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General Assembly Raised Bill No. 7348
January Session, 2019
LCO No. 5460
Referred to Committee on ENVIRONMENT
Introduced by:
(ENV)
AN ACT CONCERNING BONDI NG AUTHORIZATIONS FO R CLEAN
WATER FUND PROJECTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 22a-483 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
(a) For the purposes of sections 22a-475 to 22a-483, inclusive, the 3
State Bond Commission shall have the power, from time to time to 4
authorize the issuance of bonds of the state in one or more series and 5
in principal amounts, not exceeding in the aggregate one billion [seven 6
hundred fifteen] eight hundred ninety-five million one hundred 7
twenty-five thousand nine hundred seventy-six dollars, provided 8
[eighty-five] ninety million dollars of said authorization shall be 9
effective July 1, [2018] 2020. 10
(b) The proceeds of the sale of any bonds, state bond anticipation 11
notes or state grant anticipation notes issued pursuant to sections 22a-12
475 to 22a-483, inclusive, shall be deposited in the Clean Water Fund 13
and not less than [fifty] one hundred million dollars of such proceeds 14
shall be deposited in the Long Island Sound clean-up account of said 15 Raised Bill No. 7348
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fund, not less than five million dollars of such proceeds shall be made 16
available for physical improvements to coves, embayments, coastal 17
wetlands and salt marshes in physical proximity to Long Island Sound 18
and not less than twenty million dollars of such proceeds shall be 19
made available for the Commissioner of Energy and Environmental 20
Protection to provide grants on a competitive basis for demonstration 21
projects to reduce nonpoint source pollution of Long Island Sound, 22
following establishment by the commissioner of criteria for the 23
awarding of such grants. 24
(c) All provisions of section 3-20, or the exercise of any right or 25
power granted thereby which are not inconsistent with the provisions 26
of sections 22a-475 to 22a-483, inclusive, are hereby adopted and shall 27
apply to all bonds authorized by the State Bond Commission pursuant 28
to said sections, and temporary notes in anticipation of the money to 29
be derived from the sale of any such bonds so authorized may be 30
issued in accordance with said section 3-20 and from time to time 31
renewed. None of said bonds shall be authorized except upon a 32
finding by the State Bond Commission that there has been filed with it 33
a request for such authorization, which is signed by or on behalf of the 34
Secretary of the Office of Policy and Management and states such 35
terms and conditions as said commission, in its discretion, may 36
require. Said bonds issued pursuant to sections 22a-475 to 22a-483, 37
inclusive, may be general obligations of the state and in such case the 38
full faith and credit of the state of Connecticut are pledged for the 39
payment of the principal of and interest on said bonds as the same 40
become due, and accordingly and as part of the contract of the state 41
with the holders of said bonds, appropriation of all amounts necessary 42
for punctual payment of such principal and interest is hereby made, 43
and the Treasurer shall pay such principal and interest as the same 44
become due. Such general obligation bonds shall mature at such time 45
or times not exceeding twenty years from their respective dates as may 46
be provided in or pursuant to the resolution or resolutions of the State 47
Bond Commission authorizing such general obligation bonds. The 48
state, acting by and through the State Bond Commission, is hereby 49 Raised Bill No. 7348
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authorized to issue from time to time general obligation bonds in such 50
sums as is appropriate and necessary to meet the state's matching 51
requirement for eligibility pursuant to the federal Water Quality Act of 52
1987 or the federal Safe Drinking Water Act or other similar federal act, 53
provided such sums shall not exceed the aggregate principal amounts 54
of bonds authorized pursuant to subsection (a) of this section. 55
Whenever such bonds are so authorized, the state's obligations shall be 56
issued on such terms and conditions as shall be determined and 57
established by the Treasurer. Such bonds shall bear such rate of 58
interest as the treasurer shall determine, by reference to such open 59
market indices for obligations having similar terms and characteristics 60
as the Treasurer shall determine relevant, in order to arrive at a taxable 61
rate of interest on the obligations of the state issued and sold to the 62
Clean Water Fund. The Treasurer shall deliver such bonds to the Clean 63
Water Fund upon the receipt of evidence from the Environmental 64
Protection Agency evidencing satisfaction by the state of its federal 65
matching requirement pursuant to the federal Water Quality Act of 66
1987 or the federal Safe Drinking Water Act or other similar federal act. 67
(d) Notwithstanding the foregoing, nothing herein shall preclude 68
the State Bond Commission from authorizing the issuance of revenue 69
bonds, in principal amounts not exceeding in the aggregate [three] 70
four billion [eight] two hundred eighty-four million eighty thousand 71
dollars, provided three hundred fifty million three hundred thousand 72
dollars of said authorization shall be effective July 1, [2018] 2020, that 73
are not general obligations of the state of Connecticut to which the full 74
faith and credit of the state of Connecticut are pledged for the payment 75
of the principal and interest. Such revenue bonds shall mature at such 76
