Sec. 4-28n. Cigarette manufacturers: Agents for service of process. Bonds or other security.
Sec. 4-28f. Tobacco and Health Trust Fund. Transfers from Tobacco Settlement Fund. Board of trustees. Disbursements. (a) There is created a Tobacco and Health Trust Fund which shall be a separate nonlapsing fund. The purpose of the trust fund shall be to create a continuing significant source of funds to support and encourage development of programs to reduce tobacco and nicotine use through prevention, education and cessation programs that use evidence-based best practices regarding (1) state and community interventions, (2) communication methods to disseminate health information to a wide audience, (3) cessation interventions, (4) surveillance and evaluation, and (5) infrastructure, administration and management. The trust fund shall be used to support the reduction in use of all tobacco and nicotine products, including, but not limited to, combustible, noncombustible, electronic and synthetic tobacco and nicotine products.
(b) The trust fund may accept transfers from the Tobacco Settlement Fund and may apply for and accept gifts, grants, donations, assignments or transfers from public or private sources to enable the trust fund to carry out its objectives.
(c) The trust fund shall be administered by a board of trustees, except that the board shall suspend its operations from July 1, 2003, to June 30, 2005, inclusive. The board shall consist of seventeen trustees. The appointment of the initial trustees shall be as follows: (1) The Governor shall appoint four trustees, one of whom shall serve for a term of one year from July 1, 2000, two of whom shall serve for a term of two years from July 1, 2000, and one of whom shall serve for a term of three years from July 1, 2000; (2) the speaker of the House of Representatives and the president pro tempore of the Senate each shall appoint two trustees, one of whom shall serve for a term of two years from July 1, 2000, and one of whom shall serve for a term of three years from July 1, 2000; (3) the majority leader of the House of Representatives and the majority leader of the Senate each shall appoint two trustees, one of whom shall serve for a term of one year from July 1, 2000, and one of whom shall serve for a term of three years from July 1, 2000; (4) the minority leader of the House of Representatives and the minority leader of the Senate each shall appoint two trustees, one of whom shall serve for a term of one year from July 1, 2000, and one of whom shall serve for a term of two years from July 1, 2000; and (5) the Secretary of the Office of Policy and Management, or the secretary's designee, shall serve as an ex-officio voting member. Following the expiration of such initial terms, subsequent trustees shall serve for a term of three years. The trustees shall continue to serve until their successors are appointed or designated. Any vacancy occurring other than by expiration of term shall be filled in the same manner as the original appointment for the balance of the unexpired term. The period of suspension of the board's operations from July 1, 2003, to June 30, 2005, inclusive, shall not be included in the term of any trustee serving on July 1, 2003. The trustees shall serve without compensation except for reimbursement for necessary expenses incurred in performing their duties. The board of trustees shall establish rules of procedure for the conduct of its business which shall include, but not be limited to, criteria, processes and procedures to be used in selecting programs to receive money from the trust fund. The trust fund shall be within the Office of Policy and Management for administrative purposes only. The board of trustees shall, not later than January first of each year, submit a report of its activities and accomplishments to the joint standing committees of the General Assembly having cognizance of matters relating to public health and appropriations and the budgets of state agencies, in accordance with section 11-4a.
(d) (1) For the fiscal year ending June 30, 2023, and each fiscal year thereafter, the board of trustees, by majority vote, shall recommend authorization of disbursement from the trust fund of the amount deposited in the trust fund for the fiscal year pursuant to subsection (c) of section 4-28e, for the purposes described in subsection (a) of this section and section 19a-6d. The board's recommendations shall give (A) priority to comprehensive tobacco and nicotine control programs for (i) prevention of initial tobacco and nicotine product use among youth and young adults, (ii) smoking cessation directed at adults and youth, (iii) elimination of exposure to secondhand smoke and aerosol, and (iv) identification and elimination of tobacco and nicotine-related disparities, and (B) consideration to the availability of private matching funds. Recommended disbursements from the trust fund shall be in addition to any resources that would otherwise be appropriated by the state for such purposes and programs.
