LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209-R01- HB.docx 1 of 29 General Assembly Substitute Bill No. 7209 January Session, 2019 AN ACT ESTABLISHING THE CONNECTICUT MUNI CIPAL REDEVELOPMENT AUTHOR ITY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective October 1, 2019) For the purposes of this 1 section and sections 2 to 12, inclusive, of this act: 2 (1) "Authority" means the Connecticut Municipal Redevelopment 3 Authority established in section 2 of this act; 4 (2) "Authority development project" means a project occurring 5 within the boundaries of a Connecticut Municipal Redevelopment 6 Authority development district; 7 (3) "Connecticut Municipal Redevelopment Authority development 8 district" or "development district" means the area determined by a 9 memorandum of agreement between the authority and the chief 10 executive officer of the member municipality where such development 11 district is located, provided such area shall be considered a downtown 12 or does not exceed a one-half-mile radius of a transit station; 13 (4) "Designated tier III municipality" has the same meaning as 14 provided in section 7-560 of the general statutes; 15 (5) "Designated tier IV municipality" has the same meaning as 16 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 2 of 29 provided in section 7-560 of the general statutes; 17 (6) "Downtown" means a central business district or other 18 commercial neighborhood area of a community that serves as a center 19 of socioeconomic interaction in the community, characterized by a 20 cohesive core of commercial and mixed -use buildings, often 21 interspersed with civic, religious and residential buildings and public 22 spaces, that are typically arranged along a main street and intersecting 23 side streets and served by public infrastructure; 24 (7) "Member municipality" means (A) any municipality with a 25 population of seventy thousand or more that opts to join the 26 Connecticut Municipal Redevelopment Authority in accordance with 27 section 5 of this act, or (B) any designated tier III or tier IV 28 municipality. "Member municipality" does not include the city of 29 Hartford or any municipality that is considered part of the capital 30 region, as defined in section 32-600 of the general statutes; 31 (8) "Project" means any or all of the following: (A) The design and 32 construction of transit-oriented development, as defined in section 33 13b-79kk of the general statutes; (B) the creation of housing units 34 through rehabilitation or new construction; (C) the demolition or 35 redevelopment of vacant buildings; and (D) development and 36 redevelopment; 37 (9) "State-wide transportation investment program" means the 38 planning document developed and updated at least every four years 39 by the Department of Transportation in compliance with the 40 requirements of 23 USC 135, listing all transportation projects in the 41 state expected to receive federal funding during the four-year period 42 covered by the program; and 43 (10) "Transit station" means any passenger railroad station or bus 44 rapid transit station that is operational, or for which the Department of 45 Transportation has initiated planning or that is included in the state-46 wide transportation investment program, that is or will be located 47 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 3 of 29 within the boundaries of a member municipality. 48 Sec. 2. (NEW) (Effective October 1, 2019) (a) There is hereby 49 established and created a body politic and corporate, constituting a 50 public instrumentality and political subdivision of the state established 51 and created for the performance of an essential public and 52 governmental function, to be known as the Connecticut Municipal 53 Redevelopment Authority. The authority shall not be construed to be a 54 department, institution or agency of the state. 55 (b) The powers of the authority shall be vested in and exercised by a 56 board of directors, which shall consist of the following members: (1) 57 Two appointed jointly by the speaker of the House of Representatives 58 and the president pro tempore of the Senate, one of whom shall be the 59 chief executive officer of a member municipality in New Haven 60 County; (2) two appointed jointly by the majority leaders of the House 61 of Representatives and the Senate, one of whom shall be the chief 62 executive officer of a member municipality in Hartford County; (3) two 63 appointed jointly by the minority leaders of the House of 64 Representatives and the Senate, one of whom shall be the chief 65 executive officer of a member municipality in Fairfield County; (4) two 66 appointed by the Governor; and (5) the Secretary of the Office of Policy 67 and Management, the Labor Commissioner and the Commissioners of 68 Transportation, Housing and Economic and Community 69 Development, or their designees, who shall serve as ex-officio, voting 70 members of the board. 71 (c) The Governor shall designate the chairperson of the board from 72 among the members. All initial appointments shall be made not later 73 than sixty days after the effective date of this section. All members 74 shall be appointed by the original appointing authority for four-year 75 terms. Any member of the board shall be eligible for reappointment. 76 Any vacancy occurring other than by expiration of term shall be filled 77 in the same manner as the original appointment for the balance of the 78 unexpired term. The appointing authority for any member may 79 remove such member for misfeasance, malfeasance or wilful neglect of 80 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 4 of 29 duty. 81 (d) Each member of the board, before commencing such member's 82 duties, shall take and subscribe the oath or affirmation required by 83 section 1 of article eleventh of the Constitution of the state. A record of 84 each such oath shall be filed in the office of the Secretary of the State. 85 (e) The board of directors shall maintain a record of its proceedings 86 in such form as it determines, provided such record indicates 87 attendance and all votes cast by each member. Any appointed member 88 who fails to attend three consecutive meetings or who fails to attend 89 fifty per cent of all meetings held during any calendar year shall be 90 deemed to have resigned from the board. A majority of the members 91 of the board then in office shall constitute a quorum, and an 92 affirmative vote by a majority of the members present at a meeting of 93 the board shall be sufficient for any action taken by the board. No 94 vacancy in the membership of the board shall impair the right of a 95 quorum to exercise all the rights and perform all the duties of the 96 board. Any action taken by the board may be authorized by resolution 97 at any regular or special meeting and shall take effect immediately 98 unless otherwise provided in the resolution. The board may delegate 99 to three or more of its members, or its officers, agents or employees, 100 such board powers and duties as it may deem proper. 101 (f) The board of directors shall annually elect one of its members as 102 a vice-chairperson, and shall elect other of its members as officers, 103 adopt a budget and bylaws, designate an executive committee, report 104 semiannually to the appointing authorities with respect to operations, 105 finances and achievement of its economic development objective, be 106 accountable to and cooperate with the state whenever the state may 107 audit the Connecticut Municipal Redevelopment Authority or an 108 authority development project or at any other time as the state may 109 inquire as to either, including allowing the state reasonable access to 110 any such project and to the records of the authority. 