You asked for a summary of the bills favorably reported by the Transportation Committee to the Finance, Revenue, and Bonding Committee.

SB 520—AN ACT CONCERNING AVIATION

The bill exempts service, sales, and equipment used in aviation from the sales and use tax. Currently, Connecticut exempts repair and replacement parts, repair services, and certain aircraft related business activities provided the aircraft (1) is owned or leased by a certificated air carrier or (2) has a maximum certified take-off weight of 6, 000 pounds or more. It also exempts repair or replacement parts used in significant overhauls of aircraft on a factory basis.

EFFECTIVE DATE: July 1, 2006

SB 526—AN ACT CONCERNING CERTAIN STATE RAILWAYS

The bill requires the transportation commissioner to recommend to the railroads operating in Connecticut that rail service between New Haven and New London expand its hours of operation by initiating reverse commute service and adding or expanding weekend service. Currently, Amtrak provides commuter service under contract to the state between New Haven and New London through the Shoreline East commuter service.

The bill also appropriates an unspecified amount to the Department of Transportation (DOT) for FY 07 for construction of a center island platform at the Bridgeport train station.

EFFECTIVE DATE: Upon passage for the service recommendations; July 1, 2006 for the appropriation.

SB 582—AN ACT AUTHORIZING BONDS OF THE STATE FOR INVESTIGATING INTERMODAL TRANSPORTATION INFRASTRUCTURE

The bill authorizes a total of $ 140 million in state bonds for several transportation purposes summarized below.

The bill authorizes issuance of up to $ 50 million in state bonds, the proceeds of which must be used by the DOT (1) to fund construction projects to improve the viability of freight railroad companies and (2) to deposit in a separate, non-lapsing Freight Railroad Fund the bill creates. It requires the commissioner of the Department of Economic and Community Development (DECD) to provide financing to railroad companies that move freight to improve rail lines and create new industrial zones. It provides an additional bond authorization of $ 50 million for DECD to use to help businesses improve their use of railroads to move freight.

In addition, the bill authorizes $ 20 million in bonding for DOT to use to build a freight terminal at Bradley International Airport and another $ 20 million for DOT to use to pay the transportation costs relating to Transportation Strategy Board projects involving (1) facilitating the use of Long Island sound for passenger and freight movement and (2) establishing rail freight service with connections to the ports of New London, New Haven, and Bridgeport. To this end, it expands the current authorization for (1) facilitating use of Long Island Sound to include funding for a feeder barge service at the Bridgeport Intermodal Facility and (2) establishing port rail freight service connections from the just the port of new London to the ports of New London, including the State Pier, Bridgeport, and New Haven to encourage their use as freight hubs.

EFFECTIVE DATE: July 1, 2006

SB 583—AN ACT IMPROVING CONNECTICUT BUS TRANSIT

The bill authorizes a total of $ 625 million in state bonding for several major transportation projects as follows:

• Up to $ 350 million for the New Britain Hartford Busway

• Up to $ 75 million to establish a mass transit connection between the Hartford-Springfield-New Haven rail service and Bradley International Airport

• Up to $ 50 million for constructing transportation hubs

• Up to $ 50 million for a tourist transit system for southeastern Connecticut

• Up to $ 100 million to establish other bus rapid transit lines or light rail service in Hartford and the surrounding towns.

The bill also expands several of the current project authorizations to include additional activities. It expands the New Britain-Hartford Busway authorization to include building stations and acquiring buses. It requires priority in establishing other bus rapid transit or light rail services to be given to Manchester and Vernon. It authorizes a southeastern tourist transit system consisting of 60 buses with a system design to serve New London, Mystic, Stonington, and the areas surrounding the casinos. Finally, it requires (1) if technically feasible, a single bus procurement project to include designation of certain buses to be powered by fuel cells and a plan for related refueling stations and (2) as part of any construction project, consideration of establishing a transportation hub (defined as any physical facility housing at least two transit modes).

EFFECTIVE DATE: July 1, 2006, except the definition of a transportation hub is effective upon passage

SB 584—AN ACT IMPROVING RAIL TRANSIT

The bill authorizes up to $ 595 million in state bonds for the following purposes:

• Up to $ 400 million for the New Haven-Hartford-Springfield rail service

• Up to $ 30 million for the West Haven/Orange rail station on the New Haven Line

• Up to $ 15 million for parking garages at New Haven Line rail stations

• Up to $ 100 million to expand the Shoreline East rail service

• Up to $ 50 million to expand rail service on the Danbury branch line, including extension of the service to New Milford

The bill explicitly requires DOT to build a West Haven/Orange rail station that includes parking for at least 1,000 cars and new parking garages at other stations. It also requires DOT to complete final studies and begin construction of new stations, refurbish existing stations, and acquire equipment to implement the New Haven-Hartford-Springfield rail service. It specifically requires DOT to acquire three engines and 24 coaches to increase service on the Shoreline East service

The bill also requires DOT, in conjunction with the Transportation Strategy Board, to study the feasibility of (1) building a fuel cell power station to generate power for the New Haven Line and (2) creating a commuter rail line from New London to Worcester, Massachusetts. DOT must report its findings and recommendations to the transportation Committee by January 1, 2007.