time or times not exceeding thirty years from their respective dates as 77
may be provided in or pursuant to the resolution or resolutions of the 78
State Bond Commission authorizing such revenue bonds. The revenue 79
bonds, revenue state bond anticipation notes and revenue state grant 80
anticipation notes authorized to be issued under sections 22a-475 to 81
22a-483, inclusive, shall be special obligations of the state and shall not 82
be payable from nor charged upon any funds other than the revenues 83 Raised Bill No. 7348
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or other receipts, funds or moneys pledged therefor as provided in 84
said sections 22a-475 to 22a-483, inclusive, including the repayment of 85
municipal loan obligations; nor shall the state or any political 86
subdivision thereof be subject to any liability thereon except to the 87
extent of such pledged revenues or the receipts, funds or moneys 88
pledged therefor as provided in said sections 22a-475 to 22a-483, 89
inclusive. The issuance of revenue bonds, revenue state bond 90
anticipation notes and revenue state grant anticipation notes under the 91
provisions of said sections 22a-475 to 22a-483, inclusive, shall not 92
directly or indirectly or contingently obligate the state or any political 93
subdivision thereof to levy or to pledge any form of taxation whatever 94
therefor or to make any appropriation for their payment. The revenue 95
bonds, revenue state bond anticipation notes and revenue state grant 96
anticipation notes shall not constitute a charge, lien or encumbrance, 97
legal or equitable, upon any property of the state or of any political 98
subdivision thereof, except the property mortgaged or otherwise 99
encumbered under the provisions and for the purposes of said sections 100
22a-475 to 22a-483, inclusive. The substance of such limitation shall be 101
plainly stated on the face of each revenue bond, revenue state bond 102
anticipation note and revenue state grant anticipation note issued 103
pursuant to said sections 22a-475 to 22a-483, inclusive, shall not be 104
subject to any statutory limitation on the indebtedness of the state and 105
such revenue bonds, revenue state bond anticipation notes and 106
revenue state grant anticipation notes, when issued, shall not be 107
included in computing the aggregate indebtedness of the state in 108
respect to and to the extent of any such limitation. As part of the 109
contract of the state with the owners of such revenue bonds, revenue 110
state bond anticipation notes and revenue state grant anticipation 111
notes, all amounts necessary for the punctual payment of the debt 112
service requirements with respect to such revenue bonds, revenue 113
state bond anticipation notes and revenue state grant anticipation 114
notes shall be deemed appropriated, but only from the sources 115
pledged pursuant to said sections 22a-475 to 22a-483, inclusive. The 116
proceeds of such revenue bonds or notes may be deposited in the 117
Clean Water Fund for use in accordance with the permitted uses of 118 Raised Bill No. 7348
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such fund. Any expense incurred in connection with the carrying out 119
of the provisions of this section, including the costs of issuance of 120
revenue bonds, revenue state bond anticipation notes and revenue 121
state grant anticipation notes may be paid from the accrued interest 122
and premiums or from any other proceeds of the sale of such revenue 123
bonds, revenue state bond anticipation notes or revenue state grant 124
anticipation notes and in the same manner as other obligations of the 125
state. All provisions of subsections (g), (k), (l), (s) and (u) of section 126
3-20 or the exercise of any right or power granted thereby which are 127
not inconsistent with the provisions of said sections 22a-475 to 22a-483, 128
inclusive, are hereby adopted and shall apply to all revenue bonds, 129
state revenue bond anticipation notes and state revenue grant 130
anticipation notes authorized by the State Bond Commission pursuant 131
to said sections 22a-475 to 22a-483, inclusive. For the purposes of 132
subsection (o) of section 3-20, "bond act" shall be construed to include 133
said sections 22a-475 to 22a-483, inclusive. 134
(e) Any pledge made by the state pursuant to sections 22a-475 to 135
22a-483, inclusive, is a statutory pledge and shall be valid and binding 136
from the time when the pledge is made, and any revenues or other 137
receipts, funds or moneys so pledged and thereafter received by the 138
state shall be subject immediately to the lien of such pledge without 139
any physical delivery thereof or further act. The lien of any such 140
pledge shall be valid and binding as against all parties having claims 141
of any kind in tort, contract or otherwise against the state, irrespective 142
of whether such parties have notice thereof. Neither the resolution nor 143
any other instrument by which a pledge is created need be recorded. 144
Any pledge made by the state pursuant to sections 22a-475 to 22a-483, 145
inclusive, to secure revenue bonds issued to finance eligible water 146
quality projects shall secure only revenue bonds issued for such 147
purpose and any such pledge made by the state to secure revenue 148
bonds issued to finance eligible drinking water projects shall secure 149
only revenue bonds issued for such purpose. 150
(f) Whenever the General Assembly has authorized the State Bond 151 Raised Bill No. 7348
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Commission to authorize bonds of the state for clean water projects 152
and uses and has found that such projects and uses are for any of the 153
