CT HB06395

Repeals and replaces Section 27-138 of the general statutes effective July 1, 2011, governing the Soldiers, Sailors and Marines Fund held in trust by the State Treasurer and administered by the American Legion treasurer.

Requires the Treasurer to invest fund assets and distribute interest accumulations to the American Legion treasurer for disbursement, while maintaining a $100,000 contingency reserve and adding any surplus to the principal at fiscal year-end.

Authorizes the Finance Advisory Committee, upon gubernatorial recommendation, to appropriate from the General Fund up to the annual interest on $35 million at the previous year's investment yield rate if interest accumulations and other appropriations are insufficient to meet fund purposes.

Requires repayment to the General Fund of any amounts appropriated and disbursed from July 1, 2002 onward to carry out fund purposes, with repayment made from excess interest earnings when applicable.

Restricts the Comptroller from transferring interest earned on the fund principal to the General Fund except to repay outstanding balances owed under the repayment provisions of this section.