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General Assembly Substitute Bill No. 271
February Session, 2026
AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE LABOR
DEPARTMENT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (c) of section 31 -235 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective October 2
1, 2026): 3
(c) (1) Notwithstanding the provisions of subsection (a) or (b) of this 4
section, an unemployed individual may limit such individual's 5
availability for work to part-time employment, provided the individual 6
(A) provides documentation from a [licensed physician, physician 7
assistant or advanced practice registered nurse ] health care provider 8
that (i) the individual has a physical or mental impairment that is 9
chronic or is expected to be long -term or permanent in nature, and (ii) 10
the individual is unable to work full -time because of such impairment, 11
and (B) establishes, to the satisfaction of the administrator, that such 12
limitation does not effectively remove such individual from the labor 13
force. For purposes of this subdivision, "health care provider" has the 14
same meaning as provided in subparagraph (A) of subdivision (16) of 15
subsection (a) of section 31-236, as amended by this act. 16
(2) In determining whether the individual has satisfied the 17
requirements of subparagraph (B) of subdivision (1) of this subsection, 18
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the administrator shall consider the individual's work history, efforts to 19
find work, the hours such individual is medically permitted to work and 20
the individual's availability during such hours for work that is suitable 21
in light of the individual's impairment. 22
Sec. 2. Subparagraph (A) of subdivision (16) of subsection (a) of 23
section 31-236 of the general statutes is repealed and the following is 24
substituted in lieu thereof (Effective October 1, 2026): 25
(16) (A) For purposes of subparagraph (A)(ii) of subdivision (2) of this 26
subsection, "illness or disability" means an illness or disability 27
diagnosed by a health care provider that necessitates care for the ill or 28
disabled person for a period of time longer than the employer is willing 29
to grant leave, paid or otherwise, and "health care provider" means (i) a 30
doctor of medicine or osteopathy who is authorized to practice medicine 31
or surgery by the state in which the doctor practices; (ii) a podiatrist, 32
dentist, psychologist, optometrist or chiropractor authorized to practice 33
by the state in which such person practices and performs within the 34
scope of the authorized practice; (iii) an advanced practice registered 35
nurse, nurse practitioner, nurse midwife , [or] clinical social worker or 36
physician's assistant authorized to practice by the state in which such 37
person practices and performs within the scope of the authorized 38
practice; (iv) Christian Science practitioners listed with the First Church 39
of Christ, Scientist in Boston, Massachusetts; (v) any medical 40
practitioner from whom an employer or a group health plan's benefits 41
manager will accept certification of the existence of a serious health 42
condition to substantiate a claim for benefits; (vi) a medical practitioner, 43
in a practice enumerated in clauses (i) to (v) , inclusive, of this 44
subparagraph, who practices in a country other than the United States, 45
who is licensed to practice in accordance with the laws and regulations 46
of that country; or (vii) such other health care provider as the Labor 47
Commissioner approves, performing within the scope of the authorized 48
practice. 49
Sec. 3. Section 31 -266c of the general statutes is repealed and the 50
following is substituted in lieu thereof (Effective October 1, 2026): 51
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(a) The administrator, upon the advice of the Attorney General, may 52
abate any contributions or payments in lieu of contributions due under 53
this chapter which have been found by the administrator to be 54
uncollectible. 55
(b) The administrator or the administrator's duly authorized agent 56
may make or entertain an offer of compromise for any contributions or 57
payments in lieu of contributions due under this chapter if such offer is 58
based upon doubt as to the employer's liability for the amount in 59
controversy or doubt as to the collectibility of such amount. For 60
purposes of this section, doubt as to the employer's liability for the 61
amount in controversy exists if there is a genuine dispute as to the 62
existence or amount of the employer's liability under this chapter, and 63
doubt as to the collectibility of such amount exists if the employer's 64
assets and income are less than the full amount of the employer's debts, 65
