CT
Connecticut Senate Bill SB00501

Connecticut 2024 Regular Session

Connecticut Senate Bill SB00501 Compare Versions

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4-Senate Bill No. 501
5-
6-June Special Session, Public Act No. 24-1
3+LCO No. 6185 1 of 137
4+
5+General Assembly Bill No. 501
6+June Special Session, 2024
7+LCO No. 6185
8+
9+
10+Referred to Committee on No Committee
11+
12+
13+Introduced by:
14+SEN. LOONEY, 11
15+th
16+ Dist.
17+REP. RITTER M., 1
18+st
19+ Dist.
20+SEN. DUFF, 25
21+th
22+ Dist.
23+REP. ROJAS, 9
24+th
25+ Dist.
26+
27+
28+
29+
730
831
932 AN ACT CONCERNING MOTOR VEHICLE ASSESSMENTS FOR
1033 PROPERTY TAXATION, INNOVATION BANKS, THE INTEREST ON
1134 CERTAIN TAX UNDERPAYMENTS, THE ASSESSMENT ON
12-INSURERS, SCHOOL BUILDING PROJECTS, THE SOUTH
13-CENTRAL CONNECTICUT REGIONAL WATER AUTHORITY
14-CHARTER AND CERTAIN STATE HISTORIC PRESERVATION
15-OFFICER PROCEDURES.
35+INSURERS, SCHOOL BUILDING PROJECTS, THE SOUTH CENTRAL
36+CONNECTICUT REGIONAL WATER AUTHORITY CHARTER AND
37+CERTAIN STATE HISTORIC PRESERVATION OFFICER
38+PROCEDURES.
1639 Be it enacted by the Senate and House of Representatives in General
1740 Assembly convened:
1841
19-Section 1. Subdivision (2) of subsection (a) of section 14-33 of the 2024
20-supplement to the general statutes is repealed and the following is
21-substituted in lieu thereof (Effective July 1, 2024, and applicable to
22-assessment years commencing on or after October 1, 2024):
23-(2) For assessment years commencing on or after October 1, 2024, if
24-any property tax, or any installment thereof, laid by any city, town,
25-borough or other taxing district upon a motor vehicle remains unpaid,
26-[regardless of whether such motor vehicle is classified on the grand list
27-as a registered motor vehicle or personal property pursuant to section
28-12-41,] the tax collector of such city, town, borough or other taxing
29-district shall notify the Commissioner of Motor Vehicles of such
30-delinquency in accordance with subsection (e) of this section and
31-guidelines and procedures established by the commissioner. The
32-commissioner shall not issue registration for such motor vehicle for the Senate Bill No. 501
33-
34-June Sp. Sess., 2024, Public Act No. 24-1 2 of 140
35-
36-next registration period if, according to the commissioner's records, it is
37-then owned by the person against whom such tax has been assessed or
38-by any person to whom such vehicle has not been transferred by bona
39-fide sale. Unless notice has been received by the commissioner under
40-the provisions of section 14-33a, no such registration shall be issued
41-until the commissioner receives notification that the tax obligation has
42-been legally discharged; nor shall the commissioner register any other
43-motor vehicle, snowmobile, all-terrain vehicle or vessel in the name of
44-such person, except that the commissioner may continue to register
45-other vehicles owned by a leasing or rental firm licensed pursuant to
46-section 14-15, and may issue such registration to any private owner of
47-three or more paratransit vehicles in direct proportion to the percentage
48-of total tax due on such vehicles which has been paid and notice of
49-payment on which has been received. The Commissioner of Motor
50-Vehicles may immediately suspend or cancel all motor vehicle,
51-snowmobile, all-terrain vehicle or vessel registrations issued in the
52-name of any person (A) who has been reported as delinquent and whose
53-registration was renewed through an error or through the production of
54-false evidence that the delinquent tax on any motor vehicle had been
55-paid, or (B) who has been reported by a tax collector as having paid a
56-property tax on a motor vehicle with a check which was dishonored by
57-a bank and such tax remains unpaid.
58-Sec. 2. Subsection (b) of section 12-71d of the 2024 supplement to the
59-general statutes is repealed and the following is substituted in lieu
60-thereof (Effective July 1, 2024, and applicable to assessment years commencing
61-on or after October 1, 2024):
62-(b) Not later than October 1, 2024, and annually thereafter, the
63-Secretary of the Office of Policy and Management shall, in consultation
64-with the [Connecticut Association of Assessing Officers, recommend a
65-schedule of motor vehicle plate classes] Department of Motor Vehicles,
66-establish guidelines for the valuation of motor vehicles, which shall be Senate Bill No. 501
67-
68-June Sp. Sess., 2024, Public Act No. 24-1 3 of 140
69-
70-used by assessors in each municipality in determining the
71-[classification] use of motor vehicles for purposes of property taxation.
72-The value for each motor vehicle shall be determined by the schedule of
73-depreciation described in subdivision (7) of subsection (b) of section 12-
74-63, as amended by this act. The determination of the assessed value of
75-any vehicle for which a manufacturer's suggested retail price cannot be
76-obtained for purposes of the property tax assessment list in any
77-municipality shall be the responsibility of the assessor in such
78-municipality, in consultation with the Connecticut Association of
79-Assessing Officers. Any appeal from the findings of assessors
80-concerning motor vehicle values shall be made in accordance with
81-provisions related to such appeals under this chapter.
82-Sec. 3. Subsection (b) of section 12-63 of the 2024 supplement to the
83-general statutes is repealed and the following is substituted in lieu
84-thereof (Effective July 1, 2024, and applicable to assessment years commencing
85-on or after October 1, 2024):
86-(b) (1) For the purposes of this subsection, (A) "electronic data
87-processing equipment" means computers, printers, peripheral computer
88-equipment, bundled software and any computer-based equipment
89-acting as a computer, as defined in Section 168 of the Internal Revenue
90-Code of 1986, or any subsequent corresponding internal revenue code
91-of the United States, as from time to time amended; (B) "leased personal
92-property" means tangible personal property which is the subject of a
93-written or oral lease or loan on the assessment date, or any such
94-property which has been so leased or loaned by the then current owner
95-of such property for three or more of the twelve months preceding such
96-assessment date; and (C) "original selling price" means the price at
97-which tangible personal property is most frequently sold in the year that
98-it was manufactured.
99-(2) Any municipality may, by ordinance, adopt the provisions of this
100-subsection to be applicable for the assessment year commencing Senate Bill No. 501
101-
102-June Sp. Sess., 2024, Public Act No. 24-1 4 of 140
103-
104-October first of the assessment year in which a revaluation of all real
105-property required pursuant to section 12-62 is performed in such
106-municipality, and for each assessment year thereafter. If so adopted, the
107-present true and actual value of tangible personal property, other than
108-motor vehicles, shall be determined in accordance with the provisions
109-of this subsection. If such property is purchased, its true and actual
110-value shall be established in relation to the cost of its acquisition,
111-including transportation and installation, and shall reflect depreciation
112-in accordance with the schedules set forth in subdivisions (3) to (6),
113-inclusive, of this subsection. If such property is developed and produced
114-by the owner of such property for a purpose other than wholesale or
115-retail sale or lease, its true and actual value shall be established in
116-relation to its cost of development, production and installation and shall
117-reflect depreciation in accordance with the schedules provided in
118-subdivisions (3) to (6), inclusive, of this subsection. The provisions of
119-this subsection shall not apply to property owned by a public service
120-company, as defined in section 16-1.
121-(3) The following schedule of depreciation shall be applicable with
122-respect to electronic data processing equipment:
123-(A) Group I: Computer and peripheral hardware, including, but not
124-limited to, personal computers, workstations, terminals, storage
125-devices, printers, scanners, computer peripherals and networking
126-equipment:
127- Depreciated Value
128- As Percentage
129- Assessment Year Of Acquisition
130- Following Acquisition Cost Basis
131- First year Seventy per cent
132- Second year Forty per cent
133- Third year Twenty per cent Senate Bill No. 501
134-
135-June Sp. Sess., 2024, Public Act No. 24-1 5 of 140
136-
137- Fourth year and thereafter Ten per cent
138-
139-(B) Group II: Other hardware, including, but not limited to, mini-
140-frame and main-frame systems with an acquisition cost of more than
141-twenty-five thousand dollars:
142- Depreciated Value
143- As Percentage
144- Assessment Year Of Acquisition
145- Following Acquisition Cost Basis
146- First year Ninety per cent
147- Second year Sixty per cent
148- Third year Forty per cent
149- Fourth year Twenty per cent
150- Fifth year and thereafter Ten per cent
151-
152-(4) The following schedule of depreciation shall be applicable with
153-respect to copiers, facsimile machines, medical testing equipment, and
154-any similar type of equipment that is not specifically defined as
155-electronic data processing equipment, but is considered by the assessor
156-to be technologically advanced:
157- Depreciated Value
158- As Percentage
159- Assessment Year Of Acquisition
160- Following Acquisition Cost Basis
161- First year Ninety-five per cent
162- Second year Eighty per cent
163- Third year Sixty per cent
164- Fourth year Forty per cent
165- Fifth year and thereafter Twenty per cent
166-
167-(5) The following schedule of depreciation shall be applicable with Senate Bill No. 501
168-
169-June Sp. Sess., 2024, Public Act No. 24-1 6 of 140
170-
171-respect to machinery and equipment used in the manufacturing process:
172- Depreciated Value
173- As Percentage
174- Assessment Year Of Acquisition
175- Following Acquisition Cost Basis
176- First year Ninety per cent
177- Second year Eighty per cent
178- Third year Seventy per cent
179- Fourth year Sixty per cent
180- Fifth year Fifty per cent
181- Sixth year Forty per cent
182- Seventh year Thirty per cent
183- Eighth year and thereafter Twenty per cent
184-
185-(6) The following schedule of depreciation shall be applicable with
186-respect to all tangible personal property other than that described in
187-subdivisions (3) to (5), inclusive, and subdivision (7) of this subsection:
188- Depreciated Value
189- As Percentage
190- Assessment Year Of Acquisition
191- Following Acquisition Cost Basis
192- First year Ninety-five per cent
193- Second year Ninety per cent
194- Third year Eighty per cent
195- Fourth year Seventy per cent
196- Fifth year Sixty per cent
197- Sixth year Fifty per cent
198- Seventh year Forty per cent
199- Eighth year and thereafter Thirty per cent
200-
201-(7) For assessment years commencing on or after October 1, 2024, the Senate Bill No. 501
202-
203-June Sp. Sess., 2024, Public Act No. 24-1 7 of 140
204-
205-following schedule of depreciation shall be applicable with respect to
206-motor vehicles based on the manufacturer's suggested retail price of
207-such motor vehicles, provided no motor vehicle shall be [valued]
208-assessed at an amount less than five hundred dollars:
209- Percentage of
210- Manufacturer's Suggested
211- Age of Vehicle Retail Price
212- Up to year one [Eighty] Eighty-five per cent
213- Year two [Seventy-five] Eighty per cent
214- Year three [Seventy] Seventy-five per cent
215- Year four [Sixty-five] Seventy per cent
216- Year five [Sixty] Sixty-five per cent
217- Year six [Fifty-five] Sixty per cent
218- Year seven [Fifty] Fifty-five per cent
219- Year eight [Forty-five] Fifty per cent
220- Year nine [Forty] Forty-five per cent
221- Year ten [Thirty-five] Forty per cent
222- Year eleven [Thirty] Thirty-five per cent
223- Year twelve [Twenty-five] Thirty per cent
224- Year thirteen [Twenty] Twenty-five per cent
225- Year fourteen [Fifteen] Twenty per cent
226- Years fifteen to nineteen [Ten] Fifteen per cent
227- Years twenty and beyond Not less than
228- five hundred dollars
229-
230-(8) The present true and actual value of leased personal property
231-other than motor vehicles shall be determined in accordance with the
232-provisions of this subdivision. Such value for any assessment year shall
233-be established in relation to the original selling price for self-
234-manufactured property or acquisition cost for acquired property and
235-shall reflect depreciation in accordance with the schedules provided in
236-subdivisions (3) to (6), inclusive, of this subsection. If the assessor is Senate Bill No. 501
237-
238-June Sp. Sess., 2024, Public Act No. 24-1 8 of 140
239-
240-unable to determine the original selling price of leased personal
241-property other than a motor vehicle, the present true and actual value
242-thereof shall be its current selling price.
243-(9) With respect to any personal property which is prohibited by law
244-from being sold, the present true and actual value of such property shall
245-be established with respect to such property's original manufactured
246-cost increased by a ratio the numerator of which is the total proceeds
247-from the manufacturer's salable equipment sold and the denominator of
248-which is the total cost of the manufacturer's salable equipment sold.
249-Such value shall then be depreciated in accordance with the appropriate
250-schedule in this subsection.
251-(10) The schedules of depreciation set forth in subdivisions (3) to (6),
252-inclusive, of this subsection shall not be used with respect to motor
253-vehicles, videotapes, horses or other taxable livestock or electric
254-cogenerating equipment.
255-(11) If the assessor determines that the value of any item of personal
256-property, other than a motor vehicle valued pursuant to subdivision (7)
257-of this subsection, produced by the application of the schedules set forth
258-in this subsection does not accurately reflect the present true and actual
259-value of such item, the assessor shall adjust such value to reflect the
260-present true and actual value of such item.
261-(12) For assessment years commencing on or after October 1, 2024, for
262-any commercial motor vehicle (A) that is modified, or (B) to which is
263-affixed an attachment designed, manufactured or modified to be affixed
264-to such motor vehicle, the assessor shall determine whether to value
265-such motor vehicle and any such modifications or attachments to such
266-motor vehicle pursuant to subdivision (7) of this subsection or section
267-12-41, as amended by this act. The assessor shall determine valuation of
268-any modifications or attachments to such motor vehicle based on
269-whether such modifications or attachments are intended to be Senate Bill No. 501
270-
271-June Sp. Sess., 2024, Public Act No. 24-1 9 of 140
272-
273-permanently affixed to such motor vehicle.
274-[(12)] (13) Nothing in this subsection shall prevent any taxpayer from
275-appealing any (A) assessment made pursuant to this subsection if such
276-assessment does not accurately reflect the present true and actual value
277-of any item of such taxpayer's personal property, or (B) determination
278-of the manufacturer's suggested retail price used to value a motor
279-vehicle pursuant to this subsection.
280-Sec. 4. Subsections (b) and (c) of section 12-41 of the 2024 supplement
281-to the general statutes are repealed and the following is substituted in
282-lieu thereof (Effective July 1, 2024, and applicable to assessment years
283-commencing on or after October 1, 2024):
284-(b) [(1) For assessment years commencing prior to October 1, 2024,
285-no] No person required by law to file an annual declaration of personal
286-property shall include in such declaration motor vehicles that are
287-registered [in the office of the state Commissioner] with the Department
288-of Motor Vehicles. With respect to any vehicle subject to taxation in a
289-town other than the town in which such vehicle is registered, pursuant
290-to section 12-71, as amended by this act, information concerning such
291-vehicle may be included in a declaration filed pursuant to this section or
292-section 12-43, or on a report filed pursuant to section 12-57a.
293-[(2) For assessment years commencing on or after October 1, 2024,
294-any person required to file an annual declaration of tangible personal
295-property shall include in such declaration the motor vehicle listing,
296-pursuant to subdivision (2) of subsection (f) of section 12-71, of any
297-motor vehicle owned by such person. If, after the annual deadline for
298-filing a declaration, a motor vehicle is deemed personal property by the
299-assessor, such motor vehicle shall be added to the declaration of the
300-owner of such vehicle or included on a new declaration if no declaration
301-was submitted in the prior year. The value of the motor vehicle shall be
302-determined pursuant to section 12-63. If applicable, the value of the Senate Bill No. 501
303-
304-June Sp. Sess., 2024, Public Act No. 24-1 10 of 140
305-
306-motor vehicle for the current assessment year shall be prorated pursuant
307-to section 12-71b, and shall not be considered omitted property, as
308-defined in section 12-53, or subject to a penalty pursuant to subsection
309-(f) of this section.]
310-(c) The annual declaration of the tangible personal property owned
311-by such person on the assessment date, shall include, but is not limited
312-to, the following property: Machinery used in mills and factories, cables,
313-wires, poles, underground mains, conduits, pipes and other fixtures of
314-water, gas, electric and heating companies, leasehold improvements
315-classified as other than real property and furniture and fixtures of stores,
316-offices, hotels, restaurants, taverns, halls, factories and manufacturers.
317-Tangible personal property does not include a sign placed on a property
318-indicating that the property is for sale or lease. On and after October 1,
319-2024, tangible personal property shall include nonpermanent
320-modifications and attachments to commercial motor vehicles. [listed on
321-the schedule of motor vehicle plate classes recommended pursuant to
322-section 12-71d.] Commercial or financial information in any declaration
323-filed under this section [, except for commercial or financial information
324-which concerns motor vehicles,] shall not be open for public inspection
325-but may be disclosed to municipal officers for tax collection purposes.
326-Sec. 5. Subsection (a) of section 12-53 of the 2024 supplement to the
327-general statutes is repealed and the following is substituted in lieu
328-thereof (Effective July 1, 2024, and applicable to assessment years commencing
329-on or after October 1, 2024):
330-(a) For purposes of this section:
331-(1) "Omitted property" means property for which complete
332-information is not included in the declaration required to be filed by law
333-with respect to (A) the total number and type of all items subject to
334-taxation, or (B) the true original cost and year acquired of all such items;
335-[, or (C) on or after October 1, 2024, the manufacturer's suggested retail Senate Bill No. 501
336-
337-June Sp. Sess., 2024, Public Act No. 24-1 11 of 140
338-
339-price of a motor vehicle plus any applicable after-market alterations to
340-such motor vehicle,]
341-(2) ["books"] "Books", "papers", "documents" and "other records"
342-includes, but is not limited to, federal tax forms relating to the
343-acquisition and cost of fixed assets, general ledgers, balance sheets,
344-disbursement ledgers, fixed asset and depreciation schedules, financial
345-statements, invoices, operating expense reports, capital and operating
346-leases, conditional sales agreements and building or leasehold ledgers;
347-[,] and
348-(3) ["designee of an assessor"] "Designee of an assessor" means a
349-Connecticut municipal assessor certified in accordance with subsection
350-(b) of section 12-40a, a certified public accountant, a revaluation
351-company certified in accordance with section 12-2c for the valuation of
352-personal property, or an individual certified as a revaluation company
353-employee in accordance with section 12-2b for the valuation of personal
354-property.
355-Sec. 6. Subdivision (2) of subsection (a) of section 12-71 of the 2024
356-supplement to the general statutes is repealed and the following is
357-substituted in lieu thereof (Effective July 1, 2024, and applicable to
358-assessment years commencing on or after October 1, 2024):
359-(2) For assessment years commencing on or after October 1, 2024,
360-goods, chattels and effects or any interest therein, including any interest
361-in a leasehold improvement classified as other than real property,
362-belonging to any person who is a resident in this state, shall be listed for
363-purposes of property tax in the town where such person resides, subject
364-to the provisions of sections 12-41, as amended by this act, 12-43 and 12-
365-59. Any such property belonging to any nonresident shall be listed for
366-purposes of property tax as provided in section 12-43. Motor vehicles
367-shall be listed for purposes of the property tax as provided in subsection
368-(f) of this section. Senate Bill No. 501
369-
370-June Sp. Sess., 2024, Public Act No. 24-1 12 of 140
371-
372-Sec. 7. Subdivision (2) of subsection (f) of section 12-71 of the 2024
373-supplement to the general statutes is repealed and the following is
374-substituted in lieu thereof (Effective July 1, 2024, and applicable to
375-assessment years commencing on or after October 1, 2024):
376-[(2) (A) For assessment years commencing on or after October 1, 2024,
377-each municipality shall list motor vehicles registered and classified in
378-accordance with section 12-71d, and such motor vehicles shall be valued
379-in the same manner as motor vehicles valued pursuant to section 12-63.]
380-[(B)] (2) For assessment years commencing on or after October 1, 2024,
381-any unregistered motor vehicle or motor vehicle that is not used or
382-capable of being used that is located in a municipality in this state, shall
383-be listed and valued in the [manner described in subparagraph (A) of
384-this subdivision] same manner as motor vehicles valued pursuant to
385-section 12-63, as amended by this act.
386-Sec. 8. Section 12-71b of the 2024 supplement to the general statutes
387-is repealed and the following is substituted in lieu thereof (Effective July
388-1, 2024, and applicable to assessment years commencing on or after October 1,
389-2024):
390-(a) (1) For assessment years commencing prior to October 1, 2024, any
391-person who owns a motor vehicle which is not registered with the
392-Commissioner of Motor Vehicles on the first day of October in any
393-assessment year and which is registered subsequent to said first day of
394-October but prior to the first day of August in such assessment year shall
395-be liable for the payment of property tax with respect to such motor
396-vehicle in the town where such motor vehicle is subject to property tax,
397-in an amount as hereinafter provided, on the first day of January
398-immediately subsequent to the end of such assessment year. The
399-property tax payable with respect to such motor vehicle on said first day
400-of January shall be in the amount which would be payable if such motor
401-vehicle had been entered in the taxable list of the town where such Senate Bill No. 501
402-
403-June Sp. Sess., 2024, Public Act No. 24-1 13 of 140
404-
405-motor vehicle is subject to property tax on the first day of October in
406-such assessment year if such registration occurs prior to the first day of
407-November. If such registration occurs on or after the first day of
408-November but prior to the first day of August in such assessment year,
409-such tax shall be a pro rata portion of the amount of tax payable if such
410-motor vehicle had been entered in the taxable list of such town on
411-October first in such assessment year to be determined (A) by a ratio,
412-the numerator of which shall be the number of months from the date of
413-such registration, including the month in which registration occurs, to
414-the first day of October next succeeding and the denominator of which
415-shall be twelve, or (B) upon the affirmative vote of the legislative body
416-of the municipality, by a ratio the numerator of which shall be the
417-number of days from the date of such registration, including the day on
418-which the registration occurs, to the first day of October next succeeding
419-and the denominator of which shall be three hundred sixty-five. For
420-purposes of this section the term "assessment year" means the period of
421-twelve full months commencing with October first each year.
422-(2) For assessment years commencing on or after October 1, 2024, any
423-[person who owns a] motor vehicle [which] that is not registered with
424-the Commissioner of Motor Vehicles on the first day of October in any
425-assessment year and [which] that is registered subsequent to said first
426-day of October but prior to the [first day of April] last day of September
427-in such assessment year shall be added to the grand list by the assessor,
428-and the owner of such motor vehicle shall be liable for the payment of
429-property tax with respect to such motor vehicle in the town where such
430-motor vehicle is subject to property tax, in an amount as hereinafter
431-provided. [, on the first day of July in such assessment year. Any person
432-who owns a motor vehicle which is registered with the Commissioner
433-of Motor Vehicles on or after the first day of April in any assessment
434-year but prior to the first day of October next succeeding shall be liable
435-for the payment of property tax with respect to such motor vehicle in
436-the town where such motor vehicle is subject to property tax, in an Senate Bill No. 501
437-
438-June Sp. Sess., 2024, Public Act No. 24-1 14 of 140
439-
440-amount hereinafter provided, on the first day of January immediately
441-subsequent to the end of such assessment year.] The property tax
442-payable with respect to a motor vehicle described in this subdivision
443-shall be in the amount [which] that would be payable if such motor
444-vehicle had been entered into the taxable list of the town where such
445-motor vehicle is subject to property tax on the first day of October in
446-such assessment year if such registration occurs prior to the first day of
447-November. If such registration occurs on or after the first day of
448-November but prior to the first day of October next succeeding, such tax
449-shall be a pro rata portion of the amount of tax payable if such motor
450-vehicle had been entered in the taxable list of such town on October first
451-in such assessment year to be determined (A) by a ratio, the numerator
452-of which shall be the number of months from the date of such
453-registration, including the month in which registration occurs, to the
454-first day of October next succeeding and the denominator of which shall
455-be twelve, or (B) upon the affirmative vote of the legislative body of the
456-municipality, by a ratio the numerator of which shall be the number of
457-days from the date of such registration, including the day on which the
458-registration occurs, to the first day of October next succeeding and the
459-denominator of which shall be three hundred sixty-five.
460-(b) (1) For assessment years commencing prior to October 1, 2024,
461-whenever any person who owns a motor vehicle which has been entered
462-in the taxable list of the town where such motor vehicle is subject to
463-property tax in any assessment year and who, subsequent to the first
464-day of October in such assessment year but prior to the first day of
465-August in such assessment year, replaces such motor vehicle with
466-another motor vehicle, hereinafter referred to as the replacement
467-vehicle, which vehicle may be in a different classification for purposes
468-of registration than the motor vehicle replaced, and provided one of the
469-following conditions is applicable with respect to the motor vehicle
470-replaced: (A) The unexpired registration of the motor vehicle replaced
471-is transferred to the replacement vehicle, (B) the motor vehicle replaced Senate Bill No. 501
472-
473-June Sp. Sess., 2024, Public Act No. 24-1 15 of 140
474-
475-was stolen or totally damaged and proof concerning such theft or total
476-damage is submitted to the assessor in such town, or (C) the motor
477-vehicle replaced is sold by such person within forty-five days
478-immediately prior to or following the date on which such person
479-acquires the replacement vehicle, such person shall be liable for the
480-payment of property tax with respect to the replacement vehicle in the
481-town in which the motor vehicle replaced is subject to property tax, in
482-an amount as hereinafter provided, on the first day of January
483-immediately subsequent to the end of such assessment year. If the
484-replacement vehicle is replaced by such person with another motor
485-vehicle prior to the first day of August in such assessment year, the
486-replacement vehicle shall be subject to property tax as provided in this
487-subsection and such other motor vehicle replacing the replacement
488-vehicle, or any motor vehicle replacing such other motor vehicle in such
489-assessment year, shall be deemed to be the replacement vehicle for
490-purposes of this subsection and shall be subject to property tax as
491-provided herein. The property tax payable with respect to the
492-replacement vehicle on said first day of January shall be the amount by
493-which (i) is in excess of (ii) as follows: (i) The property tax which would
494-be payable if the replacement vehicle had been entered in the taxable list
495-of the town in which the motor vehicle replaced is subject to property
496-tax on the first day of October in such assessment year if such
497-registration occurs prior to the first day of November, however if such
498-registration occurs on or after the first day of November but prior to the
499-first day of August in such assessment year, such tax shall be a pro rata
500-portion of the amount of tax payable if such motor vehicle had been
501-entered in the taxable list of such town on October first in such
502-assessment year to be determined by a ratio, the numerator of which
503-shall be the number of months from the date of such registration,
504-including the month in which registration occurs, to the first day of
505-October next succeeding and the denominator of which shall be twelve,
506-provided if such person, on said first day of October, was entitled to any
507-exemption under section 12-81, as amended by this act, which was Senate Bill No. 501
508-
509-June Sp. Sess., 2024, Public Act No. 24-1 16 of 140
510-
511-allowed in the assessment of the motor vehicle replaced, such
512-exemption shall be allowed for purposes of determining the property
513-tax payable with respect to the replacement vehicle as provided herein;
514-(ii) the property tax payable by such person with respect to the motor
515-vehicle replaced, provided if the replacement vehicle is registered
516-subsequent to the thirty-first day of October but prior to the first day of
517-August in such assessment year such property tax payable with respect
518-to the motor vehicle replaced shall, for purposes of the computation
519-herein, be deemed to be a pro rata portion of such property tax to be
520-prorated in the same manner as the amount of tax determined under (i)
521-above.
522-(2) For assessment years commencing on or after October 1, 2024,
523-whenever any person who owns a motor vehicle which has been entered
524-in the taxable list of the town where such motor vehicle is subject to
525-property tax in any assessment year and who, subsequent to the first
526-day of October in such assessment year but prior to the [first day of
527-April] last day of September in such assessment year, replaces such
528-motor vehicle with another motor vehicle, hereinafter referred to as the
529-replacement vehicle, which vehicle may be in a different classification
530-for purposes of registration than the motor vehicle replaced, and
531-provided one of the following conditions is applicable with respect to
532-the motor vehicle replaced: (A) The unexpired registration of the motor
533-vehicle replaced is transferred to the replacement vehicle, (B) the motor
534-vehicle replaced was stolen or totally damaged and proof concerning
535-such theft or total damage is submitted to the assessor in such town, or
536-(C) the motor vehicle replaced is sold by such person within forty-five
537-days immediately prior to or following the date on which such person
538-acquires the replacement vehicle, such motor vehicle shall be added by
539-the assessor to the taxable grand list and such person shall be liable for
540-the payment of property tax with respect to the replacement vehicle in
541-the town in which the motor vehicle replaced is subject to property tax
542-pursuant to subdivision [(4)] (3) of this subsection. [, on the first day of Senate Bill No. 501
543-
544-June Sp. Sess., 2024, Public Act No. 24-1 17 of 140
545-
546-July in such assessment year.] If a replacement vehicle is replaced by the
547-owner of such replacement vehicle prior to the first day of October next
548-succeeding such assessment year, the replacement vehicle shall be
549-added by the assessor to the taxable grand list and subject to property
550-tax as provided in this subdivision. [and such other] Any motor vehicle
551-replacing [the] a replacement vehicle, or any motor vehicle replacing
552-such other motor vehicle in such assessment year, shall be deemed to be
553-the replacement vehicle for purposes of this subdivision.
554-[(3) For assessment years commencing on or after October 1, 2024,
555-whenever any person who owns a motor vehicle which has been entered
556-into the taxable list of the town where such motor vehicle is subject to
557-property tax in any assessment year and who, on or after the first day of
558-April of such assessment year but prior to the first day of October next
559-succeeding, replaces such motor vehicle with another motor vehicle,
560-hereinafter referred to as the replacement vehicle, which vehicle may be
561-in a different classification for purposes of registration than the motor
562-vehicle replaced, and provided one of the following conditions is
563-applicable with respect to the motor vehicle replaced: (A) The unexpired
564-registration of the motor vehicle replaced is transferred to the
565-replacement vehicle, (B) the motor vehicle replaced was stolen or totally
566-damaged and proof concerning such theft or total damage is submitted
567-to the assessor in such town, or (C) the motor vehicle replaced is sold by
568-such person within forty-five days immediately prior to or following the
569-date on which such person acquires the replacement vehicle, such
570-person shall be liable for the payment of property tax with respect to the
571-replacement vehicle in the town in which the motor vehicle replaced is
572-subject to property tax pursuant to subdivision (4) of this subsection, on
573-the first day of January immediately succeeding such assessment year.
574-If a replacement vehicle is replaced by the owner of such replacement
575-vehicle prior to the first day of October next succeeding such assessment
576-year, the replacement vehicle shall be subject to property tax as
577-provided in this subdivision and such other motor vehicle replacing the Senate Bill No. 501
578-
579-June Sp. Sess., 2024, Public Act No. 24-1 18 of 140
580-
581-replacement vehicle, or any motor vehicle replacing such other motor
582-vehicle in such assessment year, shall be deemed to be the replacement
583-vehicle for purposes of this subdivision.]
584-[(4)] (3) The property tax payable with respect to a replacement
585-vehicle described in subdivision (2) [or (3)] of this subsection shall be
586-the amount by which (A) is in excess of (B) as follows: (A) The property
587-tax which would be payable if the replacement vehicle had been entered
588-in the taxable list of the town in which the motor vehicle replaced is
589-subject to property tax on the first day of October in such assessment
590-year if such registration occurs prior to the first day of November,
591-however, if such registration occurs on or after the first day of
592-November but prior to the first day of October next succeeding, such tax
593-shall be a pro rata portion of the amount of tax payable if such motor
594-vehicle had been entered in the taxable list of such town on October first
595-in such assessment year to be determined by ratio, the numerator of
596-which shall be the number of months from the date of such registration,
597-including the month in which registration occurs, to the first day of
598-October next succeeding and the denominator of which shall be twelve,
599-provided if such person, on said first day of October, was entitled to any
600-exemption under section 12-81, as amended by this act, which was
601-allowed in the assessment of the motor vehicle replaced, such
602-exemption shall be allowed for purposes of determining the property
603-tax payable with respect to the replacement vehicle as provided herein;
604-(B) the property tax payable by such person with respect to the motor
605-vehicle replaced, provided if the replacement vehicle is registered
606-subsequent to the thirty-first day of October but prior to the first day of
607-October next succeeding such property tax payable with respect to the
608-motor vehicle replaced shall, for purposes of the computation herein, be
609-deemed to be a pro rata portion of such property tax to be prorated in
610-the same manner as the amount of tax determined under subparagraph
611-(A) [above] of this subdivision. Senate Bill No. 501
612-
613-June Sp. Sess., 2024, Public Act No. 24-1 19 of 140
614-
615-(c) (1) For assessment years commencing prior to October 1, 2024, any
616-person who owns a commercial motor vehicle which has been
617-temporarily registered at any time during any assessment year and
618-which has not during such period been entered in the taxable list of any
619-town in the state for purposes of the property tax and with respect to
620-which no permanent registration has been issued during such period,
621-shall be liable for the payment of property tax with respect to such motor
622-vehicle in the town where such motor vehicle is subject to property tax
623-on the first day of January immediately following the end of such
624-assessment year, in an amount as hereinafter provided. The property tax
625-payable shall be in the amount which would be payable if such motor
626-vehicle had been entered in the taxable list of the town where such
627-motor vehicle is subject to property tax on the first day of October in
628-such assessment year.
629-(2) For assessment years commencing on or after October 1, 2024, any
630-person who owns a commercial motor vehicle which has been
631-temporarily registered at any time during any assessment year and
632-which has not during such period been entered in the taxable list of any
633-town in the state for purposes of the property tax and with respect to
634-which no permanent registration has been issued during such period,
635-shall be liable for the payment of property tax with respect to such motor
636-vehicle in the town where such motor vehicle is subject to property tax.
637-[on the first day of July of such assessment year or the first day of
638-January immediately following such assessment year, as applicable,
639-pursuant to subdivisions (2) and (3) of subsection (b) of this section.] The
640-property tax payable shall be in the amount which would be payable if
641-such motor vehicle had been entered in the taxable list of the town
642-where such motor vehicle is subject to property tax on the first day of
643-October in such assessment year.
644-(d) [Any] (1) For assessment years commencing prior to October 1,
645-2024, any motor vehicle subject to property tax as provided in this Senate Bill No. 501
646-
647-June Sp. Sess., 2024, Public Act No. 24-1 20 of 140
648-
649-section shall, except as otherwise provided in subsection (b) of this
650-section, be subject to such property tax in the town in which such motor
651-vehicle was last registered in the assessment year ending immediately
652-preceding the day on which such property tax is payable as provided in
653-this section.
654-(2) For assessment years commencing on or after October 1, 2024, any
655-motor vehicle subject to property tax as provided in this section shall,
656-except as otherwise provided in subsection (b) of this section, be subject
657-to property tax in the town in which such motor vehicle was first
658-registered in the assessment year.
659-(e) Whenever any motor vehicle subject to property tax as provided
660-in this section has been replaced by the owner with another motor
661-vehicle in the assessment year immediately preceding the day on which
662-such property tax is payable, each such motor vehicle shall be subject to
663-property tax as provided in this section.
664-(f) Upon receipt by the assessor in any town of notice from the
665-Commissioner of Motor Vehicles, in a manner as prescribed by said
666-commissioner, with respect to any motor vehicle subject to property tax
667-in accordance with the provisions of this section and [which] that has
668-not been entered in the taxable grand list of such town, such assessor
669-shall determine the value of such motor vehicle for purposes of property
670-tax assessment and shall, for assessment years commencing (1) prior to
671-October 1, 2024, add such value to the taxable grand list in such town
672-for the immediately preceding assessment date, and [the] (2) on or after
673-October 1, 2024, add such value to the taxable grand list in such town.
674-The tax thereon shall be levied and collected by the tax collector. Such
675-property tax shall be payable not later than the first day of [(1)] (A)
676-February following the first day of January on which the owner of such
677-motor vehicle becomes liable for the payment of property tax, for
678-assessment years commencing prior to October 1, 2024, and [(2)] (B) the
679-month succeeding the month in which such property tax became due Senate Bill No. 501
680-
681-June Sp. Sess., 2024, Public Act No. 24-1 21 of 140
682-
683-and payable, for assessment years commencing on or after October 1,
684-2024, with respect to such motor vehicle in accordance with the
685-provisions of this section, subject to any determination in accordance
686-with section 12-142 that such tax shall be due and payable in
687-installments. [Said]
688-(g) (1) For assessment years commencing prior to October 1, 2024,
689-said owner may appeal the assessment of such motor vehicle, as
690-determined by the assessor in accordance with [this] subsection (f) of
691-this section, to the board of assessment appeals next succeeding the date
692-on which the tax based on such assessment is payable, and thereafter, to
693-the Superior Court as provided in section 12-117a. If the amount of such
694-tax is reduced upon appeal, the portion thereof which has been paid in
695-excess of the amount determined to be due upon appeal shall be
696-refunded to said owner.
697-(2) For assessment years commencing on or after October 1, 2024, said
698-owner may appeal the determination of the manufacturer's suggested
699-retail price used to assess a motor vehicle to the board of assessment
700-appeals next succeeding the date on which the tax based on such
701-assessment is payable, and thereafter, to the Superior Court as provided
702-in section 12-117a. If the amount of such tax is reduced upon appeal, the
703-portion thereof which has been paid in excess of the amount determined
704-to be due upon appeal shall be refunded to said owner.
705-[(g)] (h) Any motor vehicle which is not registered in this state shall
706-be subject to property tax in this state if such motor vehicle in the normal
707-course of operation most frequently leaves from and returns to or
708-remains in one or more points within this state, and such motor vehicle
709-shall be subject to such property tax in the town within which such
710-motor vehicle in the normal course of operation most frequently leaves
711-from and returns to or remains, provided when the owner of such motor
712-vehicle is a resident in any town in the state, it shall be presumed that
713-such motor vehicle most frequently leaves from and returns to or Senate Bill No. 501
714-
715-June Sp. Sess., 2024, Public Act No. 24-1 22 of 140
716-
717-remains in such town unless evidence, satisfactory to the assessor in
718-such town, is submitted to the contrary.
719-Sec. 9. Subsection (b) of section 12-71c of the 2024 supplement to the
720-general statutes is repealed and the following is substituted in lieu
721-thereof (Effective July 1, 2024, and applicable to assessment years commencing
722-on or after October 1, 2024):
723-(b) Any person claiming a property tax credit with respect to a motor
724-vehicle in accordance with subsection (a) of this section shall file with
725-the assessor in the town in which such person is entitled to such
726-property tax credit, documentation satisfactory to the assessor
727-concerning the sale, total damage, theft or removal and registration of
728-such motor vehicle. [For assessment years commencing prior to October
729-1, 2024, such] Such documentation shall be filed not later than the thirty-
730-first day of December immediately following the end of the assessment
731-year which next follows the assessment year in which such motor
732-vehicle was sold, damaged, stolen or removed and registered. [For
733-assessment years commencing on or after October 1, 2024, such
734-documentation shall be filed not later than three years after the date
735-upon which such tax was due and payable for such motor vehicle.]
736-Failure to file such claim and documentation as prescribed herein shall
737-constitute a waiver of the right to such property tax credit.
738-Sec. 10. Subdivision (74) of section 12-81 of the 2024 supplement to
739-the general statutes is repealed and the following is substituted in lieu
740-thereof (Effective July 1, 2024, and applicable to assessment years commencing
741-on or after October 1, 2024):
742-(74) (A) (i) For a period not to exceed five assessment years following
743-the assessment year in which it is first registered, any new commercial
744-truck, truck tractor, tractor and semitrailer, and vehicle used in
745-combination therewith, which is used exclusively to transport freight for
746-hire and: Is either subject to the jurisdiction of the United States Senate Bill No. 501
747-
748-June Sp. Sess., 2024, Public Act No. 24-1 23 of 140
749-
750-Department of Transportation pursuant to Chapter 135 of Title 49,
751-United States Code, or any successor thereto, or would otherwise be
752-subject to said jurisdiction except for the fact that the vehicle is used
753-exclusively in intrastate commerce; has a gross vehicle weight rating in
754-excess of twenty-six thousand pounds; and prior to August 1, 1996, was
755-not registered in this state or in any other jurisdiction but was registered
756-in this state on or after said date. (ii) For a period not to exceed five
757-assessment years following the assessment year in which it is first
758-registered, any new commercial truck, truck tractor, tractor and
759-semitrailer, and vehicle used in combination therewith, not eligible
760-under subparagraph (A)(i) of this subdivision, that has a gross vehicle
761-weight rating in excess of fifty-five thousand pounds and was not
762-registered in this state or in any other jurisdiction but was registered in
763-this state on or after August 1, 1999. As used in this subdivision, "gross
764-vehicle weight rating" has the same meaning as provided in section 14-
765-1;
766-(B) Any person who on October first in any year holds title to or is
767-the registrant of a vehicle for which such person intends to claim the
768-exemption provided in this subdivision shall file with the assessor or
769-board of assessors in the municipality in which the vehicle is subject to
770-property taxation, on or before the first day of November in such year,
771-a written application claiming such exemption on a form prescribed by
772-the Secretary of the Office of Policy and Management. Such person shall
773-include information as to the make, model, year and vehicle
774-identification number of each such vehicle, and any appurtenances
775-attached thereto, in such application. The person holding title to or the
776-registrant of such vehicle for which exemption is claimed shall furnish
777-the assessor or board of assessors with such supporting documentation
778-as said secretary may require, including, but not limited to, evidence of
779-vehicle use, acquisition cost and registration. Failure to file such
780-application in this manner and form within the time limit prescribed
781-shall constitute a waiver of the right to such exemption for such Senate Bill No. 501
782-
783-June Sp. Sess., 2024, Public Act No. 24-1 24 of 140
784-
785-assessment year, unless an extension of time is allowed as provided in
786-section 12-81k. Such application shall not be required for any assessment
787-year following that for which the initial application is filed, provided if
788-the vehicle is modified, such modification shall be deemed a waiver of
789-the right to such exemption until a new application is filed and the right
790-to such exemption is established as required initially. With respect to
791-any vehicle for which the exemption under this subdivision has
792-previously been claimed in a town other than that in which the vehicle
793-is registered on any assessment date, the person shall not be entitled to
794-such exemption until a new application is filed and the right to such
795-exemption is established in said town;
796-(C) With respect to any vehicle which is not registered on the first day
797-of October in any assessment year and which is registered subsequent
798-to said first day of October [but prior to the first day of August] in such
799-assessment year, the value of such vehicle for property tax exemption
800-purposes shall be a pro rata portion of the value determined in
801-accordance with subparagraph (D) of this subdivision, to be determined
802-by a ratio, the numerator of which shall be the number of months from
803-the date of such registration, including the month in which registration
804-occurs, to the first day of October next succeeding and the denominator
805-of which shall be twelve. For purposes of this subdivision, "assessment
806-year" means the period of twelve full months commencing with October
807-first each year;
808-(D) For assessment years commencing prior to October 1, 2024,
809-notwithstanding the provisions of section 12-71d, as amended by this
810-act, the assessor or board of assessors shall determine the value for each
811-vehicle with respect to which a claim for exemption under this
812-subdivision is approved, based on the vehicle's cost of acquisition,
813-including costs related to the modification of such vehicle, adjusted for
814-depreciation;
815-(E) For assessment years commencing on or after October 1, 2024, the Senate Bill No. 501
816-
817-June Sp. Sess., 2024, Public Act No. 24-1 25 of 140
818-
819-assessor or board of assessors shall determine the value for each vehicle,
820-with respect to which a claim for exemption under this subdivision is
821-approved, pursuant to the provisions of section 12-71d, as amended by
822-this act;
823-Sec. 11. Subsection (a) of section 7-152e of the general statutes is
824-repealed and the following is substituted in lieu thereof (Effective July 1,
825-2024):
826-(a) Notwithstanding any provision of the general statutes or special
827-act, municipal charter or ordinance, any municipality may, by ordinance
828-adopted by its legislative body, establish a fine to be imposed against
829-any owner of a motor vehicle that is subject to property tax in the
830-municipality pursuant to subsection [(g)] (h) of section 12-71b, as
831-amended by this act, who fails to register such motor vehicle with the
832-Commissioner of Motor Vehicles, provided (1) such motor vehicle is
833-eligible for registration and required to be registered under the
834-provisions of chapter 246, (2) such fine shall not be more than two
835-hundred fifty dollars, (3) any penalty for the failure to pay such fine by
836-a date prescribed by the municipality shall not be more than twenty-five
837-per cent of such fine, and (4) such fine shall be suspended for a first time
838-violator who presents proof of registration for such motor vehicle
839-subsequent to the violation but prior to the imposition of a fine.
840-Sec. 12. Subparagraph (B) of subdivision (7) of subsection (f) of
841-section 12-71 of the 2024 supplement to the general statutes is repealed
842-and the following is substituted in lieu thereof (Effective from passage):
843-(B) For assessment years commencing on or after October 1, 2024,
844-information concerning any vehicle subject to taxation in a town other
845-than the town in which it is registered may be included on any
846-declaration or report filed pursuant to section 12-41, as amended by this
847-act, 12-43 or 12-57a. If a motor vehicle is listed in a town in which it is
848-not subject to taxation, pursuant to the provisions of subdivision (5) of Senate Bill No. 501
849-
850-June Sp. Sess., 2024, Public Act No. 24-1 26 of 140
851-
852-this subsection, the assessor of the town in which such vehicle is listed
853-shall notify the assessor of the town in which such vehicle is [listed]
854-registered of the name and address of the owner of such motor vehicle,
855-the vehicle identification number and the town in which such vehicle is
856-taxed. The assessor of the town in which said vehicle is registered and
857-the assessor of the town in which said vehicle is listed shall cooperate in
858-administering the provisions of this section concerning the listing of
859-such vehicle for property tax purposes.
860-Sec. 13. Section 12-71e of the general statutes is repealed and the
861-following is substituted in lieu thereof (Effective July 1, 2025):
862-(a) Notwithstanding the provisions of any special act, municipal
863-charter or home rule ordinance, (1) for the assessment year commencing
864-October 1, 2016, the mill rate for motor vehicles shall not exceed 39 mills,
865-(2) for the assessment years commencing October 1, 2017, to October 1,
866-2020, inclusive, the mill rate for motor vehicles shall not exceed 45 mills,
867-and (3) for the assessment year commencing October 1, 2021, and each
868-assessment year thereafter, the mill rate for motor vehicles shall not
869-exceed 32.46 mills.
870-(b) Any municipality or district may establish a mill rate for motor
871-vehicles that is equal to or lower than 32.46 mills, including zero mills.
872-Such mill rate may be different from [its] the mill rate for real property
873-and personal property other than motor vehicles to comply with the
874-provisions of this section, provided the mill rate for motor vehicles is
875-lower than the mill rate for real property and personal property. No
876-district or borough may set a motor vehicle mill rate that if combined
877-with the motor vehicle mill rate of the town, city, consolidated town and
878-city or consolidated town and borough in which such district or
879-borough is located would result in a combined motor vehicle mill rate
880-(1) above 39 mills for the assessment year commencing October 1, 2016,
881-(2) above 45 mills for the assessment years commencing October 1, 2017,
882-to October 1, 2020, inclusive, or (3) above 32.46 mills for the assessment Senate Bill No. 501
883-
884-June Sp. Sess., 2024, Public Act No. 24-1 27 of 140
885-
886-year commencing October 1, 2021, and each assessment year thereafter.
887-(c) Notwithstanding the provisions of any special act, municipal
888-charter or home rule ordinance, a municipality or district that set a
889-motor vehicle mill rate prior to May 7, 2022, for the assessment year
890-commencing October 1, 2021, may, by vote of its legislative body, or if
891-the legislative body is a town meeting, the board of selectmen, revise
892-such mill rate to meet the requirements of this section, provided such
893-revision occurs not later than June 15, 2022.
894-(d) Notwithstanding the provisions of section 12-112, any board of
895-assessment appeals of a municipality that mailed or distributed, prior to
896-October 31, 2017, bills to taxpayers for motor vehicle property taxes
897-based on assessments made for the assessment year commencing
898-October 1, 2016, shall hear or entertain any appeals related to such
899-assessments not later than December 15, 2017.
900-(e) The Secretary of the Office of Policy and Management shall notify
901-the chief executive officer of each municipality:
902-(1) Annually, (A) of the municipality's option to reduce the mill rate
903-for motor vehicles to lower than 32.46 mills, including zero mills, and
904-(B) that such mill rate may be different from the mill rate for real
905-property and personal property other than motor vehicles to comply
906-with the provisions of this section, provided the mill rate for motor
907-vehicles is lower than the mill rate for real property and personal
908-property; and
909-(2) In advance of the implementation of a municipality's revaluation
910-pursuant to section 12-62, of the municipality's option to consider and
911-evaluate the reduction of the mill rate for motor vehicles in the same
912-fiscal year in which the revaluation is implemented.
913-[(e)] (f) For the purposes of this section, "municipality" means any
914-town, city, borough, consolidated town and city, consolidated town and Senate Bill No. 501
915-
916-June Sp. Sess., 2024, Public Act No. 24-1 28 of 140
917-
918-borough and "district" [means any district, as defined] has the same
919-meaning as provided in section 7-324.
