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General Assembly Substitute Bill No. 7277
January Session, 2019
AN ACT CONCERNING TH E CREATION OF LAND BANK
AUTHORITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) As used in this section: 1
(1) "Land bank authority" means a charitable nonstock corporation 2
established by a municipality, or by two or more municipalities, for the 3
purposes of acquiring real property, maintaining any such real 4
property and disposing of any such real property within such 5
municipality or municipalities, as applicable; 6
(2) "Board of directors" means the board of directors for a land bank 7
authority; 8
(3) "Municipality" means any town, city or borough, consolidated 9
town and city or consolidated town and borough; and 10
(4) "Real property" means land, subterranean or subsurface rights, 11
structures, any and all easements, air rights and franchises and every 12
estate, right or interest therein. 13
(b) The legislative body of any municipality, by ordinance, or the 14
legislative bodies of two or more municipalities, by concurrent 15
ordinances entering into an intergovernmental cooperation agreement, 16 Substitute Bill No. 7277
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may establish a land bank authority. Any such ordinance or concurrent 17
ordinances, as applicable, shall set forth (1) the name of the land bank 18
authority, (2) the size of the board of directors, provided such board 19
shall consist of five, seven, nine or eleven members, (3) the 20
qualifications, manner of appointment and terms of office of such 21
board's members, and (4) the members initially appointed to serve on 22
such board, any of which may, notwithstanding any provision of the 23
general statutes, be an individual elected to an office or otherwise 24
employed by any such municipality. 25
(c) (1) Annually, the members of the board of directors of a land 26
bank authority shall (A) select from among themselves a chairperson, 27
vice-chairperson, treasurer and any other officer as such board may 28
deem necessary to carry out the purposes of this section, and (B) adopt 29
bylaws for the conduct of business in carrying out such purposes. 30
(2) Bylaws adopted by such board of directors shall establish 31
procedures relative to the attendance and participation of board 32
members at any meeting of such board, which procedures may 33
provide for removal of a member from such board for failure to 34
comply with such bylaws by a majority vote of the total membership 35
of such board, provided any individual so removed shall be ineligible 36
for reappointment to such board unless such reappointment is 37
unanimously confirmed by such board. Any such removal shall create 38
a vacancy on such board effective the first day of the month 39
immediately following such removal. Any such vacancy shall be filled 40
as set forth pursuant to subdivision (3) of subsection (b) of this section. 41
(3) (A) Each member of such board of directors shall serve without 42
compensation, except that such board may reimburse any such 43
member for expenses incurred in the performance of such member's 44
duties on behalf of such authority. 45
(B) No board member, and no staff as described in subsection (d) of 46
this section, may acquire any interest in any real property held by such 47
authority or in any real property to be acquired by or from such 48 Substitute Bill No. 7277
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authority. No board member and no such staff may have any interest 49
in any contract or proposed contract for materials or services to be 50
furnished or used by such authority. The board of directors of such 51
authority may adopt additional bylaws to address actual and potential 52
conflicts of interest and ethical guidelines for such board members and 53
staff. 54
(C) No board member shall be personally liable on any bond or 55
obligation of such authority, and any right of a creditor shall be against 56
such authority only. 57
(4) (A) Regular meetings of such board of directors shall be held in 58
accordance with a schedule adopted by such board. Special meetings 59
of such board shall be held upon the call of the chairperson or upon a 60
signed petition of a majority of the total membership of such board. A 61
majority of the total membership of such board of directors shall 62
constitute a quorum for the transaction of any business. Except as 63
provided in subparagraph (B) of this subdivision and subsection (j) of 64
this section, approval of any board action shall be by a majority vote of 65
the members of such board present and voting. No board member may 66
vote by proxy. Any board member may request a roll-call vote on any 67
action taken by such authority. Such board shall cause minutes and a 68
record to be kept of each meeting. 69
(B) The following board actions shall be approved by a majority 70
vote of the total membership of such board: (i) Adoption of bylaws for 71
the conduct of business; (ii) hiring or firing of any employee or 72
contractor of such land bank authority, except that such board may 73
delegate the exercise of any such action to an officer of such authority 74
and to an extent as may be specified by such board in such delegation; 75
(iii) incurrence of debt; (iv) adoption or amendment of an annual 76
budget; and (v) sale, lease, encumbrance or alienation of any real 77
property, improvements thereto or personal property valued in an 78
amount exceeding fifty thousand dollars. 79
(d) (1) The board of directors of a land bank authority may hire an 80 Substitute Bill No. 7277
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executive director, legal counsel and any other staff such board deems 81
