House Bill No. 5095

Public Act No. 09-1

AN ACT CONCERNING DEFICIT MITIGATION FOR THE FISCAL YEAR ENDING JUNE 30, 2009.

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

Section 1. Subsection (a) of section 17b-371 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) [There is] On July 1, 2009, to the extent permitted by federal law, there shall be established within the General Fund, a separate, nonlapsing account which shall be known as the "Long-Term Care Reinvestment account". The account shall contain any moneys required by law and this section to be deposited in the account. Any funds resulting from the enhanced federal medical assistance percentage received by the state under the Money Follows the Person demonstration project pursuant to Section 6071 of the Deficit Reduction Act of 2005 shall be deposited in the account.

Sec. 2. Subsection (d) of section 17b-371 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(d) On or before January 1, [2009] 2010, and annually thereafter, the Commissioner of Social Services shall submit a report, in accordance with section 11-4a, to the Governor and to the joint standing committees of the General Assembly having cognizance of matters relating to human services and appropriations and the budgets of state agencies concerning the long-term care reinvestment account established under this section. The report shall include financial information concerning the money in the account, including, but not limited to, information on the number, amount and type of expenditures from the fund during the prior calendar year and estimates of the impact of the fund on present and future Medicaid expenditures.

Sec. 3. Section 21 of public act 07-1 of the June special session, as amended by public act 08-1 of the November 24 special session, is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The following sums are appropriated from the General Fund for the purposes herein specified for the fiscal year ending June 30, 2007:

(b) Except as provided in subsections (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), and (q), of this section, funds appropriated in subsection (a) of this section shall not lapse on June 30, 2007, and shall continue to be available for expenditure during the fiscal year ending June 30, 2008.

(c) Funds appropriated to Legislative Management in subsection (a) of this section, for Other Expenses, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 75,000 shall be available during the fiscal year ending June 30, 2008; the sum of $ 5,000 shall be available during the fiscal year ending June 30, 2009.

(d) Funds appropriated to the Office of Policy and Management in subsection (a) of this section, for Contingency Needs, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 6,000,000 shall be available during the fiscal year ending June 30, 2008; the sum of $ 6,000,000 shall be available during the fiscal year ending June 30, 2009.

(e) Funds appropriated to the Department of Environmental Protection in subsection (a) of this section, for Clean Diesel Buses, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 5,000,000 shall be available during the fiscal year ending June 30, 2008; the sum of $ 3,000,000 shall be available during the fiscal year ending June 30, 2009.

(f) Funds appropriated to the Department of Education in subsection (a) of this section, for Longitudinal Data Systems, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 3,650,000 shall be available during the fiscal year ending June 30, 2008; the sum of $ 1,250,000 shall be available during the fiscal year ending June 30, 2009.

(g) Funds appropriated to the Department of Education in subsection (a) of this section, for School Safety, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 5,000,000 shall be available during the fiscal year ending June 30, 2008; the sum of [$ 3,000,000] $2,000,000 shall be available during the fiscal year ending June 30, 2009.

(h) Funds appropriated to the State Library in subsection (a) of this section, for Arts Inventory, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 75,000 shall be available during the fiscal year ending June 30, 2008.

(i) Funds appropriated to the Department of Higher Education in subsection (a) of this section, for Other Expenses, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 100,000 shall be available during the fiscal year ending June 30, 2008.

(j) Funds appropriated to the Teachers' Retirement Board in subsection (a) of this section, for Retirement Contributions, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 90,000,000 shall be available during the fiscal year ending June 30, 2008; the sum of $ 210,000,000 shall be available during the fiscal year ending June 30, 2009.

(k) Funds appropriated to the Department of Transportation in subsection (a) of this section, for Bus Operations, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 2,200,000 shall be available during the fiscal year ending June 30, 2008; the sum of $ 2,294,500 shall be available during the fiscal year ending June 30, 2009.

(l) Funds appropriated to the Department of Transportation in subsection (a) of this section, for Town Aid Road Grants, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 8,000,000 shall be available during the fiscal year ending June 30, 2008; the sum of $ 8,000,000 shall be available during the fiscal year ending June 30, 2009.

(m) Funds appropriated to the Debt Service-State Treasurer in subsection (a) of this section, for Supportive Housing Debt Service, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 3,000,000 shall be available during the fiscal year ending June 30, 2009.

