House Bill No. 7502
House Bill No. 7502
June 5 Special Session, PUBLIC ACT NO. 97-1
AN ACT INCREASING CERTAIN BOND AUTHORIZATIONS FOR
CAPITAL IMPROVEMENTS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Subsections (f) and (g) of section
3-20 of the general statutes, as amended by
section 43 of public act 97-11 of the June 18
special session, are repealed and the following is
substituted in lieu thereof:
(f) With the exception of refunding bonds,
the proceeds of the sale of the bonds and any
moneys held or otherwise set aside for the
repayment of the bonds shall be deposited with the
Treasurer or, at the direction of the Treasurer,
with a commercial bank or trust company, in trust
for the benefit of the state, pending the use or
application thereof, for the purpose and projects
specified in the bond act empowering the State
Bond Commission to authorize such bonds. Any
expense incurred in connection with the carrying
out of the provisions of this section, including
the issuance of refunding bonds, shall be paid
from the accrued interest and premiums or from the
proceeds of the sale of such bonds or refunding
bonds and in the same manner as other obligations
of the state, except that expenses incurred in
connection with the preparation, issuance and
delivery of general obligation bonds issued in
accordance with sections 3-17 and 10-183m, and
delivered to the retirement fund provided for in
section 10-183r shall be paid out of the General
Fund if sufficient accrued interest and premiums
are not available to pay such expenses. With the
exception of the proceeds of refunding bonds
DEPOSITED IN A DEFEASANCE ESCROW FUND, pending the
use or application of any such bond proceeds or
any such funds, such proceeds or funds may be
deposited with the Treasurer in such fund or funds
of the state as appropriate or at the direction of
the Treasurer in a commercial bank or trust
company with or without security to the credit of
such fund or funds, or may be invested by, or at
the direction of the Treasurer in bonds or
obligations of, or guaranteed by, the state or the
United States, or agencies or instrumentalities of
the United States, in certificates of deposit,
commercial paper, savings accounts and bank
acceptances, in the obligations of any state of
the United States or any political subdivision
THEREOF OR THE OBLIGATIONS OF ANY INSTRUMENTALITY,
authority or agency [thereof] OF ANY STATE,
provided that at the time of investment such
obligations are rated within one of the top two
rating categories of any nationally recognized
rating service or of any rating service recognized
by the state Commissioner of Banking, and
applicable to such obligations, in the obligations
of any regional school district in this state, of
any municipality in this state or any metropolitan
district in this state, provided that at the time
of investment such obligations of such government
entity are rated within one of the top three
rating categories of any nationally recognized
rating service or of any rating service recognized
by the state Commissioner of Banking, and
applicable to such obligations, or in any fund in
which a trustee may invest pursuant to section
36a-353, or in investment agreements with
financial institutions whose LONG-TERM OBLIGATIONS
ARE RATED WITHIN THE TOP TWO RATING CATEGORIES OF
ANY NATIONALLY RECOGNIZED RATING SERVICE OR OF ANY
RATING SERVICE RECOGNIZED BY THE STATE
COMMISSIONER OF BANKING OR WHOSE short-term
obligations are rated within the top [two] rating
[categories] CATEGORY of any nationally recognized
rating service or of any rating service recognized
by the state Commissioner of Banking, or
investment agreements fully secured by obligations
of, or guaranteed by, the United States or
agencies or instrumentalities of the United
States. Except as may be provided herein or in any
other public or special act, net earnings of
investments of proceeds of bonds and such funds,
and accrued interest and premiums on the issuance
of such bonds shall, after payment of expenses
incurred by the Treasurer or State Bond Commission
in connection with their issuance, if any, be
deposited to the credit of the General Fund.
(g) With the exception of refunding bonds,
whenever a bond act empowers the State Bond
Commission to authorize bonds for any project or
purpose or projects or purposes, and whenever the
State Bond Commission finds that the authorization
of such bonds will be in the best interests of the
state, it shall authorize such bonds by resolution
adopted by the approving vote of at least a
majority of said commission. No such resolution
shall be so adopted by the State Bond Commission
unless it finds that there has been filed with it
(1) any capital development impact statement and
any human services facility colocation statement
[required] to be filed with the Secretary of the
Office of Policy and Management, IF SO REQUESTED
BY THE SECRETARY, pursuant to section 4b-23, AS
AMENDED BY OF THIS ACT; (2) a statement from the
Commissioner of Agriculture, pursuant to section
22-6, for projects which would convert twenty-five
or more acres of prime farmland to a
nonagricultural use, and (3) such requests and
such other documents as it or said bond act
require, provided no resolution with respect to
any school building project financed pursuant to
section 10-287d or any interest subsidy financed
pursuant to section 93 of public act 97-265 shall
require the filing of any statements pursuant to
subdivision (1) or (2) of this section. Any such
resolution so adopted by the State Bond Commission
shall recite the bond act under which said
commission is empowered to authorize such bonds
and the filing of all requests and other
documents, if any, required by it or such bond
act, and shall state the principal amount of the
bonds authorized and a description of the purpose
or project for which such bonds are authorized.
