Senate Bill No. 501
June Special Session, Public Act No. 24-1
AN ACT CONCERNING MOTOR VEHICLE ASSESSMENTS FOR
PROPERTY TAXATION, INNOVATION BANKS, THE INTEREST ON
CERTAIN TAX UNDERPAYMENTS, THE ASSESSMENT ON
INSURERS, SCHOOL BUILDING PROJECTS, THE SOUTH
CENTRAL CONNECTICUT REGIONAL WATER AUTHORITY
CHARTER AND CERTAIN STATE HISTORIC PRESERVATION
OFFICER PROCEDURES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subdivision (2) of subsection (a) of section 14-33 of the 2024
supplement to the general statutes is repealed and the following is
substituted in lieu thereof (Effective July 1, 2024, and applicable to
assessment years commencing on or after October 1, 2024):
(2) For assessment years commencing on or after October 1, 2024, if
any property tax, or any installment thereof, laid by any city, town,
borough or other taxing district upon a motor vehicle remains unpaid,
[regardless of whether such motor vehicle is classified on the grand list
as a registered motor vehicle or personal property pursuant to section
12-41,] the tax collector of such city, town, borough or other taxing
district shall notify the Commissioner of Motor Vehicles of such
delinquency in accordance with subsection (e) of this section and
guidelines and procedures established by the commissioner. The
commissioner shall not issue registration for such motor vehicle for the Senate Bill No. 501
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next registration period if, according to the commissioner's records, it is
then owned by the person against whom such tax has been assessed or
by any person to whom such vehicle has not been transferred by bona
fide sale. Unless notice has been received by the commissioner under
the provisions of section 14-33a, no such registration shall be issued
until the commissioner receives notification that the tax obligation has
been legally discharged; nor shall the commissioner register any other
motor vehicle, snowmobile, all-terrain vehicle or vessel in the name of
such person, except that the commissioner may continue to register
other vehicles owned by a leasing or rental firm licensed pursuant to
section 14-15, and may issue such registration to any private owner of
three or more paratransit vehicles in direct proportion to the percentage
of total tax due on such vehicles which has been paid and notice of
payment on which has been received. The Commissioner of Motor
Vehicles may immediately suspend or cancel all motor vehicle,
snowmobile, all-terrain vehicle or vessel registrations issued in the
name of any person (A) who has been reported as delinquent and whose
registration was renewed through an error or through the production of
false evidence that the delinquent tax on any motor vehicle had been
paid, or (B) who has been reported by a tax collector as having paid a
property tax on a motor vehicle with a check which was dishonored by
a bank and such tax remains unpaid.
Sec. 2. Subsection (b) of section 12-71d of the 2024 supplement to the
general statutes is repealed and the following is substituted in lieu
thereof (Effective July 1, 2024, and applicable to assessment years commencing
on or after October 1, 2024):
(b) Not later than October 1, 2024, and annually thereafter, the
Secretary of the Office of Policy and Management shall, in consultation
with the [Connecticut Association of Assessing Officers, recommend a
schedule of motor vehicle plate classes] Department of Motor Vehicles,
establish guidelines for the valuation of motor vehicles, which shall be Senate Bill No. 501
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used by assessors in each municipality in determining the
[classification] use of motor vehicles for purposes of property taxation.
The value for each motor vehicle shall be determined by the schedule of
depreciation described in subdivision (7) of subsection (b) of section 12-
63, as amended by this act. The determination of the assessed value of
any vehicle for which a manufacturer's suggested retail price cannot be
obtained for purposes of the property tax assessment list in any
municipality shall be the responsibility of the assessor in such
municipality, in consultation with the Connecticut Association of
Assessing Officers. Any appeal from the findings of assessors
concerning motor vehicle values shall be made in accordance with
provisions related to such appeals under this chapter.
Sec. 3. Subsection (b) of section 12-63 of the 2024 supplement to the
general statutes is repealed and the following is substituted in lieu
thereof (Effective July 1, 2024, and applicable to assessment years commencing
on or after October 1, 2024):
(b) (1) For the purposes of this subsection, (A) "electronic data
processing equipment" means computers, printers, peripheral computer
equipment, bundled software and any computer-based equipment
acting as a computer, as defined in Section 168 of the Internal Revenue
Code of 1986, or any subsequent corresponding internal revenue code
of the United States, as from time to time amended; (B) "leased personal
property" means tangible personal property which is the subject of a
written or oral lease or loan on the assessment date, or any such
property which has been so leased or loaned by the then current owner
of such property for three or more of the twelve months preceding such
assessment date; and (C) "original selling price" means the price at
which tangible personal property is most frequently sold in the year that
it was manufactured.
(2) Any municipality may, by ordinance, adopt the provisions of this
subsection to be applicable for the assessment year commencing Senate Bill No. 501
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October first of the assessment year in which a revaluation of all real
property required pursuant to section 12-62 is performed in such
municipality, and for each assessment year thereafter. If so adopted, the
present true and actual value of tangible personal property, other than
motor vehicles, shall be determined in accordance with the provisions
of this subsection. If such property is purchased, its true and actual
value shall be established in relation to the cost of its acquisition,
including transportation and installation, and shall reflect depreciation
in accordance with the schedules set forth in subdivisions (3) to (6),
inclusive, of this subsection. If such property is developed and produced
by the owner of such property for a purpose other than wholesale or
retail sale or lease, its true and actual value shall be established in
relation to its cost of development, production and installation and shall
reflect depreciation in accordance with the schedules provided in
subdivisions (3) to (6), inclusive, of this subsection. The provisions of
this subsection shall not apply to property owned by a public service
company, as defined in section 16-1.
(3) The following schedule of depreciation shall be applicable with
respect to electronic data processing equipment:
(A) Group I: Computer and peripheral hardware, including, but not
limited to, personal computers, workstations, terminals, storage
devices, printers, scanners, computer peripherals and networking
equipment:
Depreciated Value
As Percentage
Assessment Year Of Acquisition
Following Acquisition Cost Basis
First year Seventy per cent
Second year Forty per cent
Third year Twenty per cent Senate Bill No. 501
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Fourth year and thereafter Ten per cent
(B) Group II: Other hardware, including, but not limited to, mini-
frame and main-frame systems with an acquisition cost of more than
twenty-five thousand dollars:
Depreciated Value
As Percentage
Assessment Year Of Acquisition
Following Acquisition Cost Basis
First year Ninety per cent
Second year Sixty per cent
Third year Forty per cent
Fourth year Twenty per cent
Fifth year and thereafter Ten per cent
(4) The following schedule of depreciation shall be applicable with
respect to copiers, facsimile machines, medical testing equipment, and
any similar type of equipment that is not specifically defined as
electronic data processing equipment, but is considered by the assessor
to be technologically advanced:
Depreciated Value
As Percentage
Assessment Year Of Acquisition
Following Acquisition Cost Basis
First year Ninety-five per cent
Second year Eighty per cent
Third year Sixty per cent
Fourth year Forty per cent
Fifth year and thereafter Twenty per cent
(5) The following schedule of depreciation shall be applicable with Senate Bill No. 501
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respect to machinery and equipment used in the manufacturing process:
Depreciated Value
As Percentage
Assessment Year Of Acquisition
Following Acquisition Cost Basis
First year Ninety per cent
Second year Eighty per cent
Third year Seventy per cent
Fourth year Sixty per cent
Fifth year Fifty per cent
Sixth year Forty per cent
Seventh year Thirty per cent
Eighth year and thereafter Twenty per cent
(6) The following schedule of depreciation shall be applicable with
respect to all tangible personal property other than that described in
subdivisions (3) to (5), inclusive, and subdivision (7) of this subsection:
Depreciated Value
As Percentage
Assessment Year Of Acquisition
Following Acquisition Cost Basis
First year Ninety-five per cent
Second year Ninety per cent
Third year Eighty per cent
Fourth year Seventy per cent
Fifth year Sixty per cent
Sixth year Fifty per cent
Seventh year Forty per cent
Eighth year and thereafter Thirty per cent
(7) For assessment years commencing on or after October 1, 2024, the Senate Bill No. 501
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following schedule of depreciation shall be applicable with respect to
motor vehicles based on the manufacturer's suggested retail price of
such motor vehicles, provided no motor vehicle shall be [valued]
assessed at an amount less than five hundred dollars:
Percentage of
Manufacturer's Suggested
Age of Vehicle Retail Price
Up to year one [Eighty] Eighty-five per cent
Year two [Seventy-five] Eighty per cent
Year three [Seventy] Seventy-five per cent
Year four [Sixty-five] Seventy per cent
Year five [Sixty] Sixty-five per cent
Year six [Fifty-five] Sixty per cent
Year seven [Fifty] Fifty-five per cent
Year eight [Forty-five] Fifty per cent
Year nine [Forty] Forty-five per cent
Year ten [Thirty-five] Forty per cent
Year eleven [Thirty] Thirty-five per cent
Year twelve [Twenty-five] Thirty per cent
Year thirteen [Twenty] Twenty-five per cent
Year fourteen [Fifteen] Twenty per cent
Years fifteen to nineteen [Ten] Fifteen per cent
Years twenty and beyond Not less than
five hundred dollars
(8) The present true and actual value of leased personal property
other than motor vehicles shall be determined in accordance with the
provisions of this subdivision. Such value for any assessment year shall
be established in relation to the original selling price for self-
manufactured property or acquisition cost for acquired property and
shall reflect depreciation in accordance with the schedules provided in
subdivisions (3) to (6), inclusive, of this subsection. If the assessor is Senate Bill No. 501
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unable to determine the original selling price of leased personal
property other than a motor vehicle, the present true and actual value
thereof shall be its current selling price.
(9) With respect to any personal property which is prohibited by law
from being sold, the present true and actual value of such property shall
be established with respect to such property's original manufactured
cost increased by a ratio the numerator of which is the total proceeds
from the manufacturer's salable equipment sold and the denominator of
which is the total cost of the manufacturer's salable equipment sold.
Such value shall then be depreciated in accordance with the appropriate
schedule in this subsection.
(10) The schedules of depreciation set forth in subdivisions (3) to (6),
inclusive, of this subsection shall not be used with respect to motor
vehicles, videotapes, horses or other taxable livestock or electric
cogenerating equipment.
(11) If the assessor determines that the value of any item of personal
property, other than a motor vehicle valued pursuant to subdivision (7)
of this subsection, produced by the application of the schedules set forth
in this subsection does not accurately reflect the present true and actual
value of such item, the assessor shall adjust such value to reflect the
present true and actual value of such item.
(12) For assessment years commencing on or after October 1, 2024, for
any commercial motor vehicle (A) that is modified, or (B) to which is
affixed an attachment designed, manufactured or modified to be affixed
to such motor vehicle, the assessor shall determine whether to value
such motor vehicle and any such modifications or attachments to such
motor vehicle pursuant to subdivision (7) of this subsection or section
12-41, as amended by this act. The assessor shall determine valuation of
any modifications or attachments to such motor vehicle based on
whether such modifications or attachments are intended to be Senate Bill No. 501
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permanently affixed to such motor vehicle.
[(12)] (13) Nothing in this subsection shall prevent any taxpayer from
appealing any (A) assessment made pursuant to this subsection if such
assessment does not accurately reflect the present true and actual value
of any item of such taxpayer's personal property, or (B) determination
of the manufacturer's suggested retail price used to value a motor
vehicle pursuant to this subsection.
Sec. 4. Subsections (b) and (c) of section 12-41 of the 2024 supplement
to the general statutes are repealed and the following is substituted in
lieu thereof (Effective July 1, 2024, and applicable to assessment years
commencing on or after October 1, 2024):
(b) [(1) For assessment years commencing prior to October 1, 2024,
no] No person required by law to file an annual declaration of personal
property shall include in such declaration motor vehicles that are
registered [in the office of the state Commissioner] with the Department
of Motor Vehicles. With respect to any vehicle subject to taxation in a
town other than the town in which such vehicle is registered, pursuant
to section 12-71, as amended by this act, information concerning such
vehicle may be included in a declaration filed pursuant to this section or
section 12-43, or on a report filed pursuant to section 12-57a.
[(2) For assessment years commencing on or after October 1, 2024,
any person required to file an annual declaration of tangible personal
property shall include in such declaration the motor vehicle listing,
pursuant to subdivision (2) of subsection (f) of section 12-71, of any
motor vehicle owned by such person. If, after the annual deadline for
filing a declaration, a motor vehicle is deemed personal property by the
assessor, such motor vehicle shall be added to the declaration of the
owner of such vehicle or included on a new declaration if no declaration
was submitted in the prior year. The value of the motor vehicle shall be
determined pursuant to section 12-63. If applicable, the value of the Senate Bill No. 501
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motor vehicle for the current assessment year shall be prorated pursuant
to section 12-71b, and shall not be considered omitted property, as
defined in section 12-53, or subject to a penalty pursuant to subsection
(f) of this section.]
(c) The annual declaration of the tangible personal property owned
by such person on the assessment date, shall include, but is not limited
to, the following property: Machinery used in mills and factories, cables,
wires, poles, underground mains, conduits, pipes and other fixtures of
water, gas, electric and heating companies, leasehold improvements
classified as other than real property and furniture and fixtures of stores,
offices, hotels, restaurants, taverns, halls, factories and manufacturers.
Tangible personal property does not include a sign placed on a property
indicating that the property is for sale or lease. On and after October 1,
2024, tangible personal property shall include nonpermanent
modifications and attachments to commercial motor vehicles. [listed on
the schedule of motor vehicle plate classes recommended pursuant to
section 12-71d.] Commercial or financial information in any declaration
filed under this section [, except for commercial or financial information
which concerns motor vehicles,] shall not be open for public inspection
but may be disclosed to municipal officers for tax collection purposes.
Sec. 5. Subsection (a) of section 12-53 of the 2024 supplement to the
general statutes is repealed and the following is substituted in lieu
thereof (Effective July 1, 2024, and applicable to assessment years commencing
on or after October 1, 2024):
(a) For purposes of this section:
(1) "Omitted property" means property for which complete
information is not included in the declaration required to be filed by law
with respect to (A) the total number and type of all items subject to
taxation, or (B) the true original cost and year acquired of all such items;
[, or (C) on or after October 1, 2024, the manufacturer's suggested retail Senate Bill No. 501
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price of a motor vehicle plus any applicable after-market alterations to
such motor vehicle,]
(2) ["books"] "Books", "papers", "documents" and "other records"
includes, but is not limited to, federal tax forms relating to the
acquisition and cost of fixed assets, general ledgers, balance sheets,
disbursement ledgers, fixed asset and depreciation schedules, financial
statements, invoices, operating expense reports, capital and operating
leases, conditional sales agreements and building or leasehold ledgers;
[,] and
(3) ["designee of an assessor"] "Designee of an assessor" means a
Connecticut municipal assessor certified in accordance with subsection
(b) of section 12-40a, a certified public accountant, a revaluation
company certified in accordance with section 12-2c for the valuation of
personal property, or an individual certified as a revaluation company
employee in accordance with section 12-2b for the valuation of personal
property.
Sec. 6. Subdivision (2) of subsection (a) of section 12-71 of the 2024
supplement to the general statutes is repealed and the following is
substituted in lieu thereof (Effective July 1, 2024, and applicable to
assessment years commencing on or after October 1, 2024):
(2) For assessment years commencing on or after October 1, 2024,
goods, chattels and effects or any interest therein, including any interest
in a leasehold improvement classified as other than real property,
belonging to any person who is a resident in this state, shall be listed for
purposes of property tax in the town where such person resides, subject
to the provisions of sections 12-41, as amended by this act, 12-43 and 12-
59. Any such property belonging to any nonresident shall be listed for
purposes of property tax as provided in section 12-43. Motor vehicles
shall be listed for purposes of the property tax as provided in subsection
(f) of this section. Senate Bill No. 501
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Sec. 7. Subdivision (2) of subsection (f) of section 12-71 of the 2024
supplement to the general statutes is repealed and the following is
substituted in lieu thereof (Effective July 1, 2024, and applicable to
assessment years commencing on or after October 1, 2024):
[(2) (A) For assessment years commencing on or after October 1, 2024,
each municipality shall list motor vehicles registered and classified in
accordance with section 12-71d, and such motor vehicles shall be valued
in the same manner as motor vehicles valued pursuant to section 12-63.]
[(B)] (2) For assessment years commencing on or after October 1, 2024,
any unregistered motor vehicle or motor vehicle that is not used or
capable of being used that is located in a municipality in this state, shall
be listed and valued in the [manner described in subparagraph (A) of
this subdivision] same manner as motor vehicles valued pursuant to
section 12-63, as amended by this act.
Sec. 8. Section 12-71b of the 2024 supplement to the general statutes
is repealed and the following is substituted in lieu thereof (Effective July
1, 2024, and applicable to assessment years commencing on or after October 1,
2024):
(a) (1) For assessment years commencing prior to October 1, 2024, any
person who owns a motor vehicle which is not registered with the
Commissioner of Motor Vehicles on the first day of October in any
assessment year and which is registered subsequent to said first day of
October but prior to the first day of August in such assessment year shall
be liable for the payment of property tax with respect to such motor
vehicle in the town where such motor vehicle is subject to property tax,
in an amount as hereinafter provided, on the first day of January
immediately subsequent to the end of such assessment year. The
property tax payable with respect to such motor vehicle on said first day
of January shall be in the amount which would be payable if such motor
vehicle had been entered in the taxable list of the town where such Senate Bill No. 501
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motor vehicle is subject to property tax on the first day of October in
such assessment year if such registration occurs prior to the first day of
November. If such registration occurs on or after the first day of
November but prior to the first day of August in such assessment year,
such tax shall be a pro rata portion of the amount of tax payable if such
motor vehicle had been entered in the taxable list of such town on
October first in such assessment year to be determined (A) by a ratio,
the numerator of which shall be the number of months from the date of
such registration, including the month in which registration occurs, to
the first day of October next succeeding and the denominator of which
shall be twelve, or (B) upon the affirmative vote of the legislative body
of the municipality, by a ratio the numerator of which shall be the
number of days from the date of such registration, including the day on
which the registration occurs, to the first day of October next succeeding
and the denominator of which shall be three hundred sixty-five. For
purposes of this section the term "assessment year" means the period of
twelve full months commencing with October first each year.
(2) For assessment years commencing on or after October 1, 2024, any
[person who owns a] motor vehicle [which] that is not registered with
the Commissioner of Motor Vehicles on the first day of October in any
assessment year and [which] that is registered subsequent to said first
day of October but prior to the [first day of April] last day of September
in such assessment year shall be added to the grand list by the assessor,
and the owner of such motor vehicle shall be liable for the payment of
property tax with respect to such motor vehicle in the town where such
motor vehicle is subject to property tax, in an amount as hereinafter
provided. [, on the first day of July in such assessment year. Any person
who owns a motor vehicle which is registered with the Commissioner
of Motor Vehicles on or after the first day of April in any assessment
year but prior to the first day of October next succeeding shall be liable
for the payment of property tax with respect to such motor vehicle in
the town where such motor vehicle is subject to property tax, in an Senate Bill No. 501
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amount hereinafter provided, on the first day of January immediately
subsequent to the end of such assessment year.] The property tax
payable with respect to a motor vehicle described in this subdivision
shall be in the amount [which] that would be payable if such motor
vehicle had been entered into the taxable list of the town where such
motor vehicle is subject to property tax on the first day of October in
such assessment year if such registration occurs prior to the first day of
November. If such registration occurs on or after the first day of
November but prior to the first day of October next succeeding, such tax
shall be a pro rata portion of the amount of tax payable if such motor
vehicle had been entered in the taxable list of such town on October first
in such assessment year to be determined (A) by a ratio, the numerator
of which shall be the number of months from the date of such
registration, including the month in which registration occurs, to the
first day of October next succeeding and the denominator of which shall
be twelve, or (B) upon the affirmative vote of the legislative body of the
municipality, by a ratio the numerator of which shall be the number of
days from the date of such registration, including the day on which the
registration occurs, to the first day of October next succeeding and the
denominator of which shall be three hundred sixty-five.
(b) (1) For assessment years commencing prior to October 1, 2024,
whenever any person who owns a motor vehicle which has been entered
in the taxable list of the town where such motor vehicle is subject to
property tax in any assessment year and who, subsequent to the first
day of October in such assessment year but prior to the first day of
August in such assessment year, replaces such motor vehicle with
another motor vehicle, hereinafter referred to as the replacement
vehicle, which vehicle may be in a different classification for purposes
of registration than the motor vehicle replaced, and provided one of the
following conditions is applicable with respect to the motor vehicle
replaced: (A) The unexpired registration of the motor vehicle replaced
is transferred to the replacement vehicle, (B) the motor vehicle replaced Senate Bill No. 501
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was stolen or totally damaged and proof concerning such theft or total
damage is submitted to the assessor in such town, or (C) the motor
vehicle replaced is sold by such person within forty-five days
immediately prior to or following the date on which such person
acquires the replacement vehicle, such person shall be liable for the
payment of property tax with respect to the replacement vehicle in the
town in which the motor vehicle replaced is subject to property tax, in
an amount as hereinafter provided, on the first day of January
immediately subsequent to the end of such assessment year. If the
replacement vehicle is replaced by such person with another motor
vehicle prior to the first day of August in such assessment year, the
replacement vehicle shall be subject to property tax as provided in this
subsection and such other motor vehicle replacing the replacement
vehicle, or any motor vehicle replacing such other motor vehicle in such
assessment year, shall be deemed to be the replacement vehicle for
purposes of this subsection and shall be subject to property tax as
provided herein. The property tax payable with respect to the
replacement vehicle on said first day of January shall be the amount by
which (i) is in excess of (ii) as follows: (i) The property tax which would
be payable if the replacement vehicle had been entered in the taxable list
of the town in which the motor vehicle replaced is subject to property
tax on the first day of October in such assessment year if such
registration occurs prior to the first day of November, however if such
registration occurs on or after the first day of November but prior to the
first day of August in such assessment year, such tax shall be a pro rata
portion of the amount of tax payable if such motor vehicle had been
entered in the taxable list of such town on October first in such
assessment year to be determined by a ratio, the numerator of which
shall be the number of months from the date of such registration,
including the month in which registration occurs, to the first day of
October next succeeding and the denominator of which shall be twelve,
provided if such person, on said first day of October, was entitled to any
exemption under section 12-81, as amended by this act, which was Senate Bill No. 501
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allowed in the assessment of the motor vehicle replaced, such
exemption shall be allowed for purposes of determining the property
tax payable with respect to the replacement vehicle as provided herein;
(ii) the property tax payable by such person with respect to the motor
vehicle replaced, provided if the replacement vehicle is registered
subsequent to the thirty-first day of October but prior to the first day of
August in such assessment year such property tax payable with respect
to the motor vehicle replaced shall, for purposes of the computation
herein, be deemed to be a pro rata portion of such property tax to be
prorated in the same manner as the amount of tax determined under (i)
above.
(2) For assessment years commencing on or after October 1, 2024,
whenever any person who owns a motor vehicle which has been entered
in the taxable list of the town where such motor vehicle is subject to
property tax in any assessment year and who, subsequent to the first
day of October in such assessment year but prior to the [first day of
April] last day of September in such assessment year, replaces such
motor vehicle with another motor vehicle, hereinafter referred to as the
replacement vehicle, which vehicle may be in a different classification
for purposes of registration than the motor vehicle replaced, and
provided one of the following conditions is applicable with respect to
the motor vehicle replaced: (A) The unexpired registration of the motor
vehicle replaced is transferred to the replacement vehicle, (B) the motor
vehicle replaced was stolen or totally damaged and proof concerning
such theft or total damage is submitted to the assessor in such town, or
(C) the motor vehicle replaced is sold by such person within forty-five
days immediately prior to or following the date on which such person
acquires the replacement vehicle, such motor vehicle shall be added by
the assessor to the taxable grand list and such person shall be liable for
the payment of property tax with respect to the replacement vehicle in
the town in which the motor vehicle replaced is subject to property tax
pursuant to subdivision [(4)] (3) of this subsection. [, on the first day of Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 17 of 140
July in such assessment year.] If a replacement vehicle is replaced by the
owner of such replacement vehicle prior to the first day of October next
succeeding such assessment year, the replacement vehicle shall be
added by the assessor to the taxable grand list and subject to property
tax as provided in this subdivision. [and such other] Any motor vehicle
replacing [the] a replacement vehicle, or any motor vehicle replacing
such other motor vehicle in such assessment year, shall be deemed to be
the replacement vehicle for purposes of this subdivision.
[(3) For assessment years commencing on or after October 1, 2024,
whenever any person who owns a motor vehicle which has been entered
into the taxable list of the town where such motor vehicle is subject to
property tax in any assessment year and who, on or after the first day of
April of such assessment year but prior to the first day of October next
succeeding, replaces such motor vehicle with another motor vehicle,
hereinafter referred to as the replacement vehicle, which vehicle may be
in a different classification for purposes of registration than the motor
vehicle replaced, and provided one of the following conditions is
applicable with respect to the motor vehicle replaced: (A) The unexpired
registration of the motor vehicle replaced is transferred to the
replacement vehicle, (B) the motor vehicle replaced was stolen or totally
damaged and proof concerning such theft or total damage is submitted
to the assessor in such town, or (C) the motor vehicle replaced is sold by
such person within forty-five days immediately prior to or following the
date on which such person acquires the replacement vehicle, such
person shall be liable for the payment of property tax with respect to the
replacement vehicle in the town in which the motor vehicle replaced is
subject to property tax pursuant to subdivision (4) of this subsection, on
the first day of January immediately succeeding such assessment year.
If a replacement vehicle is replaced by the owner of such replacement
vehicle prior to the first day of October next succeeding such assessment
year, the replacement vehicle shall be subject to property tax as
provided in this subdivision and such other motor vehicle replacing the Senate Bill No. 501
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replacement vehicle, or any motor vehicle replacing such other motor
vehicle in such assessment year, shall be deemed to be the replacement
vehicle for purposes of this subdivision.]
[(4)] (3) The property tax payable with respect to a replacement
vehicle described in subdivision (2) [or (3)] of this subsection shall be
the amount by which (A) is in excess of (B) as follows: (A) The property
tax which would be payable if the replacement vehicle had been entered
in the taxable list of the town in which the motor vehicle replaced is
subject to property tax on the first day of October in such assessment
year if such registration occurs prior to the first day of November,
however, if such registration occurs on or after the first day of
November but prior to the first day of October next succeeding, such tax
shall be a pro rata portion of the amount of tax payable if such motor
vehicle had been entered in the taxable list of such town on October first
in such assessment year to be determined by ratio, the numerator of
which shall be the number of months from the date of such registration,
including the month in which registration occurs, to the first day of
October next succeeding and the denominator of which shall be twelve,
provided if such person, on said first day of October, was entitled to any
exemption under section 12-81, as amended by this act, which was
allowed in the assessment of the motor vehicle replaced, such
exemption shall be allowed for purposes of determining the property
tax payable with respect to the replacement vehicle as provided herein;
(B) the property tax payable by such person with respect to the motor
vehicle replaced, provided if the replacement vehicle is registered
subsequent to the thirty-first day of October but prior to the first day of
October next succeeding such property tax payable with respect to the
motor vehicle replaced shall, for purposes of the computation herein, be
deemed to be a pro rata portion of such property tax to be prorated in
the same manner as the amount of tax determined under subparagraph
(A) [above] of this subdivision. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 19 of 140
(c) (1) For assessment years commencing prior to October 1, 2024, any
person who owns a commercial motor vehicle which has been
temporarily registered at any time during any assessment year and
which has not during such period been entered in the taxable list of any
town in the state for purposes of the property tax and with respect to
which no permanent registration has been issued during such period,
shall be liable for the payment of property tax with respect to such motor
vehicle in the town where such motor vehicle is subject to property tax
on the first day of January immediately following the end of such
assessment year, in an amount as hereinafter provided. The property tax
payable shall be in the amount which would be payable if such motor
vehicle had been entered in the taxable list of the town where such
motor vehicle is subject to property tax on the first day of October in
such assessment year.