920-Sec. 14. Section 36a-2 of the 2024 supplement to the general statutes
921-is repealed and the following is substituted in lieu thereof (Effective July
922-1, 2024):
923-As used in this title, unless the context otherwise requires:
924-(1) "Affiliate" of a person means any person controlling, controlled
925-by, or under common control with, that person;
926-(2) "Applicant" with respect to any license or approval provision
927-pursuant to this title means a person who applies for that license or
928-approval;
929-(3) "Automated teller machine" means a stationary or mobile device
930-that is unattended or equipped with a telephone or televideo device that
931-allows contact with bank personnel, including a satellite device but
932-excluding a [point of sale] point-of-sale terminal, at which banking
933-transactions, including, but not limited to, deposits, withdrawals,
934-advances, payments or transfers, may be conducted;
935-(4) "Bank" means a Connecticut bank or a federal bank;
936-(5) "Bank and trust company" means an institution chartered or
937-organized under the laws of this state as a bank and trust company;
938-(6) "Bank holding company" has the meaning given to that term in 12
939-USC Section 1841(a), as amended from time to time, except that the term
940-"bank", as used in 12 USC Section 1841(a), includes a bank or out-of-state
941-bank that functions solely in a trust or fiduciary capacity;
942-(7) "Capital and surplus" has the same meaning as provided in 12 CFR
943-1.2, as amended from time to time; Senate Bill No. 501
944-
945-June Sp. Sess., 2024, Public Act No. 24-1 29 of 140
946-
947-(8) "Capital stock" when used in conjunction with any bank or out-of-
948-state bank means a bank or out-of-state bank that is authorized to
949-accumulate funds through the issuance of its capital stock;
950-(9) "Client" means a beneficiary of a trust for whom the Connecticut
951-bank acts as trustee, a person for whom the Connecticut bank acts as
952-agent, custodian or bailee, or other person to whom a Connecticut bank
953-owes a duty or obligation under a trust or other account administered
954-by such Connecticut bank, regardless of whether such Connecticut bank
955-owes a fiduciary duty to the person;
956-(10) "Club deposit" means deposits to be received at regular intervals,
957-the whole amount deposited to be withdrawn by the owner or repaid
958-by the bank in not more than fifteen months from the date of the first
959-deposit, and upon which no interest or dividends need to be paid;
960-(11) "Commissioner" means the Banking Commissioner and, with
961-respect to any function of the commissioner, includes any person
962-authorized or designated by the commissioner to carry out that
963-function;
964-(12) "Company" means any corporation, joint stock company, trust,
965-association, partnership, limited partnership, unincorporated
966-organization, limited liability company or similar organization, but does
967-not include (A) any corporation the majority of the shares of which are
968-owned by the United States or by any state, or (B) any trust which by its
969-terms shall terminate within twenty-five years or not later than twenty-
970-one years and ten months after the death of beneficiaries living on the
971-effective date of the trust;
972-(13) "Connecticut bank" means a bank and trust company, savings
973-bank or savings and loan association chartered or organized under the
974-laws of this state;
975-(14) "Connecticut credit union" means a cooperative, nonprofit Senate Bill No. 501
976-
977-June Sp. Sess., 2024, Public Act No. 24-1 30 of 140
978-
979-financial institution that (A) is organized under chapter 667 and the
980-membership of which is limited as provided in section 36a-438a, (B)
981-operates for the benefit and general welfare of its members with the
982-earnings, benefits or services offered being distributed to or retained for
983-its members, and (C) is governed by a volunteer board of directors
984-elected by and from its membership;
985-(15) "Connecticut credit union service organization" means a credit
986-union service organization that is (A) incorporated under the laws of
987-this state, located in this state and established by at least one Connecticut
988-credit union, or (B) wholly owned by a credit union that converted into
989-a Connecticut credit union pursuant to section 36a-469b;
990-(16) "Consolidation" means a combination of two or more institutions
991-into a new institution; all institutions party to the consolidation, other
992-than the new institution, are "constituent" institutions; the new
993-institution is the "resulting" institution;
994-(17) "Control" has the meaning given to that term in 12 USC Section
995-1841(a), as amended from time to time;
996-(18) "Credit union service organization" means an entity organized
997-under state or federal law to provide credit union service organization
998-services primarily to its members, to Connecticut credit unions, federal
999-credit unions and out-of-state credit unions other than its members, and
1000-to members of any such other credit unions;
1001-(19) "Customer" means any person using a service offered by a
1002-financial institution;
1003-(20) "Demand account" means an account into which demand
1004-deposits may be made;
1005-(21) "Demand deposit" means a deposit that is payable on demand, a
1006-deposit issued with an original maturity or required notice period of less Senate Bill No. 501
1007-
1008-June Sp. Sess., 2024, Public Act No. 24-1 31 of 140
1009-
1010-than seven days or a deposit representing funds for which the bank does
1011-not reserve the right to require at least seven days' written notice of the
1012-intended withdrawal, but does not include any time deposit;
1013-(22) "Deposit" means funds deposited with a depository;
1014-(23) "Deposit account" means an account into which deposits may be
1015-made;
1016-(24) "Depositor" includes a member of a mutual savings and loan
1017-association;
1018-(25) "Director" means a member of the governing board of a financial
1019-institution;
1020-(26) "Equity capital" means the excess of a Connecticut bank's total
1021-assets over its total liabilities, as defined in the instructions of the federal
1022-Financial Institutions Examination Council for consolidated reports of
1023-condition and income;
1024-(27) "Executive officer" means every officer of a Connecticut bank
1025-who participates or has authority to participate, otherwise than in the
1026-capacity of a director, in major policy-making functions of such bank,
1027-regardless of whether such officer has an official title or whether that
1028-title contains a designation of assistant and regardless of whether such
1029-officer is serving without salary or other compensation. The president,
1030-vice president, secretary and treasurer of such bank are deemed to be
1031-executive officers, unless, by resolution of the governing board or by
1032-such bank's bylaws, any such officer is excluded from participation in
1033-major policy-making functions, otherwise than in the capacity of a
1034-director of such bank, and such officer does not actually participate in
1035-such policy-making functions;
1036-(28) "Federal agency" has the meaning given to that term in 12 USC
1037-Section 3101, as amended from time to time; Senate Bill No. 501
1038-
1039-June Sp. Sess., 2024, Public Act No. 24-1 32 of 140
1040-
1041-(29) "Federal bank" means a national banking association, federal
1042-savings bank or federal savings and loan association having its principal
1043-office in this state;
1044-(30) "Federal branch" has the meaning given to that term in 12 USC
1045-Section 3101, as amended from time to time;
1046-(31) "Federal credit union" means any institution chartered or
1047-organized as a federal credit union pursuant to the laws of the United
1048-States having its principal office in this state;
1049-(32) "Fiduciary" means a person undertaking to act alone or jointly
1050-with others primarily for the benefit of another or others in all matters
1051-connected with its undertaking and includes a person acting in the
1052-capacity of trustee, executor, administrator, guardian, assignee,
1053-receiver, conservator, agent, custodian under the Connecticut Uniform
1054-Gifts to Minors Act or the Uniform Transfers to Minors Act, and acting
1055-in any other similar capacity;
1056-(33) "Financial institution" means any Connecticut bank, Connecticut
1057-credit union, or other person whose activities in this state are subject to
1058-the supervision of the commissioner, but does not include a person
1059-whose activities are subject to the supervision of the commissioner
1060-solely pursuant to chapter 672a, 672b or 672c or any combination
1061-thereof;
1062-(34) "Foreign bank" has the meaning given to that term in 12 USC
1063-Section 3101, as amended from time to time;
1064-(35) "Foreign country" means any country other than the United
1065-States and includes any colony, dependency or possession of any such
1066-country;
1067-(36) "Governing board" means the group of persons vested with the
1068-management of the affairs of a financial institution irrespective of the Senate Bill No. 501
1069-
1070-June Sp. Sess., 2024, Public Act No. 24-1 33 of 140
1071-
1072-name by which such group is designated;
1073-(37) "Holding company" means a bank holding company or a savings
1074-and loan holding company, except, as used in sections 36a-180 to 36a-
1075-191, inclusive, "holding company" means a company that controls a
1076-bank;
1077-(38) "Innovation bank" means a Connecticut bank that does not accept
1078-retail deposits, but may accept nonretail deposits which are eligible for
1079-insurance from the Federal Deposit Insurance Corporation or the
1080-Federal Deposit Insurance Corporation's successor agency;
1081-[(38)] (39) "Insured depository institution" has the meaning given to
1082-that term in 12 USC Section 1813, as amended from time to time;
1083-[(39)] (40) "Licensee" means any person who is licensed or required
1084-to be licensed pursuant to the applicable provisions of this title;
1085-[(40)] (41) "Loan" includes any line of credit or other extension of
1086-credit;
1087-[(41)] (42) "Loan production office" means an office of a bank or out-
1088-of-state bank, other than a foreign bank, whose activities are limited to
1089-loan production and solicitation;
1090-[(42)] (43) "Merger" means the combination of one or more
1091-institutions with another which continues its corporate existence; all
1092-institutions party to the merger are "constituent" institutions; the
1093-merging institution which upon the merger continues its existence is the
1094-"resulting" institution;
1095-[(43)] (44) "Mutual" when used in conjunction with any institution
1096-that is a bank or out-of-state bank means any such institution without
1097-capital stock;
1098-[(44)] (45) "Mutual holding company" means a mutual holding Senate Bill No. 501
1099-
1100-June Sp. Sess., 2024, Public Act No. 24-1 34 of 140
1101-
1102-company organized under sections 36a-192 to 36a-199, inclusive, and
1103-unless otherwise indicated, a subsidiary holding company controlled by
1104-a mutual holding company organized under sections 36a-192 to 36a-199,
1105-inclusive;
1106-[(45)] (46) "Out-of-state" includes any state other than Connecticut
1107-and any foreign country;
1108-[(46)] (47) "Out-of-state bank" means any institution that engages in
1109-the business of banking, but does not include a bank, Connecticut credit
1110-union, federal credit union or out-of-state credit union;
1111-[(47)] (48) "Out-of-state credit union" means any credit union other
1112-than a Connecticut credit union or a federal credit union;
1113-[(48)] (49) "Out-of-state trust company" means any company
1114-chartered to act as a fiduciary but does not include a company chartered
1115-under the laws of this state, a bank, an out-of-state bank, a Connecticut
1116-credit union, a federal credit union or an out-of-state credit union;
1117-[(49)] (50) "Person" means an individual, company, including a
1118-company described in subparagraphs (A) and (B) of subdivision (12) of
1119-this section, or any other legal entity, including a federal, state or
1120-municipal government or agency or any political subdivision thereof;
1121-[(50) "Point of sale terminal"] (51) "Point-of-sale terminal" means a
1122-device located in a commercial establishment at which sales transactions
1123-can be charged directly to the buyer's deposit, loan or credit account, but
1124-at which deposit transactions cannot be conducted;
1125-[(51)] (52) "Prepayment penalty" means any charge or penalty for
1126-paying all or part of the outstanding balance owed on a loan before the
1127-date on which the principal is due and includes computing a refund of
1128-unearned interest by a method that is less favorable to the borrower than
1129-the actuarial method, as defined by Section 933(d) of the Housing and Senate Bill No. 501
1130-
1131-June Sp. Sess., 2024, Public Act No. 24-1 35 of 140
1132-
1133-Community Development Act of 1992, 15 USC 1615(d), as amended
1134-from time to time;
1135-[(52)] (53) "Reorganized savings bank" means any savings bank
1136-incorporated and organized in accordance with sections 36a-192 and
1137-36a-193;
1138-[(53)] (54) "Reorganized savings and loan association" means any
1139-savings and loan association incorporated and organized in accordance
1140-with sections 36a-192 and 36a-193;
1141-[(54)] (55) "Reorganized savings institution" means any reorganized
1142-savings bank or reorganized savings and loan association;
1143-[(55)] (56) "Representative office" has the meaning given to that term
1144-in 12 USC Section 3101, as amended from time to time;
1145-[(56)] (57) "Reserves for loan and lease losses" means the amounts
1146-reserved by a Connecticut bank against possible loan and lease losses as
1147-shown on the bank's consolidated reports of condition and income;
1148-[(57)] (58) "Retail deposits" means any deposits made by individuals
1149-who are not "accredited investors", as defined in 17 CFR 230.501(a);
1150-[(58)] (59) "Satellite device" means an automated teller machine which
1151-is not part of an office of the bank, Connecticut credit union or federal
1152-credit union which has established such machine;
1153-[(59)] (60) "Savings account" means a deposit account, other than an
1154-escrow account established pursuant to section 49-2a, into which
1155-savings deposits may be made and which account must be evidenced
1156-by periodic statements delivered at least semiannually or by a passbook;
1157-[(60)] (61) "Savings and loan association" means an institution
1158-chartered or organized under the laws of this state as a savings and loan
1159-association; Senate Bill No. 501
1160-
1161-June Sp. Sess., 2024, Public Act No. 24-1 36 of 140
1162-
1163-[(61)] (62) "Savings bank" means an institution chartered or organized
1164-under the laws of this state as a savings bank;
1165-[(62)] (63) "Savings deposit" means any deposit other than a demand
1166-deposit or time deposit on which interest or a dividend is paid
1167-periodically;
1168-[(63)] (64) "Savings and loan holding company" has the meaning
1169-given to that term in 12 USC Section 1467a, as amended from time to
1170-time;
1171-[(64)] (65) "Share account holder" means a person who maintains a
1172-share account in a Connecticut credit union, federal credit union or out-
1173-of-state credit union that maintains in this state a branch, as defined in
1174-section 36a-435b;
1175-[(65)] (66) "State" means any state of the United States, the District of
1176-Columbia, any territory of the United States, Puerto Rico, Guam,
1177-American Samoa, the trust territory of the Pacific Islands, the Virgin
1178-Islands and the Northern Mariana Islands;
1179-[(66)] (67) "State agency" has the meaning given to that term in 12 USC
1180-Section 3101, as amended from time to time;
1181-[(67)] (68) "State branch" has the meaning given to that term in 12 USC
1182-Section 3101, as amended from time to time;
1183-[(68)] (69) "Subsidiary" has the meaning given to that term in 12 USC
1184-Section 1841(d), as amended from time to time;
1185-[(69)] (70) "Subsidiary holding company" means a stock holding
1186-company, controlled by a mutual holding company, that holds one
1187-hundred per cent of the stock of a reorganized savings institution;
1188-[(70)] (71) "Supervisory agency" means: (A) The commissioner; (B) the
1189-Federal Deposit Insurance Corporation; (C) the Resolution Trust Senate Bill No. 501
1190-
1191-June Sp. Sess., 2024, Public Act No. 24-1 37 of 140
1192-
1193-Corporation; (D) the Office of Thrift Supervision; (E) the National Credit
1194-Union Administration; (F) the Board of Governors of the Federal
1195-Reserve System; (G) the United States Comptroller of the Currency; (H)
1196-the Bureau of Consumer Financial Protection; and (I) any successor to
1197-any of the foregoing agencies or individuals;
1198-[(71)] (72) "System" means the Nationwide Mortgage Licensing
1199-System and Registry, NMLS, NMLSR or such other name or acronym as
1200-may be assigned to the multistate system developed by the Conference
1201-of State Bank Supervisors and the American Association of Residential
1202-Mortgage Regulators and owned and operated by the State Regulatory
1203-Registry, LLC, or any successor or affiliated entity, for the licensing and
1204-registration of persons in the mortgage and other financial services
1205-industries;
1206-[(72)] (73) "Time account" means an account into which time deposits
1207-may be made;
1208-[(73)] (74) "Time deposit" means a deposit that the depositor or share
1209-account holder does not have a right and is not permitted to make
1210-withdrawals from within six days after the date of deposit, unless the
1211-deposit is subject to an early withdrawal penalty of at least seven days'
1212-simple interest on amounts withdrawn within the first six days after
1213-deposit, subject to those exceptions permissible under 12 CFR Part 204,
1214-as amended from time to time; and
1215-[(74)] (75) "Trust bank" means a Connecticut bank organized to
1216-function solely in a fiduciary capacity. [; and
1217-(75) "Uninsured bank" means a Connecticut bank that does not accept
1218-retail deposits and for which insurance of deposits by the Federal
1219-Deposit Insurance Corporation or its successor agency is not required.]
1220-Sec. 15. Subsection (e) of section 36a-65 of the general statutes is
1221-repealed and the following is substituted in lieu thereof (Effective July 1, Senate Bill No. 501
1222-
1223-June Sp. Sess., 2024, Public Act No. 24-1 38 of 140
1224-
1225-2024):
1226-(e) (1) If the commissioner determines that the assessment to be
1227-collected from an [uninsured] innovation bank or a trust bank pursuant
1228-to subdivision (1) of subsection (a) of this section is unreasonably low or
1229-high based on the size and risk profile of the bank, the commissioner
1230-may require such bank to pay a fee in lieu of such assessment. Each such
1231-bank shall pay such fee to the commissioner not later than the date
1232-specified by the commissioner for payment. If payment of such fee is not
1233-made by the time specified by the commissioner, such bank shall pay to
1234-the commissioner an additional two hundred dollars.
1235-(2) Any [uninsured] innovation bank required to pay a fee in lieu of
1236-assessment shall also pay to the commissioner the actual cost of the
1237-examination of such bank, as such cost is determined by the
1238-commissioner.
1239-Sec. 16. Subsections (n) to (u), inclusive, of section 36a-70 of the
1240-general statutes are repealed and the following is substituted in lieu
1241-thereof (Effective July 1, 2024):
1242-(n) The Connecticut bank shall not commence business until: (1) A
1243-final certificate of authority has been issued in accordance with
1244-subsection (l) of this section, (2) except in the case of a trust bank, an
1245-interim Connecticut bank organized pursuant to subsection (p) of this
1246-section, or an [uninsured] innovation bank organized pursuant to
1247-subsection (t) of this section, until its insurable accounts or deposits are
1248-insured by the Federal Deposit Insurance Corporation or its successor
1249-agency, and (3) it has complied with the requirements of subsection (u)
1250-of this section, if applicable. The acceptance of subscriptions for deposits
1251-by a mutual savings bank or mutual savings and loan association as may
1252-be necessary to obtain insurance by the Federal Deposit Insurance
1253-Corporation or its successor agency shall not be considered to be
1254-commencing business. No Connecticut bank other than a trust bank Senate Bill No. 501
1255-
1256-June Sp. Sess., 2024, Public Act No. 24-1 39 of 140
1257-
1258-may exercise any of the fiduciary powers granted to Connecticut banks
1259-by law until express authority therefor has been given by the
1260-commissioner.
1261-(o) Prior to the issuance of a final certificate of authority to commence
1262-business in accordance with subsection (l) of this section, the
1263-Connecticut bank shall pay to the State Treasurer a franchise tax,
1264-together with a filing fee of twenty dollars for the required papers. The
1265-franchise tax for a mutual savings bank and mutual savings and loan
1266-association shall be thirty dollars. The franchise tax for all capital stock
1267-Connecticut banks shall be one cent per share up to and including the
1268-first ten thousand authorized shares, one-half cent per share for each
1269-authorized share in excess of ten thousand shares up to and including
1270-one hundred thousand shares, one-quarter cent per share for each
1271-authorized share in excess of one hundred thousand shares up to and
1272-including one million shares and one-fifth cent per share for each
1273-authorized share in excess of one million shares.
1274-(p) (1) One or more persons may organize an interim Connecticut
1275-bank solely (A) for the acquisition of an existing bank, whether by
1276-acquisition of stock, by acquisition of assets, or by merger or
1277-consolidation, or (B) to facilitate any other corporate transaction
1278-authorized by this title in which the commissioner has determined that
1279-such transaction has adequate regulatory supervision to justify the
1280-organization of an interim Connecticut bank. Such interim Connecticut
1281-bank shall not accept deposits or otherwise commence business.
1282-Subdivision (2) of subsection (c) and subsections (d), (f), (g), (h) and (o)
1283-of this section shall not apply to the organization of an interim bank,
1284-provided the commissioner may, in the commissioner's discretion,
1285-order a hearing under subsection (e) or require that the organizers
1286-publish or mail the proposed certificate of incorporation or both. The
1287-approving authority for an interim Connecticut bank shall be the
1288-commissioner acting alone. If the approving authority determines that Senate Bill No. 501
1289-
1290-June Sp. Sess., 2024, Public Act No. 24-1 40 of 140
1291-
1292-the organization of the interim Connecticut bank complies with
1293-applicable law, the approving authority shall issue a temporary
1294-certificate of authority conditioned on the approval by the appropriate
1295-supervisory agency of the corporate transaction for which the interim
1296-Connecticut bank is formed.
1297-(2) (A) Notwithstanding any provision of this title, for the period
1298-from June 13, 2011, to September 30, 2013, inclusive, one or more
1299-persons may apply to the commissioner for the conditional preliminary
1300-approval of one or more expedited Connecticut banks organized
1301-primarily for the purpose of assuming liabilities and purchasing assets
1302-from the Federal Deposit Insurance Corporation when the Federal
1303-Deposit Insurance Corporation is acting as receiver or conservator of an
1304-insured depository institution. The application shall be made on a form
1305-acceptable to the commissioner and shall be executed and
1306-acknowledged by the applicant or applicants. Such application shall
1307-contain sufficient information for the commissioner to evaluate (i) the
1308-amount, type and sources of capital that would be available to the bank
1309-or banks; (ii) the ownership structure and holding companies, if any,
1310-over the bank or banks; (iii) the identity, biographical information and
1311-banking experience of each of the initial organizers and prospective
1312-initial directors, senior executive officers and any individual, group or
1313-proposed shareholders of the bank that will own or control ten per cent
1314-or more of the stock of the bank or banks; (iv) the overall strategic plan
1315-of the organizers and investors for the bank or banks; and (v) a
1316-preliminary business plan outlining intended product and business
1317-lines, retail branching plans and capital, earnings and liquidity
1318-projections. The commissioner, acting alone, shall grant conditional
1319-preliminary approval of such application to organize if the
1320-commissioner determines that the organizers have available sufficient
1321-committed funds to invest in the bank or banks; the organizers and
1322-proposed directors possess capacity and fitness for the duties and
1323-responsibilities with which they will be charged; the proposed bank or Senate Bill No. 501
1324-
1325-June Sp. Sess., 2024, Public Act No. 24-1 41 of 140
1326-
1327-banks have a reasonable chance of success and will be operated in a safe
1328-and sound manner; and the fee for investigating and processing the
1329-application has been paid in accordance with subparagraph (H) of
1330-subdivision (1) of subsection (d) of section 36a-65. Such preliminary
1331-approval shall be subject to such conditions as the commissioner deems
1332-appropriate, including the requirements that the bank or banks not
1333-commence the business of a Connecticut bank until after their bid or
1334-application for a particular insured depository institution is accepted by
1335-the Federal Deposit Insurance Corporation, that the background checks
1336-are satisfactory, and that the organizers submit, for the safety and
1337-soundness review by the commissioner, more detailed operating plans
1338-and current financial statements as potential acquisition transactions are
1339-considered, and such plans and statements are satisfactory to the
1340-commissioner. The commissioner may alter, suspend or revoke the
1341-conditional preliminary approval if the commissioner deems any
1342-interim development warrants such action. The conditional preliminary
1343-approval shall expire eighteen months from the date of approval, unless
1344-extended by the commissioner.
1345-(B) The commissioner shall not issue a final certificate of authority to
1346-commence the business of a Connecticut bank or banks under this
1347-subdivision until all conditions and preopening requirements and
1348-applicable state and federal regulatory requirements have been met and
1349-the fee for issuance of a final certificate of authority for an expedited
1350-Connecticut bank has been paid in accordance with subparagraph (M)
1351-of subdivision (1) of subsection (d) of section 36a-65. The commissioner
1352-may waive any requirement under this title or regulations adopted
1353-under this title that is necessary for the consummation of an acquisition
1354-involving an expedited Connecticut bank if the commissioner finds that
1355-such waiver is advisable and in the interest of depositors or the public,
1356-provided the commissioner shall not waive the requirement that the
1357-institution's insurable accounts or deposits be federally insured. Any
1358-such waiver granted by the commissioner under this subparagraph Senate Bill No. 501
1359-
1360-June Sp. Sess., 2024, Public Act No. 24-1 42 of 140
1361-
1362-shall be in writing and shall set forth the reason or reasons for the
1363-waiver. The commissioner may impose conditions on the final certificate
1364-of authority as the commissioner deems necessary to ensure that the
1365-bank will be operated in a safe and sound manner. The commissioner
1366-shall cause notice of the issuance of the final certificate of authority to be
1367-published in the department's weekly bulletin.
1368-(q) (1) As used in this subsection, "bankers' bank" means a
1369-Connecticut bank that is (A) owned exclusively by (i) any combination
1370-of banks, out-of-state banks, Connecticut credit unions, federal credit
1371-unions, or out-of-state credit unions, or (ii) a bank holding company that
1372-is owned exclusively by any such combination, and (B) engaged
1373-exclusively in providing services for, or that indirectly benefit, other
1374-banks, out-of-state banks, Connecticut credit unions, federal credit
1375-unions, or out-of-state credit unions and their directors, officers and
1376-employees.
1377-(2) One or more persons may organize a bankers' bank in accordance
1378-with the provisions of this section, except that subsections (g) and (h) of
1379-this section shall not apply. The approving authority for a bankers' bank
1380-shall be the commissioner acting alone. Before granting a temporary
1381-certificate of authority in the case of an application to organize a
1382-bankers' bank, the approving authority shall consider (A) whether the
1383-proposed bankers' bank will facilitate the provision of services that such
1384-banks, out-of-state banks, Connecticut credit unions, federal credit
1385-unions, or out-of-state credit unions would not otherwise be able to
1386-readily obtain, and (B) the character and experience of the proposed
1387-directors and officers. The application to organize a bankers' bank shall
1388-be approved if the approving authority determines that the interest of
1389-the public will be directly or indirectly served to advantage by the
1390-establishment of the proposed bankers' bank, and the proposed
1391-directors possess capacity and fitness for the duties and responsibilities
1392-with which they will be charged. Senate Bill No. 501
1393-
1394-June Sp. Sess., 2024, Public Act No. 24-1 43 of 140
1395-
1396-(3) A bankers' bank shall have all of the powers of and be subject to
1397-all of the requirements applicable to a Connecticut bank under this title
1398-which are not inconsistent with this subsection, except to the extent the
1399-commissioner limits such powers by regulation. Upon the written
1400-request of a bankers' bank, the commissioner may waive specific
1401-requirements of this title and the regulations adopted thereunder if the
1402-commissioner finds that (A) the requirement pertains primarily to banks
1403-that provide retail or consumer banking services and is inconsistent
1404-with this subsection, and (B) the requirement may impede the ability of
1405-the bankers' bank to compete or to provide desired services to its market
1406-provided, any such waiver and the commissioner's findings shall be in
1407-writing and shall be made available for public inspection.
1408-(4) The commissioner may adopt regulations, in accordance with
1409-chapter 54, to administer the provisions of this subsection.
1410-(r) (1) As used in this subsection and section 36a-139, "community
1411-bank" means a Connecticut bank that is organized pursuant to this
1412-subsection and is subject to the provisions of this subsection and section
1413-36a-139.
1414-(2) One or more persons may organize a community bank in
1415-accordance with the provisions of this section, except that subsection (g)
1416-of this section shall not apply. Any such community bank shall
1417-commence business with a minimum equity capital of at least three
1418-million dollars. The approving authority for a community bank shall be
1419-the commissioner acting alone. In addition to the considerations and
1420-determinations required by subsection (h) of this section, before
1421-granting a temporary certificate of authority to organize a community
1422-bank, the approving authority shall determine that (A) each of the
1423-proposed directors and proposed executive officers, as defined in
1424-subparagraph (D) of subdivision (3) of this subsection, possesses
1425-capacity and fitness for the duties and responsibilities with which such
1426-director or officer will be charged, and (B) there is satisfactory Senate Bill No. 501
1427-
1428-June Sp. Sess., 2024, Public Act No. 24-1 44 of 140
1429-
1430-community support for the proposed community bank based on
1431-evidence of such support provided by the organizers to the approving
1432-authority. If the approving authority cannot make such determination
1433-with respect to any such proposed director or proposed executive
1434-officer, the approving authority may refuse to allow such proposed
1435-director or proposed executive officer to serve in such capacity in the
1436-proposed community bank.
1437-(3) A community bank shall have all of the powers of and be subject
1438-to all of the requirements and limitations applicable to a Connecticut
1439-bank under this title which are not inconsistent with this subsection,
1440-except: (A) No community bank may (i) exercise any of the fiduciary
1441-powers granted to Connecticut banks by law until express authority
1442-therefor has been given by the approving authority, (ii) establish and
1443-maintain one or more mutual funds, (iii) invest in derivative securities
1444-other than mortgage-backed securities fully guaranteed by
1445-governmental agencies or government sponsored agencies, (iv) own
1446-any real estate for the present or future use of the bank unless the
1447-approving authority finds, based on an independently prepared
1448-analysis of costs and benefits, that it would be less costly to the bank to
1449-own instead of lease such real estate, or (v) make mortgage loans
1450-secured by nonresidential real estate the aggregate amount of which, at
1451-the time of origination, exceeds ten per cent of all assets of such bank;
1452-(B) the aggregate amount of all loans made by a community bank shall
1453-not exceed eighty per cent of the total deposits held by such bank; (C) (i)
1454-the total direct or indirect liabilities of any one obligor, whether or not
1455-fully secured and however incurred, to any community bank, exclusive
1456-of such bank's investment in the investment securities of such obligor,
1457-shall not exceed at the time incurred ten per cent of the equity capital
1458-and reserves for loan and lease losses of such bank, and (ii) the
1459-limitations set forth in subsection (a) of section 36a-262 shall apply to
1460-this subparagraph; and (D) the limitations set forth in subsection (a) of
1461-section 36a-263 shall apply to all community banks, provided, a Senate Bill No. 501
1462-
1463-June Sp. Sess., 2024, Public Act No. 24-1 45 of 140
1464-
1465-community bank may (i) make a mortgage loan to any director or
1466-executive officer secured by premises occupied or to be occupied by
1467-such director or officer as a primary residence, (ii) make an educational
1468-loan to any director or executive officer for the education of any child of
1469-such director or executive officer, and (iii) extend credit to any director
1470-or executive officer in an amount not exceeding ten thousand dollars for
1471-extensions of credit not otherwise specifically authorized in this
1472-subparagraph. The aggregate amount of all loans or extensions of credit
1473-made by a community bank pursuant to this subparagraph shall not
1474-exceed thirty-three and one-third per cent of the equity capital and
1475-reserves for loan and lease losses of such bank. As used in this
1476-subparagraph, "executive officer" means every officer of a community
1477-bank who participates or has authority to participate, other than in the
1478-capacity of a director, in major policy-making functions of the bank,
1479-regardless of whether such officer has an official title or whether such
1480-officer serves without salary or other compensation. The vice president,
1481-chief financial officer, secretary and treasurer of a community bank are
1482-presumed to be executive officers unless, by resolution of the governing
1483-board or by the bank's bylaws, any such officer is excluded from
1484-participation in major policy-making functions, other than in the
1485-capacity of a director of the bank, and such officer does not actually
1486-participate in major policy-making functions.
1487-(4) The audit and examination requirements set forth in section 36a-
1488-86 shall apply to each community bank.
1489-(5) The commissioner may adopt regulations, in accordance with
1490-chapter 54, to administer the provisions of this subsection and section
1491-36a-139.
1492-(s) (1) As used in this subsection, "community development bank"
1493-means a Connecticut bank that is organized to serve the banking needs
1494-of a well-defined neighborhood, community or other geographic area as
1495-determined by the commissioner, primarily, but not exclusively, by Senate Bill No. 501
1496-
1497-June Sp. Sess., 2024, Public Act No. 24-1 46 of 140
1498-
1499-making commercial loans in amounts of one hundred fifty thousand
1500-dollars or less to existing businesses or to persons seeking to establish
1501-businesses located within such neighborhood, community or
1502-geographic area.
1503-(2) One or more persons may organize a community development
1504-bank in accordance with the provisions of this section, except that
1505-subsection (g) of this section shall not apply. The approving authority
1506-for a community development bank shall be the commissioner acting
1507-alone. Any such community development bank shall commence
1508-business with a minimum equity capital determined by the
1509-commissioner to be appropriate for the proposed activities of such bank,
1510-provided, if such proposed activities include accepting deposits, such
1511-minimum equity capital shall be sufficient to enable such deposits to be
1512-insured by the Federal Deposit Insurance Corporation or its successor
1513-agency.
1514-(3) The state, acting through the State Treasurer, may be the sole
1515-organizer of a community development bank or may participate with
1516-any other person or persons in the organization of any community
1517-development bank, and may own all or a part of any capital stock of
1518-such bank. No application fee shall be required under subparagraph (H)
1519-of subdivision (1) of subsection (d) of section 36a-65 and no franchise tax
1520-shall be required under subsection (o) of this section for any community
1521-development bank organized by or in participation with the state.
1522-(4) In addition to the considerations and determinations required by
1523-subsection (h) of this section, before granting a temporary certificate of
1524-authority to organize a community development bank, the approving
1525-authority shall determine that (A) each of the proposed directors and
1526-proposed executive officers possesses capacity and fitness for the duties
1527-and responsibilities with which such director or officer will be charged,
1528-and (B) there is satisfactory community support for the proposed
1529-community development bank based on evidence of such support Senate Bill No. 501
1530-
1531-June Sp. Sess., 2024, Public Act No. 24-1 47 of 140
1532-
1533-provided by the organizers to the approving authority. If the approving
1534-authority cannot make such determination with respect to any such
1535-proposed director or proposed executive officer, the approving
1536-authority may refuse to allow such proposed director or proposed
1537-executive officer to serve in such capacity in the proposed community
1538-development bank. As used in this subdivision, "executive officer"
1539-means every officer of a community development bank who
1540-participates or has authority to participate, other than in the capacity of
1541-a director, in major policy-making functions of the bank, regardless of
1542-whether such officer has an official title or whether such officer serves
1543-without salary or other compensation. The vice president, chief financial
1544-officer, secretary and treasurer of a community development bank are
1545-presumed to be executive officers unless, by resolution of the governing
1546-board or by the bank's bylaws, any such officer is excluded from
1547-participation in major policy-making functions, other than in the
1548-capacity of a director of the bank, and such officer does not actually
1549-participate in major policy-making functions.
1550-(5) Notwithstanding any contrary provision of this title: (A) The
1551-commissioner may limit the powers that may be exercised by a
1552-community development bank or impose conditions on the exercise by
1553-such bank of any power allowed by this title as the commissioner deems
1554-necessary in the interest of the public and for the safety and soundness
1555-of the community development bank, provided, any such limitations or
1556-conditions, or both, shall be set forth in the final certificate of authority
1557-issued in accordance with subsection (l) of this section; and (B) the
1558-commissioner may waive in writing any requirement imposed on a
1559-community development bank under this title or any regulation
1560-adopted under this title if the commissioner finds that such requirement
1561-is inconsistent with the powers that may be exercised by such
1562-community development bank under its final certificate of authority.
1563-(6) The commissioner may adopt regulations, in accordance with Senate Bill No. 501
1564-
1565-June Sp. Sess., 2024, Public Act No. 24-1 48 of 140
1566-
1567-chapter 54, to carry out the provisions of this subsection.
1568-(t) (1) One or more persons may organize an [uninsured] innovation
1569-bank in accordance with the provisions of this section, except that
1570-subsection (g) of this section shall not apply. The approving authority
1571-for an [uninsured] innovation bank shall be the commissioner acting
1572-alone. Any such [uninsured] innovation bank shall commence business
1573-with a minimum equity capital of at least five million dollars unless the
1574-commissioner establishes a different minimum capital requirement for
1575-such [uninsured] innovation bank based upon its proposed activities.
1576-(2) An [uninsured] innovation bank shall have all of the powers of
1577-and be subject to all of the requirements and limitations applicable to a
1578-Connecticut bank under this title which are not inconsistent with this
1579-subsection, except no [uninsured] innovation bank may accept retail
1580-deposits and, notwithstanding any provision of this title, sections 36a-
1581-30 to 36a-34, inclusive, do not apply to [uninsured] innovation banks.
1582-(3) (A) An [uninsured] innovation bank shall display conspicuously,
1583-at each window or other place where deposits are usually accepted, a
1584-sign stating that deposits are not insured by the Federal Deposit
1585-Insurance Corporation or its successor agency.
1586-(B) An [uninsured] innovation bank shall either (i) include in boldface
1587-conspicuous type on each signature card, passbook, and instrument
1588-evidencing a deposit the following statement: "This deposit is not
1589-insured by the FDIC", or (ii) require each depositor to execute a
1590-statement that acknowledges that the initial deposit and all future
1591-deposits at the [uninsured] innovation bank are not insured by the
1592-Federal Deposit Insurance Corporation or its successor agency. The
1593-[uninsured] innovation bank shall retain such acknowledgment as long
1594-as the depositor maintains any deposit with the [uninsured] innovation
1595-bank. Senate Bill No. 501
1596-
1597-June Sp. Sess., 2024, Public Act No. 24-1 49 of 140
1598-
1599-(C) An [uninsured] innovation bank shall include on all of its deposit-
1600-related advertising a conspicuous statement that deposits are not
1601-insured by the Federal Deposit Insurance Corporation or its successor
1602-agency.
1603-(4) Notwithstanding any provision of this title, an innovation bank
1604-may accept and hold nonretail deposits, including, but not limited to,
1605-nonretail deposits received from a corporation that owns the majority of
1606-the shares of the innovation bank. An innovation bank may secure
1607-deposit insurance for such nonretail deposits, including from the
1608-Federal Deposit Insurance Corporation.
1609-(u) (1) Each trust bank and [uninsured] innovation bank shall keep
1610-assets on deposit in the amount of at least one million dollars with such
1611-banks as the commissioner may approve, provided a trust bank or
1612-[uninsured] innovation bank that received its final certificate of
1613-authority prior to May 12, 2004, shall keep assets on deposit as follows:
1614-At least two hundred fifty thousand dollars no later than one year from
1615-May 12, 2004, at least five hundred thousand dollars no later than two
1616-years from said date, at least seven hundred fifty thousand dollars no
1617-later than three years from said date and at least one million dollars no
1618-later than four years from said date. No trust bank or [uninsured]
1619-innovation bank shall make a deposit pursuant to this section until the
1620-bank at which the assets are to be deposited and the trust bank or
1621-[uninsured] innovation bank shall have executed a deposit agreement
1622-satisfactory to the commissioner. The value of such assets shall be based
1623-upon the principal amount or market value, whichever is lower. If the
1624-commissioner determines that an asset that otherwise qualifies under
1625-this section shall be valued at less than the amount otherwise provided
1626-in this subdivision, the commissioner shall so notify the trust bank or
1627-[uninsured] innovation bank, which shall thereafter value such asset as
1628-directed by the commissioner.
1629-(2) As used in this subsection, "assets" means: (A) United States dollar Senate Bill No. 501
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1632-
1633-deposits payable in the United States, other than certificates of deposit;
1634-(B) bonds, notes, debentures or other obligations of the United States or
1635-any agency or instrumentality thereof, or guaranteed by the United
1636-States, or of this state or of a county, city, town, village, school district,
1637-or instrumentality of this state or guaranteed by this state; (C) bonds,
1638-notes, debentures or other obligations issued by the Federal Home Loan
1639-Mortgage Corporation and the Federal National Mortgage Corporation;
1640-(D) commercial paper payable in dollars in the United States, provided
1641-such paper is rated in one of the three highest rating categories by a
1642-rating service recognized by the commissioner. In the event that an issue
1643-of commercial paper is rated by more than one recognized rating
1644-service, it shall be rated in one of the three highest rating categories by
1645-each such rating service; (E) negotiable certificates of deposit that are
1646-payable in the United States; (F) reserves held at a federal reserve bank;
1647-and (G) such other assets as determined by the commissioner upon
1648-written application.
1649-Sec. 17. Subsections (a) to (h), inclusive, of section 36a-139a of the
1650-general statutes are repealed and the following is substituted in lieu
1651-thereof (Effective July 1, 2024):
1652-(a) Any [uninsured] innovation bank or any trust bank may, upon the
1653-approval of the commissioner, convert to a Connecticut bank that is
1654-authorized to accept retail deposits and operate without the limitations
1655-provided in subdivisions (2) and (3) of subsection (t) and subsection (u)
1656-of section 36a-70, as amended by this act, and subsection (b) of section
1657-36a-250.
1658-(b) The converting bank shall file with the commissioner a proposed
1659-plan of conversion, a copy of the proposed amended certificate of
1660-incorporation and a certificate by the secretary of the converting bank
1661-that the proposed plan of conversion and proposed amended certificate
1662-of incorporation have been approved in accordance with subsection (c)
1663-of this section. Senate Bill No. 501
1664-
1665-June Sp. Sess., 2024, Public Act No. 24-1 51 of 140
1666-
1667-(c) The proposed plan of conversion and proposed amended
1668-certificate of incorporation shall require the approval of a majority of the
1669-governing board of the converting bank and the favorable vote of not
1670-less than two-thirds of the holders of each class of the converting
1671-[bank’s] bank's capital stock, if any, or in the case of a converting mutual
1672-bank, the corporators thereof, cast at a meeting called to consider such
1673-conversion.
1674-(d) Any shareholder of a capital stock Connecticut bank that proposes
1675-to convert under this section, who, on or before the date of the
1676-[shareholders’] shareholders' meeting to vote on such conversion,
1677-objects to the conversion by filing a written objection with the secretary
1678-of such bank may, within ten days after the effective date of such
1679-conversion, make written demand upon the bank for payment of such
1680-shareholder's stock. Any such shareholder that makes such objection
1681-and demand shall have the same rights as those of a shareholder that
1682-asserts appraisal rights with respect to the merger of two or more capital
1683-stock Connecticut banks.
1684-(e) The commissioner shall approve a conversion under this section
1685-if the commissioner determines that: (1) The converting bank has
1686-complied with all applicable provisions of law; (2) the converting bank
1687-has equity capital of at least five million dollars; (3) the converting bank
1688-has received satisfactory ratings on its most recent safety and soundness
1689-examination; (4) the proposed conversion will serve the public necessity
1690-and convenience; and (5) the converting bank will provide adequate
1691-services to meet the banking needs of all community residents,
1692-including low-income residents and moderate-income residents to the
1693-extent permitted by its charter, in accordance with a plan submitted by
1694-the converting bank to the commissioner, in such form and containing
1695-such information as the commissioner may require. Upon receiving any
1696-such plan, the commissioner shall make the plan available for public
1697-inspection and comment at the Department of Banking and cause notice Senate Bill No. 501
1698-
1699-June Sp. Sess., 2024, Public Act No. 24-1 52 of 140
1700-
1701-of its submission and availability for inspection and comment to be
1702-published in the department's weekly bulletin. With the concurrence of
1703-the commissioner, the converting bank shall publish, in the form of a
1704-legal advertisement in a newspaper having a substantial circulation in
1705-the area, notice of such plan's submission and availability for public
1706-inspection and comment. The notice shall state that the inspection and
1707-comment period will last for a period of thirty days from the date of
1708-publication. The commissioner shall not make such determination until
1709-the expiration of the thirty-day period. In making such determination,
1710-the commissioner shall, unless clearly inapplicable, consider, among
1711-other factors, whether the plan identifies specific unmet credit and
1712-consumer banking needs in the local community and specifies how such
1713-needs will be satisfied, provides for sufficient distribution of banking
1714-services among branches or satellite devices, or both, located in low-
1715-income neighborhoods, contains adequate assurances that banking
1716-services will be offered on a nondiscriminatory basis and demonstrates
1717-a commitment to extend credit for housing, small business and
1718-consumer purposes in low-income neighborhoods.
1719-(f) After receipt of the commissioner's approval, the converting bank
1720-shall promptly file such approval and its amended certificate of
1721-incorporation with the Secretary of the State and with the town clerk of
1722-the town in which its principal office is located. Upon such filing, the
1723-bank shall cease to be an [uninsured] innovation bank subject to the
1724-provisions of subdivisions (2) and (3) of subsection (t) and subsection
1725-(u) of section 36a-70, as amended by this act, or a trust bank, subject to
1726-the limitations provided in subsection (u) of section 36a-70, as amended
1727-by this act, and subsection (b) of section 36a-250, and shall be a
1728-Connecticut bank subject to all of the requirements and limitations and
1729-possessed of all rights, privileges and powers granted to it by its
1730-amended certificate of incorporation and by the provisions of the
1731-general statutes applicable to its type of Connecticut bank. Such
1732-Connecticut bank shall not commence business unless its insurable Senate Bill No. 501
1733-
1734-June Sp. Sess., 2024, Public Act No. 24-1 53 of 140
1735-
1736-accounts and deposits are insured by the Federal Deposit Insurance
1737-Corporation or its successor agency. Upon such filing with the Secretary
1738-of the State and with the town clerk, all of the assets, business and good
1739-will of the converting bank shall be transferred to and vested in such
1740-Connecticut bank without any deed or instrument of conveyance,
1741-provided the converting bank may execute any deed or instrument of
1742-conveyance as is convenient to confirm such transfer. Such Connecticut
1743-bank shall be subject to all of the duties, relations, obligations, trusts and
1744-liabilities of the converting bank, whether as debtor, depository,
1745-registrar, transfer agent, executor, administrator or otherwise, and shall
1746-be liable to pay and discharge all such debts and liabilities, and to
1747-perform all such duties in the same manner and to the same extent as if
1748-the Connecticut bank had itself incurred the obligation or liability or
1749-assumed the duty or relation. All rights of creditors of the converting
1750-bank and all liens upon the property of such bank shall be preserved
1751-unimpaired and the Connecticut bank shall be entitled to receive,
1752-accept, collect, hold and enjoy any and all gifts, bequests, devises,
1753-conveyances, trusts and appointments in favor of or in the name of the
1754-converting bank and whether made or created to take effect prior to or
1755-after the conversion.
1756-(g) The persons named as directors in the amended certificate of
1757-incorporation shall be the directors of such Connecticut bank until the
1758-first annual election of directors after the conversion or until the
1759-expiration of their terms as directors, and shall have the power to take
1760-all necessary actions and to adopt bylaws concerning the business and
1761-management of such Connecticut bank.
1762-(h) No such Connecticut bank resulting from the conversion of an
1763-[uninsured] innovation bank may exercise any of the fiduciary powers
1764-granted to Connecticut banks by law until express authority therefor has
1765-been given by the commissioner, unless such authority was previously
1766-granted to the converting bank. Senate Bill No. 501
1767-
1768-June Sp. Sess., 2024, Public Act No. 24-1 54 of 140
1769-
1770-Sec. 18. Subsections (a) to (g), inclusive, of section 36a-139b of the
1771-general statutes are repealed and the following is substituted in lieu
1772-thereof (Effective July 1, 2024):
1773-(a) Any Connecticut bank may, upon the approval of the
1774-commissioner, convert to an [uninsured] innovation bank.
1775-(b) The converting bank shall file with the commissioner a proposed
1776-plan of conversion, a copy of the proposed amended certificate of
1777-incorporation and a certificate by the secretary of the converting bank
1778-that the proposed plan of conversion and proposed certificate of
1779-incorporation have been approved in accordance with subsection (c) of
1780-this section.
1781-(c) The proposed plan of conversion and proposed amended
1782-certificate of incorporation shall require the approval of a majority of the
1783-governing board of the converting bank and the favorable vote of not
1784-less than two-thirds of the holders of each class of the [bank’s] bank's
1785-capital stock, if any, or, in the case of a mutual bank, the corporators
1786-thereof, cast at a meeting called to consider such conversion.
1787-(d) Any shareholder of a converting capital stock Connecticut bank
1788-that proposes to convert to an [uninsured] innovation bank who, on or
1789-before the date of the [shareholders’] shareholders' meeting to vote on
1790-such conversion, objects to the conversion by filing a written objection
1791-with the secretary of such bank may, within ten days after the effective
1792-date of such conversion, make written demand upon the converted bank
1793-for payment of such [shareholder’s] shareholder's stock. Any such
1794-shareholder that makes such objection and demand shall have the same
1795-rights as those of a shareholder who dissents from the merger of two or
1796-more capital stock Connecticut banks.
1797-(e) If applicable, a converting Connecticut bank shall liquidate all of
1798-its retail deposits with the approval of the commissioner. The converting Senate Bill No. 501
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1800-June Sp. Sess., 2024, Public Act No. 24-1 55 of 140
1801-
1802-bank shall file with the commissioner a written notice of its intent to
1803-liquidate all of its retail deposits together with a plan of liquidation and
1804-a proposed notice to depositors approved and executed by a majority of
1805-its governing board. The commissioner shall approve the plan and the
1806-notice to depositors. The commissioner shall not approve a sale of the
1807-retail deposits of the converting bank if the purchasing insured
1808-depository institution, including all insured depository institutions
1809-which are affiliates of such institution, upon consummation of the sale,
1810-would control thirty per cent or more of the total amount of deposits of
1811-insured depository institutions in this state, unless the commissioner
1812-permits a greater percentage of such deposits. The converting and
1813-purchasing institutions shall file with the commissioner a written
1814-agreement approved and executed by a majority of the governing board
1815-of each institution prescribing the terms and conditions of the
1816-transaction.
1817-(f) The commissioner shall approve a conversion under this section if
1818-the commissioner determines that: (1) The converting bank has
1819-complied with all applicable provisions of law; (2) the converting bank
1820-has equity capital of at least five million dollars unless the commissioner
1821-establishes a different minimum capital requirement based on the
1822-proposed activities of the converting bank; (3) the converting bank has
1823-liquidated all of its retail deposits, if any, and has no deposits that are
1824-insured by the Federal Deposit Insurance Corporation or its successor
1825-agency; and (4) the proposed conversion will serve the public necessity
1826-and convenience. The commissioner shall not approve such conversion
1827-unless the commissioner considers the findings of the most recent state
1828-or federal safety and soundness examination of the converting bank,
1829-and the effect of the proposed conversion on the financial resources and
1830-future prospects of the converting bank.
1831-(g) After receipt of the [commissioner’s] commissioner's approval for
1832-the conversion, the converting bank shall promptly file such approval Senate Bill No. 501
1833-
1834-June Sp. Sess., 2024, Public Act No. 24-1 56 of 140
1835-
1836-and its certificate of incorporation with the Secretary of the State and
1837-with the town clerk of the town in which its principal office is located.
1838-Upon such filing, the converted Connecticut bank shall not accept retail
1839-deposits and shall be an [uninsured] innovation bank, subject to the
1840-limitations in subdivisions (2) and (3) of subsection (t) and subsection
1841-(u) of section 36a-70, as amended by this act. Upon such conversion, the
1842-converted Connecticut bank possesses all of the rights, privileges and
1843-powers granted to it by its certificate of incorporation and by the
1844-provisions of the general statutes applicable to its type of Connecticut
1845-bank, and all of the assets, business and good will of the converting bank
1846-shall be transferred to and vested in the converted Connecticut bank
1847-without any deed or instrument of conveyance, provided the converting
1848-bank may execute any deed or instrument of conveyance as is
1849-convenient to confirm such transfer. The converted Connecticut bank
1850-shall be subject to all of the duties, relations, obligations, trusts and
1851-liabilities of the converting bank, whether as debtor, depository,
1852-registrar, transfer agent, executor, administrator or otherwise, and shall
1853-be liable to pay and discharge all such debts and liabilities, and to
1854-perform all such duties in the same manner and to the same extent as if
1855-the converted bank had itself incurred the obligation or liability or
1856-assumed the duty or relation. All rights of creditors of the converting
1857-bank and all liens upon the property of such bank shall be preserved
1858-unimpaired and the [uninsured] innovation bank shall be entitled to
1859-receive, accept, collect, hold and enjoy any and all gifts, bequests,
1860-devises, conveyances, trusts and appointments in favor of or in the
1861-name of the converting bank and whether made or created to take effect
1862-prior to or after the conversion.
1863-Sec. 19. Section 36a-215 of the general statutes is repealed and the
1864-following is substituted in lieu thereof (Effective July 1, 2024):
1865-If, in the opinion of the commissioner, a trust bank, or an [uninsured]
1866-innovation bank, in danger of becoming insolvent, is not likely to be able Senate Bill No. 501
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1868-June Sp. Sess., 2024, Public Act No. 24-1 57 of 140
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1870-to meet the demands of its depositors, in the case of an [uninsured]
1871-innovation bank, or pay its obligations in the normal course of business,
1872-or is likely to incur losses that may deplete all or substantially all of its
1873-capital, the commissioner may require such trust bank or [uninsured]
1874-innovation bank to increase the assets kept on deposit as required by
1875-subsection (u) of section 36a-70, as amended by this act, to an amount
1876-that would be sufficient to meet the costs and expenses incurred by the
1877-commissioner pursuant to section 36a-222 and all fees and assessments
1878-due the commissioner. Such assets shall be deposited with such bank as
1879-the commissioner may designate, and shall be in such form and subject
1880-to such conditions as the commissioner deems necessary.
1881-Sec. 20. Subsection (a) of section 36a-220 of the general statutes is
1882-repealed and the following is substituted in lieu thereof (Effective July 1,
1883-2024):
1884-(a) If it appears to the commissioner that (1) the charter of any
1885-Connecticut bank or out-of-state bank that maintains in this state a
1886-branch, as defined in section 36a-410, or the certificate of authority of
1887-any Connecticut credit union or out-of-state credit union that maintains
1888-in this state a branch, as defined in section 36a-435b, is forfeited, (2) the
1889-public is in danger of being defrauded by such bank or credit union, it
1890-is unsafe or unsound for such bank or credit union to continue business
1891-or its assets are being dissipated, (3) such bank or credit union is
1892-insolvent, is in danger of imminent insolvency or that its capital is not
1893-adequate to support the level of risk, or (4) the Federal Deposit
1894-Insurance Corporation, National Credit Union Administration or their
1895-successor agencies have terminated insurance of the insurable accounts
1896-or deposits of such bank, unless such Connecticut bank has filed an
1897-application with the commissioner to convert to an [uninsured]
1898-innovation bank pursuant to section 36a-139b, as amended by this act,
1899-or credit union, the commissioner shall apply to the superior court for
1900-the judicial district of Hartford or the judicial district in which the main Senate Bill No. 501
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1902-June Sp. Sess., 2024, Public Act No. 24-1 58 of 140
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1904-office of such bank or credit union is located for an injunction restraining
1905-such bank or credit union from conducting business or, in the case of a
1906-Connecticut bank or Connecticut credit union, for the appointment of a
1907-conservator or for a receiver to wind up its affairs.
1908-Sec. 21. Subsections (a) to (c), inclusive, of section 36a-221a of the
1909-general statutes are repealed and the following is substituted in lieu
1910-thereof (Effective July 1, 2024):
1911-(a) (1) The receiver of a trust bank or [uninsured] innovation bank
1912-shall, as soon after the receiver's appointment as is practicable,
1913-terminate all fiduciary positions the bank holds, surrender all property
1914-held by the bank as a fiduciary and settle the fiduciary accounts. With
1915-the approval of the Superior Court, the receiver of a trust bank or
1916-[uninsured] innovation bank shall release all segregated and identifiable
1917-fiduciary property held by the bank to one or more successor fiduciaries,
1918-and may sell one or more fiduciary accounts to one or more successor
1919-fiduciaries on terms that appear to be in the best interest of the bank's
1920-estate and the persons interested in the property or fiduciary accounts.
