Substitute Senate Bill No. 1271
Substitute Senate Bill No. 1271
PUBLIC ACT NO. 97-271
AN ACT CONCERNING THE GOVERNANCE OF TWEED-NEW
HAVEN AIRPORT.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. (NEW) This act shall be known and
may be cited as the "Tweed-New Haven Airport
Authority Act".
Sec. 2. (NEW) As used in this act, the
following terms shall have the following meanings:
(1) "Authority" means the Tweed-New Haven
Airport Authority as created under section 3 of
this act;
(2) "Procedure" means each statement, by the
authority, of general applicability, without
regard to its designation, that implements or
prescribes law or policy or describes the
organization or procedure of the authority. The
term includes the amendment or repeal of a prior
regulation, but does not include, unless otherwise
provided by any provision of the general statutes,
(A) statements concerning only the internal
management of the authority and not affecting
procedures available to the public and (B)
intra-authority memoranda;
(3) "Proposed procedure" means a proposal by
the authority under the provisions of section 5 of
this act for a new procedure or for a change in,
addition to or repeal of an existing procedure.
Sec. 3. (NEW) (a) There is created a body
politic and corporate to be known as the
"Tweed-New Haven Airport Authority". Said
authority shall be a public instrumentality and
political subdivision of this state and the
exercise by the authority of the powers conferred
by this act shall be deemed and held to be the
performance of an essential public and
governmental function. The Tweed-New Haven Airport
Authority shall not be construed to be a
department, institution or agency of the state.
(b) The authority shall be governed by a board
of directors consisting of fourteen members, each
member serving not more than two consecutive
four-year terms. The initial terms of the members
shall be staggered so that not more than four
members' terms shall expire at the same time. Nine
members shall be appointed by the mayor of New
Haven and two members shall be appointed by the
mayor of East Haven. Not less than six members of
the authority shall be residents of New Haven and
East Haven. Three members of the authority shall
be appointed by the South Central Regional Council
of Governments which appointees shall be residents
of any of the following towns or cities: Bethany,
Branford, Guilford, Hamden, Madison, Milford,
North Branford, North Haven, Orange, Wallingford,
West Haven or Woodbridge. The board of directors
shall elect a chairperson from among its members
and shall annually elect one of its members as
vice-chairperson and shall elect other members as
officers, and establish bylaws as necessary for
the operation of the authority. Members of the
board of directors shall receive no compensation
for the performance of their duties. No member of
the board shall have any financial interest in
Tweed-New Haven Airport or any of its tenants or
concessions.
(c) The powers of the authority shall be
vested in and exercised by the board. Eight
members of the board shall constitute a quorum and
the affirmative vote of a majority of the members
present at a meeting of the board shall be
sufficient for any action taken by the board. No
vacancy in the membership of the board shall
impair the right of a quorum to exercise all the
rights and perform all the duties of the board.
Any action taken by the board may be authorized by
resolution at any regular or special meeting and
shall take effect immediately unless otherwise
provided in the resolution. Notice of any meeting,
whether special or regular, shall be given orally,
not less than forty-eight hours prior to the
meeting. The board may delegate to three or more
of its members, or its officers, agents and
employees, such board powers and duties as it may
deem proper.
(d) The authority shall have perpetual
succession and shall adopt procedures for the
conduct of its affairs in accordance with section
5 of this act. Such succession shall continue as
long as the authority shall have obligations
outstanding and until the existence of the
authority is terminated by law at which time the
rights and properties of the authority shall pass
to and be vested in the state.