(2) For assessment years commencing on or after October 1, 2024, any
person who owns a commercial motor vehicle which has been
temporarily registered at any time during any assessment year and
which has not during such period been entered in the taxable list of any
town in the state for purposes of the property tax and with respect to
which no permanent registration has been issued during such period,
shall be liable for the payment of property tax with respect to such motor
vehicle in the town where such motor vehicle is subject to property tax.
[on the first day of July of such assessment year or the first day of
January immediately following such assessment year, as applicable,
pursuant to subdivisions (2) and (3) of subsection (b) of this section.] The
property tax payable shall be in the amount which would be payable if
such motor vehicle had been entered in the taxable list of the town
where such motor vehicle is subject to property tax on the first day of
October in such assessment year.
(d) [Any] (1) For assessment years commencing prior to October 1,
2024, any motor vehicle subject to property tax as provided in this Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 20 of 140
section shall, except as otherwise provided in subsection (b) of this
section, be subject to such property tax in the town in which such motor
vehicle was last registered in the assessment year ending immediately
preceding the day on which such property tax is payable as provided in
this section.
(2) For assessment years commencing on or after October 1, 2024, any
motor vehicle subject to property tax as provided in this section shall,
except as otherwise provided in subsection (b) of this section, be subject
to property tax in the town in which such motor vehicle was first
registered in the assessment year.
(e) Whenever any motor vehicle subject to property tax as provided
in this section has been replaced by the owner with another motor
vehicle in the assessment year immediately preceding the day on which
such property tax is payable, each such motor vehicle shall be subject to
property tax as provided in this section.
(f) Upon receipt by the assessor in any town of notice from the
Commissioner of Motor Vehicles, in a manner as prescribed by said
commissioner, with respect to any motor vehicle subject to property tax
in accordance with the provisions of this section and [which] that has
not been entered in the taxable grand list of such town, such assessor
shall determine the value of such motor vehicle for purposes of property
tax assessment and shall, for assessment years commencing (1) prior to
October 1, 2024, add such value to the taxable grand list in such town
for the immediately preceding assessment date, and [the] (2) on or after
October 1, 2024, add such value to the taxable grand list in such town.
The tax thereon shall be levied and collected by the tax collector. Such
property tax shall be payable not later than the first day of [(1)] (A)
February following the first day of January on which the owner of such
motor vehicle becomes liable for the payment of property tax, for
assessment years commencing prior to October 1, 2024, and [(2)] (B) the
month succeeding the month in which such property tax became due Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 21 of 140
and payable, for assessment years commencing on or after October 1,
2024, with respect to such motor vehicle in accordance with the
provisions of this section, subject to any determination in accordance
with section 12-142 that such tax shall be due and payable in
installments. [Said]
(g) (1) For assessment years commencing prior to October 1, 2024,
said owner may appeal the assessment of such motor vehicle, as
determined by the assessor in accordance with [this] subsection (f) of
this section, to the board of assessment appeals next succeeding the date
on which the tax based on such assessment is payable, and thereafter, to
the Superior Court as provided in section 12-117a. If the amount of such
tax is reduced upon appeal, the portion thereof which has been paid in
excess of the amount determined to be due upon appeal shall be
refunded to said owner.
(2) For assessment years commencing on or after October 1, 2024, said
owner may appeal the determination of the manufacturer's suggested
retail price used to assess a motor vehicle to the board of assessment
appeals next succeeding the date on which the tax based on such
assessment is payable, and thereafter, to the Superior Court as provided
in section 12-117a. If the amount of such tax is reduced upon appeal, the
portion thereof which has been paid in excess of the amount determined
to be due upon appeal shall be refunded to said owner.
[(g)] (h) Any motor vehicle which is not registered in this state shall
be subject to property tax in this state if such motor vehicle in the normal
course of operation most frequently leaves from and returns to or
remains in one or more points within this state, and such motor vehicle
shall be subject to such property tax in the town within which such
motor vehicle in the normal course of operation most frequently leaves
from and returns to or remains, provided when the owner of such motor
vehicle is a resident in any town in the state, it shall be presumed that
such motor vehicle most frequently leaves from and returns to or Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 22 of 140
remains in such town unless evidence, satisfactory to the assessor in
such town, is submitted to the contrary.
Sec. 9. Subsection (b) of section 12-71c of the 2024 supplement to the
general statutes is repealed and the following is substituted in lieu
thereof (Effective July 1, 2024, and applicable to assessment years commencing
on or after October 1, 2024):
(b) Any person claiming a property tax credit with respect to a motor
vehicle in accordance with subsection (a) of this section shall file with
the assessor in the town in which such person is entitled to such
property tax credit, documentation satisfactory to the assessor
concerning the sale, total damage, theft or removal and registration of
such motor vehicle. [For assessment years commencing prior to October
1, 2024, such] Such documentation shall be filed not later than the thirty-
first day of December immediately following the end of the assessment
year which next follows the assessment year in which such motor
vehicle was sold, damaged, stolen or removed and registered. [For
assessment years commencing on or after October 1, 2024, such
documentation shall be filed not later than three years after the date
upon which such tax was due and payable for such motor vehicle.]
Failure to file such claim and documentation as prescribed herein shall
constitute a waiver of the right to such property tax credit.
Sec. 10. Subdivision (74) of section 12-81 of the 2024 supplement to
the general statutes is repealed and the following is substituted in lieu
thereof (Effective July 1, 2024, and applicable to assessment years commencing
on or after October 1, 2024):
(74) (A) (i) For a period not to exceed five assessment years following
the assessment year in which it is first registered, any new commercial
truck, truck tractor, tractor and semitrailer, and vehicle used in
combination therewith, which is used exclusively to transport freight for
hire and: Is either subject to the jurisdiction of the United States Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 23 of 140
Department of Transportation pursuant to Chapter 135 of Title 49,
United States Code, or any successor thereto, or would otherwise be
subject to said jurisdiction except for the fact that the vehicle is used
exclusively in intrastate commerce; has a gross vehicle weight rating in
excess of twenty-six thousand pounds; and prior to August 1, 1996, was
not registered in this state or in any other jurisdiction but was registered
in this state on or after said date. (ii) For a period not to exceed five
assessment years following the assessment year in which it is first
registered, any new commercial truck, truck tractor, tractor and
semitrailer, and vehicle used in combination therewith, not eligible
under subparagraph (A)(i) of this subdivision, that has a gross vehicle
weight rating in excess of fifty-five thousand pounds and was not
registered in this state or in any other jurisdiction but was registered in
this state on or after August 1, 1999. As used in this subdivision, "gross
vehicle weight rating" has the same meaning as provided in section 14-
1;
(B) Any person who on October first in any year holds title to or is
the registrant of a vehicle for which such person intends to claim the
exemption provided in this subdivision shall file with the assessor or
board of assessors in the municipality in which the vehicle is subject to
property taxation, on or before the first day of November in such year,
a written application claiming such exemption on a form prescribed by
the Secretary of the Office of Policy and Management. Such person shall
include information as to the make, model, year and vehicle
identification number of each such vehicle, and any appurtenances
attached thereto, in such application. The person holding title to or the
registrant of such vehicle for which exemption is claimed shall furnish
the assessor or board of assessors with such supporting documentation
as said secretary may require, including, but not limited to, evidence of
vehicle use, acquisition cost and registration. Failure to file such
application in this manner and form within the time limit prescribed
shall constitute a waiver of the right to such exemption for such Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 24 of 140
assessment year, unless an extension of time is allowed as provided in
section 12-81k. Such application shall not be required for any assessment
year following that for which the initial application is filed, provided if
the vehicle is modified, such modification shall be deemed a waiver of
the right to such exemption until a new application is filed and the right
to such exemption is established as required initially. With respect to
any vehicle for which the exemption under this subdivision has
previously been claimed in a town other than that in which the vehicle
is registered on any assessment date, the person shall not be entitled to
such exemption until a new application is filed and the right to such
exemption is established in said town;
(C) With respect to any vehicle which is not registered on the first day
of October in any assessment year and which is registered subsequent
to said first day of October [but prior to the first day of August] in such
assessment year, the value of such vehicle for property tax exemption
purposes shall be a pro rata portion of the value determined in
accordance with subparagraph (D) of this subdivision, to be determined
by a ratio, the numerator of which shall be the number of months from
the date of such registration, including the month in which registration
occurs, to the first day of October next succeeding and the denominator
of which shall be twelve. For purposes of this subdivision, "assessment
year" means the period of twelve full months commencing with October
first each year;
(D) For assessment years commencing prior to October 1, 2024,
notwithstanding the provisions of section 12-71d, as amended by this
act, the assessor or board of assessors shall determine the value for each
vehicle with respect to which a claim for exemption under this
subdivision is approved, based on the vehicle's cost of acquisition,
including costs related to the modification of such vehicle, adjusted for
depreciation;
(E) For assessment years commencing on or after October 1, 2024, the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 25 of 140
assessor or board of assessors shall determine the value for each vehicle,
with respect to which a claim for exemption under this subdivision is
approved, pursuant to the provisions of section 12-71d, as amended by
this act;
Sec. 11. Subsection (a) of section 7-152e of the general statutes is
repealed and the following is substituted in lieu thereof (Effective July 1,
2024):
(a) Notwithstanding any provision of the general statutes or special
act, municipal charter or ordinance, any municipality may, by ordinance
adopted by its legislative body, establish a fine to be imposed against
any owner of a motor vehicle that is subject to property tax in the
municipality pursuant to subsection [(g)] (h) of section 12-71b, as
amended by this act, who fails to register such motor vehicle with the
Commissioner of Motor Vehicles, provided (1) such motor vehicle is
eligible for registration and required to be registered under the
provisions of chapter 246, (2) such fine shall not be more than two
hundred fifty dollars, (3) any penalty for the failure to pay such fine by
a date prescribed by the municipality shall not be more than twenty-five
per cent of such fine, and (4) such fine shall be suspended for a first time
violator who presents proof of registration for such motor vehicle
subsequent to the violation but prior to the imposition of a fine.
Sec. 12. Subparagraph (B) of subdivision (7) of subsection (f) of
section 12-71 of the 2024 supplement to the general statutes is repealed
and the following is substituted in lieu thereof (Effective from passage):
(B) For assessment years commencing on or after October 1, 2024,
information concerning any vehicle subject to taxation in a town other
than the town in which it is registered may be included on any
declaration or report filed pursuant to section 12-41, as amended by this
act, 12-43 or 12-57a. If a motor vehicle is listed in a town in which it is
not subject to taxation, pursuant to the provisions of subdivision (5) of Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 26 of 140
this subsection, the assessor of the town in which such vehicle is listed
shall notify the assessor of the town in which such vehicle is [listed]
registered of the name and address of the owner of such motor vehicle,
the vehicle identification number and the town in which such vehicle is
taxed. The assessor of the town in which said vehicle is registered and
the assessor of the town in which said vehicle is listed shall cooperate in
administering the provisions of this section concerning the listing of
such vehicle for property tax purposes.
Sec. 13. Section 12-71e of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2025):
(a) Notwithstanding the provisions of any special act, municipal
charter or home rule ordinance, (1) for the assessment year commencing
October 1, 2016, the mill rate for motor vehicles shall not exceed 39 mills,
(2) for the assessment years commencing October 1, 2017, to October 1,
2020, inclusive, the mill rate for motor vehicles shall not exceed 45 mills,
and (3) for the assessment year commencing October 1, 2021, and each
assessment year thereafter, the mill rate for motor vehicles shall not
exceed 32.46 mills.
(b) Any municipality or district may establish a mill rate for motor
vehicles that is equal to or lower than 32.46 mills, including zero mills.
Such mill rate may be different from [its] the mill rate for real property
and personal property other than motor vehicles to comply with the
provisions of this section, provided the mill rate for motor vehicles is
lower than the mill rate for real property and personal property. No
district or borough may set a motor vehicle mill rate that if combined
with the motor vehicle mill rate of the town, city, consolidated town and
city or consolidated town and borough in which such district or
borough is located would result in a combined motor vehicle mill rate
(1) above 39 mills for the assessment year commencing October 1, 2016,
(2) above 45 mills for the assessment years commencing October 1, 2017,
to October 1, 2020, inclusive, or (3) above 32.46 mills for the assessment Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 27 of 140
year commencing October 1, 2021, and each assessment year thereafter.
(c) Notwithstanding the provisions of any special act, municipal
charter or home rule ordinance, a municipality or district that set a
motor vehicle mill rate prior to May 7, 2022, for the assessment year
commencing October 1, 2021, may, by vote of its legislative body, or if
the legislative body is a town meeting, the board of selectmen, revise
such mill rate to meet the requirements of this section, provided such
revision occurs not later than June 15, 2022.
(d) Notwithstanding the provisions of section 12-112, any board of
assessment appeals of a municipality that mailed or distributed, prior to
October 31, 2017, bills to taxpayers for motor vehicle property taxes
based on assessments made for the assessment year commencing
October 1, 2016, shall hear or entertain any appeals related to such
assessments not later than December 15, 2017.
(e) The Secretary of the Office of Policy and Management shall notify
the chief executive officer of each municipality:
(1) Annually, (A) of the municipality's option to reduce the mill rate
for motor vehicles to lower than 32.46 mills, including zero mills, and
(B) that such mill rate may be different from the mill rate for real
property and personal property other than motor vehicles to comply
with the provisions of this section, provided the mill rate for motor
vehicles is lower than the mill rate for real property and personal
property; and
(2) In advance of the implementation of a municipality's revaluation
pursuant to section 12-62, of the municipality's option to consider and
evaluate the reduction of the mill rate for motor vehicles in the same
fiscal year in which the revaluation is implemented.
[(e)] (f) For the purposes of this section, "municipality" means any
town, city, borough, consolidated town and city, consolidated town and Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 28 of 140
borough and "district" [means any district, as defined] has the same
meaning as provided in section 7-324.
Sec. 14. Section 36a-2 of the 2024 supplement to the general statutes
is repealed and the following is substituted in lieu thereof (Effective July
1, 2024):
As used in this title, unless the context otherwise requires:
(1) "Affiliate" of a person means any person controlling, controlled
by, or under common control with, that person;
(2) "Applicant" with respect to any license or approval provision
pursuant to this title means a person who applies for that license or
approval;
(3) "Automated teller machine" means a stationary or mobile device
that is unattended or equipped with a telephone or televideo device that
allows contact with bank personnel, including a satellite device but
excluding a [point of sale] point-of-sale terminal, at which banking
transactions, including, but not limited to, deposits, withdrawals,
advances, payments or transfers, may be conducted;
(4) "Bank" means a Connecticut bank or a federal bank;
(5) "Bank and trust company" means an institution chartered or
organized under the laws of this state as a bank and trust company;
(6) "Bank holding company" has the meaning given to that term in 12
USC Section 1841(a), as amended from time to time, except that the term
"bank", as used in 12 USC Section 1841(a), includes a bank or out-of-state
bank that functions solely in a trust or fiduciary capacity;
(7) "Capital and surplus" has the same meaning as provided in 12 CFR
1.2, as amended from time to time; Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 29 of 140
(8) "Capital stock" when used in conjunction with any bank or out-of-
state bank means a bank or out-of-state bank that is authorized to
accumulate funds through the issuance of its capital stock;
(9) "Client" means a beneficiary of a trust for whom the Connecticut
bank acts as trustee, a person for whom the Connecticut bank acts as
agent, custodian or bailee, or other person to whom a Connecticut bank
owes a duty or obligation under a trust or other account administered
by such Connecticut bank, regardless of whether such Connecticut bank
owes a fiduciary duty to the person;
(10) "Club deposit" means deposits to be received at regular intervals,
the whole amount deposited to be withdrawn by the owner or repaid
by the bank in not more than fifteen months from the date of the first
deposit, and upon which no interest or dividends need to be paid;
(11) "Commissioner" means the Banking Commissioner and, with
respect to any function of the commissioner, includes any person
authorized or designated by the commissioner to carry out that
function;
(12) "Company" means any corporation, joint stock company, trust,
association, partnership, limited partnership, unincorporated
organization, limited liability company or similar organization, but does
not include (A) any corporation the majority of the shares of which are
owned by the United States or by any state, or (B) any trust which by its
terms shall terminate within twenty-five years or not later than twenty-
one years and ten months after the death of beneficiaries living on the
effective date of the trust;
(13) "Connecticut bank" means a bank and trust company, savings
bank or savings and loan association chartered or organized under the
laws of this state;
(14) "Connecticut credit union" means a cooperative, nonprofit Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 30 of 140
financial institution that (A) is organized under chapter 667 and the
membership of which is limited as provided in section 36a-438a, (B)
operates for the benefit and general welfare of its members with the
earnings, benefits or services offered being distributed to or retained for
its members, and (C) is governed by a volunteer board of directors
elected by and from its membership;
(15) "Connecticut credit union service organization" means a credit
union service organization that is (A) incorporated under the laws of
this state, located in this state and established by at least one Connecticut
credit union, or (B) wholly owned by a credit union that converted into
a Connecticut credit union pursuant to section 36a-469b;
(16) "Consolidation" means a combination of two or more institutions
into a new institution; all institutions party to the consolidation, other
than the new institution, are "constituent" institutions; the new
institution is the "resulting" institution;
(17) "Control" has the meaning given to that term in 12 USC Section
1841(a), as amended from time to time;
(18) "Credit union service organization" means an entity organized
under state or federal law to provide credit union service organization
services primarily to its members, to Connecticut credit unions, federal
credit unions and out-of-state credit unions other than its members, and
to members of any such other credit unions;
(19) "Customer" means any person using a service offered by a
financial institution;
(20) "Demand account" means an account into which demand
deposits may be made;
(21) "Demand deposit" means a deposit that is payable on demand, a
deposit issued with an original maturity or required notice period of less Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 31 of 140
than seven days or a deposit representing funds for which the bank does
not reserve the right to require at least seven days' written notice of the
intended withdrawal, but does not include any time deposit;
(22) "Deposit" means funds deposited with a depository;
(23) "Deposit account" means an account into which deposits may be
made;
(24) "Depositor" includes a member of a mutual savings and loan
association;
(25) "Director" means a member of the governing board of a financial
institution;
(26) "Equity capital" means the excess of a Connecticut bank's total
assets over its total liabilities, as defined in the instructions of the federal
Financial Institutions Examination Council for consolidated reports of
condition and income;
(27) "Executive officer" means every officer of a Connecticut bank
who participates or has authority to participate, otherwise than in the
capacity of a director, in major policy-making functions of such bank,
regardless of whether such officer has an official title or whether that
title contains a designation of assistant and regardless of whether such
officer is serving without salary or other compensation. The president,
vice president, secretary and treasurer of such bank are deemed to be
executive officers, unless, by resolution of the governing board or by
such bank's bylaws, any such officer is excluded from participation in
major policy-making functions, otherwise than in the capacity of a
director of such bank, and such officer does not actually participate in
such policy-making functions;
(28) "Federal agency" has the meaning given to that term in 12 USC
Section 3101, as amended from time to time; Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 32 of 140
(29) "Federal bank" means a national banking association, federal
savings bank or federal savings and loan association having its principal
office in this state;
(30) "Federal branch" has the meaning given to that term in 12 USC
Section 3101, as amended from time to time;
(31) "Federal credit union" means any institution chartered or
organized as a federal credit union pursuant to the laws of the United
States having its principal office in this state;
(32) "Fiduciary" means a person undertaking to act alone or jointly
with others primarily for the benefit of another or others in all matters
connected with its undertaking and includes a person acting in the
capacity of trustee, executor, administrator, guardian, assignee,
receiver, conservator, agent, custodian under the Connecticut Uniform
Gifts to Minors Act or the Uniform Transfers to Minors Act, and acting
in any other similar capacity;
(33) "Financial institution" means any Connecticut bank, Connecticut
credit union, or other person whose activities in this state are subject to
the supervision of the commissioner, but does not include a person
whose activities are subject to the supervision of the commissioner
solely pursuant to chapter 672a, 672b or 672c or any combination
thereof;
(34) "Foreign bank" has the meaning given to that term in 12 USC
Section 3101, as amended from time to time;
(35) "Foreign country" means any country other than the United
States and includes any colony, dependency or possession of any such
country;
(36) "Governing board" means the group of persons vested with the
management of the affairs of a financial institution irrespective of the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 33 of 140
name by which such group is designated;
(37) "Holding company" means a bank holding company or a savings
and loan holding company, except, as used in sections 36a-180 to 36a-
191, inclusive, "holding company" means a company that controls a
bank;
(38) "Innovation bank" means a Connecticut bank that does not accept
retail deposits, but may accept nonretail deposits which are eligible for
insurance from the Federal Deposit Insurance Corporation or the
Federal Deposit Insurance Corporation's successor agency;
[(38)] (39) "Insured depository institution" has the meaning given to
that term in 12 USC Section 1813, as amended from time to time;
[(39)] (40) "Licensee" means any person who is licensed or required
to be licensed pursuant to the applicable provisions of this title;
[(40)] (41) "Loan" includes any line of credit or other extension of
credit;
[(41)] (42) "Loan production office" means an office of a bank or out-
of-state bank, other than a foreign bank, whose activities are limited to
loan production and solicitation;
[(42)] (43) "Merger" means the combination of one or more
institutions with another which continues its corporate existence; all
institutions party to the merger are "constituent" institutions; the
merging institution which upon the merger continues its existence is the
"resulting" institution;
[(43)] (44) "Mutual" when used in conjunction with any institution
that is a bank or out-of-state bank means any such institution without
capital stock;
[(44)] (45) "Mutual holding company" means a mutual holding Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 34 of 140
company organized under sections 36a-192 to 36a-199, inclusive, and
unless otherwise indicated, a subsidiary holding company controlled by
a mutual holding company organized under sections 36a-192 to 36a-199,
inclusive;
[(45)] (46) "Out-of-state" includes any state other than Connecticut
and any foreign country;
[(46)] (47) "Out-of-state bank" means any institution that engages in
the business of banking, but does not include a bank, Connecticut credit
union, federal credit union or out-of-state credit union;
[(47)] (48) "Out-of-state credit union" means any credit union other
than a Connecticut credit union or a federal credit union;
[(48)] (49) "Out-of-state trust company" means any company
chartered to act as a fiduciary but does not include a company chartered
under the laws of this state, a bank, an out-of-state bank, a Connecticut
credit union, a federal credit union or an out-of-state credit union;
[(49)] (50) "Person" means an individual, company, including a
company described in subparagraphs (A) and (B) of subdivision (12) of
this section, or any other legal entity, including a federal, state or
municipal government or agency or any political subdivision thereof;
[(50) "Point of sale terminal"] (51) "Point-of-sale terminal" means a
device located in a commercial establishment at which sales transactions
can be charged directly to the buyer's deposit, loan or credit account, but
at which deposit transactions cannot be conducted;
[(51)] (52) "Prepayment penalty" means any charge or penalty for
paying all or part of the outstanding balance owed on a loan before the
date on which the principal is due and includes computing a refund of
unearned interest by a method that is less favorable to the borrower than
the actuarial method, as defined by Section 933(d) of the Housing and Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 35 of 140
Community Development Act of 1992, 15 USC 1615(d), as amended
from time to time;
[(52)] (53) "Reorganized savings bank" means any savings bank
incorporated and organized in accordance with sections 36a-192 and
36a-193;
[(53)] (54) "Reorganized savings and loan association" means any
savings and loan association incorporated and organized in accordance
with sections 36a-192 and 36a-193;
[(54)] (55) "Reorganized savings institution" means any reorganized
savings bank or reorganized savings and loan association;
[(55)] (56) "Representative office" has the meaning given to that term
in 12 USC Section 3101, as amended from time to time;
[(56)] (57) "Reserves for loan and lease losses" means the amounts
reserved by a Connecticut bank against possible loan and lease losses as
shown on the bank's consolidated reports of condition and income;
[(57)] (58) "Retail deposits" means any deposits made by individuals
who are not "accredited investors", as defined in 17 CFR 230.501(a);
[(58)] (59) "Satellite device" means an automated teller machine which
is not part of an office of the bank, Connecticut credit union or federal
credit union which has established such machine;
[(59)] (60) "Savings account" means a deposit account, other than an
escrow account established pursuant to section 49-2a, into which
savings deposits may be made and which account must be evidenced
by periodic statements delivered at least semiannually or by a passbook;
[(60)] (61) "Savings and loan association" means an institution
chartered or organized under the laws of this state as a savings and loan
association; Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 36 of 140
[(61)] (62) "Savings bank" means an institution chartered or organized
under the laws of this state as a savings bank;
[(62)] (63) "Savings deposit" means any deposit other than a demand
deposit or time deposit on which interest or a dividend is paid
periodically;
[(63)] (64) "Savings and loan holding company" has the meaning
given to that term in 12 USC Section 1467a, as amended from time to
time;
[(64)] (65) "Share account holder" means a person who maintains a
share account in a Connecticut credit union, federal credit union or out-
of-state credit union that maintains in this state a branch, as defined in
section 36a-435b;
[(65)] (66) "State" means any state of the United States, the District of
Columbia, any territory of the United States, Puerto Rico, Guam,
American Samoa, the trust territory of the Pacific Islands, the Virgin
Islands and the Northern Mariana Islands;
[(66)] (67) "State agency" has the meaning given to that term in 12 USC
Section 3101, as amended from time to time;
[(67)] (68) "State branch" has the meaning given to that term in 12 USC
Section 3101, as amended from time to time;
[(68)] (69) "Subsidiary" has the meaning given to that term in 12 USC
Section 1841(d), as amended from time to time;
[(69)] (70) "Subsidiary holding company" means a stock holding
company, controlled by a mutual holding company, that holds one
hundred per cent of the stock of a reorganized savings institution;
[(70)] (71) "Supervisory agency" means: (A) The commissioner; (B) the
Federal Deposit Insurance Corporation; (C) the Resolution Trust Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 37 of 140
Corporation; (D) the Office of Thrift Supervision; (E) the National Credit
Union Administration; (F) the Board of Governors of the Federal
Reserve System; (G) the United States Comptroller of the Currency; (H)
the Bureau of Consumer Financial Protection; and (I) any successor to
any of the foregoing agencies or individuals;
[(71)] (72) "System" means the Nationwide Mortgage Licensing
System and Registry, NMLS, NMLSR or such other name or acronym as
may be assigned to the multistate system developed by the Conference
of State Bank Supervisors and the American Association of Residential
Mortgage Regulators and owned and operated by the State Regulatory
Registry, LLC, or any successor or affiliated entity, for the licensing and
registration of persons in the mortgage and other financial services
industries;
[(72)] (73) "Time account" means an account into which time deposits
may be made;
[(73)] (74) "Time deposit" means a deposit that the depositor or share
account holder does not have a right and is not permitted to make
withdrawals from within six days after the date of deposit, unless the
deposit is subject to an early withdrawal penalty of at least seven days'
simple interest on amounts withdrawn within the first six days after
deposit, subject to those exceptions permissible under 12 CFR Part 204,
as amended from time to time; and
[(74)] (75) "Trust bank" means a Connecticut bank organized to
function solely in a fiduciary capacity. [; and
(75) "Uninsured bank" means a Connecticut bank that does not accept
retail deposits and for which insurance of deposits by the Federal
Deposit Insurance Corporation or its successor agency is not required.]
