Substitute House Bill No. 5038
          Substitute House Bill No. 5038

              PUBLIC ACT NO. 98-259


AN  ACT INCREASING CERTAIN BOND AUTHORIZATIONS FOR
CAPITAL IMPROVEMENTS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1. Subsections (a) and (b) of section
4-66c of  the  general  statutes,  as  amended  by
section 2 of public act 97-1 of the June 5 special
session,  are  repealed  and  the   following   is
substituted in lieu thereof:
    (a)  For  the  purposes  of  subsection (b) of
this section, the State Bond Commission shall have
power,   from  time  to  time,  to  authorize  the
issuance of bonds of the  state  in  one  or  more
series  and  in principal amounts not exceeding in
the aggregate [three] FOUR  hundred  [eighty-four]
NINE million six hundred ninety-five thousand nine
hundred   two   dollars,   provided   [fifty-four]
SEVENTY-NINE million four hundred thousand dollars
of said authorization shall be effective  July  1,
1998.  All  provisions  of  section  3-20,  or the
exercise of any right or  power  granted  thereby,
which  are not inconsistent with the provisions of
this section, are hereby adopted and  shall  apply
to   all   bonds  authorized  by  the  State  Bond
Commission pursuant to this section, and temporary
notes  in  anticipation of the money to be derived
from the sale of any such bonds so authorized  may
be issued in accordance with said section 3-20 and
from time to time renewed. Such bonds shall mature
at  such  time or times not exceeding twenty years
from their respective dates as may be provided  in
or  pursuant  to  the resolution or resolutions of
the State Bond Commission authorizing such  bonds.
None of said bonds shall be authorized except upon
a finding by the State Bond Commission that  there
has   been  filed  with  it  a  request  for  such
authorization, which is signed by or on behalf  of
the   Secretary   of  the  Office  of  Policy  and
Management and states such terms and conditions as
said  commission  in  its  discretion may require.
Said bonds issued pursuant to this  section  shall
be  general  obligations of the state and the full
faith and credit of the state of  Connecticut  are
pledged  for  the  payment of the principal of and
interest on said bonds as the same become due, and
accordingly  as  part of the contract of the state
with the holders of said bonds,  appropriation  of
all amounts necessary for punctual payment of such
principal and interest is  hereby  made,  and  the
Treasurer shall pay such principal and interest as
the same become due.
    (b)  The  proceeds  of the sale of said bonds,
to the extent hereinafter stated, shall  be  used,
subject  to  the provisions of subsections (c) and
(d)  of  this  section,   for   the   purpose   of
redirecting,   improving   and   expanding   state
activities which  promote  community  conservation
and  development  and  improve the quality of life
for urban residents of the  state  as  hereinafter
stated:  (1)  For  the  Department of Economic and
Community  Development:  Economic  and   community
development   projects,  including  administrative
costs incurred by the Department of  Economic  and
Community  Development,  not exceeding sixty-seven
million three hundred thousand  dollars,  provided
four million four hundred thousand dollars of said
authorization shall be effective July 1, 1998; (2)
for  the  Department of Transportation: Urban mass
transit, not exceeding  [one]  TWO  million  [nine
hundred  ninety-five  thousand  nine  hundred two]
dollars; (3) for the Department  of  Environmental
Protection: Recreation development and solid waste
disposal projects, not exceeding [two] ONE million
NINE HUNDRED NINETY-FIVE THOUSAND NINE HUNDRED TWO
dollars;  (4)  for  the   Department   of   Social
Services:   Child   day   care  projects,  elderly
centers,  shelter  facilities   for   victims   of
domestic  violence, emergency shelters and related
facilities for the  homeless,  multipurpose  human
resource centers and food distribution facilities,
not  exceeding  thirty-nine  million  one  hundred
thousand dollars, provided four million dollars of
said authorization  shall  be  effective  July  1,
1994;  (5)  for  the  Department  of  Economic and
Community  Development:  Housing   projects,   not
exceeding  three  million  dollars;  (6)  for  the
Office of Policy and Management: (A) Grants-in-aid
to   municipalities   for  a  pilot  demonstration
program  to  leverage  private  contributions  for
redevelopment  of designated historic preservation
areas, not  exceeding  one  million  dollars;  (B)
grants-in-aid   for   urban  development  projects
including  economic  and  community   development,
transportation,  environmental  protection, public
safety, children and families and social  services
projects  and  programs, including, in the case of
economic  and   community   development   projects
administered on behalf of the Office of Policy and
Management  by  the  Department  of  Economic  and
Community    Development,   administrative   costs
incurred  by  the  Department  of   Economic   and
Community  Development,  not exceeding two hundred
[seventy]  NINETY-FIVE   million   three   hundred
thousand  dollars,  provided  [fifty] SEVENTY-FIVE
million dollars of  said  authorization  shall  be
effective July 1, 1998.