1921-(2) Upon the sale or transfer of fiduciary property or a fiduciary
1922-account, the successor fiduciary shall be automatically substituted
1923-without further action and without any order of any court. Prior to the
1924-effective date of substitution of the successor fiduciary, the receiver shall
1925-mail notice of such substitution to each person to whom such bank
1926-provides periodic reports of fiduciary activity. The notice shall include:
1927-(A) The name of such bank, (B) the name of the successor fiduciary, and
1928-(C) the effective date of the substitution of the successor fiduciary. The
1929-provisions of section 45a-245a shall not apply to the substitution of a
1930-fiduciary under this section.
1931-(b) A successor fiduciary shall have all of the rights, powers, duties
1932-and obligations of such bank and shall be deemed to be named,
1933-nominated or appointed as fiduciary in any will, trust, court order or Senate Bill No. 501
1934-
1935-June Sp. Sess., 2024, Public Act No. 24-1 59 of 140
1936-
1937-similar written document or instrument that names, nominates or
1938-appoints such bank as fiduciary, whether executed before or after the
1939-successor fiduciary is substituted, provided the successor fiduciary shall
1940-have no obligations or liabilities under this section for any acts, actions,
1941-inactions or events occurring prior to the effective date of the
1942-substitution.
1943-(c) If commingled fiduciary money held by the trust bank or
1944-[uninsured] innovation bank as trustee is insufficient to satisfy all
1945-fiduciary claims to the commingled money, the receiver shall distribute
1946-such money pro rata to all fiduciary claimants of such money based on
1947-their proportionate interest.
1948-Sec. 22. Section 36a-225 of the general statutes is repealed and the
1949-following is substituted in lieu thereof (Effective July 1, 2024):
1950-(a) The Superior Court, upon appointing a receiver of any
1951-Connecticut bank, other than a trust bank or an [uninsured] innovation
1952-bank, or Connecticut credit union, shall limit the time within which all
1953-claims against the bank or credit union may be presented to the receiver,
1954-and the court may, upon cause shown, extend such time and shall cause
1955-such public notice of such limitation or extension of time to be given as
1956-it deems reasonable and just. All claims not presented to the receiver
1957-within the period limited shall be forever barred, except that any claim
1958-for a deposit or share account, as shown by the depositor's or share
1959-account holder's passbook, certificate of deposit, statement or other
1960-evidence of deposit or the records of such bank or credit union, shall be
1961-allowed by the receiver.
1962-(b) (1) As soon as reasonably practicable after appointment of a
1963-receiver of a trust bank or an [uninsured] innovation bank, the receiver
1964-shall publish notice, in a newspaper of general circulation in each town
1965-in which an office of such bank is located, stating that: (A) The bank has
1966-been placed in receivership; (B) the depositors, clients and creditors are Senate Bill No. 501
1967-
1968-June Sp. Sess., 2024, Public Act No. 24-1 60 of 140
1969-
1970-required to present their claims for payment on or before a specific date
1971-and at a specified place; and (C) all safe deposit box holders and bailors
1972-of property left with the bank are required to remove their property no
1973-later than a specified date. The dates that the receiver selects may not be
1974-earlier than the one hundred twenty-first day after the date of the notice,
1975-and shall allow: (i) The affairs of the bank to be wound up as quickly as
1976-feasible; and (ii) depositors, clients, creditors, safe deposit box holders
1977-and bailors of property adequate time for presentation of claims,
1978-withdrawal of accounts, and redemption of property. The receiver may
1979-adjust the dates with the approval of the court and with or without
1980-republication of notice if the receiver determines that additional time is
1981-needed for any such presentation, withdrawal or redemption.
1982-(2) As soon as reasonably practicable, given the state of the [bank’s]
1983-bank's records and the adequacy of staffing, the receiver shall mail to
1984-each of the [bank’s] bank's known depositors, clients, creditors, safe
1985-deposit box holders and bailors of property left with the bank, at the
1986-mailing address shown on the [bank’s] bank's records, an individual
1987-notice containing the information required in the notice provided in
1988-subdivision (1) of this subsection, and specific information pertinent to
1989-the account or property of the addressee. The receiver of a trust bank or
1990-[uninsured] innovation bank may require a fiduciary claimant to file a
1991-proof of claim if the records of such bank are insufficient to identify the
1992-[claimant’s] claimant's interest.
1993-Sec. 23. Subsection (a) of section 36a-226a of the general statutes is
1994-repealed and the following is substituted in lieu thereof (Effective July 1,
1995-2024):
1996-(a) A contract between a trust bank or [uninsured] innovation bank
1997-in receivership and another person for bailment, of deposit for hire, or
1998-for the lease of a safe, vault or safe deposit box terminates on the date
1999-specified for removal of property in the notices that were published and
2000-mailed in accordance with section 36a-225, as amended by this act, or a Senate Bill No. 501
2001-
2002-June Sp. Sess., 2024, Public Act No. 24-1 61 of 140
2003-
2004-later date approved by the receiver or the Superior Court. A person who
2005-has paid rental or storage charges for a period extending beyond the
2006-date designated for removal of property has a claim against such bank's
2007-estate for a refund of the unearned amount paid.
2008-Sec. 24. Subsections (a) and (b) of section 36a-237 of the general
2009-statutes are repealed and the following is substituted in lieu thereof
2010-(Effective July 1, 2024):
2011-(a) The assets of any Connecticut bank, other than a trust bank or
2012-[uninsured] innovation bank, in the possession of a receiver shall be
2013-distributed in the following order of priority: (1) All fees and
2014-assessments due the commissioner; (2) the charges and expenses of
2015-settling such bank's affairs; (3) all deposits; (4) all other liabilities; (5) any
2016-liquidation account; and (6) in the case of a capital stock Connecticut
2017-bank, the claims of shareholders or, in the case of a mutual savings bank
2018-or mutual savings and loan association, the claims of depositors in
2019-proportion to their respective deposits.
2020-(b) (1) The assets of a trust bank or an [uninsured] innovation bank
2021-shall be distributed in the following order of priority: (A) All fees and
2022-assessments due the commissioner; (B) administrative expenses; (C)
2023-approved claims of owners of secured trust funds on deposit to the
2024-extent of the value of the security as provided in subsection (d) of section
2025-36a-237f, as amended by this act; (D) approved claims of secured
2026-creditors to the extent of the value of the security as provided in
2027-subsection (d) of section 36a-237f, as amended by this act; (E) approved
2028-claims by beneficiaries of insufficient commingled fiduciary money or
2029-missing fiduciary property and approved claims of clients of the trust
2030-bank or [uninsured] innovation bank; (F) other approved claims of
2031-depositors and general creditors not falling within a higher priority
2032-under this subdivision, including unsecured claims for taxes and debts
2033-due the federal government or a state or local government; (G)
2034-approved claims of a type described by subparagraphs (A) to (F), Senate Bill No. 501
2035-
2036-June Sp. Sess., 2024, Public Act No. 24-1 62 of 140
2037-
2038-inclusive, of this subdivision that were not filed within the period
2039-prescribed by sections 36a-215 to 36a-239, inclusive, as amended by this
2040-act; and (H) claims of capital note or debenture holders or holders of
2041-similar obligations and proprietary claims of shareholders or other
2042-owners according to the terms established by issue, class or series.
2043-(2) As used in this subsection, "administrative expense" means (A)
2044-any expense designated as an administrative expense by sections 36a-
2045-231 and 36a-237h, as amended by this act; (B) any charge or expense of
2046-settling the affairs of the bank, including court costs and expenses of
2047-operation and liquidation of the bank's estate; (C) wages owed to an
2048-employee of the bank for services rendered within three months before
2049-the date the bank was placed in receivership and not exceeding two
2050-thousand dollars to each employee; (D) current wages owed to an
2051-employee of the bank whose services are retained by the receiver for
2052-services rendered after the date the bank is placed in receivership; and
2053-(E) an unpaid expense of supervision or conservatorship of the bank
2054-before it was placed in receivership.
2055-Sec. 25. Section 36a-237f of the general statutes is repealed and the
2056-following is substituted in lieu thereof (Effective July 1, 2024):
2057-(a) To receive payment of a claim against the estate of a trust bank or
2058-[uninsured] innovation bank in receivership, a person who has a claim,
2059-other than a shareholder acting in that capacity, including a claimant
2060-with a secured claim or a fiduciary claimant ordered by the receiver to
2061-file a proof of claim under subdivision (2) of subsection (b) of section
2062-36a-225, as amended by this act, shall present proof of the claim to the
2063-receiver at a place specified by the receiver, within the period specified
2064-by the receiver. Receipt of the required proof of claim by the receiver is
2065-a condition precedent to the payment of the claim. A claim that is not
2066-filed within the period or at the place specified by the receiver may not
2067-participate in a distribution of the assets by the receiver, except that,
2068-subject to court approval, the receiver may accept a claim filed not later Senate Bill No. 501
2069-
2070-June Sp. Sess., 2024, Public Act No. 24-1 63 of 140
2071-
2072-than the one-hundred-eightieth day after the date notice of the
2073-claimant's right to file a proof of claim is mailed to the claimant,
2074-provided such claim shall be subordinate to an approved claim of a
2075-general creditor. Interest does not accrue on any claim after the date the
2076-bank is placed in receivership. The provisions of this subsection shall
2077-not apply to a fiduciary claimant or depositor where the records of the
2078-bank in receivership are sufficient to identify the fiduciary claimant's or
2079-depositor's interest.
2080-(b) (1) The proof of claim against a trust bank or an [uninsured]
2081-innovation bank shall be in writing, be signed by the claimant, and
2082-include: (A) A statement of the claim; (B) a description of the
2083-consideration for the claim; (C) a statement of whether collateral is held
2084-or a security interest is asserted against the claim and, if so, a description
2085-of the collateral or security interest; (D) a statement of any right of
2086-priority of payment for the claim or other specific right asserted by the
2087-claimant; (E) a statement of whether a payment has been made on the
2088-claim and, if so, the amount and source of the payment, to the extent
2089-known by the claimant; (F) a statement that the amount claimed is justly
2090-owed by the bank to the claimant; and (G) any other matter that is
2091-required by the Superior Court.
2092-(2) The receiver may designate the form of the proof of claim. A proof
2093-of claim shall be filed under oath unless the oath is waived by the
2094-receiver. If a claim is founded on a written instrument, the original
2095-instrument, unless lost or destroyed, shall be filed with the proof of
2096-claim. After the instrument is filed, the receiver may permit the claimant
2097-to substitute a copy of the instrument until the final disposition of the
2098-claim. If the instrument is lost or destroyed, a statement of that fact and
2099-of the circumstances of the loss or destruction shall be filed under oath
2100-with the claim.
2101-(c) A judgment against a trust bank or [uninsured] innovation bank
2102-in receivership taken by default or by collusion before the date the bank Senate Bill No. 501
2103-
2104-June Sp. Sess., 2024, Public Act No. 24-1 64 of 140
2105-
2106-was placed in receivership may not be considered as conclusive
2107-evidence of the liability of the bank to the judgment creditor or of the
2108-amount of damages to which the judgment creditor is entitled. A
2109-judgment against the bank entered after the date the bank was placed in
2110-receivership may not be considered as evidence of liability or of the
2111-amount of damages.
2112-(d) (1) The owner of secured trust funds on deposit may file a claim
2113-as a creditor against a trust bank or [uninsured] innovation bank in
2114-receivership. The value of the security shall be determined under
2115-supervision of the Superior Court by converting the security into
2116-money.
2117-(2) The owner of a secured claim against a trust bank or [uninsured]
2118-innovation bank in receivership may surrender the security and file a
2119-claim as a general creditor or apply the security to the claim and
2120-discharge the claim.
2121-(3) If the owner applies the security and discharges the claim under
2122-subdivision (2) of this subsection, any deficiency shall be treated as a
2123-claim against the general assets of the bank on the same basis as a claim
2124-of an unsecured creditor. The amount of the deficiency shall be
2125-determined as provided by subsection (e) of this section, except that if
2126-the amount of the deficiency has been adjudicated by a court in a
2127-proceeding in which the receiver has had notice and an opportunity to
2128-be heard, the court's decision is conclusive as to the amount.
2129-(4) The value of security held by a secured creditor shall be
2130-determined under supervision of the court by converting the security
2131-into money according to the terms of the agreement under which the
2132-security was delivered to the creditor or by agreement, arbitration,
2133-compromise or litigation between the creditor and the receiver.
2134-(e) (1) A claim against a trust bank or [uninsured] innovation bank in Senate Bill No. 501
2135-
2136-June Sp. Sess., 2024, Public Act No. 24-1 65 of 140
2137-
2138-receivership based on an unliquidated or undetermined demand shall
2139-be filed within the period for the filing of the claim. The claim may not
2140-share in any distribution to claimants until the claim is definitely
2141-liquidated, determined and allowed. After the claim is liquidated,
2142-determined and allowed, the claim shares ratably with the claims of the
2143-same class in all subsequent distributions.
2144-(2) If the receiver in all other respects is in a position to close the
2145-receivership proceeding, the proposed closing is sufficient grounds for
2146-the rejection of any remaining claim based on an unliquidated or
2147-undetermined demand. The receiver shall notify the claimant of the
2148-intention to close the proceeding. If the demand is not liquidated or
2149-determined before the sixty-first day after the date of the notice, the
2150-receiver may reject the claim.
2151-(3) For the purposes of this subsection, a demand is considered
2152-unliquidated or undetermined if the right of action on the demand
2153-accrued while the trust bank or [uninsured] innovation bank was placed
2154-in receivership and the liability on the demand has not been determined
2155-or the amount of the demand has not been liquidated.
2156-(f) (1) Mutual credits and mutual debts shall be set off and only the
2157-balance allowed or paid, except that a set-off may not be allowed in
2158-favor of a person if: (A) The obligation of a trust bank or [uninsured]
2159-innovation bank to the person on the date the bank was placed in
2160-receivership did not entitle the person to share as a claimant in the assets
2161-of the bank; (B) the obligation of the bank to the person was purchased
2162-by or transferred to the person after the date the bank was placed in
2163-receivership or for the purpose of increasing set-off rights; or (C) the
2164-obligation of the person or the bank is as a trustee or fiduciary.
2165-(2) Upon request, the receiver shall provide a person with an
2166-accounting statement identifying each debt that is due and payable. A
2167-person who owes a trust bank or [uninsured] innovation bank an Senate Bill No. 501
2168-
2169-June Sp. Sess., 2024, Public Act No. 24-1 66 of 140
2170-
2171-amount that is due and payable against which the person asserts set-off
2172-of mutual credits that may become due and payable from the bank in
2173-the future shall promptly pay to the receiver the amount due and
2174-payable. The receiver shall promptly refund, to the extent of the person's
2175-prior payment, mutual credits that become due and payable to the
2176-person by the bank in receivership.
2177-(g) (1) Not later than six months after the last day permitted for the
2178-filing of claims or a later date allowed by the Superior Court, the receiver
2179-shall accept or reject in whole or in part each claim filed against a trust
2180-bank or an [uninsured] innovation bank in receivership, except for an
2181-unliquidated or undetermined claim governed by subsection (e) of this
2182-section. The receiver shall reject a claim if the receiver doubts its validity.
2183-(2) The receiver shall mail written notice to each claimant, specifying
2184-the disposition of the person's claim. If a claim is rejected in whole or in
2185-part, the receiver in the notice shall specify the basis for rejection and
2186-advise the claimant of the procedures and deadline for appeal.
2187-(3) The receiver shall send each claimant a summary schedule of
2188-approved and rejected claims by priority class and notify the claimant:
2189-(A) That a copy of a schedule of claims disposition, including only the
2190-name of the claimant, the amount of the claim allowed, and the amount
2191-of the claim rejected, is available upon request; and (B) of the procedure
2192-and deadline for filing an objection to an approved claim.
2193-(h) The receiver of a trust bank or [uninsured] innovation bank, with
2194-the approval of the superior court, shall set a deadline for an objection
2195-to an approved claim. On or before that date, a depositor, creditor, other
2196-claimant or shareholder of a trust bank or [uninsured] innovation bank
2197-may file an objection to an approved claim. The objection shall be heard
2198-and determined by the court. If the objection is sustained, the court shall
2199-direct an appropriate modification of the schedule of claims. Senate Bill No. 501
2200-
2201-June Sp. Sess., 2024, Public Act No. 24-1 67 of 140
2202-
2203-(i) The receiver's rejection of a claim may be appealed to the superior
2204-court in which the receivership proceeding of a trust bank or
2205-[uninsured] innovation bank is pending. The appeal shall be filed within
2206-three months after the date of service of notice of the rejection. If the
2207-appeal is timely filed, review is de novo as if it were an action originally
2208-filed in the court, and is subject to the rules of procedure and appeal
2209-applicable to civil cases. An action to appeal rejection of a claim by the
2210-receiver is separate from the receivership proceeding, and may not be
2211-initiated by a claimant intervening in the receivership proceeding. If the
2212-action is not timely filed, the action of the receiver is final and not subject
2213-to review.
2214-(j) (1) The commissioner shall deposit all money available for the
2215-benefit of persons who have not filed a claim and are, according to the
2216-bank's records, depositors and creditors of a trust bank or [uninsured]
2217-innovation bank in receivership in a bank, Connecticut credit union,
2218-federal credit union, out-of-state bank that maintains in this state a
2219-branch, as defined in section 36a-410, or out-of-state credit union that
2220-maintains in this state a branch, as defined in section 36a-435b. The
2221-commissioner shall pay the nonclaiming depositors and creditors on
2222-demand the undisputed amount, based on the bank's records, held for
2223-their benefit.
2224-(2) The receiver may periodically make a partial distribution to the
2225-holders of approved claims if: (A) All objections have been heard and
2226-decided as provided by subsection (h) of this section; (B) the time for
2227-filing appeals has expired as provided by subsection (i) of this section;
2228-(C) money has been made available to provide for the payment of all
2229-nonclaiming depositors and creditors in accordance with subdivision (1)
2230-of this subsection; and (D) a proper reserve is established for the pro rata
2231-payment of: (i) Rejected claims that have been appealed, and (ii) any
2232-claims based on unliquidated or undetermined demands governed by
2233-subsection (e) of this section. Senate Bill No. 501
2234-
2235-June Sp. Sess., 2024, Public Act No. 24-1 68 of 140
2236-
2237-(3) As soon as practicable after all objections, appeals and claims
2238-based on previously unliquidated or undetermined demands governed
2239-by subsection (e) of this section have been determined and money has
2240-been made available to provide for the payment of all nonclaiming
2241-depositors and creditors in accordance with subdivision (1) of this
2242-subsection, the receiver shall distribute the assets of a trust bank or
2243-[uninsured] innovation bank in satisfaction of approved claims other
2244-than claims asserted in a person's capacity as a shareholder.
2245-Sec. 26. Section 36a-237g of the general statutes is repealed and the
2246-following is substituted in lieu thereof (Effective July 1, 2024):
2247-(a) All fiduciary records relating to the administration of fiduciary
2248-accounts of a trust bank or [uninsured] innovation bank shall be turned
2249-over to the successor fiduciary, as defined in section 45a-245a, in charge
2250-of administration of the accounts. The receiver may devise a method for
2251-the effective, efficient and economical maintenance of all other records
2252-of the trust bank or [uninsured] innovation bank and of the receiver's
2253-office.
2254-(b) On approval by the Superior Court, the receiver may dispose of
2255-records of the trust bank or [uninsured] innovation bank in receivership
2256-that are obsolete and unnecessary to the continued administration of the
2257-receivership proceeding.
2258-Sec. 27. Subsections (a) to (c), inclusive, of section 36a-237h of the
2259-general statutes are repealed and the following is substituted in lieu
2260-thereof (Effective July 1, 2024):
2261-(a) Persons entitled to protection under this section shall be: (1) All
2262-receivers or conservators of trust banks or [uninsured] innovation
2263-banks, including present and former receivers and conservators; and (2)
2264-the employees of such receivers or conservators. Atto rneys,
2265-accountants, auditors and other professional persons or firms who are Senate Bill No. 501
2266-
2267-June Sp. Sess., 2024, Public Act No. 24-1 69 of 140
2268-
2269-retained by the receiver or conservator as independent contractors, and
2270-their employees, shall not be considered employees of the receiver or
2271-conservator for purposes of this section.
2272-(b) The receiver or conservator and the employees of the receiver or
2273-conservator shall be immune from suit and liability, both personally and
2274-in their official capacities, for any claim for damage to or loss of
2275-property, personal injury or other civil liability caused by or resulting
2276-from any alleged act, error or omission of the receiver or conservator or
2277-any employee arising out of or by reason of their duties or employment,
2278-provided nothing in this section shall be construed to hold the receiver
2279-or conservator or any employee immune from suit or liability for any
2280-damage, loss, injury or liability caused by the intentional or wilful and
2281-wanton misconduct of the receiver or conservator or any employee.
2282-(c) (1) If any legal action is commenced against the receiver or
2283-conservator or any employee, whether personally or in such person's
2284-official capacity, alleging property damage, property loss, personal
2285-injury or other civil liability caused by or resulting from any alleged act,
2286-error or omission of the receiver or conservator or any employee arising
2287-out of or by reason of their duties or employment, the receiver or
2288-conservator and any employee shall be indemnified from the assets of
2289-the trust bank or [uninsured] innovation bank for all expenses,
2290-attorneys' fees, judgments, settlements, decrees or amounts due and
2291-owing or paid in satisfaction of or incurred in the defense of such legal
2292-action unless it is determined upon a final adjudication on the merits
2293-that the alleged act, error or omission of the receiver or conservator or
2294-employee giving rise to the claim did not arise out of or by reason of
2295-such person's duties or employment, or was caused by intentional or
2296-wilful and wanton misconduct.
2297-(2) Attorneys' fees and any related expenses incurred in defending a
2298-legal action for which immunity or indemnity is available under this
2299-section shall be paid from the assets of the trust bank or [uninsured] Senate Bill No. 501
2300-
2301-June Sp. Sess., 2024, Public Act No. 24-1 70 of 140
2302-
2303-innovation bank, as they are incurred, in advance of the final disposition
2304-of such action upon receipt of an undertaking by or on behalf of the
2305-receiver or conservator or employee to repay the attorneys' fees and
2306-expenses if it shall ultimately be determined upon a final adjudication
2307-on the merits that the receiver or conservator or employee is not entitled
2308-to immunity or indemnity under this section.
2309-(3) Any indemnification for expense payments, judgments,
2310-settlements, decrees, attorneys' fees, surety bond premiums or other
2311-amounts paid or to be paid from the assets of the trust bank or
2312-[uninsured] innovation bank pursuant to this section shall be an
2313-administrative expense of the receivership or conservatorship.
2314-(4) In the event of any actual or threatened litigation against a receiver
2315-or conservator or any employee for which immunity or indemnity may
2316-be available under this section, a reasonable amount of funds, which in
2317-the judgment of the receiver or conservator may be needed to provide
2318-immunity or indemnity, shall be segregated and reserved from the
2319-assets of the trust bank or [uninsured] innovation bank as security for
2320-the payment of indemnity until such time as all applicable statutes of
2321-limitation shall have run and all actual or threatened actions against the
2322-receiver or conservator or any employee have been completely and
2323-finally resolved, and all obligations of the trust bank or [uninsured]
2324-innovation bank and the commissioner under this section shall have
2325-been satisfied.
2326-(5) In lieu of segregation and reserving of funds, the receiver or
2327-conservator may, in the receiver's or conservator's discretion, obtain a
2328-surety bond or make other arrangements that will enable the receiver or
2329-conservator to fully secure the payment of all obligations under this
2330-section.
2331-Sec. 28. Subdivision (2) of subsection (a) of section 36a-333 of the
2332-general statutes is repealed and the following is substituted in lieu Senate Bill No. 501
2333-
2334-June Sp. Sess., 2024, Public Act No. 24-1 71 of 140
2335-
2336-thereof (Effective July 1, 2024):
2337-(2) Notwithstanding the provisions of subdivisions (1) and (3) of this
2338-subsection, to secure public deposits, each qualified public depository
2339-that (A) has been conducting business in this state for a period of less
2340-than two years, except for a depository that is a successor institution to
2341-a depository which conducted business in this state for two years or
2342-more, or (B) is an [uninsured] innovation bank, shall at all times
2343-maintain, segregated from its other assets as required under subsection
2344-(b) of this section, eligible collateral in an amount not less than one
2345-hundred twenty per cent of all uninsured public deposits held by the
2346-depository.
2347-Sec. 29. Section 36a-609 of the 2024 supplement to the general statutes
2348-is repealed and the following is substituted in lieu thereof (Effective July
2349-1, 2024):
2350-The provisions of sections 36a-597 to 36a-607, inclusive, and sections
2351-36a-611 and 36a-612 shall not apply to:
2352-(1) Any federally insured federal bank, out-of-state bank, Connecticut
2353-bank, Connecticut credit union, federal credit union or out-of-state
2354-credit union, provided such institution does not engage in the business
2355-of money transmission in this state through any person who is not (A) a
2356-federally insured federal bank, out-of-state bank, Connecticut bank,
2357-Connecticut credit union, federal credit union or out-of-state credit
2358-union, (B) a person licensed pursuant to sections 36a-595 to 36a-612,
2359-inclusive, or an authorized delegate acting on behalf of such licensed
2360-person, or (C) a person exempt pursuant to subdivisions (2) to (4),
2361-inclusive, of this section;
2362-(2) Any Connecticut bank that is an [uninsured] innovation bank
2363-organized pursuant to subsection (t) of section 36a-70, as amended by
2364-this act; Senate Bill No. 501
2365-
2366-June Sp. Sess., 2024, Public Act No. 24-1 72 of 140
2367-
2368-(3) The United States Postal Service and any contractor that engages
2369-in the business of money transmission in this state on behalf of the
2370-United States Postal Service; and
2371-(4) A person whose activity is limited to the electronic funds transfer
2372-of governmental benefits for or on behalf of a federal, state or other
2373-governmental agency, quasi-governmental agency or government
2374-sponsored enterprise.
2375-Sec. 30. (Effective from passage) In the case of any underpayment of tax
2376-by a taxpayer under chapter 208, 228z or 229 of the general statutes, no
2377-interest shall be imposed under such chapters to the extent such
2378-underpayment was due to the filing of an amended return necessitated
2379-by guidance issued by the Internal Revenue Service concerning the
2380-federal employee retention credit program. If such interest has already
2381-been paid to the Department of Revenue Services, the Commissioner of
2382-Revenue Services shall treat such payment as an overpayment and shall
2383-refund the amount of such payment, without interest, to the taxpayer.
2384-Sec. 31. Section 38a-48 of the general statutes, as amended by section
2385-6 of public act 24-138, is repealed and the following is substituted in lieu
2386-thereof (Effective October 1, 2025):
2387-(a) On or before June thirtieth, annually, the Commissioner of
2388-Revenue Services shall render to the Insurance Commissioner a
2389-statement certifying the total amount of taxes [or charges imposed on]
2390-reported to the Commissioner of Revenue Services on returns filed with
2391-said commissioner by each domestic insurance company or other
2392-domestic entity under chapter 207 on business done in this state during
2393-the [preceding calendar year. The statement for local domestic insurance
2394-companies shall set forth the amount of taxes and charges before any tax
2395-credits allowed as provided in subsection (a) of section 12-202] calendar
2396-year immediately preceding the prior calendar year. For purposes of
2397-preparing the annual statement under this subsection, the total amount Senate Bill No. 501
2398-
2399-June Sp. Sess., 2024, Public Act No. 24-1 73 of 140
2400-
2401-of taxes required to be set forth in such statement shall be the amount of
2402-tax reported by each domestic insurance company or other domestic
2403-entity under chapter 207 to the Commissioner of Revenue Services prior
2404-to the application of any credits allowable or available under law to each
2405-such domestic insurance company or other domestic entity under
2406-chapter 207.
2407-(b) On or before July thirty-first, annually, the Insurance
2408-Commissioner shall render to each domestic insurance company or
2409-other domestic entity liable for payment under section 38a-47:
2410-(1) A statement that includes (A) the amount appropriated to the
2411-Insurance Department, the Office of the Healthcare Advocate and the
2412-Office of Health Strategy from the Insurance Fund established under
2413-section 38a-52a for the fiscal year beginning July first of the same year,
2414-(B) the cost of fringe benefits for department and office personnel for
2415-such year, as estimated by the Comptroller, (C) the estimated
2416-expenditures on behalf of the department and the offices from the
2417-Capital Equipment Purchase Fund pursuant to section 4a-9 for such
2418-year, not including such estimated expenditures made on behalf of the
2419-Health Systems Planning Unit of the Office of Health Strategy, and (D)
2420-the amount appropriated to the Department of Aging and Disability
2421-Services for the fall prevention program established in section 17a-859
2422-from the Insurance Fund for the fiscal year;
2423-(2) [a] A statement of the total amount of taxes [imposed on all
2424-domestic insurance companies and domestic insurance entities under
2425-chapter 207 on business done in this state during the preceding calendar
2426-year] reported in the annual statement rendered to the Insurance
2427-Commissioner pursuant to subsection (a) of this section; and
2428-(3) [the] The proposed assessment against that company or entity,
2429-calculated in accordance with the provisions of subsection (c) of this
2430-section, provided for the purposes of this calculation the amount Senate Bill No. 501
2431-
2432-June Sp. Sess., 2024, Public Act No. 24-1 74 of 140
2433-
2434-appropriated to the Insurance Department, the Office of the Healthcare
2435-Advocate and the Office of Health Strategy from the Insurance Fund
2436-plus the cost of fringe benefits for department and office personnel and
2437-the estimated expenditures on behalf of the department and [such] said
2438-offices from the Capital Equipment Purchase Fund pursuant to section
2439-4a-9, not including such expenditures made on behalf of the Health
2440-Systems Planning Unit of the Office of Health Strategy shall be deemed
2441-to be the actual expenditures of the department and [such] said offices,
2442-and the amount appropriated to the Department of Aging and Disability
2443-Services from the Insurance Fund for the fiscal year for the fall
2444-prevention program established in section 17a-859 shall be deemed to
2445-be the actual expenditures for the program.
2446-(c) (1) The proposed assessments for each domestic insurance
2447-company or other domestic entity shall be calculated by (A) allocating
2448-twenty per cent of the amount to be paid under section 38a-47 among
2449-the domestic entities organized under sections 38a-199 to 38a-209,
2450-inclusive, and 38a-214 to 38a-225, inclusive, in proportion to their
2451-respective shares of the total amount of taxes [and charges imposed
2452-under chapter 207 on such entities on business done in this state during
2453-the preceding calendar year] reported in the annual statement rendered
2454-to the Insurance Commissioner pursuant to subsection (a) of this
2455-section, and (B) allocating eighty per cent of the amount to be paid under
2456-section 38a-47 among all domestic insurance companies and domestic
2457-entities other than those organized under sections 38a-199 to 38a-209,
2458-inclusive, and 38a-214 to 38a-225, inclusive, in proportion to their
2459-respective shares of the total amount of taxes [and charges imposed
2460-under chapter 207 on such domestic insurance companies and domestic
2461-entities on business done in this state during the preceding calendar
2462-year] reported in the annual statement rendered to the Insurance
2463-Commissioner pursuant to subsection (a) of this section, provided if
2464-there are no domestic entities organized under sections 38a-199 to 38a-
2465-209, inclusive, and 38a-214 to 38a-225, inclusive, at the time of Senate Bill No. 501
2466-
2467-June Sp. Sess., 2024, Public Act No. 24-1 75 of 140
2468-
2469-assessment, one hundred per cent of the amount to be paid under
2470-section 38a-47 shall be allocated among such domestic insurance
2471-companies and domestic entities.
2472-(2) When the amount any such company or entity is assessed
2473-pursuant to this section exceeds twenty-five per cent of the actual
2474-expenditures of the Insurance Department, the Office of the Healthcare
2475-Advocate and the Office of Health Strategy from the Insurance Fund,
2476-such excess amount shall not be paid by such company or entity but
2477-rather shall be assessed against and paid by all other such companies
2478-and entities in proportion to their respective shares of the total amount
2479-of taxes [and charges imposed under chapter 207 on business done in
2480-this state during the preceding calendar year] reported in the annual
2481-statement rendered to the Insurance Commissioner pursuant to
2482-subsection (a) of this section, except that for purposes of any assessment
2483-made to fund payments to the Department of Public Health to purchase
2484-vaccines, such company or entity shall be responsible for its share of the
2485-costs, notwithstanding whether its assessment exceeds twenty-five per
2486-cent of the actual expenditures of the Insurance Department, the Office
2487-of the Healthcare Advocate and the Office of Health Strategy from the
2488-Insurance Fund. The provisions of this subdivision shall not be
2489-applicable to any corporation that has converted to a domestic mutual
2490-insurance company pursuant to section 38a-155 upon the effective date
2491-of any public act that amends said section to modify or remove any
2492-restriction on the business such a company may engage in, for purposes
2493-of any assessment due from such company on and after such effective
2494-date.
2495-(d) [For purposes of calculating the amount of payment under section
2496-38a-47, as well as the amount of the assessments under this section, the
2497-"total taxes imposed on all domestic insurance companies and other
2498-domestic entities under chapter 207" shall be based upon the amounts
2499-shown as payable to the state for the calendar year on the returns filed Senate Bill No. 501
2500-
2501-June Sp. Sess., 2024, Public Act No. 24-1 76 of 140
2502-
2503-with the Commissioner of Revenue Services pursuant to chapter 207;
2504-with respect to calculating the amount of payment and assessment for
2505-local domestic insurance companies, the amount used shall be the taxes
2506-and charges imposed before any tax credits allowed as provided in
2507-subsection (a) of section 12-202] Each annual payment determined
2508-under section 38a-47 and each annual assessment determined under this
2509-section shall be calculated based on the total amount of taxes reported
2510-in the annual statement rendered to the Insurance Commissioner
2511-pursuant to subsection (a) of this section.
2512-(e) On or before September first, annually, for each fiscal year, the
2513-Insurance Commissioner, after receiving any objections to the proposed
2514-assessments and making such adjustments as in the commissioner's
2515-opinion may be indicated, shall assess each such domestic insurance
2516-company or other domestic entity an amount equal to its proposed
2517-assessment as so adjusted. Each domestic insurance company or other
2518-domestic entity shall pay to the Insurance Commissioner (1) on or before
2519-June thirtieth, annually, an estimated payment against its assessment for
2520-the following year equal to twenty-five per cent of its assessment for the
2521-fiscal year ending such June thirtieth, (2) on or before September
2522-thirtieth, annually, twenty-five per cent of its assessment adjusted to
2523-reflect any credit or amount due from the preceding fiscal year as
2524-determined by the commissioner under subsection (f) of this section,
2525-and (3) on or before the following December thirty-first and March
2526-thirty-first, annually, each domestic insurance company or other
2527-domestic entity shall pay to the Insurance Commissioner the remaining
2528-fifty per cent of its proposed assessment to the department in two equal
2529-installments.
2530-(f) If the actual expenditures for the fall prevention program
2531-established in section 17a-859 are less than the amount allocated, the
2532-Commissioner of Aging and Disability Services shall notify the
2533-Insurance Commissioner. Immediately following the close of the fiscal Senate Bill No. 501
2534-
2535-June Sp. Sess., 2024, Public Act No. 24-1 77 of 140
2536-
2537-year, the Insurance Commissioner shall recalculate the proposed
2538-assessment for each domestic insurance company or other domestic
2539-entity in accordance with subsection (c) of this section using the actual
2540-expenditures made during the fiscal year by the Insurance Department,
2541-the Office of the Healthcare Advocate and the Office of Health Strategy
2542-from the Insurance Fund, the actual expenditures made on behalf of the
2543-department and [the] said offices from the Capital Equipment Purchase
2544-Fund pursuant to section 4a-9, not including such expenditures made
2545-on behalf of the Health Systems Planning Unit of the Office of Health
2546-Strategy, and the actual expenditures for the fall prevention program.
2547-On or before July thirty-first, annually, the Insurance Commissioner
2548-shall render to each such domestic insurance company and other
2549-domestic entity a statement showing the difference between their
2550-respective recalculated assessments and the amount they have
2551-previously paid. On or before August thirty-first, the Insurance
2552-Commissioner, after receiving any objections to such statements, shall
2553-make such adjustments [which] that in [their] the commissioner's
2554-opinion may be indicated, and shall render an adjusted assessment, if
2555-any, to the affected companies. Any such domestic insurance company
2556-or other domestic entity may pay to the Insurance Commissioner the
2557-entire assessment required under this subsection in one payment when
2558-the first installment of such assessment is due.
2559-(g) If any assessment is not paid when due, a penalty of twenty-five
2560-dollars shall be added thereto, and interest at the rate of six per cent per
2561-annum shall be paid thereafter on such assessment and penalty.
2562-(h) The Insurance Commissioner shall deposit all payments made
2563-under this section with the State Treasurer. On and after June 6, 1991,
2564-the moneys so deposited shall be credited to the Insurance Fund
2565-established under section 38a-52a and shall be accounted for as expenses
2566-recovered from insurance companies.
2567-Sec. 32. Section 10-287 of the general statutes is repealed and the Senate Bill No. 501
2568-
2569-June Sp. Sess., 2024, Public Act No. 24-1 78 of 140
2570-
2571-following is substituted in lieu thereof (Effective July 1, 2024):
2572-(a) A grant for a school building project under this chapter [to meet
2573-project costs not eligible for state financial assistance under section 10-
2574-287a] shall be paid in installments, the number and time of payment of
2575-which shall correspond to the number and time of principal installment
2576-payments on municipal bonds, including principal payments to retire
2577-temporary notes renewed for the third and subsequent years pursuant
2578-to section 7-378a or 7-378e, issued for the purpose of financing such costs
2579-and shall be equal to the state's share of project costs per principal
2580-installment on municipal bonds or notes, except in cases where the
2581-project has been fully paid for, in which case the number of installments
2582-shall be five or, in the case of a regional agricultural science and
2583-technology education center or a cooperative regional special
2584-educational facility, shall be one; provided final payment shall not be
2585-made prior to an audit conducted by the State Board of Education for
2586-each project for which a final calculation was not made prior to July 31,
2587-1983. Grants under twenty-five thousand dollars shall be paid in one
2588-lump sum. The Commissioner of Administrative Services shall certify
2589-to the State Comptroller, upon completion of the issuance of bonds or
2590-such renewal of temporary notes to finance each school building project,
2591-the dates and amounts of grant payments to be made pursuant to this
2592-chapter and the State Comptroller shall draw an order on the State
2593-Treasurer upon such certification to pay the amounts so certified when
2594-due. All site acquisition and project cost grant payments shall be made
2595-at least ten days prior to the principal payment on bonds or temporary
2596-notes related thereto or short-term financing issued to finance such site
2597-acquisition or project. Annual grant installments paid pursuant to this
2598-section on principal installment payments to retire temporary notes
2599-renewed pursuant to section 7-378a or 7-378e shall be based each year
2600-on the amount required to be retired pursuant to said sections, as
2601-adjusted for any ineligible project costs, and shall be paid only if at the
2602-time such temporary notes are renewed the rate of interest applicable to Senate Bill No. 501
2603-
2604-June Sp. Sess., 2024, Public Act No. 24-1 79 of 140
2605-
2606-such notes is less than the rate of interest that would be applicable with
2607-respect to twenty-year bonds if issued at the time of such renewal. The
2608-determination related to such rates of interest pursuant to this
2609-subsection may be reviewed and shall be subject to approval by the
2610-Commissioner of Administrative Services prior to renewal of such
2611-notes. In the event that a school building project is not completed at the
2612-time bonds or temporary notes related thereto are issued to finance the
2613-project, the certification of the grant payments made pursuant to this
2614-section by the Commissioner of Administrative Services may be based
2615-on estimates, provided upon completion of such project and notification
2616-of final acceptance to the state, the Commissioner of Administrative
2617-Services shall adjust and recertify the dates and amounts of subsequent
2618-grant payments based on the state's share of final eligible costs.
2619-(b) (1) All orders and contracts for school building construction
2620-receiving state assistance under this chapter, except as provided in
2621-subdivisions (2) to (4), inclusive, of this subsection, shall be awarded to
2622-the lowest responsible qualified bidder only after a public invitation to
2623-bid, except for (A) school building projects for which the town or
2624-regional school district is using a state contract pursuant to subsection
2625-(d) of section 10-292, and (B) change orders, those contracts or orders
2626-costing less than ten thousand dollars and those of an emergency nature,
2627-as determined by the Commissioner of Administrative Services, in
2628-which cases the contractor or vendor may be selected by negotiation,
2629-provided no local fiscal regulations, ordinances or charter provisions
2630-conflict. Any of the qualified bidders under this subdivision may be a
2631-cooperative purchasing contract offered through a regional educational
2632-service center or a council of government.
2633-(2) All orders and contracts for architectural services shall be
2634-awarded from a pool of [not more than the four] at least three of the
2635-most responsible qualified proposers after a public selection process.
2636-Such process shall, at a minimum, involve requests for qualifications, Senate Bill No. 501
2637-
2638-June Sp. Sess., 2024, Public Act No. 24-1 80 of 140
2639-
2640-followed by requests for proposals, including fees, from the proposers
2641-meeting the qualifications criteria of the request for qualifications
2642-process. Following the qualification process, the awarding authority
2643-shall evaluate the proposals to determine [the four] at least three of the
2644-most responsible qualified proposers using those criteria previously
2645-listed in the requests for qualifications and requests for proposals for
2646-selecting architectural services specific to the project or school district.
2647-Such evaluation criteria shall include due consideration of the
2648-proposer's pricing for the project, experience with work of similar size
2649-and scope as required for the order or contract, organizational and team
2650-structure, including any subcontractors to be utilized by the proposer,
2651-for the order or contract, past performance data, including, but not
2652-limited to, adherence to project schedules and project budgets and the
2653-number of change orders for projects, the approach to the work required
2654-for the order or contract and documented contract over sight
2655-capabilities, and may include criteria specific to the project. Final
2656-selection by the awarding authority is limited to the pool of [the four] at
2657-least three of the most responsible qualified proposers and shall include
2658-consideration of all criteria included within the request for proposals.
2659-As used in this subdivision, "most responsible qualified proposer"
2660-means the proposer who is qualified by the awarding authority when
2661-considering price and the factors necessary for faithful performance of
2662-the work based on the criteria and scope of work included in the request
2663-for proposals.
2664-(3) (A) All orders and contracts for construction management services
2665-shall be awarded from a pool of [not more than the four] at least three
2666-of the most responsible qualified proposers after a public selection
2667-process. Such process shall, at a minimum, involve requests for
2668-qualifications, followed by requests for proposals, including fees, from
2669-the proposers meeting the qualifications criteria of the request for
2670-qualifications process. Following the qualification process, the
2671-awarding authority shall evaluate the proposals to determine [the four] Senate Bill No. 501
2672-
2673-June Sp. Sess., 2024, Public Act No. 24-1 81 of 140
2674-
2675-at least three of the most responsible qualified proposers using those
2676-criteria previously listed in the requests for qualifications and requests
2677-for proposals for selecting construction management services specific to
2678-the project or school district. Such evaluation criteria shall include due
2679-consideration of the proposer's pricing for the project, experience with
2680-work of similar size and scope as required for the order or contract,
2681-organizational and team structure for the order or contract, past
2682-performance data, including, but not limited to, adherence to project
2683-schedules and project budgets and the number of change orders for
2684-projects, the approach to the work required for the order or contract,
2685-and documented contract oversight capabilities, and may include
2686-criteria specific to the project. Final selection by the awarding authority
2687-is limited to the pool of [the four] at least three of the most responsible
2688-qualified proposers and shall include consideration of all criteria
2689-included within the request for proposals. As used in this subdivision,
2690-"most responsible qualified proposer" means the proposer who is
2691-qualified by the awarding authority when considering price and the
2692-factors necessary for faithful performance of the work based on the
2693-criteria and scope of work included in the request for proposals.
2694-(B) The construction manager's contract shall include a guaranteed
2695-maximum price for the cost of construction. Such guaranteed maximum
2696-price shall be determined not later than ninety days after the selection
2697-of the trade subcontractor bids. Each construction manager shall invite
2698-bids and give notice of opportunities to bid on project elements on the
2699-State Contracting Portal. Each bid shall be kept sealed until opened
2700-publicly at the time and place set forth in the notice soliciting such bid.
2701-The construction manager shall, after consultation and approval by the
2702-town or regional school district, award any related contracts for project
2703-elements to the responsible qualified contractor submitting the lowest
2704-bid in compliance with the bid requirements, provided that (i) the
2705-construction manager shall not be eligible to submit a bid for any such
2706-project element, and (ii) construction shall not begin prior to the Senate Bill No. 501
2707-
2708-June Sp. Sess., 2024, Public Act No. 24-1 82 of 140
2709-
2710-determination of the guaranteed maximum price. [, except work relating
2711-to site preparation and demolition may commence prior to such
2712-determination.] On and after July 1, 2024, the construction manager's
2713-contract shall include a requirement that the construction manager
2714-retain all documents and receipts relating to the school building project
2715-for a period of two years following the date of completion of an audit
2716-conducted by the Department of Administrative Services pursuant to
2717-this section, for such project.
2718-(C) The construction manager shall submit quarterly reports
2719-regarding the ineligible project costs for the school building project to
2720-date to the town or regional board of education. Upon submission of the
2721-notice of project completion pursuant to subsection (d) of this section,
2722-and prior to the audit conducted by the commissioner, the construction
2723-manager shall submit a final report on the total ineligible costs for such
2724-project to the town or regional school district.
2725-(D) The construction manager shall meet quarterly with the town or
2726-regional board of education to review any change orders for eligibility
2727-as the school building project progresses.
2728-(4) All orders and contracts for any other consultant services,
2729-including, but not limited to, consultant services rendered by an owner's
2730-representatives, construction administrators, program managers,
2731-environmental professionals, planners and financial specialists, shall
2732-comply with the public selection process described in subdivision (2) of
2733-this subsection. No costs associated with an order or contract for such
2734-consultant services shall be eligible for state financial assistance under
2735-this chapter unless such order or contract receives prior approval from
2736-the Commissioner of Administrative Services in writing or through a
2737-written electronic communication.
2738-(c) If the Commissioner of Administrative Services determines that a
2739-building project has not met the approved conditions of the original Senate Bill No. 501
2740-
2741-June Sp. Sess., 2024, Public Act No. 24-1 83 of 140
2742-
2743-application, the Department of Administrative Services may withhold
2744-subsequent state grant payments for said project until appropriate
2745-action, as determined by the commissioner, is taken to cause the
2746-building project to be in compliance with the approved conditions or
2747-may require repayment of all state grant payments for said project when
2748-such appropriate action is not undertaken within a reasonable time.
2749-(d) (1) Each town or regional school district shall submit a final grant
2750-application to the Department of Administrative Services [within] not
2751-later than one year from the date of completion and acceptance of the
2752-school building project by the town or regional school district. If a town
2753-or regional school district fails to submit a final grant application [within
2754-said period of time] on or before such one-year date, the commissioner
2755-may withhold ten per cent of the state reimbursement for such project.
2756-(2) (A) On and after July 1, [2022] 2024, each town or regional school
2757-district shall submit a notice of project completion [within three years]
2758-not later than one year from the date of the issuance of a certificate of
2759-occupancy for the school building project by the town or regional school
2760-district. If a town or regional school district fails to submit such notice
2761-of project completion [within said period of time] on or before such one-
2762-year date, the commissioner shall deem such project completed and
2763-conduct an audit of such project in accordance with the provisions of
2764-this chapter.
2765-(B) For any school building project authorized by the General
2766-Assembly prior to July 1, 2022, the commissioner shall deem as complete
2767-any such project in which a certificate of occupancy has been granted,
2768-but for which a notice of project completion has not been submitted by
2769-the town or regional school district on or before July 1, 2025.
2770-Sec. 33. Section 163 of public act 24-151 is repealed. (Effective from
2771-passage) Senate Bill No. 501
2772-
2773-June Sp. Sess., 2024, Public Act No. 24-1 84 of 140
2774-
2775-Sec. 34. Section 1 of special act 77-98, as amended by section 5 of
2776-special act 99-12, section 2 of public act 02-85, section 1 of special act 13-
2777-20, section 1 of special act 17-5 and section 1 of special act 24-7, is
2778-amended to read as follows (Effective from passage):
2779-It is found and declared as a matter of legislative determination that
2780-the creation of the South Central Connecticut Regional Water Authority
2781-for the primary purpose of providing and assuring the provision of an
2782-adequate supply of pure water and the safe disposal of wastewater at
2783-reasonable cost within the South Central Connecticut Regional Water
2784-District and such other areas as may be served pursuant to cooperative
2785-agreements and acquisitions authorized by section 11 of special act 77-
2786-98, as amended by section 5 of special act 78-24, section 3 of special act
2787-84-46, section 7 of public act 02-85 and section 3 of special act 17-5, as
2788-amended by this act, and, to the degree consistent with the foregoing, of
2789-advancing water conservation and the conservation and compatible
2790-recreational use of land held by the authority, conducting or investing
2791-in noncore businesses, provided, at the time of any investment in such
2792-businesses, the authority's investment, less returns of or on such
2793-investments in such businesses made on and after June 30, 2013, shall
2794-not exceed the greater of five per cent of the authority's net utility plant
2795-devoted to its water and wastewater utility businesses or such higher
2796-amount approved by a majority of the total weighted votes of the
2797-membership of the representative policy board, excluding vacancies,
2798-except that the acquisition of the Aquarion Water Company or one or
2799-more of its subsidiaries shall have no such limitations, and the carrying
2800-out of its powers, purposes, and duties under sections 1 to 33, inclusive,
2801-of special act 77-98, as amended by special act 78-24, special act 84-46,
2802-sections 5 to 7, inclusive, of special act 99-12, sections 2 to 21, inclusive,
2803-of public act 02-85, special act 13-20, special act 17-5, special act 24-7 and
2804-this act, and for the benefit of the people residing in the South Central
2805-Connecticut Regional Water District and the state of Connecticut, and
2806-for the improvement of their health, safety and welfare, that said Senate Bill No. 501
2807-
2808-June Sp. Sess., 2024, Public Act No. 24-1 85 of 140
2809-
2810-purposes are public purposes, and that the authority will be performing
2811-an essential governmental function in the exercise of its powers under
2812-sections 1 to 33, inclusive, of special act 77-98, as amended by special act
2813-78-24, special act 84-46, sections 5 to 7, inclusive, of special act 99-12,
2814-section 2 of public act 02-85, special act 13-20, special act 17-5, special act
2815-24-7 and this act. The authority shall have the power to conduct or invest
2816-in noncore businesses authorized pursuant to this section, either directly
2817-or through an affiliated business entity.