Sec. 15. Subsection (e) of section 36a-65 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective July 1, Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 38 of 140
2024):
(e) (1) If the commissioner determines that the assessment to be
collected from an [uninsured] innovation bank or a trust bank pursuant
to subdivision (1) of subsection (a) of this section is unreasonably low or
high based on the size and risk profile of the bank, the commissioner
may require such bank to pay a fee in lieu of such assessment. Each such
bank shall pay such fee to the commissioner not later than the date
specified by the commissioner for payment. If payment of such fee is not
made by the time specified by the commissioner, such bank shall pay to
the commissioner an additional two hundred dollars.
(2) Any [uninsured] innovation bank required to pay a fee in lieu of
assessment shall also pay to the commissioner the actual cost of the
examination of such bank, as such cost is determined by the
commissioner.
Sec. 16. Subsections (n) to (u), inclusive, of section 36a-70 of the
general statutes are repealed and the following is substituted in lieu
thereof (Effective July 1, 2024):
(n) The Connecticut bank shall not commence business until: (1) A
final certificate of authority has been issued in accordance with
subsection (l) of this section, (2) except in the case of a trust bank, an
interim Connecticut bank organized pursuant to subsection (p) of this
section, or an [uninsured] innovation bank organized pursuant to
subsection (t) of this section, until its insurable accounts or deposits are
insured by the Federal Deposit Insurance Corporation or its successor
agency, and (3) it has complied with the requirements of subsection (u)
of this section, if applicable. The acceptance of subscriptions for deposits
by a mutual savings bank or mutual savings and loan association as may
be necessary to obtain insurance by the Federal Deposit Insurance
Corporation or its successor agency shall not be considered to be
commencing business. No Connecticut bank other than a trust bank Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 39 of 140
may exercise any of the fiduciary powers granted to Connecticut banks
by law until express authority therefor has been given by the
commissioner.
(o) Prior to the issuance of a final certificate of authority to commence
business in accordance with subsection (l) of this section, the
Connecticut bank shall pay to the State Treasurer a franchise tax,
together with a filing fee of twenty dollars for the required papers. The
franchise tax for a mutual savings bank and mutual savings and loan
association shall be thirty dollars. The franchise tax for all capital stock
Connecticut banks shall be one cent per share up to and including the
first ten thousand authorized shares, one-half cent per share for each
authorized share in excess of ten thousand shares up to and including
one hundred thousand shares, one-quarter cent per share for each
authorized share in excess of one hundred thousand shares up to and
including one million shares and one-fifth cent per share for each
authorized share in excess of one million shares.
(p) (1) One or more persons may organize an interim Connecticut
bank solely (A) for the acquisition of an existing bank, whether by
acquisition of stock, by acquisition of assets, or by merger or
consolidation, or (B) to facilitate any other corporate transaction
authorized by this title in which the commissioner has determined that
such transaction has adequate regulatory supervision to justify the
organization of an interim Connecticut bank. Such interim Connecticut
bank shall not accept deposits or otherwise commence business.
Subdivision (2) of subsection (c) and subsections (d), (f), (g), (h) and (o)
of this section shall not apply to the organization of an interim bank,
provided the commissioner may, in the commissioner's discretion,
order a hearing under subsection (e) or require that the organizers
publish or mail the proposed certificate of incorporation or both. The
approving authority for an interim Connecticut bank shall be the
commissioner acting alone. If the approving authority determines that Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 40 of 140
the organization of the interim Connecticut bank complies with
applicable law, the approving authority shall issue a temporary
certificate of authority conditioned on the approval by the appropriate
supervisory agency of the corporate transaction for which the interim
Connecticut bank is formed.
(2) (A) Notwithstanding any provision of this title, for the period
from June 13, 2011, to September 30, 2013, inclusive, one or more
persons may apply to the commissioner for the conditional preliminary
approval of one or more expedited Connecticut banks organized
primarily for the purpose of assuming liabilities and purchasing assets
from the Federal Deposit Insurance Corporation when the Federal
Deposit Insurance Corporation is acting as receiver or conservator of an
insured depository institution. The application shall be made on a form
acceptable to the commissioner and shall be executed and
acknowledged by the applicant or applicants. Such application shall
contain sufficient information for the commissioner to evaluate (i) the
amount, type and sources of capital that would be available to the bank
or banks; (ii) the ownership structure and holding companies, if any,
over the bank or banks; (iii) the identity, biographical information and
banking experience of each of the initial organizers and prospective
initial directors, senior executive officers and any individual, group or
proposed shareholders of the bank that will own or control ten per cent
or more of the stock of the bank or banks; (iv) the overall strategic plan
of the organizers and investors for the bank or banks; and (v) a
preliminary business plan outlining intended product and business
lines, retail branching plans and capital, earnings and liquidity
projections. The commissioner, acting alone, shall grant conditional
preliminary approval of such application to organize if the
commissioner determines that the organizers have available sufficient
committed funds to invest in the bank or banks; the organizers and
proposed directors possess capacity and fitness for the duties and
responsibilities with which they will be charged; the proposed bank or Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 41 of 140
banks have a reasonable chance of success and will be operated in a safe
and sound manner; and the fee for investigating and processing the
application has been paid in accordance with subparagraph (H) of
subdivision (1) of subsection (d) of section 36a-65. Such preliminary
approval shall be subject to such conditions as the commissioner deems
appropriate, including the requirements that the bank or banks not
commence the business of a Connecticut bank until after their bid or
application for a particular insured depository institution is accepted by
the Federal Deposit Insurance Corporation, that the background checks
are satisfactory, and that the organizers submit, for the safety and
soundness review by the commissioner, more detailed operating plans
and current financial statements as potential acquisition transactions are
considered, and such plans and statements are satisfactory to the
commissioner. The commissioner may alter, suspend or revoke the
conditional preliminary approval if the commissioner deems any
interim development warrants such action. The conditional preliminary
approval shall expire eighteen months from the date of approval, unless
extended by the commissioner.
(B) The commissioner shall not issue a final certificate of authority to
commence the business of a Connecticut bank or banks under this
subdivision until all conditions and preopening requirements and
applicable state and federal regulatory requirements have been met and
the fee for issuance of a final certificate of authority for an expedited
Connecticut bank has been paid in accordance with subparagraph (M)
of subdivision (1) of subsection (d) of section 36a-65. The commissioner
may waive any requirement under this title or regulations adopted
under this title that is necessary for the consummation of an acquisition
involving an expedited Connecticut bank if the commissioner finds that
such waiver is advisable and in the interest of depositors or the public,
provided the commissioner shall not waive the requirement that the
institution's insurable accounts or deposits be federally insured. Any
such waiver granted by the commissioner under this subparagraph Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 42 of 140
shall be in writing and shall set forth the reason or reasons for the
waiver. The commissioner may impose conditions on the final certificate
of authority as the commissioner deems necessary to ensure that the
bank will be operated in a safe and sound manner. The commissioner
shall cause notice of the issuance of the final certificate of authority to be
published in the department's weekly bulletin.
(q) (1) As used in this subsection, "bankers' bank" means a
Connecticut bank that is (A) owned exclusively by (i) any combination
of banks, out-of-state banks, Connecticut credit unions, federal credit
unions, or out-of-state credit unions, or (ii) a bank holding company that
is owned exclusively by any such combination, and (B) engaged
exclusively in providing services for, or that indirectly benefit, other
banks, out-of-state banks, Connecticut credit unions, federal credit
unions, or out-of-state credit unions and their directors, officers and
employees.
(2) One or more persons may organize a bankers' bank in accordance
with the provisions of this section, except that subsections (g) and (h) of
this section shall not apply. The approving authority for a bankers' bank
shall be the commissioner acting alone. Before granting a temporary
certificate of authority in the case of an application to organize a
bankers' bank, the approving authority shall consider (A) whether the
proposed bankers' bank will facilitate the provision of services that such
banks, out-of-state banks, Connecticut credit unions, federal credit
unions, or out-of-state credit unions would not otherwise be able to
readily obtain, and (B) the character and experience of the proposed
directors and officers. The application to organize a bankers' bank shall
be approved if the approving authority determines that the interest of
the public will be directly or indirectly served to advantage by the
establishment of the proposed bankers' bank, and the proposed
directors possess capacity and fitness for the duties and responsibilities
with which they will be charged. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 43 of 140
(3) A bankers' bank shall have all of the powers of and be subject to
all of the requirements applicable to a Connecticut bank under this title
which are not inconsistent with this subsection, except to the extent the
commissioner limits such powers by regulation. Upon the written
request of a bankers' bank, the commissioner may waive specific
requirements of this title and the regulations adopted thereunder if the
commissioner finds that (A) the requirement pertains primarily to banks
that provide retail or consumer banking services and is inconsistent
with this subsection, and (B) the requirement may impede the ability of
the bankers' bank to compete or to provide desired services to its market
provided, any such waiver and the commissioner's findings shall be in
writing and shall be made available for public inspection.
(4) The commissioner may adopt regulations, in accordance with
chapter 54, to administer the provisions of this subsection.
(r) (1) As used in this subsection and section 36a-139, "community
bank" means a Connecticut bank that is organized pursuant to this
subsection and is subject to the provisions of this subsection and section
36a-139.
(2) One or more persons may organize a community bank in
accordance with the provisions of this section, except that subsection (g)
of this section shall not apply. Any such community bank shall
commence business with a minimum equity capital of at least three
million dollars. The approving authority for a community bank shall be
the commissioner acting alone. In addition to the considerations and
determinations required by subsection (h) of this section, before
granting a temporary certificate of authority to organize a community
bank, the approving authority shall determine that (A) each of the
proposed directors and proposed executive officers, as defined in
subparagraph (D) of subdivision (3) of this subsection, possesses
capacity and fitness for the duties and responsibilities with which such
director or officer will be charged, and (B) there is satisfactory Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 44 of 140
community support for the proposed community bank based on
evidence of such support provided by the organizers to the approving
authority. If the approving authority cannot make such determination
with respect to any such proposed director or proposed executive
officer, the approving authority may refuse to allow such proposed
director or proposed executive officer to serve in such capacity in the
proposed community bank.
(3) A community bank shall have all of the powers of and be subject
to all of the requirements and limitations applicable to a Connecticut
bank under this title which are not inconsistent with this subsection,
except: (A) No community bank may (i) exercise any of the fiduciary
powers granted to Connecticut banks by law until express authority
therefor has been given by the approving authority, (ii) establish and
maintain one or more mutual funds, (iii) invest in derivative securities
other than mortgage-backed securities fully guaranteed by
governmental agencies or government sponsored agencies, (iv) own
any real estate for the present or future use of the bank unless the
approving authority finds, based on an independently prepared
analysis of costs and benefits, that it would be less costly to the bank to
own instead of lease such real estate, or (v) make mortgage loans
secured by nonresidential real estate the aggregate amount of which, at
the time of origination, exceeds ten per cent of all assets of such bank;
(B) the aggregate amount of all loans made by a community bank shall
not exceed eighty per cent of the total deposits held by such bank; (C) (i)
the total direct or indirect liabilities of any one obligor, whether or not
fully secured and however incurred, to any community bank, exclusive
of such bank's investment in the investment securities of such obligor,
shall not exceed at the time incurred ten per cent of the equity capital
and reserves for loan and lease losses of such bank, and (ii) the
limitations set forth in subsection (a) of section 36a-262 shall apply to
this subparagraph; and (D) the limitations set forth in subsection (a) of
section 36a-263 shall apply to all community banks, provided, a Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 45 of 140
community bank may (i) make a mortgage loan to any director or
executive officer secured by premises occupied or to be occupied by
such director or officer as a primary residence, (ii) make an educational
loan to any director or executive officer for the education of any child of
such director or executive officer, and (iii) extend credit to any director
or executive officer in an amount not exceeding ten thousand dollars for
extensions of credit not otherwise specifically authorized in this
subparagraph. The aggregate amount of all loans or extensions of credit
made by a community bank pursuant to this subparagraph shall not
exceed thirty-three and one-third per cent of the equity capital and
reserves for loan and lease losses of such bank. As used in this
subparagraph, "executive officer" means every officer of a community
bank who participates or has authority to participate, other than in the
capacity of a director, in major policy-making functions of the bank,
regardless of whether such officer has an official title or whether such
officer serves without salary or other compensation. The vice president,
chief financial officer, secretary and treasurer of a community bank are
presumed to be executive officers unless, by resolution of the governing
board or by the bank's bylaws, any such officer is excluded from
participation in major policy-making functions, other than in the
capacity of a director of the bank, and such officer does not actually
participate in major policy-making functions.
(4) The audit and examination requirements set forth in section 36a-
86 shall apply to each community bank.
(5) The commissioner may adopt regulations, in accordance with
chapter 54, to administer the provisions of this subsection and section
36a-139.
(s) (1) As used in this subsection, "community development bank"
means a Connecticut bank that is organized to serve the banking needs
of a well-defined neighborhood, community or other geographic area as
determined by the commissioner, primarily, but not exclusively, by Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 46 of 140
making commercial loans in amounts of one hundred fifty thousand
dollars or less to existing businesses or to persons seeking to establish
businesses located within such neighborhood, community or
geographic area.
(2) One or more persons may organize a community development
bank in accordance with the provisions of this section, except that
subsection (g) of this section shall not apply. The approving authority
for a community development bank shall be the commissioner acting
alone. Any such community development bank shall commence
business with a minimum equity capital determined by the
commissioner to be appropriate for the proposed activities of such bank,
provided, if such proposed activities include accepting deposits, such
minimum equity capital shall be sufficient to enable such deposits to be
insured by the Federal Deposit Insurance Corporation or its successor
agency.
(3) The state, acting through the State Treasurer, may be the sole
organizer of a community development bank or may participate with
any other person or persons in the organization of any community
development bank, and may own all or a part of any capital stock of
such bank. No application fee shall be required under subparagraph (H)
of subdivision (1) of subsection (d) of section 36a-65 and no franchise tax
shall be required under subsection (o) of this section for any community
development bank organized by or in participation with the state.
(4) In addition to the considerations and determinations required by
subsection (h) of this section, before granting a temporary certificate of
authority to organize a community development bank, the approving
authority shall determine that (A) each of the proposed directors and
proposed executive officers possesses capacity and fitness for the duties
and responsibilities with which such director or officer will be charged,
and (B) there is satisfactory community support for the proposed
community development bank based on evidence of such support Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 47 of 140
provided by the organizers to the approving authority. If the approving
authority cannot make such determination with respect to any such
proposed director or proposed executive officer, the approving
authority may refuse to allow such proposed director or proposed
executive officer to serve in such capacity in the proposed community
development bank. As used in this subdivision, "executive officer"
means every officer of a community development bank who
participates or has authority to participate, other than in the capacity of
a director, in major policy-making functions of the bank, regardless of
whether such officer has an official title or whether such officer serves
without salary or other compensation. The vice president, chief financial
officer, secretary and treasurer of a community development bank are
presumed to be executive officers unless, by resolution of the governing
board or by the bank's bylaws, any such officer is excluded from
participation in major policy-making functions, other than in the
capacity of a director of the bank, and such officer does not actually
participate in major policy-making functions.
(5) Notwithstanding any contrary provision of this title: (A) The
commissioner may limit the powers that may be exercised by a
community development bank or impose conditions on the exercise by
such bank of any power allowed by this title as the commissioner deems
necessary in the interest of the public and for the safety and soundness
of the community development bank, provided, any such limitations or
conditions, or both, shall be set forth in the final certificate of authority
issued in accordance with subsection (l) of this section; and (B) the
commissioner may waive in writing any requirement imposed on a
community development bank under this title or any regulation
adopted under this title if the commissioner finds that such requirement
is inconsistent with the powers that may be exercised by such
community development bank under its final certificate of authority.
(6) The commissioner may adopt regulations, in accordance with Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 48 of 140
chapter 54, to carry out the provisions of this subsection.
(t) (1) One or more persons may organize an [uninsured] innovation
bank in accordance with the provisions of this section, except that
subsection (g) of this section shall not apply. The approving authority
for an [uninsured] innovation bank shall be the commissioner acting
alone. Any such [uninsured] innovation bank shall commence business
with a minimum equity capital of at least five million dollars unless the
commissioner establishes a different minimum capital requirement for
such [uninsured] innovation bank based upon its proposed activities.
(2) An [uninsured] innovation bank shall have all of the powers of
and be subject to all of the requirements and limitations applicable to a
Connecticut bank under this title which are not inconsistent with this
subsection, except no [uninsured] innovation bank may accept retail
deposits and, notwithstanding any provision of this title, sections 36a-
30 to 36a-34, inclusive, do not apply to [uninsured] innovation banks.
(3) (A) An [uninsured] innovation bank shall display conspicuously,
at each window or other place where deposits are usually accepted, a
sign stating that deposits are not insured by the Federal Deposit
Insurance Corporation or its successor agency.
(B) An [uninsured] innovation bank shall either (i) include in boldface
conspicuous type on each signature card, passbook, and instrument
evidencing a deposit the following statement: "This deposit is not
insured by the FDIC", or (ii) require each depositor to execute a
statement that acknowledges that the initial deposit and all future
deposits at the [uninsured] innovation bank are not insured by the
Federal Deposit Insurance Corporation or its successor agency. The
[uninsured] innovation bank shall retain such acknowledgment as long
as the depositor maintains any deposit with the [uninsured] innovation
bank. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 49 of 140
(C) An [uninsured] innovation bank shall include on all of its deposit-
related advertising a conspicuous statement that deposits are not
insured by the Federal Deposit Insurance Corporation or its successor
agency.
(4) Notwithstanding any provision of this title, an innovation bank
may accept and hold nonretail deposits, including, but not limited to,
nonretail deposits received from a corporation that owns the majority of
the shares of the innovation bank. An innovation bank may secure
deposit insurance for such nonretail deposits, including from the
Federal Deposit Insurance Corporation.
(u) (1) Each trust bank and [uninsured] innovation bank shall keep
assets on deposit in the amount of at least one million dollars with such
banks as the commissioner may approve, provided a trust bank or
[uninsured] innovation bank that received its final certificate of
authority prior to May 12, 2004, shall keep assets on deposit as follows:
At least two hundred fifty thousand dollars no later than one year from
May 12, 2004, at least five hundred thousand dollars no later than two
years from said date, at least seven hundred fifty thousand dollars no
later than three years from said date and at least one million dollars no
later than four years from said date. No trust bank or [uninsured]
innovation bank shall make a deposit pursuant to this section until the
bank at which the assets are to be deposited and the trust bank or
[uninsured] innovation bank shall have executed a deposit agreement
satisfactory to the commissioner. The value of such assets shall be based
upon the principal amount or market value, whichever is lower. If the
commissioner determines that an asset that otherwise qualifies under
this section shall be valued at less than the amount otherwise provided
in this subdivision, the commissioner shall so notify the trust bank or
[uninsured] innovation bank, which shall thereafter value such asset as
directed by the commissioner.
(2) As used in this subsection, "assets" means: (A) United States dollar Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 50 of 140
deposits payable in the United States, other than certificates of deposit;
(B) bonds, notes, debentures or other obligations of the United States or
any agency or instrumentality thereof, or guaranteed by the United
States, or of this state or of a county, city, town, village, school district,
or instrumentality of this state or guaranteed by this state; (C) bonds,
notes, debentures or other obligations issued by the Federal Home Loan
Mortgage Corporation and the Federal National Mortgage Corporation;
(D) commercial paper payable in dollars in the United States, provided
such paper is rated in one of the three highest rating categories by a
rating service recognized by the commissioner. In the event that an issue
of commercial paper is rated by more than one recognized rating
service, it shall be rated in one of the three highest rating categories by
each such rating service; (E) negotiable certificates of deposit that are
payable in the United States; (F) reserves held at a federal reserve bank;
and (G) such other assets as determined by the commissioner upon
written application.
Sec. 17. Subsections (a) to (h), inclusive, of section 36a-139a of the
general statutes are repealed and the following is substituted in lieu
thereof (Effective July 1, 2024):
(a) Any [uninsured] innovation bank or any trust bank may, upon the
approval of the commissioner, convert to a Connecticut bank that is
authorized to accept retail deposits and operate without the limitations
provided in subdivisions (2) and (3) of subsection (t) and subsection (u)
of section 36a-70, as amended by this act, and subsection (b) of section
36a-250.
(b) The converting bank shall file with the commissioner a proposed
plan of conversion, a copy of the proposed amended certificate of
incorporation and a certificate by the secretary of the converting bank
that the proposed plan of conversion and proposed amended certificate
of incorporation have been approved in accordance with subsection (c)
of this section. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 51 of 140
(c) The proposed plan of conversion and proposed amended
certificate of incorporation shall require the approval of a majority of the
governing board of the converting bank and the favorable vote of not
less than two-thirds of the holders of each class of the converting
[bank’s] bank's capital stock, if any, or in the case of a converting mutual
bank, the corporators thereof, cast at a meeting called to consider such
conversion.
(d) Any shareholder of a capital stock Connecticut bank that proposes
to convert under this section, who, on or before the date of the
[shareholders’] shareholders' meeting to vote on such conversion,
objects to the conversion by filing a written objection with the secretary
of such bank may, within ten days after the effective date of such
conversion, make written demand upon the bank for payment of such
shareholder's stock. Any such shareholder that makes such objection
and demand shall have the same rights as those of a shareholder that
asserts appraisal rights with respect to the merger of two or more capital
stock Connecticut banks.
(e) The commissioner shall approve a conversion under this section
if the commissioner determines that: (1) The converting bank has
complied with all applicable provisions of law; (2) the converting bank
has equity capital of at least five million dollars; (3) the converting bank
has received satisfactory ratings on its most recent safety and soundness
examination; (4) the proposed conversion will serve the public necessity
and convenience; and (5) the converting bank will provide adequate
services to meet the banking needs of all community residents,
including low-income residents and moderate-income residents to the
extent permitted by its charter, in accordance with a plan submitted by
the converting bank to the commissioner, in such form and containing
such information as the commissioner may require. Upon receiving any
such plan, the commissioner shall make the plan available for public
inspection and comment at the Department of Banking and cause notice Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 52 of 140
of its submission and availability for inspection and comment to be
published in the department's weekly bulletin. With the concurrence of
the commissioner, the converting bank shall publish, in the form of a
legal advertisement in a newspaper having a substantial circulation in
the area, notice of such plan's submission and availability for public
inspection and comment. The notice shall state that the inspection and
comment period will last for a period of thirty days from the date of
publication. The commissioner shall not make such determination until
the expiration of the thirty-day period. In making such determination,
the commissioner shall, unless clearly inapplicable, consider, among
other factors, whether the plan identifies specific unmet credit and
consumer banking needs in the local community and specifies how such
needs will be satisfied, provides for sufficient distribution of banking
services among branches or satellite devices, or both, located in low-
income neighborhoods, contains adequate assurances that banking
services will be offered on a nondiscriminatory basis and demonstrates
a commitment to extend credit for housing, small business and
consumer purposes in low-income neighborhoods.
(f) After receipt of the commissioner's approval, the converting bank
shall promptly file such approval and its amended certificate of
incorporation with the Secretary of the State and with the town clerk of
the town in which its principal office is located. Upon such filing, the
bank shall cease to be an [uninsured] innovation bank subject to the
provisions of subdivisions (2) and (3) of subsection (t) and subsection
(u) of section 36a-70, as amended by this act, or a trust bank, subject to
the limitations provided in subsection (u) of section 36a-70, as amended
by this act, and subsection (b) of section 36a-250, and shall be a
Connecticut bank subject to all of the requirements and limitations and
possessed of all rights, privileges and powers granted to it by its
amended certificate of incorporation and by the provisions of the
general statutes applicable to its type of Connecticut bank. Such
Connecticut bank shall not commence business unless its insurable Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 53 of 140
accounts and deposits are insured by the Federal Deposit Insurance
Corporation or its successor agency. Upon such filing with the Secretary
of the State and with the town clerk, all of the assets, business and good
will of the converting bank shall be transferred to and vested in such
Connecticut bank without any deed or instrument of conveyance,
provided the converting bank may execute any deed or instrument of
conveyance as is convenient to confirm such transfer. Such Connecticut
bank shall be subject to all of the duties, relations, obligations, trusts and
liabilities of the converting bank, whether as debtor, depository,
registrar, transfer agent, executor, administrator or otherwise, and shall
be liable to pay and discharge all such debts and liabilities, and to
perform all such duties in the same manner and to the same extent as if
the Connecticut bank had itself incurred the obligation or liability or
assumed the duty or relation. All rights of creditors of the converting
bank and all liens upon the property of such bank shall be preserved
unimpaired and the Connecticut bank shall be entitled to receive,
accept, collect, hold and enjoy any and all gifts, bequests, devises,
conveyances, trusts and appointments in favor of or in the name of the
converting bank and whether made or created to take effect prior to or
after the conversion.
(g) The persons named as directors in the amended certificate of
incorporation shall be the directors of such Connecticut bank until the
first annual election of directors after the conversion or until the
expiration of their terms as directors, and shall have the power to take
all necessary actions and to adopt bylaws concerning the business and
management of such Connecticut bank.
(h) No such Connecticut bank resulting from the conversion of an
[uninsured] innovation bank may exercise any of the fiduciary powers
granted to Connecticut banks by law until express authority therefor has
been given by the commissioner, unless such authority was previously
granted to the converting bank. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 54 of 140
Sec. 18. Subsections (a) to (g), inclusive, of section 36a-139b of the
general statutes are repealed and the following is substituted in lieu
thereof (Effective July 1, 2024):
(a) Any Connecticut bank may, upon the approval of the
commissioner, convert to an [uninsured] innovation bank.
(b) The converting bank shall file with the commissioner a proposed
plan of conversion, a copy of the proposed amended certificate of
incorporation and a certificate by the secretary of the converting bank
that the proposed plan of conversion and proposed certificate of
incorporation have been approved in accordance with subsection (c) of
this section.
(c) The proposed plan of conversion and proposed amended
certificate of incorporation shall require the approval of a majority of the
governing board of the converting bank and the favorable vote of not
less than two-thirds of the holders of each class of the [bank’s] bank's
capital stock, if any, or, in the case of a mutual bank, the corporators
thereof, cast at a meeting called to consider such conversion.
(d) Any shareholder of a converting capital stock Connecticut bank
that proposes to convert to an [uninsured] innovation bank who, on or
before the date of the [shareholders’] shareholders' meeting to vote on
such conversion, objects to the conversion by filing a written objection
with the secretary of such bank may, within ten days after the effective
date of such conversion, make written demand upon the converted bank
for payment of such [shareholder’s] shareholder's stock. Any such
shareholder that makes such objection and demand shall have the same
rights as those of a shareholder who dissents from the merger of two or
more capital stock Connecticut banks.
