SB 456 — AN ACT ESTABLISHING A PILOT PROGRAM FOR THE DEVELOPMENT AND IMPLEMENTATION OF TEN-YEAR PLANS TO ERADICATE CONCENTRATED POVERTY IN THE STATE.
Last action — FILE NO. 587
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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 2024 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This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
1140 added · 716 removed1140 line(s) added, 716 removed.
Senate General Assembly RaisedFile Bill No.
456587 February Session, 2024 LCOSubstitute Senate Bill No.
3486456 ReferredSenate, toApril 22, 2024 The Committee on FINANCE,Finance, REVENUERevenue ANDand BONDINGBonding Introducedreported by:through SEN.
(FIN)FONFARA ANof ACTthe REQUIRING1st THEDist., DEVELOPMENTChairperson ANDof IMPLEMENTATIONthe OFCommittee TEN-YEARon PLANSthe TOpart ERADICATEof CONCENTRATEDthe POVERTYSenate, INthat THEthe STATE.substitute bill ought to pass.
AN ACT ESTABLISHING A PILOT PROGRAM FOR THE DEVELOPMENT AND IMPLEMENTATION OF TEN-YEAR PLANS TO ERADICATE CONCENTRATED POVERTY IN THE STATE.
(NEW) (Effective from passage) (a) It is hereby declared that there exists a concentrated poverty crisis in the state that exacts a critical toll on poor and nonpoor residents of communities that house areas of concentrated poverty, which create lifelong and persistent disadvantagesacrossdisadvantagesacrossgenerationsby generationsbyloweringthequality lowering the quality ofeducational and employment opportunities, limiting health care access and diminishing health outcomes, increasing exposure to crime, reducing available choices for affordable and properly maintained housing and imposing obstacles to wealth-building and economic mobility.
(b)sSB456 There/ isFile established an Office of Neighborhood Investment and LCO No.
3486587 1 ofsSB456 23File RaisedNo. Bill No.456 Community Engagement within the Department of Economic and Community Development.
Said587 office(b) shallThere haveis aestablished staffan dedicatedOffice exclusively to carry out the provisions of thisNeighborhood section,Investment oversee the implementation of the ten-year plans developed pursuant to this subsection, monitor the state's progress in reducing concentrated poverty in the state and serveCommunity asEngagement thewithin facilitator to coordinate communication between the variousDepartment partiesof andEconomic disseminate information in a timely and efficientCommunity manner.Development.
(1) (A) Said office shall develophave a planstaff fordedicated eachexclusively concentratedto povertycarrying censusout tractthe toprovisions eradicate,of overthis tensection, years,overseeing the levelsimplementation of concentrated poverty in the state,ten-year evidencedplans bydeveloped apursuant reduction, to twentythis persubsection, centmonitoring or lower, in the percentagestate's ofprogress households who reside in areducing concentrated poverty censusin tract and have incomes below the federalstate poverty level, as well as sustained improvements in community infrastructure and otherserving underlying conditions that serve to prolong concentrated poverty andeconomicinertia insuchcensustracts.In developing suchplan,said office shall consult with the Office of Community Development Assistance established under section 32-7s of the general statutes, as amended by this act, the Officefacilitator ofto Workforcecoordinate Strategycommunication establishedbetween under section 4-124w of the generalvarious statutes,parties the Office of Early Childhood, the Department of Education, the Office of Policy and Management,disseminate theinformation municipal chief elected officials and community development corporations set forth in subsectiona (c)timely of this section and anyefficient othermanner. public or private entity the Commissioner of Economic and Community Development deems relevant or necessary to achieving the purposes of this subsection.
As(c) used(1) inThere thisis section,established "concentrated poverty census tract" means a censuspilot tractprogram identifiedto asimplement athe highprovisions poverty-low opportunity census tract, as of January 1, 2024, by the Officeten-year ofplans Policydeveloped and Management pursuant to this section 101for ofparticipating publicconcentrated actpoverty 23-205.census tracts.
(B)Any Eachconcentrated ten-yearpoverty plancensus shalltract include,or butgroup needof nottracts be(A) limitedthat to,is (i)located measurablein stepsany toof bethe takenfour formunicipalities itswith implementation, the targetgreatest datenumber byof concentrated poverty census tracts, and (B) for which eachcommunity suchmembers stephave isestablished a community development corporation pursuant to bethe completedprovisions andof section 32-7s of the stategeneral orstatutes, municipalas officialamended orby statethis oract, municipalto agency,assist departmentthe municipality in which such census tract or divisiongroup responsibleof fortracts eachis suchlocated step,in (ii)carrying minimumout state-widethe averagesmunicipality's forresponsibilities educationalunder LCOthis No.section and theten-yearplandevelopedforsuchcensustractorgroupoftracts,shall be eligible to participate in the program.
3486Notwithstanding 2the provisions of 23subparagraph Raised(A) Billof No.456this metrics,subdivision, including,any butmunicipality notin limitedwhich to,a kindergarten-readiness,concentrated gradepoverty levelcensus readingtract andor mathematicsgroup andof college-readinesstracts oris career-located readiness,and tofor bewhich useda ascommunity benchmarksdevelopment forcorporation improvementshas inbeen eachestablished concentratedas povertydescribed censusunder tract,subparagraph and(B) (iii)of thethis listsubdivision, ofor possibleany projectssuch determinedcommunity pursuantdevelopment tocorporation, subdivisionmay (2)request ofto thisparticipate subsection.in the program.
As used in this section, "concentrated poverty census tract" means a census tract identified as a high poverty- low opportunity census tract, as of January 1, 2024, by the Office of Policy and Management pursuant to section 32-7x of the 2024 supplement to the general statutes.
(2) (A) The Office of Neighborhood Investment and Community Engagement shall develop a plan for each participating concentrated poverty census tract or group of tracts, as applicable, to eradicate, over sSB456 / File No.
