LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280-R01- HB.docx 1 of 21 General Assembly Substitute Bill No. 7280 January Session, 2019 AN ACT CONCERNING SU PPORT FOR TRANSPORTA TION 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 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 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 2 of 21 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 Route 84, Interstate Route 91, Interstate Route 95 21 and portions of Connecticut Route 15, (ii) may include implementing 22 electronic tolling systems on any other limited access highway, or 23 portions thereof, if the commissioner determines such implementation 24 is necessary and provides the rationale for such implementation, (iii) 25 identifies the specific locations where the proposed tolls may be 26 located, the toll amounts that may be charged, including the use of 27 value pricing and discounts, if any, and the time periods for peak and 28 off-peak travel, and (iv) estimates the capital and operating costs 29 associated with the 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 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 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 3 of 21 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 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 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 4 of 21 the department may construct, maintain and operate electronic tolling 82 systems on Interstate Route 84, Interstate Route 91, Interstate Route 95 83 and portions of Connecticut Route 15 in accordance with such 84 proposal. The department may enter into an agreement with a toll 85 operator to 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 states, jurisdictions and operators of toll facilities in other states to 111 obtain and share any toll operator information regarding an out-of-112 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 5 of 21 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 maintained pursuant to article thirty-second of 138 the amendments to the Constitution of the state, and shall not be 139 commingled with other funds and revenues. Such revenues shall be 140 expended only for the purposes and subject to the provisions of 23 141 USC 129(a)(3), as amended from time to time. 142 (e) Tolls shall not be subject to and shall be exempt from taxation of 143 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 6 of 21 every kind by the state and by the municipalities and all other political 144 subdivisions or special districts having taxing powers in the state. 145 Sec. 5. (NEW) (Effective from passage) Any electronic tolling system 146 operated by the department or a toll operator shall be interoperable 147 with all other electronic tolling systems in this state and shall comply 148 with all state and federal interoperability requirements and standards. 149 Such tolling system interoperability shall extend to system technology 150 and the transfer of funds. The Commissioners of Transportation and 151 Motor Vehicles, in consultation with the Commissioner of 152 Administrative Services, shall ensure the coordination and 153 compatibility of information system technology and data of any 154 electronic tolling system. The provisions of chapters 58 and 61 of the 155 general statutes shall not apply to this section. 156 Sec. 6. (NEW) (Effective from passage) (a) Except as provided in 157 subsection (b) of this section, neither the department nor any toll 158 operator shall sell or use any toll customer information or other data 159 for commercial purposes unrelated to the charging, collection and 160 enforcement of tolls, administrative fees and penalties. 161 (b) The department may release toll customer information and other 162 data that does not directly or indirectly identify a toll customer for 163 research purposes authorized by the department. 164 (c) (1) Except as required by applicable law or in connection with an 165 administrative or court proceeding, all information that specifically 166 identifies a toll customer and relates to a specific tolling transaction 167 shall be destroyed not later than one year after the later of the tolling 168 transaction or the collection of the toll, whether through normal 169 processes or enforcement. 170 (2) Except as required by applicable law or in connection with an 171 administrative or court proceeding, all information relating to a toll 172 customer account that specifically identifies a toll customer shall be 173 destroyed not later than one year after the collection of all tolls and 174 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 7 of 21 fees incurred by such toll customer, whether through normal 175 processes, enforcement or closing of such account. 176 (d) Toll customer information and data shall not be deemed a public 177 record, as defined in section 1-200 of the general statutes. 178 (e) Toll operators shall be subject to the provisions of chapter 62a of 179 the general statutes. 180 Sec. 7. (NEW) (Effective from passage) (a) Any person who contests 181 the amount of a toll or an associated charge shall be afforded an 182 opportunity for a hearing with the department in accordance with the 183 provisions of chapter 54 of the general statutes. 