qualified to serve such authority. Such board may contract with one or 82
more municipalities for the staffing of such authority or of any 83
department or agency of any such municipality. 84
(2) Such board may (A) organize and reorganize the executive, 85
administrative, clerical and other responsibilities of such authority, 86
and (B) fix the duties, powers and compensation of each employee, 87
agent and consultant of such authority. 88
(e) (1) The board of directors of a land bank authority may exercise 89
any power necessary to carry out the purposes of this section, 90
including: 91
(A) To adopt, amend and repeal bylaws for the conduct of its 92
business; 93
(B) To sue and be sued in its own name, to plead and be impleaded 94
in any civil action, including, but not limited to, any such action to 95
clear title to property of such authority; 96
(C) To adopt a seal and to alter such seal; 97
(D) To borrow from private lenders, municipalities, the state or the 98
federal government any moneys necessary for the operation of such 99
authority; 100
(E) To issue negotiable revenue bonds and notes in accordance with 101
this section; 102
(F) To procure (i) insurance or guarantees from the state or the 103
federal government for the payment of any debt or part thereof 104
incurred by such authority, and to pay any premium in connection 105
therewith, and (ii) insurance against any loss in connection with any 106
real property, asset or activity of such authority; 107
(G) To enter into any contract or other instrument necessary, 108 Substitute Bill No. 7277
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incidental or convenient for carrying out the purposes of this section; 109
(H) To invest moneys of such authority in any instrument, 110
obligation, security or property deemed proper, and to name and use 111
any depository for any such moneys; 112
(I) To design, develop, construct, demolish, reconstruct, rehabilitate, 113
renovate, relocate and otherwise improve any real property or any 114
right or interest therein; 115
(J) To fix, charge and collect any rent, fee or charge for the use of 116
any real property of such authority and for any service provided by 117
such authority; 118
(K) To grant or acquire any license, easement, lease or option with 119
respect to any real property of such authority; and 120
(L) To enter into any collaborative relationship with any 121
municipality and other public and private entities for the ownership, 122
management, development and disposition of any real property. 123
(2) The board of directors of a land bank authority shall neither 124
possess nor exercise the power of eminent domain. 125
(f) (1) Notwithstanding any provision of the general statutes, a land 126
bank authority (A) may, on terms and conditions and in a manner 127
deemed proper by the board of directors of such authority, acquire any 128
real property or interest thereof by gift, devise, transfer, exchange, 129
foreclosure, purchase or other means, (B) shall hold in its own name 130
any property so acquired, and (C) shall create and make available for 131
public inspection an inventory of any property held by such authority. 132
(2) Such authority shall not hold any real property or interest 133
thereof located outside of the municipality or municipalities, as 134
applicable, that established such authority, and shall maintain all of its 135
real property in accordance with the laws of the municipality or 136
municipalities in which such property is located. Such authority may, 137 Substitute Bill No. 7277
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pursuant to an intergovernmental cooperation agreement with a 138
municipality, maintain real property located within such municipality. 139
(3) Any real property or interest thereof held by such authority, and 140
any income derived therefrom, shall be exempt from taxation by the 141
state and by any political subdivision thereof. 142
(g) (1) A land bank authority may convey, exchange, sell, transfer, 143
lease, grant, release, demise, mortgage or otherwise pledge or 144
hypothecate any interest in any real property held by such authority. 145
Except as may be provided in subdivision (3) of this subsection, the 146
board of directors of such authority may delegate to its staff the power 147
to contract with a legal entity for the conveyance of any such interest. 148
(2) Such board of directors shall set forth in such board's bylaws the 149
terms and conditions of any consideration to be received by such 150
authority for the conveyance of any interest in any real property held 151
by such authority, provided such consideration shall be in a form 152
deemed by such board to be in the best interest of such authority. 153
(3) The ordinance or concurrent ordinances, as applicable, adopted 154
pursuant to subsection (b) of this section may (A) establish an order of 155
priorities for the use of any interest in any real property conveyed by 156
such authority, and (B) require that certain means of disposing of any 157
such interest, or that the disposition of any such interest in certain 158
locations, be subject to different requirements for approval by the 159
board of directors of such authority. 160
(h) (1) A land bank authority may receive (A) grants or loans from 161
(i) the municipality or municipalities, as applicable, that established 162
such authority, (ii) any other municipality, (iii) the state, (iv) the 163
federal government, or (v) any other public or private source, and (B) 164
payment for (i) any service rendered, (ii) any rent or leasehold, (iii) any 165
consideration related to the disposition of any interest in real or 166
