Connecticut Seal

Senate Bill No. 2051

September 8 Special Session, Public Act No. 03-1

AN ACT CONCERNING ECONOMIC RECOVERY NOTES AND REVISIONS TO THE RATE REDUCTION BOND PROVISIONS OF THE BUDGET IMPLEMENTATION ACT AND OTHER PROVISIONS TO IMPLEMENT THE BUDGET.

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

Section 1. (Effective from passage) (a) For purposes of funding (1) the deficit in the General Fund arising from the operations of the General Fund for the fiscal year ending June 30, 2003, as reported by the Comptroller to the Governor in accordance with section 3-115 of the general statutes, and (2) the amount of funding required to pay any remaining retrospective reimbursements billed by hospitals for inpatient and outpatient services or other providers of medical services for services rendered to recipients of medical assistance in the State Administered General Assistance and General Assistance programs prior to the conversion of such program pursuant to section 43 of Public Act 03-3 of the June 30 special session, the Treasurer is authorized to issue notes of the state in an amount not to exceed the amount of such deficit and retrospective reimbursements, and such additional amounts as may be required in connection with the costs of issuance of such notes, and to deposit the proceeds thereof in the General Fund.

(b) (1) The Comptroller is hereby authorized and directed to certify to the Treasurer the amount of such deficit and the amount so certified shall be conclusive evidence for the purpose of determining at the time of issuance the amount of obligations which the Treasurer shall issue pursuant to this section. (2) The Secretary of the Office of Policy and Management is hereby authorized and directed to certify to the State Treasurer the estimate of the amount of funding required to pay any remaining retrospective reimbursements billed by hospitals for inpatient and outpatient services or other providers of medical services for services rendered to recipients of medical assistance in the State Administered General Assistance and General Assistance programs prior to the conversion of such program pursuant to section 43 of Public Act 03-3 of the June 30 special session and the amount so certified shall be conclusive evidence for the purpose of determining at the time of issuance the amount of obligations which the Treasurer shall issue pursuant to this section.

(c) The notes shall be designated economic recovery notes and shall be issued on or after the effective date of this section, whenever the Treasurer determines that the cash requirements of the General Fund must be met by such borrowing and shall be scheduled so as to minimize the need for additional temporary borrowing pursuant to section 3-16 of the general statutes.

(d) All such notes 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 notes as the same shall become due, and accordingly and as part of the contract of the state with the holders of said notes, 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. All such notes shall be sold at not less than par and accrued interest in such manner and on such terms as the Treasurer may determine, in the best interest of the state, and shall be signed in the name of the state and on its behalf by the Treasurer. All such notes shall mature no later than five years after the date of issuance, in such principal amounts and at such times, bear such date or dates, be payable at such place or places, bear interest at such rate or different or varying rates, payable at such time or times, be in such denominations, be in such form with or without interest coupons attached, carry such registration and transfer privileges, be payable in such medium of payment, be subject to such terms of redemption with or without premium and have such additional security, covenant or contract provisions, including credit facilities which may include a letter of credit or insurance policy from a commercial bank or insurance company authorized to do business within or without the state, and the necessary or appropriate provisions to ensure the exclusion of interest on the notes from taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, as appropriate or necessary to improve their marketability, as the Treasurer shall determine prior to their issuance. Such notes shall be issued with only interest payable in the state fiscal year of issuance. In connection with any such credit facility, the Treasurer may enter into any reimbursement agreements, remarketing agreements, standby purchase agreements or any other necessary or appropriate agreements securing or insuring such notes, on such terms and conditions as the Treasurer determines to be in the best interest of the state. In the event the credit facility is drawn upon to pay the principal of or interest on such notes, the full faith and credit of the state is pledged to the repayment of the amount so drawn and the Treasurer is authorized to include such pledge in any such agreement as part of the contract with the provider of such credit facility. The Treasurer shall apply any appropriation for the payment of such notes to such reimbursement repayment if such credit facility is drawn upon. Any expense incurred in connection with the initial issuance of the economic recovery notes shall be paid from the accrued interest and premiums or otherwise from the General Fund. All such notes, their transfer and the income therefrom, including any profit on the sale or transfer thereof, shall at all times be exempt from all taxation by the state or under its authority except for estate or succession taxes but the interest on such notes shall be included in the computation of any excise or franchise tax and are hereby made and declared to be (1) legal investments for savings banks and trustees unless otherwise provided in the instrument creating the trust, (2) securities in which all public officers and bodies, all insurance companies and associations and persons carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies and persons carrying on a banking or investment business, all administrators, guardians, executors, trustees and other fiduciaries and all persons whatsoever who are or may be authorized to invest in notes of the state, may properly and legally invest funds including capital in their control or belonging to them, and (3) securities which may be deposited with and shall be received by all public officers and bodies for any purpose for which the deposit of notes of the state is or may be authorized.

