LCO No. 5006 1 of 21 General Assembly Raised Bill No. 7280 January Session, 2019 LCO No. 5006 Referred to Committee on TRANSPORTATION Introduced by: (TRA) AN ACT CONCERNING SU PPORT FOR TRANSPORTATION INFRASTRUCTURE AND T HE CREATION OF THE CONNECTICUT TRANSPORTATION FINAN CE AUTHORITY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective from passage) As used in this section and 1 sections 2 to 8, inclusive, of this act: 2 (1) "Electronic tolling system" means an electronic system for 3 recording, monitoring, collecting and paying for tolls on the highways 4 of this state, including, but not limited to, video toll transaction 5 systems, transponders or other electronic transaction or payment 6 technology or devices; 7 (2) "Department" means the Department of Transportation; and 8 (3) "Toll operator" means a private entity that operates an electronic 9 tolling system pursuant to an agreement with the department and 10 whose duties may include, but need not be limited to, collecting tolls, 11 administrative charges and penalties. 12 Raised Bill No. 7280 LCO No. 5006 2 of 21 Sec. 2. (NEW) (Effective from passage) (a) (1) The Commissioner of 13 Transportation shall (A) conduct studies and satisfy other 14 requirements pursuant to the National Environmental Policy Act and 15 other provisions of applicable federal law for the purposes of 16 developing electronic tolling systems on the highways of this state, (B) 17 procure a program manager and other consultants or experts as 18 needed to assist in the development of the electronic tolling systems, 19 and (C) prepare a tolling proposal that (i) implements electronic tolling 20 systems on Interstate 84, Interstate 91, Interstate 95 and portions of 21 Connecticut Route 15, (ii) may include implementing electronic tolling 22 systems on any other limited access highway, or portions thereof, if the 23 commissioner determines such implementation is necessary and 24 provides the rationale for such implementation, (iii) identifies the 25 specific locations where the proposed tolls may be located, the toll 26 amounts that may be charged, including the use of value pricing and 27 discounts, if any, and the time periods for peak and off-peak travel, 28 and (iv) estimates the capital and operating costs associated with the 29 electronic tolling systems. 30 (2) In developing a tolling proposal, the commissioner shall 31 consider: (A) A phase-in for the operation of any electronic tolling 32 system; (B) discounts, income tax credits and credits to a toll customer 33 account for (i) persons who are residents of this state, (ii) persons with 34 a transponder or similar device issued by the department or a toll 35 operator, (iii) frequent users of a tolled highway, (iv) persons of low 36 income, and (v) high-occupancy vehicles; and (C) in consultation with 37 the Commissioner of Economic and Community Development, ways 38 to assist small businesses impacted by the implementation of tolls. 39 (b) (1) The commissioner shall file the tolling proposal with the 40 clerks of the House of Representatives and the Senate. If the tolling 41 proposal is filed when the General Assembly is in regular session, the 42 joint standing committee of the General Assembly having cognizance 43 of matters relating to transportation shall hold an informational 44 hearing regarding the tolling proposal not later than ten days after 45 such filing. If the tolling proposal is filed when the General Assembly 46 Raised Bill No. 7280 LCO No. 5006 3 of 21 is not in session, the joint standing committee of the General Assembly 47 having cognizance of matters relating to transportation shall hold an 48 informational hearing regarding the tolling proposal not later than ten 49 days after the first day of the next regular session. The committee shall 50 receive comments from members of the public during the 51 informational hearing. 52 (2) Not later than fifteen days after the joint standing committee of 53 the General Assembly having cognizance of matters relating to 54 transportation holds an informational hearing regarding the tolling 55 proposal, the General Assembly shall vote to approve or reject the 56 tolling proposal. The tolling proposal shall be approved in whole by a 57 majority vote of each house or rejected by a majority vote in either 58 house. If both houses fail to vote during such fifteen-day period, the 59 tolling proposal shall be deemed approved by the General Assembly. 60 Such fifteen-day period shall not expire unless the General Assembly is 61 in regular session. If the regular session adjourns prior to such fifteenth 62 day and the tolling proposal has not been acted upon, the tolling 63 proposal shall be deemed filed on the first day of the next regular 64 session. 65 (c) If the General Assembly rejects the tolling proposal, the 66 commissioner may revise the tolling proposal. Any such revised 67 tolling proposal shall be submitted to the clerks of the House of 68 Representatives and the Senate and subject to an informational hearing 69 and approval or rejection by the General Assembly in the same manner 70 as described in subsection (b) of this section. 71 (d) If the tolling proposal is approved or deemed approved by the 72 General Assembly in accordance with this section, the commissioner 73 shall submit the tolling proposal to the Federal Highway 74 Administration. In no event shall the commissioner submit a tolling 75 proposal to the Federal Highway Administration unless the tolling 76 proposal has been approved or deemed approved by the General 77 Assembly. 