Substitute House Bill No. 5034
          Substitute House Bill No. 5034

              PUBLIC ACT NO. 98-157


AN  ACT  CONCERNING  OPEN SPACE AND WATERSHED LAND
ACQUISITION.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  1.  Section   23-78  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Any moneys authorized  for  the program may be
expended with matching  funds  from:  (1)  Private
contributions of cash  or securities, in an amount
not  less than  [twenty]  FIFTEEN  per  cent;  (2)
moneys from a federal matching program, subject to
the limitations of  applicable  federal  and state
laws, in an  amount  authorized  by  said  federal
program; (3) contributions  of  real  property, or
interest  therein, that  serves  recreational  and
natural heritage land  acquisition  needs  of  the
department as determined  by the commissioner; (4)
municipal contributions of  cash or securities, in
an amount not less than [twenty] FIFTEEN per cent,
PROVIDED   CONTRIBUTIONS   FROM    MUNICIPALITIES,
NONPROFIT ENTITIES AND  WATER  COMPANIES  SHALL BE
DERIVED  FROM A  SOURCE  OTHER  THAN  STATE  GRANT
MONEYS OBTAINED FROM  THE OPEN SPACE AND WATERSHED
LAND  ACQUISITION  GRANT   PROGRAM;   or  (5)  any
combination  thereof.  Contributions  of  land  or
interest in land  shall be valued, for purposes of
this section, in  the  amount  of  their appraised
value.
    Sec. 2. Subsection  (a)  of  section 12-498 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) The tax  imposed  by  section 12-494 shall
not  apply to:  (1)  Deeds  which  this  state  is
prohibited from taxing  under  the constitution or
laws of the  United States; (2) deeds which secure
a debt or  other  obligation;  (3)  deeds to which
this state or any of its political subdivisions or
its or their  respective  agencies is a party; (4)
tax deeds; (5)  deeds of release of property which
is security for  a  debt  or other obligation; (6)
deeds of partition;  (7)  deeds  made  pursuant to
mergers  of corporations;  (8)  deeds  made  by  a
subsidiary corporation to  its  parent corporation
for no consideration  other  than the cancellation
or  surrender  of   the  subsidiary's  stock;  (9)
conveyance  of  an   interest   in  real  property
pursuant to a  decree  of the Superior Court under
section 46b-81, 49-24 or 52-495; (10) certificates
of devise or  distribution;  (11) transfers for no
consideration between parents  and  children; (12)
an  assignment,  with  no  consideration,  of  any
interests,   present   or    future,   vested   or
contingent, in real  property  which  endure for a
period of time and the termination of which is not
fixed  or ascertained  by  a  specific  number  of
years; (13) an  assignment, with no consideration,
of the unexpired  portion  of a term or estate for
life or of  a  term  or  estate  for  years;  (14)
transfers made by  a  corporation  affiliated with
the corporation to  which  such  transfer is made,
provided both of such corporations are exempt from
taxation pursuant to paragraph (2), (3) or (25) of
Section 501(c) of  the  Internal  Revenue  Code of
1986,  or any  subsequent  corresponding  internal
revenue code of the United States, as from time to
time   amended,   and    provided   further   such
corporations are affiliated  in  such  manner that
(A) either corporation in such transaction owns or
controls either directly  or  indirectly  not less
than one hundred  per cent of the capital stock of
the other corporation or (B) either corporation in
such transaction is  owned  or  controlled  either
directly or indirectly  by  interests which own or
control either directly  or  indirectly  not  less
than one hundred  per cent of the capital stock of
the other corporation;  (15)  transfers  made by a
corporation which is exempt from taxation pursuant
to paragraph (3) of Section 501(c) of the Internal
Revenue   Code  of   1986,   or   any   subsequent
corresponding internal revenue  code of the United
States, as from  time  to  time  amended,  to  any
corporation which is exempt from taxation pursuant
to said paragraph (3) of said Section 501(c); (16)
transfers made on  or  after  July 1, 1992, to any
nonprofit organization which  is organized for the
purpose of holding  undeveloped  land in trust for
conservation   or   recreation    purposes;   (17)
transfers between spouses; [and] (18) transfers of
property for the stadium facility site, as defined
in section 32-381  or  the practice facility site,
as  defined  in  section  32-381;  AND  (19)  LAND
TRANSFERS MADE ON  OR  AFTER  JULY  1,  1998, TO A
WATER  COMPANY,  AS   DEFINED   IN  SECTION  16-1,
PROVIDED THE LAND  IS  CLASSIFIED  AS  CLASS  I OR
CLASS II LAND, AS DEFINED IN SECTION 25-37c, AFTER
SUCH TRANSFER.
    Sec. 3. Section 7-131d of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) THERE IS  ESTABLISHED  THE  PROTECTED OPEN
SPACE  AND  WATERSHED   LAND   ACQUISITION   GRANT
PROGRAM.  THE  PROGRAM  SHALL  PROVIDE  GRANTS  TO
MUNICIPALITIES  AND  NONPROFIT  LAND  CONSERVATION
ORGANIZATIONS  TO  ACQUIRE   LAND   OR   PERMANENT
INTERESTS IN LAND  FOR  OPEN  SPACE  AND WATERSHED
PROTECTION AND TO  WATER  COMPANIES, AS DEFINED IN
SECTION 25-32a, TO  ACQUIRE AND PROTECT LAND WHICH
IS ELIGIBLE TO  BE  CLASSIFIED AS CLASS I OR CLASS
II  LAND, AS  DEFINED  IN  SECTION  25-37c,  AFTER
ACQUISITION.  ALL  LANDS   OR  INTERESTS  IN  LAND
ACQUIRED UNDER THIS  PROGRAM SHALL BE PRESERVED IN
PERPETUITY PREDOMINANTLY IN  THEIR  NATURAL SCENIC
AND OPEN CONDITION  FOR  THE PROTECTION OF NATURAL
RESOURCES WHILE ALLOWING FOR RECREATION CONSISTENT
WITH SUCH PROTECTION  AND,  FOR  LANDS ACQUIRED BY
WATER  COMPANIES, ALLOWING  FOR  THE  IMPROVEMENTS
NECESSARY  FOR  THE  PROTECTION  OR  PROVISION  OF
POTABLE WATER.
    (b) GRANTS MAY  BE  MADE  UNDER THE PROGRAM TO
MATCH FUNDS FOR  THE PURCHASE OF LAND OR PERMANENT
INTERESTS IN LAND  WHICH PURCHASE MEETS ONE OF THE
FOLLOWING CRITERIA: (1)  PROTECTS  LAND IDENTIFIED
AS  BEING  ESPECIALLY   VALUABLE  FOR  RECREATION,
FORESTRY,  FISHING, CONSERVATION  OF  WILDLIFE  OR
NATURAL  RESOURCES;  (2)   PROTECTS   LAND   WHICH
INCLUDES OR CONTRIBUTES TO A PRIME NATURAL FEATURE
OF  THE  STATE'S  LANDSCAPE,  INCLUDING,  BUT  NOT
LIMITED TO, A  SHORELINE, A RIVER, ITS TRIBUTARIES
AND WATERSHED, AN  AQUIFER, MOUNTAINOUS TERRITORY,
RIDGELINES,  AN  INLAND   OR  COASTAL  WETLAND,  A
SIGNIFICANT LITTORAL OR  ESTUARINE OR AQUATIC SITE
OR  OTHER  IMPORTANT   GEOLOGICAL   FEATURE;   (3)
PROTECTS  HABITAT  FOR   NATIVE  PLANT  OR  ANIMAL
SPECIES LISTED AS  THREATENED  OR ENDANGERED OR OF
SPECIAL CONCERN, AS DEFINED IN SECTION 26-304; (4)
PROTECTS  A  RELATIVELY   UNDISTURBED  OUTSTANDING
EXAMPLE OF A  NATIVE ECOLOGICAL COMMUNITY WHICH IS
NOW UNCOMMON; (5)  ENHANCES  AND  CONSERVES  WATER
QUALITY OF THE  STATE'S  LAKES, RIVERS AND COASTAL
WATER; (6) PRESERVES  LOCAL AGRICULTURAL HERITAGE;
OR (7) IN  THE  CASE OF GRANTS TO WATER COMPANIES,
PROTECTS LAND WHICH  IS  ELIGIBLE TO BE CLASSIFIED
AS  CLASS  I   LAND   OR   CLASS   II  LAND  AFTER
ACQUISITION. THE COMMISSIONER  MAY  MAKE  A  GRANT
UNDER THE PROGRAM  TO A DISTRESSED MUNICIPALITY OR
A TARGETED INVESTMENT  COMMUNITY,  AS  DEFINED  IN
SECTION 32-9p, FOR  RESTORATION  OR  PROTECTION OF
NATURAL FEATURES OR HABITATS ON OPEN SPACE ALREADY
OWNED  BY THE  MUNICIPALITY,  INCLUDING,  BUT  NOT
LIMITED TO, WETLAND  OR  WILDLIFE OR PLANT HABITAT
RESTORATION OR RESTORATION  OF  OTHER  SITES  TO A
MORE   NATURAL  CONDITION,   OR   REPLACEMENT   OF
VEGETATION, PROVIDED THE TOTAL AMOUNT OF GRANTS TO
SUCH  MUNICIPALITIES FOR  SUCH  PURPOSES  MAY  NOT
EXCEED TWENTY PER  CENT  OF  THE  TOTAL  AMOUNT OF
GRANTS MADE IN ANY FISCAL YEAR.
