Connecticut Seal

General Assembly

 

Raised Bill No. 5393

February Session, 2018

 

LCO No. 1953

 

*01953_______TRA*

Referred to Committee on TRANSPORTATION

 

Introduced by:

 

(TRA)

 

AN ACT ESTABLISHING THE CONNECTICUT TRANSPORTATION FINANCE AUTHORITY TO MAINTAIN MAJOR STATE HIGHWAYS.

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

Section 1. (NEW) (Effective from passage) As used in this section and sections 2 and 3 of this act, unless the context otherwise requires:

(1) "Electronic tolling system" means an electronic system for recording, monitoring, collecting and paying for tolls on the highways of this state, including, but not limited to, transponders or other electronic transaction or payment technology devices or video toll transaction systems; and

(2) "Toll operator" means a private entity that operates an electronic tolling system, which duties may include, but need not be limited to, collecting tolls, administrative charges and penalties.

Sec. 2. (NEW) (Effective from passage) (a) The provisions of this section shall not be effective until the General Assembly authorizes the implementation of electronic tolling systems on the highways, or the portions thereof, of this state.

(b) There is hereby established and created a body politic and corporate, constituting a public instrumentality and political subdivision of the state established and created for the performance of an essential public and governmental function, to be known as the Connecticut Transportation Finance Authority. The authority shall not be construed to be a department, institution or agency of the state.

(c) The powers of the authority shall be vested in and exercised by a board of directors, which shall consist of the following fifteen voting members: (1) (A) The Commissioner of Transportation, or the commissioner's designee, (B) the Commissioner of Motor Vehicles, or the commissioner's designee, (C) the Commissioner of Revenue Services, or the commissioner's designee, and (D) the Secretary of the Office of Policy and Management, or the secretary's designee, each serving ex officio; (2) five appointed by the Governor; (3) one appointed by the speaker of the House of Representatives; (4) one appointed by the majority leader of the House of Representatives; (5) one appointed by the minority leader of the House of Representatives; (6) one appointed by the president pro tempore of the Senate; (7) one appointed by the minority leader of the Senate; and (8) one appointed by the majority leader of the Senate. Each member appointed pursuant to subdivisions (2) to (8), inclusive, of this subsection shall serve for a term of four years. The Governor shall appoint the chairperson of the board from among the members of the board, with the advice and consent of both houses of the General Assembly. The chairperson shall serve at the pleasure of the Governor. The board shall select a vice-chairperson from among the members of the board and such other officers as it deems necessary. The appointing authorities shall make all initial appointments under this subsection not later than sixty days after the General Assembly authorizes the implementation of electronic tolling systems on the highways, or the portions thereof, of this state.

(d) Members of the board may not designate a representative to perform in their absence their respective duties under this section. Any vacancy occurring other than by expiration of term shall be filled in the same manner as the original appointment for the balance of the unexpired term. Any member of the board may be removed for misfeasance, malfeasance or wilful neglect of duty at the sole direction of the appointing authority.

(e) The chairperson shall, with the approval of the members of the board of directors, appoint an executive director of the authority who shall be an employee of the authority and paid a salary prescribed by the members. The executive director shall supervise the administrative affairs and technical activities of the authority in accordance with the directives of the board.

(f) Each member of the board shall be entitled to reimbursement for such member's actual and necessary expenses incurred during the performance of such member's official duties.

(g) Members may engage in private employment, or in a profession or business, subject to any applicable laws, rules and regulations of the state regarding official ethics or conflict of interest.

(h) Eight members of the board shall constitute a quorum, and an affirmative vote by a majority of the members present at a meeting of the board shall be sufficient for any action taken by the board. No vacancy in the membership of the board shall impair the right of a quorum to exercise all rights and perform all duties of the board.

(i) The authority shall continue as long as it has bonds or other obligations outstanding and until its existence is terminated by law, provided no such termination shall affect any outstanding contractual obligation of the authority and the state shall succeed to the obligations of the authority under any contract. Upon the termination of the existence of the authority, all its rights and properties shall pass to and be vested in the state of Connecticut.

(j) It shall not constitute a conflict of interest for a trustee, director, partner or officer of any person, firm or corporation, or any individual having a financial interest in a person, firm or corporation, to serve as a member of the board of directors, provided such trustee, director, partner, officer or individual shall comply with all applicable provisions of chapter 10 of the general statutes.

