Substitute House Bill No. 5517
Substitute House Bill No. 5517
PUBLIC ACT NO. 98-240
AN ACT CONCERNING THE POWERS OF PORT AUTHORITIES.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 7-329a of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any town may, by vote of its legislative body,
establish a port district which shall embrace such
town. The affairs of any such district shall be
administered by a port authority, comprising not
fewer than five nor more than seven members. The
members of any such authority shall be appointed
by the chief executive of the town and shall serve
for such term as the legislative body may
prescribe and until their successors are appointed
and have qualified. Vacancies shall be filled by
the chief executive for the unexpired portion of
the term. The members of each such board shall
serve without compensation, except for necessary
expenses. THE JURISDICTION OF A PORT AUTHORITY
SHALL NOT EXTEND TO MATTERS RELATING TO THE
LICENSURE OF PILOTS, THE SAFE CONDUCT OF VESSELS,
THE PROTECTION OF THE PORTS AND WATERS OF THE
STATE AND ALL OTHER MATTERS SET FORTH IN CHAPTER
263 WHICH ARE UNDER THE AUTHORITY OF THE
DEPARTMENT OF TRANSPORTATION. IN ADDITION THE
JURISDICTION OF A PORT AUTHORITY SHALL NOT EXTEND
TO MATTERS RELATING TO (1) A SOLID WASTE FACILITY,
AS DEFINED IN SUBDIVISION (4) OF SECTION 22a-207,
(2) A RECYCLING FACILITY, AS DEFINED IN
SUBDIVISION (8) OF SECTION 22a-207, (3) THE
BUILDING OF A PAPER MILL OR A PAPER RECYCLING
FACILITY, OR (4) THE CONNECTICUT RESOURCES
RECOVERY AUTHORITY.
Sec. 2. Section 7-329b of the general statutes
is repealed and the following is substituted in
lieu thereof:
As used in sections 7-329a to 7-329f,
inclusive, AS AMENDED BY THIS ACT, AND SECTIONS 7
TO 21, INCLUSIVE, OF THIS ACT:
(1) "DISTRICT" MEANS A PORT DISTRICT
ESTABLISHED PURSUANT TO SECTION 7-329a, AS AMENDED
BY THIS ACT, OR IF ANY SUCH DISTRICT IS
TERMINATED, THE ENTITY ACCORDED THE POWERS AND
DUTIES OF SECTIONS 7-329a TO 7-329f, INCLUSIVE, AS
AMENDED BY THIS ACT, AND SECTIONS 7 TO 21,
INCLUSIVE, OF THIS ACT;
(2) "PROJECT" MEANS THE ACQUISITION, PURCHASE,
CONSTRUCTION, RECONSTRUCTION, IMPROVEMENT OR
EXTENSION OF A PORT FACILITY;
(3) "PORT AUTHORITY" MEANS THE BRIDGEPORT PORT
AUTHORITY AND THE NEW LONDON PORT AUTHORITY
CREATED PURSUANT TO SECTIONS 7-329a TO 7-329f,
INCLUSIVE, AS AMENDED BY THIS ACT, OR IF EITHER
PORT AUTHORITY IS TERMINATED, THEN THE SUCCESSOR
ENTITY OF SUCH PORT AUTHORITY ACCORDED THE POWERS
AND DUTIES OF SAID SECTIONS 7-329a TO 7-329f,
INCLUSIVE, AND SECTIONS 7 TO 21, INCLUSIVE, OF
THIS ACT; AND
["port facilities" means] (4) "PORT
FACILITIES" MEANS (A) wharves, docks, piers,
VESSELS, air or bus terminals, railroad tracks or
terminals, cold storage and refrigerating plants,
warehouses, elevators, freight-handling machinery
and such equipment as is used in the handling of
freight, passengers and VESSELS, vehicles, and the
establishment and operation of a port and any
other works, VESSELS, VEHICLES, ROLLING STOCK,
properties, buildings, structures or other
facilities necessary or desirable FOR COMMERCE AND
INDUSTRY OR WATERFRONT DEVELOPMENT WITHIN A
DISTRICT OR in connection with the development and
operation of port facilities OR, (B) MANUFACTURING
AND INDUSTRIAL FACILITIES, RECREATIONAL AND
ENTERTAINMENT FACILITIES, RESIDENTIAL FACILITIES
OR OTHER COMMERCIAL FACILITIES NECESSARY FOR
COMMERCE AND INDUSTRY OR WATERFRONT DEVELOPMENT
WITHIN A DISTRICT, AND (C) LOCATED WITHIN THE
GEOGRAPHIC BOUNDARIES OF THE DISTRICT.
