Connecticut SB 512: AN ACT REVISING VARIOUS PROVISIONS CONCERNING UNCLAIMED PROPERTY.

Bill Text

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General Assembly Raised Bill No. 512
February Session, 2026 LCO No. 3371

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
(FIN)

AN ACT ESTABLISHING THE CONNECTICUT GROWTH INVESTMENT
FUND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective from passage) (a) As used in this section: 1
(1) "Connecticut Innovations, Incorporated" means the corporation 2
created under section 32-35 of the general statutes; 3
(2) "Potential estate tax exposure" means the estimated tax liability of 4
a resident of this state under section 12-391 of the general statutes, as 5
amended by this act, as determined and certified by the Commissioner 6
of Revenue Services based on the resident's estimated net taxable estate 7
at the time of election under this section; 8
(3) "Qualified Connecticut business" means a business entity that 9
maintains its principal place of business in this state and has at least 10
seventy-five per cent of its employees domiciled in this state; and 11
(4) "Resident of this state" has the same meaning as provided in 12

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subdivision (1) of subsection (a) of section 12-701 of the general statutes. 13
(b) On and after January 1, 2027, any resident of this state may elect 14
to invest a one-time payment in the Connecticut Growth Investment 15
Fund in accordance with the provisions of this section, in lieu of such 16
resident's estate being subject to the tax imposed by section 12-391 of the 17
general statutes, as amended by this act. The amount of such payment 18
shall be thirty per cent, forty per cent or fifty per cent, as selected by 19
such resident, of such resident's maximum potential estate tax exposure. 20
(c) (1) Connecticut Innovations, Incorporated shall establish, not later 21
than January 1, 2027, a Connecticut Growth Investment Fund that shall 22
(A) be managed under a pooled fund structure by Connecticut 23
Innovations, Incorporated, (B) invest exclusively in qualified 24
Connecticut businesses, (C) hold the principal of any payment made to 25
the fund as a contingent investment, returnable only in accordance with 26
the provisions of subsection (e) of this section, and (D) allocate not less 27
than ten per cent of the amount in the fund to be made available for 28
investments in qualified Connecticut businesses founded by student or 29
faculty entrepreneurs affiliated with institutions of higher education in 30
this state. 31
(2) Connecticut Innovations, Incorporated shall be entitled to an 32
annual management fee of not more than two per cent of the total assets 33
under management in the fund, for the administration, due diligence 34
and oversight of the fund's investment portfolio. 35
(d) (1) Connecticut Innovations, Incorporated shall establish three 36
distinct investor classes for the Connecticut Growth Investment Fund, 37
based on the percentage of the potential estate tax exposure selected by 38
the resident under subsection (b) of this section: 39
(A) Class A senior preferred units shall be for residents of this state 40
who make an investment of fifty per cent of such resident's potential 41
estate tax exposure. This investor class shall receive first-priority 42
distribution of realized gains and the highest rate of preferred returns 43

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from the fund; 44
(B) Class B preferred units shall be for residents of this state who 45
make an investment of forty per cent of such resident's potential estate 46
tax exposure. This investor class shall receive priority over Class C 47
investors for the distribution of realized gains; and 48
(C) Class C common units shall be for residents of this state who 49
make an investment of thirty per cent of such resident's potential estate 50
tax exposure. This investor class shall receive the baseline rate for the 51
distribution of realized gains. 52
(2) Upon the realization of any gains from any investment made by 53
the fund, Connecticut Innovations, Incorporated shall remit ten per cent 54
of the net realized profit to the General Fund prior to making any 55
distributions to a resident or a decedent's estate or designated 56
beneficiary. 57
(e) (1) If a resident of this state who made a payment under subsection 58
(b) of this section remains a resident until the time of death and such 59
death occurs at least five years after the date such payment was made, 60
(A) the initial payment amount shall be permanently retained by the 61
Connecticut Growth Investment Fund for continued investment in 62
qualified Connecticut businesses, (B) the right to receive future 63
distributions of realized gains and preferred returns shall vest in the 64
decedent's estate or designated beneficiaries, and (C) any tax liability of 65
the decedent's estate under section 12-391 of the general statutes, as 66
amended by this act, shall be extinguished. 67
(2) If a resident of this stat