111 (g) The chairperson of the board, with the approval of the members 112 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 5 of 29 of the board of directors, shall appoint an executive director of the 113 authority who shall be an employee of the authority and paid a salary 114 prescribed by the members. The executive director shall be the chief 115 administrative officer of the authority and shall supervise the 116 administrative affairs and technical activities of the authority in 117 accordance with the directives of the board. The executive director 118 shall not be a member of the board. 119 (h) Each member of the board of directors shall be entitled to 120 reimbursement for such member's actual and necessary expenses 121 incurred during the performance of such member's official duties, but 122 shall receive no compensation for the performance of such duties. 123 Notwithstanding the provisions of section 2-15 of the general statutes, 124 no member of the board of directors shall receive mileage 125 reimbursement or a transportation allowance for traveling to a meeting 126 of the board of directors. 127 (i) Each member of the board of directors of the authority and the 128 executive director shall execute a surety bond in the penal sum of at 129 least one hundred thousand dollars, or, in lieu thereof, the chairperson 130 of the board shall execute a blanket position bond or procure an 131 equivalent insurance product covering each member, the executive 132 director and the employees of the authority. Each surety bond or 133 equivalent insurance product shall be conditioned upon the faithful 134 performance of the duties of the office or offices covered, issued by an 135 insurance company authorized to transact business in this state for 136 surety or such insurance product. The cost of each such bond or 137 insurance product shall be paid by the authority. 138 (j) No board member, or member of his or her immediate family, as 139 defined in section 1-91 of the general statutes, shall have or acquire any 140 financial interest in (1) any authority development project, or (2) any 141 property included or planned to be included in any such project or in 142 any contract or proposed contract for materials or services to be used 143 in such project. 144 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 6 of 29 (k) The authority shall have perpetual succession and shall adopt 145 procedures for the conduct of its affairs in accordance with section 4 of 146 this act. Such succession shall continue as long as the authority has 147 bonds, notes or other obligations outstanding and until its existence is 148 terminated by law, provided no such termination shall affect any 149 outstanding contractual obligation of the authority and the state shall 150 succeed to the obligations of the authority under any contract. Upon 151 the termination of the existence of the authority, all its rights and 152 properties shall pass to and be vested in the state. 153 Sec. 3. (NEW) (Effective October 1, 2019) (a) The purposes of the 154 Connecticut Municipal Redevelopment Authority shall be to: (1) 155 Stimulate economic and transit-oriented development, as defined in 156 section 13b-79kk of the general statutes, within Connecticut Municipal 157 Redevelopment Authority development districts; (2) encourage 158 residential housing development within development districts; (3) 159 manage facilities through contractual agreement or other legal 160 instrument; (4) stimulate new investment within development districts 161 and provide support for the creation of vibrant, multidimensional 162 downtowns; (5) upon request of the legislative body of a member 163 municipality in which a development district is located, work with 164 such municipality to assist in development and redevelopment efforts 165 to stimulate the economy of such municipality; (6) upon request of the 166 Secretary of the Office of Policy and Management and with the 167 approval of the chief executive officer of a member municipality in 168 which a development district is located, enter into an agreement to 169 facilitate development or redevelopment within such development 170 district; (7) encourage development and redevelopment of property 171 within development districts; (8) engage residents of member 172 municipalities and other stakeholders in development and 173 redevelopment efforts; and (9) market and develop development 174 districts as vibrant and multidimensional. 175 (b) For the purposes enumerated in subsection (a) of this section, the 176 authority is authorized and empowered to: 177 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 7 of 29 (1) Have perpetual succession as a body politic and corporate and to 178 adopt procedures for the regulation of its affairs and the conduct of its 179 business, as provided in section 4 of this act; 180 (2) Adopt a corporate seal and alter the same at pleasure; 181 (3) Maintain an office at such place or places as it may designate; 182 (4) Sue and be sued in its own name, plead and be impleaded; 183 (5) Contract and be contracted with; 184 (6) (A) Employ such assistants, agents and other employees as may 185 be necessary or desirable to carry out its purposes, which employees 186 shall be exempt from the classified service and shall not be employees, 187 as defined in subsection (b) of section 5-270 of the general statutes; (B) 188 establish all necessary or appropriate personnel practices and policies, 189 including those relating to hiring, promotion, compensation, 190 retirement and collective bargaining, which need not be in accordance 191 with chapter 68 of the general statutes. For the purposes of this 192 subdivision, the authority shall not be an employer, as defined in 193 subsection (a) of section 5-270 of the general statutes, and for the 194 purposes of group welfare benefits and retirement, including, but not 195 limited to, those provided under chapter 66 of the general statutes and 196 sections 5-257 and 5-259 of the general statutes, the officers and all 197 other employees of the authority shall be state employees; and (C) 198 engage consultants, attorneys and appraisers as may be necessary or 199 desirable to carry out its purposes in accordance with sections 2 to 12, 200 inclusive, of this act; 201 (7) Acquire, lease, purchase, own, manage, hold and dispose of 202 personal property, and lease, convey or deal in or enter into 203 agreements with respect to such property on any terms necessary or 204 incidental to carrying out the purposes set forth in this section; 205 (8) Procure insurance against any liability or loss in connection with 206 its property and other assets, in such amounts and from such insurers 207 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 8 of 29 as it deems desirable and procure insurance for employees; 208 (9) Invest any funds not needed for immediate use or disbursement 209 in obligations issued or guaranteed by the United States or the state, 210 including the Short Term Investment Fund and the Tax-Exempt 211 Proceeds Fund, and in other obligations that are legal investments for 212 savings banks in this state, and in-time deposits or certificates of 213 deposit or other similar banking arrangements secured in such manner 214 as the authority determines; 215 (10) Enter into such memoranda of agreement as the authority 216 deems appropriate to carry out its responsibilities under this section; 217 and 218 (11) Do all acts and things necessary or convenient to carry out the 219 purposes of, and the powers expressly granted by, this section. 