personal property held by such authority, (iv) any proceeds of 167
insurance coverage for any loss incurred, (v) any income from 168 Substitute Bill No. 7277
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investments, and (vi) any other asset or activity provided for under 169
this section. 170
(2) Commencing on October first immediately following the 171
conveyance of any interest in real property by a land bank authority, 172
and annually thereafter for five years, fifty per cent of the taxes 173
collected by a municipality or the state pursuant to state law on any 174
such interest so conveyed shall be remitted to such authority by such 175
municipality or the state. 176
(3) The municipality or municipalities, as applicable, that 177
established a land bank authority may provide for a supplemental fee, 178
penalty or charge to be imposed for the nonpayment by citizens of 179
such municipality or municipalities liable for property taxes assessed 180
against them. Any such supplemental fee, penalty or charge collected 181
by such municipality or municipalities shall be remitted to such 182
authority. 183
(i) (1) A land bank authority may issue limited obligation bonds, 184
pursuant to resolution of the board of directors of such authority, to 185
carry out the purposes of this section. Such resolution shall set forth 186
(A) the form and denomination of any such bond, (B) the manner of 187
sale at public sale or private sale and of delivery of such bond, (C) the 188
manner in which such bond bears interest and matures, (D) the 189
execution of such bond by one or more board members, and (E) any 190
option of such board to redeem any such bond and the manner of such 191
redemption. Such board shall publish such resolution in a newspaper 192
having general circulation within the municipality or municipalities, as 193
applicable, that established such authority. 194
(2) Such authority may pay the principal and interest of any such 195
bond, as well as the cost of issuance and any other incidental cost of 196
such bond, solely from revenues derived from the disposition of any 197
asset of such authority, except that for any refunding bond issued by 198
such board of directors, such authority may also make such payment 199
from the investment of any proceeds of such refunding bond. Any 200 Substitute Bill No. 7277
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such bond may be secured by a mortgage of any interest in any 201
property of such authority or by pledge of any such revenues, 202
including grants or contributions from the state or any agency thereof 203
or the federal government or any agency thereof. Any such refunding 204
bond shall not constitute under state law an indebtedness or pledge of 205
the general credit of any municipality, and shall contain a recital to 206
that effect. Any such bond shall be a negotiable instrument under state 207
law and law merchant. 208
(3) (A) Except as provided in subparagraph (B) of this subdivision, 209
(i) any such bond shall not be a debt of any municipality or of the state, 210
(ii) such bond shall contain a recital to that effect, and (iii) any 211
revenues and any interest of real property of any municipality or of the 212
state shall not be liable for any such bond. 213
(B) Any municipality that established a land bank authority may 214
guarantee, insure or otherwise become primarily or secondarily 215
obligated on the indebtedness of such authority, unless otherwise 216
prohibited by any other provision of the general statutes. 217
(4) Any bond issued by such authority, and any income derived 218
therefrom, shall be exempt from taxation by the state and by any 219
political subdivision of the state. 220
(j) The board of directors of a land bank authority may, by 221
resolution adopted by two-thirds of the total membership of such 222
board, dissolve such authority, provided such dissolution shall take 223
effect sixty days after the adoption of such resolution. Sixty days prior 224
to such board's consideration of such resolution, such board shall (1) 225
give written notice thereof to the municipality or municipalities, as 226
applicable, that established such authority, (2) publish notice thereof in 227
a newspaper having general circulation in such municipality or 228
municipalities, and (3) send notice thereof by certified mail to the 229
trustee of any outstanding bond of such authority. Each interest in real 230
or personal property and each asset of such authority at the time of 231
dissolution shall inure to the benefit of such municipality or 232 Substitute Bill No. 7277
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municipalities, as applicable. If two or more municipalities established 233
a land bank authority pursuant to this section, the withdrawal of one 234
such municipality shall not dissolve such authority unless (A) the 235
concurrent ordinances entering such municipalities into an 236
intergovernmental cooperation agreement so provides, or (B) no such 237
municipality wishes to continue the existence of such authority. 238
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Statement of Legislative Commissioners:
In Subsec. (c)(2), "in" was deleted in the last sentence for clarity and
"(4)" was changed to "(3)" for accuracy; in Subsec. (e)(1)(B), "please"
was changed to "plead" for accuracy; in Subsec. (e)(1)(J), "and" was
changed to "or" for accuracy; in Subsec. (i)(1)(D), "more" was inserted
before "board members" for accuracy; in Subsec. (i)(3)(B) "state law"
was changed to "any provision of the general statutes", for clarity; and
in Subsec. (j), "of" was inserted before "dissolution" in the penultimate
sentence for clarity.
PD Joint Favorable Subst. -LCO