184 (b) The department, after notice and hearing, may impose a civil 185 penalty of not more than twenty-five dollars for a first violation, not 186 more than fifty dollars for a second violation and not more than one 187 hundred dollars for a third or subsequent violation of a provision of 188 the regulations adopted pursuant to section 8 of this act on any of the 189 following persons with respect to toll nonpayment, toll evasion or 190 related fees: (1) The operator of a motor vehicle on a tolled highway; 191 (2) the registered owner of a motor vehicle operated on a tolled 192 highway, if other than the operator, if such vehicle was used or 193 operated with the express or implied permission of the registered 194 owner at the time of the tolling transaction; (3) the lessee of a motor 195 vehicle operated on a tolled highway, if other than the operator, if such 196 vehicle was used or operated with the express or implied permission 197 of the lessee at the time of the tolling transaction; and (4) the lessor of a 198 motor vehicle operated on a tolled highway. 199 (c) A copy of the motor vehicle rental agreement, lease, other 200 contract document or affidavit identifying the lessee of the motor 201 vehicle at the time of the tolling transaction shall be prima facie 202 evidence that the person named in the rental agreement, lease, other 203 contract document or affidavit was operating the motor vehicle at all 204 relevant times relating to the tolling transaction. A lessor shall 205 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 8 of 21 cooperate with the department or the toll operator, as the case may be, 206 in providing the department or toll operator any requested 207 information concerning the lessee contained in the lessor's record. 208 (d) The Department of Motor Vehicles shall provide the Department 209 of Transportation and any toll operator with the information necessary 210 to collect tolls and enforce penalties for toll nonpayment, toll evasion 211 or other toll-related violations, including, but not limited to, 212 information regarding the registered owner of a motor vehicle that was 213 operated on a tolled highway and the make of the motor vehicle, the 214 motor vehicle's number plate and the name and address of the 215 registered owner of the motor vehicle. 216 Sec. 8. (NEW) (Effective from passage) (a) The Commissioner of 217 Transportation shall adopt regulations, in accordance with the 218 provisions of chapter 54 of the general statutes, to implement the 219 provisions of sections 3 to 7, inclusive, of this act. Such regulations 220 may include, but need not be limited to: (1) Provisions to protect and 221 appropriately limit access to toll customer information and other data 222 collected, received, maintained, archived, accessed and disclosed by 223 the department, and (2) the manner in which a transponder or similar 224 device shall be located in or on a motor vehicle entering an electronic 225 tolling system if such system uses a transponder or similar device. 226 (b) The Commissioner of Motor Vehicles, in consultation with the 227 Commissioner of Transportation, shall adopt regulations, in 228 accordance with the provisions of chapter 54 of the general statutes, to 229 implement the provisions of sections 3 to 7, inclusive, of this act. Such 230 regulations shall include restrictions on issuing a registration to the 231 owner of a motor vehicle who owes tolls for transit over or use of a 232 tolled highway or owes administrative charges or penalties for the late 233 payment of tolls or toll evasion. 234 Sec. 9. (NEW) (Effective from passage) (a) (1) When the Treasurer 235 determines the resources of the Special Transportation Fund 236 established under section 13b-69 of the general statutes exceed three 237 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 9 of 21 times the estimated payments of debt service on obligations of the state 238 incurred for transportation purposes, the Treasurer shall provide 239 written notice to the Commissioner of Revenue Services of such 240 determination. 241 (2) Not later than fifteen days after the commencement of any 242 electronic tolling systems on the highways of this state, as defined in 243 section 1 of this act, the Commissioner of Transportation shall provide 244 written notice to the Commissioner of Revenue Services of the date of 245 such commencement. 246 (b) Notwithstanding the provisions of subdivision (2) of subsection 247 (a) of section 12-458 of the general statutes and section 12-458h of the 248 general statutes, on July first after the first full fiscal year that follows 249 the later of the notices required under subdivisions (1) and (2) of 250 subsection (a) of this section, and for each of the following four fiscal 251 years, the amount of the tax imposed by section 12-458 of the general 252 statutes shall be decreased by one cent. The Commissioner of Revenue 253 Services shall calculate the applicable tax rate per gallon of fuel, as 254 defined in section 12-455a of the general statutes, that is sold or used in 255 this state and notify each distributor, the chairpersons and ranking 256 members of the joint standing committee of the General Assembly 257 having cognizance of matters relating to finance, revenue and bonding 258 and the Secretary of the Office of Policy and Management of the 259 applicable tax rate for each such fiscal year. 260 Sec. 10. (NEW) (Effective from passage) (a) There is hereby established 261 and created a body politic and corporate, constituting a public 262 instrumentality and political subdivision of the state established and 263 created for the performance of an essential public and governmental 264 function, to be known as the Connecticut Transportation Finance 265 Authority. The authority shall not be construed to be a department, 266 institution or agency of the state. 