(e) If applicable, a converting Connecticut bank shall liquidate all of
its retail deposits with the approval of the commissioner. The converting Senate Bill No. 501
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bank shall file with the commissioner a written notice of its intent to
liquidate all of its retail deposits together with a plan of liquidation and
a proposed notice to depositors approved and executed by a majority of
its governing board. The commissioner shall approve the plan and the
notice to depositors. The commissioner shall not approve a sale of the
retail deposits of the converting bank if the purchasing insured
depository institution, including all insured depository institutions
which are affiliates of such institution, upon consummation of the sale,
would control thirty per cent or more of the total amount of deposits of
insured depository institutions in this state, unless the commissioner
permits a greater percentage of such deposits. The converting and
purchasing institutions shall file with the commissioner a written
agreement approved and executed by a majority of the governing board
of each institution prescribing the terms and conditions of the
transaction.
(f) The commissioner shall approve a conversion under this section if
the commissioner determines that: (1) The converting bank has
complied with all applicable provisions of law; (2) the converting bank
has equity capital of at least five million dollars unless the commissioner
establishes a different minimum capital requirement based on the
proposed activities of the converting bank; (3) the converting bank has
liquidated all of its retail deposits, if any, and has no deposits that are
insured by the Federal Deposit Insurance Corporation or its successor
agency; and (4) the proposed conversion will serve the public necessity
and convenience. The commissioner shall not approve such conversion
unless the commissioner considers the findings of the most recent state
or federal safety and soundness examination of the converting bank,
and the effect of the proposed conversion on the financial resources and
future prospects of the converting bank.
(g) After receipt of the [commissioner’s] commissioner's approval for
the conversion, the converting bank shall promptly file such approval Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 56 of 140
and its certificate of incorporation with the Secretary of the State and
with the town clerk of the town in which its principal office is located.
Upon such filing, the converted Connecticut bank shall not accept retail
deposits and shall be an [uninsured] innovation bank, subject to the
limitations in subdivisions (2) and (3) of subsection (t) and subsection
(u) of section 36a-70, as amended by this act. Upon such conversion, the
converted Connecticut bank possesses all of the rights, privileges and
powers granted to it by its certificate of incorporation and by the
provisions of the general statutes applicable to its type of Connecticut
bank, and all of the assets, business and good will of the converting bank
shall be transferred to and vested in the converted Connecticut bank
without any deed or instrument of conveyance, provided the converting
bank may execute any deed or instrument of conveyance as is
convenient to confirm such transfer. The converted Connecticut bank
shall be subject to all of the duties, relations, obligations, trusts and
liabilities of the converting bank, whether as debtor, depository,
registrar, transfer agent, executor, administrator or otherwise, and shall
be liable to pay and discharge all such debts and liabilities, and to
perform all such duties in the same manner and to the same extent as if
the converted bank had itself incurred the obligation or liability or
assumed the duty or relation. All rights of creditors of the converting
bank and all liens upon the property of such bank shall be preserved
unimpaired and the [uninsured] innovation bank shall be entitled to
receive, accept, collect, hold and enjoy any and all gifts, bequests,
devises, conveyances, trusts and appointments in favor of or in the
name of the converting bank and whether made or created to take effect
prior to or after the conversion.
Sec. 19. Section 36a-215 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
If, in the opinion of the commissioner, a trust bank, or an [uninsured]
innovation bank, in danger of becoming insolvent, is not likely to be able Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 57 of 140
to meet the demands of its depositors, in the case of an [uninsured]
innovation bank, or pay its obligations in the normal course of business,
or is likely to incur losses that may deplete all or substantially all of its
capital, the commissioner may require such trust bank or [uninsured]
innovation bank to increase the assets kept on deposit as required by
subsection (u) of section 36a-70, as amended by this act, to an amount
that would be sufficient to meet the costs and expenses incurred by the
commissioner pursuant to section 36a-222 and all fees and assessments
due the commissioner. Such assets shall be deposited with such bank as
the commissioner may designate, and shall be in such form and subject
to such conditions as the commissioner deems necessary.
Sec. 20. Subsection (a) of section 36a-220 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective July 1,
2024):
(a) If it appears to the commissioner that (1) the charter of any
Connecticut bank or out-of-state bank that maintains in this state a
branch, as defined in section 36a-410, or the certificate of authority of
any Connecticut credit union or out-of-state credit union that maintains
in this state a branch, as defined in section 36a-435b, is forfeited, (2) the
public is in danger of being defrauded by such bank or credit union, it
is unsafe or unsound for such bank or credit union to continue business
or its assets are being dissipated, (3) such bank or credit union is
insolvent, is in danger of imminent insolvency or that its capital is not
adequate to support the level of risk, or (4) the Federal Deposit
Insurance Corporation, National Credit Union Administration or their
successor agencies have terminated insurance of the insurable accounts
or deposits of such bank, unless such Connecticut bank has filed an
application with the commissioner to convert to an [uninsured]
innovation bank pursuant to section 36a-139b, as amended by this act,
or credit union, the commissioner shall apply to the superior court for
the judicial district of Hartford or the judicial district in which the main Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 58 of 140
office of such bank or credit union is located for an injunction restraining
such bank or credit union from conducting business or, in the case of a
Connecticut bank or Connecticut credit union, for the appointment of a
conservator or for a receiver to wind up its affairs.
Sec. 21. Subsections (a) to (c), inclusive, of section 36a-221a of the
general statutes are repealed and the following is substituted in lieu
thereof (Effective July 1, 2024):
(a) (1) The receiver of a trust bank or [uninsured] innovation bank
shall, as soon after the receiver's appointment as is practicable,
terminate all fiduciary positions the bank holds, surrender all property
held by the bank as a fiduciary and settle the fiduciary accounts. With
the approval of the Superior Court, the receiver of a trust bank or
[uninsured] innovation bank shall release all segregated and identifiable
fiduciary property held by the bank to one or more successor fiduciaries,
and may sell one or more fiduciary accounts to one or more successor
fiduciaries on terms that appear to be in the best interest of the bank's
estate and the persons interested in the property or fiduciary accounts.
(2) Upon the sale or transfer of fiduciary property or a fiduciary
account, the successor fiduciary shall be automatically substituted
without further action and without any order of any court. Prior to the
effective date of substitution of the successor fiduciary, the receiver shall
mail notice of such substitution to each person to whom such bank
provides periodic reports of fiduciary activity. The notice shall include:
(A) The name of such bank, (B) the name of the successor fiduciary, and
(C) the effective date of the substitution of the successor fiduciary. The
provisions of section 45a-245a shall not apply to the substitution of a
fiduciary under this section.
(b) A successor fiduciary shall have all of the rights, powers, duties
and obligations of such bank and shall be deemed to be named,
nominated or appointed as fiduciary in any will, trust, court order or Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 59 of 140
similar written document or instrument that names, nominates or
appoints such bank as fiduciary, whether executed before or after the
successor fiduciary is substituted, provided the successor fiduciary shall
have no obligations or liabilities under this section for any acts, actions,
inactions or events occurring prior to the effective date of the
substitution.
(c) If commingled fiduciary money held by the trust bank or
[uninsured] innovation bank as trustee is insufficient to satisfy all
fiduciary claims to the commingled money, the receiver shall distribute
such money pro rata to all fiduciary claimants of such money based on
their proportionate interest.
Sec. 22. Section 36a-225 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
(a) The Superior Court, upon appointing a receiver of any
Connecticut bank, other than a trust bank or an [uninsured] innovation
bank, or Connecticut credit union, shall limit the time within which all
claims against the bank or credit union may be presented to the receiver,
and the court may, upon cause shown, extend such time and shall cause
such public notice of such limitation or extension of time to be given as
it deems reasonable and just. All claims not presented to the receiver
within the period limited shall be forever barred, except that any claim
for a deposit or share account, as shown by the depositor's or share
account holder's passbook, certificate of deposit, statement or other
evidence of deposit or the records of such bank or credit union, shall be
allowed by the receiver.
(b) (1) As soon as reasonably practicable after appointment of a
receiver of a trust bank or an [uninsured] innovation bank, the receiver
shall publish notice, in a newspaper of general circulation in each town
in which an office of such bank is located, stating that: (A) The bank has
been placed in receivership; (B) the depositors, clients and creditors are Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 60 of 140
required to present their claims for payment on or before a specific date
and at a specified place; and (C) all safe deposit box holders and bailors
of property left with the bank are required to remove their property no
later than a specified date. The dates that the receiver selects may not be
earlier than the one hundred twenty-first day after the date of the notice,
and shall allow: (i) The affairs of the bank to be wound up as quickly as
feasible; and (ii) depositors, clients, creditors, safe deposit box holders
and bailors of property adequate time for presentation of claims,
withdrawal of accounts, and redemption of property. The receiver may
adjust the dates with the approval of the court and with or without
republication of notice if the receiver determines that additional time is
needed for any such presentation, withdrawal or redemption.
(2) As soon as reasonably practicable, given the state of the [bank’s]
bank's records and the adequacy of staffing, the receiver shall mail to
each of the [bank’s] bank's known depositors, clients, creditors, safe
deposit box holders and bailors of property left with the bank, at the
mailing address shown on the [bank’s] bank's records, an individual
notice containing the information required in the notice provided in
subdivision (1) of this subsection, and specific information pertinent to
the account or property of the addressee. The receiver of a trust bank or
[uninsured] innovation bank may require a fiduciary claimant to file a
proof of claim if the records of such bank are insufficient to identify the
[claimant’s] claimant's interest.
Sec. 23. Subsection (a) of section 36a-226a of the general statutes is
repealed and the following is substituted in lieu thereof (Effective July 1,
2024):
(a) A contract between a trust bank or [uninsured] innovation bank
in receivership and another person for bailment, of deposit for hire, or
for the lease of a safe, vault or safe deposit box terminates on the date
specified for removal of property in the notices that were published and
mailed in accordance with section 36a-225, as amended by this act, or a Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 61 of 140
later date approved by the receiver or the Superior Court. A person who
has paid rental or storage charges for a period extending beyond the
date designated for removal of property has a claim against such bank's
estate for a refund of the unearned amount paid.
Sec. 24. Subsections (a) and (b) of section 36a-237 of the general
statutes are repealed and the following is substituted in lieu thereof
(Effective July 1, 2024):
(a) The assets of any Connecticut bank, other than a trust bank or
[uninsured] innovation bank, in the possession of a receiver shall be
distributed in the following order of priority: (1) All fees and
assessments due the commissioner; (2) the charges and expenses of
settling such bank's affairs; (3) all deposits; (4) all other liabilities; (5) any
liquidation account; and (6) in the case of a capital stock Connecticut
bank, the claims of shareholders or, in the case of a mutual savings bank
or mutual savings and loan association, the claims of depositors in
proportion to their respective deposits.
(b) (1) The assets of a trust bank or an [uninsured] innovation bank
shall be distributed in the following order of priority: (A) All fees and
assessments due the commissioner; (B) administrative expenses; (C)
approved claims of owners of secured trust funds on deposit to the
extent of the value of the security as provided in subsection (d) of section
36a-237f, as amended by this act; (D) approved claims of secured
creditors to the extent of the value of the security as provided in
subsection (d) of section 36a-237f, as amended by this act; (E) approved
claims by beneficiaries of insufficient commingled fiduciary money or
missing fiduciary property and approved claims of clients of the trust
bank or [uninsured] innovation bank; (F) other approved claims of
depositors and general creditors not falling within a higher priority
under this subdivision, including unsecured claims for taxes and debts
due the federal government or a state or local government; (G)
approved claims of a type described by subparagraphs (A) to (F), Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 62 of 140
inclusive, of this subdivision that were not filed within the period
prescribed by sections 36a-215 to 36a-239, inclusive, as amended by this
act; and (H) claims of capital note or debenture holders or holders of
similar obligations and proprietary claims of shareholders or other
owners according to the terms established by issue, class or series.
(2) As used in this subsection, "administrative expense" means (A)
any expense designated as an administrative expense by sections 36a-
231 and 36a-237h, as amended by this act; (B) any charge or expense of
settling the affairs of the bank, including court costs and expenses of
operation and liquidation of the bank's estate; (C) wages owed to an
employee of the bank for services rendered within three months before
the date the bank was placed in receivership and not exceeding two
thousand dollars to each employee; (D) current wages owed to an
employee of the bank whose services are retained by the receiver for
services rendered after the date the bank is placed in receivership; and
(E) an unpaid expense of supervision or conservatorship of the bank
before it was placed in receivership.
Sec. 25. Section 36a-237f of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
(a) To receive payment of a claim against the estate of a trust bank or
[uninsured] innovation bank in receivership, a person who has a claim,
other than a shareholder acting in that capacity, including a claimant
with a secured claim or a fiduciary claimant ordered by the receiver to
file a proof of claim under subdivision (2) of subsection (b) of section
36a-225, as amended by this act, shall present proof of the claim to the
receiver at a place specified by the receiver, within the period specified
by the receiver. Receipt of the required proof of claim by the receiver is
a condition precedent to the payment of the claim. A claim that is not
filed within the period or at the place specified by the receiver may not
participate in a distribution of the assets by the receiver, except that,
subject to court approval, the receiver may accept a claim filed not later Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 63 of 140
than the one-hundred-eightieth day after the date notice of the
claimant's right to file a proof of claim is mailed to the claimant,
provided such claim shall be subordinate to an approved claim of a
general creditor. Interest does not accrue on any claim after the date the
bank is placed in receivership. The provisions of this subsection shall
not apply to a fiduciary claimant or depositor where the records of the
bank in receivership are sufficient to identify the fiduciary claimant's or
depositor's interest.
(b) (1) The proof of claim against a trust bank or an [uninsured]
innovation bank shall be in writing, be signed by the claimant, and
include: (A) A statement of the claim; (B) a description of the
consideration for the claim; (C) a statement of whether collateral is held
or a security interest is asserted against the claim and, if so, a description
of the collateral or security interest; (D) a statement of any right of
priority of payment for the claim or other specific right asserted by the
claimant; (E) a statement of whether a payment has been made on the
claim and, if so, the amount and source of the payment, to the extent
known by the claimant; (F) a statement that the amount claimed is justly
owed by the bank to the claimant; and (G) any other matter that is
required by the Superior Court.
(2) The receiver may designate the form of the proof of claim. A proof
of claim shall be filed under oath unless the oath is waived by the
receiver. If a claim is founded on a written instrument, the original
instrument, unless lost or destroyed, shall be filed with the proof of
claim. After the instrument is filed, the receiver may permit the claimant
to substitute a copy of the instrument until the final disposition of the
claim. If the instrument is lost or destroyed, a statement of that fact and
of the circumstances of the loss or destruction shall be filed under oath
with the claim.
(c) A judgment against a trust bank or [uninsured] innovation bank
in receivership taken by default or by collusion before the date the bank Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 64 of 140
was placed in receivership may not be considered as conclusive
evidence of the liability of the bank to the judgment creditor or of the
amount of damages to which the judgment creditor is entitled. A
judgment against the bank entered after the date the bank was placed in
receivership may not be considered as evidence of liability or of the
amount of damages.
(d) (1) The owner of secured trust funds on deposit may file a claim
as a creditor against a trust bank or [uninsured] innovation bank in
receivership. The value of the security shall be determined under
supervision of the Superior Court by converting the security into
money.
(2) The owner of a secured claim against a trust bank or [uninsured]
innovation bank in receivership may surrender the security and file a
claim as a general creditor or apply the security to the claim and
discharge the claim.
(3) If the owner applies the security and discharges the claim under
subdivision (2) of this subsection, any deficiency shall be treated as a
claim against the general assets of the bank on the same basis as a claim
of an unsecured creditor. The amount of the deficiency shall be
determined as provided by subsection (e) of this section, except that if
the amount of the deficiency has been adjudicated by a court in a
proceeding in which the receiver has had notice and an opportunity to
be heard, the court's decision is conclusive as to the amount.
(4) The value of security held by a secured creditor shall be
determined under supervision of the court by converting the security
into money according to the terms of the agreement under which the
security was delivered to the creditor or by agreement, arbitration,
compromise or litigation between the creditor and the receiver.
(e) (1) A claim against a trust bank or [uninsured] innovation bank in Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 65 of 140
receivership based on an unliquidated or undetermined demand shall
be filed within the period for the filing of the claim. The claim may not
share in any distribution to claimants until the claim is definitely
liquidated, determined and allowed. After the claim is liquidated,
determined and allowed, the claim shares ratably with the claims of the
same class in all subsequent distributions.
(2) If the receiver in all other respects is in a position to close the
receivership proceeding, the proposed closing is sufficient grounds for
the rejection of any remaining claim based on an unliquidated or
undetermined demand. The receiver shall notify the claimant of the
intention to close the proceeding. If the demand is not liquidated or
determined before the sixty-first day after the date of the notice, the
receiver may reject the claim.
(3) For the purposes of this subsection, a demand is considered
unliquidated or undetermined if the right of action on the demand
accrued while the trust bank or [uninsured] innovation bank was placed
in receivership and the liability on the demand has not been determined
or the amount of the demand has not been liquidated.
(f) (1) Mutual credits and mutual debts shall be set off and only the
balance allowed or paid, except that a set-off may not be allowed in
favor of a person if: (A) The obligation of a trust bank or [uninsured]
innovation bank to the person on the date the bank was placed in
receivership did not entitle the person to share as a claimant in the assets
of the bank; (B) the obligation of the bank to the person was purchased
by or transferred to the person after the date the bank was placed in
receivership or for the purpose of increasing set-off rights; or (C) the
obligation of the person or the bank is as a trustee or fiduciary.
(2) Upon request, the receiver shall provide a person with an
accounting statement identifying each debt that is due and payable. A
person who owes a trust bank or [uninsured] innovation bank an Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 66 of 140
amount that is due and payable against which the person asserts set-off
of mutual credits that may become due and payable from the bank in
the future shall promptly pay to the receiver the amount due and
payable. The receiver shall promptly refund, to the extent of the person's
prior payment, mutual credits that become due and payable to the
person by the bank in receivership.
(g) (1) Not later than six months after the last day permitted for the
filing of claims or a later date allowed by the Superior Court, the receiver
shall accept or reject in whole or in part each claim filed against a trust
bank or an [uninsured] innovation bank in receivership, except for an
unliquidated or undetermined claim governed by subsection (e) of this
section. The receiver shall reject a claim if the receiver doubts its validity.
(2) The receiver shall mail written notice to each claimant, specifying
the disposition of the person's claim. If a claim is rejected in whole or in
part, the receiver in the notice shall specify the basis for rejection and
advise the claimant of the procedures and deadline for appeal.
(3) The receiver shall send each claimant a summary schedule of
approved and rejected claims by priority class and notify the claimant:
(A) That a copy of a schedule of claims disposition, including only the
name of the claimant, the amount of the claim allowed, and the amount
of the claim rejected, is available upon request; and (B) of the procedure
and deadline for filing an objection to an approved claim.
(h) The receiver of a trust bank or [uninsured] innovation bank, with
the approval of the superior court, shall set a deadline for an objection
to an approved claim. On or before that date, a depositor, creditor, other
claimant or shareholder of a trust bank or [uninsured] innovation bank
may file an objection to an approved claim. The objection shall be heard
and determined by the court. If the objection is sustained, the court shall
direct an appropriate modification of the schedule of claims. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 67 of 140
(i) The receiver's rejection of a claim may be appealed to the superior
court in which the receivership proceeding of a trust bank or
[uninsured] innovation bank is pending. The appeal shall be filed within
three months after the date of service of notice of the rejection. If the
appeal is timely filed, review is de novo as if it were an action originally
filed in the court, and is subject to the rules of procedure and appeal
applicable to civil cases. An action to appeal rejection of a claim by the
receiver is separate from the receivership proceeding, and may not be
initiated by a claimant intervening in the receivership proceeding. If the
action is not timely filed, the action of the receiver is final and not subject
to review.
(j) (1) The commissioner shall deposit all money available for the
benefit of persons who have not filed a claim and are, according to the
bank's records, depositors and creditors of a trust bank or [uninsured]
innovation bank in receivership in a bank, Connecticut credit union,
federal credit union, out-of-state bank that maintains in this state a
branch, as defined in section 36a-410, or out-of-state credit union that
maintains in this state a branch, as defined in section 36a-435b. The
commissioner shall pay the nonclaiming depositors and creditors on
demand the undisputed amount, based on the bank's records, held for
their benefit.
(2) The receiver may periodically make a partial distribution to the
holders of approved claims if: (A) All objections have been heard and
decided as provided by subsection (h) of this section; (B) the time for
filing appeals has expired as provided by subsection (i) of this section;
(C) money has been made available to provide for the payment of all
nonclaiming depositors and creditors in accordance with subdivision (1)
of this subsection; and (D) a proper reserve is established for the pro rata
payment of: (i) Rejected claims that have been appealed, and (ii) any
claims based on unliquidated or undetermined demands governed by
subsection (e) of this section. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 68 of 140
(3) As soon as practicable after all objections, appeals and claims
based on previously unliquidated or undetermined demands governed
by subsection (e) of this section have been determined and money has
been made available to provide for the payment of all nonclaiming
depositors and creditors in accordance with subdivision (1) of this
subsection, the receiver shall distribute the assets of a trust bank or
[uninsured] innovation bank in satisfaction of approved claims other
than claims asserted in a person's capacity as a shareholder.
Sec. 26. Section 36a-237g of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
(a) All fiduciary records relating to the administration of fiduciary
accounts of a trust bank or [uninsured] innovation bank shall be turned
over to the successor fiduciary, as defined in section 45a-245a, in charge
of administration of the accounts. The receiver may devise a method for
the effective, efficient and economical maintenance of all other records
of the trust bank or [uninsured] innovation bank and of the receiver's
office.
(b) On approval by the Superior Court, the receiver may dispose of
records of the trust bank or [uninsured] innovation bank in receivership
that are obsolete and unnecessary to the continued administration of the
receivership proceeding.
Sec. 27. Subsections (a) to (c), inclusive, of section 36a-237h of the
general statutes are repealed and the following is substituted in lieu
thereof (Effective July 1, 2024):
(a) Persons entitled to protection under this section shall be: (1) All
receivers or conservators of trust banks or [uninsured] innovation
banks, including present and former receivers and conservators; and (2)
the employees of such receivers or conservators. Atto rneys,
accountants, auditors and other professional persons or firms who are Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 69 of 140
retained by the receiver or conservator as independent contractors, and
their employees, shall not be considered employees of the receiver or
conservator for purposes of this section.
(b) The receiver or conservator and the employees of the receiver or
conservator shall be immune from suit and liability, both personally and
in their official capacities, for any claim for damage to or loss of
property, personal injury or other civil liability caused by or resulting
from any alleged act, error or omission of the receiver or conservator or
any employee arising out of or by reason of their duties or employment,
provided nothing in this section shall be construed to hold the receiver
or conservator or any employee immune from suit or liability for any
damage, loss, injury or liability caused by the intentional or wilful and
wanton misconduct of the receiver or conservator or any employee.
(c) (1) If any legal action is commenced against the receiver or
conservator or any employee, whether personally or in such person's
official capacity, alleging property damage, property loss, personal
injury or other civil liability caused by or resulting from any alleged act,
error or omission of the receiver or conservator or any employee arising
out of or by reason of their duties or employment, the receiver or
conservator and any employee shall be indemnified from the assets of
the trust bank or [uninsured] innovation bank for all expenses,
attorneys' fees, judgments, settlements, decrees or amounts due and
owing or paid in satisfaction of or incurred in the defense of such legal
action unless it is determined upon a final adjudication on the merits
that the alleged act, error or omission of the receiver or conservator or
employee giving rise to the claim did not arise out of or by reason of
such person's duties or employment, or was caused by intentional or
wilful and wanton misconduct.
(2) Attorneys' fees and any related expenses incurred in defending a
legal action for which immunity or indemnity is available under this
section shall be paid from the assets of the trust bank or [uninsured] Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 70 of 140
innovation bank, as they are incurred, in advance of the final disposition
of such action upon receipt of an undertaking by or on behalf of the
receiver or conservator or employee to repay the attorneys' fees and
expenses if it shall ultimately be determined upon a final adjudication
on the merits that the receiver or conservator or employee is not entitled
to immunity or indemnity under this section.
(3) Any indemnification for expense payments, judgments,
settlements, decrees, attorneys' fees, surety bond premiums or other
amounts paid or to be paid from the assets of the trust bank or
[uninsured] innovation bank pursuant to this section shall be an
administrative expense of the receivership or conservatorship.
(4) In the event of any actual or threatened litigation against a receiver
or conservator or any employee for which immunity or indemnity may
be available under this section, a reasonable amount of funds, which in
the judgment of the receiver or conservator may be needed to provide
immunity or indemnity, shall be segregated and reserved from the
assets of the trust bank or [uninsured] innovation bank as security for
the payment of indemnity until such time as all applicable statutes of
limitation shall have run and all actual or threatened actions against the
receiver or conservator or any employee have been completely and
finally resolved, and all obligations of the trust bank or [uninsured]
innovation bank and the commissioner under this section shall have
been satisfied.
(5) In lieu of segregation and reserving of funds, the receiver or
conservator may, in the receiver's or conservator's discretion, obtain a
surety bond or make other arrangements that will enable the receiver or
conservator to fully secure the payment of all obligations under this
section.
Sec. 28. Subdivision (2) of subsection (a) of section 36a-333 of the
general statutes is repealed and the following is substituted in lieu Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 71 of 140
thereof (Effective July 1, 2024):
(2) Notwithstanding the provisions of subdivisions (1) and (3) of this
subsection, to secure public deposits, each qualified public depository
that (A) has been conducting business in this state for a period of less
than two years, except for a depository that is a successor institution to
a depository which conducted business in this state for two years or
more, or (B) is an [uninsured] innovation bank, shall at all times
maintain, segregated from its other assets as required under subsection
(b) of this section, eligible collateral in an amount not less than one
hundred twenty per cent of all uninsured public deposits held by the
depository.
Sec. 29. Section 36a-609 of the 2024 supplement to the general statutes
is repealed and the following is substituted in lieu thereof (Effective July
1, 2024):
The provisions of sections 36a-597 to 36a-607, inclusive, and sections
36a-611 and 36a-612 shall not apply to:
(1) Any federally insured federal bank, out-of-state bank, Connecticut
bank, Connecticut credit union, federal credit union or out-of-state
credit union, provided such institution does not engage in the business
of money transmission in this state through any person who is not (A) a
federally insured federal bank, out-of-state bank, Connecticut bank,
Connecticut credit union, federal credit union or out-of-state credit
union, (B) a person licensed pursuant to sections 36a-595 to 36a-612,
inclusive, or an authorized delegate acting on behalf of such licensed
person, or (C) a person exempt pursuant to subdivisions (2) to (4),
inclusive, of this section;
(2) Any Connecticut bank that is an [uninsured] innovation bank
organized pursuant to subsection (t) of section 36a-70, as amended by
this act; Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 72 of 140
(3) The United States Postal Service and any contractor that engages
in the business of money transmission in this state on behalf of the
United States Postal Service; and
(4) A person whose activity is limited to the electronic funds transfer
of governmental benefits for or on behalf of a federal, state or other
governmental agency, quasi-governmental agency or government
sponsored enterprise.