78 Raised Bill No. 7280 LCO No. 5006 4 of 21 Sec. 3. (NEW) (Effective from passage) (a) After a tolling proposal to 79 implement electronic tolling systems has been approved or deemed 80 approved by the General Assembly pursuant to section 2 of this act, 81 the department may construct, maintain and operate electronic tolling 82 systems on Interstate 84, Interstate 91, Interstate 95 and portions of 83 Connecticut Route 15 in accordance with such proposal. The 84 department may enter into an agreement with a toll operator to 85 operate such systems. 86 (b) To carry out its duties and responsibilities under this section and 87 sections 4 to 7, inclusive, of this act, and any regulations adopted 88 under section 8 of this act, the department may enter into tolling 89 agreements with the Federal Highway Administration and 90 coordination agreements, intergovernmental agreements or other 91 implementation agreements with any other federal, state or municipal 92 entity or agency. 93 (c) The department may procure, retain and expend funds for 94 technical, traffic, revenue and financial consultants, attorneys and 95 other consultants and experts to assist in the development, 96 implementation, maintenance and operation of electronic tolling 97 systems. 98 (d) The department may procure, retain and expend funds for toll 99 operators, vendors, suppliers, designers, engineers, software 100 designers, installers, contractors, maintenance personnel, customer 101 service personnel and other equipment, materials, personnel and 102 services for the development, implementation, maintenance and 103 operation of electronic tolling systems and for the collection and 104 enforcement of tolls. 105 (e) The department may enter into agreements for the provision of 106 any service specified in subsections (c) and (d) of this section, or any 107 combination thereof, pursuant to an open, competitive process. 108 (f) (1) The department and the Department of Motor Vehicles, either 109 jointly or separately, may enter into reciprocal agreements with other 110 Raised Bill No. 7280 LCO No. 5006 5 of 21 states, jurisdictions and operators of toll facilities in other states to 111 obtain and share any toll operator information regarding an out-of-112 state registered owner of a vehicle that has used a tolled highway, 113 including the make of the motor vehicle, the motor vehicle's number 114 plate and the name and address of the registered owner of the motor 115 vehicle. 116 (2) The department and the Department of Motor Vehicles may 117 enter into, or authorize a toll operator on behalf of the departments to 118 enter into, reciprocal agreements with other states, jurisdictions and 119 operators of toll facilities in other states for the efficient collection of 120 tolls incurred by residents of states other than this state. 121 Sec. 4. (NEW) (Effective from passage) (a) After a tolling proposal to 122 implement electronic tolling systems has been approved or deemed 123 approved by the General Assembly pursuant to section 2 of this act, 124 the department may collect the amount of all tolls for transit over or 125 use of the highways specified in such proposal. 126 (b) Prior to commencing construction of an electronic tolling system 127 on any highway, or portion thereof, of this state, the department shall 128 hold at least one public informational meeting in the general vicinity of 129 the proposed toll corridor to receive comments on the proposed toll. 130 (c) The department shall place and maintain signs in advance of any 131 tolled highways to notify motor vehicle operators (1) that a toll will be 132 charged on such highway, and (2) how to pay such toll. 133 (d) All revenues received by the department from tolls and the 134 imposition of civil penalties associated with toll nonpayment, toll 135 evasion or other toll-related violations shall be deposited into the 136 Special Transportation Fund, established pursuant to section 13b-68 of 137 the general statutes and section 19 of article third of the Constitution of 138 the state, and shall not be commingled with other funds and revenues. 139 Such revenues shall be expended only for the purposes and subject to 140 the provisions of 23 USC 129(a)(3), as amended from time to time. 141 Raised Bill No. 7280 LCO No. 5006 6 of 21 (e) Tolls shall not be subject to and shall be exempt from taxation of 142 every kind by the state and by the municipalities and all other political 143 subdivisions or special districts having taxing powers in the state. 144 Sec. 5. (NEW) (Effective from passage) Any electronic tolling system 145 operated by the department or a toll operator shall be interoperable 146 with all other electronic tolling systems in this state and shall comply 147 with all state and federal interoperability requirements and standards. 148 Such tolling system interoperability shall extend to system technology 149 and the transfer of funds. The Commissioners of Transportation and 150 Motor Vehicles, in consultation with the Commissioner of 151 Administrative Services, shall ensure the coordination and 152 compatibility of information system technology and data of any 153 electronic tolling system. The provisions of chapters 58 and 61 of the 154 general statutes shall not apply to this section. 155 Sec. 6. (NEW) (Effective from passage) (a) Except as provided in 156 subsection (b) of this section, neither the department nor any toll 157 operator shall sell or use any toll customer information or other data 158 for commercial purposes unrelated to the charging, collection and 159 enforcement of tolls, administrative fees and penalties. 