Substitute House Bill No. 5483
          Substitute House Bill No. 5483

              PUBLIC ACT NO. 98-237


AN   ACT   CONCERNING  BONDING  POWERS  FOR  LOCAL
ECONOMIC  DEVELOPMENT   AND   CONCERNING   PRIVATE
ACTIVITY BONDS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section   1.  Section  8-134  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    For   the   purpose   of   carrying   out   or
administering  a  redevelopment  plan   or   other
functions   authorized   under   this  chapter,  a
municipality,   acting   by   and   through    its
redevelopment   agency,   is   hereby  authorized,
subject only to the limitations and procedures set
forth  in this section, to issue from time to time
bonds of the municipality which are payable solely
from and secured by: (a) A pledge of and lien upon
any or all of the income, proceeds,  revenues  and
property  of redevelopment projects, including the
proceeds   of   grants,   loans,    advances    or
contributions  from  the  federal  government, the
state  or  other   source,   including   financial
assistance  furnished  by  the municipality or any
other public body pursuant to section  8-135;  (b)
taxes  or  payments  in lieu of taxes, or both, in
whole or in part, allocated to  and  paid  into  a
special  fund  of the municipality pursuant to the
provisions  of  section  8-134a,  AS  AMENDED   BY
SECTION  2  OF THIS ACT; or (c) any combination of
the methods in subsections (a)  and  (b)  of  this
section.  FOR  THE PURPOSES OF A SPECIFIED PROJECT
ONLY, THE CONNECTICUT DEVELOPMENT  AUTHORITY  MAY,
UPON  A  RESOLUTION  WITH  RESPECT TO SUCH PROJECT
ADOPTED   BY   THE   LEGISLATIVE   BODY   OF   THE
MUNICIPALITY, ISSUE AND ADMINISTER BONDS WHICH ARE
PAYABLE SOLELY FROM AND SECURED BY THE PLEDGE  AND
SECURITY  PROVIDED  FOR IN THIS SECTION SUBJECT TO
THE GENERAL TERMS AND PROVISIONS OF LAW APPLICABLE
TO  THE  ISSUANCE  OF  BONDS  BY  THE  CONNECTICUT
DEVELOPMENT AUTHORITY, EXCEPT THAT THE  PROVISIONS
OF  SUBSECTION  (b)  OF  SECTION  32-23j SHALL NOT
APPLY. Any bonds payable and secured  as  provided
in   this   section   shall  be  authorized  by  a
resolution adopted by the legislative body of  the
municipality,  notwithstanding  the  provisions of
any other statute, local law or charter  governing
the  authorization and issuance of bonds generally
by the municipality. No such resolution  shall  be
adopted until after a public hearing has been held
upon such authorization. Notice  of  such  hearing
shall  be  published not less than five days prior
to such hearing in a newspaper  having  a  general
circulation  in the municipality. Such bonds shall
be issued and sold in such manner;  bear  interest
at such rate or rates, including variable rates to
be determined in such manner as set forth  in  the
proceedings authorizing the issuance of the bonds;
provide for the payment of interest on such dates,
whether before or at maturity; be issued at, above
or below par; mature at such  time  or  times  not
exceeding  forty years from their date in the case
of bonds issued to finance housing and  facilities
related thereto or thirty years from their date in
all other cases; have such rank  or  priority;  be
payable  in  such  medium of payment; be issued in
such   form,   including,   without    limitation,
registered   or   book-entry   form,   carry  such
registration and transfer privileges and  be  made
subject  to purchase or redemption before maturity
at such price or prices and under such  terms  and
conditions,  including  the  condition  that  such
bonds be subject to purchase or redemption on  the
demand  of  the  owner  thereof;  and contain such
other terms and  particulars  as  the  legislative
body of the municipality or the officers delegated
such authority by  the  legislative  body  of  the
municipality body shall determine. The proceedings
under which bonds are authorized to be issued may,
subject to the provisions of the general statutes,
contain  any  or  all  of   the   following:   (1)
Provisions respecting custody of the proceeds from
the sale of the bonds and  any  bond  anticipation
notes,   including   any  requirements  that  such
proceeds  be  held  separate  from   or   not   be
commingled  with  other funds of the municipality;
(2) provisions for the investment and reinvestment
of  bond  proceeds until such proceeds are used to
pay project costs and for the disposition  of  any
excess   bond   proceeds  or  investment  earnings
thereon;  (3)  provisions  for  the  execution  of
reimbursement  agreements,  or similar agreements,
in connection with credit  facilities,  including,
but  not limited to, letters of credit or policies
of  bond  insurance,  remarketing  agreements  and
agreements  for the purpose of moderating interest
rate  fluctuations;   (4)   provisions   for   the
collection,  custody, investment, reinvestment and
use of the pledged  revenues  or  other  receipts,
funds  or  moneys  pledged for payment of bonds as
provided in this section; (5) provisions regarding
the  establishment  and  maintenance  of reserves,
sinking funds and any other funds and accounts  as
shall  be  approved by the legislative body of the
municipality in such amounts as may be established
by  the  legislative  body of the municipality and
the regulation and disposition thereof,  including
requirements  that  any such funds and accounts be
held separate from or not be commingled with other
funds  of  the municipality; (6) covenants for the
establishment  of  maintenance  requirements  with
respect   to   facilities   and   properties;  (7)
provisions for the issuance of additional bonds on
a  parity  with bonds issued prior to the issuance
of such additional bonds, including  establishment
of  coverage  requirements  with  respect  to such
bonds as herein provided; (8) provisions regarding
the  rights  and  remedies  available  to the bond
owners, note  owners  or  any  trustee  under  any
contract,  loan agreement, document, instrument or
trust indenture in case of  a  default,  including
the  right to appoint a trustee to represent their
interests upon occurrence of any event of default,
as   defined  in  any  such  default  proceedings,
provided that if any bonds  or  bond  anticipation
notes  are  secured  by  a  trust  indenture,  the
respective owners of such  bonds  or  notes  shall
have  no  authority  except  as  set forth in such
trust indenture to appoint a separate  trustee  to
represent   them;  and  (9)  other  provisions  or
covenants of like or different character from  the
foregoing  which  are consistent with this section
and which the legislative body of the municipality
determines  in  such  proceedings  are  necessary,
convenient or desirable in order to better  secure
the bonds or bond anticipation notes, or will tend
to make the bonds or bond anticipation notes  more
marketable, and which are in the best interests of
the municipality.  Any  provisions  which  may  be
included  in  proceedings authorizing the issuance
of bonds under this section may be included in  an
indenture  of  trust  duly  approved in accordance
with this section which secures the bonds and  any
notes  issued in anticipation thereof, and in such
case the provisions of  such  indenture  shall  be
