June Special Session, Public Act No. 01-7
AN ACT INCREASING CERTAIN BOND AUTHORIZATIONS FOR CAPITAL IMPROVEMENTS AND CONCERNING CERTAIN UNEXPENDED BOND PROCEEDS.
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 Subsections (a) and (b) of section 4-66c of the general statutes are repealed and the following is substituted in lieu thereof: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 [six hundred sixty-nine million six hundred ninety-five thousand nine hundred two] nine hundred fifty-three million six hundred ninety-five thousand nine hundred two dollars, provided [one hundred thirty million] one hundred forty-two million dollars of said authorization shall be effective July 1, [2000] 2002. 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 [seventy-seven million three hundred thousand] eighty-one million three hundred thousand dollars, one million dollars of which shall be used for a grant to the development center program and the nonprofit business consortium deployment center approved pursuant to section 32-411 provided [five million] two million dollars of said authorization shall be effective July 1, [2000] 2002; (2) for the Department of Transportation: Urban mass transit, not exceeding two million dollars; (3) for the Department of Environmental Protection: Recreation development and solid waste disposal projects, not exceeding 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 [five hundred forty-five million three hundred thousand] eight hundred twenty-five million three hundred thousand dollars, provided [one hundred twenty-five million] one hundred forty million dollars of said authorization shall be effective July 1, [2000] 2002. Five million dollars of the grants-in-aid authorized in subparagraph (B) of subdivision (6) of this subsection may be made available to private nonprofit organizations for the purposes described in said subparagraph (B). Five million dollars of the grants-in-aid authorized in subparagraph (B) of subdivision (6) of this subsection may be made available for necessary renovations and improvements of libraries.
Sec. 2. Subsection (a) of section 4a-10 of the general statutes 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 [one hundred eighty-nine million five hundred thousand] two hundred twenty-seven million five hundred thousand dollars, provided [twenty-one million] seventeen million dollars of said authorization shall be effective July 1, [2000] 2002.
Sec. 3. Subsection (a) of section 7-538 of the general statutes 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 [four hundred ten million] four hundred seventy million dollars, provided thirty million dollars of said authorization shall be effective July 1, [2000] 2002.
Sec. 4. Section 10-287d of the general statutes is repealed and the following is substituted in lieu thereof:
For the purposes of funding (1) grants to projects that have received approval of the State Board of Education pursuant to sections 10-287 and 10-287a, subsection (a) of section 10-65 and section 10-76e, (2) grants to assist school building projects to remedy safety and health violations and damage from fire and catastrophe, and (3) regional vocational-technical school projects pursuant to section 10-283b, 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 [two billion five hundred sixty-five million three hundred sixty thousand] three billion one hundred fifty-eight million three hundred sixty thousand dollars, provided [three hundred ninety-three million] four hundred fifty million dollars of said authorization shall be effective July 1, [2000] 2002. 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. 5. Section 22-26hh of the general statutes 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-three million seven hundred fifty thousand] eighty-seven million seven hundred fifty thousand dollars, the proceeds of which shall be used [by the Commissioner of Agriculture] for the purposes of [this chapter] section 22-26dd, provided not more than two million dollars of said authorization shall be effective July 1, 2002, and further provided 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. 6. Subsection (a) of section 22a-483 of the general statutes is repealed and the following is substituted in lieu thereof:
(a) For the purposes of sections 22a-475 to 22a-483, inclusive, 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 [seven hundred seventeen million eight hundred thirty thousand] seven hundred ninety-seven million eight hundred thirty thousand dollars, provided [fifty-three million one hundred thousand] forty million dollars of said authorization shall be effective July 1, [2000] 2002.
