Connecticut Seal

Senate Bill No. 701

May 9 Special Session, Public Act No. 02-5

AN ACT INCREASING CERTAIN BOND AUTHORIZATIONS FOR CAPITAL IMPROVEMENTS.

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

Section 1. Subsections (a) and (b) of section 4-66c of the general statutes, as amended by section 1 of public act 01-7 of the June special session, are repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(a) For the purposes of subsection (b) of this section, the State Bond Commission shall have power, from time to time [,] to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate [nine hundred fifty-three million six hundred ninety-five thousand nine hundred two] nine hundred six million nine hundred eighty-seven thousand five hundred forty-four dollars, provided [one hundred forty-two million] one hundred seven million dollars of said authorization shall be effective July 1, [2002] 2003. All provisions of section 3-20, or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section, are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission in its discretion may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due.

(b) The proceeds of the sale of said bonds, to the extent hereinafter stated, shall be used, subject to the provisions of subsections (c) and (d) of this section, for the purpose of redirecting, improving and expanding state activities which promote community conservation and development and improve the quality of life for urban residents of the state as hereinafter stated: (1) For the Department of Economic and Community Development: Economic and community development projects, including administrative costs incurred by the Department of Economic and Community Development, not exceeding [eighty-one million three hundred thousand] seventy-four million five hundred ninety-one thousand six hundred forty-two dollars, one million dollars of which shall be used for a grant to the development center program and the nonprofit business consortium deployment center approved pursuant to section 32-411 and provided [two] seven million dollars of said authorization shall be effective July 1, [2002] 2003; (2) for the Department of Transportation: Urban mass transit, not exceeding two million dollars; (3) for the Department of Environmental Protection: Recreation development and solid waste disposal projects, not exceeding one million nine hundred ninety-five thousand nine hundred two dollars; (4) for the Department of Social Services: Child day care projects, elderly centers, shelter facilities for victims of domestic violence, emergency shelters and related facilities for the homeless, multipurpose human resource centers and food distribution facilities, not exceeding thirty-nine million one hundred thousand dollars, provided four million dollars of said authorization shall be effective July 1, 1994; (5) for the Department of Economic and Community Development: Housing projects, not exceeding three million dollars; (6) for the Office of Policy and Management: (A) Grants-in-aid to municipalities for a pilot demonstration program to leverage private contributions for redevelopment of designated historic preservation areas, not exceeding one million dollars; (B) grants-in-aid for urban development projects including economic and community development, transportation, environmental protection, public safety, children and families and social services projects and programs, including, in the case of economic and community development projects administered on behalf of the Office of Policy and Management by the Department of Economic and Community Development, administrative costs incurred by the Department of Economic and Community Development, not exceeding [eight hundred twenty-five million three hundred thousand] seven hundred eighty-five million three hundred thousand dollars, provided [one hundred forty] one hundred million dollars of said authorization shall be effective July 1, [2002] 2003. Five million dollars of the grants-in-aid authorized in subparagraph (B) of subdivision (6) of this subsection may be made available to private nonprofit organizations for the purposes described in said subparagraph (B). Five million dollars of the grants-in-aid authorized in subparagraph (B) of subdivision (6) of this subsection may be made available for necessary renovations and improvements of libraries. Five million dollars of the grants-in-aid authorized in subparagraph (B) of subdivision (6) of this subsection shall be made available for small business gap financing.

Sec. 2. Subsection (a) of section 4a-10 of the general statutes, as amended by section 2 of public act 01-7 of the June special session, is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time [,] to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate two hundred [twenty-seven million five hundred thousand] thirty million dollars, provided [seventeen million] nineteen million five hundred thousand dollars of said authorization shall be effective July 1, 2002.

