House Bill No. 7502
               House Bill No. 7502

   June 5 Special Session, PUBLIC ACT NO. 97-1


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 (f) and (g) of section
3-20  of  the  general  statutes,  as  amended  by
section  43  of  public  act  97-11 of the June 18
special session, are repealed and the following is
substituted in lieu thereof:
    (f)  With  the  exception  of refunding bonds,
the proceeds of the sale  of  the  bonds  and  any
moneys   held  or  otherwise  set  aside  for  the
repayment of the bonds shall be deposited with the
Treasurer  or,  at the direction of the Treasurer,
with a commercial bank or trust company, in  trust
for  the  benefit of the state, pending the use or
application thereof, for the purpose and  projects
specified  in  the  bond  act empowering the State
Bond  Commission  to  authorize  such  bonds.  Any
expense  incurred  in connection with the carrying
out of the provisions of this  section,  including
the  issuance  of  refunding  bonds, shall be paid
from the accrued interest and premiums or from the
proceeds  of  the  sale of such bonds or refunding
bonds and in the same manner as other  obligations
of  the  state,  except  that expenses incurred in
connection  with  the  preparation,  issuance  and
delivery  of  general  obligation  bonds issued in
accordance with sections  3-17  and  10-183m,  and
delivered  to  the retirement fund provided for in
section 10-183r shall be paid out of  the  General
Fund  if  sufficient accrued interest and premiums
are not available to pay such expenses.  With  the
exception  of  the  proceeds  of  refunding  bonds
DEPOSITED IN A DEFEASANCE ESCROW FUND, pending the
use  or  application  of any such bond proceeds or
any such funds, such  proceeds  or  funds  may  be
deposited with the Treasurer in such fund or funds
of the state as appropriate or at the direction of
the  Treasurer  in  a  commercial  bank  or  trust
company with or without security to the credit  of
such  fund  or funds, or may be invested by, or at
the  direction  of  the  Treasurer  in  bonds   or
obligations of, or guaranteed by, the state or the
United States, or agencies or instrumentalities of
the  United  States,  in  certificates of deposit,
commercial  paper,  savings  accounts   and   bank
acceptances,  in  the  obligations of any state of
the United States  or  any  political  subdivision
THEREOF OR THE OBLIGATIONS OF ANY INSTRUMENTALITY,
authority  or  agency  [thereof]  OF  ANY   STATE,
provided  that  at  the  time  of  investment such
obligations are rated within one of  the  top  two
rating  categories  of  any  nationally recognized
rating service or of any rating service recognized
by   the   state   Commissioner  of  Banking,  and
applicable to such obligations, in the obligations
of  any regional school district in this state, of
any municipality in this state or any metropolitan
district  in this state, provided that at the time
of investment such obligations of such  government
entity  are  rated  within  one  of  the top three
rating categories  of  any  nationally  recognized
rating service or of any rating service recognized
by  the  state  Commissioner   of   Banking,   and
applicable  to such obligations, or in any fund in
which a trustee may  invest  pursuant  to  section
36a-353,   or   in   investment   agreements  with
financial institutions whose LONG-TERM OBLIGATIONS
ARE  RATED WITHIN THE TOP TWO RATING CATEGORIES OF
ANY NATIONALLY RECOGNIZED RATING SERVICE OR OF ANY
RATING    SERVICE    RECOGNIZED   BY   THE   STATE
COMMISSIONER  OF  BANKING  OR   WHOSE   short-term
obligations  are rated within the top [two] rating
[categories] CATEGORY of any nationally recognized
rating service or of any rating service recognized
by  the  state   Commissioner   of   Banking,   or
investment agreements fully secured by obligations
of,  or  guaranteed  by,  the  United  States   or
agencies   or   instrumentalities  of  the  United
States. Except as may be provided herein or in any
other  public  or  special  act,  net  earnings of
investments of proceeds of bonds and  such  funds,
and  accrued interest and premiums on the issuance
of such bonds shall,  after  payment  of  expenses
incurred by the Treasurer or State Bond Commission
in connection with  their  issuance,  if  any,  be
deposited to the credit of the General Fund.
    (g)  With  the  exception  of refunding bonds,
whenever  a  bond  act  empowers  the  State  Bond
Commission  to  authorize bonds for any project or
purpose or projects or purposes, and whenever  the
State Bond Commission finds that the authorization
of such bonds will be in the best interests of the
state, it shall authorize such bonds by resolution
adopted by  the  approving  vote  of  at  least  a
majority  of  said  commission. No such resolution
shall be so adopted by the State  Bond  Commission
unless  it finds that there has been filed with it
(1) any capital development impact  statement  and
any  human  services facility colocation statement
[required] to be filed with the Secretary  of  the
Office  of  Policy and Management, IF SO REQUESTED
BY THE SECRETARY, pursuant to  section  4b-23,  AS
AMENDED  BY  OF THIS ACT; (2) a statement from the
Commissioner of Agriculture, pursuant  to  section
22-6, for projects which would convert twenty-five
or   more   acres   of   prime   farmland   to   a
nonagricultural  use,  and  (3)  such requests and
such other  documents  as  it  or  said  bond  act
require,  provided  no  resolution with respect to
any school building project financed  pursuant  to
section  10-287d  or any interest subsidy financed
pursuant to section 93 of public act 97-265  shall
require  the  filing of any statements pursuant to
subdivision (1) or (2) of this section.  Any  such
resolution so adopted by the State Bond Commission
shall  recite  the  bond  act  under  which   said
commission  is  empowered  to authorize such bonds
and  the  filing  of  all   requests   and   other
documents,  if  any,  required  by it or such bond
act, and shall state the principal amount  of  the
bonds  authorized and a description of the purpose
or project for which such  bonds  are  authorized.