Sec. 3. (NEW) (Effective from passage) (a) The provisions of this section shall not be effective until the General Assembly authorizes the implementation of electronic tolling systems on the highways, or portions thereof, of this state.

(b) The purposes of the Connecticut Transportation Authority shall be to construct, maintain and operate electronic tolling systems on the highways, or portions thereof, of this state when authorized by the General Assembly and such authorization is effective, to use toll amounts to pay the cost of owning, maintaining, repairing, reconstructing, improving, rehabilitating, using, administering, controlling and operating such tolled highways, and to promote the safe and efficient movement of people and goods on such tolled highways. To accomplish the purposes of the authority, the authority is authorized and empowered to:

(1) Have perpetual succession as a body politic and corporate and to adopt bylaws for the regulation of its affairs and the conduct of its business;

(2) Adopt an official seal and alter the same at pleasure;

(3) Maintain an office at such place or places as it may designate;

(4) Sue and be sued in its own name, and plead and be impleaded;

(5) (A) Employ such assistants, agents and other employees as may be necessary or desirable who shall not be employees, as defined in subsection (b) of section 5-270 of the general statutes; (B) establish all necessary or appropriate personnel practices and policies, including those relating to hiring, promotion, compensation, retirement and collective bargaining, which need not be in accordance with chapter 68 of the general statutes, and the authority shall not be an employer as defined in subsection (a) of section 5-270 of the general statutes; and (C) engage consultants, attorneys and appraisers as may be necessary or desirable to carry out its purposes in accordance with this section and sections 2 and 4 of this act;

(6) Issue bonds, bond anticipation notes and other obligations of the authority for any of its corporate purposes, and to fund or refund the same, as provided in this section and sections 2 and 4 of this act;

(7) Receive and accept aid or contributions from any source of money, property, labor or other things of value, to be held, used and applied to carry out the purposes of this section and sections 2 and 4 of this act, subject to such conditions upon which such grants and contributions may be made, including, but not limited to, gifts or grants from any department, agency or instrumentality of the United States or this state for any purpose consistent with this section and sections 2 and 4 of this act;

(8) Borrow money for the purpose of obtaining working capital;

(9) Make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this section and sections 2 and 4 of this act, including contracts and agreements for such professional services as the authority deems necessary, including, but not limited to, financial consultants, bond counsel, underwriters and technical specialists;

(10) Acquire, lease, purchase, own, manage, hold and dispose of personal property, and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to the carrying out of these purposes;

(11) Invest in, acquire, lease, purchase, own, manage, hold and dispose of real property and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to carrying out the purposes of this section and sections 2 and 4 of this act, provided such transactions shall not be subject to approval, review or regulation by any state agency pursuant to title 4b of the general statutes or any other provision of the general statutes;

(12) Procure insurance against any liability or loss in connection with its property and other assets, in such amounts and from such insurers as it deems desirable and to procure insurance for employees;

(13) Account for and audit funds of the authority and funds of any recipients of funds from the authority;

(14) Retain and expend funds for technical, traffic, revenue, financial, legal and other consultants and experts to assist in the development and implementation of electronic tolling systems;

(15) Procure, retain and expend funds for toll operators, vendors, suppliers, designers, engineers, software designers, installers, contractors, maintenance personnel, back-office and customer service personnel, collections, enforcement and for other equipment, materials, personnel and services in order to assist in the development and implementation of electronic tolling systems;

(16) Enter into reciprocal agreements with other states, jurisdictions and operators of toll facilities in other states to enable the authority to obtain and share with such other states, jurisdictions and operators any toll operator information regarding an out-of-state registered owner of a vehicle that has used a tolled highway, including the make of the vehicle, the vehicle's license plate and the name and address of the registered owner of the vehicle;

(17) Enter into, or cause the toll operator on behalf of such authority to enter into, reciprocal agreements with other states, jurisdictions and operators of toll facilities in other states allowing for additional enforcement mechanisms for the efficient collection of tolls incurred by residents of states other than this state;

(18) Enter into an agreement with the Department of Emergency Services and Public Protection for the provision of law enforcement assistance by the state police on tolled highways that are not otherwise provided by the state police on state roads and highways;

(19) Enter into an agreement with the Department of Transportation for the provision of services on tolled highways;