Such description shall be sufficient if made
merely by reference to a numbered subsection,
subdivision or other applicable section of such
bond act. The agenda of each meeting, or any
supporting documents included with such agenda,
shall include a reference to the statute or public
or special act which is the source of any funds to
be used for any project on such agenda, including
any contingency funds and any reuse or
reallocation of funds previously approved for any
other use or project, and a notation of the
outside source from which any funds for any such
project were received, if any. Upon adoption of a
resolution, the principal amount of the bonds
authorized therein for such purpose or project
shall be deemed to be an appropriation and
allocation of such amount for such purpose or
project, respectively, and subject to approval by
the Governor of allotment thereof and to any
authorization for such project or purpose that may
otherwise be required, contracts may be awarded
and obligations incurred with respect to any such
project or purpose in amounts not in the aggregate
exceeding such authorized principal amount,
notwithstanding that such contracts and
obligations may at a particular time exceed the
amount of the proceeds from the sale of such bonds
theretofore received by the state. In any such
resolution so adopted, the State Bond Commission
may include provision for the date or dates of
such bonds, the maturity of such bonds and,
notwithstanding the provisions of any bond act
taking effect prior to July 1, 1973, provision for
either serial or term, sinking fund or other
reserve fund requirements, if any, due dates of
the interest thereon, the form of such bonds, the
denominations and designation of such bonds,
registration, conversion and transfer privileges
and the terms of redemption with or without
premium and the date and manner of sale of such
bonds, provisions for the consolidation of such
bonds with other bonds including refunding bonds
for the purpose of sale as provided in subsection
(h) hereof, limitations with respect to the
interest rate or rates on such bonds, provisions
for receipt and deposit or investment of the good
faith deposit pending delivery of such bonds and
such other terms and conditions of such bonds and
of the issuance and sale thereof as the State Bond
Commission may determine to be in the best
interest of the state, provided the State Bond
Commission may delegate to the Treasurer all or
any part of the foregoing powers in which event
the Treasurer shall exercise such powers until the
State Bond Commission, by adoption of a resolution
prior to exercise of such powers by the Treasurer
shall elect to reassume the same. Such powers
shall be exercised from time to time in such
manner as the Treasurer shall determine to be in
the best interests of the state and he shall file
a certificate of determination setting forth the
details thereof with the secretary of the State
Bond Commission on or before the date of delivery
of such bonds, the details of which were
determined by him in accordance with such
delegation. The State Bond Commission may
authorize the Commissioner of Economic and
Community Development to defer payments of
interest or principal, or a portion thereof, in
the case of a troubled loan, as defined in
subdivision (1) of subsection (e) of section
8-37x, made by the commissioner under any
provision of the general statutes.
Sec. 2. Subsections (a) and (b) of section
4-66c of the general statutes are repealed and the
following is substituted in lieu thereof:
(a) For the purposes of subsection (b) of
this section, the State Bond Commission shall have
power, from time to time, to authorize the
issuance of bonds of the state in one or more
series and in principal amounts not exceeding in
the aggregate [two] THREE hundred [seventy-five]
EIGHTY-FOUR million [eight] SIX hundred
ninety-five thousand nine hundred two dollars,
provided [ninety] FIFTY-FOUR million FOUR HUNDRED
THOUSAND dollars of said authorization shall be
effective July 1, [1996] 1998. All provisions of
section 3-20, AS AMENDED BY THIS ACT, or the
exercise of any right or power granted thereby,
which are not inconsistent with the provisions of
this section, are hereby adopted and shall apply
to all bonds authorized by the State Bond
Commission pursuant to this section, and temporary
notes in anticipation of the money to be derived
from the sale of any such bonds so authorized may
be issued in accordance with said section 3-20 and
from time to time renewed. Such bonds shall mature
at such time or times not exceeding twenty years
from their respective dates as may be provided in
or pursuant to the resolution or resolutions of
the State Bond Commission authorizing such bonds.
None of said bonds shall be authorized except upon
a finding by the State Bond Commission that there
has been filed with it a request for such
authorization, which is signed by or on behalf of
the Secretary of the Office of Policy and
Management and states such terms and conditions as
said commission in its discretion may require.
Said bonds issued pursuant to this section shall
be general obligations of the state and the full
faith and credit of the state of Connecticut are
pledged for the payment of the principal of and
interest on said bonds as the same become due, and
accordingly as part of the contract of the state
with the holders of said bonds, appropriation of
all amounts necessary for punctual payment of such
principal and interest is hereby made, and the
Treasurer shall pay such principal and interest as
the same become due.
(b) The proceeds of the sale of said bonds,
to the extent hereinafter stated, shall be used,
subject to the provisions of subsections (c) and
(d) of this section, for the purpose of
redirecting, improving and expanding state
activities which promote community conservation
and development and improve the quality of life
for urban residents of the state as hereinafter
stated: (1) For the Department of Economic and
Community Development: Economic and community
development projects, including administrative
costs incurred by the Department of Economic and
Community Development, not exceeding [fifty-eight]
SIXTY-SEVEN million [five] THREE hundred thousand
dollars, provided [five] FOUR million FOUR HUNDRED
THOUSAND dollars of said authorization shall be
effective July 1, [1996] 1998; [, of which not
more than two million dollars shall be used for
the Technology-Based Revolving Loan Fund program;]
(2) for the Department of Transportation: Urban
mass transit, not exceeding one million nine
hundred ninety-five thousand nine hundred two
dollars; (3) for the Department of Environmental
Protection: Recreation development and solid waste
disposal projects, not exceeding two million
dollars; (4) for the Department of Social
Services: Child day care projects, elderly
centers, shelter facilities for victims of
domestic violence, emergency shelters and related
facilities for the homeless, multipurpose human
resource centers and food distribution facilities,
not exceeding thirty-nine million one hundred
thousand dollars, provided four million dollars of
said authorization shall be effective July 1,
1994; (5) for the Department of Economic and
Community Development: Housing projects, not
exceeding three million dollars; (6) for the
Office of Policy and Management: (A) Grants-in-aid
to municipalities for a pilot demonstration
program to leverage private contributions for
redevelopment of designated historic preservation
areas, not exceeding one million dollars; (B)
grants-in-aid for urban development projects
including economic and community development,
transportation, environmental protection, public
safety, children and families and social services
projects and programs, including, in the case of
economic and community development projects
administered on behalf of the Office of Policy and
Management by the Department of Economic and
Community Development, administrative costs
incurred by the Department of Economic and
Community Development, not exceeding [one] TWO
hundred seventy million three hundred thousand
dollars, provided [eighty-five] FIFTY million
dollars of said authorization shall be effective
July 1, [1996] 1998.