160 (b) The department may release toll customer information and other 161 data that does not directly or indirectly identify a toll customer for 162 research purposes authorized by the department. 163 (c) (1) Except as required by applicable law or in connection with an 164 administrative or court proceeding, all information that specifically 165 identifies a toll customer and relates to a specific tolling transaction 166 shall be destroyed not later than one year after the later of the tolling 167 transaction or the collection of the toll, whether through normal 168 processes or enforcement. 169 (2) Except as required by applicable law or in connection with an 170 administrative or court proceeding, all information relating to a toll 171 customer account that specifically identifies a toll customer shall be 172 destroyed not later than one year after the collection of all tolls and 173 Raised Bill No. 7280 LCO No. 5006 7 of 21 fees incurred by such toll customer, whether through normal 174 processes, enforcement or closing of such account. 175 (d) Toll customer information and data shall not be deemed a public 176 record, as defined in section 1-200 of the general statutes. 177 (e) Toll operators shall be subject to the provisions of chapter 62a of 178 the general statutes. 179 Sec. 7. (NEW) (Effective from passage) (a) Any person who contests 180 the amount of a toll or an associated charge shall be afforded an 181 opportunity for a hearing with the department in accordance with the 182 provisions of chapter 54 of the general statutes. 183 (b) The department, after notice and hearing, may impose a civil 184 penalty of not more than twenty-five dollars for a first violation, not 185 more than fifty dollars for a second violation and not more than one 186 hundred dollars for a third or subsequent violation of a provision of 187 the regulations adopted pursuant to section 8 of this act on any of the 188 following persons with respect to toll nonpayment, toll evasion or 189 related fees: (1) The operator of a motor vehicle on a tolled highway; 190 (2) the registered owner of a motor vehicle operated on a tolled 191 highway, if other than the operator, if such vehicle was used or 192 operated with the express or implied permission of the registered 193 owner at the time of the tolling transaction; (3) the lessee of a motor 194 vehicle operated on a tolled highway, if other than the operator, if such 195 vehicle was used or operated with the express or implied permission 196 of the lessee at the time of the tolling transaction; and (4) the lessor of a 197 motor vehicle operated on a tolled highway. 198 (c) A copy of the motor vehicle rental agreement, lease, other 199 contract document or affidavit identifying the lessee of the motor 200 vehicle at the time of the tolling transaction shall be prima facie 201 evidence that the person named in the rental agreement, lease, other 202 contract document or affidavit was operating the motor vehicle at all 203 relevant times relating to the tolling transaction. A lessor shall 204 cooperate with the department or the toll operator, as the case may be, 205 Raised Bill No. 7280 LCO No. 5006 8 of 21 in providing the department or toll operator any requested 206 information concerning the lessee contained in the lessor's record. 207 (d) The Department of Motor Vehicles shall provide the Department 208 of Transportation and any toll operator with the information necessary 209 to collect tolls and enforce penalties for toll nonpayment, toll evasion 210 or other toll-related violations, including, but not limited to, 211 information regarding the registered owner of a motor vehicle that was 212 operated on a tolled highway and the make of the motor vehicle, the 213 motor vehicle's number plate and the name and address of the 214 registered owner of the motor vehicle. 215 Sec. 8. (NEW) (Effective from passage) (a) The Commissioner of 216 Transportation shall adopt regulations, in accordance with the 217 provisions of chapter 54 of the general statutes, to implement the 218 provisions of sections 3 to 7, inclusive, of this act. Such regulations 219 may include, but need not be limited to: (1) Provisions to protect and 220 appropriately limit access to toll customer information and other data 221 collected, received, maintained, archived, accessed and disclosed by 222 the department, and (2) the manner in which a transponder or similar 223 device shall be located in or on a motor vehicle entering an electronic 224 tolling system if such system uses a transponder or similar device. 225 (b) The Commissioner of Motor Vehicles, in consultation with the 226 Commissioner of Transportation, shall adopt regulations, in 227 accordance with the provisions of chapter 54 of the general statutes, to 228 implement the provisions of sections 3 to 7, inclusive, of this act. Such 229 regulations shall include restrictions on issuing a registration to the 230 owner of a motor vehicle who owes tolls for transit over or use of a 231 tolled highway or owes administrative charges or penalties for the late 232 payment of tolls or toll evasion. 233 Sec. 9. (NEW) (Effective from passage) (a) (1) When the Treasurer 234 determines the resources of the Special Transportation Fund 235 established under section 13b-69 of the general statutes exceed three 236 times the estimated payments of debt service on obligations of the state 237 Raised Bill No. 7280 LCO No. 5006 9 of 21 incurred for transportation purposes, the Treasurer shall provide 238 written notice to the Commissioner of Revenue Services of such 239 determination. 