587 2 sSB456 File No.
587 ten years, the levels of concentrated poverty in the state, evidenced by a reduction, to twenty per cent or lower, in the percentage of households who reside in a concentrated poverty census tract and have incomes below the federal poverty level, as well as sustained improvements in community infrastructure and other underlying conditions that serve to prolong concentrated poverty and economic inertia in such census tracts.
In developing such plan, said office shall consult with the Office of Community Economic Development Assistance established under section 32-7s of the general statutes, as amended by this act, the Office of Workforce Strategy established under section 4-124w of the general statutes, the Office of Early Childhood, the Department of Education, the Office of Policy and Management, the applicable community development corporations serving the participating concentrated poverty census tract or group of tracts and the applicable municipal chief elected officials and any other public or private entity the Commissioner of Economic and Community Development deems relevant or necessary to achieving the purposes of this subsection.
(B) Each ten-year plan shall include, but need not be limited to, (i) measurable steps to be taken for its implementation, the target date by which each such step is to be completed and the state or municipal official or state or municipal agency, department or division responsible for each such step, (ii) minimum state-wide averages for educational metrics, including, but not limited to, kindergarten-readiness, grade level reading and mathematics and college-readiness or career- readiness, to be used as benchmarks for improvements in each concentrated poverty census tract or group of tracts, as applicable, and (iii) the list of possible projects determined pursuant to subdivision (3) of this subsection.
Not later than January 1, 2026, said commissioner shall submit all such plans to the General Assembly, in accordancesSB456 with/ theFile provisionsNo. of section 11-4a of the general statutes.
(2)587 (A)3 EachsSB456 municipalityFile inNo. which at least one concentrated poverty census tract has been identified as of January 1, 2024, shall assist community members to establish a community development corporation pursuant to the provisions of section 32-7s of the general statutes, as amended by this act, to assist such municipality in carrying out such municipality's responsibilities under this section and the ten- year plan for such census tract.
(B)587 Theaccordance Office of Neighborhood Investment and Community Engagement shall, jointly with the chiefprovisions elected official of eachsection such11-4a municipality and the community development corporation established to assist such municipality, develop a list of possible projects that will be included in the ten-yeargeneral planstatutes. for each concentrated poverty census tract located in such municipality.
Said(3) office,The officialOffice and corporation shall (i) determine the types of projectsNeighborhood theyInvestment deem to be the most appropriate and effectiveCommunity forEngagement suchshall, censusjointly tractwith tothe eradicatechief concentratedelected povertyofficial withinof sucheach censusapplicable tract,municipality including,and butthe notcommunity limited to, capital projects, workforce development programs,corporation housingestablishedto development,assist communitysuchmunicipality,developalist andofpossibleprojects neighborhoodthat improvementswill andbe educationincluded initiatives to assist and support residents in meeting and surpassing the educationalten-year metricsplan describedfor ineach subparagraphparticipating (B)(ii)concentrated ofpoverty subdivisioncensus (1)tract ofor subsectiongroup (b) of thistracts, section,as andapplicable, (ii)located takein intosuch accountmunicipality. the criteria for LCO No.
3486Said 3office, official and corporation shall (A)determinethetypesofprojectstheydeem tobethemostappropriate and effective for such census tract or group of 23tracts Raisedto Billeradicate No.456concentrated poverty within such census tract or group of tracts, including, but not limited to, capital projects, workforce development programs, housing development, community and neighborhood improvements and education initiatives to assist and support residents in meeting and surpassing the educational metrics described in subparagraph (B)(ii) of subdivision (2) of this subsection, and (B) take into account the criteria for projects eligible for grants under sectionssections32- 32-7s7s of the general statutes, as amended by this act, 32-7x of the general statutes, as amended by this act, and 32-285a of the general statutes, as amended by this act.
(3)(4) Not later than February 1, 2027, and annually thereafter, the Commissioner of Economic and Community Development shall submit a report to the General Assembly, the Office of Workforce Strategy, the Office of Early Childhood and the Office of Policy and Management, in accordance with the provisions of section 11-4a of the general statutes, that summarizes the progress being made by the Office of Neighborhood Investment and Community Engagement in implementing each of the ten-year plans, the status of any projects pending or undertaken for each participating concentrated poverty census tract or group of tracts and any other information the commissioner or the Office of Neighborhood Investment and Community Engagement deems relevant or necessary.
(c)(5) If(A) anyCommencing statewith or municipal official responsible for carrying out a requirement or responsibility under the provisionscalendar ofyear this2027, sectionnot orlater athan ten-yearsSB456 plan/ failsFile toNo. do so in a timely manner, any resident of a concentrated poverty census tract who is aggrieved by such failure may bring an action against such official in the superior court for the judicial district in which such census tract is located for a writ of mandamus to compel such official to carry out such requirement or responsibility.
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587 March first of said year and annually thereafter for the next two years, the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding shall hold an informational forum for the Commissioner of Economic and Community Development to present the contents of the submitted report and for other state officials, municipal officials, representativesof community development corporations serving participating concentrated poverty census tracts or groups of tracts and other interested parties to provide oral and written comments on the submitted report and the pilot program.
(B) Commencing with the calendar year 2030, said committee shall hold such informational forum every two years.
(d)NotlaterthanJanuary1,2029,theCommissionerofEconomicand Community Development shall submit a recommendation to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding of whether the pilot program should be expanded to all concentrated poverty census tracts or groups of tracts in the state for which a community development corporation has been established as described under subparagraph (B) of subdivision (1) of subsection (c) of this section.
If the commissioner recommends such expansion, the commissioner and the Office of Neighborhood Investment and Community Engagement shall immediately undertake such expansion.