    Sec.  2.  Subsection (b) of section 10-264h of
the general statutes, as amended by section 15  of
public  act  97-290, is repealed and the following
is substituted in lieu thereof:
    (b)  Subject  to  the provisions of subsection
(a) of this section, the applicant  shall  receive
current  payments  of scheduled estimated eligible
project costs for the facility, provided  (1)  the
applicant   files  an  application  for  a  school
building  project,  in  accordance  with   section
10-283 by the date prescribed by the commissioner,
(2) final plans and specifications for the project
are  approved  pursuant  to  sections  10-291  and
10-292, and  (3)  such  district  submits  to  the
commissioner,  in  such  form  as the commissioner
prescribes, and the commissioner approves  a  plan
for  the operation of the facility which includes,
but need not be limited to: A description  of  the
educational programs to be offered, the completion
date for the project, an estimated budget for  the
operation of the facility, written commitments for
participation  from  the   districts   that   will
participate  in  the school and an analysis of the
effect of the program on the reduction of  racial,
ethnic  and  economic  isolation. The commissioner
shall notify  the  secretary  of  the  State  Bond
Commission when the provisions of subdivisions (1)
and (3) of this subsection  have  been  met.  Upon
application  to  the  Commissioner  of  Education,
compliance with the provisions of subdivisions (1)
and (3) of this subsection and after authorization
by  the  General  Assembly  pursuant  to   section
10-283, the applicant shall be eligible to receive
[a grant in an amount equal to five  per  cent  of
the  amount  authorized  for  the  project for the
development  of  final  plans  and  specifications
pursuant  to  subdivision  (2) of this subsection]
PROGRESS   PAYMENTS   IN   ACCORDANCE   WITH   THE
PROVISIONS  OF  SECTION  45 OF PUBLIC ACT 97-11 OF
THE JUNE 18 SPECIAL SESSION.
    Sec.   3.   Section  10-264i  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  A  local  or regional board of education,
[or]  regional  educational  service   center   OR
COOPERATIVE   ARRANGEMENT   PURSUANT   TO  SECTION
10-158a   which   transports   a   child   to   an
interdistrict  magnet school program as defined in
section 10-264l, in a town other than the town  in
which the child resides shall be eligible pursuant
to section 10-264e to receive a grant  up  to  one
hundred   per  cent  of  the  reasonable  cost  of
transporting  such  child.   The   Department   of
Education   shall,   within   the   total   amount
appropriated for interdistrict cooperative  grants
pursuant  to section 10-74d, use an amount, not to
exceed five per cent  of  such  appropriation  for
interdistrict      magnet      school      program
transportation. Nothing in this  subsection  shall
be  construed to prevent a local or regional board
of  education  OR  COOPERATIVE  ARRANGEMENT   from
receiving  reimbursement under section 10-266m, AS
AMENDED BY SECTION 18 OF PUBLIC  ACT  97-247,  for
reasonable  transportation expenses for which such
board,  [or]   service   center   OR   COOPERATIVE
ARRANGEMENT  is  not  reimbursed  pursuant to this
section.