deemed  to be a part of such proceedings as though
they were expressly included therein.  Any  pledge
made  by  the  municipality  shall  be  valid  and
binding from the time when the pledge is made, and
any revenues or other receipts, funds or moneys so
pledged   and   thereafter   received    by    the
municipality  shall  be subject immediately to the
lien of such pledge without any physical  delivery
thereof  or  further  act.  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  municipality,
irrespective  of  whether such parties have notice
of such lien. Neither the resolution nor any other
instrument  by  which  a pledge is created need be
recorded. The legislative body of the municipality
may  enter  into  a trust indenture by and between
the municipality and a  corporate  trustee,  which
may be any trust company or bank having the powers
of  a  trust  company  within   or   without   the
municipality.  Such  trust  indenture  may contain
such provisions for protecting and  enforcing  the
rights  and  remedies  of the bond owners and note
owners as may be reasonable and proper and not  in
violation  of  law,  including  covenants  setting
forth the duties of the municipality  in  relation
to  the  exercise  of  its powers pursuant to this
section  and   the   custody,   safeguarding   and
application  of  all  moneys. The municipality may
provide by such trust indenture for the payment of
the  pledged  revenues or other receipts, funds or
moneys to the trustee under such  trust  indenture
or  to any other depository, and for the method of
disbursement thereof,  with  such  safeguards  and
restrictions  as  it  may  determine. All expenses
incurred in carrying out such trust indenture  may
be  treated as project costs. Such bonds shall not
be   included   in   computing    the    aggregate
indebtedness  of  the  municipality,  provided, if
such bonds are made payable, in whole or in  part,
from  funds  contracted  to  be  advanced  by  the
municipality, the aggregate amount of  such  funds
not  yet  appropriated  to  such  purpose shall be
included in computing the  aggregate  indebtedness
of  the  municipality.  As  used  in this section,
"bonds"  means  any  bonds,  including   refunding
bonds,  notes, interim certificates, debentures or
other obligations.
    Sec.   2.   Section   8-134a  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    Any  redevelopment  plan authorized under this
chapter  or  any   proceedings   authorizing   the
issuance of bonds under this chapter may contain a
provision that taxes, if any, identified  in  such
plan  or  such  authorizing proceedings and levied
upon taxable real OR PERSONAL property,  OR  BOTH,
in  a redevelopment project each year, or payments
in lieu  of  such  taxes  authorized  pursuant  to
chapter 114, or both, by or for the benefit of any
one or more municipalities,  districts,  or  other
public taxing agencies after the effective date of
the ordinance approving the redevelopment plan  or
such BOND authorizing proceedings, as the case may
be, shall be  divided  as  follows:  (1)  In  each
fiscal  year that portion of the taxes or payments
in lieu of taxes, or both, which would be produced
by  applying  the then current tax rate of each of
the taxing  agencies  to  the  total  sum  of  the
assessed  value  of  the  taxable  property in the
redevelopment project on  the  effective  date  of
such  ordinance  or  the  date of such authorizing
proceedings, as the case may be, or  on  any  date
between such two dates which is identified in such
proceedings,  shall  be  allocated  to  and   when
collected  shall  be  paid  into  the funds of the
respective taxing agencies in the same  manner  as
taxes  by or for said taxing agencies on all other
property are paid; and (2)  that  portion  of  the
assessed  taxes  or  payments in lieu of taxes, or
both, each fiscal year in  excess  of  the  amount
referred  to  in  subdivision  (1) of this section
shall be allocated to and when collected shall  be
paid  into  a  special fund of the municipality OR
THE CONNECTICUT DEVELOPMENT AUTHORITY AS ISSUER OF
SUCH  BONDS  to be used in each fiscal year, first
to pay the principal of and interest due  in  such
fiscal  year  on  loans,  moneys  advanced  to, or
indebtedness, whether funded,  refunded,  assumed,
or otherwise, incurred by such municipality OR THE
CONNECTICUT DEVELOPMENT  AUTHORITY  AS  ISSUER  OF
SUCH  BONDS to finance or refinance in whole or in
part, such redevelopment project, and then, at the
option  of  the  municipality  OR  THE CONNECTICUT
DEVELOPMENT AUTHORITY AS ISSUER OF SUCH BONDS,  to
purchase  bonds  issued  for the project which has
generated the increments in taxes or  payments  in
lieu  of  taxes  and  then,  at  the option of the
municipality  OR   THE   CONNECTICUT   DEVELOPMENT
AUTHORITY  AS  ISSUER  OF SUCH BONDS, to reimburse
the  provider  of  or  reimbursement  party   with
respect to any guarantee, letter of credit, policy
of bond  insurance,  funds  deposited  in  a  debt
service   reserve   fund,   funds   deposited   as
capitalized interest or other  credit  enhancement
device  used  to secure payment of debt service on
any  bonds,  notes  or  other  indebtedness  OF  A
MUNICIPALITY   OR   THE   CONNECTICUT  DEVELOPMENT
AUTHORITY AS ISSUER OF SUCH BONDS issued  pursuant
to  section 8-134, AS AMENDED BY SECTION 1 OF THIS
ACT, to finance or  refinance  such  redevelopment
project,  to  the  extent  of any payments of debt
service made therefrom. Unless and until the total
assessed  valuation  of  the taxable property in a
redevelopment project exceeds the  total  assessed
value  of  the taxable property in such project as
shown by the last assessment list, referred to  in
subdivision  (1) of this section, all of the taxes
levied and collected and all of  the  payments  in
lieu  of  taxes due and collected upon the taxable
property in such redevelopment  project  shall  be
paid  into  the  funds  of  the  respective taxing
agencies.   When   such   loans,   advances,   and
indebtedness,  if  any,  and interest thereon, and
such debt service reimbursement to the provider of
or   reimbursement  party  with  respect  to  such
credits, have  been  paid,  in  full,  all  moneys
thereafter received from taxes or payments in lieu
of taxes, or both, upon the  taxable  property  in
such  redevelopment project shall be paid into the
funds of the respective  taxing  agencies  in  the
same  manner  as  taxes  on all other property are
paid.
    Sec.  3. Section 8-192 of the general statutes
is amended by adding subsection (d) as follows:
    (NEW)  (d) For the purposes of carrying out or
administering   a   specified   development   plan
authorized  under  this  chapter,  the Connecticut
Development Authority may, upon a resolution  with
respect to such project adopted by the legislative
body of the  municipality,  issue  and  administer
bonds which are payable solely from and secured by
the pledge and security provided for in subsection
(a)  of  this section subject to the general terms
and provisions of law applicable to  the  issuance
of bonds by the Connecticut Development Authority,
except that the provisions of  subsection  (b)  of
section 32-23j shall not apply.