(2) The board of trustees shall submit such recommendations for the authorization of disbursement from the trust fund to the joint standing committees of the General Assembly having cognizance of matters relating to public health and appropriations and the budgets of state agencies. Not later than thirty days after receipt of such recommendations, said committees shall advise the board of their approval, modifications, if any, or rejection of the board's recommendations. If said joint standing committees do not concur, the speaker of the House of Representatives, the president pro tempore of the Senate, the majority leader of the House of Representatives, the majority leader of the Senate, the minority leader of the House of Representatives and the minority leader of the Senate each shall appoint one member from each of said joint standing committees to serve as a committee on conference. The committee on conference shall submit its report to both committees, which shall vote to accept or reject the report. The report of the committee on conference may not be amended. If a joint standing committee rejects the report of the committee on conference, the board's recommendations shall be deemed approved. If the joint standing committees accept the report of the committee on conference, the joint standing committee having cognizance of matters relating to appropriations and the budgets of state agencies shall advise the board of said joint standing committees' approval or modifications, if any, of the board's recommended disbursement. If said joint standing committees do not act within thirty days after receipt of the board's recommendations for the authorization of disbursement, such recommendations shall be deemed approved. Disbursement from the trust fund shall be in accordance with the board's recommendations as approved or modified by said joint standing committees.
(3) After such recommendations for the authorization of disbursement have been approved or modified pursuant to subdivision (2) of this subsection, any modification in the amount of an authorized disbursement in excess of fifty thousand dollars or ten per cent of the authorized amount, whichever is less, shall be submitted to said joint standing committees and approved, modified or rejected in accordance with the procedure set forth in subdivision (2) of this subsection. Notification of all disbursements from the trust fund made pursuant to this section shall be sent to the joint standing committees of the General Assembly having cognizance of matters relating to public health and appropriations and the budgets of state agencies, through the Office of Fiscal Analysis.
(4) The board of trustees shall submit a biennial report to the joint standing committees of the General Assembly having cognizance of matters relating to public health and appropriations and the budgets of state agencies, in accordance with the provisions of section 11-4a. Such report shall include, but need not be limited to, an accounting of the unexpended amount in the trust fund, if any, all disbursements and other expenditures from the trust fund and an evaluation of the performance and impact of each program receiving funds from the trust fund. Such report shall also include the measurable outcome and evaluation criteria and application process used to select programs to receive such funds.
(June Sp. Sess. P.A. 99-2, S. 27, 72; P.A. 00-216, S. 15, 28; June Sp. Sess. P.A. 01-4, S. 40, 58; P.A. 03-19, S. 3; June 30 Sp. Sess. P.A. 03-3, S. 10; June Sp. Sess. P.A. 07-4, S. 24; P.A. 08-145, S. 1; P.A. 13-234, S. 151; P.A. 14-76, S. 4; P.A. 18-168, S. 56; P.A. 22-110, S. 39; 22-118, S. 197; P.A. 23-92, S. 4.)
History: June Sp. Sess. P.A. 99-2 effective July 1, 1999; P.A. 00-216 designated existing provisions as Subsecs. (a) and (b), added provisions in Subsec. (a) re purposes of trust fund and added Subsecs. (c) re board of trustees and (d) re disbursements, effective June 1, 2000; June Sp. Sess. P.A. 01-4 amended Subsec. (c) by adding provisions re bimonthly meeting and annual report of the board of trustees, effective July 1, 2001; P.A. 03-19 made technical changes in Subsec. (c), effective May 12, 2003; June 30 Sp. Sess. P.A. 03-3 amended Subsecs. (c) and (d) by adding provisions re suspension of the board's operations from July 1, 2003, to June 30, 2005, effective August 20, 2003; June Sp. Sess. P.A. 07-4 amended Subsec. (c) to require board to meet biannually instead of bimonthly, effective July 1, 2007; P.A. 08-145 amended Subsec. (c) by deleting requirement that each trustee approve annual report of board and amended Subsec. (d)(1) by adding new Subparas. (A) and (B), permitting board to authorize disbursement of funds for fiscal year ending June 30, 2009, and each fiscal year thereafter, and redesignating existing Subparas. (A) and (B) as clauses (i) and (ii), effective July 1, 2008; P.A. 13-234 amended Subsec. (c) by adding provisions re suspension of board operations from July 1, 2015, to June 30, 2016, and making technical