Sec. 3. Section 7-329c of the general statutes
is repealed and the following is substituted in
lieu thereof:
[Each] WITH THE EXCEPTION OF STATE OR
FEDERALLY OWNED PROPERTIES, EACH port authority
shall have power over the survey, development and
operation of port facilities in its district as
hereinafter specifically set forth, and the
coordination of the same with existing or future
agencies of transportation with a view to the
increase and efficiency of all such facilities and
the furtherance of commerce and industry in the
district. It shall make a thorough investigation
of port conditions in the district and such other
places as it may deem proper and shall prepare a
comprehensive plan for the development of port
facilities in such district. It may lease or
acquire office space and equip the same with
suitable furniture and supplies for the
performance of the work of the authority, and may
employ such personnel as may be necessary for such
performance. The authority also shall have power
to:
(1) Sue and be sued;
(2) Have a seal and alter the same at
pleasure;
(3) Confer with any body or official having to
do with port and harbor facilities within and
without the district, and hold public hearings as
to such facilities;
(4) Confer with railroad, steamship, air, bus,
warehouse and other officials in the district with
reference to the development of transportation
facilities in such district and the coordination
of the same;
(5) Determine upon the location, type, size
and construction of requisite port facilities,
subject, however, to the approval of any
department, commission or official of the United
States or the state where federal or state statute
or regulation requires it;
(6) [Lease] OWN, LEASE, PLEDGE, ENCUMBER,
erect, construct, IMPROVE, REHABILITATE, make,
equip and maintain port facilities in the district
and for any such purpose acquire in the name of
the PORT authority by purchase, grant, gift or
condemnation, except as hereinafter limited, real
property, including easements therein, lands under
water and riparian rights, AND HOLD, IMPROVE,
DEVELOP, MORTGAGE, PLEDGE, EXCHANGE, SELL, CONVEY
OR OTHERWISE DISPOSE OF ANY SUCH PROPERTY IN SUCH
MANNER AS THE PORT AUTHORITY SHALL DETERMINE;
(7) Make surveys, maps and plans for, and
estimates of the cost of, the development and
operation of requisite port facilities and for the
coordination of such facilities with existing
agencies, both public and private, with the view
of increasing the efficiency of all such
facilities in the furtherance of commerce and
industry in the district;
(8) Make contracts and leases, LOANS and
execute all instruments necessary or convenient to
carry out their duties under the provisions of
sections 7-329a to 7-329f, inclusive, AS AMENDED
BY THIS ACT, INCLUDING THE LENDING OF PROCEEDS OF
BONDS ISSUED IN ACCORDANCE WITH SUBDIVISION (9) OF
THIS SECTION, TO OWNERS, LESSEES OR OCCUPANTS OF
FACILITIES IN THE PORT DISTRICT;
(9) Issue bonds within the provisions and
limitations of [chapter 109] SECTIONS 7 TO 21,
INCLUSIVE, OF THIS ACT, FOR THE PURPOSE OF
FINANCING, ACQUIRING, CONSTRUCTING OR IMPROVING
PORT FACILITIES OR FOR ANY OTHER AUTHORIZED
PURPOSE OF THE PORT AUTHORITY;
(10) Fix fees, rates, rentals or other charges
for the purpose of all port facilities owned by
the PORT authority and collect such fees, rates,
rentals and other charges for such facilities
owned by the PORT authority, which fees, rates,
rentals or other charges shall at all times be
sufficient to comply fully with all covenants and
agreements with the holders of any bonds issued
under the provisions of sections 7-329a to 7-329f,
inclusive, AS AMENDED BY THIS ACT;
(11) Operate and maintain all port facilities
owned OR LEASED by it; use the revenues therefrom
for the corporate purposes of the PORT authority,
and in accordance with any covenants or agreements
contained in the proceedings authorizing the
issuance of any bonds hereunder;
(12) Regulate and supervise the construction
of all port facilities constructed or installed by
any private individual or corporation commenced
after October 1, 1967, and regulate the operation
of all privately owned port facilities insofar as
such operation may adversely affect the flow of
transportation or the enforcement of approved
plans for the development of port facilities. The
power granted by this subdivision shall be subject
to the rules, regulations or other directives of
any federal or state department, commission or
other agency having jurisdiction and such grant of
power shall not operate to deprive any person or
corporation, private or public, of any property
without due process of law;
(13) PURCHASE, SELL, OWN, LEASE, FINANCE,
MAINTAIN, REPAIR, OPERATE OR CONTRACT FOR THE
OPERATION OF VESSELS, SHIPS, FERRIES, FERRY BOATS
