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