Sec. 3. Subdivision (4) of subsection (a) of section 7-536 of the general statutes, as amended by section 2 of public act 01-197, is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(4) "Local capital improvement project" means a municipal capital expenditure project for any of the following purposes: (A) Road construction, renovation, repair or resurfacing, (B) sidewalk and pavement improvements, (C) construction, renovation, enlargement or repair of sewage treatment plants and sanitary or storm, water or sewer lines, including separation of lines, (D) public building construction other than schools, including renovation, repair, code compliance, energy conservation and fire safety projects, (E) construction, renovation, enlargement or repair of dams, bridges and flood control projects, (F) construction, renovation, enlargement or repair of water treatment or filtration plants and water mains, (G) construction, renovation or enlargement of solid waste facilities, (H) improvements to public parks, (I) the preparation and revision of local capital improvement plans projected for a period of not less than five years and so prepared as to show the general description, need and estimated cost of each individual capital improvement, (J) improvements to emergency communications systems, (K) public housing projects, including renovations and improvements and energy conservation and the development of additional housing, (L) renovations to or construction of veterans' memorial monuments, (M) improvements to information technology systems to manage the century date change effect, as defined in section 4d-16, (N) thermal imaging systems, (O) bulky waste and landfill projects, [and] (P) the preparation and revision of municipal plans of conservation and development adopted pursuant to section 8-23, provided such plans are endorsed by the legislative body of the municipality not more than one hundred eighty days after adoption by the commission, and (Q) acquisition of automatic external defibrillators. "Local capital improvement project" means only capital expenditures and includes repairs incident to reconstruction and renovation but does not include ordinary repairs and maintenance of an ongoing nature.

Sec. 4. Subsection (a) of section 7-538 of the general statutes, as amended by section 3 of public act 01-7 of the June special session, is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate four hundred seventy million dollars, provided [thirty] sixty-five million dollars of said authorization shall be effective July 1, [2002] 2003.

Sec. 5. Subsection (a) of section 10-65 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(a) Each local or regional school district operating a vocational agriculture center approved by the State Board of Education for program, educational need, location and area to be served shall be eligible for the following grants: (1) In accordance with the provisions of chapter 173, through progress payments in accordance with the provisions of section 10-287i, ninety-five per cent of the net eligible costs [, in a lump sum,] of constructing, acquiring, renovating and equipping approved facilities to be used for such vocational agriculture center, for the expansion or improvement of existing facilities or for the replacement or improvement of equipment therein, and (2) subject to the provisions of section 10-65b, in an amount equal to seven hundred dollars per student for every secondary school student who was enrolled in such center on October first of the previous year.

Sec. 6. Section 10-76e of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

Any school district which agrees to provide special education, as part of a long-term regional plan approved by the State Board of Education, for children requiring special education who reside in other school districts or a private academy, as defined in section 10-289d, which agrees to provide special education, as part of a long-term regional plan approved by the State Board of Education, for children requiring special education shall be eligible to receive a grant, [in a lump sum,] through progress payments in accordance with the provisions of section 10-287i, in accordance with the provisions of chapter 173, [in] which payments shall total an amount equal to ninety-five per cent of the net eligible cost to such district or to such academy of purchasing, constructing or reconstructing appropriate facilities to be used primarily for children requiring special education and equipping and furnishing of any such purchase, construction or reconstruction, provided such facilities shall be approved by the State Board of Education and shall be an adjunct to or connected with facilities for children in the regular school program, except when the State Board of Education determines that separate facilities would be of greater benefit to the children participating in the long-term special education program.

Sec. 7. Subsection (a) of section 10-264h of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(a) For the fiscal year ending June 30, 1996, [and each fiscal year thereafter] until the fiscal year ending June 30, 2002, a local or regional board of education, regional educational service center or a cooperative arrangement pursuant to section 10-158a for purposes of an interdistrict magnet school may be eligible for reimbursement up to the full reasonable cost of any capital expenditure for the purchase, construction, extension, replacement, leasing or major alteration of interdistrict magnet school facilities, including any expenditure for the purchase of equipment, in accordance with this section. For the fiscal year ending June 30, 2003, and each fiscal year thereafter, such entities may be eligible for reimbursement up to ninety-five per cent of such cost. To be eligible for reimbursement under this section a magnet school construction project shall meet the requirements for a school building project established in chapter 173, except that the Commissioner of Education may waive any requirement in such chapter for good cause. On and after July 1, 1997, the commissioner shall approve only applications for reimbursement under this section that he finds will reduce racial, ethnic and economic isolation.

