LCO No. 3009 1 of 14 General Assembly Raised Bill No. 474 February Session, 2020 LCO No. 3009 Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS Introduced by: (GAE) AN ACT CONCERNING TH E ORGANIZATION AND O PERATIONS OF THE METROPOLITAN DIS TRICT OF HARTFORD COUNTY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 19 of number 511 of the special acts of 1929 is 1 amended to read as follows (Effective July 1, 2020): 2 No bonds, notes or other certificates of debt, except such as are to 3 mature in six months or less and to be paid from current taxes shall be 4 issued under authority of [this act] number 511 of the special acts of 1929 5 if such issue shall bring the total outstanding indebtedness of the district 6 to an amount in excess of five per centum of the combined grand lists of 7 said district unless otherwise provided by special act. The grand lists for 8 the purpose of this section shall be deemed to include the assessed value 9 of all shares of capital stock the taxes on which are required by section 10 1205 of the general statutes, revision of 1918, as amended to be remitted 11 annually to the towns and cities composing the district by the state. In 12 computing the total outstanding indebtedness of the district for the 13 purposes of this section, there shall be deducted the amount of the 14 Raised Bill No. 474 LCO No. 3009 2 of 14 district's sinking fund, the amount of bonds issued for the supply of 15 water or for the construction of subways or underground conduits for 16 cables, wires or pipes, the principal amount of all such bonds having 17 been refunded or replaced by other indebtedness the proceeds and 18 projected earnings on which or other funds are held in escrow to pay 19 and are sufficient to pay the principal, interest and any redemption 20 premium until maturity or earlier planned redemption of such 21 indebtedness and the amount of such other bonds of the district as may 22 be issued under any act of the legislature, especially providing that the 23 bonds issued [thereunder] under any such act shall be deducted in 24 computing the total outstanding indebtedness of the district. 25 Sec. 2. Section 8 of number 511 of the special acts of 1929, as amended 26 by section 3 of special act 83-31, section 1 of special act 99-12 and section 27 3 of special act 14-21, is amended to read as follows (Effective July 1, 28 2020): 29 Said board, either directly or under committees consisting of one or 30 more members of said board, shall organize bureaus for the convenient 31 carrying into effect of the several functions herein committed to said 32 board and may define the powers and duties of such bureaus and 33 delegate to them such powers and duties by ordinance, by-law or 34 otherwise as may, in the judgment of the board, be necessary for the 35 convenient operation of the same. No member of the board shall receive 36 any pay for his or her services as such member or as a member of a sub-37 committee of the board except that a reasonable sum may annually be 38 appropriated for the actual expenses of said board. The board may, by 39 ordinance, by-law or otherwise, fix the salaries and define the duties of 40 all officers and employees or may delegate the fixing of salaries of 41 employees and assignment of duties of employees to sub-committees or 42 bureau managers. The chairman and vice-chairman of said district and 43 of all sub-committees, bureaus, boards and commissions appointed by 44 the district board shall, unless otherwise provided in the appointment 45 or [herein] in this section, hold office until the end of the fiscal year of 46 their appointment and thereafter shall be appointed for terms of two 47 years and until their successors shall be appointed and shall have 48 Raised Bill No. 474 LCO No. 3009 3 of 14 qualified. The members of all sub-committees, bureaus, boards and 49 commissions appointed by the district board shall, unless otherwise 50 provided in the appointment or [herein] in this section, hold such 51 membership until the end of the fiscal year of their appointment and 52 thereafter shall hold membership for terms of two years and until their 53 successors shall be appointed and shall have qualified. The managers of 54 the water bureau and of the bureau of public works and such others of 55 the officers as by the district board shall be especially so designated shall 56 hold office during good behavior and shall be removed only for cause. 