2818-Sec. 35. Section 2 of special act 77-98, as amended by section 1 of
2819-special act 78-24, section 3 of public act 02-85, section 2 of special act 13-
2820-20, section 2 of special act 17-5 and section 2 of special act 24-7, is
2821-amended to read as follows (Effective from passage):
2822-As used in sections 1 to 33, inclusive, of special act 77-98, as amended
2823-by special act 78-24, public act 02-85, special act 13-20, special act 17-5,
2824-special act 24-7 and this act, unless a different meaning appears in the
2825-context: "Authority" means the South Central Connecticut Regional
2826-Water Authority created by section 5 of special act 77-98, as amended by
2827-section 4 of special act 78-24, public act 02-85 and special act 13-20;
2828-"district" means the South Central Connecticut Regional Water District
2829-created by section 3 of special act 77-98, as amended by section 2 of
2830-special act 78-24; "representative policy board" means the representative
2831-policy board of the South Central Connecticut Regional Water District
2832-created by section 4 of special act 77-98, as amended by section 3 of
2833-special act 78-24; "chief executive officer" means that full time employee
2834-of the authority responsible for the execution of the policies of the
2835-authority and for the direction of the other employees of the authority;
2836-"treasurer" means the treasurer of the authority; "customer" means any
2837-person, firm, corporation, company, association or governmental unit
2838-furnished water or wastewater service by the authority or any owner of
2839-property who guarantees payment for water or wastewater service to
2840-such property; "properties" means the water supply and distribution Senate Bill No. 501
2841-
2842-June Sp. Sess., 2024, Public Act No. 24-1 86 of 140
2843-
2844-system or systems, wastewater collection and treatment systems and
2845-other real or personal property of the authority; "bonds" means bonds,
2846-notes and other obligations issued by the authority; "revenues" means
2847-all rents, charges and other income derived from the operation of the
2848-properties of the authority; "wastewater" means any substance, liquid
2849-or solid, which may contaminate or pollute or affect the cleanliness or
2850-purity of any water; "water supply system" means plants, structures and
2851-other real and personal property acquired, constructed or operated for
2852-the purpose of supplying water, including basins, dams, canals,
2853-aqueducts, standpipes, pumping stations, water distribution systems,
2854-including land, reservoirs, conduits, pipelines, mains, compensating
2855-reservoirs, waterworks or sources of water supply, wells, purification or
2856-filtration plants or other plants and works, connections, rights of
2857-flowage or diversion and other plants, structures, conveyances, real or
2858-personal property or rights therein and appurtenances necessary or
2859-useful and convenient for the accumulation, supply or distribution of
2860-water or for the conduct of water or environment related activities;
2861-"wastewater system" means plants, structures and other real and
2862-personal property acquired, constructed or operated for the purpose of
2863-collecting, treating and discharging or reusing wastewater, whether or
2864-not interconnected, including wastewater treatment plants, pipes and
2865-conduits for collection of wastewater, pumping stations and other
2866-plants, works, structures, conveyances, real or personal property or
2867-rights therein and appurtenances necessary or useful and convenient for
2868-the collection, transmission, treatment and disposition of wastewater;
2869-"subsidiary corporation" means a corporation organized under the
2870-general statutes or by special act which owns or operates all or part of a
2871-water supply system or a wastewater system within the district and all
2872-of the voting stock of which is owned by the authority; [,] "noncore
2873-business" means an activity, including an activity conducted outside the
2874-state of Connecticut, that is the acquisition of the Aquarion Water
2875-Company or one or more of its subsidiaries or an activity that is related
2876-to water, environment, agriculture, sustainable manufacturing support, Senate Bill No. 501
2877-
2878-June Sp. Sess., 2024, Public Act No. 24-1 87 of 140
2879-
2880-or an energy project consisting of either a class I renewable energy
2881-source, as defined in subdivision (20) of subsection (a) of section 16-1 of
2882-the general statutes, or a class III source, as defined in subdivision (38)
2883-of said section, but excluding wind sources located within the district
2884-and any activity located on property that is class I or class II land owned
2885-by the authority; and "affiliated business entity" means a corporation, a
2886-limited liability company or a limited partnership controlled directly or
2887-indirectly by the authority that conducts or invests in a noncore
2888-business. A reference in sections 1 to 33, inclusive, of special act 77-98,
2889-as amended by special act 78-24, special act 84-46, public act 02-85 and
2890-special act 13-20, to any general statute, public act or special act shall
2891-include any amendment or successor thereto.
2892-Sec. 36. Section 4 of special act 77-98, as amended by section 3 of
2893-special act 78-24, section 2 of special act 84-46, section 5 of public act 02-
2894-85, section 2 of special act 03-11, section 10 of special act 13-20 and
2895-section 3 of special act 24-7, is amended by adding subsection (f) as
2896-follows (Effective from passage):
2897-(f) The members of the representative policy board shall have the
2898-authority to act on behalf of the Aquarion representative policy board,
2899-as defined in section 35 of section 41 of this act, until such time as the
2900-members of the Aquarion representative policy board are appointed.
2901-Sec. 37. Section 5 of special act 77-98, as amended by section 4 of
2902-special act 78-24 and section 4 of special act 24-7, is amended to read as
2903-follows (Effective from passage):
2904-(a) A public corporation, to be known as the "South Central
2905-Connecticut Regional Water Authority," constituting a public
2906-instrumentality and political subdivision, is created for the purposes,
2907-charged with the duties and granted the powers provided in sections 1
2908-to 33, inclusive, of special act 77-98, as amended by special act 78-24 and
2909-this act. On and before December 31, 2024, the authority shall consist of Senate Bill No. 501
2910-
2911-June Sp. Sess., 2024, Public Act No. 24-1 88 of 140
2912-
2913-five members who shall be residents of the district and not be members
2914-of the representative policy board. On and after January 1, 2025, except
2915-as provided in subsection (c) of this section, the authority shall consist
2916-of seven members who shall reside in Connecticut and not be members
2917-of the representative policy board, and not fewer than five such
2918-members shall be residents of the district. All members shall be
2919-appointed without regard to political affiliation by a majority of the total
2920-votes of those members of the representative policy board present at a
2921-meeting at which at least two-thirds of the weighted vote, excluding
2922-vacancies, is present, for terms of five years, not to exceed four
2923-consecutive full terms, and until their successors are appointed and
2924-have qualified, except that of the members first appointed, one shall be
2925-appointed for a term ending January 1, 1983, one for a term ending
2926-January 1, 1982, one for a term ending January 1, 1981, one for a term
2927-ending January 1, 1980, and one for a term ending January l, 1979. The
2928-sixth member first appointed shall be appointed for a three-year term
2929-ending January 1, 2028, and the seventh member first appointed shall be
2930-appointed for a five-year term ending January 1, 2030. Any vacancy
2931-occurring on the authority shall be filled in the same manner for the
2932-unexpired portion of the term. Any member of the authority may be
2933-removed from office by the representative policy board for cause.
2934-Members of the authority shall receive such compensation to be
2935-adjusted every three years by the Consumer Price Index factor, as
2936-described in section 4 of special act 77-98, as amended by special act 78-
2937-24, special act 84-46, public act 02-85, special act 03-11, special act 13-20
2938-and this act, if approved by the majority of weighted votes of the
2939-membership of the representative policy board, excluding vacancies,
2940-and shall be reimbursed for their necessary expenses incurred in
2941-performance of their duties.
2942-(b) The members of the South Central Connecticut Regional Water
2943-Authority board shall have the authority to act on behalf of the
2944-Aquarion Water Authority, as described in section 35 of section 41 of Senate Bill No. 501
2945-
2946-June Sp. Sess., 2024, Public Act No. 24-1 89 of 140
2947-
2948-this act, until such time as the members of the Aquarion Water
2949-Authority board are appointed.
2950-(c) Notwithstanding the provisions of subsection (a) of this section,
2951-upon the Public Utilities Regulatory Authority's approval of the South
2952-Central Connecticut Regional Water Authority or the Aquarion Water
2953-Authority to own and operate the Aquarion Water Company or one or
2954-more of its subsidiaries, the authority board shall consist of eleven
2955-members who shall reside in Connecticut and not be members of the
2956-representative policy board, six of whom shall be residents of the South
2957-Central Connecticut Regional Water District appointed by the
2958-representative policy board, and five of whom shall be appointed by the
2959-representative policy board of the Aquarion Regional Water District, as
2960-described in section 35 of section 41 of this act, in accordance with
2961-section 38 of section 41 of this act. The six members appointed by the
2962-representative policy board of the authority shall have the authority to
2963-act on behalf of the Aquarion Water Authority until such time as the
2964-members of the Aquarion Water Authority are appointed. All such
2965-authority members shall be appointed without regard to political
2966-affiliation by a majority of the total votes of those members of the
2967-representative policy board present at a meeting at which at least two-
2968-thirds of the weighted vote, excluding vacancies, is present, for terms of
2969-five years, not to exceed four consecutive full terms, and until their
2970-successors are appointed and have qualified. The sixth member first
2971-appointed shall be appointed for a three-year term ending January 1,
2972-2028, and the seventh member first appointed shall be appointed for a
2973-five-year term ending January 1, 2030. Any vacancy occurring on the
2974-authority shall be filled in the same manner for the unexpired portion of
2975-the term. Any member of the authority may be removed from office by
2976-the representative policy board for cause. Members of the authority
2977-shall receive such compensation to be adjusted every three years by the
2978-Consumer Price Index factor, as described in section 4 of special act 77-
2979-98, as amended by special act 78-24, special act 84-46, public act 02-85, Senate Bill No. 501
2980-
2981-June Sp. Sess., 2024, Public Act No. 24-1 90 of 140
2982-
2983-special act 03-11, special act 13-20, special act 24-7 and this act, if
2984-approved by the majority of weighted votes of the membership of the
2985-representative policy board, excluding vacancies, and shall be
2986-reimbursed for their necessary expenses incurred in performance of
2987-their duties.
2988-Sec. 38. Section 9 of special act 77-98, as amended by section 5 of
2989-special act 24-7, is amended to read as follows (Effective from passage):
2990-The authority shall meet at least quarterly. Except as the bylaws of
2991-the authority may provide in emergency situations, the powers of the
2992-authority shall be exercised by the members at a meeting duly called
2993-and held. On and before December 31, 2024, three members shall
2994-constitute a quorum, and on and after January 1, 2025, four members
2995-shall constitute a quorum, provided that after the appointment of all
2996-authority members appointed by the representative policy board of the
2997-Aquarion Regional Water District, a quorum shall be six members, and
2998-no action shall be taken except pursuant to the affirmative vote of a
2999-quorum. The authority may delegate to one or more of its members,
3000-officers, agents or employees such powers and duties as it may deem
3001-proper.
3002-Sec. 39. Section 11 of special act 77-98, as amended by section 5 of
3003-special act 78-24, section 3 of special act 84-46, section 7 of special act 02-
3004-85, and section 3 of special act 17-5, is amended to read as follows
3005-(Effective from passage):
3006-Subject to the provisions of sections 1 to 33, inclusive, of special act
3007-77-98, as amended by special act 78-24, special act 84-46 sections 5 to 7,
3008-inclusive, of special act 99-12, public act 02-85, special act 13-20, special
3009-act 17-5, special act 24-7 and this act, the authority shall have the power:
3010-(a) To sue and be sued; (b) to have a seal and alter the same at its
3011-pleasure; (c) to acquire in the name of the authority by purchase, lease
3012-or otherwise and to hold and dispose of personal property or any Senate Bill No. 501
3013-
3014-June Sp. Sess., 2024, Public Act No. 24-1 91 of 140
3015-
3016-interest therein, including shares of stock of a subsidiary corporation;
3017-(d) to acquire in the name of the authority by purchase, lease or
3018-otherwise and to hold and dispose of any real property or interest
3019-therein, including water rights and rights of way and water discharge
3020-rights, which the authority determines to be necessary or convenient,
3021-and to acquire any existing wastewater system or water supply system
3022-or parts thereof which are wholly or partially within the district as
3023-described under section 3 of special act 77-98, as amended by section 2
3024-of special act 78-24, section 1 of special act 84-46 and public act 02-85. As
3025-a means of so acquiring, the authority or a subsidiary corporation may
3026-purchase all of the stock or all of any part of the assets and franchises of
3027-any existing privately owned water or wastewater company,
3028-whereupon the authority or such subsidiary corporation shall succeed
3029-to all rights, powers and franchises thereof. Sections 16-43, 16-50c and
3030-16-50d of the general statutes shall not apply to any action by the
3031-authority or a subsidiary corporation or any action by any privately
3032-owned water company or sewage company, as defined in section 16-1
3033-of the general statutes, taken to effectuate the acquisition of the stock or
3034-all or any part of the assets and franchises of such water company or
3035-sewage company by the authority, provided section 16-43 of the general
3036-statutes shall apply to any action taken to effectuate the acquisition of
3037-the stock or all or any part of the assets and franchises of the Ansonia
3038-Derby Water Company by the authority. Notwithstanding any
3039-provision of section 25-32 of the general statutes, land may be
3040-transferred to the authority or a subsidiary corporation of the authority
3041-as part of such an acquisition. The commissioner of health services shall
3042-not grant a permit for a change in the use of any class I or class II land
3043-owned by the Ansonia Derby Water Company on the effective date of
3044-this section and not transferred to the authority or a subsidiary
3045-corporation or a permit for the sale, lease or assignment of any such class
3046-II land, unless (1) all provisions of section 25-32 of the general statutes
3047-are complied with, and (2) the commissioner of health services
3048-determines, after holding a hearing, notice of which shall be published Senate Bill No. 501
3049-
3050-June Sp. Sess., 2024, Public Act No. 24-1 92 of 140
3051-
3052-not later than thirty days before the hearing in one or more newspapers
3053-having a substantial circulation in the municipalities in which the land
3054-is located, that such change in the use or sale, lease, or assignment of the
3055-land will not have a significant adverse impact upon present and future
3056-water supply needs of the authority or a subsidiary corporation of the
3057-authority; [:] (e) to construct and develop any water supply system or
3058-any wastewater system; (f) to own, operate, maintain, repair, improve,
3059-construct, reconstruct, replace, enlarge and extend any of its properties;
3060-(g) any provision in any general statute, special act or charter to the
3061-contrary notwithstanding, but subject to the provisions of section 12 of
3062-special act 77-98, as amended by section 8 of public act 02-85, and section
3063-28 of special act 77-98, as amended by section 9 of special act 78-24, to
3064-sell water, however acquired, to customers within the district or to any
3065-municipality or water company; (h) any provisions in any general
3066-statute, special act or charter to the contrary notwithstanding, to
3067-purchase water approved by the commissioner of health from any
3068-person, private corporation or municipality when necessary or
3069-convenient for the operation of any water supply system operated by
3070-the authority; (i) to adopt and amend bylaws, rules and regulations for
3071-the management and regulation of its affairs and for the use and
3072-protection of the water and properties of the authority or a subsidiary
3073-corporation and, subject to the provisions of any resolution authorizing
3074-the issuance of bonds, rules for the sale of water, the collection and
3075-processing of wastewater and the collection of rents and charges for
3076-both water supply and wastewater functions. A copy of such bylaws,
3077-rules and regulations and all amendments thereto, certified by the
3078-secretary of the authority, shall be filed in the office of the secretary of
3079-the state and with the clerk of each town and city within the district.
3080-Any superior court located within the district shall have jurisdiction
3081-over any violation of such bylaws, rules or regulations and the authority
3082-may prosecute actions before the superior court to enforce such bylaws,
3083-rules and regulations; (j) to make contracts and to execute all necessary
3084-or convenient instruments, including evidences of indebtedness, Senate Bill No. 501
3085-
3086-June Sp. Sess., 2024, Public Act No. 24-1 93 of 140
3087-
3088-negotiable or non-negotiable; (k) to borrow money, to issue negotiable
3089-bonds or notes, to fund and refund the same and to provide for the
3090-rights of the holders of the authority's obligations; (l) to open the
3091-grounds in any public street or way or public grounds for the purpose
3092-of laying, installing, maintaining or replacing pipes and conduits,
3093-provided upon the completion of such work the grounds shall be
3094-restored to the condition they were in previously; (m) to enter into
3095-cooperative agreements with other water authorities, municipalities,
3096-water districts, water companies or water pollution control authorities
3097-within or without the district for interconnection of facilities, for
3098-exchange or interchange of services and commodities or for any other
3099-lawful purpose necessary or desirable to effect the purposes of sections
3100-1 to 33, inclusive, of special act 77-98, as amended by special act 78-24,
3101-special act 84-46 and sections 5 to 7, inclusive, of special act 99-12, special
3102-act 13-20, special act 17-5, special act 24-7 and this act, such agreements
3103-to be binding for a period specified therein; (n) to acquire, hold, develop
3104-and maintain land and other real estate and waters for conservation and
3105-for compatible active and passive recreational purposes and to levy
3106-charges for such uses, provided the state department of health finds that
3107-such uses will not harm the quality of water provided by the authority;
3108-(o) to apply for and accept grants, loans or contributions from the United
3109-States, the state of Connecticut or any agency, instrumentality or
3110-subdivision of either of them or from any person, and to expend the
3111-proceeds for any of its purposes; (p) to create programs and policies for
3112-the purpose of conserving water; (q) to do any and all things necessary
3113-or convenient to carry out the powers expressly given in sections 1 to 33,
3114-inclusive, of special act 77-98, as amended by special act 78-24, special
3115-act 84-76, sections 5 to 7, inclusive, of special act 99-12, public act 02-85,
3116-special act 13-20, special act 17-5, special act 24-7 and this act, including
3117-the powers granted by the general statutes to stock corporations, except
3118-the power to issue stock, and the powers granted by the general statutes
3119-to water pollution control authorities; and (r) to borrow money, to issue
3120-negotiable bonds or notes, to fund and refund the same and to provide Senate Bill No. 501
3121-
3122-June Sp. Sess., 2024, Public Act No. 24-1 94 of 140
3123-
3124-for the rights of the holders of the authority's obligations for the specific
3125-purpose of acquiring the Aquarion Water Company or one or more of
3126-its subsidiaries.
3127-Sec. 40. Subsection (a) of section 15 of special act 77-98, as amended
3128-by section 8 of special act 99-12 and section 11 of special act 02-85, is
3129-amended to read as follows (Effective from passage):
3130-(a) The representative policy board shall establish an office of
3131-consumer affairs to act as the advocate for consumer interests in all
3132-matters which may affect consumers, including without limitation
3133-matters of rates, water quality and supply and wastewater service
3134-quality. The costs of such office of consumer affairs, unless otherwise
3135-provided by the state, shall jointly be paid by the authority and the
3136-Aquarion Water Authority.
3137-Sec. 41. Special act 77-98, as amended by special act 78-24, special act
3138-84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-
3139-20, special act 17-5, special act 18-04 and special act 24-7, is amended by
3140-adding sections 34 to 65, inclusive, as follows (Effective from passage):
3141-Sec. 34. It is found and declared as a matter of legislative
3142-determination that the creation of the Aquarion Water Authority for the
3143-primary purpose of providing and assuring the provision of an
3144-adequate supply of pure water and the safe disposal of wastewater at
3145-reasonable cost within the Aquarion Regional Water District and such
3146-other areas as may be served pursuant to cooperative agreements and
3147-acquisitions and, to the degree consistent with the foregoing, of
3148-advancing water conservation and the conservation and compatible
3149-recreational use of land held by the authority, conducting or investing
3150-in noncore businesses, provided, at the time of any investment in such
3151-businesses, the authority's investment, less returns of or on such
3152-investments in such businesses, shall not exceed the greater of five per
3153-cent of the authority's net utility plant devoted to its water and Senate Bill No. 501
3154-
3155-June Sp. Sess., 2024, Public Act No. 24-1 95 of 140
3156-
3157-wastewater utility businesses or such higher amount approved by a
3158-majority of the total weighted votes of the membership of the Aquarion
3159-representative policy board, excluding vacancies, and the carrying out
3160-of its powers, purposes, and duties under sections 34 to 65, inclusive, of
3161-this act and for the benefit of the people residing in the Aquarion
3162-Regional Water District and the state of Connecticut, and for the
3163-improvement of their health, safety and welfare, that said purposes are
3164-public purposes, and that the authority will be performing an essential
3165-governmental function in the exercise of its powers under sections 34 to
3166-65, inclusive, of this act. The authority shall have the power to conduct
3167-or invest in noncore businesses authorized pursuant to this section,
3168-either directly or through an affiliated business entity.
3169-Sec. 35. As used in sections 34 to 65, inclusive, of this act unless a
3170-different meaning appears in the context: "Authority" means the
3171-Aquarion Water Authority; "district" means the Aquarion Regional
3172-Water District; "Aquarion representative policy board" means the
3173-representative policy board of the Aquarion Regional Water District;
3174-"chief executive officer" means that full time employee of the authority
3175-responsible for the execution of the policies of the authority and for the
3176-direction of the other employees of the authority; "treasurer" means the
3177-treasurer of the authority; "customer" means any person, firm,
3178-corporation, company, association or governmental unit furnished
3179-water or wastewater service by the authority or any owner of property
3180-who guarantees payment for water or wastewater service to such
3181-property; "properties" means the water supply and distribution system
3182-or systems, wastewater collection and treatment systems and other real
3183-or personal property of the authority; "bonds" means bonds, notes and
3184-other obligations issued by the authority; "revenues" means all rents,
3185-charges and other income derived from the operation of the properties
3186-of the authority; "wastewater" means any substance, liquid or solid,
3187-which may contaminate or pollute or affect the cleanliness or purity of
3188-any water; "water supply system" means plants, structures and other Senate Bill No. 501
3189-
3190-June Sp. Sess., 2024, Public Act No. 24-1 96 of 140
3191-
3192-real and personal property acquired, constructed or operated for the
3193-purpose of supplying water, including basins, dams, canals, aqueducts,
3194-standpipes, pumping stations, water distribution systems, including
3195-land, reservoirs, conduits, pipelines, mains, compensating reservoirs,
3196-waterworks or sources of water supply, wells, purification or filtration
3197-plants or other plants and works, connections, rights of flowage or
3198-diversion and other plants, structures, conveyances, real or personal
3199-property or rights therein and appurtenances necessary or useful and
3200-convenient for the accumulation, supply or distribution of water or for
3201-the conduct of water or environment related activities; "wastewater
3202-system" means plants, structures and other real and personal property
3203-acquired, constructed or operated for the purpose of collecting, treating
3204-and discharging or reusing wastewater, whether or not interconnected,
3205-including wastewater treatment plants, pipes and conduits for
3206-collection of wastewater, pumping stations and other plants, works,
3207-structures, conveyances, real or personal property or rights therein and
3208-appurtenances necessary or useful and convenient for the collection,
3209-transmission, treatment and disposition of wastewater; "subsidiary
3210-corporation" means a corporation organized under the general statutes
3211-or by special act which owns or operates all or part of a water supply or
3212-a wastewater system within the district and all of the voting stock of
3213-which is owned by the authority; "noncore business" means an activity,
3214-including an activity conducted outside the state of Connecticut, that is
3215-the acquisition of the Aquarion Water Company or one or more of its
3216-subsidiaries or an activity that is related to water, environment,
3217-agriculture, sustainable manufacturing support, or an energy project
3218-consisting of either a class I renewable energy source, as defined in
3219-subdivision (20) of subsection (a) of section 16-1 of the general statutes,
3220-or a class III source, as defined in subdivision (38) of said section, but
3221-excluding wind sources located within the district and any activity
3222-located on property that is class I or class II land owned by the authority;
3223-and "affiliated business entity" means a corporation, a limited liability
3224-company or a limited partnership controlled directly or indirectly by the Senate Bill No. 501
3225-
3226-June Sp. Sess., 2024, Public Act No. 24-1 97 of 140
3227-
3228-authority that conducts or invests in a noncore business. A reference in
3229-sections 34 to 65, inclusive, of this act to any general statute, public act
3230-or special act shall include any amendment or successor thereto.
3231-Sec. 36. There is created a district to be known as the "Aquarion
3232-Regional Water District" which embraces the area and territory of the
3233-towns and cities of Beacon Falls, Bethel, Bridgeport, Brookfield,
3234-Burlington, Canaan, Cornwall, Danbury, Darien, East Derby, East
3235-Granby, East Hampton, Easton, Fairfield, Farmington, Goshen, Granby,
3236-Greenwich, Groton, Harwinton, Kent, Lebanon, Litchfield, Mansfield,
3237-Marlborough, Middlebury, Monroe, New Canaan, New Fairfield, New
3238-Hartford, New Milford, Newtown, Norfolk, North Canaan, Norwalk,
3239-Norwich, Oxford, Plainville, Redding, Ridgefield, Salisbury, Seymour,
3240-Shelton, Sherman, Simsbury, Southbury, Southington, Stamford,
3241-Stonington, Stratford, Suffield, Torrington, Trumbull, Washington,
3242-Weston, Westport, Wilton, Wolcott, and Woodbury; provided, if the
3243-authority shall neither own land or properties nor sell water or provide
3244-wastewater services directly to customers in any city or town within the
3245-district, the area and territory of such city or town thereupon shall be
3246-excluded from the district.
3247-Sec. 37. (a) The Aquarion representative policy board shall consist of
3248-one elector from each city and town within the district who shall be
3249-appointed by the chief elected official of such city or town, with the
3250-approval of its legislative body, and one elector of the state who shall be
3251-appointed by the governor. The term of the initial members of the
3252-Aquarion representative policy board shall commence when each
3253-member is first appointed and each member shall serve for a term of
3254-three years, except that members first appointed from Beacon Falls,
3255-Bethel, Bridgeport, Brookfield, Burlington, Canaan, Cornwall, Danbury,
3256-Darien, East Derby, East Granby, East Hampton, Easton, Fairfield,
3257-Farmington, Goshen, Granby, Greenwich, Groton, and Harwinton shall
3258-serve until June 30, 2026, the members first appointed from Kent, Senate Bill No. 501
3259-
3260-June Sp. Sess., 2024, Public Act No. 24-1 98 of 140
3261-
3262-Lebanon, Litchfield, Mansfield, Marlborough, Middlebury, Monroe,
3263-New Canaan, New Fairfield, New Hartford, New Milford, Newtown,
3264-Norfolk, North Canaan, Norwalk, Norwich, Oxford, Plainville,
3265-Redding, and Ridgefield shall serve until June 30, 2027, and the
3266-members first appointed from Salisbury, Seymour, Shelton, Sherman,
3267-Simsbury, Southbury, Southington, Stamford, Stonington, Stratford,
3268-Suffield, Torrington, Trumbull, Washington, Weston, Westport, Wilton,
3269-Wolcott, and Woodbury shall serve until June 30, 2028, and the member
3270-first appointed by the governor shall serve for a term commencing upon
3271-appointment and ending on the third June thirtieth thereafter; provided
3272-members shall continue to serve until their successors are appointed
3273-and have qualified. In the event of the resignation, death or disability of
3274-a member from any city or town or the state, a successor may be
3275-appointed by the chief elected official of such city or town, or in the case
3276-of the member appointed by the governor, by the governor, for the
3277-unexpired portion of the term. Members shall receive two hundred fifty
3278-dollars, adjusted as provided in this subsection, for each day in which
3279-they are engaged in their duties and shall be reimbursed for their
3280-necessary expenses incurred in the performance of their duties. Such
3281-two-hundred-fifty dollar compensation amount shall be adjusted on
3282-January 1, 2027, and every third year thereafter to reflect changes in the
3283-Consumer Price Index for All Urban Consumers, Northeast Urban, All
3284-Items (1982-84=100) published by the United States Bureau of Labor
3285-Statistics or a comparable successor index. They shall elect a chairman
3286-and a vice-chairman, who shall be members of the Aquarion
3287-representative policy board, and a secretary. The chairman shall receive
3288-a per diem payment of one and one-half times the amount paid to
3289-members and provisional members. The Aquarion representative policy
3290-board shall meet at least quarterly with the authority and such members
3291-of the staff of the authority as the Aquarion representative policy board
3292-deems appropriate.
3293-(b) Notwithstanding the provisions of subsection (a) of this section, Senate Bill No. 501
3294-
3295-June Sp. Sess., 2024, Public Act No. 24-1 99 of 140
3296-
3297-no members shall be appointed to the board of the authority or the
3298-Aquarion representative policy board until the date of the Public
3299-Utilities Regulatory Authority's approval of the South Central
3300-Connecticut Regional Water Authority or the Aquarion Water
3301-Authority to own and operate the Aquarion Water Company or one or
3302-more of its subsidiaries. The South Central Connecticut Regional Water
3303-Authority shall send written notice to each entity with appointment
3304-authority pursuant to subsection (a) of this section upon such approval.
3305-(c) In voting upon all matters before the Aquarion representative
3306-policy board, the vote of each member from a city or town shall be
3307-accorded a weight, determined as follows: The sum of (1) the quotient
3308-obtained by dividing the number of customers in the city or town from
3309-which such member is appointed by the total number of customers in
3310-all cities and towns from which members have been appointed, taken
3311-twice, and (2) the quotient obtained by dividing the number of acres of
3312-land owned by the authority within the city or town from which such
3313-member is appointed by the total number of acres of land owned by the
3314-authority in all cities and towns from which members have been
3315-appointed, shall be divided by three, the quotient thereof multiplied by
3316-one hundred and the product thereof shall be rounded to the nearest
3317-whole number. The weighted vote of the member appointed by the
3318-governor shall be one. For the purposes of this section, "number of
3319-customers" means the number of premises or groups of premises treated
3320-as units for ordinary billing or other ordinary receipt of charges by the
3321-authority and shall be determined from the records of the authority on
3322-the last day of its preceding fiscal year and "number of acres of land"
3323-means the number of acres of land rounded to the nearest whole number
3324-as may appear on the records of the authority on the last day of its
3325-preceding fiscal year. Whenever a vote is taken on any matter by the
3326-Aquarion representative policy board, the vote shall be determined in
3327-accordance with this subsection. Members of the Aquarion
3328-representative policy board holding a majority of the votes so weighted Senate Bill No. 501
3329-
3330-June Sp. Sess., 2024, Public Act No. 24-1 100 of 140
3331-
3332-shall constitute a quorum.
3333-(d) The Aquarion representative policy board shall adopt and may
3334-amend such rules of procedure and bylaws for the conduct of its affairs
3335-as it deems appropriate. It shall establish (1) a standing committee on
3336-land use and management to consult with the authority on all matters
3337-of land use and managem ent, including acquisition and sale,
3338-recreational use, cutting of timber and other products, mining and
3339-quarrying; (2) a standing committee on finance to consult with the
3340-authority on matters relating to financial and budgetary matters and the
3341-establishment of rates; and (3) a standing committee on consumer affairs
3342-to consult with the authority and the officer of consumer affairs
3343-established pursuant to section 48 of this act on matters concerning the
3344-interests of people residing within the district. The Aquarion
3345-representative policy board may appoint such other committees as it
3346-considers convenient from time to time.
3347-Sec. 38. (a) A public corporation, to be known as the "Aquarion Water
3348-Authority", constituting a public instrumentality and political
3349-subdivision, is created for the purposes, charged with the duties and
3350-granted the powers provided in section 34 to 65, inclusive, of this act.
3351-On and after December 31, 2025, the authority shall consist of eleven
3352-members. Five of the members shall be residents of the Aquarion
3353-Regional Water District who are appointed by the Aquarion
3354-representative policy board and shall not be members of the Aquarion
3355-representative policy board, and six of the members shall be members
3356-of the South Central Connecticut Regional Water Authority who are
3357-appointed by the South Central Connecticut Regional Water Authority
3358-representative policy board. The eleven members of the board for the
3359-Aquarion Water Authority shall be and remain the same eleven
3360-members of the board of the South Central Connecticut Water
3361-Authority. All authority board members shall be appointed without
3362-regard to political affiliation by a majority of the total votes of those Senate Bill No. 501
3363-
3364-June Sp. Sess., 2024, Public Act No. 24-1 101 of 140
3365-
3366-members of the Aquarion representative policy board present at a
3367-meeting at which at least two-thirds of the weighted vote, excluding
3368-vacancies, is present, for terms of five years, not to exceed four
3369-consecutive full terms, and until their successors are appointed and
3370-have qualified, except that of the members first appointed, two shall be
3371-appointed for a term ending January 1, 2026, two for a term ending
3372-January 1, 2027, two for a term ending January 1, 2028, two for a term
3373-ending January 1, 2029, and three for a term ending January 1, 2030. Any
3374-vacancy occurring on the authority shall be filled in the same manner
3375-for the unexpired portion of the term. Any member of the authority may
3376-be removed from office by the Aquarion representative policy board for
3377-cause. Members of the authority shall receive such compensation, to be
3378-adjusted every three years by the Consumer Price Index factor, as
3379-described in section 37 of this act, if approved by the majority of
3380-weighted votes of the membership of the Aquarion representative
3381-policy board, excluding vacancies, and shall be reimbursed for their
3382-necessary expenses incurred in performance of their duties.
3383-(b) Notwithstanding the provisions of subsection (a) of this section,
3384-no members shall be appointed to the board of the authority or the
3385-Aquarion representative policy board until the date of the Public
3386-Utilities Regulatory Authority's approval of the South Central
3387-Connecticut Regional Water Authority or the Aquarion Water
3388-Authority to own and operate the Aquarion Water Company or one or
3389-more of its subsidiaries.
3390-Sec. 39. The duration of the Aquarion representative policy board and
3391-of the authority shall be perpetual unless terminated or altered by act of
3392-the General Assembly, provided the General Assembly shall not
3393-terminate the existence of the authority until all of its liabilities have
3394-been met and its bonds have been paid in full or such liabilities and
3395-bonds have otherwise been discharged.
3396-Sec. 40. The officers of the authority shall be a chairman and a vice- Senate Bill No. 501
3397-
3398-June Sp. Sess., 2024, Public Act No. 24-1 102 of 140
3399-
3400-chairman, who shall be members of the authority, and a treasurer and a
3401-secretary, who may be members of the authority. The first chairman and
3402-vice-chairman shall be the chairman and vice-chairman of the South
3403-Central Connecticut Regional Water Authority, who shall each serve for
3404-two-year terms, and each subsequent chairman and vice-chairman shall
3405-be elected by the authority for two-year terms. All other officers shall be
3406-elected by the authority for one-year terms. The treasurer shall execute
3407-a bond conditioned upon the faithful performance of the duties of his
3408-office, the amount and sufficiency of which shall be approved by the
3409-authority and the premium therefor shall be paid by the authority. The
3410-authority shall, from time to time, appoint an agent for the service of
3411-process, and shall notify the secretary of the state of the same and
3412-address of said agent.
3413-Sec. 41. The authority may employ such persons as it may determine
3414-to be necessary or convenient for the performance of its duties and may
3415-fix and determine their qualifications, duties and compensation,
3416-provided the chief executive officer shall be the chief executive officer of
3417-the South Central Connecticut Regional Water Authority. The authority
3418-shall establish a position with ongoing responsibilities for the use and
3419-management of its land resources and such other senior managerial
3420-positions as it deems appropriate, which shall be filled by appointment
3421-by the chief executive officer with the approval of the authority. The
3422-authority may also, from time to time, contract for professional services.
3423-Sec. 42. The authority shall meet at least quarterly. Except as the
3424-bylaws of the authority may provide in emergency situations, the
3425-powers of the authority shall be exercised by the members at a meeting
3426-duly called and held. On and after December 31, 2025, six members shall
3427-constitute a quorum, and no action shall be taken except pursuant to the
3428-affirmative vote of a quorum. The authority may delegate to one or more
3429-of its members, officers, agents or employees such powers and duties as
3430-it may deem proper. Senate Bill No. 501
3431-
3432-June Sp. Sess., 2024, Public Act No. 24-1 103 of 140
3433-
3434-Sec. 43. Except in the event of an emergency, whenever a public
3435-hearing is required under sections 34 to 65, inclusive, of this act, notice
3436-of such hearing shall be published by the Aquarion representative
3437-policy board at least twenty days before the date set therefor, in a
3438-newspaper or newspapers having a general circulation in each city and
3439-town comprising the district. In the event of an emergency, notice of
3440-such hearing shall be authorized by the chairman of the Aquarion
3441-representative policy board and published in such newspaper or
3442-newspapers at least seven days before the date set therefor. If there is no
3443-such newspaper, such notice shall be published in one or more
3444-electronic media, including, without limitation, the authority's Internet
3445-web site, as are likely to reach a broad segment of persons within the
3446-district. Such notice shall set forth the date, time and place of such
3447-hearing and shall include a description of the matters to be considered
3448-at such hearing. A copy of the notice shall be filed in the office of the
3449-clerk of each such city and town and shall be available for inspection by
3450-the public. At such hearings, all the users of the water supply system or
3451-the wastewater system, owners of property served or to be served and
3452-other interested persons shall have an opportunity to be heard
3453-concerning the matter under consideration. When appropriate, the
3454-chairman of the Aquarion representative policy board may convene
3455-more than one hearing on any matter and direct such hearings to be held
3456-in suitable locations within the district so as to assure broader
3457-participation by the general public in discussion of the matters under
3458-consideration, provided in the case of the sale or transfer of real
3459-property pursuant to section 51 of this act, a public hearing shall be held
3460-in the city or town in which such real property is situated. Any decision
3461-of the Aquarion representative policy board on matters considered at
3462-such public hearing shall be in writing and shall be published in a
3463-newspaper or newspapers having a general circulation in each city and
3464-town comprising the district within thirty days after such decision is
3465-made. For purposes of this section, "emergency" means a determination
3466-by the chief executive officer of the authority, the chairman of the Senate Bill No. 501
3467-
3468-June Sp. Sess., 2024, Public Act No. 24-1 104 of 140
3469-
3470-authority and the chairman of the Aquarion representative policy board,
3471-or their designees, that (1) delay in the award of a contract or the
3472-expenditure of capital funds may threaten the public's safety or place
3473-property at risk, (2) immediate action is necessary to respond to or
3474-recover from a natural disaster or invasion or other hostile action, or (3)
3475-immediate action is necessary to respond to an event threatening or
3476-compromising the integrity of the authority's information systems and
3477-associated infrastructure.
3478-Sec. 44. Subject to the provisions of sections 34 to 65, inclusive, of this
3479-act, the authority shall have the power: (a) To sue and be sued; (b) to
3480-have a seal and alter the same at its pleasure; (c) to acquire in the name
3481-of the authority by purchase, lease or otherwise and to hold and dispose
3482-of personal property or any interest therein, including shares of stock of
3483-a subsidiary corporation; (d) to acquire in the name of the authority by
3484-purchase, lease or otherwise and to hold and dispose of any real
3485-property or interest therein, including water rights and rights of way
3486-and water discharge rights, which the authority determines to be
3487-necessary or convenient, and to acquire any existing wastewater system
3488-or water supply system or parts thereof which are wholly or partially
3489-within the district as described under section 36 of this act. As a means
3490-of so acquiring, the authority or a subsidiary corporation may purchase
3491-all of the stock or all of any part of the assets and franchises of any
3492-existing privately owned water or wastewater company, whereupon the
3493-authority or such subsidiary corporation shall succeed to all rights,
3494-powers and franchises thereof. Sections 16-43, 16-50c and 16-50d of the
3495-general statutes shall not apply to any action by the authority or a
3496-subsidiary corporation or any action by any privately owned water
3497-company or sewage company, as defined in section 16-1 of the general
3498-statutes, taken to effectuate the acquisition of the stock or all or any part
3499-of the assets and franchises of such water company or sewage company
3500-by the authority. Notwithstanding any provision of section 25-32 of the
3501-general statutes, land may be transferred to the authority or a subsidiary Senate Bill No. 501
3502-
3503-June Sp. Sess., 2024, Public Act No. 24-1 105 of 140
3504-
3505-corporation of the authority as part of such an acquisition; (e) to
3506-construct and develop any water supply system or any wastewater
3507-system; (f) to own, operate, maintain, repair, improve, construct,
3508-reconstruct, replace, enlarge and extend any of its properties; (g)
3509-notwithstanding any provision of the general statutes, special acts or
3510-this charter, but subject to the provisions of section 45 of this act, to sell
3511-water, however acquired, to customers within the district or to any
3512-municipality or water company; (h) notwithstanding any provision of
3513-the general statutes, special acts or this charter, to purchase water
3514-approved by the Commissioner of Public Health from any person,
3515-private corporation or municipality when necessary or convenient for
3516-the operation of any water supply system operated by the authority; (i)
3517-to adopt and amend bylaws, rules and regulations for the management
3518-and regulation of its affairs and for the use and protection of the water
3519-and properties of the authority or a subsidiary corporation and, subject
3520-to the provisions of any resolution authorizing the issuance of bonds,
3521-rules for the sale of water, the collection and processing of wastewater
3522-and the collection of rents and charges for both water supply and
3523-wastewater functions. A copy of such bylaws, rules and regulations and
3524-all amendments thereto, certified by the secretary of the authority, shall
3525-be filed in the office of the Secretary of the State and with the clerk of
3526-each town and city within the district. Any superior court located within
3527-the district shall have jurisdiction over any violation of such bylaws,
3528-rules or regulations and the authority may prosecute actions before the
3529-superior court to enforce such bylaws, rules and regulations; (j) to make
3530-contracts and to execute all necessary or convenient instruments,
3531-including evidences of indebtedness, negotiable or non-negotiable; (k)
3532-to borrow money, to issue negotiable bonds or notes, to fund and refund
3533-the same and to provide for the rights of the holders of the authority's
3534-obligations; (l) to open the grounds in any public street or way or public
3535-grounds for the purpose of laying, installing, maintaining or replacing
3536-pipes and conduits, provided upon the completion of such work the
3537-grounds shall be restored to the condition they were in previously; (m) Senate Bill No. 501
3538-
3539-June Sp. Sess., 2024, Public Act No. 24-1 106 of 140
3540-
3541-to enter into cooperative agreements with other water authorities,
3542-municipalities, water districts, water companies or water pollution
3543-control authorities within or without the district for interconnection of
3544-facilities, for exchange or interchange of services and commodities or for
3545-any other lawful purpose necessary or desirable to effect the purposes
3546-of sections 34 to 65, inclusive, of this act, such agreements to be binding
3547-for a period specified therein; (n) to acquire, hold, develop and maintain
3548-land and other real estate and waters for conservation and for
3549-compatible active and passive recreational purposes and to levy charges
3550-for such uses, provided the state department of health finds that such
3551-uses will not harm the quality of water provided by the authority; (o) to
3552-apply for and accept grants, loans or contributions from the United
3553-States, the state of Connecticut or any agency, instrumentality or
3554-subdivision of either of them or from any person, and to expend the
3555-proceeds for any of its purposes; (p) to create programs and policies for
3556-the purpose of conserving water; (q) to do any and all things necessary
3557-or convenient to carry out the powers expressly given in sections 34 to
3558-36, inclusive, of this act and sections 38 to 40, inclusive, of this act,
3559-including the powers granted by the general statutes to stock
3560-corporations, except the power to issue stock, and the powers granted
3561-by the general statutes to water pollution control authorities; and (r) to
3562-borrow money, to issue negotiable bonds or notes, to fund and refund
3563-the same and to provide for the rights of the holders of the authority's
3564-obligations for the specific purpose of acquiring the Aquarion Water
3565-Company or one or more of its subsidiaries.
3566-Sec. 45. The authority shall not sell water to customers in any part of
3567-the district with respect to which any person, any firm or any
3568-corporation incorporated under the general statutes or any special act
3569-has been granted a franchise to operate as a water company, as defined
3570-in section 16-1 of the general statutes, or in which any town, city or
3571-borough or any district organized for municipal purposes operates a
3572-municipal water supply system, unless the legislative body of such Senate Bill No. 501
3573-
3574-June Sp. Sess., 2024, Public Act No. 24-1 107 of 140
3575-
3576-town, city, borough or district, such person, or the governing board of
3577-such firm or corporation shall consent in writing to such sale by the
3578-authority. The authority shall not extend wastewater services into new
3579-areas previously unserved without the approval of either the legislative
3580-body of the town, city, borough or district in which such area is located
3581-or a duly authorized water pollution control authority.
3582-Notwithstanding the provisions of any town or district charter, any
3583-town or district may sell or transfer a wastewater system to the authority
3584-with the approval of the legislative body of such town or district after a
3585-public hearing.
3586-Sec. 46. (a) Except with respect to (1) any real or personal property or
3587-interest therein, the legal title to which is vested in the state or a political
3588-subdivision thereof, (2) any existing water supply system, or (3) any
3589-existing wastewater system, if such authority cannot agree with any
3590-owner upon the terms of acquisition by the authority of any real or
3591-personal property or interest therein which the authority is authorized
3592-to acquire, the authority may proceed, at its election, in the manner
3593-provided in subsection (b) of this section or in the manner provided in
3594-subsection (c) of this section, except that the authority may not proceed
3595-in the manner described in subsections (b) and (c) of this section with
3596-respect to property to be acquired for noncore businesses.
3597-(b) The authority may, after ten days' written notice to such owner,
3598-petition the superior court for the county or judicial district in which
3599-such property is located, or, if said court is not then sitting, any judge of
3600-said court, and thereupon said court or such judge shall appoint a
3601-committee of three disinterested persons, who shall be sworn before
3602-commencing their duties. Such committee, after giving reasonable
3603-notice to the parties, shall view the property in question, hear the
3604-evidence, ascertain the value, assess just damages to the owner or
3605-parties interested in the property and report its doings to said court or
3606-such judge. Within fourteen days after such report is made to said court Senate Bill No. 501
3607-
3608-June Sp. Sess., 2024, Public Act No. 24-1 108 of 140
3609-
3610-or such judge, any party may move for the acceptance thereof. Said court
3611-or such judge may accept such report or may reject it for irregular or
3612-improper conduct by the committee in the performance of its duties. If
3613-the report is rejected, the court or judge shall appoint another
3614-committee, which shall proceed in the same manner as did the first
3615-committee. If the report is accepted, such acceptance shall have the effect
3616-of a judgment in favor of the owner of the property against said
3617-authority for the amount of such assessment, and, except as otherwise
3618-provided by law, execution may issue therefor. Such property shall not
3619-be used by such authority until the amount of such assessment has been
3620-paid to the party to whom it is due or deposited for his use with the state
3621-treasurer and, upon such payment or deposit, such property shall
3622-become the property of the authority; provided, if at any stage of
3623-condemnation proceedings brought hereunder, it appears to the court
3624-or judge before whom such proceedings are pending that the public
3625-interest will be prejudiced by delay, said court or such judge may direct
3626-that the authority be permitted to enter immediately upon the property
3627-to be taken and devote it temporarily to the public use specified in such
3628-petition upon the deposit with said court of a sum to be fixed by said
3629-court or such judge, upon notice to the parties of not less than ten days,
3630-and such sum when so fixed and paid shall be applied so far as it may
3631-be necessary for the purpose of the payment of any award of damages
3632-which may be made, with interest thereon from the date of the order of
3633-said court or judge, and the remainder if any returned to the authority.
3634-If such petition is dismissed or no award of damages is made, said court
3635-or such judge shall direct that the money so deposited, so far as it may
3636-be necessary, shall be applied to the payment of any damages that the
3637-owner of such property or other parties in interest may have sustained
3638-by such entry upon and use of such property, and of the costs and
3639-expenses of such proceedings, such damages to be ascertained by said
3640-court or such judge or a committee to be appointed for that purpose, and
3641-if the sum so deposited is insufficient to pay such damages and all costs
3642-and expenses so awarded, judgment shall be entered against the Senate Bill No. 501
3643-
3644-June Sp. Sess., 2024, Public Act No. 24-1 109 of 140
3645-
3646-authority for the deficiency, to be enforced and collected in the same
3647-manner as a judgment by the superior court; and the possession of such
3648-property shall be restored to the owner or owners thereof. The expenses
3649-or costs of any such proceedings shall be taxed by said court or such
3650-judge and paid by the authority.
3651-(c) The authority, in its name, may proceed in the manner specified
3652-for redevelopment agencies in accordance with sections 8-128 to 8-133,
3653-inclusive, of the general statutes.
3654-Sec. 47. With the approval of the Aquarion representative policy
3655-board, the authority shall establish just and equitable rates or charges
3656-for the use of the water supply system and the wastewater system
3657-authorized herein, to be paid by any customer, including rates of
3658-interest on unpaid rates or charges, and may change such rates, charges
3659-or rates of interest from time to time. Such water supply system rates or
3660-charges shall be established so as to provide funds sufficient in each
3661-year, with other water supply related revenues, if any, (a) to pay the cost
3662-of maintaining, repairing and operating the water supply system and
3663-each and every portion thereof, to the extent that adequate provision for
3664-the payment of such cost has not otherwise been made, (b) to pay the
3665-principal of and the interest on outstanding water supply bonds of the
3666-authority as the same shall become due and payable, (c) to meet any
3667-requirements of any resolution authorizing, or trust agreement
3668-securing, such bonds of the authority, (d) to make payments in lieu of
3669-taxes as provided in section 54 of this act, as the same become due and
3670-payable, upon the water supply system properties of the authority or of
3671-a subsidiary corporation to the municipalities in which such properties
3672-are situated, (e) to provide for the maintenance, conservation and
3673-appropriate recreational use of the land of the authority, and (f) to pay
3674-all other reasonable and necessary expenses of the authority and of the
3675-Aquarion representative policy board to the extent that such expenses
3676-are allocable to the water supply system activities of the authority and Senate Bill No. 501
3677-
3678-June Sp. Sess., 2024, Public Act No. 24-1 110 of 140
3679-
3680-the Aquarion representative policy board. Such wastewater system
3681-rates or charges shall be established so as to provide funds sufficient in
3682-each year with other wastewater related revenues, if any, (1) to pay the
3683-cost of maintaining, repairing and operating the wastewater system and
3684-each and every portion thereof, to the extent that adequate provision for
3685-the payment of such cost has not otherwise been made, (2) to pay the
3686-principal of and the interest on outstanding wastewater bonds of the
3687-authority as the same shall become due and payable, (3) to meet any
3688-requirements of any resolution authorizing, or trust agreement
3689-securing, such bonds of the authority, and (4) to pay all other reasonable
3690-and necessary expenses of the authority and of the Aquarion
3691-representative policy board to the extent that such expenses are
3692-allocable to the wastewater activities of the authority and of the
3693-Aquarion representative policy board. No such rate or charge shall be
3694-established until it has been approved by the Aquarion representative
3695-policy board, after said board has held a public hearing at which all the
3696-users of the waterworks system or the wastewater system, the owners
3697-of property served or to be served and others interested have had an
3698-opportunity to be heard concerning such proposed rate or charge. The
3699-Aquarion representative policy board shall approve such rates and
3700-charges unless it finds that such rates and charges will provide funds in
3701-excess of the amounts required for the purposes described previously in
3702-this section, or unless it finds that such rates and charges will provide
3703-funds insufficient for such purposes. The rates or charge, so established
3704-for any class of users or property served, shall be extended to cover any
3705-additional premises thereafter served which are within the same class,
3706-without the necessity of a hearing thereon. Any change in such rates or
3707-charges shall be made in the same manner in which they were
3708-established. The rates or charges levied upon any customer of any water
3709-supply system shall not be required to be equalized with the authority's
3710-existing rates, but may be set on a separate basis, provided such rates
3711-are just, equitable and nondiscriminatory. Such rates or charges, if not
3712-paid when due, shall constitute a lien upon the premises served and a Senate Bill No. 501
3713-
3714-June Sp. Sess., 2024, Public Act No. 24-1 111 of 140
3715-
3716-charge against the owners thereof, which lien and charge shall bear
3717-interest not to exceed the maximum rate as would be allowed for unpaid
3718-taxes. Such lien shall take precedence over all other liens or
3719-encumbrances except taxes and may be foreclosed against the lot or
3720-building served in the same manner as a lien for taxes, provided all such
3721-liens shall continue until such time as they shall be discharged or
3722-foreclosed by the authority without the necessity of filing certificates of
3723-continuation, but in no event for longer than fifteen years. The amount
3724-of any such rate or charge that remains due and unpaid after twenty-
3725-eight days, which number of days may be changed with the approval of
3726-the majority of the weighted votes of the membership of the Aquarion
3727-representative policy board, excluding vacancies, with interest thereon
3728-at a rate approved by the Aquarion representative policy board but not
3729-to exceed the maximum interest rate allowed pursuant to the
3730-Connecticut general statutes for unpaid property taxes and with
3731-reasonable attorneys' fees, be recovered by the authority in a civil action
3732-in the name of the authority against such owners. Any municipality
3733-shall be subject to the same rate or charges under the same conditions as
3734-other users of the water supply system or the wastewater system. The
3735-assets or the revenues of the water system shall not be available to
3736-satisfy debts, judgments or other obligations arising out of the operation
3737-of the wastewater system and the assets or the revenues of the
3738-wastewater system shall not be available to satisfy debts, judgments or
3739-other obligations arising out of the operation of the water system.
3740-Sec. 48. The office of consumer affairs established by the
3741-representative policy board of the South Central Connecticut Regional
3742-Water District shall act as the advocate for consumer interests in all
3743-matters which may affect consumers of the Aquarion Regional Water
3744-District, including without limitation matters of rates, water quality and
3745-supply and wastewater service quality and shall have those powers and
3746-authorizations set forth in section 15 of special act 77-98, as amended by
3747-section 8 of special act 99-12 and section 11 of special act 02-85, as Senate Bill No. 501
3748-
3749-June Sp. Sess., 2024, Public Act No. 24-1 112 of 140
3750-
3751-amended by this act. The costs of such office of consumer affairs, unless
3752-otherwise provided by the state, shall be jointly shared paid by the
3753-South Central Connecticut Regional Water Authority and the Aquarion
3754-Water Authority.