    Sec.   4.   Section   8-192a  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    Any  development  plan  authorized  under this
chapter  or  any   proceedings   authorizing   the
issuance of bonds under this chapter may contain a
provision that taxes, if any, identified  in  such
plan  or  such  authorizing  proceeding and levied
upon taxable real OR PERSONAL property,  OR  BOTH,
in  a development project each year or payments in
lieu of such taxes authorized pursuant to  chapter
114,  or both, by or for the benefit of any one or
more municipalities,  districts  or  other  public
taxing  agencies after adoption of the development
plan  as  provided  by  section  8-191   or   such
authorizing proceedings, as the case may be, shall
be divided as follows: (a)  In  each  fiscal  year
that  portion  of the taxes or payments in lieu of
taxes,  or  both,  which  would  be  produced   by
applying  the then current tax rate of each of the
taxing agencies to the total sum of  the  assessed
value  of  the taxable property in the development
project on the effective date of such adoption  or
the  date  of such authorizing proceedings, as the
case may be, or on any date between such two dates
which  is identified in such proceedings, shall be
allocated to and when collected shall be paid into
the funds of the respective taxing agencies in the
same  manner  as  taxes  by  or  for  said  taxing
agencies  on  all other property are paid; and (b)
that portion of the assessed taxes or the payments
in  lieu  of  taxes,  or both, each fiscal year in
excess of the amount referred  to  in  subdivision
(a) of this section shall be allocated to and when
collected shall be paid into a special fund of the
municipality   OR   THE   CONNECTICUT  DEVELOPMENT
AUTHORITY AS ISSUER OF SUCH BONDS to  be  used  in
each  fiscal  year,  first to pay the principal of
and interest due in such  fiscal  year  on  loans,
moneys   advanced  to,  or  indebtedness,  whether
funded, refunded, assumed, or otherwise,  incurred
by    such   municipality   OR   THE   CONNECTICUT
DEVELOPMENT AUTHORITY AS ISSUER OF SUCH  BONDS  to
finance  or  refinance  in  whole or in part, such
development project, and then, at  the  option  of
the  municipality  OR  THE CONNECTICUT DEVELOPMENT
AUTHORITY AS ISSUER OF  SUCH  BONDS,  to  purchase
bonds  issued  for the project which has generated
the tax increments or payments in  lieu  of  taxes
and then, at the option of the municipality OR THE
CONNECTICUT DEVELOPMENT  AUTHORITY  AS  ISSUER  OF
SUCH  BONDS,  to  reimburse  the  provider  of  or
reimbursement party with respect to any guarantee,
letter  of credit, policy of bond insurance, funds
deposited in a debt service  reserve  fund,  funds
deposited  as capitalized interest or other credit
enhancement device used to secure payment of  debt
service  on any bonds, notes or other indebtedness
issued pursuant to section 8-192,  AS  AMENDED  BY
SECTION  3  OF  THIS  ACT, to finance or refinance
such development project, to  the  extent  of  any
payments  of  debt  service made therefrom. Unless
and until the  total  assessed  valuation  of  the
taxable  property in a development project exceeds
the total assessed value of the  taxable  property
in  such  project  as shown by the last assessment
list  referred  to  in  subdivision  (a)  of  this
section, all of the taxes levied and collected and
all of the payments  in  lieu  of  taxes  due  and
collected   upon  the  taxable  property  in  such
development project shall be paid into  the  funds
of  the  respective  taxing  agencies.  When  such
loans, advances, and  indebtedness,  if  any,  and
interest    thereon,   and   such   debt   service
reimbursement to the provider of or  reimbursement
party  with  respect  to  such credit enhancement,
have been paid  in  full,  all  moneys  thereafter
received  from taxes or payments in lieu of taxes,
or  both,  upon  the  taxable  property  in   such
development  project  shall be paid into the funds
of the respective  taxing  agencies  in  the  same
manner as taxes on all other property are paid.
    Sec.   5.   Section   32-227  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)   For  the  purpose  of  carrying  out  or
administering a municipal or business  development
project, (1) a municipality, acting by and through
its  implementing  agency,  may,  subject  to  the
limitations  and  procedures  set  forth  in  this
section, issue from time  to  time  bonds  of  the
municipality  AND  (2) THE CONNECTICUT DEVELOPMENT
AUTHORITY MAY, UPON A RESOLUTION  ADOPTED  OF  THE
LEGISLATIVE  BODY  OF THE MUNICIPALITY, ISSUE FROM
TIME TO TIME BONDS  which,  IN  EITHER  CASE,  are
payable  solely  from  and secured by: [(1)] (A) A
pledge of and lien upon any or all of the  income,
proceeds,  revenues  and  property  of development
projects, including the proceeds of grants, loans,
advances   or   contributions   from  the  federal
government, the state or other  source,  including
financial assistance furnished by the municipality
or any other  public  body  pursuant  to  sections
32-220  to  32-234,  inclusive; [(2)] (B) taxes or
payments in lieu of taxes, or both, in whole or in
part, allocated to and paid into a special fund of
the municipality OR  THE  CONNECTICUT  DEVELOPMENT
AUTHORITY pursuant to the provisions of subsection
(c) of this section; or [(3)] (C) any  combination
of the methods in [subdivisions (1)] SUBPARAGRAPHS
(A) and [(2)]  (B)  of  this  section.  Any  bonds
payable and secured as provided in this subsection
shall be authorized and the appropriation  of  the
proceeds  thereof  approved  by  AND  SUBJECT TO a
resolution adopted by the legislative body of  the
municipality,  notwithstanding  the  provisions of
any other statute, local law or charter  governing
the  authorization  and  issuance of bonds and the
appropriation of the proceeds thereof generally by
the  municipality.  No  such  resolution  shall be
adopted until after a public hearing has been held
upon  such  authorization.  Notice of such hearing
shall be published not less than five  days  prior
to  such  hearing  in a newspaper having a general
circulation in the municipality. [Such]  ANY  SUCH
bonds   OF   A  MUNICIPALITY  OR  THE  CONNECTICUT
DEVELOPMENT AUTHORITY shall be issued and sold  in
such  manner; bear interest at such rate or rates,
including variable rates; provide for the  payment
of  interest  on  such dates, whether before or at
maturity; be issued at, above or below par; mature
at  such  time or times not exceeding thirty years
from their date; have such rank  or  priority;  be
payable  in  such  medium of payment; be issued in
such   form,   including,   without    limitation,
registered   or   book-entry   form;   carry  such
registration and transfer privileges and  be  made
subject  to purchase or redemption before maturity
at such price or prices and under such  terms  and
conditions,  including  the  condition  that  such
bonds be subject to purchase or redemption on  the
demand  of  the  owner  thereof;  and contain such
other terms and  particulars  as  the  legislative
body of the municipality or the officers delegated
such authority by  the  legislative  body  of  the
municipality  shall  determine.  ANY SUCH BONDS OF
THE CONNECTICUT  DEVELOPMENT  AUTHORITY  SHALL  BE
ISSUED  AND  SOLD IN THE MANNER AND SUBJECT TO THE
GENERAL TERMS AND PROVISIONS OF LAW APPLICABLE  TO
ISSUANCE  OF  BONDS BY THE CONNECTICUT DEVELOPMENT
AUTHORITY,   EXCEPT   THAT   THE   PROVISIONS   OF
SUBSECTION  (b) OF SECTION 32-23j SHALL NOT APPLY.