240 (2) Not later than fifteen days after the commencement of any 241 electronic tolling systems on the highways of this state, as defined in 242 section 1 of this act, the Commissioner of Transportation shall provide 243 written notice to the Commissioner of Revenue Services of the date of 244 such commencement. 245 (b) Notwithstanding the provisions of subdivision (2) of subsection 246 (a) of section 12-458 of the general statutes and section 12-458h of the 247 general statutes, on July first after the first full fiscal year that follows 248 the later of the notices required under subdivisions (1) and (2) of 249 subsection (a) of this section, and for each of the following four fiscal 250 years, the amount of the tax imposed by section 12-458 of the general 251 statutes shall be decreased by one cent. The Commissioner of Revenue 252 Services shall calculate the applicable tax rate per gallon of fuel, as 253 defined in section 12-455a of the general statutes, that is sold or used in 254 this state and notify each distributor, the chairpersons and ranking 255 members of the joint standing committee of the General Assembly 256 having cognizance of matters relating to finance, revenue and bonding 257 and the Secretary of the Office of Policy and Management of the 258 applicable tax rate for each such fiscal year. 259 Sec. 10. (NEW) (Effective from passage) (a) There is hereby established 260 and created a body politic and corporate, constituting a public 261 instrumentality and political subdivision of the state established and 262 created for the performance of an essential public and governmental 263 function, to be known as the Connecticut Transportation Finance 264 Authority. The authority shall not be construed to be a department, 265 institution or agency of the state. 266 (b) The powers of the authority shall be vested in and exercised by a 267 board of directors, which shall consist of thirteen members, appointed 268 as follows: Three members of the Senate, one appointed by the 269 Raised Bill No. 7280 LCO No. 5006 10 of 21 president pro tempore of the Senate, one appointed by the majority 270 leader of the Senate and one appointed by the minority leader of the 271 Senate; three members of the House of Representatives, one appointed 272 by the speaker of the House of Representatives, one appointed by the 273 majority leader of the House of Representatives, and one appointed by 274 the minority leader of the House of Representatives; the 275 Commissioners of Transportation, Economic and Community 276 Development, Energy and Environmental Protection and Housing, or 277 their designees; the State Treasurer, or the Treasurer's designee; and 278 two members appointed by the Governor who shall serve for a term of 279 four years. Members of the board who are members of the General 280 Assembly shall serve for the terms for which they were elected. The 281 board of directors shall select the chairperson from among the 282 members of the board, who shall serve for a term of two years. The 283 board of directors shall select a vice-chairperson from among its 284 members and such other officers as it deems necessary. 285 (c) Members of the board of directors, unless otherwise provided, 286 may not designate a representative to perform in their absence their 287 respective duties under this section and sections 11 and 12 of this act. 288 Any vacancy occurring other than by expiration of term shall be filled 289 in the same manner as the original appointment for the balance of the 290 unexpired term. The appointing authority for any member may 291 remove such member for inefficiency, wilful neglect of duty, 292 misfeasance or malfeasance. 293 (d) The chairperson shall, with the approval of the members of the 294 board of directors, appoint an executive director of the authority who 295 shall be an employee of the authority and paid a salary prescribed by 296 the members. The executive director shall supervise the administrative 297 affairs and technical activities of the authority in accordance with the 298 directives of the board. 299 (e) Members may engage in private employment, or in a profession 300 or business, subject to any applicable laws, rules and regulations of the 301 state regarding official ethics or conflict of interest. 302 Raised Bill No. 7280 LCO No. 5006 11 of 21 (f) Seven members of the board of directors of the authority, 303 provided three such members are members of the General Assembly, 304 shall constitute a quorum for the transaction of any business or the 305 exercise of any power of the authority. For the transaction of any 306 business or the exercise of any power of the authority, and except as 307 otherwise provided in this section and sections 11 and 12 of this act, 308 the authority may act by a majority of the members present at any 309 meeting at which a quorum is in attendance. 310 (g) The authority shall continue as long as it has bonds or other 311 obligations outstanding and until its existence is terminated by law, 312 provided no such termination shall affect any outstanding contractual 313 obligation of the authority and the state shall succeed to the obligations 314 of the authority under any contract. Upon the termination of the 315 existence of the authority, all its rights and properties shall pass to and 316 be vested in the state of Connecticut. 