3755-Sec. 49. All contracts in excess of fifty thousand dollars for any
3756-supplies, materials, equipment, construction work or other contractual
3757-services shall be in writing and shall be awarded upon either sealed bids
3758-or proposals or electronic submission of bids or proposals, and in each
3759-case made in compliance with a public notice duly advertised by
3760-publication in one or more newspapers of general circulation or, if there
3761-are no such newspapers, in appropriate electronic media, including,
3762-without limitation, the authority's Internet web site, as are likely to reach
3763-a broad segment of potential vendors, at least ten days before the time
3764-fixed for review of said bids or proposals, except for (1) contracts for
3765-professional services, (2) when the supplies, materials, equipment or
3766-work can only be furnished by a single party, (3) when the authority
3767-determines by a two-thirds vote of the entire authority that the award
3768-of such contract by negotiation without public bidding will be in the best
3769-interest of the authority, or (4) when the procurement is made as a result
3770-of participation in a procurement group, alliance or consortium made
3771-up of other state or federal government entities in which the state of
3772-Connecticut is authorized to participate. The authority may in its sole
3773-discretion reject all such bids or proposals or any bids received from a
3774-person, firm or corporation the authority finds to be unqualified to
3775-perform the contract, and shall award such contract to the lowest
3776-responsible bidder qualified to perform the contract.
3777-Sec. 50. (a) If any member or employee of the Aquarion representative
3778-policy board or of the authority or any employee of a subsidiary
3779-corporation or an affiliated business entity is financially interested in or
3780-has any personal beneficial interest, directly or indirectly, in any
3781-proposed contract or proposed purchase order for any supplies, Senate Bill No. 501
3782-
3783-June Sp. Sess., 2024, Public Act No. 24-1 113 of 140
3784-
3785-materials, equipment or contractual services to be furnished to or used
3786-by the Aquarion representative policy board, the authority, a subsidiary
3787-corporation or an affiliated business entity such member or employee
3788-shall immediately so inform the Aquarion representative policy board,
3789-the authority, the subsidiary corporation or the affiliated business entity
3790-whichever he or she is a member or employee of, and shall take no part
3791-in the deliberations or vote concerning such contract or purchase order.
3792-The Aquarion representative policy board, as to its members and
3793-employees, and the subsidiary corporation or affiliated business entity
3794-as to its employees, the authority, as to its members and employees, may
3795-terminate the membership or employment of any person who violates
3796-this subsection.
3797-(b) No member or employee of the Aquarion representative policy
3798-board, the authority, a subsidiary corporation or an affiliated business
3799-entity shall accept or receive, directly or indirectly, from any person,
3800-firm or corporation to which any contract or purchase order may be
3801-awarded, by rebate, gift or otherwise, any promise, obligation or
3802-contract for future reward or compensation or any money or anything
3803-of value in excess of ten dollars, provided the aggregate value of all such
3804-things provided by a donor to a recipient in any calendar year shall not
3805-exceed fifty dollars and, excluding any food or beverage or food and
3806-beverage, costing less than fifty dollars in the aggregate per recipient in
3807-a calendar year, and consumed on an occasion or occasions at which the
3808-person paying, directly or indirectly, for the food or beverage, or his
3809-representative, is in attendance. Any person who violates any provision
3810-of this subsection shall be fined not more than five hundred dollars or
3811-imprisoned for not more than six months or both.
3812-Sec. 51. (a) Notwithstanding any provision of sections 34 to 65,
3813-inclusive, of this act, the authority shall not sell or otherwise transfer any
3814-unimproved real property or any interest or right therein, except for
3815-access or utility purposes, or develop such property for any use not Senate Bill No. 501
3816-
3817-June Sp. Sess., 2024, Public Act No. 24-1 114 of 140
3818-
3819-directly related to a water supply function, other than for public
3820-recreational use not prohibited by section 25-43c of the general statutes,
3821-until the land use standards and disposition policies required by
3822-subsection (b) of this section have been approved by the Aquarion
3823-representative policy board, unless the chief executive officer of the
3824-town or city in which such property is located has approved such sale,
3825-transfer or development in writing. The provisions of this section shall
3826-not apply to any portion of a wastewater system.
3827-(b) Within two years from the date it acquires all or part of a water
3828-supply system, the authority shall develop and submit to the Aquarion
3829-representative policy board for approval (1) standards for determining
3830-the suitability of its real property for categories of land use, including
3831-which, if any, of its real property may be surplus with regard to the
3832-purity and adequacy of both present and future water supply, which, if
3833-any, may be desirable for specified modes of recreation or open space
3834-use and which may be suitable for other uses, giving due consideration
3835-to the state plan of conservation and development, to classification and
3836-performance standards recommended in the final report of the council
3837-on water company lands pursuant to subsection (c) of section 16-49c of
3838-the general statutes and to such other plans and standards as may be
3839-appropriate, and (2) policies regarding the disposition of its real
3840-property including identification of dispositions which are unlikely to
3841-have any significant effect on the environment. Prior to approving any
3842-standards or policies specified in this subsection, the Aquarion
3843-representative policy board shall hold one or more public hearings to
3844-consider the proposed standards and policies. The proposed standards
3845-and policies shall be available for public inspection in the offices of the
3846-authority from the date notice of such hearing is published. The
3847-authority may amend such standards and policies from time to time
3848-with the approval of the Aquarion representative policy board, which
3849-shall hold public hearings if it deems such amendments substantial. Senate Bill No. 501
3850-
3851-June Sp. Sess., 2024, Public Act No. 24-1 115 of 140
3852-
3853-(c) After approval of land use standards and disposition policies in
3854-the manner provided in subsection (b) of this section, the authority shall
3855-not: (1) Sell or otherwise transfer any real property or any interest or
3856-right therein, except (A) for access, (B) for utility purposes, or (C) to
3857-dedicate land as open space by conveying a conservation restriction, as
3858-defined in section 47-42a of the general statutes, to the federal, state or a
3859-municipal government or a nonprofit land-holding organization, as
3860-defined in section 47-6b of the general statutes, or (2) develop such
3861-property for any use not directly related to a water supply function,
3862-other than for public recreational use not prohibited by section 25-43c of
3863-the general statutes, without the approval of a majority of the weighted
3864-votes of all of the members of the Aquarion representative policy board,
3865-excluding vacancies, in the case of a parcel of twenty acres or less, and
3866-by three-fourths of the weighted votes of all of the members of said
3867-board, excluding vacancies, in the case of a parcel in excess of twenty
3868-acres. The Aquarion representative policy board shall not approve such
3869-sale or other transfer or development unless it determines, following a
3870-public hearing, that the proposed action (A) conforms to the established
3871-standards and policies of the authority, (B) is not likely to affect the
3872-environment adversely, particularly with respect to the purity and
3873-adequacy of both present and future water supply, and (C) is in the
3874-public interest, giving due consideration, among other factors, to the
3875-financial impact of the proposed action on the customers of the
3876-authority and on the municipality in which the real property is located.
3877-(d) Each request by the authority for approval pursuant to subsection
3878-(c) of this section shall be accompanied by an evaluation of the potential
3879-impact of the proposed action for which approval is requested, which
3880-shall include: (1) A description of the real property and its environment,
3881-including its existing watershed function and the costs to the authority
3882-of maintaining such property in its current use, (2) a statement that the
3883-proposed action conforms to the land classification standards and
3884-disposition policies of the authority, (3) a detailed statement of the Senate Bill No. 501
3885-
3886-June Sp. Sess., 2024, Public Act No. 24-1 116 of 140
3887-
3888-environmental impact of the proposed action and, if appropriate, of any
3889-alternatives to the proposed action, considering (A) direct and indirect
3890-effects upon the purity and adequacy of both present and future water
3891-supply, (B) the relationship of the proposed action to existing land use
3892-plans, including municipal and regional land use plans and the state
3893-plan of conservation and development, (C) any adverse environmental
3894-effects which cannot be avoided if the proposed action is implemented,
3895-(D) any irreversible and irretrievable commitments of resources which
3896-would be involved should the proposed action be implemented, and (E)
3897-any mitigation measures proposed to minimize adverse environmental
3898-impacts; except that for a sale or transfer identified in accordance with
3899-subsection (b) of this section as being unlikely to have any significant
3900-effect on the environment, the authority may submit a preliminary
3901-assessment of the impact likely to occur in lieu of such detailed
3902-statement of environmental impact, and the Aquarion representative
3903-policy board may, on the basis of such preliminary assessment, waive
3904-or modify the requirements for such detailed statement, and (4) a
3905-summary of the final evaluation and recommendation of the authority.
3906-(e) The Aquarion representative policy board shall submit the
3907-evaluation required by subsection (d) of this section for comment and
3908-review, at least sixty days in advance of the public hearing, to the
3909-department of health, the department of planning and energy policy,
3910-the regional planning agency for the region, the chief executive officer
3911-of the city or town in which the real property is situated and other
3912-appropriate agencies, and shall make such evaluation available to the
3913-public for inspection. The decision of the Aquarion representative policy
3914-board approving or disapproving the proposed action shall be
3915-published in a newspaper or newspapers having a general circulation
3916-within the district and copies of such decision shall be filed with the
3917-clerk of each town and city in the district.
3918-(f) Whenever the authority intends to sell or otherwise transfer any Senate Bill No. 501
3919-
3920-June Sp. Sess., 2024, Public Act No. 24-1 117 of 140
3921-
3922-unimproved real property or any interest or right therein after approval
3923-by the Aquarion representative policy board, the authority shall first
3924-notify in writing, by certified mail, return receipt requested, the
3925-Commissioner of Energy and Environmental Protection and the
3926-legislative body of the city or town in which such land is situated, of
3927-such intention to sell or otherwise transfer such property and the terms
3928-of such sale or other transfer, and no agreement to sell or otherwise
3929-transfer such property may be entered into by the authority except as
3930-provided in this subsection. (1) Within ninety days after such notice has
3931-been given, the legislative body of the city or town or the Commissioner
3932-of Energy and Environmental Protection may give written notice to the
3933-authority by certified mail, return receipt requested, of the desire of the
3934-city, town or state to acquire such property and each shall have the right
3935-to acquire the interest in the property which the authority has declared
3936-its intent to sell or otherwise transfer, provided the state's right to
3937-acquire the property shall be secondary to that of the city or town. (2) If
3938-the legislative body of the city or town or the Commissioner of Energy
3939-and Environmental Protection fails to give notice as provided in
3940-subdivision (1) of this subsection or gives notice to the authority by
3941-certified mail, return receipt requested, that the city, town or state does
3942-not desire to acquire such property, the city or town or the state shall
3943-have waived its right to acquire such property in accordance with the
3944-terms of this subsection. (3) Within eighteen months after notice has
3945-been given as provided in subdivision (1) of this subsection by the city
3946-or town or the state of its desire to acquire such property, the authority
3947-shall sell the property to the city or town or the state, as the case may be,
3948-or, if the parties cannot agree upon the amount to be paid therefor, the
3949-city or town or the state may proceed to acquire the property in the
3950-manner specified for redevelopment agencies in accordance with
3951-sections 8-128 to 8-133, inclusive, of the general statutes, provided
3952-property subject to the provisions of subsections (b) and (c) of section
3953-25-32 of the general statutes shall not be sold without the approval of
3954-the department of health. (4) If the city or town or the state fails to Senate Bill No. 501
3955-
3956-June Sp. Sess., 2024, Public Act No. 24-1 118 of 140
3957-
3958-acquire the property or to proceed as provided in said sections within
3959-eighteen months after notice has been given by the city or town or the
3960-state of its desire to acquire the property, such city or town or the state
3961-shall have waived its rights to acquire such property in accordance with
3962-the terms of this subsection. (5) Notwithstanding the provisions of
3963-section 54 of this section, the authority shall not be obligated to make
3964-payments in lieu of taxes on such property for the period from the date
3965-the city or town gives notice of its desire to acquire such property. (6)
3966-Notwithstanding the provisions of subdivision (4) of this subsection, if
3967-the authority thereafter proposes to sell or otherwise transfer such
3968-property to any person subject to less restrictions on use or for a price
3969-less than that offered by the authority to the city or town and the state,
3970-the authority shall first notify the city or town and the Commissioner of
3971-Energy and Environmental Protection of such proposal in the manner
3972-provided in subdivision (1) of this subsection, and such city or town and
3973-the state shall again have the option to acquire such property and may
3974-proceed to acquire such property in the same manner and within the
3975-same time limitations as are provided in subdivisions (1) to (4),
3976-inclusive, of this subsection. (7) The provisions of this subsection shall
3977-not apply to transfers of real property from the authority to any public
3978-service company. (8) A copy of each notice required by this subsection
3979-shall be sent by the party giving such notice to the clerk of the town or
3980-city in which the real property is situated and such clerk shall make all
3981-such notices part of the appropriate land records.
3982-(g) Nothing contained in this section shall be construed to deprive the
3983-state Department of Public Health of its jurisdiction under section 25-32
3984-of the general statutes. The authority shall notify the state Commissioner
3985-of Public Health of any proposed sale or other transfer of land, or change
3986-or use, as required by said section.
3987-(h) The authority shall use the proceeds of any sale or transfer under
3988-this section solely for capital improvements to its remaining properties, Senate Bill No. 501
3989-
3990-June Sp. Sess., 2024, Public Act No. 24-1 119 of 140
3991-
3992-acquisition of real property or any interest or right therein, retirement
3993-of debt or any combination of such purposes.
3994-(i) The provisions of this section shall apply to any unimproved real
3995-property or any interest or right therein related to the water supply
3996-system whether owned or possessed by the authority or by any
3997-subsidiary corporation.
3998-Sec. 52. The authority shall not (1) acquire, by purchase, lease or
3999-otherwise any existing water supply system or parts thereof or any
4000-wastewater system or parts thereof, (2) commence any project costing
4001-more than three and one-half million dollars to repair, improve,
4002-construct, reconstruct, enlarge and extend any of its properties or
4003-systems, or (3) acquire or make a subsequent investment in any noncore
4004-business in an amount more than one and one-half million dollars
4005-without the approval, following a public hearing, of a majority of the
4006-total weighted votes of the membership of the Aquarion representative
4007-policy board, excluding vacancies. The dollar amounts specified in
4008-subdivisions (2) and (3) of this section shall be adjusted every three years
4009-by the Consumer Price Index factor, as described in section 37 of this act,
4010-with the approval of a majority of the weighted votes of the membership
4011-of the Aquarion representative policy board, excluding vacancies.
4012-Sec. 53. (a) The authority shall have an annual audit of its accounts,
4013-books and records by a certified public accountant selected by the
4014-Aquarion representative policy board. A copy of the audit shall be filed
4015-in the office of the town clerk in each town within the district and shall
4016-be available for public inspection during the ordinary business hours of
4017-the authority at the principal office of the authority. A concise financial
4018-statement shall be posted annually on the Aquarion Water Authority's
4019-web site.
4020-(b) The attorney general may examine the books, accounts and
4021-records of the authority. Senate Bill No. 501
4022-
4023-June Sp. Sess., 2024, Public Act No. 24-1 120 of 140
4024-
4025-Sec. 54. (a) Neither the authority nor a subsidiary corporation or an
4026-"affiliated business entity" shall be required to pay taxes or assessments
4027-upon any of the properties acquired by it or under its jurisdiction,
4028-control or supervision, provided in lieu of such taxes or assessments the
4029-authority shall make annual payments to each municipality in which it
4030-or a subsidiary corporation owns property related to the water supply
4031-system equal to the taxes which would otherwise be due for the
4032-property of the authority or such subsidiary corporation in such
4033-municipality, excluding any improvements made to or constructed on
4034-any such real property by the authority or such subsidiary corporation,
4035-provided land owned by the authority or a subsidiary corporation
4036-related to the water supply system shall be assessed in accordance with
4037-section 12-63 of the general statutes, and provided further payments for
4038-property acquired by the authority or a subsidiary corporation during
4039-any tax year shall be adjusted for such fractional year in accordance with
4040-the customary practice in such municipality for adjusting taxes between
4041-the buyer and seller of real property. In addition, the authority or a
4042-subsidiary corporation shall reimburse each such municipality for its
4043-expenses in providing municipal services to any improvements made to
4044-or constructed on any real property by the authority or such subsidiary
4045-corporation within such municipality. As used in this section,
4046-"improvements" does not include water pipes or improvements to water
4047-pipes.
4048-(b) The authority may contest the assessed valuation of any
4049-properties owned by the authority or a subsidiary corporation with
4050-respect to which any payment in lieu of taxes is determined in the same
4051-manner as any owner of real property in such municipality. Payments
4052-in lieu of taxes payable to any municipality shall be paid by the authority
4053-to the municipality upon the date and in the manner provided for the
4054-payment of real property taxes of the municipality.
4055-(c) In the event the authority in any year does not have sufficient Senate Bill No. 501
4056-
4057-June Sp. Sess., 2024, Public Act No. 24-1 121 of 140
4058-
4059-funds to make such payments in lieu of taxes, or any portion of them, as
4060-the same become due and payable, the authority shall adjust its rates
4061-and charges and the Aquarion representative policy board shall
4062-approve such adjustment of rates and charges, after a public hearing
4063-thereon as provided in section 14 of special act 77-98, as amended by
4064-section 6 of special act 78-24, so as to provide funds within one year after
4065-the date on which such payment became due and payable to make such
4066-payment. Any municipality or any holder of bonds or notes of the
4067-authority aggrieved by the failure of the authority to make any payment
4068-in lieu of taxes or portion thereof as the same becomes due and payable
4069-may apply to the superior court for the county in which such
4070-municipality is situated for an order directing the authority to
4071-appropriately increase its rates and charges.
4072-(d) Neither the authority nor a subsidiary corporation shall be
4073-required to pay taxes imposed upon or measured by the receipts or
4074-earnings derived by the authority or such subsidiary corporation
4075-through the ownership or operation of a water supply system, or
4076-imposed as a result of the income, powers, activities or items reflected
4077-on the balance sheet of the authority or such subsidiary corporation.
4078-Sec. 55. (a) The authority, subject to the approval of the Aquarion
4079-representative policy board, shall have the power and is authorized
4080-from time to time to issue its negotiable bonds for any of its corporate
4081-purposes, including incidental expenses in connection therewith, and to
4082-secure the payment of the same by a lien or pledge covering all or part
4083-of its contracts, earnings or revenues. The authority shall have power
4084-from time to time, without the approval of the Aquarion representative
4085-policy board, to refund any bonds by the issuance of new bonds within
4086-the terms of any refunding provisions of its bonds, whether the bonds
4087-to be refunded have or have not matured, and may issue bonds partly
4088-to refund bonds then outstanding and partly for any of its public
4089-purposes. Except as may be otherwise expressly provided by the Senate Bill No. 501
4090-
4091-June Sp. Sess., 2024, Public Act No. 24-1 122 of 140
4092-
4093-authority every issue of bonds by the authority shall be preferred
4094-obligations, taking priority over all other claims against the authority,
4095-including payments in lieu of taxes to any municipality, and payable out
4096-of any moneys, earnings or revenues of the authority, subject only to
4097-any agreements with the holders of particular bonds pledging any
4098-particular moneys, earnings or revenues. Notwithstanding the fact that
4099-the bonds may be payable from a special fund, if they are otherwise of
4100-such form and character as to be negotiable instruments under the terms
4101-of the uniform commercial code, the bonds shall be negotiable
4102-instruments within the meaning of and for all the purposes of the
4103-uniform commercial code, subject only to the provisions of the bonds
4104-for registration.
4105-(b) The bonds shall be authorized by resolution of the authority and
4106-shall bear such date or dates, mature at such time or times, bear interest
4107-at such rates per annum, not exceeding statutory limitations, be payable
4108-at such times, be in such denomination, be in such form, either coupon
4109-or registered, carry such registration privileges, be executed in such
4110-manner, be payable in lawful money of the United States of America, at
4111-such place or places, and be subject to such terms of redemption as such
4112-resolution or resolutions may provide. All bonds of the authority shall
4113-be sold through a negotiated sale or a public sale to the bidder who shall
4114-offer the lowest true interest cost to the authority, to be determined by
4115-the authority.
4116-(c) Any resolution or resolutions authorizing any bonds or any issue
4117-of bonds may contain provisions which shall be a part of the contract
4118-with the holders of the bonds thereby authorized as to (1) pledging all
4119-or any part of the moneys, earnings, income and revenues derived from
4120-all or any part of the properties of the authority to secure the payment
4121-of the bonds or of any issue of the bonds subject to such agreement with
4122-the bondholders as may then exist, (2) the rates, rentals, fees and other
4123-charges to be fixed and collected and the amounts to be raised in each Senate Bill No. 501
4124-
4125-June Sp. Sess., 2024, Public Act No. 24-1 123 of 140
4126-
4127-year thereby, and the use and disposition of the earnings and other
4128-revenues, (3) the setting aside of reserves and the creation of sinking
4129-funds and the regulation and disposition thereof, (4) limitations on the
4130-rights of the authority to restrict and regulate the use of the properties
4131-in connection with which such bonds are issued, (5) limitations on the
4132-purposes to which, and the manner in which, the proceeds of sale of any
4133-issue of bonds may be applied, (6) limitations on the issuance of
4134-additional bonds, the terms upon which additional bonds may be issued
4135-and secured, and the refunding of outstanding or other bonds, (7) the
4136-procedure, if any, by which the terms of any contract with bondholders
4137-may be amended or abrogated, the amount of bonds the holders of
4138-which must consent thereto and the manner in which such consent may
4139-be given, (8) the creation of special funds into which any earnings or
4140-revenues of the authority may be deposited, (9) the terms and provisions
4141-of any trust deed or indenture securing the bonds or under which bonds
4142-may be issued, (10) definitions of the acts or omission to act which shall
4143-constitute a default in the obligations and duties of the authority to the
4144-bondholders and providing the rights and remedies of the bondholders
4145-in the event of such default, including as a matter of right the
4146-appointment of a receiver, provided such rights and remedies shall not
4147-be inconsistent with the general laws of this state, (11) limitations on the
4148-power of the authority to sell or otherwise dispose of its properties, (12)
4149-any other matters, of like or different character, which in any way affect
4150-the security or protection of the bonds, and (13) limitations on the
4151-amount of moneys derived from the properties to be expended for
4152-operating, administrative or other expenses of the authority.
4153-(d) The authority may obtain from a commercial bank or insurance
4154-company a letter of credit, line of credit or other liquidity facility or
4155-credit facility for the purpose of providing funds for the payments in
4156-respect of bonds, notes or other obligations required by the holder
4157-thereof to be redeemed or repurchased prior to maturity or for
4158-providing additional security for such bonds, notes or other obligations. Senate Bill No. 501
4159-
4160-June Sp. Sess., 2024, Public Act No. 24-1 124 of 140
4161-
4162-In connection therewith, the authority may enter into reimbursement
4163-agreements, remarketing agreements, standby bond purchase
4164-agreements and any other necessary or appropriate agreements. The
4165-authority may pledge all or any part of the moneys, earnings, income
4166-and revenues derived from all or any part of the properties of the
4167-authority and any other property which may be pledged to bondholders
4168-to secure its payment obligations under any agreement or contract
4169-entered into pursuant to this section subject to such agreements with the
4170-bondholders as may then exist.
4171-(e) In connection with or incidental to the carrying of bonds or notes
4172-or in connection with or incidental to the sale and issuance of bonds or
4173-notes, the authority may enter into such contracts to place the obligation
4174-of the authority, as represented by the bonds or notes, in whole or in
4175-part, on such interest rate or cash flow basis as the authority may
4176-determine, including without limitation, interest rate swap agreements,
4177-insurance agreements, forward payment conversion agreements,
4178-contracts providing for payments based on levels of, or changes in,
4179-interest rates or market indices, contracts to manage interest rate risk,
4180-including, without limitation, interest rate floors or caps, options, puts,
4181-calls and similar arrangements. Such contracts shall contain such
4182-payment, security, default, remedy and other terms and conditions as
4183-the authority may deem appropriate and shall be entered into with such
4184-party or parties as the authority may select, after giving due
4185-consideration, where applicable, for the creditworthiness of the
4186-counterparty or counterparties, provided such parties or counterparties
4187-shall be a financial institution whose unsecured long-term obligations
4188-are rated within the top two rating categories of any nationally
4189-recognized rating service. The authority may pledge all or any part of
4190-the moneys, earnings, income and revenues derived from all or any part
4191-of the properties of the authority and any other property which may be
4192-pledged to bondholders to secure its payment obligations under any
4193-agreement or contract entered into pursuant to this section subject to Senate Bill No. 501
4194-
4195-June Sp. Sess., 2024, Public Act No. 24-1 125 of 140
4196-
4197-such agreements with the bondholders as may then exist.
4198-(f) It is the intention of the general assembly that any pledge of
4199-earnings, revenues or other moneys made by the authority shall be valid
4200-and binding from the time when the pledge is made; that the earnings,
4201-revenues or other moneys so pledged and thereafter received by the
4202-authority shall immediately be subject to the lien of such pledge without
4203-any physical delivery thereof or further act, and that the lien of any such
4204-pledge shall be valid and binding as against all parties having claims of
4205-any kind in tort, contract or otherwise against the authority irrespective
4206-of whether such parties have notice thereof. Neither the resolution nor
4207-any other instrument by which a pledge is created need be recorded.
4208-(g) Neither the members of the authority nor any person executing
4209-the bonds shall be liable personally on the bonds or be subject to any
4210-personal liability or accountability by reason of the issuance thereof.
4211-(h) The authority shall have the power out of any funds available to
4212-purchase, as distinguished from the power of redemption above, and all
4213-bonds so purchased shall be cancelled.
4214-(i) In the discretion of the authority, the bonds may be secured by a
4215-trust indenture by and between the authority and a corporate trustee,
4216-which may be any trust company or bank having the powers of a trust
4217-company. Such trust indenture may contain such provisions for
4218-protecting and enforcing the rights and remedies of the bondholders as
4219-may be reasonable and proper and not in violation of any law, including
4220-covenants setting forth the duties of the authority in relation to the
4221-construction, maintenance, operation, repair and insurance of the
4222-properties and the custody, safeguarding and application of all moneys,
4223-and may provide that the properties shall be constructed and paid for
4224-under the supervision and approval of consulting engineers. The
4225-authority may provide by such trust indenture or other depository for
4226-the methods of disbursement thereof, with such safeguards and Senate Bill No. 501
4227-
4228-June Sp. Sess., 2024, Public Act No. 24-1 126 of 140
4229-
4230-restrictions as it may determine. All expenses incurred in carrying out
4231-such trust indenture may be treated as part of the cost of maintenance,
4232-operation and repair of the properties. If the bonds are secured by a trust
4233-indenture, bondholders shall have no authority to appoint a separate
4234-trustee to represent them.
4235-(j) Notwithstanding any other provision of sections 34 to 65,
4236-inclusive, of this act, any resolution or resolutions authorizing bonds or
4237-notes of the authority shall contain a covenant by the authority that it
4238-will at all times maintain rates, fees, rentals or other charges sufficient
4239-to pay, and that any contracts entered into by the authority for the sale
4240-and distribution of water or the collection of wastewater shall contain
4241-rates, fees, rentals or other charges sufficient to pay, the cost of operation
4242-and maintenance of the properties and the principal of and interest on
4243-any obligation issued pursuant to such resolution or resolutions as the
4244-same severally become due and payable, and to maintain any reserves
4245-or other funds required by the terms of such resolution or resolutions.
4246-(k) If any officer of the authority whose signature or a facsimile of
4247-whose signature appears on any bonds or coupons ceases to be such
4248-officer before delivery of such bonds, such signature or such facsimile
4249-shall nevertheless be valid and sufficient for all purposes as if they had
4250-remained in office until such delivery.
4251-Sec. 56. The authority shall have the power and is authorized to issue
4252-negotiable notes and may renew the same from time to time, but the
4253-maximum maturity of any such note, including renewals thereof, shall
4254-not exceed eight years from date of issue of such original note. Such
4255-notes shall be paid from any moneys of the authority available therefor
4256-and not otherwise pledged or from the proceeds of the sale of the bonds
4257-of the authority in anticipation of which they were issued. The notes
4258-shall be issued and may be secured in the same manner as the bonds
4259-and such notes and the resolution or resolutions authorizing such notes
4260-may contain any provisions, conditions or limitations which the bonds Senate Bill No. 501
4261-
4262-June Sp. Sess., 2024, Public Act No. 24-1 127 of 140
4263-
4264-or a bond resolution of the authority may contain. Such notes shall be as
4265-fully negotiable as the bonds of the authority.
4266-Sec. 57. The state of Connecticut does pledge to and agree with the
4267-holders of the bonds or notes of the authority that the state will not limit
4268-or alter the rights vested in the authority to acquire, construct, maintain,
4269-operate, reconstruct and improve the properties, to establish and collect
4270-the revenues, rates, rentals, fees and other charges referred to in sections
4271-34 to 66, inclusive, of this act and to fulfill the terms of any agreements
4272-made with the holders of the bonds or notes, or in any way impair the
4273-rights and remedies of the bondholders or noteholders until the bonds
4274-or notes together with interest thereon, interest on any unpaid
4275-installments of interest and all costs and expenses in connection with
4276-any action or proceeding by or on behalf of the bondholders or
4277-noteholders are fully met and discharged.
4278-Sec. 58. The bonds, notes or other obligations of the authority shall
4279-not be a debt of the state of Connecticut or of any municipality, and
4280-neither the state nor any municipality shall be liable therefor, nor shall
4281-they be payable out of funds other than those of the authority.
4282-Sec. 59. The bonds and notes of the authority shall be securities in
4283-which all public officers and bodies of this state and all municipalities,
4284-all insurance companies and associations and other persons carrying on
4285-an insurance business, all banks, bankers, trust companies, savings
4286-banks, savings and loan associations, investment companies and other
4287-persons carrying on a banking business and all other persons whatever,
4288-except as hereinafter provided, who are now or may be authorized to
4289-invest in bonds or other obligations of the state, may properly and
4290-legally invest funds, including capital in their control or belonging to
4291-them; provided, notwithstanding the provisions of any other general
4292-statute or special act to the contrary, such bonds shall not be eligible for
4293-the investment of funds, including capital, of trusts, estates or
4294-guardianships under the control of individual administrators, Senate Bill No. 501
4295-
4296-June Sp. Sess., 2024, Public Act No. 24-1 128 of 140
4297-
4298-guardians, executors, trustees or other individual fiduciaries. The bonds
4299-shall also be securities that may be deposited with and may be received
4300-by all public officers and bodies of this state and all municipalities and
4301-municipal subdivisions for any purpose for which the deposit of bonds
4302-or other obligations of this state is now or may be authorized.
4303-Sec. 60. The state of Connecticut covenants with the purchasers and
4304-with all subsequent holders and transferees of bonds or notes issued by
4305-the authority, in consideration of the acceptance of and payment for the
4306-bonds or notes, that the bonds and notes of the authority, the income
4307-therefrom and all moneys, funds and revenues pledged to pay or secure
4308-the payment of such bonds or notes shall at all times be free from
4309-taxation.
4310-Sec. 61. Nothing in sections 34 to 65, inclusive, of this act shall be
4311-construed to deprive the Commissioner of Energy and Environmental
4312-Protection, the Commissioner of Public Health or any successor
4313-commissioner or board of any jurisdiction which such commissioners or
4314-boards may now or hereafter have. Neither the Public Utilities
4315-Regulatory Authority nor any successor board or commissioner shall
4316-have jurisdiction of any kind over the authority, a subsidiary
4317-corporation, the Aquarion representative policy board or the rates fixed
4318-or charges collected by the authority.
4319-Sec. 62. Insofar as the provisions of sections 34 to 65, inclusive, of this
4320-act are inconsistent with the provisions of any other general statute,
4321-special act or any municipal ordinance, the provisions of sections 34 to
4322-65, inclusive, of this act shall be controlling; provided nothing contained
4323-in sections 34 to 65, inclusive, of this act shall exempt the authority from
4324-compliance with zoning regulations lawfully established by any
4325-municipality, except that the plants, structures and other facilities of the
4326-water supply system or the wastewater system owned or operated by
4327-the authority shall be permitted uses in all zoning districts in every city,
4328-town or borough within the district; and provided further that the Senate Bill No. 501
4329-
4330-June Sp. Sess., 2024, Public Act No. 24-1 129 of 140
4331-
4332-authority may not construct purification or filtration plants or
4333-wastewater treatment plants in any zoning district in which such use is
4334-not permitted under local zoning regulations without first obtaining
4335-approval of the proposed location of such facility from the Aquarion
4336-representative policy board following a public hearing.
4337-Sec. 63. (a) The authority or any person who is aggrieved by a
4338-decision of the Aquarion representative policy board with respect to the
4339-establishment of rates or charges, the establishment of land use
4340-standards and disposition policies, the sale or other transfer or change
4341-of use of real property, the location of purification, filtration or
4342-wastewater treatment plants, the commencement of any project costing
4343-more than three and one-half million dollars, and as adjusted by the
4344-Consumer Price Index factor, as described in section 37 of this act, and
4345-subject to the approval of a majority of the weighted votes of the
4346-membership of the Aquarion representative policy board, excluding
4347-vacancies, to repair, improve, construct, reconstruct, enlarge or extend
4348-any of the properties or systems of the authority or the acquisition by
4349-purchase, lease or otherwise of any existing water supply system,
4350-wastewater system or part thereof, other than the purchase of all or any
4351-part of the properties and franchises of the Aquarion Water Company,
4352-is entitled to review by the Superior Court as provided in this section.
4353-For the purposes of this section, the holders of any bonds or notes of the
4354-authority and any trustee acting on behalf of such holders shall be
4355-deemed aggrieved persons with respect to any decision of the Aquarion
4356-representative policy board which violates any covenant or other
4357-provision of the resolution or resolutions authorizing such bonds or
4358-notes.
4359-(b) Proceedings for review shall be instituted by filing a petition in
4360-the superior court for the judicial district of Hartford within forty-five
4361-days after publication of the decision of the Aquarion representative
4362-policy board or, if a rehearing is requested, within forty-five days after Senate Bill No. 501
4363-
4364-June Sp. Sess., 2024, Public Act No. 24-1 130 of 140
4365-
4366-the decision thereon. Copies of the petition shall be served upon the
4367-Aquarion representative policy board and published in a newspaper or
4368-newspapers having a general circulation in each town or city
4369-comprising the district.
4370-(c) The filing of the petition shall not of itself stay enforcement of the
4371-decision of the Aquarion representative policy board. The Aquarion
4372-representative policy board may grant, or the reviewing court may
4373-order, a stay upon appropriate terms, provided enforcement of a
4374-decision respecting the establishment of rates or charges may be stayed
4375-only after issuance of a judgment for the appellant by the reviewing
4376-court.
4377-(d) Within thirty days after service of the petition, or within such
4378-further time as may be allowed by the court, the Aquarion
4379-representative policy board shall transmit to the reviewing court the
4380-original or a certified copy of the entire record of the proceeding under
4381-review, which shall include the Aquarion representative policy board's
4382-findings of fact and conclusions of law, separately stated. By stipulation
4383-of all parties to the review proceedings, the record may be shortened. A
4384-party unreasonably refusing to stipulate to limit the record may be taxed
4385-by the court for the additional costs. The court may require or permit
4386-subsequent corrections or additions to the record.
4387-(e) If, before the date set for hearing, application is made to the court
4388-for leave to present additional evidence, and it is shown to the
4389-satisfaction of the court that the additional evidence is material and that
4390-there were good reasons for failure to present it in the proceeding before
4391-the Aquarion representative policy board, the court may refer the case
4392-back to the board with instructions to take such evidence as the court
4393-directs. The Aquarion representative policy board may modify its
4394-findings and decision by reason of the additional evidence and shall file
4395-that evidence and any modifications, new findings, or decisions with the
4396-reviewing court. Senate Bill No. 501
4397-
4398-June Sp. Sess., 2024, Public Act No. 24-1 131 of 140
4399-
4400-(f) The review shall be conducted by the court without a jury and
4401-shall be confined to the record. In cases of alleged irregularities in
4402-procedure before the Aquarion representative policy board, not shown
4403-in the record, proof thereon may be taken in the court. The court, upon
4404-request, shall hear oral argument and receive written briefs.
4405-(g) The court shall not substitute its judgment for that of the Aquarion
4406-representative policy board as to the weight of the evidence on
4407-questions of fact. The court shall affirm the decision of the Aquarion
4408-representative policy board unless the court finds that the substantial
4409-rights of the appellant have been prejudiced because the Aquarion
4410-representative policy board's findings, inferences, conclusions, or
4411-decisions are: (1) In violation of constitutional provisions, the general
4412-statutes or the provisions of this or another special act; (2) in excess of
4413-the authority of the Aquarion representative policy board; (3) made
4414-upon unlawful procedure; (4) affected by other error of law; (5) clearly
4415-erroneous in view of the reliable probative, and substantial evidence on
4416-the whole record; or (6) arbitrary or capricious or characterized by abuse
4417-of discretion or clearly unwarranted exercise of discretion. If the court
4418-finds such prejudice, it shall sustain the appeal and, if appropriate, may
4419-render a judgment under subsection (h) of this section or remand the
4420-case for further proceedings.
4421-(h) If a particular Aquarion representative policy board action is
4422-required by law, the court, on sustaining the appeal, may render a
4423-judgment that modifies the Aquarion representative policy board
4424-decision, orders the Aquarion representative policy board action, or
4425-orders the Aquarion representative policy board to take such action as
4426-may be necessary to effect the particular action.
4427-(i) In any case in which an aggrieved party claims that he cannot pay
4428-the costs of an appeal under this section and will thereby be deprived of
4429-a right to which he is entitled, he shall, within the time permitted for
4430-filing the appeal, file with the clerk of the court to which the appeal is to Senate Bill No. 501
4431-
4432-June Sp. Sess., 2024, Public Act No. 24-1 132 of 140
4433-
4434-be taken an application for waiver of payment of such fees, costs and
4435-necessary expenses, including the requirements of bond, if any. After
4436-such hearing as the court determines is necessary, the court shall enter
4437-its judgment on the application, which judgment shall contain a
4438-statement of the facts the court has found, with its conclusions thereon.
4439-The filing of the application for the waiver shall toll the time limits for
4440-the filing of an appeal until such time as a judgment on such application
4441-is entered.
4442-(j) Neither the authority nor the Aquarion representative policy
4443-board shall be construed to be an agency within the scope of chapter 54
4444-of the general statutes.
4445-Sec. 64. (a) Whenever the authority acquires the property and
4446-franchises of any private water company or companies operating a
4447-water supply system within its district, all employees of such company
4448-or companies who are necessary for the operation of the authority,
4449-except senior managerial officers, shall become employees of the
4450-authority and shall be credited by the authority with all rights that have
4451-accrued as of the date of such acquisition with respect to seniority, sick
4452-leave, vacation, insurance and pension benefits in accordance with the
4453-records, personnel policies or labor agreements of the acquired
4454-company or companies.
4455-(b) The authority shall assume and observe all accrued pension
4456-obligations of such acquired company or companies, and members and
4457-beneficiaries of any pension, retirement or other employee benefit
4458-system established by the acquired company or companies shall
4459-continue to have such rights, privileges, benefits, obligations and status
4460-with respect to such established systems as have accrued as of the date
4461-of such acquisition. The authority may enter into agreements with
4462-representatives of its employees relative to the inclusion of its
4463-employees in any applicable state or municipal employee's retirement
4464-plan or plans, and the authority shall constitute a municipality eligible Senate Bill No. 501
4465-
4466-June Sp. Sess., 2024, Public Act No. 24-1 133 of 140
4467-
4468-to participate in such retirement plans. The authority may enter into
4469-agreements with representatives of its employees relative to the transfer
4470-to or the establishment of pension trust funds under the joint control of
4471-such authority and representatives of its employees, and shall have all
4472-powers necessary to maintain and administer such trust funds jointly
4473-with representatives of its employees.
4474-(c) The authority shall assume and observe all labor contracts of such
4475-company or companies in existence at the time of transfer and all
4476-obligations incurred by such contracts regarding wages, salaries, hours,
4477-sick leave and other leave, working conditions, grievance procedures,
4478-collective bargaining and pension or retirement.
4479-(d) The authority shall assume and observe personnel policies of such
4480-company or companies in existence at the time of transfer relating to
4481-personnel not covered by labor contracts, and all obligations incurred
4482-through such personnel policies regarding wages, salaries, hours, sick
4483-leave, vacation, pension and retirement, subject to such modifications
4484-therein as the authority may subsequently adopt, provided such
4485-modifications shall not affect any rights of such employees which have
4486-vested prior to such modification.
4487-(e) Nothing in this section shall prevent the authority from hiring any
4488-senior managerial officers of such company on such terms as it may
4489-determine or be construed to prohibit the authority from exercising the
4490-normal prerogatives of management with respect to such matters as the
4491-promotion, demotion, assignment, transfer or discharge of its
4492-employees, nor shall the authority be bound by any term of any
4493-personnel policy entered into by such company or companies in
4494-anticipation of acquisition by the authority.
4495-Sec. 65. The relations between the authority and its employees with
4496-respect to collective bargaining and the arbitration of labor disputes
4497-shall be governed by sections 7-467 to 7-477, inclusive, of the general Senate Bill No. 501
4498-
4499-June Sp. Sess., 2024, Public Act No. 24-1 134 of 140
4500-
4501-statutes.
4502-Sec. 42. (Effective from passage) Sections 34 to 41, inclusive, of this act
4503-shall not be effective on and after December 31, 2027, unless the Public
4504-Utilities Regulatory Authority approves the South Central Connecticut
4505-Regional Water Authority or the Aquarion Water Authority to own and
4506-operate the Aquarion Water Company, or one or more of its
4507-subsidiaries, by said date.
4508-Sec. 43. (NEW) (Effective October 1, 2024) (a) As used in this section:
4509-(1) "Actions which may significantly affect the environment" has the
4510-same meaning as provided in section 22a-1c of the general statutes, but
4511-does not include any action that (A) is a major federal action under the
4512-National Environmental Policy Act, 42 USC 4321 et seq., as amended
4513-from time to time, (B) is an undertaking under the National Historic
4514-Preservation Act, 54 USC 300101 et seq., as amended from time to time,
4515-(C) affects an archaeological site, or (D) affects a sacred site;
4516-(2) "Archaeological site" has the same meaning as provided in section
4517-10-381 of the general statutes;
4518-(3) "Historic structures and landmarks" has the same meaning as
4519-provided in section 10-410 of the general statutes;
4520-(4) "Sacred site" has the same meaning as provided in section 10-381
4521-of the general statutes;
4522-(5) "Sponsoring agency" has the same meaning as described in
4523-sections 22a-1 to 22a-1h, inclusive, of the general statutes;
4524-(6) "State entity" means a state department, institution or agency
4525-under sections 22a-1 to 22a-1h, inclusive, of the general statutes;
4526-(7) "State funding recipient" means any person that receives funds
4527-from the state to be used for an activity or a sequence of planned Senate Bill No. 501
4528-
4529-June Sp. Sess., 2024, Public Act No. 24-1 135 of 140
4530-
4531-activities that are subject to the process established by sections 22a-1 to
4532-22a-1h, inclusive, of the general statutes; and
4533-(8) "State Historic Preservation Officer" means the individual
4534-appointed by the Governor pursuant to 54 USC 302301(1), as amended
4535-from time to time, to administer the state historic preservation program
4536-in accordance with 54 USC 302303, as amended from time to time.
4537-(b) Whenever a sponsoring agency requests an initial determination
4538-from the State Historic Preservation Officer, in accordance with sections
4539-22a-1 to 22a-1h, inclusive, of the general statutes, as to whether an
4540-individual activity or a sequence of planned activities proposed to be
4541-undertaken by the sponsoring agency, a state entity or a state funding
4542-recipient, as applicable, is within the category of actions which may
4543-significantly affect the environment because such activity or sequence
4544-of activities could have an impact on the state's historic structures and
4545-landmarks, the officer shall:
4546-(1) In making such initial determination, consider all information
4547-provided by the sponsoring agency, state entity or state funding
4548-recipient, as applicable; and
4549-(2) Make such initial determination not later than thirty days after the
4550-officer receives information the officer deems reasonably necessary to
4551-make such initial determination.
4552-(c) If the State Historic Preservation Officer makes an initial
4553-determination that such individual activity or sequence of planned
4554-activities will not have any effect on historic structures and landmarks,
4555-or is not within the category of actions which may significantly affect
4556-the environment because such activity or sequence of activities will not
4557-have an impact on historic structures and landmarks, the officer shall
4558-provide such determination in writing to the sponsoring agency, state
4559-entity or state funding recipient, as applicable. Such written Senate Bill No. 501
4560-
4561-June Sp. Sess., 2024, Public Act No. 24-1 136 of 140
4562-
4563-determination shall constitute a final determination by the officer for the
4564-purposes of this section.
4565-(d) (1) If the State Historic Preservation Officer makes an initial
4566-determination that such individual activity or sequence of planned
4567-activities will have an effect on historic structures and landmarks, or is
4568-within the category of actions which may significantly affect the
4569-environment because such activity or sequence of activities will have an
4570-impact on historic structures and landmarks, the officer shall, in
4571-collaboration with the sponsoring agency, state entity or state funding
4572-recipient, as applicable, propose a prudent or feasible alternative to such
4573-individual activity or sequence of planned activities to avoid such
4574-impact, if such alternative is possible.
4575-(2) If the State Historic Preservation Officer and the sponsoring
4576-agency, state entity or state funding recipient, as applicable, reach an
4577-agreement regarding such alternative, the officer shall provide to such
4578-sponsoring agency, state entity or state funding recipient, as applicable,
4579-a written determination that such alternative (A) will not have any effect
4580-on historic structures and landmarks, or (B) is not within the category of
4581-actions which may significantly affect the environment because such
4582-activity or sequence of activities will not have an impact on historic
4583-structures and landmarks. Such written determination shall constitute a
4584-final determination by the officer for the purposes of this section.
4585-(3) (A) If the State Historic Preservation Officer and the sponsoring
4586-agency, state entity or state funding recipient, as applicable, cannot
4587-reach an agreement regarding such alternative, the officer shall provide
4588-to such sponsoring agency, state entity or state funding recipient, as
4589-applicable, a written determination that such individual activity or
4590-sequence of planned activities (i) will have an effect on historic
4591-structures and landmarks, or (ii) is within the category of actions which
4592-may significantly affect the environment because such activity or
4593-sequence of activities will have an impact on historic structures and Senate Bill No. 501
4594-
4595-June Sp. Sess., 2024, Public Act No. 24-1 137 of 140
4596-
4597-landmarks.
4598-(B) (i) Notwithstanding subsection (c) of section 22a-1b of the general
4599-statutes, after the State Historic Preservation Officer provides a written
4600-determination under subparagraph (A) of this subdivision, the officer
4601-shall, in collaboration with the sponsoring agency, state entity or state
4602-funding recipient, as applicable, propose a mitigation plan requiring
4603-such sponsoring agency, state entity or state funding recipient, as
4604-applicable, to mitigate such impact.
4605-(ii) The sponsoring agency, state entity or state funding recipient, as
4606-applicable, shall, to the extent possible, submit to the State Historic
4607-Preservation Officer all pertinent information regarding such individual
4608-activity or sequence of planned activities that may affect such mitigation
4609-plan. Such information shall be considered by the officer in the
4610-development of the mitigation plan.
4611-(iii) In establishing the mitigation plan, the State Historic
4612-Preservation Officer shall consult with the Commissioner of Economic
4613-and Community Development, or the commissioner's designee, about
4614-the economic impact of (I) the individual activity or sequence of planned
4615-activities proposed to be undertaken by the sponsoring agency, state
4616-entity or state funding recipient, as applicable, and (II) the mitigation
4617-plan. Any information provided by the commissioner during such
4618-consultation shall be considered by the officer in the development of the
4619-mitigation plan.
4620-(iv) Not later than forty-five days after the State Historic Preservation
4621-Officer receives the information submitted under subparagraph (B)(ii)
4622-of this subdivision, the officer shall memorialize the mitigation plan in
4623-a proposed mitigation agreement that may be executed by the
4624-sponsoring agency, state entity or state funding recipient, as applicable.
4625-If the sponsoring agency, state entity or state funding recipient, as
4626-applicable, executes such proposed mitigation agreement, the officer Senate Bill No. 501
4627-
4628-June Sp. Sess., 2024, Public Act No. 24-1 138 of 140
4629-
4630-shall also execute such proposed mitigation agreement. The execution
4631-of such mitigation agreement shall constitute (I) a determination by the
4632-officer that the officer is satisfied the effect on historic structures and
4633-landmarks will be mitigated pursuant to the terms of such mitigation
4634-agreement, and (II) a final determination by the officer for the purposes
4635-of this section.
4636-(v) At the time the State Historic Preservation Officer provides the
4637-mitigation agreement proposed under subparagraph (B)(iv) of this
4638-subdivision to the sponsoring agency, state entity or state funding
4639-recipient, as applicable, the officer shall notify such sponsoring agency,
4640-state entity or state funding recipient, as applicable, that a request may
4641-be submitted in accordance with the provisions of subdivision (1) of
4642-subsection (e) of this section to the Commissioner of Economic and
4643-Community Development to review such proposed mitigation
4644-agreement.
4645-(e) (1) If the sponsoring agency, state entity or state funding recipient,
4646-as applicable, declines to execute the mitigation agreement proposed
4647-under subparagraph (B)(iv) of subdivision (3) of subsection (d) of this
4648-section, such sponsoring agency, state entity or state funding recipient,
4649-as applicable, may submit, not later than fifteen days after the State
4650-Historic Preservation Officer provides such proposed mitigation
4651-agreement to such sponsoring agency, state entity or state funding
4652-recipient, as applicable, a request to the Commissioner of Economic and
4653-Community Development to review the proposed mitigation agreement
4654-and make recommendations to revise such proposed mitigation
4655-agreement. Such request shall be in the form and manner prescribed by
4656-the commissioner and may include a request for a conference with the
4657-commissioner, the officer, the sponsoring agency, the state entity or the
4658-state funding recipient, as applicable, and any other interested party.
4659-(2) (A) Not later than thirty days after receiving such request, the
4660-commissioner shall (i) if such conference was requested, hold such Senate Bill No. 501
4661-
4662-June Sp. Sess., 2024, Public Act No. 24-1 139 of 140
4663-
4664-conference, and (ii) make recommendations, if any, for revisions to the
4665-proposed mitigation agreement. If such revisions are recommended, the
4666-commissioner's review pursuant to this subsection shall be concluded
4667-and the State Historic Preservation Officer shall include such revisions
4668-in a revised mitigation agreement. Such revised mitigation agreement
4669-may be executed by the sponsoring agency, state entity or state funding
4670-recipient, as applicable. If the sponsoring agency, state entity or state
4671-funding recipient, as applicable, executes such revised mitigation
4672-agreement, the officer shall also execute such revised mitigation
4673-agreement. The execution of such revised mitigation agreement shall
4674-constitute (I) a determination by the officer that the officer is satisfied
4675-the effect on historic structures and landmarks will be mitigated
4676-pursuant to the terms of such revised mitigation agreement, and (II) a
4677-final determination by the officer for the purposes of this section.
4678-(B) If the commissioner makes no recommendations for revisions to
4679-the mitigation agreement, the commissioner's review pursuant to this
4680-subsection shall be concluded. The sponsoring agency, state entity or
4681-state funding recipient, as applicable, may subsequently elect to execute
4682-the mitigation agreement proposed by the State Historic Preservation
4683-Officer under subparagraph (B)(iv) of subdivision (3) of subsection (d)
4684-of this section. If the sponsoring agency, state entity or state funding
4685-recipient, as applicable, executes such proposed mitigation agreement,
4686-the officer shall also execute such proposed mitigation agreement. The
4687-execution of such mitigation agreement shall constitute (i) a
4688-determination by the officer that the officer is satisfied the effect on
4689-historic structures and landmarks will be mitigated pursuant to the
4690-terms of such mitigation agreement, and (ii) a final determination by the
4691-officer for the purposes of this section.