Sec. 8. Section 10-283 of the general statutes, as amended by sections 26 and 63 of public act 01-173, is amended by adding subsections (d) and (e) as follows (Effective July 1, 2002):

(NEW) (d) No application for a school building project shall be accepted by the commissioner on or after July 1, 2002, unless the applicant has secured funding authorization for the local share of the project costs prior to application. For applications filed before July 1, 2002, for inclusion on the listing of projects to be submitted to the Governor and General Assembly in December, 2002, pursuant to this section, no project shall be included on such listing unless the applicant has secured local funding authorization prior to December 1, 2002. The reimbursement percentage for a project covered by this subsection shall reflect the rates in effect during the fiscal year in which such local funding authorization is secured.

(NEW) (e) For each such list submitted in December, 2003, and December, 2004, the total amount requested by the commissioner for grant commitments shall not exceed one billion dollars. In each such list, the commissioner shall list the categories described in subdivision (2) of subsection (a) of this section in order of priority and shall list the projects within each category in order of priority. The commissioner shall comply with the limitation on grant commitments provided for under this subsection according to such priorities. Eligible projects that cannot be included on the list shall be included first on the list submitted the next following year.

Sec. 9. Section 10-287d of the general statutes, as amended by section 4 of public act 01-7 of the June special session, is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

For the purposes of funding (1) grants to projects that have received approval of the State Board of Education pursuant to sections 10-287 and 10-287a, subsection (a) of section 10-65 and section 10-76e, (2) grants to assist school building projects to remedy safety and health violations and damage from fire and catastrophe, and (3) regional vocational-technical school projects pursuant to section 10-283b, the State Treasurer is authorized and directed, subject to and in accordance with the provisions of section 3-20, to issue bonds of the state from time to time in one or more series in an aggregate amount not exceeding three billion one hundred [fifty-eight] eight million three hundred sixty thousand dollars, provided [four hundred fifty] twenty million dollars of said authorization shall be effective July 1, [2002] 2003. Bonds of each series shall bear such date or dates and mature at such time or times not exceeding thirty years from their respective dates and be subject to such redemption privileges, with or without premium, as may be fixed by the State Bond Commission. They shall be sold at not less than par and accrued interest and the full faith and credit of the state is pledged for the payment of the interest thereon and the principal thereof as the same shall become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due. The State Treasurer is authorized to invest temporarily in direct obligations of the United States, United State agency obligations, certificates of deposit, commercial paper or bank acceptances such portion of the proceeds of such bonds or of any notes issued in anticipation thereof as may be deemed available for such purpose.

Sec. 10. Section 10-292k of the general statutes, as amended by section 17 of public act 01-7 of the June special session, is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

For purposes of funding interest subsidy grants, except for interest subsidy grants made pursuant to subsection (b) of section 10-292m, the State Treasurer is authorized and directed, subject to and in accordance with the provisions of section 3-20, to issue bonds of the state from time to time in one or more series in an aggregate amount not exceeding one hundred [twenty-one] seventy-one million one hundred thousand dollars, provided [seventeen] fifty million dollars of said authorization shall be effective July 1, [2000] 2002. Bonds of each series shall bear such date or dates and mature at such time or times not exceeding thirty years from their respective dates and be subject to such redemption privileges, with or without premium, as may be fixed by the State Bond Commission. They shall be sold at not less than par and accrued interest and the full faith and credit of the state is pledged for the payment of the interest thereon and the principal thereof as the same shall become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due. The State Treasurer is authorized to invest temporarily in direct obligations of the United States, United States agency obligations, certificates of deposit, commercial paper or bank acceptances, such portion of the proceeds of such bonds or of any notes issued in anticipation thereof as may be deemed available for such purpose.

