AN ACT CONCERNING BUDGET IMPLEMENTATION

The bill establishes as a statutory requirement the existing administrative practice of giving legislative branch elected officials and employees and executive branch elected officials the same retirement and health insurance rights and benefits granted to state employees under the union coalition contract. The provision is retroactive to November 1, 1989 to cover the period since the practice began.

The bill establishes as a statutory requirement the existing administrative practice of extending state employee life insurance coverage to the state's executive branch elected officers (the governor, lieutenant governor, attorney general, treasurer, comptroller, and secretary of the state). This provision is retroactive to November 1, 1989 to cover the period since the practice began.

The bill eliminates (1) the state marshal account as a separate nonlapsing account in the General Fund and (2) the requirement that the first $ 250,000 collected from two fees be credited to the state marshal account for the commission's operating expenses. The two fees are the (1) $ 250 annual fee state marshals pay the State Marshal Commission and (2) additional $ 5 filing fee, which § 109 of the bill repeals, for civil actions other than small claims cases. Under the bill, money from the state marshal annual fee is deposited in the General Fund.

The bill also eliminates the requirements that the (1) Office of Policy and Management (OPM) secretary review and approve the commission's budget through July 1, 2006 and (2) State Marshals Advisory Board submit a request for administrative support to the commission before the start of each fiscal year.

The State Marshal Commission fills vacancies in state marshal positions, establishes professional standards for marshals (in consultation with the State Marshals Advisory Board), and reviews and audits the records and accounts of state marshals. The commission can remove a state marshal for cause, after notice and hearing.

The State Marshals Advisory Board consists of 24 state marshals. Its members are elected by the state marshals in each county. Members serve for one year and can be reelected. Two members serve as ex officio, nonvoting members of the State Marshal Commission.

The bill increases the number of human rights referees from five to seven beginning July 1, 2004. Each human rights referees serving on that date must complete his term. Thereafter, just as under current law, the governor appoints human rights referees, with the advice and consent of both houses of the General Assembly, to serve for a three -year term.

The bill increases the salaries of judges and family support magistrates by 5. 5% on each of the following dates: January 1, 2005, January 1, 2006, and January 1, 2007. The chart below displays the effect of these increases on salaries.


*Position*	*Current Law*	*Under the Bill*
*Position*	*As of 4/1/02*	*As of 1/1/05*	*As of 1/1/06*	*As of 1/1/07*
Chief Justice of the Supreme Court	$ 149,582	$ 157,809	$ 166,489	$ 175,645
Chief Court Administrator*	143,738	151,644	159,984	168,783
Supreme Court Associate Justice	138,404	146,016	154,047	162,520
Appellate Court Chief Justice	136,873	144,401	152,343	160,722
Appellate Court Judge	129,988	137,137	144,680	152,637
Deputy Chief Court Administrator**	127,617	134,636	142,041	149,853
Superior Court Judge	125,000	131,875	139,128	146,780
Chief Family Support Magistrate	108,821	114,806	121,120	127,782
Family Support Magistrate	103,569	109,265	115,275	121,615

*The chief court administrator earns this salary if he is a judge of the Supreme, Appellate, or Superior Court.

**The deputy chief court administrator earns this salary if he is a Superior Court judge.

The bill's provisions result in salary increases for other officials whose salaries are tied to those of judges. The salaries of workers' compensation commissioners vary depending on experience and are tied to those of Superior Court judges. The salaries of probate court judges are capped at 75% of a Superior Court judge's salary.

The bill also increases the per diem fees paid to judge trial referees from $ 200 to $ 211 and to family support referees from $ 180 to $ 190.

The bill eliminates a separate $ 5 filing fee imposed by PA 01-9 on all civil actions except small claims matters. The civil filings affected are claims (1) valued at less than $ 2,500 and (2) those involving summary process, landlord and tenant disputes, paternity establishment, and domestic violence-related restraining orders.

The elimination of the $ 5 fee does not affect claims valued at $ 2,500 or more because the bill increases the existing filing fee for such cases by the same amount, from $ 220 to $ 225.

Within 30 days after the end of each quarter of FY 2005, the bill requires the banking commissioner to submit to the Appropriations Committee, through the Office of Fiscal Analysis, a report showing the amount of each fee, charge, assessment, fine, civil penalty, settlement payment, and other revenue the Banking Department collected during the preceding quarter.

Section 43 of the Budget Bill (HB 5692) carries forward and transfers $ 1. 25 million from DOC's Personal Services Account to Other Expenses for use in performing mental health assessments of prisoners housed at Northern Correctional Center. The bill permits DOC to use these funds for paying plaintiffs' attorneys fees, as well.

The bill appropriates $ 10,000 from the General Fund for FY 2004-05 to the Department of Environmental Protection for artesian well repairs at Salmon River State Park.

The bill immunizes the following two classes of people from liability for damages or injuries caused in the discharge of their duties unless they acted wantonly, recklessly, or maliciously: (1) people appointed to the advisory committee that assists in the crisis intervention program for attorneys who suffer from alcohol or other substance abuse problems and (2) attorneys appointed by the court pursuant to Superior Court rules to inventory the files of an inactive, suspended, disbarred, or resigned attorney and to take necessary action to protect the interests of his clients. The bill requires anyone allegedly harmed by an advisory committee member's negligence to bring his claim to the claims commissioner.

The bill makes confidential all information given or received in connection with crisis intervention and referral assistance, including the identity of any attorney seeking or receiving such intervention and assistance. It prohibits disclosure except where reasonably necessary to accomplish the purposes of the intervention and assistance. The bill also prohibits disclosure in any civil or criminal case or proceeding or in any legal or administrative proceeding, unless the attorney who sought or obtained the assistance waives the privilege, or the law otherwise requires disclosure.