220 (c) In addition to the powers enumerated in subsection (b) of this 221 section, the Connecticut Municipal Redevelopment Authority shall 222 have the following powers with respect to authority development 223 projects: 224 (1) (A) To acquire by gift, purchase, lease or transfer, lands or rights-225 in-land and to sell and lease or sublease, as lessor or lessee or sublessor 226 or sublessee, any portion of its real property rights, including air space 227 above, and enter into related common area maintenance, easement, 228 access, support and similar agreements, and own and operate facilities 229 associated with authority development projects, provided such activity 230 is consistent with all applicable federal tax covenants of the authority; 231 (B) to transfer or dispose of any property or interest therein acquired 232 by the authority at any time; and (C) to receive and accept aid or 233 contributions from any source of money, labor, property or other thing 234 of value, to be held, used and applied to carry out the purposes of this 235 section, subject to the conditions upon which such grants and 236 contributions are made, including, but not limited to, gifts or grants 237 from any department, agency or instrumentality of the United States or 238 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 9 of 29 this state for any purpose consistent with this section, provided (i) the 239 authority shall provide opportunity for public comment prior to any 240 acquisition, transfer or disposal in accordance with this subdivision, 241 and (ii) any land or right-in-land, aid or contribution received by the 242 authority under this subdivision shall be subject to the provisions of 243 chapter 10 of the general statutes; 244 (2) In consultation with the chief executive officer of the 245 municipality in which an authority development project is located, and 246 after the authority has provided an opportunity for public comment, to 247 condemn properties that may be necessary or desirable to effectuate 248 the purposes of the authority, in accordance with the provisions of part 249 I of chapter 835 of the general statutes; 250 (3) To formulate plans for, acquire, finance and develop, lease, 251 purchase, construct, reconstruct, repair, improve, expand, extend, 252 operate, maintain and market facilities associated with authority 253 development projects, provided such activities are consistent with all 254 applicable federal tax covenants of the authority; 255 (4) To contract and be contracted with, provided if management, 256 operating or promotional contracts or agreements or other contracts or 257 agreements are entered into with nongovernmental parties with 258 respect to property financed with the proceeds of obligations, the 259 interest on which is excluded from gross income for federal income 260 taxation, the board of directors shall ensure that such contracts or 261 agreements are in compliance with the covenants of the authority 262 upon which such tax exclusion is conditioned; 263 (5) To fix and revise, from time to time, and to charge and collect 264 fees, rents and other charges for the use, occupancy or operation of 265 authority development projects, and to establish and revise from time 266 to time procedures concerning the use, operation and occupancy of 267 facilities associated with such projects, including parking rates, rules 268 and procedures, provided such arrangements are consistent with all 269 applicable federal tax covenants of the authority, and to utilize net 270 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 10 of 29 revenues received by the authority from the operation of such 271 facilities, after allowance for operating expenses and other charges 272 related to the ownership, operation or financing thereof, for other 273 proper purposes of the authority, including, but not limited to, 274 funding of operating deficiencies or operating or capital replacement 275 reserves for such facilities and related parking facilities, as determined 276 to be appropriate by the authority; 277 (6) To engage architects, engineers, attorneys, accountants, 278 consultants and such other independent professionals as may be 279 necessary or desirable to carry out authority development projects; 280 (7) To contract for construction, development, concessions and the 281 procurement of goods and services, and to establish and modify 282 procurement procedures from time to time in accordance with the 283 provisions of section 4 of this act to implement the foregoing; 284 (8) To borrow money and to issue bonds, notes and other 285 obligations of the authority to the extent permitted under section 8 of 286 this act, to fund and refund the same and to provide for the rights of 287 the holders thereof and to secure the same by pledge of assets, 288 revenues and notes; 289 (9) To do anything necessary and desirable, including executing 290 reimbursement agreements or similar agreements in connection with 291 credit facilities, including, but not limited to, letters of credit or policies 292 of bond insurance, remarketing agreements and agreements for the 293 purpose of moderating interest rate fluctuations, to render any bonds 294 to be issued pursuant to section 8 of this act more marketable; and 295 (10) To engage in and contract for marketing and promotional 296 activities for authority development projects under the operation or 297 jurisdiction of the authority. 298 (d) The Connecticut Municipal Redevelopment Authority and the 299 Capital Region Development Authority, established pursuant to 300 chapter 588x of the general statutes, may enter into a memorandum of 301 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 11 of 29 agreement pursuant to which: (1) Administrative support and services, 302 including all staff support necessary for the operations of the 303 Connecticut Municipal Redevelopment Authority may be provided by 304 the Capital Region Development Authority, and (2) provision is made 305 for the coordination of management and operational activities that 306 may include: (A) Joint procurement and contracting; (B) the sharing of 307 services and resources; (C) the coordination of promotional activities; 308 and (D) other arrangements designed to enhance revenues, reduce 309 operating costs or achieve operating efficiencies. The terms and 310 conditions of such memorandum of agreement, including provisions 311 with respect to the reimbursement by the Connecticut Municipal 312 Redevelopment Authority to the Capital Region Development 313 Authority of the costs of such administrative support and services, 314 shall be as the Connecticut Municipal Redevelopment Authority and 315 the Capital Region Development Authority determine to be 316 appropriate. 317 (e) The authority shall have the power to negotiate, and, with the 318 approval of the Secretary of the Office of Policy and Management, to 319 enter into an agreement with any private developer, owner or lessee of 320 any building or improvement located on land in a development 321 district providing for payments to the authority in lieu of real property 322 taxes. Such an agreement shall be made a condition of any private 323 right of development within the development district, and shall 324 include a requirement that such private developer, owner or lessee 325 make good faith efforts to hire, or cause to be hired, available and 326 qualified minority business enterprises, as defined in section 4a-60g of 327 the general statutes, to provide construction services and materials for 328 improvements to be constructed within the development district in an 329 effort to achieve a minority business enterprise utilization goal of ten 330 per cent of the total costs of construction services and materials for 331 such improvements. Such payments to the authority in lieu of real 332 property taxes shall have the same lien and priority, and may be 333 enforced by the authority in the same manner, as provided for 334 municipal real property taxes. Such payments as received by the 335 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 12 of 29 authority shall be used to carry out the purposes of the authority set 336 forth in subsection (a) of this section. 337 (f) Nothing in sections 2 to 12, inclusive, of this act shall be 338 construed as limiting the authority of the Connecticut Municipal 339 Redevelopment Authority to enter into agreements to facilitate 340 development or redevelopment of municipal property or facilities. 