267 (b) The powers of the authority shall be vested in and exercised by a 268 board of directors, which shall consist of thirteen members, appointed 269 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 10 of 21 as follows: Three members of the Senate, one appointed by the 270 president pro tempore of the Senate, one appointed by the majority 271 leader of the Senate and one appointed by the minority leader of the 272 Senate; three members of the House of Representatives, one appointed 273 by the speaker of the House of Representatives, one appointed by the 274 majority leader of the House of Representatives, and one appointed by 275 the minority leader of the House of Representatives; the 276 Commissioners of Transportation, Economic and Community 277 Development, Energy and Environmental Protection and Housing, or 278 their designees; the State Treasurer, or the Treasurer's designee; and 279 two members appointed by the Governor who shall serve for a term of 280 four years. Members of the board who are members of the General 281 Assembly shall serve for the terms for which they were elected. The 282 board of directors shall select the chairperson from among the 283 members of the board, who shall serve for a term of two years. The 284 board of directors shall select a vice-chairperson from among its 285 members and such other officers as it deems necessary. 286 (c) Members of the board of directors, unless otherwise provided, 287 may not designate a representative to perform in their absence their 288 respective duties under this section and sections 11 and 12 of this act. 289 Any vacancy occurring other than by expiration of term shall be filled 290 in the same manner as the original appointment for the balance of the 291 unexpired term. The appointing authority for any member may 292 remove such member for inefficiency, wilful neglect of duty, 293 misfeasance or malfeasance. 294 (d) The chairperson shall, with the approval of the members of the 295 board of directors, appoint an executive director of the authority who 296 shall be an employee of the authority and paid a salary prescribed by 297 the members. The executive director shall supervise the administrative 298 affairs and technical activities of the authority in accordance with the 299 directives of the board. 300 (e) Members may engage in private employment, or in a profession 301 or business, subject to any applicable laws, rules and regulations of the 302 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 11 of 21 state regarding official ethics or conflict of interest. 303 (f) Seven members of the board of directors of the authority, 304 provided three such members are members of the General Assembly, 305 shall constitute a quorum for the transaction of any business or the 306 exercise of any power of the authority. For the transaction of any 307 business or the exercise of any power of the authority, and except as 308 otherwise provided in this section and sections 11 and 12 of this act, 309 the authority may act by a majority of the members present at any 310 meeting at which a quorum is in attendance. 311 (g) The authority shall continue as long as it has bonds or other 312 obligations outstanding and until its existence is terminated by law, 313 provided no such termination shall affect any outstanding contractual 314 obligation of the authority and the state shall succeed to the obligations 315 of the authority under any contract. Upon the termination of the 316 existence of the authority, all its rights and properties shall pass to and 317 be vested in the state of Connecticut. 318 (h) It shall not constitute a conflict of interest for a trustee, director, 319 partner or officer of any person, firm or corporation, or any individual 320 having a financial interest in a person, firm or corporation, to serve as a 321 member of the board of directors of the authority, provided such 322 trustee, director, partner, officer or individual shall comply with all 323 applicable provisions of chapter 10 of the general statutes. 