The proceedings under which bonds  are  authorized
to  be  issued  may,  subject to the provisions of
indenture or to any  other  depository  agreement,
provide  for  the  method of disbursement thereof,
with such safeguards and restrictions  as  it  may
determine.  Any pledge made by the municipality OR
THE CONNECTICUT DEVELOPMENT  AUTHORITY  FOR  BONDS
ISSUED  AS  PROVIDED  IN  THIS SUBSECTION shall be
valid and binding from the time when the pledge is
made, and any revenues or other receipts, funds or
moneys so pledged and thereafter received  by  the
municipality   OR   THE   CONNECTICUT  DEVELOPMENT
AUTHORITY shall be subject to  the  lien  of  such
pledge  without  any  physical delivery thereof or
further act. 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    municipality    OR   CONNECTICUT
DEVELOPMENT  AUTHORITY,  irrespective  of  whether
such parties have notice of such lien. Neither the
resolution nor any other  instrument  by  which  a
pledge  is  created need be recorded. All expenses
incurred in carrying out  such  financing  may  be
treated  as project costs. Such bonds shall not be
included in computing the  aggregate  indebtedness
of  the  municipality, provided, if such bonds are
made payable, in whole  or  in  part,  from  funds
contracted to be advanced by the municipality, the
aggregate   amount   of   such   funds   not   yet
appropriated  to such purpose shall be included in
computing  the  aggregate  indebtedness   of   the
municipality.  As  used  in  this section, "bonds"
means any bonds, including refunding bonds, notes,
temporary  notes, interim certificates, debentures
or other obligations. Temporary  notes  issued  in
accordance with this subsection in anticipation of
the receipt of the proceeds of bond issues may  be
issued  for  a period of not more than five years,
and notes issued for a shorter period of time  may
be  renewed  by the issue of other notes, provided
the period from the date of the original notes  to
the  maturity  of the last notes issued in renewal
thereof shall not exceed five years.
    (b)   For  the  purpose  of  carrying  out  or
administering a municipal or business  development
project, a municipality or its implementing agency
may  accept  grants,  advances,  loans  or   other
financial  assistance from the federal government,
the state or other source and may do any  and  all
things  necessary  or  desirable  to  secure  such
financial aid. To assist any  project  located  in
the  area  in  which  it is authorized to act, any
public body, including the  state,  or  any  city,
town, borough, authority, district, subdivision or
agency of the state, may, upon such  terms  as  it
determines, furnish service or facilities, provide
property, lend or contribute funds, and  take  any
other action of a character which it is authorized
to perform for other purposes. To obtain funds for
the  temporary  and  definitive  financing  of any
project, a  municipality  or  implementing  agency
may,  in addition to other action authorized under
this  act  or  other  law,   issue   its   general
obligation  bonds, notes, temporary notes or other
obligations   secured   by   a   pledge   of   the
municipality's  full faith and credit. Such bonds,
notes, temporary notes and other obligations shall
be  authorized in accordance with the requirements
for  the   authorization   of   such   obligations
generally    by    the    municipality   and   the
authorization, issuance and sale thereof shall  be
subject   to  the  limitations  contained  in  the
general  statutes,  including  provisions  on  the
limitation  of  the  aggregate indebtedness of the
municipality. Notwithstanding  the  provisions  of
sections  7-264,  7-378  and 7-378a, and any other
public or special act or charter or bond ordinance
or  bond  resolution  which limits the issuance or
renewal of temporary notes issued in  anticipation
of the receipt of the proceeds of bond issues to a
period of time of less than five  years  from  the
date of the original notes or requires a reduction
in the principal amount of such notes  or  renewal
notes  prior  to the fifth anniversary of the date
of the original notes, such temporary notes may be
issued  for  a period of not more than five years,
and notes issued for a shorter period of time  may
be  renewed  by the issue of other notes, provided
the period from the date of the original notes  to
the  maturity  of the last notes issued in renewal
thereof shall not exceed five years.
    (c)  Any  development  plan  authorized  under
sections 32-220 to 32-234, inclusive, AS  AMENDED,
or  any  proceedings  authorizing  the issuance of
bonds under said sections may contain a  provision
that  taxes,  if  any,  identified in such plan or
such  authorizing  proceedings  and  levied   upon
taxable  real  OR PERSONAL property, OR BOTH, in a
project each year or  payments  in  lieu  of  such
taxes authorized pursuant to chapter 114, or both,
by  or  for  the  benefit  of  any  one  or   more
municipalities,  districts  or other public taxing
agencies, as the case may be, shall be divided  as
follows:  (1)  In each fiscal year that portion of
the taxes or payments in lieu of taxes,  or  both,
which  would  be  produced  by  applying  the then
current tax rate of each of the taxing agencies to
the total sum of the assessed value of the taxable
property in the project on the effective  date  of
such  adoption  or  the  date  of such authorizing
proceedings, as the case may be, or  on  any  date
between such two dates which is identified in such
proceedings,  shall  be  allocated  to  and   when
collected  shall  be  paid  into  the funds of the
respective taxing agencies in the same  manner  as
taxes  by or for said taxing agencies on all other
property are paid; and (2)  that  portion  of  the
assessed  taxes  or the payments in lieu of taxes,
or both, each fiscal year in excess of the  amount
referred  to in subdivision (1) of this subsection
shall be allocated to and when collected shall  be
paid  into  a  special fund of the municipality OR
THE CONNECTICUT DEVELOPMENT AUTHORITY to  be  used
in each fiscal year, first to pay the principal of
and interest due in such  fiscal  year  on  loans,
moneys   advanced  to,  or  indebtedness,  whether
funded, refunded, assumed, or otherwise,  incurred
by    such   municipality   OR   THE   CONNECTICUT
DEVELOPMENT AUTHORITY to finance or  refinance  in
whole  or  in part, such project, and then, at the
option of  the  municipality  OR  THE  CONNECTICUT
DEVELOPMENT  AUTHORITY,  to  purchase bonds issued
for  the  project  which  has  generated  the  tax
increments  or payments in lieu of taxes and then,
at  the  option  of  the   municipality   OR   THE
CONNECTICUT  DEVELOPMENT  AUTHORITY,  to reimburse
the  provider  of  or  reimbursement  party   with
respect to any guarantee, letter of credit, policy
of bond  insurance,  funds  deposited  in  a  debt
service   reserve   fund,   funds   deposited   as
capitalized interest or other  credit  enhancement
device  used  to secure payment of debt service on
any bonds,  notes  or  other  indebtedness  issued
pursuant  to  this section to finance or refinance
such project, to the extent  of  any  payments  of
debt  service made therefrom. Unless and until the
total assessed valuation of the  taxable  property
in  a  project exceeds the total assessed value of
the taxable property in such project as  shown  by
the   last   assessment   list   referred   to  in
subdivision (1) of this  subsection,  all  of  the
taxes levied and collected and all of the payments
in lieu  of  taxes  due  and  collected  upon  the
taxable  property  in  such  project shall be paid
into the funds of the respective taxing  agencies.
