LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277-R01- HB.docx 1 of 17 General Assembly Substitute Bill No. 5277 February Session, 2024 AN ACT AMENDING THE CHARTER OF THE SOUTH CENTRAL CONNECTICUT WATER AUTHORITY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 1 of special act 77-98, as amended by section 5 of 1 special act 99-12, section 2 of public act 02-85, section 1 of special act 13-2 20 and section 1 of special act 17-5, is amended to read as follows 3 (Effective from passage): 4 It is found and declared as a matter of legislative determination that 5 the creation of the South Central Connecticut Regional Water Authority 6 for the primary purpose of providing and assuring the provision of an 7 adequate supply of pure water and the safe disposal of wastewater at 8 reasonable cost within the South Central Connecticut Regional Water 9 District and such other areas as may be served pursuant to cooperative 10 agreements and acquisitions authorized by section 11 of special act 77-11 98, as amended by section 5 of special act 78-24, section 3 of special act 12 84-46, section 7 of public act 02-85 and section 3 of [this act] special act 13 17-5, and, to the degree consistent with the foregoing, of advancing 14 water conservation and the conservation and compatible recreational 15 use of land held by the authority, conducting or investing in noncore 16 businesses, provided, at the time of any investment in such businesses, 17 the authority's investment, less returns of or on such investments in 18 such businesses made on and after June 30, 2013, shall not exceed the 19 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 2 of 17 greater of five per cent of the authority's net utility plant devoted to its 20 water and wastewater utility businesses or such higher amount 21 approved by a majority of the total weighted votes of the membership 22 of the representative policy board, excluding vacancies, and the 23 carrying out of its powers, purposes, and duties under sections 1 to 33, 24 inclusive, of special act 77-98, as amended by special act 78-24, special 25 act 84-46, sections 5 to 7, inclusive, of special act 99-12, sections 2 to 21, 26 inclusive, of public act 02-85, special act 13-20, special act 17-5 and this 27 act, and for the benefit of the people residing in the South Central 28 Connecticut Regional Water District and the State of Connecticut, and 29 for the improvement of their health, safety and welfare, that said 30 purposes are public purposes, and that the authority will be performing 31 an essential governmental function in the exercise of its powers under 32 sections 1 to 33, inclusive, of special act 77-98, as amended by special act 33 78-24, special act 84-46, sections 5 to 7, inclusive, of special act 99-12, 34 section 2 of public act 02-85, special act 13-20, special act 17-5 and this 35 act. The authority shall have the power to conduct or invest in noncore 36 businesses authorized pursuant to this section, either directly or 37 through an affiliated business entity. 38 Sec. 2. Section 2 of special act 77-98, as amended by section 1 of special 39 act 78-24, section 3 of public act 02-85, section 2 of special act 13-20 and 40 section 2 of special act 17-5, is amended to read as follows (Effective from 41 passage): 42 As used in sections 1 to 33, inclusive, of special act 77-98, as amended 43 by special act 78-24, public act 02-85, special act 13-20, special act 17-5 44 and this act, unless a different meaning appears in the context: 45 "Authority" means the South Central Connecticut Regional Water 46 Authority created by section 5 of special act 77-98, as amended by 47 section 4 of special act 78-24, public act 02-85 and special act 13-20; 48 "district" means the South Central Connecticut Regional Water District 49 created by section 3 of special act 77-98, as amended by section 2 of 50 special act 78-24; ["Representative policy board"] "representative policy 51 board" means the representative policy board of the South Central 52 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 3 of 17 Connecticut Regional Water District created by section 4 of special act 53 77-98, as amended by section 3 of special act 78-24; "chief executive 54 officer" means that full time employee of the authority responsible for 55 the execution of the policies of the authority and for the direction of the 56 other employees of the authority; "treasurer" means the treasurer of the 57 authority; "customer" means any person, firm, corporation, company, 58 association or governmental unit furnished water or wastewater service 59 by the authority or any owner of property who guarantees payment for 60 water or wastewater service to such property; "properties" means the 61 water supply and distribution system or systems, wastewater collection 62 and treatment systems and other real or personal property of the 63 authority; "bonds" means bonds, notes and other obligations issued by 64 the authority; "revenues" means