Sec. 30. (Effective from passage) In the case of any underpayment of tax
by a taxpayer under chapter 208, 228z or 229 of the general statutes, no
interest shall be imposed under such chapters to the extent such
underpayment was due to the filing of an amended return necessitated
by guidance issued by the Internal Revenue Service concerning the
federal employee retention credit program. If such interest has already
been paid to the Department of Revenue Services, the Commissioner of
Revenue Services shall treat such payment as an overpayment and shall
refund the amount of such payment, without interest, to the taxpayer.
Sec. 31. Section 38a-48 of the general statutes, as amended by section
6 of public act 24-138, is repealed and the following is substituted in lieu
thereof (Effective October 1, 2025):
(a) On or before June thirtieth, annually, the Commissioner of
Revenue Services shall render to the Insurance Commissioner a
statement certifying the total amount of taxes [or charges imposed on]
reported to the Commissioner of Revenue Services on returns filed with
said commissioner by each domestic insurance company or other
domestic entity under chapter 207 on business done in this state during
the [preceding calendar year. The statement for local domestic insurance
companies shall set forth the amount of taxes and charges before any tax
credits allowed as provided in subsection (a) of section 12-202] calendar
year immediately preceding the prior calendar year. For purposes of
preparing the annual statement under this subsection, the total amount Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 73 of 140
of taxes required to be set forth in such statement shall be the amount of
tax reported by each domestic insurance company or other domestic
entity under chapter 207 to the Commissioner of Revenue Services prior
to the application of any credits allowable or available under law to each
such domestic insurance company or other domestic entity under
chapter 207.
(b) On or before July thirty-first, annually, the Insurance
Commissioner shall render to each domestic insurance company or
other domestic entity liable for payment under section 38a-47:
(1) A statement that includes (A) the amount appropriated to the
Insurance Department, the Office of the Healthcare Advocate and the
Office of Health Strategy from the Insurance Fund established under
section 38a-52a for the fiscal year beginning July first of the same year,
(B) the cost of fringe benefits for department and office personnel for
such year, as estimated by the Comptroller, (C) the estimated
expenditures on behalf of the department and the offices from the
Capital Equipment Purchase Fund pursuant to section 4a-9 for such
year, not including such estimated expenditures made on behalf of the
Health Systems Planning Unit of the Office of Health Strategy, and (D)
the amount appropriated to the Department of Aging and Disability
Services for the fall prevention program established in section 17a-859
from the Insurance Fund for the fiscal year;
(2) [a] A statement of the total amount of taxes [imposed on all
domestic insurance companies and domestic insurance entities under
chapter 207 on business done in this state during the preceding calendar
year] reported in the annual statement rendered to the Insurance
Commissioner pursuant to subsection (a) of this section; and
(3) [the] The proposed assessment against that company or entity,
calculated in accordance with the provisions of subsection (c) of this
section, provided for the purposes of this calculation the amount Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 74 of 140
appropriated to the Insurance Department, the Office of the Healthcare
Advocate and the Office of Health Strategy from the Insurance Fund
plus the cost of fringe benefits for department and office personnel and
the estimated expenditures on behalf of the department and [such] said
offices from the Capital Equipment Purchase Fund pursuant to section
4a-9, not including such expenditures made on behalf of the Health
Systems Planning Unit of the Office of Health Strategy shall be deemed
to be the actual expenditures of the department and [such] said offices,
and the amount appropriated to the Department of Aging and Disability
Services from the Insurance Fund for the fiscal year for the fall
prevention program established in section 17a-859 shall be deemed to
be the actual expenditures for the program.
(c) (1) The proposed assessments for each domestic insurance
company or other domestic entity shall be calculated by (A) allocating
twenty per cent of the amount to be paid under section 38a-47 among
the domestic entities organized under sections 38a-199 to 38a-209,
inclusive, and 38a-214 to 38a-225, inclusive, in proportion to their
respective shares of the total amount of taxes [and charges imposed
under chapter 207 on such entities on business done in this state during
the preceding calendar year] reported in the annual statement rendered
to the Insurance Commissioner pursuant to subsection (a) of this
section, and (B) allocating eighty per cent of the amount to be paid under
section 38a-47 among all domestic insurance companies and domestic
entities other than those organized under sections 38a-199 to 38a-209,
inclusive, and 38a-214 to 38a-225, inclusive, in proportion to their
respective shares of the total amount of taxes [and charges imposed
under chapter 207 on such domestic insurance companies and domestic
entities on business done in this state during the preceding calendar
year] reported in the annual statement rendered to the Insurance
Commissioner pursuant to subsection (a) of this section, provided if
there are no domestic entities organized under sections 38a-199 to 38a-
209, inclusive, and 38a-214 to 38a-225, inclusive, at the time of Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 75 of 140
assessment, one hundred per cent of the amount to be paid under
section 38a-47 shall be allocated among such domestic insurance
companies and domestic entities.
(2) When the amount any such company or entity is assessed
pursuant to this section exceeds twenty-five per cent of the actual
expenditures of the Insurance Department, the Office of the Healthcare
Advocate and the Office of Health Strategy from the Insurance Fund,
such excess amount shall not be paid by such company or entity but
rather shall be assessed against and paid by all other such companies
and entities in proportion to their respective shares of the total amount
of taxes [and charges imposed under chapter 207 on business done in
this state during the preceding calendar year] reported in the annual
statement rendered to the Insurance Commissioner pursuant to
subsection (a) of this section, except that for purposes of any assessment
made to fund payments to the Department of Public Health to purchase
vaccines, such company or entity shall be responsible for its share of the
costs, notwithstanding whether its assessment exceeds twenty-five per
cent of the actual expenditures of the Insurance Department, the Office
of the Healthcare Advocate and the Office of Health Strategy from the
Insurance Fund. The provisions of this subdivision shall not be
applicable to any corporation that has converted to a domestic mutual
insurance company pursuant to section 38a-155 upon the effective date
of any public act that amends said section to modify or remove any
restriction on the business such a company may engage in, for purposes
of any assessment due from such company on and after such effective
date.
(d) [For purposes of calculating the amount of payment under section
38a-47, as well as the amount of the assessments under this section, the
"total taxes imposed on all domestic insurance companies and other
domestic entities under chapter 207" shall be based upon the amounts
shown as payable to the state for the calendar year on the returns filed Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 76 of 140
with the Commissioner of Revenue Services pursuant to chapter 207;
with respect to calculating the amount of payment and assessment for
local domestic insurance companies, the amount used shall be the taxes
and charges imposed before any tax credits allowed as provided in
subsection (a) of section 12-202] Each annual payment determined
under section 38a-47 and each annual assessment determined under this
section shall be calculated based on the total amount of taxes reported
in the annual statement rendered to the Insurance Commissioner
pursuant to subsection (a) of this section.
(e) On or before September first, annually, for each fiscal year, the
Insurance Commissioner, after receiving any objections to the proposed
assessments and making such adjustments as in the commissioner's
opinion may be indicated, shall assess each such domestic insurance
company or other domestic entity an amount equal to its proposed
assessment as so adjusted. Each domestic insurance company or other
domestic entity shall pay to the Insurance Commissioner (1) on or before
June thirtieth, annually, an estimated payment against its assessment for
the following year equal to twenty-five per cent of its assessment for the
fiscal year ending such June thirtieth, (2) on or before September
thirtieth, annually, twenty-five per cent of its assessment adjusted to
reflect any credit or amount due from the preceding fiscal year as
determined by the commissioner under subsection (f) of this section,
and (3) on or before the following December thirty-first and March
thirty-first, annually, each domestic insurance company or other
domestic entity shall pay to the Insurance Commissioner the remaining
fifty per cent of its proposed assessment to the department in two equal
installments.
(f) If the actual expenditures for the fall prevention program
established in section 17a-859 are less than the amount allocated, the
Commissioner of Aging and Disability Services shall notify the
Insurance Commissioner. Immediately following the close of the fiscal Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 77 of 140
year, the Insurance Commissioner shall recalculate the proposed
assessment for each domestic insurance company or other domestic
entity in accordance with subsection (c) of this section using the actual
expenditures made during the fiscal year by the Insurance Department,
the Office of the Healthcare Advocate and the Office of Health Strategy
from the Insurance Fund, the actual expenditures made on behalf of the
department and [the] said offices from the Capital Equipment Purchase
Fund pursuant to section 4a-9, not including such expenditures made
on behalf of the Health Systems Planning Unit of the Office of Health
Strategy, and the actual expenditures for the fall prevention program.
On or before July thirty-first, annually, the Insurance Commissioner
shall render to each such domestic insurance company and other
domestic entity a statement showing the difference between their
respective recalculated assessments and the amount they have
previously paid. On or before August thirty-first, the Insurance
Commissioner, after receiving any objections to such statements, shall
make such adjustments [which] that in [their] the commissioner's
opinion may be indicated, and shall render an adjusted assessment, if
any, to the affected companies. Any such domestic insurance company
or other domestic entity may pay to the Insurance Commissioner the
entire assessment required under this subsection in one payment when
the first installment of such assessment is due.
(g) If any assessment is not paid when due, a penalty of twenty-five
dollars shall be added thereto, and interest at the rate of six per cent per
annum shall be paid thereafter on such assessment and penalty.
(h) The Insurance Commissioner shall deposit all payments made
under this section with the State Treasurer. On and after June 6, 1991,
the moneys so deposited shall be credited to the Insurance Fund
established under section 38a-52a and shall be accounted for as expenses
recovered from insurance companies.
Sec. 32. Section 10-287 of the general statutes is repealed and the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 78 of 140
following is substituted in lieu thereof (Effective July 1, 2024):
(a) A grant for a school building project under this chapter [to meet
project costs not eligible for state financial assistance under section 10-
287a] shall be paid in installments, the number and time of payment of
which shall correspond to the number and time of principal installment
payments on municipal bonds, including principal payments to retire
temporary notes renewed for the third and subsequent years pursuant
to section 7-378a or 7-378e, issued for the purpose of financing such costs
and shall be equal to the state's share of project costs per principal
installment on municipal bonds or notes, except in cases where the
project has been fully paid for, in which case the number of installments
shall be five or, in the case of a regional agricultural science and
technology education center or a cooperative regional special
educational facility, shall be one; provided final payment shall not be
made prior to an audit conducted by the State Board of Education for
each project for which a final calculation was not made prior to July 31,
1983. Grants under twenty-five thousand dollars shall be paid in one
lump sum. The Commissioner of Administrative Services shall certify
to the State Comptroller, upon completion of the issuance of bonds or
such renewal of temporary notes to finance each school building project,
the dates and amounts of grant payments to be made pursuant to this
chapter and the State Comptroller shall draw an order on the State
Treasurer upon such certification to pay the amounts so certified when
due. All site acquisition and project cost grant payments shall be made
at least ten days prior to the principal payment on bonds or temporary
notes related thereto or short-term financing issued to finance such site
acquisition or project. Annual grant installments paid pursuant to this
section on principal installment payments to retire temporary notes
renewed pursuant to section 7-378a or 7-378e shall be based each year
on the amount required to be retired pursuant to said sections, as
adjusted for any ineligible project costs, and shall be paid only if at the
time such temporary notes are renewed the rate of interest applicable to Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 79 of 140
such notes is less than the rate of interest that would be applicable with
respect to twenty-year bonds if issued at the time of such renewal. The
determination related to such rates of interest pursuant to this
subsection may be reviewed and shall be subject to approval by the
Commissioner of Administrative Services prior to renewal of such
notes. In the event that a school building project is not completed at the
time bonds or temporary notes related thereto are issued to finance the
project, the certification of the grant payments made pursuant to this
section by the Commissioner of Administrative Services may be based
on estimates, provided upon completion of such project and notification
of final acceptance to the state, the Commissioner of Administrative
Services shall adjust and recertify the dates and amounts of subsequent
grant payments based on the state's share of final eligible costs.
(b) (1) All orders and contracts for school building construction
receiving state assistance under this chapter, except as provided in
subdivisions (2) to (4), inclusive, of this subsection, shall be awarded to
the lowest responsible qualified bidder only after a public invitation to
bid, except for (A) school building projects for which the town or
regional school district is using a state contract pursuant to subsection
(d) of section 10-292, and (B) change orders, those contracts or orders
costing less than ten thousand dollars and those of an emergency nature,
as determined by the Commissioner of Administrative Services, in
which cases the contractor or vendor may be selected by negotiation,
provided no local fiscal regulations, ordinances or charter provisions
conflict. Any of the qualified bidders under this subdivision may be a
cooperative purchasing contract offered through a regional educational
service center or a council of government.
(2) All orders and contracts for architectural services shall be
awarded from a pool of [not more than the four] at least three of the
most responsible qualified proposers after a public selection process.
Such process shall, at a minimum, involve requests for qualifications, Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 80 of 140
followed by requests for proposals, including fees, from the proposers
meeting the qualifications criteria of the request for qualifications
process. Following the qualification process, the awarding authority
shall evaluate the proposals to determine [the four] at least three of the
most responsible qualified proposers using those criteria previously
listed in the requests for qualifications and requests for proposals for
selecting architectural services specific to the project or school district.
Such evaluation criteria shall include due consideration of the
proposer's pricing for the project, experience with work of similar size
and scope as required for the order or contract, organizational and team
structure, including any subcontractors to be utilized by the proposer,
for the order or contract, past performance data, including, but not
limited to, adherence to project schedules and project budgets and the
number of change orders for projects, the approach to the work required
for the order or contract and documented contract over sight
capabilities, and may include criteria specific to the project. Final
selection by the awarding authority is limited to the pool of [the four] at
least three of the most responsible qualified proposers and shall include
consideration of all criteria included within the request for proposals.
As used in this subdivision, "most responsible qualified proposer"
means the proposer who is qualified by the awarding authority when
considering price and the factors necessary for faithful performance of
the work based on the criteria and scope of work included in the request
for proposals.
(3) (A) All orders and contracts for construction management services
shall be awarded from a pool of [not more than the four] at least three
of the most responsible qualified proposers after a public selection
process. Such process shall, at a minimum, involve requests for
qualifications, followed by requests for proposals, including fees, from
the proposers meeting the qualifications criteria of the request for
qualifications process. Following the qualification process, the
awarding authority shall evaluate the proposals to determine [the four] Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 81 of 140
at least three of the most responsible qualified proposers using those
criteria previously listed in the requests for qualifications and requests
for proposals for selecting construction management services specific to
the project or school district. Such evaluation criteria shall include due
consideration of the proposer's pricing for the project, experience with
work of similar size and scope as required for the order or contract,
organizational and team structure for the order or contract, past
performance data, including, but not limited to, adherence to project
schedules and project budgets and the number of change orders for
projects, the approach to the work required for the order or contract,
and documented contract oversight capabilities, and may include
criteria specific to the project. Final selection by the awarding authority
is limited to the pool of [the four] at least three of the most responsible
qualified proposers and shall include consideration of all criteria
included within the request for proposals. As used in this subdivision,
"most responsible qualified proposer" means the proposer who is
qualified by the awarding authority when considering price and the
factors necessary for faithful performance of the work based on the
criteria and scope of work included in the request for proposals.
(B) The construction manager's contract shall include a guaranteed
maximum price for the cost of construction. Such guaranteed maximum
price shall be determined not later than ninety days after the selection
of the trade subcontractor bids. Each construction manager shall invite
bids and give notice of opportunities to bid on project elements on the
State Contracting Portal. Each bid shall be kept sealed until opened
publicly at the time and place set forth in the notice soliciting such bid.
The construction manager shall, after consultation and approval by the
town or regional school district, award any related contracts for project
elements to the responsible qualified contractor submitting the lowest
bid in compliance with the bid requirements, provided that (i) the
construction manager shall not be eligible to submit a bid for any such
project element, and (ii) construction shall not begin prior to the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 82 of 140
determination of the guaranteed maximum price. [, except work relating
to site preparation and demolition may commence prior to such
determination.] On and after July 1, 2024, the construction manager's
contract shall include a requirement that the construction manager
retain all documents and receipts relating to the school building project
for a period of two years following the date of completion of an audit
conducted by the Department of Administrative Services pursuant to
this section, for such project.
(C) The construction manager shall submit quarterly reports
regarding the ineligible project costs for the school building project to
date to the town or regional board of education. Upon submission of the
notice of project completion pursuant to subsection (d) of this section,
and prior to the audit conducted by the commissioner, the construction
manager shall submit a final report on the total ineligible costs for such
project to the town or regional school district.
(D) The construction manager shall meet quarterly with the town or
regional board of education to review any change orders for eligibility
as the school building project progresses.
(4) All orders and contracts for any other consultant services,
including, but not limited to, consultant services rendered by an owner's
representatives, construction administrators, program managers,
environmental professionals, planners and financial specialists, shall
comply with the public selection process described in subdivision (2) of
this subsection. No costs associated with an order or contract for such
consultant services shall be eligible for state financial assistance under
this chapter unless such order or contract receives prior approval from
the Commissioner of Administrative Services in writing or through a
written electronic communication.
(c) If the Commissioner of Administrative Services determines that a
building project has not met the approved conditions of the original Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 83 of 140
application, the Department of Administrative Services may withhold
subsequent state grant payments for said project until appropriate
action, as determined by the commissioner, is taken to cause the
building project to be in compliance with the approved conditions or
may require repayment of all state grant payments for said project when
such appropriate action is not undertaken within a reasonable time.
(d) (1) Each town or regional school district shall submit a final grant
application to the Department of Administrative Services [within] not
later than one year from the date of completion and acceptance of the
school building project by the town or regional school district. If a town
or regional school district fails to submit a final grant application [within
said period of time] on or before such one-year date, the commissioner
may withhold ten per cent of the state reimbursement for such project.
(2) (A) On and after July 1, [2022] 2024, each town or regional school
district shall submit a notice of project completion [within three years]
not later than one year from the date of the issuance of a certificate of
occupancy for the school building project by the town or regional school
district. If a town or regional school district fails to submit such notice
of project completion [within said period of time] on or before such one-
year date, the commissioner shall deem such project completed and
conduct an audit of such project in accordance with the provisions of
this chapter.
(B) For any school building project authorized by the General
Assembly prior to July 1, 2022, the commissioner shall deem as complete
any such project in which a certificate of occupancy has been granted,
but for which a notice of project completion has not been submitted by
the town or regional school district on or before July 1, 2025.
Sec. 33. Section 163 of public act 24-151 is repealed. (Effective from
passage) Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 84 of 140
Sec. 34. Section 1 of special act 77-98, as amended by section 5 of
special act 99-12, section 2 of public act 02-85, section 1 of special act 13-
20, section 1 of special act 17-5 and section 1 of special act 24-7, is
amended to read as follows (Effective from passage):
It is found and declared as a matter of legislative determination that
the creation of the South Central Connecticut Regional Water Authority
for the primary purpose of providing and assuring the provision of an
adequate supply of pure water and the safe disposal of wastewater at
reasonable cost within the South Central Connecticut Regional Water
District and such other areas as may be served pursuant to cooperative
agreements and acquisitions authorized by section 11 of special act 77-
98, as amended by section 5 of special act 78-24, section 3 of special act
84-46, section 7 of public act 02-85 and section 3 of special act 17-5, as
amended by this act, and, to the degree consistent with the foregoing, of
advancing water conservation and the conservation and compatible
recreational use of land held by the authority, conducting or investing
in noncore businesses, provided, at the time of any investment in such
businesses, the authority's investment, less returns of or on such
investments in such businesses made on and after June 30, 2013, shall
not exceed the greater of five per cent of the authority's net utility plant
devoted to its water and wastewater utility businesses or such higher
amount approved by a majority of the total weighted votes of the
membership of the representative policy board, excluding vacancies,
except that the acquisition of the Aquarion Water Company or one or
more of its subsidiaries shall have no such limitations, and the carrying
out of its powers, purposes, and duties under sections 1 to 33, inclusive,
of special act 77-98, as amended by special act 78-24, special act 84-46,
sections 5 to 7, inclusive, of special act 99-12, sections 2 to 21, inclusive,
of public act 02-85, special act 13-20, special act 17-5, special act 24-7 and
this act, and for the benefit of the people residing in the South Central
Connecticut Regional Water District and the state of Connecticut, and
for the improvement of their health, safety and welfare, that said Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 85 of 140
purposes are public purposes, and that the authority will be performing
an essential governmental function in the exercise of its powers under
sections 1 to 33, inclusive, of special act 77-98, as amended by special act
78-24, special act 84-46, sections 5 to 7, inclusive, of special act 99-12,
section 2 of public act 02-85, special act 13-20, special act 17-5, special act
24-7 and this act. The authority shall have the power to conduct or invest
in noncore businesses authorized pursuant to this section, either directly
or through an affiliated business entity.
Sec. 35. Section 2 of special act 77-98, as amended by section 1 of
special act 78-24, section 3 of public act 02-85, section 2 of special act 13-
20, section 2 of special act 17-5 and section 2 of special act 24-7, is
amended to read as follows (Effective from passage):
As used in sections 1 to 33, inclusive, of special act 77-98, as amended
by special act 78-24, public act 02-85, special act 13-20, special act 17-5,
special act 24-7 and this act, unless a different meaning appears in the
context: "Authority" means the South Central Connecticut Regional
Water Authority created by section 5 of special act 77-98, as amended by
section 4 of special act 78-24, public act 02-85 and special act 13-20;
"district" means the South Central Connecticut Regional Water District
created by section 3 of special act 77-98, as amended by section 2 of
special act 78-24; "representative policy board" means the representative
policy board of the South Central Connecticut Regional Water District
created by section 4 of special act 77-98, as amended by section 3 of
special act 78-24; "chief executive officer" means that full time employee
of the authority responsible for the execution of the policies of the
authority and for the direction of the other employees of the authority;
"treasurer" means the treasurer of the authority; "customer" means any
person, firm, corporation, company, association or governmental unit
furnished water or wastewater service by the authority or any owner of
property who guarantees payment for water or wastewater service to
such property; "properties" means the water supply and distribution Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 86 of 140
system or systems, wastewater collection and treatment systems and
other real or personal property of the authority; "bonds" means bonds,
notes and other obligations issued by the authority; "revenues" means
all rents, charges and other income derived from the operation of the
properties of the authority; "wastewater" means any substance, liquid
or solid, which may contaminate or pollute or affect the cleanliness or
purity of any water; "water supply system" means plants, structures and
other real and personal property acquired, constructed or operated for
the purpose of supplying water, including basins, dams, canals,
aqueducts, standpipes, pumping stations, water distribution systems,
including land, reservoirs, conduits, pipelines, mains, compensating
reservoirs, waterworks or sources of water supply, wells, purification or
filtration plants or other plants and works, connections, rights of
flowage or diversion and other plants, structures, conveyances, real or
personal property or rights therein and appurtenances necessary or
useful and convenient for the accumulation, supply or distribution of
water or for the conduct of water or environment related activities;
"wastewater system" means plants, structures and other real and
personal property acquired, constructed or operated for the purpose of
collecting, treating and discharging or reusing wastewater, whether or
not interconnected, including wastewater treatment plants, pipes and
conduits for collection of wastewater, pumping stations and other
plants, works, structures, conveyances, real or personal property or
rights therein and appurtenances necessary or useful and convenient for
the collection, transmission, treatment and disposition of wastewater;
"subsidiary corporation" means a corporation organized under the
general statutes or by special act which owns or operates all or part of a
water supply system or a wastewater system within the district and all
of the voting stock of which is owned by the authority; [,] "noncore
business" means an activity, including an activity conducted outside the
state of Connecticut, that is the acquisition of the Aquarion Water
Company or one or more of its subsidiaries or an activity that is related
to water, environment, agriculture, sustainable manufacturing support, Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 87 of 140
or an energy project consisting of either a class I renewable energy
source, as defined in subdivision (20) of subsection (a) of section 16-1 of
the general statutes, or a class III source, as defined in subdivision (38)
of said section, but excluding wind sources located within the district
and any activity located on property that is class I or class II land owned
by the authority; and "affiliated business entity" means a corporation, a
limited liability company or a limited partnership controlled directly or
indirectly by the authority that conducts or invests in a noncore
business. A reference in sections 1 to 33, inclusive, of special act 77-98,
as amended by special act 78-24, special act 84-46, public act 02-85 and
special act 13-20, to any general statute, public act or special act shall
include any amendment or successor thereto.
Sec. 36. Section 4 of special act 77-98, as amended by section 3 of
special act 78-24, section 2 of special act 84-46, section 5 of public act 02-
85, section 2 of special act 03-11, section 10 of special act 13-20 and
section 3 of special act 24-7, is amended by adding subsection (f) as
follows (Effective from passage):
(f) The members of the representative policy board shall have the
authority to act on behalf of the Aquarion representative policy board,
as defined in section 35 of section 41 of this act, until such time as the
members of the Aquarion representative policy board are appointed.
Sec. 37. Section 5 of special act 77-98, as amended by section 4 of
special act 78-24 and section 4 of special act 24-7, is amended to read as
follows (Effective from passage):
(a) A public corporation, to be known as the "South Central
Connecticut Regional Water Authority," constituting a public
instrumentality and political subdivision, is created for the purposes,
charged with the duties and granted the powers provided in sections 1
to 33, inclusive, of special act 77-98, as amended by special act 78-24 and
this act. On and before December 31, 2024, the authority shall consist of Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 88 of 140
five members who shall be residents of the district and not be members
of the representative policy board. On and after January 1, 2025, except
as provided in subsection (c) of this section, the authority shall consist
of seven members who shall reside in Connecticut and not be members
of the representative policy board, and not fewer than five such
members shall be residents of the district. All members shall be
appointed without regard to political affiliation by a majority of the total
votes of those members of the representative policy board present at a
meeting at which at least two-thirds of the weighted vote, excluding
vacancies, is present, for terms of five years, not to exceed four
consecutive full terms, and until their successors are appointed and
have qualified, except that of the members first appointed, one shall be
appointed for a term ending January 1, 1983, one for a term ending
January 1, 1982, one for a term ending January 1, 1981, one for a term
ending January 1, 1980, and one for a term ending January l, 1979. The
sixth member first appointed shall be appointed for a three-year term
ending January 1, 2028, and the seventh member first appointed shall be
appointed for a five-year term ending January 1, 2030. Any vacancy
occurring on the authority shall be filled in the same manner for the
unexpired portion of the term. Any member of the authority may be
removed from office by the representative policy board for cause.
Members of the authority shall receive such compensation to be
adjusted every three years by the Consumer Price Index factor, as
described in section 4 of special act 77-98, as amended by special act 78-
24, special act 84-46, public act 02-85, special act 03-11, special act 13-20
and this act, if approved by the majority of weighted votes of the
membership of the representative policy board, excluding vacancies,
and shall be reimbursed for their necessary expenses incurred in
performance of their duties.
(b) The members of the South Central Connecticut Regional Water
Authority board shall have the authority to act on behalf of the
Aquarion Water Authority, as described in section 35 of section 41 of Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 89 of 140
this act, until such time as the members of the Aquarion Water
Authority board are appointed.