When  such  loans,  advances, and indebtedness, if
any, and interest thereof, and such  debt  service
reimbursement  to the provider of or reimbursement
party with respect  to  such  credit  enhancement,
have  been  paid  in  full,  all moneys thereafter
received from taxes or payments in lieu of  taxes,
or   both,  upon  the  taxable  property  in  such
development project shall be paid into  the  funds
of  the  respective  taxing  agencies  in the same
manner as taxes on all other property are paid.
    (d)    Notwithstanding   the   provisions   of
subsection (a) or (b)  of  this  section  and  any
other  public  or  special  act or charter or bond
ordinance or  bond  resolution  which  limits  the
renewal of temporary notes issued pursuant to said
subsections in anticipation of the receipt of  the
proceeds  of  bond  issues  to five years from the
date of the original notes, any  municipality  may
renew  temporary  notes  in  accordance  with  the
provisions  of  this  section  for  an  additional
period of not more than four years from the end of
such  five-year  period.  The  officers  or  board
authorized  to  issue  the  bonds or determine the
particulars of the bonds may  adopt  a  resolution
authorizing  the  renewal  of  temporary notes for
such  additional  period   under   the   following
conditions:  (1)  All  project  grant payments and
bond sale  proceeds  received  shall  be  promptly
applied  toward project costs or toward payment of
such temporary notes as the same shall become  due
and  payable  or  shall  be deposited in trust for
such purposes; (2) no later than the end  of  each
period  of  twelve  months  after  the end of such
five-year period a portion of such temporary notes
equal   to   at   least   one-twentieth   of   the
municipality's estimated cost of the project shall
be retired from funds other than project grants or
land sale  proceeds  or  note  proceeds;  (3)  the
interest on all temporary notes renewed after such
five-year period shall be paid  from  funds  other
than  project grants or land sale proceeds or note
proceeds; (4) the principal amount  of  each  bond
issue  when  sold  shall be reduced by the amounts
spent under subdivision (2) of this  section,  and
the  principal  of  such  bonds  shall  be paid in
annual instalments commencing no  later  than  one
year  from  the date of issue; and (5) the maximum
authorized term of the bonds when  sold  shall  be
reduced by not less than the number of months from
the end of such five-year period to  the  date  of
issue.  Any  anticipated  federal or state project
grants or  land  sale  proceeds  may  be  used  in
computing  the municipality's cost of the project.
Any  municipality  in  which  such  resolution  is
passed shall include in its annual budget or shall
otherwise appropriate sufficient funds to make the
payments  required  by subdivisions (2) and (3) of
this subsection.
    Sec. 6. (NEW)  (a)  Two or more municipalities
may jointly issue bonds from time to time at their
discretion,  subject  to   the   approval  of  the
legislative  body of  each  municipality  for  the
purpose of paying  all  or any part of the cost of
any project or  activity, including acquisition of
necessary  land and  equipment  therefor,  entered
into jointly. The  municipalities  may  issue such
types of bonds  as  they may determine, including,
without limiting the  generality of the foregoing,
bonds payable as  to  principal  and interest: (1)
From  their revenues  generally;  (2)  exclusively
from  the income  and  revenues  of  a  particular
project; or (3)  exclusively  from  the income and
revenues of certain  designated  projects, whether
or not they  are financed in whole or in part from
the proceeds of  such bonds. Any such bonds may be
additionally secured by  a  pledge of any grant or
contribution  from a  participating  municipality,
the state or  any political subdivision, agency or
instrumentality thereof, any federal agency or any
private corporation, copartnership, association or
individual, or a  pledge of any income or revenues
of  the  municipalities,  or  a  mortgage  on  any
project or other  property  of the municipalities.
Whenever and for  so  long  as  the municipalities
have issued and have outstanding bonds pursuant to
sections 10 to  15,  inclusive,  of  this  act the
municipalities  shall  fix,   charge  and  collect
rates, rents, fees  and  other  charges. No person
executing the bonds  shall be liable personally on
the bonds by  reason  of the issuance thereof. The
bonds and other obligations of the municipalities,
and such bonds  and  obligations shall so state on
their face, shall  not  be  a debt of the state or
any  political  subdivision   thereof  except  the
municipalities issuing such  bonds,  and no person
other  than the  municipalities  shall  be  liable
thereon, nor shall  such  bonds  or obligations be
payable out of  any funds or properties other than
those of a  participating  municipality. Except to
the extent and  for  the purpose therein expressly
provided  by other  laws,  such  bonds  shall  not
constitute an indebtedness  within  the meaning of
any statutory limitation  on  the  indebtedness of
any   participating   municipality.    Bonds    of
participating municipalities are  declared  to  be
issued for an  essential  public  and governmental
purpose.  In anticipation  of  the  sale  of  such
revenue  bonds  the   municipalities   may   issue
negotiable bond anticipation  notes  and may renew
the  same from  time  to  time,  but  the  maximum
maturity  of any  such  note,  including  renewals
thereof, shall not exceed five years from the date
of issue of the original note. Such notes shall be
paid  from  any  revenues  of  the  municipalities
available therefor and  not  otherwise pledged, or
from the proceeds  of sale of the revenue bonds of
the municipalities in  anticipation  of which they
were issued. The notes shall be issued in the same
manner as the  revenue  bonds.  Such notes and the
resolution or resolutions authorizing the same may
contain any provisions,  conditions or limitations
which a bond  resolution of the municipalities may
contain.