    (c) NO GRANT  MAY  BE  MADE  UNDER THE PROGRAM
FOR: (1) LAND  TO  BE USED FOR COMMERCIAL PURPOSES
OR FOR RECREATIONAL  PURPOSES  REQUIRING INTENSIVE
DEVELOPMENT, INCLUDING, BUT  NOT  LIMITED TO, GOLF
COURSES,    DRIVING   RANGES,    TENNIS    COURTS,
BALLFIELDS, SWIMMING POOLS  AND  USES BY MOTORIZED
VEHICLES,   PROVIDED  TRAILS   OR   PATHWAYS   FOR
PEDESTRIANS OR NONMOTORIZED  VEHICLES SHALL NOT BE
CONSIDERED INTENSIVE DEVELOPMENT;  (2)  LAND  WITH
ENVIRONMENTAL  CONTAMINATION  OVER  A  SIGNIFICANT
PORTION OF THE  PROPERTY  PROVIDED GRANTS FOR LAND
REQUIRING     REMEDIATION     OF     ENVIRONMENTAL
CONTAMINATION MAY BE  MADE  IF REMEDIATION WILL BE
COMPLETED BEFORE ACQUISITION  OF  THE  LAND OR ANY
INTEREST  IN  THE   LAND   AND   AN  ENVIRONMENTAL
ASSESSMENT  APPROVED  BY   THE   COMMISSIONER   OF
ENVIRONMENTAL PROTECTION HAS BEEN COMPLETED AND NO
ENVIRONMENTAL USE RESTRICTION APPLIES TO THE LAND;
(3) LAND WHICH  HAS  ALREADY  BEEN  COMMITTED  FOR
PUBLIC USE; (4)  DEVELOPMENT COSTS, INCLUDING, BUT
NOT LIMITED TO, CONSTRUCTION OF BALLFIELDS, TENNIS
COURTS, PARKING LOTS  OR  ROADWAYS; (5) LAND TO BE
ACQUIRED BY EMINENT  DOMAIN;  OR (6) REIMBURSEMENT
OF  IN-KIND  SERVICES   OR   INCIDENTAL   EXPENSES
ASSOCIATED  WITH THE  ACQUISITION  OF  LAND.  THIS
SUBSECTION SHALL NOT  PROHIBIT THE CONTINUATION OF
AGRICULTURAL ACTIVITY, THE  ACTIVITIES  OF A WATER
COMPANY FOR PUBLIC  WATER  SUPPLY  PURPOSES OR THE
SELLING OF TIMBER  INCIDENTAL TO MANAGEMENT OF THE
LAND  WHICH  MANAGEMENT   IS  IN  ACCORDANCE  WITH
APPROVED FOREST MANAGEMENT  PRACTICES PROVIDED ANY
PROCEEDS OF SUCH  TIMBER  SALES  SHALL BE USED FOR
MANAGEMENT  OF THE  LAND.  IN  THE  CASE  OF  LAND
ACQUIRED UNDER THIS SECTION WHICH IS DESIGNATED AS
A STATE PARK,  ANY  FEES  CHARGED BY THE STATE FOR
USE OF SUCH  LAND  SHALL  BE  USED BY THE STATE IN
ACCORDANCE WITH THE  PROVISIONS  OF  TITLE  23  OR
SECTION 22a-27h.
    (d) Any municipality  or  group  of contiguous
municipalities may apply  to  the  Commissioner of
Environmental Protection for  a  grant-in-aid of a
program established to  preserve  or  restrict  to
conservation or recreation  purposes  the  use  of
open space land.  Such grant shall be used for the
acquisition of land,  or  easements,  interests or
rights therein, or  for  the  development  of such
land, or easements,  interests  or rights therein,
for purposes set  forth in THIS section, [7-131c,]
or both, in  accordance with a plan of development
adopted by the  municipal  planning  commission of
the municipality within which the land is located.
Any application for  a  grant-in-aid  relating  to
land located beyond  the territorial limits of the
applying municipality shall be subject to approval
of the legislative body of the municipality within
whose territorial limits  the  land  is located. A
municipality  applying  for  aid  under  [sections
7-131c to 7-131k,  inclusive]  THIS  SECTION,  may
designate its conservation commission as its agent
to make such application.
    (e)  AT  CLOSING,   A  PERMANENT  CONSERVATION
EASEMENT, AS DEFINED  IN  SECTION  47-42, SHALL BE
EXECUTED FOR ANY  PROPERTY  PURCHASED  WITH  GRANT
FUNDS, WHICH CONSERVATION  EASEMENT  SHALL PROVIDE
THAT   THE   PROPERTY    SHALL    REMAIN   FOREVER
PREDOMINANTLY IN ITS  NATURAL  AND  OPEN CONDITION
FOR THE SPECIFIC CONSERVATION, OPEN SPACE OR WATER
SUPPLY PURPOSES FOR WHICH IT WAS ACQUIRED PROVIDED
ANY IMPROVEMENTS OR  CHANGES TO THE PROPERTY SHALL
BE SUPPORTIVE OF  SUCH  CONDITION OR PURPOSES. THE
PERMANENT CONSERVATION EASEMENT  SHALL BE IN FAVOR
OF THE STATE  ACTING  THROUGH  THE COMMISSIONER OF
ENVIRONMENTAL PROTECTION, OR  HIS  DESIGNEE, WHICH
MAY  BE A  MUNICIPALITY  OR  A  LAND  CONSERVATION
ORGANIZATION. IN THE  CASE  OF  LAND  ACQUIRED FOR
WATER SUPPLY PROTECTION,  A WATER COMPANY MAY HOLD
AN EASEMENT IN  CONJUNCTION  WITH  THE  STATE OR A
NONPROFIT ENTITY TO PROTECT THE WATER SUPPLY. SUCH
PERMANENT CONSERVATION EASEMENT SHALL ALSO INCLUDE
A REQUIREMENT THAT  THE PROPERTY BE MADE AVAILABLE
TO THE GENERAL PUBLIC FOR APPROPRIATE RECREATIONAL
PURPOSES, THE MAINTENANCE  OF  WHICH  RECREATIONAL
ACCESS SHALL BE  THE RESPONSIBILITY OF THE GRANTEE
PROVIDED SUCH ACCESS  SHALL  NOT  BE  REQUIRED FOR
LAND WHICH WILL  BE CLASSIFIED AS CLASS I OR CLASS
II LAND BY  A  WATER  COMPANY  IF  SUCH  ACCESS IS
INCONSISTENT WITH THE  PROVISION  OF PURE DRINKING
WATER TO THE PUBLIC. AN EXCEPTION TO THE PROVISION
OF PUBLIC RECREATIONAL  ACCESS  MAY BE MADE AT THE
DISCRETION OF THE  COMMISSIONER  OF  ENVIRONMENTAL
PROTECTION WHEN PROVISION  FOR PUBLIC ACCESS WOULD
BE UNREASONABLY DETRIMENTAL  TO  THE  WILDLIFE  OR
PLANT HABITAT OR  OTHER  NATURAL  FEATURES  OF THE
PROPERTY OR, FOR  LAND  WHERE  DEVELOPMENT  RIGHTS
HAVE  BEEN  PURCHASED,   WOULD  BE  DISRUPTIVE  OF
AGRICULTURAL ACTIVITY OCCURRING  ON  THE LAND. ANY
INSTRUMENT CONVEYING AN INTEREST IN LAND LESS THAN
FEE WHICH INTEREST IS PURCHASED UNDER THIS SECTION
SHALL PROVIDE FOR  THE  PERMANENT  PRESERVATION OF
THE LAND AND  PUBLIC  ACCESS  CONSISTENT  WITH THE
LAND'S USE OR PROTECTION AND WITH ANY RESTRICTIONS
PRESCRIBED BY THE  DEPARTMENT  OF PUBLIC HEALTH IN
ORDER TO PROTECT A PUBLIC DRINKING WATER SOURCE.
    Sec. 4. Section 7-131e of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    [(a)  Open  space   grants-in-aid   shall   be
approved  by  the  Commissioner  of  Environmental
Protection.
    (b)  Said  commissioner   shall  prescribe  an
application form and  may require supporting maps,
data,  title searches  and  appraisals  as  he  so
determines.