obligations and liabilities under state or federal law. 66
Sec. 4. Section 53 -303e of the general statutes is repealed and the 67
following is substituted in lieu thereof (Effective October 1, 2026): 68
(a) No employer shall compel any employee engaged in any 69
commercial occupation or in the work of any industrial process to work 70
more than six days in any calendar week. An employee's refusal to work 71
more than six days in any calendar week shall not constitute grounds 72
for [his] such employee's dismissal. 73
(b) Any employee, who believes that [his] such employee's discharge 74
was in violation of subsection (a) of this section may [appeal such 75
discharge to the State Board of Mediation and Arbitration. If said board] 76
file a complaint with the Labor Commissioner . If the commissioner, or 77
the commissioner's designee, finds that the employee was discharged in 78
violation of [said] subsection (a) [, it] of this section, the commissioner, 79
or the commissioner's designee, may order whatever remedy will make 80
the employee whole, including, but not limited to, reinstatement to [his 81
former] such employee's former position or a comparable position. Any 82
party aggrieved by a decision of the commissioner, or the 83
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commissioner's designee, may appeal the decision to the Superior Court 84
in accordance with the provisions of chapter 54. 85
[(c) Any person who violates any provision of this section shall be 86
fined not more than two hundred dollars.] 87
Sec. 5. Section 31 -236f of the general statutes is repealed and the 88
following is substituted in lieu thereof (Effective July 1, 2026): 89
The administrator, as defined in section 31-232b, [in consultation with 90
the advisory board established pursuant to section 31 -250a,] shall 91
develop and implement a procedure or program to insure that an 92
employee, at the time of termination by an employer, receives adequate 93
information regarding the availability of unemployment compensation 94
benefits under chapter 567 and the procedure required for making a 95
claim for such benefits. 96
Sec. 6. Section 31 -264a of the general statutes is repealed and the 97
following is substituted in lieu thereof (Effective July 1, 2026): 98
(a) Unless the context requires a different meaning, the term "bonds" 99
or "revenue bonds" under this section and sections 3 -21a, 31 -222, 31 -100
225a, 31-231a, 31-232b, 31-232d, 31-232f, 31-236, as amended by this act, 101
[31-250a,] 31-259, 31-263, 31-264b, as amended by this act, and 31-274j 102
includes notes issued in anticipation of the issuance of revenue bonds, 103
or notes issued pursuant to a commercial paper program. 104
(b) There is established a fund to be known as the Unemployment 105
Compensation Advance Fund. The fund shall be administered by the 106
State Treasurer as a trust fund, in accordance with the provisions of this 107
section and sections 3-21a, 31-222, 31-225a, 31-231a, 31-232b, 31-232d, 31-108
232f, 31-236, as amended by this act , [31-250a,] 31-259, 31-263, 31-264b, 109
as amended by this act, and 31-274j. The state treasurer may enter into 110
contracts that may be useful to the organization, establishment, 111
operation and administration of the fund under all applicable state and 112
federal laws and may contract with any person to provide whatever 113
services to the fund as, in the discretion of the State Treasurer, are 114
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necessary for the proper operation and administration of the fund. All 115
costs of organizing, establishing and operating the fund, including the 116
costs of personnel and contractual services, shall be a charge upon and 117
paid by the State Treasurer from the fund. In addition, all costs of 118
establishing and administering the necessary procedures for billing, 119
payment and collection of the assessments authorized to be established 120
by the administrator pursuant to section 31-225a shall be a charge upon 121
and paid by the State Treasurer from the fund. All costs related to the 122
organization, establishment and operation of the fund and all costs 123
related to the establishment and administration of billing, payment and 124
collection procedures for moneys received from employers in payment 125
of assessments established in accordance with said section 31 -225a, to 126
the extent not payable from the fund, may be paid from other moneys 127
of the state when made available for such purpose. There is established 128
within the fund an advance account, a debt service and reserve account 129
and an administration account, which accounts shall be held separate 130
and apart from each other. Additional accounts and subaccounts may 131
be established in the proceedings under which the revenue bonds are 132