317 (h) It shall not constitute a conflict of interest for a trustee, director, 318 partner or officer of any person, firm or corporation, or any individual 319 having a financial interest in a person, firm or corporation, to serve as a 320 member of the board of directors of the authority, provided such 321 trustee, director, partner, officer or individual shall comply with all 322 applicable provisions of chapter 10 of the general statutes. 323 Sec. 11. (NEW) (Effective from passage) (a) The purposes of the 324 Connecticut Transportation Finance Authority shall be to: 325 (1) Approve the state-wide transportation improvement plan, the 326 five-year transportation capital plan for the state and the long-range 327 transportation plan developed by the Department of Transportation 328 after evaluating whether such plans assure the development and 329 maintenance of an adequate, safe and efficient transportation system 330 that meets the present and future transportation needs of the state and 331 assessing the impact of such plans on economic development, transit-332 oriented development, housing development, access to employment, 333 the environment and the specific needs of the geographic areas of the 334 Raised Bill No. 7280 LCO No. 5006 12 of 21 state; 335 (2) Establish a Connecticut Transportation Infrastructure Bank to 336 assist in financing transportation infrastructure projects by providing 337 loans and other financial assistance to public and private entities in 338 order to improve transportation infrastructure in the state, including, 339 but not limited to, the acquisition, removal, construction, equipping, 340 reconstruction, repair, rehabilitation and improvement of, and 341 acquisition of easements and rights-of-ways with respect to, roadways, 342 highways, bridges, commuter and freight railways, transit and 343 intermodal systems, airports and aeronautic facilities, ports, harbors 344 and navigable waterways; and 345 (3) After a tolling proposal to implement electronic tolling systems 346 is approved or deemed approved by the General Assembly pursuant 347 to section 2 of this act, establish and adjust, as necessary, toll rates for 348 transit over or use of the highways, of portions thereof, so as to 349 provide, at a minimum, funding that is sufficient to: (A) Pay costs 350 related to tolled highways in this state, including, but not limited to, 351 the cost of owning, maintaining, repairing, reconstructing, improving, 352 rehabilitating, using, administering, controlling and operating such 353 highways; (B) pay the principal of, redemption premium, if any, and 354 interest on notes or bonds relating to tolled highways, as such 355 principal, premium or interest become due and payable; and (C) create 356 and maintain reserves established for any of the Department of 357 Transportation's highway and bridge responsibilities under titles 13a 358 and 13b of the general statutes for the operation and maintenance of 359 tolled highways. Such sufficiency of funding may take into account the 360 availability of funds from other sources. Prior to fixing or adjusting the 361 amount of tolls for transit over or use of the highways, or portions 362 thereof, the authority shall hold not less than one public hearing. 363 (b) For such purposes, the authority is authorized and empowered 364 to: 365 (1) Have perpetual succession as a body politic and corporate and to 366 Raised Bill No. 7280 LCO No. 5006 13 of 21 adopt bylaws for the regulation of its affairs and the conduct of its 367 business; 368 (2) Adopt an official seal and alter the same at pleasure; 369 (3) Maintain an office at such place or places as it may designate; 370 (4) Sue and be sued in its own name, and plead and be impleaded; 371 (5) (A) Employ such assistants, agents and other employees as may 372 be necessary or desirable who shall be employees, as defined in 373 subsection (b) of section 5-270 of the general statutes; (B) establish all 374 necessary or appropriate personnel practices and policies, including 375 those relating to hiring, promotion, compensation, retirement and 376 collective bargaining, which shall be in accordance with chapter 68 of 377 the general statutes, and the authority shall be an employer as defined 378 in subsection (a) of section 5-270 of the general statutes; and (C) engage 379 consultants, attorneys and appraisers as may be necessary or desirable 380 to carry out its purposes in accordance with this section and sections 381 10, 12 and 13 of this act; 382 (6) Issue bonds, bond anticipation notes and other obligations of the 383 authority for any of its corporate purposes, and to fund or refund the 384 same and provide for the rights of the holders thereof, and to secure 385 the same by pledge or revenues, notes and mortgages of others; 386 (7) Receive and accept aid or contributions from any source of 387 money, property, labor or other things of value, to be held, used and 388 applied to carry out the purposes of this section and sections 10, 12 and 389 13 of this act subject to such conditions upon which such grants and 390 contributions may be made, including, but not limited to, gifts or 391 grants from any department, agency or instrumentality of the United 392 States or this state for any purpose consistent with this section and 393 sections 10, 12 and 13 of this act; 394 (8) Borrow money for the purpose of obtaining working capital; 395 (9) Make and enter into all contracts and agreements necessary or 396 