341 Sec. 4. (NEW) (Effective October 1, 2019) The board of directors of the 342 Connecticut Municipal Redevelopment Authority shall adopt written 343 procedures, in accordance with the provisions of section 1-121 of the 344 general statutes, for: (1) Adopting an annual budget and plan of 345 operations, which shall include a requirement of board approval 346 before the budget or plan may take effect; (2) hiring, dismissing, 347 promoting and compensating employees of the authority, which shall 348 include an affirmative action policy and a requirement of board 349 approval before a position may be created or a vacancy may be filled; 350 (3) acquiring real and personal property and personal services, which 351 shall include a requirement of board approval for any nonbudgeted 352 expenditure in excess of ten thousand dollars; (4) contracting for 353 financial, legal, bond underwriting and other professional services, 354 including a requirement that the authority solicit proposals at least 355 once every three years for each such service that it uses; (5) issuing and 356 retiring bonds, notes and other obligations of the authority; (6) 357 providing loans, grants and other financial assistance, which shall 358 include eligibility criteria, the application process and the role played 359 by the authority's staff and board of directors; and (7) the use of 360 surplus funds. 361 Sec. 5. (NEW) (Effective October 1, 2019) (a) Any municipality with a 362 population of seventy thousand or more as determined by the most 363 recent decennial census, except the city of Hartford or any 364 municipality that is considered part of the capital region, as defined in 365 section 32-600 of the general statutes, may, by certified resolution of 366 the legislative body of the municipality, opt to join the Connecticut 367 Municipal Redevelopment Authority as a member municipality, 368 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 13 of 29 provided such municipality holds a public hearing prior to any vote on 369 such certified resolution. Any designated tier III or tier IV 370 municipality, except the city of Hartford or any municipality that is 371 considered part of the capital region as defined in section 32-600 of the 372 general statutes, shall be deemed a member municipality. 373 (b) The legislative body of each member municipality shall appoint 374 an advisory board to serve as liaison to the authority. Such advisory 375 board (1) shall include three individuals representing the municipality 376 and the chief executive officer of such municipality, who shall serve as 377 chairperson of the board, and (2) may include, but need not be limited 378 to, representatives from local health or human services organizations, 379 local housing organizations, a local school district or education 380 organization, and a local business organization. Such advisory board 381 shall also include one member of the board of directors of the 382 authority, chosen by the chairperson of the board of directors of the 383 authority. Each legislative body shall make a good faith effort to 384 appoint representatives of minority-owned businesses, advocates for 385 walkable communities and members who are geographically, racially, 386 socioeconomically and gender diverse. 387 (c) Any municipality that opts to join the authority as a member 388 municipality or that is deemed a member municipality pursuant to 389 subsection (a) of this section shall enter into a memorandum of 390 agreement with the authority for the establishment of one or more 391 development districts. 392 Sec. 6. (NEW) (Effective October 1, 2019) (a) In lieu of the report 393 required under section 1-123 of the general statutes, within the first 394 ninety days of each fiscal year of the Connecticut Municipal 395 Redevelopment Authority, the board of directors of the authority shall 396 submit a report to the Governor, the Auditors of Public Accounts and 397 the joint standing committee of the General Assembly having 398 cognizance of matters relating to finance, revenue and bonding. Such 399 report shall include, but not be limited to, the following: (1) A list of all 400 bonds issued during the preceding fiscal year, including, for each such 401 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 14 of 29 issue, the financial advisor and underwriters, whether the issue was 402 competitive, negotiated or privately placed, and the issue's face value 403 and net proceeds; (2) a description of each authority development 404 project in which the authority is involved, its location and the amount 405 of funds, if any, provided by the authority with respect to the 406 construction of such project; (3) a list of all outside individuals and 407 firms, including principal and other major stockholders, receiving in 408 excess of five thousand dollars as payments for services; (4) a 409 comprehensive annual financial report prepared in accordance with 410 generally accepted accounting principles for governmental enterprises; 411 (5) the cumulative value of all bonds issued, the value of outstanding 412 bonds and the amount of the state's contingent liability; (6) the 413 affirmative action policy adopted pursuant to section 4 of this act, a 414 description of the composition of the workforce of the Connecticut 415 Municipal Redevelopment Authority by race, sex and occupation and 416 a description of the affirmative action efforts of the authority; and (7) a 417 description of planned activities for the current fiscal year. 418 (b) The board of directors of the authority shall annually contract 419 with a person, firm or corporation for a compliance audit of the 420 authority's activities during the preceding authority fiscal year. The 421 audit shall determine whether the authority has complied with the 422 authority's policies and procedures concerning affirmative action, 423 personnel practices, the purchase of goods and services and the use of 424 surplus funds. The board shall submit the audit report to the 425 Governor, the Auditors of Public Accounts and the joint standing 426 committee of the General Assembly having cognizance of matters 427 relating to finance, revenue and bonding. 428 (c) The board of directors of the authority shall annually contract 429 with a firm of certified public accountants to undertake an 430 independent financial audit of the Connecticut Municipal 431 Redevelopment Authority in accordance with generally accepted 432 auditing standards. The board shall submit the audit report to the 433 Governor, the Auditors of Public Accounts and the joint standing 434 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 15 of 29 committee of the General Assembly having cognizance of matters 435 relating to finance, revenue and bonding. 436 (d) The authority shall designate a contract compliance officer from 437 its staff to monitor compliance of the operations of facilities and 438 parking facilities associated with authority development projects that 439 are under the management or control of the authority, with (1) the 440 provisions of state law applicable to such operations, and (2) 441 applicable requirements of contracts entered into by the authority 442 relating to set-asides for small contractors and minority business 443 enterprises and required efforts to hire available and qualified 444 members of minorities, as defined in section 32-9n of the general 445 statutes. Each year during the period of operations of facilities 446 associated with authority development projects, such officer shall file a 447 written report with the authority as to findings and recommendations 448 regarding such compliance. 449 Sec. 7. (NEW) (Effective October 1, 2019) (a) Any person, including, 450 but not limited to, a state or municipal agency, requesting funds from 451 the state, including, but not limited to, any authority created by the 452 general statutes or any public or special act, with respect to any 453 authority development project shall, at the time it makes such request 454 for funds from the state, present a full and complete copy of its 455 application or request along with any supporting documents or 456 exhibits to the authority for its recommendation and to the Secretary of 457 the Office of Policy and Management. The Connecticut Municipal 458 Redevelopment Authority shall, not later than ninety days after receipt 459 of such application or request, prepare and adopt an economic 460 development statement summarizing its recommendations with 461 respect to such application or request and deliver such statement to the 462 state officer, official, employee or agent of the state or authority to 463 whom such application or request was made. The recommendations in 464 such statement shall include contract provisions regarding 465 performance standards, including, but not limited to, project timelines. 