authorized. 133
(c) There shall be deposited in the advance account: (1) The proceeds 134
of revenue bonds issued by the state for deposit into the account and 135
use in accordance with this section and sections 3 -21a, 31-222, 31-225a, 136
31-231a, 31-232b, 31-232d, 31-232f, 31-236, as amended by this act , [31-137
250a,] 31-259, 31-263, 31-264b, as amended by this act, and 31-274j; (2) 138
federal grants and awards or other federal assistance received by the 139
state for deposit into the account or for other purposes in accordance 140
with said sections; and (3) interest or other income earned on the 141
investment of moneys in the advance account pending transfer or use 142
pursuant to said sections. 143
(d) To the extent that amounts are available therefor in the advance 144
account, and on request of the administrator pursuant to subsection (h) 145
of this section, the State Treasurer shall apply the proceeds (1) to repay, 146
in accordance with the proceedings authorizing any revenue bonds 147
issued pursuant to this section and sections 3 -21a, 31-222, 31-225a, 31-148
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231a, 31 -232b, 31 -232d, 31 -232f, 31 -236, as amended by this act , [31-149
250a,] 31-259, 31-263, 31-264b, as amended by this act, and 31-274j, the 150
outstanding balance of all or any part of the advances made to the state 151
from the federal unemployment account under Title XII of the Social 152
Security Act, 42 USC Sections 1321 to 1324, inclusive, and any interest 153
due on the advances, and (2) to provide advances to the Unemployment 154
Compensation Benefit Fund. 155
(e) Within the debt service and reserve account there are established 156
the following subaccounts: (1) A reserve subaccount into which shall be 157
deposited the proceeds of revenue bonds issued by the state for deposit 158
into the reserve subaccount and use in accordance with this section and 159
sections 3-21a, 31 -222, 31 -225a, 31 -231a, 31 -232b, 31 -232d, 31 -232f, 31 -160
236, as amended by this act , [31-250a,] 31-259, 31 -263, 31 -264b, as 161
amended by this act, and 31-274j; and (2) a debt service subaccount into 162
which shall be deposited, in accordance with the proceeding 163
authorizing the bonds, the proceeds of the initial issuance of revenue 164
bonds which are expected to be applied as capitalized interest to the 165
extent required, and payments received from or on behalf of any 166
employer in payment of assessments established in accordance with 167
said sections attributable to the debt service requirement. Moneys in 168
each subaccount created under this subsection may be applied by the 169
State Treasurer to debt service on revenue bonds. The Treasurer shall 170
apply amounts in the reserve subaccount to the payment of debt service 171
on bonds whenever amounts on deposit in the debt service subaccount 172
are insufficient. The net proceeds of any refunding bonds shall be 173
deposited in a special subaccount within the debt service and reserve 174
account and shall be applied solely to the retirement or redemption of 175
the bonds to be refunded. 176
(f) There shall be deposited in the administration account: (1) The 177
proceeds of revenue bonds expected to be deposited into the 178
administration account and use in accordance with this section and 179
sections 3-21a, 31 -222, 31 -225a, 31 -231a, 31 -232b, 31 -232d, 31 -232f, 31 -180
236, as amended by this act , [31-250a,] 31-259, 31 -263, 31 -264b, as 181
amended by this act, and 31-274j; and (2) any additional money received 182
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from employers in payment of assessments established in accordance 183
with said sections, to offset the costs and expenses of administering and 184
operating the fund. Amounts in the administration account may be 185
applied to offset the costs and expenses of establishing, administering 186
and operating the fund. 187
(g) The fund shall be maintained separate and apart from all other 188
moneys, funds and accounts of the state. Investment earnings credited 189
to the assets of the fund and to any account and subaccount within the 190
fund shall become part of the assets of the fund, account and 191
subaccount, except as otherwise required for rebates in order to assure 192
the excludability of the interest on the bonds from federal income 193
taxation, as provided in the proceedings authorizing any revenue 194
bonds. Any balance remaining in the fund at the end of any fiscal year 195
shall be carried forward in the fund, account and subaccount for the next 196
fiscal year. 197
(h) Upon the issuance of revenue bonds and to the extent there are 198
sufficient proceeds or other amounts in the advance account available 199
therefor, any advances to the Unemployment Compensation Benefit 200