The bill prohibits attorneys who provide crisis intervention and referral assistance from disclosing any information given or received unless disclosure is required by the rules governing communications between attorney and client. Unless the privilege has been waived or disclosure is otherwise required by law, the bill prohibits anyone in any civil or criminal case or proceeding, or in any legal or administrative proceeding, from requesting or requiring any information given or received in connection with the crisis intervention and referral assistance.

The bill requires two towns and the special taxing districts within them to abate or refund taxes on property that was subject to property taxation in Rhode Island on or before October 1, 2002. The Killingly and Stonington tax assessor must remove this property from their October 1, 2002 and October 1, 2003 grand lists within 30 days after the bill takes effect by issuing a single correction certificate that identifies each property and cities the bill as the reason for removing the property from them from the list.

The assessors must abate any taxes that were due but not paid on these properties and refund the owners for any taxes they paid plus any interest charged for late payment. The assessors must refund the owners within 30 days after they filed the certificate.

The assessors must also give written notice to special district clerks about any property within their districts that were removed from the towns' grand lists. The assessors must notify them within 10 days after correcting their grand lists. The clerks must correct the districts' grand lists, abate any taxes that have not been paid, and refund those owners who had paid taxes, plus any interest for late payments. The clerks must abate or refund the taxes within 30 days after correcting the grand lists.

The bill prohibits any assessor whose town shares a boundary with Rhode Island from adding any property to the October 1, 2004 and October 1, 2005 grand lists if the property was subject to Rhode Island property taxes on or before October 1, 2002.

EFFECTIVE DATE: Upon passage and applicable to assessment years starting on or after October 1, 2002.

Starting in FY 2003-04, the bill requires the OPM secretary to reduce proportionately the annual grants reimbursing towns for 50% of the taxes they forgo under laws that authorize property tax abatements for specified businesses in enterprise zones if the total for all grants exceeds the budgeted amounts. He must already prorate grants reimbursing all towns for the taxes they forgo on exempted machinery and equipment and commercial motor vehicles.

EFFECTIVE DATE: Upon passage and applicable to assessment years beginning on or after October 1, 2002.

The bill requires any retailer with sales in more than one town to report on its quarterly sales tax return: (1) the town where each taxable sale occurred and (2) the amount of sales tax it collected in each town. The information must be reported in a form prescribed by the revenue services commissioner. The new requirement starts with the calendar quarter beginning July 1, 2004.

The bill increases the motor fuel tax on gasohol from 24 to 25 cents per gallon as of July 1, 2004, thus making the gasohol tax the same as the gasoline tax.

The bill requires the OPM secretary to (1) examine the policies and regulations governing property revaluation and (2) report his findings and recommendations on making them clearer and more effective to the Finance, Revenue and Bonding Committee by January 1, 2005.

The bill adds the following exceptions to requirements for the disposal (i. e. , selling, leasing, transferring, or destroying, or contracting to do so) of a housing project owned by housing authorities that have received state financial assistance:

1. Evergreen Apartments in Bridgeport;

2. Quinnipiac Terrace/Riverview in New Haven;

3. Dutch Point in Hartford;

4. Southfield Village in Stamford; and

5. Fairfield Court in Stamford upon approval by the U. S. Department of Housing and Urban Development of a revitalization application and plan, under the HOPE VI Revitalization Program established by federal law, provided the approved plan includes at least one-for-one replacement of low- and moderate-income units.

Under current law, exceptions to the disposal process (see BACKGROUND) are: (1) phase I of Father Panik Village in Bridgeport, (2) Elm Haven in New Haven, and (3) Pequonock Gardens Project in Bridgeport.

The law prohibits housing authorities that receive or have received any state financial assistance from disposing of a housing project or any part of it if doing so would cause the project or any part of it to be unavailable for use as low- or moderate-income rental housing. But the Department of Economic and Community Development commissioner may grant written approval for disposal if, after a public hearing, he finds that:

1. disposal is in the best interest of the state and the municipality in which the project is located;

2. an adequate supply of low- or moderate-income rental housing exists in the municipality in which the project is located;

3. the housing authority has (a) developed a plan for the disposal of the project in consultation with the residents of the project and representatives of the municipality in which it is located and (b) has made adequate provision for the residents' and representatives' participation in the plan; and

4. any person who is displaced as a result of the disposal will be relocated to a comparable dwelling unit of public or subsidized housing in the same municipality or will receive a tenant-based rental subsidy and will receive relocation assistance required by law.

The commissioner must consider the extent to which the housing units that are to be disposed of will be replaced in ways that include newly constructed housing, rehabilitation of housing which is abandoned or has been vacant for at least one year, or new federal, state, or local tenant-based or project-based rental subsidies. The commissioner must give residents of the housing project that is to be disposed of written notice of the public hearing by first class mail no less than 90 days before the date of the hearing.

The bill gives the administrative services commissioner sole responsibility for establishing procedures for all executive branch agencies that are part of the state's workers' compensation program, except for issues related to modified or alternative duty that are mandatory subjects of collective bargaining. Under current law, state agencies must follow state worker's compensation law, but the larger state agencies develop their own policies and procedures within the law's limits.

The bill changes the name of the Connecticut Commission on Arts, Tourism, Culture, History and Film to the Connecticut Commission on Culture and Tourism.

By law, towns where tax-exempt, state-owned property is located receive an annual payment in lieu of taxes (PILOT) from the state to compensate them for property taxes that would otherwise be payable on it. But, instead of Torrington receiving the full PILOT on the new Torrington courthouse, the bill divides the payment between Torrington and Litchfield for 14 years starting in the grand list year when the courthouse is completed. Under the bill, for each of the first through the seventh years of the payments, Torrington receives 55% of the annual payment and Litchfield, 45%. For each of the eighth through the 14^th years, Torrington receives 65% and Litchfield 35%.