Sec. 4. (NEW) (a) The authority shall maintain
and improve Tweed-New Haven Airport as an
important economic development asset for the south
central Connecticut region which is comprised of
the towns and cities of Bethany, Branford, East
Haven, Guilford, Hamden, Madison, Milford, New
Haven, North Branford, North Haven, Orange,
Wallingford, West Haven and Woodbridge. The
authority shall have the following powers and
duties and may exercise such powers in its own
name: (1) To manage, maintain, supervise and
operate Tweed-New Haven Airport; (2) do all things
necessary to maintain working relationships with
the state, municipalities and persons, and conduct
the business of a regional airport, in accordance
with applicable statutes and regulations; (3) to
charge reasonable fees for the services it
performs and modify, reduce or increase such fees,
provided fees shall apply uniformly to all airport
users; (4) to enter into contracts, leases and
agreements for goods and equipment and for
services with airlines, concessions, counsel,
engineers, architects, private consultants and
advisors; (5) to contract for the construction,
reconstruction, enlargement or alteration of
airport projects with private persons and firms in
accordance with such terms and conditions as the
authority shall determine; (6) to make plans and
studies in conjunction with the Federal Aviation
Administration or other state or federal agencies
and to apply for and receive grant funds for
airport purposes; (7) to plan and enter into
contracts with municipalities, the state,
businesses and other entities to finance the
operations and debt of the airport, including
compensation to the host municipalities of New
Haven and East Haven for the use of the land
occupied by the airport; (8) to borrow funds for
airport purposes for such consideration and upon
such terms as the authority may determine to be
reasonable; (9) to employ a staff necessary to
carry out its functions and purposes and fix the
duties, compensation and benefits of such staff;
(10) to issue and sell bonds and to use the
proceeds of such bonds for capital improvements to
the airport; (11) to acquire property by purchase
or lease for airport purposes, subject to
applicable requirements of federal law and
regulation; (12) to prepare and issue budgets,
reports, procedures, audits and such other
materials as may be necessary and desirable to its
purposes; and (13) to exercise all other powers
granted to such an authority by law.
(b) The authority shall have full control of
the operation and management of the airport,
including land, buildings and easements by means
of a lease to the authority by the city of New
Haven and the town of East Haven.
Sec. 5. (NEW) (a) The board of directors of
the authority shall adopt written procedures, in
accordance with subsections (b) and (c) of this
section, for: (1) Adopting an annual budget and
plan of operations, which shall include a
requirement of board approval before the budget or
plan may take effect; (2) hiring, dismissing,
promoting and compensating employees of the
authority, which shall include an affirmative
action policy and a requirement of board approval
before a position may be created or a vacancy
filled; (3) acquiring real and personal property
and personal services, which shall include a
requirement of board approval for any nonbudgeted
expenditure in excess of five thousand dollars;
(4) contracting for financial, legal, bond
underwriting and other professional services which
shall include a requirement that the authority
solicit proposals at least once every three years
for each such service which it uses; (5) issuing
and retiring bonds, notes and other obligations of
the authority; (6) awarding loans, grants and
other financial assistance, which shall include
eligibility criteria, the application process and
the role played by the authority's staff and board
of directors and (7) the use of surplus funds.
(b) Before adopting a proposed procedure, the
authority shall give at least thirty days' notice
by publication in the Connecticut Law Journal of
its intended action. The notice shall include (1)
either a statement of the terms or of the
substance of the proposed procedure or a
description sufficiently detailed so as to apprise
persons likely to be affected of the issues and
subjects involved in the proposed procedure, (2) a
statement of the purposes for which the procedure
is proposed and (3) when, where and how interested
persons may present their views on the proposed
procedure. The authority may only adopt a proposed
procedure by a two-thirds vote of the full
membership of its board of directors.
(c) If the authority finds that an imminent
peril to the public health, safety or welfare
requires adoption of a proposed procedure upon
fewer than thirty days' notice, states in writing
its reasons for such finding and the authority's
board of directors, by a three-fourths vote of the
statutory membership, approves the finding in
writing, the authority may proceed without prior
notice or hearing or upon any abbreviated notice
and hearing that it finds practicable, to adopt an
emergency proposed procedure not later than ten
days, excluding Saturdays, Sundays and holidays,
prior to the proposed effective date of the
proposed procedure. An approved emergency
procedure may be effective for a period of not
more than one hundred twenty days and renewable
once for a period of not more than sixty days. If
the necessary steps to adopt a permanent
procedure, including publication of notice of
intent to adopt, are not completed prior to the
expiration date of an emergency procedure, the
emergency procedure shall cease to be effective on
that date.
Sec. 6. (NEW) (a) The board of directors of
the authority is authorized from time to time to
issue its bonds, notes and other obligations in
such principal amounts as in the opinion of the
board shall be necessary to provide sufficient
funds for carrying out the purposes set forth in
this act, including the payment, funding or
refunding of the principal of, or interest or
redemption premiums on, any bonds, notes and other
obligations issued by it whether the bonds, notes
or other obligations or interest to be funded or
refunded have or have not become due, the
establishment of reserves to secure such bonds,
notes and other obligations and all other
expenditures of the authority incident to and
necessary or convenient to carry out the purposes
set forth in this act.