and conforming changes, and amended Subsec. (d) by adding provisions re recommendation by board for authorization of disbursement for fiscal years ending June 30, 2014, June 30, 2015, and June 30, 2017, in Subdiv. (1), by adding exception for fiscal year ending June 30, 2016, in Subdivs. (2) and (4) and making technical changes, effective June 19, 2013; P.A. 14-76 amended Subsec. (c) by deleting provisions suspending operations of the board from July 1, 2015, to June 30, 2016, amended Subsec. (d)(1) by changing “section 19a-6c” to “section 19a-6d”, deleting former provision re limitations on disbursements and adding new provision re disbursements in Subpara. (B), and made conforming changes; P.A. 18-168 amended Subsec. (c) by deleting requirement that board meet not less than biannually, except during fiscal years ending June 30, 2004, and June 30, 2005 and replaced “during the fiscal years ending June 30, 2004, and June 30, 2005” with “following a fiscal year in which the trust fund does not receive a deposit from the Tobacco Settlement Fund” and amended Subsec. (d)(4) by replacing “during the fiscal years ending June 30, 2004, and June 30, 2005” with “following a fiscal year in which the trust fund does not receive a deposit from the Tobacco Settlement Fund”; P.A. 22-110 made a technical change in Subsec. (c); P.A. 22-118 amended Subsec. (c) by deleting provision re year in which trust fund does not receive a deposit, amended Subsec. (d) by deleting provisions re period commencing July 1, 2000, and ending June 30, 2003, replacing provisions re for fiscal year ending June 30, 2014, and each fiscal year thereafter board may recommend authorization of disbursement up to total unobligated balance in trust fund after certain disbursements not to exceed $12,000,000 with provisions re for fiscal year ending June 30, 2023, and each fiscal year thereafter board of trustees by majority vote shall recommend authorization of disbursement of amount deposited in trust fund for purposes described in Sec. 19a-6d(a) in Subdiv. (1), deleted reference to exception during fiscal years ending June 30, 2004, and June 30, 2005, and made a technical change in Subdiv. (2), and substantially amended provisions re board of trustees submission of report in Subdiv. (4), effective July 1, 2022; P.A. 23-92 amended Subsec. (a) by deleting Subdiv. designator (1), replacing “abuse” with “and nicotine use” and adding reference to “evidence-based best practices” in former Subdiv. (1), deleting existing Subdivs. (2) and (3), adding new Subdivs. (1) to (3) and Subdivs. (4) and (5) re evidence-based best practices, and adding provision re use of trust fund to support reduction in use of all tobacco and nicotine products, amended Subsec. (b) by adding references to assignments and transfers, amended Subsec. (c) by adding provisions re trustee service until successor appointment or designation and vacancy appointments, amended Subsec. (d)(1) by replacing clause designators (i) and (ii) with Subpara. designators (A) and (B), replacing provision re programs that address tobacco and substance abuse with provision re comprehensive tobacco and nicotine control programs in former clause (i), and adding Subparas. (A)(i) to (A)(iv) re purposes of comprehensive tobacco and nicotine control programs, amended Subsec. (d)(4) by adding “measurable outcome and evaluation”, and made technical and conforming changes throughout, effective July 1, 2023.
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Sec. 4-28n. Cigarette manufacturers: Agents for service of process. Bonds or other security. (a)(1) Any nonparticipating manufacturer that has not registered to do business in this state, pursuant to title 33 or 34, as a foreign corporation or business entity shall, as a condition precedent to having its brand families listed or retained in the directory maintained pursuant to section 4-28m, appoint and continually engage without interruption the services of an agent in this state to act as agent for the service of process on whom all process and any action or proceeding against it concerning or arising out of the enforcement of the provisions of sections 4-28h to 4-28r, inclusive, may be served in any manner authorized by law.
(2) Any nonparticipating manufacturer that maintains funds in escrow pursuant to subsection (a) of section 4-28i shall appoint and continually engage without interruption the services of an agent in this state to act as agent for the service of process on whom all process and any action or proceeding against it concerning or arising out of the enforcement of the provisions of sections 4-28h to 4-28r, inclusive, may be served in any manner authorized by law.
(3) Such service on such agent shall constitute legal and valid service of process on the nonparticipating manufacturer. The nonparticipating manufacturer shall provide the name, address, telephone number and proof of the appointment and availability of such agent to, and to the satisfaction of, the commissioner and the Attorney General.