all rents, charges and other income 65 derived from the operation of the properties of the authority; 66 "wastewater" means any substance, liquid or solid, which may 67 contaminate or pollute or affect the cleanliness or purity of any water; 68 "water supply system" means plants, structures and other real and 69 personal property acquired, constructed or operated for the purpose of 70 supplying water, including [land, reservoirs,] basins, dams, canals, 71 aqueducts, standpipes, [conduits, pipelines, mains,] pumping stations, 72 water distribution systems, including land, reservoirs, conduits, 73 pipelines, mains, compensating reservoirs, waterworks or sources of 74 water supply, wells, purification or filtration plants or other plants and 75 works, connections, rights of flowage or diversion and other plants, 76 structures, conveyances, real or personal property or rights therein and 77 appurtenances necessary or useful and convenient for the accumulation, 78 supply or distribution of water or for the conduct of water or 79 environment related activities; "wastewater system" means plants, 80 structures and other real and personal property acquired, constructed 81 or operated for the purpose of collecting, treating and discharging or 82 reusing wastewater, whether or not interconnected, including 83 wastewater treatment plants, pipes and conduits for collection of 84 wastewater, pumping stations and other plants, works, structures, 85 conveyances, real or personal property or rights therein and 86 appurtenances necessary or useful and convenient for the collection, 87 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 4 of 17 transmission, treatment and disposition of wastewater; "subsidiary 88 corporation" means a corporation organized under the general statutes 89 or by special act which owns or operates all or part of a water supply 90 system or a wastewater system within the district and all of the voting 91 stock of which is owned by the authority, "noncore business" means an 92 activity, [to be located on property other than class I or class II land 93 owned by the authority] including an activity conducted outside the 94 state of Connecticut, that is related to water, environment, agriculture, 95 sustainable manufacturing support, or an energy project consisting of 96 either a class I renewable energy source, as defined in subdivision (20) 97 of subsection (a) of section 16-1 of the general statutes, or a class III 98 source, as defined in subdivision (38) of said section, but excluding wind 99 sources located within the district [;] and any activity located on 100 property that is class I or class II land owned by the authority; and 101 "affiliated business entity" means a corporation, a limited liability 102 company or a limited partnership controlled directly or indirectly by the 103 authority that conducts or invests in a noncore business. A reference in 104 sections 1 to 33, inclusive, of special act 77-98, as amended by special act 105 78-24, special act 84-46, public act 02-85 and [this act] special act 13-20, 106 to any general statute, public act or special act shall include any 107 amendment or successor thereto. 108 Sec. 3. Section 4 of special act 77-98, as amended by section 3 of special 109 act 78-24, section 2 of special act 84-46, section 5 of public act 02-85, 110 section 2 of special act 03-11 and section 10 of special act 13-20, is 111 amended to read as follows (Effective from passage): 112 (a) There shall be a representative policy board of the South Central 113 Connecticut Regional Water District which shall consist of one elector 114 from each city and town within the district who shall be appointed by 115 the chief elected official of such city or town, with the approval of its 116 legislative body, and one elector of the state who shall be appointed by 117 the governor. Members shall serve for a term of three years commencing 118 July 1, except that the members first appointed shall serve terms 119 commencing July 1, 1977, and such members appointed from Bethany, 120 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 5 of 17 East Haven, Killingworth, New Haven, Orange and West Haven shall 121 serve until June 30, 1978, such members appointed from Branford, 122 Guilford, Madison, North Branford, Prospect and Woodbridge shall 123 serve until June 30, 1979, such members appointed from Cheshire, 124 Hamden, Milford, North Haven and Wallingford shall serve until June 125 30, 1980, and the member first appointed by the governor shall serve for 126 a term commencing upon appointment and ending on the third June 127 thirtieth thereafter; provided members shall continue to serve until their 128 successors are appointed and have qualified. In the event of the 129 resignation, death or disability of a member from any city or town or the 130 state, a successor may be appointed by the chief elected official of such 131 city or town, or in the case of the member appointed by the