Such  description  shall  be  sufficient  if  made
merely by  reference  to  a  numbered  subsection,
subdivision  or  other  applicable section of such
bond act. The  agenda  of  each  meeting,  or  any
supporting  documents  included  with such agenda,
shall include a reference to the statute or public
or special act which is the source of any funds to
be used for any project on such agenda,  including
any   contingency   funds   and   any   reuse   or
reallocation of funds previously approved for  any
other  use  or  project,  and  a  notation  of the
outside source from which any funds for  any  such
project  were received, if any. Upon adoption of a
resolution, the  principal  amount  of  the  bonds
authorized  therein  for  such  purpose or project
shall  be  deemed  to  be  an  appropriation   and
allocation  of  such  amount  for  such purpose or
project, respectively, and subject to approval  by
the  Governor  of  allotment  thereof  and  to any
authorization for such project or purpose that may
otherwise  be  required,  contracts may be awarded
and obligations incurred with respect to any  such
project or purpose in amounts not in the aggregate
exceeding  such   authorized   principal   amount,
notwithstanding    that    such    contracts   and
obligations may at a particular  time  exceed  the
amount of the proceeds from the sale of such bonds
theretofore received by the  state.  In  any  such
resolution  so  adopted, the State Bond Commission
may include provision for the  date  or  dates  of
such  bonds,  the  maturity  of  such  bonds  and,
notwithstanding the provisions  of  any  bond  act
taking effect prior to July 1, 1973, provision for
either serial  or  term,  sinking  fund  or  other
reserve  fund  requirements,  if any, due dates of
the interest thereon, the form of such bonds,  the
denominations   and  designation  of  such  bonds,
registration, conversion and  transfer  privileges
and  the  terms  of  redemption  with  or  without
premium and the date and manner of  sale  of  such
bonds,  provisions  for  the consolidation of such
bonds with other bonds including  refunding  bonds
for  the purpose of sale as provided in subsection
(h)  hereof,  limitations  with  respect  to   the
interest  rate  or rates on such bonds, provisions
for receipt and deposit or investment of the  good
faith  deposit  pending delivery of such bonds and
such other terms and conditions of such bonds  and
of the issuance and sale thereof as the State Bond
Commission  may  determine  to  be  in  the   best
interest  of  the  state,  provided the State Bond
Commission may delegate to the  Treasurer  all  or
any  part  of  the foregoing powers in which event
the Treasurer shall exercise such powers until the
State Bond Commission, by adoption of a resolution
prior to exercise of such powers by the  Treasurer
shall  elect  to  reassume  the  same. Such powers
shall be exercised  from  time  to  time  in  such
manner  as  the Treasurer shall determine to be in
the best interests of the state and he shall  file
a  certificate  of determination setting forth the
details thereof with the secretary  of  the  State
Bond  Commission on or before the date of delivery
of  such  bonds,  the  details   of   which   were
determined   by   him   in  accordance  with  such
delegation.  The   State   Bond   Commission   may
authorize   the   Commissioner   of  Economic  and
Community  Development  to   defer   payments   of
interest  or  principal,  or a portion thereof, in
the  case  of  a  troubled  loan,  as  defined  in
subdivision  (1)  of  subsection  (e)  of  section
8-37x,  made  by  the   commissioner   under   any
provision of the general statutes.
    Sec.  2.  Subsections  (a)  and (b) of section
4-66c of the general statutes are repealed and the
following is substituted in lieu thereof:
    (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 [two] THREE  hundred  [seventy-five]
EIGHTY-FOUR    million    [eight]    SIX   hundred
ninety-five thousand  nine  hundred  two  dollars,
provided  [ninety] FIFTY-FOUR million FOUR HUNDRED
THOUSAND dollars of said  authorization  shall  be
effective  July  1, [1996] 1998. All provisions of
section 3-20, AS  AMENDED  BY  THIS  ACT,  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 [fifty-eight]
SIXTY-SEVEN million [five] THREE hundred  thousand
dollars, provided [five] FOUR million FOUR HUNDRED
THOUSAND dollars of said  authorization  shall  be
effective  July  1,  [1996]  1998; [, of which not
more than two million dollars shall  be  used  for
the Technology-Based Revolving Loan Fund program;]
(2) for the Department  of  Transportation:  Urban
mass  transit,  not  exceeding  one  million  nine
hundred  ninety-five  thousand  nine  hundred  two
dollars;  (3)  for the Department of Environmental
Protection: Recreation development and solid waste
disposal   projects,  not  exceeding  two  million
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  [one] TWO
hundred seventy  million  three  hundred  thousand
dollars,   provided  [eighty-five]  FIFTY  million
dollars of said authorization shall  be  effective
July 1, [1996] 1998.
    Sec.  3.  Subsection  (a)  of section 4a-10 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (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 hundred  [fourteen]
FORTY-ONE  million  five hundred thousand dollars,
provided  [eleven]  TEN  million   eight   hundred
thousand  dollars  of  said authorization shall be
effective July 1, [1996] 1998.