466 (b) Notwithstanding any provision of the general statutes, public or 467 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 16 of 29 special acts, any regulation or procedure or any other law, no officer, 468 official, employee or agent of the state or any authority created by the 469 general statutes or any public or special act shall expend any funds on 470 any authority development project, unless such officer, official, 471 employee or agent has received an economic development statement 472 prepared by the Connecticut Municipal Redevelopment Authority 473 pursuant to subsection (a) of this section, except that if no such 474 statement is received by the ninetieth day after the date of the initial 475 application or request for such funds, such funds may be expended. If 476 funds are expended pursuant to this subsection in a manner not 477 consistent with the recommendations contained in an economic 478 development statement for such expenditure, the officer, official, 479 employee or agent of the state expending such funds shall respond in 480 writing to the authority, providing an explanation of the decision with 481 respect to such expenditure. 482 (c) The Connecticut Municipal Redevelopment Authority shall 483 coordinate the use of all state, municipal and quasi-public agency 484 planning and financial resources that are made available for any 485 authority development project in which the authority is involved, 486 including any resources available from any quasi-public agency. 487 (d) All state agencies, departments, boards, commissions and 488 councils and all quasi-public agencies shall cooperate with the 489 Connecticut Municipal Redevelopment Authority in carrying out the 490 purposes enumerated in section 3 of this act. 491 Sec. 8. (NEW) (Effective October 1, 2019) (a) The board of directors of 492 the Connecticut Municipal Redevelopment Authority is authorized 493 from time to time to issue its bonds, notes and other obligations in 494 such principal amounts as in the opinion of the board shall be 495 necessary to provide sufficient funds for carrying out the purposes set 496 forth in section 3 of this act, including the payment, funding or 497 refunding of the principal of, or interest or redemption premiums on, 498 any bonds, notes and other obligations issued by it, whether the bonds, 499 notes or other obligations or interest to be funded or refunded have or 500 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 17 of 29 have not become due, the establishment of reserves to secure such 501 bonds, notes and other obligations, loans made by the authority and all 502 other expenditures of the authority incident to and necessary or 503 convenient to carry out the purposes set forth in section 3 of this act. 504 (b) Every issue of bonds, notes or other obligations shall be a 505 general obligation of the authority payable out of any moneys or 506 revenues of the authority and subject only to any agreements with the 507 holders of particular bonds, notes or other obligations pledging any 508 particular moneys or revenues. Any such bonds, notes or other 509 obligations may be additionally secured by any grant or contributions 510 from any department, agency or instrumentality of the United States or 511 person or a pledge of any moneys, income or revenues of the authority 512 from any source whatsoever. 513 (c) Notwithstanding any provision of law, any bonds, notes or other 514 obligations issued by the authority pursuant to this section shall be 515 fully negotiable within the meaning and for all purposes of title 42a of 516 the general statutes. Any such bonds, notes or other obligations shall 517 be legal investments for all trust companies, banks, investment 518 companies, savings banks, building and loan associations, executors, 519 administrators, guardians, conservators, trustees and other fiduciaries 520 and pension, profit-sharing and retirement funds. 521 (d) Bonds, notes or other obligations of the authority shall be 522 authorized by resolution of the board of directors of the authority and 523 may be issued in one or more series and shall bear such date or dates, 524 mature at such time or times, in the case of any such note, or any 525 renewal thereof, not exceeding the term of years as the board shall 526 determine from the date of the original issue of such notes, and, in the 527 case of bonds, not exceeding thirty years from the date thereof, bear 528 interest at such rate or rates, be in such denomination or 529 denominations, be in such form, either coupon or registered, carry 530 such conversion or registration privileges, have such rank or priority, 531 be executed in such manner, be payable from such sources in such 532 medium of payment at such place or places within or without this 533 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 18 of 29 state, and be subject to such terms of redemption, with or without 534 premium, as such resolution or resolutions may provide. 535 (e) Bonds, notes or other obligations of the authority may be sold at 536 public or private sale at such price or prices as the board shall 537 determine. 538 (f) Bonds, notes or other obligations of the authority may be 539 refunded and renewed from time to time as may be determined by 540 resolution of the board, provided any such refunding or renewal shall 541 be in conformity with any rights of the holders of such bonds, notes or 542 other obligations. 543 (g) Bonds, notes or other obligations of the authority issued under 544 the provisions of this section shall not be deemed to constitute a debt 545 or liability of the state or of any political subdivision thereof other than 546 the authority, or a pledge of the faith and credit of the state or of any 547 such political subdivision other than the authority, and shall not 548 constitute bonds or notes issued or guaranteed by the state within the 549 meaning of section 3-21 of the general statutes, but shall be payable 550 solely from the funds as provided in this section. All such bonds, notes 551 or other obligations shall contain on the face thereof a statement to the 552 effect that neither the state of Connecticut nor any political subdivision 553 thereof other than the authority shall be obligated to pay the same or 554 the interest thereof except from revenues or other funds of the 555 authority and that neither the faith and credit nor the taxing power of 556 the state of Connecticut or of any political subdivision thereof other 557 than the authority is pledged to the payment of the principal of, or the 558 interest on, such bonds, notes or other obligations. 