    (c)  All applications  shall  be  approved  by
local   planning   agencies    and    conservation
commissions,   where   they    exist,   prior   to
submission. All applications shall be submitted to
the regional planning  agency,  if any, whose area
of operation includes the location of the land for
which open space  grant-in-aid  is  requested. The
regional   planning   agency   shall   study   the
application and render  an  advisory report of its
findings  and  recommendations   thereon   to  the
applicant who shall  submit such regional planning
agency  report  with   its   application   to  the
commissioner. The regional  planning  agency shall
have thirty days  to  render  such  report.  If it
fails  to  report  or  if  there  is  no  regional
planning agency, the  applicant  shall  so note to
the commissioner. The regional planning agency may
designate its executive  committee  to  act for it
under this section  or  may  establish a committee
for this purpose.]
    (a) GRANT AWARD  DECISIONS  UNDER  THE PROGRAM
ESTABLISHED UNDER SECTION  7-131d,  AS  AMENDED BY
SECTION 3 OF  THIS  ACT,  SHALL  BE  MADE  BY  THE
COMMISSIONER OF ENVIRONMENTAL  PROTECTION AT LEAST
SEMIANNUALLY.  ALL  COMPLETE  AND  ELIGIBLE  GRANT
APPLICATIONS   SHALL  BE   ACTED   UPON   BY   THE
COMMISSIONER  AS SOON  AS  PRACTICABLE.  A  SINGLE
PROJECT MAY RECEIVE A GRANT IN MORE THAN ONE GRANT
CYCLE, SUBJECT TO FUTURE AVAILABILITY OF FUNDS AND
SUBJECT  TO THE  LIMITATIONS  SET  FORTH  IN  THIS
SECTION AND SECTIONS  23-78, AS AMENDED BY SECTION
1 OF THIS  ACT, 12-498, AS AMENDED BY SECTION 2 OF
THIS ACT, AND  7-131d,  AS AMENDED BY SECTION 3 OF
THIS ACT. UP  TO  TWO  PER CENT OF THE GRANT FUNDS
MAY BE USED FOR ADMINISTRATIVE EXPENSES INCLUDING,
BUT NOT LIMITED  TO: (1) CONTRACTORS TO ASSIST THE
DEPARTMENT  OF  ENVIRONMENTAL  PROTECTION  IN  THE
REVIEW  AND  EVALUATION  OF  GRANT  PROPOSALS  AND
BASELINE   DATA   COLLECTION    FOR   CONSERVATION
EASEMENTS; (2) APPRAISALS  OR  APPRAISAL  REVIEWS;
AND (3) PREPARATION  OF LEGAL AND OTHER DOCUMENTS.
ADMINISTRATIVE EXPENSES MAY  NOT BE USED FOR STAFF
SALARIES. NOT LATER  THAN  SEPTEMBER  1, 1998, THE
COMMISSIONER SHALL DEVELOP  WRITTEN GUIDELINES AND
A RANKING SYSTEM FOR CONSISTENCY AND EQUITY IN THE
DISTRIBUTION OF GRANT  AWARDS  UNDER  THIS PROGRAM
BASED ON THE  CRITERIA  LISTED  IN SUBSECTIONS (b)
AND (c) OF SECTION 7-131d, AS AMENDED BY THIS ACT.
CONSISTENT   WITH   SUCH    CRITERIA,   ADDITIONAL
CONSIDERATION SHALL BE GIVEN TO: (A) PROTECTION OF
LANDS ADJACENT TO  AND  COMPLEMENTARY  TO ADJACENT
PROTECTED OPEN SPACE  LAND  OR CLASS I OR CLASS II
WATER  COMPANY  LANDS;  (B)  EQUITABLE  GEOGRAPHIC
DISTRIBUTION OF THE  GRANTS;  (C)  PROXIMITY  OF A
PROPERTY   TO  URBAN   AREAS   WITH   GROWTH   AND
DEVELOPMENT PRESSURES OR  TO AREAS WITH OPEN SPACE
DEFICIENCIES  AND  UNDERSERVED   POPULATIONS;  (D)
PROTECTION  OF  LAND  PARTICULARLY  VULNERABLE  TO
DEVELOPMENT INCOMPATIBLE WITH ITS NATURAL RESOURCE
VALUES INCLUDING THE  PROTECTION OF A PUBLIC WATER
SUPPLY SOURCE; (E)  CONSISTENCY  WITH  THE STATE'S
PLAN OF CONSERVATION AND DEVELOPMENT; (F) MULTIPLE
PROTECTION ELEMENTS, SUCH  AS  WATER  QUALITY  AND
SUPPLY   PROTECTION,   SCENIC   PRESERVATION   AND
FARMLAND PRESERVATION; (G) THE EXTENT TO WHICH THE
PRESENCE OF ALREADY CONSTRUCTED BUILDINGS OR OTHER
MANMADE IMPROVEMENTS DIMINISH  OR  OVERSHADOW  THE
NATURAL RESOURCE VALUE  OF A PROPOSED ACQUISITION,
OR  ITS  VALUE  RELATIVE  TO  ITS  COST;  AND  (H)
PRESERVATION OF FOREST  LANDS  AND BODIES OF WATER
WHICH  NATURALLY  ABSORB  SIGNIFICANT  AMOUNTS  OF
CARBON DIOXIDE.
    (b) THERE IS  ESTABLISHED  A NATURAL HERITAGE,
OPEN SPACE AND  WATERSHED  LAND ACQUISITION REVIEW
BOARD TO ASSIST  AND  ADVISE  THE  COMMISSIONER IN
CARRYING OUT THE  PROVISIONS OF SECTIONS 7-131d TO
7-131g, INCLUSIVE, AND  SECTIONS  23-73  TO 23-79,
INCLUSIVE, AS AMENDED.  UPON  ESTABLISHMENT OF THE
REVIEW BOARD AND  SELECTION  OF  A  CHAIRMAN UNDER
THIS SECTION, THE  REVIEW  BOARD (1) SHALL PROVIDE
COMMENTS  ON  SELECTION   CRITERIA,  POLICIES  AND
PROCEDURES;    (2)    SHALL     PROMOTE     PUBLIC
PARTICIPATION; AND (3)  SHALL PROVIDE GUIDANCE AND
CONDUCT REVIEW OF  STRATEGIES FOR LAND PROTECTION,
INCLUDING  STRATEGIES  UNDER   SECTION   23-8,  AS
AMENDED; (4) SHALL REVIEW AND EVALUATE GRANT AWARD
POLICIES  AND  PROCEDURES;  AND  (5)  MAY  PROVIDE
COMMENTS ON ANY  APPLICATION  FOR  FUNDS NOT LATER
THAN FORTY-FIVE DAYS  AFTER  SUCH  APPLICATION  IS
SUBMITTED TO THE  CHAIRMAN.  UPON ESTABLISHMENT OF
THE  BOARD,  THE   COMMISSIONER  SHALL  TAKE  SUCH
COMMENTS   INTO  CONSIDERATION   IN   MAKING   ANY
DECISIONS REGARDING SUCH GRANTS.