    Sec.   4.   Section   4b-21   of  the  general
statutes, as amended by section 2  of  public  act
97-71,   is   repealed   and   the   following  is
substituted in lieu thereof:
    (a)  When  the  General  Assembly  is  not  in
session, the trustees of  any  state  institution,
the  State  Board of Education or the Commissioner
of Correction may, subject to  the  provisions  of
section 4b-23, AS AMENDED BY THIS ACT, purchase or
acquire for the state, through the Commissioner of
Public Works, any land or interest therein if such
action seems  advisable  to  protect  the  state's
interest  or  to effect a needed economy, and may,
subject  to  the  provisions  of   said   section,
contract  through the Commissioner of Public Works
for the sale or exchange of any land  or  interest
therein  belonging  to  the  state except that The
University of Connecticut may purchase or  acquire
for  the  state and may dispose of or exchange any
land  or  interest  therein  directly.  When   the
General   Assembly   is   not   in   session,  the
Commissioner of Public Works, with the approval of
the  State  Properties  Review  Board, may give or
obtain an option upon any land or interest therein
which  is not under the control of the trustees of
any  state  institution,  the   State   Board   of
Education  or  the Commissioner of Correction when
such action seems advisable, and such option shall
remain  in force until the fifteenth day of August
following  the  next  session   of   the   General
Assembly.
    (b)    Any   state   agency,   department   or
institution having custody and control of land, an
improvement to land or interest in land, belonging
to the state, shall inform the  Secretary  of  the
Office  of Policy and Management, in writing, when
such land, improvement or  interest  or  any  part
thereof is not needed by the agency, department or
institution. Upon receipt  of  such  notification,
the  secretary  shall  arrange  for  such  agency,
department or institution  to  forthwith  transfer
custody  and  control of such land, improvement or
interest to the Department of Public Works,  along
with  adequate  funding  for  personnel  and other
operating expenses required for the maintenance of
such  land,  improvement  or  interest,  and shall
notify  all  state   agencies,   departments   and
institutions   that   such  land,  improvement  or
interest  is  available.  Within  ninety  days  of
receipt  of  such notification from the secretary,
any state agency, department or  institution  that
is  interested  in utilizing the land, improvement
or interest shall submit a plan to  the  secretary
that  sets  forth  the  proposed use for the land,
improvement or interest and a budget and timetable
for  such use. If the Commissioner of Economic and
Community Development determines that  such  land,
improvement or interest can be utilized or adapted
for use as an emergency  shelter  or  transitional
living  facility  for  homeless  persons or can be
utilized or exchanged for property  which  can  be
utilized  for  the construction, rehabilitation or
renovation of housing for persons and families  of
low and moderate income, said commissioner may (1)
within  such  ninety-day  period,  submit  to  the
secretary,  in  lieu  of  such plan, a preliminary
plan indicating  that  the  land,  improvement  or
interest can be utilized, adapted or exchanged for
such housing purposes  and  stating  the  type  of
housing  that is planned and (2) within six months
after the end of such ninety-day period, submit  a
comprehensive  plan  for  the  development of such
housing to the secretary, in a form prescribed  by
the secretary. If the Commissioner of Economic and
Community  Development  submits  preliminary   and
comprehensive  plans  to the secretary within such
periods, the  agency,  department  or  institution
having   custody   and   control   of   the  land,
improvement or interest shall transfer custody and
control   to  the  Commissioner  of  Economic  and
Community  Development  in  accordance  with  such
procedures  as the secretary may prescribe. If (A)
the  Commissioner  of   Economic   and   Community
Development  does not submit a preliminary plan to
the secretary within such ninety-day period or  so
submits  a  preliminary plan but does not submit a
comprehensive plan to the  secretary  within  such
six-month  period,  and  (B) one or more agencies,
departments or institutions submit a plan for such
land,  improvement  or  interest  to the secretary
within such ninety-day period, the secretary shall
analyze  such  agency,  department  or institution
plan or plans and determine  whether  (i)  custody
and  control  of the land, improvement or interest
shall be transferred  to  one  of  such  agencies,
departments  or  institutions,  in  which case the
agency, department or institution  having  custody
of  the  land,  improvement or interest shall make
such transfer, or (ii) the  land,  improvement  or
interest shall be treated as surplus.
    (c)  If  the  secretary  determines  that such
land, improvement, interest or  part  thereof  may
properly  be  treated  as surplus, he shall notify
the Commissioner of Public Works. If the secretary
also  determines  that  such  land, improvement or
interest or part thereof was purchased or improved
with  proceeds of tax exempt obligations issued or
to be issued by the state, he  shall  also  notify
the  Treasurer.  The  Commissioner of Public Works
may  sell,  exchange  or  lease,  or  enter   into
agreements  concerning,  such  land,  improvement,
interest or part thereof, after (1) notifying  (A)
the  municipality  or municipalities in which such
land, improvement or interest is located  and  (B)
the  members  of the General Assembly representing
such  municipality  or  municipalities,  and   (2)
obtaining the approval of (A) the Secretary of the
Office of Policy and  Management,  (B)  the  State
Properties Review Board and (C) the joint standing
committees  of   the   General   Assembly   having
cognizance   of  matters  relating  to  (i)  state
revenue and (ii) the purchase and  sale  of  state
property  and  facilities  and  (3)  if such land,
improvement,  interest   or   part   thereof   was
purchased  or improved with proceeds of tax exempt
obligations issued or to be issued by  the  state,
obtaining  the  approval  of  the  Treasurer.  The
Treasurer may disapprove such a  transaction  only
if  the  transaction  would  affect the tax exempt
status  of  such  obligations  and  could  not  be
modified  to maintain such tax exempt status. If a
proposed agreement for such a conveyance  has  not
been  submitted  to  the  State  Properties Review
Board within three years after the Commissioner of
Public   Works   provides   such  notice  to  such
municipality  and  such  members  of  the  General
Assembly,  or  if  the  board does not approve the
proposed agreement within five  years  after  such
notice,  the  Commissioner of Public Works may not
convey such land, improvement or interest  without
again  so  notifying  such  municipality  and such
members of the General Assembly. In the case of  a
proposed  lease of land, an improvement to land or
an interest in land, or any part thereof,  with  a
person, firm or corporation in the private sector,
for a term of six months or more, the Commissioner
of  Public  Works  shall  comply  with such notice
requirement by  notifying  in  writing  the  chief
executive officer of the municipality in which the
land, improvement or interest is located  and  the
members  of the General Assembly representing such
municipality,  not  less  than  two  weeks  before
seeking  the approval of said secretary, board and
committees, concerning the proposed lease and  the
manner  in  which  the  lessee proposes to use the
land,  improvement  or  interest.   Each   agency,
department   or   institution  which  informs  the
secretary that any land, improvement  or  interest
in  land is not needed shall retain responsibility
for  its  security  and  maintenance   until   the
Commissioner  of Public Works receives custody and
control of the property,  if  any.  The  Treasurer
shall  execute  and deliver any deed or instrument
necessary to convey the title to any property  the
sale  or  exchange  of which or a contract for the
sale or exchange of which is  authorized  by  this
section.