Sec. 7. Subsection (d) of section 22a-483 of the general statutes is repealed and the following is substituted in lieu thereof:
(d) Notwithstanding the foregoing, nothing herein shall preclude the State Bond Commission from authorizing the issuance of revenue bonds, in principal amounts not exceeding in the aggregate [nine hundred ninety-nine million four hundred thousand] one billion two hundred thirty-eight million four hundred thousand dollars, provided [sixty-six million nine hundred thousand] one hundred fifty-eight million dollars of said authorization shall be effective July 1, [2000] 2002, that are not general obligations of the state of Connecticut to which the full faith and credit of the state of Connecticut are pledged for the payment of the principal and interest. Such revenue bonds shall mature at such time or times not exceeding thirty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such revenue bonds. The revenue bonds, revenue state bond anticipation notes and revenue state grant anticipation notes authorized to be issued under sections 22a-475 to 22a-483, inclusive, shall be special obligations of the state and shall not be payable from nor charged upon any funds other than the revenues or other receipts, funds or moneys pledged therefor as provided in said sections 22a-475 to 22a-483, inclusive, including the repayment of municipal loan obligations; nor shall the state or any political subdivision thereof be subject to any liability thereon except to the extent of such pledged revenues or the receipts, funds or moneys pledged therefor as provided in said sections 22a-475 to 22a-483, inclusive. The issuance of revenue bonds, revenue state bond anticipation notes and revenue state grant anticipation notes under the provisions of said sections 22a-475 to 22a-483, inclusive, shall not directly or indirectly or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. The revenue bonds, revenue state bond anticipation notes and revenue state grant anticipation notes shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the state or of any political subdivision thereof, except the property mortgaged or otherwise encumbered under the provisions and for the purposes of said sections 22a-475 to 22a-483, inclusive. The substance of such limitation shall be plainly stated on the face of each revenue bond, revenue state bond anticipation note and revenue state grant anticipation note issued pursuant to said sections 22a-475 to 22a-483, inclusive, shall not be subject to any statutory limitation on the indebtedness of the state and such revenue bonds, revenue state bond anticipation notes and revenue state grant anticipation notes, when issued, shall not be included in computing the aggregate indebtedness of the state in respect to and to the extent of any such limitation. As part of the contract of the state with the owners of such revenue bonds, revenue state bond anticipation notes and revenue state grant anticipation notes, all amounts necessary for the punctual payment of the debt service requirements with respect to such revenue bonds, revenue state bond anticipation notes and revenue state grant anticipation notes shall be deemed appropriated, but only from the sources pledged pursuant to said sections 22a-475 to 22a-483, inclusive. The proceeds of such revenue bonds or notes may be deposited in the Clean Water Fund for use in accordance with the permitted uses of such fund. Any expense incurred in connection with the carrying out of the provisions of this section, including the costs of issuance of revenue bonds, revenue state bond anticipation notes and revenue state grant anticipation notes may be paid from the accrued interest and premiums or from any other proceeds of the sale of such revenue bonds, revenue state bond anticipation notes or revenue state grant anticipation notes and in the same manner as other obligations of the state. All provisions of subsections (g), (k), (l), (s) and (u) of section 3-20 or the exercise of any right or power granted thereby which are not inconsistent with the provisions of said sections 22a-475 to 22a-483, inclusive, are hereby adopted and shall apply to all revenue bonds, state revenue bond anticipation notes and state revenue grant anticipation notes authorized by the State Bond Commission pursuant to said sections 22a-475 to 22a-483, inclusive. For the purposes of subsection (o) of section 3-20, "bond act" shall be construed to include said sections 22a-475 to 22a-483, inclusive.
Sec. 8. Subsection (a) of section 32-141 of the general statutes is repealed and the following is substituted in lieu thereof:
(a) (1) The total amount of private activity bonds which may be issued by state issuers in [any] the calendar year commencing January 1, 2001, under the state ceiling in effect for such year, shall be allocated as follows: [(1) Forty] (A) Sixty per cent to the Connecticut Housing Finance Authority; [(2) thirty-two] (B) fifteen per cent to the Connecticut Development Authority; [(3) eighteen] and (C) twenty-five per cent to municipalities and political subdivisions, departments, agencies, authorities and other bodies of municipalities, the Connecticut Higher Education Supplemental Loan Authority [;] and [(4) ten per cent] for contingencies. [Notwithstanding the provisions of this section to the contrary, for the calendar year commencing January 1, 1991, such bonds shall be allocated as follows: (A) Forty per cent to the Connecticut Housing Finance Authority; (B) seventeen per cent to the Connecticut Development Authority; (C) eighteen per cent to municipalities and political subdivisions, departments, agencies, authorities and other bodies of municipalities; (D) fifteen per cent to the Connecticut Higher Educational Supplemental Loan Authority; and (E) ten per cent for contingencies.]