The bill allows municipalities that, under current law, must revalue real property in the 2003, 2004, or 2005 assessment year to delay revaluation to the 2006 assessment year, if the delay is approved by the municipality's legislative body (the board of selectmen in town meeting towns). Subsequent revaluations must be made every five years thereafter.

The assessor or board of assessors in a municipality that delays revaluation must prepare a revised grand list for the 2003 assessment year. The grand list must reflect the assessments for the 2002 assessment year, subject only to changes in ownership, new construction, and demolitions. The assessor must send notice of any increase in the valuation of real estate over 2002 valuation to the affected person's last-known address. The person can appeal the increase during the next regular session of the board of assessment appeals at which appeals may be heard.

The bill allows the person or entity authorized by law to prepare rates bills in a municipality that has delayed revaluation under the bill to prepare new rate bills, notwithstanding any law or municipal charter to the contrary.

EFFECTIVE DATE: Upon passge and applicable to assessment years starting on or after October 1, 2003.

The bill replace the current statutory revaluation schedule, in which municipalities must revalue property every four years, with a requirement that they revalue five years after their last revaluation. But, municipalities that choose to delay revaluation to the 2006 assessment must revalue again in the 2011 assessment year.

By law, municipalities must conduct certain revaluations by physical inspections and can conduct others by statistical means. Starting October 1, 2009, the bill requires physical revaluations every 10, rather than every 12, years. The bill requires that a municipality that conducted its last revaluation by statistical means to conduct its next revaluation by physical inspection. But, it requires physical revaluations no more than once every ten years. It allows municipalities that conducted their last revaluations by physical inspections to conduct a statistical revaluation next time.

EFFECTIVE DATE: October 1, 2003 and applicable to assessment years starting on or after that date.

Section 3 of sHB 5689 increases inpatient hospital rates by (1) establishing minimum target amounts per discharge and (2) eliminating the freeze on inflationary adjustments. The target amount minimums begin on April 1, 2005. By regulation, DSS would be required to inflate the target amounts, beginning October 1, 2004. The bill extends the freeze on inflationary adjustments through March 31, 2008.

Section 13 of sHB 5689 prohibits DSS from granting TFA to applicants before they have attended the initial scheduled employment service assessment interview and have helped develop an employment plan. But DSS may not deny benefit when it schedules the appointment more than 10 business days after the person applies, nor may it deny assistance when the Labor Department fails to complete an employment plan for the applicant within 10 days of the date the applicant attends the interview. The bill instead prohibits the delay, not the denial, of benefits in these instances. This would allow DSS to deny benefits when applicants are otherwise ineligible for them.

The bill re-allocates $ 150,000 of available Temporary Assistance for Needy Families (TANF) High Performance Bonus funds in FY 2004-05 for use as a grant to the Connecticut Association for United Spanish Action, Inc. (CAUSA). Specifically, it takes $ 100,000 from the emergency shelters appropriation and $ 50,000 from Good News Garage and designates that DSS use these funds for the CAUSA grant. The $ 100,000 grant must be made during FY 2004-05.

The bill eliminates the provision in sSB 584 that limited the circumstances under which a sexual harassment complainant's identity could be revealed during a public agency's internal investigation. Under sSB 584, the complainant's name, address, and other identifying information was confidential, except the agency had to disclose (1) the complainant's name to the accused during the investigation and (2) any information required to be disclosed by a court order. The agency could also disclose the complainant's name to people participating in the investigation.

The bill authorizes the OPM secretary, when the Department of Social Services (DSS) commissioner requests it, to cancel any receivable that results from an audit against a town, including any receivables associated with the old General Assistance (GA) program. The secretary can (1) direct the DSS commissioner to estimate any potential receivables from future GA audits and (2) authorize her to suspend any future audits. When the latter occurs, the commissioner must notify the towns.

In 1997, the legislature directed DSS to take over administration of the general assistance program from the 169 towns that were administering it. Until that time, towns ran the program and the state reimbursed them for most of the costs. DSS would periodically perform audits to ensure towns were billing properly. In 1998, DSS took over all town programs, except Norwich's. (Towns had the ability to petition DSS to continue their programs and only Norwich chose to do so. )

PA 03-3, June 30 Special Session, eliminated state reimbursement to towns for any GA medical assistance expenses incurred after September 30, 2003, and any cash assistance benefits or program administrative costs incurred after February 29, 2004. DSS officially took over Norwich's program on March 1, 2004.

The bill prohibits transferring any state employee to DOIT before October 1, 2004 in order to transform or consolidate the state's information technology services. But this prohibition does not affect an employee who was transferred to and employed by DOIT before the bill takes effect. To implement this provision, the bill allows the OPM secretary during FY 2004-05 to transfer funds appropriated to DOIT for personal services to other agencies' personal services appropriation.

The bill carries forward the following FY 2003-04 appropriations and transfers the funds to the Capital City Economic Development account for FY 2004-05: (1) up to $ 2. 5 million originally appropriated for OPM personal services and (2) $ 200,000 originally appropriated for Justice Assistance Grants.

sHB 5689, § 8 made several changes to the law that requires DSS to adopt a preferred drug list for certain medical assistance programs. Prescriptions for drugs not on the list need prior authorization, with certain exemptions. sHB 5689, as amended by House Amendment "C," added drugs for diabetes, asthma, and cancer to the mental health-related and antiretroviral drugs that are already exempt from the prior authorization requirement.

This bill eliminates the exemption for diabetes, asthma, and cancer drugs, in effect, restoring the law to the way it was prior to adoption of House "C".

The bill expands the powers of the OPM secretary with regard to Adriaen's Landing and the new UConn stadium. By law, the secretary can acquire real property that comprises the site of these facilities and other property he considers necessary for related off-site infrastructure improvements, temporary construction staging, and replacement parking during construction. The bill additionally allows him to exchange the property he has acquired for other real property when he believes that the exchange will better conform the site boundaries to the final plans or facilitate the layout, development, or financing of the public and private improvements contemplated in the master development plan.