Sec. 11. Subsection (c) of section 22a-478 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(c) The funding of an eligible water quality project shall be pursuant to a project funding agreement between the state, acting by and through the commissioner, and the municipality undertaking such project and shall be evidenced by a project fund obligation or grant account loan obligation, or both, or an interim funding obligation of such municipality issued in accordance with section 22a-479. A project funding agreement shall be in a form prescribed by the commissioner. A nonpoint source pollution abatement project shall receive a project grant of seventy-five per cent of the cost of the project determined to be eligible by the commissioner. A combined sewer project shall receive (1) a project grant of fifty per cent of the cost of the project, which cost shall be the cost the federal Environmental Protection Agency uses in making grants pursuant to Part 35 of the federal Construction Grant Regulations and Titles II and VI of the federal Water Pollution Control Act, as amended; and (2) a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible water quality project costs. A construction contract eligible for financing awarded by a municipality on or after July 1, 1999, as a project undertaken for nitrogen removal shall receive a project grant of thirty per cent of the cost of the project associated with nitrogen removal and a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible water quality project costs. Nitrogen removal projects under design or construction on July 1, 1999, and projects that have been constructed but have not received permanent, clean water fund financing, on July 1, 1999, shall be eligible to receive a thirty per cent grant. Any other eligible water quality project shall receive (A) a project grant of twenty per cent of the cost, which cost shall be the cost the federal Environmental Protection Agency uses for grants pursuant to said Part 35 and said Titles II and VI, and (B) a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible project cost. On or after [fiscal year 2007] July 1, 2006, all eligible water quality projects eligible for funding shall receive a loan of one hundred per cent of the eligible costs and shall not receive a project grant. On or after July 1, 2002, eligible water quality projects that exclusively address sewer collection and conveyance system improvements may receive a loan for one hundred per cent of the eligible costs and shall not receive a project grant. Any such sewer collection and conveyance system improvement project shall be rated, ranked, and funded separately from other water pollution control projects and shall be considered only if it is highly consistent with the state's conservation and development plan, or is primarily needed as the most cost effective solution to an existing area-wide pollution problem and incorporates minimal capacity for growth. All loans made in accordance with the provisions of this section for an eligible water quality project shall bear an interest rate of two per cent per annum. The commissioner may allow any project fund obligation, grant account loan obligation or interim funding obligation for an eligible water quality project to be repaid by a borrowing municipality prior to maturity without penalty.

Sec. 12. Subsection (a) of section 22a-483 of the general statutes, as amended by section 6 of public act 01-7 of the June special session, is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(a) For the purposes of sections 22a-475 to 22a-483, inclusive, as amended by this act, the State Bond Commission shall have the power, from time to time [,] to authorize the issuance of bonds of the state in one or more series and in principal amounts, not exceeding in the aggregate [seven hundred ninety-seven] eight hundred one million [eight hundred] thirty thousand dollars, provided [forty] sixty million dollars of said authorization shall be effective July 1, [2002] 2003.

Sec. 13. Subsection (a) of section 32-23ll of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(a) For the purposes described herein the State Bond Commission shall have the power, from time to time [,] to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate [one hundred twenty-eight] ninety-five million dollars, provided twenty-one million nine hundred thousand dollars of said authorization shall be effective on June 21, 1994.

Sec. 14. Subsection (a) of section 32-235 of the general statutes, as amended by section 10 of public act 01-7 of the June special session, is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time [,] to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate [five hundred twenty-five million three hundred thousand] five hundred five million three hundred thousand dollars, provided [thirty] ten million dollars of said authorization shall be effective on July 1, [2002] 2003.

Sec. 15. Section 32-666a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The city of Hartford, upon approval of its legislative body, may negotiate and fix assessments on improvements for retail, commercial and housing purposes during the period of construction of such improvements and for additional periods of up to fifteen years from the completion of such improvements, which improvements either (1) constitute a capital city project, as defined in [subsection] subdivision (2) of section 32-600, receiving five million dollars or more in financial assistance from the authority, [or] (2) are within the Adriaen's Landing site, including the on-site related private development, or (3) constitute a capital city project, as defined in subdivision (2) of section 32-600, receiving three million dollars or more in financial assistance from the authority for purposes of creating downtown housing units with ancillary commercial or parking facilities for which project the authority makes a financial commitment in the year ending June 30, 2003.

