File No. 793

Senate, May 11, 2011

The Committee on Finance, Revenue and Bonding reported through SEN. DAILY of the 33rd Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT AUTHORIZING BONDS OF THE STATE FOR CAPITAL IMPROVEMENTS AND OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (Effective July 1, 2011) The State Bond Commission shall have power, in accordance with the provisions of sections 1 to 7, inclusive, of this act, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding $266,146,556.

Sec. 2. (Effective July 1, 2011) The proceeds of the sale of bonds described in sections 1 to 7, inclusive, of this act, to the extent hereinafter stated, shall be used for the purpose of acquiring, by purchase or condemnation, undertaking, constructing, reconstructing, improving or equipping, or purchasing land or buildings or improving sites for the projects hereinafter described, including payment of architectural, engineering, demolition or related costs in connection therewith, or of payment of the cost of long-range capital programming and space utilization studies as hereinafter stated:

(a) For the Secretary of the State: Development, implementation and upgrade of information technology systems, not exceeding $3,000,000.

(b) For the State Comptroller: Enhancements and upgrades to the CORE financial system, not exceeding $15,000,000.

(c) For the Office of Policy and Management:

(1) Design and implementation of the Criminal Justice Information System, not exceeding $7,700,000;

(2) Design and implementation of state and local benchmarking systems, including technology development, not exceeding $4,000,000.

(d) For the Department of Veterans' Affairs:

(1) Power plant upgrades in Rocky Hill, not exceeding $1,750,000;

(2) Boiler repairs and improvements in Rocky Hill, not exceeding $250,000.

(e) For the Department of Administrative Services:

(1) Development of a new data center, including design, construction and demolition, not exceeding $21,000,000;

(2) Exterior renovations and improvements, including installation of air conditioning, to the State Office Building in Hartford, not exceeding $1,500,000;

(3) Infrastructure repairs and improvements, including fire, safety and compliance with the Americans with Disabilities Act improvements, improvements to state-owned buildings and grounds, including energy conservation and off-site improvements, and preservation of unoccupied buildings and grounds, including office development, acquisition, renovations for additional parking and security improvements, not exceeding $12,500,000.

(f) For the Department of Construction Services:

(1) Removal or encapsulation of asbestos in state-owned buildings, not exceeding $5,000,000;

(2) Infrastructure repairs and improvements, including fire, safety and compliance with the Americans with Disabilities Act improvements, improvements to state-owned buildings and grounds, including energy conservation and off-site improvements, and preservation of unoccupied buildings and grounds, including office development, acquisition, renovations for additional parking and security improvements, not exceeding $2,500,000.

(g) For the Department of Public Safety:

(1) Alterations and improvements to buildings and grounds, including utilities, mechanical systems and energy conservation projects, not exceeding $5,000,000;

(2) Programmatic study of state police troops and districts and development of a design prototype for troop facilities, not exceeding $1,000,000.

(h) For the Military Department:

(1) State matching funds for anticipated federal reimbursable projects, not exceeding $2,000,000;

(2) Alterations and improvements to buildings and grounds, including utilities, mechanical systems and energy conservation, not exceeding $1,000,000;

(3) Construction of a readiness center for the Connecticut Army National Guard Civil Support Team in Windsor Locks, not exceeding $1,250,000;

(4) Construction of a combined support maintenance shop for Connecticut National Guard equipment in Windsor Locks, not exceeding $4,000,000;

(i) For the Department of Energy and Environmental Protection:

(1) Dam repairs, including state-owned dams, not exceeding $4,000,000;

(2) Alterations, renovations and new construction at state parks and other recreation facilities, including Americans with Disabilities Act improvements, not exceeding $45,000,000.

(j) For the Department of Developmental Services: Fire, safety and environmental improvements to regional facilities for client and staff needs, including improvements in compliance with current codes, including intermediate care facilities and site improvements, handicapped access improvements, utilities, repair or replacement of roofs, air conditioning and other interior and exterior building renovations and additions at all state-owned facilities, not exceeding $5,000,000.

(k) For the Department of Mental Health and Addiction Services: Fire, safety and environmental improvements to regional facilities for client and staff needs, including improvements in compliance with current codes, including intermediate care facilities and site improvements, handicapped access improvements, utilities, repair or replacement of roofs, air conditioning and other interior and exterior building renovations and additions at all state-owned facilities, not exceeding $3,000,000.

(l) For the Department of Education: For the regional vocational-technical school system: Alterations and improvements to buildings and grounds, including new and replacement equipment, tools and supplies necessary to update curricula, vehicles and technology upgrades at all regional vocational-technical schools, not exceeding $28,000,000.

(m) For the Community College System:

(1) All regional community colleges:

(A) Alterations, renovations and improvements to facilities including fire, safety, energy conservation and code compliance improvements, not exceeding $4,000,000;

(B) New and replacement instruction, research or laboratory equipment, not exceeding $9,000,000;

(C) System Technology Initiative, not exceeding $5,000,000;

(2) At Northwestern Community College: Site remediation, design and construction for replacement of the Joyner Building, not exceeding $24,650,786;

(3) At Housatonic Community College: Implementation of phase III of the master plan for renovations and additions to Lafayette Hall, not exceeding $4,669,770;

(n) For the Department of Children and Families: Alterations, renovations and improvements to buildings and grounds, not exceeding $1,751,000.