Sec. 3. Subsection (a) of section 4a-10 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) For the purposes described in subsection
(b) of this section, the State Bond Commission
shall have the power, from time to time, to
authorize the issuance of bonds of the state in
one or more series and in principal amounts not
exceeding in the aggregate one hundred [fourteen]
FORTY-ONE million five hundred thousand dollars,
provided [eleven] TEN million eight hundred
thousand dollars of said authorization shall be
effective July 1, [1996] 1998.
Sec. 4. Section 4b-21 of the general
statutes, as amended by section 2 of public act
97-71, is repealed and the following is
substituted in lieu thereof:
(a) When the General Assembly is not in
session, the trustees of any state institution,
the State Board of Education or the Commissioner
of Correction may, subject to the provisions of
section 4b-23, AS AMENDED BY THIS ACT, purchase or
acquire for the state, through the Commissioner of
Public Works, any land or interest therein if such
action seems advisable to protect the state's
interest or to effect a needed economy, and may,
subject to the provisions of said section,
contract through the Commissioner of Public Works
for the sale or exchange of any land or interest
therein belonging to the state except that The
University of Connecticut may purchase or acquire
for the state and may dispose of or exchange any
land or interest therein directly. When the
General Assembly is not in session, the
Commissioner of Public Works, with the approval of
the State Properties Review Board, may give or
obtain an option upon any land or interest therein
which is not under the control of the trustees of
any state institution, the State Board of
Education or the Commissioner of Correction when
such action seems advisable, and such option shall
remain in force until the fifteenth day of August
following the next session of the General
Assembly.
(b) Any state agency, department or
institution having custody and control of land, an
improvement to land or interest in land, belonging
to the state, shall inform the Secretary of the
Office of Policy and Management, in writing, when
such land, improvement or interest or any part
thereof is not needed by the agency, department or
institution. Upon receipt of such notification,
the secretary shall arrange for such agency,
department or institution to forthwith transfer
custody and control of such land, improvement or
interest to the Department of Public Works, along
with adequate funding for personnel and other
operating expenses required for the maintenance of
such land, improvement or interest, and shall
notify all state agencies, departments and
institutions that such land, improvement or
interest is available. Within ninety days of
receipt of such notification from the secretary,
any state agency, department or institution that
is interested in utilizing the land, improvement
or interest shall submit a plan to the secretary
that sets forth the proposed use for the land,
improvement or interest and a budget and timetable
for such use. If the Commissioner of Economic and
Community Development determines that such land,
improvement or interest can be utilized or adapted
for use as an emergency shelter or transitional
living facility for homeless persons or can be
utilized or exchanged for property which can be
utilized for the construction, rehabilitation or
renovation of housing for persons and families of
low and moderate income, said commissioner may (1)
within such ninety-day period, submit to the
secretary, in lieu of such plan, a preliminary
plan indicating that the land, improvement or
interest can be utilized, adapted or exchanged for
such housing purposes and stating the type of
housing that is planned and (2) within six months
after the end of such ninety-day period, submit a
comprehensive plan for the development of such
housing to the secretary, in a form prescribed by
the secretary. If the Commissioner of Economic and
Community Development submits preliminary and
comprehensive plans to the secretary within such
periods, the agency, department or institution
having custody and control of the land,
improvement or interest shall transfer custody and
control to the Commissioner of Economic and
Community Development in accordance with such
procedures as the secretary may prescribe. If (A)
the Commissioner of Economic and Community
Development does not submit a preliminary plan to
the secretary within such ninety-day period or so
submits a preliminary plan but does not submit a
comprehensive plan to the secretary within such
six-month period, and (B) one or more agencies,
departments or institutions submit a plan for such
land, improvement or interest to the secretary
within such ninety-day period, the secretary shall
analyze such agency, department or institution
plan or plans and determine whether (i) custody
and control of the land, improvement or interest
shall be transferred to one of such agencies,
departments or institutions, in which case the
agency, department or institution having custody
of the land, improvement or interest shall make
such transfer, or (ii) the land, improvement or
interest shall be treated as surplus.
(c) If the secretary determines that such
land, improvement, interest or part thereof may
properly be treated as surplus, he shall notify
the Commissioner of Public Works. If the secretary
also determines that such land, improvement or
interest or part thereof was purchased or improved
with proceeds of tax exempt obligations issued or
to be issued by the state, he shall also notify
the Treasurer. The Commissioner of Public Works
may sell, exchange or lease, or enter into
agreements concerning, such land, improvement,
interest or part thereof, after (1) notifying (A)
the municipality or municipalities in which such
land, improvement or interest is located and (B)
the members of the General Assembly representing
such municipality or municipalities, and (2)
obtaining the approval of (A) the Secretary of the
Office of Policy and Management, (B) the State
Properties Review Board and (C) the joint standing
committees of the General Assembly having
cognizance of matters relating to (i) state
revenue and (ii) the purchase and sale of state
property and facilities and (3) if such land,
improvement, interest or part thereof was
purchased or improved with proceeds of tax exempt
obligations issued or to be issued by the state,
obtaining the approval of the Treasurer. The
Treasurer may disapprove such a transaction only
if the transaction would affect the tax exempt
status of such obligations and could not be
modified to maintain such tax exempt status. If a
proposed agreement for such a conveyance has not
been submitted to the State Properties Review
Board within three years after the Commissioner of
Public Works provides such notice to such
municipality and such members of the General
Assembly, or if the board does not approve the
proposed agreement within five years after such
notice, the Commissioner of Public Works may not
convey such land, improvement or interest without
again so notifying such municipality and such
members of the General Assembly. In the case of a
proposed lease of land, an improvement to land or
an interest in land, or any part thereof, with a
person, firm or corporation in the private sector,
for a term of six months or more, the Commissioner
of Public Works shall comply with such notice
requirement by notifying in writing the chief
executive officer of the municipality in which the
land, improvement or interest is located and the
members of the General Assembly representing such
municipality, not less than two weeks before
seeking the approval of said secretary, board and
committees, concerning the proposed lease and the
manner in which the lessee proposes to use the
land, improvement or interest. Each agency,
department or institution which informs the
secretary that any land, improvement or interest
in land is not needed shall retain responsibility
for its security and maintenance until the
Commissioner of Public Works receives custody and
control of the property, if any. The Treasurer
shall execute and deliver any deed or instrument
necessary to convey the title to any property the
sale or exchange of which or a contract for the
sale or exchange of which is authorized by this
section.