    (d)  Upon  approval  of the proposed action of
the Commissioner of Public Works by said secretary
and   board,   said   commissioner  shall  request
approval of such action  by  said  joint  standing
committees.   The   committees  shall  approve  or
disapprove such action within fifteen  days  after
receipt  of  the  request. If a committee does not
act on a request  within  that  time  the  request
shall be deemed to be approved by the committee.
    [(e)  Twenty per cent of the funds received by
the state from the sale of land or an  improvement
to  land  under this section shall be allocated to
the state agency, department or institution  which
had   custody   and   control   of  such  land  or
improvement and  shall  be  used  by  the  agency,
department or institution for capital improvements
to,  or  the  maintenance  of,   other   land   or
improvements  to  land  which is under the custody
and  control  of   the   agency,   department   or
institution.  The remaining eighty per cent of the
funds received by the state from the sale of  land
or an improvement to land under this section shall
be deposited in the state  properties  improvement
account  established  under  section  4b-21a.  The
provisions of this subsection shall not  apply  to
(1)  the  sale  of  land or an improvement to land
under the custody and control of the Department of
Transportation  or  (2) the sale of any portion of
the facilities  or  campuses  of  the  Connecticut
Valley Hospital, Norwich Hospital, Fairfield Hills
Hospital,  Southbury  Training   School,   Seaside
Center,  Henry  D.  Altobello  Children  and Youth
Center or Mansfield Training School.
    (f)]  (e)  No  provision of this section shall
be construed to limit,  supersede  or  repeal  any
other  provision  of law relating to the powers or
duties of any state agency.
    [(g)]  (f) The requirements of subsections (b)
to (d), inclusive, of this section shall not apply
to  land  which  the Commissioner of Environmental
Protection has acquired pursuant to 42 USC 9601 et
seq.,   the  federal  Comprehensive  Environmental
Response, Compensation and Liability Act of  1980,
as amended, (CERCLA).
    Sec.  5.  Subsection  (a)  of section 4b-23 of
the general statutes, as amended by section  3  of
public  act  97-247, is repealed and the following
is substituted in lieu thereof:
    (a)  As used in this section, "facility" means
buildings and real property owned or leased by the
state.  The  Secretary of the Office of Policy and
Management  shall   establish   guidelines   which
further   define   such  term.  All  agencies  and
departments  of  the  state   shall   notify   the
Secretary  of  the Office of Policy and Management
of their facility needs including, but not limited
to,   the   types   of  such  facilities  and  the
municipalities  or  general   location   for   the
facilities.   Each  agency  and  department  shall
continue long-range planning for  facility  needs,
establish a plan for its long-range facility needs
and submit such plan and related facility  project
requests  to the Secretary of the Office of Policy
and  Management,  and  a  copy  thereof   to   the
Commissioner   of   Public  Works,  on  or  before
September first of each even-numbered  year.  Each
such  request  shall  be  accompanied by a capital
development  impact  statement,  as  required   by
section  4-66b,  and  a  colocation  statement, as
required by section 4b-31,  IF  THE  SECRETARY  SO
REQUIRES.  Each  agency  and department shall base
its long-term planning for  facility  needs  on  a
program  plan.  The  secretary  shall  establish a
content guide and schedule for  such  plans.  Each
agency  and  department  shall prepare its program
plan in accordance with such  guide  and  file  it
with  the  secretary  pursuant  to  such schedule.
Facility plans shall include, but not  be  limited
to: Identification of (1) long-term and short-term
facility  needs,   (2)   opportunities   for   the
substitution   of  state-owned  space  for  leased
space, (3) facilities proposed for  demolition  or
abandonment  which  have  potential for other uses
and (4) space modifications  or  relocations  that
could  result  in  cost  or  energy  savings. Each
agency or department  program  plan  and  facility
plan and its facility project requests shall cover
a period of at least  five  years.  The  secretary
shall   provide   agencies  and  departments  with
instructions   for   preparing   program    plans,
long-term  facility  plans  and  facility  project
requests    and    shall    provide    appropriate
programmatic planning assistance. The Commissioner
of  Public  Works  shall   assist   agencies   and
departments with long-term facilities planning and
the preparation of cost estimates for  such  plans
and  requests.  The  Secretary  of  the  Office of
Policy and Management shall review such plans  and
prepare  an  integrated  state facility plan which
meets the aggregate facility needs of  the  state.
The  secretary  shall  review  the  cost effective
retrofit  measures  recommended  to  him  by   the
Commissioner  of Public Works under subsection (b)
of section 16a-38a and include in the  plan  those
measures   which  would  best  attain  the  energy
performance    standards     established     under
subdivision  (1)  of  subsection  (b)  of  section
16a-38.