(b) A nonparticipating manufacturer shall provide notice to the commissioner and the Attorney General at least thirty calendar days prior to termination of the authority of an agent and shall further provide proof, to the satisfaction of the commissioner and the Attorney General, of the appointment of a new agent no less than five calendar days prior to the termination of an existing agent appointment. In the event an agent terminates an agency, the nonparticipating manufacturer shall notify the commissioner and the Attorney General of such termination not later than five calendar days after such termination and shall include proof, to the satisfaction of the commissioner and the Attorney General, of the appointment of a new agent.
(c) Any nonparticipating manufacturer whose products are or previously have been sold in this state and that has not appointed or designated an agent as required in this section shall be deemed to have appointed the Secretary of the State as such agent and may be proceeded against in courts of this state by service of process upon the Secretary of the State, except that the appointment of the Secretary of the State as such agent shall not satisfy the condition precedent to having the brand families of the nonparticipating manufacturer listed or retained in the directory.
(d) As a condition precedent to having its brand families listed or retained in the directory, a nonparticipating manufacturer located outside of the United States shall cause each of its importers into the United States of each of its brand families to be sold in the state to appoint and maintain the services of an agent in the state, and shall provide notification to the commissioner and the Attorney General regarding the agents of its importers in the manner prescribed in subsections (a) and (b) of this section. Each importer of a nonparticipating manufacturer's cigarettes that are sold in the state who does not appoint or designate an agent as required in this section shall be deemed to have appointed the Secretary of the State as such agent and may be proceeded against in courts of this state by service of process upon the Secretary of the State, except that the appointment of the Secretary of the State as such agent shall not satisfy the condition precedent to having the brand families of the nonparticipating manufacturer listed or retained in the directory.
(e) (1) In conjunction with the certification required under section 4-28l and as a condition precedent to having its brand families listed or retained in the directory, each nonparticipating manufacturer shall post annually with the commissioner either a good and valid bond that is issued by a surety company authorized to do business in this state or other security acceptable to the commissioner. Any bond or other security shall be in favor of the state of Connecticut and shall be equal in amount to the greater of (A) twenty-five thousand dollars, or (B) the greatest amount of the total escrow owed for a calendar year in any of the five calendar years preceding the posting of such bond or other security. The commissioner may, in consultation with the Attorney General, authorize the release of such bond or other security once it has been established that the nonparticipating manufacturer has met the requirements of section 4-28i.
(2) If the nonparticipating manufacturer that posted a bond has failed to make, or have made on its behalf, escrow deposits equal to the full amount owed for a quarter not later than fifteen days following the due date for the quarter under section 4-28i, the commissioner may execute on the bond, to (A) recover the delinquent escrow, which amount shall be deposited into a qualified escrow account as defined in section 4-28h, or a reasonable alternative account as determined by the commissioner, and (B) recover civil penalties and costs authorized under section 4-28j. Escrow amounts above the amount collected on the bond shall remain due from the nonparticipating manufacturer and, as provided in subsection (d) of section 4-28j, from the importers that sold such nonparticipating manufacturer's cigarettes in this state during such calendar quarter.
(P.A. 04-218, S. 4; P.A. 14-155, S. 9; P.A. 17-105, S. 1; P.A. 23-92, S. 6.)
History: P.A. 14-155 added Subsec. (d) re appointment of agent by importers and Subsec. (e) re surety bond requirements, effective January 1, 2015; P.A. 17-105 substantially amended Subsec. (e)(1) including to replace provisions re nonparticipating manufacturer to file surety bond at least 10 days prior to first day of calendar quarter with provisions re nonparticipating manufacturer in conjunction with certification required under Sec. 4-28l to post annually with commissioner good and valid bond or other security acceptable to commissioner, replace provision re bond to be in favor of commissioner with provision re bond or other security to be in favor of the state and add provision allowing commissioner to authorize release of bond or other security; P.A. 23-92 amended Subsec. (a) by designating existing provisions Subdivs. (1) and (3), adding Subdiv. (2) re agents for service of process for nonparticipating manufacturers that maintain funds in escrow, and making a technical change, and amended Subsec. (c) by adding “or previously have been” and replacing “without appointing or designating” with “and that has not appointed or designated”.