(b) Except as otherwise expressly provided in
this act or by the board, every issue of bonds,
notes or other obligations, shall be a general
obligation of the authority payable out of any
moneys or revenues of the authority subject only
to any agreements with the holders of particular
bonds, notes or other obligations pledging any
particular moneys or revenues. Any such bonds,
notes or other obligations may be additionally
secured by any grant or contributions from any
department, agency or instrumentality of the
United States or person or a pledge of any moneys,
income or revenues of the authority from any
source whatsoever.
(c) Any provision of any law to the contrary
notwithstanding, any bonds, notes or other
obligations issued by the authority pursuant to
this act shall be fully negotiable within the
meaning and for all purposes of title 42a of the
general statutes. Any such bonds, notes or other
obligations shall be legal investments for all
trust companies, banks, investment companies,
savings banks, building and loan associations,
executors, administrators, guardians,
conservators, trustees and other fiduciaries and
pension, profit-sharing and retirement funds.
(d) Bonds, notes or other obligations of the
authority shall be authorized by resolution of the
board of directors of the authority and may be
issued in one or more series and shall bear such
date or dates, mature at such time or times, in
the case of any such note, or any renewal thereof,
not exceeding the term of years as the board shall
determine from the date of the original issue of
such notes, and, in the case of bonds, not
exceeding thirty years from the date thereof, bear
interest at such rate or rates, be in such
denomination or denominations, be in such form,
either coupon or registered, carry such conversion
or registration privileges, have such rank or
priority, be executed in such manner, be payable
from such sources in such medium of payment at
such place or places within or without this state,
and be subject to such terms of redemption, with
or without premium, as such resolution or
resolutions may provide.
(e) Bonds, notes or other obligations of the
authority may be sold at public or private sale at
such price or prices as the board shall determine.
(f) Bonds, notes or other obligations of the
authority may be refunded and renewed from time to
time as may be determined by resolution of the
board, provided any such refunding or renewal
shall be in conformity with any rights of the
holders thereof.
(g) Bonds, notes or other obligations of the
authority issued under the provisions of this act
shall not be deemed to constitute a debt or
liability of the state or of any political
subdivision thereof other than the authority or a
pledge of the faith and credit of the state or of
any such political subdivision other than the
authority, and shall not constitute bonds or notes
issued or guaranteed by the state within the
meaning of section 3-21 of the general statutes,
but shall be payable solely from the funds herein
provided therefor. All such bonds, notes or other
obligations shall contain on the face thereof a
statement to the effect that neither the state of
Connecticut nor any political subdivision thereof
other than the authority shall be obligated to pay
the same or the interest thereof except from
revenues or other funds of the authority and that
neither the faith and credit nor the taxing power
of the state of Connecticut or of any political
subdivision thereof other than the authority is
pledged to the payment of the principal of or the
interest on such bonds, notes or other
obligations.
(h) Any resolution authorizing the issuance of
bonds, notes or other obligations may contain
provisions, except as expressly limited in this
act and except as otherwise limited by existing
agreements with the holders of bonds, notes or
other obligations, that shall be a part of the
contract with the holders thereof, as to the
following: (1) The pledging of all or any part of
the moneys received by the authority to secure the
payment of the principal of and interest on any
bonds, notes or other obligations or of any issue
thereof; (2) the pledging of all or part of the
assets of the authority to secure the payment of
the principal and interest on any bonds, notes or
other obligations or of any issue thereof; (3) the
establishment of reserves or sinking funds, the
making of charges and fees to provide for the
same, and the regulation and disposition thereof;
(4) limitations on the purpose to which the
proceeds of sale of bonds, notes or other
obligations may be applied and pledging such
proceeds to secure the payment of the bonds, notes
or other obligations, or of any issues thereof;
(5) limitations on the issuance of additional
bonds, notes or other obligations; the terms upon
which additional bonds, bond anticipation notes or
other obligations may be issued and secured; the
refunding or purchase of outstanding bonds, notes
or other obligations of the authority; (6) the
procedure, if any, by which the terms of any
contract with the holders of any bonds, notes or
other obligations of the authority may be amended
or abrogated, the amount of bonds, notes or other
obligations the holders of which must consent
thereto, and the manner in which such consent may
be given; (7) limitations on the amount of moneys
to be expended by the authority for operating,
administrative or other expenses of the authority;
(8) the vesting in a trustee or trustees of such
property, rights, powers and duties in trust as
the authority may determine, which may include any
or all of the rights, powers and duties of any
trustee appointed by the holders of any bonds,
notes or other obligations and limiting or
abrogating the right of the holders of any bonds,
notes or other obligations of the authority to
appoint a trustee under this chapter or limiting
the rights, powers and duties of such trustee; (9)
provision for a trust agreement by and between the
authority and a corporate trustee which may be any
trust company or bank having the powers of a trust
company within or without the state, which
agreement may provide for the pledging or
assigning of any assets or income from assets to
which or in which the authority has any rights or
interest, and may further provide for such other
rights and remedies exercisable by the trustee as
may be proper for the protection of the holders of
any bonds, notes or other obligations of the
authority and not otherwise in violation of law.