    (b) Bonds of  the municipalities may be issued
as  serial  bonds   or   as  term  bonds,  or  the
municipalities,  in their  discretion,  may  issue
bonds of both  types. Bonds shall be authorized by
resolution of the  members of the municipality and
shall bear such date or dates, mature at such time
or times, not  exceeding  fifty  years  from their
respective dates, bear  interest  at  such rate or
rates,  or  have  provisions  for  the  manner  of
determining such rate  or  rates,  payable at such
time or times,  be  in  such  denominations, be in
such form, either coupon or registered, carry such
registration  privileges,  be   executed  in  such
manner, be payable  in  lawful money of the United
States of America  at such place or places, and be
subject  to such  terms  of  redemption,  as  such
resolution or resolutions may provide. The revenue
bonds or notes  may  be  sold at public or private
sale   for   such   price   or   prices   as   the
municipalities     shall    determine.     Pending
preparation   of   the   definitive   bonds,   the
municipalities  may  issue   interim  receipts  or
certificates which shall  be  exchanged  for  such
definitive bonds.
    (c) Any resolution  or resolutions authorizing
any revenue bonds  or  any  issue of revenue bonds
may contain provisions,  which  shall be a part of
the contract with the holders of the revenue bonds
to be authorized,  as  to: (1) Pledging all or any
part  of  the   revenues   of  a  project  or  any
revenue-producing contract or  contracts  made  by
the    municipalities   with    any    individual,
partnership, corporation or  association  or other
body, public or  private, to secure the payment of
the revenue bonds  or  of  any particular issue of
revenue bonds, subject  to  such  agreements  with
bondholders as may  then  exist;  (2) the rentals,
fees and other  charges  to  be  charged,  and the
amounts to be raised in each year thereby, and the
use  and disposition  of  the  revenues;  (3)  the
setting aside of  reserves  or  sinking  funds  or
other funds or  accounts as the municipalities may
establish  and  the   regulation  and  disposition
thereof,  including  requirements  that  any  such
funds and accounts be held separate from or not be
commingled with other funds of the municipalities;
(4) limitations on the right of the municipalities
or its agent  to  restrict and regulate the use of
the project; (5)  limitations  on  the  purpose to
which the proceeds of sale of any issue of revenue
bonds then or  thereafter  to  be  issued  may  be
applied and pledging  such  proceeds to secure the
payment of the  revenue  bonds or any issue of the
revenue bonds; (6)  limitations on the issuance of
additional bonds; the  terms upon which additional
bonds may be  issued and secured; the refunding of
outstanding bonds; (7)  the  procedure, if any, by
which the terms  of  any contract with bondholders
may be amended  or  abrogated, the amount of bonds
the holders of which must consent thereto, and the
manner in which  such  consent  may  be given; (8)
limitations on the  amount  of moneys derived from
the  project  to   be   expended   for  operating,
administrative   or   other    expenses   of   the
municipalities; (9) defining the acts or omissions
to act which  shall  constitute  a  default in the
duties of the  municipalities  to  holders  of its
obligations and providing  the rights and remedies
of such holders  in  the  event of a default; (10)
the mortgaging of  a  project and the site thereof
for the purpose  of  securing the bondholders; and
(11) provisions for the execution of reimbursement
agreements  or similar  agreements  in  connection
with credit facilities  including  but not limited
to,  letters  of   credit   or  policies  of  bond
insurance, remarketing agreements  and  agreements
for  the  purpose   of  moderating  interest  rate
fluctuations.
    (d)  If  any  officer  whose  signature  or  a
facsimile of whose signature appears on any  bonds
or  coupons  ceases  to  be  such  officer  before
delivery of such bonds,  such  signature  or  such
facsimile   shall   nevertheless   be   valid  and
sufficient for all purposes the same as if he  had
remained  in  office until such delivery. All such
bonds shall be deemed to be negotiable instruments
under the provisions of the general statutes.
    (e)  Bonds may be issued without obtaining the
consent of any commission, board, bureau or agency
of  the state or of any political subdivision, and
without any other proceedings or the happening  of
other conditions or things than those proceedings,
conditions  or  things  which   are   specifically
required by said sections.
    (f)  The  municipalities  shall have power out
of any funds available therefor  to  purchase  its
bonds  or  notes.  The  municipalities  may  hold,
pledge, cancel or resell such  bonds,  subject  to
and    in    accordance   with   agreements   with
bondholders.
    (g)  The  municipalities shall cause a copy of
any bond resolution adopted by it to be filed  for
public  inspection in its office and in the office
of the clerk of  each  participating  municipality
and  may  thereupon cause to be published at least
once in a newspaper published  or  circulating  in
each  participating  municipality a notice stating
the fact and date of such adoption and the  places
where  such  bond resolution has been so filed for
public inspection and also the date of  the  first
publication  of  such notice and also stating that
any action or proceeding of any kind or nature  in
any  court  questioning  the  validity  or  proper
authorization of bonds provided for  by  the  bond
resolution,  or  the  validity  of  any covenants,
agreements or contracts provided for by  the  bond
resolution,  shall be commenced within twenty days
after the first publication of such notice. If any
such  notice  is  published  and  if  no action or
proceeding  questioning  the  validity  or  proper
authorization  of  bonds  provided for by the bond
resolution referred to  in  such  notice,  or  the
validity of any covenants, agreements or contracts
provided for by the bond resolution  is  commenced
or  instituted  within twenty days after the first
publication of said notice, then all residents and
taxpayers   and   owners   of   property  in  each
participating municipality and all  other  persons
shall   be  forever  barred  and  foreclosed  from
instituting or commencing any action or proceeding
in  any court, or from pleading any defense to any
action or proceeding, questioning the validity  or
proper   authorization   of  such  bonds,  or  the
validity  of   such   covenants,   agreements   or
contracts,  and  said bonds, covenants, agreements
and contracts shall be conclusively deemed  to  be
valid  and  binding obligations in accordance with
their terms and tenor.