By law, the secretary can lease or sublease property in connection with the overall project and on-site related private developments. (The overall project includes the convention center, stadium, and parking projects. ) The bill additionally allows him, with respect to this property, to (1) grant a temporary or permanent easement and rights-of-way and (2) enter into access, support, common area maintenance, and similar agreements.

The bill establishes two sets of criteria by which the public health commissioner must determine whether a water supply source may be abandoned. The criteria are based on the volume of dependable water that the source can supply during a critical dry period without considering available water limitations. One set of criteria, which are essentially the current ones for abandoning any water source, apply only to water company-owned sources that yield less than . 75 million gallons per day under these conditions. The second set apply to sources that are capable of producing larger volumes that are owned by water companies or other entities (e. g. , a community water system or state agency).

The bill requires the commissioner to grant an abandonment permit to a water company that seeks to abandon a water source with a "safe yield" of less than 0. 75 million gallons of water a day if he makes certain finding. It defines a "safe yield" as the maximum dependable quantity of water per unit of time that can flow or be pumped from a source during a critical dry period (neither the bill nor current law define this term) without considering water limitations that may be available. These criteria apply to applications to abandon a groundwater source, a reservoir, a reservoir system, or any individual source in a reservoir system (neither the bill nor current law define this term).

The law prohibits the commissioner from granting an abandonment permit if he determines that the water company would need the source in an emergency or that abandonment would impair its ability to provide a pure, adequate, and reliable water supply for current and future customers. The bill applies these criteria to the company that owns the water source (presumably this could be a company other than the water company).

As under current law, the commissioner must determine that a water company does not need the source for its present or future water supply services. If a water company is required to file a water supply plan (i. e. , it supplies water to 1,000 or more people or 250 or more consumers), the commissioner must also find that abandonment is consistent with that plan. Current law defines a future source of water supply as one that is needed to serve areas reasonably expected to require service by the water company for up to 50 years after it applies for the abandonment permit. The bill applies these criteria to the company owning the water source.

The bill requires the commissioner to grant an abandonment permit to a water company or other entity that seeks to abandon a water source with a "safe yield" of more than 0. 75 million gallons of water a day if he makes certain findings. He must find that the source's size or condition makes it unsuitable for present or future water supply by the company or entity abandoning it or by the state. This criterion applies to a groundwater source, reservoir, reservoir system, or individual source in a reservoir system.

In making his decision, the bill requires the commissioner to consider the source's general utility and viability for use to meet water supply needs (Unlike the criteria for smaller sources, the bill does not specify whose supply needs he must consider). In assessing the source's general utility, the bill requires the commissioner to consider, among other factors:

1. the source's safe yield, location relative to other public water supply systems, water quality, and potential for treatment;

2. water quality compatibility between systems and interconnections;

3. the extent of water-company owned lands for water supply source protection;

4. types of land uses and land use controls in the aquifer protection area or watershed and their potential impact on the source's water quality; and

5. any physical limitations to water service, system hydraulics, and topography.

The commissioner must also consider (1) any public water supply plans that water companies and water utility coordinating committees must file by law, (2) any other water system plan he has approved, and (3) the efficient and effective development of public water supply in the state.

In making his decision about abandoning a water supply source, the law requires the commissioner to consider the water company's supply needs and consult with the environmental protection commissioner, the OPM secretary, and the Department of Public Utility Control. The bill requires him to consider as well the state's water supply needs and any comments affected municipalities submit under the notice and comment provision summarized below.

The bill requires any entity seeking an abandonment permit to apply for an abandonment permit in the manner the commissioner prescribes. It requires the entity, 30 days before filing an application, to notify the chief elected official in each town in which the land containing the water supply is located. It permits the towns to submit comments on the application to the commissioner. They must do this within 60 days of receiving notice from the company. The bill requires the commissioner to consider these comments as he reviews the application.

Finally, the bill allows the commissioner to permit a water company to sell class I land to a private nonprofit landholding conservation company if he does not permit the company to abandon a source it does not currently use or need. Current law, while generally prohibiting the sale of such land, allows the commissioner to permit a water company to sell or assign a conservation restriction or public access easement on class I land to such an organization.

§ 46 - ABANDONED PROPERTY FEES ON PROPERTY HELD BY BANKS OR FINANCIAL INSTITUTIONS

The bill exempts certain abandoned property held by banks and financial institutions from the general prohibitions against (1) holders of abandoned property that reverts to state custody from imposing dormancy, abandonment, inactivity, or similar charges or fees on it and (2) the property or any agreement concerning it suggesting that the property may be subject to such a fee. It continues to prohibit the imposition of escheat charges or fees on the property. The bill applies to:

By law, the holder of abandoned personal property from a safe deposit box must sell the property and give the state treasurer the sale proceeds, minus any charges that may be lawfully withheld. The bill:

1. allows a holder to contract with a third party to store and sell the property and pay the proceeds to the treasurer, as long as the third party is bonded or insured in his performance of these activities;

2. exempts the property holder from responsibility for claims related to these transactions;

3. if the treasurer exempts the property from requirements that it be sold and the proceeds remitted to her, allows the holder to dispose of the abandoned property in any way it considers appropriate and exempts the holder from responsibility for any claims related to the property disposition or the property itself; and

4. specifies that the charges that may lawfully be withheld from abandoned property sale proceeds paid to the treasurer include costs for storage, appraisal, advertising, and sales commissions as well as any charges owing under the safe deposit box rental contract.

The bill extends state payments in lieu of taxes (PILOTs) for nonprofit hospitals to a campus of the United States Department of Veterans Affairs (VA) Connecticut Healthcare Systems. The law exempts nonprofit hospitals from property taxes, but the state reimburses towns for some of the revenue loss. The reimbursement equals 77% of the taxes that would have been paid on the exempted property, but the Office of Policy and Management pro rates the actual amount if the total for all PILOTs exceeds the budgeted amount.