    (b)   Grants   under  this  section  shall  be
contingent on documented costs of  providing  such
transportation. Eligible local and regional boards
of education, REGIONAL EDUCATIONAL SERVICE CENTERS
AND    COOPERATIVE   ARRANGEMENTS   shall   submit
applications for grants under this section to  the
Commissioner of Education in such form and at such
times as he prescribes. Grants  pursuant  to  this
section  shall  be  paid  as  follows:  In October
one-half of the estimated eligible  transportation
costs and the balance of such costs in May.
    (c)   Each   local   and   regional  board  of
education, REGIONAL EDUCATIONAL SERVICE CENTER AND
COOPERATIVE ARRANGEMENT participating in the grant
program shall prepare  a  financial  statement  of
expenditures  which  shall  be  submitted  to  the
Department of Education  on  or  before  September
first  of  the  fiscal  year immediately following
each fiscal year in  which  the  school  district,
REGIONAL EDUCATIONAL SERVICE CENTER OR COOPERATIVE
ARRANGEMENT participates  in  the  grant  program.
Based  on  such  statement,  any  underpayment  or
overpayment may be calculated and adjusted by  the
state Department of Education in the grant for any
subsequent year.
    Sec.  4.  Subsection (a) of section 10-264l of
the general statutes, as amended by section 16  of
public  act  97-290, is repealed and the following
is substituted in lieu thereof:
    (a)  The Department of Education shall, within
the   amount   appropriated   for    interdistrict
cooperative  grants pursuant to section 10-74d, AS
AMENDED,  use  up  to  fifty  per  cent  of   such
appropriation  to  establish  a  competitive grant
program to assist local  and  regional  boards  of
education,   [and]  regional  educational  service
centers AND COOPERATIVE ARRANGEMENTS  PURSUANT  TO
SECTION    10-158a    with    the   operation   of
interdistrict  magnet  school  programs.  For  the
purposes  of this section "an interdistrict magnet
school program" means a program which (1) supports
racial,  ethnic and economic diversity, (2) offers
a special and high  quality  curriculum,  and  (3)
requires  students  who  are enrolled to attend at
least half-time. An  interdistrict  magnet  school
program  does  not  include  a regional vocational
agriculture       school,        a        regional
vocational-technical  school or a regional special
education center. On and after July 1,  2000,  the
governing  authority for each interdistrict magnet
school  program  shall  restrict  the  number   of
students  that  may  enroll  in the program from a
participating district to eighty per cent  of  the
total enrolment of the program.
    Sec.  5.  Subsection (a) of section 10-265d of
the general statutes, as amended by section  9  of
public  act 97-1 of the June 5 special session, is
repealed and the following is substituted in  lieu
thereof:
    (a)  For purposes of making grants pursuant to
section 10-265c, the State Treasurer is authorized
and  directed,  subject  to and in accordance with
the provisions of section 3-20, to issue bonds  of
the  state from time to time in one or more series
in an  aggregate  amount  not  exceeding  fourteen
million   [nine]  EIGHT  hundred  TWENTY  thousand
dollars, provided  one  million  dollars  of  said
authorization  shall  be  effective  July 1, 1994.
Bonds of each series shall bear such date or dates
and  mature  at  such  time or times not exceeding
twenty years from their respective  dates  and  be
subject  to  such  redemption  privileges, with or
without premium, as may be fixed by the State Bond
Commission.  They  shall  be sold at not less than
par and accrued interest and the  full  faith  and
credit  of the state is pledged for the payment of
the interest thereon and the principal thereof  as
the  same shall become due, and accordingly and as
part of the contract of the state with the holders
of   said  bonds,  appropriation  of  all  amounts
necessary for punctual payment of  such  principal
and  interest  is  hereby  made, and the Treasurer
shall pay such principal and interest as the  same
become  due.  The State Treasurer is authorized to
invest temporarily in direct  obligations  of  the
United  States,  United States agency obligations,
certificates of deposit, commercial paper or  bank
acceptances  such  portion of the proceeds of such
bonds or  of  any  notes  issued  in  anticipation
thereof  as  may  be  deemed  available  for  such
purpose.