(d) Upon approval of the proposed action of
the Commissioner of Public Works by said secretary
and board, said commissioner shall request
approval of such action by said joint standing
committees. The committees shall approve or
disapprove such action within fifteen days after
receipt of the request. If a committee does not
act on a request within that time the request
shall be deemed to be approved by the committee.
[(e) Twenty per cent of the funds received by
the state from the sale of land or an improvement
to land under this section shall be allocated to
the state agency, department or institution which
had custody and control of such land or
improvement and shall be used by the agency,
department or institution for capital improvements
to, or the maintenance of, other land or
improvements to land which is under the custody
and control of the agency, department or
institution. The remaining eighty per cent of the
funds received by the state from the sale of land
or an improvement to land under this section shall
be deposited in the state properties improvement
account established under section 4b-21a. The
provisions of this subsection shall not apply to
(1) the sale of land or an improvement to land
under the custody and control of the Department of
Transportation or (2) the sale of any portion of
the facilities or campuses of the Connecticut
Valley Hospital, Norwich Hospital, Fairfield Hills
Hospital, Southbury Training School, Seaside
Center, Henry D. Altobello Children and Youth
Center or Mansfield Training School.
(f)] (e) No provision of this section shall
be construed to limit, supersede or repeal any
other provision of law relating to the powers or
duties of any state agency.
[(g)] (f) The requirements of subsections (b)
to (d), inclusive, of this section shall not apply
to land which the Commissioner of Environmental
Protection has acquired pursuant to 42 USC 9601 et
seq., the federal Comprehensive Environmental
Response, Compensation and Liability Act of 1980,
as amended, (CERCLA).
Sec. 5. Subsection (a) of section 4b-23 of
the general statutes, as amended by section 3 of
public act 97-247, is repealed and the following
is substituted in lieu thereof:
(a) As used in this section, "facility" means
buildings and real property owned or leased by the
state. The Secretary of the Office of Policy and
Management shall establish guidelines which
further define such term. All agencies and
departments of the state shall notify the
Secretary of the Office of Policy and Management
of their facility needs including, but not limited
to, the types of such facilities and the
municipalities or general location for the
facilities. Each agency and department shall
continue long-range planning for facility needs,
establish a plan for its long-range facility needs
and submit such plan and related facility project
requests to the Secretary of the Office of Policy
and Management, and a copy thereof to the
Commissioner of Public Works, on or before
September first of each even-numbered year. Each
such request shall be accompanied by a capital
development impact statement, as required by
section 4-66b, and a colocation statement, as
required by section 4b-31, IF THE SECRETARY SO
REQUIRES. Each agency and department shall base
its long-term planning for facility needs on a
program plan. The secretary shall establish a
content guide and schedule for such plans. Each
agency and department shall prepare its program
plan in accordance with such guide and file it
with the secretary pursuant to such schedule.
Facility plans shall include, but not be limited
to: Identification of (1) long-term and short-term
facility needs, (2) opportunities for the
substitution of state-owned space for leased
space, (3) facilities proposed for demolition or
abandonment which have potential for other uses
and (4) space modifications or relocations that
could result in cost or energy savings. Each
agency or department program plan and facility
plan and its facility project requests shall cover
a period of at least five years. The secretary
shall provide agencies and departments with
instructions for preparing program plans,
long-term facility plans and facility project
requests and shall provide appropriate
programmatic planning assistance. The Commissioner
of Public Works shall assist agencies and
departments with long-term facilities planning and
the preparation of cost estimates for such plans
and requests. The Secretary of the Office of
Policy and Management shall review such plans and
prepare an integrated state facility plan which
meets the aggregate facility needs of the state.
The secretary shall review the cost effective
retrofit measures recommended to him by the
Commissioner of Public Works under subsection (b)
of section 16a-38a and include in the plan those
measures which would best attain the energy
performance standards established under
subdivision (1) of subsection (b) of section
16a-38.
