Connecticut HB 5039: AN ACT CONCERNING A PERSONAL INCOME TAX CREDIT FOR CERTAIN COLLEGE GRADUATES WITH STEM DEGREES.

Bill Text

House Bill No. 5039

Public Act No. 26-27

AN ACT REQUIRING TRANSPARENCY AND ADDITIONAL
OVERSIGHT OF THE DISTRIBUTION OF CERTAIN LEGISLATIVELY
DIRECTED FUNDS AND APPROPRIATIONS FOR OTHER
EXPENSES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective July 1, 2026) (a) For purposes of this section
and section 4 of this act:
(1) "Legislatively directed funds" means an appropriation by public
or special act of the General Assembly that authorizes a specific amount
of money for a contract or other expenditure with a grant, loan or other
economic assistance or incentive to a specific entity. "Legislatively
directed funds" does not include any of the following:
(A) An appropriation made in response to a natural disaster or other
emergency situation;
(B) An appropriation where the recipient or subrecipient is a state
agency, political subdivision of the state, the Judicial Department, the
Legislative Department or a constituent unit of the state system of public
higher education;
(C) An appropriation or other statutorily defined grant program

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Public Act No. 26-27 2 of 11

made through a formula-driven or competitive award process; or
(D) Any funds authorized by the State Bond Commission pursuant
to section 3-20 of the general statutes;
(2) "State agency" means any executive branch department, board,
council, commission, institution or other agency of the executive branch
of state government, but does not include any constituent unit of the
state system of public higher education; and
(3) "Subrecipient" means an entity that is receiving a distribution of
legislatively directed funds from a state agency or other pass-through
entity for purposes of the goals or objectives for which such funds were
authorized, and does not include a subcontractor, as defined in section
4e-1 of the general statutes.
(b) The Secretary of the Office of Policy and Management shall adopt
policies and procedures to establish requirements for the administration
of legislatively directed funds by state agencies. Such policies and
procedures shall implement the provisions of this section and shall
include, but need not be limited to, the manner in which legislatively
directed funds are distributed to recipients to ensure that such funds are
used for their intended purposes. Any adoption of, or revisions made
to, such policies and procedures on or after July 1, 2026, shall be
submitted by the secretary via electronic mail to a committee consisting
of the president pro tempore of the Senate, the speaker of the House of
Representatives, the majority and minority leaders of both houses of the
General Assembly, the chairpersons and ranking members of the joint
standing committees of the General Assembly having cognizance of
matters relating to appropriations and the budgets of state agencies,
finance, revenue and bonding and government oversight and the
chairperson and vice-chairperson of the Black and Puerto Rican Caucus
of the General Assembly, and shall not be effective until the sixtieth day
after the procedures or proposed revisions to such procedures are

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submitted to the committee, unless such requirement is waived by a
majority vote of the membership of the committee. Such policies and
procedures shall have the goal of establishing uniform procedures
across state agencies concerning legislatively directed funds, and shall
require legislatively directed funds to be distributed in a manner that
will ensure such funds are used for and achieve their intended purpose,
provided:
(1) For any legislatively directed funds equal to or less than one
hundred fifty thousand dollars, such funds shall be distributed as an
initial or advance payment or scheduled disbursement of funds in
accordance with a written agreement executed between the
administering state agency and the recipient of such funds that includes
the intended use of such funds.
(2) For any legislatively directed funds greater than one hundred fifty
thousand dollars, the administering state agency may provide an initial
or advance payment, with the remaining balance distributed in
subsequent payments or on a reimbursement basis upon submission of
documentation of eligible expenditures by the recipient. In determining
whether to provide an initial or advance payments, the administering
state agency, in consultation with the recipient of such funds and
consideration of the stated purposes of the appropriation, shall ensure
the payment schedule (A) is responsive to the recipient's needs to
execute such stated purposes, and (B) facilitates project startup or
capital procurement costs. The distribution of such funds shall be made
in accordance with a written agreement executed between the
administering state agency and the recipient of such funds that includes
the intended use of such funds.
(3) In distributing any legislatively directed funds on a
reimbursement