    Sec.  6.  (NEW)  Notwithstanding  the purposes
set  forth  in  section  10-287d  of  the  general
statutes,  as  amended  by  this  act,  the  State
Treasurer  is  hereby  authorized  and   directed,
subject  to  and in accordance with the provisions
of section 3-20 of the general statutes, to  issue
bonds  of  the  state,  which have been previously
authorized by the State Bond  Commission  pursuant
to  the  provisions of said section 10-287d, in an
aggregate principal  amount  of  eighteen  million
nine  hundred eighty-five thousand dollars for the
purpose of funding  interest  subsidy  grants,  as
such  term  is defined in section 85 of public act
97-265. Such bonds shall be issued  on  or  before
July  1,  1999,  and  may be issued in one or more
series. Bonds of each series shall bear such  date
or  dates  and  mature  at  such time or times not
exceeding thirty years from their respective dates
and be subject to such redemption privileges, with
or without premium, as may be fixed by  the  State
Bond  Commission.  They  shall be sold at not less
than par and accrued interest and the  full  faith
and credit of the state is pledged for the payment
of the interest thereon and the principal  thereof
as  the same shall become due, and accordingly and
as part of the contract  of  the  state  with  the
holders   of  said  bonds,  appropriation  of  all
amounts necessary for  punctual  payment  of  such
principal  and  interest  is  hereby made, and the
State  Treasurer  shall  pay  such  principal  and
interest   as  the  same  become  due.  The  State
Treasurer is authorized to invest  temporarily  in
direct  obligations  of  the United States, United
States   agency   obligations,   certificates   of
deposit,  commercial  paper  or  bank acceptances,
such portion of the proceeds of such bonds  or  of
any notes issued in anticipation thereof as may be
deemed available for such purpose.
    Sec.   7.   Section  10-287d  of  the  general
statutes, as amended by section 81 of  public  act
97-265,   is   repealed   and   the  following  is
substituted in lieu thereof:
    For   the   purposes   of  funding  grants  to
projects that have received approval of the  State
Board of Education pursuant to sections 10-287, AS
AMENDED, and 10-287a, subsection  (a)  of  section
10-65  and  section  10-76e,  and to assist school
building projects  to  remedy  safety  and  health
violations  and  damage from fire and catastrophe,
the State Treasurer is  authorized  and  directed,
subject  to  and in accordance with the provisions
of section 3-20, to issue bonds of the state  from
time to time in one or more series in an aggregate
amount  not  exceeding  one  billion  [six]  SEVEN
hundred   [ninety-nine]  FORTY-NINE  million  five
hundred  sixty  thousand  dollars,  provided   one
hundred  [thirty-four]  EIGHTY-FOUR  million eight
hundred ten thousand dollars of said authorization
shall  be  effective  July  1, 1998. Bonds of each
series shall bear such date or dates and mature at
such time or times not exceeding thirty years from
their respective dates  and  be  subject  to  such
redemption privileges, with or without premium, as
may be fixed by the State  Bond  Commission.  They
shall  be  sold  at  not less than par and accrued
interest and the full  faith  and  credit  of  the
state  is  pledged for the payment of the interest
thereon and the  principal  thereof  as  the  same
shall  become  due, and accordingly and as part of
the contract of the state with the holders of said
bonds,  appropriation of all amounts necessary for
punctual payment of such principal and interest is
hereby  made,  and  the  State Treasurer shall pay
such principal and interest  as  the  same  become
due.  The  State Treasurer is authorized to invest
temporarily in direct obligations  of  the  United
States,    United   States   agency   obligations,
certificates of deposit, commercial paper or  bank
acceptances  such  portion of the proceeds of such
bonds or  of  any  notes  issued  in  anticipation
thereof  as  may  be  deemed  available  for  such
purpose.