(o) For the Judicial Department:

(1) Alterations, renovations and improvements to buildings and grounds at state-owned and maintained facilities, not exceeding $5,000,000;

(2) Security improvements at various state-owned and maintained facilities, not exceeding $1,000,000;

(3) Implementation of the Technology Strategic Plan Project, not exceeding $5,000,000.

(p) For the office of the Attorney General: Enhancements and upgrades of electronic document software and hardware, not exceeding $2,125,000.

(q) For the Office of Legislative Management: Funding for capital equipment, upgrades to information technology systems and infrastructure repair and improvements projects, not exceeding $9,000,000.

(r) For the Agricultural Experiment Station: Renovations and construction at the Jenkins Building, not exceeding $3,500,000.

(s) For The University of Connecticut: Planning, design and development of a technology park, not exceeding $18,000,000.

Sec. 3. (Effective July 1, 2011) 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 act are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to sections 1 to 7, inclusive, of this act, and temporary notes issued 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.

Sec. 4. (Effective July 1, 2011) None of the bonds described in sections 1 to 7, inclusive, of this act, 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 or by or on behalf of such state officer, department or agency and stating such terms and conditions as said commission, in its discretion, may require.

Sec. 5. (Effective July 1, 2011) For the purposes of sections 1 to 7, inclusive, of this act, "state moneys" means the proceeds of the sale of bonds authorized pursuant to said sections 1 to 7, inclusive, 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 section 4 of this act for an authorization of bonds shall identify the project for which the proceeds of the sale of such bonds are to be used and expended and, in addition to any terms and conditions required pursuant to said section 4, shall include the recommendation of the person signing such request as to the extent to which federal, private or other moneys then available or thereafter to be made available for costs in connection with any such project should be added to the state moneys available or becoming available hereunder for such project. If the request includes a recommendation that some amount of such federal, private or other moneys should be added to such state moneys, then, if and to the extent directed by the State Bond Commission at the time of authorization of such bonds, said amount of such federal, private or other moneys then available, or thereafter to be made available for costs in connection with such project, may be added to any state moneys available or becoming available hereunder for such project and shall be used for such project. Any other federal, private or other moneys then available or thereafter to be made available for costs in connection with such project shall, upon receipt, be used by the State Treasurer, in conformity with applicable federal and state law, to meet the principal of outstanding bonds issued pursuant to sections 1 to 7, inclusive, of this act, or to meet the principal of temporary notes issued in anticipation of the money to be derived from the sale of bonds theretofore authorized pursuant to said sections 1 to 7, inclusive, for the purpose of financing such costs, either by purchase or redemption and cancellation of such bonds or notes or by payment thereof at maturity. Whenever any of the federal, private or other moneys so received with respect to such project are used to meet the principal of such temporary notes or whenever principal of any such temporary notes is retired by application of revenue receipts of the state, the amount of bonds theretofore authorized in anticipation of which such temporary notes were issued, and the aggregate amount of bonds which may be authorized pursuant to section 1 of this act, shall each be reduced by the amount of the principal so met or retired. Pending use of the federal, private or other moneys so received to meet principal as hereinabove directed, the amount thereof may be invested by the State Treasurer in bonds or obligations of, or guaranteed by, the state or the United States or agencies or instrumentalities of the United States, shall be deemed to be part of the debt retirement funds of the state, and net earnings on such investments shall be used in the same manner as the moneys so invested.

Sec. 6. (Effective July 1, 2011) Any balance of proceeds of the sale of said bonds authorized for any project described in section 2 of this act in excess of the cost of such project may be used to complete any other project described in said section 2, if the State Bond Commission shall so determine and direct. Any balance of proceeds of the sale of said bonds in excess of the costs of all the projects described in said section 2 shall be deposited to the credit of the General Fund.

Sec. 7. (Effective July 1, 2011) The bonds issued pursuant to sections 1 to 7, inclusive, of this act, 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. 8. (Effective July 1, 2011) The State Bond Commission shall have power, in accordance with the provisions of sections 8 to 11, inclusive, of this act, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding $80,000,000.

Sec. 9. (Effective July 1, 2011) The proceeds of the sale of said bonds shall be used by the Department of Economic and Community Development for the purposes hereinafter stated:

(1) Housing development and rehabilitation, including moderate cost housing, moderate rental, congregate and elderly housing, urban homesteading, community housing development corporations, housing purchase and rehabilitation, housing for the homeless, housing for low income persons, limited equity cooperatives and mutual housing projects, abatement of hazardous material including asbestos and lead-based paint in residential structures, emergency repair assistance for senior citizens, housing land bank and land trust, housing and community development, predevelopment grants and loans, reimbursement for state and federal surplus property, private rental investment mortgage and equity program, housing infrastructure, demolition, renovation or redevelopment of vacant buildings or related infrastructure, septic system repair loan program, acquisition and related rehabilitation including loan guarantees for private developers of rental housing for the elderly, projects under the program established in section 8-37pp of the general statutes, and participation in federal programs, including administrative expenses associated with those programs eligible under the general statutes, not exceeding $50,000,000;

(2) Supportive housing initiatives established in section 17a-485c of the general statutes, not exceeding $30,000,000.