(e) If any state or municipal official responsible for carrying out a requirement or responsibility under the provisions of this section or a ten-year plan fails to do so in a timely manner, any community development corporation established as described under subparagraph (B) of subdivision (1) of subsection (c) of this section that is aggrieved by such failure may bring an action against such official in the superior court for thejudicialdistrict inwhich suchcensustract or groupoftracts is located for a writ of mandamus to compel such official to carry out such requirement or responsibility.
Section 32-7s of the general statutes is repealed and the followingsSB456 is/ substitutedFile inNo. lieu thereof (Effective from passage):
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587 following is substituted in lieu thereof (Effective from passage):
(1) "Certified community development corporation" means an organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, that (A) focuses a substantial majority of the community development corporation's efforts on serving one or more target areas, (B) has as its purpose to engage local residents and businesses to work together to undertake community development programs, projects and LCOactivities No.that develop and improve urban communities in sustainable ways that create and expand economic opportunities for low and moderate-income people, (C) demonstrates to the Office of Community Economic Development Assistance established under subsection (b) of this section that the community development corporation's constituency is meaningfully represented on the board of directors of such community development corporation, through (i) the percentage of the board members who are residents of a target area or a community that such community development corporation serves or seeks to serve, (ii) the percentage of board members who are low or moderate-income, (iii) the racial and ethnic composition of the board in comparison to the racial and ethnic composition of the community such community development corporation serves or seeks to serve, or (iv) the use of mechanisms such as committees or membership meetings that the community development corporation uses to ensure that its constituency has a meaningful role in the governance and direction of the community development corporation, and (D) is certified by the Office of Community Economic Development Assistance pursuant to this section;
3486 4 of 23 Raised Bill No.456 activities that develop and improve urban communities in sustainable ways that create and expand economic opportunities for low and moderate-income people, (C) demonstrates to the Office of Community Economic Development Assistance established under subsection (b) of this section that the community development corporation's constituency is meaningfully represented on the board of directors of such community development corporation, through (i) the percentage of the board members who are residents of a target area or a community that such community development corporation serves or seeks to serve, (ii) the percentage of board members who are low or moderate-income, (iii) the racial and ethnic composition of the board in comparison to the racial and ethnic composition of the community such community development corporation serves or seeks to serve, or (iv) the use of mechanisms such as committees or membership meetings that the community development corporation uses to ensure that its constituency has a meaningful role in the governance and direction of the community development corporation, and (D) is certified by the Office of Community Economic Development Assistance pursuant to this section;
and (3) "Target area" means a contiguous geographic area in which the current unemployment rate exceeds the state unemployment rate by at leastsSB456 twenty-five/ perFile centNo. or in which the mean household income is at or below eighty per cent of the state mean household income, as determined by the most recent decennial census.
587 6 sSB456 File No.
587 least twenty-five per cent or in which the mean household income is at or below eighty per cent of the state mean household income, as determined by the most recent decennial census.
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The office shall, within available appropriations, (A) provide assistance to organizations seeking to establish themselves or be certified as a community development corporation in the state, (B) provide grants to certified community development corporations for projects to be undertaken in a target area, LCO(C) No.serve as the liaison between community development corporations and investors seeking to invest funds in such community development corporations and provide assistance in soliciting investment funds for such community development corporations, and (D) seek to ensure coordinated, efficient and timely responses to such organizations, community development corporations and investors.
3486 5 of 23 Raised Bill No.456 (C) serve as the liaison between community development corporations and investors seeking to invest funds in such community development corporations and provide assistance in soliciting investment funds for such community development corporations, and (D) seek to ensure coordinated, efficient and timely responses to such organizations, community development corporations and investors.
(B)sSB456 The/ officeFile shallNo. maintain a current list of certified community development corporations and shall post such list on the Internet web site of the department.
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587 (B) The office shall maintain a current list of certified community development corporations and shall post such list on the Internet web site of the department.
Such projects shall LCOinclude, No.but not be limited to, infrastructure improvements, housing rehabilitation, streetscape improvements and facade improvements for businesses.
3486 6 of 23 Raised Bill No.456 include, but not be limited to, infrastructure improvements, housing rehabilitation, streetscape improvements and facade improvements for businesses.
Temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with section 3-20 and fromsSB456 time/ toFile timeNo. renewed.
587 8 sSB456 File No.
587 from time to time renewed.
Such bonds issued pursuant to this section shall LCObegeneralobligationsofthestateandthefullfaithandcredit No.ofthestate of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.
3486 7 of 23 Raised Bill No.456 begeneralobligationsofthestateandthefullfaithandcredit ofthe state of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.
(a) As used in this section, ["high poverty-low opportunity census tract"]sSB456 "concentrated/ povertyFile censusNo. tract" means a United States census tract in which thirty per cent or more of the [residents] households within such census tract have incomes below the federal poverty level, according to the most recent five-year United States Census Bureau American Community Survey.
(b)587 The9 SecretarysSB456 ofFile the Office of Policy and Management shall compile a list of [high poverty-low opportunity] concentrated poverty census tracts in the state and the municipalities in which such census LCO No.
3486587 8tract"] of"concentrated 23poverty Raisedcensus Billtract" No.456means tractsa areUnited locatedStates andcensus shall,tract notin laterwhich thanthirty Julyper 31,cent 2023,or submitmore of the [residents] households within such listcensus totract have incomes below the Generalfederal Assemblypoverty inlevel, accordanceaccording withto the provisionsmost ofrecent sectionfive-year 11-4a.United States Census Bureau American Community Survey.
(b) The Secretary of the Office of Policy and Management shall compile a list of [high poverty-low opportunity] concentrated poverty census tracts in the state and the municipalities in which such census tracts are located and shall, not later than July 31, 2023, submit such list to the General Assembly in accordance with the provisions of section 11-4a.
