General Assembly Substitute Bill No. 5540
February Session, 2012 *_____HB05540PD____032612____*
General Assembly
Substitute Bill No. 5540
February Session, 2012
*_____HB05540PD____032612____*
AN ACT TRANSFERRING CERTAIN POWERS OF THE BRISTOL RESOURCE RECOVERY FACILITY OPERATING COMMITTEE TO THE WEST CENTRAL CONNECTICUT SOLID WASTE AND RECYCLING BOARD.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 1 of special act 92-25, as amended by section 1 of special act 01-10, is amended to read as follows (Effective July 1, 2014):
As used in special act 92-25, as amended by [this act, and] special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, section 8 of [this act] special act 01-10, as amended by this act, and section 9 of this act:
(1) "Bonds" means bonds, notes or other obligations, including, but not limited to, refunding bonds.
(2) "Inter-community agreement" means the agreement dated as of August 1, 1985, by and among the towns and cities of Bristol and New Britain and the towns of Berlin, Burlington, Plainville, Plymouth, Southington and Washington, as such agreement has been amended to include the towns of Wolcott, Warren, Hartland, Branford, Seymour and Prospect and as such agreement may be further amended from time to time.
[(3) "Original bonds" means the seventy-three million five hundred twenty thousand dollars face amount of Connecticut Development Authority Solid Waste and Electric Revenue Bonds, Ogden Martin Systems of Bristol, Inc. Project -1985 Series, issued September 18, 1985.
(4) "Original project agreements" means all agreements or contracts and amendments thereto entered into with respect to the issuance of the original bonds and the security therefor, including, but not limited to, the loan agreement, security agreement, service agreement, project agreement, inter-community agreement, reimbursement agreement and guarantee.]
[(5)] (3) "Project" means activities required to provide services to the municipalities of the [committee] board that may include, but are not limited to, (A) [the mass burn solid waste disposal, electric power generating and resource recovery facility in the city of Bristol, financed by the original bonds including any additions, renovations or other improvements thereto, (B)] any landfill project, or [(C)] (B) any solid waste disposal and resource recovery facility, including any electric power generating facility in connection therewith, or recycling facility, as defined in chapter 446d, or any plant, works, system or component of such a facility, equipment, machinery or other element of such a facility, or any part of such a facility, that the [committee] board or other person or entity designated by the [committee] board plans, designs, finances, constructs, manages, operates or maintains, including real estate and improvements thereto and the extension or provision of utilities and other appurtenant facilities deemed necessary by the [committee] board for the operation of the facility or a portion of the facility, including all property rights, easements and interests required and any additions, renovations or other improvements thereto.
[(6)] (4) "Refunding bonds" means bonds issued pursuant to [this act] special act 92-25, as amended by special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, to refinance the project and to finance related [cost] costs of such refinancing and to refinance any bonds issued by the [committee] board.
[(7)] (5) "Committee" means the [resource recovery operating committee] Bristol Resource Recovery Facility Operating Committee, created pursuant to subsection (c) of section 22a-221 of the general statutes and the inter-community agreement.
[(8)] (6) "Landfill project" means activities required to provide landfill services to the municipalities of the [committee] board that include, but are not limited to, the planning, acquiring, constructing, closing or expanding the city of Bristol landfill; providing a new landfill or access to a new landfill in any location; the payment of engineering and consulting fees; site preparation; wetlands replication; storm water management; landfill capping; monitoring, acquisition or transfer of real property or interests therein; providing gas control mechanisms, equipment, landscaping and all necessary and appropriate appurtenances thereto or the financing of costs, including, but not limited to, legal, printing, administrative, financing and related costs or the [committee's] board's share of such costs pursuant to an agreement to provide, develop or operate a landfill and share costs with other entities in connection with the landfill project.
(7) "Board" means the interlocal advisory board known as the West Central Connecticut Solid Waste and Recycling Board created pursuant to the interlocal agreement, which shall also be considered a committee for the purposes of subsection (c) of section 22a-221 of the general statutes.