(2) The total amount of private activity bonds which may be issued by state issuers in the calendar year commencing January 1, 2002, and each calendar year thereafter, under the state ceiling in effect for each such year, shall be allocated as follows: (A) Sixty per cent to the Connecticut Housing Finance Authority; (B) twelve and one-half per cent to the Connecticut Development Authority; and (C) twenty-seven and one-half per cent to municipalities and political subdivisions, departments, agencies, authorities and other bodies of municipalities, the Connecticut Higher Education Supplemental Loan Authority and for contingencies.
Sec. 9. Section 32-142 of the general statutes is repealed and the following is substituted in lieu thereof:
[(a) There is established a State Private Activity Bond Commission, which shall consist of the Governor, the Treasurer and the Secretary of the Office of Policy and Management, each of whom may designate a deputy to represent him as a member at meetings of said commission, with full powers to act and vote in his behalf, and the chairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to state finance, revenue and bonding, planning and development and commerce and exportation, each of whom may designate another member of the respective joint standing committees, who is not a member of the State Private Activity Bond Commission, to represent him as a member at meetings of said commission, with full powers to act and vote in his behalf. The members of said commission shall serve without compensation.
(b) The Governor shall serve as chairman of the commission and the Secretary of the Office of Policy and Management shall serve as secretary and be responsible for keeping complete records of the commission, including minutes certified by him of any meeting showing the adoption of any resolution by the commission and other actions taken by and documents filed with the commission, and such records shall be the official records of the proceedings of said commission and shall be maintained in the office of the Secretary of the Office of Policy and Management and open for public inspection. The commission shall meet at such times as the Governor designates but not less often than once each year. The Secretary of the Office of Policy and Management shall furnish an agenda for each meeting to the members of the commission and to the Office of Fiscal Analysis seven days or more prior to the meeting.]
(a) The State Bond Commission, established under section 3-20 shall have all powers and duties related to any and all matters concerning private activity bonds, as defined in section 32-140.
[(c)] (b) When the General Assembly is not in regular or special session, the State [Private Activity] Bond Commission may, for the then existing calendar year only, in response to a recommendation from the Governor or on its own initiative, modify any private activity bond allocation established under section 32-141 upon determining that such action would be in the best interests of the state. The commission may conduct a public hearing before making any such modification.
[(d) Not later than February tenth, annually, the State Private Activity Bond Commission shall submit to the General Assembly a report on any action taken since the end of the preceding regular session of the General Assembly. On and after October 1, 1996, the report shall be submitted to the joint standing committees of the General Assembly having cognizance of matters relating to state finance, revenue and bonding, planning and development and commerce and, upon request, to any member of the General Assembly. A summary of the report shall be submitted to each member of the General Assembly if the summary is two pages or less and a notification of the report shall be submitted to each member if the summary is more than two pages. Submission shall be by mailing the report, summary or notification to the legislative address of each member of the committees or the General Assembly, as applicable.]
Sec. 10. Subsection (a) of section 32-235 of the general statutes 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 [four hundred sixty-five million three hundred thousand] five hundred twenty-five million three hundred thousand dollars, provided [one hundred one million] thirty million dollars of said authorization shall be effective on July 1, [2000] 2002.
Sec. 11. (NEW) It is found and declared that the state's management of its workers' compensation program can be improved by reducing the workers' compensation program's current administrative activities and support requirements and by improving the program's current fiscal status, that a loss portfolio arrangement can be used to enhance the overall effectiveness of the state's workers' compensation program, and therefore, it is necessary and in the public interest and for the public good that the provisions of sections 12 and 13 of this act are hereby declared a matter of legislative determination.
Sec. 12. (NEW) The Commissioner of Administrative Services is authorized to enter into a loss portfolio arrangement program for the purpose of transferring a group of workers' compensation claims to an independent third party. Claims that qualify for transfer to such program shall be approved state employees' claims which require payment of future indemnity benefits and payment of medical benefits to certain disabled workers. Such program shall provide that the independent third party shall, as part of the assumption of liability, become responsible for the management and administration of the transferred liability and shall require such party to administer the individual workers' compensation claims in accordance with the Connecticut general statutes.
Sec. 13. (NEW) (a) The State Bond Commission shall have power, in accordance with the provisions of this section, from time to time, to authorize the issuance and sale of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding fifty-three million dollars.