(n) Funds appropriated to the Miscellaneous Appropriations Administered by the Comptroller in subsection (a) of this section, for the Reimbursement to Towns for Loss of Taxes on State Property, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 6,999,929 shall be available during the fiscal year ending June 30, 2008; the sum of $ 6,999,929 shall be available during the fiscal year ending June 30, 2009.

(o) Funds appropriated to the Miscellaneous Appropriations Administered by the Comptroller in subsection (a) of this section, for Grants to Towns, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 6,748,519 shall be available during the fiscal year ending June 30, 2008; the sum of $ 6,748,519 shall be available during the fiscal year ending June 30, 2009.

(p) Funds appropriated to the Miscellaneous Appropriations Administered by the Comptroller in subsection (a) of this section, for the Reimbursement to Towns for Loss of Taxes on Private Tax-Exempt Property, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 6,998,519 shall be available during the fiscal year ending June 30, 2008; the sum of $ 6,998,519 shall be available during the fiscal year ending June 30, 2009.

(q) Funds appropriated to the State Comptroller – Fringe Benefits in subsection (a) of this section, for State Employee Health Service Cost, shall not lapse on June 30, 2007, and shall continue to be available for expenditure for such purpose as follows: The sum of $ 4,000,000 shall be available during the fiscal year ending June 30, 2009.

Sec. 4. (Effective from passage) The amounts appropriated to the following agencies in section 11 of public act 07-1 of the June special session, as amended by section 68 of public act 07-5 of the June special session and section 3 of public act 08-1 of the November 24 special session, are reduced by the following amounts for the fiscal year ending June 30, 2009:

Sec. 5. (Effective from passage) Notwithstanding section 9-701 of the general statutes, the sum of $ 7,500,000 shall be transferred from the Citizens' Election Fund and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 6. (Effective from passage) Notwithstanding the provisions of subparagraph (A) of subdivision (2) of subsection (c) of section 4-28e of the general statutes, the sum of $ 6,000,000 shall be transferred from the Tobacco and Health Trust Fund and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 7. (Effective from passage) Notwithstanding the provisions of subparagraph (B) of subdivision (2) of subsection (c) of section 4-28e of the general statutes, the sum of $ 3,000,000 shall be transferred from the Biomedical Research Trust Fund and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 8. (Effective from passage) (a) Notwithstanding the provisions of section 16a-22l of the general statutes, the sum of $ 5,000,000 shall be transferred from the fuel oil conservation account and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

(b) Notwithstanding the provisions of said section, no transfers shall be made to the fuel oil conservation account for tax payments due in the fiscal year ending June 30, 2009.

Sec. 9. (Effective from passage) Notwithstanding section 54-56k of the general statutes, the sum of $ 2,000,000 shall be transferred from the pretrial account and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 10. (Effective from passage) Notwithstanding the provisions of section 22a-449b of the general statutes, no transfers shall be made to the underground storage tank petroleum clean-up account, established under section 22a-449c of the general statutes, for tax payments due on January 31, 2009.

Sec. 11. (Effective from passage) Notwithstanding section 22a-451 of the general statutes, the sum of $ 3,000,000 shall be transferred from the emergency spill response account and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 12. (Effective from passage) Notwithstanding the provisions of section 14-164m of the general statutes, the sum of $ 1,000,000 shall be transferred from the Emissions Enterprise Fund and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 13. (Effective from passage) Notwithstanding section 3-55i of the general statutes, the sum of $ 150,000 shall be transferred from the Mashantucket Pequot and Mohegan Fund and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 14. (Effective from passage) For the fiscal year ending June 30, 2009, the sum of $ 1,000,000 shall be transferred from the energy unit load management account administered by the Office of Policy and Management and credited to the resources of the General Fund.

Sec. 15. Section 22a-245a of the general statutes is repealed and the following is substituted in lieu thereof (Effective April 1, 2009, and applicable to periods commencing on or after December 1, 2008):

(a) Each deposit initiator shall open a special interest-bearing account at a Connecticut branch of a financial institution, as defined in section 45a-557a, to the credit of the deposit initiator. Each deposit initiator shall deposit in such account an amount equal to the refund value established pursuant to subsection (a) of section 22a-244, for each beverage container sold by such deposit initiator. Such deposit shall be made not more than [three business days] one month after the date such beverage container is sold, provided for any beverage container sold during the period from December 1, 2008, to December 31, 2008, inclusive, such deposit shall be made not later than January 5, 2009. All interest, dividends and returns earned on the special account shall be paid directly into such account. Such moneys shall be kept separate and apart from all other moneys in the possession of the deposit initiator.