559 (h) Any resolution or resolutions authorizing the issuance of bonds, 560 notes or other obligations may contain provisions, except as limited by 561 existing agreements with the holders of bonds, notes or other 562 obligations, which shall be a part of the contract with the holders 563 thereof, as to the following: (1) The pledging of all or any part of the 564 moneys received by the authority to secure the payment of the 565 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 19 of 29 principal of and interest on any bonds, notes or other obligations or of 566 any issue thereof; (2) the pledging of all or part of the assets of the 567 authority to secure the payment of the principal and interest on any 568 bonds, notes or other obligations or of any issue thereof; (3) the 569 establishment of reserves or sinking funds, the making of charges and 570 fees to provide for the same, and the regulation and disposition 571 thereof; (4) limitations on the purpose to which the proceeds of sale of 572 bonds, notes or other obligations may be applied and pledging such 573 proceeds to secure the payment of the bonds, notes or other 574 obligations, or of any issues thereof; (5) limitations on the issuance of 575 additional bonds, notes or other obligations, the terms upon which 576 additional bonds, bond anticipation notes or other obligations may be 577 issued and secured, the refunding or purchase of outstanding bonds, 578 notes or other obligations of the authority; (6) the procedure, if any, by 579 which the terms of any contract with the holders of any bonds, notes or 580 other obligations of the authority may be amended or abrogated, the 581 amount of bonds, notes or other obligations the holders of which must 582 consent thereto and the manner in which such consent may be given; 583 (7) limitations on the amount of moneys to be expended by the 584 authority for operating, administrative or other expenses of the 585 authority; (8) the vesting in a trustee or trustees of such property, 586 rights, powers and duties in trust as the authority may determine, 587 which may include any or all of the rights, powers and duties of any 588 trustee appointed by the holders of any bonds, notes or other 589 obligations and limiting or abrogating the right of the holders of any 590 bonds, notes or other obligations of the authority to appoint a trustee 591 or limiting the rights, powers and duties of such trustee; (9) provision 592 for a trust agreement by and between the authority and a corporate 593 trustee which may be any trust company or bank having the powers of 594 a trust company within or without the state, which agreement may 595 provide for the pledging or assigning of any assets or income from 596 assets to which or in which the authority has any right or interest, and 597 may further provide for such other rights and remedies exercisable by 598 the trustee as may be proper for the protection of the holders of any 599 bonds, notes or other obligations of the authority and not otherwise in 600 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 20 of 29 violation of law. Such agreement may provide for the restriction of the 601 rights of any individual holder of bonds, notes or other obligations of 602 the authority. All expenses incurred in carrying out the provisions of 603 such trust agreement may be treated as a part of the cost of operation 604 of the authority. The trust agreement may contain any further 605 provisions which are reasonable to delineate further the respective 606 rights, duties, safeguards, responsibilities and liabilities of the 607 authority, individual and collective holders of bonds, notes and other 608 obligations of the authority and the trustees; (10) covenants to do or 609 refrain from doing such acts and things as may be necessary or 610 convenient or desirable in order to better secure any bonds, notes or 611 other obligations of the authority, or which, in the discretion of the 612 authority, will tend to make any bonds, notes or other obligations to be 613 issued more marketable, notwithstanding that such covenants, acts or 614 things may not be enumerated herein; and (11) any other matters of 615 like or different character, which in any way affect the security or 616 protection of the bonds, notes or other obligations. 617 (i) Any pledge made by the authority of income, revenues or other 618 property shall be valid and binding from the time the pledge is made. 619 The income, revenue, such state taxes as the authority shall be entitled 620 to receive or other property so pledged and thereafter received by the 621 authority shall immediately be subject to the lien of such pledge 622 without any physical delivery thereof or further act, and the lien of any 623 such pledge shall be valid and binding as against all parties having 624 claims of any kind in tort, contract or otherwise against the authority, 625 irrespective of whether such parties have notice thereof. 626 (j) The board of directors of the authority is authorized and 627 empowered to obtain from any department, agency or instrumentality 628 of the United States any insurance or guarantee as to, or of or for the 629 payment or repayment of, interest or principal or both, or any part 630 thereof, on any bonds, notes or other obligations issued by the 631 authority pursuant to the provisions of this section and, 632 notwithstanding any other provisions of sections 2 to 12, inclusive, of 633 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 21 of 29 this act, to enter into any agreement, contract or any other instrument 634 whatsoever with respect to any such insurance or guarantee except to 635 the extent that such action would in any way impair or interfere with 636 the authority's ability to perform and fulfill the terms of any agreement 637 made with the holders of the bonds, bond anticipation notes or other 638 obligations of the authority. 639 (k) Neither the members of the board of directors of the authority 640 nor any person executing bonds, notes or other obligations of the 641 authority issued pursuant to this section shall be liable personally on 642 such bonds, notes or other obligations or be subject to any personal 643 liability or accountability by reason of the issuance thereof, nor shall 644 any director, officer or employee of the authority be personally liable 645 for damage or injury caused in the performance of such director, 646 officer or employee's duties and within the scope of employment or 647 appointment as such director, officer or employee, provided the 648 conduct of such director, officer or employee was found not to have 649 been wanton, reckless, wilful or malicious. The authority shall protect, 650 save harmless and indemnify its directors, officers or employees from 651 financial loss and expense, including legal fees and costs, if any, arising 652 out of any claim, demand, suit or judgment by reason of alleged 653 negligence or alleged deprivation of any person's civil rights or any 654 other act or omission resulting in damage or injury, if the director, 655 officer or employee is found to have been acting in the discharge of his 656 or her duties or within the scope of his or her employment and such 657 act or omission is found not to have been wanton, reckless, wilful or 658 malicious. 659 (l) The board of directors of the authority shall have power to 660 purchase bonds, notes or other obligations of the authority out of any 661 funds available for such purpose. The authority may hold, cancel or 662 resell such bonds, notes or other obligations subject to and in 663 accordance with agreements with holders of its bonds, notes and other 664 obligations. 665 (m) All moneys received pursuant to the authority of this section, 666 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 22 of 29 whether as proceeds from the sale of bonds or as revenues, shall be 667 deemed to be trust funds to be held and applied solely as provided in 668 this section. Any officer with whom, or any bank or trust company 669 with which, such moneys shall be deposited shall act as trustee of such 670 moneys and shall hold and apply the same for the purposes of section 671 3 of this act, and the resolution authorizing the bonds of any issue or 672 the trust agreement securing such bonds may provide. 673 (n) Any holder of bonds, notes or other obligations issued under the 674 provisions of this section, and the trustee or trustees under any trust 675 agreement, except to the extent the rights herein given may be 676 restricted by any resolution authorizing the issuance of or any such 677 trust agreement securing such bonds, may, either at law or in equity, 678 by suit, action, mandamus or other proceeding, protect and enforce 679 any and all rights under the laws of the state or granted under this 680 section or under such resolution or trust agreement and may enforce 681 and compel the performance of all duties required by this section or by 682 such resolution or trust agreement to be performed by the authority or 683 by any officer, employee or agent of the authority, including the fixing, 684 charging and collecting of the rates, rents, fees and charges herein 685 authorized and required by the provisions of such resolution or trust 686 agreement to be fixed, established and collected. 