(e) Notwithstanding any provision of law, for the purpose of determining at any time or times the position of the General Fund as of June 30, 2004, the Comptroller is authorized and directed to give effect to and to show the funding of the General Fund deficit as of June 30, 2003, as certified and provided for in this section in an amount equal to the principal amount of the notes issued and deposited in the General Fund, provided the notes authorized in this section have been so issued prior to such time or times of determination, it being hereby declared to be the intent and purpose of this section to provide for the General Fund deficit as of June 30, 2003, by the funding thereof through the issuance of the notes.

(f) An amount equal to the amount certified by the Secretary of the Office of Policy and Management for retrospective reimbursements shall be credited to the State Administered General Assistance account in the Department of Social Services for the fiscal year ending June 30, 2004. Such amount shall be available to the department to pay such retrospective reimbursement claims received during the fiscal year ending June 30, 2004.

Sec. 2. Subdivision (13) of subsection (a) of section 16-245e of the general statutes, as amended by section 45 of public act 03-6 of the June 30 special session, is repealed and the following is substituted in lieu thereof (Effective from passage):

(13) "Transition property" means the property right created pursuant to this section and sections 16-245f to 16-245k, inclusive, as amended by this act, in respect of disbursements to the General Fund to sustain funding of conservation and load management and renewable energy investment programs or those stranded costs that are eligible to be funded with the proceeds of rate reduction bonds pursuant to section 16-245f, as amended by this act, including, without limitation, the right, title, and interest of an electric company or electric distribution company or its transferee or the financing entity (A) in and to the rates and charges established pursuant to a financing order, as adjusted from time to time in accordance with subdivision (2) of subsection (b) of section 16-245i, as amended by this act, and the financing order, (B) to be paid the amount that is determined in a financing order to be the amount that the electric company or electric distribution company or its transferee or the financing entity is lawfully entitled to receive pursuant to the provisions of this section and sections 16-245f to 16-245k, inclusive, as amended by this act, and the proceeds thereof, and in and to all revenues, collections, claims, payments, money, or proceeds of or arising from the rates and charges or constituting the competitive transition assessment that is the subject of a financing order including those non-bypassable rates and other charges referred to in subdivision (2) of this subsection, and (C) in and to all rights to obtain adjustments to the rates and charges pursuant to the terms of subdivision (2) of subsection (b) of section 16-245i, as amended by this act, and the financing order. "Transition property" shall constitute a current property right notwithstanding the fact that the value of the property right will depend on consumers using electricity or, in those instances where consumers are customers of a particular electric company or electric distribution company, the electric company or electric distribution company performing certain services.

Sec. 3. Section 16-245f of the general statutes, as amended by section 46 of public act 03-6 of the June 30 special session, is repealed and the following is substituted in lieu thereof (Effective from passage):