    (c) THE REVIEW  BOARD  SHALL CONSIST OF TWENTY
MEMBERS  AS  FOLLOWS:  (1)  THE  CHAIRPERSONS  AND
RANKING MEMBERS OF THE BONDING SUBCOMMITTEE OF THE
JOINT STANDING COMMITTEE  OF  THE GENERAL ASSEMBLY
HAVING COGNIZANCE OF  MATTERS RELATING TO FINANCE,
REVENUE AND BONDING;  (2)  ONE MEMBER OF THE JOINT
STANDING COMMITTEE OF  THE GENERAL ASSEMBLY HAVING
COGNIZANCE OF MATTERS RELATING TO THE ENVIRONMENT,
APPOINTED  BY  THE   SPEAKER   OF   THE  HOUSE  OF
REPRESENTATIVES,  AND  ONE  MEMBER  OF  THE  JOINT
STANDING COMMITTEE OF  THE GENERAL ASSEMBLY HAVING
COGNIZANCE OF MATTERS  RELATING  TO  PLANNING  AND
DEVELOPMENT,  APPOINTED  BY   THE   PRESIDENT  PRO
TEMPORE OF THE  SENATE,  EACH  OF WHOM SHALL BE EX
OFFICIO MEMBERS OF THE BOARD; (3) THE SECRETARY OF
THE  OFFICE  OF  POLICY  AND  MANAGEMENT,  OR  HIS
DESIGNEE; (4) A  REPRESENTATIVE  OF  THE  BUSINESS
COMMUNITY  AND  A  PERSON  EXPERIENCED  IN  ISSUES
RELATING TO ACCESS TO PUBLIC FACILITIES BY PERSONS
WITH DISABILITIES, APPOINTED  BY THE GOVERNOR; (5)
ONE REPRESENTATIVE FROM  AN  INVESTOR-OWNED  WATER
UTILITY, APPOINTED BY  THE  MINORITY LEADER OF THE
SENATE; (6) ONE  REPRESENTATIVE  FROM  A MUNICIPAL
WATER UTILITY, APPOINTED BY THE MINORITY LEADER OF
THE   HOUSE   OF    REPRESENTATIVES;    (7)    ONE
REPRESENTATIVE  FROM  A  REGIONAL  WATER  UTILITY,
APPOINTED BY THE  MINORITY  LEADER  OF THE SENATE;
(8)  ONE  REPRESENTATIVE   WHO  IS  A  REALTOR  OR
ATTORNEY WITH A  MINIMUM  OF FIVE YEARS EXPERIENCE
IN REAL ESTATE TRANSFERS, APPOINTED BY THE SPEAKER
OF    THE   HOUSE    OF    REPRESENTATIVES;    ONE
REPRESENTATIVE  WITH  A   MINIMUM  OF  FIVE  YEARS
EXPERIENCE IN THE  CONSTRUCTION  INDUSTRY  OR LAND
DEVELOPMENT,  APPOINTED  BY   THE   PRESIDENT  PRO
TEMPORE OF THE  SENATE; (9) TWO REPRESENTATIVES OF
INTEREST  GROUPS  PRIMARILY   CONCERNED  WITH  THE
CONSERVATION OF RIVER WATERSHED REGIONS, APPOINTED
ONE EACH BY  THE  MAJORITY LEADERS OF THE HOUSE OF
REPRESENTATIVES  AND  THE   SENATE;   (10)   THREE
REPRESENTATIVES   FROM   NONPROFIT   ORGANIZATIONS
PRIMARILY CONCERNED WITH  ENVIRONMENTAL PROTECTION
OR NATURAL RESOURCE CONSERVATION WITH A MINIMUM OF
FIVE YEARS EXPERIENCE  IN  LAND  CONSERVATION  AND
ACQUISITION, APPOINTED ONE  EACH  BY THE GOVERNOR,
THE SPEAKER OF  THE  HOUSE  OF REPRESENTATIVES AND
THE PRESIDENT PRO  TEMPORE OF THE SENATE; AND (11)
ONE  CHIEF ELECTED  OFFICIAL  OF  A  TOWN  WITH  A
POPULATION LESS THAN TWENTY THOUSAND AND ONE CHIEF
ELECTED  OFFICIAL OF  A  TOWN  WITH  A  POPULATION
GREATER THAN TWENTY  THOUSAND,  APPOINTED  BY  THE
GOVERNOR.  THE MEMBERS,  OTHER  THAN  THE  MEMBERS
DESCRIBED IN SUBDIVISIONS (1), (2) AND (3) OF THIS
SUBSECTION,  SHALL  SERVE  TERMS  OF  THREE  YEARS
PROVIDED THE TERMS  OF  THE  MEMBERS  DESCRIBED IN
SUBDIVISIONS  (4)  TO   (8),  INCLUSIVE,  OF  THIS
SUBSECTION WHO ARE APPOINTED IN THE YEAR AFTER THE
EFFECTIVE DATE OF THIS ACT SHALL EXPIRE ON OCTOBER
1, 1999, AND  FURTHER  PROVIDED  THE  TERMS OF THE
MEMBERS  DESCRIBED IN  SUBDIVISIONS  (5)  TO  (9),
INCLUSIVE,  OF THIS  SUBSECTION  SHALL  EXPIRE  ON
OCTOBER 1, 2000.  THE BOARD SHALL ELECT A CHAIRMAN
FROM  AMONG  ITS   MEMBERS  AND  SHALL  MAKE  SUCH
ELECTION ON OR  BEFORE OCTOBER 1, 1998. MEMBERS OF
THE  BOARD  SHALL   SERVE   UNTIL  REAPPOINTED  OR
REPLACED.
    (d) ANNUALLY, ON OR BEFORE FEBRUARY FIFTEENTH,
THE BOARD SHALL  SUBMIT  A  REPORT REGARDING GRANT
AWARDS MADE IN  THE PREVIOUS CALENDAR YEAR AND ANY
FINDINGS AND RECOMMENDATIONS  REGARDING  THE  OPEN
SPACE AND WATERSHED  LAND  ACQUISITION  PROGRAM TO
THE GENERAL ASSEMBLY.
    (e) THERE IS  ESTABLISHED  AN  OPEN  SPACE AND
WATERSHED  LAND  ACQUISITION  ACCOUNT  WITHIN  THE
GENERAL FUND WHICH  SHALL  CONSIST  OF  ANY  FUNDS
REQUIRED OR ALLOWED  BY  LAW  TO BE DEPOSITED INTO
THE ACCOUNT INCLUDING,  BUT  NOT LIMITED TO, GIFTS
OR DONATIONS RECEIVED  FOR THE PURPOSES OF SECTION
7-131d, AS AMENDED  BY  SECTION  3  OF  THIS  ACT.
INVESTMENT EARNINGS CREDITED  TO THE ASSETS OF THE
ACCOUNT SHALL BECOME  PART  OF  THE  ASSETS OF THE
ACCOUNT. ANY BALANCE  REMAINING  IN THE ACCOUNT AT
THE  END OF  ANY  FISCAL  YEAR  SHALL  BE  CARRIED
FORWARD IN THE  ACCOUNT  FOR  THE FISCAL YEAR NEXT
SUCCEEDING. PAYMENTS FROM  THE  ACCOUNT  SHALL  BE
MADE UPON AUTHORIZATION  BY  THE  COMMISSIONER  OF
ENVIRONMENTAL PROTECTION. NEITHER  THE PROCEEDS OF
ANY GENERAL OBLIGATION  BONDS OF THE STATE NOR THE
INVESTMENT EARNINGS OF  ANY SUCH PROCEEDS SHALL BE
DEPOSITED  IN THE  ACCOUNT.  THE  COMMISSIONER  OF
ENVIRONMENTAL  PROTECTION MAY  USE  FUNDS  IN  THE
ACCOUNT FOR PURPOSES OF SECTION 7-131d, AS AMENDED
BY SECTION 3 OF THIS ACT.
    Sec. 5. Section 7-131g of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a)  Subject to  the  provisions  of  sections
7-131c to 7-131k,  inclusive,  the Commissioner of
Environmental Protection may  (1)  where a federal
grant   is   also    made,   approve   grants   to
municipalities in an amount not to exceed one-half
of  the  nonfederal   share  of  open  space  land
acquisition  or development  costs,  (2)  where  a
federal rehabilitation or innovation grant is made
to  a  municipality   under  the  Urban  Park  and
Recreation Recovery Act  of  1978 (P.L. 95-625, 92
Stat. 3538), approve  a grant to such municipality
not  to exceed  fifteen  per  cent  of  the  total
project cost of such development or rehabilitation
and (3) where  a  federal  grant  is not made, may
approve grants to municipalities in [an amount not
to exceed forty  per cent of such land acquisition
or   development  costs]   ACCORDANCE   WITH   THE
PROVISIONS OF THIS SECTION.
    [(b) The cost  of land, for determination of a
state grant hereunder,  shall be determined by one
or more appraisals  made  or obtained by the state
and shall not  include  incidental  costs, such as
surveying   and  closing   costs   or   costs   of
development thereof. When  a municipality receives
a gift of  land as a portion of the total value of
the property, the  appraised value of said gift of
land shall be subtracted from the nonfederal share
for  determination  of   a   state   grant.   Such
information as may  be  required for determination
of any such  grant  with  respect  to  development
costs  shall  be   submitted  in  accordance  with
regulations prescribed by said commissioner.
    (c) Any application  for  a grant-in-aid under
sections 7-131c to  7-131k,  inclusive,  which was
received  and  approved  by  the  Commissioner  of
Environmental Protection prior  to  July  1, 1978,
shall be administered in accordance with the terms
and  conditions of  the  open  space  statutes  in
effect prior to that date.]