(B) The establishment or improvement of workforce development programs, including, but not limited to, programs that partner with organizations to identify unemployed or underemployed individuals and at-risk youth residing in such census tracts, identify workforce training opportunities and other resources for such individuals and link suchsSB456 individuals/ withFile theNo. appropriate training and resources that will increase the skills and earning potential of such individuals;
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587 such individuals with the appropriate training and resources that will increase the skills and earning potential of such individuals;
(2) Beginning on January 1, 2024, and not later than January 1, 2030, LCOeach No.municipality in which a [high poverty-low opportunity] concentrated poverty census tract is located may apply to the commissioner, in a form and manner prescribed by the commissioner, to receive a grant for an eligible project or any combination of eligible projects.
3486 9 of 23 Raised Bill No.456 each municipality in which a [high poverty-low opportunity] concentrated poverty census tract is located may apply to the commissioner, in a form and manner prescribed by the commissioner, to receive a grant for an eligible project or any combination of eligible projects.
(A) The likelihood that a proposal will reduce adult or child poverty withinsSB456 a/ [highFile poverty-lowNo. opportunity] concentrated poverty census tract;
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587 within a [high poverty-low opportunity] concentrated poverty census tract;
(C) The likelihood that a proposal will produce persistent and LCOmeaningful No.improvements in residents' wealth, financial security, employability or quality of life beyond the duration of the proposal;
3486 10 of 23 Raised Bill No.456 meaningful improvements in residents' wealth, financial security, employability or quality of life beyond the duration of the proposal;
(B) A description of each initiative within the proposal, which may include multiple simultaneous initiatives, and how each initiative will meetsSB456 one/ ofFile theNo. criteria established pursuant to subdivision (2) of this subsection;
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587 meet one of the criteria established pursuant to subdivision (2) of this subsection;
(D) For an initiative that is an eligible project described in LCOsubparagraph No.(B) of subdivision (1) of subsection (c) of this section, a description of the municipality's consultations with the regional workforce development board that serves the municipality regarding the development of such project and efforts to coordinate such project with the board's activities;
3486 11 of 23 Raised Bill No.456 subparagraph (B) of subdivision (1) of subsection (c) of this section, a description of the municipality's consultations with the regional workforce development board that serves the municipality regarding the development of such project and efforts to coordinate such project with the board's activities;
The department shall assist an applicant in identifying and applying for funding under other programs in order to maximizesSB456 the/ amountFile ofNo. funding available for an applicant, including seeking funding under section 4-66c.
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587 maximize the amount of funding available for an applicant, including seeking funding under section 4-66c.
LCO(2) No.The commissioner shall submit to the Governor all applications that are deemed to satisfy the requirements of subsection (d) of this section.
3486 12 of 23 Raised Bill No.456 (2) The commissioner shall submit to the Governor all applications that are deemed to satisfy the requirements of subsection (d) of this section.
Such evaluation shall consider, among other factors, any change in the percentage of [residents] households within such census tract who have incomes below the federal poverty level, and whether the actions taken pursuant tosSB456 such/ grantFile duringNo. the initial grant period:
(1)587 May14 reasonablysSB456 resultFile in a future reduction in the percentage of [residents] households within such census tract who have incomes below the federal poverty level, (2) have resulted in a reduction in child poverty within such census tract, (3) may reasonably result in a future reduction in child poverty within such census tract, or (4) may reasonably decrease the likelihood that children who are currently living within such census tract will have LCO No.
3486587 13to ofsuch 23grant Raisedduring Bill No.456 incomes below the federalinitial povertygrant levelperiod: after they reach adulthood.
(1) May reasonably result in a future reduction in the percentage of [residents] households within such census tract who have incomes below the federal poverty level, (2) have resulted in a reduction in child poverty within such census tract, (3) may reasonably result in a future reduction in child poverty within such census tract, or (4) may reasonably decrease the likelihood that children who are currently living within such census tract will have incomes below the federal poverty level after they reach adulthood.
(1) "Administrative costs" means the costs paid or incurred by the administrator of the Community Investment Fund 2030 Board established under subsection (b) of this section, including, but not limitedsSB456 to,/ allocatedFile staffcostsNo. and other out-of-pocket costsattributable to the administration and operation of the board;
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587 limited to, allocated staffcosts and other out-of-pocket costsattributable to the administration and operation of the board;
LCO(A) No.(i) A project proposed by a municipality, community development corporation or nonprofit organization, for the purpose of promoting economic or community development in the municipality or a municipality served by such corporation or organization, such as brownfield remediation, affordable housing, establishment of or improvements to water and sewer infrastructure to support smaller scale economic development, pedestrian safety and traffic calming improvements, establishment of or improvements to energy resiliency or clean energy projects and land acquisition and capital projects to construct, rehabilitate or renovate buildings and structures to facilitate or improve home rehabilitation programs and facilities such as libraries and senior centers;
3486 14 of 23 Raised Bill No.456 (A) (i) A project proposed by a municipality, community development corporation or nonprofit organization, for the purpose of promoting economic or community development in the municipality or a municipality served by such corporation or organization, such as brownfield remediation, affordable housing, establishment of or improvements to water and sewer infrastructure to support smaller scale economic development, pedestrian safety and traffic calming improvements, establishment of or improvements to energy resiliency or clean energy projects and land acquisition and capital projects to construct, rehabilitate or renovate buildings and structures to facilitate or improve home rehabilitation programs and facilities such as libraries and senior centers;
and persons otherwise adversely affected by persistent poverty or inequality;sSB456 / File No.
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587 inequality;
(b) (1) There is established a Community Investment Fund 2030 LCOBoard, No.which shall be within the Department of Economic and Community Development.
3486 15 of 23 Raised Bill No.456 Board, which shall be within the Department of Economic and Community Development.
The terms of the members appointed by the Governor shall be coterminous with the term of the Governor or until theirsSB456 successors/ areFile appointed,No. whichever is later.
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587 their successors are appointed, whichever is later.