Sec. 16. (NEW) (Effective July 1, 2002) Notwithstanding any provision of the general statutes, the Department of Economic and Community Development, in consultation with the Connecticut Housing Finance Authority, the Office of Policy and Management and the State Treasurer, shall arrange for the transfer of the housing loan portfolio of said department or any portion thereof, to said authority.

Sec. 17. (NEW) (Effective July 1, 2002) (a) As used in this section, (1) "eligible building" means a structure located in a distressed municipality, as defined in section 32-9p of the general statutes, as amended, that contains not more than twenty residential units, and may contain an owner-occupied unit, and (2) "eligible costs" means costs incurred to make renovations and repairs to bring an eligible building into compliance with the State Building Code or state or municipal health or safety codes, or otherwise to make an eligible building suitable for rental to tenants.

(b) There is established a revolving loan fund to be known as the "Rental Housing Revolving Loan Fund". The fund may be funded from moneys allocated to the program established by section 21 of public act 01-7 of the June special session or from any moneys available to the Commissioner of Economic and Community Development or the fund from other sources. Investment earnings credited to the fund shall become part of the assets of the fund. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the next fiscal year. Payments of principal or interest on a low interest loan made pursuant to this section shall be paid to the State Treasurer for deposit in the Rental Housing Revolving Loan Fund. The fund shall be used to make low interest loans pursuant to subsection (c) of this section and to pay reasonable and necessary expenses incurred in administering loans under this section. The Commissioner of Economic and Community Development may enter into contracts with nonprofit corporations to provide for the administration of the Rental Housing Revolving Loan Fund by such nonprofit corporations, provided no low interest loan shall be made from the fund without the authorization of the commissioner as provided in subsection (c) of this section.

(c) The state, acting by and in the discretion of the Commissioner of Economic and Community Development, may enter into contracts to provide financial assistance in the form of low interest loans to owners of eligible buildings for eligible costs. The commissioner may require owners of eligible buildings who apply for a low interest loan pursuant to this section to submit a copy of the report filed by the building inspector listing code violations, and an estimate of the cost of repairs to correct such violations. The commissioner may establish priorities for the low cost loans provided pursuant to this program, including, but not limited to, types of repairs financed, the location of the eligible building, ability of owners to repay such loans, and the extent to which any repairs will extend the useful life of the eligible building.

(d) The commissioner may adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to specify application procedures and priorities for providing low cost loans pursuant to this section.

Sec. 18. (NEW) (Effective July 1, 2002) (a) As used in this section, "eligible building" means a two to six-family building that was built prior to 1950 and has wooden windows, and "commissioner" means the Commissioner of Economic and Community Development.

(b) The commissioner may establish a demonstration program in one or more municipalities to promote energy efficiency and environmentally safe housing by providing matching grants to owners of eligible buildings to repair or replace wooden windows in such buildings. Such demonstration program may be funded from moneys allocated to the program established by section 21 of public act 01-7 of the June special session or from any moneys available to the Commissioner of Economic and Community Development from other sources. Of the first three municipalities in which such demonstration program is established, at least two shall have a population of one hundred thousand or more and at least one shall have a population of less than one hundred thousand. No such grant shall exceed one hundred dollars for each window to be repaired or replaced. The commissioner may contract with one or more entities to operate the program.

(c) The demonstration program shall end on June 30, 2005. On or before February 1, 2005, the commissioner shall report to the select committee of the General Assembly having cognizance of matters relating to housing as to the number of eligible buildings for which assistance was provided, the costs involved, the effectiveness of the demonstration program and the commissioner's recommendation as to whether the demonstration program should be expanded and made permanent.

(d) The commissioner shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this section.

Sec. 19. (NEW) (Effective July 1, 2002) (a) On or before February 1, 2003, and annually thereafter, the Secretary of the Office of Policy and Management shall prepare a report regarding the status of the Adriaen's Landing project and The University of Connecticut football stadium project. Such report shall be made, in accordance with the provisions of section 11-4a of the general statutes, to the president pro tempore of the Senate, the speaker of the House of Representatives, the majority leader of the Senate, the majority leader of the House of Representatives, the minority leader of the Senate and the minority leader of the House of Representatives and to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding. The report to said committee shall be presented at a meeting of said committee held during the regular session of the calendar year in which such report is due.