    (b)   THE   COMMISSIONER    OF   ENVIRONMENTAL
PROTECTION MAY MAKE  GRANTS  UNDER  THE OPEN SPACE
AND WATERSHED LAND  ACQUISITION  PROGRAM  TO:  (1)
MUNICIPALITIES FOR ACQUISITION  OF  LAND  FOR OPEN
SPACE UNDER SUBDIVISIONS (1) TO (6), INCLUSIVE, OF
SUBSECTION (b) OF  SECTION  7-131d,  AS AMENDED BY
SECTION 3 OF  THIS ACT, IN AN AMOUNT NOT TO EXCEED
FIFTY PER CENT  OF  THE  FAIR  MARKET  VALUE  OF A
PARCEL OF LAND  OR INTEREST IN LAND PROPOSED TO BE
ACQUIRED; (2) MUNICIPALITIES  FOR  ACQUISITION  OF
LAND  FOR  CLASS  I  AND  CLASS  II  WATER  SUPPLY
PROTECTION UNDER SUBDIVISION (5) OF SUBSECTION (b)
OF SAID SECTION 7-131d, IN AN AMOUNT NOT TO EXCEED
SIXTY-FIVE PER CENT  OF  SUCH VALUE; (3) NONPROFIT
LAND CONSERVATION ORGANIZATIONS FOR ACQUISITION OF
LAND FOR OPEN  SPACE OR WATERSHED PROTECTION UNDER
SUBDIVISIONS (1) TO  (6), INCLUSIVE, OF SUBSECTION
(b) OF SAID  SECTION  7-131d,  IN AN AMOUNT NOT TO
EXCEED FIFTY PER  CENT  OF  SUCH  VALUE; (4) WATER
COMPANIES   FOR   ACQUISITION    OF   LAND   UNDER
SUBDIVISION (7) OF  SUBSECTION (b) OF SAID SECTION
7-131d, IN AN  AMOUNT NOT TO EXCEED FORTY PER CENT
OF SUCH VALUE  PROVIDED IF SUCH A COMPANY PROPOSES
IN A GRANT  APPLICATION  THAT  IT INTENDS TO ALLOW
ACCESS TO SUCH  LAND  FOR  RECREATIONAL USES, SUCH
COMPANY SHALL SEEK APPROVAL OF THE COMMISSIONER OF
PUBLIC HEALTH FOR  SUCH ACCESS; AND (5) DISTRESSED
MUNICIPALITIES OR TARGETED INVESTMENT COMMUNITIES,
AS DEFINED IN  SECTION  32-9p,  FOR ACQUISITION OF
LAND FOR OPEN SPACE UNDER SUBDIVISIONS (1) TO (6),
INCLUSIVE,  OF  SUBSECTION  (b)  OF  SAID  SECTION
7-131d, IN AN  AMOUNT NOT TO EXCEED SIXTY-FIVE PER
CENT OF SUCH  VALUE  OR FOR PERFORMANCE OF WORK IN
THE  RESTORATION,  ENHANCEMENT  OR  PROTECTION  OF
RESOURCES IN AN  AMOUNT  NOT  TO  EXCEED FIFTY PER
CENT OF THE  COST  OF  SUCH  WORK.  APPLICANTS FOR
GRANTS UNDER THE  PROGRAM  SHALL PROVIDE A COPY OF
THE APPLICATION TO  THE  CHAIRPERSON OF THE REVIEW
BOARD ESTABLISHED UNDER SECTION 7-131e, AS AMENDED
BY SECTION 4  OF THIS ACT. THE BOARD SHALL PROVIDE
COMMENTS   TO   THE    COMMISSIONER   ON   PENDING
APPLICATIONS AS IT DEEMS NECESSARY.
    (c) FOR PURPOSES  OF THIS SUBSECTION, THE FAIR
MARKET VALUE OF  LAND OR INTEREST IN LAND SHALL BE
DETERMINED BY ONE  OR MORE APPRAISALS SATISFACTORY
TO  THE  COMMISSIONER   AND   SHALL   NOT  INCLUDE
INCIDENTAL COSTS, INCLUDING,  BUT  NOT LIMITED TO,
SURVEYING,  DEVELOPMENT  OR   CLOSING  COSTS.  THE
COMMISSIONER MAY CONSIDER  A  PORTION  OF THE FAIR
MARKET VALUE OF  A  DONATION  OF LAND BY AN ENTITY
RECEIVING A GRANT  AS  A  PORTION  OF THE MATCHING
FUNDS REQUIRED UNDER  THIS  SUBSECTION.  NO  OTHER
FUNDS MADE AVAILABLE BY THE STATE MAY BE USED BY A
POTENTIAL  GRANTEE AS  MATCHING  FUNDS  UNDER  THE
PROGRAM.
    (d) TO THE  EXTENT THERE IS A BALANCE OF BONDS
AUTHORIZED BUT NOT  ALLOCATED  BY  THE  STATE BOND
COMMISSION ON OR  AFTER  JULY 1, 1998, PURSUANT TO
ANY  BOND  ACT   FOR   THE  PURPOSES  OF  (1)  THE
RECREATION  AND  NATURAL  HERITAGE  TRUST  PROGRAM
ESTABLISHED  UNDER  SECTIONS   23-73   TO   23-79,
INCLUSIVE, AND (2)  THE MUNICIPAL OPEN SPACE GRANT
PROGRAM  ESTABLISHED  UNDER   SECTIONS  7-131c  TO
7-131g,  INCLUSIVE, AS  AMENDED,  THE  STATE  BOND
COMMISSION SHALL AUTHORIZE  THE  ISSUANCE  OF SUCH
BALANCE ONLY FOR THE PURPOSES DESCRIBED IN SECTION
23-74, AS AMENDED  BY  SECTION 11 OF THIS ACT, AND
SECTIONS 23-75 AND 7-131d, AS AMENDED BY SECTION 3
OF  THIS  ACT,  AND  IN  TWO  SUBSTANTIALLY  EQUAL
INSTALMENTS ONE IN  EACH  HALF  OF THE FISCAL YEAR
COMMENCING WITH THE  FISCAL  YEAR  ENDING JUNE 30,
1999.
    Sec. 6. (NEW)  On  or  before the tenth day of
each  month,  the  Commissioner  of  Environmental
Protection shall submit  a  report  to  the  joint
standing committee of  the General Assembly having
cognizance of matters relating to finance, revenue
and bonding and to the State Bond Commission which
report   shall   provide    information   on   any
acquisition of land  or interest in land completed
in   the  previous   month   by   the   state,   a
municipality,   water   company    or    nonprofit
organization using funds  authorized  for the Open
Space  and  Watershed   Land  Acquisition  Program
established under section  7-131d  of  the general
statutes, as amended by section 3 of this act, and
the Recreation and  Natural Heritage Trust Program
established  under  sections   23-73   to   23-79,
inclusive, of the general statutes.
    Sec.  7.  Section   25-32d   of   the  general
statutes, as amended  by  section  3 of public act
97-314,  is  repealed   and   the   following   is
substituted in lieu thereof:
    (a) Each water  company  as defined in section
25-32a and supplying water to one thousand or more
persons or two hundred fifty or more consumers and
any other water company as defined in said section
requested by the  Commissioner  of  Public  Health
shall  submit  a   water   supply   plan   to  the
Commissioner of Public  Health  for  approval with
the   concurrence   of    the    Commissioner   of
Environmental Protection. The  concurrence  of the
Public  Utilities  Control   Authority   shall  be
required for approval  of  a  plan  submitted by a
water  company regulated  by  the  authority.  The
Commissioner of Public  Health  shall consider the
comments of the Public Utilities Control Authority
on any plan  which  may  impact  any water company
regulated by the  authority.  The  Commissioner of
Public Health shall  distribute a copy of the plan
to the Commissioner  of  Environmental  Protection
and the Public Utilities Control Authority. A copy
of the plan  shall be sent to the Secretary of the
Office of Policy  and  Management  for information
and comment. A  plan shall be revised at such time
as  the water  company  filing  the  plan  or  the
Commissioner of Public  Health  determines  or  at
intervals of not  less  than  three years nor more
than  five  years   after   the  date  of  initial
approval. [Any water  company  which is subject to
the  requirements of  subsection  (b)  of  section
16-50c which submits  a  revision of any such plan
regarding land use  and  ownership  shall  provide
notice that such  a  revision has been made and is
available at such company which notice shall be by
certified mail, return  receipt requested, to each
private, nonprofit land-holding  organization that
would be entitled  under said subsection to notice
of the sale,  lease  or  other  disposition of any
land affected by such revision.]
    (b) Any water  supply  plan submitted pursuant
to this section  shall  evaluate  the water supply
needs in the  service  area  of  the water company
submitting the plan and propose a strategy to meet
such  needs.  The   plan   shall  include:  (1)  A
description of existing  water supply systems; (2)
an analysis of future water supply demands; (3) an
assessment  of alternative  water  supply  sources
which may include  sources  receiving  sewage  and
sources located on  state  land;  (4)  contingency
procedures  for  public   drinking   water  supply
emergencies, including emergencies  concerning the
contamination of water,  the  failure  of  a water
supply system or  the  shortage  of  water;  (5) a
recommendation for new  water  system development;
(6)  a forecast  of  ANY  future  land  sales,  AN
IDENTIFICATION  WHICH  INCLUDES  THE  ACREAGE  AND
LOCATION OF ANY  LAND PROPOSED TO BE SOLD, SOURCES
OF PUBLIC WATER  SUPPLY  TO  BE  ABANDONED AND ANY
LAND OWNED BY THE COMPANY WHICH IT HAS DESIGNATED,
OR PLANS TO  DESIGNATE,  AS  CLASS  III  LAND; (7)
provisions for strategic  groundwater  monitoring;
and  (8)  an  analysis  of  the  impact  of  water
conservation   practices  and   a   strategy   for
implementing   supply   and    demand   management
measures.