Sec. 10. (Effective July 1, 2011) 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 or by or on behalf of such state officer, department or agency and stating such terms and conditions as said commission, in its discretion may require.

Sec. 11. (Effective July 1, 2011) 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 sections 8 to 11, inclusive, of this act, are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to sections 8 to 11, inclusive, of this act, 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. Such bonds issued pursuant to section 8 of this act shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such 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. 12. (Effective July 1, 2011) The State Bond Commission shall have power, in accordance with the provisions of sections 12 to 19, inclusive, of this act, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding $75,000,000.

Sec. 13. (Effective July 1, 2011) The proceeds of the sale of the bonds described in sections 12 to 19, inclusive, of this act, shall be used for the purpose of providing grants-in-aid and other financing for the projects, programs and purposes hereinafter stated:

(a) For the Department of Energy and Environmental Protection:

(1) Grants-in-aid for containment, removal or mitigation of identified hazardous waste disposal sites, not exceeding $10,000,000;

(2) Grants-in-aid to municipalities for open space land acquisition and development for conservation or recreational purposes, not exceeding $5,000,000.

(b) For the Department of Economic and Community Development: Regional brownfield redevelopment loan fund, not exceeding $25,000,000.

(c) For the Department of Public Health: Grants-in-aid to community health centers, primary care organizations and municipalities for the purchase of equipment, renovations, improvements and expansion of facilities, not exceeding $2,000,000.

(d) For the Department of Developmental Services: Grants-in-aid to private, nonprofit organizations for alterations and improvements to nonresidential facilities, not exceeding $2,000,000.

(e) For the Department of Mental Health and Addiction Services: Grants-in-aid to private, non-profit organizations that are exempt under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, for community-based residential and outpatient facilities for purchases, repairs, alterations, and improvements, not exceeding $5,000,000.

(f) For the Department of Transportation: Grants-in-aid for improvements to ports and marinas, including dredging and navigational direction, not exceeding $6,000,000, provided $1,000,000 shall be used to conduct a study of the strategy for economic development in the New Haven, New London and Bridgeport ports.

(g) For the Department of Social Services: Grants-in-aid for neighborhood facilities, child day care projects, elderly centers, multipurpose human resource centers, shelter facilities for victims of domestic violence and food distribution facilities, not exceeding $10,000,000.

(h) Department of Education: Grants-in-aid for the purpose of capital start-up costs related to the development of new interdistrict magnet school programs to assist the state in meeting the goals of the 2008 stipulation and order for Milo Sheff, et al. v. William A. O'Neill, et al., for the purpose of purchasing a building or portable classrooms, subject to the reversion provisions in subdivision (1) of subsection (c) of section 10-264h of the general statutes, leasing space, and purchasing equipment, including, but not limited to, computers and classroom furniture, not exceeding $5,000,000.

(i) For the Department of Children and Families: Grants-in-aid for construction, alteration, repairs and improvements to residential facilities, group homes, shelters and permanent family residences, not exceeding $5,000,000.

Sec. 14. (Effective July 1, 2011) 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 act are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to sections 12 to 19, inclusive, of this act, and temporary notes issued in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said sections 12 to 19, inclusive, 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.

Sec. 15. (Effective July 1, 2011) None of the bonds described in sections 12 to 19, inclusive, of this act, 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 or by or on behalf of such state officer, department or agency and stating such terms and conditions as said commission, in its discretion, may require.