The bill phases in the PILOT for the VA hospital over five years as shown below:

It also subjects the VA hospital PILOT to the same pro ration requirement as other PILOT reimbursements.

EFFECTIVE DATE: October 1, 2004 and applicable to assessment years starting on or after that date.

The bill makes technical changes and a conforming change specifying that New Britain's master revitalization plan, as authorized under PA 03-6, June 30 Special Session, may be amended.

By law, the Department of Environmental Protection (DEP) commissioner may issue, deny, modify, renew, suspend, revoke or transfer a permit for the construction, alteration or operation of solid waste facilities. The bill requires him, when deciding to grant or deny a permit to build or operate a new transfer station, to consider whether it will cause disproportionately high adverse human health or environmental effects. A transfer station is a location or structure, whether located on land or water, where more than ten cubic yards of solid waste, generated elsewhere, may be stored for transfer or transferred from transportation units and placed in other transportation units for movement to another location, whether or not such waste is stored at the location before transfer.

The bill authorizes the Capital City Economic Development Authority and the OPM secretary to conclude a memorandum of understanding with the Connecticut Center for Science and Exploration for the authority and the secretary to provide financial and construction management services assistance for the center. The science center is being built in Hartford as part of the Adraien's Landing projects.

1. expressly exempts pledges and liens issued in connection with the bonds and other obligations of the state and various state and local government entities from Article 9 of the Uniform Commercial Code (UCC), which deals with secured transactions;

2. strengthens the security backing the bonds of various governmental entities by expanding the assets they can pledge to repay their bonds and giving bondholders' pledges and liens priority over those of third parties;

3. changes one of the qualifications for serving on the Connecticut Higher Education Supplemental Loan Authority (CHESLA) board of directors;

4. expands CHESLA's options for investing its funds; and

5. makes various changes regarding municipal clean water project loan and grant financing.

EFFECTIVE DATE: Upon passage and applicable to any pledge, lien, or security interest created by the state or a state political subdivision or agency, and in existence on October 1, 2003 or created on or after that date.

General Exemption (§ 52). The bill specifies that Article 9 of the UCC does not apply to pledges or liens by the state or its political subdivisions or agencies if the pledges or liens:

Specific Entities. The bill expressly exempts bond pledges and liens of the following entities from the secured transaction provisions of the UCC:

· Connecticut Health and Educational Facilities Authority (§ 54)

· Capital City Economic Development Authority (§ 55)

· Lower Fairfield County Convention Center Authority (§ 56)

· University of Connecticut UConn 2000 bonds (§ 57)

· State Clean Water Bonds (§ 58)

· Connecticut Higher Education Supplemental Loan Authority (§ 62)

· Regional water pollution control authorities (§ 66)

It exempts the bond pledges and liens of the following entities from the UCC even though they are not state agencies or political subdivisions:

Increased Security for Pledges and Liens. The bill allows the following entities to secure their bonds, notes, or other instruments by pledging any of their revenues and assets and gives these pledges priority over other third party liens:

Board of Directors (§59). The bill makes a change in the qualifications of the three members of CHESLA's board of directors representing Connecticut higher education institutions by allowing them to be retired as well as active trustees, directors, or employees of such institutions.

Investment Options (§§ 63 & 64). The bill expands the authority's options for investing its funds to allow it to:

1. invest in the obligations of the U. S. Export-Import Bank, Farmers Home Administration, Federal Financing Bank, Federal Housing Administration, General Services Administration, U. S. Maritime Administration, U. S. Department of Housing and Urban Development, Farm Credit System, and Resolution Funding Corporation and

2. make investment agreements with financial institutions whose long-term, instead of just their short-term, obligations are rated in the top two categories by either a national rating service or one recognized by the Connecticut banking commissioner.

The bill makes several changes regarding municipal clean water project loan and grant financing. It:

1. specifies that issuance and renewal of interim municipal clean water project loan or grant obligations are not subject to the law governing temporary notes issued to acquire or construct all or part of a sewer system;

2. specifies that pledges for repayment of municipal clean water project loan or grant obligations remain in effect until the principal and interest is paid off or until some other provision for their repayment is made;

3. expressly allows a municipality to authorize a project loan or grant agreement between it and the state under the Clean Water Act by vote of its legislative body and water pollution control or sewer authority, if any, regardless of any state law, special act, or charter provision governing such activities;

4. allows a municipality to secure repayment of a project loan or grant agreement by pledging revenues or other funds from the public sewer or water system, including holding or depositing the revenues in separate accounts and making agreements with holders concerning rates, charges, and other aspects of sewer or water system operations; and

5. defines a municipal legislative body for purposes of approving municipal clean water project loan or grant obligations as (a) the board of selectmen in towns without a charter, special act, or home rule ordinance, (b) the council, board of aldermen, representative town meeting, board of selectmen, or other legislative body in towns or boroughs with charters, special acts, consolidation ordinances, or home rule ordinances, (c) the board of burgesses or other elected legislative body in a borough, or (d) the district committee or other elected legislative body in a district, metropolitan district, or other municipal corporation.

Article 9 of the UCC deals with security interests created by contracts in personal property that secure payment or other performance the debtor is obliged to make. Article 9 does not apply to the extent that another statute expressly governs the creation, perfection, priority, or enforcement of a security interest created by the state or one of its governmental units. Thus, other rules prevail over Article 9, but Article 9 applies if there is no express rule. PA 03-62, which took effect on October 1, 2003, eliminated a blanket Article 9 exemption for government obligations.

The bill exempts the Connecticut Resources Recovery Authority's (CRRA) ad hoc members from personal liability for bonds the agency issues or for damage or injury (as long as it is not wanton, reckless, willful, or malicious) caused in performing duties within the scope of their employment or appointment. It also requires CRRA to protect, save harmless, and indemnify its ad hoc members from financial loss and expense arising out of their alleged action or omission causing damage or injury (as long as it is not wanton, reckless, willful, or malicious) if they were discharging their duties or acting within the scope of their employment. The law provides the same protections for CRRA's directors, officers, and employees.