Raised Bill No. 7280 LCO No. 5006 14 of 21 incidental to the performance of its duties and the execution of its 397 powers under this section and sections 10, 12 and 13 of this act, 398 including contracts and agreements for the establishment of the 399 Connecticut Transportation Infrastructure Bank and for the provision 400 of professional services as the authority deems necessary, including, 401 but not limited to, financial consultants, bond counsel, underwriters 402 and technical specialists; 403 (10) Acquire, lease, purchase, own, manage, hold and dispose of 404 personal property, and lease, convey or deal in or enter into 405 agreements with respect to such property on any terms necessary or 406 incidental to the carrying out of these purposes; 407 (11) Invest in, acquire, lease, purchase, own, manage, hold and 408 dispose of real property and lease, convey or deal in or enter into 409 agreements with respect to such property on any terms necessary or 410 incidental to carrying out the purposes of this section and sections 10, 411 12 and 13 of this act, provided such transactions shall not be subject to 412 approval, review or regulation by any state agency pursuant to title 4b 413 of the general statutes or any other provision of the general statutes; 414 (12) Procure insurance against any liability or loss in connection 415 with its property and other assets, in such amounts and from such 416 insurers as it deems desirable and to procure insurance for employees; 417 (13) Account for and audit funds of the authority and funds of any 418 recipients of funds from the authority; 419 (14) Establish advisory committees to assist in accomplishing its 420 duties under this section and sections 10, 12 and 13 of this act, which 421 may include one or more members of the board of directors and 422 persons other than members; 423 (15) Pursue public-private partnerships for the design, 424 development, operation or maintenance of transportation systems, 425 transit-oriented development and related infrastructure; and 426 Raised Bill No. 7280 LCO No. 5006 15 of 21 (16) Do all acts and things necessary or convenient to carry out the 427 purposes of this section and sections 10, 12 and 13 of this act and the 428 powers expressly granted by said sections. 429 Sec. 12. (NEW) (Effective from passage) The members of the board of 430 directors of the Connecticut Transportation Finance Authority shall 431 adopt written procedures, in accordance with the provisions of section 432 1-121 of the general statutes, for: (1) Adopting an annual budget and 433 plan of operations, including a requirement of board approval before 434 the budget or plan may take effect; (2) hiring, dismissing, promoting 435 and compensating employees of the authority, including an 436 affirmative action policy and a requirement of board approval before a 437 position may be created or a vacancy filled; (3) acquiring real and 438 personal property and personal services, including a requirement of 439 board approval for any nonbudgeted expenditure in excess of an 440 amount to be determined by the board; (4) contracting for financial, 441 legal, bond underwriting and other professional services, including a 442 requirement that the authority solicit proposals at least once every 443 three years for each such service that it uses; (5) issuing and retiring 444 bonds, bond anticipation notes and other obligations of the authority; 445 (6) awarding loans, grants and other financial assistance, including 446 eligibility criteria, the application process and the role played by the 447 authority's staff and board of directors; (7) the use of surplus funds to 448 the extent authorized under this section and sections 10 and 11 of this 449 act or other provisions of the general statutes; and (8) with regards to 450 toll rates for transit over or use of the highways, or portions thereof, 451 establishing (A) variable toll rates that take into consideration the day 452 of the week, level of congestion or anticipated congestion, (B) different 453 fees based on the type of vehicle classification, size, weight, number of 454 axles or vehicle occupancy, (C) discounts and credits to a toll customer 455 account for persons with a transponder or similar technology issued 456 by the Department of Transportation or a toll operator, (D) exemptions 457 for certain types of motor vehicles, including, but not limited to, high-458 occupancy vehicles, motor vehicles leased or owned by the state, 459 motor vehicles used by a law enforcement unit, firefighter or a 460 Raised Bill No. 7280 LCO No. 5006 16 of 21 member of an emergency medical service organization and motor 461 vehicles used to provide public transit services, (E) surcharges, 462 premiums or additional fees for designated users or classes of users of 463 a tolled highway who travel on such highway without a transponder 464 or similar technology issued by the department or a toll operator, and 465 (F) administrative charges and penalties for the late payment of tolls 466 and toll evasion, which shall be not more than twenty-five dollars for a 467 first violation, not more than fifty dollars for a second violation and 468 not more than one hundred dollars for a third or subsequent violation. 