Fund that the administrator deems necessary for the payment of 201
benefits under this chapter or to the Unemployment Compensation 202
Fund for the repayment of advances made to the state from the federal 203
unemployment account, including interest thereon, may be obtained 204
from the advance account of the Unemployment Compensation 205
Advance Fund. The State Treasurer shall, on request filed in writing by 206
the administrator, withdraw from the advance account of the 207
Unemployment Compensation Advance Fund and deposit in the 208
Unemployment Compensation Benefit Fund, amounts determined by 209
the administrator to be necessary for the payment of benefits under this 210
chapter without incurring federal interest charges, or deposit in the 211
Unemployment Compensation Fund amounts determined by the 212
administrator to be required for the repayment of advances made to the 213
state from the federal unemployment account, including interest 214
thereon. The State Treasurer shall, from time to time and at least 215
annually, determine the amount of interest, amortization, reserve and 216
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associated costs required for each advance made from the advance 217
account under this subsection computed in accordance with the 218
requirements of the Unemployment Compensation Fund and the 219
proceedings under which the revenue bonds are authorized and such 220
amounts shall be assessed by the administrator as provided in 221
subdivision (2) of subsection (e) of section 31-225a. For purposes of this 222
subsection, "associated costs" includes all costs related to the efficient 223
establishment, operation and administration of the Unemployment 224
Compensation Advance Fund pursuant to subsection (b) of this section, 225
and the proceedings under which the bonds are issued pursuant to this 226
section and sections 3-21a, 31-222, 31-225a, 31-231a, 31-232b, 31-232d, 31-227
232f, 31-236, as amended by this act , [31-250a,] 31-259, 31-263, 31-264b, 228
as amended by this act, and 31-274j and the costs of establishing and 229
administering the billing, payment and collection procedures referred 230
to in subsection (b) of this section. 231
(i) The moneys in the advance account may also be used to pay any 232
costs related to the issuance of revenue bonds issued pursuant to section 233
31-264b, as amended by this act, and to pay any debt service thereon for 234
which amounts on deposit in the debt service and reserve account 235
maintained pursuant to this section are insufficient. 236
(j) Notwithstanding any provision of this section and sections 3 -21a, 237
31-222, 31-225a, 31-231a, 31-232b, 31-232d, 31-232f, 31-236, as amended 238
by this act , [31-250a,] 31-259, 31-263, 31-264b, as amended by this act, 239
and 31 -274j to the contrary, any money received from the 240
Unemployment Compensation Fund may not be used for any purpose 241
inconsistent with federal law, and any federal grants, awards, advances 242
or other federal assistance referred to herein may not be used for any 243
purpose other than that for which such amounts were granted, 244
awarded, advanced, or otherwise appropriated, respectively. 245
Sec. 7. Section 31 -264b of the general statutes is repealed and the 246
following is substituted in lieu thereof (Effective July 1, 2026): 247
(a) The State Bond Commission may authorize the issuance of 248
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revenue bonds of the state in one or more series and in principal 249
amounts necessary or estimated to be necessary as an advance to the 250
Unemployment Compensation Fund, or to repay advances made to the 251
state from the federal unemployment account, but not in excess of one 252
billion dollars outstanding at any one time and such additional amount 253
of bonds required to fund any debt service and reserve account in 254
accordance with the proceedings authorizing the bonds and the costs of 255
issuance, capitalized interest, if any, and the initial costs and expenses 256
of the administration account, provided in computing the total amount 257
of bonds which may at any one time be outstanding, the principal 258
amount of any refunding bonds issued to refund bonds shall be 259
excluded. The legislature finds that it is an essential governmental 260
function to assure that the balance in the state's account in the federal 261
Unemployment Trust Fund is maintained at a level which is sufficient 262
to pay all benefits and further finds that the financing and payment of 263
the outstanding principal amount which has been advanced to the state 264
from the federal account of the Unemployment Trust Fund and the 265
financing and funding of the state's account in the Unemployment Trust 266