governor, 132 for the unexpired portion of the term. The chief elected official of each 133 such city or town may appoint a provisional member to serve until 134 December 1, 1977, with full authority to act as a member until said date. 135 Members and provisional members shall receive [one] two hundred 136 fifty dollars, adjusted as provided in this subsection, for each day in 137 which they are engaged in their duties and shall be reimbursed for their 138 necessary expenses incurred in the performance of their duties. Such 139 [one-hundred-dollar-per-day] two-hundred-fifty-dollar compensation 140 amount shall be adjusted on January 1, [2015] 2027, and every [fifth] 141 third year thereafter to reflect changes [since 2012] in the Consumer 142 Price Index for All Urban Consumers, Northeast Urban, All Items (1982-143 84=100) published by the United States Bureau of Labor Statistics or a 144 comparable successor index. They shall elect a chairman and a vice-145 chairman, who shall be members or provisional members of the 146 representative policy board, and a secretary. The chairman shall receive 147 a per diem payment of [1.5] one and one-half times the amount paid to 148 members and provisional members. The representative policy board 149 shall meet at least quarterly with the authority and such members of the 150 staff of the authority as the representative policy board deems 151 appropriate. 152 (b) In voting upon all matters before the representative policy board, 153 the vote of each member from a city or town shall be accorded a weight, 154 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 6 of 17 determined as follows: The sum of (1) the quotient obtained by dividing 155 the number of customers in the city or town from which such member 156 is appointed by the total number of customers in all cities and towns 157 from which members have been appointed, taken twice, and (2) the 158 quotient obtained by dividing the number of acres of land owned by the 159 authority within the city or town from which such member is appointed 160 by the total number of acres of land owned by the authority in all cities 161 and towns from which members have been appointed, shall be divided 162 by three, the quotient thereof multiplied by one hundred and the 163 product thereof shall be rounded to the nearest whole number. The 164 weighted vote of the member appointed by the governor shall be one. 165 For the purposes of this section, "number of customers" means the 166 number of premises or groups of premises treated as units for ordinary 167 billing or other ordinary receipt of charges by the authority and shall be 168 determined from the records of the authority on the last day of its 169 preceding fiscal year and "number of acres of land" means the number 170 of acres of land rounded to the nearest whole number as may appear on 171 the records of the authority on the last day of its preceding fiscal year. 172 Notwithstanding the foregoing, prior to the first day of the fiscal year of 173 the authority commencing after the acquisition by the authority of a 174 water supply system, the weighted vote of each member of the 175 representative policy board from a city or town shall be as follows: 176 Bethany, four; Branford, seven; Cheshire, three; East Haven, six; 177 Guilford, four; Hamden, twelve; Killingworth, one; Madison, six; 178 Milford, eleven; New Haven, seventeen; North Branford, eight; North 179 Haven, four; Orange, three; Prospect, one; Wallingford, one; West 180 Haven, ten; and Woodbridge, two. Whenever a vote is taken on any 181 matter by the representative policy board, the vote shall be determined 182 in accordance with this subsection. Members of the representative 183 policy board holding a majority of the votes so weighted shall constitute 184 a quorum. 185 (c) The representative policy board shall adopt and may amend such 186 rules of procedure and bylaws for the conduct of its affairs as it deems 187 appropriate. It shall establish (1) a standing committee on land use and 188 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 7 of 17 management to consult with the authority on all matters of land use and 189 management, including acquisition and sale, recreational use, cutting of 190 timber and other products, mining and quarrying; (2) a standing 191 committee on finance to consult with the authority on matters relating 192 to financial and budgetary matters and the establishment of rates; and 193 (3) a standing committee on consumer affairs to consult with the 194 authority and the officer of consumer affairs established pursuant to 195 section 15 of special act 77-98 on matters concerning the interests of 196 people residing within the district. The representative policy board may 197 appoint such other committees as it considers convenient from time to 198 time. 199 (d) The representative policy board of the South Central Connecticut 200 Regional Water District shall also include a member from each of