57 All other officers and employees may be removed at any time by the 58 district board at pleasure. All vacancies may be filled by the district 59 board. Said district board [shall have power to] may fill any vacancy 60 occurring in its number for the unexpired portion of the term and, 61 except as otherwise expressly provided, shall act in all cases by a 62 majority of those present at any regular or special meeting, duly 63 warned. A majority of the board shall constitute a quorum and the time, 64 place and manner of calling meetings and the holding thereof, including 65 the manner of dissolving tie votes, shall be prescribed by said board by 66 by-law or otherwise. The district board shall be the final judge of the 67 election returns and validity of elections and qualifications of its 68 members and shall decide all tie votes in elections. Except as hereinafter 69 provided, the district board shall have power to authorize the sale, 70 transfer and conveyance of real and personal estate belonging to the 71 district, and shall provide by by-law or otherwise for the form and 72 manner of execution of the documents and instruments convenient 73 therefor. The Auditors of Public Accounts, established under chapter 23 74 of the general statutes, shall audit the district accounts annually in 75 accordance with the provisions of said chapter. The district board [shall 76 make provision for the proper auditing of the district accounts and] may 77 cause any officer to execute bonds to the district with surety to the 78 acceptance of the district board for the faithful performance of 79 duties. The district board shall post the current budget of the district in 80 a conspicuous location on the district's Internet web site. 81 Sec. 3. Section 8 of special act 14-21 is amended to read as follows 82 Raised Bill No. 474 LCO No. 3009 4 of 14 (Effective July 1, 2020): 83 The [Metropolitan District Commission] Auditors of Public Accounts 84 shall, annually, submit a copy of the audit prepared pursuant to 85 [chapter 111 of the general statutes] section 8 of number 511 of the 86 special acts of 1929, as amended by section 3 of special act 83-31, section 87 1 of special act 99-1, section 3 of special act 14-21 and this act, to the 88 Office of Fiscal Analysis. 89 Sec. 4. Subsection (a) of section 4 of special act 90-27, as amended by 90 section 6 of public act 93-380 and section 9 of special act 14-21, is 91 amended to read as follows (Effective July 1, 2020): 92 (a) The Metropolitan District in Hartford County created pursuant to 93 number 511 of the special acts of 1929, as amended, may issue bonds or 94 other obligations, or may enter into leases of real or personal property 95 or any interest [therein] in such property, from time to time for the 96 purpose of paying all or any part of the cost of designing, acquiring, 97 purchasing, constructing, reconstructing, improving, extending, 98 financing, refinancing, operating or managing any facility, system, 99 program or equipment necessary or desirable in connection with 100 carrying out any of its authorized purposes, including payment of 101 expenses of administration properly chargeable thereto, including, 102 without limitation, legal, architectural and engineering expenses and 103 fees, [and costs of audits,] and payment of costs, fees and expenses 104 which the district board may deem necessary or advantageous in 105 connection with the authorization, sale and issuance of bonds or notes 106 or other obligations, including but not limited to, underwriters' discount 107 and payment of all other items of expense incurred in connection 108 therewith. The district may issue such types of bonds or other 109 obligations as the district board by resolution approved by a majority of 110 its members may determine, including, without limiting the generality 111 of the foregoing, bonds or other obligations payable as to principal and 112 interest exclusively from the income and revenues of a particular 113 facility, system or program. Bonds or other obligations payable as to 114 principal and interest exclusively from the income and revenues of a 115 Raised Bill No. 474 LCO No. 3009 5 of 14 particular facility, system or program shall not constitute an 116 indebtedness within the meaning of any statutory limitation on the 117 indebtedness of the district or any member municipality. 