4692-(f) If the State Historic Preservation Officer proposes a mitigation
4693-plan pursuant to subparagraph (B)(i) of subdivision (3) of subsection (d)
4694-of this section but a mitigation agreement is not executed, the Senate Bill No. 501
4695-
4696-June Sp. Sess., 2024, Public Act No. 24-1 140 of 140
4697-
4698-sponsoring agency shall conduct an early public scoping process in
4699-accordance with subsection (b) of section 22a-1b of the general statutes.
4700-(g) Not later than January first, annually, the State Historic
4701-Preservation Officer shall post on the Department of Economic and
4702-Community Development's Internet web site all mitigation agreements
4703-executed during the preceding fiscal year.
4704-Approved July 1, 2024
42+Section 1. Subdivision (2) of subsection (a) of section 14-33 of the 2024 1
43+supplement to the general statutes is repealed and the following is 2
44+substituted in lieu thereof (Effective July 1, 2024, and applicable to 3
45+assessment years commencing on or after October 1, 2024): 4
46+(2) For assessment years commencing on or after October 1, 2024, if 5
47+any property tax, or any installment thereof, laid by any city, town, 6
48+borough or other taxing district upon a motor vehicle remains unpaid, 7
49+[regardless of whether such motor vehicle is classified on the grand list 8
50+Bill No.
51+
52+
53+
54+LCO No. 6185 2 of 137
55+
56+as a registered motor vehicle or personal property pursuant to section 9
57+12-41,] the tax collector of such city, town, borough or other taxing 10
58+district shall notify the Commissioner of Motor Vehicles of such 11
59+delinquency in accordance with subsection (e) of this section and 12
60+guidelines and procedures established by the commissioner. The 13
61+commissioner shall not issue registration for such motor vehicle for the 14
62+next registration period if, according to the commissioner's records, it is 15
63+then owned by the person against whom such tax has been assessed or 16
64+by any person to whom such vehicle has not been transferred by bona 17
65+fide sale. Unless notice has been received by the commissioner under 18
66+the provisions of section 14-33a, no such registration shall be issued 19
67+until the commissioner receives notification that the tax obligation has 20
68+been legally discharged; nor shall the commissioner register any other 21
69+motor vehicle, snowmobile, all-terrain vehicle or vessel in the name of 22
70+such person, except that the commissioner may continue to register 23
71+other vehicles owned by a leasing or rental firm licensed pursuant to 24
72+section 14-15, and may issue such registration to any private owner of 25
73+three or more paratransit vehicles in direct proportion to the percentage 26
74+of total tax due on such vehicles which has been paid and notice of 27
75+payment on which has been received. The Commissioner of Motor 28
76+Vehicles may immediately suspend or cancel all motor vehicle, 29
77+snowmobile, all-terrain vehicle or vessel registrations issued in the 30
78+name of any person (A) who has been reported as delinquent and whose 31
79+registration was renewed through an error or through the production of 32
80+false evidence that the delinquent tax on any motor vehicle had been 33
81+paid, or (B) who has been reported by a tax collector as having paid a 34
82+property tax on a motor vehicle with a check which was dishonored by 35
83+a bank and such tax remains unpaid. 36
84+Sec. 2. Subsection (b) of section 12-71d of the 2024 supplement to the 37
85+general statutes is repealed and the following is substituted in lieu 38
86+thereof (Effective July 1, 2024, and applicable to assessment years commencing 39
87+on or after October 1, 2024): 40
88+(b) Not later than October 1, 2024, and annually thereafter, the 41
89+Bill No.
90+
91+
92+
93+LCO No. 6185 3 of 137
94+
95+Secretary of the Office of Policy and Management shall, in consultation 42
96+with the [Connecticut Association of Assessing Officers, recommend a 43
97+schedule of motor vehicle plate classes] Department of Motor Vehicles, 44
98+establish guidelines for the valuation of motor vehicles, which shall be 45
99+used by assessors in each municipality in determining the 46
100+[classification] use of motor vehicles for purposes of property taxation. 47
101+The value for each motor vehicle shall be determined by the schedule of 48
102+depreciation described in subdivision (7) of subsection (b) of section 12-49
103+63, as amended by this act. The determination of the assessed value of 50
104+any vehicle for which a manufacturer's suggested retail price cannot be 51
105+obtained for purposes of the property tax assessment list in any 52
106+municipality shall be the responsibility of the assessor in such 53
107+municipality, in consultation with the Connecticut Association of 54
108+Assessing Officers. Any appeal from the findings of assessors 55
109+concerning motor vehicle values shall be made in accordance with 56
110+provisions related to such appeals under this chapter. 57
111+Sec. 3. Subsection (b) of section 12-63 of the 2024 supplement to the 58
112+general statutes is repealed and the following is substituted in lieu 59
113+thereof (Effective July 1, 2024, and applicable to assessment years commencing 60
114+on or after October 1, 2024): 61
115+(b) (1) For the purposes of this subsection, (A) "electronic data 62
116+processing equipment" means computers, printers, peripheral computer 63
117+equipment, bundled software and any computer-based equipment 64
118+acting as a computer, as defined in Section 168 of the Internal Revenue 65
119+Code of 1986, or any subsequent corresponding internal revenue code 66
120+of the United States, as from time to time amended; (B) "leased personal 67
121+property" means tangible personal property which is the subject of a 68
122+written or oral lease or loan on the assessment date, or any such 69
123+property which has been so leased or loaned by the then current owner 70
124+of such property for three or more of the twelve months preceding such 71
125+assessment date; and (C) "original selling price" means the price at 72
126+which tangible personal property is most frequently sold in the year that 73
127+it was manufactured. 74
128+Bill No.
129+
130+
131+
132+LCO No. 6185 4 of 137
133+
134+(2) Any municipality may, by ordinance, adopt the provisions of this 75
135+subsection to be applicable for the assessment year commencing 76
136+October first of the assessment year in which a revaluation of all real 77
137+property required pursuant to section 12-62 is performed in such 78
138+municipality, and for each assessment year thereafter. If so adopted, the 79
139+present true and actual value of tangible personal property, other than 80
140+motor vehicles, shall be determined in accordance with the provisions 81
141+of this subsection. If such property is purchased, its true and actual 82
142+value shall be established in relation to the cost of its acquisition, 83
143+including transportation and installation, and shall reflect depreciation 84
144+in accordance with the schedules set forth in subdivisions (3) to (6), 85
145+inclusive, of this subsection. If such property is developed and produced 86
146+by the owner of such property for a purpose other than wholesale or 87
147+retail sale or lease, its true and actual value shall be established in 88
148+relation to its cost of development, production and installation and shall 89
149+reflect depreciation in accordance with the schedules provided in 90
150+subdivisions (3) to (6), inclusive, of this subsection. The provisions of 91
151+this subsection shall not apply to property owned by a public service 92
152+company, as defined in section 16-1. 93
153+(3) The following schedule of depreciation shall be applicable with 94
154+respect to electronic data processing equipment: 95
155+(A) Group I: Computer and peripheral hardware, including, but not 96
156+limited to, personal computers, workstations, terminals, storage 97
157+devices, printers, scanners, computer peripherals and networking 98
158+equipment: 99
159+T1 Depreciated Value
160+T2 As Percentage
161+T3 Assessment Year Of Acquisition
162+T4 Following Acquisition Cost Basis
163+T5 First year Seventy per cent
164+T6 Second year Forty per cent
165+Bill No.
166+
167+
168+
169+LCO No. 6185 5 of 137
170+
171+T7 Third year Twenty per cent
172+T8 Fourth year and thereafter Ten per cent
173+
174+(B) Group II: Other hardware, including, but not limited to, mini-100
175+frame and main-frame systems with an acquisition cost of more than 101
176+twenty-five thousand dollars: 102
177+T9 Depreciated Value
178+T10 As Percentage
179+T11 Assessment Year Of Acquisition
180+T12 Following Acquisition Cost Basis
181+T13 First year Ninety per cent
182+T14 Second year Sixty per cent
183+T15 Third year Forty per cent
184+T16 Fourth year Twenty per cent
185+T17 Fifth year and thereafter Ten per cent
186+
187+(4) The following schedule of depreciation shall be applicable with 103
188+respect to copiers, facsimile machines, medical testing equipment, and 104
189+any similar type of equipment that is not specifically defined as 105
190+electronic data processing equipment, but is considered by the assessor 106
191+to be technologically advanced: 107
192+T18 Depreciated Value
193+T19 As Percentage
194+T20 Assessment Year Of Acquisition
195+T21 Following Acquisition Cost Basis
196+T22 First year Ninety-five per cent
197+T23 Second year Eighty per cent
198+T24 Third year Sixty per cent
199+T25 Fourth year Forty per cent
200+T26 Fifth year and thereafter Twenty per cent
201+
202+(5) The following schedule of depreciation shall be applicable with 108
203+respect to machinery and equipment used in the manufacturing process: 109
204+Bill No.
205+
206+
207+
208+LCO No. 6185 6 of 137
209+
210+T27 Depreciated Value
211+T28 As Percentage
212+T29 Assessment Year Of Acquisition
213+T30 Following Acquisition Cost Basis
214+T31 First year Ninety per cent
215+T32 Second year Eighty per cent
216+T33 Third year Seventy per cent
217+T34 Fourth year Sixty per cent
218+T35 Fifth year Fifty per cent
219+T36 Sixth year Forty per cent
220+T37 Seventh year Thirty per cent
221+T38 Eighth year and thereafter Twenty per cent
222+
223+(6) The following schedule of depreciation shall be applicable with 110
224+respect to all tangible personal property other than that described in 111
225+subdivisions (3) to (5), inclusive, and subdivision (7) of this subsection: 112
226+T39 Depreciated Value
227+T40 As Percentage
228+T41 Assessment Year Of Acquisition
229+T42 Following Acquisition Cost Basis
230+T43 First year Ninety-five per cent
231+T44 Second year Ninety per cent
232+T45 Third year Eighty per cent
233+T46 Fourth year Seventy per cent
234+T47 Fifth year Sixty per cent
235+T48 Sixth year Fifty per cent
236+T49 Seventh year Forty per cent
237+T50 Eighth year and thereafter Thirty per cent
238+
239+(7) For assessment years commencing on or after October 1, 2024, the 113
240+following schedule of depreciation shall be applicable with respect to 114
241+motor vehicles based on the manufacturer's suggested retail price of 115
242+such motor vehicles, provided no motor vehicle shall be [valued] 116
243+Bill No.
244+
245+
246+
247+LCO No. 6185 7 of 137
248+
249+assessed at an amount less than five hundred dollars: 117
250+T51 Percentage of
251+T52 Manufacturer's Suggested
252+T53 Age of Vehicle Retail Price
253+T54 Up to year one [Eighty] Eighty-five per cent
254+T55 Year two [Seventy-five] Eighty per cent
255+T56 Year three [Seventy] Seventy-five per cent
256+T57 Year four [Sixty-five] Seventy per cent
257+T58 Year five [Sixty] Sixty-five per cent
258+T59 Year six [Fifty-five] Sixty per cent
259+T60 Year seven [Fifty] Fifty-five per cent
260+T61 Year eight [Forty-five] Fifty per cent
261+T62 Year nine [Forty] Forty-five per cent
262+T63 Year ten [Thirty-five] Forty per cent
263+T64 Year eleven [Thirty] Thirty-five per cent
264+T65 Year twelve [Twenty-five] Thirty per cent
265+T66 Year thirteen [Twenty] Twenty-five per cent
266+T67 Year fourteen [Fifteen] Twenty per cent
267+T68 Years fifteen to nineteen [Ten] Fifteen per cent
268+T69 Years twenty and beyond Not less than
269+T70 five hundred dollars
270+
271+(8) The present true and actual value of leased personal property 118
272+other than motor vehicles shall be determined in accordance with the 119
273+provisions of this subdivision. Such value for any assessment year shall 120
274+be established in relation to the original selling price for self-121
275+manufactured property or acquisition cost for acquired property and 122
276+shall reflect depreciation in accordance with the schedules provided in 123
277+subdivisions (3) to (6), inclusive, of this subsection. If the assessor is 124
278+unable to determine the original selling price of leased personal 125
279+property other than a motor vehicle, the present true and actual value 126
280+thereof shall be its current selling price. 127
281+(9) With respect to any personal property which is prohibited by law 128
282+Bill No.
283+
284+
285+
286+LCO No. 6185 8 of 137
287+
288+from being sold, the present true and actual value of such property shall 129
289+be established with respect to such property's original manufactured 130
290+cost increased by a ratio the numerator of which is the total proceeds 131
291+from the manufacturer's salable equipment sold and the denominator of 132
292+which is the total cost of the manufacturer's salable equipment sold. 133
293+Such value shall then be depreciated in accordance with the appropriate 134
294+schedule in this subsection. 135
295+(10) The schedules of depreciation set forth in subdivisions (3) to (6), 136
296+inclusive, of this subsection shall not be used with respect to motor 137
297+vehicles, videotapes, horses or other taxable livestock or electric 138
298+cogenerating equipment. 139
299+(11) If the assessor determines that the value of any item of personal 140
300+property, other than a motor vehicle valued pursuant to subdivision (7) 141
301+of this subsection, produced by the application of the schedules set forth 142
302+in this subsection does not accurately reflect the present true and actual 143
303+value of such item, the assessor shall adjust such value to reflect the 144
304+present true and actual value of such item. 145
305+(12) For assessment years commencing on or after October 1, 2024, for 146
306+any commercial motor vehicle (A) that is modified, or (B) to which is 147
307+affixed an attachment designed, manufactured or modified to be affixed 148
308+to such motor vehicle, the assessor shall determine whether to value 149
309+such motor vehicle and any such modifications or attachments to such 150
310+motor vehicle pursuant to subdivision (7) of this subsection or section 151
311+12-41, as amended by this act. The assessor shall determine valuation of 152
312+any modifications or attachments to such motor vehicle based on 153
313+whether such modifications or attachments are intended to be 154
314+permanently affixed to such motor vehicle. 155
315+[(12)] (13) Nothing in this subsection shall prevent any taxpayer from 156
316+appealing any (A) assessment made pursuant to this subsection if such 157
317+assessment does not accurately reflect the present true and actual value 158
318+of any item of such taxpayer's personal property, or (B) determination 159
319+Bill No.
320+
321+
322+
323+LCO No. 6185 9 of 137
324+
325+of the manufacturer's suggested retail price used to value a motor 160
326+vehicle pursuant to this subsection. 161
327+Sec. 4. Subsections (b) and (c) of section 12-41 of the 2024 supplement 162
328+to the general statutes are repealed and the following is substituted in 163
329+lieu thereof (Effective July 1, 2024, and applicable to assessment years 164
330+commencing on or after October 1, 2024): 165
331+(b) [(1) For assessment years commencing prior to October 1, 2024, 166
332+no] No person required by law to file an annual declaration of personal 167
333+property shall include in such declaration motor vehicles that are 168
334+registered [in the office of the state Commissioner] with the Department 169
335+of Motor Vehicles. With respect to any vehicle subject to taxation in a 170
336+town other than the town in which such vehicle is registered, pursuant 171
337+to section 12-71, as amended by this act, information concerning such 172
338+vehicle may be included in a declaration filed pursuant to this section or 173
339+section 12-43, or on a report filed pursuant to section 12-57a. 174
340+[(2) For assessment years commencing on or after October 1, 2024, 175
341+any person required to file an annual declaration of tangible personal 176
342+property shall include in such declaration the motor vehicle listing, 177
343+pursuant to subdivision (2) of subsection (f) of section 12-71, of any 178
344+motor vehicle owned by such person. If, after the annual deadline for 179
345+filing a declaration, a motor vehicle is deemed personal property by the 180
346+assessor, such motor vehicle shall be added to the declaration of the 181
347+owner of such vehicle or included on a new declaration if no declaration 182
348+was submitted in the prior year. The value of the motor vehicle shall be 183
349+determined pursuant to section 12-63. If applicable, the value of the 184
350+motor vehicle for the current assessment year shall be prorated pursuant 185
351+to section 12-71b, and shall not be considered omitted property, as 186
352+defined in section 12-53, or subject to a penalty pursuant to subsection 187
353+(f) of this section.] 188
354+(c) The annual declaration of the tangible personal property owned 189
355+by such person on the assessment date, shall include, but is not limited 190
356+Bill No.
357+
358+
359+
360+LCO No. 6185 10 of 137
361+
362+to, the following property: Machinery used in mills and factories, cables, 191
363+wires, poles, underground mains, conduits, pipes and other fixtures of 192
364+water, gas, electric and heating companies, leasehold improvements 193
365+classified as other than real property and furniture and fixtures of stores, 194
366+offices, hotels, restaurants, taverns, halls, factories and manufacturers. 195
367+Tangible personal property does not include a sign placed on a property 196
368+indicating that the property is for sale or lease. On and after October 1, 197
369+2024, tangible personal property shall include nonpermanent 198
370+modifications and attachments to commercial motor vehicles. [listed on 199
371+the schedule of motor vehicle plate classes recommended pursuant to 200
372+section 12-71d.] Commercial or financial information in any declaration 201
373+filed under this section [, except for commercial or financial information 202
374+which concerns motor vehicles,] shall not be open for public inspection 203
375+but may be disclosed to municipal officers for tax collection purposes. 204
376+Sec. 5. Subsection (a) of section 12-53 of the 2024 supplement to the 205
377+general statutes is repealed and the following is substituted in lieu 206
378+thereof (Effective July 1, 2024, and applicable to assessment years commencing 207
379+on or after October 1, 2024): 208
380+(a) For purposes of this section: 209
381+(1) "Omitted property" means property for which complete 210
382+information is not included in the declaration required to be filed by law 211
383+with respect to (A) the total number and type of all items subject to 212
384+taxation, or (B) the true original cost and year acquired of all such items; 213
385+[, or (C) on or after October 1, 2024, the manufacturer's suggested retail 214
386+price of a motor vehicle plus any applicable after-market alterations to 215
387+such motor vehicle,] 216
388+(2) ["books"] "Books", "papers", "documents" and "other records" 217
389+includes, but is not limited to, federal tax forms relating to the 218
390+acquisition and cost of fixed assets, general ledgers, balance sheets, 219
391+disbursement ledgers, fixed asset and depreciation schedules, financial 220
392+statements, invoices, operating expense reports, capital and operating 221
393+Bill No.
394+
395+
396+
397+LCO No. 6185 11 of 137
398+
399+leases, conditional sales agreements and building or leasehold ledgers; 222
400+[,] and 223
401+(3) ["designee of an assessor"] "Designee of an assessor" means a 224
402+Connecticut municipal assessor certified in accordance with subsection 225
403+(b) of section 12-40a, a certified public accountant, a revaluation 226
404+company certified in accordance with section 12-2c for the valuation of 227
405+personal property, or an individual certified as a revaluation company 228
406+employee in accordance with section 12-2b for the valuation of personal 229
407+property. 230
408+Sec. 6. Subdivision (2) of subsection (a) of section 12-71 of the 2024 231
409+supplement to the general statutes is repealed and the following is 232
410+substituted in lieu thereof (Effective July 1, 2024, and applicable to 233
411+assessment years commencing on or after October 1, 2024): 234
412+(2) For assessment years commencing on or after October 1, 2024, 235
413+goods, chattels and effects or any interest therein, including any interest 236
414+in a leasehold improvement classified as other than real property, 237
415+belonging to any person who is a resident in this state, shall be listed for 238
416+purposes of property tax in the town where such person resides, subject 239
417+to the provisions of sections 12-41, as amended by this act, 12-43 and 12-240
418+59. Any such property belonging to any nonresident shall be listed for 241
419+purposes of property tax as provided in section 12-43. Motor vehicles 242
420+shall be listed for purposes of the property tax as provided in subsection 243
421+(f) of this section. 244
422+Sec. 7. Subdivision (2) of subsection (f) of section 12-71 of the 2024 245
423+supplement to the general statutes is repealed and the following is 246
424+substituted in lieu thereof (Effective July 1, 2024, and applicable to 247
425+assessment years commencing on or after October 1, 2024): 248
426+[(2) (A) For assessment years commencing on or after October 1, 2024, 249
427+each municipality shall list motor vehicles registered and classified in 250
428+accordance with section 12-71d, and such motor vehicles shall be valued 251
429+in the same manner as motor vehicles valued pursuant to section 12-63.] 252
430+Bill No.
431+
432+
433+
434+LCO No. 6185 12 of 137
435+
436+[(B)] (2) For assessment years commencing on or after October 1, 2024, 253
437+any unregistered motor vehicle or motor vehicle that is not used or 254
438+capable of being used that is located in a municipality in this state, shall 255
439+be listed and valued in the [manner described in subparagraph (A) of 256
440+this subdivision] same manner as motor vehicles valued pursuant to 257
441+section 12-63, as amended by this act. 258
442+Sec. 8. Section 12-71b of the 2024 supplement to the general statutes 259
443+is repealed and the following is substituted in lieu thereof (Effective July 260
444+1, 2024, and applicable to assessment years commencing on or after October 1, 261
445+2024): 262
446+(a) (1) For assessment years commencing prior to October 1, 2024, any 263
447+person who owns a motor vehicle which is not registered with the 264
448+Commissioner of Motor Vehicles on the first day of October in any 265
449+assessment year and which is registered subsequent to said first day of 266
450+October but prior to the first day of August in such assessment year shall 267
451+be liable for the payment of property tax with respect to such motor 268
452+vehicle in the town where such motor vehicle is subject to property tax, 269
453+in an amount as hereinafter provided, on the first day of January 270
454+immediately subsequent to the end of such assessment year. The 271
455+property tax payable with respect to such motor vehicle on said first day 272
456+of January shall be in the amount which would be payable if such motor 273
457+vehicle had been entered in the taxable list of the town where such 274
458+motor vehicle is subject to property tax on the first day of October in 275
459+such assessment year if such registration occurs prior to the first day of 276
460+November. If such registration occurs on or after the first day of 277
461+November but prior to the first day of August in such assessment year, 278
462+such tax shall be a pro rata portion of the amount of tax payable if such 279
463+motor vehicle had been entered in the taxable list of such town on 280
464+October first in such assessment year to be determined (A) by a ratio, 281
465+the numerator of which shall be the number of months from the date of 282
466+such registration, including the month in which registration occurs, to 283
467+the first day of October next succeeding and the denominator of which 284
468+shall be twelve, or (B) upon the affirmative vote of the legislative body 285
469+Bill No.
470+
471+
472+
473+LCO No. 6185 13 of 137
474+
475+of the municipality, by a ratio the numerator of which shall be the 286
476+number of days from the date of such registration, including the day on 287
477+which the registration occurs, to the first day of October next succeeding 288
478+and the denominator of which shall be three hundred sixty-five. For 289
479+purposes of this section the term "assessment year" means the period of 290
480+twelve full months commencing with October first each year. 291
481+(2) For assessment years commencing on or after October 1, 2024, any 292
482+[person who owns a] motor vehicle [which] that is not registered with 293
483+the Commissioner of Motor Vehicles on the first day of October in any 294
484+assessment year and [which] that is registered subsequent to said first 295
485+day of October but prior to the [first day of April] last day of September 296
486+in such assessment year shall be added to the grand list by the assessor, 297
487+and the owner of such motor vehicle shall be liable for the payment of 298
488+property tax with respect to such motor vehicle in the town where such 299
489+motor vehicle is subject to property tax, in an amount as hereinafter 300
490+provided. [, on the first day of July in such assessment year. Any person 301
491+who owns a motor vehicle which is registered with the Commissioner 302
492+of Motor Vehicles on or after the first day of April in any assessment 303
493+year but prior to the first day of October next succeeding shall be liable 304
494+for the payment of property tax with respect to such motor vehicle in 305
495+the town where such motor vehicle is subject to property tax, in an 306
496+amount hereinafter provided, on the first day of January immediately 307
497+subsequent to the end of such assessment year.] The property tax 308
498+payable with respect to a motor vehicle described in this subdivision 309
499+shall be in the amount [which] that would be payable if such motor 310
500+vehicle had been entered into the taxable list of the town where such 311
501+motor vehicle is subject to property tax on the first day of October in 312
502+such assessment year if such registration occurs prior to the first day of 313
503+November. If such registration occurs on or after the first day of 314
504+November but prior to the first day of October next succeeding, such tax 315
505+shall be a pro rata portion of the amount of tax payable if such motor 316
506+vehicle had been entered in the taxable list of such town on October first 317
507+in such assessment year to be determined (A) by a ratio, the numerator 318
508+Bill No.
509+
510+
511+
512+LCO No. 6185 14 of 137
513+
514+of which shall be the number of months from the date of such 319
515+registration, including the month in which registration occurs, to the 320
516+first day of October next succeeding and the denominator of which shall 321
517+be twelve, or (B) upon the affirmative vote of the legislative body of the 322
518+municipality, by a ratio the numerator of which shall be the number of 323
519+days from the date of such registration, including the day on which the 324
520+registration occurs, to the first day of October next succeeding and the 325
521+denominator of which shall be three hundred sixty-five. 326
522+(b) (1) For assessment years commencing prior to October 1, 2024, 327
523+whenever any person who owns a motor vehicle which has been entered 328
524+in the taxable list of the town where such motor vehicle is subject to 329
525+property tax in any assessment year and who, subsequent to the first 330
526+day of October in such assessment year but prior to the first day of 331
527+August in such assessment year, replaces such motor vehicle with 332
528+another motor vehicle, hereinafter referred to as the replacement 333
529+vehicle, which vehicle may be in a different classification for purposes 334
530+of registration than the motor vehicle replaced, and provided one of the 335
531+following conditions is applicable with respect to the motor vehicle 336
532+replaced: (A) The unexpired registration of the motor vehicle replaced 337
533+is transferred to the replacement vehicle, (B) the motor vehicle replaced 338
534+was stolen or totally damaged and proof concerning such theft or total 339
535+damage is submitted to the assessor in such town, or (C) the motor 340
536+vehicle replaced is sold by such person within forty-five days 341
537+immediately prior to or following the date on which such person 342
538+acquires the replacement vehicle, such person shall be liable for the 343
539+payment of property tax with respect to the replacement vehicle in the 344
540+town in which the motor vehicle replaced is subject to property tax, in 345
541+an amount as hereinafter provided, on the first day of January 346
542+immediately subsequent to the end of such assessment year. If the 347
543+replacement vehicle is replaced by such person with another motor 348
544+vehicle prior to the first day of August in such assessment year, the 349
545+replacement vehicle shall be subject to property tax as provided in this 350
546+subsection and such other motor vehicle replacing the replacement 351
547+Bill No.
548+
549+
550+
551+LCO No. 6185 15 of 137
552+
553+vehicle, or any motor vehicle replacing such other motor vehicle in such 352
554+assessment year, shall be deemed to be the replacement vehicle for 353
555+purposes of this subsection and shall be subject to property tax as 354
556+provided herein. The property tax payable with respect to the 355
557+replacement vehicle on said first day of January shall be the amount by 356
558+which (i) is in excess of (ii) as follows: (i) The property tax which would 357
559+be payable if the replacement vehicle had been entered in the taxable list 358
560+of the town in which the motor vehicle replaced is subject to property 359
561+tax on the first day of October in such assessment year if such 360
562+registration occurs prior to the first day of November, however if such 361
563+registration occurs on or after the first day of November but prior to the 362
564+first day of August in such assessment year, such tax shall be a pro rata 363
565+portion of the amount of tax payable if such motor vehicle had been 364
566+entered in the taxable list of such town on October first in such 365
567+assessment year to be determined by a ratio, the numerator of which 366
568+shall be the number of months from the date of such registration, 367
569+including the month in which registration occurs, to the first day of 368
570+October next succeeding and the denominator of which shall be twelve, 369
571+provided if such person, on said first day of October, was entitled to any 370
572+exemption under section 12-81, as amended by this act, which was 371
573+allowed in the assessment of the motor vehicle replaced, such 372
574+exemption shall be allowed for purposes of determining the property 373
575+tax payable with respect to the replacement vehicle as provided herein; 374
576+(ii) the property tax payable by such person with respect to the motor 375
577+vehicle replaced, provided if the replacement vehicle is registered 376
578+subsequent to the thirty-first day of October but prior to the first day of 377
579+August in such assessment year such property tax payable with respect 378
580+to the motor vehicle replaced shall, for purposes of the computation 379
581+herein, be deemed to be a pro rata portion of such property tax to be 380
582+prorated in the same manner as the amount of tax determined under (i) 381
583+above. 382
584+(2) For assessment years commencing on or after October 1, 2024, 383
585+whenever any person who owns a motor vehicle which has been entered 384
586+Bill No.
587+
588+
589+
590+LCO No. 6185 16 of 137
591+
592+in the taxable list of the town where such motor vehicle is subject to 385
593+property tax in any assessment year and who, subsequent to the first 386
594+day of October in such assessment year but prior to the [first day of 387
595+April] last day of September in such assessment year, replaces such 388
596+motor vehicle with another motor vehicle, hereinafter referred to as the 389
597+replacement vehicle, which vehicle may be in a different classification 390
598+for purposes of registration than the motor vehicle replaced, and 391
599+provided one of the following conditions is applicable with respect to 392
600+the motor vehicle replaced: (A) The unexpired registration of the motor 393
601+vehicle replaced is transferred to the replacement vehicle, (B) the motor 394
602+vehicle replaced was stolen or totally damaged and proof concerning 395
603+such theft or total damage is submitted to the assessor in such town, or 396
604+(C) the motor vehicle replaced is sold by such person within forty-five 397
605+days immediately prior to or following the date on which such person 398
606+acquires the replacement vehicle, such motor vehicle shall be added by 399
607+the assessor to the taxable grand list and such person shall be liable for 400
608+the payment of property tax with respect to the replacement vehicle in 401
609+the town in which the motor vehicle replaced is subject to property tax 402
610+pursuant to subdivision [(4)] (3) of this subsection. [, on the first day of 403
611+July in such assessment year.] If a replacement vehicle is replaced by the 404
612+owner of such replacement vehicle prior to the first day of October next 405
613+succeeding such assessment year, the replacement vehicle shall be 406
614+added by the assessor to the taxable grand list and subject to property 407
615+tax as provided in this subdivision. [and such other] Any motor vehicle 408
616+replacing [the] a replacement vehicle, or any motor vehicle replacing 409
617+such other motor vehicle in such assessment year, shall be deemed to be 410
618+the replacement vehicle for purposes of this subdivision. 411
619+[(3) For assessment years commencing on or after October 1, 2024, 412
620+whenever any person who owns a motor vehicle which has been entered 413
621+into the taxable list of the town where such motor vehicle is subject to 414
622+property tax in any assessment year and who, on or after the first day of 415
623+April of such assessment year but prior to the first day of October next 416
624+succeeding, replaces such motor vehicle with another motor vehicle, 417
625+Bill No.
626+
627+
628+
629+LCO No. 6185 17 of 137
630+
631+hereinafter referred to as the replacement vehicle, which vehicle may be 418
632+in a different classification for purposes of registration than the motor 419
633+vehicle replaced, and provided one of the following conditions is 420
634+applicable with respect to the motor vehicle replaced: (A) The unexpired 421
635+registration of the motor vehicle replaced is transferred to the 422
636+replacement vehicle, (B) the motor vehicle replaced was stolen or totally 423
637+damaged and proof concerning such theft or total damage is submitted 424
638+to the assessor in such town, or (C) the motor vehicle replaced is sold by 425
639+such person within forty-five days immediately prior to or following the 426
640+date on which such person acquires the replacement vehicle, such 427
641+person shall be liable for the payment of property tax with respect to the 428
642+replacement vehicle in the town in which the motor vehicle replaced is 429
643+subject to property tax pursuant to subdivision (4) of this subsection, on 430
644+the first day of January immediately succeeding such assessment year. 431
645+If a replacement vehicle is replaced by the owner of such replacement 432
646+vehicle prior to the first day of October next succeeding such assessment 433
647+year, the replacement vehicle shall be subject to property tax as 434
648+provided in this subdivision and such other motor vehicle replacing the 435
649+replacement vehicle, or any motor vehicle replacing such other motor 436
650+vehicle in such assessment year, shall be deemed to be the replacement 437
651+vehicle for purposes of this subdivision.] 438
652+[(4)] (3) The property tax payable with respect to a replacement 439
653+vehicle described in subdivision (2) [or (3)] of this subsection shall be 440
654+the amount by which (A) is in excess of (B) as follows: (A) The property 441
655+tax which would be payable if the replacement vehicle had been entered 442
656+in the taxable list of the town in which the motor vehicle replaced is 443
657+subject to property tax on the first day of October in such assessment 444
658+year if such registration occurs prior to the first day of November, 445
659+however, if such registration occurs on or after the first day of 446
660+November but prior to the first day of October next succeeding, such tax 447
661+shall be a pro rata portion of the amount of tax payable if such motor 448
662+vehicle had been entered in the taxable list of such town on October first 449
663+in such assessment year to be determined by ratio, the numerator of 450
664+Bill No.
665+
666+
667+
668+LCO No. 6185 18 of 137
669+
670+which shall be the number of months from the date of such registration, 451
671+including the month in which registration occurs, to the first day of 452
672+October next succeeding and the denominator of which shall be twelve, 453
673+provided if such person, on said first day of October, was entitled to any 454
674+exemption under section 12-81, as amended by this act, which was 455
675+allowed in the assessment of the motor vehicle replaced, such 456
676+exemption shall be allowed for purposes of determining the property 457
677+tax payable with respect to the replacement vehicle as provided herein; 458
678+(B) the property tax payable by such person with respect to the motor 459
679+vehicle replaced, provided if the replacement vehicle is registered 460
680+subsequent to the thirty-first day of October but prior to the first day of 461
681+October next succeeding such property tax payable with respect to the 462
682+motor vehicle replaced shall, for purposes of the computation herein, be 463
683+deemed to be a pro rata portion of such property tax to be prorated in 464
684+the same manner as the amount of tax determined under subparagraph 465
685+(A) [above] of this subdivision. 466
686+(c) (1) For assessment years commencing prior to October 1, 2024, any 467
687+person who owns a commercial motor vehicle which has been 468
688+temporarily registered at any time during any assessment year and 469
689+which has not during such period been entered in the taxable list of any 470
690+town in the state for purposes of the property tax and with respect to 471
691+which no permanent registration has been issued during such period, 472
692+shall be liable for the payment of property tax with respect to such motor 473
693+vehicle in the town where such motor vehicle is subject to property tax 474
694+on the first day of January immediately following the end of such 475
695+assessment year, in an amount as hereinafter provided. The property tax 476
696+payable shall be in the amount which would be payable if such motor 477
697+vehicle had been entered in the taxable list of the town where such 478
698+motor vehicle is subject to property tax on the first day of October in 479
699+such assessment year. 480
700+(2) For assessment years commencing on or after October 1, 2024, any 481
701+person who owns a commercial motor vehicle which has been 482
702+temporarily registered at any time during any assessment year and 483
703+Bill No.
704+
705+
706+
707+LCO No. 6185 19 of 137
708+
709+which has not during such period been entered in the taxable list of any 484
710+town in the state for purposes of the property tax and with respect to 485
711+which no permanent registration has been issued during such period, 486
712+shall be liable for the payment of property tax with respect to such motor 487
713+vehicle in the town where such motor vehicle is subject to property tax. 488
714+[on the first day of July of such assessment year or the first day of 489
715+January immediately following such assessment year, as applicable, 490
716+pursuant to subdivisions (2) and (3) of subsection (b) of this section.] The 491
717+property tax payable shall be in the amount which would be payable if 492
718+such motor vehicle had been entered in the taxable list of the town 493
719+where such motor vehicle is subject to property tax on the first day of 494
720+October in such assessment year. 495
721+(d) [Any] (1) For assessment years commencing prior to October 1, 496
722+2024, any motor vehicle subject to property tax as provided in this 497
723+section shall, except as otherwise provided in subsection (b) of this 498
724+section, be subject to such property tax in the town in which such motor 499
725+vehicle was last registered in the assessment year ending immediately 500
726+preceding the day on which such property tax is payable as provided in 501
727+this section. 502
728+(2) For assessment years commencing on or after October 1, 2024, any 503
729+motor vehicle subject to property tax as provided in this section shall, 504
730+except as otherwise provided in subsection (b) of this section, be subject 505
731+to property tax in the town in which such motor vehicle was first 506
732+registered in the assessment year. 507
733+(e) Whenever any motor vehicle subject to property tax as provided 508
734+in this section has been replaced by the owner with another motor 509
735+vehicle in the assessment year immediately preceding the day on which 510
736+such property tax is payable, each such motor vehicle shall be subject to 511
737+property tax as provided in this section. 512
738+(f) Upon receipt by the assessor in any town of notice from the 513
739+Commissioner of Motor Vehicles, in a manner as prescribed by said 514
740+Bill No.
741+
742+
743+
744+LCO No. 6185 20 of 137
745+
746+commissioner, with respect to any motor vehicle subject to property tax 515
747+in accordance with the provisions of this section and [which] that has 516
748+not been entered in the taxable grand list of such town, such assessor 517
749+shall determine the value of such motor vehicle for purposes of property 518
750+tax assessment and shall, for assessment years commencing (1) prior to 519
751+October 1, 2024, add such value to the taxable grand list in such town 520
752+for the immediately preceding assessment date, and [the] (2) on or after 521
753+October 1, 2024, add such value to the taxable grand list in such town. 522
754+The tax thereon shall be levied and collected by the tax collector. Such 523
755+property tax shall be payable not later than the first day of [(1)] (A) 524
756+February following the first day of January on which the owner of such 525
757+motor vehicle becomes liable for the payment of property tax, for 526
758+assessment years commencing prior to October 1, 2024, and [(2)] (B) the 527
759+month succeeding the month in which such property tax became due 528
760+and payable, for assessment years commencing on or after October 1, 529
761+2024, with respect to such motor vehicle in accordance with the 530
762+provisions of this section, subject to any determination in accordance 531
763+with section 12-142 that such tax shall be due and payable in 532
764+installments. [Said] 533
765+(g) (1) For assessment years commencing prior to October 1, 2024, 534
766+said owner may appeal the assessment of such motor vehicle, as 535
767+determined by the assessor in accordance with [this] subsection (f) of 536
768+this section, to the board of assessment appeals next succeeding the date 537
769+on which the tax based on such assessment is payable, and thereafter, to 538
770+the Superior Court as provided in section 12-117a. If the amount of such 539
771+tax is reduced upon appeal, the portion thereof which has been paid in 540
772+excess of the amount determined to be due upon appeal shall be 541
773+refunded to said owner. 542
774+(2) For assessment years commencing on or after October 1, 2024, said 543
775+owner may appeal the determination of the manufacturer's suggested 544
776+retail price used to assess a motor vehicle to the board of assessment 545
777+appeals next succeeding the date on which the tax based on such 546
778+assessment is payable, and thereafter, to the Superior Court as provided 547
779+Bill No.
780+
781+
782+
783+LCO No. 6185 21 of 137
784+
785+in section 12-117a. If the amount of such tax is reduced upon appeal, the 548
786+portion thereof which has been paid in excess of the amount determined 549
787+to be due upon appeal shall be refunded to said owner. 550
788+[(g)] (h) Any motor vehicle which is not registered in this state shall 551
789+be subject to property tax in this state if such motor vehicle in the normal 552
790+course of operation most frequently leaves from and returns to or 553
791+remains in one or more points within this state, and such motor vehicle 554
792+shall be subject to such property tax in the town within which such 555
793+motor vehicle in the normal course of operation most frequently leaves 556
794+from and returns to or remains, provided when the owner of such motor 557
795+vehicle is a resident in any town in the state, it shall be presumed that 558
796+such motor vehicle most frequently leaves from and returns to or 559
797+remains in such town unless evidence, satisfactory to the assessor in 560
798+such town, is submitted to the contrary. 561
799+Sec. 9. Subsection (b) of section 12-71c of the 2024 supplement to the 562
800+general statutes is repealed and the following is substituted in lieu 563
801+thereof (Effective July 1, 2024, and applicable to assessment years commencing 564
802+on or after October 1, 2024): 565
803+(b) Any person claiming a property tax credit with respect to a motor 566
804+vehicle in accordance with subsection (a) of this section shall file with 567
805+the assessor in the town in which such person is entitled to such 568
806+property tax credit, documentation satisfactory to the assessor 569
807+concerning the sale, total damage, theft or removal and registration of 570
808+such motor vehicle. [For assessment years commencing prior to October 571
809+1, 2024, such] Such documentation shall be filed not later than the thirty-572
810+first day of December immediately following the end of the assessment 573
811+year which next follows the assessment year in which such motor 574
812+vehicle was sold, damaged, stolen or removed and registered. [For 575
813+assessment years commencing on or after October 1, 2024, such 576
814+documentation shall be filed not later than three years after the date 577
815+upon which such tax was due and payable for such motor vehicle.] 578
816+Failure to file such claim and documentation as prescribed herein shall 579
817+Bill No.
818+
819+
820+
821+LCO No. 6185 22 of 137
822+
823+constitute a waiver of the right to such property tax credit. 580
824+Sec. 10. Subdivision (74) of section 12-81 of the 2024 supplement to 581
825+the general statutes is repealed and the following is substituted in lieu 582
826+thereof (Effective July 1, 2024, and applicable to assessment years commencing 583
827+on or after October 1, 2024): 584
828+(74) (A) (i) For a period not to exceed five assessment years following 585
829+the assessment year in which it is first registered, any new commercial 586
830+truck, truck tractor, tractor and semitrailer, and vehicle used in 587
831+combination therewith, which is used exclusively to transport freight for 588
832+hire and: Is either subject to the jurisdiction of the United States 589
833+Department of Transportation pursuant to Chapter 135 of Title 49, 590
834+United States Code, or any successor thereto, or would otherwise be 591
835+subject to said jurisdiction except for the fact that the vehicle is used 592
836+exclusively in intrastate commerce; has a gross vehicle weight rating in 593
837+excess of twenty-six thousand pounds; and prior to August 1, 1996, was 594
838+not registered in this state or in any other jurisdiction but was registered 595
839+in this state on or after said date. (ii) For a period not to exceed five 596
840+assessment years following the assessment year in which it is first 597
841+registered, any new commercial truck, truck tractor, tractor and 598
842+semitrailer, and vehicle used in combination therewith, not eligible 599
843+under subparagraph (A)(i) of this subdivision, that has a gross vehicle 600
844+weight rating in excess of fifty-five thousand pounds and was not 601
845+registered in this state or in any other jurisdiction but was registered in 602
846+this state on or after August 1, 1999. As used in this subdivision, "gross 603
847+vehicle weight rating" has the same meaning as provided in section 14-604
848+1; 605
849+(B) Any person who on October first in any year holds title to or is 606
850+the registrant of a vehicle for which such person intends to claim the 607
851+exemption provided in this subdivision shall file with the assessor or 608
852+board of assessors in the municipality in which the vehicle is subject to 609
853+property taxation, on or before the first day of November in such year, 610
854+a written application claiming such exemption on a form prescribed by 611
855+Bill No.
856+
857+
858+
859+LCO No. 6185 23 of 137
860+
861+the Secretary of the Office of Policy and Management. Such person shall 612
862+include information as to the make, model, year and vehicle 613
863+identification number of each such vehicle, and any appurtenances 614
864+attached thereto, in such application. The person holding title to or the 615
865+registrant of such vehicle for which exemption is claimed shall furnish 616
866+the assessor or board of assessors with such supporting documentation 617
867+as said secretary may require, including, but not limited to, evidence of 618
868+vehicle use, acquisition cost and registration. Failure to file such 619
869+application in this manner and form within the time limit prescribed 620
870+shall constitute a waiver of the right to such exemption for such 621
871+assessment year, unless an extension of time is allowed as provided in 622
872+section 12-81k. Such application shall not be required for any assessment 623
873+year following that for which the initial application is filed, provided if 624
874+the vehicle is modified, such modification shall be deemed a waiver of 625
875+the right to such exemption until a new application is filed and the right 626
876+to such exemption is established as required initially. With respect to 627
877+any vehicle for which the exemption under this subdivision has 628
878+previously been claimed in a town other than that in which the vehicle 629
879+is registered on any assessment date, the person shall not be entitled to 630
880+such exemption until a new application is filed and the right to such 631
881+exemption is established in said town; 632
882+(C) With respect to any vehicle which is not registered on the first day 633
883+of October in any assessment year and which is registered subsequent 634
884+to said first day of October [but prior to the first day of August] in such 635
885+assessment year, the value of such vehicle for property tax exemption 636
886+purposes shall be a pro rata portion of the value determined in 637
887+accordance with subparagraph (D) of this subdivision, to be determined 638
888+by a ratio, the numerator of which shall be the number of months from 639
889+the date of such registration, including the month in which registration 640
890+occurs, to the first day of October next succeeding and the denominator 641
891+of which shall be twelve. For purposes of this subdivision, "assessment 642
892+year" means the period of twelve full months commencing with October 643
893+first each year; 644
894+Bill No.
895+
896+
897+
898+LCO No. 6185 24 of 137
899+
900+(D) For assessment years commencing prior to October 1, 2024, 645
901+notwithstanding the provisions of section 12-71d, as amended by this 646
902+act, the assessor or board of assessors shall determine the value for each 647
903+vehicle with respect to which a claim for exemption under this 648
904+subdivision is approved, based on the vehicle's cost of acquisition, 649
905+including costs related to the modification of such vehicle, adjusted for 650
906+depreciation; 651
907+(E) For assessment years commencing on or after October 1, 2024, the 652
908+assessor or board of assessors shall determine the value for each vehicle, 653
909+with respect to which a claim for exemption under this subdivision is 654
910+approved, pursuant to the provisions of section 12-71d, as amended by 655
911+this act; 656
912+Sec. 11. Subsection (a) of section 7-152e of the general statutes is 657
913+repealed and the following is substituted in lieu thereof (Effective July 1, 658
914+2024): 659
915+(a) Notwithstanding any provision of the general statutes or special 660
916+act, municipal charter or ordinance, any municipality may, by ordinance 661
917+adopted by its legislative body, establish a fine to be imposed against 662
918+any owner of a motor vehicle that is subject to property tax in the 663
919+municipality pursuant to subsection [(g)] (h) of section 12-71b, as 664
920+amended by this act, who fails to register such motor vehicle with the 665
921+Commissioner of Motor Vehicles, provided (1) such motor vehicle is 666
922+eligible for registration and required to be registered under the 667
923+provisions of chapter 246, (2) such fine shall not be more than two 668
924+hundred fifty dollars, (3) any penalty for the failure to pay such fine by 669
925+a date prescribed by the municipality shall not be more than twenty-five 670
926+per cent of such fine, and (4) such fine shall be suspended for a first time 671
927+violator who presents proof of registration for such motor vehicle 672
928+subsequent to the violation but prior to the imposition of a fine. 673
929+Sec. 12. Subparagraph (B) of subdivision (7) of subsection (f) of 674
930+section 12-71 of the 2024 supplement to the general statutes is repealed 675
931+Bill No.
932+
933+
934+
935+LCO No. 6185 25 of 137
936+
937+and the following is substituted in lieu thereof (Effective from passage): 676
938+(B) For assessment years commencing on or after October 1, 2024, 677
939+information concerning any vehicle subject to taxation in a town other 678
940+than the town in which it is registered may be included on any 679
941+declaration or report filed pursuant to section 12-41, as amended by this 680
942+act, 12-43 or 12-57a. If a motor vehicle is listed in a town in which it is 681
943+not subject to taxation, pursuant to the provisions of subdivision (5) of 682
944+this subsection, the assessor of the town in which such vehicle is listed 683
945+shall notify the assessor of the town in which such vehicle is [listed] 684
946+registered of the name and address of the owner of such motor vehicle, 685
947+the vehicle identification number and the town in which such vehicle is 686
948+taxed. The assessor of the town in which said vehicle is registered and 687
949+the assessor of the town in which said vehicle is listed shall cooperate in 688
950+administering the provisions of this section concerning the listing of 689
951+such vehicle for property tax purposes. 690
952+Sec. 13. Section 12-71e of the general statutes is repealed and the 691
953+following is substituted in lieu thereof (Effective July 1, 2025): 692
954+(a) Notwithstanding the provisions of any special act, municipal 693
955+charter or home rule ordinance, (1) for the assessment year commencing 694
956+October 1, 2016, the mill rate for motor vehicles shall not exceed 39 mills, 695
957+(2) for the assessment years commencing October 1, 2017, to October 1, 696
958+2020, inclusive, the mill rate for motor vehicles shall not exceed 45 mills, 697
959+and (3) for the assessment year commencing October 1, 2021, and each 698
960+assessment year thereafter, the mill rate for motor vehicles shall not 699
961+exceed 32.46 mills. 700
962+(b) Any municipality or district may establish a mill rate for motor 701
963+vehicles that is equal to or lower than 32.46 mills, including zero mills. 702
964+Such mill rate may be different from [its] the mill rate for real property 703
965+and personal property other than motor vehicles to comply with the 704
966+provisions of this section, provided the mill rate for motor vehicles is 705
967+lower than the mill rate for real property and personal property. No 706
968+Bill No.
969+
970+
971+
972+LCO No. 6185 26 of 137
973+
974+district or borough may set a motor vehicle mill rate that if combined 707
975+with the motor vehicle mill rate of the town, city, consolidated town and 708
976+city or consolidated town and borough in which such district or 709
977+borough is located would result in a combined motor vehicle mill rate 710
978+(1) above 39 mills for the assessment year commencing October 1, 2016, 711
979+(2) above 45 mills for the assessment years commencing October 1, 2017, 712
980+to October 1, 2020, inclusive, or (3) above 32.46 mills for the assessment 713
981+year commencing October 1, 2021, and each assessment year thereafter. 714
982+(c) Notwithstanding the provisions of any special act, municipal 715
983+charter or home rule ordinance, a municipality or district that set a 716
984+motor vehicle mill rate prior to May 7, 2022, for the assessment year 717
985+commencing October 1, 2021, may, by vote of its legislative body, or if 718
986+the legislative body is a town meeting, the board of selectmen, revise 719
987+such mill rate to meet the requirements of this section, provided such 720
988+revision occurs not later than June 15, 2022. 721
989+(d) Notwithstanding the provisions of section 12-112, any board of 722
990+assessment appeals of a municipality that mailed or distributed, prior to 723
991+October 31, 2017, bills to taxpayers for motor vehicle property taxes 724
992+based on assessments made for the assessment year commencing 725
993+October 1, 2016, shall hear or entertain any appeals related to such 726
994+assessments not later than December 15, 2017. 727
995+(e) The Secretary of the Office of Policy and Management shall notify 728
996+the chief executive officer of each municipality: 729
997+(1) Annually, (A) of the municipality's option to reduce the mill rate 730
998+for motor vehicles to lower than 32.46 mills, including zero mills, and 731
999+(B) that such mill rate may be different from the mill rate for real 732
1000+property and personal property other than motor vehicles to comply 733
1001+with the provisions of this section, provided the mill rate for motor 734
1002+vehicles is lower than the mill rate for real property and personal 735
1003+property; and 736
1004+(2) In advance of the implementation of a municipality's revaluation 737
1005+Bill No.
