House Bill No. 5432
               House Bill No. 5432

               PUBLIC ACT NO. 98-92


AN  ACT  CONCERNING  THE  ENVIRONMENTAL ASSISTANCE
REVOLVING LOAN FUND.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  32-23qq  of  the general statutes, as
amended by section 5  of  public  act  97-124,  is
repealed  and the following is substituted in lieu
thereof:
    (a)   An  Environmental  Assistance  Revolving
Loan Fund is created. The  state,  acting  through
the Connecticut Development Authority, may provide
loans, lines  of  credit  or  loan  guarantees  to
businesses   from   the  Environmental  Assistance
Revolving Loan Fund for the purpose  of  pollution
prevention   activities,  as  defined  in  section
32-23rr, or for purchases and the costs associated
with  compliance with the Clean Air Act Amendments
of 1990 (42 USC 7401, et seq.), as amended. Within
the  Environmental Assistance Revolving Loan Fund,
a loan subfund is created solely to provide  loans
and  lines  of  credit as provided in this section
and a  guarantee  subfund  is  created  solely  to
provide   loan  guarantees  as  provided  in  this
section.  No   financial   assistance,   nor   any
commitment  to provide financial assistance, shall
be provided by or entered into  by  the  authority
pursuant   to   sections   32-23pp   to   32-23ss,
inclusive, which would cause the aggregate  amount
of  all  such financial assistance and commitments
then outstanding to exceed the sum of the  amounts
in  the  applicable  subfund  of the Environmental
Assistance Revolving Loan Fund plus the amount  of
any  unpaid  grants  authorized  to be made by the
Department of Economic and  Community  Development
to  the  authority  for  deposit in the applicable
subfund of the Environmental Assistance  Revolving
Loan   Fund,  provided  the  amount  of  financial
assistance in the form of any guarantee  shall  be
measured  by  the portion of unpaid loan principal
which   is   guaranteed    by    the    authority.
Notwithstanding the above, the aggregate amount of
financial assistance in the form of guarantees and
commitments  with  respect  thereto, calculated as
above, may be up to four  times  the  sum  of  the
amounts  available in the guarantee subfund of the
Environmental Assistance Revolving Loan Fund  plus
the  amount  of  any  unpaid  grants  which remain
available and are specifically designated  by  the
department  for  purposes of such subfund pursuant
to the bond authorization in section 32-23ss.  For
the purposes of this section, "business" means any
business which (1) has gross revenues of less than
twenty-five  million  dollars  in  its fiscal year
ending prior  to  the  application  for  any  such
loans,  lines  of credit or loan guarantees or (2)
has fewer than one hundred  fifty  employees.  The
Connecticut Development Authority shall charge and
collect interest on each  such  loan  or  line  of
credit  at  a  rate to be determined in accordance
with procedures adopted pursuant to subsection (b)
of  this  section.  Payments made by businesses on
all loans, lines of  credit  and  loan  guarantees
shall  be paid to the authority for deposit in the
Environmental Assistance Revolving Loan Fund.
    (b)   The  Connecticut  Development  Authority
shall adopt written procedures, in accordance with
the  provisions of section 1-121, to carry out the
provisions of this section. Such procedures  shall
establish   requirements  for  loans,  guarantees,
interest, repayment terms, security  requirements,
default  and  remedies  and  such  other terms and
conditions   as   the   authority    shall    deem
appropriate.
    (c)  Each such loan, guarantee or extension of
credit shall  be  authorized  by  the  Connecticut
Development  Authority  or,  if  the  authority so
determines,  by  a  committee  of  the   authority
consisting  of  the  chairman and either one other
member of the authority or its executive director,
as   specified   in   the   determination  of  the
authority. Any administrative expenses incurred in
carrying  out  the  provisions of this section, to
the extent not  paid  by  the  authority  or  from
moneys  appropriated  to  the  authority, shall be
paid from the Environmental  Assistance  Revolving
Loan   Fund.   Payments   from  the  Environmental
Assistance Revolving Loan Fund to businesses or to
pay  such administrative expenses shall be made by
the authority upon certification by  the  chairman
of  the  authority  that the payment is authorized
under the provisions of this  section,  under  the
applicable rules and regulations of the authority,
and, if made to a business, under  the  terms  and
conditions  established  by  the  authority or the
duly appointed committee  thereof  in  authorizing
the making of the loan or the extension of credit.
    [(d)   The  authority  shall  not  approve  an
application  for  a  loan,  line  of   credit   or
guarantee  unless  the Connecticut Hazardous Waste
Management Service  determines  the  applicant  is
eligible   for   such  loan,  line  of  credit  or
guarantee provided this subsection shall not apply
to  loans  for  compliance  with the Clean Air Act
Amendments of 1990 (42  USC  7401,  et  seq.),  as
amended.]

Approved May 22, 1998