EFFECTIVE DATE: July 1, 2006, except the two studies are effective upon passage.

sHB 5226—AN ACT AUTHORIZING BONDS OF THE STATE FOR A BRIDGE OVER THE PARK RIVER IN HARTFORD AND RECONSTRUCTION OF CERTAIN ROADS IN MILFORD

The bill authorizes (1) up to $ 500,000 in bonding for the purpose of building a bridge over the Park River in Hartford and (2) an unspecified amount of bonding for DOT to use to reconstruct Plains and Oronoke Roads, including the Metro North railroad crossing in Milford.

EFFECTIVE DATE: July 1, 2006

HB 5399—AN ACT AUTHORIZING BONDS OF THE STATE FOR THE CANNONDALE TRAIN STATION

The bill authorizes up to $ 250,000 in bonding for DOT to use to add water service and a bathroom to the Cannondale train station in Wilton.

EFFECTIVE DATE: July 1, 2006

sHB 5715—AN ACT CONCERNING STATE-WIDE TRANSPORTATION IMPROVEMENTS

The bill (1) authorizes $ 1 billion in general obligation bonding in $ 100 million annual amounts for 10 years from FY 08 through FY 17 for funding the projects identified by the Transportation Strategy Board (TSB), (2) increases the quarterly petroleum products gross earnings tax from 7% for FY 08 calendar quarters to 7. 5% and, increases it incrementally each year until it reaches 10. 8% in FY 17 and beyond, and (3) creates a new position of Undersecretary of Transit and Growth in the Office of Policy and Management to, among other things, act as the executive director of the TSB and oversee implementation of its initiatives in implementing a transportation strategy.

Currently, the petroleum products gross receipts tax, which is paid by companies that distribute certain products in Connecticut that contain or are made from petroleum or petroleum derivatives, is 5. 8% for calendar quarters in FY 06, 6. 3% for FY 07 calendar quarters, 7% for FY 08 calendar quarters, 7. 5% for calendar quarters in FY 09 through FY 13, and 8. 1% for FY 14 and thereafter. The bill changes this schedule as shown in the table below.

The bill authorizes the State Bond Commission to issue revenue bonds for TSB strategy projects backed solely by the revenue placed in the TSB projects account for these purposes. Like the current revenue generated by the petroleum products tax, the additional revenue generated by the higher tax rates must be deposited in the Special Transportation Fund. The bill requires, beginning with the calendar quarter ending September 30, 2006, unspecified amounts to be transferred from the STF to the TSB projects account each quarter. It also requires, beginning July 1, 2006, any revenue from the motor fuels tax in excess of the amounts already specified by law and the bill to be deposited into the TSB projects account in the STF rather than in the STF. (This provision appears to be putting all motor fuels tax receipts into the TSB projects account which is maintained within the STF rather than leaving it solely in the STF itself. )

The bill requires the Undersecretary of Transit and Growth, in addition to other things, to (1) consult with the state agencies represented on the TSB, (2) make recommendations that foster regional commuter and freight initiatives with neighboring northeastern states and identify potential public-private partnerships with respect to TSB projects, (3) prepare a statewide “build-out” analysis to refine TSB projects and provide technical assistance and capacity building to municipalities and regional agencies to help them establish plans that comply with the state plan of conservation and development, and (4) submit a submit an annual report to the governor and the legislature's transportation, finance, and planning and development committees on the implementation status of TSB projects. The required report must include recommended revisions to projects, an explanation of any obstacles to their completion, and the anticipated advantages and disadvantages of completing them. When the committees receive the report, they must hold a joint public hearing to evaluate the progress or lack thereof on implementing the TSB projects. The undersecretary and the transportation, environmental protection, economic and community development, and public safety, and the policy and management secretary, must all attend the public hearing. (They all sit on the TSB. )

Finally, the bill requires all of the TSB projects identified in the current law to be initiated by the DOT, in consultation with the TSB and undersecretary, within 10 years of the bill's passage.

EFFECTIVE DATE: Upon passage

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