118 Notwithstanding the provisions of sections 23, 24, 25, 26 and 51 of 119 number 511 of the special acts of 1929, as amended, any surplus moneys 120 not needed in the determination of the district board to meet the 121 purposes of funds established pursuant to said sections and any surplus 122 revenues in the assessable sewer fund may be pledged as additional 123 security for any such bonds or the provider of any credit enhancement 124 for any such bonds, which also may be secured by a pledge of any 125 income or revenues of the district, or a mortgage on any facility or 126 system or the site thereof. Whenever and for so long as the district has 127 issued and has outstanding bonds pursuant to this section, the district 128 board shall fix, charge and collect rates, rents, fees and other charges in 129 accordance herewith. Neither the members of the district nor any person 130 executing the bonds shall be liable personally on the bonds by reason of 131 the issuance thereof. The bonds and other obligations of the district, and 132 such bonds and obligations shall so state on their face, shall not be a debt 133 of the state or any political subdivision thereof, and no person other than 134 the district shall be liable thereon, nor shall such bonds or obligations be 135 payable out of any funds or properties other than those of the district. 136 Bonds of the district issued under the provisions of sections 2 and 13 of 137 number 511 of the special acts of 1929, as amended, and sections 2 and 138 4 of special act 90-27, as amended by public act 93-380 and this act, are 139 declared to be issued for an essential public and governmental purpose. 140 In anticipation of the sale of such bonds the district may issue negotiable 141 bond anticipation notes and may renew the same from time to time, but 142 the maximum maturity of any such note including renewals thereof, 143 shall not exceed five years from the date of issue of the original note. 144 Such notes shall be paid from any revenues of the district available 145 therefor and not otherwise pledged, or from the proceeds of sale of the 146 bonds of the district in anticipation of which they were issued. Such 147 notes and the resolution or resolutions authorizing the same may 148 contain any provisions, conditions or limitations which a bond 149 resolution of the district may contain. 150 Raised Bill No. 474 LCO No. 3009 6 of 14 Sec. 5. Subsection (c) of section 2-90 of the general statutes is repealed 151 and the following is substituted in lieu thereof (Effective July 1, 2020): 152 (c) Said auditors shall audit, on a biennial basis if deemed most 153 economical and efficient, or as frequently as they deem necessary, the 154 books and accounts of each officer, department, commission, board and 155 court of the state government, all institutions supported by the state and 156 all public and quasi-public bodies, politic and corporate, created by 157 public or special act of the General Assembly and not required to be 158 audited or subject to reporting requirements, under the provisions of 159 chapter 111, except that said auditors shall audit, on an annual basis, or 160 as frequently as they deem necessary, the books and accounts of the 161 Metropolitan District of Hartford County. Each such audit may include 162 an examination of performance in order to determine effectiveness in 163 achieving expressed legislative purposes. The auditors shall report their 164 findings and recommendations to the Governor, the State Comptroller 165 and the joint standing committee of the General Assembly having 166 cognizance of matters relating to appropriations and the budgets of state 167 agencies. 168 Sec. 6. Section 7-391 of the general statutes is repealed and the 169 following is substituted in lieu thereof (Effective July 1, 2020): 170 When used in this chapter, unless the context otherwise requires, the 171 following terms shall have the meanings herein specified: "Secretary" 172 means the Secretary of the Office of Policy and Management; 173 "municipality" includes each town, consolidated town and city, 174 consolidated town and borough, city and borough; "audited agency" 175 includes each district, as defined in section 7-324, or other municipal 176 utility, [the Metropolitan District of Hartford County,] each regional 177 council of governments, any other political subdivision of similar 178 character which is created and any other agency created or designated 179 by a municipality to act for such municipality whose annual receipts 180 from all sources exceed one million dollars, excluding the Metropolitan 181 District of Hartford County; "reporting agency" includes each district, 182 as defined in section 7-324, or other municipal utility, each regional 183 Raised Bill No. 474 LCO No. 3009 7 of 14 council of governments, any other political subdivision of similar 184 character which is