1006+
1007+
1008+
1009+LCO No. 6185 27 of 137
1010+
1011+pursuant to section 12-62, of the municipality's option to consider and 738
1012+evaluate the reduction of the mill rate for motor vehicles in the same 739
1013+fiscal year in which the revaluation is implemented. 740
1014+[(e)] (f) For the purposes of this section, "municipality" means any 741
1015+town, city, borough, consolidated town and city, consolidated town and 742
1016+borough and "district" [means any district, as defined] has the same 743
1017+meaning as provided in section 7-324. 744
1018+Sec. 14. Section 36a-2 of the 2024 supplement to the general statutes 745
1019+is repealed and the following is substituted in lieu thereof (Effective July 746
1020+1, 2024): 747
1021+As used in this title, unless the context otherwise requires: 748
1022+(1) "Affiliate" of a person means any person controlling, controlled 749
1023+by, or under common control with, that person; 750
1024+(2) "Applicant" with respect to any license or approval provision 751
1025+pursuant to this title means a person who applies for that license or 752
1026+approval; 753
1027+(3) "Automated teller machine" means a stationary or mobile device 754
1028+that is unattended or equipped with a telephone or televideo device that 755
1029+allows contact with bank personnel, including a satellite device but 756
1030+excluding a [point of sale] point-of-sale terminal, at which banking 757
1031+transactions, including, but not limited to, deposits, withdrawals, 758
1032+advances, payments or transfers, may be conducted; 759
1033+(4) "Bank" means a Connecticut bank or a federal bank; 760
1034+(5) "Bank and trust company" means an institution chartered or 761
1035+organized under the laws of this state as a bank and trust company; 762
1036+(6) "Bank holding company" has the meaning given to that term in 12 763
1037+USC Section 1841(a), as amended from time to time, except that the term 764
1038+"bank", as used in 12 USC Section 1841(a), includes a bank or out-of-state 765
1039+Bill No.
1040+
1041+
1042+
1043+LCO No. 6185 28 of 137
1044+
1045+bank that functions solely in a trust or fiduciary capacity; 766
1046+(7) "Capital and surplus" has the same meaning as provided in 12 CFR 767
1047+1.2, as amended from time to time; 768
1048+(8) "Capital stock" when used in conjunction with any bank or out-of-769
1049+state bank means a bank or out-of-state bank that is authorized to 770
1050+accumulate funds through the issuance of its capital stock; 771
1051+(9) "Client" means a beneficiary of a trust for whom the Connecticut 772
1052+bank acts as trustee, a person for whom the Connecticut bank acts as 773
1053+agent, custodian or bailee, or other person to whom a Connecticut bank 774
1054+owes a duty or obligation under a trust or other account administered 775
1055+by such Connecticut bank, regardless of whether such Connecticut bank 776
1056+owes a fiduciary duty to the person; 777
1057+(10) "Club deposit" means deposits to be received at regular intervals, 778
1058+the whole amount deposited to be withdrawn by the owner or repaid 779
1059+by the bank in not more than fifteen months from the date of the first 780
1060+deposit, and upon which no interest or dividends need to be paid; 781
1061+(11) "Commissioner" means the Banking Commissioner and, with 782
1062+respect to any function of the commissioner, includes any person 783
1063+authorized or designated by the commissioner to carry out that 784
1064+function; 785
1065+(12) "Company" means any corporation, joint stock company, trust, 786
1066+association, partnership, limited partnership, unincorporated 787
1067+organization, limited liability company or similar organization, but does 788
1068+not include (A) any corporation the majority of the shares of which are 789
1069+owned by the United States or by any state, or (B) any trust which by its 790
1070+terms shall terminate within twenty-five years or not later than twenty-791
1071+one years and ten months after the death of beneficiaries living on the 792
1072+effective date of the trust; 793
1073+(13) "Connecticut bank" means a bank and trust company, savings 794
1074+Bill No.
1075+
1076+
1077+
1078+LCO No. 6185 29 of 137
1079+
1080+bank or savings and loan association chartered or organized under the 795
1081+laws of this state; 796
1082+(14) "Connecticut credit union" means a cooperative, nonprofit 797
1083+financial institution that (A) is organized under chapter 667 and the 798
1084+membership of which is limited as provided in section 36a-438a, (B) 799
1085+operates for the benefit and general welfare of its members with the 800
1086+earnings, benefits or services offered being distributed to or retained for 801
1087+its members, and (C) is governed by a volunteer board of directors 802
1088+elected by and from its membership; 803
1089+(15) "Connecticut credit union service organization" means a credit 804
1090+union service organization that is (A) incorporated under the laws of 805
1091+this state, located in this state and established by at least one Connecticut 806
1092+credit union, or (B) wholly owned by a credit union that converted into 807
1093+a Connecticut credit union pursuant to section 36a-469b; 808
1094+(16) "Consolidation" means a combination of two or more institutions 809
1095+into a new institution; all institutions party to the consolidation, other 810
1096+than the new institution, are "constituent" institutions; the new 811
1097+institution is the "resulting" institution; 812
1098+(17) "Control" has the meaning given to that term in 12 USC Section 813
1099+1841(a), as amended from time to time; 814
1100+(18) "Credit union service organization" means an entity organized 815
1101+under state or federal law to provide credit union service organization 816
1102+services primarily to its members, to Connecticut credit unions, federal 817
1103+credit unions and out-of-state credit unions other than its members, and 818
1104+to members of any such other credit unions; 819
1105+(19) "Customer" means any person using a service offered by a 820
1106+financial institution; 821
1107+(20) "Demand account" means an account into which demand 822
1108+deposits may be made; 823
1109+Bill No.
1110+
1111+
1112+
1113+LCO No. 6185 30 of 137
1114+
1115+(21) "Demand deposit" means a deposit that is payable on demand, a 824
1116+deposit issued with an original maturity or required notice period of less 825
1117+than seven days or a deposit representing funds for which the bank does 826
1118+not reserve the right to require at least seven days' written notice of the 827
1119+intended withdrawal, but does not include any time deposit; 828
1120+(22) "Deposit" means funds deposited with a depository; 829
1121+(23) "Deposit account" means an account into which deposits may be 830
1122+made; 831
1123+(24) "Depositor" includes a member of a mutual savings and loan 832
1124+association; 833
1125+(25) "Director" means a member of the governing board of a financial 834
1126+institution; 835
1127+(26) "Equity capital" means the excess of a Connecticut bank's total 836
1128+assets over its total liabilities, as defined in the instructions of the federal 837
1129+Financial Institutions Examination Council for consolidated reports of 838
1130+condition and income; 839
1131+(27) "Executive officer" means every officer of a Connecticut bank 840
1132+who participates or has authority to participate, otherwise than in the 841
1133+capacity of a director, in major policy-making functions of such bank, 842
1134+regardless of whether such officer has an official title or whether that 843
1135+title contains a designation of assistant and regardless of whether such 844
1136+officer is serving without salary or other compensation. The president, 845
1137+vice president, secretary and treasurer of such bank are deemed to be 846
1138+executive officers, unless, by resolution of the governing board or by 847
1139+such bank's bylaws, any such officer is excluded from participation in 848
1140+major policy-making functions, otherwise than in the capacity of a 849
1141+director of such bank, and such officer does not actually participate in 850
1142+such policy-making functions; 851
1143+(28) "Federal agency" has the meaning given to that term in 12 USC 852
1144+Bill No.
1145+
1146+
1147+
1148+LCO No. 6185 31 of 137
1149+
1150+Section 3101, as amended from time to time; 853
1151+(29) "Federal bank" means a national banking association, federal 854
1152+savings bank or federal savings and loan association having its principal 855
1153+office in this state; 856
1154+(30) "Federal branch" has the meaning given to that term in 12 USC 857
1155+Section 3101, as amended from time to time; 858
1156+(31) "Federal credit union" means any institution chartered or 859
1157+organized as a federal credit union pursuant to the laws of the United 860
1158+States having its principal office in this state; 861
1159+(32) "Fiduciary" means a person undertaking to act alone or jointly 862
1160+with others primarily for the benefit of another or others in all matters 863
1161+connected with its undertaking and includes a person acting in the 864
1162+capacity of trustee, executor, administrator, guardian, assignee, 865
1163+receiver, conservator, agent, custodian under the Connecticut Uniform 866
1164+Gifts to Minors Act or the Uniform Transfers to Minors Act, and acting 867
1165+in any other similar capacity; 868
1166+(33) "Financial institution" means any Connecticut bank, Connecticut 869
1167+credit union, or other person whose activities in this state are subject to 870
1168+the supervision of the commissioner, but does not include a person 871
1169+whose activities are subject to the supervision of the commissioner 872
1170+solely pursuant to chapter 672a, 672b or 672c or any combination 873
1171+thereof; 874
1172+(34) "Foreign bank" has the meaning given to that term in 12 USC 875
1173+Section 3101, as amended from time to time; 876
1174+(35) "Foreign country" means any country other than the United 877
1175+States and includes any colony, dependency or possession of any such 878
1176+country; 879
1177+(36) "Governing board" means the group of persons vested with the 880
1178+management of the affairs of a financial institution irrespective of the 881
1179+Bill No.
1180+
1181+
1182+
1183+LCO No. 6185 32 of 137
1184+
1185+name by which such group is designated; 882
1186+(37) "Holding company" means a bank holding company or a savings 883
1187+and loan holding company, except, as used in sections 36a-180 to 36a-884
1188+191, inclusive, "holding company" means a company that controls a 885
1189+bank; 886
1190+(38) "Innovation bank" means a Connecticut bank that does not accept 887
1191+retail deposits, but may accept nonretail deposits which are eligible for 888
1192+insurance from the Federal Deposit Insurance Corporation or the 889
1193+Federal Deposit Insurance Corporation's successor agency; 890
1194+[(38)] (39) "Insured depository institution" has the meaning given to 891
1195+that term in 12 USC Section 1813, as amended from time to time; 892
1196+[(39)] (40) "Licensee" means any person who is licensed or required 893
1197+to be licensed pursuant to the applicable provisions of this title; 894
1198+[(40)] (41) "Loan" includes any line of credit or other extension of 895
1199+credit; 896
1200+[(41)] (42) "Loan production office" means an office of a bank or out-897
1201+of-state bank, other than a foreign bank, whose activities are limited to 898
1202+loan production and solicitation; 899
1203+[(42)] (43) "Merger" means the combination of one or more 900
1204+institutions with another which continues its corporate existence; all 901
1205+institutions party to the merger are "constituent" institutions; the 902
1206+merging institution which upon the merger continues its existence is the 903
1207+"resulting" institution; 904
1208+[(43)] (44) "Mutual" when used in conjunction with any institution 905
1209+that is a bank or out-of-state bank means any such institution without 906
1210+capital stock; 907
1211+[(44)] (45) "Mutual holding company" means a mutual holding 908
1212+company organized under sections 36a-192 to 36a-199, inclusive, and 909
1213+Bill No.
1214+
1215+
1216+
1217+LCO No. 6185 33 of 137
1218+
1219+unless otherwise indicated, a subsidiary holding company controlled by 910
1220+a mutual holding company organized under sections 36a-192 to 36a-199, 911
1221+inclusive; 912
1222+[(45)] (46) "Out-of-state" includes any state other than Connecticut 913
1223+and any foreign country; 914
1224+[(46)] (47) "Out-of-state bank" means any institution that engages in 915
1225+the business of banking, but does not include a bank, Connecticut credit 916
1226+union, federal credit union or out-of-state credit union; 917
1227+[(47)] (48) "Out-of-state credit union" means any credit union other 918
1228+than a Connecticut credit union or a federal credit union; 919
1229+[(48)] (49) "Out-of-state trust company" means any company 920
1230+chartered to act as a fiduciary but does not include a company chartered 921
1231+under the laws of this state, a bank, an out-of-state bank, a Connecticut 922
1232+credit union, a federal credit union or an out-of-state credit union; 923
1233+[(49)] (50) "Person" means an individual, company, including a 924
1234+company described in subparagraphs (A) and (B) of subdivision (12) of 925
1235+this section, or any other legal entity, including a federal, state or 926
1236+municipal government or agency or any political subdivision thereof; 927
1237+[(50) "Point of sale terminal"] (51) "Point-of-sale terminal" means a 928
1238+device located in a commercial establishment at which sales transactions 929
1239+can be charged directly to the buyer's deposit, loan or credit account, but 930
1240+at which deposit transactions cannot be conducted; 931
1241+[(51)] (52) "Prepayment penalty" means any charge or penalty for 932
1242+paying all or part of the outstanding balance owed on a loan before the 933
1243+date on which the principal is due and includes computing a refund of 934
1244+unearned interest by a method that is less favorable to the borrower than 935
1245+the actuarial method, as defined by Section 933(d) of the Housing and 936
1246+Community Development Act of 1992, 15 USC 1615(d), as amended 937
1247+from time to time; 938
1248+Bill No.
1249+
1250+
1251+
1252+LCO No. 6185 34 of 137
1253+
1254+[(52)] (53) "Reorganized savings bank" means any savings bank 939
1255+incorporated and organized in accordance with sections 36a-192 and 940
1256+36a-193; 941
1257+[(53)] (54) "Reorganized savings and loan association" means any 942
1258+savings and loan association incorporated and organized in accordance 943
1259+with sections 36a-192 and 36a-193; 944
1260+[(54)] (55) "Reorganized savings institution" means any reorganized 945
1261+savings bank or reorganized savings and loan association; 946
1262+[(55)] (56) "Representative office" has the meaning given to that term 947
1263+in 12 USC Section 3101, as amended from time to time; 948
1264+[(56)] (57) "Reserves for loan and lease losses" means the amounts 949
1265+reserved by a Connecticut bank against possible loan and lease losses as 950
1266+shown on the bank's consolidated reports of condition and income; 951
1267+[(57)] (58) "Retail deposits" means any deposits made by individuals 952
1268+who are not "accredited investors", as defined in 17 CFR 230.501(a); 953
1269+[(58)] (59) "Satellite device" means an automated teller machine which 954
1270+is not part of an office of the bank, Connecticut credit union or federal 955
1271+credit union which has established such machine; 956
1272+[(59)] (60) "Savings account" means a deposit account, other than an 957
1273+escrow account established pursuant to section 49-2a, into which 958
1274+savings deposits may be made and which account must be evidenced 959
1275+by periodic statements delivered at least semiannually or by a passbook; 960
1276+[(60)] (61) "Savings and loan association" means an institution 961
1277+chartered or organized under the laws of this state as a savings and loan 962
1278+association; 963
1279+[(61)] (62) "Savings bank" means an institution chartered or organized 964
1280+under the laws of this state as a savings bank; 965
1281+Bill No.
1282+
1283+
1284+
1285+LCO No. 6185 35 of 137
1286+
1287+[(62)] (63) "Savings deposit" means any deposit other than a demand 966
1288+deposit or time deposit on which interest or a dividend is paid 967
1289+periodically; 968
1290+[(63)] (64) "Savings and loan holding company" has the meaning 969
1291+given to that term in 12 USC Section 1467a, as amended from time to 970
1292+time; 971
1293+[(64)] (65) "Share account holder" means a person who maintains a 972
1294+share account in a Connecticut credit union, federal credit union or out-973
1295+of-state credit union that maintains in this state a branch, as defined in 974
1296+section 36a-435b; 975
1297+[(65)] (66) "State" means any state of the United States, the District of 976
1298+Columbia, any territory of the United States, Puerto Rico, Guam, 977
1299+American Samoa, the trust territory of the Pacific Islands, the Virgin 978
1300+Islands and the Northern Mariana Islands; 979
1301+[(66)] (67) "State agency" has the meaning given to that term in 12 USC 980
1302+Section 3101, as amended from time to time; 981
1303+[(67)] (68) "State branch" has the meaning given to that term in 12 USC 982
1304+Section 3101, as amended from time to time; 983
1305+[(68)] (69) "Subsidiary" has the meaning given to that term in 12 USC 984
1306+Section 1841(d), as amended from time to time; 985
1307+[(69)] (70) "Subsidiary holding company" means a stock holding 986
1308+company, controlled by a mutual holding company, that holds one 987
1309+hundred per cent of the stock of a reorganized savings institution; 988
1310+[(70)] (71) "Supervisory agency" means: (A) The commissioner; (B) the 989
1311+Federal Deposit Insurance Corporation; (C) the Resolution Trust 990
1312+Corporation; (D) the Office of Thrift Supervision; (E) the National Credit 991
1313+Union Administration; (F) the Board of Governors of the Federal 992
1314+Reserve System; (G) the United States Comptroller of the Currency; (H) 993
1315+the Bureau of Consumer Financial Protection; and (I) any successor to 994
1316+Bill No.
1317+
1318+
1319+
1320+LCO No. 6185 36 of 137
1321+
1322+any of the foregoing agencies or individuals; 995
1323+[(71)] (72) "System" means the Nationwide Mortgage Licensing 996
1324+System and Registry, NMLS, NMLSR or such other name or acronym as 997
1325+may be assigned to the multistate system developed by the Conference 998
1326+of State Bank Supervisors and the American Association of Residential 999
1327+Mortgage Regulators and owned and operated by the State Regulatory 1000
1328+Registry, LLC, or any successor or affiliated entity, for the licensing and 1001
1329+registration of persons in the mortgage and other financial services 1002
1330+industries; 1003
1331+[(72)] (73) "Time account" means an account into which time deposits 1004
1332+may be made; 1005
1333+[(73)] (74) "Time deposit" means a deposit that the depositor or share 1006
1334+account holder does not have a right and is not permitted to make 1007
1335+withdrawals from within six days after the date of deposit, unless the 1008
1336+deposit is subject to an early withdrawal penalty of at least seven days' 1009
1337+simple interest on amounts withdrawn within the first six days after 1010
1338+deposit, subject to those exceptions permissible under 12 CFR Part 204, 1011
1339+as amended from time to time; and 1012
1340+[(74)] (75) "Trust bank" means a Connecticut bank organized to 1013
1341+function solely in a fiduciary capacity. [; and 1014
1342+(75) "Uninsured bank" means a Connecticut bank that does not accept 1015
1343+retail deposits and for which insurance of deposits by the Federal 1016
1344+Deposit Insurance Corporation or its successor agency is not required.] 1017
1345+Sec. 15. Subsection (e) of section 36a-65 of the general statutes is 1018
1346+repealed and the following is substituted in lieu thereof (Effective July 1, 1019
1347+2024): 1020
1348+(e) (1) If the commissioner determines that the assessment to be 1021
1349+collected from an [uninsured] innovation bank or a trust bank pursuant 1022
1350+to subdivision (1) of subsection (a) of this section is unreasonably low or 1023
1351+Bill No.
1352+
1353+
1354+
1355+LCO No. 6185 37 of 137
1356+
1357+high based on the size and risk profile of the bank, the commissioner 1024
1358+may require such bank to pay a fee in lieu of such assessment. Each such 1025
1359+bank shall pay such fee to the commissioner not later than the date 1026
1360+specified by the commissioner for payment. If payment of such fee is not 1027
1361+made by the time specified by the commissioner, such bank shall pay to 1028
1362+the commissioner an additional two hundred dollars. 1029
1363+(2) Any [uninsured] innovation bank required to pay a fee in lieu of 1030
1364+assessment shall also pay to the commissioner the actual cost of the 1031
1365+examination of such bank, as such cost is determined by the 1032
1366+commissioner. 1033
1367+Sec. 16. Subsections (n) to (u), inclusive, of section 36a-70 of the 1034
1368+general statutes are repealed and the following is substituted in lieu 1035
1369+thereof (Effective July 1, 2024): 1036
1370+(n) The Connecticut bank shall not commence business until: (1) A 1037
1371+final certificate of authority has been issued in accordance with 1038
1372+subsection (l) of this section, (2) except in the case of a trust bank, an 1039
1373+interim Connecticut bank organized pursuant to subsection (p) of this 1040
1374+section, or an [uninsured] innovation bank organized pursuant to 1041
1375+subsection (t) of this section, until its insurable accounts or deposits are 1042
1376+insured by the Federal Deposit Insurance Corporation or its successor 1043
1377+agency, and (3) it has complied with the requirements of subsection (u) 1044
1378+of this section, if applicable. The acceptance of subscriptions for deposits 1045
1379+by a mutual savings bank or mutual savings and loan association as may 1046
1380+be necessary to obtain insurance by the Federal Deposit Insurance 1047
1381+Corporation or its successor agency shall not be considered to be 1048
1382+commencing business. No Connecticut bank other than a trust bank 1049
1383+may exercise any of the fiduciary powers granted to Connecticut banks 1050
1384+by law until express authority therefor has been given by the 1051
1385+commissioner. 1052
1386+(o) Prior to the issuance of a final certificate of authority to commence 1053
1387+business in accordance with subsection (l) of this section, the 1054
1388+Bill No.
1389+
1390+
1391+
1392+LCO No. 6185 38 of 137
1393+
1394+Connecticut bank shall pay to the State Treasurer a franchise tax, 1055
1395+together with a filing fee of twenty dollars for the required papers. The 1056
1396+franchise tax for a mutual savings bank and mutual savings and loan 1057
1397+association shall be thirty dollars. The franchise tax for all capital stock 1058
1398+Connecticut banks shall be one cent per share up to and including the 1059
1399+first ten thousand authorized shares, one-half cent per share for each 1060
1400+authorized share in excess of ten thousand shares up to and including 1061
1401+one hundred thousand shares, one-quarter cent per share for each 1062
1402+authorized share in excess of one hundred thousand shares up to and 1063
1403+including one million shares and one-fifth cent per share for each 1064
1404+authorized share in excess of one million shares. 1065
1405+(p) (1) One or more persons may organize an interim Connecticut 1066
1406+bank solely (A) for the acquisition of an existing bank, whether by 1067
1407+acquisition of stock, by acquisition of assets, or by merger or 1068
1408+consolidation, or (B) to facilitate any other corporate transaction 1069
1409+authorized by this title in which the commissioner has determined that 1070
1410+such transaction has adequate regulatory supervision to justify the 1071
1411+organization of an interim Connecticut bank. Such interim Connecticut 1072
1412+bank shall not accept deposits or otherwise commence business. 1073
1413+Subdivision (2) of subsection (c) and subsections (d), (f), (g), (h) and (o) 1074
1414+of this section shall not apply to the organization of an interim bank, 1075
1415+provided the commissioner may, in the commissioner's discretion, 1076
1416+order a hearing under subsection (e) or require that the organizers 1077
1417+publish or mail the proposed certificate of incorporation or both. The 1078
1418+approving authority for an interim Connecticut bank shall be the 1079
1419+commissioner acting alone. If the approving authority determines that 1080
1420+the organization of the interim Connecticut bank complies with 1081
1421+applicable law, the approving authority shall issue a temporary 1082
1422+certificate of authority conditioned on the approval by the appropriate 1083
1423+supervisory agency of the corporate transaction for which the interim 1084
1424+Connecticut bank is formed. 1085
1425+(2) (A) Notwithstanding any provision of this title, for the period 1086
1426+from June 13, 2011, to September 30, 2013, inclusive, one or more 1087
1427+Bill No.
1428+
1429+
1430+
1431+LCO No. 6185 39 of 137
1432+
1433+persons may apply to the commissioner for the conditional preliminary 1088
1434+approval of one or more expedited Connecticut banks organized 1089
1435+primarily for the purpose of assuming liabilities and purchasing assets 1090
1436+from the Federal Deposit Insurance Corporation when the Federal 1091
1437+Deposit Insurance Corporation is acting as receiver or conservator of an 1092
1438+insured depository institution. The application shall be made on a form 1093
1439+acceptable to the commissioner and shall be executed and 1094
1440+acknowledged by the applicant or applicants. Such application shall 1095
1441+contain sufficient information for the commissioner to evaluate (i) the 1096
1442+amount, type and sources of capital that would be available to the bank 1097
1443+or banks; (ii) the ownership structure and holding companies, if any, 1098
1444+over the bank or banks; (iii) the identity, biographical information and 1099
1445+banking experience of each of the initial organizers and prospective 1100
1446+initial directors, senior executive officers and any individual, group or 1101
1447+proposed shareholders of the bank that will own or control ten per cent 1102
1448+or more of the stock of the bank or banks; (iv) the overall strategic plan 1103
1449+of the organizers and investors for the bank or banks; and (v) a 1104
1450+preliminary business plan outlining intended product and business 1105
1451+lines, retail branching plans and capital, earnings and liquidity 1106
1452+projections. The commissioner, acting alone, shall grant conditional 1107
1453+preliminary approval of such application to organize if the 1108
1454+commissioner determines that the organizers have available sufficient 1109
1455+committed funds to invest in the bank or banks; the organizers and 1110
1456+proposed directors possess capacity and fitness for the duties and 1111
1457+responsibilities with which they will be charged; the proposed bank or 1112
1458+banks have a reasonable chance of success and will be operated in a safe 1113
1459+and sound manner; and the fee for investigating and processing the 1114
1460+application has been paid in accordance with subparagraph (H) of 1115
1461+subdivision (1) of subsection (d) of section 36a-65. Such preliminary 1116
1462+approval shall be subject to such conditions as the commissioner deems 1117
1463+appropriate, including the requirements that the bank or banks not 1118
1464+commence the business of a Connecticut bank until after their bid or 1119
1465+application for a particular insured depository institution is accepted by 1120
1466+the Federal Deposit Insurance Corporation, that the background checks 1121
1467+Bill No.
1468+
1469+
1470+
1471+LCO No. 6185 40 of 137
1472+
1473+are satisfactory, and that the organizers submit, for the safety and 1122
1474+soundness review by the commissioner, more detailed operating plans 1123
1475+and current financial statements as potential acquisition transactions are 1124
1476+considered, and such plans and statements are satisfactory to the 1125
1477+commissioner. The commissioner may alter, suspend or revoke the 1126
1478+conditional preliminary approval if the commissioner deems any 1127
1479+interim development warrants such action. The conditional preliminary 1128
1480+approval shall expire eighteen months from the date of approval, unless 1129
1481+extended by the commissioner. 1130
1482+(B) The commissioner shall not issue a final certificate of authority to 1131
1483+commence the business of a Connecticut bank or banks under this 1132
1484+subdivision until all conditions and preopening requirements and 1133
1485+applicable state and federal regulatory requirements have been met and 1134
1486+the fee for issuance of a final certificate of authority for an expedited 1135
1487+Connecticut bank has been paid in accordance with subparagraph (M) 1136
1488+of subdivision (1) of subsection (d) of section 36a-65. The commissioner 1137
1489+may waive any requirement under this title or regulations adopted 1138
1490+under this title that is necessary for the consummation of an acquisition 1139
1491+involving an expedited Connecticut bank if the commissioner finds that 1140
1492+such waiver is advisable and in the interest of depositors or the public, 1141
1493+provided the commissioner shall not waive the requirement that the 1142
1494+institution's insurable accounts or deposits be federally insured. Any 1143
1495+such waiver granted by the commissioner under this subparagraph 1144
1496+shall be in writing and shall set forth the reason or reasons for the 1145
1497+waiver. The commissioner may impose conditions on the final certificate 1146
1498+of authority as the commissioner deems necessary to ensure that the 1147
1499+bank will be operated in a safe and sound manner. The commissioner 1148
1500+shall cause notice of the issuance of the final certificate of authority to be 1149
1501+published in the department's weekly bulletin. 1150
1502+(q) (1) As used in this subsection, "bankers' bank" means a 1151
1503+Connecticut bank that is (A) owned exclusively by (i) any combination 1152
1504+of banks, out-of-state banks, Connecticut credit unions, federal credit 1153
1505+unions, or out-of-state credit unions, or (ii) a bank holding company that 1154
1506+Bill No.
1507+
1508+
1509+
1510+LCO No. 6185 41 of 137
1511+
1512+is owned exclusively by any such combination, and (B) engaged 1155
1513+exclusively in providing services for, or that indirectly benefit, other 1156
1514+banks, out-of-state banks, Connecticut credit unions, federal credit 1157
1515+unions, or out-of-state credit unions and their directors, officers and 1158
1516+employees. 1159
1517+(2) One or more persons may organize a bankers' bank in accordance 1160
1518+with the provisions of this section, except that subsections (g) and (h) of 1161
1519+this section shall not apply. The approving authority for a bankers' bank 1162
1520+shall be the commissioner acting alone. Before granting a temporary 1163
1521+certificate of authority in the case of an application to organize a 1164
1522+bankers' bank, the approving authority shall consider (A) whether the 1165
1523+proposed bankers' bank will facilitate the provision of services that such 1166
1524+banks, out-of-state banks, Connecticut credit unions, federal credit 1167
1525+unions, or out-of-state credit unions would not otherwise be able to 1168
1526+readily obtain, and (B) the character and experience of the proposed 1169
1527+directors and officers. The application to organize a bankers' bank shall 1170
1528+be approved if the approving authority determines that the interest of 1171
1529+the public will be directly or indirectly served to advantage by the 1172
1530+establishment of the proposed bankers' bank, and the proposed 1173
1531+directors possess capacity and fitness for the duties and responsibilities 1174
1532+with which they will be charged. 1175
1533+(3) A bankers' bank shall have all of the powers of and be subject to 1176
1534+all of the requirements applicable to a Connecticut bank under this title 1177
1535+which are not inconsistent with this subsection, except to the extent the 1178
1536+commissioner limits such powers by regulation. Upon the written 1179
1537+request of a bankers' bank, the commissioner may waive specific 1180
1538+requirements of this title and the regulations adopted thereunder if the 1181
1539+commissioner finds that (A) the requirement pertains primarily to banks 1182
1540+that provide retail or consumer banking services and is inconsistent 1183
1541+with this subsection, and (B) the requirement may impede the ability of 1184
1542+the bankers' bank to compete or to provide desired services to its market 1185
1543+provided, any such waiver and the commissioner's findings shall be in 1186
1544+writing and shall be made available for public inspection. 1187
1545+Bill No.
1546+
1547+
1548+
1549+LCO No. 6185 42 of 137
1550+
1551+(4) The commissioner may adopt regulations, in accordance with 1188
1552+chapter 54, to administer the provisions of this subsection. 1189
1553+(r) (1) As used in this subsection and section 36a-139, "community 1190
1554+bank" means a Connecticut bank that is organized pursuant to this 1191
1555+subsection and is subject to the provisions of this subsection and section 1192
1556+36a-139. 1193
1557+(2) One or more persons may organize a community bank in 1194
1558+accordance with the provisions of this section, except that subsection (g) 1195
1559+of this section shall not apply. Any such community bank shall 1196
1560+commence business with a minimum equity capital of at least three 1197
1561+million dollars. The approving authority for a community bank shall be 1198
1562+the commissioner acting alone. In addition to the considerations and 1199
1563+determinations required by subsection (h) of this section, before 1200
1564+granting a temporary certificate of authority to organize a community 1201
1565+bank, the approving authority shall determine that (A) each of the 1202
1566+proposed directors and proposed executive officers, as defined in 1203
1567+subparagraph (D) of subdivision (3) of this subsection, possesses 1204
1568+capacity and fitness for the duties and responsibilities with which such 1205
1569+director or officer will be charged, and (B) there is satisfactory 1206
1570+community support for the proposed community bank based on 1207
1571+evidence of such support provided by the organizers to the approving 1208
1572+authority. If the approving authority cannot make such determination 1209
1573+with respect to any such proposed director or proposed executive 1210
1574+officer, the approving authority may refuse to allow such proposed 1211
1575+director or proposed executive officer to serve in such capacity in the 1212
1576+proposed community bank. 1213
1577+(3) A community bank shall have all of the powers of and be subject 1214
1578+to all of the requirements and limitations applicable to a Connecticut 1215
1579+bank under this title which are not inconsistent with this subsection, 1216
1580+except: (A) No community bank may (i) exercise any of the fiduciary 1217
1581+powers granted to Connecticut banks by law until express authority 1218
1582+therefor has been given by the approving authority, (ii) establish and 1219
1583+Bill No.
1584+
1585+
1586+
1587+LCO No. 6185 43 of 137
1588+
1589+maintain one or more mutual funds, (iii) invest in derivative securities 1220
1590+other than mortgage-backed securities fully guaranteed by 1221
1591+governmental agencies or government sponsored agencies, (iv) own 1222
1592+any real estate for the present or future use of the bank unless the 1223
1593+approving authority finds, based on an independently prepared 1224
1594+analysis of costs and benefits, that it would be less costly to the bank to 1225
1595+own instead of lease such real estate, or (v) make mortgage loans 1226
1596+secured by nonresidential real estate the aggregate amount of which, at 1227
1597+the time of origination, exceeds ten per cent of all assets of such bank; 1228
1598+(B) the aggregate amount of all loans made by a community bank shall 1229
1599+not exceed eighty per cent of the total deposits held by such bank; (C) (i) 1230
1600+the total direct or indirect liabilities of any one obligor, whether or not 1231
1601+fully secured and however incurred, to any community bank, exclusive 1232
1602+of such bank's investment in the investment securities of such obligor, 1233
1603+shall not exceed at the time incurred ten per cent of the equity capital 1234
1604+and reserves for loan and lease losses of such bank, and (ii) the 1235
1605+limitations set forth in subsection (a) of section 36a-262 shall apply to 1236
1606+this subparagraph; and (D) the limitations set forth in subsection (a) of 1237
1607+section 36a-263 shall apply to all community banks, provided, a 1238
1608+community bank may (i) make a mortgage loan to any director or 1239
1609+executive officer secured by premises occupied or to be occupied by 1240
1610+such director or officer as a primary residence, (ii) make an educational 1241
1611+loan to any director or executive officer for the education of any child of 1242
1612+such director or executive officer, and (iii) extend credit to any director 1243
1613+or executive officer in an amount not exceeding ten thousand dollars for 1244
1614+extensions of credit not otherwise specifically authorized in this 1245
1615+subparagraph. The aggregate amount of all loans or extensions of credit 1246
1616+made by a community bank pursuant to this subparagraph shall not 1247
1617+exceed thirty-three and one-third per cent of the equity capital and 1248
1618+reserves for loan and lease losses of such bank. As used in this 1249
1619+subparagraph, "executive officer" means every officer of a community 1250
1620+bank who participates or has authority to participate, other than in the 1251
1621+capacity of a director, in major policy-making functions of the bank, 1252
1622+regardless of whether such officer has an official title or whether such 1253
1623+Bill No.
1624+
1625+
1626+
1627+LCO No. 6185 44 of 137
1628+
1629+officer serves without salary or other compensation. The vice president, 1254
1630+chief financial officer, secretary and treasurer of a community bank are 1255
1631+presumed to be executive officers unless, by resolution of the governing 1256
1632+board or by the bank's bylaws, any such officer is excluded from 1257
1633+participation in major policy-making functions, other than in the 1258
1634+capacity of a director of the bank, and such officer does not actually 1259
1635+participate in major policy-making functions. 1260
1636+(4) The audit and examination requirements set forth in section 36a-1261
1637+86 shall apply to each community bank. 1262
1638+(5) The commissioner may adopt regulations, in accordance with 1263
1639+chapter 54, to administer the provisions of this subsection and section 1264
1640+36a-139. 1265
1641+(s) (1) As used in this subsection, "community development bank" 1266
1642+means a Connecticut bank that is organized to serve the banking needs 1267
1643+of a well-defined neighborhood, community or other geographic area as 1268
1644+determined by the commissioner, primarily, but not exclusively, by 1269
1645+making commercial loans in amounts of one hundred fifty thousand 1270
1646+dollars or less to existing businesses or to persons seeking to establish 1271
1647+businesses located within such neighborhood, community or 1272
1648+geographic area. 1273
1649+(2) One or more persons may organize a community development 1274
1650+bank in accordance with the provisions of this section, except that 1275
1651+subsection (g) of this section shall not apply. The approving authority 1276
1652+for a community development bank shall be the commissioner acting 1277
1653+alone. Any such community development bank shall commence 1278
1654+business with a minimum equity capital det ermined by the 1279
1655+commissioner to be appropriate for the proposed activities of such bank, 1280
1656+provided, if such proposed activities include accepting deposits, such 1281
1657+minimum equity capital shall be sufficient to enable such deposits to be 1282
1658+insured by the Federal Deposit Insurance Corporation or its successor 1283
1659+agency. 1284
1660+Bill No.
1661+
1662+
1663+
1664+LCO No. 6185 45 of 137
1665+
1666+(3) The state, acting through the State Treasurer, may be the sole 1285
1667+organizer of a community development bank or may participate with 1286
1668+any other person or persons in the organization of any community 1287
1669+development bank, and may own all or a part of any capital stock of 1288
1670+such bank. No application fee shall be required under subparagraph (H) 1289
1671+of subdivision (1) of subsection (d) of section 36a-65 and no franchise tax 1290
1672+shall be required under subsection (o) of this section for any community 1291
1673+development bank organized by or in participation with the state. 1292
1674+(4) In addition to the considerations and determinations required by 1293
1675+subsection (h) of this section, before granting a temporary certificate of 1294
1676+authority to organize a community development bank, the approving 1295
1677+authority shall determine that (A) each of the proposed directors and 1296
1678+proposed executive officers possesses capacity and fitness for the duties 1297
1679+and responsibilities with which such director or officer will be charged, 1298
1680+and (B) there is satisfactory community support for the proposed 1299
1681+community development bank based on evidence of such support 1300
1682+provided by the organizers to the approving authority. If the approving 1301
1683+authority cannot make such determination with respect to any such 1302
1684+proposed director or proposed executive officer, the approving 1303
1685+authority may refuse to allow such proposed director or proposed 1304
1686+executive officer to serve in such capacity in the proposed community 1305
1687+development bank. As used in this subdivision, "executive officer" 1306
1688+means every officer of a community development bank who 1307
1689+participates or has authority to participate, other than in the capacity of 1308
1690+a director, in major policy-making functions of the bank, regardless of 1309
1691+whether such officer has an official title or whether such officer serves 1310
1692+without salary or other compensation. The vice president, chief financial 1311
1693+officer, secretary and treasurer of a community development bank are 1312
1694+presumed to be executive officers unless, by resolution of the governing 1313
1695+board or by the bank's bylaws, any such officer is excluded from 1314
1696+participation in major policy-making functions, other than in the 1315
1697+capacity of a director of the bank, and such officer does not actually 1316
1698+participate in major policy-making functions. 1317
1699+Bill No.
1700+
1701+
1702+
1703+LCO No. 6185 46 of 137
1704+
1705+(5) Notwithstanding any contrary provision of this title: (A) The 1318
1706+commissioner may limit the powers that may be exercised by a 1319
1707+community development bank or impose conditions on the exercise by 1320
1708+such bank of any power allowed by this title as the commissioner deems 1321
1709+necessary in the interest of the public and for the safety and soundness 1322
1710+of the community development bank, provided, any such limitations or 1323
1711+conditions, or both, shall be set forth in the final certificate of authority 1324
1712+issued in accordance with subsection (l) of this section; and (B) the 1325
1713+commissioner may waive in writing any requirement imposed on a 1326
1714+community development bank under this title or any regulation 1327
1715+adopted under this title if the commissioner finds that such requirement 1328
1716+is inconsistent with the powers that may be exercised by such 1329
1717+community development bank under its final certificate of authority. 1330
1718+(6) The commissioner may adopt regulations, in accordance with 1331
1719+chapter 54, to carry out the provisions of this subsection. 1332
1720+(t) (1) One or more persons may organize an [uninsured] innovation 1333
1721+bank in accordance with the provisions of this section, except that 1334
1722+subsection (g) of this section shall not apply. The approving authority 1335
1723+for an [uninsured] innovation bank shall be the commissioner acting 1336
1724+alone. Any such [uninsured] innovation bank shall commence business 1337
1725+with a minimum equity capital of at least five million dollars unless the 1338
1726+commissioner establishes a different minimum capital requirement for 1339
1727+such [uninsured] innovation bank based upon its proposed activities. 1340
1728+(2) An [uninsured] innovation bank shall have all of the powers of 1341
1729+and be subject to all of the requirements and limitations applicable to a 1342
1730+Connecticut bank under this title which are not inconsistent with this 1343
1731+subsection, except no [uninsured] innovation bank may accept retail 1344
1732+deposits and, notwithstanding any provision of this title, sections 36a-1345
1733+30 to 36a-34, inclusive, do not apply to [uninsured] innovation banks. 1346
1734+(3) (A) An [uninsured] innovation bank shall display conspicuously, 1347
1735+at each window or other place where deposits are usually accepted, a 1348
1736+Bill No.
1737+
1738+
1739+
1740+LCO No. 6185 47 of 137
1741+
1742+sign stating that deposits are not insured by the Federal Deposit 1349
1743+Insurance Corporation or its successor agency. 1350
1744+(B) An [uninsured] innovation bank shall either (i) include in boldface 1351
1745+conspicuous type on each signature card, passbook, and instrument 1352
1746+evidencing a deposit the following statement: "This deposit is not 1353
1747+insured by the FDIC", or (ii) require each depositor to execute a 1354
1748+statement that acknowledges that the initial deposit and all future 1355
1749+deposits at the [uninsured] innovation bank are not insured by the 1356
1750+Federal Deposit Insurance Corporation or its successor agency. The 1357
1751+[uninsured] innovation bank shall retain such acknowledgment as long 1358
1752+as the depositor maintains any deposit with the [uninsured] innovation 1359
1753+bank. 1360
1754+(C) An [uninsured] innovation bank shall include on all of its deposit-1361
1755+related advertising a conspicuous statement that deposits are not 1362
1756+insured by the Federal Deposit Insurance Corporation or its successor 1363
1757+agency. 1364
1758+(4) Notwithstanding any provision of this title, an innovation bank 1365
1759+may accept and hold nonretail deposits, including, but not limited to, 1366
1760+nonretail deposits received from a corporation that owns the majority of 1367
1761+the shares of the innovation bank. An innovation bank may secure 1368
1762+deposit insurance for such nonretail deposits, including from the 1369
1763+Federal Deposit Insurance Corporation. 1370
1764+(u) (1) Each trust bank and [uninsured] innovation bank shall keep 1371
1765+assets on deposit in the amount of at least one million dollars with such 1372
1766+banks as the commissioner may approve, provided a trust bank or 1373
1767+[uninsured] innovation bank that received its final certificate of 1374
1768+authority prior to May 12, 2004, shall keep assets on deposit as follows: 1375
1769+At least two hundred fifty thousand dollars no later than one year from 1376
1770+May 12, 2004, at least five hundred thousand dollars no later than two 1377
1771+years from said date, at least seven hundred fifty thousand dollars no 1378
1772+later than three years from said date and at least one million dollars no 1379
1773+Bill No.
1774+
1775+
1776+
1777+LCO No. 6185 48 of 137
1778+
1779+later than four years from said date. No trust bank or [uninsured] 1380
1780+innovation bank shall make a deposit pursuant to this section until the 1381
1781+bank at which the assets are to be deposited and the trust bank or 1382
1782+[uninsured] innovation bank shall have executed a deposit agreement 1383
1783+satisfactory to the commissioner. The value of such assets shall be based 1384
1784+upon the principal amount or market value, whichever is lower. If the 1385
1785+commissioner determines that an asset that otherwise qualifies under 1386
1786+this section shall be valued at less than the amount otherwise provided 1387
1787+in this subdivision, the commissioner shall so notify the trust bank or 1388
1788+[uninsured] innovation bank, which shall thereafter value such asset as 1389
1789+directed by the commissioner. 1390
1790+(2) As used in this subsection, "assets" means: (A) United States dollar 1391
1791+deposits payable in the United States, other than certificates of deposit; 1392
1792+(B) bonds, notes, debentures or other obligations of the United States or 1393
1793+any agency or instrumentality thereof, or guaranteed by the United 1394
1794+States, or of this state or of a county, city, town, village, school district, 1395
1795+or instrumentality of this state or guaranteed by this state; (C) bonds, 1396
1796+notes, debentures or other obligations issued by the Federal Home Loan 1397
1797+Mortgage Corporation and the Federal National Mortgage Corporation; 1398
1798+(D) commercial paper payable in dollars in the United States, provided 1399
1799+such paper is rated in one of the three highest rating categories by a 1400
1800+rating service recognized by the commissioner. In the event that an issue 1401
1801+of commercial paper is rated by more than one recognized rating 1402
1802+service, it shall be rated in one of the three highest rating categories by 1403
1803+each such rating service; (E) negotiable certificates of deposit that are 1404
1804+payable in the United States; (F) reserves held at a federal reserve bank; 1405
1805+and (G) such other assets as determined by the commissioner upon 1406
1806+written application. 1407
1807+Sec. 17. Subsections (a) to (h), inclusive, of section 36a-139a of the 1408
1808+general statutes are repealed and the following is substituted in lieu 1409
1809+thereof (Effective July 1, 2024): 1410
1810+(a) Any [uninsured] innovation bank or any trust bank may, upon the 1411
1811+Bill No.
1812+
1813+
1814+
1815+LCO No. 6185 49 of 137
1816+
1817+approval of the commissioner, convert to a Connecticut bank that is 1412
1818+authorized to accept retail deposits and operate without the limitations 1413
1819+provided in subdivisions (2) and (3) of subsection (t) and subsection (u) 1414
1820+of section 36a-70, as amended by this act, and subsection (b) of section 1415
1821+36a-250. 1416
1822+(b) The converting bank shall file with the commissioner a proposed 1417
1823+plan of conversion, a copy of the proposed amended certificate of 1418
1824+incorporation and a certificate by the secretary of the converting bank 1419
1825+that the proposed plan of conversion and proposed amended certificate 1420
1826+of incorporation have been approved in accordance with subsection (c) 1421
1827+of this section. 1422
1828+(c) The proposed plan of conversion and proposed amended 1423
1829+certificate of incorporation shall require the approval of a majority of the 1424
1830+governing board of the converting bank and the favorable vote of not 1425
1831+less than two-thirds of the holders of each class of the converting 1426
1832+[bank’s] bank's capital stock, if any, or in the case of a converting mutual 1427
1833+bank, the corporators thereof, cast at a meeting called to consider such 1428
1834+conversion. 1429
1835+(d) Any shareholder of a capital stock Connecticut bank that proposes 1430
1836+to convert under this section, who, on or before the date of the 1431
1837+[shareholders’] shareholders' meeting to vote on such conversion, 1432
1838+objects to the conversion by filing a written objection with the secretary 1433
1839+of such bank may, within ten days after the effective date of such 1434
1840+conversion, make written demand upon the bank for payment of such 1435
1841+shareholder's stock. Any such shareholder that makes such objection 1436
1842+and demand shall have the same rights as those of a shareholder that 1437
1843+asserts appraisal rights with respect to the merger of two or more capital 1438
1844+stock Connecticut banks. 1439
1845+(e) The commissioner shall approve a conversion under this section 1440
1846+if the commissioner determines that: (1) The converting bank has 1441
1847+complied with all applicable provisions of law; (2) the converting bank 1442
1848+Bill No.
1849+
1850+
1851+
1852+LCO No. 6185 50 of 137
1853+
1854+has equity capital of at least five million dollars; (3) the converting bank 1443
1855+has received satisfactory ratings on its most recent safety and soundness 1444
1856+examination; (4) the proposed conversion will serve the public necessity 1445
1857+and convenience; and (5) the converting bank will provide adequate 1446
1858+services to meet the banking needs of all community residents, 1447
1859+including low-income residents and moderate-income residents to the 1448
1860+extent permitted by its charter, in accordance with a plan submitted by 1449
1861+the converting bank to the commissioner, in such form and containing 1450
1862+such information as the commissioner may require. Upon receiving any 1451
1863+such plan, the commissioner shall make the plan available for public 1452
1864+inspection and comment at the Department of Banking and cause notice 1453
1865+of its submission and availability for inspection and comment to be 1454
1866+published in the department's weekly bulletin. With the concurrence of 1455
1867+the commissioner, the converting bank shall publish, in the form of a 1456
1868+legal advertisement in a newspaper having a substantial circulation in 1457
1869+the area, notice of such plan's submission and availability for public 1458
1870+inspection and comment. The notice shall state that the inspection and 1459
1871+comment period will last for a period of thirty days from the date of 1460
1872+publication. The commissioner shall not make such determination until 1461
1873+the expiration of the thirty-day period. In making such determination, 1462
1874+the commissioner shall, unless clearly inapplicable, consider, among 1463
1875+other factors, whether the plan identifies specific unmet credit and 1464
1876+consumer banking needs in the local community and specifies how such 1465
1877+needs will be satisfied, provides for sufficient distribution of banking 1466
1878+services among branches or satellite devices, or both, located in low-1467
1879+income neighborhoods, contains adequate assurances that banking 1468
1880+services will be offered on a nondiscriminatory basis and demonstrates 1469
1881+a commitment to extend credit for housing, small business and 1470
1882+consumer purposes in low-income neighborhoods. 1471
1883+(f) After receipt of the commissioner's approval, the converting bank 1472
1884+shall promptly file such approval and its amended certificate of 1473
1885+incorporation with the Secretary of the State and with the town clerk of 1474
1886+the town in which its principal office is located. Upon such filing, the 1475
1887+Bill No.
1888+
1889+
1890+
1891+LCO No. 6185 51 of 137
1892+
1893+bank shall cease to be an [uninsured] innovation bank subject to the 1476
1894+provisions of subdivisions (2) and (3) of subsection (t) and subsection 1477
1895+(u) of section 36a-70, as amended by this act, or a trust bank, subject to 1478
1896+the limitations provided in subsection (u) of section 36a-70, as amended 1479
1897+by this act, and subsection (b) of section 36a-250, and shall be a 1480
1898+Connecticut bank subject to all of the requirements and limitations and 1481
1899+possessed of all rights, privileges and powers granted to it by its 1482
1900+amended certificate of incorporation and by the provisions of the 1483
1901+general statutes applicable to its type of Connecticut bank. Such 1484
1902+Connecticut bank shall not commence business unless its insurable 1485
1903+accounts and deposits are insured by the Federal Deposit Insurance 1486
1904+Corporation or its successor agency. Upon such filing with the Secretary 1487
1905+of the State and with the town clerk, all of the assets, business and good 1488
1906+will of the converting bank shall be transferred to and vested in such 1489
1907+Connecticut bank without any deed or instrument of conveyance, 1490
1908+provided the converting bank may execute any deed or instrument of 1491
1909+conveyance as is convenient to confirm such transfer. Such Connecticut 1492
1910+bank shall be subject to all of the duties, relations, obligations, trusts and 1493
1911+liabilities of the converting bank, whether as debtor, depository, 1494
1912+registrar, transfer agent, executor, administrator or otherwise, and shall 1495
1913+be liable to pay and discharge all such debts and liabilities, and to 1496
1914+perform all such duties in the same manner and to the same extent as if 1497
1915+the Connecticut bank had itself incurred the obligation or liability or 1498
1916+assumed the duty or relation. All rights of creditors of the converting 1499
1917+bank and all liens upon the property of such bank shall be preserved 1500
1918+unimpaired and the Connecticut bank shall be entitled to receive, 1501
1919+accept, collect, hold and enjoy any and all gifts, bequests, devises, 1502
1920+conveyances, trusts and appointments in favor of or in the name of the 1503
1921+converting bank and whether made or created to take effect prior to or 1504
1922+after the conversion. 1505
1923+(g) The persons named as directors in the amended certificate of 1506
1924+incorporation shall be the directors of such Connecticut bank until the 1507
1925+first annual election of directors after the conversion or until the 1508
1926+Bill No.
1927+
1928+
1929+
1930+LCO No. 6185 52 of 137
1931+
1932+expiration of their terms as directors, and shall have the power to take 1509
1933+all necessary actions and to adopt bylaws concerning the business and 1510
1934+management of such Connecticut bank. 1511
1935+(h) No such Connecticut bank resulting from the conversion of an 1512
1936+[uninsured] innovation bank may exercise any of the fiduciary powers 1513
1937+granted to Connecticut banks by law until express authority therefor has 1514
1938+been given by the commissioner, unless such authority was previously 1515
1939+granted to the converting bank. 1516
1940+Sec. 18. Subsections (a) to (g), inclusive, of section 36a-139b of the 1517
1941+general statutes are repealed and the following is substituted in lieu 1518
1942+thereof (Effective July 1, 2024): 1519
1943+(a) Any Connecticut bank may, upon the approval of the 1520
1944+commissioner, convert to an [uninsured] innovation bank. 1521
1945+(b) The converting bank shall file with the commissioner a proposed 1522
1946+plan of conversion, a copy of the proposed amended certificate of 1523
1947+incorporation and a certificate by the secretary of the converting bank 1524
1948+that the proposed plan of conversion and proposed certificate of 1525
1949+incorporation have been approved in accordance with subsection (c) of 1526
1950+this section. 1527
1951+(c) The proposed plan of conversion and proposed amended 1528
1952+certificate of incorporation shall require the approval of a majority of the 1529
1953+governing board of the converting bank and the favorable vote of not 1530
1954+less than two-thirds of the holders of each class of the [bank’s] bank's 1531
1955+capital stock, if any, or, in the case of a mutual bank, the corporators 1532
1956+thereof, cast at a meeting called to consider such conversion. 1533
1957+(d) Any shareholder of a converting capital stock Connecticut bank 1534
1958+that proposes to convert to an [uninsured] innovation bank who, on or 1535
1959+before the date of the [shareholders’] shareholders' meeting to vote on 1536
1960+such conversion, objects to the conversion by filing a written objection 1537
1961+with the secretary of such bank may, within ten days after the effective 1538
1962+Bill No.