(20) Charge, collect, retain and fix the amount of tolls for transit over or use of tolled highways, provided such amounts shall be fixed and changed by the authority, so as to ensure, at a minimum, funding that is sufficient to pay (1) costs related to the tolled highways, including, but not limited to, the cost of owning, maintaining, repairing, reconstructing, improving, rehabilitating, using, administering, controlling and operating such tolled highways; and (2) the principal of, redemption premium, if any, and interest on notes or bonds relating to the tolled highways, as such principal, premium or interest become due and payable, and to create and maintain reserves established for the operation and maintenance of the tolled highways;

(21) Provide advance notice of the tolls that will be charged and the option for payment to motor vehicle operators before such operators enter a tolled highway, or portion thereof.

(22) Deposit all revenues received by the authority into an account under the exclusive control of the authority, provided such revenues shall not be commingled with other funds and revenues and shall be expended only for the purposes and subject to the provisions of 23 USC 129(a)(3), as amended from time to time;

(23) Prior to commencing construction of an electronic tolling system, hold at least one public information meeting in the general vicinity of the proposed toll location to receive comments on the proposed toll, methodology for setting and changing the tolls and user classifications;

(24) Develop and implement a privacy policy relating to any toll customer information and other data collected, received, maintained, archived, accessed and disclosed by the authority to a toll operator; and

(25) Do all acts and things necessary or convenient to carry out the purposes of and the powers expressly granted by this section and sections 2 and 4 of this act.

Sec. 4. (NEW) (Effective from passage) The members of the board of directors of the Connecticut Transportation Finance Authority shall adopt written procedures, in accordance with the provisions of section 1-121 of the general statutes, for:

(1) Adopting an annual budget and plan of operations, including a requirement of board approval before the budget or plan may take effect;

(2) Hiring, dismissing, promoting and compensating employees of the authority, including an affirmative action policy and a requirement of board approval before a position may be created or a vacancy filled;

(3) Acquiring real and personal property and personal services, including a requirement of board approval for any nonbudgeted expenditure in excess of an amount to be determined by the board;

(4) Contracting for financial, legal, bond underwriting and other professional services, including a requirement that the authority solicit proposals at least once every three years for each such service which it uses;

(5) Issuing and retiring bonds, bond anticipation notes and other obligations of the authority;

(6) Awarding loans, grants and other financial assistance, including eligibility criteria, the application process and the role played by the authority's staff and board of directors; and

(7) The implementation of electronic tolling systems, including, but not limited to, the (A) establishment of variable or dynamic toll rates that take into consideration the day of the week, level of congestion or anticipated congestions; (B) establishment of different toll rates based on the type of vehicle classification, size, weight, number of axles or vehicle occupancy; (C) establishment of reduced or discounted tolls for toll road users or classes of users registered in the state that are equipped with transponders or similar technology and have valid toll customer accounts with the authority or the toll operator, as the case may be; (D) exemptions for high-occupancy commuter vehicles and motor vehicles leased to an agency of this state, owned by the state, used by a law enforcement unit, as defined in section 7-294a of the general statutes, used by a member of an emergency medical service organization, as defined in section 19a-175 of the general statutes, while responding to emergencies and used to provide public transit services; (E) the imposition of surcharges, premiums or additional fees for designated users or classes of users of a tolled highway who travel on such highway without a valid transponder or similar technology; (F) the imposition of administrative charges and penalties for late payment and toll evasion; and (G) due process procedures that include notice, the right to challenge a toll and associated charges, the opportunity for a hearing and a right to appeal.

Sec. 5. Subdivision (12) of section 1-79 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

(12) "Quasi-public agency" means Connecticut Innovations, Incorporated, the Connecticut Health and Education Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the State Housing Authority, the Materials Innovation and Recycling Authority, the Capital Region Development Authority, the Connecticut Lottery Corporation, the Connecticut Airport Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Retirement Security Authority, the Connecticut Port Authority, [and] the State Education Resource Center and the Connecticut Transportation Finance Authority.

Sec. 6. Section 1-120 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

As used in sections 1-120 to 1-123, inclusive:

(1) "Quasi-public agency" means Connecticut Innovations, Incorporated, the Connecticut Health and Educational Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, the Capital Region Development Authority, the Connecticut Lottery Corporation, the Connecticut Airport Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Retirement Security Authority, the Connecticut Port Authority, [and] the State Education Resource Center and the Connecticut Transportation Finance Authority.