Sec. 16. (Effective July 1, 2011) For the purposes of sections 12 to 19, inclusive, of this act, "state moneys" means the proceeds of the sale of bonds authorized pursuant to said sections 12 to 19 inclusive, 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 section 15 of this act for an authorization of bonds shall identify the project for which the proceeds of the sale of such bonds are to be used and expended and, in addition to any terms and conditions required pursuant to said section 15, include the recommendation of the person signing such request as to the extent to which federal, private or other moneys then available or thereafter to be made available for costs in connection with any such project should be added to the state moneys available or becoming available under said sections 12 to 19, inclusive, for such project. If the request includes a recommendation that some amount of such federal, private or other moneys should be added to such state moneys, then, if and to the extent directed by the State Bond Commission at the time of authorization of such bonds, said amount of such federal, private or other moneys then available or thereafter to be made available for costs in connection with such project may be added to any state moneys available or becoming available hereunder for such project and be used for such project. Any other federal, private or other moneys then available or thereafter to be made available for costs in connection with such project upon receipt shall, in conformity with applicable federal and state law, be used by the State Treasurer to meet the principal of outstanding bonds issued pursuant to said sections 12 to 19, inclusive, or to meet the principal of temporary notes issued in anticipation of the money to be derived from the sale of bonds theretofore authorized pursuant to said sections 12 to 19, inclusive, for the purpose of financing such costs, either by purchase or redemption and cancellation of such bonds or notes or by payment thereof at maturity. Whenever any of the federal, private or other moneys so received with respect to such project are used to meet the principal of such temporary notes or whenever the principal of any such temporary notes is retired by application of revenue receipts of the state, the amount of bonds theretofore authorized in anticipation of which such temporary notes were issued, and the aggregate amount of bonds which may be authorized pursuant to section 12 of this act shall each be reduced by the amount of the principal so met or retired. Pending use of the federal, private or other moneys so received to meet the principal as directed in this section, the amount thereof may be invested by the State Treasurer in bonds or obligations of, or guaranteed by, the state or the United States or agencies or instrumentalities of the United States, shall be deemed to be part of the debt retirement funds of the state, and net earnings on such investments shall be used in the same manner as the moneys so invested.

Sec. 17. (Effective July 1, 2011) The bonds issued pursuant to sections 12 to 19, inclusive, of this act, 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. 18. (Effective July 1, 2011) In accordance with section 13 of this act, the state, through the Department of Energy and Environmental Protection, the Department of Economic and Community Development, the Department of Public Health, the Department of Developmental Services, the Department of Mental Health and Addiction Services, the Department of Transportation, the Department of Social Services, the Department of Education and the Department of Children and Families may provide grants-in-aid and other financings to or for the agencies for the purposes and projects as described in said section 13. All financing shall be made in accordance with the terms of a contract at such time or times as shall be determined within authorization of funds by the State Bond Commission.

Sec. 19. (Effective July 1, 2011) In the case of any grant-in-aid made pursuant to section 13 of this act which is made to any entity which is not a political subdivision of the state, the contract entered into pursuant to section 18 of this act shall provide that if the premises for which such grant-in-aid was made ceases, within ten years of the date of such grant, to be used as a facility for which such grant was made, an amount equal to the amount of such grant, minus ten per cent per year for each full year which has elapsed since the date of such grant, shall be repaid to the state and that a lien shall be placed on such land in favor of the state to ensure that such amount will be repaid in the event of such change in use, provided if the premises for which such grant-in-aid was made are owned by the state, a municipality or a housing authority no lien need be placed.

Sec. 20. (Effective July 1, 2012) The State Bond Commission shall have power, in accordance with the provisions of sections 20 to 26, inclusive, of this act, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding $202,440,135.

Sec. 21. (Effective July 1, 2012) The proceeds of the sale of the bonds described in sections 20 to 26, inclusive, of this act, to the extent hereinafter stated, shall be used for the purpose of acquiring, by purchase or condemnation, undertaking, constructing, reconstructing, improving or equipping, or purchasing land or buildings or improving sites for the projects hereinafter described, including payment of architectural, engineering, demolition or related costs in connection therewith, or of payment of the cost of long-range capital programming and space utilization studies as hereinafter stated:

(a) For the Secretary of the State: Development, implementation and upgrade of information technology systems, not exceeding $2,000,000.

(b) For the State Comptroller: Enhancements and upgrades to the CORE financial system, not exceeding $7,000,000.

(c) For the Office of Policy and Management:

(1) Design and implementation of the Criminal Justice Information System, not exceeding $4,720,000;

(2) Design and implementation of state and local benchmarking systems, including technology development, not exceeding $2,000,000.

(d) For the Department of Administrative Services:

(1) Exterior renovations and improvements, including installation of air conditioning, to the State Office Building in Hartford, not exceeding $21,500,000;

(2) Infrastructure repairs and improvements, including fire, safety and compliance with the Americans with Disabilities Act improvements, improvements to state-owned buildings and grounds, including energy conservation and off-site improvements, and preservation of unoccupied buildings and grounds, including office development, acquisition, renovations for additional parking and security improvements, not exceeding $12,500,000.

(e) For the Department of Construction Services:

(1) Removal or encapsulation of asbestos in state-owned buildings, not exceeding $5,000,000;

(2) Infrastructure repairs and improvements, including fire, safety and compliance with the Americans with Disabilities Act improvements, improvements to state-owned buildings and grounds, including energy conservation and off-site improvements, and preservation of unoccupied buildings and grounds, including office development, acquisition, renovations for additional parking and security improvements, not exceeding $2,500,000;

(3) Notwithstanding the provisions of section 4b-1 of the general statutes, land acquisition, construction, improvements, repairs and renovations at fire training schools, not exceeding $2,000,000.

(f) For the Department of Public Safety: Alterations and improvements to buildings and grounds, including utilities, mechanical systems and energy conservation projects, not exceeding $2,212,000.