Fund by the issuance of revenue bonds pursuant to this section and 267
sections 3-21a, 31 -222, 31 -225a, 31 -231a, 31 -232b, 31 -232d, 31 -232f, 31 -268
236, as amended by this act , [31-250a,] 31-259, 31 -263, 31 -264a, as 269
amended by this act, and 31 -274j is in the public interest, will 270
substantially result in savings of interest costs, will achieve a public 271
purpose of reducing overall costs of providing employment benefits 272
and will thereby foster and promote economic growth, provide 273
employment opportunities for the residents of the state and assist 274
companies by reducing their overall costs of doing business in the state. 275
(b) Bonds issued pursuant to subsection (a) of this section shall be 276
special obligations of the state and shall not be payable from nor 277
charged upon any funds other than the Unemployment Compensation 278
Advance Fund and revenues pledged to the payment thereof, nor shall 279
the state or any political subdivision thereof be subject to any liability 280
thereon other than from such sources. The issuance of revenue bonds 281
under the provisions of this section and sections 3 -21a, 31-222, 31-225a, 282
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31-231a, 31-232b, 31-232d, 31-232f, 31-236, as amended by this act , [31-283
250a,] 31-259, 31-263, 31-264a, as amended by this act, and 31-274j shall 284
not directly or indirectly or contingently obligate the state or any 285
political subdivision thereof to levy or to pledge any form of taxation 286
whatever therefor or to make any appropriation for their payment other 287
than the appropriation set forth in this section. The bonds shall not 288
constitute a charge, lien or encumbrance, legal or equitable, upon any 289
property of the state or of any political subdivision thereof, except the 290
Unemployment Compensation Advance Fund and revenues pledged or 291
otherwise encumbered under the provisions and for the purpose of said 292
sections. The substance of this limitation shall be plainly stated on the 293
face of each bond. Revenue bonds issued pursuant to said sections shall 294
not be subject to any statutory limitation on the indebtedness of the state 295
and the bonds, when issued, shall not be included in computing the 296
aggregate indebtedness of the state in respect to, and to the extent of, 297
any such limitation. As part of the contract of the state with the owners 298
of the revenue bonds, all amounts necessary for the punctual payment 299
of the debt service requirements with respect to the revenue bonds shall 300
be deemed appropriated, but only from the sources pledged pursuant 301
to this section and sections 3 -21a, 31-222, 31-225a, 31-231a, 31-232b, 31-302
232d, 31-232f, 31-236, as amended by this act , [31-250a,] 31-259, 31-263, 303
31-264a, as amended by this act, and 31-274j. 304
(c) The revenue bonds referred to in subsection (a) of this section may 305
be executed and delivered at the time or times, shall be dated, shall bear 306
interest at the rate or rates, shall mature at the time or times not 307
exceeding ten years from their date, have the rank or priority, be payable 308
in the medium of payment, be issued in coupon or in registered form, 309
or both, carry the registration and transfer privileges and be made 310
redeemable before maturity at the price or prices and under the terms 311
and conditions, all as may be provided by the State Bond Commission. 312
With the exception of subsections (i) and (p) all provisions of section 3 -313
20 and the exercise of any right or power granted thereby which are not 314
inconsistent with the provisions of this section and sections 3 -21a, 31-315
222, 31-225a, 31-231a, 31-232b, 31-232d, 31-232f, 31-236, as amended by 316
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this act, [31-250a,] 31-259, 31-263, 31-264a, as amended by this act, and 317
31-274j are hereby adopted and may be invoked in respect to all revenue 318
bonds authorized by the State Bond Commission pursuant to said 319
sections. For the purposes of subsection (o) of said section 3 -20, "bond 320
act" includes said sections. None of the revenue bonds shall be 321
authorized, except upon a finding by the State Bond Commission that 322
there has been filed with it a request for authorization, which is signed 323
by or on behalf of the State Treasurer and states the terms and conditions 324
as said commission, in its discretion, may require. 325
(d) The principal of and interest on any bonds issued pursuant to this 326
section and sections 3-21a, 31-222, 31-225a, 31-231a, 31-232b, 31-232d, 31-327
232f, 31-236, as amended by this act , [31-250a,] 31-259, 31-263, 31-264a, 328
as amended by this act, and 31-274j shall be secured by a pledge of the 329
Unemployment Compensation Advance Fund and any revenues, 330