    Sec.  8. Subsection (b) of section 10a-109i of
the general statutes, as amended by section  8  of
public  act  97-293, is repealed and the following
is substituted in lieu thereof:
    (b)  (1)  A  permanent Endowment Fund shall be
confirmed, established  or  created  to  encourage
donations   from   the  private  sector,  with  an
incentive in the form of an Endowment  Fund  state
grant,  the net earnings on the principal of which
are to be dedicated  and  made  available  to  the
university     for     endowed     professorships,
scholarships and  programmatic  enhancements.  The
fund   shall  be  administered  by  the  board  of
trustees, or by a nonprofit entity  entrusted  for
such  purpose  and  created  or  to be created and
qualified  as  a  Section  501(c)(3)  organization
under  the  Internal  Revenue Code of 1986, or any
subsequent corresponding internal revenue code  of
the  United  States, as from time to time amended,
and   preferably   constituted   and    controlled
independent  of  the state and university so as to
qualify the interest on state bonds  the  proceeds
of  which  have  been  granted  for deposit in the
Endowment Fund as excludable from federal taxation
under  such  code and shall, in any event, be held
in a trust fund  with  a  bank  or  trust  company
separate  and  apart  from  all  other  funds  and
accounts of the state and university. There  shall
be  deposited  into  the  fund: (A) Endowment Fund
eligible gifts, (B) Endowment  Fund  state  grants
and  (C)  interest  or  other income earned on the
investment of moneys in the Endowment Fund pending
application  or transfer or use of earnings on the
principal thereof for the purposes  identified  in
this  subdivision  (1)  of  subsection (b) of this
section.
    (2)  [(A)] For each of the fiscal years ending
June 30, 1999, to June  30,  2007,  inclusive,  as
part   of   the  state  contract  with  donors  of
Endowment Fund eligible gifts, the  Department  of
Higher  Education, in accordance with section 1 of
[this act] PUBLIC ACT 97-293, shall deposit in the
Endowment  Fund  for  the university a grant in an
amount equal  to  half  of  the  total  amount  of
Endowment  Fund eligible gifts, except as provided
in this subparagraph, received by  the  university
or  for  the  benefit  of  the  university for the
calendar year  ending  the  December  thirty-first
preceding the commencement of such fiscal year, as
certified by  the  chairperson  of  the  board  of
trustees   by   February   fifteenth  to  (i)  the
Secretary of the Office of Policy and  Management,
(ii)  the  joint standing committee of the General
Assembly having cognizance of matters relating  to
appropriations  and the budgets of state agencies,
and (iii) the Commissioner  of  Higher  Education,
provided  such  sums  do  not exceed the Endowment
Fund state grant maximum commitment for the fiscal
year  in  which  the grant is made. For the fiscal
years ending June 30, 1999, and June 30, 2000, the
Department  of  Higher  Education shall deposit in
the Endowment Fund for the  university  grants  in
total amounts which shall not exceed the Endowment
Fund state grant, as defined in subdivision (7) of
section 10a-109c of the general statutes, revision
of 1958, revised to January  1,  1997,  and  which
shall  be  equal  to  the amounts certified by the
chairperson of the board of trustees for each such
fiscal  year  of  Endowment  Fund  eligible  gifts
received by the university or for the  benefit  of
the  university  and for which written commitments
were made prior to July 1, 1997.  For  the  fiscal
year  ending  June 30, 1999, the funds required to
be deposited in the  Endowment  Fund  pursuant  to
this  subparagraph  shall  be  appropriated to the
university for such purpose and  not  appropriated
to  the  fund established pursuant to section 1 of
[this act] PUBLIC ACT 97-293. In any  such  fiscal
year  in  which the eligible gifts received by the
university exceed the Endowment Fund  state  grant
maximum commitment for such fiscal year the amount
in excess  of  such  Endowment  Fund  state  grant
maximum  commitment for such fiscal year, shall be
carried forward and be  eligible  for  a  matching
state grant in any succeeding fiscal year from the
fiscal year ending June 30, 1999,  to  the  fiscal
year  ending  June 30, 2007, inclusive, subject to
the Endowment Fund state grant maximum  commitment
for such fiscal year.