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Sec. 4-28s. Regulation of certain cigarette manufacturers under tobacco settlement agreements: Assignment of escrow funds to the state. (a) Any tobacco product manufacturer that places funds into escrow pursuant to subsection (a) of section 4-28i, or a third party to which a tobacco product manufacturer has transferred such manufacturer's interests in such funds, may make an assignment to the state of all or part of its interest in any funds in the qualified escrow fund. Such assignment shall (1) be permanent and irrevocable, (2) apply to all assigned funds in the qualified escrow fund, including all assigned funds deposited in such fund prior to and on or after the assignment is executed and all interest or other appreciation on the assigned funds, (3) be in writing and signed by a duly authorized representative of the assignor, and (4) become effective upon delivery of the assignment to the Attorney General and the financial institution where the qualified escrow fund is maintained. The tobacco product manufacturer, its transferee, the Attorney General or the financial institution where the qualified escrow fund is maintained may make such amendments to the qualified escrow fund agreement as may be necessary to effectuate an assignment of funds executed pursuant to this subdivision or a withdrawal of funds from such qualified escrow fund pursuant to subsection (b) of section 4-28i.
(b) Any funds assigned to the state pursuant to subsection (a) of this section shall be deposited in the Tobacco and Health Trust Fund created in section 4-28f.
(c) Any financial institution in which a qualified escrow fund is maintained for which an assignment of funds has been executed pursuant to subsection (a) of this section may file a petition in the Superior Court for an order authorizing a transfer of funds in such qualified escrow fund to the Tobacco and Health Trust Fund. The petition shall state the factual and legal basis for the relief sought. The financial institution shall serve the petition on the Attorney General at the time the petition is filed in the Superior Court.
(d) Nothing in this section shall be construed to (1) waive the right of the state to bring a claim against a tobacco product manufacturer under section 4-28j, or (2) relieve a tobacco product manufacturer from any past, current or future obligations such manufacturer may have pursuant to chapter 47. Any funds assigned to the state pursuant to subsection (a) of this section shall be credited on a dollar-for-dollar basis against any judgment or settlement applicable to the escrow obligation the assigned funds were initially deposited to satisfy.
(P.A. 23-92, S. 5.)
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Sec. 4-30a. Transfer of surplus to Budget Reserve Fund, State Employees Retirement Fund and Teachers' Retirement Fund. Reduction of outstanding state indebtedness. Transfer of funds from Budget Reserve Fund. (a)(1) All revenue in excess of three billion one hundred fifty million dollars received by the state each fiscal year from estimated and final payments of the personal income tax imposed under chapter 229 and the affected business entity tax imposed under section 12-699 shall be transferred by the Treasurer to a special fund to be known as the Budget Reserve Fund. On and after July 1, 2018, the threshold amount shall be adjusted annually by the compound annual growth rate of personal income in the state over the preceding five calendar years, using data reported by United States Bureau of Economic Analysis.
(2) The General Assembly may amend the threshold amount of three billion one hundred fifty million dollars, by vote of at least three-fifths of the members of each house of the General Assembly, due to changes in state or federal tax law or policy or significant adjustments to economic growth or tax collections.
(b) After the accounts for the General Fund have been closed for each fiscal year and the Comptroller has determined the amount of unappropriated surplus in said fund, after any amounts required by provision of law to be transferred for other purposes have been deducted, the amount of such surplus shall be transferred by the Treasurer to the Budget Reserve Fund.
(c) (1) (A) Prior to July 1, 2024, whenever the amount in the Budget Reserve Fund equals fifteen per cent of the net General Fund appropriations for the current fiscal year, no further transfers shall be made by the Treasurer to the Budget Reserve Fund and the amount of such funds in excess of that transferred to said fund shall be deemed to be appropriated, as selected by the Treasurer in the best interests of the state, to (i) the State Employees Retirement Fund, in addition to the contributions required pursuant to section 5-156a, but not exceeding five per cent of the unfunded past service liability of the state employees retirement system as set forth in the most recent actuarial valuation certified by the State Employee Retirement Commission, or (ii) the Teachers' Retirement Fund, in addition to the payments required pursuant to section 10-183z, but not exceeding five per cent of the unfunded past service liability of the teachers' retirement system as set forth in the most recent actuarial valuation prepared for the Teachers' Retirement Board.