Sec. 6. Subsection (k) of section 4b-23 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(k) Any agency or department of state
government requiring additional facilities not
included in the state facility plan may submit a
request to the Secretary of the Office of Policy
and Management outlining the justification for its
request. The agency or department shall also
provide (1) in the case of a request not
previously submitted to the secretary pursuant to
subsection (a) of this section, the reasons why it
was not so submitted, and (2) in the case of a
request so submitted, sufficient new information
to warrant reconsideration. Such request shall
include a statement of the degree to which the
proposed state facility plan promotes the goals
addressed in subsection (e) of section 4b-31, IF
THE SECRETARY SO REQUIRES. Such request shall also
be accompanied by a capital development impact
statement as required under section 4-66b, IF THE
SECRETARY SO REQUIRES. Subsections (b) to (d),
inclusive, of this section shall not apply to the
review of such requests. Any such request for
additional facilities which are determined by the
Secretary of the Office of Policy and Management
to be of emergency nature or the lack of which may
seriously hinder the efficient operation of the
state, may be approved by the Properties Review
Board and the Secretary of the Office of Policy
and Management and shall be known as an approval
made during the interim between state facility
plans. No action may be taken by the state to
lease or construct such additional facilities
unless the secretary makes such a determination.
Sec. 7. Subdivision (4) of subsection (a) of
section 7-536 of the general statutes, as amended
by section 1 of public act 97-244, is repealed and
the following is substituted in lieu thereof:
(4) "Local capital improvement project" means
a municipal capital expenditure project for any of
the following purposes: (A) Road construction,
renovation, repair or resurfacing, (B) sidewalk
and pavement improvements, (C) construction,
renovation, enlargement or repair of sewage
treatment plants and sanitary or storm, water or
sewer lines, including separation of lines, (D)
public building construction other than schools,
including renovation, repair, code compliance,
energy conservation and fire safety projects, (E)
construction, renovation, enlargement or repair of
dams or bridges, (F) construction, renovation,
enlargement or repair of water treatment or
filtration plants and water mains, (G)
construction, renovation or enlargement of solid
waste facilities, (H) improvements to public
parks, (I) the preparation and revision of local
capital improvement plans projected for a period
of not less than five years and so prepared as to
show the general description, need and estimated
cost of each individual capital improvement, (J)
improvements to emergency communications systems,
[or] (K) public housing projects, including
renovations and improvements and energy
conservation and the development of additional
housing, OR (L) RENOVATIONS TO OR CONSTRUCTION OF
VETERANS MEMORIAL MONUMENTS. "Local capital
improvement project" means only capital
expenditures and includes repairs incident to
reconstruction and renovation but does not include
ordinary repairs and maintenance of an ongoing
nature.
Sec. 8. Subsection (a) of section 7-538 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) For the purposes described in subsection
(b) of this section, the State Bond Commission
shall have the power, from time to time, to
authorize the issuance of bonds of the state in
one or more series and in principal amounts not
exceeding in the aggregate [two] THREE hundred
[ninety] FIFTY million dollars, provided thirty
million dollars of said authorization shall be
effective July 1, [1996] 1998.
Sec. 9. Subsection (a) of section 10-265d of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) For purposes of making grants pursuant to
section 10-265c, the State Treasurer is authorized
and directed, subject to and in accordance with
the provisions of section 3-20, AS AMENDED BY THIS
ACT, to issue bonds of the state from time to time
in one or more series in an aggregate amount not
exceeding [fifteen] FOURTEEN million NINE HUNDRED
THOUSAND dollars, provided one million dollars of
said authorization shall be effective July 1,
1994. Bonds of each series shall bear such date or
dates and mature at such time or times not
exceeding twenty years from their respective dates
and be subject to such redemption privileges, with
or without premium, as may be fixed by the State
Bond Commission. They shall be sold at not less
than par and accrued interest and the full faith
and credit of the state is pledged for the payment
of the interest thereon and the principal thereof
as the same shall become due, and accordingly and
as part of the contract of the state with the
holders of said bonds, appropriation of all
amounts necessary for punctual payment of such
principal and interest is hereby made, and the
Treasurer shall pay such principal and interest as
the same become due. The State Treasurer is
authorized to invest temporarily in direct
obligations of the United States, United States
agency obligations, certificates of deposit,
commercial paper or bank acceptances such portion
of the proceeds of such bonds or of any notes
issued in anticipation thereof as may be deemed
available for such purpose.
Sec. 10. Subsection (b) of section 10a-25b of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) The proceeds of the sale of said bonds,
to the extent hereinafter stated, shall be used to
encourage, promote, develop and assist high
technology products and programs within
Connecticut by infusion of financial assistance in
situations when such financial aid would not
otherwise reasonably be available from other
sources as hereinafter stated: (1) For the State
Board of Education: High technology equipment for
programs in the vocational-technical schools, not
exceeding two million dollars; (2) for [the
Department of Economic and Community Development]
CONNECTICUT INNOVATIONS, INCORPORATED: (A)
Matching funds for cooperative high technology
research and development projects and programs,
not exceeding nine million dollars; (B) [grants]
FINANCIAL AID, AS DEFINED IN SUBDIVISION (4) OF
SECTION 32-34, to public institutions of higher
education for high technology projects and
programs, not exceeding eleven million five
hundred thousand dollars.
Sec. 11. Section 10a-25g of the general
statutes is repealed and the following is
substituted in lieu thereof:
Through [the Department of Economic and
Community Development] CONNECTICUT INNOVATIONS,
INCORPORATED the state may provide [state
financial assistance in the form of grants]
FINANCIAL AID, AS DEFINED IN SUBDIVISION (4) OF
SECTION 32-34, for the development of high
technology projects and programs in accordance
with the provisions of subdivision (2) of
subsection (b) of section 10a-25b, AS AMENDED BY
THIS ACT. Such [grants] FUNDING shall be made in
accordance with [regulations adopted by the
department in accordance with the provisions of
chapter 54. Said department] WRITTEN PROCEDURES
ADOPTED BY CONNECTICUT INNOVATIONS, INCORPORATED
IN ACCORDANCE WITH THE PROVISIONS OF SECTION
1-121. UNTIL JUNE 30, 1996, CONNECTICUT
INNOVATIONS, INCORPORATED may use not more than
three per cent of the total amount of any annual
bond allocation for high technology projects and
programs DESCRIBED IN SECTION 10a-25b OR 10a-25g,
AS AMENDED BY THIS ACT, for the administration and
evaluation of such projects and programs.