    [(B)  All  provisions  of  section 3-20 or the
exercise of any right  or  power  granted  thereby
which  are not inconsistent with the provisions of
this subdivision  are  hereby  adopted  and  shall
apply  to  all state bonds authorized by the State
Bond Commission pursuant to this subdivision,  and
temporary notes in anticipation of the money to be
derived from the sale of any such state  bonds  so
authorized  may  be issued in accordance with said
subsection and from time  to  time  renewed.  Such
state bonds shall mature at such time or times not
exceeding twenty years from their respective dates
as   may   be  provided  in  or  pursuant  to  the
resolution  or  resolutions  of  the  State   Bond
Commission  authorizing  such  state  bonds.  Such
state bonds issued pursuant  to  this  subdivision
shall  be general obligations of the state and the
full faith and credit of the state of  Connecticut
are  pledged  for  the payment of the principal of
and interest on such bonds  as  the  same  becomes
due,  and  accordingly and as part of the contract
of the state with the holders of such state bonds,
appropriation   of   all   amounts  necessary  for
punctual payment of such principal and interest is
hereby  made,  and  the  Treasurer  shall pay such
principal and interest as the same become due.
    (C)   None   of  said  state  bonds  shall  be
authorized except upon a finding by the State Bond
Commission  that  there  has  been filed with it a
request for such authorization, which is signed by
the   Secretary   of  the  Office  of  Policy  and
Management and stating such terms  and  conditions
as   said   commission,  in  its  discretion,  may
require.
    (D)  Each such request for an authorization of
state bonds shall state the  aggregate  amount  of
the  Endowment  Fund  eligible  gifts received for
which Endowment Fund state grants are requested by
the university and shall state, other than as made
in subparagraph (A) of  subdivision  (2)  of  this
subsection, that no current appropriation has been
provided therefor.]
    (3)  Moneys  in  the  Endowment  Fund shall be
invested pursuant to subdivision (1) of subsection
(b) of section 10a-109i in such obligations as are
eligible for investment of pension  funds  by  the
Treasurer  provided any deposit in a bank or money
market  or   other   banking   or   money   market
arrangement,  such  as repurchase agreement, shall
be fully secured unless  otherwise  insured  by  a
federal  corporation  and  the net earnings of the
Endowment  Fund  shall  be  used  solely  for  the
purposes  for which the fund has been established.
There shall be no commingling of  the  investments
of  the  Endowment  Fund  with  any  other fund or
account of the state or the university.
    (4)   The   board   of  trustees  shall  adopt
guidelines with respect  to  the  solicitation  of
Endowment Fund eligible gifts from private donors.
Private  donations  shall  not  be  construed   to
include proceeds of federal grants but may include
proceeds of municipal grants.
    Sec.  9.  Subsection (a) of section 15-101l of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  The  State  Bond Commission may authorize
the issuance of bonds of the state in one or  more
series and in principal amounts necessary to carry
out the purposes of sections 15-101k  to  15-101p,
inclusive,  but  not  in  excess  of the aggregate
amount of [one]  TWO  hundred  [four]  THIRTY-FOUR
million  dollars,  provided any special obligation
bonds issued to  finance  self-sustaining  special
facilities  payable  solely  from revenues derived
from such special facilities and not payable  from
gross  operating  revenues pledged to secure bonds
issued pursuant to an indenture of trust dated  as
of  October 1, 1982, as amended from time to time,
shall not be included in calculating said  maximum
aggregate amount of bonds.
    Sec.   10.  Section  22-26hh  of  the  general
statutes, as amended by section 7  of  public  act
97-234  and  section  14 of public act 97-1 of the
June  5  special  session,  is  repealed  and  the
following is substituted in lieu thereof:
    The  State  Bond  Commission shall have power,
from time to time, to authorize  the  issuance  of
bonds  of  the  state in one or more series and in
principal amounts not exceeding in  the  aggregate
[eighty]  EIGHTY-TWO  million  [two] SEVEN hundred
fifty thousand  dollars,  PROVIDED  THREE  MILLION
FIVE    HUNDRED    THOUSAND    DOLLARS   OF   SAID
AUTHORIZATION SHALL BE EFFECTIVE JULY 1, 1998, the
proceeds   of   which   shall   be   used  by  the
Commissioner of Agriculture for  the  purposes  of
this   chapter   provided  [not  more  than  fifty
thousand dollars, provided one million dollars  of
said  authorization  shall  be  effective  July 1,
1998, shall be used for the  purposes  of  section
22-26dd  and]  not  more  than two million dollars
shall be used for the purposes of section 22-26jj.