(b) The proceeds of the sale of said bonds shall be used for the purposes of a loss portfolio arrangement program entered into by the Commissioner of Administrative Services pursuant to section 12 of this act.
(c) All provisions of section 3-20 of the general statutes 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 of the general statutes and from time to time renewed. Such bonds shall mature at such time or times not exceeding ten 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.
(d) 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 the Secretary of the Office of Policy and Management and stating such terms and conditions as said commission, in its discretion, may require.
(e) For the purposes of this section "state moneys", means the proceeds of the sale of bonds authorized pursuant to this section or of temporary notes issued in anticipation of the moneys to be derived from the sale of such bonds. Each request filed as provided in subsection (d) of this section for an authorization of bonds shall identify the purpose for which the proceeds of the sale of such bonds are to be used and expended.
(f) Any balance of proceeds from the sale of said bonds authorized for the purposes of subsection (b) of this section in excess of the aggregate costs of the purposes so authorized shall be deposited in the General Fund.
(g) Net earnings on investment of proceeds, accrued interest and premiums on the issuance of any such bonds authorized for the purposes of subsection (b) of this section, after payment of expenses incurred by the State Treasurer or State Bond Commission in connection with their issuance, if any, shall be used for the purposes described in said subsection (b).
Sec. 14. (NEW) Any payment to the state as a settlement of litigation relative to financing secured by a special Capital Reserve Fund shall be credited to the debt retirement reserve account and available to the State Treasurer for the purpose of preventing a draw on a special Capital Reserve Fund.
Sec. 15. Subsection (k) of section 4b-55 of the general statutes is repealed and the following is substituted in lieu thereof:
(k) "Connecticut Juvenile Training School project" means a project (1) to develop on a designated site new facilities for a Connecticut Juvenile Training School in Middletown including, but not limited to, preparing a feasibility study for, designing, constructing, reconstructing, improving or equipping said facility for use by the Department of Children and Families, which is an emergency project because there is an immediate need for completion of said project to remedy overcrowding at Long Lane School; [. Said] said school shall have an annual average daily population of not more than two hundred forty residents; or (2) to develop a separate facility for girls including, but not limited to, acquiring of land or buildings, designing, constructing, reconstructing, improving or equipping said facility for use by the Department of Children and Families.
Sec. 16. Subsection (b) of section 32-614 of the general statutes is repealed and the following is substituted in lieu thereof:
(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used as follows: Three million dollars by the Department of Economic and Community Development for a grant-in-aid to the Capital City Economic Development Authority and the balance by the Office of Policy and Management for a grant-in-aid to the Capital City Economic Development Authority for the project costs of the convention center project, [other than the project costs of the related parking facilities,] as defined in section 32-651, and such portion of preliminary costs and the project costs of site acquisition, site preparation and infrastructure improvements related to other aspects of the overall project, all as defined in section 32-651, as is determined jointly by the secretary and the authority to be appropriately allocated to the convention center facilities, subject to satisfaction of the conditions set forth in subsection (a) of section 32-654.
Sec. 17. Section 10-292k of the general statutes is repealed and the following is substituted in lieu thereof:
For purposes of funding interest subsidy grants, except for interest subsidy grants made pursuant to subsection (b) of section 10-292m, 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 hundred [forty-four] twenty-one million one hundred thousand dollars, provided seventeen million dollars of said authorization shall be effective July 1, 2000. 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. 18. (NEW) The chief administrative officer of the department, institution or agency of the state responsible for any public works construction project administered by the Department of Public Works under section 4b-1 of the general statutes with an estimated cost of more than ten thousand dollars and receiving any portion of its funding from the proceeds of bonds issued under the State General Obligation Bond Procedure Act shall file a report with the Secretary of the State Bond Commission forthwith upon completion or acceptance of any such construction project, and in no event later than ninety days thereafter, which report shall provide the following information: (1) The estimated total cost of the construction project, or the actual amount of the project, if ascertainable; (2) the amount, if any, required to be held in retainage and the reason for such retainage; and (3) the amount of any bonds authorized by the State Bond Commission and allotted by the Governor to such project which remains unexpended. Such report may contain a recommendation to the secretary as to the further use of any portion of such unexpended bond proceeds, which recommendation may, in the discretion of the secretary and the Governor, be referred to the next regular session of the General Assembly. Absent such recommendation and referral to the General Assembly, the State Bond Commission may authorize an unexpended amount to be transferred in accordance with the provisions of subsection (q) of section 3-20 of the general statutes or section 3-21b of the general statutes or the secretary may, prior to any such transfer, authorize the expenditure of such amount for any emergency purpose approved in accordance with the provisions of subsection (c) of section 4b-52 of the general statutes. The chief administrative officer of the department, institution or agency of the state shall also file a report with the cochairpersons of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding on or before January 1, 2002, and each year thereafter, on any such projects which have been reported to the Secretary of the State Bond Commission.