(B) On and after July 1, 2024, whenever the amount in the Budget Reserve Fund equals fifteen per cent or more but less than eighteen per cent of the net General Fund appropriations for the current fiscal year, (i) fifty per cent of the amount of such surplus in excess of that transferred to the Budget Reserve Fund shall be transferred to said fund, to a maximum amount in said fund of eighteen per cent of the net General Fund appropriations for the current fiscal year, and (ii) fifty per cent of the amount of such surplus shall be deemed to be appropriated, as selected by the Treasurer in the best interests of the state, to (I) the State Employees Retirement Fund, in addition to the contributions required pursuant to section 5-156a, but not exceeding five per cent of the unfunded past service liability of the state employees retirement system as set forth in the most recent actuarial valuation certified by the State Employee Retirement Commission, or (II) the Teachers' Retirement Fund, in addition to the payments required pursuant to section 10-183z, but not exceeding five per cent of the unfunded past service liability of the teachers' retirement system as set forth in the most recent actuarial valuation prepared for the Teachers' Retirement Board.
(C) On and after July 1, 2024, whenever the amount in the Budget Reserve Fund equals eighteen per cent of the net General Fund appropriations for the current fiscal year, no further transfers shall be made by the Treasurer to the Budget Reserve Fund and the amount of such funds in excess of that transferred to said fund shall be deemed to be appropriated, as selected by the Treasurer in the best interests of the state, to (i) the State Employees Retirement Fund, in addition to the contributions required pursuant to section 5-156a, but not exceeding five per cent of the unfunded past service liability of the state employees retirement system as set forth in the most recent actuarial valuation certified by the State Employee Retirement Commission, or (ii) the Teachers' Retirement Fund, in addition to the payments required pursuant to section 10-183z, but not exceeding five per cent of the unfunded past service liability of the teachers' retirement system as set forth in the most recent actuarial valuation prepared for the Teachers' Retirement Board.
(d) Any surplus in excess of the amounts transferred to the Budget Reserve Fund and the state employees retirement system or the teachers' retirement system, as applicable, shall be deemed to be appropriated for: (1) Redeeming prior to maturity any outstanding indebtedness of the state selected by the Treasurer in the best interests of the state; (2) purchasing outstanding indebtedness of the state in the open market at such prices and on such terms and conditions as the Treasurer shall determine to be in the best interests of the state for the purpose of extinguishing or defeasing such debt; (3) providing for the defeasance of any outstanding indebtedness of the state selected by the Treasurer in the best interests of the state by irrevocably placing with an escrow agent in trust an amount to be used solely for, and sufficient to satisfy, scheduled payments of both interest and principal on such indebtedness; (4) making additional payments towards unfunded past service liability of the state employees retirement system or of the teachers' retirement system, as selected by the Treasurer in the best interests of the state; or (5) any combination of these methods. Pending the use or application of such amount for the payment of interest and principal, such amount may be invested in (A) direct obligations of the United States government, including state and local government treasury securities that the United States Treasury issues specifically to provide state and local governments with required cash flows at yields that do not exceed Internal Revenue Service arbitrage limits, (B) obligations guaranteed by the United States government, and (C) securities backed by United States government obligations as collateral and for which interest and principal payments on the collateral generally flow immediately through to the security holder.
(e) Whenever the amount in the Budget Reserve Fund equals five per cent or more of the net General Fund appropriations for the current fiscal year, the General Assembly may transfer funds in excess of the five per cent threshold from the Budget Reserve Fund, for the purpose of paying unfunded past service liability of the state employees retirement system or of the teachers' retirement system as the General Assembly, in consultation with the Treasurer, determines to be in the best interests of the state. Such payments shall be in addition to any other contributions or payments required pursuant to section 5-156a or 10-183z or subsections (c) and (d) of this section.
(f) Moneys in the Budget Reserve Fund shall be expended only as provided in this subsection and subsection (e) of this section.
(1) Whenever in any fiscal year the Comptroller has determined the amount of a deficit applicable with respect to the immediately preceding fiscal year, to the extent necessary, the amount of funds credited to the Budget Reserve Fund shall be deemed to be appropriated for purposes of funding such deficit.
(2) The General Assembly may transfer funds from the Budget Reserve Fund to the General Fund if any consensus revenue estimate maintained or revised pursuant to section 2-36c for the current biennium projects a decline in General Fund revenues for the current biennium of one per cent or more from the total amount of General Fund estimated revenue on which the budget act or any adjusted appropriation and revenue plan, enacted by the General Assembly for the current biennium, was based. Any such transfer may be made at any time during the remainder of the current biennium.