(c) Notwithstanding the provisions of subsection (a) of this section,
upon the Public Utilities Regulatory Authority's approval of the South
Central Connecticut Regional Water Authority or the Aquarion Water
Authority to own and operate the Aquarion Water Company or one or
more of its subsidiaries, the authority board shall consist of eleven
members who shall reside in Connecticut and not be members of the
representative policy board, six of whom shall be residents of the South
Central Connecticut Regional Water District appointed by the
representative policy board, and five of whom shall be appointed by the
representative policy board of the Aquarion Regional Water District, as
described in section 35 of section 41 of this act, in accordance with
section 38 of section 41 of this act. The six members appointed by the
representative policy board of the authority shall have the authority to
act on behalf of the Aquarion Water Authority until such time as the
members of the Aquarion Water Authority are appointed. All such
authority members shall be appointed without regard to political
affiliation by a majority of the total votes of those members of the
representative policy board present at a meeting at which at least two-
thirds of the weighted vote, excluding vacancies, is present, for terms of
five years, not to exceed four consecutive full terms, and until their
successors are appointed and have qualified. The sixth member first
appointed shall be appointed for a three-year term ending January 1,
2028, and the seventh member first appointed shall be appointed for a
five-year term ending January 1, 2030. Any vacancy occurring on the
authority shall be filled in the same manner for the unexpired portion of
the term. Any member of the authority may be removed from office by
the representative policy board for cause. Members of the authority
shall receive such compensation to be adjusted every three years by the
Consumer Price Index factor, as described in section 4 of special act 77-
98, as amended by special act 78-24, special act 84-46, public act 02-85, Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 90 of 140
special act 03-11, special act 13-20, special act 24-7 and this act, if
approved by the majority of weighted votes of the membership of the
representative policy board, excluding vacancies, and shall be
reimbursed for their necessary expenses incurred in performance of
their duties.
Sec. 38. Section 9 of special act 77-98, as amended by section 5 of
special act 24-7, is amended to read as follows (Effective from passage):
The authority shall meet at least quarterly. Except as the bylaws of
the authority may provide in emergency situations, the powers of the
authority shall be exercised by the members at a meeting duly called
and held. On and before December 31, 2024, three members shall
constitute a quorum, and on and after January 1, 2025, four members
shall constitute a quorum, provided that after the appointment of all
authority members appointed by the representative policy board of the
Aquarion Regional Water District, a quorum shall be six members, and
no action shall be taken except pursuant to the affirmative vote of a
quorum. The authority may delegate to one or more of its members,
officers, agents or employees such powers and duties as it may deem
proper.
Sec. 39. Section 11 of special act 77-98, as amended by section 5 of
special act 78-24, section 3 of special act 84-46, section 7 of special act 02-
85, and section 3 of special act 17-5, is amended to read as follows
(Effective from passage):
Subject to the provisions of sections 1 to 33, inclusive, of special act
77-98, as amended by special act 78-24, special act 84-46 sections 5 to 7,
inclusive, of special act 99-12, public act 02-85, special act 13-20, special
act 17-5, special act 24-7 and this act, the authority shall have the power:
(a) To sue and be sued; (b) to have a seal and alter the same at its
pleasure; (c) to acquire in the name of the authority by purchase, lease
or otherwise and to hold and dispose of personal property or any Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 91 of 140
interest therein, including shares of stock of a subsidiary corporation;
(d) to acquire in the name of the authority by purchase, lease or
otherwise and to hold and dispose of any real property or interest
therein, including water rights and rights of way and water discharge
rights, which the authority determines to be necessary or convenient,
and to acquire any existing wastewater system or water supply system
or parts thereof which are wholly or partially within the district as
described under section 3 of special act 77-98, as amended by section 2
of special act 78-24, section 1 of special act 84-46 and public act 02-85. As
a means of so acquiring, the authority or a subsidiary corporation may
purchase all of the stock or all of any part of the assets and franchises of
any existing privately owned water or wastewater company,
whereupon the authority or such subsidiary corporation shall succeed
to all rights, powers and franchises thereof. Sections 16-43, 16-50c and
16-50d of the general statutes shall not apply to any action by the
authority or a subsidiary corporation or any action by any privately
owned water company or sewage company, as defined in section 16-1
of the general statutes, taken to effectuate the acquisition of the stock or
all or any part of the assets and franchises of such water company or
sewage company by the authority, provided section 16-43 of the general
statutes shall apply to any action taken to effectuate the acquisition of
the stock or all or any part of the assets and franchises of the Ansonia
Derby Water Company by the authority. Notwithstanding any
provision of section 25-32 of the general statutes, land may be
transferred to the authority or a subsidiary corporation of the authority
as part of such an acquisition. The commissioner of health services shall
not grant a permit for a change in the use of any class I or class II land
owned by the Ansonia Derby Water Company on the effective date of
this section and not transferred to the authority or a subsidiary
corporation or a permit for the sale, lease or assignment of any such class
II land, unless (1) all provisions of section 25-32 of the general statutes
are complied with, and (2) the commissioner of health services
determines, after holding a hearing, notice of which shall be published Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 92 of 140
not later than thirty days before the hearing in one or more newspapers
having a substantial circulation in the municipalities in which the land
is located, that such change in the use or sale, lease, or assignment of the
land will not have a significant adverse impact upon present and future
water supply needs of the authority or a subsidiary corporation of the
authority; [:] (e) to construct and develop any water supply system or
any wastewater system; (f) to own, operate, maintain, repair, improve,
construct, reconstruct, replace, enlarge and extend any of its properties;
(g) any provision in any general statute, special act or charter to the
contrary notwithstanding, but subject to the provisions of section 12 of
special act 77-98, as amended by section 8 of public act 02-85, and section
28 of special act 77-98, as amended by section 9 of special act 78-24, to
sell water, however acquired, to customers within the district or to any
municipality or water company; (h) any provisions in any general
statute, special act or charter to the contrary notwithstanding, to
purchase water approved by the commissioner of health from any
person, private corporation or municipality when necessary or
convenient for the operation of any water supply system operated by
the authority; (i) to adopt and amend bylaws, rules and regulations for
the management and regulation of its affairs and for the use and
protection of the water and properties of the authority or a subsidiary
corporation and, subject to the provisions of any resolution authorizing
the issuance of bonds, rules for the sale of water, the collection and
processing of wastewater and the collection of rents and charges for
both water supply and wastewater functions. A copy of such bylaws,
rules and regulations and all amendments thereto, certified by the
secretary of the authority, shall be filed in the office of the secretary of
the state and with the clerk of each town and city within the district.
Any superior court located within the district shall have jurisdiction
over any violation of such bylaws, rules or regulations and the authority
may prosecute actions before the superior court to enforce such bylaws,
rules and regulations; (j) to make contracts and to execute all necessary
or convenient instruments, including evidences of indebtedness, Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 93 of 140
negotiable or non-negotiable; (k) to borrow money, to issue negotiable
bonds or notes, to fund and refund the same and to provide for the
rights of the holders of the authority's obligations; (l) to open the
grounds in any public street or way or public grounds for the purpose
of laying, installing, maintaining or replacing pipes and conduits,
provided upon the completion of such work the grounds shall be
restored to the condition they were in previously; (m) to enter into
cooperative agreements with other water authorities, municipalities,
water districts, water companies or water pollution control authorities
within or without the district for interconnection of facilities, for
exchange or interchange of services and commodities or for any other
lawful purpose necessary or desirable to effect the purposes of sections
1 to 33, inclusive, of special act 77-98, as amended by special act 78-24,
special act 84-46 and sections 5 to 7, inclusive, of special act 99-12, special
act 13-20, special act 17-5, special act 24-7 and this act, such agreements
to be binding for a period specified therein; (n) to acquire, hold, develop
and maintain land and other real estate and waters for conservation and
for compatible active and passive recreational purposes and to levy
charges for such uses, provided the state department of health finds that
such uses will not harm the quality of water provided by the authority;
(o) to apply for and accept grants, loans or contributions from the United
States, the state of Connecticut or any agency, instrumentality or
subdivision of either of them or from any person, and to expend the
proceeds for any of its purposes; (p) to create programs and policies for
the purpose of conserving water; (q) to do any and all things necessary
or convenient to carry out the powers expressly given in sections 1 to 33,
inclusive, of special act 77-98, as amended by special act 78-24, special
act 84-76, sections 5 to 7, inclusive, of special act 99-12, public act 02-85,
special act 13-20, special act 17-5, special act 24-7 and this act, including
the powers granted by the general statutes to stock corporations, except
the power to issue stock, and the powers granted by the general statutes
to water pollution control authorities; and (r) to borrow money, to issue
negotiable bonds or notes, to fund and refund the same and to provide Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 94 of 140
for the rights of the holders of the authority's obligations for the specific
purpose of acquiring the Aquarion Water Company or one or more of
its subsidiaries.
Sec. 40. Subsection (a) of section 15 of special act 77-98, as amended
by section 8 of special act 99-12 and section 11 of special act 02-85, is
amended to read as follows (Effective from passage):
(a) The representative policy board shall establish an office of
consumer affairs to act as the advocate for consumer interests in all
matters which may affect consumers, including without limitation
matters of rates, water quality and supply and wastewater service
quality. The costs of such office of consumer affairs, unless otherwise
provided by the state, shall jointly be paid by the authority and the
Aquarion Water Authority.
Sec. 41. Special act 77-98, as amended by special act 78-24, special act
84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-
20, special act 17-5, special act 18-04 and special act 24-7, is amended by
adding sections 34 to 65, inclusive, as follows (Effective from passage):
Sec. 34. It is found and declared as a matter of legislative
determination that the creation of the Aquarion Water Authority for the
primary purpose of providing and assuring the provision of an
adequate supply of pure water and the safe disposal of wastewater at
reasonable cost within the Aquarion Regional Water District and such
other areas as may be served pursuant to cooperative agreements and
acquisitions and, to the degree consistent with the foregoing, of
advancing water conservation and the conservation and compatible
recreational use of land held by the authority, conducting or investing
in noncore businesses, provided, at the time of any investment in such
businesses, the authority's investment, less returns of or on such
investments in such businesses, shall not exceed the greater of five per
cent of the authority's net utility plant devoted to its water and Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 95 of 140
wastewater utility businesses or such higher amount approved by a
majority of the total weighted votes of the membership of the Aquarion
representative policy board, excluding vacancies, and the carrying out
of its powers, purposes, and duties under sections 34 to 65, inclusive, of
this act and for the benefit of the people residing in the Aquarion
Regional Water District and the state of Connecticut, and for the
improvement of their health, safety and welfare, that said purposes are
public purposes, and that the authority will be performing an essential
governmental function in the exercise of its powers under sections 34 to
65, inclusive, of this act. The authority shall have the power to conduct
or invest in noncore businesses authorized pursuant to this section,
either directly or through an affiliated business entity.
Sec. 35. As used in sections 34 to 65, inclusive, of this act unless a
different meaning appears in the context: "Authority" means the
Aquarion Water Authority; "district" means the Aquarion Regional
Water District; "Aquarion representative policy board" means the
representative policy board of the Aquarion Regional Water District;
"chief executive officer" means that full time employee of the authority
responsible for the execution of the policies of the authority and for the
direction of the other employees of the authority; "treasurer" means the
treasurer of the authority; "customer" means any person, firm,
corporation, company, association or governmental unit furnished
water or wastewater service by the authority or any owner of property
who guarantees payment for water or wastewater service to such
property; "properties" means the water supply and distribution system
or systems, wastewater collection and treatment systems and other real
or personal property of the authority; "bonds" means bonds, notes and
other obligations issued by the authority; "revenues" means all rents,
charges and other income derived from the operation of the properties
of the authority; "wastewater" means any substance, liquid or solid,
which may contaminate or pollute or affect the cleanliness or purity of
any water; "water supply system" means plants, structures and other Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 96 of 140
real and personal property acquired, constructed or operated for the
purpose of supplying water, including basins, dams, canals, aqueducts,
standpipes, pumping stations, water distribution systems, including
land, reservoirs, conduits, pipelines, mains, compensating reservoirs,
waterworks or sources of water supply, wells, purification or filtration
plants or other plants and works, connections, rights of flowage or
diversion and other plants, structures, conveyances, real or personal
property or rights therein and appurtenances necessary or useful and
convenient for the accumulation, supply or distribution of water or for
the conduct of water or environment related activities; "wastewater
system" means plants, structures and other real and personal property
acquired, constructed or operated for the purpose of collecting, treating
and discharging or reusing wastewater, whether or not interconnected,
including wastewater treatment plants, pipes and conduits for
collection of wastewater, pumping stations and other plants, works,
structures, conveyances, real or personal property or rights therein and
appurtenances necessary or useful and convenient for the collection,
transmission, treatment and disposition of wastewater; "subsidiary
corporation" means a corporation organized under the general statutes
or by special act which owns or operates all or part of a water supply or
a wastewater system within the district and all of the voting stock of
which is owned by the authority; "noncore business" means an activity,
including an activity conducted outside the state of Connecticut, that is
the acquisition of the Aquarion Water Company or one or more of its
subsidiaries or an activity that is related to water, environment,
agriculture, sustainable manufacturing support, or an energy project
consisting of either a class I renewable energy source, as defined in
subdivision (20) of subsection (a) of section 16-1 of the general statutes,
or a class III source, as defined in subdivision (38) of said section, but
excluding wind sources located within the district and any activity
located on property that is class I or class II land owned by the authority;
and "affiliated business entity" means a corporation, a limited liability
company or a limited partnership controlled directly or indirectly by the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 97 of 140
authority that conducts or invests in a noncore business. A reference in
sections 34 to 65, inclusive, of this act to any general statute, public act
or special act shall include any amendment or successor thereto.
Sec. 36. There is created a district to be known as the "Aquarion
Regional Water District" which embraces the area and territory of the
towns and cities of Beacon Falls, Bethel, Bridgeport, Brookfield,
Burlington, Canaan, Cornwall, Danbury, Darien, East Derby, East
Granby, East Hampton, Easton, Fairfield, Farmington, Goshen, Granby,
Greenwich, Groton, Harwinton, Kent, Lebanon, Litchfield, Mansfield,
Marlborough, Middlebury, Monroe, New Canaan, New Fairfield, New
Hartford, New Milford, Newtown, Norfolk, North Canaan, Norwalk,
Norwich, Oxford, Plainville, Redding, Ridgefield, Salisbury, Seymour,
Shelton, Sherman, Simsbury, Southbury, Southington, Stamford,
Stonington, Stratford, Suffield, Torrington, Trumbull, Washington,
Weston, Westport, Wilton, Wolcott, and Woodbury; provided, if the
authority shall neither own land or properties nor sell water or provide
wastewater services directly to customers in any city or town within the
district, the area and territory of such city or town thereupon shall be
excluded from the district.
Sec. 37. (a) The Aquarion representative policy board shall consist of
one elector from each city and town within the district who shall be
appointed by the chief elected official of such city or town, with the
approval of its legislative body, and one elector of the state who shall be
appointed by the governor. The term of the initial members of the
Aquarion representative policy board shall commence when each
member is first appointed and each member shall serve for a term of
three years, except that members first appointed from Beacon Falls,
Bethel, Bridgeport, Brookfield, Burlington, Canaan, Cornwall, Danbury,
Darien, East Derby, East Granby, East Hampton, Easton, Fairfield,
Farmington, Goshen, Granby, Greenwich, Groton, and Harwinton shall
serve until June 30, 2026, the members first appointed from Kent, Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 98 of 140
Lebanon, Litchfield, Mansfield, Marlborough, Middlebury, Monroe,
New Canaan, New Fairfield, New Hartford, New Milford, Newtown,
Norfolk, North Canaan, Norwalk, Norwich, Oxford, Plainville,
Redding, and Ridgefield shall serve until June 30, 2027, and the
members first appointed from Salisbury, Seymour, Shelton, Sherman,
Simsbury, Southbury, Southington, Stamford, Stonington, Stratford,
Suffield, Torrington, Trumbull, Washington, Weston, Westport, Wilton,
Wolcott, and Woodbury shall serve until June 30, 2028, and the member
first appointed by the governor shall serve for a term commencing upon
appointment and ending on the third June thirtieth thereafter; provided
members shall continue to serve until their successors are appointed
and have qualified. In the event of the resignation, death or disability of
a member from any city or town or the state, a successor may be
appointed by the chief elected official of such city or town, or in the case
of the member appointed by the governor, by the governor, for the
unexpired portion of the term. Members shall receive two hundred fifty
dollars, adjusted as provided in this subsection, for each day in which
they are engaged in their duties and shall be reimbursed for their
necessary expenses incurred in the performance of their duties. Such
two-hundred-fifty dollar compensation amount shall be adjusted on
January 1, 2027, and every third year thereafter to reflect changes in the
Consumer Price Index for All Urban Consumers, Northeast Urban, All
Items (1982-84=100) published by the United States Bureau of Labor
Statistics or a comparable successor index. They shall elect a chairman
and a vice-chairman, who shall be members of the Aquarion
representative policy board, and a secretary. The chairman shall receive
a per diem payment of one and one-half times the amount paid to
members and provisional members. The Aquarion representative policy
board shall meet at least quarterly with the authority and such members
of the staff of the authority as the Aquarion representative policy board
deems appropriate.
(b) Notwithstanding the provisions of subsection (a) of this section, Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 99 of 140
no members shall be appointed to the board of the authority or the
Aquarion representative policy board until the date of the Public
Utilities Regulatory Authority's approval of the South Central
Connecticut Regional Water Authority or the Aquarion Water
Authority to own and operate the Aquarion Water Company or one or
more of its subsidiaries. The South Central Connecticut Regional Water
Authority shall send written notice to each entity with appointment
authority pursuant to subsection (a) of this section upon such approval.
(c) In voting upon all matters before the Aquarion representative
policy board, the vote of each member from a city or town shall be
accorded a weight, determined as follows: The sum of (1) the quotient
obtained by dividing the number of customers in the city or town from
which such member is appointed by the total number of customers in
all cities and towns from which members have been appointed, taken
twice, and (2) the quotient obtained by dividing the number of acres of
land owned by the authority within the city or town from which such
member is appointed by the total number of acres of land owned by the
authority in all cities and towns from which members have been
appointed, shall be divided by three, the quotient thereof multiplied by
one hundred and the product thereof shall be rounded to the nearest
whole number. The weighted vote of the member appointed by the
governor shall be one. For the purposes of this section, "number of
customers" means the number of premises or groups of premises treated
as units for ordinary billing or other ordinary receipt of charges by the
authority and shall be determined from the records of the authority on
the last day of its preceding fiscal year and "number of acres of land"
means the number of acres of land rounded to the nearest whole number
as may appear on the records of the authority on the last day of its
preceding fiscal year. Whenever a vote is taken on any matter by the
Aquarion representative policy board, the vote shall be determined in
accordance with this subsection. Members of the Aquarion
representative policy board holding a majority of the votes so weighted Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 100 of 140
shall constitute a quorum.
(d) The Aquarion representative policy board shall adopt and may
amend such rules of procedure and bylaws for the conduct of its affairs
as it deems appropriate. It shall establish (1) a standing committee on
land use and management to consult with the authority on all matters
of land use and managem ent, including acquisition and sale,
recreational use, cutting of timber and other products, mining and
quarrying; (2) a standing committee on finance to consult with the
authority on matters relating to financial and budgetary matters and the
establishment of rates; and (3) a standing committee on consumer affairs
to consult with the authority and the officer of consumer affairs
established pursuant to section 48 of this act on matters concerning the
interests of people residing within the district. The Aquarion
representative policy board may appoint such other committees as it
considers convenient from time to time.
Sec. 38. (a) A public corporation, to be known as the "Aquarion Water
Authority", constituting a public instrumentality and political
subdivision, is created for the purposes, charged with the duties and
granted the powers provided in section 34 to 65, inclusive, of this act.
On and after December 31, 2025, the authority shall consist of eleven
members. Five of the members shall be residents of the Aquarion
Regional Water District who are appointed by the Aquarion
representative policy board and shall not be members of the Aquarion
representative policy board, and six of the members shall be members
of the South Central Connecticut Regional Water Authority who are
appointed by the South Central Connecticut Regional Water Authority
representative policy board. The eleven members of the board for the
Aquarion Water Authority shall be and remain the same eleven
members of the board of the South Central Connecticut Water
Authority. All authority board members shall be appointed without
regard to political affiliation by a majority of the total votes of those Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 101 of 140
members of the Aquarion representative policy board present at a
meeting at which at least two-thirds of the weighted vote, excluding
vacancies, is present, for terms of five years, not to exceed four
consecutive full terms, and until their successors are appointed and
have qualified, except that of the members first appointed, two shall be
appointed for a term ending January 1, 2026, two for a term ending
January 1, 2027, two for a term ending January 1, 2028, two for a term
ending January 1, 2029, and three for a term ending January 1, 2030. Any
vacancy occurring on the authority shall be filled in the same manner
for the unexpired portion of the term. Any member of the authority may
be removed from office by the Aquarion representative policy board for
cause. Members of the authority shall receive such compensation, to be
adjusted every three years by the Consumer Price Index factor, as
described in section 37 of this act, if approved by the majority of
weighted votes of the membership of the Aquarion representative
policy board, excluding vacancies, and shall be reimbursed for their
necessary expenses incurred in performance of their duties.
(b) Notwithstanding the provisions of subsection (a) of this section,
no members shall be appointed to the board of the authority or the
Aquarion representative policy board until the date of the Public
Utilities Regulatory Authority's approval of the South Central
Connecticut Regional Water Authority or the Aquarion Water
Authority to own and operate the Aquarion Water Company or one or
more of its subsidiaries.
Sec. 39. The duration of the Aquarion representative policy board and
of the authority shall be perpetual unless terminated or altered by act of
the General Assembly, provided the General Assembly shall not
terminate the existence of the authority until all of its liabilities have
been met and its bonds have been paid in full or such liabilities and
bonds have otherwise been discharged.
Sec. 40. The officers of the authority shall be a chairman and a vice- Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 102 of 140
chairman, who shall be members of the authority, and a treasurer and a
secretary, who may be members of the authority. The first chairman and
vice-chairman shall be the chairman and vice-chairman of the South
Central Connecticut Regional Water Authority, who shall each serve for
two-year terms, and each subsequent chairman and vice-chairman shall
be elected by the authority for two-year terms. All other officers shall be
elected by the authority for one-year terms. The treasurer shall execute
a bond conditioned upon the faithful performance of the duties of his
office, the amount and sufficiency of which shall be approved by the
authority and the premium therefor shall be paid by the authority. The
authority shall, from time to time, appoint an agent for the service of
process, and shall notify the secretary of the state of the same and
address of said agent.
Sec. 41. The authority may employ such persons as it may determine
to be necessary or convenient for the performance of its duties and may
fix and determine their qualifications, duties and compensation,
provided the chief executive officer shall be the chief executive officer of
the South Central Connecticut Regional Water Authority. The authority
shall establish a position with ongoing responsibilities for the use and
management of its land resources and such other senior managerial
positions as it deems appropriate, which shall be filled by appointment
by the chief executive officer with the approval of the authority. The
authority may also, from time to time, contract for professional services.
Sec. 42. The authority shall meet at least quarterly. Except as the
bylaws of the authority may provide in emergency situations, the
powers of the authority shall be exercised by the members at a meeting
duly called and held. On and after December 31, 2025, six members shall
constitute a quorum, and no action shall be taken except pursuant to the
affirmative vote of a quorum. The authority may delegate to one or more
of its members, officers, agents or employees such powers and duties as
it may deem proper. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 103 of 140
Sec. 43. Except in the event of an emergency, whenever a public
hearing is required under sections 34 to 65, inclusive, of this act, notice
of such hearing shall be published by the Aquarion representative
policy board at least twenty days before the date set therefor, in a
newspaper or newspapers having a general circulation in each city and
town comprising the district. In the event of an emergency, notice of
such hearing shall be authorized by the chairman of the Aquarion
representative policy board and published in such newspaper or
newspapers at least seven days before the date set therefor. If there is no
such newspaper, such notice shall be published in one or more
electronic media, including, without limitation, the authority's Internet
web site, as are likely to reach a broad segment of persons within the
district. Such notice shall set forth the date, time and place of such
hearing and shall include a description of the matters to be considered
at such hearing. A copy of the notice shall be filed in the office of the
clerk of each such city and town and shall be available for inspection by
the public. At such hearings, all the users of the water supply system or
the wastewater system, owners of property served or to be served and
other interested persons shall have an opportunity to be heard
concerning the matter under consideration. When appropriate, the
chairman of the Aquarion representative policy board may convene
more than one hearing on any matter and direct such hearings to be held
in suitable locations within the district so as to assure broader
participation by the general public in discussion of the matters under
consideration, provided in the case of the sale or transfer of real
property pursuant to section 51 of this act, a public hearing shall be held
in the city or town in which such real property is situated. Any decision
of the Aquarion representative policy board on matters considered at
such public hearing shall be in writing and shall be published in a
newspaper or newspapers having a general circulation in each city and
town comprising the district within thirty days after such decision is
made. For purposes of this section, "emergency" means a determination
by the chief executive officer of the authority, the chairman of the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 104 of 140
authority and the chairman of the Aquarion representative policy board,
or their designees, that (1) delay in the award of a contract or the
expenditure of capital funds may threaten the public's safety or place
property at risk, (2) immediate action is necessary to respond to or
recover from a natural disaster or invasion or other hostile action, or (3)
immediate action is necessary to respond to an event threatening or
compromising the integrity of the authority's information systems and
associated infrastructure.