    Sec.  6.  Subsection  (k)  of section 4b-23 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (k)   Any   agency   or  department  of  state
government  requiring  additional  facilities  not
included  in  the state facility plan may submit a
request to the Secretary of the Office  of  Policy
and Management outlining the justification for its
request.  The  agency  or  department  shall  also
provide   (1)   in  the  case  of  a  request  not
previously submitted to the secretary pursuant  to
subsection (a) of this section, the reasons why it
was not so submitted, and (2) in  the  case  of  a
request  so  submitted, sufficient new information
to warrant  reconsideration.  Such  request  shall
include  a  statement  of  the degree to which the
proposed state facility plan  promotes  the  goals
addressed  in  subsection (e) of section 4b-31, IF
THE SECRETARY SO REQUIRES. Such request shall also
be  accompanied  by  a  capital development impact
statement as required under section 4-66b, IF  THE
SECRETARY  SO  REQUIRES.  Subsections  (b) to (d),
inclusive, of this section shall not apply to  the
review  of  such  requests.  Any  such request for
additional facilities which are determined by  the
Secretary  of  the Office of Policy and Management
to be of emergency nature or the lack of which may
seriously  hinder  the  efficient operation of the
state, may be approved by  the  Properties  Review
Board  and  the  Secretary of the Office of Policy
and Management and shall be known as  an  approval
made  during  the  interim  between state facility
plans. No action may be  taken  by  the  state  to
lease  or  construct  such  additional  facilities
unless the secretary makes such a determination.
    Sec.  7.  Subdivision (4) of subsection (a) of
section 7-536 of the general statutes, as  amended
by section 1 of public act 97-244, is repealed and
the following is substituted in lieu thereof:
    (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  or  bridges,  (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,
[or]  (K)  public  housing   projects,   including
renovations    and    improvements    and   energy
conservation and  the  development  of  additional
housing,  OR (L) RENOVATIONS TO OR CONSTRUCTION OF
VETERANS  MEMORIAL   MONUMENTS.   "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.  8.  Subsection  (a)  of section 7-538 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (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]  THREE  hundred
[ninety]  FIFTY  million  dollars, provided thirty
million dollars of  said  authorization  shall  be
effective July 1, [1996] 1998.
    Sec.  9.  Subsection (a) of section 10-265d of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  For purposes of making grants pursuant to
section 10-265c, the State Treasurer is authorized
and  directed,  subject  to and in accordance with
the provisions of section 3-20, AS AMENDED BY THIS
ACT, to issue bonds of the state from time to time
in one or more series in an aggregate  amount  not
exceeding  [fifteen] FOURTEEN million NINE HUNDRED
THOUSAND dollars, provided one million dollars  of
said  authorization  shall  be  effective  July 1,
1994. Bonds of each series shall bear such date or
dates  and  mature  at  such  time  or  times  not
exceeding twenty 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
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.  10. Subsection (b) of section 10a-25b of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b)  The  proceeds  of the sale of said bonds,
to the extent hereinafter stated, shall be used to
encourage,   promote,   develop  and  assist  high
technology   products    and    programs    within
Connecticut by infusion of financial assistance in
situations  when  such  financial  aid  would  not
otherwise   reasonably  be  available  from  other
sources as hereinafter stated: (1) For  the  State
Board  of Education: High technology equipment for
programs in the vocational-technical schools,  not
exceeding   two  million  dollars;  (2)  for  [the
Department of Economic and Community  Development]
CONNECTICUT    INNOVATIONS,    INCORPORATED:   (A)
Matching funds  for  cooperative  high  technology
research  and  development  projects and programs,
not exceeding nine million dollars;  (B)  [grants]
FINANCIAL  AID,  AS  DEFINED IN SUBDIVISION (4) OF
SECTION 32-34, to public  institutions  of  higher
education   for   high   technology  projects  and
programs,  not  exceeding  eleven   million   five
hundred thousand dollars.
    Sec.   11.  Section  10a-25g  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    Through   [the   Department  of  Economic  and
Community  Development]  CONNECTICUT  INNOVATIONS,
INCORPORATED   the   state   may   provide  [state
financial  assistance  in  the  form  of   grants]
FINANCIAL  AID,  AS  DEFINED IN SUBDIVISION (4) OF
SECTION  32-34,  for  the  development   of   high
technology  projects  and  programs  in accordance
with  the  provisions  of   subdivision   (2)   of
subsection  (b)  of section 10a-25b, AS AMENDED BY
THIS ACT. Such [grants] FUNDING shall be  made  in
accordance   with   [regulations  adopted  by  the
department in accordance with  the  provisions  of
chapter  54.  Said  department] WRITTEN PROCEDURES
ADOPTED BY CONNECTICUT  INNOVATIONS,  INCORPORATED
IN  ACCORDANCE  WITH  THE  PROVISIONS  OF  SECTION
1-121.   UNTIL   JUNE   30,   1996,    CONNECTICUT
INNOVATIONS,  INCORPORATED  may  use not more than
three per cent of the total amount of  any  annual
bond  allocation  for high technology projects and
programs DESCRIBED IN SECTION 10a-25b OR  10a-25g,
AS AMENDED BY THIS ACT, for the administration and
evaluation of such projects and programs.