An electric company or electric distribution company [may] shall submit to the department an application for a financing order with respect to any proposal to sustain funding of conservation and load management and renewable energy investment programs by substituting disbursements to the General Fund from proceeds of rate reduction bonds for such disbursements from the Energy Conservation and Load Management Fund established by section 16-245m, as amended by this act, and from the Renewable Energy Investment Fund established by section 16-245n, as amended by this act, and may submit to the department an application for a financing order and with respect to the following stranded costs: (1) The cost of mitigation efforts, as calculated pursuant to subsection (c) of section 16-245e; (2) generation-related regulatory assets, as calculated pursuant to subsection (e) of section 16-245e, as amended by this act; and (3) those long-term contract costs that have been reduced to a fixed present value through the buyout, buydown, or renegotiation of such contracts, as calculated pursuant to subsection (f) of section 16-245e. No stranded costs shall be funded with the proceeds of rate reduction bonds unless (A) the electric company or electric distribution company proves to the satisfaction of the department that the savings attributable to such funding will be directly passed on to customers through lower rates, and (B) the department determines such funding will not result in giving the electric distribution company or any generation entities or affiliates an unfair competitive advantage. The department shall hold a hearing for each such electric distribution company to determine the amount of disbursements to the General Fund from proceeds of rate reduction bonds that may be substituted for such disbursements from the Energy Conservation and Load Management Fund established by section 16-245m, as amended by this act, and from the Renewable Energy Investment Fund established by section 16-245n, as amended by this act, and thereby constitute transition property and the portion of stranded costs that may be included in such funding and thereby constitute transition property. Any hearing shall be conducted as a contested case in accordance with chapter 54, except that any hearing with respect to a financing order or other order to sustain funding for conservation and load management and renewable energy investment programs by substituting the disbursement to the General Fund from the Energy Conservation and Load Management Fund established by section 16-245m, as amended by this act, and from the Renewable Energy Investment Fund established by section 16-245n, as amended by this act, shall not be a contested case, as defined in section 4-166. The department shall not include any rate reduction bonds as debt of an electric distribution company in determining the capital structure of the company in a rate-making proceeding, for calculating the company's return on equity or in any manner that would impact the electric distribution company for rate-making purposes, and shall not approve such rate reduction bonds that include covenants that have provisions prohibiting any change to their appointment of an administrator of the Conservation and Load Management Fund or the authorization of continuation of disbursements pursuant to section 20 of public act 03-2. Nothing in this subsection shall be deemed to affect the terms of subsection (b) of section 16-245m, as amended by this act.

Sec. 4. Subsection (a) of section 15-246g of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The Department of Public Utility Control shall assess and beginning January 1, 2000, impose the competitive transition assessment which shall be imposed on all customers of each electric distribution company to provide funds for the purposes described in subsection (d) of this section. The department shall hold a hearing that shall be conducted as a contested case in accordance with chapter 54, except as otherwise provided in section 16-245f, as amended by this act, to determine the amount of the competitive transition assessment.

Sec. 5. Subsection (a) of section 16-245h of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The competitive transition assessment described in subparagraph (A) of subdivision (2) of subsection (a) of section 16-245e shall constitute transition property when, and to the extent that, a financing order authorizing such portion of the competitive transition assessment has become effective in accordance with sections 16-245e to 16-245k, inclusive, and the transition property shall thereafter continuously exist as property for all purposes with all of the rights and privileges of sections 16-245e to 16-245k, inclusive, for the period and to the extent provided in the financing order, but in any event until the rate reduction bonds are paid in full, including all principal, interest, premium, costs, and arrearages on such bonds. Prior to its sale or other transfer by the electric company or electric distribution company pursuant to sections 16-245e to 16-245k, inclusive, transition property, other than transition property described in this subsection, shall be a vested contract right of the electric company or electric distribution company, notwithstanding any contrary treatment thereof for accounting, tax, or other purpose. Transition property in respect of disbursements to the General Fund to sustain funding of conservation and load management and renewable investment programs shall immediately upon its creation vest solely in the financing entity. The electric company or electric distribution company shall have no right, title or interest in transition property in respect of disbursements to the General Fund to sustain funding of conservation and load management and renewable investment programs, and in respect of such transition property shall be only a collection action agent on behalf of the financing entity.

Sec. 6. Section 16-245j of the general statutes is amended by adding subsection (e) as follows (Effective from passage):

(NEW) (e) When the state is the authorized financing entity, the Treasurer: (1) May enter into a trust indenture for the benefit of holders of the rate reduction bonds with a corporate trustee, which may be any trust company or commercial bank qualified to do business within or without the state; such trust indenture shall be consistent with the financing order and may contain such other provisions as may be appropriate including those regulating the investment of funds and the remedies of bondholders; (2) may make representations and agreements for the benefit of the holders of rate reduction bonds to make secondary market disclosures; (3) may enter into interest rate swap agreements and other agreements for the purpose of moderating interest rate risk on rate reduction bonds as permitted elsewhere within sections 16-245e to 16-245k, inclusive, provided the obligations under such agreements are payable from the transition property; (4) may enter into such other agreements and instruments to secure the rate reduction bonds as provided in sections 16-245f to 16-245k, inclusive; and (5) may take such other actions as necessary or appropriate for the issuance and distribution of the rate reduction bonds pursuant to the financing order and the Secretary of the Office of Policy and Management may make representations and agreements for the benefit of the holders of the rate reduction bonds which are necessary or appropriate to ensure exclusion of the interest payable on the rate reduction bonds from gross income under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended.