Sec. 44. Subject to the provisions of sections 34 to 65, inclusive, of this
act, the authority shall have the power: (a) To sue and be sued; (b) to
have a seal and alter the same at its pleasure; (c) to acquire in the name
of the authority by purchase, lease or otherwise and to hold and dispose
of personal property or any interest therein, including shares of stock of
a subsidiary corporation; (d) to acquire in the name of the authority by
purchase, lease or otherwise and to hold and dispose of any real
property or interest therein, including water rights and rights of way
and water discharge rights, which the authority determines to be
necessary or convenient, and to acquire any existing wastewater system
or water supply system or parts thereof which are wholly or partially
within the district as described under section 36 of this act. As a means
of so acquiring, the authority or a subsidiary corporation may purchase
all of the stock or all of any part of the assets and franchises of any
existing privately owned water or wastewater company, whereupon the
authority or such subsidiary corporation shall succeed to all rights,
powers and franchises thereof. Sections 16-43, 16-50c and 16-50d of the
general statutes shall not apply to any action by the authority or a
subsidiary corporation or any action by any privately owned water
company or sewage company, as defined in section 16-1 of the general
statutes, taken to effectuate the acquisition of the stock or all or any part
of the assets and franchises of such water company or sewage company
by the authority. Notwithstanding any provision of section 25-32 of the
general statutes, land may be transferred to the authority or a subsidiary Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 105 of 140
corporation of the authority as part of such an acquisition; (e) to
construct and develop any water supply system or any wastewater
system; (f) to own, operate, maintain, repair, improve, construct,
reconstruct, replace, enlarge and extend any of its properties; (g)
notwithstanding any provision of the general statutes, special acts or
this charter, but subject to the provisions of section 45 of this act, to sell
water, however acquired, to customers within the district or to any
municipality or water company; (h) notwithstanding any provision of
the general statutes, special acts or this charter, to purchase water
approved by the Commissioner of Public Health from any person,
private corporation or municipality when necessary or convenient for
the operation of any water supply system operated by the authority; (i)
to adopt and amend bylaws, rules and regulations for the management
and regulation of its affairs and for the use and protection of the water
and properties of the authority or a subsidiary corporation and, subject
to the provisions of any resolution authorizing the issuance of bonds,
rules for the sale of water, the collection and processing of wastewater
and the collection of rents and charges for both water supply and
wastewater functions. A copy of such bylaws, rules and regulations and
all amendments thereto, certified by the secretary of the authority, shall
be filed in the office of the Secretary of the State and with the clerk of
each town and city within the district. Any superior court located within
the district shall have jurisdiction over any violation of such bylaws,
rules or regulations and the authority may prosecute actions before the
superior court to enforce such bylaws, rules and regulations; (j) to make
contracts and to execute all necessary or convenient instruments,
including evidences of indebtedness, negotiable or non-negotiable; (k)
to borrow money, to issue negotiable bonds or notes, to fund and refund
the same and to provide for the rights of the holders of the authority's
obligations; (l) to open the grounds in any public street or way or public
grounds for the purpose of laying, installing, maintaining or replacing
pipes and conduits, provided upon the completion of such work the
grounds shall be restored to the condition they were in previously; (m) Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 106 of 140
to enter into cooperative agreements with other water authorities,
municipalities, water districts, water companies or water pollution
control authorities within or without the district for interconnection of
facilities, for exchange or interchange of services and commodities or for
any other lawful purpose necessary or desirable to effect the purposes
of sections 34 to 65, inclusive, of this act, such agreements to be binding
for a period specified therein; (n) to acquire, hold, develop and maintain
land and other real estate and waters for conservation and for
compatible active and passive recreational purposes and to levy charges
for such uses, provided the state department of health finds that such
uses will not harm the quality of water provided by the authority; (o) to
apply for and accept grants, loans or contributions from the United
States, the state of Connecticut or any agency, instrumentality or
subdivision of either of them or from any person, and to expend the
proceeds for any of its purposes; (p) to create programs and policies for
the purpose of conserving water; (q) to do any and all things necessary
or convenient to carry out the powers expressly given in sections 34 to
36, inclusive, of this act and sections 38 to 40, inclusive, of this act,
including the powers granted by the general statutes to stock
corporations, except the power to issue stock, and the powers granted
by the general statutes to water pollution control authorities; and (r) to
borrow money, to issue negotiable bonds or notes, to fund and refund
the same and to provide for the rights of the holders of the authority's
obligations for the specific purpose of acquiring the Aquarion Water
Company or one or more of its subsidiaries.
Sec. 45. The authority shall not sell water to customers in any part of
the district with respect to which any person, any firm or any
corporation incorporated under the general statutes or any special act
has been granted a franchise to operate as a water company, as defined
in section 16-1 of the general statutes, or in which any town, city or
borough or any district organized for municipal purposes operates a
municipal water supply system, unless the legislative body of such Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 107 of 140
town, city, borough or district, such person, or the governing board of
such firm or corporation shall consent in writing to such sale by the
authority. The authority shall not extend wastewater services into new
areas previously unserved without the approval of either the legislative
body of the town, city, borough or district in which such area is located
or a duly authorized water pollution control authority.
Notwithstanding the provisions of any town or district charter, any
town or district may sell or transfer a wastewater system to the authority
with the approval of the legislative body of such town or district after a
public hearing.
Sec. 46. (a) Except with respect to (1) any real or personal property or
interest therein, the legal title to which is vested in the state or a political
subdivision thereof, (2) any existing water supply system, or (3) any
existing wastewater system, if such authority cannot agree with any
owner upon the terms of acquisition by the authority of any real or
personal property or interest therein which the authority is authorized
to acquire, the authority may proceed, at its election, in the manner
provided in subsection (b) of this section or in the manner provided in
subsection (c) of this section, except that the authority may not proceed
in the manner described in subsections (b) and (c) of this section with
respect to property to be acquired for noncore businesses.
(b) The authority may, after ten days' written notice to such owner,
petition the superior court for the county or judicial district in which
such property is located, or, if said court is not then sitting, any judge of
said court, and thereupon said court or such judge shall appoint a
committee of three disinterested persons, who shall be sworn before
commencing their duties. Such committee, after giving reasonable
notice to the parties, shall view the property in question, hear the
evidence, ascertain the value, assess just damages to the owner or
parties interested in the property and report its doings to said court or
such judge. Within fourteen days after such report is made to said court Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 108 of 140
or such judge, any party may move for the acceptance thereof. Said court
or such judge may accept such report or may reject it for irregular or
improper conduct by the committee in the performance of its duties. If
the report is rejected, the court or judge shall appoint another
committee, which shall proceed in the same manner as did the first
committee. If the report is accepted, such acceptance shall have the effect
of a judgment in favor of the owner of the property against said
authority for the amount of such assessment, and, except as otherwise
provided by law, execution may issue therefor. Such property shall not
be used by such authority until the amount of such assessment has been
paid to the party to whom it is due or deposited for his use with the state
treasurer and, upon such payment or deposit, such property shall
become the property of the authority; provided, if at any stage of
condemnation proceedings brought hereunder, it appears to the court
or judge before whom such proceedings are pending that the public
interest will be prejudiced by delay, said court or such judge may direct
that the authority be permitted to enter immediately upon the property
to be taken and devote it temporarily to the public use specified in such
petition upon the deposit with said court of a sum to be fixed by said
court or such judge, upon notice to the parties of not less than ten days,
and such sum when so fixed and paid shall be applied so far as it may
be necessary for the purpose of the payment of any award of damages
which may be made, with interest thereon from the date of the order of
said court or judge, and the remainder if any returned to the authority.
If such petition is dismissed or no award of damages is made, said court
or such judge shall direct that the money so deposited, so far as it may
be necessary, shall be applied to the payment of any damages that the
owner of such property or other parties in interest may have sustained
by such entry upon and use of such property, and of the costs and
expenses of such proceedings, such damages to be ascertained by said
court or such judge or a committee to be appointed for that purpose, and
if the sum so deposited is insufficient to pay such damages and all costs
and expenses so awarded, judgment shall be entered against the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 109 of 140
authority for the deficiency, to be enforced and collected in the same
manner as a judgment by the superior court; and the possession of such
property shall be restored to the owner or owners thereof. The expenses
or costs of any such proceedings shall be taxed by said court or such
judge and paid by the authority.
(c) The authority, in its name, may proceed in the manner specified
for redevelopment agencies in accordance with sections 8-128 to 8-133,
inclusive, of the general statutes.
Sec. 47. With the approval of the Aquarion representative policy
board, the authority shall establish just and equitable rates or charges
for the use of the water supply system and the wastewater system
authorized herein, to be paid by any customer, including rates of
interest on unpaid rates or charges, and may change such rates, charges
or rates of interest from time to time. Such water supply system rates or
charges shall be established so as to provide funds sufficient in each
year, with other water supply related revenues, if any, (a) to pay the cost
of maintaining, repairing and operating the water supply system and
each and every portion thereof, to the extent that adequate provision for
the payment of such cost has not otherwise been made, (b) to pay the
principal of and the interest on outstanding water supply bonds of the
authority as the same shall become due and payable, (c) to meet any
requirements of any resolution authorizing, or trust agreement
securing, such bonds of the authority, (d) to make payments in lieu of
taxes as provided in section 54 of this act, as the same become due and
payable, upon the water supply system properties of the authority or of
a subsidiary corporation to the municipalities in which such properties
are situated, (e) to provide for the maintenance, conservation and
appropriate recreational use of the land of the authority, and (f) to pay
all other reasonable and necessary expenses of the authority and of the
Aquarion representative policy board to the extent that such expenses
are allocable to the water supply system activities of the authority and Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 110 of 140
the Aquarion representative policy board. Such wastewater system
rates or charges shall be established so as to provide funds sufficient in
each year with other wastewater related revenues, if any, (1) to pay the
cost of maintaining, repairing and operating the wastewater system and
each and every portion thereof, to the extent that adequate provision for
the payment of such cost has not otherwise been made, (2) to pay the
principal of and the interest on outstanding wastewater bonds of the
authority as the same shall become due and payable, (3) to meet any
requirements of any resolution authorizing, or trust agreement
securing, such bonds of the authority, and (4) to pay all other reasonable
and necessary expenses of the authority and of the Aquarion
representative policy board to the extent that such expenses are
allocable to the wastewater activities of the authority and of the
Aquarion representative policy board. No such rate or charge shall be
established until it has been approved by the Aquarion representative
policy board, after said board has held a public hearing at which all the
users of the waterworks system or the wastewater system, the owners
of property served or to be served and others interested have had an
opportunity to be heard concerning such proposed rate or charge. The
Aquarion representative policy board shall approve such rates and
charges unless it finds that such rates and charges will provide funds in
excess of the amounts required for the purposes described previously in
this section, or unless it finds that such rates and charges will provide
funds insufficient for such purposes. The rates or charge, so established
for any class of users or property served, shall be extended to cover any
additional premises thereafter served which are within the same class,
without the necessity of a hearing thereon. Any change in such rates or
charges shall be made in the same manner in which they were
established. The rates or charges levied upon any customer of any water
supply system shall not be required to be equalized with the authority's
existing rates, but may be set on a separate basis, provided such rates
are just, equitable and nondiscriminatory. Such rates or charges, if not
paid when due, shall constitute a lien upon the premises served and a Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 111 of 140
charge against the owners thereof, which lien and charge shall bear
interest not to exceed the maximum rate as would be allowed for unpaid
taxes. Such lien shall take precedence over all other liens or
encumbrances except taxes and may be foreclosed against the lot or
building served in the same manner as a lien for taxes, provided all such
liens shall continue until such time as they shall be discharged or
foreclosed by the authority without the necessity of filing certificates of
continuation, but in no event for longer than fifteen years. The amount
of any such rate or charge that remains due and unpaid after twenty-
eight days, which number of days may be changed with the approval of
the majority of the weighted votes of the membership of the Aquarion
representative policy board, excluding vacancies, with interest thereon
at a rate approved by the Aquarion representative policy board but not
to exceed the maximum interest rate allowed pursuant to the
Connecticut general statutes for unpaid property taxes and with
reasonable attorneys' fees, be recovered by the authority in a civil action
in the name of the authority against such owners. Any municipality
shall be subject to the same rate or charges under the same conditions as
other users of the water supply system or the wastewater system. The
assets or the revenues of the water system shall not be available to
satisfy debts, judgments or other obligations arising out of the operation
of the wastewater system and the assets or the revenues of the
wastewater system shall not be available to satisfy debts, judgments or
other obligations arising out of the operation of the water system.
Sec. 48. The office of consumer affairs established by the
representative policy board of the South Central Connecticut Regional
Water District shall act as the advocate for consumer interests in all
matters which may affect consumers of the Aquarion Regional Water
District, including without limitation matters of rates, water quality and
supply and wastewater service quality and shall have those powers and
authorizations set forth in section 15 of special act 77-98, as amended by
section 8 of special act 99-12 and section 11 of special act 02-85, as Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 112 of 140
amended by this act. The costs of such office of consumer affairs, unless
otherwise provided by the state, shall be jointly shared paid by the
South Central Connecticut Regional Water Authority and the Aquarion
Water Authority.
Sec. 49. All contracts in excess of fifty thousand dollars for any
supplies, materials, equipment, construction work or other contractual
services shall be in writing and shall be awarded upon either sealed bids
or proposals or electronic submission of bids or proposals, and in each
case made in compliance with a public notice duly advertised by
publication in one or more newspapers of general circulation or, if there
are no such newspapers, in appropriate electronic media, including,
without limitation, the authority's Internet web site, as are likely to reach
a broad segment of potential vendors, at least ten days before the time
fixed for review of said bids or proposals, except for (1) contracts for
professional services, (2) when the supplies, materials, equipment or
work can only be furnished by a single party, (3) when the authority
determines by a two-thirds vote of the entire authority that the award
of such contract by negotiation without public bidding will be in the best
interest of the authority, or (4) when the procurement is made as a result
of participation in a procurement group, alliance or consortium made
up of other state or federal government entities in which the state of
Connecticut is authorized to participate. The authority may in its sole
discretion reject all such bids or proposals or any bids received from a
person, firm or corporation the authority finds to be unqualified to
perform the contract, and shall award such contract to the lowest
responsible bidder qualified to perform the contract.
Sec. 50. (a) If any member or employee of the Aquarion representative
policy board or of the authority or any employee of a subsidiary
corporation or an affiliated business entity is financially interested in or
has any personal beneficial interest, directly or indirectly, in any
proposed contract or proposed purchase order for any supplies, Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 113 of 140
materials, equipment or contractual services to be furnished to or used
by the Aquarion representative policy board, the authority, a subsidiary
corporation or an affiliated business entity such member or employee
shall immediately so inform the Aquarion representative policy board,
the authority, the subsidiary corporation or the affiliated business entity
whichever he or she is a member or employee of, and shall take no part
in the deliberations or vote concerning such contract or purchase order.
The Aquarion representative policy board, as to its members and
employees, and the subsidiary corporation or affiliated business entity
as to its employees, the authority, as to its members and employees, may
terminate the membership or employment of any person who violates
this subsection.
(b) No member or employee of the Aquarion representative policy
board, the authority, a subsidiary corporation or an affiliated business
entity shall accept or receive, directly or indirectly, from any person,
firm or corporation to which any contract or purchase order may be
awarded, by rebate, gift or otherwise, any promise, obligation or
contract for future reward or compensation or any money or anything
of value in excess of ten dollars, provided the aggregate value of all such
things provided by a donor to a recipient in any calendar year shall not
exceed fifty dollars and, excluding any food or beverage or food and
beverage, costing less than fifty dollars in the aggregate per recipient in
a calendar year, and consumed on an occasion or occasions at which the
person paying, directly or indirectly, for the food or beverage, or his
representative, is in attendance. Any person who violates any provision
of this subsection shall be fined not more than five hundred dollars or
imprisoned for not more than six months or both.
Sec. 51. (a) Notwithstanding any provision of sections 34 to 65,
inclusive, of this act, the authority shall not sell or otherwise transfer any
unimproved real property or any interest or right therein, except for
access or utility purposes, or develop such property for any use not Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 114 of 140
directly related to a water supply function, other than for public
recreational use not prohibited by section 25-43c of the general statutes,
until the land use standards and disposition policies required by
subsection (b) of this section have been approved by the Aquarion
representative policy board, unless the chief executive officer of the
town or city in which such property is located has approved such sale,
transfer or development in writing. The provisions of this section shall
not apply to any portion of a wastewater system.
(b) Within two years from the date it acquires all or part of a water
supply system, the authority shall develop and submit to the Aquarion
representative policy board for approval (1) standards for determining
the suitability of its real property for categories of land use, including
which, if any, of its real property may be surplus with regard to the
purity and adequacy of both present and future water supply, which, if
any, may be desirable for specified modes of recreation or open space
use and which may be suitable for other uses, giving due consideration
to the state plan of conservation and development, to classification and
performance standards recommended in the final report of the council
on water company lands pursuant to subsection (c) of section 16-49c of
the general statutes and to such other plans and standards as may be
appropriate, and (2) policies regarding the disposition of its real
property including identification of dispositions which are unlikely to
have any significant effect on the environment. Prior to approving any
standards or policies specified in this subsection, the Aquarion
representative policy board shall hold one or more public hearings to
consider the proposed standards and policies. The proposed standards
and policies shall be available for public inspection in the offices of the
authority from the date notice of such hearing is published. The
authority may amend such standards and policies from time to time
with the approval of the Aquarion representative policy board, which
shall hold public hearings if it deems such amendments substantial. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 115 of 140
(c) After approval of land use standards and disposition policies in
the manner provided in subsection (b) of this section, the authority shall
not: (1) Sell or otherwise transfer any real property or any interest or
right therein, except (A) for access, (B) for utility purposes, or (C) to
dedicate land as open space by conveying a conservation restriction, as
defined in section 47-42a of the general statutes, to the federal, state or a
municipal government or a nonprofit land-holding organization, as
defined in section 47-6b of the general statutes, or (2) develop such
property for any use not directly related to a water supply function,
other than for public recreational use not prohibited by section 25-43c of
the general statutes, without the approval of a majority of the weighted
votes of all of the members of the Aquarion representative policy board,
excluding vacancies, in the case of a parcel of twenty acres or less, and
by three-fourths of the weighted votes of all of the members of said
board, excluding vacancies, in the case of a parcel in excess of twenty
acres. The Aquarion representative policy board shall not approve such
sale or other transfer or development unless it determines, following a
public hearing, that the proposed action (A) conforms to the established
standards and policies of the authority, (B) is not likely to affect the
environment adversely, particularly with respect to the purity and
adequacy of both present and future water supply, and (C) is in the
public interest, giving due consideration, among other factors, to the
financial impact of the proposed action on the customers of the
authority and on the municipality in which the real property is located.
(d) Each request by the authority for approval pursuant to subsection
(c) of this section shall be accompanied by an evaluation of the potential
impact of the proposed action for which approval is requested, which
shall include: (1) A description of the real property and its environment,
including its existing watershed function and the costs to the authority
of maintaining such property in its current use, (2) a statement that the
proposed action conforms to the land classification standards and
disposition policies of the authority, (3) a detailed statement of the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 116 of 140
environmental impact of the proposed action and, if appropriate, of any
alternatives to the proposed action, considering (A) direct and indirect
effects upon the purity and adequacy of both present and future water
supply, (B) the relationship of the proposed action to existing land use
plans, including municipal and regional land use plans and the state
plan of conservation and development, (C) any adverse environmental
effects which cannot be avoided if the proposed action is implemented,
(D) any irreversible and irretrievable commitments of resources which
would be involved should the proposed action be implemented, and (E)
any mitigation measures proposed to minimize adverse environmental
impacts; except that for a sale or transfer identified in accordance with
subsection (b) of this section as being unlikely to have any significant
effect on the environment, the authority may submit a preliminary
assessment of the impact likely to occur in lieu of such detailed
statement of environmental impact, and the Aquarion representative
policy board may, on the basis of such preliminary assessment, waive
or modify the requirements for such detailed statement, and (4) a
summary of the final evaluation and recommendation of the authority.
(e) The Aquarion representative policy board shall submit the
evaluation required by subsection (d) of this section for comment and
review, at least sixty days in advance of the public hearing, to the
department of health, the department of planning and energy policy,
the regional planning agency for the region, the chief executive officer
of the city or town in which the real property is situated and other
appropriate agencies, and shall make such evaluation available to the
public for inspection. The decision of the Aquarion representative policy
board approving or disapproving the proposed action shall be
published in a newspaper or newspapers having a general circulation
within the district and copies of such decision shall be filed with the
clerk of each town and city in the district.
(f) Whenever the authority intends to sell or otherwise transfer any Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 117 of 140
unimproved real property or any interest or right therein after approval
by the Aquarion representative policy board, the authority shall first
notify in writing, by certified mail, return receipt requested, the
Commissioner of Energy and Environmental Protection and the
legislative body of the city or town in which such land is situated, of
such intention to sell or otherwise transfer such property and the terms
of such sale or other transfer, and no agreement to sell or otherwise
transfer such property may be entered into by the authority except as
provided in this subsection. (1) Within ninety days after such notice has
been given, the legislative body of the city or town or the Commissioner
of Energy and Environmental Protection may give written notice to the
authority by certified mail, return receipt requested, of the desire of the
city, town or state to acquire such property and each shall have the right
to acquire the interest in the property which the authority has declared
its intent to sell or otherwise transfer, provided the state's right to
acquire the property shall be secondary to that of the city or town. (2) If
the legislative body of the city or town or the Commissioner of Energy
and Environmental Protection fails to give notice as provided in
subdivision (1) of this subsection or gives notice to the authority by
certified mail, return receipt requested, that the city, town or state does
not desire to acquire such property, the city or town or the state shall
have waived its right to acquire such property in accordance with the
terms of this subsection. (3) Within eighteen months after notice has
been given as provided in subdivision (1) of this subsection by the city
or town or the state of its desire to acquire such property, the authority
shall sell the property to the city or town or the state, as the case may be,
or, if the parties cannot agree upon the amount to be paid therefor, the
city or town or the state may proceed to acquire the property in the
manner specified for redevelopment agencies in accordance with
sections 8-128 to 8-133, inclusive, of the general statutes, provided
property subject to the provisions of subsections (b) and (c) of section
25-32 of the general statutes shall not be sold without the approval of
the department of health. (4) If the city or town or the state fails to Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 118 of 140
acquire the property or to proceed as provided in said sections within
eighteen months after notice has been given by the city or town or the
state of its desire to acquire the property, such city or town or the state
shall have waived its rights to acquire such property in accordance with
the terms of this subsection. (5) Notwithstanding the provisions of
section 54 of this section, the authority shall not be obligated to make
payments in lieu of taxes on such property for the period from the date
the city or town gives notice of its desire to acquire such property. (6)
Notwithstanding the provisions of subdivision (4) of this subsection, if
the authority thereafter proposes to sell or otherwise transfer such
property to any person subject to less restrictions on use or for a price
less than that offered by the authority to the city or town and the state,
the authority shall first notify the city or town and the Commissioner of
Energy and Environmental Protection of such proposal in the manner
provided in subdivision (1) of this subsection, and such city or town and
the state shall again have the option to acquire such property and may
proceed to acquire such property in the same manner and within the
same time limitations as are provided in subdivisions (1) to (4),
inclusive, of this subsection. (7) The provisions of this subsection shall
not apply to transfers of real property from the authority to any public
service company. (8) A copy of each notice required by this subsection
shall be sent by the party giving such notice to the clerk of the town or
city in which the real property is situated and such clerk shall make all
such notices part of the appropriate land records.
(g) Nothing contained in this section shall be construed to deprive the
state Department of Public Health of its jurisdiction under section 25-32
of the general statutes. The authority shall notify the state Commissioner
of Public Health of any proposed sale or other transfer of land, or change
or use, as required by said section.
(h) The authority shall use the proceeds of any sale or transfer under
this section solely for capital improvements to its remaining properties, Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 119 of 140
acquisition of real property or any interest or right therein, retirement
of debt or any combination of such purposes.
(i) The provisions of this section shall apply to any unimproved real
property or any interest or right therein related to the water supply
system whether owned or possessed by the authority or by any
subsidiary corporation.
Sec. 52. The authority shall not (1) acquire, by purchase, lease or
otherwise any existing water supply system or parts thereof or any
wastewater system or parts thereof, (2) commence any project costing
more than three and one-half million dollars to repair, improve,
construct, reconstruct, enlarge and extend any of its properties or
systems, or (3) acquire or make a subsequent investment in any noncore
business in an amount more than one and one-half million dollars
without the approval, following a public hearing, of a majority of the
total weighted votes of the membership of the Aquarion representative
policy board, excluding vacancies. The dollar amounts specified in
subdivisions (2) and (3) of this section shall be adjusted every three years
by the Consumer Price Index factor, as described in section 37 of this act,
with the approval of a majority of the weighted votes of the membership
of the Aquarion representative policy board, excluding vacancies.
Sec. 53. (a) The authority shall have an annual audit of its accounts,
books and records by a certified public accountant selected by the
Aquarion representative policy board. A copy of the audit shall be filed
in the office of the town clerk in each town within the district and shall
be available for public inspection during the ordinary business hours of
the authority at the principal office of the authority. A concise financial
statement shall be posted annually on the Aquarion Water Authority's
web site.
(b) The attorney general may examine the books, accounts and
records of the authority. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 120 of 140
Sec. 54. (a) Neither the authority nor a subsidiary corporation or an
"affiliated business entity" shall be required to pay taxes or assessments
upon any of the properties acquired by it or under its jurisdiction,
control or supervision, provided in lieu of such taxes or assessments the
authority shall make annual payments to each municipality in which it
or a subsidiary corporation owns property related to the water supply
system equal to the taxes which would otherwise be due for the
property of the authority or such subsidiary corporation in such
municipality, excluding any improvements made to or constructed on
any such real property by the authority or such subsidiary corporation,
provided land owned by the authority or a subsidiary corporation
related to the water supply system shall be assessed in accordance with
section 12-63 of the general statutes, and provided further payments for
property acquired by the authority or a subsidiary corporation during
any tax year shall be adjusted for such fractional year in accordance with
the customary practice in such municipality for adjusting taxes between
the buyer and seller of real property. In addition, the authority or a
subsidiary corporation shall reimburse each such municipality for its
expenses in providing municipal services to any improvements made to
or constructed on any real property by the authority or such subsidiary
corporation within such municipality. As used in this section,
"improvements" does not include water pipes or improvements to water
pipes.
(b) The authority may contest the assessed valuation of any
properties owned by the authority or a subsidiary corporation with
respect to which any payment in lieu of taxes is determined in the same
manner as any owner of real property in such municipality. Payments
in lieu of taxes payable to any municipality shall be paid by the authority
to the municipality upon the date and in the manner provided for the
payment of real property taxes of the municipality.
(c) In the event the authority in any year does not have sufficient Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 121 of 140
funds to make such payments in lieu of taxes, or any portion of them, as
the same become due and payable, the authority shall adjust its rates
and charges and the Aquarion representative policy board shall
approve such adjustment of rates and charges, after a public hearing
thereon as provided in section 14 of special act 77-98, as amended by
section 6 of special act 78-24, so as to provide funds within one year after
the date on which such payment became due and payable to make such
payment. Any municipality or any holder of bonds or notes of the
authority aggrieved by the failure of the authority to make any payment
in lieu of taxes or portion thereof as the same becomes due and payable
may apply to the superior court for the county in which such
municipality is situated for an order directing the authority to
appropriately increase its rates and charges.
(d) Neither the authority nor a subsidiary corporation shall be
required to pay taxes imposed upon or measured by the receipts or
earnings derived by the authority or such subsidiary corporation
through the ownership or operation of a water supply system, or
imposed as a result of the income, powers, activities or items reflected
on the balance sheet of the authority or such subsidiary corporation.
Sec. 55. (a) The authority, subject to the approval of the Aquarion
representative policy board, shall have the power and is authorized
from time to time to issue its negotiable bonds for any of its corporate
purposes, including incidental expenses in connection therewith, and to
secure the payment of the same by a lien or pledge covering all or part
of its contracts, earnings or revenues. The authority shall have power
from time to time, without the approval of the Aquarion representative
policy board, to refund any bonds by the issuance of new bonds within
the terms of any refunding provisions of its bonds, whether the bonds
to be refunded have or have not matured, and may issue bonds partly
to refund bonds then outstanding and partly for any of its public
purposes. Except as may be otherwise expressly provided by the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 122 of 140
authority every issue of bonds by the authority shall be preferred
obligations, taking priority over all other claims against the authority,
including payments in lieu of taxes to any municipality, and payable out
of any moneys, earnings or revenues of the authority, subject only to
any agreements with the holders of particular bonds pledging any
particular moneys, earnings or revenues. Notwithstanding the fact that
the bonds may be payable from a special fund, if they are otherwise of
such form and character as to be negotiable instruments under the terms
of the uniform commercial code, the bonds shall be negotiable
instruments within the meaning of and for all the purposes of the
uniform commercial code, subject only to the provisions of the bonds
for registration.
(b) The bonds shall be authorized by resolution of the authority and
shall bear such date or dates, mature at such time or times, bear interest
at such rates per annum, not exceeding statutory limitations, be payable
at such times, be in such denomination, be in such form, either coupon
or registered, carry such registration privileges, be executed in such
manner, be payable in lawful money of the United States of America, at
such place or places, and be subject to such terms of redemption as such
resolution or resolutions may provide. All bonds of the authority shall
be sold through a negotiated sale or a public sale to the bidder who shall
offer the lowest true interest cost to the authority, to be determined by
the authority.