(g) For the Military Department:

(1) State matching funds for anticipated federal reimbursable projects, not exceeding $2,000,000;

(2) Alterations and improvements to buildings and grounds, including utilities, mechanical systems and energy conservation projects, not exceeding $1,000,000;

(3) Alterations, renovations and improvements to the National Guard Armory in New London and the storage facility at Stone's Ranch in East Lyme for the 250^th Engineering Company, not exceeding $2,000,000;

(h) For the Department of Energy and Environmental Protection:

(1) Dam repairs, including state-owned dams, not exceeding $4,000,000;

(2) Alterations, renovations and new construction at state parks and other recreation facilities, including Americans with Disabilities Act improvements, not exceeding $15,000,000.

(i) For the Department of Developmental Services: Fire, safety and environmental improvements to regional facilities for client and staff needs, including improvements in compliance with current codes, including intermediate care facilities and site improvements, handicapped access improvements, utilities, repair or replacement of roofs, air conditioning and other interior and exterior building renovations and additions at all state-owned facilities, not exceeding $5,000,000.

(j) For the Department of Mental Health and Addiction Services: Fire, safety and environmental improvements to regional facilities for client and staff needs, including improvements in compliance with current codes, including intermediate care facilities and site improvements, handicapped access improvements, utilities, repair or replacement of roofs, air conditioning and other interior and exterior building renovations and additions at all state-owned facilities, not exceeding $5,000,000;

(k) For the Department of Education: For the regional vocational-technical school system: Alterations and improvements to buildings and grounds, including new and replacement equipment, tools and supplies necessary to update curricula, vehicles and technology upgrades at all regional vocational-technical schools, not exceeding $28,000,000.

(l) For the Community College System:

(1) All Community Colleges:

(A) Alterations, renovations and improvements to facilities including fire safety and energy conservation projects, code compliance and acquisition of property, not exceeding $5,000,000;

(B) New and replacement instruction, research or laboratory equipment, not exceeding $9,000,000;

(C) System Technology Initiative, not exceeding $5,000,000;

(2) At Norwalk Community College: Implementation of phase III of the master plan, not exceeding $3,720,936;

(3) At Naugatuck Valley Community College: Alterations, renovations and improvements to Founders Hall, not exceeding $39,008,382;

(4) At Tunxis Community College: Implementation of phase III of the master plan, not exceeding $4,993,817.

(m) For the Department of Children and Families: Alterations, renovations and improvements to buildings and grounds, not exceeding $1,285,000.

(n) For the Judicial Department:

(1) Alterations, renovations and improvements to buildings and grounds at state-owned and maintained facilities, not exceeding $5,000,000;

(2) Security improvements at various state-owned and maintained facilities, not exceeding $1,000,000;

(3) Implementation of the technology strategic plan project, not exceeding $5,000,000.

Sec. 22. (Effective July 1, 2012) 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 act are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to sections 20 to 26, inclusive, of this act, and temporary notes issued 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.

Sec. 23. (Effective July 1, 2012) 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 or by or on behalf of such state officer, department or agency and stating such terms and conditions as said commission, in its discretion, may require.

Sec. 24. (Effective July 1, 2012) For the purposes of sections 20 to 26, inclusive, of this act, "state moneys" means the proceeds of the sale of bonds authorized pursuant to said sections 20 to 26, inclusive, 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 section 23 of this act for an authorization of bonds shall identify the project for which the proceeds of the sale of such bonds are to be used and expended and, in addition to any terms and conditions required pursuant to said section 23, shall include the recommendation of the person signing such request as to the extent to which federal, private or other moneys then available or thereafter to be made available for costs in connection with any such project should be added to the state moneys available or becoming available hereunder for such project. If the request includes a recommendation that some amount of such federal, private or other moneys should be added to such state moneys, then, if and to the extent directed by the State Bond Commission at the time of authorization of such bonds, said amount of such federal, private or other moneys then available, or thereafter to be made available for costs in connection with such project, may be added to any state moneys available or becoming available hereunder for such project and shall be used for such project. Any other federal, private or other moneys then available or thereafter to be made available for costs in connection with such project shall, upon receipt, be used by the State Treasurer, in conformity with applicable federal and state law, to meet the principal of outstanding bonds issued pursuant to sections 20 to 26, inclusive, of this act, or to meet the principal of temporary notes issued in anticipation of the money to be derived from the sale of bonds theretofore authorized pursuant to said sections 20 to 26, inclusive, for the purpose of financing such costs, either by purchase or redemption and cancellation of such bonds or notes or by payment thereof at maturity. Whenever any of the federal, private or other moneys so received with respect to such project are used to meet the principal of such temporary notes or whenever principal of any such temporary notes is retired by application of revenue receipts of the state, the amount of bonds theretofore authorized in anticipation of which such temporary notes were issued, and the aggregate amount of bonds which may be authorized pursuant to section 20 of this act, shall each be reduced by the amount of the principal so met or retired. Pending use of the federal, private or other moneys so received to meet principal as hereinabove directed, the amount thereof may be invested by the State Treasurer in bonds or obligations of, or guaranteed by, the state or the United States or agencies or instrumentalities of the United States, shall be deemed to be part of the debt retirement funds of the state, and net earnings on such investments shall be used in the same manner as the moneys so invested.