(b) Such report shall be separated into a section on the Adriaen's Landing project and a section on The University of Connecticut football stadium project and shall contain the following information: (1) A detailed estimated budget for the overall project; (2) the current timeline for the entire project, with significant milestone events, from inception to projected completion date; (3) for each project component, (A) a description of the component, (B) its current budget in detail, comparing it to the budget presented to the General Assembly prior to the effective date of public act 00-140, (C) projected completion date, (D) any change made in the course of planning and execution over the prior calendar year and reasons for such change, and (E) status at the end of such calendar year; (4) problems encountered in the prior calendar year and potential problems in the future; (5) status of the project's compliance with the provisions of section 32-605 of the general statutes, including, but not limited to, (A) a description of each contract entered into during the prior calendar year, (B) whether any contractor is a woman-owned business enterprise, a minority business enterprise or a small business enterprise, as those terms are defined in section 4a-60g of the general statutes, (C) the value of such contract, (D) any subcontractors under such contract, the value of the subcontract and whether any subcontractor is a woman-owned business enterprise, a minority business enterprise or a small business enterprise, as those terms are defined in section 4a-60g of the general statutes, (E) the number of jobs associated with such contract, including the number of jobs held by residents of Hartford and East Hartford and the number of jobs held by women and minorities, and (F) any steps being taken for affirmative action and corrective measures for any deficiencies; (6) a detailed projected annual operating budget for each facility, including information regarding how much funding the state will be required to provide and how much the municipality will be required to provide; and (7) a timeline showing when operating expenses may be incurred prior to the project's completion, including how much of such expenses will be provided by the state in each year and how much will be provided by the host municipality.

Sec. 20. Subsection (a) of section 45 of public act 98-249 is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time [,] to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate [one million eight] five hundred thousand dollars.

Sec. 21. Section 19 of public act 01-7 of the June special session is amended by adding subsection (d) as follows (Effective from passage):

(NEW) (d) Any grant-in-aid allowed under the Small Town Economic Assistance Program under this section may be administered on behalf of the Office of Policy and Management by another state agency as determined by the Secretary of the Office of Policy and Management.

Sec. 22. Section 7-370b of the general statutes, as amended by section 1 of public act 02-108, is repealed and the following is substituted in lieu thereof (Effective from passage):

In connection with or incidental to the carrying or selling and issuance of bonds or notes, any municipality, as defined in section 7-369, may obtain from [a] any commercial bank, insurance company, [or] subsidiary of such bank or insurance company or qualified public depository, as defined in section 36a-330, authorized to do business within or without this state a letter of credit, line of credit or other credit facility upon such terms and conditions as shall be approved by the municipality, for the purpose of providing funds for the payment of such bonds redeemed, repurchased or defeased prior to maturity or for providing additional security for such bonds, notes or other obligations. In connection therewith, such municipality may authorize the execution of reimbursement agreements, remarketing agreements, standby bond purchase agreements, interest rate swap agreements and any other necessary or appropriate agreements. If such municipality is required to draw upon any credit facility to redeem bonds prior to maturity, such municipality shall repay the amount of each loan made pursuant to such credit facility within one year from the date it is incurred from the proceeds of refunding bonds, notes or other obligations or from any other available funds. Interest rate swap agreements may include such contracts as the municipality may determine to be necessary or appropriate to place the obligation of the municipality, as represented by the bonds or notes, in whole or in part, on such interest rate or cash flow basis as the municipality may determine, including without limitation, insurance agreements, forward payment conversion agreements, futures contracts, contracts providing for payments based on levels of, or changes in, interest rates or market indices, contracts to manage interest rates risk, including without limitation, interest rate floors or caps, options, puts, calls and similar arrangements. Agreements entered into by any municipality under this section shall contain such payment, security, default, remedy and other terms and conditions as the municipality may deem appropriate and shall be entered into with such party or parties as the municipality may select on the basis of negotiation or competitive bid, after giving due consideration, where applicable, to the creditworthiness of the counter party or counter parties, including any rating by a nationally recognized rating agency, the impact on any rating on outstanding bonds or notes and any other criteria as the municipality may deem appropriate, provided (1) the unsecured long-term obligations of the counter party shall be rated in a category no lower than AA by at least one nationally recognized rating agency, or (2) (A) the unsecured long-term obligations of the counter party shall be rated in a category no lower than A by at least one nationally recognized rating agency, (B) the counter party shall provide credit enhancement through collateral, and (C) the counter party shall be a qualified public depository, as defined in section 36a-330. Such municipality may pledge its full faith and credit to its payment obligations, including netting payments, under any agreement entered into pursuant to this section to the extent the full faith and credit of the municipality is pledged to secure the applicable bonds or notes, or to pledge all or any part of the collateral that secures the applicable bonds or notes to the extent permissible under its contracts with bondholders.