687 (o) The authority may make representations and agreements for the 688 benefit of the holders of any bonds, notes or other obligations of the 689 state which are necessary or appropriate to ensure the exclusion from 690 gross income for federal income tax purposes of interest on bonds, 691 notes or other obligations of the state from taxation under the Internal 692 Revenue Code of 1986 or any subsequent corresponding internal 693 revenue code of the United States, as amended from time to time, 694 including agreement to pay rebates to the federal government of 695 investment earnings derived from the investment of the proceeds of 696 the bonds, notes or other obligations of the authority. Any such 697 agreement may include: (1) A covenant to pay rebates to the federal 698 government of investment earnings derived from the investment of the 699 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 23 of 29 proceeds of the bonds, notes or other obligations of the authority; (2) a 700 covenant that the authority will not limit or alter its rebate obligations 701 until its obligations to the holders or owners of such bonds, notes or 702 other obligations are finally met and discharged; and (3) provisions to 703 (A) establish trust and other accounts which may be appropriate to 704 carry out such representations and agreements, (B) retain fiscal agents 705 as depositories for such funds and accounts, and (C) provide that such 706 fiscal agents may act as trustee of such funds and accounts. 707 Sec. 9. (NEW) (Effective October 1, 2019) The state of Connecticut 708 does hereby pledge to and agree with the holders of any bonds, notes 709 and other obligations issued under section 8 of this act and with those 710 parties who may enter into contracts with the Connecticut Municipal 711 Redevelopment Authority or its successor agency, that the state will 712 not limit or alter the rights hereby vested in the authority or in the 713 holders of any bonds, notes or other obligations of the authority to 714 which contract assistance is pledged pursuant to this section until such 715 bonds, notes or obligations, together with the interest thereon, are fully 716 met and discharged and such contracts are fully performed on the part 717 of the authority, provided nothing contained herein shall preclude 718 such limitation or alteration if and when adequate provision shall be 719 made by law for the protection of the holders of such bonds, notes and 720 other obligations of the authority or those entering into contracts with 721 the authority. The authority is authorized to include this pledge and 722 undertaking for the state in such bonds, notes and other obligations or 723 contracts. 724 Sec. 10. (NEW) (Effective October 1, 2019) The state shall protect, save 725 harmless and indemnify the Connecticut Municipal Redevelopment 726 Authority and its directors, officers and employees from financial loss 727 and expenses, including legal fees and costs, if any, arising out of any 728 claim, demand, suit or judgment based upon any alleged act or 729 omission of the authority or any such director, officer or employee in 730 connection with, or any other legal challenge to, authority 731 development projects within a Connecticut Municipal Redevelopment 732 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 24 of 29 Authority development district, provided any such director, officer or 733 employee is found to have been acting in the discharge of such 734 director, officer or employee's duties or within the scope of such 735 director, officer or employee's employment and any such act or 736 omission is found not to have been wanton, reckless, wilful or 737 malicious. 738 Sec. 11. (NEW) (Effective October 1, 2019) (a) For the purposes of this 739 section, "economic development master plan" means (1) a 740 comprehensive economic development plan that is designed to 741 increase the tax base of the municipality to a level that will allow the 742 municipality to provide an adequate level of municipal services, or (2) 743 a comprehensive economic development plan developed pursuant to 744 section 7-578 of the general statutes. 745 (b) Prior to execution of a memorandum of agreement between the 746 authority and the chief executive officer of a member municipality 747 establishing a development district, the member municipality shall 748 develop an economic development master plan and submit such plan 749 for the authority's review and approval. Each member municipality 750 shall provide for community and stakeholder input and a public 751 comment process in the development of its economic development 752 master plan, and such plan shall be approved by the legislative body 753 of such municipality. 754 (c) In determining whether to approve a member municipality's 755 economic development master plan, the authority shall consider 756 whether such plan includes a clear and feasible path toward achieving 757 as many of the purposes of the authority, as set forth in subsection (a) 758 of section 3 of this act, as practical and appropriate in the context of the 759 unique characteristics of such member municipality. The authority 760 shall offer support to such member municipality in creating the 761 economic development master plan, if requested by such member 762 municipality. 763 (d) Any authority development project that receives support from 764 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 25 of 29 the authority shall be consistent with (1) the economic development 765 master plan of the member municipality in which such project is 766 located, (2) the plan of conservation and development, adopted under 767 section 8-23 of the general statutes, of the member municipality in 768 which such project is located, and (3) the Comprehensive Economic 769 Development Strategy prepared under section 32-742 of the general 770 statutes. 771 Sec. 12. (NEW) (Effective October 1, 2019) The authority and member 772 municipalities shall encourage businesses, as appropriate, to hire local 773 employees. Any business that receives financial assistance from the 774 authority shall enter into an agreement with the Workforce Training 775 Authority established pursuant to section 31-11ii of the general statutes 776 for assistance with the training and recruitment of workers. 777 Sec. 13. Subdivision (12) of section 1-79 of the general statutes is 778 repealed and the following is substituted in lieu thereof (Effective 779 October 1, 2019): 780 (12) "Quasi-public agency" means Connecticut Innovations, 781 Incorporated, the Connecticut Health and Education Facilities 782 Authority, the Connecticut Higher Education Supplemental Loan 783 Authority, the Connecticut Student Loan Foundation, the Connecticut 784 Housing Finance Authority, the State Housing Authority, the Materials 785 Innovation and Recycling Authority, the Capital Region Development 786 Authority, the Connecticut Lottery Corporation, the Connecticut 787 Airport Authority, the Connecticut Health Insurance Exchange, the 788 Connecticut Green Bank, the Connecticut Retirement Se curity 789 Authority, the Connecticut Port Authority, the Connecticut Municipal 790 Redevelopment Authority and the State Education Resource Center. 