(3) Notwithstanding any provision of the general statutes, it shall not constitute a conflict of interest for a trustee, director, partner, officer, LCOstockholder, No.proprietor, counsel or employee of any person to serve as a member of the board, provided such trustee, director, partner, officer, stockholder, proprietor, counsel or employee abstains and absents himself or herself from any deliberation, action and vote by the board in specific respect to such person.
3486 16 of 23 Raised Bill No.456 stockholder, proprietor, counsel or employee of any person to serve as a member of the board, provided such trustee, director, partner, officer, stockholder, proprietor, counsel or employee abstains and absents himself or herself from any deliberation, action and vote by the board in specific respect to such person.
(8) The administrator shall hire such employee or employees as may besSB456 necessary/ toFile assistNo. the board to carry out its duties described in this section.
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587 be necessary to assist the board to carry out its duties described in this section.
Such funds shall be used for costs related to an LCOeligible No.project recommended by the board and approved by the Governor pursuant to this subsection but shall not be used to pay or to reimburse the administrator for administrative costs under this section.
3486 17 of 23 Raised Bill No.456 eligible project recommended by the board and approved by the Governor pursuant to this subsection but shall not be used to pay or to reimburse the administrator for administrative costs under this section.
(B) In evaluating applications for an eligible project described in subparagraphsSB456 (A)(ii)/ ofFile subdivision (3) of subsection (a) of this section, the board shall (i) evaluate the risk of default on the repayment of a proposed loan or financing, (ii) consider the impact of the eligible project on job creation or retention in the municipality, (iii) consider the impact of the eligible project on blighted properties in the municipality, and (iv) consider the overall impact of the eligible project on the LCO No.
3486587 1819 ofsSB456 23File RaisedNo. Bill No.456 community.
587 subparagraph (A)(ii) of subdivision (3) of subsection (a) of this section, the board shall (i) evaluate the risk of default on the repayment of a proposed loan or financing, (ii) consider the impact of the eligible project on job creation or retention in the municipality, (iii) consider the impact of the eligible project on blighted properties in the municipality, and (iv) consider the overall impact of the eligible project on the community.
The Governor shallsSB456 determine/ theFile mostNo. appropriate method of funding for each eligible project and shall provide to the members of the board, in writing, such determination for each eligible project on the list and the reasons therefor.
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587 shall determine the most appropriate method of funding for each eligible project and shall provide to the members of the board, in writing, such determination for each eligible project on the list and the reasons therefor.
Each LCOeligible No.project for which the Governor recommends the allocation of bondfundsshallbeconsideredat aState BondCommissionmeeting not later than two months after the date such eligible project was submitted to the Governor pursuant to subparagraph (A) of this subdivision.
3486 19 of 23 Raised Bill No.456 eligible project for which the Governor recommends the allocation of bondfundsshallbeconsideredat aState BondCommissionmeeting not later than two months after the date such eligible project was submitted to the Governor pursuant to subparagraph (A) of this subdivision.
(7) The Auditors of Public Accounts shall audit, on a biennial basis, all eligible projects funded under this section and shall report their findings to the Governor, the Secretary of the Office of Policy and ManagementsSB456 and/ theFile GeneralNo. Assembly.
(d)587 (1)21 ThesSB456 StateFile Bond Commission may authorize the issuance of bonds of the state, in accordance with the provisions of section 3-20, in principal amounts not exceeding in the aggregate eight hundred LCO No.
3486587 20Management ofand 23the RaisedGeneral BillAssembly. No.456 seventy-five million dollars.
(d) (1) The State Bond Commission may authorize the issuance of bonds of the state, in accordance with the provisions of section 3-20, in principal amounts not exceeding in the aggregate eight hundred seventy-five million dollars.
The amount authorized for the issuance and sale of such bonds in each ofsSB456 the/ followingFile fiscal years shall not exceed the following corresponding amount for each such fiscal year, except that, to the extent the State Bond Commission does not provide for the use of all or a portion of such amount in any such fiscal year, such amount not LCO No.
3486587 2122 ofsSB456 23File RaisedNo. Bill No.456 provided for shall be carried forward and added to the authorized amount for the next succeeding fiscal year, and provided further, the costs of issuance 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:
587 of the following fiscal years shall not exceed the following corresponding amount for each such fiscal year, except that, to the extent the State Bond Commission does not provide for the use of all or a portion of such amount in any such fiscal year, such amount not provided for shall be carried forward and added to the authorized amount for the next succeeding fiscal year, and provided further, the costs of issuance 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:
ThissSB456 act/ shallFile takeNo. effect as follows and shall amend the following sections:
Section587 123 fromsSB456 passageFile New section LCO No.
3486587 22This ofact 23shall Raisedtake Billeffect No.as follows and shall amend the following sections:
456Section 1 from passage New section Sec.
4 from passage 32-285a Statement of Purpose:Legislative Commissioners:
ToIn requireSection the1(c)(1), development"section and101 implementation of apublic ten-yearact plan23-205" forwas eachchanged concentratedto poverty"section census32-7x tractof in the state2024 supplement to eradicatethe concentratedgeneral povertystatutes" infor theconsistency state.with standard drafting conventions;
[ProposedSection deletions1(c)(2)(A) arewas enclosedrewritten infor brackets.accuracy and clarity;
Proposedin additionsSection are1(c)(2)(B), indicated"subdivision by(2)" underline,was exceptchanged thatto when"subdivision the(3)" entirefor textaccuracy; of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.
3486in 23Section 1(c)(3), "each such municipality" was changed to "each applicable municipality" and "subsection (b) of 23this section" was changed to "this subsection", for accuracy;
and in Section 1(e), "established for a participating concentrated poverty census tract or group of tracts" was changed to "established as described under subparagraph (B) of subdivision (1) of subsection (c) of this section" for consistency.
FIN Joint Favorable Subst.
sSB456 / File No.