469 Sec. 13. (NEW) (Effective from passage) There is established a 470 Connecticut Transportation Infrastructure Bank Fund, which shall be 471 within the Connecticut Transportation Finance Authority. The fund 472 may receive any amount required by law to be deposited into the fund, 473 including, but not limited to, payments of principal and interest on any 474 loans, investment earnings, proceeds from the issuance of bonds and 475 any federal funds as may become available to the state for 476 transportation infrastructure investments. Any balance remaining in 477 the fund at the end of any fiscal year shall be carried forward for the 478 next fiscal year. The fund shall be used by the Connecticut 479 Transportation Finance Authority for expenditures that promote 480 investment in transportation infrastructure projects. Such expenditures 481 may include, but need not be limited to: (1) Providing low interest 482 loans or other financial assistance for the purpose of financing all or a 483 portion of the costs incurred for the acquisition, removal, construction, 484 equipping, reconstruction, repair, rehabilitation and improvement of a 485 transportation infrastructure project, (2) reimbursement of the 486 operating expenses, including administrative expenses incurred by the 487 authority, and (3) capital costs incurred by the authority in connection 488 with the operation of the fund, other permitted activities of the 489 Connecticut Transportation Infrastructure Bank, grants, direct or 490 equity investments, contracts or other actions that support 491 transportation infrastructure projects in the state. 492 Sec. 14. Subdivision (12) of section 1-79 of the general statutes is 493 repealed and the following is substituted in lieu thereof (Effective from 494 Raised Bill No. 7280 LCO No. 5006 17 of 21 passage): 495 (12) "Quasi-public agency" means Connecticut Innovations, 496 Incorporated, the Connecticut Health and Education Facilities 497 Authority, the Connecticut Higher Education Supplemental Loan 498 Authority, the Connecticut Student Loan Foundation, the Connecticut 499 Housing Finance Authority, the State Housing Authority, the Materials 500 Innovation and Recycling Authority, the Capital Region Development 501 Authority, the Connecticut Lottery Corporation, the Connecticut 502 Airport Authority, the Connecticut Health Insurance Exchange, the 503 Connecticut Green Bank, the Connecticut Retirement Security 504 Authority, the Connecticut Port Authority, [and] the State Education 505 Resource Center and the Connecticut Transportation Finance 506 Authority. 507 Sec. 15. Section 1-120 of the general statutes is repealed and the 508 following is substituted in lieu thereof (Effective from passage): 509 As used in sections 1-120 to 1-123, inclusive: 510 (1) "Quasi-public agency" means Connecticut Innovations, 511 Incorporated, the Connecticut Health and Educational Facilities 512 Authority, the Connecticut Higher Education Supplemental Loan 513 Authority, the Connecticut Student Loan Foundation, the Connecticut 514 Housing Finance Authority, the Connecticut Housing Authority, the 515 Materials Innovation and Recycling Authority, the Capital Region 516 Development Authority, the Connecticut Lottery Corporation, the 517 Connecticut Airport Authority, the Connecticut Health Insurance 518 Exchange, the Connecticut Green Bank, the Connecticut Retirement 519 Security Authority, the Connecticut Port Authority, [and] the State 520 Education Resource Center and the Connecticut Transportation 521 Finance Authority. 522 (2) "Procedure" means each statement, by a quasi-public agency, of 523 general applicability, without regard to its designation, that 524 implements, interprets or prescribes law or policy, or describes the 525 organization or procedure of any such agency. The term includes the 526 Raised Bill No. 7280 LCO No. 5006 18 of 21 amendment or repeal of a prior regulation, but does not include, 527 unless otherwise provided by any provision of the general statutes, (A) 528 statements concerning only the internal management of any agency 529 and not affecting procedures available to the public, and (B) intra-530 agency memoranda. 531 (3) "Proposed procedure" means a proposal by a quasi-public 532 agency under the provisions of section 1-121 for a new procedure or 533 for a change in, addition to or repeal of an existing procedure. 534 Sec. 16. Section 1-124 of the general statutes is repealed and the 535 following is substituted in lieu thereof (Effective from passage): 536 (a) Connecticut Innovations, Incorporated, the Connecticut Health 537 and Educational Facilities Authority, the Connecticut Higher 538 Education Supplemental Loan Authority, the Connecticut Student 539 Loan Foundation, the Connecticut Housing Finance Authority, the 540 Connecticut Housing Authority, the Materials Innovation and 541 Recycling Authority, the Connecticut Airport Authority, the Capital 542 Region Development Authority, the Connecticut Health Insurance 543 Exchange, the Connecticut Green Bank, the Connecticut Retirement 544 Security Authority, the Connecticut Port Authority, [and] the State 545 Education Resource Center and the Connecticut Transportation 546 Finance Authority shall not borrow any money or issue any bonds or 547 notes which are guaranteed by the state of Connecticut or for which 548 there is a capital reserve fund of any kind which is in any way 549 contributed to or guaranteed by the state of Connecticut until and 550 unless such borrowing or issuance is approved by the State Treasurer 551 or the Deputy State Treasurer appointed pursuant to section 3-12. The 552 approval of the State Treasurer or said deputy shall be based on 553 documentation provided by the authority that it has sufficient 554 revenues to (1) pay the principal of and interest on the bonds and notes 555 issued, (2) establish, increase and maintain any reserves deemed by the 556 authority to be advisable to secure the payment of the principal of and 557 interest on such bonds and notes, (3) pay the cost of maintaining, 558 servicing and properly insuring the purpose for which the proceeds of 559 Raised Bill No. 7280 LCO No. 5006 19 of 21 the bonds and notes have been issued, if applicable, and (4) pay such 560 other costs as may be required. 