the 201 cities of Ansonia and Derby and the towns of Beacon Falls, Oxford and 202 Seymour, each appointed in the manner set forth in subsection (a) of this 203 section. The members first appointed shall serve from the date of their 204 appointment until June 30, 1985, in the case of Seymour; until June 30, 205 1986, in the case of Beacon Falls; and until June 30, 1987, in the case of 206 Ansonia, Derby and Oxford. Such members may participate in meetings 207 of the representative policy board notwithstanding such towns and 208 cities will not become members of the South Central Connecticut 209 Regional Water District until the effective date of the acquisition of the 210 Ansonia Derby Water Company by the South Central Connecticut 211 Regional Water Authority but, until such effective date, such members 212 may vote only on matters concerning the fixing of rates and charges to 213 support the financing of such acquisition. The weighted vote of such 214 members shall be determined in the manner set forth in subsection (b) 215 of this section as if such acquisition had occurred. This subsection shall 216 have no further force and effect after the effective date of such 217 acquisition or June 30, 1987, whichever occurs first. 218 (e) Upon the expansion of the South Central Connecticut Regional 219 Water District to include the area and territory of the town of Wolcott, 220 the representative policy board shall include one member from the town 221 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 8 of 17 of Wolcott appointed in the manner described in subsection (a) of this 222 section. Such member shall serve for an initial term ending on June 30, 223 2005, or such later time as the member's successor shall be appointed 224 and qualified. The weighted vote of such member shall be determined 225 in the manner set forth in subsection (b) of this section, provided in no 226 event shall such weighted vote be less than one. 227 Sec. 4. Section 5 of special act 77-98, as amended by section 4 of special 228 act 78-24, is amended to read as follows (Effective from passage): 229 A public corporation, to be known as the "South Central Connecticut 230 Regional Water Authority," constituting a public instrumentality and 231 political subdivision, is created for the purposes, charged with the 232 duties and granted the powers provided in sections 1 to 33, inclusive, of 233 special act 77-98, as amended by special act 78-24 and this act. [The] On 234 and before December 31, 2024, the authority shall consist of five 235 members who shall be residents of the district and not be members of 236 the representative policy board. [, who] On and after January 1, 2025, 237 the authority shall consist of seven members who shall reside in 238 Connecticut and not be members of the representative policy board, and 239 not fewer than five such members shall be residents of the district. [and 240 who shall] All members shall be appointed without regard to political 241 affiliation by a majority of the total votes of those members of the 242 representative policy board present at a meeting at which [members of 243 said board holding two-thirds of the total votes are present] at least two-244 thirds of the weighted vote, excluding vacancies, is present, for terms of 245 five years, not to exceed four consecutive full terms, and until their 246 successors are appointed and have qualified, except that of the members 247 first appointed, one shall be appointed for a term ending January 1, 1983, 248 one for a term ending January 1, 1982, one for a term ending January 1, 249 1981, one for a term ending January 1, 1980, and one for a term ending 250 January l, 1979. The sixth member first appointed shall be appointed for 251 a three-year term ending January 1, 2028, and the seventh member first 252 appointed shall be appointed for a five-year term ending January 1, 253 2030. Any vacancy occurring on the authority shall be filled in the same 254 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 9 of 17 manner for the unexpired portion of the term. Any member of the 255 authority may be removed from office by the representative policy 256 board for cause. Members of the authority shall receive such 257 compensation [for their services as shall be fixed by the representative 258 policy board] to be adjusted every three years by the Consumer Price 259 Index factor, as described in section 4 of special act 77-98, as amended 260 by special act 78-24, special act 84-46, public act 02-85, special act 03-11, 261 special act 13-20 and this act, if approved by the majority of weighted 262 votes of the membership of the representative policy board, excluding 263 vacancies, and shall be reimbursed for their necessary expenses 264 incurred in performance of their duties. 