587 24 sSB456 File No.
587 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 25 $ FY 26 $ Department of Economic & GF - Cost 1.26 million 1.26 million Community Development State Comptroller - Fringe GF - Cost 520,000 520,000 Benefits1 Treasurer, Debt Serv.
GF - Potential See Below See Below Cost Note:
GF=General Fund Municipal Impact:
Municipalities Effect FY 25 $ FY 26 $ Various Municipalities Potential See Below See Below Revenue Gain Various Municipalities Potential See Below See Below Cost Explanation The bill results in an annualized cost of $1.8 million to the state by establishing a pilot program to eradicate concentrated poverty.
Specifically, the bill creates the Office of Neighborhood Investment and Community Engagement in the Department of Economic and Community Development (DECD) to administer the pilot program and, in effect, requires the formal establishment of the Office of Community Economic Development Assistance in DECD which was enacted under 1The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.
The estimated active employee fringe benefit cost associated with most personnel changes is 41.25% of payroll in FY 25.
sSB456 / File No.
587 25 sSB456 File No.
587 PA 22-118 but never created to date.
The bill also makes several changes to three DECD bond programs which may result in future debt services costs being incurred more rapidly than otherwise would have been.
The bill allows community development corporations (CDCs) to bring action in court against a municipal official for not meeting the requirements of the bill which results in a potential cost to municipalities.
The bill also prioritizes certain projects under existing grant programs which may result in a potential revenue gain to municipalities to the extent that they are awarded grants for qualifying projects.
Office of Neighborhood Investment and Community Engagement The bill creates the Office of Neighborhood Investment and Community Engagement (ONICE) within DECD and requires ONICE to develop 10-year plans in the pilot program to eradicate concentrated poverty in the four municipalities with the highest number of concentrated poverty census tracts (Bridgeport, Hartford, New Haven, and Waterbury).
The establishment and administrationofONICEisanticipatedto cost DECD $1.1 million annually.
This includes 8 positions at a total salary cost of $770,000 plus $313,500 in fringe benefit costs and $10,000 in other expenses to administer the 10-year plans under the pilot program.
The bill restricts the use of bond funds to support this cost, and no bonds are authorizedorproposedforthispurpose.The billis thereforeanticipated to impact DECD’s General Fund appropriations.
Office of Community Economic Development Assistance DECD will also be required to formally create the Office of Community Economic Development Assistance (OCEDA) in order to implement the provisions of this bill.
The bill requires any participating municipality in the pilot program to have a Community Development Corporation certified by OCEDA.
Under the bill, OCEDA must also sSB456 / File No.
587 26 sSB456 File No.
587 provide consultation to ONICE in the development of the 10-year plans.
The establishment and administration of OCEDA is anticipated to cost DECD $698,000 annually.
This includes five positions at a total salary cost of $494,000 plus $204,000 in fringe benefit costs.
Current law permits the use of funds from the bond authorization for OCEDA to support the administration of OCEDA, however no funds have been allocated to date.
GO Bond Program Impacts In additionto thechangesto OCEDA notedabove, thebillalso makes changes to the Community Investment Fund and High Poverty-Low Opportunity Census Tract programs, which are funded with General Obligation (GO) bonds.
As with OCEDA, future General Fund debt service costs may be incurred sooner under the bill to the degree that it causes authorized GO bond funds for these programs to be expended or to be expended more rapidly than they otherwise would have been.
The bill does not change GO bond authorizations relevant to the programs.
Municipal Impact The bill results in a potential cost to various municipalities to the extent they are brought to court by a CDC for failure to carry out a requirement.
There is also a potential revenue gain to various municipalities to the extent that they qualify for additional grants to fund projects in poverty census tracts, public investment communities, or alliance districts.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and subject to the terms of any bonds issued.
The current available bond balance for the Office of Community Economic Development Assistance is $50 million.
sSB456 / File No.
587 27 sSB456 File No.
587 OLR Bill Analysis sSB 456 AN ACT ESTABLISHING A PILOT PROGRAM FOR THE DEVELOPMENT AND IMPLEMENTATION OF TEN-YEAR PLANS TO ERADICATE CONCENTRATED POVERTY IN THE STATE.
SUMMARY This bill creates a pilot program to reduce the levels of concentrated poverty in the state by developing and implementing 10-year plans for certain targeted “concentrated poverty census tracts.” Under the bill, these are census tracts in which at least 30% of the households have incomes below the federal poverty level (FPL) that were identified by the Office of Policy and Management (OPM) under the high poverty- low opportunity (HPLO) program, as of January 1, 2024.
The bill also declaresthat thestatehasaconcentratedpovertycrisisthat createslong- term disadvantages for impacted residents.
The bill creates a new office within the Department of Economic and Community Development (DECD) to, among other things, oversee the plans’ implementation and monitor the state’s progress in reducing concentrated poverty.
It requires the office to develop a 10-year plan for each participating census tract (or groups of tracts) together with specified state agencies and local officials and the community development corporation (CDC) established by community members to help implement the plan.
Among other things, it (1) requires the plans to include a list of possible projects determined to be the most appropriate and effective to eliminate concentrated poverty in the tract or tracts and (2) gives these projects priority for specified state grants.
The bill requires DECD to report to the legislature on the office’s progress in developing and implementing the 10-year plans and, by January 1, 2029, recommend whether to expand the pilot program to all sSB456 / File No.
587 28 sSB456 File No.
587 qualifying tracts.
The bill also allows the CDCs established by community members to bring a mandamus action against state or municipal officials who do not timely fulfill their requirements or responsibilities under the program or a 10-year plan to compel them to do so.
Lastly, the bill (1) renames the HPLO census tracts as “concentrated poverty census tracts” and makes corresponding changes throughout the program’s statutory provisions and (2) specifies that these census tractsarebased onthepoverty levelofhouseholds,ratherthanresidents (see BACKGROUND).