Sec. 12. Subsection (b) of section 10a-232 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) Notwithstanding the foregoing, (1) the
constituent units of the state system of higher
education may participate in one or more education
loan programs with the authority and may incur
indebtedness pursuant to authority loans and (2)
the authority may create and establish one or more
reserve funds to be known as special capital
reserve funds and may pay into such special
capital reserve funds (A) any moneys appropriated
and made available by the state for the purposes
of such funds, (B) any proceeds of sale of notes
or bonds, to the extent provided in the resolution
of the authority authorizing the issuance thereof,
and (C) any other moneys which may be made
available to the authority for the purpose of such
funds from any other source or sources. The moneys
held in or credited to any special capital reserve
fund established under this section, except as
hereinafter provided, shall be used solely for the
payment of the principal of bonds of the authority
secured by such capital reserve fund as the same
become due, the purchase of such bonds of the
authority, the payment of interest on such bonds
of the authority or the payment of any redemption
premium required to be paid when such bonds are
redeemed prior to maturity; provided, the
authority shall have power to provide that moneys
in any such fund shall not be withdrawn therefrom
at any time in such amount as would reduce the
amount of such funds to less than the maximum
amount of principal and interest becoming due by
reason of maturity or a required sinking fund
instalment in any succeeding calendar year on the
bonds of the authority then outstanding and
secured by such special capital reserve fund, or
such lesser amount specified by the authority in
its resolution authorizing the issuance of any
such bonds, such amount being herein referred to
as the "required minimum capital reserve", except
for the purpose of paying such principal of,
redemption premium and interest on such bonds of
the authority secured by such special capital
reserve becoming due and for the payment of which
other moneys of the authority are not available.
The authority may provide that it shall not issue
bonds at any time if the required minimum capital
reserve on outstanding bonds secured by a special
capital reserve fund and the bonds then to be
issued and secured by a special capital reserve
fund will exceed the amount of such special
capital reserve fund at the time of issuance,
unless the authority, at the time of the issuance
of such bonds, shall deposit in such special
capital reserve fund from the proceeds of the
bonds so to be issued, or otherwise, an amount
which, together with the amount then in such
special capital reserve fund, will be not less
than the required minimum capital reserve. The
authority may, as part of the contract of the
authority with the owners of such bonds, provide
that on or before December first, annually, there
is deemed to be appropriated from the state
General Fund such sums, if any, as shall be
certified by the chairman of the authority to the
Secretary of the Office of Policy and Management
and the Treasurer of the state, as necessary to
restore each such special capital reserve fund to
the amount equal to the required minimum capital
reserve of such fund, and such amounts shall be
allotted and paid to the authority. For the
purpose of evaluation of any such special capital
reserve fund, obligations acquired as an
investment for any such fund shall be valued at
amortized cost. Nothing contained in this section
shall preclude the authority from establishing and
creating other debt service reserve funds in
connection with the issuance of bonds or notes of
the authority. Subject to any agreement or
agreements with owners of outstanding notes and
bonds of the authority, any amount or amounts
allotted and paid to the authority pursuant to
this section shall be repaid to the state from
moneys of the authority at such time as such
moneys are not required for any other of its
corporate purposes and in any event shall be
repaid to the state on the date one year after all
bonds and notes of the authority theretofore
issued on the date or dates such amount or amounts
are allotted and paid to the authority or
thereafter issued, together with interest on such
bonds and notes, with interest on any unpaid
instalments of interest and all costs and expenses
in connection with any action or proceeding by or
on behalf of the owners thereof, are fully met and
discharged. Notwithstanding any other provisions
contained in this chapter, the aggregate amount of
bonds outstanding at any time secured by such
special capital reserve funds authorized to be
created and established by this section shall not
exceed one hundred [ten] SEVENTY million dollars
and no such bonds shall be issued to pay program
costs unless the authority is of the opinion and
determines that the revenues to be derived from
the program shall be sufficient (1) to pay the
principal of and interest on the bonds issued to
finance the program, (2) to 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, (3) to
pay the cost of maintaining and servicing the
program and keeping it properly insured and (4) to
pay such other costs of the program as may be
required.
Sec. 13. Subsection (c) of section 17b-803 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(c) For the purposes described in
subdivisions (1), (2) and (3) of subsection (a) of
this section, the State Bond Commission shall have
the power, from time to time, to authorize the
issuance of bonds of the state in one or more
series and in principal amounts not exceeding in
the aggregate [nine] EIGHT million one hundred
thousand dollars.
Sec. 14. Section 22-26hh of the general
statutes, as amended by section 7 of public act
97-234, is repealed and the following is
substituted in lieu thereof:
The State Bond Commission shall have power,
from time to time, to authorize the issuance of
bonds of the state in one or more series and in
principal amounts not exceeding in the aggregate
[seventy-eight] EIGHTY million two hundred fifty
thousand dollars, the proceeds of which shall be
used by the Commissioner of Agriculture for the
purposes of this chapter provided not more than
fifty thousand dollars, PROVIDED ONE MILLION
DOLLARS OF SAID AUTHORIZATION SHALL BE EFFECTIVE
JULY 1, 1998, shall be used for the purposes of
section 22-26dd and not more than two million
dollars shall be used for the purposes of section
22-26jj. All provisions of section 3-20, or the
exercise of any right or power granted thereby
which are not inconsistent with the provisions of
this section are hereby adopted and shall apply to
all bonds authorized by the State Bond Commission
pursuant to this section, and temporary notes in
anticipation of the money to be derived from the
sale of any such bonds so authorized may be issued
in accordance with said section 3-20, AS AMENDED
BY 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. None of said
bonds shall be authorized except upon a finding by
the State Bond Commission that there has been
filed with it a request for such authorization,
which is signed by or on behalf of the Secretary
of the Office of Policy and Management and states
such terms and conditions as said commission, in
its discretion, may require. Said bonds issued
pursuant to this section shall be general
obligations of the state and the full faith and
credit of the state of Connecticut are pledged for
the payment of the principal of and interest on
said bonds as the same become due, and accordingly
and as part of the contract of the state with the
holders of said bonds, appropriation of all
amounts necessary for punctual payment of such
principal and interest is hereby made, and the
Treasurer shall pay such principal and interest as
the same become due.