Sec. 19. (NEW) (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 forty million dollars, provided twenty million dollars of said authorization shall be effective July 1, 2001, and twenty million dollars of said authorization shall be effective July 1, 2002.
(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Office of Policy and Management for a Small Town Economic Assistance Program the purpose of which shall be to provide grants-in-aid to any municipality which (1) is not economically distressed within the meaning of subsection (b) of section 32-9p of the general statutes, does not have an urban center in any plan adopted by the General Assembly pursuant to section 16a-30 of the general statutes, and is not a public investment community within the meaning of subdivision (9) of subsection (a) of section 7-545 of the general statutes and (2) has a population, as defined in subdivision (27) of section 10-262f of the general statutes, under thirty thousand. Such grants shall be used for purposes for which funds would be available under section 4-66c of the general statutes. No municipality may receive more than five hundred thousand dollars in any one fiscal year under said program.
(c) All provisions of section 3-20 of the general statutes, 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 State Treasurer shall pay such principal and interest as the same become due.
Sec. 20. Subsection (c) of section 12-62f of the general statutes is repealed and the following is substituted in lieu thereof:
(c) (1) Each municipality whose application for state financial assistance has been approved by the secretary shall receive a grant-in-aid on the basis of its population, as determined by the most recent estimates of the Department of Public Health. The amount of such grant-in-aid to any municipality with revaluation, as required in section 12-62, becoming effective in any of the years 1987 to 1996, inclusive, shall be as follows: [(1)] (A) Twenty-five thousand dollars to each municipality with a population of less than twenty thousand; [(2)] (B) thirty-five thousand dollars to each municipality with a population of at least twenty thousand but less than fifty thousand; [(3)] (C) fifty thousand dollars to each municipality with a population of at least fifty thousand but less than one hundred thousand; and [(4)] (D) sixty thousand dollars to each municipality with a population of one hundred thousand or more. Each municipality that completed a revaluation which became effective in the years from 1987 to 1996, inclusive, and qualified for the grants-in-aid provided for in this section, shall be eligible for an additional grant-in-aid equal to an amount not to exceed ten per cent of the grant-in-aid limit of the grant for which they originally qualified provided the additional grant-in-aid shall be used for training and for installations and modifications which are acquired and certified to be in compliance with the minimum computer-assisted mass appraisal revaluation standards and computerized administrative standards developed in accordance with subsection (b) of this section.
(2) A municipality that conducted a revaluation as required in section 12-62 without postponement or extension, but not between January 1, 1987, and December 31, 1996, shall be eligible to apply for and receive a grant and an additional grant-in-aid under subdivision (1) of this subsection.
(3) No municipality shall be eligible to receive a grant and an additional grant-in-aid pursuant to this section more than once.
Sec. 21. (NEW) (a) For purposes of this section:
(1) "Affordable housing" means affordable housing, as defined in section 8-39a of the general statutes;
(2) "Commissioner" means the Commissioner of Economic and Community Development;
(3) "Department" means the Department of Economic and Community Development;
(4) "Eligible applicant" means: (A) A nonprofit entity; (B) a municipality; (C) a housing authority; (D) a business corporation incorporated pursuant to chapter 601 of the general statutes or any predecessor statutes thereto or authorized to do business pursuant to said chapter 601 having as one of its purposes the construction, acquisition, rehabilitation or operation of affordable housing, and having a certificate or articles of incorporation approved by the commissioner; (E) any partnership, limited partnership, limited liability company, joint venture, sole proprietorship, trust or association having as one of its purposes the construction, acquisition, rehabilitation or operation of affordable housing, and having basic documents of organization approved by the commissioner; or (F) any combination thereof;
(5) "Eligible costs" means costs relating to the planning, implementation and completion of an eligible project; and
(6) "Eligible project" means a project designed for the purpose of providing affordable housing, and shall include, but not be limited to, (A) acquisition, construction, rehabilitation, repair and maintenance of residential or mixed use structures, (B) acquisition, construction, rehabilitation, repair and maintenance of related infrastructure, facilities and amenities incidental and pertinent to the provision of affordable housing and intended primarily to serve the residents of the affordable housing project, that may include, but not be limited to, a community room, laundry, day care space, computer center, management office or playground, or (C) demolition, renovation or redevelopment of vacant buildings or related infrastructure.