    (c)  The Commissioner  of  Public  Health,  in
consultation    with    the     Commissioner    of
Environmental Protection and  the Public Utilities
Control  Authority,  shall  adopt  regulations  in
accordance with the provisions of chapter 54. Such
regulations shall include a method for calculating
safe yield, the  contents of emergency contingency
plans and water  conservation plans, a process for
approval,  modification  or   rejection  of  plans
submitted pursuant to this section, a schedule for
submission  of  the  plans  and  a  mechanism  for
determining the completeness of the plan. The plan
shall be deemed  complete if the commissioner does
not request additional  information  within ninety
days  after  the   date  on  which  the  plan  was
submitted  or,  in   the   event  that  additional
information has been  requested, within forty-five
days after the  submission  of  such  information,
except  that  the   commissioner  may  request  an
additional thirty days  beyond  the  time in which
the  application is  deemed  complete  to  further
determine completeness. In determining whether the
water supply plan  is  complete,  the commissioner
may request only  information that is specifically
required   by  regulation.   THE   DEPARTMENT   OF
ENVIRONMENTAL  PROTECTION AND  THE  DEPARTMENT  OF
PUBLIC UTILITY CONTROL,  IN  THE  CASE OF ANY PLAN
WHICH MAY IMPACT  ANY  WATER  COMPANY REGULATED BY
THAT AGENCY, SHALL  HAVE  NINETY  DAYS UPON NOTICE
THAT A PLAN  IS  DEEMED COMPLETE TO COMMENT ON THE
PLAN.
    (d) ANY WATER  COMPANY,  WHEN  SUBMITTING  ANY
PLAN OR REVISION  OR AMENDMENT OF A PLAN AFTER THE
EFFECTIVE  DATE  OF  THIS  ACT  WHICH  INVOLVES  A
FORECAST OF LAND  SALES,  ABANDONMENT OF ANY WATER
SUPPLY  SOURCE,  SALE   OF   ANY  LANDS,  OR  LAND
RECLASSIFICATION,  SHALL  PROVIDE  NOTICE,  RETURN
RECEIPT REQUESTED, TO  THE  CHIEF ELECTED OFFICIAL
OF EACH MUNICIPALITY  IN  WHICH THE LAND OR SOURCE
IS LOCATED, THE  NATURE CONSERVANCY, THE TRUST FOR
PUBLIC LAND AND  THE LAND TRUST SERVICE BUREAU AND
ANY  ORGANIZATION  ON   THE  LIST  PREPARED  UNDER
SUBSECTION (b) OF  SECTION  16-50c,  AS AMENDED BY
THIS ACT. SUCH  NOTICE  SHALL SPECIFY ANY PROPOSED
ABANDONMENT  OF A  SOURCE  OF  WATER  SUPPLY,  ANY
PROPOSED CHANGES TO  LAND  SALES  FORECASTS OR ANY
LAND TO BE  DESIGNATED  AS  CLASS III LAND IN SUCH
PLAN. SUCH NOTICE  SHALL  SPECIFY THE LOCATION AND
ACREAGE PROPOSED FOR  SALE  OR RECLASSIFICATION AS
CLASS III LAND,  IDENTIFY  SOURCES TO BE ABANDONED
AND SHALL BE  PROVIDED  NO  LATER THAN THE DATE OF
SUBMISSION OF SUCH  PLAN  OR REVISION. SUCH NOTICE
SHALL INDICATE THAT PUBLIC COMMENT ON SUCH PLAN OR
REVISION SHALL BE RECEIVED BY THE COMMISSIONERS OF
PUBLIC  HEALTH AND  ENVIRONMENTAL  PROTECTION  NOT
LATER THAN SIXTY  DAYS  AFTER  THE DATE OF NOTICE.
THE COMMISSIONER OF  PUBLIC HEALTH SHALL TAKE SUCH
COMMENT   INTO   CONSIDERATION   IN   MAKING   ANY
DETERMINATION OR APPROVAL UNDER THIS SECTION.
    Sec.  8.  Section   16-50c   of   the  general
statutes, as amended  by  section  2 of public act
97-314,  is  repealed   and   the   following   is
substituted in lieu thereof:
    (a) Whenever any  public  service  company, as
defined in section  16-1,  except a water company,
owning  any contiguous  area  of  unimproved  real
property containing three  acres  or more, intends
to sell, lease  or otherwise dispose of such land,
or a portion  thereof,  except  to  the state, the
United  States or  a  municipality,  such  company
shall first notify  in writing, by certified mail,
return receipt requested, the Department of Public
Utility  Control,  the   Commissioner   of  Public
Health,   the   Commissioner    of   Environmental
Protection  and the  chief  executive  officer  or
officers of the municipality in which such land is
situated, of such  intention  to  sell,  lease  or
otherwise dispose of  such  land, and no agreement
to sell, lease  or  otherwise dispose of such land
may be entered into by such public service company
except as provided in this section. The department
shall approve or  disapprove  the  disposition  of
such unimproved property  pursuant  to  subsection
(a) of section  16-43,  AS AMENDED BY SECTION 9 OF
THIS ACT, not  more  than  one  hundred fifty days
after said department has received notice pursuant
to this section  and failure to take action within
such  period  shall   be   deemed   to  constitute
approval. The department  shall  hold a hearing on
all   such  land   transactions   in   which   the
acquisition cost of  the  parcels  involved or the
transfer consideration is  in  excess  of [twenty]
FIFTY thousand dollars.  The hearing shall be held
in the municipality where such land is located. If
such land is located in more than one municipality
the   department   shall    determine   in   which
municipality the hearing  shall  be  held.  If the
hearing is scheduled  for  more  than  one  day or
continues for more than one day the department may
reconvene  the  hearing  at  the  offices  of  the
department. The municipality in which such land is
situated  shall be  a  party  to  all  proceedings
before the department  involving such land brought
pursuant to sections  16-50b to 16-50e, inclusive.
The Department of  Public  Utility Control may, by
order,  exempt  from   the   provisions   of  this
subsection  and sections  16-50d  and  16-50e  any
sale, lease, transfer or other disposition of land
by a public  service  company,  other than a water
company, to another public service company if such
sale, lease, transfer or other disposition of land
is related to  a  plan  of  divestiture  or  other
corporate   reorganization   approved    by    the
department.
    (b) On or  before  January  1, 1998, and on or
before January first of each year thereafter, [the
Nature Conservancy, the Trust for Public Land, the
Land  Trust  Service   Bureau  and]  any  private,
nonprofit land-holding organization may provide in
writing  to  the   Department  of  Public  Utility
Control its mailing  address  and  a  list  of the
municipalities in this  state  in  which  [it owns
land]  SUCH  ORGANIZATION  MAY  OWN  LAND  OR  ANY
MUNICIPALITY ADJACENT TO SUCH MUNICIPALITIES which
address is suitable  for  the purpose of receiving
notice of the  sale, lease or other disposition of
water company land as provided in this section. On
or before February  1,  1998,  and  on  or  before
February  first  of  each  year  thereafter,  said
department shall publish  and  make  available  to
every water company, as defined in section 16-1, a
list setting forth for THE NATURE CONSERVANCY, THE
TRUST FOR PUBLIC  LAND,  THE  LAND  TRUST  SERVICE
BUREAU AND each  private,  nonprofit  land-holding
organization which has  provided such information,
such  organization's  mailing   address   and  the
municipalities in which  [such  organization  owns
land]  SUCH ORGANIZATION  MAY  OWN  LAND  AND  THE
ADJACENT MUNICIPALITIES. SUCH  LIST SHALL BE VALID
UNTIL  JANUARY  THIRTY-FIRST   OF   THE  FOLLOWING
CALENDAR YEAR AND ANY CHANGES IN INFORMATION TO BE
INCORPORATED IN THE FOLLOWING YEAR'S LIST SHALL BE
SUBMITTED  TO THE  DEPARTMENT  OF  PUBLIC  UTILITY
CONTROL ON OR  BEFORE  JANUARY FIRST FOR INCLUSION
ON THE LIST  TO  BE  PUBLISHED  ON FEBRUARY FIRST.
