General Assembly Raised Bill No. 6627
January Session, 2013 LCO No. 4390
*04390_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
General Assembly
Raised Bill No. 6627
January Session, 2013
LCO No. 4390
*04390_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
AN ACT CONCERNING REVIEW OF ANY PROPOSED STATE PROJECT COSTING IN EXCESS OF FIFTY MILLION DOLLARS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2013) (a) As used in this section, "capital project" means a project or program financed, in whole or in part, by the state through a grant or loan to a nonpublic entity, where the total state financing amounts to more than fifty million dollars.
(b) Except as provided in subsection (e) of this section, before a capital project is placed on a State Bond Commission agenda, the Secretary of the Office of Policy and Management shall require, for any agency sponsoring a capital project, a detailed analysis of such capital project. Such analysis shall include, but need not be limited to, (1) a capital development impact statement, as described in section 4-66b of the general statutes, (2) the estimated full cost of the capital project when completed, (3) the estimated annual operating costs for the capital project when completed, (4) an estimate of additional revenue projected to be generated by the capital project, and (5) a statement from the Commissioner of Agriculture pursuant to section 22-6 of the general statutes, for projects that would convert twenty-five or more acres of prime farmland to a nonagricultural use.
(c) Except as provided in subsection (e) of this section, the secretary shall, on behalf of an agency sponsoring a capital project, contract with an independent, nongovernmental entity to perform an independent analysis of the capital project. Such analysis shall include all items listed in subsection (b) of this section, in addition to an analysis of investments the state might make that are comparable to those proposed in the capital project.
(d) (1) The secretary shall request approval of such capital project by the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, and, if applicable, the joint standing committee of the General Assembly having cognizance of matters relating to the purpose for which the capital project is proposed. Each committee shall have thirty days after the date such request is received to convene a public hearing and a meeting to vote to approve or disapprove the capital project. If the capital project is withdrawn, altered, amended or otherwise changed, the secretary shall resubmit such request, and each committee shall have thirty days from the date of such resubmittal to convene a public hearing and meeting to vote to approve or disapprove the capital project. If a committee does not act on a request or the resubmittal of a request, as the case may be, within such time, the request shall be deemed to be approved by the committee.
(2) Not later than three days prior to each public hearing and meeting scheduled in response to a request, as provided in subdivision (1) of this subsection, the secretary shall provide a copy of the analyses required pursuant to subsections (b) and (c) of this section to all members of each committee holding a public hearing and meeting, and shall post such analyses on the Office of Policy and Management's Internet web site.
(e) The provisions of this section shall not apply to any school building project financed pursuant to section 10-287d of the general statutes, or any interest subsidy financed pursuant to section 10-292k of the general statutes.
Sec. 2. Subsection (g) of section 3-20 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):
(g) (1) 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 (A) any human services facility colocation statement to be filed with the Secretary of the Office of Policy and Management, if so requested by the secretary, pursuant to section 4b-23; (B) 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; (C) prior to the meeting at which such resolution is to be considered, any capital development impact statement required to be filed with the Secretary of the Office of Policy and Management; (D) a statement as to the full cost of the project or purpose when completed and the estimated operating cost for any structure, equipment or facility to be constructed or acquired; and (E) such requests and such other documents as it or said bond act requires, provided no resolution with respect to any school building project financed pursuant to section 10-287d or any interest subsidy financed pursuant to section 10-292k shall require the filing of any statements pursuant to subparagraph (A), (B), (C), (D) or (E) of this subdivision and provided further any resolution requiring a capital impact statement shall be deemed not properly before the State Bond Commission until such capital development impact statement is filed. 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.
(2) The agenda of each meeting shall be made available to the members of the commission not later than five business days prior to the meeting at which such agenda is to be considered. The day of the meeting shall count as one of the business days. 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. There shall be a separate item on the agenda of each meeting for any capital project, as defined in section 1 of this act, that receives state funding in an amount in excess of fifty million dollars, including for any such project or program where total state funding includes financing other than through bond funds.
(3) 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) of this section, 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 the Treasurer 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 the Treasurer in accordance with such delegation.
(4) 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.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2013 New section
Sec. 2 July 1, 2013 3-20(g)
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2013
New section
Sec. 2
July 1, 2013
3-20(g)
Statement of Purpose:
To ensure transparency and accountability in state-sponsored projects.
[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.]