(2) "Procedure" means each statement, by a quasi-public agency, of general applicability, without regard to its designation, that implements, interprets or prescribes law or policy, or describes the organization or procedure of any such agency. The term includes the amendment or repeal of a prior regulation, but does not include, unless otherwise provided by any provision of the general statutes, (A) statements concerning only the internal management of any agency and not affecting procedures available to the public, and (B) intra-agency memoranda.

(3) "Proposed procedure" means a proposal by a quasi-public agency under the provisions of section 1-121 for a new procedure or for a change in, addition to or repeal of an existing procedure.

Sec. 7. Section 1-124 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

(a) Connecticut Innovations, Incorporated, the Connecticut Health and Educational Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, the Connecticut Airport Authority, the Capital Region Development Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Retirement Security Authority, the Connecticut Port Authority, [and] the State Education Resource Center and the Connecticut Transportation Finance Authority shall not borrow any money or issue any bonds or notes which are guaranteed by the state of Connecticut or for which there is a capital reserve fund of any kind which is in any way contributed to or guaranteed by the state of Connecticut until and unless such borrowing or issuance is approved by the State Treasurer or the Deputy State Treasurer appointed pursuant to section 3-12. The approval of the State Treasurer or said deputy shall be based on documentation provided by the authority that it has sufficient revenues to (1) pay the principal of and interest on the bonds and notes issued, (2) establish, increase and maintain any reserves deemed by the authority to be advisable to secure the payment of the principal of and interest on such bonds and notes, (3) pay the cost of maintaining, servicing and properly insuring the purpose for which the proceeds of the bonds and notes have been issued, if applicable, and (4) pay such other costs as may be required.

(b) To the extent Connecticut Innovations, Incorporated, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, the Connecticut Health and Educational Facilities Authority, the Connecticut Airport Authority, the Capital Region Development Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Retirement Security Authority, the Connecticut Port Authority [or] the State Education Resource Center or the Connecticut Transportation Finance Authority is permitted by statute and determines to exercise any power to moderate interest rate fluctuations or enter into any investment or program of investment or contract respecting interest rates, currency, cash flow or other similar agreement, including, but not limited to, interest rate or currency swap agreements, the effect of which is to subject a capital reserve fund which is in any way contributed to or guaranteed by the state of Connecticut, to potential liability, such determination shall not be effective until and unless the State Treasurer or his or her deputy appointed pursuant to section 3-12 has approved such agreement or agreements. The approval of the State Treasurer or his or her deputy shall be based on documentation provided by the authority that it has sufficient revenues to meet the financial obligations associated with the agreement or agreements.

Sec. 8. Section 1-125 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

The directors, officers and employees of Connecticut Innovations, Incorporated, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, including ad hoc members of the Materials Innovation and Recycling Authority, the Connecticut Health and Educational Facilities Authority, the Capital Region Development Authority, the Connecticut Airport Authority, the Connecticut Lottery Corporation, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Retirement Security Authority, the Connecticut Port Authority, [and] the State Education Resource Center and the Connecticut Transportation Finance Authority and any person executing the bonds or notes of the agency shall not be liable personally on such bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof, nor shall any director or employee of the agency, including ad hoc members of the Materials Innovation and Recycling Authority, be personally liable for damage or injury, not wanton, reckless, wilful or malicious, caused in the performance of his or her duties and within the scope of his or her employment or appointment as such director, officer or employee, including ad hoc members of the Materials Innovation and Recycling Authority. The agency shall protect, save harmless and indemnify its directors, officers or employees, including ad hoc members of the Materials Innovation and Recycling Authority, from financial loss and expense, including legal fees and costs, if any, arising out of any claim, demand, suit or judgment by reason of alleged negligence or alleged deprivation of any person's civil rights or any other act or omission resulting in damage or injury, if the director, officer or employee, including ad hoc members of the Materials Innovation and Recycling Authority, is found to have been acting in the discharge of his or her duties or within the scope of his or her employment and such act or omission is found not to have been wanton, reckless, wilful or malicious.

