House Bill No. 6565

Public Act No. 01-210

AN ACT CONCERNING THE TAX INCREMENTAL FINANCING PROGRAM ADMINISTERED BY THE CONNECTICUT DEVELOPMENT AUTHORITY.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (k) of section 32-285 of the general statutes is repealed and the following is substituted in lieu thereof:

(k) No commitments for new projects shall be approved by the authority under this section on or after July 1, [2001] 2005.

Sec. 2. Subsection (f) of section 23 of public act 98-179 is repealed and the following is substituted in lieu thereof:

(f) (1) The authority may issue, from time to time, but in no case later than January 1, [2003] 2005, one or more series of bonds in accordance with the provisions of chapter 579 of the general statutes, to the extent not inconsistent with the provisions of this subsection, payable in whole or in part from the project area taxes allocated and deemed appropriated from the General Fund under subsection (e) of this section to finance the various phases of the Steel Point Project as approved under this section or, at any time, to refund bonds previously issued under this section. The authority may make a grant of all or part of the proceeds of such bonds to any person in connection with the Steel Point Project, including the state or the city, or any instrumentality or agency of the state or the city, to defray their expenses in connection with the Steel Point Project. Subject to applicable federal tax law, the authority may issue such bonds, the interest on which is excludable from gross income for federal income tax purposes, or such bonds, the interest on which is not so excludable. The authority, when authorizing the issuance of any series of such bonds, shall, in conjunction with the State Treasurer, determine the rate of interest of such bonds, the date or dates of their maturity, the medium of payment, the redemption terms and privileges, whether such bonds shall be sold by negotiated or competitive sale and any and all other terms, covenants and conditions not inconsistent with this section, in connection with the issuance thereof, including, but not limited to, the creation of capitalized interest or operating reserves and the pledging of special capital reserve funds authorized under subsection (b) of section 32-23j of the general statutes.

(2) The issuance of any bonds by the authority pursuant to this section shall be subject to the approval of the State Bond Commission. If the authority approves bonding for the Steel Point Project, the authority shall submit the matter to the State Bond Commission for final approval. In reaching its decision, the State Bond Commission may consider the information considered by the authority, the independent financial assessment and such other financial information as it deems appropriate. After such approval by the State Bond Commission, no other approval shall be required for the issuance of bonds pursuant to this section to support the Steel Point Project.

(3) Prior to the issuance of any bonds by the authority pursuant to this section, the developer shall deliver to the authority security for its performance of that phase of the Steel Point Project then to be constructed.

(4) The issuance of any bonds by the authority pursuant to this section shall be deemed issued under section 32-285 of the general statutes for purposes of calculating the state debt limitation pursuant to section 3-21 of the general statutes.

Sec. 3. This act shall take effect July 1, 2001.

Approved July 13, 2001