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statutes  is  repealed   and   the   following  is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is repealed and  the  following  is substituted in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