receipts, funds or moneys payable to the fund, including any federal 331
grants or advances available for the fund and including the amounts of 332
payment received from assessments established pursuant to said 333
sections, all as set forth in the proceedings authorizing the bonds 334
pursuant to said sections. Any pledge made by the state pursuant to said 335
sections is a pledge within the meaning and for all purposes of title 42a 336
and shall be valid and binding from the time when the pledge is made. 337
Any revenues or other receipts, funds or moneys so pledged and 338
thereafter received by the state shall be subject immediately to the lien 339
of the pledge without any physical delivery thereof or further act. The 340
lien of any pledge shall be valid and binding as against all parties having 341
claims of any kind in tort, contract or otherwise against the state, 342
irrespective of whether the parties have notice of the claims. Neither this 343
section nor sections 3-21a, 31-222, 31-225, 31-231a, 31-232b, 31-232d, 31-344
232f, 31-236, as amended by this act , [31-250a,] 31-259, 31-263, 31-264a, 345
as amended by this act, and 31 -274j, the resolution nor any other 346
instrument by which a pledge is created need be recorded. 347
(e) Revenue bonds issued pursuant to this section and sections 3-21a, 348
31-222, 31-225a, 31-231a, 31-232b, 31-232d, 31-232f, 31-236, as amended 349
by this act , [31-250a,] 31-259, 31-263, 31-264a, as amended by this act, 350
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and 31 -274j are hereby made securities in which public officers and 351
public bodies of the state and its political subdivisions, all insurance 352
companies, credit unions, savings and loan associations, investment 353
companies, banking associations, trust companies, executors, 354
administrators, trustees and other fiduciaries and pension, profit -355
sharing and retirement funds may properly and legally invest funds, 356
including capital in their control or belonging to them. The bonds are 357
hereby made securities which may properly and legally be deposited 358
with and received by any state or municipal officer or any agency or 359
political subdivision of the state for any purpose for which the deposit 360
of bonds or other obligations of the state is now or may hereafter be 361
authorized by law. 362
(f) The proceedings under which bonds are authorized to be issued 363
may contain any or all of the following: (1) Provisions respecting 364
custody of the proceeds from the sale of the bonds, including any 365
requirement that the proceeds be deposited in the Unemployment 366
Compensation Advance Fund and held separate from, or not be 367
commingled with, other funds of the state; (2) provisions for the 368
investment and reinvestment of bond proceeds and after the disposition 369
of any excess bond proceeds or investment earnings thereon; (3) 370
provisions for the execution of reimbursement agreements or similar 371
agreements in connection with credit facilities, including, but not 372
necessarily limited to, letters of credit or policies of bond insurance, 373
remarketing agreements and agreements for the purpose of moderating 374
interest rate fluctuations, and of such other agreements entered into 375
pursuant to section 3 -20a; (4) provisions for the collection, custody, 376
investment, reinvestment and use of the pledged revenues or other 377
receipts, funds or moneys pledged therefor as provided in this section 378
and sections 3 -21a, 31-222, 31-225a, 31-231a, 31-232b, 31-232d, 31-232f, 379
31-236, [31-250a,] 31-259, 31 -263, 31 -264a and 31 -274j; (5) provisions 380
regarding the establishment and maintenance of reserves, sinking funds 381
and any other funds and accounts of the Unemployment Compensation 382
Advance Fund pursuant to said sections and in the amounts and on the 383
terms approved by the State Bond Commission in the amounts 384
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established by the State Bond Commission; (6) covenants for the 385
establishment of pledged revenue coverage requirements for the bonds; 386
(7) provisions for the issuance of additional bonds on a parity with 387
bonds theretofore issued, including establishment of coverage 388
requirements with respect thereto as herein provided; (8) provisions 389
regarding the rights and remedies available in case of a default to 390
bondowners, noteowners or any trustee under any contract, loan 391
agreement, document, instrument or trust indenture, including the right 392
to appoint a trustee to represent their interests upon occurrence of an 393
event of default, as defined in said proceedings, provided if any revenue 394
bonds are secured by a trust indenture, the respective owners of the 395
bonds shall have no authority, except as set forth in the trust indenture, 396