created and any other agency created or designated 185 by a municipality to act for such municipality whose annual receipts 186 from all sources do not exceed one million dollars; "appointing 187 authority" means the legislative body of a municipality or the board, 188 committee or other governing body of such audited agency, except in 189 any town where the authority to adopt a budget rests with a town 190 meeting or a representative town meeting "appointing authority" means 191 the board of finance or other board, committee or body charged with 192 preparing the budget, or in a town that has no board of finance or other 193 such board, committee or body, means the board of selectmen or the 194 town council; "audit report" means the report of the independent 195 auditor and the annual financial statements of the municipality or 196 audited agency; "independent auditor" means a public accountant who 197 is licensed to practice in the state of Connecticut and who meets the 198 independence standards included in generally accepted government 199 auditing standards; "public accountant" means an individual who meets 200 standards included in generally accepted government auditing 201 standards for personnel performing government audits and the 202 licensing requirements of the State Board of Accountancy; "receipts" 203 means amounts accrued or received by a municipality, audited agency 204 or reporting agency and reportable as revenues in accordance with 205 generally accepted accounting principles; "municipal utility" means 206 every Connecticut municipality or department or agency thereof, or 207 Connecticut district, manufacturing, selling or distributing gas or 208 electricity to be used for light, heat or power or water. 209 Sec. 7. Section 2 of special act 75-73, as amended by section 2 of special 210 act 83-18, section 2 of special act 84-75, section 17 of public act 93-380 211 and section 4 of special act 14-21, is amended to read as follows (Effective 212 July 1, 2020): 213 (a) The members of the board of commissioners appointed prior to 214 and holding office on the effective date of special act 75-73, special act 215 83-18, special act 84-75, public act 93-380, [or this act] special act 14-21 216 or this act shall continue to serve until the expiration of their terms for 217 Raised Bill No. 474 LCO No. 3009 8 of 14 which they were appointed. Thereafter, members shall be appointed by 218 the legislative body of each member municipality, to replace the 219 members whose terms expire and until their successors are appointed 220 and qualify, provided, in no event shall the total number of members 221 appointed by the legislative body of any member municipality exceed: 222 (1) Six in the city of Hartford, (2) three in the city of East Hartford, (3) 223 one in the town of Rocky Hill, (4) one in the town of Wethersfield, (5) 224 one in the town of Newington, (6) one in the town of Windsor, (7) one 225 in the town of Bloomfield and (8) three in the town of West Hartford. 226 (b) Appointments to the district board by the legislative bodies of the 227 member municipalities shall be made in accordance with the following 228 schedule: 229 (1) The legislative body of the city of Hartford shall appoint (A) three 230 commissioners for a term of two years to commence January 1, 1977, and 231 (B) three commissioners for a term of six years to commence January 1, 232 l981; 233 (2) The legislative body of the city of East Hartford shall appoint (A) 234 two commissioners for a term of four years to commence January 1, 235 1977, and (B) one commissioner for a term of six years to commence 236 January 1, 1979; 237 (3) The legislative body of the town of Wethersfield shall appoint one 238 commissioner for a term of six years to commence January 1, 1979; 239 (4) The legislative body of the town of Newington shall appoint one 240 commissioner for a term of six years to commence January 1, 1981; 241 (5) The legislative body of the town of Windsor shall appoint one 242 commissioner for a term of six years to commence January 1, 1981; 243 (6) The legislative body of the town of Bloomfield shall appoint one 244 commissioner for a term of two years to commence January 1, 1987; 245 (7) The legislative body of the town of Rocky Hill shall appoint one 246 commissioner for a term of six years to commence January 1, 1977; 247 Raised Bill No. 474 LCO No. 3009 9 of 14 (8) The legislative body of the town of West Hartford shall appoint 248 (A) one commissioner for a term of one year to commence January 1, 249 1984, (B) one commissioner for a term of three years to commence 250 January 1, 1984, and (C) one commissioner for a term of five years to 251 commence January 1, 1984. 