OR SHIPPING SERVICES FOR THE CONVEYANCE OF
PASSENGERS, FREIGHT AND VEHICLES IN AND OUT OF THE
DISTRICTS;
[(13)] (14) Accept gifts, grants, loans or
contributions from the United States, the state or
an agency or instrumentality of either of them, or
a person or corporation, by conveyance, bequest or
otherwise, and expend the proceeds for any purpose
of the PORT authority, and, as necessary, contract
with the United States, the state or an agency or
instrumentality of either of them, to accept
gifts, grants, loans or contributions on such
terms and conditions as may be provided by the law
authorizing the same;
[(14)] (15) Maintain or participate in the
maintenance of a staff to promote and develop the
movement of commerce through the port district;
[(15)] (16) Use the officers, employees,
facilities and equipment of the town, with the
consent of the town, and pay a proper portion of
the compensation or cost.
Sec. 4. Section 7-329d of the general statutes
is repealed and the following is substituted in
lieu thereof:
Each [such] PORT authority may make and
enforce any reasonable regulations which it may
determine to be necessary for the proper
development, maintenance and use of the port
facilities, relating to the construction,
equipment, repair, maintenance, use and rental of
any dock, wharf, slip, bus or air terminal, rail
tracks or terminal or warehouse OR OTHER PORT
AUTHORITY owned or leased by any individual or
corporation within the port district.
Sec. 5. Section 7-329e of the general statutes
is repealed and the following is substituted in
lieu thereof:
Each [such] PORT authority may make any
investigation which it may deem necessary to
enable it effectually to carry out the provisions
of sections 7-329a to 7-329f, inclusive, AS
AMENDED BY THIS ACT. The PORT authority may enter
upon any lands as in its judgment may be necessary
for the purpose of making surveys and examinations
to accomplish any purpose authorized by said
sections.
Sec. 6. Section 7-329f of the general statutes
is repealed and the following is substituted in
lieu thereof:
The PORT authority may lease or acquire title
to real and personal property, MAY ENCUMBER AND
PLEDGE SUCH PROPERTY and may condemn real property
located within the district which it deems
necessary for the development of port facilities
in the district, subject to the provisions of
section 48-12.
Sec. 7. (NEW) (a) The port authority may issue
bonds from time to time in its discretion, subject
to the approval of the legislative body when
required by the provisions of sections 7-329a to
7-329f, inclusive, of the general statutes, as
amended by this act, and sections 7 to 21,
inclusive, of this act, for the purpose of paying
all or any part of the cost of acquiring,
purchasing, constructing, reconstructing,
improving or extending any project and acquiring
necessary land and equipment therefor. The port
authority may issue such types of bonds as it may
determine, including, without limiting the
generality of the foregoing, bonds payable as to
principal and interest: (1) From its 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 port authority, or a mortgage on any
project or other property of the port authority,
provided such pledge shall not create any
liability on the entity making such grant or
contribution beyond the amount of such grant or
contribution. Whenever and for so long as any port
authority has issued and has outstanding bonds
pursuant to sections 7-329a to 7-329f, inclusive,
of the general statutes, as amended by this act,
the port authority shall fix, charge and collect
rates, rents, fees and other charges in accordance
with section 9 of this act. Neither the members of
the port authority nor any person executing the
bonds shall be liable personally on the bonds by
reason of the issuance thereof. The bonds and
other obligations of the port authority, 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 when the
port authority or a participating municipality
which in accordance with section 18 of this act,
has guaranteed payment of principal and of
interest on the same, and no person other than the
port authority or such a public body shall be
liable thereon, nor shall such bonds or
obligations be payable out of any funds or
properties other than those of the port authority
or such 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 the port
authority are declared to be issued for an
essential public and governmental purpose. In
anticipation of the sale of such revenue bonds the
port authority 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 port authority available therefor and not
otherwise pledged, or from the proceeds of sale of
the revenue bonds of the port authority 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 port authority may contain.