to appoint a separate trustee to represent them; (9) provisions for the 397
payment of rebate amounts; and (10) provisions of covenants of like or 398
different character from the foregoing which are consistent with this 399
section and sections 3-21a, 31-222, 31-225a, 31-231a, 31-232b, 31-232d, 31-400
232f, 31-236, [31-250a,] 31-259, 31-263, 31-264a and 31 -274j, and which 401
the State Bond Commission determines in such proceedings are 402
necessary, convenient or desirable in order to better secure the revenue 403
bonds, or will tend to make the revenue bonds more marketable, and 404
which are in the best interests of the state. Any provision which may be 405
included in proceedings authorizing the issuance of bonds hereunder 406
may be included in an indenture of trust duly approved in accordance 407
with said sections, which secures the revenue bonds issued in 408
anticipation thereof, and in such case the provision of the indenture 409
shall be deemed to be a part of the proceedings as though they were 410
expressly included therein. 411
(g) Whether or not any revenue bonds issued pursuant to this section 412
and sections 3 -21a, 31-222, 31-225a, 31-231a, 31-232b, 31-232d, 31-232f, 413
31-236, as amended by this act , [31-250a,] 31-259, 31 -263, 31 -264a, as 414
amended by this act, and 31-274j are of the form and character to qualify 415
as negotiable instruments under the terms of title 42a, the bonds are 416
hereby made negotiable instruments within the meaning of and for all 417
purposes of title 42a, subject only to the provisions of the bonds. 418
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(h) The state covenants with the purchasers and all subsequent 419
owners and transferees of revenue bonds issued by the state pursuant 420
to this section and sections 3 -21a, 31-222, 31-225a, 31-231a, 31-232b, 31-421
232d, 31-232f, 31-236, as amended by this act , [31-250a,] 31-259, 31-263, 422
31-264a, as amended by this act, and 31 -274j, in consideration of the 423
acceptance of and payment for the bonds, that the bonds shall be free at 424
all times from taxes levied by any municipality or political subdivision 425
or special district having taxing powers of the state, and the principal 426
and interest of any bonds issued under the provisions of said sections, 427
their transfer and the income therefrom, including any profit on the sale 428
or transfer thereof, shall at all times be exempt from any taxation by the 429
state of Connecticut or under its authority, except for estate or 430
succession taxes. The State Treasurer is authorized to include this 431
covenant of the state in any agreement with the owner of any bonds and 432
in any credit facility or reimbursement agreement with respect to the 433
bonds. 434
(i) The state further covenants with the purchasers and all subsequent 435
owners and transferees of bonds issued by the state pursuant to this 436
section and sections 3-21a, 31-222, 31-225a, 31-231a, 31-232b, 31-232d, 31-437
232f, 31-236, as amended by this act , [31-250a,] 31-259, 31-263, 31-264a, 438
as amended by this act, and 31-274j, in consideration of the acceptance 439
of the payment of the bonds, until the bonds, together with the interest 440
thereon, with interest on any unpaid installment of interest and all costs 441
and expenses in connection with any action or proceeding on behalf of 442
the owners, are fully met and discharged or unless expressly permitted 443
or otherwise authorized by the terms of each contract and agreement 444
made or entered into by or on behalf of the state with or for the benefit 445
of such owners, that the state will cause the administrator to impose, 446
charge, raise, levy, collect and apply the pledged assessments and other 447
revenues, receipts, funds or moneys pledged for the payment of debt 448
service requirements in each year in which bonds are outstanding and 449
further, that the state (1) will not limit or alter the duties imposed on the 450
administrator, the State Treasurer and other officers of the state by the 451
proceedings authorizing the issuance of bonds with respect to 452
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application of pledged assessments or other revenues, receipts, funds or 453
moneys pledged for the payment of debt service requirements; (2) will 454
not issue any bonds, notes or other evidences of indebtedness, other 455
than the bonds, having any rights arising out of said sections or secured 456
by any pledge of or other lien or charge on the pledged revenues or other 457
receipts, funds or moneys pledged for the payment of debt service 458
requirements; (3) will not create or cause to be created any lien or charge 459
on the pledged amounts, other than a lien or pledge created thereon 460