Sec. 7. Section 16-245k of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) A security interest in transition property is valid, is enforceable against the pledgor and third parties, subject to the rights of any third parties holding security interests in the transition property perfected in the manner described in this section, and attaches when all of the following have taken place:

(1) The department has issued the financing order authorizing the competitive transition assessment included in the transition property.

(2) Value has been given by the pledgees of the transition property.

(3) The pledgor has signed a security agreement covering the transition property.

(b) A valid and enforceable security interest in transition property is perfected when it has attached and when a financing statement has been filed in accordance with part 5 of article 9 of title 42a naming the pledgor of the transition property as "debtor" and identifying the transition property. Any description of the transition property shall be sufficient if it refers to the financing order creating the transition property. In each case, the financing statement shall be filed as if the debtor were located in this state. A copy of the financing statement shall be filed with the department by the electric company or electric distribution company or the financing entity that is the pledgor or transferor of the transition property, and the department may require the electric company or electric distribution company to make other filings with respect to the security interest in accordance with procedures it may establish, provided that the filings shall not affect the perfection of the security interest.

(c) A perfected security interest in transition property is a continuously perfected security interest in all revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued. Conflicting security interests shall rank according to priority in time of perfection. Transition property shall constitute property for all purposes, including for contracts securing rate reduction bonds, whether or not the revenues and proceeds arising with respect thereto have accrued.

(d) Subject to the terms of the security agreement covering the transition property and the rights of any third parties holding security interests in the transition property perfected in the manner described in this section, the validity and relative priority of a security interest created under this section are not defeated or adversely affected by the commingling of revenues arising with respect to the transition property with other funds of the electric company or electric distribution company that is the pledgor or transferor of, or the collection agent with respect to, the transition property, or by any security interest in a deposit account of that electric company or electric distribution company into which the revenues are deposited or in such revenues themselves perfected under article 9 of title 42a or otherwise. Subject to the terms of the security agreement, the pledgees of the transition property shall have a perfected security interest in all cash and deposit accounts of the electric company or electric distribution company in which revenues arising with respect to the transition property have been commingled with other funds, but the perfected security interest shall be limited to an amount not greater than the amount of the revenues with respect to the transition property received by the electric company or electric distribution company within twelve months before (1) any default under the security agreement, or (2) the institution of insolvency proceedings by or against the electric company or electric distribution company, less payments from the revenues to the pledgees during that twelve-month period.

(e) If an event of default occurs under the security agreement covering the transition property, the pledgees of the transition property, subject to the terms of the security agreement, shall have all rights and remedies of a secured party upon default under article 9 of title 42a, and shall be entitled to foreclose or otherwise enforce their security interest in the transition property, subject to the rights of any third parties holding prior security interests in the transition property perfected in the manner provided in this section. In addition, the department may require, in the financing order creating the transition property, that, in the event of default by the electric company or electric distribution company in payment of revenues arising with respect to the transition property, the department and any successor thereto, upon the application by the pledgees or transferees, including transferees under this section, of the transition property, and without limiting any other remedies available to the pledgees or transferees by reason of the default, shall order the sequestration and payment to the pledgees or transferees of revenues arising with respect to the transition property. Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor, pledgor, or transferor of the transition property. Any surplus in excess of amounts necessary to pay principal, premium, if any, interest, costs, and arrearages on the rate reduction bonds, and other costs arising under the security agreement, shall be remitted to the debtor or to the pledgor or transferor.

(f) Sections 42a-9-204 and 42a-9-205 shall apply to a pledge of transition property by an electric company or electric distribution company, an affiliate of an electric company or electric distribution company, or a financing entity.