(b) Any reimbursement of the refund value for a redeemed beverage container shall be paid from the deposit initiator's special account. Upon the Commissioner of Environmental Protection's adoption of written policies and procedures establishing an accounting system under section 22a-245, any such reimbursement shall be paid in the manner prescribed in such policies and procedures until the adoption of final regulations under said section 22a-245. Upon the adoption of such regulations, any such reimbursement shall be paid in accordance with such regulations.

(c) Each deposit initiator shall submit a report on March 15, 2009, for the period from December 1, 2008, to February 28, 2009, inclusive. Each deposit initiator shall submit a report on July 31, 2009, for the period from March 1, 2009, to June 30, 2009, inclusive, and thereafter shall submit a quarterly report for the immediately preceding calendar quarter one month after the close of such quarter. Each such report shall be submitted to the Commissioner of Environmental Protection, on a form prescribed by the commissioner and with such information the commissioner deems necessary, including, but not limited to: (1) The balance in the special account at the beginning of the quarter for which the report is prepared; (2) a list of all deposits credited to such account during such quarter, including all refund values paid to the deposit initiator and all interest, dividends or returns received on the account; (3) a list of all withdrawals from such account during such quarter, [and] all service charges and overdraft charges on the account and all payments made pursuant to subsection (d) of this section; and (4) the balance in the account at the close of the quarter for which the report is prepared.

(d) On or before April 30, 2009, each deposit initiator shall pay the balance outstanding in the special account that is attributable to the period from December 1, 2008, to March 31, 2009, inclusive, to the Commissioner of Environmental Protection for deposit in the General Fund. Thereafter the balance outstanding in the special account that is attributable to the immediately preceding calendar quarter shall be paid by the deposit initiator one month after the close of such quarter to the Commissioner of Environmental Protection for deposit in the General Fund. If the amount of the required payment pursuant to this subsection is not paid by the date seven days after the due date, a penalty of ten per cent of the amount due shall be added to the amount due. The amount due shall bear interest at the rate of one and one-half per cent per month or fraction thereof, from the due date. Any such penalty or interest shall not be paid from funds maintained in the special account.

(e) If moneys deposited in the special account are insufficient to pay for withdrawals authorized pursuant to subsection (b) of this section, the amount of such deficiency shall be subtracted from the next succeeding payment or payments due pursuant to subsection (d) of this section until the amount of the deficiency has been subtracted in full.

[(d)] (f) The State Treasurer may, independently or upon request of the commissioner, examine the accounts and records of any deposit initiator maintained under sections 22a-243 to 22a-245, inclusive, and any related accounts and records, including receipts, disbursements and such other items as the State Treasurer deems appropriate.

[(e)] (g) The Attorney General may, independently or upon complaint of the commissioner, institute any appropriate action or proceeding to enforce any provision of this section or any regulation adopted pursuant to section 22a-245 to implement the provisions of this section.

Sec. 16. (NEW) (Effective April 1, 2009) At the end of each fiscal year commencing with the fiscal year ending on June 30, 2009, the Comptroller is authorized to record as revenue for such fiscal year the amount of outstanding balances required to be paid to the state under section 22a-245a of the general statutes, as amended by this act, and that is received by the state not later than five business days after the last day of July immediately following the end of such fiscal year.

Sec. 17. (Effective from passage) The sum of $ 15,000,000, exclusive of assessments, shall be transferred from the Banking Fund, established under section 36a-65 of the general statutes, and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 18. (Effective from passage) The sum of $ 4,000,000 shall be transferred from the Workers' Compensation Administration Fund, established under section 31-344a of the general statutes, and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 19. (Effective from passage) Notwithstanding the provisions of section 16-331cc of the general statutes, the sum of $ 2,000,000 shall be transferred from the public, educational and governmental programming and education technology investment account and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 20. (Effective from passage) Notwithstanding the provisions of section 16-48a of the general statutes, the sum of $ 2,000,000 shall be transferred from the Consumer Counsel and Public Utility Control Fund and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 21. (Effective from passage) Notwithstanding section 3-99c of the general statutes, the sum of $ 1,000,000 shall be transferred from the commercial recording account and credited to the resources of the General Fund for the fiscal year ending June 30, 2009.