265 Sec. 5. Section 9 of special act 77-98 is amended to read as follows 266 (Effective from passage): 267 The authority shall meet at least [monthly] quarterly. Except as the 268 bylaws of the authority may provide in emergency situations, the 269 powers of the authority shall be exercised by the members at a meeting 270 duly called and held. [Three] On and before December 31, 2024, three 271 members shall constitute a quorum, and on and after January 1, 2025, 272 four members shall constitute a quorum, and no action shall be taken 273 except pursuant to the affirmative vote of [at least three members] a 274 quorum. The authority may delegate to one or more of its members, 275 officers, agents or employees such powers and duties as it may deem 276 proper. 277 Sec. 6. Section 14 of special act 77-98, as amended by section 6 of 278 special act 78-24, section 6 of special act 99-12, section 10 of public act 279 02-85 and section 5 of special act 17-5, is amended to read as follows 280 (Effective from passage): 281 With the approval of the representative policy board, the authority 282 shall establish just and equitable rates or charges for the use of the water 283 supply system and the wastewater system authorized herein, to be paid 284 by any customer, including rates of interest on unpaid rates or charges, 285 and may change such rates, [or] charges or rates of interest from time to 286 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 10 of 17 time. Such water supply system rates or charges shall be established so 287 as to provide funds sufficient in each year, with other water supply 288 related revenues, if any, (a) to pay the cost of maintaining, repairing and 289 operating the water supply system and each and every portion thereof, 290 to the extent that adequate provision for the payment of such cost has 291 not otherwise been made, (b) to pay the principal of and the interest on 292 outstanding water supply bonds of the authority as the same shall 293 become due and payable, (c) to meet any requirements of any resolution 294 authorizing, or trust agreement securing, such bonds of the authority, 295 (d) to make payments in lieu of taxes as provided in section 21 of special 296 act 77-98, as amended by section 8 of special act 78-24 and public act 02-297 85, as the same become due and payable, upon the water supply system 298 properties of the authority or of a subsidiary corporation to the 299 municipalities in which such properties are situated, (e) to provide for 300 the maintenance, conservation and appropriate recreational use of the 301 land of the authority, and (f) to pay all other reasonable and necessary 302 expenses of the authority and of the representative policy board to the 303 extent that such expenses are allocable to the water supply system 304 activities of the authority and the representative policy board. Such 305 wastewater system rates or charges shall be established so as to provide 306 funds sufficient in each year with other wastewater related revenues, if 307 any, (1) to pay the cost of maintaining, repairing and operating the 308 wastewater system and each and every portion thereof, to the extent that 309 adequate provision for the payment of such cost has not otherwise been 310 made, (2) to pay the principal of and the interest on outstanding 311 wastewater bonds of the authority as the same shall become due and 312 payable, (3) to meet any requirements of any resolution authorizing, or 313 trust agreement securing, such bonds of the authority, (4) to pay all 314 other reasonable and necessary expenses of the authority and of the 315 representative policy board to the extent that such expenses are 316 allocable to the wastewater activities of the authority and of the 317 representative policy board. No such rate or charge shall be established 318 until it has been approved by the representative policy board, after said 319 board has held a public hearing at which all the users of the waterworks 320 system or the wastewater system, the owners of property served or to 321 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 11 of 17 be served and others interested have had an opportunity to be heard 322 concerning such proposed rate or charge. The representative policy 323 board shall approve such rates and charges unless it finds that such rates 324 and charges will provide funds in excess of the amounts required for the 325 purposes described previously in this section, or unless it finds that such 326 rates and charges will provide funds insufficient for such purposes. The 327 rates or charges so established for any class of users or property served 328 shall be extended to cover any additional premises thereafter served 329 which are within the same class, without the necessity of a hearing 330 thereon. Any change in such rates or charges shall be made in the same 331 manner in which they were established. The rates or charges levied 332 upon any customer of any water supply system acquired pursuant to 333 subsection (d) of section 11 of special act 77-98, as amended by section 5 334 of special act 78-24, section 3 of special act 84-46, public act 02-85 and 335 [this act] special act 17-5 or served pursuant to a cooperative agreement 336 pursuant to subsection (m) of said section 11 shall not be required to be 337 equalized with the authority's existing rates, but may be set on a 338 separate basis, provided such rates are just, equitable and 339 nondiscriminatory. Such rates or charges, if not paid when due, shall 340 constitute a lien upon the premises served and a charge against the 341 owners thereof, which lien and charge shall bear interest [at the same] 342 not to exceed the maximum rate as would be allowed for unpaid taxes. 