonds authorized under the program to standard statutory bond procedures and repayment requirements.
BACKGROUND Related Bill sSB 12, favorably reported by the Finance, Revenue and Bonding Committee, includes the same provisions.
COMMITTEE ACTION Finance, Revenue and Bonding Committee Joint Favorable Yea 41 Nay 10 (04/06/2022) sSB384 / File No.
615 17
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Action History
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FILE NO. 615
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SENATE CALENDAR NUMBER 443
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FAV. RPT., TAB. FOR CAL., SEN.
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RPTD. OUT OF LCO
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REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/25/22
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FILED WITH LCO
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Joint Favorable
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PUBLIC HEARING 0315
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REF. TO JOINT COMM. ON Finance, Revenue and Bonding
Sponsors
- Anthony L. Nolan · Primary
- Bobby G. Gibson · Primary
Sponsorship breakdown
Export CSV (upgrade) →2 sponsors · 0 co-sponsors · 185 not signed on
Sponsors (2)
- Anthony L. Nolan Democratic
- Bobby G. Gibson Democratic
Co-sponsors (0)
None.
Not signed on (185)
185 members have not signed on to this bill.
Show all 185 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors SB 384?
- SB 384 is sponsored by Anthony L. Nolan (Democratic) and Bobby G. Gibson (Democratic).
- What is the current status of SB 384?
- This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 384?
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