(b) The state, acting by and in the discretion of the commissioner, may enter into a contract for state financial assistance for any eligible project in the form determined by the commissioner, including, but not limited to, a grant, loan, loan guarantee, deferred loan or any combination thereof.
(c) An application for financial assistance shall be in the form and manner prescribed by the commissioner. In determining whether and to what extent to fund an application received from eligible applicants, the commissioner may consider relevant factors including, but not limited to, the following: (A) The ability of the project to affirmatively further racial and economic integration, including expanding multifamily rental housing opportunities in suburban and rural communities; (B) the ability of the project to meet the housing needs of the lowest income populations; (C) the ability of the project to revitalize urban neighborhoods, including expanding homeownership and increasing multifamily rehabilitation in the central cities; (D) the ability of the project to provide a full range of supportive housing options for people with special needs or who are at risk of becoming homeless; (E) impact of the project on the local neighborhood, region and the state; (F) short-term and long-term benefits of the project; (G) impact on affordable housing needs of the neighborhood, community, municipality and region; (H) project feasibility; (I) potential for leveraging other public and private investments; (J) applicant's ability to implement the project in a timely manner; (K) the relative need for the project; (L) the applicant's financial commitment to the project, except in the case of a nonprofit entity or a housing authority created pursuant to section 8-40 of the general statutes; and (M) the extent to which the project will advance the public purposes set forth in this subdivision.
(d) The commissioner shall review and approve the site and the estimated total development budget, including the nature and amount of financial assistance to be provided from all sources and by the state. The commissioner may review and approve any additional factors determined to be necessary or appropriate to protect the state's interests. Upon determination by the commissioner that the eligible costs are necessary and reasonable, and, in the case of financial assistance provided from the proceeds of the state's bonds upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20 of the general statutes, or, in the case of financial assistance provided from a funding source other than the state's bonds upon the approval by the Governor of an allotment for such purpose, the state, acting by and through the commissioner, may provide the financial assistance for such eligible costs.
(e) Financial assistance provided shall be upon terms and conditions not inconsistent with the provisions of this section which the commissioner shall establish as prudent and necessary to protect the state's interests. Such terms and conditions may include, separately or in combination, without limitation: (1) The requirements of funds from other sources, including, without limitation, financing obtained from quasi-public agencies, as defined in section 1-120 of the general statutes, federal and local government agencies and private for-profit and not-for-profit institutions; (2) participation interests; (3) subsidy recapture provisions; and (4) resale and prepayment, job retention, residency, use and affordability restrictions. Such terms and conditions and compliance with such terms and conditions may be documented and secured as the commissioner shall determine.
(f) (1) The commissioner may take all reasonable steps and exercise all available remedies necessary or desirable to protect the obligations or interests of the state, including, but not limited to, amending any term or condition of a contract or agreement, provided such amendment is allowed or agreed to pursuant to such contract or agreement, or purchasing or redeeming, pursuant to foreclosure proceedings, bankruptcy proceedings or in other judicial proceedings, any property on which such commissioner or the department holds a mortgage or other lien, or in which such commissioner or the department has an interest.
(2) The commissioner may request, inspect and audit reports, books and records and any other financial or project-related information with respect to eligible applicants that receive financial assistance, including, without limitation, resident or employment information, financial and operating statements and audits. The commissioner may investigate the accuracy and completeness of such reports, books and records.
(3) Notwithstanding any provision of the general statutes, the commissioner is authorized, for purposes of the program established under this section, to assess and collect application fees of no more than two hundred fifty dollars to recover all or part of the costs or expenses incurred by the state in reviewing applications for financial assistance.