All provisions of section 3-20, or the exercise of
any right or power granted thereby which  are  not
inconsistent  with  the provisions of this section
are hereby adopted and shall apply  to  all  bonds
authorized  by  the State Bond Commission pursuant
to  this   section,   and   temporary   notes   in
anticipation  of  the money to be derived from the
sale of any such bonds so authorized may be issued
in accordance with said section 3-20 and from time
to time renewed. Such bonds shall mature  at  such
time  or  times  not  exceeding  twenty years from
their respective dates as may be  provided  in  or
pursuant  to  the resolution or resolutions of the
State Bond Commission authorizing such bonds. None
of  said  bonds  shall be authorized except upon a
finding by the State Bond  Commission  that  there
has   been  filed  with  it  a  request  for  such
authorization, which is signed by or on behalf  of
the   Secretary   of  the  Office  of  Policy  and
Management and states such terms and conditions as
said  commission,  in its discretion, may require.
Said bonds issued pursuant to this  section  shall
be  general  obligations of the state and the full
faith and credit of the state of  Connecticut  are
pledged  for  the  payment of the principal of and
interest on said bonds as the same become due, and
accordingly  and  as  part  of the contract of the
state   with   the   holders   of   said    bonds,
appropriation   of   all   amounts  necessary  for
punctual payment of such principal and interest is
hereby  made,  and  the  Treasurer  shall pay such
principal and interest as the same become due.
    Sec.  11. Subsection (a) of section 22a-483 of
the general statutes, as amended by section 15  of
public  act 97-1 of the June 5 special session, is
repealed and the following is substituted in  lieu
thereof:
    (a)  For  the  purposes of sections 22a-475 to
22a-483, inclusive, AS  AMENDED,  the  State  Bond
Commission  shall  have  the  power,  from time to
time, to authorize the issuance of  bonds  of  the
state  in  one  or  more  series  and in principal
amounts,  not  exceeding  in  the  aggregate   six
hundred  [thirty-five]  TWENTY-ONE  million  three
hundred  thirty  thousand  dollars.  [,   provided
fourteen  million  dollars  of  said authorization
shall be effective July 1, 1998.]
    Sec.  12.  Subsection (a) of section 25-33a of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  The  State  Bond  Commission  shall  have
power, from time to time to authorize the issuance
of bonds of the state in one or more series and in
principal amounts not exceeding in  the  aggregate
four   million   one  hundred  [ninety]  FIFTY-ONE
thousand five  hundred  [eighty-four]  NINETY-NINE
dollars,  for  the purposes of providing funds for
(1) grants to  municipally-owned  water  companies
for   the   planning,   design,   modification  or
construction of drinking water facilities of  such
companies  made  necessary  by the requirements of
the Safe Water Act of 1974, or by an order of  the
Department  of  Public  Health  deeming  the water
supplied by such companies to be inadequate, which
facilities  shall include, but need not be limited
to, collection facilities,  treatment  facilities,
wells,    tanks,    mains,   pumps,   transmission
facilities and any other machinery  and  equipment
necessary  to  meet  the requirements of said act,
(2) grants in accordance with  the  provisions  of
section  22a-471 to water companies, as defined in
section 25-32a, which have less than ten  thousand
customers,  as defined in said section 25-32a, for
the treatment of a contaminated water supply  well
which  is  owned,  maintained,  operated, managed,
controlled or employed by the water  company,  and
(3)  water  supply  emergency assistance grants to
investor-owned water companies which supply  water
to at least twenty-five but less than one thousand
customers     for     repair,      rehabilitation,
interconnection  or replacement, in the event that
such company has ceased  to  provide  water  as  a
result  of  equipment  or facility failure and the
Commissioner    of    Economic    and    Community
Development, upon recommendation of the Department
of Public Health  and  in  consultation  with  the
Department  of  Public  Utility  Control,  makes a
determination  that  the  company  is  financially
unable to immediately restore service and there is
no alternative water company  reasonably  able  to
