General Assembly

 

Substitute Bill No. 188

    January Session, 2015

 

*_____SB00188PD____033015____*

AN ACT CONCERNING MUNICIPAL MANDATE RELIEF AND AUTHORIZING DISTRESSED MUNICIPALITIES TO FUND SCHOLARSHIPS THROUGH MUNICIPAL BONDING.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (a) of section 45a-8 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) The town or towns comprising each probate district shall provide court facilities meeting the minimum standards required by this section. Any expenses incurred by such town or towns for such court facilities pursuant to this section shall be reimbursed to such town or towns by the State Treasurer from the Probate Court Administration Fund established pursuant to section 45a-82. If a probate district consists of more than one town, the expense shall be allocated to the towns in such proportion as the towns may determine by agreement or, in the absence of such agreement, in proportion to their grand lists last perfected. Such court facilities shall include: (1) Office space appropriate for the conduct of judicial business, including (A) a room for the judge of probate sufficient in size for ordinary matters in which judicial proceedings may be conducted in private, (B) a separate room for the court staff, and (C) on a prearranged basis, access to a larger hearing room for the conduct of unusually large court hearings; (2) furniture and furnishings appropriate to a court facility; (3) use and maintenance of a copying machine and the necessary supplies; (4) use and maintenance of court record systems and equipment, including such record books and electronic, digital, microfilming or similar systems required to maintain, provide access to and produce court records, and the necessary supplies for such systems, equipment and records; (5) the necessary stationery, postage and other related supplies in order that the court may properly carry out its duties; (6) typing equipment with which to complete the necessary records; (7) basic telephone service, which shall include all local calls; (8) if a court is computerized, a dedicated telephone line and maintenance of the computer equipment; and (9) adequate liability, fire, loss, theft and replacement insurance on the furniture, furnishings, equipment, court facilities and the records of the court.

Sec. 2. Subsection (b) of section 12-202a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) Notwithstanding the provisions of subsection (a) of this section, the tax shall not apply to:

(1) Any new or renewal contract or policy entered into with the state on or after July 1, 1997, to provide health care coverage to state employees, retirees and their dependents;

(2) Any subscriber charges received from the federal government to provide coverage for Medicare patients;

(3) Any subscriber charges received under a contract or policy entered into with the state to provide health care coverage to Medicaid recipients which charges are attributable to a period on or after January 1, 1998;

(4) Any new or renewal contract or policy entered into with the state on or after April 1, 1998, to provide health care coverage to eligible beneficiaries under the HUSKY Plan, Part A, HUSKY Plan, Part B, or HUSKY Plus programs, each as defined in section 17b-290;

(5) Any new or renewal contract or policy entered into with the state on or after February 1, 2000, to provide health care coverage to retired teachers, spouses or surviving spouses covered by plans offered by the state teachers' retirement system;

(6) Any new or renewal contract or policy entered into on or after July 1, 2001, and prior to July 1, 2015, to provide health care coverage to employees of a municipality and their dependents under a plan procured pursuant to section 5-259;

(7) Any new or renewal contract or policy entered into on or after July 1, 2001, to provide health care coverage to employees of nonprofit organizations and their dependents under a plan procured pursuant to section 5-259;

(8) Any new or renewal contract or policy entered into on or after July 1, 2003, to provide health care coverage to individuals eligible for a health coverage tax credit and their dependents under a plan procured pursuant to section 5-259;

(9) Any new or renewal contract or policy entered into on or after July 1, 2005, to provide health care coverage to employees of community action agencies and their dependents under a plan procured pursuant to section 5-259; [or]

(10) Any new or renewal contract or policy entered into on or after July 1, 2005, to provide health care coverage to retired members and their dependents under a plan procured pursuant to section 5-259; or

(11) Any new or renewal contract or policy entered into on or after July 1, 2015, to provide health care coverage to municipal employees, municipal retirees and dependents of such employees or retirees.