(g) The commissioner may adopt such regulations, in accordance with chapter 54 of the general statutes, as are necessary for the implementation of this section.
Sec. 22. Section 32-462 of the general statutes is repealed and the following is substituted in lieu thereof:
(a) As used in this section:
(1) "Agency" means the Department of Economic and Community Development, the Connecticut Development Authority or Connecticut Innovations, Incorporated.
(2) "Financial assistance" means grants, loans, loan guarantees, contracts of insurance, investments, or combinations thereof, which are provided from the proceeds of bonds, notes or other obligations of the state or an agency which constitute a debt or liability of the state or which are secured by a special capital reserve fund payable from amounts appropriated or deemed appropriated from the General Fund.
(3) "Applicant" means any eligible applicant seeking financial assistance from an agency for a business project. The term "applicant" shall not include any political subdivision of the state.
(4) "Business project" means a business proposal undertaken by one or more applicants, but does not include housing unless undertaken in combination with another unrelated type of business.
(5) "Biotechnology business project" means any commercial project to be used or occupied by any person to conduct laboratory activity relating to, or the research, development or manufacture of, biologically active molecules or devices that apply to, affect or analyze biological processes.
(b) (1) No agency or agencies may award more than a total of ten million dollars of financial assistance during any two-year period to an applicant or for a business project unless such financial assistance is specifically authorized by an act of the General Assembly which has been enacted before, on or after July 1, 1994. (2) The provisions of subdivision (1) of this subsection shall not apply to any awards funded or to be funded by bonds authorized to be issued by the State Bond Commission before July 1, 1994.
(c) Notwithstanding the provisions of subsection (b) of this section, no agency or agencies may award more than twenty million dollars of financial assistance for a biotechnology business project during any two-year period unless such financial assistance is specifically authorized by an act of the General Assembly which has been enacted before, on or after the effective date of this act.
Sec. 23. Notwithstanding the provisions of section 4-66c of the general statutes and section 19 of this act, any municipality may apply for assistance under said section 4-66c in an amount not to exceed five hundred thousand dollars per state fiscal year for the biennium ending June 30, 2003, provided such municipality does not qualify for a grant under said section 19 and is not economically distressed within the meaning of subsection (b) of section 32-9p of the general statutes, does not have an urban center in any plan adopted by the General Assembly pursuant to section 16a-30 of the general statutes, and is not a public investment community within the meaning of subdivision (9) of subsection (a) of section 7-545 of the general statutes.
Sec. 24. Section 4a-9 of the general statutes is repealed and the following is substituted in lieu thereof:
There is created a Capital Equipment Purchase Fund. The fund shall be administered by the Secretary of the Office of Policy and Management. The fund shall be used for the purpose of acquiring, by purchase or by exercise of prepayment or purchase options in existing capital leases entered into by the state, capital equipment with an anticipated remaining useful life of not less than five years from the date of purchase and (1) to the extent of not more than two million nine hundred thousand dollars, payment for projects under subsection (a) of section 4-67f, and (2) to the extent of not more than one hundred thousand dollars, payment for awards under subsection (b) of said section. Notwithstanding the provisions of this section, or any regulations adopted under the general statutes, a state agency may purchase necessary data processing equipment that has a unit price of less than one thousand dollars from the Capital Equipment Purchase Fund authorized under section 4a-10, as amended by this act, provided such equipment has a useful life of not less than five years.