343 Such lien shall take precedence over all other liens or encumbrances 344 except taxes and may be foreclosed against the lot or building served in 345 the same manner as a lien for taxes, provided all such liens shall 346 continue until such time as they shall be discharged or foreclosed by the 347 authority without the necessity of filing certificates of continuation, but 348 in no event for longer than fifteen years. The amount of any such rate or 349 charge which remains due and unpaid [for thirty days may] after 350 twenty-eight days, which number of days may be changed with the 351 approval of the majority of the weighted votes of the membership of the 352 representative policy board, excluding vacancies, with interest thereon 353 at a rate approved by the representative policy board but not to exceed 354 the maximum interest rate allowed pursuant to the Connecticut general 355 statutes for unpaid property taxes and with reasonable attorneys' fees, 356 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 12 of 17 be recovered by the authority in a civil action in the name of the 357 authority against such owners. Any municipality shall be subject to the 358 same rate or charges under the same conditions as other users of the 359 water supply system or the wastewater system. The assets or the 360 revenues of the water system shall not be available to satisfy debts, 361 judgments or other obligations arising out of the operation of the 362 wastewater system and the assets or the revenues of the wastewater 363 system shall not be available to satisfy debts, judgments or other 364 obligations arising out of the operation of the water system. 365 Sec. 7. Section 19 of special act 77-98, as amended by section 15 of 366 public act 02-85, section 6 of special act 13-20 and section 9 of special act 367 17-5, is amended to read as follows (Effective from passage): 368 The authority shall not (1) acquire, by purchase, lease or otherwise, 369 any existing water supply system or parts thereof or any wastewater 370 system or parts thereof, (2) commence any project costing more than 371 [two] three and one-half million dollars to repair, improve, construct, 372 reconstruct, enlarge and extend any of its properties or systems, or (3) 373 acquire or make a subsequent investment in any noncore business in an 374 amount more than one and one-half million dollars without the 375 approval, following a public hearing, of a majority of the total weighted 376 votes of the membership of the representative policy board, excluding 377 vacancies. The dollar amounts specified in subdivisions (2) and (3) of 378 this section shall be adjusted every three years by the Consumer Price 379 Index factor, as described in section 4 of special act 77-98, as amended 380 by special act 78-24, special act 84-46, public act 02-85, special act 03-11, 381 special act 13-20 and this act, with the approval of a majority of the 382 weighted votes of the membership of the representative policy board, 383 excluding vacancies. In the case of the first acquisition by the authority 384 of an existing water supply system or part thereof, after such approval 385 by the representative policy board the authority shall file with the town 386 clerk of each city and town in the district its plan for such acquisition. 387 The legislative body of each such city and town shall approve or 388 disapprove such acquisition plan within sixty days after such filing, 389 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 13 of 17 provided failure to disapprove within such sixty days shall be deemed 390 approval of such acquisition plan. The authority shall not first acquire 391 an existing water supply system or part thereof except in accordance 392 with an acquisition plan approved by at least sixty per cent of such 393 legislative bodies. 394 Sec. 8. Section 20 of special act 77-98 is amended to read as follows 395 (Effective from passage): 396 (a) The authority shall have an annual audit of its accounts, books 397 and records by a certified public accountant selected by the 398 representative policy board. A copy of the audit shall be filed in the 399 office of the town clerk in each town within the district [and with the 400 public utilities control authority,] and shall be available for public 401 inspection during the ordinary business hours of the authority at the 402 principal office of the authority. A concise financial statement shall be 403 [published annually, at least once, in a newspaper of general circulation 404 in the municipality where the principal office of the authority is located. 