    Sec.  7.  (NEW)   In  the  discretion  of  the
municipalities any bonds  issued  under sections 6
to 11, inclusive,  of this act may be secured by a
trust indenture by  way  of  conveyance,  deed  of
trust or mortgage  of  any  project  or  any other
property of the  municipalities,  whether  or  not
financed in whole  or in part from the proceeds of
such bonds, or by a trust agreement by and between
the municipalities and  a corporate trustee, which
may be any trust company or bank having the powers
of a trust  company within or without the state or
by both such conveyance, deed of trust or mortgage
and  indenture  or  trust  agreement.  Such  trust
indenture or agreement may pledge or assign any or
all fees, rents  and  other charges to be received
or proceeds of  any contract or contracts pledged,
and may convey  or  mortgage  any  property of the
municipalities. Such trust  indenture or agreement
may contain such  provisions  for  protecting  and
enforcing  the  rights   and   remedies   of   the
bondholders as may  be  reasonable  and proper and
not in violation  of  law,  including particularly
such   provisions   as   have   hereinabove   been
specifically  authorized to  be  included  in  any
resolution or resolutions  of  the  municipalities
authorizing the issue  of bonds. Any bank or trust
company incorporated under  the  laws of the state
may act as  depository  of  the  proceeds  of such
bonds or of  revenues  or  other  moneys  and  may
furnish such indemnifying  bonds  or  pledge  such
securities   as   may    be    required   by   the
municipalities. Such trust indenture may set forth
the rights and  remedies of the bondholders and of
the trustee, and may restrict the individual right
of  action by  bondholders.  In  addition  to  the
foregoing, such trust  indenture  or agreement may
contain    such   other    provisions    as    the
municipalities may deem  reasonable and proper for
the  security of  the  bondholders.  All  expenses
incurred in carrying  out  the  provisions of such
trust indenture or  agreement  may be treated as a
part of the cost of a project.
    Sec. 8. (NEW)  Any  holder  of  bonds,  notes,
certificates  or  other   evidences  of  borrowing
issued under the  provisions  of  sections to 6 to
11, inclusive, of  this  act  or  of  any  of  the
coupons  appertaining  thereto,  and  the  trustee
under any trust  indenture or agreement, except to
the  extent  the   rights   herein  given  may  be
restricted by such  trust  indenture or agreement,
may, either at  law or in equity, by suit, action,
injunction, mandamus or other proceedings, protect
and  enforce  any   and   all   rights  under  the
provisions of the  general  statutes or granted by
said sections or  under  such  trust  indenture or
agreement  or  the   resolution   authorizing  the
issuance of such bonds, notes or certificates, and
may enforce and  compel  the  performance  of  all
duties required by  said sections or by such trust
indenture  or  agreement   or   resolution  to  be
performed by the  municipalities or by any officer
or agent thereof,  including  the fixing, charging
and collection of fees, rents and other charges.
    Sec.  9. (NEW)  The  exercise  of  the  powers
granted by sections  6  to  11, inclusive, of this
act shall be  in  all  respects for the benefit of
the inhabitants of  the state, for the increase of
their commerce and  for  the  promotion  of  their
safety,   health,   welfare,    convenience    and
prosperity, and as  the  operation and maintenance
of  any  project   which  the  municipalities  may
undertake  constitute  the   performance   of   an
essential governmental function, no municipalities
shall be required  to pay any taxes or assessments
upon any project  acquired  and  constructed by it
under the provisions  of  said  sections;  and the
bonds, notes, certificates  or  other evidences of
debt issued under the provisions of said sections,
their transfer and the income therefrom, including
any profit made  on the sale thereof, shall at all
times be free  and  exempt  from  taxation  by the
state and by any political subdivision thereof but
the interest on such bonds, notes, certificates or
other evidences of  debt  shall be included in the
computation of any excise or franchise tax.
    Sec.   10.   (NEW)   Bonds   issued   by   the
municipalities under the  provisions of sections 6
to 11, inclusive,  of this act shall be securities
in which all  public officers and public bodies of
the  state and  its  political  subdivisions,  all
insurance  companies,  trust   companies,  banking
associations, investment companies  and executors,
administrators, trustees and other fiduciaries may
properly  and  legally   invest  funds,  including
capital in their  control  or  belonging  to them.
Such bonds shall  be securities which may properly
and legally be  deposited with and received by any
state  or  municipal  officer  or  any  agency  or
political subdivision of the state for any purpose
for which the  deposit  of bonds or obligations is
now or may hereafter be authorized by law.
    Sec. 11. (NEW)  For  the purpose of aiding the
planning,  undertaking, acquisition,  construction
or operation of  any  project for which bonds have
been issued under  sections 6 to 11, inclusive, of
this  act,  any  participating  municipality  may,
pursuant to resolution  adopted by its legislative
body in the  manner  provided  for  adoption  of a
resolution authorizing bonds  of such municipality
and with or  without  consideration  and upon such
terms and conditions  as  may  be agreed to by and
between   the   municipality    and    the   other
municipalities  issuing  bonds  for  the  project,
unconditionally guarantee the  punctual payment of
the principal of  and interest on any bonds of the
municipalities  and  pledge  the  full  faith  and
credit of the municipality to the payment thereof.
Any guaranty of  bonds  of the municipalities made
pursuant to this  section  shall  be  evidenced by
endorsement thereof on such bonds, executed in the
name of the municipality and on its behalf by such
officer  thereof  as  may  be  designated  in  the
resolution  authorizing such  guaranty,  and  such
municipality  shall thereupon  and  thereafter  be
obligated to pay  the principal of and interest on
said bonds in  the  same  manner  and  to the same
extent as in  the  case  of bonds issued by it. As
part of the  guarantee  of  the  municipality  for
payment of principal  and  interest  on the bonds,
the municipality may  pledge to and agree with the
owners of bonds issued under this chapter and with
those persons who  may  enter  into contracts with
the municipality or  such  other municipalities or
any successor agency pursuant to the provisions of
this chapter that  it  will not limit or alter the
rights  thereby  vested  in  the  bondowners,  the
municipalities or any contracting party until such
bonds, together with  the  interest  thereon,  are
fully met and  discharged  and  such contracts are
fully performed on  the  part of the municipality,
provided nothing in this subsection shall preclude
such limitation or alteration if and when adequate
provision shall be  made by law for the protection
of the owners of such bonds of the municipality or
such other municipalities  or  those entering into
such   contracts  with   the   municipality.   The
municipalities  are  authorized  to  include  this
pledge and undertaking  for  the  municipality  in
such bonds or contracts. To the extent provided in
such agreement or  agreements,  the obligations of
the municipality thereunder  shall  be  obligatory
upon  the municipality  and  the  inhabitants  and
property thereof, and  thereafter the municipality
shall appropriate in  each year during the term of
such agreement, and there shall be available on or
before the date  when  the  same  are  payable, an
amount of money which, together with other revenue
available for such purpose, shall be sufficient to
pay such principal  and  interest guaranteed by it
and payable thereunder  in  that  year,  and there
shall be included  in  the  tax levy for each such
year an amount which, together with other revenues
available for such purpose, shall be sufficient to
meet such appropriation.  Any such agreement shall
be  valid, binding  and  enforceable  against  the
municipality  if  approved   by   action   of  the
legislative body of  such  municipality.  Any such
guaranty of bonds of such other municipalities may
be  made,  and  any  resolution  authorizing  such
guaranty  may  be   adopted,  notwithstanding  any
statutory  debt  or  other  limitations,  but  the
principal amount of  bonds  so  guaranteed  shall,
after their issuance,  be  included  in  the gross
debt  of such  municipality  for  the  purpose  of
determining the indebtedness  of such municipality
under  subsection (b)  of  section  7-374  of  the
general statutes. The principal amount of bonds so
guaranteed and included  in  gross  debt  shall be
deducted and is declared to be and to constitute a
deduction from such  gross  debt under and for all
the purposes of  said  subsection  (b)  of section
7-374, (1) from  and after the time of issuance of
said  bonds until  the  end  of  the  fiscal  year
beginning next after the completion of acquisition
and construction of  the  project  to  be financed
from the proceeds of such bonds and (2) during any
subsequent fiscal year  if  the  revenues  of such
other municipalities in  the preceding fiscal year
are sufficient to  pay  its  expenses of operation
and  maintenance in  such  year  and  all  amounts
payable in such  year  on account of the principal
and interest on all such guaranteed bonds, and all
bonds of the  municipalities  issued under section
10 of this act.