Sec. 23. Subdivision (4) of section 32-600 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(4) "Convention center facilities" means the convention center and the related parking facilities, as defined in section 32-651, to the extent such related parking facilities are developed, owned or operated by the authority, and may include a central heating and cooling plant serving the convention center, the related parking facilities, the related private development and, to the extent of any surplus capacity, other users. "Convention center facilities" does not include the convention center hotel.

Sec. 24. Subsection (c) of section 13a-73 of the general statutes, as amended by section 3 of public act 01-105, is repealed and the following is substituted in lieu thereof (Effective from passage):

(c) The commissioner may purchase any land and take a deed thereof in the name of the state when such land is needed in connection with the layout, construction, repair, reconstruction or maintenance of any state highway or bridge, and any land or buildings or both, necessary, in the commissioner's opinion, for the efficient accomplishment of the foregoing purpose, and may further, when the commissioner determines that it is in the best interests of the state, purchase, lease or otherwise arrange for the acquisition or exchange of land or buildings or both for use as a highway maintenance storage area or garage, provided any purchase of such land or land and buildings in an amount in excess of the sum of one hundred thousand dollars shall be approved by a state referee. The commissioner, with the advice and consent of the Attorney General, may settle and compromise any claim by any person, firm or corporation claiming to be aggrieved by such layout, construction, reconstruction, repair or maintenance by the payment of money, the transfer of other land acquired for or in connection with highway purposes, or otherwise.

Sec. 25. Subsection (a) of section 3-21 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) No bonds, notes or other evidences of indebtedness for borrowed money payable from General Fund tax receipts of the state shall be authorized by the General Assembly or issued except such as shall not cause the aggregate amount of [(1)] the total amount of bonds, notes or other evidences of indebtedness payable from General Fund tax receipts authorized by the General Assembly but which have not been issued and [(2)] the total amount of such indebtedness which has been issued and remains outstanding to exceed one and six-tenths times the total General Fund tax receipts of the state for the fiscal year in which any such authorization will become effective or in which such indebtedness is issued, as estimated for such fiscal year by the joint standing committee of the General Assembly having cognizance of finance, revenue and bonding in accordance with section 2-35, as amended. In computing such aggregate amount of indebtedness at any time, there shall be excluded or deducted, as the case may be, (1) the principal amount of all such obligations as may be certified by the Treasurer (A) as issued in anticipation of revenues to be received by the state during the period of twelve calendar months next following their issuance and to be paid by application of such revenue, or (B) as having been refunded or replaced by other indebtedness the proceeds and projected earnings on which or other funds are held in escrow to pay and are sufficient to pay the principal, interest and any redemption premium until maturity or earlier planned redemption of such indebtedness, or (C) as issued and outstanding in anticipation of particular bonds then unissued but fully authorized to be issued in the manner provided by law for such authorization, provided, so long as any of said obligations are outstanding, the entire principal amount of such particular bonds thus authorized shall be deemed to be outstanding and be included in such aggregate amount of indebtedness, or (D) as payable solely from revenues of particular public improvements, (2) the amount which may be certified by the Treasurer as the aggregate value of cash and securities in debt retirement funds of the state to be used to meet principal of outstanding obligations included in such aggregate amount of indebtedness, (3) every such amount as may be certified by the Secretary of the Office of Policy and Management as the estimated payments on account of the costs of any public work or improvement thereafter to be received by the state from the United States or agencies thereof and to be used, in conformity with applicable federal law, to meet principal of obligations included in such aggregate amount of indebtedness, (4) all authorized and issued indebtedness to fund any budget deficits of the state for any fiscal year ending on or before June 30, 1991, (5) all authorized indebtedness to fund the program created pursuant to section 32-285, as amended, (6) all authorized and issued indebtedness to fund any budget deficits of the state for any fiscal year ending on or before June 30, 2002, and [(6)] (7) any indebtedness represented by any agreement entered into pursuant to subsection (b) or (c) of section 3-20a as certified by the Treasurer, provided the indebtedness in connection with which such agreements were entered into shall be included in such aggregate amount of indebtedness. In computing the amount of outstanding indebtedness, only the accreted value of any capital appreciation obligation or any zero coupon obligation which has accreted and been added to the stated initial value of such obligation as of the date of any computation shall be included.