Sec. 22. (Effective from passage) Notwithstanding the provisions of section 7-520 of the general statutes, the sum of $ 1,166,440 shall be transferred from the local emergency relief account and credited to the resources of the Transportation Fund for the fiscal year ending June 30, 2009.

Sec. 23. (Effective from passage) The sum of $ 287,000 shall be transferred from the Insurance Recoveries account and credited to the resources of the Transportation Fund for the fiscal year ending June 30, 2009.

Sec. 24. (Effective from passage) The sum of $ 1,200,000 shall be transferred from the General Services Revolving Fund and credited to the resources of the General Fund revenue for the fiscal year ending June 30, 2009.

Sec. 25. Section 2 of public act 08-1 of the November 24 special session is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The unexpended balance of funds appropriated to the Department of Economic and Community Development, for Biofuels, in section 21 of public act 07-1 of the June special session, as amended by this act, shall continue to be available for expenditure for such purpose during the fiscal year ending June 30, 2009, as follows: (1) The sum of [$ 3,650,000] $2,600,000 shall be available for production grants, and (2) the sum of $ 1,000,000 shall be available for the fuel diversification research grant program.

(b) The Department of Economic and Community Development may enter into one or more agreements, pursuant to chapter 55a of the general statutes, for the distribution of grants under subsection (a) of this section or the operation of the program under subdivision (2) of said subsection.

Sec. 26. (Effective from passage) (a) The Secretary of the Office of Policy and Management shall monitor expenditures for personal services agreements and consultant agreements for executive branch agencies during the fiscal year ending June 30, 2009, and shall take such action as necessary to reduce expenditures for such purpose by two million dollars during said fiscal year.

(b) On or before March 15, 2009, the Secretary of the Office of Policy and Management shall submit a report, in accordance with section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to government administration and elections and appropriations and the budgets of state agencies identifying reductions of at least eight million dollars in the aggregate in the cost to executive branch agencies for personal services agreements and consulting agreements for the fiscal year ending June 30, 2009. Such reductions shall be in addition to any reductions achieved under subsection (a) of this section. The report shall (1) identify all personal services agreements and consulting agreements to be affected for each executive branch agency, (2) specify the amount of the reduction for each such agreement, and (3) identify any penalties that might be incurred for any agreement included in the report.

Sec. 27. (Effective from passage) On or before March 1, 2009, the Commissioner of Children and Families, in consultation with the Commissioner of Social Services, shall submit a plan, in accordance with section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to human services and appropriations and the budgets of state agencies to establish services for children and youth requiring residential treatment who would normally be placed in out-of-state facilities. Such plan shall include utilization of existing state facilities to the extent clinically appropriate and feasible, and shall also address available licensed residential treatment capacity. The plan shall delineate the costs, savings and feasibility of implementation on or before July 1, 2009, or as soon after such date as is practicable.

Sec. 28. (NEW) (Effective from passage) (a) Any payment made pursuant to Public Law 110-185, the Economic Stimulus Act of 2008, to an individual who is an applicant for or recipient of benefits or services under any state or local program financed in whole or in part with state funds, that provides such benefits or services based on need, shall not be counted as income, nor shall any such payment be counted as resources for the month of receipt or the following two months, for the purpose of determining the individual's or any other individual's eligibility for such benefits or services or the amount of such benefits or services.

(b) Any such payment shall not be counted as income for purposes of determining the eligibility for, or the benefit level of, such individual under any property tax exemption, property tax credit or rental rebate program financed in whole or in part with state funds, nor shall such payment be counted as income for purposes of any property tax relief program that a municipality may, at its option, offer.

Sec. 29. (Effective from passage) The sum of $ 1,704,890 appropriated to the Department of Economic and Community Development in section 21 of public act 07-1 of the June special session, as amended by this act, for Deferred Maintenance for Housing, is transferred to Tax Abatement, and such funds shall be available for expenditure during the fiscal year ending June 30, 2009, for the program established under subsection (a) of section 8-216 of the general statutes.