(g) This section sets forth the terms by which a consensual security interest can be created and perfected in the transition property. Unless otherwise ordered by the department with respect to any series of rate reduction bonds on or prior to the issuance of the series, there shall exist a statutory lien as provided in this subsection. Upon the effective date of the financing order, there shall exist a first priority lien on all transition property then existing or thereafter arising pursuant to the terms of the financing order. This lien shall arise by operation of this section automatically without any action on the part of the electric company or electric distribution company, any affiliate thereof, the financing entity, or any other person. This lien shall secure all obligations, then existing or subsequently arising, to the holders of the rate reduction bonds issued pursuant to the financing order, the trustee or representative for the holders, and any other entity specified in the financing order. The persons for whose benefit this lien is established shall, upon the occurrence of any defaults specified in the financing order, have all rights and remedies of a secured party upon default under article 9 of title 42a, and shall be entitled to foreclose or otherwise enforce this statutory lien in the transition property. This lien shall attach to the transition property regardless of who shall own, or shall subsequently be determined to own, the transition property including any electric company or electric distribution company, any affiliate thereof, the financing entity, or any other person. This lien shall be valid, perfected, and enforceable against the owner of the transition property and all third parties upon the effectiveness of the financing order without any further public notice; provided, however, that any person may, but shall not be required to, file a financing statement in accordance with subsection (b) of this section. Financing statements so filed may be "protective filings" and shall not be evidence of the ownership of the transition property. A perfected statutory lien in transition property is a continuously perfected lien in all revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued. Conflicting liens shall rank according to priority in time of perfection. Transition property shall constitute property for all purposes, including for contracts securing rate reduction bonds, whether or not the revenues and proceeds arising with respect thereto have accrued. In addition, the department may require, in the financing order creating the transition property, that, in the event of default by the electric company or electric distribution company in payment of revenues arising with respect to transition property, the department and any successor thereto, upon the application by the beneficiaries of the statutory lien, and without limiting any other remedies available to the beneficiaries by reason of the default, shall order the sequestration and payment to the beneficiaries of revenues arising with respect to the transition property. Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor, pledgor, or transferor of the transition property. Any surplus in excess of amounts necessary to pay principal, premium, if any, interest, costs, and arrearages on the rate reduction bonds, and other costs arising in connection with the documents governing the rate reduction bonds, shall be remitted to the debtor or to the pledgor or transferor.

(h) A transfer of transition property by an electric company or electric distribution company to an affiliate or to a financing entity, or by an affiliate of an electric company or electric distribution company or a financing entity to another financing entity, which the parties have in the governing documentation expressly stated to be a sale or other absolute transfer, in a transaction approved in a financing order, shall be treated as an absolute transfer of all of the transferor's right, title, and interest, as in a true sale, and not as a pledge or other financing, of the transition property, in each case notwithstanding any contrary treatment of such transfer for accounting, tax, or other purposes. Granting to holders of rate reduction bonds a preferred right to revenues of the electric company or electric distribution company or the financing entity, or the provision by the company of other credit enhancement with respect to rate reduction bonds, shall not impair or negate the characterization of any transfer as a true sale, in each case notwithstanding any contrary treatment of such transfer for accounting, tax or other purposes.

(i) A transfer of transition property shall be deemed perfected as against third persons when both of the following have taken place:

(1) The department has issued the financing order authorizing the competitive transition assessment included in the transition property.

(2) An assignment of the transition property in writing has been executed and delivered to the transferee.

(j) As between bona fide assignees of the same right for value without notice, the assignee first filing a financing statement in accordance with part 5 of article 9 of title 42a naming the assignor of the transition property as debtor and identifying the transition property has priority. In each such case, the financing statement shall be filed as if the debtor were located in this state. Any description of the transition property shall be sufficient if it refers to the financing order creating the transition property. A copy of the financing statement shall be filed by the assignee or the financing entity with the department, and the department may require the assignor or the assignee or the financing entity to make other filings with respect to the transfer in accordance with procedures it may establish, but these filings shall not affect the perfection of the transfer.

(k) Any successor to the electric company or electric distribution company, whether pursuant to any bankruptcy, reorganization, or other insolvency proceeding, or pursuant to any merger, sale, or transfer, by operation of law, or otherwise, shall perform and satisfy all obligations of the electric company or electric distribution company pursuant to sections 16-245e to 16-245k, inclusive, in the same manner and to the same extent as the electric company or electric distribution company, including, but not limited to, collecting and paying to the holders of rate reduction bonds or their representatives or the applicable financing entity revenues arising with respect to the transition property sold to the applicable financing entity or pledged to secure rate reduction bonds.