(8) "Interlocal agreement" means the agreement created under the provisions of sections 7-339a to 7-339l, inclusive, of the general statutes, and as amended from time to time, which establishes the board and which may be made between, without limitation, the cities of Bristol, Meriden and New Britain and the towns of Berlin, Branford, Burlington, Hartland, Morris, Plainville, Plymouth, Prospect, Seymour, Southington, Warren, Washington and Wolcott.
(9) "Participating municipality" means a municipality that is a party to the interlocal agreement.
Sec. 2. Section 2 of special act 92-25, as amended by section 2 of special act 01-10, is amended to read as follows (Effective July 1, 2014):
(a) The [committee] board is authorized to issue (1) [refunding bonds to refinance all or any portion of the outstanding original bonds, (2)] bonds to finance a project, and [(3)] (2) refunding bonds. Such bonds may include the cost of issuance, debt service reserve, interest on the bonds for a period not to exceed five years, credit enhancement, call premium, fees and costs associated with any contract entered into by the [committee] board pursuant to this section and notice of redemption of the original or prior bonds, and in connection therewith to enter into forward purchase agreements and agreements to issue bonds at a future date. The [committee] board shall not issue any bonds in amounts which would cause the total amount of bonds issued by the [committee] board and outstanding at any time to exceed one hundred million dollars. Bonds shall not be considered outstanding to the extent they are payable from funds deposited in escrow in an amount sufficient, together with the investment earnings thereon which are to be retained in said escrow, to provide for the payment when due of the principal of and interest and any redemption premium on such bonds. The bonds shall not be indebtedness of the municipalities which are parties to the [inter-community] interlocal agreement, and no such municipality shall be obligated to pay such bonds, directly or indirectly, unless the municipality approves such obligation in accordance with the provisions of the [inter-community] interlocal agreement. Notwithstanding any provision in a participating municipality's charter or by-laws or in any other municipal document, the issuance and repayment of bonds and other indebtedness of the board shall be governed solely by the provisions of the interlocal agreement. If the legislative body of a participating municipality has validly approved the interlocal agreement and such interlocal agreement has become effective as provided therein, then the issuance and repayment of bonds and other indebtedness of the board shall not require approval by the legislative body of a participating municipality or adoption by a referendum of the voters of such participating municipality.
(b) In connection with or incidental to the carrying of bonds or in connection with or incidental to the issuance of bonds, the [committee] board may enter into such contracts as it may determine to be necessary or appropriate to place the obligations of the [committee] board, as represented by the bonds, in whole or in part, on such interest rate or cash flow basis as the [committee] board may determine, including, but not limited to, interest rate swap agreements, insurance agreements, forward payment conversion agreements, futures contracts, contracts providing for payments based on levels of or changes in interest rates, or market indices, contracts to manage interest rate risk, including without limitation, interest rate floors or caps, options, puts, calls and similar arrangements. Such contracts shall contain such payment, security, default, remedy and other terms and conditions as the [committee] board may deem appropriate and shall be entered into with such party or parties as the [committee] board may select, after giving due consideration, where applicable, to the creditworthiness of the counter party or counter parties, including any rating by a nationally recognized rating agency, the impact on any rating of any outstanding bonds or any other criteria as the [committee] board may deem appropriate, provided the long-term obligations of the counter party is rated the same or higher than the underlying rating of the [committee] board on the applicable bonds by at least one nationally recognized rating agency. The [committee] board may pledge the collateral that secures the applicable bonds or notes to the [committee's] board's payment obligations under any agreement entered into pursuant to this section. As part of a contract between the [committee] board and the parties to any agreement entered into pursuant to this section, appropriation of all amounts necessary for the punctual payment of the obligations of the [committee] board under such agreement is hereby made and the [committee] board shall pay such amounts as the same become due.
(c) The [committee] board may obtain from a commercial bank or an insurance company authorized to do business within or without this state a letter of credit, line of credit or other liquidity facility or credit facility for the purpose of providing funds for the payment in respect of bonds required by the holder thereof to be redeemed or repurchased prior to maturity or for providing additional security for such bonds. In connection therewith, the [committee] board may enter into reimbursement agreements, remarketing agreements, standby bond purchase agreements or any other necessary or appropriate agreements. The [committee] board may pledge the collateral that secures the applicable bonds for the [committee's] board's payment obligations under any agreement entered into pursuant to this section. As part of the contract between the [committee] board and the parties to any agreement entered into pursuant to this section, appropriation of all amounts necessary for the punctual payment of the obligations of the [committee] board under such agreement is hereby made and the [committee] board shall pay such amounts as the same become due.