(3) The General Assembly may transfer funds from the Budget Reserve Fund to the General Fund if the consensus revenue estimate maintained or revised not later than April thirtieth annually pursuant to section 2-36c projects a decline in General Fund revenues, in either year or both years of the biennium immediately following such consensus revenue estimate, of one per cent or more from the total of General Fund appropriations for the current year. Any such transfer shall be made in the fiscal year for which such deficit is projected.
(g) The Treasurer is authorized to invest all or any part of said fund in accordance with the provisions of section 3-31a. The interest derived from the investment of said fund shall be credited to the General Fund.
(P.A. 79-623, S. 6, 8; P.A. 82-443, S. 1, 3; June Sp. Sess. P.A. 83-37, S. 1, 3; P.A. 85-516, S. 1, 8; P.A. 86-403, S. 8, 132; June 23, Sp. Sess. II P.A. 86-1, S. 7, 10; P.A. 92-205, S. 6, 12; May Sp. Sess. P.A. 92-14, S. 1, 11; P.A. 02-118, S. 1; P.A. 03-2, S. 56; P.A. 15-244, S. 164; June Sp. Sess. P.A. 17-2, S. 704, 729; P.A. 18-49, S. 7; 18-81, S. 20; P.A. 23-1, S. 15.)
History: P.A. 82-443 amended Subsec. (a) to repeal provision that not less than 10% of any surplus, when determined, be transferred to the budget reserve fund, and to provide that the entire amount of any surplus, when determined, be transferred to said fund, added provision to Subsec. (a) that the amount of any surplus which may not be transferred to the budget reserve fund because of the maximum size of said fund, shall be deemed to be appropriated to retire state indebtedness and amended Subsec. (b) to provide that when a deficit has been determined for the immediately preceding fiscal year, funds credited to the budget reserve fund shall be deemed to be appropriated to fund such deficit; June Sp. Sess. P.A. 83-37 amended Subsec. (a) to provide that the portion of the state's total indebtedness to be retired by the amount of surplus in excess of that transferred to the budget reserve fund is the portion of indebtedness “in excess of the state's normal debt retirement schedule” and amended Subsec. (b) to repeal provision authorizing expenditure of moneys in budget reserve fund upon request of governor and approval of two-thirds of each house of the general assembly; P.A. 85-516 amended Subsec. (c) by adding provision that the interest derived from the investment of the fund shall be credited to the general fund; P.A. 86-403 made technical change in Subsec. (a); June 23 Sp. Sess. II P.A. 86-1 amended Subsec. (a) to clarify that “the amount in said fund” and “general fund appropriations” are “for the fiscal year in progress” and to replace purposes for which amount of surplus in excess of that transferred to budget reserve fund shall be deemed to be appropriated with purposes in Subdivs. (1) to (4), inclusive, and added provision re investment of amount pending application of such amount for payment of interest and principal; P.A. 92-205 amended Subsec. (a) to add provision re appropriation of surplus to state employees retirement fund, but not exceeding 5% of unfunded past service liability of the system; May Sp. Sess. P.A. 92-14 changed effective date of P.A. 92-205 but did not affect the date applicable to this section; P.A. 02-118 amended Subsec. (a) to increase amount of surplus transferred to fund from 5% to 7.5% of net General Fund appropriations for fiscal year in progress, effective July 1, 2002; P.A. 03-2 amended Subsec. (a) to increase amount of surplus transferred to fund from 7.5% to 10% of net General Fund appropriations for the fiscal year in progress, effective February 28, 2003; P.A. 15-244 substantially revised Subsec. (a) to designate existing provisions as Subdivs. (3), (6) and (7), define “combined revenue” in new Subdiv. (1), establish Restricted Grants Fund in new Subdiv. (2), establish transfer formulas commencing in fiscal year ending June 30, 2021, in new Subdiv. (4), require the Comptroller to certify threshold level for deposits to Budget Reserve Fund in new Subdiv. (5), and revise formula for transfer to State Employees Retirement Fund in Subdiv. (6), amended Subsec. (b) to describe purpose of Budget Reserve Fund and provide formula for transfer when 2 per cent decline in tax revenue is projected, added Subsec. (d) re approval by General Assembly of any bill to reduce or eliminate amount of deposit to Budget Reserve Fund and Subsec. (e) re reports to General Assembly, and made technical and conforming changes throughout, effective July 1, 2019; June