324 Sec. 11. (NEW) (Effective from passage) (a) The purposes of the 325 Connecticut Transportation Finance Authority shall be to: 326 (1) Approve the state-wide transportation improvement plan, the 327 five-year transportation capital plan for the state and the long-range 328 transportation plan developed by the Department of Transportation 329 after evaluating whether such plans assure the development and 330 maintenance of an adequate, safe and efficient transportation system 331 that meets the present and future transportation needs of the state and 332 assessing the impact of such plans on economic development, transit-333 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 12 of 21 oriented development, housing development, access to employment, 334 the environment and the specific needs of the geographic areas of the 335 state; 336 (2) Establish a Connecticut Transportation Infrastructure Bank to 337 assist in financing transportation infrastructure projects by providing 338 loans and other financial assistance to public and private entities in 339 order to improve transportation infrastructure in the state, including, 340 but not limited to, the acquisition, removal, construction, equipping, 341 reconstruction, repair, rehabilitation and improvement of, and 342 acquisition of easements and rights-of-ways with respect to, roadways, 343 highways, bridges, commuter and freight railways, transit and 344 intermodal systems, airports and aeronautic facilities, ports, harbors 345 and navigable waterways; and 346 (3) After a tolling proposal to implement electronic tolling systems 347 is approved or deemed approved by the General Assembly pursuant 348 to section 2 of this act, establish and adjust, as necessary, toll rates for 349 transit over or use of the highways, of portions thereof, so as to 350 provide, at a minimum, funding that is sufficient to: (A) Pay costs 351 related to tolled highways in this state, including, but not limited to, 352 the cost of owning, maintaining, repairing, reconstructing, improving, 353 rehabilitating, using, administering, controlling and operating such 354 highways; (B) pay the principal of, redemption premium, if any, and 355 interest on notes or bonds relating to tolled highways, as such 356 principal, premium or interest become due and payable; and (C) create 357 and maintain reserves established for any of the Department of 358 Transportation's highway and bridge responsibilities under titles 13a 359 and 13b of the general statutes for the operation and maintenance of 360 tolled highways. Such sufficiency of funding may take into account the 361 availability of funds from other sources. Prior to fixing or adjusting the 362 amount of tolls for transit over or use of the highways, or portions 363 thereof, the authority shall hold not less than one public hearing. 364 (b) For such purposes, the authority is authorized and empowered 365 to: 366 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 13 of 21 (1) Have perpetual succession as a body politic and corporate and to 367 adopt bylaws for the regulation of its affairs and the conduct of its 368 business; 369 (2) Adopt an official seal and alter the same at pleasure; 370 (3) Maintain an office at such place or places as it may designate; 371 (4) Sue and be sued in its own name, and plead and be impleaded; 372 (5) (A) Employ such assistants, agents and other employees as may 373 be necessary or desirable who shall be employees, as defined in 374 subsection (b) of section 5-270 of the general statutes; (B) establish all 375 necessary or appropriate personnel practices and policies, including 376 those relating to hiring, promotion, compensation, retirement and 377 collective bargaining, which shall be in accordance with chapter 68 of 378 the general statutes, and the authority shall be an employer as defined 379 in subsection (a) of section 5-270 of the general statutes; and (C) engage 380 consultants, attorneys and appraisers as may be necessary or desirable 381 to carry out its purposes in accordance with this section and sections 382 10, 12 and 13 of this act; 383 (6) Issue bonds, bond anticipation notes and other obligations of the 384 authority for any of its corporate purposes, and to fund or refund the 385 same and provide for the rights of the holders thereof, and to secure 386 the same by pledge or revenues, notes and mortgages of others; 387 (7) Receive and accept aid or contributions from any source of 388 money, property, labor or other things of value, to be held, used and 389 applied to carry out the purposes of this section and sections 10, 12 and 390 13 of this act subject to such conditions upon which such grants and 391 contributions may be made, including, but not limited to, gifts or 392 grants from any department, agency or instrumentality of the United 393 States or this state for any purpose consistent with this section and 394 sections 10, 12 and 13 of this act; 395 (8) Borrow money for the purpose of obtaining working capital; 396 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 14 of 21 (9) Make and enter into all contracts and agreements necessary or 397 incidental to the performance of its duties and the execution of its 398 powers under this section and sections 10, 12 and 13 of this act, 399 including contracts and agreements for the establishment of the 400 Connecticut Transportation Infrastructure Bank and for the provision 401 of professional services as the authority deems necessary, including, 402 but not limited to, financial consultants, bond counsel, underwriters 403 and technical specialists; 404 (10) Acquire, lease, purchase, own, manage, hold and dispose of 405 personal property, and lease, convey or deal in or enter into 406 agreements with respect to such property on