Sec. 25. (Effective July 1, 2012) Any balance of proceeds of the sale of said bonds authorized for any project described in section 21 of this act in excess of the cost of such project may be used to complete any other project described in said section 21, if the State Bond Commission shall so determine and direct. Any balance of proceeds of the sale of said bonds in excess of the costs of all the projects described in said section 21 shall be deposited to the credit of the General Fund.

Sec. 26. (Effective July 1, 2012) The bonds issued pursuant to sections 20 to 26, inclusive, of this act, 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. 27. (Effective July 1, 2012) The State Bond Commission shall have power, in accordance with the provisions of sections 27 to 30, inclusive, of this act, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding $50,000,000.

Sec. 28. (Effective July 1, 2012) The proceeds of the sale of said bonds shall be used by the Department of Economic and Community Development for the purposes hereinafter stated: Housing development and rehabilitation, including moderate cost housing, moderate rental, congregate and elderly housing, urban homesteading, community housing development corporations, housing purchase and rehabilitation, housing for the homeless, housing for low income persons, limited equity cooperatives and mutual housing projects, abatement of hazardous material including asbestos and lead-based paint in residential structures, emergency repair assistance for senior citizens, housing land bank and land trust, housing and community development, predevelopment grants and loans, reimbursement for state and federal surplus property, private rental investment mortgage and equity program, housing infrastructure, demolition, renovation or redevelopment of vacant buildings or related infrastructure, septic system repair loan program, acquisition and related rehabilitation including loan guarantees for private developers of rental housing for the elderly, projects under the program established in section 8-37pp of the general statutes, and participation in federal programs, including administrative expenses associated with those programs eligible under the general statutes, not exceeding $50,000,000;

Sec. 29. (Effective July 1, 2012) 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 or by or on behalf of such state officer, department or agency and stating such terms and conditions as said commission, in its discretion may require.

Sec. 30. (Effective July 1, 2012) 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 sections 27 to 30, inclusive, of this act, are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to sections 27 to 30, inclusive, of this act, 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. Such bonds issued pursuant to section 27 of this act shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such 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. 31. (Effective July 1, 2012) The State Bond Commission shall have power, in accordance with the provisions of sections 31 to 38, inclusive, of this act, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding $89,000,000.

Sec. 32. (Effective July 1, 2012) The proceeds of the sale of the bonds described in sections 31 to 38, inclusive, of this act, shall be used for the purpose of providing grants-in-aid and other financing for the projects, programs and purposes hereinafter stated:

(a) For the Department of Energy and Environmental Protection:

(1) Grants-in-aid for containment, removal or mitigation of identified hazardous waste disposal sites, not exceeding $10,000,000;

(2) Grants-in-aid to municipalities for open space land acquisition and development for conservation or recreational purposes, not exceeding $5,000,000.

(b) For the Department of Economic and Community Development: Regional brownfield redevelopment loan fund, not exceeding $25,000,000.

(c) For the Department of Public Health: Grants-in-aid to community health centers, primary care organizations and municipalities for the purchase of equipment, renovations, improvements and expansion of facilities, not exceeding $2,000,000.

(d) For the Department of Developmental Services: Grants-in-aid to private, nonprofit organizations for alterations and improvements to nonresidential facilities, not exceeding $2,000,000.

(e) For the Department of Mental Health and Addiction Services: Grants-in-aid to private, non-profit organizations that are exempt under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, for community-based residential and outpatient facilities for purchases, repairs, alterations, and improvements, not exceeding $5,000,000.

(f) For the Department of Transportation: Grants-in-aid for improvements to ports and marinas, including dredging and navigational direction, not exceeding $25,000,000.

(g) For the Department of Social Services: Grants-in-aid for neighborhood facilities, child day care projects, elderly centers, multipurpose human resource centers, shelter facilities for victims of domestic violence and food distribution facilities, not exceeding $10,000,000.

(h) For the Department of Children and Families: Grants-in-aid for construction, alteration, repairs and improvements to residential facilities, group homes, shelters and permanent family residences, not exceeding $5,000,000.

Sec. 33. (Effective July 1, 2012) 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 act are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to sections 31 to 38, inclusive, of this act, and temporary notes issued in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said sections 31 to 38, inclusive, of this act, 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.

Sec. 34. (Effective July 1, 2012) None of the bonds described in sections 31 to 38, inclusive, of this act, 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 or by or on behalf of such state officer, department or agency and stating such terms and conditions as said commission, in its discretion, may require.