791 Sec. 14. Subdivision (1) of section 1-120 of the general statutes is 792 repealed and the following is substituted in lieu thereof (Effective 793 October 1, 2019): 794 (1) "Quasi-public agency" means Connecticut Innovations, 795 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 26 of 29 Incorporated, the Connecticut Health and Educational Facilities 796 Authority, the Connecticut Higher Education Supplemental Loan 797 Authority, the Connecticut Student Loan Foundation, the Connecticut 798 Housing Finance Authority, the Connecticut Housing Authority, the 799 Materials Innovation and Recycling Authority, the Capital Region 800 Development Authority, the Connecticut Lottery Corporation, the 801 Connecticut Airport Authority, the Connecticut Health Insurance 802 Exchange, the Connecticut Green Bank, the Connecticut Retirement 803 Security Authority, the Connecticut Port Authority, the Connecticut 804 Municipal Redevelopment Authority and the State Education Resource 805 Center. 806 Sec. 15. Section 1-124 of the general statutes is repealed and the 807 following is substituted in lieu thereof (Effective October 1, 2019): 808 (a) Connecticut Innovations, Incorporated, the Connecticut Health 809 and Educational Facilities Authority, the Connecticut Higher 810 Education Supplemental Loan Authority, the Connecticut Student 811 Loan Foundation, the Connecticut Housing Finance Authority, the 812 Connecticut Housing Authority, the Materials Innovation and 813 Recycling Authority, the Connecticut Airport Authority, the Capital 814 Region Development Authority, the Connecticut Health Insurance 815 Exchange, the Connecticut Green Bank, the Connecticut Retirement 816 Security Authority, the Connecticut Port Authority, the Connecticut 817 Municipal Redevelopment Authority and the State Education Resource 818 Center shall not borrow any money or issue any bonds or notes which 819 are guaranteed by the state of Connecticut or for which there is a 820 capital reserve fund of any kind which is in any way contributed to or 821 guaranteed by the state of Connecticut until and unless such 822 borrowing or issuance is approved by the State Treasurer or the 823 Deputy State Treasurer appointed pursuant to section 3-12. The 824 approval of the State Treasurer or said deputy shall be based on 825 documentation provided by the authority that it has sufficient 826 revenues to (1) pay the principal of and interest on the bonds and notes 827 issued, (2) establish, increase and maintain any reserves deemed by the 828 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 27 of 29 authority to be advisable to secure the payment of the principal of and 829 interest on such bonds and notes, (3) pay the cost of maintaining, 830 servicing and properly insuring the purpose for which the proceeds of 831 the bonds and notes have been issued, if applicable, and (4) pay such 832 other costs as may be required. 833 (b) To the extent Connecticut Innovations, Incorporated, the 834 Connecticut Higher Education Supplemental Loan Authority, the 835 Connecticut Student Loan Foundation, the Connecticut Housing 836 Finance Authority, the Connecticut Housing Authority, the Materials 837 Innovation and Recycling Authority, the Connecticut Health and 838 Educational Facilities Authority, the Connecticut Airport Authority, 839 the Capital Region Development Authority, the Connecticut Health 840 Insurance Exchange, the Connecticut Green Bank, the Connecticut 841 Retirement Security Authority, the Connecticut Port Authority, the 842 Connecticut Municipal Redevelopment Authority or the State 843 Education Resource Center is permitted by statute and determines to 844 exercise any power to moderate interest rate fluctuations or enter into 845 any investment or program of investment or contract respecting 846 interest rates, currency, cash flow or other similar agreement, 847 including, but not limited to, interest rate or currency swap 848 agreements, the effect of which is to subject a capital reserve fund 849 which is in any way contributed to or guaranteed by the state of 850 Connecticut, to potential liability, such determination shall not be 851 effective until and unless the State Treasurer or his or her deputy 852 appointed pursuant to section 3-12 has approved such agreement or 853 agreements. The approval of the State Treasurer or his or her deputy 854 shall be based on documentation provided by the authority that it has 855 sufficient revenues to meet the financial obligations associated with the 856 agreement or agreements. 857 Sec. 16. Section 1-125 of the general statutes is repealed and the 858 following is substituted in lieu thereof (Effective October 1, 2019): 859 The directors, officers and employees of Connecticut Innovations, 860 Incorporated, the Connecticut Higher Education Supplemental Loan 861 Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 28 of 29 Authority, the Connecticut Student Loan Foundation, the Connecticut 862 Housing Finance Authority, the Connecticut Housing Authority, the 863 Materials Innovation and Recycling Authority, including ad hoc 864 members of the Materials Innovation and Recycling Authority, the 865 Connecticut Health and Educational Facilities Authority, the Capital 866 Region Development Authority, the Connecticut Airport Authority, 867 the Connecticut Lottery Corporation, the Connecticut Health Insurance 868 Exchange, the Connecticut Green Bank, the Connecticut Retirement 869 Security Authority, the Connecticut Port Authority, the Connecticut 870 Municipal Redevelopment Authority and the State Education Resource 871 Center and any person executing the bonds or notes of the agency shall 872 not be liable personally on such bonds or notes or be subject to any 873 personal liability or accountability by reason of the issuance thereof, 874 nor shall any director or employee of the agency, including ad hoc 875 members of the Materials Innovation and Recycling Authority, be 876 personally liable for damage or injury, not wanton, reckless, wilful or 877 malicious, caused in the performance of his or her duties and within 878 the scope of his or her employment or appointment as such director, 879 officer or employee, including ad hoc members of the Materials 880 Innovation and Recycling Authority. The agency shall protect, save 881 harmless and indemnify its directors, officers or employees, including 882 ad hoc members of the Materials Innovation and Recycling Authority, 883 from financial loss and expense, including legal fees and costs, if any, 884 arising out of any claim, demand, suit or judgment by reason of 885 alleged negligence or alleged deprivation of any person's civil rights or 886 any other act or omission resulting in damage or injury, if the director, 887 officer or employee, including ad hoc members of the Materials 888 Innovation and Recycling Authority, is found to have been acting in 889 the discharge of his or her duties or within the scope of his or her 890 employment and such act or omission is found not to have been 891 wanton, reckless, wilful or malicious. 892 This act shall take effect as follows and shall amend the following sections: Substitute Bill No. 7209 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07209- R01-HB.docx } 29 of 29 Section 1 October 1, 2019 New section Sec. 2 October 1, 2019 New section Sec. 3 October 1, 2019 New section Sec. 4 October 1, 2019 New section Sec. 5 October 1, 2019 New section Sec. 6 October 1, 2019 New section Sec. 7 October 1, 2019 New section Sec. 8 October 1, 2019 New section Sec. 9 October 1, 2019 New section Sec. 10 October 1, 2019 New section Sec. 11 October 1, 2019 New section Sec. 12 October 1, 2019 New section Sec. 13 October 1, 2019 1-79(12) Sec. 14 October 1, 2019 1-120(1) Sec. 15 October 1, 2019 1-124 Sec. 16 October 1, 2019 1-125 Statement of Legislative Commissioners: In Section 2(d), "article XI, section 1, of the state Constitution" was changed to "section 1 of article eleventh of the Constitution of the state" for consistency; in Section 3, "memorandum of understanding" was changed to "memorandum of agreement" for consistency, and the provisions of Subsec. (b)(6) were restructured for clarity and grammar; in Section 7(b), "the date ninety days from" was changed to "the ninetieth day after" for clarity; in Section 11(b), "chief executive office" was changed to "chief executive officer" for accuracy; and in Section 12, "in public act 17-207" was changed to "pursuant to section 31-11ii of the general statutes" for accuracy. PD Joint Favorable Subst. -LCO