(b) Bonds of the port authority may be issued
as serial bonds or as term bonds, or the port
authority, in its discretion, may issue bonds of
both types. Bonds shall be authorized by
resolution of the members of the authority 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 port
authority shall determine. Pending preparation of
the definitive bonds, the port authority 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 port authority 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 port authority 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 port authority;
(4) limitations on the right of the port authority
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 port
authority; (9) defining the acts or omissions to
act which shall constitute a default in the duties
of the port authority 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 member whose signature or a
facsimile of whose signature appears on any bonds
or coupons ceases to be such member 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.
Notwithstanding any of the other provisions of
sections 7-329a to 7-329f, inclusive, of the
general statutes, as amended by this act, or any
recitals in any bonds issued under the provisions
of said sections, all such bonds shall be deemed
to be negotiable instruments under the provisions
of the general statutes.
(e) Unless otherwise provided by the ordinance
creating the port authority, bonds may be issued
under the provisions of sections 7-329a to 7-329f,
inclusive, of the general statutes, as amended by
this act, and sections 7 to 21, inclusive, of this
act, 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 port authority shall have power out of
any funds available therefor to purchase its bonds
or notes. The port authority may hold, pledge,
cancel or resell such bonds, subject to and in
accordance with agreements with bondholders.
(g) A port authority 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.
(h) Notwithstanding any other provision of the
general statutes, (1) the state shall not, now or
in the future, have any liability or
responsibility with regard to any obligation
issued by the port authority, and (2) no political
subdivision of the state shall, now or in the
future, have any liability or responsibility with
regard to any obligation issued by the port
authority except as expressly provided in sections
1 to 21, inclusive, of this act.
Sec. 8. (NEW) In the discretion of the port
authority any bonds issued under the provisions of
sections 7-329a to 7-329f, inclusive, of the
general statutes, as amended by this act, and
sections 7 to 21, 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 port authority, whether or
not financed in whole or in part from the proceeds
of such bonds, or by a trust agreement by and
between the port authority and a corporate
trustee, which may be any trust company or bank
having the powers of a trust company within or
without the state 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 port authority. 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
provisions which have been specifically authorized
to be included in any resolution or resolutions of
the port authority 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
port authority. 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 port
authority 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. 9. (NEW) The port authority is authorized
to fix, revise, charge and collect rates, rents,
fees and charges for the use of and for the
services furnished or to be furnished by each
project and to contract with any person,
partnership, association or corporation, or other
body, public or private, in respect thereof. Such
rates, rents, fees and charges shall be fixed and
adjusted in respect of the aggregate of rates,
rents, fees and charges from such project so as to
provide funds sufficient with other revenues, if
any, (1) to pay the cost of maintaining, repairing
and operating the project and each and every
portion thereof, to the extent that the payment of
such cost has not otherwise been adequately
provided for, (2) to pay the principal of and the
interest on outstanding revenue bonds of the port
authority issued in respect of such project as the
same shall become due and payable, and (3) to
create and maintain reserves required or provided
for in any resolution authorizing, or trust
agreement securing, such revenue bonds of the port
authority. Such rates, rents, fees and charges
shall not be subject to supervision or regulation
by any department, commission, board, body, bureau
or agency of this state other than the port
authority. A sufficient amount of the revenues
derived in respect of a project, except such part
of such revenues as may be necessary to pay the
cost of maintenance, repair and operation and to
provide reserves and for renewals, replacements,
extensions, enlargements and improvements as may
be provided for in the resolution authorizing the
issuance of any revenue bonds of the port
authority or in the trust agreement securing the
same, shall be set aside at such regular intervals
as may be provided in such resolution or trust
agreement in a sinking or other similar fund which
is hereby pledged to, and charged with, the
payment of the principal of and the interest on
such revenue bonds as the same shall become due,
and the redemption price or the purchase price of
bonds retired by call or purchase as therein
provided. Such pledge shall be valid and binding
from the time when the pledge is made; the rates,
rents, fees and charges and other revenues or
other moneys so pledged and thereafter received by
the port authority shall immediately be subject to
the lien of such pledge without any physical
delivery thereof or further act, and the lien of
any such pledge shall be valid and binding as
against all parties having claims of any kind in
tort, contract or otherwise against the port
authority, irrespective of whether such parties
have notice thereof. Neither the resolution nor
any trust indenture or agreement by which a pledge
is created need be filed or recorded except in the
records of the port authority. The use and
disposition of moneys to the credit of such
sinking or other similar fund shall be subject to
the provisions of the resolution authorizing the
issuance of such bonds or of such trust agreement.