Sec. 15. Subsection (a) of section 22a-483 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) For the purposes of sections 22a-475 to
22a-483, inclusive, AS AMENDED BY THIS ACT, the
State Bond Commission shall have the power, from
time to time, to authorize the issuance of bonds
of the state in one or more series and in
principal amounts, not exceeding in the aggregate
[five] SIX hundred [seventy-six] THIRTY-FIVE
million three hundred thirty thousand dollars,
provided [twenty-three] FOURTEEN million [five
hundred eighty thousand] dollars of said
authorization shall be effective July 1, [1996]
1998.
Sec. 16. Subsection (d) of section 22a-483 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(d) Notwithstanding the foregoing, nothing
herein shall preclude the State Bond Commission
from authorizing the issuance of revenue bonds, in
principal amounts not exceeding in the aggregate
[six] EIGHT hundred [thirty-three] SIXTY-SEVEN
million [three] NINE hundred thousand dollars,
provided [forty-one] EIGHTY-THREE million THREE
HUNDRED THOUSAND dollars of said authorization
shall be effective July 1, [1996] 1998, that are
not general obligations of the state of
Connecticut to which the full faith and credit of
the state of Connecticut are pledged for the
payment of the principal and interest. Such
revenue bonds shall mature at such time or times
not exceeding thirty years from their respective
dates as may be provided in or pursuant to the
resolution or resolutions of the State Bond
Commission authorizing such revenue bonds. The
revenue bonds, revenue state bond anticipation
notes and revenue state grant anticipation notes
authorized to be issued under sections 22a-475 to
22a-483, inclusive, AS AMENDED BY THIS ACT, shall
be special obligations of the state and shall not
be payable from nor charged upon any funds other
than the revenues or other receipts, funds or
moneys pledged therefor as provided in SAID
sections 22a-475 to 22a-483, inclusive, including
the repayment of municipal loan obligations; nor
shall the state or any political subdivision
thereof be subject to any liability thereon except
to the extent of such pledged revenues or the
receipts, funds or moneys pledged therefor as
provided in said sections 22a-475 to 22a-483,
inclusive. The issuance of revenue bonds, revenue
state bond anticipation notes and revenue state
grant anticipation notes under the provisions of
SAID sections 22a-475 to 22a-483, inclusive, shall
not directly or indirectly or contingently
obligate the state or any political subdivision
thereof to levy or to pledge any form of taxation
whatever therefor or to make any appropriation for
their payment. The revenue bonds, revenue state
bond anticipation notes and revenue state grant
anticipation notes shall not constitute a charge,
lien or encumbrance, legal or equitable, upon any
property of the state or of any political
subdivision thereof, except the property mortgaged
or otherwise encumbered under the provisions and
for the purposes of SAID sections 22a-475 to
22a-483, inclusive. The substance of such
limitation shall be plainly stated on the face of
each revenue bond, revenue state bond anticipation
note and revenue state grant anticipation note
issued pursuant to SAID sections 22a-475 to
22a-483, inclusive, shall not be subject to any
statutory limitation on the indebtedness of the
state and such revenue bonds, revenue state bond
anticipation notes and revenue state grant
anticipation notes, when issued, shall not be
included in computing the aggregate indebtedness
of the state in respect to and to the extent of
any such limitation. As part of the contract of
the state with the owners of such revenue bonds,
revenue state bond anticipation notes and revenue
state grant anticipation notes, all amounts
necessary for the punctual payment of the debt
service requirements with respect to such revenue
bonds, revenue state bond anticipation notes and
revenue state grant anticipation notes shall be
deemed appropriated, but only from the sources
pledged pursuant to SAID sections 22a-475 to
22a-483, inclusive. The proceeds of such revenue
bonds or notes may be deposited in the Clean Water
Fund for use in accordance with the permitted uses
of such fund. Any expense incurred in connection
with the carrying out of the provisions of this
section, including the costs of issuance of
revenue bonds, revenue state bond anticipation
notes and revenue state grant anticipation notes
may be paid from the accrued interest and premiums
or from any other proceeds of the sale of such
revenue bonds, revenue state bond anticipation
notes or revenue state grant anticipation notes
and in the same manner as other obligations of the
state. All provisions of subsections (g), AS
AMENDED BY THIS ACT, (k), (l), (s) and (u) of
section 3-20 or the exercise of any right or power
granted thereby which are not inconsistent with
the provisions of SAID sections 22a-475 to
22a-483, inclusive, are hereby adopted and shall
apply to all revenue bonds, state revenue bond
anticipation notes and state revenue grant
anticipation notes authorized by the State Bond
Commission pursuant to SAID sections 22a-475 to
22a-483, inclusive. For the purposes of subsection
(o) of section 3-20, "bond act" shall be construed
to include SAID sections 22a-475 to 22a-483,
inclusive.