    Sec. 12. Section  10  of  public act 96-238 is
repealed and the  following is substituted in lieu
thereof:
    The   [term]  PAYMENT   OBLIGATIONS   of   any
contingency    reserve    loan    agreement,    or
modification   thereof,  between   the   Municipal
Liability   Trust   Fund   Committee   established
pursuant to section  19  of public act 86-350, and
an  interlocal  risk   management   agency,  which
agreement was made  in  accordance with public act
86-350, shall be  [extended  for two years] DUE ON
OR  BEFORE  JULY   1,  2000,  notwithstanding  the
provision   of  any   such   agreement   regarding
repayment of such loan.
    Sec. 13. Section 8-187 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    As used in  this  chapter,  (1) "municipality"
means a town,  city, consolidated town and city or
consolidated town and  borough;  (2)  "legislative
body" means (A)  the  board of selectmen in a town
that does not  have a charter, special act or home
rule ordinance relating  to  its government or (B)
the  council, board  of  aldermen,  representative
town meeting, board  of selectmen or other elected
legislative body described  in  a charter, special
act or home  rule ordinance relating to government
in   a   city,   consolidated   town   and   city,
consolidated town and  borough  or a town having a
charter, special act,  consolidation  ordinance or
home rule ordinance  relating  to  its government;
(3)   "development  agency"   means   the   agency
designated by a  municipality  under section 8-188
through which the  municipality  may  exercise the
powers   granted   under    this    chapter;   (4)
"development project" means a project conducted by
a municipality for  the  assembly, improvement and
disposition of land  or  buildings  or  both to be
used  principally  for   industrial   or  business
purposes and includes  vacated  commercial plants;
(5) "vacated commercial  plants"  means  buildings
formerly   used  principally   for   business   or
industrial purposes of  which  more than fifty per
cent of the  usable floor space is, or which it is
anticipated,  within eighteen  months,  shall  be,
unused   or   substantially   underutilized;   (6)
"project area" means  the  area  within  which the
development project is located; (7) "commissioner"
means the Commissioner  of  Economic and Community
Development; (8) "planning  commission"  means the
planning and zoning commission designated pursuant
to section 8-4a or the planning commission created
pursuant  to section  8-19;  (9)  "real  property"
means  land, subterranean  or  subsurface  rights,
structures, any and  all easements, air rights and
franchises and every  estate,  right  or  interest
therein; and (10) "business purpose" includes, but
is not limited  to,  any  commercial, financial or
retail  enterprise  and  includes  any  enterprise
which  promotes  tourism  AND  ANY  PROPERTY  THAT
PRODUCES INCOME.
    Sec.   14.   Section  32-141  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  The  total  amount  of  private  activity
bonds which may be issued by state issuers in  any
calendar  year,  under the state ceiling in effect
for such year, shall be allocated as follows:  (1)
Forty  per cent to the Connecticut Housing Finance
Authority;  (2)  thirty-two  per   cent   to   the
Connecticut  Development  Authority;  (3) eighteen
per   cent   to   municipalities   and   political
subdivisions,  departments,  agencies, authorities
and other bodies of municipalities;  and  (4)  ten
per  cent  for  contingencies. Notwithstanding the
provisions of this section to  the  contrary,  for
the calendar year commencing January 1, 1991, such
bonds shall be allocated as follows: (A) Forty per
cent to the Connecticut Housing Finance Authority;
(B)  seventeen  per  cent   to   the   Connecticut
Development  Authority;  (C)  eighteen per cent to
municipalities   and    political    subdivisions,
departments,   agencies,   authorities  and  other
bodies of municipalities; (D) fifteen per cent  to
the  Connecticut  Higher  Educational Supplemental
Loan  Authority;  and  (E)  ten   per   cent   for
contingencies.
    (b)  No municipality or political subdivision,
department, agency, authority or other body  of  a
municipality  shall  issue  any  private  activity
bonds, and no state  issuer  shall  issue  private
activity   bonds   which   are   allocated   under
subsection (a) of this section  for  contingencies
[, without first obtaining the approval of] UNLESS
(1) THE PROJECT  OR  PROGRAM  TO  BE  FINANCED  IS
CONSISTENT WITH THE STATE PLAN OF CONSERVATION AND
DEVELOPMENT, THE CONSOLIDATED PLAN FOR HOUSING AND
COMMUNITY  DEVELOPMENT  AND  THE  ACTION  PLAN FOR
HOUSING AND  COMMUNITY  DEVELOPMENT  AND  (2)  the
Secretary  of  the Office of Policy and Management
APPROVES THE ISSUANCE. The secretary  shall  adopt
regulations   in   accordance   with  chapter  54,
establishing  procedures  and  standards  for  the
submission  and  review  of  applications for such
approvals.
    (c)  The  secretary shall monitor the needs of
all state issuers for private activity  bonds  and
shall  be responsible for ensuring that no private
activity  bonds  are  issued  which   exceed   any
allocation  under  subsection (a) of this section,
except as provided under section 32-142.
    Sec. 15. This  act  shall take effect from its
passage, except that  section 14 shall take effect
July 1, 1998,  and  sections  1  to 11, inclusive,
shall take effect October 1, 1998.

Approved June 8, 1998