Sec. 26. (Effective July 1, 2002) Notwithstanding any reduction in funds available under sections 7-535 to 7-538, inclusive, of the general statutes, as amended by this act, for the fiscal year ending June 30, 2003, each municipality shall be entitled to the full amount of the credit to which it would have been entitled if thirty million dollars had been made available under said sections for such year.

Sec. 27. Subsection (a) of section 32-607 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The board of directors of the Capital City Economic Development Authority is authorized from time to time to issue its bonds, notes and other obligations in such principal amounts as in the opinion of the board shall be necessary to provide sufficient funds for carrying out the purposes set forth in section 32-602 with respect to the convention center project as defined in subdivision (3) of section 32-600, including the payment, funding or refunding of the principal of, or interest or redemption premiums on, any bonds, notes and other obligations issued by it whether the bonds, notes or other obligations or interest to be funded or refunded have or have not become due, the establishment of reserves to secure such bonds, notes and other obligations, loans made by the authority and all other expenditures of the authority incident to and necessary or convenient to carry out the purposes set forth in section 32-602.

Sec. 28. Subsection (b) of section 32-616 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Economic and Community Development for grants-in-aid for capital city projects as follows:

(1) For the Civic Center and coliseum complex renovation and rejuvenation project, not exceeding fifteen million dollars;

(2) For the riverfront infrastructure development and improvement project, not exceeding twenty-five million dollars provided no amount shall be issued under this subdivision until the Commissioner of Economic and Community Development certifies to the State Bond Commission that it has received a commitment by agreement, contract or other legally enforceable instrument with private investors or developers for a minimum private investment equal to the amount of bonds at the time such bonds are issued pursuant to this subdivision taken together with any previous commitments; and provided further, twelve million dollars of said authorization shall be effective July 1, 1999, [and] seven million dollars of said authorization shall be effective July 1, 2001, and three million dollars of said authorization shall be effective July 1, 2003;

(3) For housing rehabilitation and new construction projects, as defined in subparagraph (E) (i) of subdivision (2) of section 32-600, not exceeding thirty-five million dollars, provided seven million dollars of said authorization shall be effective July 1, 1999, fourteen million dollars of said authorization shall be effective July 1, 2000, [and] fourteen million dollars of said authorization shall be effective July 1, 2001, and four million dollars of said authorization shall be effective July 1, 2003;

(4) For demolition or redevelopment projects, as defined in subparagraph (E) (ii) of subdivision (2) of section 32-600, not exceeding twenty-five million dollars, provided seven million dollars of said authorization shall be effective July 1, 1999, eight million dollars of said authorization shall be effective July 1, 2000, [and] five million dollars of said authorization shall be effective July 1, 2001, and three million dollars of said authorization shall be effective July 1, 2003;

(5) For parking projects, as defined in subparagraph (F) of subdivision (2) of section 32-600, not exceeding fifteen million dollars provided five million dollars of said authorization shall be effective July 1, 1999, and five million dollars of said authorization shall be effective July 1, 2000.

Sec. 29. (Effective from passage) Section 3 of public act 94-3 of the November special session and sections 23 and 24 of public act 98-179 are repealed.

Approved August 15, 2002