(d) Any pledge of collateral made pursuant to this section shall be in effect until the obligation for which the pledge is made has been fully paid or terminated, or provision has been made for such payment. Any such pledge shall be valid and binding from the time when the pledge is made; moneys or rents so pledged and thereafter received by the [committee] board shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and the lien of any such pledge shall be valid and binding as against parties having claims of any kind in tort, contract, or otherwise, against the [committee] board, irrespective of whether such parties have notice of such lien. Neither the resolution, trust indenture pledge or security agreement nor any other instrument by which a pledge is created need be recorded.
Sec. 3. Section 3 of special act 92-25, as amended by section 9 of special act 93-40, section 3 of special act 01-10 and section 67 of public act 04-2 of the May special session, is amended to read as follows (Effective July 1, 2014):
The principal of and interest on bonds issued by the [committee] board, and any agreement as set forth in section 2 of special act 92-25, as amended by [this act] special act 01-10 and this act, may be secured by a pledge of any revenues and receipts of the [committee] board derived from the project and may be additionally secured by the assignment of a lease of the project or by an assignment of the revenues and receipts derived by the [committee] board from any such lease. The payment of principal and interest on such bonds may be additionally secured by a pledge of any other property, revenues, moneys or funds available to the [committee] board for such purpose, including, without limitation, fees payable by the board's participating municipalities. The resolution authorizing the issuance of bonds and any such lease may contain or authorize agreements and provisions respecting (1) the establishment of reserves to secure such bonds, (2) the maintenance and insurance of the project covered thereby, (3) the fixing and collection of rents for any portion thereof leased by the [committee] board to others, (4) the creation and maintenance of special funds from such revenues, (5) the rights and remedies available in the event of default, (6) provision for a trust agreement by and between the [committee] board and a corporate trustee or trustees which may be any trust company or bank having the powers of a trust company within or without the state, which agreement may provide for the pledge or assigning of any assets or income from assets to which or in which the [committee] board has rights or interest, the vesting in such trustee or trustees of such property, rights, powers and duties in trust as the [committee] board may determine, which may include any or all of the rights, powers and duties of any trustee appointed by the holders of any bonds and limiting or abrogating the right of the holders of any bonds to appoint a trustee or limiting rights, powers and duties of such trustee, and may further provide for such other rights and remedies exercisable by the trustee as may be proper for the protection of the holders of any bonds and not otherwise in violation of law. Such trust agreement may provide for the restriction of rights of any individual holder of bonds of the [committee] board and may contain any provisions which are reasonable to delineate further the respective rights, due safeguards, responsibilities and liabilities of the [committee] board, persons and collective holders of bonds of the [committee] board and the trustee, (7) covenants to do or refrain from doing acts and things as may be necessary or convenient or desirable in order to better secure bonds of the [committee] board, or which, in the discretion of the [committee] board, will tend to make any bonds to be issued more marketable, notwithstanding that such covenants or things may not be enumerated in [this act] special act 92-25, as amended by special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, and (8) any other matters of like or different character, which in any way affect the security or protection of the bonds, all as the [committee] board shall deem advisable and not in conflict with the provisions of [this act] special act 92-25, as amended by special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act. Each pledge, agreement or assignment of lease made for the benefit or security of any bonds of the [committee] board shall be in effect until the principal of and interest on the bonds for the benefit of which the same were made have been fully paid, or until provision has been made for the payment in the manner provided in the resolution or resolutions authorizing the issuance. Any pledge made in respect of such bonds shall be valid and binding from the time when the pledge is made; moneys or rents so pledged and thereafter received by the [committee] board shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and the lien of any such pledge shall be valid and binding as against parties having claims of any kind in tort, contract or otherwise against the [committee] board, irrespective of whether such parties have notice thereof. Neither the resolution, trust indenture nor any other instrument by which a pledge is created need be recorded. The [committee] board may, without further approval of the legislative bodies of the municipalities which are [parties to the original project agreements] participating municipalities of the board, assign, amend, reaffirm, or terminate any or all of [such original project] the agreements [to secure] securing the bonds and exercise the powers set forth in [this act] special act 92-25, as amended by special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, by vote taken in accordance with the [inter-community] interlocal agreement. The resolution authorizing the issuance of such bonds may provide for the enforcement of any such pledge or security in any lawful manner. The [committee] board shall be considered a political subdivision of the state for purposes of subdivision (14) of subsection (d) of section 42a-9-109 of the general statutes, as amended by [this act] public act 04-2 of the May special session.