(c) Any resolution or resolutions authorizing any bonds or any issue
of bonds may contain provisions which shall be a part of the contract
with the holders of the bonds thereby authorized as to (1) pledging all
or any part of the moneys, earnings, income and revenues derived from
all or any part of the properties of the authority to secure the payment
of the bonds or of any issue of the bonds subject to such agreement with
the bondholders as may then exist, (2) the rates, rentals, fees and other
charges to be fixed and collected and the amounts to be raised in each Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 123 of 140
year thereby, and the use and disposition of the earnings and other
revenues, (3) the setting aside of reserves and the creation of sinking
funds and the regulation and disposition thereof, (4) limitations on the
rights of the authority to restrict and regulate the use of the properties
in connection with which such bonds are issued, (5) limitations on the
purposes to which, and the manner in which, the proceeds of sale of any
issue of bonds may be applied, (6) limitations on the issuance of
additional bonds, the terms upon which additional bonds may be issued
and secured, and the refunding of outstanding or other bonds, (7) the
procedure, if any, by which the terms of any contract with bondholders
may be amended or abrogated, the amount of bonds the holders of
which must consent thereto and the manner in which such consent may
be given, (8) the creation of special funds into which any earnings or
revenues of the authority may be deposited, (9) the terms and provisions
of any trust deed or indenture securing the bonds or under which bonds
may be issued, (10) definitions of the acts or omission to act which shall
constitute a default in the obligations and duties of the authority to the
bondholders and providing the rights and remedies of the bondholders
in the event of such default, including as a matter of right the
appointment of a receiver, provided such rights and remedies shall not
be inconsistent with the general laws of this state, (11) limitations on the
power of the authority to sell or otherwise dispose of its properties, (12)
any other matters, of like or different character, which in any way affect
the security or protection of the bonds, and (13) limitations on the
amount of moneys derived from the properties to be expended for
operating, administrative or other expenses of the authority.
(d) The authority may obtain from a commercial bank or insurance
company a letter of credit, line of credit or other liquidity facility or
credit facility for the purpose of providing funds for the payments in
respect of bonds, notes or other obligations required by the holder
thereof to be redeemed or repurchased prior to maturity or for
providing additional security for such bonds, notes or other obligations. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 124 of 140
In connection therewith, the authority may enter into reimbursement
agreements, remarketing agreements, standby bond purchase
agreements and any other necessary or appropriate agreements. The
authority may pledge all or any part of the moneys, earnings, income
and revenues derived from all or any part of the properties of the
authority and any other property which may be pledged to bondholders
to secure its payment obligations under any agreement or contract
entered into pursuant to this section subject to such agreements with the
bondholders as may then exist.
(e) In connection with or incidental to the carrying of bonds or notes
or in connection with or incidental to the sale and issuance of bonds or
notes, the authority may enter into such contracts to place the obligation
of the authority, as represented by the bonds or notes, in whole or in
part, on such interest rate or cash flow basis as the authority may
determine, including without limitation, interest rate swap agreements,
insurance agreements, forward payment conversion agreements,
contracts providing for payments based on levels of, or changes in,
interest rates or market indices, contracts to manage interest rate risk,
including, without limitation, interest rate floors or caps, options, puts,
calls and similar arrangements. Such contracts shall contain such
payment, security, default, remedy and other terms and conditions as
the authority may deem appropriate and shall be entered into with such
party or parties as the authority may select, after giving due
consideration, where applicable, for the creditworthiness of the
counterparty or counterparties, provided such parties or counterparties
shall be a financial institution whose unsecured long-term obligations
are rated within the top two rating categories of any nationally
recognized rating service. The authority may pledge all or any part of
the moneys, earnings, income and revenues derived from all or any part
of the properties of the authority and any other property which may be
pledged to bondholders to secure its payment obligations under any
agreement or contract entered into pursuant to this section subject to Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 125 of 140
such agreements with the bondholders as may then exist.
(f) It is the intention of the general assembly that any pledge of
earnings, revenues or other moneys made by the authority shall be valid
and binding from the time when the pledge is made; that the earnings,
revenues or other moneys so pledged and thereafter received by the
authority shall immediately be subject to the lien of such pledge without
any physical delivery thereof or further act, and that the lien of any such
pledge shall be valid and binding as against all parties having claims of
any kind in tort, contract or otherwise against the authority irrespective
of whether such parties have notice thereof. Neither the resolution nor
any other instrument by which a pledge is created need be recorded.
(g) Neither the members of the authority nor any person executing
the bonds shall be liable personally on the bonds or be subject to any
personal liability or accountability by reason of the issuance thereof.
(h) The authority shall have the power out of any funds available to
purchase, as distinguished from the power of redemption above, and all
bonds so purchased shall be cancelled.
(i) In the discretion of the authority, the bonds may be secured by a
trust indenture by and between the authority and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company. Such trust indenture may contain such provisions for
protecting and enforcing the rights and remedies of the bondholders as
may be reasonable and proper and not in violation of any law, including
covenants setting forth the duties of the authority in relation to the
construction, maintenance, operation, repair and insurance of the
properties and the custody, safeguarding and application of all moneys,
and may provide that the properties shall be constructed and paid for
under the supervision and approval of consulting engineers. The
authority may provide by such trust indenture or other depository for
the methods of disbursement thereof, with such safeguards and Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 126 of 140
restrictions as it may determine. All expenses incurred in carrying out
such trust indenture may be treated as part of the cost of maintenance,
operation and repair of the properties. If the bonds are secured by a trust
indenture, bondholders shall have no authority to appoint a separate
trustee to represent them.
(j) Notwithstanding any other provision of sections 34 to 65,
inclusive, of this act, any resolution or resolutions authorizing bonds or
notes of the authority shall contain a covenant by the authority that it
will at all times maintain rates, fees, rentals or other charges sufficient
to pay, and that any contracts entered into by the authority for the sale
and distribution of water or the collection of wastewater shall contain
rates, fees, rentals or other charges sufficient to pay, the cost of operation
and maintenance of the properties and the principal of and interest on
any obligation issued pursuant to such resolution or resolutions as the
same severally become due and payable, and to maintain any reserves
or other funds required by the terms of such resolution or resolutions.
(k) If any officer of the authority whose signature or a facsimile of
whose signature appears on any bonds or coupons ceases to be such
officer before delivery of such bonds, such signature or such facsimile
shall nevertheless be valid and sufficient for all purposes as if they had
remained in office until such delivery.
Sec. 56. The authority shall have the power and is authorized to issue
negotiable notes and may renew the same from time to time, but the
maximum maturity of any such note, including renewals thereof, shall
not exceed eight years from date of issue of such original note. Such
notes shall be paid from any moneys of the authority available therefor
and not otherwise pledged or from the proceeds of the sale of the bonds
of the authority in anticipation of which they were issued. The notes
shall be issued and may be secured in the same manner as the bonds
and such notes and the resolution or resolutions authorizing such notes
may contain any provisions, conditions or limitations which the bonds Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 127 of 140
or a bond resolution of the authority may contain. Such notes shall be as
fully negotiable as the bonds of the authority.
Sec. 57. The state of Connecticut does pledge to and agree with the
holders of the bonds or notes of the authority that the state will not limit
or alter the rights vested in the authority to acquire, construct, maintain,
operate, reconstruct and improve the properties, to establish and collect
the revenues, rates, rentals, fees and other charges referred to in sections
34 to 66, inclusive, of this act and to fulfill the terms of any agreements
made with the holders of the bonds or notes, or in any way impair the
rights and remedies of the bondholders or noteholders until the bonds
or notes together with interest thereon, interest on any unpaid
installments of interest and all costs and expenses in connection with
any action or proceeding by or on behalf of the bondholders or
noteholders are fully met and discharged.
Sec. 58. The bonds, notes or other obligations of the authority shall
not be a debt of the state of Connecticut or of any municipality, and
neither the state nor any municipality shall be liable therefor, nor shall
they be payable out of funds other than those of the authority.
Sec. 59. The bonds and notes of the authority shall be securities in
which all public officers and bodies of this state and all municipalities,
all insurance companies and associations and other persons carrying on
an insurance business, all banks, bankers, trust companies, savings
banks, savings and loan associations, investment companies and other
persons carrying on a banking business and all other persons whatever,
except as hereinafter provided, who are now or may be authorized to
invest in bonds or other obligations of the state, may properly and
legally invest funds, including capital in their control or belonging to
them; provided, notwithstanding the provisions of any other general
statute or special act to the contrary, such bonds shall not be eligible for
the investment of funds, including capital, of trusts, estates or
guardianships under the control of individual administrators, Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 128 of 140
guardians, executors, trustees or other individual fiduciaries. The bonds
shall also be securities that may be deposited with and may be received
by all public officers and bodies of this state and all municipalities and
municipal subdivisions for any purpose for which the deposit of bonds
or other obligations of this state is now or may be authorized.
Sec. 60. The state of Connecticut covenants with the purchasers and
with all subsequent holders and transferees of bonds or notes issued by
the authority, in consideration of the acceptance of and payment for the
bonds or notes, that the bonds and notes of the authority, the income
therefrom and all moneys, funds and revenues pledged to pay or secure
the payment of such bonds or notes shall at all times be free from
taxation.
Sec. 61. Nothing in sections 34 to 65, inclusive, of this act shall be
construed to deprive the Commissioner of Energy and Environmental
Protection, the Commissioner of Public Health or any successor
commissioner or board of any jurisdiction which such commissioners or
boards may now or hereafter have. Neither the Public Utilities
Regulatory Authority nor any successor board or commissioner shall
have jurisdiction of any kind over the authority, a subsidiary
corporation, the Aquarion representative policy board or the rates fixed
or charges collected by the authority.
Sec. 62. Insofar as the provisions of sections 34 to 65, inclusive, of this
act are inconsistent with the provisions of any other general statute,
special act or any municipal ordinance, the provisions of sections 34 to
65, inclusive, of this act shall be controlling; provided nothing contained
in sections 34 to 65, inclusive, of this act shall exempt the authority from
compliance with zoning regulations lawfully established by any
municipality, except that the plants, structures and other facilities of the
water supply system or the wastewater system owned or operated by
the authority shall be permitted uses in all zoning districts in every city,
town or borough within the district; and provided further that the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 129 of 140
authority may not construct purification or filtration plants or
wastewater treatment plants in any zoning district in which such use is
not permitted under local zoning regulations without first obtaining
approval of the proposed location of such facility from the Aquarion
representative policy board following a public hearing.
Sec. 63. (a) The authority or any person who is aggrieved by a
decision of the Aquarion representative policy board with respect to the
establishment of rates or charges, the establishment of land use
standards and disposition policies, the sale or other transfer or change
of use of real property, the location of purification, filtration or
wastewater treatment plants, the commencement of any project costing
more than three and one-half million dollars, and as adjusted by the
Consumer Price Index factor, as described in section 37 of this act, and
subject to the approval of a majority of the weighted votes of the
membership of the Aquarion representative policy board, excluding
vacancies, to repair, improve, construct, reconstruct, enlarge or extend
any of the properties or systems of the authority or the acquisition by
purchase, lease or otherwise of any existing water supply system,
wastewater system or part thereof, other than the purchase of all or any
part of the properties and franchises of the Aquarion Water Company,
is entitled to review by the Superior Court as provided in this section.
For the purposes of this section, the holders of any bonds or notes of the
authority and any trustee acting on behalf of such holders shall be
deemed aggrieved persons with respect to any decision of the Aquarion
representative policy board which violates any covenant or other
provision of the resolution or resolutions authorizing such bonds or
notes.
(b) Proceedings for review shall be instituted by filing a petition in
the superior court for the judicial district of Hartford within forty-five
days after publication of the decision of the Aquarion representative
policy board or, if a rehearing is requested, within forty-five days after Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 130 of 140
the decision thereon. Copies of the petition shall be served upon the
Aquarion representative policy board and published in a newspaper or
newspapers having a general circulation in each town or city
comprising the district.
(c) The filing of the petition shall not of itself stay enforcement of the
decision of the Aquarion representative policy board. The Aquarion
representative policy board may grant, or the reviewing court may
order, a stay upon appropriate terms, provided enforcement of a
decision respecting the establishment of rates or charges may be stayed
only after issuance of a judgment for the appellant by the reviewing
court.
(d) Within thirty days after service of the petition, or within such
further time as may be allowed by the court, the Aquarion
representative policy board shall transmit to the reviewing court the
original or a certified copy of the entire record of the proceeding under
review, which shall include the Aquarion representative policy board's
findings of fact and conclusions of law, separately stated. By stipulation
of all parties to the review proceedings, the record may be shortened. A
party unreasonably refusing to stipulate to limit the record may be taxed
by the court for the additional costs. The court may require or permit
subsequent corrections or additions to the record.
(e) If, before the date set for hearing, application is made to the court
for leave to present additional evidence, and it is shown to the
satisfaction of the court that the additional evidence is material and that
there were good reasons for failure to present it in the proceeding before
the Aquarion representative policy board, the court may refer the case
back to the board with instructions to take such evidence as the court
directs. The Aquarion representative policy board may modify its
findings and decision by reason of the additional evidence and shall file
that evidence and any modifications, new findings, or decisions with the
reviewing court. Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 131 of 140
(f) The review shall be conducted by the court without a jury and
shall be confined to the record. In cases of alleged irregularities in
procedure before the Aquarion representative policy board, not shown
in the record, proof thereon may be taken in the court. The court, upon
request, shall hear oral argument and receive written briefs.
(g) The court shall not substitute its judgment for that of the Aquarion
representative policy board as to the weight of the evidence on
questions of fact. The court shall affirm the decision of the Aquarion
representative policy board unless the court finds that the substantial
rights of the appellant have been prejudiced because the Aquarion
representative policy board's findings, inferences, conclusions, or
decisions are: (1) In violation of constitutional provisions, the general
statutes or the provisions of this or another special act; (2) in excess of
the authority of the Aquarion representative policy board; (3) made
upon unlawful procedure; (4) affected by other error of law; (5) clearly
erroneous in view of the reliable probative, and substantial evidence on
the whole record; or (6) arbitrary or capricious or characterized by abuse
of discretion or clearly unwarranted exercise of discretion. If the court
finds such prejudice, it shall sustain the appeal and, if appropriate, may
render a judgment under subsection (h) of this section or remand the
case for further proceedings.
(h) If a particular Aquarion representative policy board action is
required by law, the court, on sustaining the appeal, may render a
judgment that modifies the Aquarion representative policy board
decision, orders the Aquarion representative policy board action, or
orders the Aquarion representative policy board to take such action as
may be necessary to effect the particular action.
(i) In any case in which an aggrieved party claims that he cannot pay
the costs of an appeal under this section and will thereby be deprived of
a right to which he is entitled, he shall, within the time permitted for
filing the appeal, file with the clerk of the court to which the appeal is to Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 132 of 140
be taken an application for waiver of payment of such fees, costs and
necessary expenses, including the requirements of bond, if any. After
such hearing as the court determines is necessary, the court shall enter
its judgment on the application, which judgment shall contain a
statement of the facts the court has found, with its conclusions thereon.
The filing of the application for the waiver shall toll the time limits for
the filing of an appeal until such time as a judgment on such application
is entered.
(j) Neither the authority nor the Aquarion representative policy
board shall be construed to be an agency within the scope of chapter 54
of the general statutes.
Sec. 64. (a) Whenever the authority acquires the property and
franchises of any private water company or companies operating a
water supply system within its district, all employees of such company
or companies who are necessary for the operation of the authority,
except senior managerial officers, shall become employees of the
authority and shall be credited by the authority with all rights that have
accrued as of the date of such acquisition with respect to seniority, sick
leave, vacation, insurance and pension benefits in accordance with the
records, personnel policies or labor agreements of the acquired
company or companies.
(b) The authority shall assume and observe all accrued pension
obligations of such acquired company or companies, and members and
beneficiaries of any pension, retirement or other employee benefit
system established by the acquired company or companies shall
continue to have such rights, privileges, benefits, obligations and status
with respect to such established systems as have accrued as of the date
of such acquisition. The authority may enter into agreements with
representatives of its employees relative to the inclusion of its
employees in any applicable state or municipal employee's retirement
plan or plans, and the authority shall constitute a municipality eligible Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 133 of 140
to participate in such retirement plans. The authority may enter into
agreements with representatives of its employees relative to the transfer
to or the establishment of pension trust funds under the joint control of
such authority and representatives of its employees, and shall have all
powers necessary to maintain and administer such trust funds jointly
with representatives of its employees.
(c) The authority shall assume and observe all labor contracts of such
company or companies in existence at the time of transfer and all
obligations incurred by such contracts regarding wages, salaries, hours,
sick leave and other leave, working conditions, grievance procedures,
collective bargaining and pension or retirement.
(d) The authority shall assume and observe personnel policies of such
company or companies in existence at the time of transfer relating to
personnel not covered by labor contracts, and all obligations incurred
through such personnel policies regarding wages, salaries, hours, sick
leave, vacation, pension and retirement, subject to such modifications
therein as the authority may subsequently adopt, provided such
modifications shall not affect any rights of such employees which have
vested prior to such modification.
(e) Nothing in this section shall prevent the authority from hiring any
senior managerial officers of such company on such terms as it may
determine or be construed to prohibit the authority from exercising the
normal prerogatives of management with respect to such matters as the
promotion, demotion, assignment, transfer or discharge of its
employees, nor shall the authority be bound by any term of any
personnel policy entered into by such company or companies in
anticipation of acquisition by the authority.
Sec. 65. The relations between the authority and its employees with
respect to collective bargaining and the arbitration of labor disputes
shall be governed by sections 7-467 to 7-477, inclusive, of the general Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 134 of 140
statutes.
Sec. 42. (Effective from passage) Sections 34 to 41, inclusive, of this act
shall not be effective on and after December 31, 2027, unless the Public
Utilities Regulatory Authority approves the South Central Connecticut
Regional Water Authority or the Aquarion Water Authority to own and
operate the Aquarion Water Company, or one or more of its
subsidiaries, by said date.
Sec. 43. (NEW) (Effective October 1, 2024) (a) As used in this section:
(1) "Actions which may significantly affect the environment" has the
same meaning as provided in section 22a-1c of the general statutes, but
does not include any action that (A) is a major federal action under the
National Environmental Policy Act, 42 USC 4321 et seq., as amended
from time to time, (B) is an undertaking under the National Historic
Preservation Act, 54 USC 300101 et seq., as amended from time to time,
(C) affects an archaeological site, or (D) affects a sacred site;
(2) "Archaeological site" has the same meaning as provided in section
10-381 of the general statutes;
(3) "Historic structures and landmarks" has the same meaning as
provided in section 10-410 of the general statutes;
(4) "Sacred site" has the same meaning as provided in section 10-381
of the general statutes;
(5) "Sponsoring agency" has the same meaning as described in
sections 22a-1 to 22a-1h, inclusive, of the general statutes;
(6) "State entity" means a state department, institution or agency
under sections 22a-1 to 22a-1h, inclusive, of the general statutes;
(7) "State funding recipient" means any person that receives funds
from the state to be used for an activity or a sequence of planned Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 135 of 140
activities that are subject to the process established by sections 22a-1 to
22a-1h, inclusive, of the general statutes; and
(8) "State Historic Preservation Officer" means the individual
appointed by the Governor pursuant to 54 USC 302301(1), as amended
from time to time, to administer the state historic preservation program
in accordance with 54 USC 302303, as amended from time to time.
(b) Whenever a sponsoring agency requests an initial determination
from the State Historic Preservation Officer, in accordance with sections
22a-1 to 22a-1h, inclusive, of the general statutes, as to whether an
individual activity or a sequence of planned activities proposed to be
undertaken by the sponsoring agency, a state entity or a state funding
recipient, as applicable, is within the category of actions which may
significantly affect the environment because such activity or sequence
of activities could have an impact on the state's historic structures and
landmarks, the officer shall:
(1) In making such initial determination, consider all information
provided by the sponsoring agency, state entity or state funding
recipient, as applicable; and
(2) Make such initial determination not later than thirty days after the
officer receives information the officer deems reasonably necessary to
make such initial determination.
(c) If the State Historic Preservation Officer makes an initial
determination that such individual activity or sequence of planned
activities will not have any effect on historic structures and landmarks,
or is not within the category of actions which may significantly affect
the environment because such activity or sequence of activities will not
have an impact on historic structures and landmarks, the officer shall
provide such determination in writing to the sponsoring agency, state
entity or state funding recipient, as applicable. Such written Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 136 of 140
determination shall constitute a final determination by the officer for the
purposes of this section.
(d) (1) If the State Historic Preservation Officer makes an initial
determination that such individual activity or sequence of planned
activities will have an effect on historic structures and landmarks, or is
within the category of actions which may significantly affect the
environment because such activity or sequence of activities will have an
impact on historic structures and landmarks, the officer shall, in
collaboration with the sponsoring agency, state entity or state funding
recipient, as applicable, propose a prudent or feasible alternative to such
individual activity or sequence of planned activities to avoid such
impact, if such alternative is possible.
(2) If the State Historic Preservation Officer and the sponsoring
agency, state entity or state funding recipient, as applicable, reach an
agreement regarding such alternative, the officer shall provide to such
sponsoring agency, state entity or state funding recipient, as applicable,
a written determination that such alternative (A) will not have any effect
on historic structures and landmarks, or (B) is not within the category of
actions which may significantly affect the environment because such
activity or sequence of activities will not have an impact on historic
structures and landmarks. Such written determination shall constitute a
final determination by the officer for the purposes of this section.
(3) (A) If the State Historic Preservation Officer and the sponsoring
agency, state entity or state funding recipient, as applicable, cannot
reach an agreement regarding such alternative, the officer shall provide
to such sponsoring agency, state entity or state funding recipient, as
applicable, a written determination that such individual activity or
sequence of planned activities (i) will have an effect on historic
structures and landmarks, or (ii) is within the category of actions which
may significantly affect the environment because such activity or
sequence of activities will have an impact on historic structures and Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 137 of 140
landmarks.
(B) (i) Notwithstanding subsection (c) of section 22a-1b of the general
statutes, after the State Historic Preservation Officer provides a written
determination under subparagraph (A) of this subdivision, the officer
shall, in collaboration with the sponsoring agency, state entity or state
funding recipient, as applicable, propose a mitigation plan requiring
such sponsoring agency, state entity or state funding recipient, as
applicable, to mitigate such impact.
(ii) The sponsoring agency, state entity or state funding recipient, as
applicable, shall, to the extent possible, submit to the State Historic
Preservation Officer all pertinent information regarding such individual
activity or sequence of planned activities that may affect such mitigation
plan. Such information shall be considered by the officer in the
development of the mitigation plan.
(iii) In establishing the mitigation plan, the State Historic
Preservation Officer shall consult with the Commissioner of Economic
and Community Development, or the commissioner's designee, about
the economic impact of (I) the individual activity or sequence of planned
activities proposed to be undertaken by the sponsoring agency, state
entity or state funding recipient, as applicable, and (II) the mitigation
plan. Any information provided by the commissioner during such
consultation shall be considered by the officer in the development of the
mitigation plan.
(iv) Not later than forty-five days after the State Historic Preservation
Officer receives the information submitted under subparagraph (B)(ii)
of this subdivision, the officer shall memorialize the mitigation plan in
a proposed mitigation agreement that may be executed by the
sponsoring agency, state entity or state funding recipient, as applicable.
If the sponsoring agency, state entity or state funding recipient, as
applicable, executes such proposed mitigation agreement, the officer Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 138 of 140
shall also execute such proposed mitigation agreement. The execution
of such mitigation agreement shall constitute (I) a determination by the
officer that the officer is satisfied the effect on historic structures and
landmarks will be mitigated pursuant to the terms of such mitigation
agreement, and (II) a final determination by the officer for the purposes
of this section.
(v) At the time the State Historic Preservation Officer provides the
mitigation agreement proposed under subparagraph (B)(iv) of this
subdivision to the sponsoring agency, state entity or state funding
recipient, as applicable, the officer shall notify such sponsoring agency,
state entity or state funding recipient, as applicable, that a request may
be submitted in accordance with the provisions of subdivision (1) of
subsection (e) of this section to the Commissioner of Economic and
Community Development to review such proposed mitigation
agreement.
(e) (1) If the sponsoring agency, state entity or state funding recipient,
as applicable, declines to execute the mitigation agreement proposed
under subparagraph (B)(iv) of subdivision (3) of subsection (d) of this
section, such sponsoring agency, state entity or state funding recipient,
as applicable, may submit, not later than fifteen days after the State
Historic Preservation Officer provides such proposed mitigation
agreement to such sponsoring agency, state entity or state funding
recipient, as applicable, a request to the Commissioner of Economic and
Community Development to review the proposed mitigation agreement
and make recommendations to revise such proposed mitigation
agreement. Such request shall be in the form and manner prescribed by
the commissioner and may include a request for a conference with the
commissioner, the officer, the sponsoring agency, the state entity or the
state funding recipient, as applicable, and any other interested party.
(2) (A) Not later than thirty days after receiving such request, the
commissioner shall (i) if such conference was requested, hold such Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 139 of 140
conference, and (ii) make recommendations, if any, for revisions to the
proposed mitigation agreement. If such revisions are recommended, the
commissioner's review pursuant to this subsection shall be concluded
and the State Historic Preservation Officer shall include such revisions
in a revised mitigation agreement. Such revised mitigation agreement
may be executed by the sponsoring agency, state entity or state funding
recipient, as applicable. If the sponsoring agency, state entity or state
funding recipient, as applicable, executes such revised mitigation
agreement, the officer shall also execute such revised mitigation
agreement. The execution of such revised mitigation agreement shall
constitute (I) a determination by the officer that the officer is satisfied
the effect on historic structures and landmarks will be mitigated
pursuant to the terms of such revised mitigation agreement, and (II) a
final determination by the officer for the purposes of this section.
(B) If the commissioner makes no recommendations for revisions to
the mitigation agreement, the commissioner's review pursuant to this
subsection shall be concluded. The sponsoring agency, state entity or
state funding recipient, as applicable, may subsequently elect to execute
the mitigation agreement proposed by the State Historic Preservation
Officer under subparagraph (B)(iv) of subdivision (3) of subsection (d)
of this section. If the sponsoring agency, state entity or state funding
recipient, as applicable, executes such proposed mitigation agreement,
the officer shall also execute such proposed mitigation agreement. The
execution of such mitigation agreement shall constitute (i) a
determination by the officer that the officer is satisfied the effect on
historic structures and landmarks will be mitigated pursuant to the
terms of such mitigation agreement, and (ii) a final determination by the
officer for the purposes of this section.
(f) If the State Historic Preservation Officer proposes a mitigation
plan pursuant to subparagraph (B)(i) of subdivision (3) of subsection (d)
of this section but a mitigation agreement is not executed, the Senate Bill No. 501
June Sp. Sess., 2024, Public Act No. 24-1 140 of 140
sponsoring agency shall conduct an early public scoping process in
accordance with subsection (b) of section 22a-1b of the general statutes.
(g) Not later than January first, annually, the State Historic
Preservation Officer shall post on the Department of Economic and
Community Development's Internet web site all mitigation agreements
executed during the preceding fiscal year.
Approved July 1, 2024