252 (c) Upon the expiration of the initial terms of appointment under this 253 section, members shall be appointed for terms of six years from January 254 first in the year of their appointment and shall serve until their 255 successors are appointed and qualify. 256 (d) On and after January 1, 1989, the eight members appointed by the 257 governor to the district board shall be electors from The Metropolitan 258 District, not more than three of whom shall be from any one 259 municipality within said district nor shall such appointees represent 260 more than fifty per cent of any municipality's representation on the 261 district board. The appointments by the governor shall be for six years 262 and shall be made in accordance with the following schedule: 263 (1) Three commissioners from the city of Hartford for a term to 264 commence January 1, 1989; 265 (2) One commissioner from the city of East Hartford for a term to 266 commence January 1, 1989; 267 (3) One commissioner from the town of Wethersfield for a term to 268 commence January 1, 1989; 269 (4) One commissioner from the town of Newington for a term to 270 commence January 1, 1991; 271 (5) One commissioner from the town of Windsor for a term to 272 commence January 1, 1989; 273 (6) One commissioner from the town of West Hartford for a term to 274 commence January 1, 1989. 275 (e) The four commissioners appointed by the designated members of 276 Raised Bill No. 474 LCO No. 3009 10 of 14 the General Assembly shall be appointed as follows: (1) One 277 commissioner by the president pro tempore of the Senate, for a term of 278 five and one-half years commencing July 1, 1993; (2) one commissioner 279 by the speaker of the House of Representatives, for a term of four and 280 one-half years commencing July 1, 1993; (3) one commissioner by the 281 minority leader of the Senate, for a term of three and one-half years, 282 commencing July 1, 1993, and (4) one commissioner by the minority 283 leader of the House of Representatives, for a term of two and one-half 284 years, commencing July 1, 1993. After such initial appointment the terms 285 of all such commissioners shall thereafter be six years. Such 286 commissioners shall be electors from The Metropolitan District, 287 provided no two commissioners shall be residents of the same 288 municipality. 289 (f) On and after October 1, 2014, the legislative bodies of nonmember 290 municipalities shall appoint four members to the board of 291 commissioners, provided in no event shall the total number of members 292 appointed by the legislative body of any nonmember municipality 293 exceed: (1) One from the town of Glastonbury; (2) one from the town of 294 South Windsor; (3) one from the town of East Granby; and (4) one from 295 the town of Farmington. Such commissioners shall be ex-officio, 296 nonvoting members of the board of commissioners, except that, on and 297 after July 1, 2020, commissioners appointed pursuant to this subsection 298 may vote with regard to approval of rates established by the water 299 bureau for the use of water. Commissioners appointed pursuant to this 300 subsection shall be appointed for terms of six years from January first in 301 the year of their appointment and shall serve until their successors are 302 appointed and qualify. 303 Sec. 8. (Effective July 1, 2020) (a) There is established a task force to 304 examine the organization and operations of the Metropolitan District of 305 Hartford County. The task force shall include, but not be limited to, a 306 review of (1) current procedures related to water rate increases within 307 the district, (2) the potential need for the Public Utilities Regulatory 308 Authority to provide oversight of the district, and (3) existing 309 mechanisms related to district governance and structure of the district's 310 Raised Bill No. 474 LCO No. 3009 11 of 14 board of commissioners. 