purposes set forth in sections 22a-475 to 22a-483, inclusive, and 154
whenever the State Bond Commission finds that the authorization of 155
such bonds will be in the best interests of the state, the State Bond 156
Commission shall authorize the issuance of such bonds from time to 157
time in one or more series and in principal amounts not exceeding the 158
aggregate amount authorized by the General Assembly. 159
(g) Whenever the state has a written commitment to receive a grant-160
in-aid or similar form of assistance with respect to a project or program 161
for which the issuance of bonds has been authorized pursuant to 162
sections 22a-475 to 22a-483, inclusive, the Treasurer may issue state 163
grant anticipation notes in anticipation of the issuance of such a grant-164
in-aid or other assistance provided (1) the total amount of such notes 165
shall not exceed the amount of the grant commitment which has not 166
been paid to the state and (2) all grant payments with respect to such 167
project or program received by the state, to the extent required, shall 168
be applied promptly toward repayment of such temporary notes as the 169
same shall become due and payable, or shall be deposited in trust for 170
such purpose. Notes evidencing such borrowings shall be signed by 171
the manual or facsimile signature of the Treasurer or his deputy. The 172
principal of and interest on any state grant anticipation notes issued 173
pursuant to this subsection may be repaid from the proceeds of 174
renewals thereof, from grants-in-aid or other assistance pledged for the 175
payment thereof, or from the proceeds of a credit facility including, but 176
not limited to, a letter of credit or policy of bond insurance. 177
(h) Bonds, state bond anticipation notes and state grant anticipation 178
notes issued pursuant to sections 22a-475 to 22a-483, inclusive, are 179
hereby made securities in which public officers and public bodies of 180
the state and its political subdivisions, all insurance companies, credit 181
unions, building and loan associations, investment companies, 182
banking associations, trust companies, executors, administrators, 183
trustees and other fiduciaries and pension, profit-sharing and 184 Raised Bill No. 7348
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retirement funds may properly and legally invest funds, including 185
capital in their control or belonging to them. Such bonds, state bond 186
anticipation notes and state grant anticipation notes are hereby made 187
securities which may properly and legally be deposited with and 188
received by any state or municipal officer or any agency or political 189
subdivision of the state for any purpose for which the deposit of 190
bonds, state bond anticipation notes, state grant anticipation notes or 191
other obligations of the state is now or may hereafter be authorized by 192
law. 193
(i) The proceedings under which bonds are authorized to be issued 194
may, subject to the provisions of the general statutes, contain any or all 195
of the following: (1) Provisions respecting custody of the proceeds 196
from the sale of the bonds and any bond anticipation notes, including 197
any requirements that such proceeds be held separate from or not be 198
commingled with other funds of the state; (2) provisions for the 199
investment and reinvestment of bond proceeds utilized to pay project 200
costs and for the disposition of any excess bond proceeds or 201
investment earnings thereon; (3) provisions for the execution of 202
reimbursement agreements or similar agreements in connection with 203
credit facilities, including, but not limited to, letters of credit or policies 204
of bond insurance, remarketing agreements and agreements for the 205
purpose of moderating interest rate fluctuations, and of such other 206
agreements entered into pursuant to section 3-20a; (4) provisions for 207
the collection, custody, investment, reinvestment and use of the 208
pledged revenues or other receipts, funds or moneys pledged therefor 209
as provided in sections 22a-475 to 22a-483, inclusive; (5) provisions 210
regarding the establishment and maintenance of reserves, sinking 211
funds and any other funds and accounts as shall be approved by the 212
State Bond Commission in such amounts as may be established by the 213
State Bond Commission, and the regulation and disposition thereof, or 214
the establishment of a reserve fund of the state into which may be 215
deposited any moneys appropriated and made available by the state 216
for such fund, any proceeds of the sale of bonds or notes, to the extent 217
provided in the resolution of the state authorizing the issuance thereof, 218 Raised Bill No. 7348
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and any other moneys which may be made available to the state for 219
the purpose of such fund from any source whatever and, in lieu of the 220
deposit of any such moneys, evidence by the state of the satisfaction of 221
a federal matching requirement on the part of the state pursuant to the 222
federal Water Quality Act of 1987 or the federal Safe Drinking Water 223
Act or other related federal act, as applicable, including requirements 224
that any such funds and accounts be held separate from or not be 225
commingled with other funds of the state; (6) covenants for the 226
establishment of pledged revenue coverage requirements for the bonds 227
and state bond anticipation notes; (7) provisions for the issuance of 228
additional bonds on a parity with bonds theretofore issued, including 229
establishment of coverage requirements with respect thereto as herein 230