Such agreement may provide for the restriction of
the rights of any individual holder of bonds,
notes or other obligations of the authority. All
expenses incurred in carrying out the provisions
of such trust agreement may be treated as a part
of the cost of operation of the authority. The
trust agreement may contain any further provisions
which are reasonable to delineate further the
respective rights, duties, safeguards,
responsibilities and liabilities of the authority;
individual and collective holders of bonds, notes
and other obligations of the authority and the
trustees; (10) covenants to do or refrain from
doing such acts and things as may be necessary or
convenient or desirable in order to better secure
any bonds, notes or other obligations of the
authority, or which, in the discretion of the
authority, will tend to make any bonds, notes or
other obligations to be issued more marketable
notwithstanding that such covenants, acts or
things may not be enumerated herein; (11) any
other matters of like or different character,
which in any way affect the security or protection
of the bonds, notes or other obligations.
(i) Any pledge made by the authority of
income, revenues, or other property shall be valid
and binding from the time the pledge is made, and
shall constitute a pledge within the meaning and
for all purposes of title 42a of the general
statutes. The income, revenue, or other property
so pledged and thereafter received by the
authority shall immediately be subject to the lien
of such pledge without any physical delivery
thereof or further act, and the lien of any such
pledge shall be valid and binding as against all
parties having claims of any kind in tort,
contract or otherwise against the authority,
irrespective of whether such parties have notice
thereof.
(j) The board of directors of the authority is
authorized and empowered to obtain from any
department, agency or instrumentality of the
United States any insurance or guarantee as to, or
of or for the payment or repayment of, interest or
principal, or both, or any part thereof, on any
bonds, notes or other obligations issued by the
authority pursuant to the provisions of this act
and, notwithstanding any other provisions of this
act, to enter into any agreement, contract or any
other instrument whatsoever with respect to any
such insurance or guarantee except to the extent
that such action would in any way impair or
interfere with the authority's ability to perform
and fulfill the terms of any agreement made with
the holders of the bonds, bond anticipation notes
or other obligations of the authority.
(k) Neither the members of the board of
directors of the authority nor any person
executing bonds, notes or other obligations of the
authority issued pursuant to this act shall be
liable personally on such bonds, notes or other
obligations or be subject to any personal
liability or accountability by reason of the
issuance thereof, nor shall any director or
employee of the authority be personally liable for
damage or injury, not wanton, reckless, wilful or
malicious, caused in the performance of his duties
and within the scope of his employment or
appointment as such director, officer or employee.
The authority shall protect, save harmless and
indemnify its directors, officers or employees
from financial loss and expense, including legal
fees and costs, if any, arising out of any claim,
demand, suit or judgment by reason of alleged
negligence or alleged deprivation of any person's
civil rights or any other act or omission
resulting in damage or injury, if the director,
officer or employee is found to have been acting
in the discharge of his duties or within the scope
of his employment and such act or omission is
found not to have been wanton, reckless, wilful or
malicious.
(l) The board of directors of the authority
shall have power to purchase bonds, notes or other
obligations of the authority out of any funds
available therefor. The authority may hold, cancel
or resell such bonds, notes or other obligations
subject to and in accordance with agreements with
holders of its bonds, notes and other obligations.
(m) All moneys received pursuant to the
authority of this act, whether as proceeds from
the sale of bonds or as revenues, shall be deemed
to be trust funds to be held and applied solely as
provided in this act. Any officer with whom, or
any bank or trust company with which, such moneys
shall be deposited shall act as trustee of such
moneys and shall hold and apply the same for the
purposes of this act, subject to such regulations
as this act and the resolution authorizing the
bonds of any issue or the trust agreement securing
such bonds may provide.