immediately supply water. The grants shall be made
in  accordance  with  terms  and   conditions   as
provided  in  regulations to be promulgated by the
Commissioner    of    Economic    and    Community
Development,    subject   to   approval   by   the
Commissioner of Public Health, provided the amount
of  any  such  grant under subdivision (1) of this
subsection shall not exceed one  hundred  thousand
dollars  or  thirty  per  cent  of the cost of the
project being funded by the  grant,  whichever  is
greater.   For   the  purposes  of  this  section,
planning costs shall  include,  but  need  not  be
limited  to,  fees  and  expenses  of  architects,
engineers,  attorneys,   accountants   and   other
professional  consultants,  and costs of preparing
surveys,  studies,  site  plans  and   plans   and
specifications   for   eligible   drinking   water
facilities. Not more than four million dollars  of
the  proceeds  of such bonds shall be allocated to
the  municipally-owned   water   companies   grant
program  under subdivision (1) of this subsection,
not more than two million dollars of the  proceeds
of such bonds shall be allocated for the treatment
of  contaminated  water  supply  wells  which  are
owned,  maintained,  operated, managed, controlled
or employed by a water company  under  subdivision
(2)  of  this  subsection, and not more than seven
hundred thousand dollars of the proceeds  of  such
bonds  shall  be  allocated  to the investor-owned
emergency   assistance   grant    program    under
subdivision (3) of this subsection.
    Sec.   13.  Section  27-140m  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    For  the  purposes  of  this  part  the  State
Treasurer is authorized and directed,  subject  to
and  in  accordance with the provisions of section
3-20, to issue bonds of the  state  from  time  to
time to an amount not exceeding twenty-six million
[eight] SEVEN  hundred  [thirty]  EIGHTY  thousand
dollars.  Such bonds shall bear such date or dates
and mature at such time or times not exceeding ten
years  from  their respective dates and be subject
to such  redemption  privileges  with  or  without
premium   as  may  be  fixed  by  the  State  Bond
Commission. They shall be sold at  not  less  than
par  and  accrued  interest and the full faith and
credit of the state is pledged for the payment  of
the  interest  thereon as the same becomes due and
the payment of the principal thereof at  maturity.
The   State  Treasurer  is  authorized  to  invest
temporarily in direct obligations  of  the  United
States  such portion of the proceeds of such bonds
or of any notes issued in anticipation thereof  as
may be deemed available for such purpose.
    Sec.  14. Subsection (a) of section 27-140y of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  For  the  purposes of this part the State
Bond Commission shall have  power,  in  accordance
with  the  provisions  of  this part, from time to
time to authorize the issuance  of  bonds  of  the
state  in  one  or  more  series  and in principal
amounts not exceeding in the aggregate [seven  and
one-half]   FIVE   million   FIVE  HUNDRED  TWENTY
THOUSAND dollars.
    Sec.  15.  Subsection (a) of section 31-387 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  The  State Bond Commission shall have the
power, in accordance with the provisions  of  this
chapter,  from  time  to  time,  to  authorize the
issuance of bonds of the  state  in  one  or  more
series  and  in principal amounts not exceeding in
the   aggregate   four   million    two    hundred
[eighty-six]   FIFTY-THREE  thousand  [six]  THREE
hundred [forty-two] FORTY-EIGHT dollars.
    Sec.  16.  Subsection (a) of section 32-235 of
the general statutes, as amended by section 18  of
public  act 97-1 of the June 5 special session, is
repealed and the following is substituted in  lieu
thereof:
    (a)  For  the purposes described in subsection
(b) of this  section  the  State  Bond  Commission
shall  have  the  power,  from  time  to  time, to
authorize the issuance of bonds of  the  state  in
one  or  more  series and in principal amounts not
exceeding   in   the   aggregate   three   hundred
[twenty-five]  TWENTY-NINE  million  three hundred
thousand dollars,  provided  [five]  NINE  million
dollars  of  said authorization shall be effective
on July 1, 1998.
    Sec.  17.  This  act shall take effect July 1,
1998.

Approved June 8, 1998