(l) The authority of the department to issue financing orders pursuant to sections 16-245e to 16-245k, inclusive, shall expire on December 31, 2008. The expiration of the authority shall have no effect upon financing orders adopted by the department pursuant to sections 16-245e to 16-245k, inclusive, or any transition property arising therefrom, or upon the charges authorized to be levied thereunder, or the rights, interests, and obligations of the electric company or electric distribution company or a financing entity or holders of rate reduction bonds pursuant to the financing order, or the authority of the department to monitor, supervise, or take further action with respect to the financing order in accordance with the terms of sections 16-245e to 16-245k, inclusive, and of the financing order.

Sec. 8. Section 13a-252 of the general statutes, as amended by section 40 of public act 03-3 of the June 30 special session, is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The ferries crossing the Connecticut River, known as the Rocky Hill ferry and the Chester and Hadlyme ferry, shall be maintained and operated by the Commissioner of Transportation at the expense of the state. The rates of toll or the charges to be made for travel upon said ferries shall be fixed by the commissioner with the approval of the Secretary of the Office of Policy and Management, except that, after the effective date of this section, the rate of toll or charge shall be (1) for a motor vehicle and operator five dollars, (2) for each additional passenger one dollar and seventy-five cents, and (3) for each walk-on and bicycle one dollar and seventy-five cents. The commissioner may establish a discounted commuter rate for travel upon said ferries.

(b) All expense of maintenance, repairs and operation of said ferries shall be paid by the Comptroller on vouchers of the commissioner. The commissioner shall include in his report to the General Assembly a report of the receipts and expenditures incidental to the control and maintenance of said ferries. Said Rocky Hill ferry shall be maintained as a state historic structure and shall be so marked with an appropriate plaque by the commissioner in cooperation with the Connecticut Historical Commission.

Sec. 9. (NEW) (Effective from passage) Notwithstanding the provisions of section 16-245m of the general statutes, the Department of Public Utility Control shall authorize the disbursement of a total of one million dollars in each month, commencing with July, 2003, and ending with July, 2005, from the Energy Conservation and Load Management Funds established pursuant to said section 16-245m. The amount disbursed from each Energy Conservation and Load Management Fund shall be proportionately based on the receipts received by each fund. Such disbursements shall be deposited in the General Fund.

Sec. 10. (Effective from passage) Notwithstanding any provision of the general statutes, any municipality having a population between ten thousand and fifteen thousand, as enumerated in the 2000 federal decennial census, and which owns Class II watershed land purchased on or after August, 1999, which land was formerly used for agricultural purposes and which is not needed for water supply purposes, shall not be considered a water company for purposes of titles 16 and 25 of the general statutes and may use such land for the construction and operation of a sports field subject to the following conditions: (1) The sports field shall be owned by the municipality; (2) best management practices, as recommended from time to time by the Department of Environmental Protection, shall be used in the operation of the sports field; and (3) the manager of the sports field shall file an annual report with any water company drawing water from the watershed, the Department of Environmental Protection and the municipality describing the best management practices used in the operation of the sports field. Such report shall be made available to the public.

Sec. 11. (NEW) (Effective from passage) On and after August 20, 2003, the Commissioner of Social Services may impose cost sharing requirements on recipients of medical assistance, including a deductible, coinsurance or similar charge up to the maximum permitted under 42 CFR 447. 54. The Commissioner of Social Services shall impose cost sharing requirements on recipients of medical assistance, as follows: (1) A one dollar copayment for each outpatient medical service delivered by an enrolled Medicaid provider to a medical assistance recipient as permitted under federal law, and (2) a one dollar copayment for each drug prescription at the time the prescription is filled. On and after October 1, 2003, the copayment for prescription drugs shall be one dollar and fifty cents per prescription and the copayment for outpatient medical services shall not exceed three dollars per service in accordance with 42 CFR 447. 54. To the degree permitted under federal law, the commissioner may make modifications to the prescription cost sharing requirements imposed pursuant to this section for certain individuals who have drugs dispensed in less than a thirty-day supply and may exempt residents in certain institutional settings from such requirements. Such cost sharing requirements shall be implemented in accordance with the conditions specified in federal regulations.

Approved September 10, 2003