Except as may otherwise be provided in such
resolution or such trust indenture or agreement,
such sinking or other similar fund shall be a fund
for all such revenue bonds issued to finance
projects of such port authority without
distinction or priority of one over another.
Sec. 10. (NEW) All moneys received pursuant to
the authority of sections 7-329a to 7-329f,
inclusive, of the general statutes, as amended by
this act, and sections 7 to 21, inclusive, of this
act, whether as proceeds from the sale of bonds or
as revenues, shall be deemed to be trust funds to
be held and applied solely as provided in said
sections 7-329a to 7-329f, inclusive, and sections
7 to 21, inclusive, of this act.
Sec. 11. (NEW) Any holder of bonds, notes,
certificates or other evidences of borrowing
issued under the provisions of sections 7-329a to
7-329f, inclusive, of the general statutes, as
amended by this act, and sections 7 to 21,
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 port
authority or by any officer or agent thereof,
including the fixing, charging and collection of
fees, rents and other charges.
Sec. 12. (NEW) The exercise of the powers
granted by sections 7-329a to 7-329f, inclusive,
of the general statutes, as amended by this act,
and sections 7 to 21, 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 port authority is
authorized to undertake constitute the performance
of an essential governmental function, no port
authority 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.
Sec. 13. (NEW) Bonds issued by the port
authority under the provisions of sections 7-329a
to 7-329f, inclusive, of the general statutes, as
amended by this act, and sections 7 to 21,
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. 14. (NEW) For the purpose of aiding a
port authority and cooperating in the planning,
undertaking, acquisition, construction or
operation of any port facility, any municipality
may (1) acquire real property in its name for such
port facility or for the widening of existing
roads, streets, parkways, avenues or highways or
for new roads, streets, parkways, avenues or
highways to any such port facility, or partly for
such purposes and partly for other municipal
purposes, by purchase or condemnation in the
manner provided by law for the acquisition of real
property by such municipality, (2) furnish,
dedicate, close, vacate, pave, install, grade,
regrade, plan or replan parks, streets, roads,
roadways, alleys, sidewalks or other places which
it is otherwise empowered to undertake, and (3) do
any and all things necessary or convenient to aid
and cooperate in the planning, undertaking,
construction or operation of any such port
facility, and cause services to be furnished to
the port authority of any character which such
municipality is otherwise empowered to furnish,
and to incur the entire expense thereof.
Sec. 15. (NEW) Any municipality, by ordinance,
and any other governmental unit is empowered,
without any referendum or public or competitive
bidding, and any person is empowered, to sell,
lease, lend, grant or convey to any port
authority, or to permit a port authority to use,
maintain or operate as part of any port facility,
any real or personal property which may be
necessary or useful and convenient for the
purposes of the port authority and accepted by the
port authority. Any such sale, lease, loan, grant,
conveyance or permit may be made or given with or
without consideration and for a specified or an
unlimited period of time and under any agreement
and on any terms and conditions which may be
approved by such municipality, governmental unit
or person and which may be agreed to by the port
authority in conformity with its contracts with
the holders of any bonds. Subject to any such
contracts with the holders of bonds, the port
authority may enter into and perform any and all
agreements with respect to property so purchased,
leased, borrowed, received or accepted by it,
including agreements for the assumption of
principal or interest or both of indebtedness of
such municipality, governmental unit or person or
of any mortgage or lien existing with respect to
such property or for the operation and maintenance
of such property as part of any port facility.
Sec. 16. (NEW) Any municipality, governmental
unit or person is empowered to enter into and
perform any lease or other agreement with any port
authority for the lease to or use by such
municipality, governmental unit or person of all
or any part of any port facility or facilities.