The law requires state agencies extending contracts to buy supplies, materials, equipment, or contractual services that are subject to competitive bidding requirements to comply with those requirements unless the Department of Administrative Services (DAS) commissioner waives them for good cause. The bill creates an exception to allow the DAS commissioner to extend for one year beyond their expiration contracts in effect on May 1, 2004 for state janitorial, building maintenance, security, and food and beverage services.

The bill permits the OPM secretary to transfer funds appropriated from the Special Transportation Fund to the DOT and DMV for other current expenses for FY 03-04 to the Employers Social Security Tax and State Employees Health Service Cost accounts to implement accounting changes necessitated by the CORE-CT system. HB 5692 (the budget bill) has already authorized such transfers for FY 04-05.

The bill retroactively restores the mandatory local property tax exemption for up to $ 1,000 worth of property owned by a permanently and totally disabled resident for the October 1, 2003 to October 1, 2004 assessment year. The General Assembly suspended the exemption for that year in 2003. The bill requires each assessor to issue a correction certificate for anyone affected by the suspension.

By law, to be eligible for the exemption, a property owner must be eligible for Social Security or other comparable federal, state, or local government disability benefits.

EFFECTIVE DATE: Upon passage and applicable to assessment years beginning on or after October 1, 2003.

The bill restores the state reimbursement to towns for lost revenues attributable to the disabled property tax exemption in the October 1, 2003 assessment year. Under current law, the reimbursement is suspended for the October 1, 2002 and October 1, 2003 assessment years. But for any fiscal year starting on or after July 1, 2004, the bill allows the amount payable to each town to be proportionately reduced if the appropriation in any fiscal year for reimbursing all towns is insufficient to pay the full amount.

The bill gives towns an extra month to file applications for reimbursements for disabled exemptions for the October 1, 2003 assessment year. It requires towns to file reimbursement information for that year with the OPM secretary by August 1, rather than July 1, 2004.

EFFECTIVE DATE: Upon passage and applicable to assessment years starting on or after October 1, 2003.

The law allows a person or business to appeal the OPM secretary's decision affecting their eligibility under various state-reimbursed property tax exemptions and relief programs and requires the secretary to notify the claimant and the appropriate local officials about his final decision. The bill changes the deadline for the secretary to send these notices for some benefit programs.

Under current law, the secretary must send the final decision notice for all benefit programs by the statutory deadline for certifying the benefit amount to the comptroller. The bill retains this deadline for the rebates for elderly and disabled renters tax relief program (§ 12-170d).

For the following programs, the bill requires the secretary to send the notice within one year after the assistance claim is filed:

1. veterans' additional state-reimbursed exemption (§ 12-81g),

2. totally disabled tax relief (§ 12-81 (55)),

3. distressed municipality/targeted investment community/ enterprise zone tax relief for eligible manufacturing facilities, machinery, and equipment (§ 12-81 (59), (60)),

4. exemption for manufacturing machinery and equipment acquired as part of a technological upgrade (§ 12-81 (70)),

5. elderly and disabled homeowners property tax freeze (§ 12-129d), and

6. elderly and disabled homeowners circuit breaker tax relief program (§ 12-170aa).

For the following exemption programs, the bill requires the secretary to send the final notice by the date the final modification must be reflected in his certification to the comptroller: (1) manufacturing machinery and equipment (§ 12-81 (72)) and (2) commercial motor vehicles (§12-81 (74)).

EFFECTIVE DATE: July 1, 2004 and applicable to certifications by the OPM secretary occurring on or after July 1, 2001.

If, after the comptroller pays the annual grants to municipalities to reimburse them for tax reductions or assumed property tax liability amounts under the elderly and disabled homeowners circuit breaker tax relief program, the OPM secretary adjusts those grants, the bill requires the adjustment to be reflected in the treasurer's next payment to the municipality under the program.

EFFECTIVE DATE: July 1, 2004 and applicable to claims for reimbursement filed on or after July 1, 2001.

The bill establishes a Transportation Grants and Restricted Accounts Fund to contain all transportation funds that are restricted, not available for general use, and currently deposited in the Special Transportation Fund as "Federal and Other Grants. " Deposit of these restricted funds in the special account may begin once the state comptroller and OPM secretary certify that the CORE-CT project for fiscal services is operational.

The bill establishes the "Grants and Restricted Accounts Fund". Once the comptroller and OPM secretary certify that the CORE-CT project for financial services (the state's new accounting system) is operational, the fund must contain all moneys that are restricted, not available for general use, that were previously accounted for in the General Fund as "Federal and Other Grants. " The comptroller can make such transfers as are necessary to provide that, notwithstanding any statutory provision, all moneys that are restricted and not available for general use are in the new fund.

The bill allows the Office of Emergency Management (OEM), rather than the Office of Policy and Management (OPM), to keep disaster assistance funds that it receives from the Federal Emergency Management Agency in a separate, nonlapsing fund or account within the General Fund and use them for administrative purposes. In practice, OEM has assumed responsibilities for disaster relief activities that were formerly handled by OPM's Intergovernmental Policy Division. sSB 478 eliminates OEM effective January 1, 2005 and transfers its functions, powers, duties, and personnel to a newly created Department of Emergency Management and Homeland Security.

The bill changes the FY 2004-05 allocation of the priority school district grant adopted in sHB 5584 as amended by House "A" by increasing the early reading allocation to $ 19,700,000 from $ 18,647,286 and eliminating the $ 1. 1 million allocation for school improvement.