any terms necessary or 407 incidental to the carrying out of these purposes; 408 (11) Invest in, acquire, lease, purchase, own, manage, hold and 409 dispose of real property and lease, convey or deal in or enter into 410 agreements with respect to such property on any terms necessary or 411 incidental to carrying out the purposes of this section and sections 10, 412 12 and 13 of this act, provided such transactions shall not be subject to 413 approval, review or regulation by any state agency pursuant to title 4b 414 of the general statutes or any other provision of the general statutes; 415 (12) Procure insurance against any liability or loss in connection 416 with its property and other assets, in such amounts and from such 417 insurers as it deems desirable and to procure insurance for employees; 418 (13) Account for and audit funds of the authority and funds of any 419 recipients of funds from the authority; 420 (14) Establish advisory committees to assist in accomplishing its 421 duties under this section and sections 10, 12 and 13 of this act, which 422 may include one or more members of the board of directors and 423 persons other than members; 424 (15) Pursue public-private partnerships for the design, 425 development, operation or maintenance of transportation systems, 426 transit-oriented development and related infrastructure; and 427 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 15 of 21 (16) Do all acts and things necessary or convenient to carry out the 428 purposes of this section and sections 10, 12 and 13 of this act and the 429 powers expressly granted by said sections. 430 Sec. 12. (NEW) (Effective from passage) The members of the board of 431 directors of the Connecticut Transportation Finance Authority shall 432 adopt written procedures, in accordance with the provisions of section 433 1-121 of the general statutes, for: (1) Adopting an annual budget and 434 plan of operations, including a requirement of board approval before 435 the budget or plan may take effect; (2) hiring, dismissing, promoting 436 and compensating employees of the authority, including an 437 affirmative action policy and a requirement of board approval before a 438 position may be created or a vacancy filled; (3) acquiring real and 439 personal property and personal services, including a requirement of 440 board approval for any nonbudgeted expenditure in excess of an 441 amount to be determined by the board; (4) contracting for financial, 442 legal, bond underwriting and other professional services, including a 443 requirement that the authority solicit proposals at least once every 444 three years for each such service that it uses; (5) issuing and retiring 445 bonds, bond anticipation notes and other obligations of the authority; 446 (6) awarding loans, grants and other financial assistance, including 447 eligibility criteria, the application process and the role played by the 448 authority's staff and board of directors; (7) the use of surplus funds to 449 the extent authorized under this section and sections 10 and 11 of this 450 act or other provisions of the general statutes; and (8) with regards to 451 toll rates for transit over or use of the highways, or portions thereof, 452 establishing (A) variable toll rates that take into consideration the day 453 of the week, level of congestion or anticipated congestion, (B) different 454 fees based on the type of vehicle classification, size, weight, number of 455 axles or vehicle occupancy, (C) discounts and credits to a toll customer 456 account for persons with a transponder or similar technology issued 457 by the Department of Transportation or a toll operator, (D) exemptions 458 for certain types of motor vehicles, including, but not limited to, high-459 occupancy vehicles, motor vehicles leased or owned by the state, 460 motor vehicles used by a law enforcement unit, firefighter or a 461 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 16 of 21 member of an emergency medical service organization and motor 462 vehicles used to provide public transit services, (E) surcharges, 463 premiums or additional fees for designated users or classes of users of 464 a tolled highway who travel on such highway without a transponder 465 or similar technology issued by the department or a toll operator, and 466 (F) administrative charges and penalties for the late payment of tolls 467 and toll evasion, which shall be not more than twenty-five dollars for a 468 first violation, not more than fifty dollars for a second violation and 469 not more than one hundred dollars for a third or subsequent violation. 