Sec. 9. Subsection (b) of section 13b-61 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

(b) Notwithstanding any provision of subsection (a) of this section, there shall be paid promptly to the Treasurer and thereupon, unless required to be applied by the terms of any lien, pledge or obligation created by or pursuant to the 1954 declaration, part III (C) of chapter 240, credited to the Special Transportation Fund:

(1) On and after July 1, 1984, all moneys received or collected by the state or any officer thereof on account of, or derived from, sections 12-458 and 12-479, provided the State Comptroller is authorized to record as revenue to the General Fund for the fiscal year ending June 30, 1984, the amount of tax levied in accordance with said sections 12-458 and 12-479, on all fuel sold or used prior to the end of said fiscal year and which tax is received no later than July 31, 1984;

(2) On and after July 1, 1984, all moneys received or collected by the state or any officer thereof on account of, or derived from, motor vehicle receipts;

(3) On and after July 1, 1984, all moneys received or collected by the state or any officer thereof on account of, or derived from, (A) subsection (a) of section 14-192, and (B) royalty payments for retail sales of gasoline pursuant to section 13a-80;

(4) On and after July 1, 1985, all moneys received or collected by the state or any officer thereof on account of, or derived from, license, permit and fee revenues as defined in section 13b-59, except as provided under subdivision (3) of this subsection;

(5) On or after July 1, 1989, all moneys received or collected by the state or any officer thereof on account of, or derived from, section 13b-70;

(6) On and after July 1, 1984, all transportation-related federal revenues of the state;

(7) On and after July 1, 1997, all moneys received or collected by the state or any officer thereof on account of, or derived from, fees for the relocation of a gasoline station under section 14-320;

(8) On and after July 1, 1997, all moneys received or collected by the state or any officer thereof on account of, or derived from, section 14-319;

(9) On and after July 1, 1997, all moneys received or collected by the state or any officer thereof on account of, or derived from, fees collected pursuant to section 14-327b for motor fuel quality registration of distributors;

(10) On and after July 1, 1997, all moneys received or collected by the state or any officer thereof on account of, or derived from, annual registration fees for motor fuel dispensers and weighing or measuring devices pursuant to section 43-3;

(11) On and after July 1, 1997, all moneys received or collected by the state or any officer thereof on account of, or derived from, fees for the issuance of identity cards pursuant to section 1-1h;

(12) On and after July 1, 1997, all moneys received or collected by the state or any officer thereof on account of, or derived from, safety fees pursuant to subsection (w) of section 14-49;

(13) On and after July 1, 1997, all moneys received or collected by the state or any officer thereof on account of, or derived from, late fees for the emissions inspection of motor vehicles pursuant to subsection (k) of section 14-164c;

(14) On and after July 1, 1997, all moneys received or collected by the state or any officer thereof on account of, or derived from, the sale of information by the Commissioner of Motor Vehicles pursuant to subsection (b) of section 14-50a;

(15) On and after October 1, 1998, all moneys received by the state or any officer thereof on account of, or derived from, section 14-212b;

(16) On and after July 1, 2009, all moneys received or collected by the state or any officer thereof on account of, or derived from, any direct federal subsidy pursuant to Section 6431 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, and relating to bonds or bond anticipation notes issued by the state pursuant to sections 13b-74 to 13b-77, inclusive;

(17) On and after July 1, 2011, all moneys received or collected by the state or any officer thereof on account of, or derived from, sections 13b-61a to 13b-61c, inclusive; and

(18) On and after July 1, 2011, any other funds, moneys and receipts of the state required by law to be deposited, transferred or paid into the Special Transportation Fund other than proceeds of bonds or other securities of the state or of federal grants under the provisions of federal law. [; and]

[(19) On and after July 1, 2015, all moneys received or collected by the state or any officer thereof on account of, or derived from, the use of highways, expressways and ferries, except as necessary for the direct payment of debt service on obligations of the state incurred for transportation purposes.]

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section

Sec. 2

from passage

New section

Sec. 3

from passage

New section

Sec. 4

from passage

New section

Sec. 5

July 1, 2018

1-79(12)

Sec. 6

July 1, 2018

1-120

Sec. 7

July 1, 2018

1-124

Sec. 8

July 1, 2018

1-125

Sec. 9

July 1, 2018

13b-61(b)

Statement of Purpose:

To establish the Connecticut Transportation Finance Authority to maintain major state highways if and when the General Assembly authorizes the implementation of electronic tolling systems on such major state highways.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]