The bill requires the social services commissioner to provide Medicaid coverage for substance abuse rehabilitation services for adults who have serious or persistent mental illness, alcoholism, or other substance abuse conditions. It requires the commissioner to amend the state Medicaid plan to provide for the new coverage. Existing law requires (1) Medicaid coverage for adult mental health rehabilitation services and (2) that up to $ 3 million of any federal reimbursement the state receives for these services in FYs 2003-04 or 2004-05 be credited to the Community Mental Health Restoration subaccount and made available for new and expanded mental health facilities and services.

The bill eliminates restrictions that limit coverage for adult mental health rehabilitation services to Department of Mental Health and Addiction Services (DMHAS) clients who receive services from providers under contract with DMHAS. Under the bill, all covered rehabilitation services are open to any adult as long as they are provided by DMHAS-certified providers. The bill authorizes the DMHAS commissioner to certify both mental health and substance abuse rehabilitation service providers.

It requires DMHAS to (1) adopt certification regulations and (2) implement policies and procedures to administer them during the regulation adoption process. The notice to adopt regulations must be printed in the Connecticut Law Journal within 20 days after the policies and procedures are adopted. The policies and procedures are valid until the regulations take effect.

The bill exempts prescription drugs under the State Administered General Assistance (SAGA) program from the statutory $ 3. 15 per-prescription pharmacy dispensing fee that applies to other DSS medical assistance programs. Under PA 03-3, June 30 Special Session, the SAGA medical assistance program is being reorganized as a managed care program using federally qualified health centers or other providers and the pharmacy dispensing fee will be negotiated in a separate contract for this program.

The bill increases state reimbursement rates for licensed residential care homes (RCHs) by 2 ¼% for FY 2004-05. But RCHs that would have received a lower rate on July 1, 2004 than they had in FY 2003-04 because of interim rate status or agreement with DSS do not receive this increase and, instead, must receive that lower rate on July 1, 2004.

PA 03-3, June 30 Special Session, requires DSS to provide medical assistance to SAGA recipients using federally qualified health centers or other primary care providers. Currently, DSS can contract with a managed care organization (MCO) or other entity to perform administrative functions. The bill permits the contract to allow the MCO or other entity to operate the program in whole or in part, not just its administrative functions. (DSS has apparently contracted with a single MCO to run the program. )

Section 38 of sHB 5689, February 2004 regular session, permits SAGA medical assistance recipients to seek a DSS review of a denial of coverage for specific medical services only after they have exhausted the grievance process that may be available to them. Although the law already permits DSS to contract with an MCO to perform administrative functions, it does not specify what the allowable functions are. The bill allows them to include a grievance process for service denials. And it restates the recipients' entitlement to request administrative hearings once they have exhausted the grievance procedures.

Under the restructured SAGA medical assistance program, DSS pays the health centers or other entities prospectively based on their pro rata share of the cost of services provided, the number of clients served, or both. Previously, DSS paid claims retrospectively after individual medical providers submitted them. Some of these retrospective claims are still outstanding.

Current law credits an amount equal to the amount the OPM secretary certifies for retrospective reimbursements to DSS' SAGA account for FY 2003-04 and makes it available to DSS to pay retrospective reimbursement claims received during FY 2003-04. The bill continues to credit this amount in FY 2004-05 and allows it to be used for reimbursement claims filed during FY 2004-05.

The law authorizes the Department of Correction (DOC) commissioner to contract with a government or private vendor for out-of-state supervision of 500 inmates. Current law also authorizes her to contract to send an additional 2,000 inmates out of state in FY 04 and FY 05, and to enter a contract with the Virginia Department of Correction (the vendor for the 500 inmates) for any number of the additional inmates without following the competitive bidding or negotiation requirements. The bill limits the commissioner's authority to send inmates out of state in FY 05 to an additional 1,000 rather than 2,000 inmates.

The bill also authorizes the commissioner to contract with a government or private vendor to supervise up to an additional 1,000 inmates out of state during FYs 06 and 07.

As under current law, the government or private vendor must agree to be bound by the Interstate Corrections Compact and the facility used by Connecticut inmates must be in a state that has enacted and entered the compact.

§§ 90-95 - CONNECTICUT HOUSING FINANCE AUTHORITY'S (CHFA) DUTIES AND POWERS

By law, New Britain and its housing authority, in cooperation with DECD and CHFA, may redevelop Corbin Heights, Corbin Heights Extension, Pinnacle Heights, and Pinnacle Heights Extension housing projects.

Under the bill, CHFA (which the bill specifies is the successor entity) may amend the approved redevelopment plan. But any amendment must be proposed and approved subject to the requirements of existing law for developing the original plan, holding a public hearing and meeting the criteria to qualify for the DECD commissioner's approval. An amendment may not be submitted for approval or approved by the commissioner unless it is developed with the advice of, and in consultation with, the local planning committee.

The bill requires (1) CHFA to convene a new local planning committee and (2) CHFA's executive director to designate the minimum number of committee members. The committee must include at least two residents of the developments, including residents selected by a resident association, and at least two representatives of organizations that advocate for public housing residents. In addition, each resident association of the affected developments may select one representative. CHFA's executive director designates the committee's chairperson.

The bill allows the committee to propose amendments to the original housing redevelopment master plan. The committee must hold at least one public hearing before approving any amendments. Public hearing notices must be mailed or delivered to each tenant association representing tenants in the development and to each tenant household in the development at least 30 days in advance. In addition to the formal notice, each public hearing must be publicized in the municipality where the development is located through posted notices at the development and in both general circulation newspapers in the municipality and weekly community newspapers.

The committee must keep a record of all comments it receives (1) at the hearings and (2) at the hearing on the redevelopment plan before submitting it to the DECD commissioner for approval (as required for the original plan under existing law). The oral and written comments must be sent to the commissioner with the amendment.

The bill specifically empowers CHFA to provide assistance in connection with the New Britain and Stamford housing revitalization plans created by PA 03-6, June 30 Special Session.