EFFECTIVE DATE:
Upon passage DECLARATION The bill declares that Connecticut has a concentrated poverty crisis that takes a critical toll on people who live in communities with concentrated poverty.
It statesthat concentratedpoverty createslifelong and persistent disadvantages across generations by:
1.
lowering the quality of educational and employment opportunities, 2.
limiting health care access and diminishing health outcomes, 3.
increasing crime exposure, 4.
reducing available choices for affordable and properly maintained housing, and 5.
imposing obstacles to wealth-building and economic mobility.
It also declares that developing and implementing the bill’s 10-year plansto eliminate concentratedpovertyinConnecticut are necessary for the public’s benefit.
OFFICE OF NEIGHBORHOOD INVESTMENT AND COMMUNITY ENGAGEMENT sSB456 / File No.
587 29 sSB456 File No.
587 The bill creates a new Office of Neighborhood Investment and Community Engagement within DECD and requires that it have staff dedicated exclusively to the following:
1.
carrying out the bill’s pilot program, 2.
overseeing the implementation of the 10-year plans developed under the program, 3.
monitoring the state’s progress in reducing concentrated poverty, 4.
coordinating communication between the program’s various parties, and 5.
distributing information in a timely and efficient way.
PILOT PROGRAM Eligible Census Tracts Under the bill, the pilot program is open to any concentrated poverty census tract or group of tracts (qualifying tract) in (1) the four municipalities with the greatest number of these tracts (i.e., Bridgeport, Hartford, New Haven, and Waterbury) or (2) any municipality with a qualifying tract that requests to participate in the program.
To be eligible, the qualifying tract must also have a certified CDC (see BACKGROUND) created by its community members to help carry out the 10-year plan and the municipality’s responsibilities under the program.
10-Year Plans The bill requires the Office of Neighborhood Investment and Community Engagement to develop a 10-year plan for each participating qualifying tract to reduce the levels of concentrated poverty in Connecticut by doing the following:
1.
reducing the percentage of households living in the tract or tracts with incomes below the FPL to 20% or less and sSB456 / File No.
587 30 sSB456 File No.
587 2.
making sustained improvements in community infrastructure and other underlying conditions that prolong concentrated poverty and economic inertia in the tract or tracts.
Indevelopingtheseplans,theofficemustconsultwithDECD’sOffice of Community Economic Development Assistance (OCEDA), OPM, the Office of Workforce Strategy (OWS), Office of Early Childhood (OEC), State Department of Education, applicable CDCs serving the qualifying tract, municipal chief elected officials (CEO), and any other public or private entity the DECD commissioner finds relevant or necessary to achieve these purposes.
Each plan must include, at a minimum:
1.
measurable implementation steps, target dates for completing each step, and the state or local official or agency responsible for doing so;
2.
minimum statewide averages for educational metrics (e.g., kindergarten-, college-, and career- readiness and grade level reading and mathematics) to serve as benchmarks for improvements in each tract or tracts;
and 3.
a list of possible projects, as described below.
Projects The bill requires the Office of Neighborhood Investment and Community Engagement, together with each applicable CEO and CDC, to develop a list of possible projects for each participating qualifying tract’s 10-year plan.
In doing so, they must (1) determine the types of projects they deem most appropriate and effective for eliminating concentrated poverty in the tract or tracts and (2) consider the project eligibility criteria for the certified CDC grant program, HPLO program, and the Community Investment Fund 2030 program (see BACKGROUND).
Under the bill, the possible projects must include capital projects, sSB456 / File No.
587 31 sSB456 File No.
587 workforce development programs, housing development, community and neighborhood improvements, and education initiatives to help residents in meeting and exceeding the educational metrics described above.
Required Reports and Informational Forum Progress Report.
The bill requires the DECD commissioner, by June 1, 2025, togivetheFinance, Revenue, andBonding Committee, awritten progress report on the 10-year plans.
He must submit the finished plans to the General Assembly by January 1, 2026.
Annual Report.
The commissioner must also, starting by February 1, 2027, and annually after, report on the:
1.
Office of Neighborhood Investment and Community Engagements’ implementation progress on each of the 10-year plans, 2.
status of any projects that are pending or in progress for each tract, and 3.
any other relevant or necessary information.
He must submit these annual reports to the General Assembly, OWS, OEC, and OPM.
Informational Forums.
Annually by March 1, from 2027 to 2029, and biennially after that, the Finance, Revenue and Bonding Committee must hold an informational forum for these annual reports.
At each forum, the DECD commissioner must present on the report and other state and municipal officials, participating CDCs, and interested parties may provide their comments on the report and pilot program.
Pilot Program Expansion.
The DECD commissioner must, by January 1, 2029, submit his recommendation to the Finance, Revenue and Bonding Committee on whether the pilot program should be expanded to all qualifying tracts in the state for which a certified CDC has been established.
If he recommends this expansion, the sSB456 / File No.
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587 commissioner and Office of Neighborhood Investment and Community Engagement must immediately carry it out.
Priority for Certain State Grants Under the bill, starting on the date DECD submits the 10-year plans to the General Assembly, the projects included in those plans must have priority for the following state grants, subject to each grant program’s existing criteria:
1.
OCEDA grants for projects certified CDCs undertake in target areas (§ 2);
2.
DECD’s HPLO program grants for eligible projects municipalities undertake in OPM-designated concentrated poverty census tracts (§ 3);
and 3.
Community Investment Fund (CIF) 2030 grants for eligible projects municipalities, CDCs, and nonprofits undertake in municipalities designated as public investment communities or alliance districts (§ 4).
For purposes of the CIF 2030 grants, the 10-year plan projects must also meet the current criteria for priority status under the program.