Sec. 4. Section 4 of special act 92-25, as amended by section 12 of special act 93-40 and section 4 of special act 01-10, is amended to read as follows (Effective July 1, 2014):
The exercise of the powers granted by [this act] special act 92-25, as amended by special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, constitutes the performance of an essential governmental function and the [committee] board shall not be required to pay any taxes or assessments upon or in respect of any project, or any property or moneys of the [committee] board, levied by any municipality or political subdivision or special district having taxing powers of the state, nor shall the [committee] board be required to pay state taxes of any kind, and the [committee] board, its projects, property and money and any bonds issued under the provisions of [this act] special act 92-25, as amended by special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, their transfer and the income therefrom, including revenues derived from the sale thereof, shall at all times be free from taxation of every kind by the state except for estate or succession taxes and by the municipalities and all other political subdivisions or special districts having taxing powers of the state, provided nothing herein shall prevent the [committee] board from entering into agreements to make payments in lieu of taxes with respect to property acquired by it or by any person leasing a project from the [committee] board or operating or managing a project on behalf of the [committee] board and neither the [committee] board nor its projects, properties, money or bonds shall be obligated, liable or subject to lien of any kind for enforcement, collection or payment thereof. If and to the extent the proceedings under which the bonds authorized to be issued under the provisions of [this act] special act 92-25, as amended by special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, so provide, the [committee] board may agree to cooperate with the lessee or operator of the project in connection with any administrative or judicial proceedings for determining the validity or amount of such payment and may agree to appoint or designate and reserve the right in and for such lessees or operators to take all action which the [committee] board may lawfully take in respect of such payments and all matters relating thereto, and such agreement may provide such lessee or operator shall bear and pay costs and expenses of the [committee] board thereby incurred at the request of such lessee or operator or by reason of any such action taken by such lessee or operator in behalf of the [committee] board. Any lessee or operator of a project which has paid the amounts in lieu of taxes permitted by this section to be paid shall not be required to pay any such taxes in which a payment in lieu thereof has been made to the state or to any such municipality or other political subdivision or special district having taxing powers, any other statutes to the contrary notwithstanding.
Sec. 5. Section 5 of special act 92-25, as amended by section 10 of special act 93-40 and section 5 of special act 01-10, is amended to read as follows (Effective July 1, 2014):
(a) The bonds may be issued in one or more series in such aggregate principal amounts and bearing rate or rates of interest, be executed by manual or facsimile signatures, be issued as term bonds with mandatory deposit of sinking fund payments, at par, a discount or an original issue discount, with or without redemption provisions, with principal and interest payments at such times and in such amounts, be sold at public sale or by negotiation at such price or prices and at such time or times, and contain and be issued in accordance with such other terms, details and particulars as determined by the [committee] board, or delegated by the [committee] board to such [committee] board members as it shall determine.
(b) Any proceeds derived from the sale of the bonds, and revenues, receipts and income pledged to the bonds, or from the project, may be invested and reinvested in such obligations, securities or other investments that are legal investments for the state, and in such obligations, securities, and other investments, including time deposits or certificates of deposit, as shall be provided in the resolution or resolutions authorizing the issuance of the bonds.
(c) Whether or not the bonds are of such form and character as to be negotiable instruments under article eight of title 42a of the general statutes, the bonds shall be and are hereby made negotiable instruments within the meaning of and for all the purposes of article eight of said title 42a, subject only to the provisions of the bonds for registration.
(d) The [committee] board may provide in any resolution authorizing the issuance of bonds for the time and manner of and requisites for disbursements to be made with respect to such bonds.