The bill makes a technical change in reference to DECD's authority to transfer certain property to CHFA.

By law, DECD can enter into contracts with a municipality and its housing authority to make PILOTs to the municipality for real property the authority owns or leases under DECD's moderate rental and primary housing programs. The PILOT must equal the amount of taxes the properties would generate if they were not tax-exempt. The contract must provide that, in consideration for this PILOT, the municipality must waive the PILOT provisions that would otherwise apply, which equals 12. 5% of the rent it receives for occupied costs or certain other authorized purposes.

The bill extends these provisions to property CHFA owns or leases under the two programs. It is not clear whether the PILOT provision applies to property CHFA owns or leases pursuant to PA 03-6, June Special Session.

By law, housing authorities receiving state assistance must (1) provide their tenants with a written lease, (2) adopt a procedure for hearing tenant complaints and grievances, (3) adopt procedures for tenants to comment on proposed housing authority policy and procedure changes, and (4) encourage tenant participation in the housing authority's operation of state housing programs. The bill extends these requirements to CHFA or its subsidiary when they are successor owners of housing previously owned by a housing authority for moderate-income rental housing or housing for elderly people.

When CHFA or its subsidiary is a successor owner of housing previously owned by a housing authority for moderate-income rental housing or housing for elderly people, the bill subjects CHFA or its subsidiary to the same requirements and directs it to operate or dispose of the housing in compliance with the same laws as apply to housing authorities.

The bill allows a housing authority that sold a 32-unit development to a private owner to apply to waive certain housing regulations in order to relocate the development's tenants.

The bill allows the DECD commissioner to waive certain housing authority regulations, including for maintenance of waiting lists, for any 32-unit rental housing property that a housing authority owned and sold to a private developer between October 1, 2003, and November 30, 2003. The housing authority may apply to the commissioner for the waiver to allow for the immediate use of available state-assisted housing to relocate families or individuals from the property who are eligible for it, but would otherwise be placed on a waiting list. Any waiver that the commissioner grants remains in effect until all eligible tenants displaced by the sale who are seeking state-assisted housing have been accommodated.

The bill permits the OPM secretary to authorize any agency to carry forward appropriated funds in its account that are available because of delays in contractor payments caused by the attorney general's requirement for contractor affidavits. In February 2004, the attorney general began requiring contractors in any state realty contract valued at $ 100,000 or more to sign an affidavit about past gift-giving practices. Each contractor must swear that, within the past 10 years, neither he nor any official or employee of his company gave a gift to (1) an official or employee of the agency awarding the contract or (2) any official or employee of an agency or department with supervisory or appointing authority over the contracting agency.

The bill permits the OPM secretary to delegate any of his authority, powers, or duties to the deputy secretary.

The bill allows the attorney general to delegate to the OPM secretary his authority to represent the state in certain appeals to the Superior Court from arbitration, a decision or determination, or any other labor relations issue involving the Office of Labor Relations. The OPM secretary would select attorneys in his office to handle the appeals. The attorney general may enter into a memorandum of understanding with the OPM secretary about the types of appeals covered by the delegation.

The bill exempts certain items or services sold to an acute care, for-profit hospital operating as such on the bill's effective date from state sales and use taxes. The exemption applies to items and services sold in connection with the hospital's building and equipping a hospital facility if it filed a certificate of need for the facility before, and the certificate is pending on, the bill's effective date. The Sharon Hospital is the only for-profit hospital currently operating in the state.

EFFECTIVE DATES: Sections 103 and 104 are identical. Section 103 is effective July 1, 2004. Section 104 is effective on passage and applies to sales occurring on or after July 1, 2005.

The bill requires the Office of Policy and Management secretary, in consultation with budgeted state agency heads responsible for services related to health and hospitals, human services, education, and correction, to prepare a report for the previous biennium. The report must compare the increases the state paid during the previous biennium under contracts with private providers of these services to what it paid to state employees providing the same or similar services based on cost-of-living allowances or performance-based increases. This report must be included in the budget document for the biennium ending June 30, 2007 that the governor transmits to the General Assembly. The bill also requires that any funding needed to provide an increase to the private providers equal to the mean average increase paid to these state employees for the previous biennium be included in the recommended current service appropriations for each affected agency for the following biennium. The bill specifies that it does not limit the governor's ability to recommend reductions to current service appropriations in each budget document.

The bill prohibits the DSS commissioner, between the date this bill takes effect and June 30, 2005, from agreeing to any Medicaid waiver in which the federal government, as a condition of granting the waiver, requires the state to agree to limit the normal 50% federal cost-sharing in the program.

From its effective date to June 30, 2004, the bill prohibits termination of any child's enrollment in HUSKY B for lack of payment of any premium increase the DSS commissioner implemented in FY 2003-04. It also requires the commissioner to examine the premium increases' impact on enrollment and to notify the Appropriations and Human Services committees by June 1, 2004 of any final premium increase adopted for FY 2004-05.

The bill moves the effective date to upon passage, rather than October 1, 2004, for a provision allowing advanced practice registered nurses (APRNs) working in noninstitutional settings (e. g. , a doctor's office) to request, sign for, and receive drug samples that was enacted in Senate Amendment A to SB 569. The law already allows APRNs to dispense such drugs.

The bill repeals a provision in HB 5692 that transferred $ 100,000 of the Division of Homeland Security's FY 04-05 appropriation to the Commission on Fire Prevention and Control to be used to reimburse towns the costs of emergency responses on limited access highways. Effective January 1, 2005, sSB 478 creates a new Department of Emergency Management and Homeland Security and transfers to it the functions, powers, duties, and any necessary personnel from the Division of Homeland Security.

The bill also eliminates a separate $ 5 filing fee on all civil actions except small claims matters (see description in §§ 13 & 14).

Fiscal Year	% of Full PILOT
2006-07	20%
2007-08	40
2008-09	60
2009-10	80
2011 and after	100