Sec. 30. (Effective from passage) The sum of $ 2,204,000 appropriated to the Department of Economic and Community Development in section 21 of public act 07-1 of the June special session, as amended by this act, for Deferred Maintenance for Housing, is transferred to Payment in Lieu of Taxes, and such funds shall be available for expenditure during the fiscal year ending June 30, 2009, for the program established under subsection (b) of section 8-216 of the general statutes.

Sec. 31. Subsection (d) of section 59 of public act 07-1 of the June special session is repealed and the following is substituted in lieu thereof (Effective from passage):

(d) Notwithstanding the provisions of section 4-28e of the general statutes, for the fiscal year ending June 30, 2009, the sum of $ 11,000,000 shall be transferred from the Tobacco and Health Trust Fund as follows: $7,300,000 to the Department of Social Services, for the implementation and administration of the Charter Oak Health Plan, and $3,700,000 to be credited to the resources of the General Fund.

Sec. 32. (Effective from passage) The sum of $ 274,000 is appropriated to the Department of Administrative Services, from the General Fund, for the fiscal year ending June 30, 2009, for Other Expenses, to be distributed to state agencies that contract for custodial services with contractors employing workers who (1) are entitled to receive the standard rate of wages under section 31-57f of the general statutes, and (2) receive health care benefits to assist in covering the cost of such benefits for the workers and their dependents. Such assistance shall be in addition to any other amounts the state is required to pay under said section or by contract to cover the cost of health care benefits for such workers and their dependents.

Sec. 33. (Effective from passage) Notwithstanding the provisions of section 4-87 of the general statutes, for the fiscal year ending June 30, 2009, whenever any budgeted agency has insufficient funds to achieve the lapse in Other Expenses directed by the Governor pursuant to section 4 of public act 08-1 of the November 24 special session, the Governor may, at the request of the budgeted agency, transfer from any other specific appropriation of any budgeted agency the amount necessary to achieve the directed lapse. No transfer to or from any specific appropriation of a sum or sums of over fifty thousand dollars or ten per cent of any such specific appropriation, whichever is less, or transfers totaling more than one million five hundred thousand dollars in the aggregate shall be made under this section without the consent of the Finance Advisory Committee. Notification of any such transfer made shall be sent to the joint standing committee of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies, through the Office of Fiscal Analysis.

Sec. 34. Subsection (a) of section 22a-21j of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009):

(a) The Commissioner of Environmental Protection, in consultation with the Commissioner of Education, shall establish a school bus emissions reduction program. Such program shall be established regardless of the price levels established by the procurement contracts developed pursuant to subsection (c) of section 14-164o. Through the program, the Commissioner of Environmental Protection shall:

(1) Within available appropriations, make grants with funds from the school bus emissions reduction account, established pursuant to section 22a-21k, to municipalities and local and regional school boards to reimburse them for the cost of retrofitting full-sized school buses that are projected to be in service on or after September 1, 2010. [, as follows: (A) Not to exceed five thousand dollars for each bus with an engine model year between 2003 to 2006, inclusive, that has been equipped with a closed crankcase filtration system and a level 3 device; (B) not to exceed two thousand five hundred dollars for each bus that has been equipped with a closed crankcase filtration system and a level 2 device; and (C) not to exceed one thousand two hundred fifty dollars for each bus that has been equipped with a closed crankcase filtration system and a level 1 device. In the event the procurement contracts developed pursuant to section 14-164o fail to establish a price level for the purchase, installation and warranty of a closed crankcase filtration system and either a level 1 device, level 2 device or level 3 device in each type of full-sized school bus that is equivalent to or less than the grant level for such emissions control device specified in this section, municipalities and local and regional boards of education may opt to retrofit their full-sized school buses and continue to be eligible to receive the grants established in this section] For such grants the commissioner may use applicable existing contracts or provide a supplemental bid process;

(2) Develop an outreach plan and materials for educating and notifying municipalities, local and regional boards of education and bus companies about the requirements of section 14-164o; and

(3) Assist municipalities and local and regional boards of education and bus companies to retrofit their full-sized school buses. Such assistance shall include, but not be limited to, guidance in choosing whether to retrofit buses with either a level 1 device, level 2 device or level 3 device.

Sec. 35. Section 2 of public act 08-68 and section 8 of public act 08-2 of the August special session are repealed. (Effective from passage)

Approved January 15, 2009