Any such lease or other agreement may provide for
the payment to the port authority by such
municipality, governmental unit or person,
annually or otherwise, of such sum or sums of
money, computed at fixed amounts or by any formula
or in any other manner, as may be so fixed or
computed. Any such lease or other agreement may be
made and entered into for a term beginning
currently or at some future or contingent date and
with or without consideration and for a specified
or unlimited time and on any terms and conditions
which may be approved by such municipality,
governmental unit or person and which may be
agreed to by the port authority in conformity with
its contracts with the holders of any bonds, and
shall be valid and binding on such municipality,
governmental unit or person whether or not an
appropriation is made thereby prior to
authorization or execution of such lease or other
agreement. Such municipality, governmental unit or
person shall do all acts and things necessary,
convenient or desirable to carry out and perform
any such lease or other agreement entered into by
it and to provide for the payment or discharge of
any obligation thereunder in the same manner as
other obligations of such municipality,
governmental unit or person.
Sec. 17. (NEW) For the purpose of aiding a
port authority and cooperating in the planning,
undertaking, acquisition, construction or
operation of any port facility, any municipality,
by ordinance or by resolution of its legislative
body, shall have power from time to time and for
such period and upon such terms, with or without
consideration, as may be provided by such
resolution or ordinance and accepted by the port
authority, (1) to appropriate moneys for the
purposes of the port authority, and to loan or
donate such money to the port authority in such
instalments and upon such terms as may be agreed
upon with the port authority, (2) to covenant and
agree with the port authority to pay to or on the
order of the port authority annually or at shorter
intervals as a subsidy for the promotion of its
purposes not more than such sums of money as may
be stated in such resolution or ordinance or
computed in accordance therewith, (3) upon
authorization by it in accordance with law of the
performance of any act or thing which it is
empowered by law to authorize and perform and
after appropriation of the moneys, if any,
necessary for such performance, to covenant and
agree with the port authority to do and perform
such act or thing and as to the time, manner and
other details of its doing and performance, and
(4) to appropriate money for all or any part of
the cost of acquisition or construction of such
port facility, and, in accordance with the
limitations and any exceptions thereto and in
accordance with procedure prescribed by law, to
incur indebtedness, borrow money and issue its
negotiable bonds for the purpose of financing such
port facility and appropriation, and to pay the
proceeds of such bonds to the port authority.
Sec. 18. (NEW) For the purpose of aiding a
port authority in the planning, undertaking,
acquisition, construction or operation of any port
facility, 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 port authority,
unconditionally guarantee the punctual payment of
the principal of and interest on any bonds of the
port authority and pledge the full faith and
credit of the municipality to the payment thereof.
Any guaranty of bonds of a port authority 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 the port authority 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 port
authority 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 or
the port authority, provided nothing in this
subsection shall preclude such limitation or
alteration if and when adequate provisions shall
be made by law for the protection of the owners of
such bonds of the municipality or the port
authority or those entering into such contracts
with the municipality or the port authority. The
port authority is 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 a port authority 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 of the general statutes, (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 port facility to be financed
from the proceeds of such bonds and (2) during any
subsequent fiscal year if the revenues of the port
authority 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, all bonds
of the municipality issued as provided in section
17 of this act, and all bonds of the port
authority issued under section 7 of this act.
Sec. 19. (NEW) Any lease or other agreement,
and any instruments making or evidencing the same,
may be pledged or assigned by the port authority
to secure its bonds and thereafter may not be
modified except as provided by the terms of such
instrument or by the terms of such pledge or
assignment.
Sec. 20. (NEW) All property of a port
authority shall be exempt from levy and sale by
virtue of an execution and no execution or other
judicial process shall issue against the same nor
shall any judgment against a port authority be a
charge or lien upon its property; provided nothing
herein contained shall apply to or limit the
rights of the holder of any bonds to pursue any
remedy for the enforcement of any pledge or lien
given by a port authority on its facility revenues
or other moneys.
Sec. 21. (NEW) Every port authority and every
municipality in which any property of the port
authority is located may enter into agreements
with respect to the payment by the port authority
to such municipality of annual sums of money in
lieu of taxes on such property in such amounts as
may be agreed upon between the port authority and
the municipality, and each such port authority may
make, and each such municipality is empowered to
accept, such payments and to apply them in the
manner in which taxes may be applied in such
municipality; provided no such annual payment with
respect to any parcel of such property shall
exceed the amount of taxes paid thereon for the
taxable year immediately prior to the time of its
acquisition by the port authority.
Approved June 11, 1998