Whenever,  ONE  HUNDRED   TWENTY  DAYS  AFTER  THE
EFFECTIVE DATE OF  THIS ACT, any water company, as
defined in section  16-1,  owning  any  contiguous
area of real  property  containing  three acres or
more, intends to  sell, lease or otherwise dispose
of such land,  or  a portion thereof, such company
shall, [first] NOT LATER THAN NINETY DAYS PRIOR TO
OFFERING  SUCH  LAND   FOR   SALE   OR   OTHERWISE
NEGOTIATING WITH OR  NOTIFYING ANY OTHER POTENTIAL
PURCHASER, OR ANY  AGENT OF A POTENTIAL PURCHASER,
(1) notify in  writing,  by certified mail, return
receipt  requested,  the   Department   of  Public
Utility  Control,  the   Commissioner   of  Public
Health,   the   Commissioner    of   Environmental
Protection,  any  water  company,  as  defined  in
section  25-32a, with  an  existing  or  potential
source  of  supply   or   service   area   in  any
municipality in which  such  land is situated, any
water company, as  defined in said section 25-32a,
with an existing  or potential source of supply or
service area in  a  contiguous  municipality,  the
chief  executive  officer   or   officers  of  the
municipality in which  such  land is situated, the
Nature Conservancy, the Trust for Public Land, the
Land  Trust  Service   Bureau   and  any  private,
nonprofit land-holding organization  set  forth on
the list published  annually  by the Department of
Public Utility Control  pursuant  to  this section
which organization has  [its  mailing  address  or
owns land in either the municipality in which such
water  company  land   is   situated   or  in  any
contiguous   municipality]   INDICATED    TO   THE
DEPARTMENT  THAT  IT   MAY   OWN   LAND   IN   THE
MUNICIPALITY IN WHICH THE LAND IS LOCATED OR IN AN
ADJACENT MUNICIPALITY provided  such  notice shall
inform recipients [that  any significant terms and
conditions   of  such   sale,   lease   or   other
disposition and] OF  INFORMATION PERTAINING TO THE
ACREAGE AND LOCATION  OF  THE  LAND  TO  BE  SOLD,
LEASED, OR OTHERWISE  DISPOSED  OF AND SUCH NOTICE
SHALL STATE THAT ADDITIONAL INFORMATION, INCLUDING
a  map of  the  property,  are  available  at  the
company AND FURTHER  PROVIDED, FOR ANY APPLICATION
SUBMITTED  TO THE  DEPARTMENT  OF  PUBLIC  UTILITY
CONTROL FOR DISPOSITION  OF  SUCH  LAND WITHIN TWO
YEARS AFTER SUCH  NINETY-DAY  PERIOD,  NO  FURTHER
NOTICE SHALL BE  REQUIRED, and (2) provide further
public notice by  causing a notice to be published
in  a newspaper  of  general  circulation  in  the
municipalities where such  water  company  land is
situated not more  than  forty-five  days nor less
than thirty days  before  and not more than thirty
days after filing an application for approval with
the department of such intention to sell, lease or
otherwise dispose of such land. Such public notice
shall be published  in  a  display form that shall
serve substantially to  notify  the  public of the
availability  of  the   property   and   shall  be
published in print  no smaller than ten-point type
size.  IF  A   RECIPIENT   OF  NOTICE  UNDER  THIS
SUBSECTION ENTERS INTO A CONTRACT TO PURCHASE SUCH
LAND, THE CLOSING ON THE SALE SHALL TAKE PLACE NOT
LATER THAN TWELVE  MONTHS  AFTER  THE  CONTRACT IS
ENTERED INTO UNLESS  THE  PERIOD  FOR  CLOSING  IS
EXTENDED BY MUTUAL AGREEMENT OF THE PARTIES TO THE
CONTRACT. No agreement to sell, lease or otherwise
dispose of such  land  may be entered into by such
water company except  as provided in this section.
Any private, nonprofit  land-holding  organization
which is considering acquiring the interest in the
land which the  water  company  intends  to  sell,
lease or dispose  of,  must  identify  itself as a
potential acquirer by giving written notice to the
Department of Public  Utility  Control  and to the
water company by  certified  mail,  return receipt
requested, not more  than  ninety  days  after the
water company files  an  application for approval.
The department shall  approve  or  disapprove  the
disposition   of   such   property   pursuant   to
subsection (a) of  section  16-43,  AS  AMENDED BY
SECTION 9 OF  THIS  ACT, not more than one hundred
fifty days after its receipt of an application for
such sale, lease  or  other [disposal] DISPOSITION
pursuant to this  subsection  and  failure to take
action  within such  period  shall  be  deemed  to
constitute approval. The  department  shall hold a
hearing on all such land transactions in which the
acquisition cost of  the  parcels  involved or the
transfer consideration is  in  excess  of [twenty]
FIFTY thousand dollars.  The hearing shall be held
in the municipality where such land is located. If
such land is located in more than one municipality
the   department   shall    determine   in   which
municipality the hearing  shall  be  held.  If the
hearing is scheduled  for  more  than  one  day or
continues for more than one day the department may
reconvene  the  hearing  at  the  offices  of  the
department. An application shall not be filed with
the department until  the  Commissioner  of Public
Health issues a  permit pursuant to section 25-32.
The municipality in  which  such  land is situated
shall be a  party  to  all  proceedings before the
department involving such land brought pursuant to
sections 16-50b to 16-50e.
    (c) IF, BY  THE  END  OF THE NINETY-DAY PERIOD
FOR  WRITTEN  NOTICE   UNDER  SUBDIVISION  (1)  OF
SUBSECTION (b) OF  THIS  SECTION,  NO RECIPIENT OF
SUCH  NOTICE HAS  ENTERED  INTO  AN  AGREEMENT  OR
OPTION TO ACQUIRE  THE LAND, THE WATER COMPANY MAY
OFFER  THE  LAND   FOR   SALE,   LEASE   OR  OTHER
DISPOSITION TO ANY  PERSON.  ANY SUCH RECIPIENT OF
NOTICE,  UPON  ENTERING   INTO  A  CONTRACT  WHICH
PROVIDES FOR AN OPTION TO ACQUIRE SUCH LAND, SHALL
PAY REASONABLE CONSIDERATION  FOR SUCH OPTION WITH
DUE REGARD FOR  THE MARKET VALUE OF THE LAND. SUCH
CONSIDERATION SHALL BE  APPLIED, WITHOUT INTEREST,
AS A CREDIT  AGAINST  THE  PURCHASE  PRICE  IF THE
OPTION IS EXERCISED.  ANY SUCH CONSIDERATION SHALL
NOT   BE   REFUNDABLE    UNLESS   THE   DEPARTMENT
DISAPPROVES THE DISPOSITION OF SUCH LAND.
    Sec. 9. Section  16-43 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) A public  service company shall obtain the
approval  of  the  Department  of  Public  Utility
Control  to  directly  or  indirectly  (1)  merge,
consolidate or make  common  stock  with any other
company, or (2)  sell,  lease,  assign,  mortgage,
except by supplemental  indenture  in  accord with
the terms of  a mortgage outstanding May 29, 1935,
or otherwise dispose  of any essential part of its
franchise,  plant  equipment   or  other  property
necessary or useful in the performance of its duty
to  the public,  provided  (A)  a  public  service
company  other than  a  water  company  may  sell,
lease, assign, mortgage  or  otherwise  dispose of
real property with  an  appraised  value  of fifty
thousand dollars or  less  without  such approval,
and (B) a  water  company  supplying water to more
than  five  hundred  consumers  may  sell,  lease,
assign, mortgage, or  otherwise  dispose  of  real
property, other than  public  watershed  or  water
supply lands, with  an  appraised  value  of fifty
thousand dollars or  less  without  such approval.
The department shall  not accept an application to
sell watershed or  water  supply  lands  until the
Commissioner  of Public  Health  issues  a  permit
pursuant to section  25-32.  The condemnation by a
state department, institution  or  agency  of  any
land owned by  a  public  service company shall be
subject to the  provisions  of this subsection. On
February 1, 1996,  and  annually  thereafter, each
public service company  shall  submit  a report to
the Department of  Public  Utility  Control of all
real property sold,  leased,  assigned, mortgaged,
or otherwise disposed  of  without the approval of
said department during the previous calendar year.
Such report shall  include  for  each  transaction
involving such property,  without  limitation, the
appraised value of  the  real property, the actual
value  of  the   transaction  and  the  accounting
journal entry which recorded the transaction.
    (b) A public  service company shall obtain the
approval  of  the  Department  of  Public  Utility
Control to (1)  issue  any  notes,  bonds or other
evidences of indebtedness  or  securities  of  any
nature, (2) lend or borrow any moneys for a period
of more than  one  year for any purpose other than
paying   the   expenses,   including   taxes,   of
conducting its business  or  for  the  payment  of
dividends,  or  (3)  amend  any  provision  of  an
indenture or similar  financial instrument if such
amendment would affect  the  issuance  or terms of
any  such  notes,  bonds  or  other  evidences  of
indebtedness or securities.  The  department shall
approve or disapprove each such issue or amendment
within thirty days  after  the filing of a written
application for such approval unless the applicant
agrees to an extension of time. If not disapproved
within said thirty  days or within such extension,
such issue shall  be  deemed  to  be approved. The
department shall not  require  a  company to issue
its common stock  under  terms  or  conditions not
required by the  general  statutes. The provisions
of this subsection  shall  apply  to  a  community
antenna television company only with regard to any
noncable communications services which the company
may provide.
    (c) Any managerial  service contract made by a
public service company  shall be voidable on order
of the department,  but may be enforced as between
the parties unless disapproved.
    (d) Any water company selling land that at any
time has been  in  the  water  company's rate base
shall use the  net  proceeds from the sale of such
land for capital projects which improve or protect
the water supply  system or for the acquisition of
land to protect a water supply source. In the case
of a water company required to file a water supply
plan pursuant to  section  25-32d,  AS  AMENDED BY
SECTION 7 OF  THIS  ACT,  the  capital projects or
acquisition shall be consistent with such plan.
