SB 651 — AN ACT PERMITTING MUNICIPAL CONTRIBUTIONS TO CONNECTICUT HIGHER EDUCATION TRUST ACCOUNTS.

Senate General Assembly SubstituteFile Bill No.

651214 January Session, 2021 ANSubstitute ACTSenate PERMITTINGBill MUNICIPALNo. CONTRIBUTIONS TO CONNECTICUT HIGHER EDUCATION TRUST ACCOUNTS.

651 Senate, March 30, 2021 The Committee on Children reportedthrough SEN.

ANWAR of the 3rd Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT PERMITTING MUNICIPAL CONTRIBUTIONS TO CONNECTICUT HIGHER EDUCATION TRUST ACCOUNTS.

(c) On and after July 1, 2023, any municipality may, by vote of its legislativebody,electtoparticipateintheprogramestablishedpursuant tosSB651 subsection/ (b)File ofNo. this section.

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214 to subsection (b) of this section.

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214 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:

None Municipal Impact:

Municipalities Effect FY 22 $ FY 23 $ The Out Years Various Potential None None See Below Municipalities Cost Explanation The bill requires the state treasurer to establish a program to allow municipalities to contribute to Connecticut Higher Education Trust (CHET) accounts.

Municipalities that choose to do this would incur a cost that would vary based on the number of contributions they make, and the amount of those contributions.

There is no cost to the state treasurer to establish this program.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of CHET contributions made by municipalities.

sSB651 / File No.

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214 OLR Bill Analysis sSB 651 AN ACT PERMITTING MUNICIPAL CONTRIBUTIONS TO CONNECTICUT HIGHER EDUCATION TRUST ACCOUNTS.

SUMMARY This bill requires the state treasurer to establish a program by June 1, 2023, under which a municipality may annually deposit funds into each Connecticut Higher Education Trust (CHET) account (see BACKGROUND) established for a designated beneficiary who is a resident of the municipality.

The bill allows the treasurer to adopt regulations to implement the program.

Beginning July 1, 2023, any municipality may elect to participate in the program by vote of its legislative body.

The bill also allows municipalities to accept funds from private sources in order to make deposits into CHET accounts.

EFFECTIVE DATE:

July 1, 2021 BACKGROUND CHET The CHET program is a state-sponsored, federally tax-advantaged college savings program (CGS § 3-22e et seq.).

COMMITTEE ACTION Committee on Children Joint Favorable Yea 10 Nay 4 (03/15/2021) sSB651 / File No.

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