Sec. 35. (Effective July 1, 2012) For the purposes of sections 31 to 38, inclusive, of this act, "state moneys" means the proceeds of the sale of bonds authorized pursuant to said sections 31 to 38 inclusive, 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 section 34 of this act for an authorization of bonds shall identify the project for which the proceeds of the sale of such bonds are to be used and expended and, in addition to any terms and conditions required pursuant to said section 34, include the recommendation of the person signing such request as to the extent to which federal, private or other moneys then available or thereafter to be made available for costs in connection with any such project should be added to the state moneys available or becoming available under said sections 31 to 38, inclusive, for such project. If the request includes a recommendation that some amount of such federal, private or other moneys should be added to such state moneys, then, if and to the extent directed by the State Bond Commission at the time of authorization of such bonds, said amount of such federal, private or other moneys then available or thereafter to be made available for costs in connection with such project may be added to any state moneys available or becoming available hereunder for such project and be used for such project. Any other federal, private or other moneys then available or thereafter to be made available for costs in connection with such project upon receipt shall, in conformity with applicable federal and state law, be used by the State Treasurer to meet the principal of outstanding bonds issued pursuant to said sections 31 to 38, inclusive, or to meet the principal of temporary notes issued in anticipation of the money to be derived from the sale of bonds theretofore authorized pursuant to said sections 31 to 38, inclusive, for the purpose of financing such costs, either by purchase or redemption and cancellation of such bonds or notes or by payment thereof at maturity. Whenever any of the federal, private or other moneys so received with respect to such project are used to meet the principal of such temporary notes or whenever the principal of any such temporary notes is retired by application of revenue receipts of the state, the amount of bonds theretofore authorized in anticipation of which such temporary notes were issued, and the aggregate amount of bonds which may be authorized pursuant to section 31 of this act shall each be reduced by the amount of the principal so met or retired. Pending use of the federal, private or other moneys so received to meet the principal as directed in this section, the amount thereof may be invested by the State Treasurer in bonds or obligations of, or guaranteed by, the state or the United States or agencies or instrumentalities of the United States, shall be deemed to be part of the debt retirement funds of the state, and net earnings on such investments shall be used in the same manner as the moneys so invested.

Sec. 36. (Effective July 1, 2012) The bonds issued pursuant to sections 31 to 38, inclusive, of this act, 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. 37. (Effective July 1, 2012) In accordance with section 32 of this act, the state, through the Department of Energy and Environmental Protection, the Department of Economic and Community Development, the Department of Public Health, the Department of Developmental Services, the Department of Mental Health and Addiction Services, the Department of Transportation, the Department of Social Services and the Department of Children and Families may provide grants-in-aid and other financings to or for the agencies for the purposes and projects as described in said section 32. All financing shall be made in accordance with the terms of a contract at such time or times as shall be determined within authorization of funds by the State Bond Commission.

Sec. 38. (Effective July 1, 2012) In the case of any grant-in-aid made pursuant to section 32 of this act which is made to any entity which is not a political subdivision of the state, the contract entered into pursuant to section 37 of this act shall provide that if the premises for which such grant-in-aid was made ceases, within ten years of the date of such grant, to be used as a facility for which such grant was made, an amount equal to the amount of such grant, minus ten per cent per year for each full year which has elapsed since the date of such grant, shall be repaid to the state and that a lien shall be placed on such land in favor of the state to ensure that such amount will be repaid in the event of such change in use, provided if the premises for which such grant-in-aid was made are owned by the state, a municipality or a housing authority no lien need be placed.

Sec. 39. (Effective from passage) Notwithstanding any defect in the authorization process for an ordinance entitled "An Ordinance Appropriating $1,600,000 For The Newton Street Area Sewer Project And Authorizing The Issue Of A Total Of $1,600,000 Bonds of the City to Meet Said Appropriation, Consisting of Up to $1,600,000 Public Act 07-51 Bonds and $800,000 General Obligation Bonds and Pending the Issuance Thereof the Making of Temporary Borrowings for Such Purpose", including, but not limited to, incorrect timing of the publication of the notice of passage of ordinance, the city of Norwich is authorized to issue and sell bonds for such purposes and undertake the project as set forth in the ordinance approved by the City Council on October 19, 2009, and bonds issued or to be issued pursuant thereto, are hereby ratified, confirmed and validated, and shall be and are valid and binding general obligations of the city of Norwich, and valid obligations of the Department of Public Utilities in accordance with the ordinance and public act 07-51, codified as sections 7-261 and 7-263a of the general statutes, and further, any proceedings or acts taken, or omitted, to adopt the ordinance, authorize the project and the issuance of bonds therefore, are hereby ratified, confirmed, validated and corrected.

Sec. 40. (Effective from passage) Notwithstanding the provisions of sections 7-371 and 7-378a of the general statutes, or any other public or special act or charter or ordinance or resolution that limits or imposes conditions on the final maturity of, or the due date of the last sinking fund payment for, bonds issued by the town of Canaan to evidence a loan from the United States Department of Agriculture for costs of design, construction or equipping of a fire station housing emergency equipment, the last installment of any series of such bonds shall mature, or the last sinking fund payment for such series of bonds shall be due not later than forty years from the date of issue of such series.