Sp. Sess. P.A. 17-2 added new Subsec. (a) re transfer of revenue in excess of $3,150,000,000 of estimated and final payments of personal income tax to Budget Reserve Fund, redesignated existing Subsec. (a) as Subsecs. (b) and (c), substantially amended redesignated Subsec. (c) re use of funds in excess of Budget Reserve Fund threshold levels, redesignated existing Subsec. (b) as Subsec. (d) and amended same by designating existing provisions re amounts deemed appropriated as Subdiv. (1) and adding Subdivs. (2) and (3) re General Assembly transfer of funds from Budget Reserve Fund, redesignated existing Subsec. (c) as Subsec. (e), made technical and conforming changes, and repealed P.A. 15-244, S. 164, effective July 1, 2019, effective October 31, 2017; P.A. 18-49 amended Subsec. (a) to add reference to affected business entity tax imposed under Sec. 12-699, effective May 31, 2018; P.A. 18-81 amended Subsec. (a) to designate existing provision re transfer of estimated and final payments of personal income tax as Subdiv. (1), amend same to add annual adjustment of threshold amount, and add Subdiv. (2) re amendment of threshold amount by General Assembly, effective May 15, 2018; P.A. 23-1 amended Subsec. (c) to specify application of Subpara. (A) to prior to July 1, 2024, add Subparas. (B) and (C) re amounts in Budget Reserve Fund and use of surplus in excess of transferred amounts on and after July 1, 2024, redesignate existing Subpara. (B) as Subsec. (d) and make conforming changes in Subdiv. (1), and redesignate existing Subdiv. (2) as Subsec. (e) and make conforming changes, redesignated existing Subsec. (d) as Subsec. (f) and made a conforming change, and redesignated existing Subsec. (e) as Subsec. (g), effective July 1, 2023.
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Sec. 4-37e. Definitions. As used in this section and sections 4-37f to 4-37j, inclusive:
(1) “State agency” means each state board, authority, commission, department, office, institution, council or other agency of the state including, but not limited to, each constituent unit and each public institution of higher education.
(2) “Foundation” means an organization, fund or any other legal entity which is (A) exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, and (B) established for the principal purpose of receiving or using private funds for charitable, scientific, cultural, educational or related purposes that support or improve a state agency or for coordinated emergency recovery purposes. Such an organization, fund or other legal entity shall not be deemed to be a state agency or a public agency, as defined in section 1-200.
(3) “Executive authority” means (A) a department head, as defined in section 4-5, (B) the executive secretary or president of a constituent unit, (C) the chief executive officer of a public institution of higher education and, if such public institution of higher education is an accredited state community-technical college, the chief executive officer of a campus of such college, and (D) the chief executive officer of any other state agency.
(4) “Constituent unit” means a constituent unit as defined in section 10a-1.
(5) “Public institution of higher education” means a public college or university in the state system of higher education, any campus of an accredited state community-technical college, or The University of Connecticut School of Law.
(6) “Coordinated emergency recovery” means the support and improvement of state services affected by a natural disaster, act of domestic terrorism, catastrophic event or other unforeseen emergency, including, but not limited to, services provided by the Department of Emergency Services and Public Protection and the Office of Victim Services.
(P.A. 89-267, S. 1; P.A. 98-68, S. 1, 3; P.A. 01-141, S. 14; P.A. 13-275, S. 1; P.A. 23-3, S. 1.)
History: P.A. 98-68 applied section to Sec. 4-37j, effective July 1, 1998; P.A. 01-141 redefined “foundation” to provide that such organization, fund or other legal entity not be deemed a public agency as defined in Sec. 1-200; P.A. 13-275 amended Subdiv. (2) by redefining “foundation” to clarify reference to Internal Revenue Code of 1986 and include an entity established “for coordinated emergency recovery purposes” and added Subdiv. (6) defining “coordinated emergency recovery”, effective July 11, 2013; P.A. 23-3 redefined “executive authority” in Subdiv. (3) and “public institution of higher education” in Subdiv. (5), effective July 1, 2023.
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