470 Sec. 13. (NEW) (Effective from passage) There is established a 471 Connecticut Transportation Infrastructure Bank Fund, which shall be 472 within the Connecticut Transportation Finance Authority. The fund 473 may receive any amount required by law to be deposited into the fund, 474 including, but not limited to, payments of principal and interest on any 475 loans, investment earnings, proceeds from the issuance of bonds and 476 any federal funds as may become available to the state for 477 transportation infrastructure investments. Any balance remaining in 478 the fund at the end of any fiscal year shall be carried forward for the 479 next fiscal year. The fund shall be used by the Connecticut 480 Transportation Finance Authority for expenditures that promote 481 investment in transportation infrastructure projects. Such expenditures 482 may include, but need not be limited to: (1) Providing low interest 483 loans or other financial assistance for the purpose of financing all or a 484 portion of the costs incurred for the acquisition, removal, construction, 485 equipping, reconstruction, repair, rehabilitation and improvement of a 486 transportation infrastructure project, (2) reimbursement of the 487 operating expenses, including administrative expenses incurred by the 488 authority, and (3) capital costs incurred by the authority in connection 489 with the operation of the fund, other permitted activities of the 490 Connecticut Transportation Infrastructure Bank, grants, direct or 491 equity investments, contracts or other actions that support 492 transportation infrastructure projects in the state. 493 Sec. 14. Subdivision (12) of section 1-79 of the general statutes is 494 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 17 of 21 repealed and the following is substituted in lieu thereof (Effective from 495 passage): 496 (12) "Quasi-public agency" means Connecticut Innovations, 497 Incorporated, the Connecticut Health and Education Facilities 498 Authority, the Connecticut Higher Education Supplemental Loan 499 Authority, the Connecticut Student Loan Foundation, the Connecticut 500 Housing Finance Authority, the State Housing Authority, the Materials 501 Innovation and Recycling Authority, the Capital Region Development 502 Authority, the Connecticut Lottery Corporation, the Connecticut 503 Airport Authority, the Connecticut Health Insurance Exchange, the 504 Connecticut Green Bank, the Connecticut Retirement Security 505 Authority, the Connecticut Port Authority, [and] the State Education 506 Resource Center and the Connecticut Transportation Finance 507 Authority. 508 Sec. 15. Section 1-120 of the general statutes is repealed and the 509 following is substituted in lieu thereof (Effective from passage): 510 As used in sections 1-120 to 1-123, inclusive: 511 (1) "Quasi-public agency" means Connecticut Innovations, 512 Incorporated, the Connecticut Health and Educational Facilities 513 Authority, the Connecticut Higher Education Supplemental Loan 514 Authority, the Connecticut Student Loan Foundation, the Connecticut 515 Housing Finance Authority, the Connecticut Housing Authority, the 516 Materials Innovation and Recycling Authority, the Capital Region 517 Development Authority, the Connecticut Lottery Corporation, the 518 Connecticut Airport Authority, the Connecticut Health Insurance 519 Exchange, the Connecticut Green Bank, the Connecticut Retirement 520 Security Authority, the Connecticut Port Authority, [and] the State 521 Education Resource Center and the Connecticut Transportation 522 Finance Authority. 523 (2) "Procedure" means each statement, by a quasi-public agency, of 524 general applicability, without regard to its designation, that 525 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 18 of 21 implements, interprets or prescribes law or policy, or describes the 526 organization or procedure of any such agency. The term includes the 527 amendment or repeal of a prior regulation, but does not include, 528 unless otherwise provided by any provision of the general statutes, (A) 529 statements concerning only the internal management of any agency 530 and not affecting procedures available to the public, and (B) intra-531 agency memoranda. 532 (3) "Proposed procedure" means a proposal by a quasi-public 533 agency under the provisions of section 1-121 for a new procedure or 534 for a change in, addition to or repeal of an existing procedure. 535 Sec. 16. Section 1-124 of the general statutes is repealed and the 536 following is substituted in lieu thereof (Effective from passage): 537 (a) Connecticut Innovations, Incorporated, the Connecticut Health 538 and Educational Facilities Authority, the Connecticut Higher 539 Education Supplemental Loan Authority, the Connecticut Student 540 Loan Foundation, the Connecticut Housing Finance Authority, the 541 Connecticut Housing Authority, the Materials Innovation and 542 Recycling Authority, the Connecticut Airport Authority, the Capital 543 Region Development Authority, the Connecticut Health Insurance 544 Exchange, the Connecticut Green Bank, the Connecticut Retirement 545 Security Authority, the Connecticut Port Authority, [and] the State 546 Education Resource Center and the Connecticut Transportation 547 Finance Authority shall not borrow any money or issue any bonds or 548 notes which are guaranteed by the state of Connecticut or for which 549 there is a capital reserve fund of any kind which is in any way 550 contributed to or guaranteed by the state of Connecticut until and 551 unless such borrowing or issuance is approved by the State Treasurer 552 or the Deputy State Treasurer appointed pursuant to section 3-12. The 553 approval of the State Treasurer or said deputy shall be based on 554 documentation provided by the authority that it has sufficient 555 revenues to (1) pay the principal of and interest on the bonds and notes 556 issued, (2) establish, increase and maintain any reserves deemed by the 557 authority to be advisable to secure the payment of the principal of and 558 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 19 of 21 interest on such bonds and notes, (3) pay the cost of maintaining, 559 servicing and properly insuring the purpose for which the proceeds of 560 the bonds and notes have been issued, if applicable, and (4) pay such 561 other costs as may be required. 