Senate Bill 1235 (sSB1235 File No. 705) introduces amendments to the Connecticut general statutes, affecting the state treasurer's office and the Investment Advisory Council (IAC). It allows the treasurer to appoint various investment-related positions and set their compensation with the advice and consent of the IAC, while also detailing the composition and duties of the IAC, including term limits for public members and recusal requirements. The bill mandates the treasurer to recommend an investment policy statement to the IAC, which must be made public. Additionally, the bill establishes the Connecticut Baby Bond Trust as an instrumentality of the state, exempt from state property and commingling with state funds, and specifies that the trust will not be governed by section 3-61a.

The bill also repeals and substitutes sections of the general statutes, including those related to the taxation and asset consideration of disbursements from the Connecticut Baby Bond Trust, the establishment of accounting for beneficiaries, and the issuance of bonds to fund transfers to the trust. It authorizes the treasurer to obtain credit facilities for the redemption or repurchase of bonds and to enter into contracts to manage the state's obligations. The bill amends the definition of "trust funds" to include specific funds and exempts state obligations from taxation, making them legal investments for various entities. The fiscal impact statement indicates no immediate impact on the General Fund but notes potential future debt service costs and revenue loss from tax exemptions. The bill's provisions will affect investment funds, hiring decisions, and the terms of any bonds issued.

Statutes affected:
Raised Bill: 3-13a, 3-13b, 3-13i
FIN Joint Favorable Substitute: 3-13a, 3-13b, 3-13i, 3-36b, 3-36e, 3-36f, 3-36g, 3-36h, 3-36i, 3-13c
File No. 705: 3-13a, 3-13b, 3-13i, 3-36b, 3-36e, 3-36f, 3-36g, 3-36h, 3-36i, 3-13c