405 If such publication is not made by the authority, the representative 406 policy board shall publish such statement at the expense of the 407 authority] posted annually on the South Central Connecticut Water 408 Authority's Internet web site. 409 (b) The attorney general may examine the books, accounts and 410 records of the authority. 411 Sec. 9. Subsection (a) of section 21 of special act 77-98, as amended by 412 special act 78-24 and section 16 of public act 02-85, is amended to read 413 as follows (Effective from passage): 414 (a) Neither the authority nor a subsidiary corporation or an affiliated 415 business entity shall be required to pay taxes or assessments upon any 416 of the properties acquired by it or under its jurisdiction, control or 417 supervision, provided in lieu of such taxes or assessments the authority 418 shall make annual payments to each municipality in which it or a 419 subsidiary corporation owns property related to the water supply 420 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 14 of 17 system equal to the taxes which would otherwise be due for the 421 property of the authority or such subsidiary corporation in such 422 municipality, excluding any improvements made to or constructed on 423 any such real property by the authority or such subsidiary corporation, 424 provided land owned by the authority or a subsidiary corporation 425 related to the water supply system shall be assessed in accordance with 426 section 12-63 of the general statutes, and provided further payments for 427 property acquired by the authority or a subsidiary corporation during 428 any tax year shall be adjusted for such fractional year in accordance with 429 the customary practice in such municipality for adjusting taxes between 430 the buyer and seller of real property. In addition, the authority or a 431 subsidiary corporation shall reimburse each such municipality for its 432 expenses in providing municipal services to any improvements made to 433 or constructed on any real property by the authority or such subsidiary 434 corporation within such municipality. As used in this section, 435 "improvements" does not include water pipes or improvements to water 436 pipes. 437 Sec. 10. Subsection (b) of section 22 of special act 77-98, as amended 438 by section 17 of public act 02-85, is amended to read as follows (Effective 439 from passage): 440 (b) The bonds shall be authorized by resolution of the authority and 441 shall bear such date or dates, mature at such time or times, [not 442 exceeding forty years from their respective dates,] bear interest at such 443 rates per annum, not exceeding statutory limitations, be payable at such 444 times, be in such denomination, be in such form, either coupon or 445 registered, carry such registration privileges, be executed in such 446 manner, be payable in lawful money of the United States of America, at 447 such place or places, and be subject to such terms of redemption as such 448 resolution or resolutions may provide. All bonds of the authority shall 449 be sold through a negotiated sale or a public sale to the bidder who shall 450 offer the lowest true interest cost to the authority, to be determined by 451 the authority. 452 Sec. 11. Subsection (h) of section 22 of special act 77-98, as amended 453 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 15 of 17 by section 17 of public act 02-85, is amended to read as follows (Effective 454 from passage): 455 (h) The authority shall have the power out of any funds available to 456 purchase, as distinguished from the power of redemption above, 457 [provided, any bonds issued by it at a price of not more than the 458 principal amount thereof and accrued interest,] and all bonds so 459 purchased shall be cancelled. 460 Sec. 12. Section 28 of special act 77-98, as amended by section 9 of 461 special act 78-24, is amended to read as follows (Effective from passage): 462 Nothing in sections 1 to 33, inclusive, of special act 77-98, as amended 463 by special act 78-24, special act 84-46 and this act shall be construed to 464 deprive the commissioner of environmental protection, the 465 commissioner of health or any successor commissioner or board of any 466 jurisdiction which such commissioners or boards may now or hereafter 467 have. Neither the public utilities control authority nor any successor 468 board or commissioner shall have jurisdiction of any kind over the 469 authority, a subsidiary corporation, the representative policy board or 470 the rates fixed or charges collected by the authority. [The authority shall 471 annually file the report required of municipalities pursuant to section 472 16-29 of the general statutes with the public utilities control authority or 473 any successor board and the clerks of the towns and cities within the 474 district.] 