    (e)  For the  purposes  of  rate  making,  the
department shall use  an accounting method for the
economic benefits of  sales of land [for which the
Commissioner of Public  Health has issued a permit
pursuant to sections  25-32, 25-37c and 25-37d] BY
A WATER COMPANY,  AS DEFINED IN SECTION 16-1, that
at any time  has  been in the water company's rate
base that equitably  allocates all of the economic
benefits of any  such  sale between the ratepayers
and the shareholders  of  the  company.  Any  such
allocation shall be  based  on  the  facts of each
application  for  sale  and  the  department  may,
except as otherwise  provided  in this subsection,
allocate all of  the economic benefits of any such
sale to either the ratepayers or the shareholders.
The  department  shall   allocate   the   economic
benefits of any  such  sale  of water company land
which promotes a  perpetual public interest in the
use  of  land   for  open  space  or  recreational
purposes, AS DEFINED  IN  SECTION  10 OF THIS ACT,
substantially  in  favor   of  a  water  company's
shareholders [, with  regard to any such land sold
by the company  when at least twenty-five per cent
of such land  is  to  be  used  for  open space or
recreational   purposes]   IF    NOT   LESS   THAN
TWENTY-FIVE PER CENT  OF  THE AREA OF SUCH LAND IN
THE  SALE  IS   TO  BE  USED  FOR  OPEN  SPACE  OR
RECREATIONAL PURPOSES AND shall ALLOCATE UP TO ONE
HUNDRED  PER  CENT   OF   THE   BENEFITS   TO  THE
SHAREHOLDERS IF ONE  HUNDRED  PER CENT OF THE LAND
IN THE SALE  IS  TO  BE  USED  FOR  OPEN  SPACE OR
RECREATIONAL   PURPOSES.  The   department   shall
determine how much  more  than  a majority of such
benefits shall be  allocated  to  the shareholders
based on the  extent  to which part of the land is
for open space  or recreational purposes. [For the
purposes  of  this   subsection,  "open  space  or
recreational purposes" is defined as in subsection
(f) of section  16-50d.]  ANY SUCH LAND DESIGNATED
FOR OPEN SPACE OR RECREATION SHALL NOT BE REQUIRED
TO BE PART  OF OR CONTIGUOUS TO THE CLASS III LAND
WHICH IS SUBJECT  TO  THE  SALE  IN  ORDER  TO  BE
CONSIDERED IN THE  DETERMINATION OF THE ALLOCATION
OF BENEFITS PROVIDED  SUCH  NONCONTIGUOUS  LAND IS
(1) CONSISTENT WITH  THE  STATE  OR LOCAL PLAN FOR
OPEN SPACE AND  RECREATION  IN THE MUNICIPALITY IN
WHICH  IT  IS  LOCATED,  OR  (2)  IS  ADJACENT  TO
EXISTING PROTECTED OPEN  SPACE,  OR  (3) CREATES A
LINKAGE BETWEEN TWO  OR  MORE PARCELS OF PROTECTED
OPEN SPACE AND  FURTHER  PROVIDED ONLY HALF OF THE
ACREAGE WITHIN SUCH  NONCONTIGUOUS LAND DESIGNATED
FOR OPEN SPACE  OR  RECREATIONAL PURPOSES SHALL BE
COUNTED TOWARD THE  PERCENTAGE USED IN DETERMINING
WHETHER   THE   TWENTY-FIVE   PER   CENT   MINIMUM
REQUIREMENT IN THIS  SECTION  IS MET. SUBSTITUTION
OF NONCONTIGUOUS LAND  TO  MEET  THIS  REQUIREMENT
SHALL NOT BE  PERMITTED  IF  SUCH  LAND TO BE SOLD
TOGETHER WITH ANY  CONTIGUOUS  CLASS III LAND FROM
WHICH THE WATER  COMPANY HAS DIVIDED OR SUBDIVIDED
IT FOR SALE  IS  MORE THAN ONE HUNDRED FIFTY ACRES
AND IS CONTIGUOUS TO LAND PROTECTED AS OPEN SPACE,
FOREST LAND OR  FARMLAND DESIGNATED UNDER SECTIONS
12-107c TO 12-107e,  INCLUSIVE,  OR  CLASSIFIED AS
WATER COMPANY LAND,  ANY  OF WHICH, IN COMBINATION
WITH THE LAND  TO  BE  SOLD,  IS  MORE  THAN  FIVE
HUNDRED ACRES. THE DEED FOR ANY NONCONTIGUOUS LAND
USED  IN  ANY  SUCH  DETERMINATION  SHALL  CLEARLY
INDICATE THAT THE  LAND  IS  HELD  FOR  THE PUBLIC
INTEREST IN PERPETUITY.
    Sec. 10. (NEW)  For purposes of subsection (e)
of  section 16-43  of  the  general  statutes,  as
amended by section  9  of this act, "open space or
recreational  purposes"  means   public  parks  or
forests  or  natural  areas,  including,  but  not
limited to, reservoirs  and  water  company  land,
which are preserved predominantly in their natural
scenic and open  condition  which  may  allow  for
camping; hiking; forestry;  fishing;  wildlife  or
natural resource conservation.
    Sec. 11. Section 23-74 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    There is hereby  created  the  recreation  and
natural heritage trust  program  to:  (1)  Acquire
land that represents  the  ecological diversity of
Connecticut, including natural  features  such  as
riverine, montane, coastal and geologic systems or
other natural areas,  on  behalf  of the state, in
order to ensure  the preservation and conservation
of  such  land   for   recreational,   scientific,
educational, cultural and  aesthetic purposes, (2)
acquire  land  of   unusual  natural  interest  as
additions  to  the   system   of  parks,  forests,
wildlife  and fishery  management  areas,  natural
areas and dedicated  natural area preserves in the
state for the  beneficial use and enjoyment of the
public, (3) acquire  land  identified as essential
habitat  for  endangered  and  threatened  species
pursuant to the  program established under section
26-305, [and] (4)  OFFSET  CARBON DIOXIDE PRODUCED
THROUGH COMBUSTION OF  FOSSIL  FUELS BY PRESERVING
LANDS THAT NATURALLY  ABSORB  IT,  AND  [(4)]  (5)
establish a stewardship account to provide for the
maintenance, protection and  management  of  lands
acquired pursuant to  the  provisions  of sections
23-73 to 23-80, inclusive, and of the species that
inhabit them.
    Sec.  12.  Section   25-33k   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    No source of  water  supply shall be abandoned
by a water  company  without  a  permit  from  the
Commissioner of Public Health. In his decision the
commissioner shall consider the water supply needs
of the water  company  and  shall consult with the
Commissioner  of  Environmental   Protection,  the
Secretary of the  Office  of Policy and Management
and the Department  of Public Utility Control. The
Commissioner of Public Health shall grant a permit
upon a finding that the source shall not be needed
by such water  company for present or future water
supply  and,  in  the  case  of  a  water  company
required to file a water supply plan under section
25-32d, that such abandonment is consistent with a
water supply plan  filed  and approved pursuant to
said section. No  permit  shall  be granted if the
commissioner determines that  the  source would be
necessary for water  supply  by  the company in an
emergency OR THE PROPOSED ABANDONMENT WOULD IMPAIR
THE ABILITY OF  THE  COMPANY  TO  PROVIDE  A PURE,
ADEQUATE AND RELIABLE WATER SUPPLY FOR PRESENT AND
PROJECTED  FUTURE  CUSTOMERS.   As  used  in  this
section, a future  source of water supply shall be
considered  to  be  any  source  of  water  supply
necessary to serve  areas  reasonably  expected to
require service by  the water company for a period
of not more than fifty years after the date of the
application for a permit under this section.
    Sec.  13.  Section   7-131f   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    In making grants-in-aid  for  open  space land
acquisition  or  development  FROM  OUT  OF  FUNDS
AUTHORIZED BEFORE THE  EFFECTIVE DATE OF THIS ACT,
the  Commissioner  of   Environmental   Protection
shall: (a) Seek  to  achieve  a reasonable balance
among all parts  of  the  state  in  the  relative
adequacy of present  areas devoted to recreational
and  conservation  purposes   and   the   relative
anticipated  future  needs  for  additional  areas
devoted to recreational and conservation purposes;
(b) give due  consideration  to  the  special park
requirement needs of  urban  areas;  (c)  wherever
possible, give priority  to  land  which  will  be
utilized    for    multiple    recreational    and
conservation purposes; (d)  give due consideration
to coordination with  the  plans of departments of
the  state and  regional  planning  agencies  with
respect to land  use  or  acquisition and (e) give
primary   consideration   to    the    needs    of
municipalities  that  have  formed  local  housing
partnerships pursuant to the provisions of section
8-336f.
    Sec. 14. (a)  Sections 7-131c and 23-80 of the
general statutes are repealed.
    (b) In codifying  the  provisions of this act,
the  Legislative Commissioners  shall  delete  the
reference  to  section   7-131c  that  appears  in
section 22a-9 of  the  general  statutes  and  the
reference  to  section   7-131c  that  appears  in
sections  12-107a  and   12-107b  of  the  general
statutes.
    Sec. 15. This  act  shall  take effect July 1,
1998.

Approved May 18, 1998