Sec. 3. (NEW) (Effective October 1, 2015) (a) Any distressed municipality, as defined in section 32-9p of the general statutes, may, upon approval by its legislative body or, in any municipality in which the legislative body is a town meeting, by the board of selectmen, adopt an ordinance establishing a scholarship fund. Such ordinance shall include provisions for (1) the establishment of scholarship eligibility requirements that include a requirement that the person seeking the scholarship apply for every appropriate grant and scholarship to offset postsecondary education expenses, enroll in a degree-granting program at an institution of higher education that is accredited by the Board of Governors of Higher Education or regionally accredited, complete at least twelve credit hours per semester and maintain a grade point average of at least 2.5; (2) the establishment of scholarship retention requirements, that may include performance of community service in such municipality; (3) the establishment of a committee to review applications and award scholarships from the fund; (4) the determination of factors to be considered for revocation and reinstatement of a scholarship award; (5) scholarship fund discontinuance that is consistent with subsection (e) of this section; (6) limitation on the amount of scholarship awards so that no such award shall exceed the annual rate of tuition, room and board and fees charged to in-state students to attend The University of Connecticut at Storrs; (7) allowing the fund to accept gifts, donations, bequests or funds from any other private or public source; (8) the funding of tuition, room and board and fees for residents of the municipality who are United States citizens or permanent residents of the United States to attend a public or independent institution of higher education in this state and who remain residents of such municipality while attending such institution of higher education; (9) voter registration in a different municipality while attending an institution of higher education, without affecting eligibility for a scholarship award provided pursuant to this section; and (10) conditions that recipients of a scholarship award pursuant to this section shall agree to work and live in this state for a certain number of years, as determined by the municipality, and that if a recipient fails to satisfy such agreement, the municipality may require repayment of all or part of the scholarship award.

(b) A distressed municipality may authorize the issuance of bonds, notes or other obligations in accordance with the provisions of chapter 109 of the general statutes for the purpose of funding a scholarship fund established pursuant to subsection (a) of this section. The provisions of section 7-374 of the general statutes shall apply to any bonds issued pursuant to this section. Any scholarship for tuition, room and board and fees provided pursuant to this section shall be paid directly to the institution of higher education. The proceeds of bonds, notes or other obligations issued pursuant to this section shall be paid into the fund created pursuant to subsection (a) of this section.

(c) The budget-making authority of such municipality may, from time to time, direct the town treasurer to invest such portion of such fund as in its opinion is advisable, provided: (1) Not more than forty per cent of the total amount of the fund shall be invested in equity securities, and (2) any portion of such fund not so invested may be invested in (A) bonds or obligations of, or guaranteed by, the state or the United States, or agencies or instrumentalities of the United States, (B) certificates of deposit, commercial paper, savings accounts and bank acceptances, (C) the obligations of any state of the United States or any political subdivision thereof or the obligations of any instrumentality, authority or agency of any state or political subdivision thereof, provided at the time of investment such obligations are rated within the top rating category of any nationally recognized rating service or of any rating service recognized by the Banking Commissioner and applicable to such obligations, (D) the obligations of any regional school district in this state, of any municipality in this state or any metropolitan district in this state, provided at the time of investment such obligations of such government entity are rated within one of the top two rating categories of any nationally recognized rating service or of any rating service recognized by the Banking Commissioner and applicable to such obligations, (E) any obligations in which a trustee may invest pursuant to section 36a-353 of the general statutes, (F) investment agreements with financial institutions whose long-term obligations are rated within one of the top two rating categories of any nationally recognized rating service or of any rating service recognized by the Banking Commissioner or whose short-term obligations are rated within the top rating category of any nationally recognized rating service or of any rating service recognized by the Banking Commissioner, or (G) investment agreements fully secured by obligations of, or guaranteed by, the United States or agencies or instrumentalities of the United States.

(d) The town treasurer shall annually submit a complete and detailed report of the condition of such fund to the chief executive officer, the budget-making authority and the legislative body of such municipality and such report shall be made a part of the annual report of the municipality. Such report shall comply with the standard auditing procedures of such municipality.

(e) Such fund may be discontinued after recommendation by the chief executive officer and the budget-making authority to the legislative body and upon approval of such body. To the extent there is any remaining portion of such fund, the fund shall be converted into, or added to, a sinking fund to provide for the retirement of the bonded indebtedness of the municipality. If the municipality has no bonded indebtedness, such fund shall be transferred to the general fund of the municipality.

Sec. 4. (NEW) (Effective October 1, 2015) If a resident who enrolls in a degree-granting program offered by a public institution of higher education receives a scholarship from a fund established by an ordinance pursuant to section 3 of this act, the public institution of higher education shall not reduce any financial aid offered by such institution of higher education to such resident based on such resident's receipt of the scholarship, except when a reduction in financial aid is required by federal law or regulation.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2015

45a-8(a)

Sec. 2

from passage

12-202a(b)

Sec. 3

October 1, 2015

New section

Sec. 4

October 1, 2015

New section

PD

Joint Favorable Subst.