pursuant to said sections, provided nothing in this subsection shall 461
prevent the state from issuing evidences of indebtedness (A) which are 462
secured by a pledge or lien which is, and shall on the face thereof, be 463
expressly subordinate and junior in all respects to every lien and pledge 464
created by or pursuant to said sections; or (B) which are secured by a 465
pledge of or lien on moneys or funds derived on or after the date every 466
pledge or lien thereon created by or pursuant to said sections shall be 467
discharged and satisfied; (4) will carry out and perform, or cause to be 468
carried out and performed, each and every promise, covenant, 469
agreement or contract made or entered into by the state or on its behalf 470
with the owners of any bonds; (5) will not in any way impair the rights, 471
exemptions or remedies of the owners; and (6) will not limit, modify, 472
rescind, repeal or otherwise alter the rights or obligations of the 473
appropriate officers of the state to impose, maintain, charge or collect 474
the assessments and other revenues or receipts constituting the pledged 475
revenues as may be necessary to produce sufficient revenues to fulfill 476
the terms of the proceedings authorizing the issuance of the bonds, 477
including pledged revenue coverage requirements, and provided 478
nothing herein shall preclude the state from exercising its power, 479
through a change in law, to limit, modify, rescind, repeal or otherwise 480
alter the character of the pledged assessments or revenues or to 481
substitute like or different sources of assessments, taxes, fees, charges or 482
other receipts as pledged revenues if and when adequate provision shall 483
be made by law for the protection of the holders of outstanding bonds 484
pursuant to the proceedings under which the bonds are issued, 485
including changing or altering the method of establishing the 486
assessments as provided in subparagraph (B) of subdivision (2) of 487
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subsection (e) of section 31 -225a. The State Bond Commission is 488
authorized to include this covenant of the state, as a contract of the state, 489
in any agreement with the owner of any bonds and in any credit facility 490
or reimbursement agreement with respect to the bonds. 491
(j) Pending the use and application of any bond proceeds, the 492
proceeds may be invested by, or at the direction of, the State Treasurer 493
in obligations listed in section 3-20. 494
(k) Any revenue bonds issued under the provisions of this section 495
and sections 3 -21a, 31-222, 31-225a, 31-231a, 31-232b, 31-232d, 31-232f, 496
31-236, as amended by this act , [31-250a,] 31-259, 31 -263, 31 -264a, as 497
amended by this act, and 31-274j and at any time outstanding may, at 498
any time and from time to time, be refunded by the state by the issuance 499
of its revenue refunding bonds in whatever amounts the State Bond 500
Commission may deem necessary, but not to exceed an amount 501
sufficient to refund the principal of the revenue bonds to be so refunded, 502
to pay any unpaid interest thereon and any premiums and commissions 503
necessary to be paid in connection therewith and to pay costs and 504
expenses which the State Treasurer may deem necessary or 505
advantageous in connection with the authorization, sale and issuance of 506
refund bonds. Any such refunding may be effected whether the revenue 507
bonds to be refunded shall have matured or shall thereafter mature. All 508
revenue refunding bonds issued hereunder shall be payable solely from 509
the Unemployment Compensation Advance Fund and revenues or 510
other receipts, funds or moneys out of which the revenue bonds to be 511
refunded thereby are payable and shall be subject to and may be secured 512
in accordance with the provisions of this section. 513
(l) The State Treasurer shall have power, out of any funds available 514
therefor, to purchase revenue bonds issued pursuant to this section and 515
sections 3-21a, 31 -222, 31 -225a, 31 -231a, 31 -232b, 31 -232d, 31 -232f, 31 -516
236, as amended by this act , [31-250a,] 31-259, 31 -263, 31 -264a, as 517
amended by this act, and 31-274j. The State Treasurer may hold, pledge, 518
cancel or resell the bonds, subject to and in accordance with agreements 519
with bondholders. 520
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Sec. 8. Section 31-250a of the general statutes is repealed. ( Effective 521
October 1, 2026) 522
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2026 31-235(c)
Sec. 2 October 1, 2026 31-236(a)(16)(A)
Sec. 3 October 1, 2026 31-266c
Sec. 4 October 1, 2026 53-303e
Sec. 5 July 1, 2026 31-236f
Sec. 6 July 1, 2026 31-264a
Sec. 7 July 1, 2026 31-264b
Sec. 8 October 1, 2026 Repealer section
LAB Joint Favorable Subst.
JUD Joint Favorable