561 (b) To the extent Connecticut Innovations, Incorporated, the 562 Connecticut Higher Education Supplemental Loan Authority, the 563 Connecticut Student Loan Foundation, the Connecticut Housing 564 Finance Authority, the Connecticut Housing Authority, the Materials 565 Innovation and Recycling Authority, the Connecticut Health and 566 Educational Facilities Authority, the Connecticut Airport Authority, 567 the Capital Region Development Authority, the Connecticut Health 568 Insurance Exchange, the Connecticut Green Bank, the Connecticut 569 Retirement Security Authority, the Connecticut Port Authority, [or] the 570 State Education Resource Center or the Connecticut Transportation 571 Finance Authority is permitted by statute and determines to exercise 572 any power to moderate interest rate fluctuations or enter into any 573 investment or program of investment or contract respecting interest 574 rates, currency, cash flow or other similar agreement, including, but 575 not limited to, interest rate or currency swap agreements, the effect of 576 which is to subject a capital reserve fund which is in any way 577 contributed to or guaranteed by the state of Connecticut, to potential 578 liability, such determination shall not be effective until and unless the 579 State Treasurer or his or her deputy appointed pursuant to section 3-12 580 has approved such agreement or agreements. The approval of the State 581 Treasurer or his or her deputy shall be based on documentation 582 provided by the authority that it has sufficient revenues to meet the 583 financial obligations associated with the agreement or agreements. 584 Sec. 17. Section 1-125 of the general statutes is repealed and the 585 following is substituted in lieu thereof (Effective from passage): 586 The directors, officers and employees of Connecticut Innovations, 587 Incorporated, the Connecticut Higher Education Supplemental Loan 588 Authority, the Connecticut Student Loan Foundation, the Connecticut 589 Housing Finance Authority, the Connecticut Housing Authority, the 590 Materials Innovation and Recycling Authority, including ad hoc 591 members of the Materials Innovation and Recycling Authority, the 592 Raised Bill No. 7280 LCO No. 5006 20 of 21 Connecticut Health and Educational Facilities Authority, the Capital 593 Region Development Authority, the Connecticut Airport Authority, 594 the Connecticut Lottery Corporation, the Connecticut Health Insurance 595 Exchange, the Connecticut Green Bank, the Connecticut Retirement 596 Security Authority, the Connecticut Port Authority, [and] the State 597 Education Resource Center and the Connecticut Transportation 598 Finance Authority and any person executing the bonds or notes of the 599 agency shall not be liable personally on such bonds or notes or be 600 subject to any personal liability or accountability by reason of the 601 issuance thereof, nor shall any director or employee of the agency, 602 including ad hoc members of the Materials Innovation and Recycling 603 Authority, be personally liable for damage or injury, not wanton, 604 reckless, wilful or malicious, caused in the performance of his or her 605 duties and within the scope of his or her employment or appointment 606 as such director, officer or employee, including ad hoc members of the 607 Materials Innovation and Recycling Authority. The agency shall 608 protect, save harmless and indemnify its directors, officers or 609 employees, including ad hoc members of the Materials Innovation and 610 Recycling Authority, from financial loss and expense, including legal 611 fees and costs, if any, arising out of any claim, demand, suit or 612 judgment by reason of alleged negligence or alleged deprivation of any 613 person's civil rights or any other act or omission resulting in damage 614 or injury, if the director, officer or employee, including ad hoc 615 members of the Materials Innovation and Recycling Authority, is 616 found to have been acting in the discharge of his or her duties or 617 within the scope of his or her employment and such act or omission is 618 found not to have been wanton, reckless, wilful or malicious. 619 This act shall take effect as follows and shall amend the following sections: Section 1 from passage New section Sec. 2 from passage New section Sec. 3 from passage New section Sec. 4 from passage New section Sec. 5 from passage New section Sec. 6 from passage New section Raised Bill No. 7280 LCO No. 5006 21 of 21 Sec. 7 from passage New section Sec. 8 from passage New section Sec. 9 from passage New section Sec. 10 from passage New section Sec. 11 from passage New section Sec. 12 from passage New section Sec. 13 from passage New section Sec. 14 from passage 1-79(12) Sec. 15 from passage 1-120 Sec. 16 from passage 1-124 Sec. 17 from passage 1-125 Statement of Purpose: To (1) require the Commissioner of Transportation to submit a tolling proposal to the General Assembly; and (2) create the Connecticut Transportation Finance Authority. [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.]