562 (b) To the extent Connecticut Innovations, Incorporated, the 563 Connecticut Higher Education Supplemental Loan Authority, the 564 Connecticut Student Loan Foundation, the Connecticut Housing 565 Finance Authority, the Connecticut Housing Authority, the Materials 566 Innovation and Recycling Authority, the Connecticut Health and 567 Educational Facilities Authority, the Connecticut Airport Authority, 568 the Capital Region Development Authority, the Connecticut Health 569 Insurance Exchange, the Connecticut Green Bank, the Connecticut 570 Retirement Security Authority, the Connecticut Port Authority, [or] the 571 State Education Resource Center or the Connecticut Transportation 572 Finance Authority is permitted by statute and determines to exercise 573 any power to moderate interest rate fluctuations or enter into any 574 investment or program of investment or contract respecting interest 575 rates, currency, cash flow or other similar agreement, including, but 576 not limited to, interest rate or currency swap agreements, the effect of 577 which is to subject a capital reserve fund which is in any way 578 contributed to or guaranteed by the state of Connecticut, to potential 579 liability, such determination shall not be effective until and unless the 580 State Treasurer or his or her deputy appointed pursuant to section 3-12 581 has approved such agreement or agreements. The approval of the State 582 Treasurer or his or her deputy shall be based on documentation 583 provided by the authority that it has sufficient revenues to meet the 584 financial obligations associated with the agreement or agreements. 585 Sec. 17. Section 1-125 of the general statutes is repealed and the 586 following is substituted in lieu thereof (Effective from passage): 587 The directors, officers and employees of Connecticut Innovations, 588 Incorporated, the Connecticut Higher Education Supplemental Loan 589 Authority, the Connecticut Student Loan Foundation, the Connecticut 590 Housing Finance Authority, the Connecticut Housing Authority, the 591 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 20 of 21 Materials Innovation and Recycling Authority, including ad hoc 592 members of the Materials Innovation and Recycling Authority, the 593 Connecticut Health and Educational Facilities Authority, the Capital 594 Region Development Authority, the Connecticut Airport Authority, 595 the Connecticut Lottery Corporation, the Connecticut Health Insurance 596 Exchange, the Connecticut Green Bank, the Connecticut Retirement 597 Security Authority, the Connecticut Port Authority, [and] the State 598 Education Resource Center and the Connecticut Transportation 599 Finance Authority and any person executing the bonds or notes of the 600 agency shall not be liable personally on such bonds or notes or be 601 subject to any personal liability or accountability by reason of the 602 issuance thereof, nor shall any director or employee of the agency, 603 including ad hoc members of the Materials Innovation and Recycling 604 Authority, be personally liable for damage or injury, not wanton, 605 reckless, wilful or malicious, caused in the performance of his or her 606 duties and within the scope of his or her employment or appointment 607 as such director, officer or employee, including ad hoc members of the 608 Materials Innovation and Recycling Authority. The agency shall 609 protect, save harmless and indemnify its directors, officers or 610 employees, including ad hoc members of the Materials Innovation and 611 Recycling Authority, from financial loss and expense, including legal 612 fees and costs, if any, arising out of any claim, demand, suit or 613 judgment by reason of alleged negligence or alleged deprivation of any 614 person's civil rights or any other act or omission resulting in damage 615 or injury, if the director, officer or employee, including ad hoc 616 members of the Materials Innovation and Recycling Authority, is 617 found to have been acting in the discharge of his or her duties or 618 within the scope of his or her employment and such act or omission is 619 found not to have been wanton, reckless, wilful or malicious. 620 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 Substitute Bill No. 7280 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07280- R01-HB.docx } 21 of 21 Sec. 4 from passage New section Sec. 5 from passage New section Sec. 6 from passage New section 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 Legislative Commissioners: In Section 2(a)(1)(C)(i) and Section 3(a), "Route" was inserted after "Interstate" for accuracy, and in Section 4(d), "section 19 of article third of" was changed to "maintained pursuant to article thirty-second of the amendments to" for accuracy. TRA Joint Favorable Subst. -LCO