    Sec.  12. Subsection (b) of section 10a-232 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b)  Notwithstanding  the  foregoing,  (1) the
constituent units of the state  system  of  higher
education may participate in one or more education
loan programs with the  authority  and  may  incur
indebtedness  pursuant  to authority loans and (2)
the authority may create and establish one or more
reserve  funds  to  be  known  as  special capital
reserve  funds  and  may  pay  into  such  special
capital  reserve funds (A) any moneys appropriated
and made available by the state for  the  purposes
of  such  funds, (B) any proceeds of sale of notes
or bonds, to the extent provided in the resolution
of the authority authorizing the issuance thereof,
and  (C)  any  other  moneys  which  may  be  made
available to the authority for the purpose of such
funds from any other source or sources. The moneys
held in or credited to any special capital reserve
fund established under  this  section,  except  as
hereinafter provided, shall be used solely for the
payment of the principal of bonds of the authority
secured  by  such capital reserve fund as the same
become due, the purchase  of  such  bonds  of  the
authority,  the  payment of interest on such bonds
of the authority or the payment of any  redemption
premium  required  to  be paid when such bonds are
redeemed  prior   to   maturity;   provided,   the
authority  shall have power to provide that moneys
in any such fund shall not be withdrawn  therefrom
at  any  time  in  such amount as would reduce the
amount of such funds  to  less  than  the  maximum
amount  of  principal and interest becoming due by
reason of maturity  or  a  required  sinking  fund
instalment  in any succeeding calendar year on the
bonds  of  the  authority  then  outstanding   and
secured  by  such special capital reserve fund, or
such lesser amount specified by the  authority  in
its  resolution  authorizing  the  issuance of any
such bonds, such amount being herein  referred  to
as  the "required minimum capital reserve", except
for the  purpose  of  paying  such  principal  of,
redemption  premium  and interest on such bonds of
the authority  secured  by  such  special  capital
reserve  becoming due and for the payment of which
other moneys of the authority are  not  available.
The  authority may provide that it shall not issue
bonds at any time if the required minimum  capital
reserve  on outstanding bonds secured by a special
capital reserve fund and  the  bonds  then  to  be
issued  and  secured  by a special capital reserve
fund  will  exceed  the  amount  of  such  special
capital  reserve  fund  at  the  time of issuance,
unless the authority, at the time of the  issuance
of  such  bonds,  shall  deposit  in  such special
capital reserve fund  from  the  proceeds  of  the
bonds  so  to  be  issued, or otherwise, an amount
which, together  with  the  amount  then  in  such
special  capital  reserve  fund,  will be not less
than the required  minimum  capital  reserve.  The
authority  may,  as  part  of  the contract of the
authority with the owners of such  bonds,  provide
that  on or before December first, annually, there
is  deemed  to  be  appropriated  from  the  state
General  Fund  such  sums,  if  any,  as  shall be
certified by the chairman of the authority to  the
Secretary  of  the Office of Policy and Management
and the Treasurer of the state,  as  necessary  to
restore  each such special capital reserve fund to
the amount equal to the required  minimum  capital
reserve  of  such  fund, and such amounts shall be
allotted  and  paid  to  the  authority.  For  the
purpose  of evaluation of any such special capital
reserve   fund,   obligations   acquired   as   an
investment  for  any  such fund shall be valued at
amortized cost. Nothing contained in this  section
shall preclude the authority from establishing and
creating  other  debt  service  reserve  funds  in
connection  with the issuance of bonds or notes of
the  authority.  Subject  to  any   agreement   or
agreements  with  owners  of outstanding notes and
bonds of the  authority,  any  amount  or  amounts
allotted  and  paid  to  the authority pursuant to
this section shall be repaid  to  the  state  from
moneys  of  the  authority  at  such  time as such
moneys are not  required  for  any  other  of  its
corporate  purposes  and  in  any  event  shall be
repaid to the state on the date one year after all
bonds  and  notes  of  the  authority  theretofore
issued on the date or dates such amount or amounts
are   allotted   and  paid  to  the  authority  or
thereafter issued, together with interest on  such
bonds  and  notes,  with  interest  on  any unpaid
instalments of interest and all costs and expenses
in  connection with any action or proceeding by or
on behalf of the owners thereof, are fully met and
discharged.  Notwithstanding  any other provisions
contained in this chapter, the aggregate amount of
bonds  outstanding  at  any  time  secured by such
special capital reserve  funds  authorized  to  be
created  and established by this section shall not
exceed one hundred [ten] SEVENTY  million  dollars
and  no  such bonds shall be issued to pay program
costs unless the authority is of the  opinion  and
determines  that  the  revenues to be derived from
the program shall be sufficient  (1)  to  pay  the
principal  of  and interest on the bonds issued to
finance the program, (2)  to  establish,  increase
and  maintain any reserves deemed by the authority
to be advisable  to  secure  the  payment  of  the
principal  of  and  interest on such bonds, (3) to
pay the cost  of  maintaining  and  servicing  the
program and keeping it properly insured and (4) to
pay such other costs of  the  program  as  may  be
required.
    Sec.  13. Subsection (c) of section 17b-803 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (c)    For    the    purposes   described   in
subdivisions (1), (2) and (3) of subsection (a) 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  [nine]  EIGHT  million one hundred
thousand dollars.
    Sec.   14.  Section  22-26hh  of  the  general
statutes, as amended by section 7  of  public  act
97-234,   is   repealed   and   the  following  is
substituted in lieu thereof:
    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
[seventy-eight]  EIGHTY  million two hundred fifty
thousand dollars, the proceeds of which  shall  be
used  by  the  Commissioner of Agriculture for the
purposes of this chapter provided  not  more  than
fifty   thousand  dollars,  PROVIDED  ONE  MILLION
DOLLARS OF SAID AUTHORIZATION SHALL  BE  EFFECTIVE
JULY  1,  1998,  shall be used for the purposes of
section 22-26dd and  not  more  than  two  million
dollars  shall be used for the purposes of section
22-26jj. 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,  AS  AMENDED
BY  THIS  ACT, 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
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
Treasurer shall pay such principal and interest as
the same become due.