provided; (8) provisions regarding the rights and remedies available in 231
case of a default to bondowners, noteowners or any trustee under any 232
contract, loan agreement, document, instrument or trust indenture, 233
including the right to appoint a trustee to represent their interests 234
upon occurrence of an event of default, as defined in said proceedings, 235
provided that if any bonds or state bond anticipation notes shall be 236
secured by a trust indenture, the respective owners of such bonds or 237
notes shall have no authority except as set forth in such trust indenture 238
to appoint a separate trustee to represent them; (9) provisions for the 239
payment of rebate amounts; and (10) provisions or covenants of like or 240
different character from the foregoing which are consistent with 241
sections 22a-475 to 22a-483, inclusive, and which the State Bond 242
Commission determines in such proceedings are necessary, convenient 243
or desirable in order to better secure the bonds or state bond 244
anticipation notes, or will tend to make the bonds or state bond 245
anticipation notes more marketable, and which are in the best interests 246
of the state. Any provision which may be included in proceedings 247
authorizing the issuance of bonds hereunder may be included in an 248
indenture of trust duly approved in accordance with sections 22a-475 249
to 22a-483, inclusive, which secures the bonds and any notes issued in 250
anticipation thereof, and in such case the provisions of such indenture 251
shall be deemed to be a part of such proceedings as though they were 252
expressly included therein. 253 Raised Bill No. 7348
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(j) Whether or not any bonds, state bond anticipation notes or state 254
grant anticipation notes issued pursuant to sections 22a-475 to 22a-483, 255
inclusive, are of such form and character as to be negotiable 256
instruments under the terms of title 42a, such bonds, state bond 257
anticipation notes and state grant anticipation notes are hereby made 258
negotiable instruments within the meaning of and for all purposes of 259
title 42a, subject only to the provisions of such bonds, state bond 260
anticipation notes and state grant anticipation notes for registration. 261
(k) The state covenants with the purchasers and all subsequent 262
owners and transferees of bonds, state bond anticipation notes and 263
state grant anticipation notes issued by the state pursuant to sections 264
22a-475 to 22a-483, inclusive, in consideration of the acceptance of and 265
payment for the bonds, state bond anticipation notes and state grant 266
anticipation notes, that such bonds, state bond anticipation notes and 267
state grant anticipation notes shall be free at all times from taxes levied 268
by any municipality or political subdivision or special district having 269
taxing powers of the state and the principal and interest of any bonds, 270
state bond anticipation notes and grant anticipation notes issued under 271
the provisions of sections 22a-475 to 22a-483, inclusive, their transfer 272
and the income therefrom, including revenues derived from the sale 273
thereof, shall at all times be free from taxation of every kind by the 274
state of Connecticut or under its authority, except for estate or 275
succession taxes. The Treasurer is authorized to include this covenant 276
of the state in any agreement with the owner of any such bonds, state 277
bond anticipation notes or state grant anticipation notes. 278
(l) Pending the use and application of any bond proceeds, such 279
proceeds may be invested by, or at the direction of the State Treasurer, 280
in obligations listed in section 3-20 or in investment agreements rated 281
within the top rating categories of any nationally recognized rating 282
service or in investment agreements secured by obligations, of or 283
guaranteed by, the United States or agencies or instrumentalities of the 284
United States. 285
(m) Any revenue bonds issued under the provisions of sections 22a-286 Raised Bill No. 7348
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475 to 22a-483, inclusive, and at any time outstanding may, at any time 287
and from time to time, be refunded by the state by the issuance of its 288
revenue refunding bonds in such amounts as the State Bond 289
Commission may deem necessary, but not to exceed an amount 290
sufficient to refund the principal of the revenue bonds to be so 291
refunded, to pay any unpaid interest thereon and any premiums and 292
commissions necessary to be paid in connection therewith and to pay 293
costs and expenses which the Treasurer may deem necessary or 294
advantageous in connection with the authorization, sale and issuance 295
of refunding bonds. Any such refunding may be effected whether the 296
revenue bonds to be refunded shall have matured or shall thereafter 297
mature. All revenue refunding bonds issued hereunder shall be 298
payable solely from the revenues or other receipts, funds or moneys 299
out of which the revenue bonds to be refunded thereby are payable 300
and shall be subject to and may be secured in accordance with the 301
provisions of this section. 302
(n) The Treasurer shall have power, out of any funds available 303
therefor, to purchase revenue bonds, state revenue bond anticipation 304
notes and state revenue grant anticipation notes of the state issued 305
pursuant to sections 22a-475 to 22a-483, inclusive. The Treasurer may 306
hold, pledge, cancel or resell such bonds or notes, subject to and in 307
accordance with agreements with bondholders or noteholders, as 308
applicable. 309
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 22a-483
ENV Joint Favorable