Sec. 25. Subdivision (1) of subsection (a) of section 32-222 of the general statutes is repealed and the following is substituted in lieu thereof:
(1) The project involves (A) the construction, substantial renovation, improvement or expansion of a facility; (B) the acquisition of an existing facility that has been idle for at least one year prior to such acquisition, provided if such facility is acquired through a lease, such lease: (i) Shall be for an initial term of not less than five years, and (ii) shall be renewable at the option of the lessee for an additional term of not less than five years, provided the lease may be subject to the option of the lessee to purchase the facility at any time during the lease term or thereafter. The commissioner may waive the one-year idleness requirement upon determination that there is a high likelihood that the facility will remain idle for one year. In making such determination, the commissioner shall consider the marketability of the facility, the general economic condition of the municipality in which the facility is located, the size of the facility, the economic benefit of the proposed acquisition to the municipality and the state, including, but not limited to, the number of employment positions proposed to be established at the facility, and the degree to which the provision of financial assistance under sections 32-220 to 32-234, inclusive, is necessary as an inducement to the eligible applicant to acquire the facility; (C) the acquisition of new machinery and equipment used directly in the manufacturing of goods or products and acquired through purchase as part of the technological upgrading of the manufacturing process of a facility used in the operation of a manufacturing or economic base business which (i) has been in continuous operation in the state for not less than five years; and (ii) has incurred costs in acquiring such machinery and equipment not less than the greater of two hundred thousand dollars, or two hundred per cent of the average annual expenditure of the manufacturing or economic base business for the acquisition of new machinery and equipment used directly in the manufacturing of goods or products at the facility during the three years prior to the date upon which an application for financial assistance is submitted pursuant to subsection (c) of section 32-223, or (D) the acquisition, improvement, demolition, cultivation or disposition of real property, or combinations thereof, or the remediation of contaminated real property, used or to be used in connection with the operation of a manufacturing or economic base business, provided, if the eligible applicant is not a municipality or implementing agency, the commissioner has determined that such project would not be undertaken or completed in a timely manner except for the provision of financial assistance pursuant to sections 32-220 to 32-234, inclusive, and that such project promotes the economic stability and growth of the state or any region thereof.
Sec. 26. Subsection (l) of section 32-222 of the general statutes is repealed and the following is substituted in lieu thereof:
(l) "Manufacturing or economic base business" means a business classified in accordance with the standard industrial classification system of the Bureau of Census of the United States Department of Commerce as belonging to a major industry group numbered 20 to 39, inclusive; a business engaged in research and development directly related to (1) manufacturing, (2) agriculture, or (3) aquaculture; a business engaged in the creation or development of a vineyard or winery; a business engaged in the significant servicing, overhauling or rebuilding of machinery and equipment for industrial use; any business that is part of an economic cluster; or any establishment or auxiliary or operating unit thereof, as defined in the Standard Industrial Classification Manual, which the commissioner determines will materially contribute to the economy of the state by creating or retaining jobs, exporting products or services beyond the state's boundaries, encouraging innovation in products or services, adding value to products or services, or otherwise supporting or enhancing existing activities that are important to the economy of the state.
Sec. 27. (NEW) (a) Any contract for the protection of open space entered into by the Commissioner of Environmental Protection with BHC Company, Aquarion or Kelda Group, jointly or individually, and The Nature Conservancy, through purchase of land or interests in land from said companies shall be on such terms and conditions as are approved by the commissioner. The Department of Environmental Protection and the state are hereby authorized to carry out and fulfill their obligations under any such contract. In addition to such rights as said companies may have pursuant to chapter 53 of the general statutes, those rights in and to land or interests in land reserved by said companies in their conveyances to the state in accordance with the provisions of said contract shall be enforceable in equity.
(b) Notwithstanding the provisions of section 16-50d of the general statutes, the right of the state to acquire such water company land from any of said companies shall be superior to any other water company or municipality or a municipality's right of eminent domain.
(c) Notwithstanding the provisions of section 25-32 of the general statutes, the Commissioner of Public Health may grant one or more permits, pursuant to the provisions of subsection (d) of said section 25-32 for the sale of said companies' Class II land to The Nature Conservancy and for the sale or assignment of interests in land on Class I and II land to the Commissioner of Environmental Protection or to The Nature Conservancy.
(d) Notwithstanding the provisions of section 16-43 of the general statutes and subsection (b) of section 16-50c of the general statutes, (1) the Department of Public Utility Control may accept applications for a sale or assignment of water company land under the provisions of this section prior to the issuance by the Department of Public Health of a permit for such sale or assignment pursuant to section 25-32 of the general statutes, provided final Department of Public Utility control approval of any such sale shall not be granted unless the Department of Public Health has issued such a permit pursuant to said section 25-32, and (2) no prior public notices of said company or companies' intent to sell such water company land shall be required.
(e) Any land purchased by the state under the terms of any such contract shall be preserved in perpetuity predominantly in its natural scenic and open condition for the protection of natural resources while allowing for recreation consistent with such protection.
Sec. 28. This act shall take effect July 1, 2001.
Approved July 2, 2001