You asked for a summary of bills the Labor and Public Employees Committee favorably reported to the Finance, Revenue and Bonding Committee.

SB 848 — AN ACT CONCERNING LOANS TO MUNICIPALITIES TO FULLY FUND PENSION SYSTEMS

This bill creates a municipal pension solvency account and loan program to provide loans to municipalities to cover their unfunded pension liabilities. The state will issue bonds, notes, or other obligations to raise funds to make the loans. The bill requires the loans to be made through municipal pension solvency agreements between the state treasurer and the municipalities. The agreements must include penalty provisions for municipalities that fail to make their pension fund contributions as the agreement requires. Loans will be made at the same interest rate the state pays on the obligations it issues. The bill does not preclude the state from funding the loans through revenue bonds.

The bill requires the treasurer to establish a priority list of eligible towns and a ranking system for making loans to them. The treasurer must consider all factors she deems relevant in establishing the ranking including:

1. the amount of a town's unfunded pension liability,

2. the town's ability to eliminate, or substantially eliminate, its unfunded pension liability by taking a loan under the bill, and

3. the state's interest in assisting the maximum number of towns.

HB 7315 — AN ACT CONCERNING CADETS, EXPLORERS AND JUNIOR FIREFIGHTERS

This bill expands the municipal option property tax relief program for volunteer firefighters, emergency medical technicians, and other volunteers to include minors who volunteer in a junior firefighter or similar program. It provides that property tax relief provided due such a minor will go to the parent or other legal guardian with whom the minor volunteer resides. (This bill was suggested by the winner of a high school contest to propose legislation in the General Assembly).

JM: ts