Sec. 17. Section 32-41b of the general
statutes is repealed and the following is
substituted in lieu thereof:
The State Bond Commission shall have power in
accordance with the provisions of section 3-20, AS
AMENDED BY THIS ACT, to authorize the issuance of
bonds of the state in one or more series and in
principal amounts not exceeding in the aggregate
fifty-one million four hundred [fifty] FORTY-FIVE
thousand SIX HUNDRED dollars, provided five
million dollars of said authorization shall be
effective July 1, 1996, to carry out the purposes
of this section as follows: (1) Loans for the
development and marketing of products in the high
technology field within the state, not exceeding
forty-four million dollars, provided five million
dollars of said authorization shall be effective
July 1, 1996; (2) royalty financing for start-up
costs and product development costs of high
technology products and procedures in the state,
not exceeding seven million four hundred [fifty]
FORTY-FIVE thousand SIX HUNDRED dollars. Any loans
originated under subdivision (1) of this section
shall bear interest at a rate to be determined in
accordance with subsection (t) of SAID section
3-20. The principal and interest of said bonds
shall be payable at such place or places as may be
determined by the State Treasurer and shall bear
such date or dates, mature at such time or times,
bear interest at such rate or different or varying
rates, be payable at such time or times, be in
such denominations, be in such form with or
without interest coupons attached, carry such
registration and transfer privileges, be payable
in such medium of payment and be subject to such
terms of redemption with or without premium as,
irrespective of the provisions of said section
3-20, may be provided by the authorization of the
State Bond Commission or fixed in accordance
therewith. The proceeds of the sale of said bonds,
after deducting therefrom all expenses of issuance
and sale, shall be paid to the Connecticut
Innovations, Incorporated Fund created under
section 32-41a. When the State Bond Commission has
acted to issue such bonds or a portion thereof,
the Treasurer may, pending the issue of such
bonds, issue, in the name of the state, temporary
notes in anticipation of the money to be received
from the sale of such bonds. In issuing the bonds
authorized hereunder, the State Bond Commission
may require repayment of such bonds by the
corporation as shall seem desirable consistent
with the purposes of this section and section
32-41a. Such terms for repayment may include a
forgiveness of interest, a holiday in the
repayment of interest or principal or both.
Sec. 18. Subsections (a) and (b) of section
32-235 of the general statutes are repealed and
the following is substituted in lieu thereof:
(a) For the purposes described in subsection
(b) of this section the State Bond Commission
shall have the power, from time to time, to
authorize the issuance of bonds of the state in
one or more series and in principal amounts not
exceeding in the aggregate three hundred [two]
TWENTY-FIVE million [five] THREE hundred thousand
dollars, provided [twenty-five] FIVE million
dollars of said authorization shall be effective
on July 1, [1996] 1998.
(b) The proceeds of the sale of said bonds,
to the extent of the amount stated in subsection
(a) of this section, shall be used by the
Department of Economic and Community Development
for the purposes of sections 32-220 to 32-234,
inclusive, and for the Connecticut job training
finance demonstration program pursuant to sections
32-23uu and 32-23vv provided three million dollars
shall be used by said department solely for the
purposes of section 32-23uu and not more than five
million two hundred fifty thousand dollars of the
amount stated in said subsection (a) may be used
by said department for the purposes of section
31-3u.
Sec. 19. Subsection (o) of section 13b-76 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(o) The State Bond Commission may make
representations and agreements for the benefit of
the holders of bonds or bond anticipation notes
issued pursuant to sections 13b-74 to 13b-77,
inclusive, which are necessary or appropriate to
ensure the exemption of interest on such bonds or
bond anticipation notes from taxation under the
Internal Revenue Code of 1986, as amended, or any
subsequent corresponding internal revenue code of
the United States, including agreements to pay
rebates to the federal government of investment
earnings derived from the investment of the
proceeds of bonds or bond anticipation notes, or
may delegate to the Treasurer the authority to
make such representations and agreements on behalf
of the state. Any such agreement may include (1) a
covenant to pay rebates to the federal government
of investment earnings derived from the investment
of the proceeds of bonds or bond anticipation
notes, [;] (2) a covenant that the state will not
limit or alter its rebate obligations until its
obligations to the holders or owners of such bonds
or bond anticipation notes are finally met and
discharged, and (3) provisions to (A) establish
trust and other accounts which may be appropriate
to carry out such representations and agreements,
(B) retain fiscal agents as depositories for such
funds and accounts and (C) provide that such
fiscal agents may act as trustee of such funds and
accounts. Any such agreement entered into prior to
May 16, 1988, is hereby validated. THE STATE BOND
COMMISSION MAY ALSO AUTHORIZE, BY A VOTE OF A
MAJORITY OF THE MEMBERS OF SAID COMMISSION, BONDS
OR BOND ANTICIPATION NOTES ISSUED PURSUANT TO
SECTIONS 13b-74 TO 13b-77, INCLUSIVE, IN SUCH FORM
AND MANNER THAT THE INTEREST ON SUCH BONDS AND
BOND ANTICIPATION NOTES MAY BE INCLUDABLE UNDER
THE INTERNAL REVENUE CODE OF 1986, OR ANY
SUBSEQUENT CORRESPONDING INTERNAL REVENUE CODE OF
THE UNITED STATES, AS FROM TIME TO TIME AMENDED,
IN THE GROSS INCOME OF THE HOLDERS OR OWNERS OF
SUCH BONDS OR BOND ANTICIPATION NOTES UPON THE
FINDING BY SAID COMMISSION THAT THE ISSUANCE OF
SUCH TAXABLE BONDS OR BOND ANTICIPATION NOTES IS
IN THE PUBLIC INTEREST.
Sec. 20. This act shall take effect from its
passage.
Approved July 31, 1997