(n) Any holder of bonds, notes or other
obligations issued under the provisions of this
act, and the trustee or trustees under any trust
agreement, except to the extent the rights herein
given may be restricted by any resolution
authorizing the issuance of, or any such trust
agreement securing, such bonds, may, either at law
or in equity, by suit, action, mandamus or other
proceedings, protect and enforce any and all
rights under the laws of the state or granted
hereunder or under such resolution or trust
agreement, and may enforce and compel the
performance of all duties required by this act or
by such resolution or trust agreement to be
performed by the authority or by any officer,
employee or agent thereof, including the fixing,
charging and collecting of the rates, rents, fees
and charges herein authorized and required by the
provisions of such resolution or trust agreement
to be fixed, established and collected.
(o) The authority may make representations and
agreements for the benefit of the holders of any
bonds, notes or other obligations of the state
which are necessary or appropriate to ensure the
exclusion from gross income for federal income tax
purposes of interest on bonds, notes or other
obligations of the state 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, including
agreement to pay rebates to the federal government
of investment earnings derived from the investment
of the proceeds of the bonds, notes or other
obligations of the authority. 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 the bonds,
notes or other obligations of the authority, (2) a
covenant that the authority will not limit or
alter its rebate obligations until its obligations
to the holders or owners of such bonds, notes or
other obligations 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 fund
and accounts and (C) provide that such fiscal
agents may act as trustee of such funds and
accounts.
Sec. 7. (NEW) The exercise of the powers
granted by this act constitute the performance of
an essential governmental function and the
authority shall not be required to pay any taxes
or assessments upon or in respect of the project,
levied by any municipality or political
subdivision or special district having taxing
powers of the state and the project and the
principal and interest of any bonds and notes
issued under the provisions of this chapter, their
transfer and the income therefrom, including
revenues derived from the sale thereof, shall at
all times be free from taxation of every kind by
the state of Connecticut or under its authority,
except for estate or succession taxes.
Sec. 8. (NEW) The state of Connecticut does
hereby pledge to and agree with the holders of any
bonds or notes issued under this act or with those
parties who may enter into contracts with the
authority, pursuant to this act, that the state
shall not limit or alter the rights hereby vested
in the authority until such obligations, together
with the interest thereon, are fully met and
discharged, and such contracts are fully performed
on the part of the authority, provided nothing
contained herein shall preclude such limitation or
alteration if and when adequate provision shall be
made by law for the protection of the holders of
such bonds, notes and other obligations of the
authority or those entering into contracts with
the authority. The authority is authorized to
include this pledge and undertaking for the state
in such bonds, notes and other obligations or
contracts.
Sec. 9. (a) Within the first ninety days of
each fiscal year of the authority, the board of
directors of the authority shall submit a report
to the Governor, the Auditors of Public Accounts
and the joint standing committee of the General
Assembly having cognizance of matters relating to
finance, revenue and bonding. Such report shall
include, but not be limited to, the following: (1)
A list of all bonds issued during the preceding
fiscal year, including, for each such issue, the
financial advisor and underwriters, whether the
issue was competitive, negotiated or privately
placed, and the issue's face value and net
proceeds; (2) a description of the project, its
location, and the amount of funds, if any,
provided by the authority with respect to the
construction of the project; (3) a list of all
outside individuals and firms receiving in excess
of five thousand dollars in the form of loans,
grants or payments for services; (4) a
comprehensive annual financial report prepared in
accordance with generally accepted accounting
principles for governmental enterprises; (5) the
cumulative value of all bonds issued, the value of
outstanding bonds, and the amount of the state's
contingent liability; (6) the affirmative action
policy statement, a description of the composition
of the work force of the authority by race, sex
and occupation and a description of the
affirmative action efforts of the authority; and
(7) a description of planned activities for the
current fiscal year.
(b) The board of directors of the authority
shall annually contract with a person, firm or
corporation for a compliance audit of the
authority's activities during the preceding
authority fiscal year. The audit shall determine
whether the authority has complied with its
regulations concerning affirmative action,
personnel practices, the purchase of goods and
services and the use of surplus funds. The board
shall submit the audit report to the Governor, the
Auditors of Public Accounts and the joint standing
committee of the General Assembly having
cognizance of matters relating to finance, revenue
and bonding.
(c) The board of directors of the authority
shall annually contract with a firm of certified
public accountants to undertake an independent
financial audit of the authority in accordance
with generally accepted auditing standards. The
board shall submit the audit report to the
Governor, the Auditors of Public Accounts and the
joint standing committee of the General Assembly
having cognizance of matters relating to finance,
revenue and bonding. The books and accounts of the
authority shall be subject to annual audits by the
state Auditors of Public Accounts.
Sec. 10. This act shall take effect July 1,
1997.
Approved June 26, 1997