Specifically, they must (1) be proposed by a municipality that (a) has implemented local hiring preferencesin accordance withstate law or (b) has or will leverage municipal, private, philanthropic, or federal funds for the project and (2) have a project labor agreement or employ or will employ ex-offenders or individuals with physical, intellectual, or developmental disabilities.
As under existing law, the CIF 2030 board must additionally prioritize municipal applications that include a letter of support for the proposed eligible project from a General Assembly member or members in whose district the eligible project is or will be located.
RIGHT OF ACTION AGAINST STATE OR MUNICIPAL OFFICIALS Under the bill, if any state or municipal official does not timely fulfill his or her requirements or responsibilities under the program or a 10- sSB456 / File No.
587 33 sSB456 File No.
587 year plan, a certified CDC created for a concentrated poverty census tract that is aggrieved by this failure may bring a mandamus action against the official.
It must bring the action in the Superior Court for the judicial district where the qualifying tract is located.
A writ of mandamus is a court order that compels a public official or agency to perform a specific duty.
Under Connecticut Supreme Court precedent, a writ is only proper when “(1) the law imposes on the party against whom the writ would run a duty the performance of which is mandatory and not discretionary;
(2) the party applying for the writ has a clear legal right to have the duty performed;
and (3) there is no other specific adequate remedy” (Miles v.
Foley, 253 Conn.
381 (2000)).
BACKGROUND HPLO Census Tracts The law required OPM to compile a list of the census tracts in which at least 30% of the residents have incomes below the FPL, according to the most recent five-year U.S.
Census Bureau American Community Survey (i.e., HPLO census tracts).
The table below lists the municipalities in which these identified tracts are located and the number of tracts per municipality.
Table:
Number of HPLO Tracts by Municipality Town No.
of Identified Tracts Bridgeport 11 Enfield 1 Hartford 19 Mansfield 2 Meriden 3 Middletown 1 New Britain 5 New Haven 10 New London 2 Stamford 1 Waterbury 7 Windham 2 sSB456 / File No.
587 34 sSB456 File No.
587 CDC Certification Process and Grant Eligibility Existing law allows organizations meeting certain requirements to become certified CDCs by applying to DECD’s OCEDA.
A “certified CDC” is a 501(c)(3) federally tax-exempt organization that is certified by the office and meets the following requirements:
1.
focuses on serving areas in which the (a) current unemployment rate exceeds the state’s by at least 25% or (b) mean household income is 80% or less of the state’s as determined by the most recent decennial census (i.e., target areas), 2.
works on urban community development with local residents and businesses to create and expand economic opportunities for low- and moderate-income people, and 3.
showstheoffice that its constituency ismeaningfully represented on its board.
By law, the office must establish a grant program for projects that certified CDCs seek to undertake in target areas, including infrastructure improvements, housing rehabilitation, and streetscape and business façade improvements.
DECD has not implemented this office or grant program to date.
HPLO Program The HPLO program is a six-year, state bond-funded program designed to fund eligible projects in qualifying census tracts designated as HPLO census tracts.
To qualify for the funding (which has not been issued to date), a project must seek to reduce concentrated poverty and its effects within the qualifying census tract.
These projects generally include (1)building, renovating,andrehabilitating mixed-income rental and owner-occupied housing;
(2) establishing or improving workforce development programs;
and (3) building, renovating, or rehabilitating public infrastructure to support and improve private investment opportunities, quality of life, and public safety.
sSB456 / File No.
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587 CIF 2030 CIF 2030 is a five-year, state bond-funded program for financing qualifying economic and community development projects and small businessgrantsineligible municipalities(i.e., thosedesignatedaspublic investment communities or alliance districts).
The CIF 2030 board, located within DECD, directs these investments.
Eligible municipalities, CDCs, and nonprofits may submit funding proposals for eligible projects and grants to the board.
COMMITTEE ACTION Finance, Revenue and Bonding Committee Joint Favorable Substitute Yea 38 Nay 13 (04/03/2024) sSB456 / File No.
587 36
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Action History
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FILE NO. 587
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SENATE CALENDAR NUMBER 356
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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 04/22/24
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FILED WITH LCO
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Joint Favorable Substitute
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PUBLIC HEARING 0401
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REF. TO JOINT COMM. ON Finance, Revenue and Bonding
Sponsors
- J. Sanchez · Primary
- Susan M. Johnson · Primary
- Robyn A. Porter · Primary
- Joshua M. Hall · Primary
- Gary A. Winfield · Primary
- Jan Hochadel · Primary
- Herron Gaston · Primary
- Catherine A. Osten · Primary
- Martha Marx · Primary
- Julie Kushner · Primary
- Jorge Cabrera · Primary
- Rick Lopes · Primary
Sponsorship breakdown
Export CSV (upgrade) →12 sponsors · 0 co-sponsors · 175 not signed on
Sponsors (12)
- Sanchez, J.
- Susan M. Johnson Democratic
- Robyn A. Porter
- Joshua M. Hall Democratic
- Gary A. Winfield Democratic
- Jan Hochadel Democratic
- Herron Gaston Democratic
- Catherine A. Osten Democratic
- Martha Marx Democratic
- Julie Kushner Democratic
- Jorge Cabrera Democratic
- Rick Lopes Democratic
Co-sponsors (0)
None.
Not signed on (175)
175 members have not signed on to this bill.
Show all 175 →"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 456?
- SB 456 is sponsored by Sanchez, J., Susan M. Johnson (Democratic), Robyn A. Porter, Joshua M. Hall (Democratic), Gary A. Winfield (Democratic), Jan Hochadel (Democratic), Herron Gaston (Democratic), Catherine A. Osten (Democratic), Martha Marx (Democratic), Julie Kushner (Democratic), Jorge Cabrera (Democratic), and Rick Lopes (Democratic).
- What is the current status of SB 456?
- This bill died with 2024 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 456?
- Track SB 456 free on One Click Politics — get push/email alerts when it moves.
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