    Sec.  15. Subsection (a) of section 22a-483 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (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
[five]   SIX   hundred  [seventy-six]  THIRTY-FIVE
million three  hundred  thirty  thousand  dollars,
provided  [twenty-three]  FOURTEEN  million  [five
hundred   eighty   thousand]   dollars   of   said
authorization  shall  be  effective July 1, [1996]
1998.
    Sec.  16. Subsection (d) of section 22a-483 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (d)  Notwithstanding  the  foregoing,  nothing
herein shall preclude the  State  Bond  Commission
from authorizing the issuance of revenue bonds, in
principal amounts not exceeding in  the  aggregate
[six]  EIGHT  hundred  [thirty-three]  SIXTY-SEVEN
million [three]  NINE  hundred  thousand  dollars,
provided  [forty-one]  EIGHTY-THREE  million THREE
HUNDRED THOUSAND  dollars  of  said  authorization
shall  be  effective July 1, [1996] 1998, that are
not  general   obligations   of   the   state   of
Connecticut  to which the full faith and credit of
the state  of  Connecticut  are  pledged  for  the
payment   of  the  principal  and  interest.  Such
revenue bonds shall mature at such time  or  times
not  exceeding  thirty years from their respective
dates as may be provided in  or  pursuant  to  the
resolution   or  resolutions  of  the  State  Bond
Commission authorizing  such  revenue  bonds.  The
revenue  bonds,  revenue  state  bond anticipation
notes and revenue state grant  anticipation  notes
authorized  to be issued under sections 22a-475 to
22a-483, inclusive, AS AMENDED BY THIS ACT,  shall
be  special obligations of the state and shall not
be payable from nor charged upon any  funds  other
than  the  revenues  or  other  receipts, funds or
moneys  pledged  therefor  as  provided  in   SAID
sections  22a-475 to 22a-483, inclusive, including
the repayment of municipal loan  obligations;  nor
shall  the  state  or  any  political  subdivision
thereof be subject to any liability thereon except
to  the  extent  of  such  pledged revenues or the
receipts, funds  or  moneys  pledged  therefor  as
provided  in  said  sections  22a-475  to 22a-483,
inclusive. The issuance of revenue bonds,  revenue
state  bond  anticipation  notes and revenue state
grant anticipation notes under the  provisions  of
SAID sections 22a-475 to 22a-483, inclusive, shall
not  directly  or   indirectly   or   contingently
obligate  the  state  or any political subdivision
thereof to levy or to pledge any form of  taxation
whatever therefor or to make any appropriation for
their payment. The revenue  bonds,  revenue  state
bond  anticipation  notes  and revenue state grant
anticipation notes shall not constitute a  charge,
lien  or encumbrance, legal or equitable, upon any
property  of  the  state  or  of   any   political
subdivision thereof, except the property mortgaged
or otherwise encumbered under the  provisions  and
for  the  purposes  of  SAID  sections  22a-475 to
22a-483,  inclusive.   The   substance   of   such
limitation  shall be plainly stated on the face of
each revenue bond, revenue state bond anticipation
note  and  revenue  state  grant anticipation note
issued  pursuant  to  SAID  sections  22a-475   to
22a-483,  inclusive,  shall  not be subject to any
statutory limitation on the  indebtedness  of  the
state  and  such revenue bonds, revenue state bond
anticipation  notes  and   revenue   state   grant
anticipation  notes,  when  issued,  shall  not be
included in computing the  aggregate  indebtedness
of  the  state  in respect to and to the extent of
any such limitation. As part of  the  contract  of
the  state  with the owners of such revenue bonds,
revenue state bond anticipation notes and  revenue
state   grant   anticipation  notes,  all  amounts
necessary for the punctual  payment  of  the  debt
service  requirements with respect to such revenue
bonds, revenue state bond anticipation  notes  and
revenue  state  grant  anticipation notes shall be
deemed appropriated, but  only  from  the  sources
pledged  pursuant  to  SAID  sections  22a-475  to
22a-483, inclusive. The proceeds of  such  revenue
bonds or notes may be deposited in the Clean Water
Fund for use in accordance with the permitted uses
of  such  fund. Any expense incurred in connection
with the carrying out of the  provisions  of  this
section,   including  the  costs  of  issuance  of
revenue bonds,  revenue  state  bond  anticipation
notes  and  revenue state grant anticipation notes
may be paid from the accrued interest and premiums
or  from  any  other  proceeds of the sale of such
revenue bonds,  revenue  state  bond  anticipation
notes  or  revenue  state grant anticipation notes
and in the same manner as other obligations of the
state.  All  provisions  of  subsections  (g),  AS
AMENDED BY THIS ACT, (k),  (l),  (s)  and  (u)  of
section 3-20 or the exercise of any right or power
granted thereby which are  not  inconsistent  with
the   provisions   of  SAID  sections  22a-475  to
22a-483, inclusive, are hereby adopted  and  shall
apply  to  all  revenue  bonds, state revenue bond
anticipation  notes  and   state   revenue   grant
anticipation  notes  authorized  by the State Bond
Commission pursuant to SAID  sections  22a-475  to
22a-483, inclusive. For the purposes of subsection
(o) of section 3-20, "bond act" shall be construed
to  include  SAID  sections  22a-475  to  22a-483,
inclusive.