311 (b) The task force shall consist of the following members: 312 (1) One appointed by the speaker of the House of Representatives, 313 who is a member of the administrative staff of the Capitol Region 314 Council of Governments; 315 (2) One appointed by the president pro tempore of the Senate, who is 316 a representative of an organization that advocates for environmental 317 protection and conservation; 318 (3) One appointed by the minority leader of the House of 319 Representatives, who is an officer of an engineering or consulting firm 320 involved in infrastructure improvements to the wastewater system of 321 the Metropolitan District of Hartford County to achieve goals of the 322 federal Clean Water Act, 33 USC 1251 et seq.; 323 (4) One appointed by the minority leader of the Senate, who is an 324 officer of an investor-owned public water supply company operating in 325 the state; 326 (5) The Independent Consumer Advocate, selected pursuant to 327 section 7-334a of the general statutes; 328 (6) The Consumer Counsel, appointed pursuant to section 16-2a of 329 the general statutes, or his or her designee; 330 (7) The chairperson of the Public Utilities Regulatory Authority, 331 elected pursuant to section 16-2 of the general statutes, or his or her 332 designee; 333 (8) One from the city of Hartford, appointed by the mayor thereof; 334 (9) One from the city of East Hartford, appointed by the mayor 335 thereof; 336 (10) One from the town of Wethersfield, appointed by the town 337 manager thereof; 338 Raised Bill No. 474 LCO No. 3009 12 of 14 (11) One from the town of Newington, appointed by the town 339 manager thereof; 340 (12) One from the town of Windsor, appointed by the town manager 341 thereof; 342 (13) One from the town of West Hartford, appointed by the mayor 343 thereof; 344 (14) One from the town of Bloomfield, appointed by the town 345 manager thereof; 346 (15) One from the town of Rocky Hill, appointed by the town 347 manager thereof; 348 (16) One from the town of Glastonbury, appointed by the town 349 manager thereof; 350 (17) One from the town of East Granby, appointed by the first 351 selectman thereof; 352 (18) One from the town of South Windsor, appointed by the town 353 manager thereof; and 354 (19) One from the town of Farmington, appointed by the town 355 manager thereof. 356 (c) All initial appointments to the task force shall be made not later 357 than thirty days after the effective date of this section. Any vacancy shall 358 be filled by the appointing authority. 359 (d) The Independent Consumer Advocate shall serve as chairperson 360 of the task force and shall schedule the first meeting of the task force, 361 which shall be held not later than sixty days after the effective date of 362 this section. 363 (e) The administrative staff of the joint standing committee of the 364 General Assembly having cognizance of matters relating to planning 365 and development shall serve as administrative staff of the task force. 366 Raised Bill No. 474 LCO No. 3009 13 of 14 (f) Not later than January 1, 2021, the task force shall submit a report 367 on its findings and recommendations to the joint standing committee of 368 the General Assembly having cognizance of matters relating to planning 369 and development, in accordance with the provisions of section 11-4a of 370 the general statutes. The task force shall terminate on the date that it 371 submits such report or January 1, 2021, whichever is later. 372 Sec. 9. (Effective July 1, 2020) Notwithstanding the provisions of 373 resolutions adopted by the Metropolitan District Commission at its 374 December 16, 2019, meeting concerning its 2020 budget expenditures 375 and revenues, the Metropolitan District Commission shall (1) make 376 payment in the amount of $1,250,000 to Riverfront Recapture, Inc. for 377 2020, and (2) incrementally reduce such payment annually, by equal 378 amounts, to $600,000 commencing with the district's 2025 budget and 379 each year thereafter. 380 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2020 Number 511 of the special acts of 1929, Sec. 19 Sec. 2 July 1, 2020 Number 511 of the special acts of 1929, Sec. 8 Sec. 3 July 1, 2020 SA 14-21, Sec. 8 Sec. 4 July 1, 2020 SA 90-27, Sec. 4(a) Sec. 5 July 1, 2020 2-90(c) Sec. 6 July 1, 2020 7-391 Sec. 7 July 1, 2020 SA 75-73, Sec. 2 Sec. 8 July 1, 2020 New section Sec. 9 July 1, 2020 New section Statement of Purpose: To (1) when computing the Metropolitan District's total outstanding indebtedness, count two consecutive bond issues as one if the proceeds of the new issue are placed in trust to pay off the old issue, (2) require annual audits of the district's books and accounts by the Auditors of Public Accounts, (3) allow district commissioners appointed from Raised Bill No. 474 LCO No. 3009 14 of 14 nonmember towns to vote on approval of water rates, (4) establish a task force to examine the organization and operations of the district, and (5) require the district commission to fund Riverfront Recapture, Inc. in 2020 at the same level it was funded in 2019. [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.]