(e) The [committee] board is further authorized and empowered to issue bonds under [this act] special act 92-25, as amended by special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, the interest on which may be excludable or includable in the gross income of the holder or holders thereof under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended.
Sec. 6. Section 6 of special act 92-25, as amended by section 6 of special act 01-10, is amended to read as follows (Effective July 1, 2014):
Bonds issued by the [committee] board under the provisions of [this act] special act 92-25, as amended by special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, are hereby made securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, credit unions, building and loan associations, investment companies, savings banks, banking associations, trust companies, executors, administrators, trustees and other fiduciaries and pension, profit-sharing and retirement funds may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or municipality of the state for any purpose for which the deposit of bonds or obligations of the state is now or may hereafter be authorized by law.
Sec. 7. Section 11 of special act 93-40, as amended by section 7 of special act 01-10, is amended to read as follows (Effective July 1, 2014):
Bonds of the [committee] board issued pursuant to special act 92-25, as amended by [this act] special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, shall not be deemed to constitute a debt or liability of the state or of any municipality thereof or a pledge of the faith and credit of the state or of any such municipality, and shall not constitute bonds or notes issued or guaranteed by the state within the meaning of section 3-21 of the general statutes, but shall be payable solely from the revenues and funds herein provided therefor. All such bonds shall contain on the face thereof a statement to the effect that neither the state of Connecticut nor any municipality thereof other than the [committee] board shall be obligated to pay the same or the interest thereon and that neither the faith and credit nor the taxing power of the state of Connecticut or of any such municipality is pledged to the payment of the principal of or the interest on such bonds.
Sec. 8. Section 8 of special act 01-10 is amended to read as follows (Effective July 1, 2014):
In the performance of its duties and purposes under the [inter-community] interlocal agreement, the [committee] board is granted the powers afforded to municipal or regional resource recovery authorities under subsection (a) of section 7-273bb of the general statutes in addition to any other powers it may otherwise have under the general statutes or any public or special act. It is the intention of [this act] special act 01-10, as amended by section 67 of public act 04-2 of the May special session and this act, that the [committee] board shall be granted all powers necessary to fulfill the purposes of [this act] special act 01-10, as amended by section 67 of public act 04-2 of the May special session and this act, and to carry out its responsibilities and that the provisions of [this act] special act 01-10, as amended by section 67 of public act 04-2 of the May special session and this act, are to be construed liberally.
Sec. 9. (Effective July 1, 2014) The powers conferred upon the committee by special act 92-25, as amended by special act 93-40, special act 01-10, section 67 of public act 04-2 of the May special session and this act, shall be transferred to the board and the committee shall cease to possess such powers. This act shall have no effect on the other powers of the committee provided pursuant to any provision of the general statutes or the intercommunity agreement, and the committee shall continue to exist for the purpose of exercising such powers until such committee is terminated pursuant to the intercommunity agreement.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2014 SA 92-25, Sec. 1
Sec. 2 July 1, 2014 SA 92-25, Sec. 2
Sec. 3 July 1, 2014 SA 92-25, Sec. 3
Sec. 4 July 1, 2014 SA 92-25, Sec. 4
Sec. 5 July 1, 2014 SA 92-25, Sec. 5
Sec. 6 July 1, 2014 SA 92-25, Sec. 6
Sec. 7 July 1, 2014 SA 93-40, Sec. 11
Sec. 8 July 1, 2014 SA 01-10, Sec. 8
Sec. 9 July 1, 2014 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2014
SA 92-25, Sec. 1
Sec. 2
July 1, 2014
SA 92-25, Sec. 2
Sec. 3
July 1, 2014
SA 92-25, Sec. 3
Sec. 4
July 1, 2014
SA 92-25, Sec. 4
Sec. 5
July 1, 2014
SA 92-25, Sec. 5
Sec. 6
July 1, 2014
SA 92-25, Sec. 6
Sec. 7
July 1, 2014
SA 93-40, Sec. 11
Sec. 8
July 1, 2014
SA 01-10, Sec. 8
Sec. 9
July 1, 2014
New section
PD Joint Favorable Subst.
PD
Joint Favorable Subst.