475 Sec. 13. Subsection (a) of section 30 of special act 77-98, as amended 476 by section 10 of special act 78-24 and section 20 of public act 02-85, is 477 amended to read as follows (Effective from passage): 478 (a) The authority or any person who is aggrieved by a decision of the 479 representative policy board with respect to the establishment of rates or 480 charges, the establishment of land use standards and disposition 481 policies, the sale or other transfer or change of use of real property, the 482 location of purification, filtration or wastewater treatment plants, the 483 commencement of any project costing more than [two] three and one-484 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 16 of 17 half million dollars, and as adjusted by the Consumer Price Index factor, 485 as described in section 4 of special act 77-98, as amended by special act 486 78-24, special act 84-46, public act 02-85, special act 03-11, special act 13-487 20 and this act, and subject to the approval of a majority of the weighted 488 votes of the membership of the representative policy board, excluding 489 vacancies, to repair, improve, construct, reconstruct, enlarge or extend 490 any of the properties or systems of the authority or the acquisition by 491 purchase, lease or otherwise of any existing water supply system, 492 wastewater system or part thereof, other than the purchase of all or any 493 part of the properties and franchises of the New Haven Water 494 Company, is entitled to review by the Superior Court as provided in this 495 section. For the purposes of this section, the holders of any bonds or 496 notes of the authority and any trustee acting on behalf of such holders 497 shall be deemed aggrieved persons with respect to any decision of the 498 representative policy board which violates any covenant or other 499 provision of the resolution or resolutions authorizing such bonds or 500 notes. 501 Sec. 14. Subsection (a) of section 1 of special act 03-12 is amended to 502 read as follows (Effective from passage): 503 (a) Notwithstanding any provision of the general statutes or any 504 public or special act, the South Central Connecticut Regional Water 505 Authority, created by special act 77-98, as amended, may sell, lease, 506 assign or otherwise dispose of any class I or class II land, as defined in 507 section 25-37c of the general statutes, upon which a single-family 508 dwelling or barn owned by the South Central Connecticut Regional 509 Water Authority is situated provided (1) such single-family dwelling or 510 barn was so situated prior to January 1, 1976, (2) any underground 511 storage tanks on such property have been removed, (3) the property is 512 not greater than the minimum acreage required to meet zoning 513 requirements plus any allowance necessary for setback allowances and 514 access or egress consistent with local zoning and use requirements, and, 515 if the single-family dwelling or barn is located on class I land, such 516 minimum acreage is met by utilizing class II or class III land, as defined 517 Substitute Bill No. 5277 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05277- R01-HB.docx } 17 of 17 in section 25-37c of the general statutes, to the greatest extent possible, 518 (4) a restrictive covenant that would limit the expansion of the single-519 family dwelling or barn and restrict any activity or expansion of any 520 activity that would have a significant adverse [affect] effect on the public 521 water supply is placed on the property, and (5) for class I land, the 522 single-family dwelling or barn has historical significance, as confirmed, 523 in writing, by the Connecticut Trust for Historic Preservation or its 524 successor organization. 525 This act shall take effect as follows and shall amend the following sections: Section 1 from passage SA 77-98, Sec. 1 Sec. 2 from passage SA 77-98, Sec. 2 Sec. 3 from passage SA 77-98, Sec. 4 Sec. 4 from passage SA 77-98, Sec. 5 Sec. 5 from passage SA 77-98, Sec. 9 Sec. 6 from passage SA 77-98, Sec. 14 Sec. 7 from passage SA 77-98, Sec. 19 Sec. 8 from passage SA 77-98, Sec. 20 Sec. 9 from passage SA 77-98, Sec. 21(a) Sec. 10 from passage SA 77-98, Sec. 22(b) Sec. 11 from passage SA 77-98, Sec. 22(h) Sec. 12 from passage SA 77-98, Sec. 28 Sec. 13 from passage SA 77-98, Sec. 30(a) Sec. 14 from passage SA 03-12, Sec. 1(a) Statement of Legislative Commissioners: In Section 3(a), "1.5" was changed to "one and one-half" to conform with standard drafting conventions; in Section 4, the second and third sentences were reorganized for clarity; in Section 5, the second sentence was reorganized for clarity; in Section 6, in the first sentence, "including rates of interest on unpaid rates or charges," was added and "such rates or charges" was changed to "such rates, [or] charges or rates of interest" for clarity; and Section 7 was reorganized for clarity. PD Joint Favorable Subst.