    Sec.   17.   Section  32-41b  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    The  State Bond Commission shall have power in
accordance with the provisions of section 3-20, AS
AMENDED  BY THIS ACT, to authorize the issuance of
bonds of the state in one or more  series  and  in
principal  amounts  not exceeding in the aggregate
fifty-one million four hundred [fifty]  FORTY-FIVE
thousand   SIX   HUNDRED  dollars,  provided  five
million dollars of  said  authorization  shall  be
effective  July 1, 1996, to carry out the purposes
of this section as  follows:  (1)  Loans  for  the
development  and marketing of products in the high
technology field within the state,  not  exceeding
forty-four  million dollars, provided five million
dollars of said authorization shall  be  effective
July  1,  1996; (2) royalty financing for start-up
costs  and  product  development  costs  of   high
technology  products  and procedures in the state,
not exceeding seven million four  hundred  [fifty]
FORTY-FIVE thousand SIX HUNDRED dollars. Any loans
originated under subdivision (1) of  this  section
shall  bear interest at a rate to be determined in
accordance with subsection  (t)  of  SAID  section
3-20.  The  principal  and  interest of said bonds
shall be payable at such place or places as may be
determined  by  the State Treasurer and shall bear
such date or dates, mature at such time or  times,
bear interest at such rate or different or varying
rates, be 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 and be subject  to  such
terms  of  redemption  with or without premium as,
irrespective of the  provisions  of  said  section
3-20,  may be provided by the authorization of the
State  Bond  Commission  or  fixed  in  accordance
therewith. The proceeds of the sale of said bonds,
after deducting therefrom all expenses of issuance
and   sale,  shall  be  paid  to  the  Connecticut
Innovations,  Incorporated  Fund   created   under
section 32-41a. When the State Bond Commission has
acted to issue such bonds or  a  portion  thereof,
the  Treasurer  may,  pending  the  issue  of such
bonds, issue, in the name of the state,  temporary
notes  in anticipation of the money to be received
from the sale of such bonds. In issuing the  bonds
authorized  hereunder,  the  State Bond Commission
may  require  repayment  of  such  bonds  by   the
corporation  as  shall  seem  desirable consistent
with the purposes  of  this  section  and  section
32-41a.  Such  terms  for  repayment may include a
forgiveness  of  interest,  a   holiday   in   the
repayment of interest or principal or both.
    Sec.  18.  Subsections  (a) and (b) of section
32-235 of the general statutes  are  repealed  and
the following is substituted in lieu thereof:
    (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  three  hundred  [two]
TWENTY-FIVE  million [five] THREE hundred thousand
dollars,  provided  [twenty-five]   FIVE   million
dollars  of  said authorization shall be effective
on July 1, [1996] 1998.
    (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  the  purposes  of  sections 32-220 to 32-234,
inclusive, and for the  Connecticut  job  training
finance demonstration program pursuant to sections
32-23uu and 32-23vv provided three million dollars
shall  be  used  by said department solely for the
purposes of section 32-23uu and not more than five
million  two hundred fifty thousand dollars of the
amount stated in said subsection (a) may  be  used
by  said  department  for  the purposes of section
31-3u.
    Sec.  19.  Subsection (o) of section 13b-76 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (o)   The   State  Bond  Commission  may  make
representations and agreements for the benefit  of
the  holders  of  bonds or bond anticipation notes
issued pursuant  to  sections  13b-74  to  13b-77,
inclusive,  which  are necessary or appropriate to
ensure the exemption of interest on such bonds  or
bond  anticipation  notes  from taxation under the
Internal Revenue Code of 1986, as amended, or  any
subsequent  corresponding internal revenue code of
the United States,  including  agreements  to  pay
rebates  to  the  federal government of investment
earnings  derived  from  the  investment  of   the
proceeds  of  bonds or bond anticipation notes, or
may delegate to the  Treasurer  the  authority  to
make such representations and agreements on behalf
of the state. Any such agreement may include (1) a
covenant  to pay rebates to the federal government
of investment earnings derived from the investment
of  the  proceeds  of  bonds  or bond anticipation
notes, [;] (2) a covenant that the state will  not
limit  or  alter  its rebate obligations until its
obligations to the holders or owners of such bonds
or  bond  anticipation  notes  are finally met and
discharged, and (3) provisions  to  (A)  establish
trust  and other accounts which may be appropriate
to carry out such representations and  agreements,
(B)  retain fiscal agents as depositories for such
funds and  accounts  and  (C)  provide  that  such
fiscal agents may act as trustee of such funds and
accounts. Any such agreement entered into prior to
May  16, 1988, is hereby validated. THE STATE BOND
COMMISSION MAY ALSO AUTHORIZE,  BY  A  VOTE  OF  A
MAJORITY  OF THE MEMBERS OF SAID COMMISSION, BONDS
OR BOND  ANTICIPATION  NOTES  ISSUED  PURSUANT  TO
SECTIONS 13b-74 TO 13b-77, INCLUSIVE, IN SUCH FORM
AND MANNER THAT THE INTEREST  ON  SUCH  BONDS  AND
BOND  ANTICIPATION  NOTES  MAY BE INCLUDABLE UNDER
THE  INTERNAL  REVENUE  CODE  OF  1986,   OR   ANY
SUBSEQUENT  CORRESPONDING INTERNAL REVENUE CODE OF
THE UNITED STATES, AS FROM TIME TO  TIME  AMENDED,
IN  THE  GROSS  INCOME OF THE HOLDERS OR OWNERS OF
SUCH BONDS OR BOND  ANTICIPATION  NOTES  UPON  THE
FINDING  BY  SAID  COMMISSION THAT THE ISSUANCE OF
SUCH TAXABLE BONDS OR BOND ANTICIPATION  NOTES  IS
IN THE PUBLIC INTEREST.
    Sec.  20.  This act shall take effect from its
passage.

Approved July 31, 1997