Statement of Legislative Commissioners:

The sections that change "Department of Public Works" to "Department of Construction Services" have been moved from sSB 1008 to sSB 1006, for proper placement of the sections.

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact:

Explanation

The bill authorizes: (1) $421.1 million in General Obligation (GO) bonds in FY 12 and (2) $341.4 million in GO bonds in FY 13. The total General Fund debt service cost for principal and interest payments to bond $421.1 million over 20 years assuming a 5.0% interest rate, is $642.2 million (comprised of $221.1 million in interest and $421.1 in principal). The debt service cost to bond $341.4 million over 20 years assuming a 5.0% interest rate, is $520.7 million (comprised of $179.3 million in interest and $341.4 in principal). The first year that the state will experience costs associated with the bonds depends on when they are allocated through the State Bond Commission and when the funds are expended.

There will be a municipal revenue gain from the $5 million provided in each of FY 12 and FY 13 for grants-in-aid for acquisition of open space for conservation or recreation purposes.

Validating the ordinance approved by the Norwich City Council on October 19, 2009 allows the city to proceed with the issuance of the bonds. The provision has no direct fiscal impact.

The bill extends the term of bonds issued by the town of Canaan from 20 to 40 years. This will reduce the size of the annual debt service payments that Canaan must make on the bonds but will also increase the total debt service cost due over the life of the bonds.

The Out Years

The fiscal impact identified above for the General Fund would continue into the future for the term of issuance of the bonds.

OLR Bill Analysis

sSB 1008

AN ACT AUTHORIZING BONDS OF THE STATE FOR CAPITAL IMPROVEMENTS AND OTHER PURPOSES.

SUMMARY:

This bill authorizes up to $421.15 million in state general obligation (GO) bonding for FY 12 and up to $341.44 million for FY 13 for state facilities, infrastructure, and programs; development and rehabilitation for housing projects and supportive housing; and grants to nonprofit organizations, municipalities, and other eligible entities. The bonds are subject to standard issuance procedures and have a maximum term of 20 years. The bill includes a standard provision requiring private entities receiving bond-funded grants for facilities to repay a portion of the grant if a facility ceases to be used for the grant's purpose within 10 years of the entity receiving it.

The bill also validates bonds issued by the city of Norwich for a sewer project and allows certain bonds issued by the town of Canaan to mature in up to 40 years, instead of the statutorily required limit of 20 years.

EFFECTIVE DATE: FY 12 authorizations are effective July 1, 2011, FY 13 authorizations are effective July 1, 2012, and provisions relating to Norwich and Canaan bonds are effective on passage.

BOND AUTHORIZATIONS FOR FY 12 AND FY 13

Table 1 lists the purpose and amounts of the bill's GO bond authorizations for FY 12 and FY 13.

TABLE 1: PROPOSED GO BOND AUTHORIZATIONS

§ 39 — NORWICH SEWER PROJECT BONDS

The bill validates an ordinance approved by the Norwich City Council on October 19, 2009 authorizing $1.6 million in revenue bonds and $800,000 in GO bonds to finance the Newton Street Area sewer project. It authorizes Norwich to issue and sell the bonds and makes them valid obligations of the city and its Department of Utilities. It also validates any proceedings or acts taken or omitted in adopting the ordinance, approving the project, and issuing the bonds.

§ 40 — CANAAN BONDS

By law, municipal bonds must mature, and the final sinking fund payment for such bonds must occur, no more than 20 years after the bonds are issued. This bill supersedes the statute to double the maximum term to 40 years for bonds issued by the town of Canaan to evidence a loan from the U.S. Department of Agriculture for the cost of designing, building, and equipping a fire station housing emergency equipment.

BACKGROUND

Related Bills

sSB 1227 (File 736), authorizes up to $1.5 million in GO bonds to the Department of Economic and Community Development for the following grants:

1. $500,000 to the Metropolitan Economic Commission for elderly housing;

2. $500,000 to the John E. Rogers African American Cultural Center for converting the former Northwest-Jones School to a cultural center; and

3. $500,000 to Catholic Charities in Hartford for affordable, supportive housing.

sSB 1010 (File 739), dissolves the Department of Public Works (DPW) and establishes a Department of Construction Services (DCS) for purposes of construction, construction management, and security management. It makes the DCS commissioner, rather than the DPW commissioner, responsible for constructing and developing state-owned buildings and real estate.

sHB 6386 (File 394), creates the Department of Energy and Environmental Protection (DEEP) by merging the departments of Environmental Protection (DEP) and Public Utility Control (DPUC). It also transfers various energy-related responsibilities and powers from the Office of Policy and Management (OPM) to DEEP.

Related Act

SB 1239, An Act Concerning the Budget for the Biennium Ending June 30, 2013, assumes (1) the transfer of authority over state construction projects from DPW to a new DCS and (2) the consolidation of DEP and DPUC into a new Department of Energy and Environmental Protection. SB 1239 was passed by both houses and signed by the governor on May 4, 2011.

COMMITTEE ACTION

Finance, Revenue and Bonding Committee

Joint Favorable Substitute