1963+
1964+
1965+
1966+LCO No. 6185 53 of 137
1967+
1968+date of such conversion, make written demand upon the converted bank 1539
1969+for payment of such [shareholder’s] shareholder's stock. Any such 1540
1970+shareholder that makes such objection and demand shall have the same 1541
1971+rights as those of a shareholder who dissents from the merger of two or 1542
1972+more capital stock Connecticut banks. 1543
1973+(e) If applicable, a converting Connecticut bank shall liquidate all of 1544
1974+its retail deposits with the approval of the commissioner. The converting 1545
1975+bank shall file with the commissioner a written notice of its intent to 1546
1976+liquidate all of its retail deposits together with a plan of liquidation and 1547
1977+a proposed notice to depositors approved and executed by a majority of 1548
1978+its governing board. The commissioner shall approve the plan and the 1549
1979+notice to depositors. The commissioner shall not approve a sale of the 1550
1980+retail deposits of the converting bank if the purchasing insured 1551
1981+depository institution, including all insured depository institutions 1552
1982+which are affiliates of such institution, upon consummation of the sale, 1553
1983+would control thirty per cent or more of the total amount of deposits of 1554
1984+insured depository institutions in this state, unless the commissioner 1555
1985+permits a greater percentage of such deposits. The converting and 1556
1986+purchasing institutions shall file with the commissioner a written 1557
1987+agreement approved and executed by a majority of the governing board 1558
1988+of each institution prescribing the terms and conditions of the 1559
1989+transaction. 1560
1990+(f) The commissioner shall approve a conversion under this section if 1561
1991+the commissioner determines that: (1) The converting bank has 1562
1992+complied with all applicable provisions of law; (2) the converting bank 1563
1993+has equity capital of at least five million dollars unless the commissioner 1564
1994+establishes a different minimum capital requirement based on the 1565
1995+proposed activities of the converting bank; (3) the converting bank has 1566
1996+liquidated all of its retail deposits, if any, and has no deposits that are 1567
1997+insured by the Federal Deposit Insurance Corporation or its successor 1568
1998+agency; and (4) the proposed conversion will serve the public necessity 1569
1999+and convenience. The commissioner shall not approve such conversion 1570
2000+unless the commissioner considers the findings of the most recent state 1571
2001+Bill No.
2002+
2003+
2004+
2005+LCO No. 6185 54 of 137
2006+
2007+or federal safety and soundness examination of the converting bank, 1572
2008+and the effect of the proposed conversion on the financial resources and 1573
2009+future prospects of the converting bank. 1574
2010+(g) After receipt of the [commissioner’s] commissioner's approval for 1575
2011+the conversion, the converting bank shall promptly file such approval 1576
2012+and its certificate of incorporation with the Secretary of the State and 1577
2013+with the town clerk of the town in which its principal office is located. 1578
2014+Upon such filing, the converted Connecticut bank shall not accept retail 1579
2015+deposits and shall be an [uninsured] innovation bank, subject to the 1580
2016+limitations in subdivisions (2) and (3) of subsection (t) and subsection 1581
2017+(u) of section 36a-70, as amended by this act. Upon such conversion, the 1582
2018+converted Connecticut bank possesses all of the rights, privileges and 1583
2019+powers granted to it by its certificate of incorporation and by the 1584
2020+provisions of the general statutes applicable to its type of Connecticut 1585
2021+bank, and all of the assets, business and good will of the converting bank 1586
2022+shall be transferred to and vested in the converted Connecticut bank 1587
2023+without any deed or instrument of conveyance, provided the converting 1588
2024+bank may execute any deed or instrument of conveyance as is 1589
2025+convenient to confirm such transfer. The converted Connecticut bank 1590
2026+shall be subject to all of the duties, relations, obligations, trusts and 1591
2027+liabilities of the converting bank, whether as debtor, depository, 1592
2028+registrar, transfer agent, executor, administrator or otherwise, and shall 1593
2029+be liable to pay and discharge all such debts and liabilities, and to 1594
2030+perform all such duties in the same manner and to the same extent as if 1595
2031+the converted bank had itself incurred the obligation or liability or 1596
2032+assumed the duty or relation. All rights of creditors of the converting 1597
2033+bank and all liens upon the property of such bank shall be preserved 1598
2034+unimpaired and the [uninsured] innovation bank shall be entitled to 1599
2035+receive, accept, collect, hold and enjoy any and all gifts, bequests, 1600
2036+devises, conveyances, trusts and appointments in favor of or in the 1601
2037+name of the converting bank and whether made or created to take effect 1602
2038+prior to or after the conversion. 1603
2039+Sec. 19. Section 36a-215 of the general statutes is repealed and the 1604
2040+Bill No.
2041+
2042+
2043+
2044+LCO No. 6185 55 of 137
2045+
2046+following is substituted in lieu thereof (Effective July 1, 2024): 1605
2047+If, in the opinion of the commissioner, a trust bank, or an [uninsured] 1606
2048+innovation bank, in danger of becoming insolvent, is not likely to be able 1607
2049+to meet the demands of its depositors, in the case of an [uninsured] 1608
2050+innovation bank, or pay its obligations in the normal course of business, 1609
2051+or is likely to incur losses that may deplete all or substantially all of its 1610
2052+capital, the commissioner may require such trust bank or [uninsured] 1611
2053+innovation bank to increase the assets kept on deposit as required by 1612
2054+subsection (u) of section 36a-70, as amended by this act, to an amount 1613
2055+that would be sufficient to meet the costs and expenses incurred by the 1614
2056+commissioner pursuant to section 36a-222 and all fees and assessments 1615
2057+due the commissioner. Such assets shall be deposited with such bank as 1616
2058+the commissioner may designate, and shall be in such form and subject 1617
2059+to such conditions as the commissioner deems necessary. 1618
2060+Sec. 20. Subsection (a) of section 36a-220 of the general statutes is 1619
2061+repealed and the following is substituted in lieu thereof (Effective July 1, 1620
2062+2024): 1621
2063+(a) If it appears to the commissioner that (1) the charter of any 1622
2064+Connecticut bank or out-of-state bank that maintains in this state a 1623
2065+branch, as defined in section 36a-410, or the certificate of authority of 1624
2066+any Connecticut credit union or out-of-state credit union that maintains 1625
2067+in this state a branch, as defined in section 36a-435b, is forfeited, (2) the 1626
2068+public is in danger of being defrauded by such bank or credit union, it 1627
2069+is unsafe or unsound for such bank or credit union to continue business 1628
2070+or its assets are being dissipated, (3) such bank or credit union is 1629
2071+insolvent, is in danger of imminent insolvency or that its capital is not 1630
2072+adequate to support the level of risk, or (4) the Federal Deposit 1631
2073+Insurance Corporation, National Credit Union Administration or their 1632
2074+successor agencies have terminated insurance of the insurable accounts 1633
2075+or deposits of such bank, unless such Connecticut bank has filed an 1634
2076+application with the commissioner to convert to an [uninsured] 1635
2077+innovation bank pursuant to section 36a-139b, as amended by this act, 1636
2078+Bill No.
2079+
2080+
2081+
2082+LCO No. 6185 56 of 137
2083+
2084+or credit union, the commissioner shall apply to the superior court for 1637
2085+the judicial district of Hartford or the judicial district in which the main 1638
2086+office of such bank or credit union is located for an injunction restraining 1639
2087+such bank or credit union from conducting business or, in the case of a 1640
2088+Connecticut bank or Connecticut credit union, for the appointment of a 1641
2089+conservator or for a receiver to wind up its affairs. 1642
2090+Sec. 21. Subsections (a) to (c), inclusive, of section 36a-221a of the 1643
2091+general statutes are repealed and the following is substituted in lieu 1644
2092+thereof (Effective July 1, 2024): 1645
2093+(a) (1) The receiver of a trust bank or [uninsured] innovation bank 1646
2094+shall, as soon after the receiver's appointment as is practicable, 1647
2095+terminate all fiduciary positions the bank holds, surrender all property 1648
2096+held by the bank as a fiduciary and settle the fiduciary accounts. With 1649
2097+the approval of the Superior Court, the receiver of a trust bank or 1650
2098+[uninsured] innovation bank shall release all segregated and identifiable 1651
2099+fiduciary property held by the bank to one or more successor fiduciaries, 1652
2100+and may sell one or more fiduciary accounts to one or more successor 1653
2101+fiduciaries on terms that appear to be in the best interest of the bank's 1654
2102+estate and the persons interested in the property or fiduciary accounts. 1655
2103+(2) Upon the sale or transfer of fiduciary property or a fiduciary 1656
2104+account, the successor fiduciary shall be automatically substituted 1657
2105+without further action and without any order of any court. Prior to the 1658
2106+effective date of substitution of the successor fiduciary, the receiver shall 1659
2107+mail notice of such substitution to each person to whom such bank 1660
2108+provides periodic reports of fiduciary activity. The notice shall include: 1661
2109+(A) The name of such bank, (B) the name of the successor fiduciary, and 1662
2110+(C) the effective date of the substitution of the successor fiduciary. The 1663
2111+provisions of section 45a-245a shall not apply to the substitution of a 1664
2112+fiduciary under this section. 1665
2113+(b) A successor fiduciary shall have all of the rights, powers, duties 1666
2114+and obligations of such bank and shall be deemed to be named, 1667
2115+Bill No.
2116+
2117+
2118+
2119+LCO No. 6185 57 of 137
2120+
2121+nominated or appointed as fiduciary in any will, trust, court order or 1668
2122+similar written document or instrument that names, nominates or 1669
2123+appoints such bank as fiduciary, whether executed before or after the 1670
2124+successor fiduciary is substituted, provided the successor fiduciary shall 1671
2125+have no obligations or liabilities under this section for any acts, actions, 1672
2126+inactions or events occurring prior to the effective date of the 1673
2127+substitution. 1674
2128+(c) If commingled fiduciary money held by the trust bank or 1675
2129+[uninsured] innovation bank as trustee is insufficient to satisfy all 1676
2130+fiduciary claims to the commingled money, the receiver shall distribute 1677
2131+such money pro rata to all fiduciary claimants of such money based on 1678
2132+their proportionate interest. 1679
2133+Sec. 22. Section 36a-225 of the general statutes is repealed and the 1680
2134+following is substituted in lieu thereof (Effective July 1, 2024): 1681
2135+(a) The Superior Court, upon appointing a receiver of any 1682
2136+Connecticut bank, other than a trust bank or an [uninsured] innovation 1683
2137+bank, or Connecticut credit union, shall limit the time within which all 1684
2138+claims against the bank or credit union may be presented to the receiver, 1685
2139+and the court may, upon cause shown, extend such time and shall cause 1686
2140+such public notice of such limitation or extension of time to be given as 1687
2141+it deems reasonable and just. All claims not presented to the receiver 1688
2142+within the period limited shall be forever barred, except that any claim 1689
2143+for a deposit or share account, as shown by the depositor's or share 1690
2144+account holder's passbook, certificate of deposit, statement or other 1691
2145+evidence of deposit or the records of such bank or credit union, shall be 1692
2146+allowed by the receiver. 1693
2147+(b) (1) As soon as reasonably practicable after appointment of a 1694
2148+receiver of a trust bank or an [uninsured] innovation bank, the receiver 1695
2149+shall publish notice, in a newspaper of general circulation in each town 1696
2150+in which an office of such bank is located, stating that: (A) The bank has 1697
2151+been placed in receivership; (B) the depositors, clients and creditors are 1698
2152+Bill No.
2153+
2154+
2155+
2156+LCO No. 6185 58 of 137
2157+
2158+required to present their claims for payment on or before a specific date 1699
2159+and at a specified place; and (C) all safe deposit box holders and bailors 1700
2160+of property left with the bank are required to remove their property no 1701
2161+later than a specified date. The dates that the receiver selects may not be 1702
2162+earlier than the one hundred twenty-first day after the date of the notice, 1703
2163+and shall allow: (i) The affairs of the bank to be wound up as quickly as 1704
2164+feasible; and (ii) depositors, clients, creditors, safe deposit box holders 1705
2165+and bailors of property adequate time for presentation of claims, 1706
2166+withdrawal of accounts, and redemption of property. The receiver may 1707
2167+adjust the dates with the approval of the court and with or without 1708
2168+republication of notice if the receiver determines that additional time is 1709
2169+needed for any such presentation, withdrawal or redemption. 1710
2170+(2) As soon as reasonably practicable, given the state of the [bank’s] 1711
2171+bank's records and the adequacy of staffing, the receiver shall mail to 1712
2172+each of the [bank’s] bank's known depositors, clients, creditors, safe 1713
2173+deposit box holders and bailors of property left with the bank, at the 1714
2174+mailing address shown on the [bank’s] bank's records, an individual 1715
2175+notice containing the information required in the notice provided in 1716
2176+subdivision (1) of this subsection, and specific information pertinent to 1717
2177+the account or property of the addressee. The receiver of a trust bank or 1718
2178+[uninsured] innovation bank may require a fiduciary claimant to file a 1719
2179+proof of claim if the records of such bank are insufficient to identify the 1720
2180+[claimant’s] claimant's interest. 1721
2181+Sec. 23. Subsection (a) of section 36a-226a of the general statutes is 1722
2182+repealed and the following is substituted in lieu thereof (Effective July 1, 1723
2183+2024): 1724
2184+(a) A contract between a trust bank or [uninsured] innovation bank 1725
2185+in receivership and another person for bailment, of deposit for hire, or 1726
2186+for the lease of a safe, vault or safe deposit box terminates on the date 1727
2187+specified for removal of property in the notices that were published and 1728
2188+mailed in accordance with section 36a-225, as amended by this act, or a 1729
2189+later date approved by the receiver or the Superior Court. A person who 1730
2190+Bill No.
2191+
2192+
2193+
2194+LCO No. 6185 59 of 137
2195+
2196+has paid rental or storage charges for a period extending beyond the 1731
2197+date designated for removal of property has a claim against such bank's 1732
2198+estate for a refund of the unearned amount paid. 1733
2199+Sec. 24. Subsections (a) and (b) of section 36a-237 of the general 1734
2200+statutes are repealed and the following is substituted in lieu thereof 1735
2201+(Effective July 1, 2024): 1736
2202+(a) The assets of any Connecticut bank, other than a trust bank or 1737
2203+[uninsured] innovation bank, in the possession of a receiver shall be 1738
2204+distributed in the following order of priority: (1) All fees and 1739
2205+assessments due the commissioner; (2) the charges and expenses of 1740
2206+settling such bank's affairs; (3) all deposits; (4) all other liabilities; (5) any 1741
2207+liquidation account; and (6) in the case of a capital stock Connecticut 1742
2208+bank, the claims of shareholders or, in the case of a mutual savings bank 1743
2209+or mutual savings and loan association, the claims of depositors in 1744
2210+proportion to their respective deposits. 1745
2211+(b) (1) The assets of a trust bank or an [uninsured] innovation bank 1746
2212+shall be distributed in the following order of priority: (A) All fees and 1747
2213+assessments due the commissioner; (B) administrative expenses; (C) 1748
2214+approved claims of owners of secured trust funds on deposit to the 1749
2215+extent of the value of the security as provided in subsection (d) of section 1750
2216+36a-237f, as amended by this act; (D) approved claims of secured 1751
2217+creditors to the extent of the value of the security as provided in 1752
2218+subsection (d) of section 36a-237f, as amended by this act; (E) approved 1753
2219+claims by beneficiaries of insufficient commingled fiduciary money or 1754
2220+missing fiduciary property and approved claims of clients of the trust 1755
2221+bank or [uninsured] innovation bank; (F) other approved claims of 1756
2222+depositors and general creditors not falling within a higher priority 1757
2223+under this subdivision, including unsecured claims for taxes and debts 1758
2224+due the federal government or a state or local government; (G) 1759
2225+approved claims of a type described by subparagraphs (A) to (F), 1760
2226+inclusive, of this subdivision that were not filed within the period 1761
2227+prescribed by sections 36a-215 to 36a-239, inclusive, as amended by this 1762
2228+Bill No.
2229+
2230+
2231+
2232+LCO No. 6185 60 of 137
2233+
2234+act; and (H) claims of capital note or debenture holders or holders of 1763
2235+similar obligations and proprietary claims of shareholders or other 1764
2236+owners according to the terms established by issue, class or series. 1765
2237+(2) As used in this subsection, "administrative expense" means (A) 1766
2238+any expense designated as an administrative expense by sections 36a-1767
2239+231 and 36a-237h, as amended by this act; (B) any charge or expense of 1768
2240+settling the affairs of the bank, including court costs and expenses of 1769
2241+operation and liquidation of the bank's estate; (C) wages owed to an 1770
2242+employee of the bank for services rendered within three months before 1771
2243+the date the bank was placed in receivership and not exceeding two 1772
2244+thousand dollars to each employee; (D) current wages owed to an 1773
2245+employee of the bank whose services are retained by the receiver for 1774
2246+services rendered after the date the bank is placed in receivership; and 1775
2247+(E) an unpaid expense of supervision or conservatorship of the bank 1776
2248+before it was placed in receivership. 1777
2249+Sec. 25. Section 36a-237f of the general statutes is repealed and the 1778
2250+following is substituted in lieu thereof (Effective July 1, 2024): 1779
2251+(a) To receive payment of a claim against the estate of a trust bank or 1780
2252+[uninsured] innovation bank in receivership, a person who has a claim, 1781
2253+other than a shareholder acting in that capacity, including a claimant 1782
2254+with a secured claim or a fiduciary claimant ordered by the receiver to 1783
2255+file a proof of claim under subdivision (2) of subsection (b) of section 1784
2256+36a-225, as amended by this act, shall present proof of the claim to the 1785
2257+receiver at a place specified by the receiver, within the period specified 1786
2258+by the receiver. Receipt of the required proof of claim by the receiver is 1787
2259+a condition precedent to the payment of the claim. A claim that is not 1788
2260+filed within the period or at the place specified by the receiver may not 1789
2261+participate in a distribution of the assets by the receiver, except that, 1790
2262+subject to court approval, the receiver may accept a claim filed not later 1791
2263+than the one-hundred-eightieth day after the date notice of the 1792
2264+claimant's right to file a proof of claim is mailed to the claimant, 1793
2265+provided such claim shall be subordinate to an approved claim of a 1794
2266+Bill No.
2267+
2268+
2269+
2270+LCO No. 6185 61 of 137
2271+
2272+general creditor. Interest does not accrue on any claim after the date the 1795
2273+bank is placed in receivership. The provisions of this subsection shall 1796
2274+not apply to a fiduciary claimant or depositor where the records of the 1797
2275+bank in receivership are sufficient to identify the fiduciary claimant's or 1798
2276+depositor's interest. 1799
2277+(b) (1) The proof of claim against a trust bank or an [uninsured] 1800
2278+innovation bank shall be in writing, be signed by the claimant, and 1801
2279+include: (A) A statement of the claim; (B) a description of the 1802
2280+consideration for the claim; (C) a statement of whether collateral is held 1803
2281+or a security interest is asserted against the claim and, if so, a description 1804
2282+of the collateral or security interest; (D) a statement of any right of 1805
2283+priority of payment for the claim or other specific right asserted by the 1806
2284+claimant; (E) a statement of whether a payment has been made on the 1807
2285+claim and, if so, the amount and source of the payment, to the extent 1808
2286+known by the claimant; (F) a statement that the amount claimed is justly 1809
2287+owed by the bank to the claimant; and (G) any other matter that is 1810
2288+required by the Superior Court. 1811
2289+(2) The receiver may designate the form of the proof of claim. A proof 1812
2290+of claim shall be filed under oath unless the oath is waived by the 1813
2291+receiver. If a claim is founded on a written instrument, the original 1814
2292+instrument, unless lost or destroyed, shall be filed with the proof of 1815
2293+claim. After the instrument is filed, the receiver may permit the claimant 1816
2294+to substitute a copy of the instrument until the final disposition of the 1817
2295+claim. If the instrument is lost or destroyed, a statement of that fact and 1818
2296+of the circumstances of the loss or destruction shall be filed under oath 1819
2297+with the claim. 1820
2298+(c) A judgment against a trust bank or [uninsured] innovation bank 1821
2299+in receivership taken by default or by collusion before the date the bank 1822
2300+was placed in receivership may not be considered as conclusive 1823
2301+evidence of the liability of the bank to the judgment creditor or of the 1824
2302+amount of damages to which the judgment creditor is entitled. A 1825
2303+judgment against the bank entered after the date the bank was placed in 1826
2304+Bill No.
2305+
2306+
2307+
2308+LCO No. 6185 62 of 137
2309+
2310+receivership may not be considered as evidence of liability or of the 1827
2311+amount of damages. 1828
2312+(d) (1) The owner of secured trust funds on deposit may file a claim 1829
2313+as a creditor against a trust bank or [uninsured] innovation bank in 1830
2314+receivership. The value of the security shall be determined under 1831
2315+supervision of the Superior Court by converting the security into 1832
2316+money. 1833
2317+(2) The owner of a secured claim against a trust bank or [uninsured] 1834
2318+innovation bank in receivership may surrender the security and file a 1835
2319+claim as a general creditor or apply the security to the claim and 1836
2320+discharge the claim. 1837
2321+(3) If the owner applies the security and discharges the claim under 1838
2322+subdivision (2) of this subsection, any deficiency shall be treated as a 1839
2323+claim against the general assets of the bank on the same basis as a claim 1840
2324+of an unsecured creditor. The amount of the deficiency shall be 1841
2325+determined as provided by subsection (e) of this section, except that if 1842
2326+the amount of the deficiency has been adjudicated by a court in a 1843
2327+proceeding in which the receiver has had notice and an opportunity to 1844
2328+be heard, the court's decision is conclusive as to the amount. 1845
2329+(4) The value of security held by a secured creditor shall be 1846
2330+determined under supervision of the court by converting the security 1847
2331+into money according to the terms of the agreement under which the 1848
2332+security was delivered to the creditor or by agreement, arbitration, 1849
2333+compromise or litigation between the creditor and the receiver. 1850
2334+(e) (1) A claim against a trust bank or [uninsured] innovation bank in 1851
2335+receivership based on an unliquidated or undetermined demand shall 1852
2336+be filed within the period for the filing of the claim. The claim may not 1853
2337+share in any distribution to claimants until the claim is definitely 1854
2338+liquidated, determined and allowed. After the claim is liquidated, 1855
2339+determined and allowed, the claim shares ratably with the claims of the 1856
2340+same class in all subsequent distributions. 1857
2341+Bill No.
2342+
2343+
2344+
2345+LCO No. 6185 63 of 137
2346+
2347+(2) If the receiver in all other respects is in a position to close the 1858
2348+receivership proceeding, the proposed closing is sufficient grounds for 1859
2349+the rejection of any remaining claim based on an unliquidated or 1860
2350+undetermined demand. The receiver shall notify the claimant of the 1861
2351+intention to close the proceeding. If the demand is not liquidated or 1862
2352+determined before the sixty-first day after the date of the notice, the 1863
2353+receiver may reject the claim. 1864
2354+(3) For the purposes of this subsection, a demand is considered 1865
2355+unliquidated or undetermined if the right of action on the demand 1866
2356+accrued while the trust bank or [uninsured] innovation bank was placed 1867
2357+in receivership and the liability on the demand has not been determined 1868
2358+or the amount of the demand has not been liquidated. 1869
2359+(f) (1) Mutual credits and mutual debts shall be set off and only the 1870
2360+balance allowed or paid, except that a set-off may not be allowed in 1871
2361+favor of a person if: (A) The obligation of a trust bank or [uninsured] 1872
2362+innovation bank to the person on the date the bank was placed in 1873
2363+receivership did not entitle the person to share as a claimant in the assets 1874
2364+of the bank; (B) the obligation of the bank to the person was purchased 1875
2365+by or transferred to the person after the date the bank was placed in 1876
2366+receivership or for the purpose of increasing set-off rights; or (C) the 1877
2367+obligation of the person or the bank is as a trustee or fiduciary. 1878
2368+(2) Upon request, the receiver shall provide a person with an 1879
2369+accounting statement identifying each debt that is due and payable. A 1880
2370+person who owes a trust bank or [uninsured] innovation bank an 1881
2371+amount that is due and payable against which the person asserts set-off 1882
2372+of mutual credits that may become due and payable from the bank in 1883
2373+the future shall promptly pay to the receiver the amount due and 1884
2374+payable. The receiver shall promptly refund, to the extent of the person's 1885
2375+prior payment, mutual credits that become due and payable to the 1886
2376+person by the bank in receivership. 1887
2377+(g) (1) Not later than six months after the last day permitted for the 1888
2378+Bill No.
2379+
2380+
2381+
2382+LCO No. 6185 64 of 137
2383+
2384+filing of claims or a later date allowed by the Superior Court, the receiver 1889
2385+shall accept or reject in whole or in part each claim filed against a trust 1890
2386+bank or an [uninsured] innovation bank in receivership, except for an 1891
2387+unliquidated or undetermined claim governed by subsection (e) of this 1892
2388+section. The receiver shall reject a claim if the receiver doubts its validity. 1893
2389+(2) The receiver shall mail written notice to each claimant, specifying 1894
2390+the disposition of the person's claim. If a claim is rejected in whole or in 1895
2391+part, the receiver in the notice shall specify the basis for rejection and 1896
2392+advise the claimant of the procedures and deadline for appeal. 1897
2393+(3) The receiver shall send each claimant a summary schedule of 1898
2394+approved and rejected claims by priority class and notify the claimant: 1899
2395+(A) That a copy of a schedule of claims disposition, including only the 1900
2396+name of the claimant, the amount of the claim allowed, and the amount 1901
2397+of the claim rejected, is available upon request; and (B) of the procedure 1902
2398+and deadline for filing an objection to an approved claim. 1903
2399+(h) The receiver of a trust bank or [uninsured] innovation bank, with 1904
2400+the approval of the superior court, shall set a deadline for an objection 1905
2401+to an approved claim. On or before that date, a depositor, creditor, other 1906
2402+claimant or shareholder of a trust bank or [uninsured] innovation bank 1907
2403+may file an objection to an approved claim. The objection shall be heard 1908
2404+and determined by the court. If the objection is sustained, the court shall 1909
2405+direct an appropriate modification of the schedule of claims. 1910
2406+(i) The receiver's rejection of a claim may be appealed to the superior 1911
2407+court in which the receivership proceeding of a trust bank or 1912
2408+[uninsured] innovation bank is pending. The appeal shall be filed within 1913
2409+three months after the date of service of notice of the rejection. If the 1914
2410+appeal is timely filed, review is de novo as if it were an action originally 1915
2411+filed in the court, and is subject to the rules of procedure and appeal 1916
2412+applicable to civil cases. An action to appeal rejection of a claim by the 1917
2413+receiver is separate from the receivership proceeding, and may not be 1918
2414+initiated by a claimant intervening in the receivership proceeding. If the 1919
2415+Bill No.
2416+
2417+
2418+
2419+LCO No. 6185 65 of 137
2420+
2421+action is not timely filed, the action of the receiver is final and not subject 1920
2422+to review. 1921
2423+(j) (1) The commissioner shall deposit all money available for the 1922
2424+benefit of persons who have not filed a claim and are, according to the 1923
2425+bank's records, depositors and creditors of a trust bank or [uninsured] 1924
2426+innovation bank in receivership in a bank, Connecticut credit union, 1925
2427+federal credit union, out-of-state bank that maintains in this state a 1926
2428+branch, as defined in section 36a-410, or out-of-state credit union that 1927
2429+maintains in this state a branch, as defined in section 36a-435b. The 1928
2430+commissioner shall pay the nonclaiming depositors and creditors on 1929
2431+demand the undisputed amount, based on the bank's records, held for 1930
2432+their benefit. 1931
2433+(2) The receiver may periodically make a partial distribution to the 1932
2434+holders of approved claims if: (A) All objections have been heard and 1933
2435+decided as provided by subsection (h) of this section; (B) the time for 1934
2436+filing appeals has expired as provided by subsection (i) of this section; 1935
2437+(C) money has been made available to provide for the payment of all 1936
2438+nonclaiming depositors and creditors in accordance with subdivision (1) 1937
2439+of this subsection; and (D) a proper reserve is established for the pro rata 1938
2440+payment of: (i) Rejected claims that have been appealed, and (ii) any 1939
2441+claims based on unliquidated or undetermined demands governed by 1940
2442+subsection (e) of this section. 1941
2443+(3) As soon as practicable after all objections, appeals and claims 1942
2444+based on previously unliquidated or undetermined demands governed 1943
2445+by subsection (e) of this section have been determined and money has 1944
2446+been made available to provide for the payment of all nonclaiming 1945
2447+depositors and creditors in accordance with subdivision (1) of this 1946
2448+subsection, the receiver shall distribute the assets of a trust bank or 1947
2449+[uninsured] innovation bank in satisfaction of approved claims other 1948
2450+than claims asserted in a person's capacity as a shareholder. 1949
2451+Sec. 26. Section 36a-237g of the general statutes is repealed and the 1950
2452+Bill No.
2453+
2454+
2455+
2456+LCO No. 6185 66 of 137
2457+
2458+following is substituted in lieu thereof (Effective July 1, 2024): 1951
2459+(a) All fiduciary records relating to the administration of fiduciary 1952
2460+accounts of a trust bank or [uninsured] innovation bank shall be turned 1953
2461+over to the successor fiduciary, as defined in section 45a-245a, in charge 1954
2462+of administration of the accounts. The receiver may devise a method for 1955
2463+the effective, efficient and economical maintenance of all other records 1956
2464+of the trust bank or [uninsured] innovation bank and of the receiver's 1957
2465+office. 1958
2466+(b) On approval by the Superior Court, the receiver may dispose of 1959
2467+records of the trust bank or [uninsured] innovation bank in receivership 1960
2468+that are obsolete and unnecessary to the continued administration of the 1961
2469+receivership proceeding. 1962
2470+Sec. 27. Subsections (a) to (c), inclusive, of section 36a-237h of the 1963
2471+general statutes are repealed and the following is substituted in lieu 1964
2472+thereof (Effective July 1, 2024): 1965
2473+(a) Persons entitled to protection under this section shall be: (1) All 1966
2474+receivers or conservators of trust banks or [uninsured] innovation 1967
2475+banks, including present and former receivers and conservators; and (2) 1968
2476+the employees of such receivers or conservators. Attorneys, 1969
2477+accountants, auditors and other professional persons or firms who are 1970
2478+retained by the receiver or conservator as independent contractors, and 1971
2479+their employees, shall not be considered employees of the receiver or 1972
2480+conservator for purposes of this section. 1973
2481+(b) The receiver or conservator and the employees of the receiver or 1974
2482+conservator shall be immune from suit and liability, both personally and 1975
2483+in their official capacities, for any claim for damage to or loss of 1976
2484+property, personal injury or other civil liability caused by or resulting 1977
2485+from any alleged act, error or omission of the receiver or conservator or 1978
2486+any employee arising out of or by reason of their duties or employment, 1979
2487+provided nothing in this section shall be construed to hold the receiver 1980
2488+or conservator or any employee immune from suit or liability for any 1981
2489+Bill No.
2490+
2491+
2492+
2493+LCO No. 6185 67 of 137
2494+
2495+damage, loss, injury or liability caused by the intentional or wilful and 1982
2496+wanton misconduct of the receiver or conservator or any employee. 1983
2497+(c) (1) If any legal action is commenced against the receiver or 1984
2498+conservator or any employee, whether personally or in such person's 1985
2499+official capacity, alleging property damage, property loss, personal 1986
2500+injury or other civil liability caused by or resulting from any alleged act, 1987
2501+error or omission of the receiver or conservator or any employee arising 1988
2502+out of or by reason of their duties or employment, the receiver or 1989
2503+conservator and any employee shall be indemnified from the assets of 1990
2504+the trust bank or [uninsured] innovation bank for all expenses, 1991
2505+attorneys' fees, judgments, settlements, decrees or amounts due and 1992
2506+owing or paid in satisfaction of or incurred in the defense of such legal 1993
2507+action unless it is determined upon a final adjudication on the merits 1994
2508+that the alleged act, error or omission of the receiver or conservator or 1995
2509+employee giving rise to the claim did not arise out of or by reason of 1996
2510+such person's duties or employment, or was caused by intentional or 1997
2511+wilful and wanton misconduct. 1998
2512+(2) Attorneys' fees and any related expenses incurred in defending a 1999
2513+legal action for which immunity or indemnity is available under this 2000
2514+section shall be paid from the assets of the trust bank or [uninsured] 2001
2515+innovation bank, as they are incurred, in advance of the final disposition 2002
2516+of such action upon receipt of an undertaking by or on behalf of the 2003
2517+receiver or conservator or employee to repay the attorneys' fees and 2004
2518+expenses if it shall ultimately be determined upon a final adjudication 2005
2519+on the merits that the receiver or conservator or employee is not entitled 2006
2520+to immunity or indemnity under this section. 2007
2521+(3) Any indemnification for expense payments, judgments, 2008
2522+settlements, decrees, attorneys' fees, surety bond premiums or other 2009
2523+amounts paid or to be paid from the assets of the trust bank or 2010
2524+[uninsured] innovation bank pursuant to this section shall be an 2011
2525+administrative expense of the receivership or conservatorship. 2012
2526+Bill No.
2527+
2528+
2529+
2530+LCO No. 6185 68 of 137
2531+
2532+(4) In the event of any actual or threatened litigation against a receiver 2013
2533+or conservator or any employee for which immunity or indemnity may 2014
2534+be available under this section, a reasonable amount of funds, which in 2015
2535+the judgment of the receiver or conservator may be needed to provide 2016
2536+immunity or indemnity, shall be segregated and reserved from the 2017
2537+assets of the trust bank or [uninsured] innovation bank as security for 2018
2538+the payment of indemnity until such time as all applicable statutes of 2019
2539+limitation shall have run and all actual or threatened actions against the 2020
2540+receiver or conservator or any employee have been completely and 2021
2541+finally resolved, and all obligations of the trust bank or [uninsured] 2022
2542+innovation bank and the commissioner under this section shall have 2023
2543+been satisfied. 2024
2544+(5) In lieu of segregation and reserving of funds, the receiver or 2025
2545+conservator may, in the receiver's or conservator's discretion, obtain a 2026
2546+surety bond or make other arrangements that will enable the receiver or 2027
2547+conservator to fully secure the payment of all obligations under this 2028
2548+section. 2029
2549+Sec. 28. Subdivision (2) of subsection (a) of section 36a-333 of the 2030
2550+general statutes is repealed and the following is substituted in lieu 2031
2551+thereof (Effective July 1, 2024): 2032
2552+(2) Notwithstanding the provisions of subdivisions (1) and (3) of this 2033
2553+subsection, to secure public deposits, each qualified public depository 2034
2554+that (A) has been conducting business in this state for a period of less 2035
2555+than two years, except for a depository that is a successor institution to 2036
2556+a depository which conducted business in this state for two years or 2037
2557+more, or (B) is an [uninsured] innovation bank, shall at all times 2038
2558+maintain, segregated from its other assets as required under subsection 2039
2559+(b) of this section, eligible collateral in an amount not less than one 2040
2560+hundred twenty per cent of all uninsured public deposits held by the 2041
2561+depository. 2042
2562+Sec. 29. Section 36a-609 of the 2024 supplement to the general statutes 2043
2563+Bill No.
2564+
2565+
2566+
2567+LCO No. 6185 69 of 137
2568+
2569+is repealed and the following is substituted in lieu thereof (Effective July 2044
2570+1, 2024): 2045
2571+The provisions of sections 36a-597 to 36a-607, inclusive, and sections 2046
2572+36a-611 and 36a-612 shall not apply to: 2047
2573+(1) Any federally insured federal bank, out-of-state bank, Connecticut 2048
2574+bank, Connecticut credit union, federal credit union or out-of-state 2049
2575+credit union, provided such institution does not engage in the business 2050
2576+of money transmission in this state through any person who is not (A) a 2051
2577+federally insured federal bank, out-of-state bank, Connecticut bank, 2052
2578+Connecticut credit union, federal credit union or out-of-state credit 2053
2579+union, (B) a person licensed pursuant to sections 36a-595 to 36a-612, 2054
2580+inclusive, or an authorized delegate acting on behalf of such licensed 2055
2581+person, or (C) a person exempt pursuant to subdivisions (2) to (4), 2056
2582+inclusive, of this section; 2057
2583+(2) Any Connecticut bank that is an [uninsured] innovation bank 2058
2584+organized pursuant to subsection (t) of section 36a-70, as amended by 2059
2585+this act; 2060
2586+(3) The United States Postal Service and any contractor that engages 2061
2587+in the business of money transmission in this state on behalf of the 2062
2588+United States Postal Service; and 2063
2589+(4) A person whose activity is limited to the electronic funds transfer 2064
2590+of governmental benefits for or on behalf of a federal, state or other 2065
2591+governmental agency, quasi-governmental agency or government 2066
2592+sponsored enterprise. 2067
2593+Sec. 30. (Effective from passage) In the case of any underpayment of tax 2068
2594+by a taxpayer under chapter 208, 228z or 229 of the general statutes, no 2069
2595+interest shall be imposed under such chapters to the extent such 2070
2596+underpayment was due to the filing of an amended return necessitated 2071
2597+by guidance issued by the Internal Revenue Service concerning the 2072
2598+federal employee retention credit program. If such interest has already 2073
2599+Bill No.
2600+
2601+
2602+
2603+LCO No. 6185 70 of 137
2604+
2605+been paid to the Department of Revenue Services, the Commissioner of 2074
2606+Revenue Services shall treat such payment as an overpayment and shall 2075
2607+refund the amount of such payment, without interest, to the taxpayer. 2076
2608+Sec. 31. Section 38a-48 of the general statutes, as amended by section 2077
2609+6 of public act 24-138, is repealed and the following is substituted in lieu 2078
2610+thereof (Effective October 1, 2025): 2079
2611+(a) On or before June thirtieth, annually, the Commissioner of 2080
2612+Revenue Services shall render to the Insurance Commissioner a 2081
2613+statement certifying the total amount of taxes [or charges imposed on] 2082
2614+reported to the Commissioner of Revenue Services on returns filed with 2083
2615+said commissioner by each domestic insurance company or other 2084
2616+domestic entity under chapter 207 on business done in this state during 2085
2617+the [preceding calendar year. The statement for local domestic insurance 2086
2618+companies shall set forth the amount of taxes and charges before any tax 2087
2619+credits allowed as provided in subsection (a) of section 12-202] calendar 2088
2620+year immediately preceding the prior calendar year. For purposes of 2089
2621+preparing the annual statement under this subsection, the total amount 2090
2622+of taxes required to be set forth in such statement shall be the amount of 2091
2623+tax reported by each domestic insurance company or other domestic 2092
2624+entity under chapter 207 to the Commissioner of Revenue Services prior 2093
2625+to the application of any credits allowable or available under law to each 2094
2626+such domestic insurance company or other domestic entity under 2095
2627+chapter 207. 2096
2628+(b) On or before July thirty-first, annually, the Insurance 2097
2629+Commissioner shall render to each domestic insurance company or 2098
2630+other domestic entity liable for payment under section 38a-47: 2099
2631+(1) A statement that includes (A) the amount appropriated to the 2100
2632+Insurance Department, the Office of the Healthcare Advocate and the 2101
2633+Office of Health Strategy from the Insurance Fund established under 2102
2634+section 38a-52a for the fiscal year beginning July first of the same year, 2103
2635+(B) the cost of fringe benefits for department and office personnel for 2104
2636+Bill No.
2637+
2638+
2639+
2640+LCO No. 6185 71 of 137
2641+
2642+such year, as estimated by the Comptroller, (C) the estimated 2105
2643+expenditures on behalf of the department and the offices from the 2106
2644+Capital Equipment Purchase Fund pursuant to section 4a-9 for such 2107
2645+year, not including such estimated expenditures made on behalf of the 2108
2646+Health Systems Planning Unit of the Office of Health Strategy, and (D) 2109
2647+the amount appropriated to the Department of Aging and Disability 2110
2648+Services for the fall prevention program established in section 17a-859 2111
2649+from the Insurance Fund for the fiscal year; 2112
2650+(2) [a] A statement of the total amount of taxes [imposed on all 2113
2651+domestic insurance companies and domestic insurance entities under 2114
2652+chapter 207 on business done in this state during the preceding calendar 2115
2653+year] reported in the annual statement rendered to the Insurance 2116
2654+Commissioner pursuant to subsection (a) of this section; and 2117
2655+(3) [the] The proposed assessment against that company or entity, 2118
2656+calculated in accordance with the provisions of subsection (c) of this 2119
2657+section, provided for the purposes of this calculation the amount 2120
2658+appropriated to the Insurance Department, the Office of the Healthcare 2121
2659+Advocate and the Office of Health Strategy from the Insurance Fund 2122
2660+plus the cost of fringe benefits for department and office personnel and 2123
2661+the estimated expenditures on behalf of the department and [such] said 2124
2662+offices from the Capital Equipment Purchase Fund pursuant to section 2125
2663+4a-9, not including such expenditures made on behalf of the Health 2126
2664+Systems Planning Unit of the Office of Health Strategy shall be deemed 2127
2665+to be the actual expenditures of the department and [such] said offices, 2128
2666+and the amount appropriated to the Department of Aging and Disability 2129
2667+Services from the Insurance Fund for the fiscal year for the fall 2130
2668+prevention program established in section 17a-859 shall be deemed to 2131
2669+be the actual expenditures for the program. 2132
2670+(c) (1) The proposed assessments for each domestic insurance 2133
2671+company or other domestic entity shall be calculated by (A) allocating 2134
2672+twenty per cent of the amount to be paid under section 38a-47 among 2135
2673+the domestic entities organized under sections 38a-199 to 38a-209, 2136
2674+Bill No.
2675+
2676+
2677+
2678+LCO No. 6185 72 of 137
2679+
2680+inclusive, and 38a-214 to 38a-225, inclusive, in proportion to their 2137
2681+respective shares of the total amount of taxes [and charges imposed 2138
2682+under chapter 207 on such entities on business done in this state during 2139
2683+the preceding calendar year] reported in the annual statement rendered 2140
2684+to the Insurance Commissioner pursuant to subsection (a) of this 2141
2685+section, and (B) allocating eighty per cent of the amount to be paid under 2142
2686+section 38a-47 among all domestic insurance companies and domestic 2143
2687+entities other than those organized under sections 38a-199 to 38a-209, 2144
2688+inclusive, and 38a-214 to 38a-225, inclusive, in proportion to their 2145
2689+respective shares of the total amount of taxes [and charges imposed 2146
2690+under chapter 207 on such domestic insurance companies and domestic 2147
2691+entities on business done in this state during the preceding calendar 2148
2692+year] reported in the annual statement rendered to the Insurance 2149
2693+Commissioner pursuant to subsection (a) of this section, provided if 2150
2694+there are no domestic entities organized under sections 38a-199 to 38a-2151
2695+209, inclusive, and 38a-214 to 38a-225, inclusive, at the time of 2152
2696+assessment, one hundred per cent of the amount to be paid under 2153
2697+section 38a-47 shall be allocated among such domestic insurance 2154
2698+companies and domestic entities. 2155
2699+(2) When the amount any such company or entity is assessed 2156
2700+pursuant to this section exceeds twenty-five per cent of the actual 2157
2701+expenditures of the Insurance Department, the Office of the Healthcare 2158
2702+Advocate and the Office of Health Strategy from the Insurance Fund, 2159
2703+such excess amount shall not be paid by such company or entity but 2160
2704+rather shall be assessed against and paid by all other such companies 2161
2705+and entities in proportion to their respective shares of the total amount 2162
2706+of taxes [and charges imposed under chapter 207 on business done in 2163
2707+this state during the preceding calendar year] reported in the annual 2164
2708+statement rendered to the Insurance Commissioner pursuant to 2165
2709+subsection (a) of this section, except that for purposes of any assessment 2166
2710+made to fund payments to the Department of Public Health to purchase 2167
2711+vaccines, such company or entity shall be responsible for its share of the 2168
2712+costs, notwithstanding whether its assessment exceeds twenty-five per 2169
2713+Bill No.
2714+
2715+
2716+
2717+LCO No. 6185 73 of 137
2718+
2719+cent of the actual expenditures of the Insurance Department, the Office 2170
2720+of the Healthcare Advocate and the Office of Health Strategy from the 2171
2721+Insurance Fund. The provisions of this subdivision shall not be 2172
2722+applicable to any corporation that has converted to a domestic mutual 2173
2723+insurance company pursuant to section 38a-155 upon the effective date 2174
2724+of any public act that amends said section to modify or remove any 2175
2725+restriction on the business such a company may engage in, for purposes 2176
2726+of any assessment due from such company on and after such effective 2177
2727+date. 2178
2728+(d) [For purposes of calculating the amount of payment under section 2179
2729+38a-47, as well as the amount of the assessments under this section, the 2180
2730+"total taxes imposed on all domestic insurance companies and other 2181
2731+domestic entities under chapter 207" shall be based upon the amounts 2182
2732+shown as payable to the state for the calendar year on the returns filed 2183
2733+with the Commissioner of Revenue Services pursuant to chapter 207; 2184
2734+with respect to calculating the amount of payment and assessment for 2185
2735+local domestic insurance companies, the amount used shall be the taxes 2186
2736+and charges imposed before any tax credits allowed as provided in 2187
2737+subsection (a) of section 12-202] Each annual payment determined 2188
2738+under section 38a-47 and each annual assessment determined under this 2189
2739+section shall be calculated based on the total amount of taxes reported 2190
2740+in the annual statement rendered to the Insurance Commissioner 2191
2741+pursuant to subsection (a) of this section. 2192
2742+(e) On or before September first, annually, for each fiscal year, the 2193
2743+Insurance Commissioner, after receiving any objections to the proposed 2194
2744+assessments and making such adjustments as in the commissioner's 2195
2745+opinion may be indicated, shall assess each such domestic insurance 2196
2746+company or other domestic entity an amount equal to its proposed 2197
2747+assessment as so adjusted. Each domestic insurance company or other 2198
2748+domestic entity shall pay to the Insurance Commissioner (1) on or before 2199
2749+June thirtieth, annually, an estimated payment against its assessment for 2200
2750+the following year equal to twenty-five per cent of its assessment for the 2201
2751+fiscal year ending such June thirtieth, (2) on or before September 2202
2752+Bill No.
2753+
2754+
2755+
2756+LCO No. 6185 74 of 137
2757+
2758+thirtieth, annually, twenty-five per cent of its assessment adjusted to 2203
2759+reflect any credit or amount due from the preceding fiscal year as 2204
2760+determined by the commissioner under subsection (f) of this section, 2205
2761+and (3) on or before the following December thirty-first and March 2206
2762+thirty-first, annually, each domestic insurance company or other 2207
2763+domestic entity shall pay to the Insurance Commissioner the remaining 2208
2764+fifty per cent of its proposed assessment to the department in two equal 2209
2765+installments. 2210
2766+(f) If the actual expenditures for the fall prevention program 2211
2767+established in section 17a-859 are less than the amount allocated, the 2212
2768+Commissioner of Aging and Disability Services shall notify the 2213
2769+Insurance Commissioner. Immediately following the close of the fiscal 2214
2770+year, the Insurance Commissioner shall recalculate the proposed 2215
2771+assessment for each domestic insurance company or other domestic 2216
2772+entity in accordance with subsection (c) of this section using the actual 2217
2773+expenditures made during the fiscal year by the Insurance Department, 2218
2774+the Office of the Healthcare Advocate and the Office of Health Strategy 2219
2775+from the Insurance Fund, the actual expenditures made on behalf of the 2220
2776+department and [the] said offices from the Capital Equipment Purchase 2221
2777+Fund pursuant to section 4a-9, not including such expenditures made 2222
2778+on behalf of the Health Systems Planning Unit of the Office of Health 2223
2779+Strategy, and the actual expenditures for the fall prevention program. 2224
2780+On or before July thirty-first, annually, the Insurance Commissioner 2225
2781+shall render to each such domestic insurance company and other 2226
2782+domestic entity a statement showing the difference between their 2227
2783+respective recalculated assessments and the amount they have 2228
2784+previously paid. On or before August thirty-first, the Insurance 2229
2785+Commissioner, after receiving any objections to such statements, shall 2230
2786+make such adjustments [which] that in [their] the commissioner's 2231
2787+opinion may be indicated, and shall render an adjusted assessment, if 2232
2788+any, to the affected companies. Any such domestic insurance company 2233
2789+or other domestic entity may pay to the Insurance Commissioner the 2234
2790+entire assessment required under this subsection in one payment when 2235
2791+Bill No.
2792+
2793+
2794+
2795+LCO No. 6185 75 of 137
2796+
2797+the first installment of such assessment is due. 2236
2798+(g) If any assessment is not paid when due, a penalty of twenty-five 2237
2799+dollars shall be added thereto, and interest at the rate of six per cent per 2238
2800+annum shall be paid thereafter on such assessment and penalty. 2239
2801+(h) The Insurance Commissioner shall deposit all payments made 2240
2802+under this section with the State Treasurer. On and after June 6, 1991, 2241
2803+the moneys so deposited shall be credited to the Insurance Fund 2242
2804+established under section 38a-52a and shall be accounted for as expenses 2243
2805+recovered from insurance companies. 2244
2806+Sec. 32. Section 10-287 of the general statutes is repealed and the 2245
2807+following is substituted in lieu thereof (Effective July 1, 2024): 2246
2808+(a) A grant for a school building project under this chapter [to meet 2247
2809+project costs not eligible for state financial assistance under section 10-2248
2810+287a] shall be paid in installments, the number and time of payment of 2249
2811+which shall correspond to the number and time of principal installment 2250
2812+payments on municipal bonds, including principal payments to retire 2251
2813+temporary notes renewed for the third and subsequent years pursuant 2252
2814+to section 7-378a or 7-378e, issued for the purpose of financing such costs 2253
2815+and shall be equal to the state's share of project costs per principal 2254
2816+installment on municipal bonds or notes, except in cases where the 2255
2817+project has been fully paid for, in which case the number of installments 2256
2818+shall be five or, in the case of a regional agricultural science and 2257
2819+technology education center or a cooperative regional special 2258
2820+educational facility, shall be one; provided final payment shall not be 2259
2821+made prior to an audit conducted by the State Board of Education for 2260
2822+each project for which a final calculation was not made prior to July 31, 2261
2823+1983. Grants under twenty-five thousand dollars shall be paid in one 2262
2824+lump sum. The Commissioner of Administrative Services shall certify 2263
2825+to the State Comptroller, upon completion of the issuance of bonds or 2264
2826+such renewal of temporary notes to finance each school building project, 2265
2827+the dates and amounts of grant payments to be made pursuant to this 2266
2828+Bill No.
2829+
2830+
2831+
2832+LCO No. 6185 76 of 137
2833+
2834+chapter and the State Comptroller shall draw an order on the State 2267
2835+Treasurer upon such certification to pay the amounts so certified when 2268
2836+due. All site acquisition and project cost grant payments shall be made 2269
2837+at least ten days prior to the principal payment on bonds or temporary 2270
2838+notes related thereto or short-term financing issued to finance such site 2271
2839+acquisition or project. Annual grant installments paid pursuant to this 2272
2840+section on principal installment payments to retire temporary notes 2273
2841+renewed pursuant to section 7-378a or 7-378e shall be based each year 2274
2842+on the amount required to be retired pursuant to said sections, as 2275
2843+adjusted for any ineligible project costs, and shall be paid only if at the 2276
2844+time such temporary notes are renewed the rate of interest applicable to 2277
2845+such notes is less than the rate of interest that would be applicable with 2278
2846+respect to twenty-year bonds if issued at the time of such renewal. The 2279
2847+determination related to such rates of interest pursuant to this 2280
2848+subsection may be reviewed and shall be subject to approval by the 2281
2849+Commissioner of Administrative Services prior to renewal of such 2282
2850+notes. In the event that a school building project is not completed at the 2283
2851+time bonds or temporary notes related thereto are issued to finance the 2284
2852+project, the certification of the grant payments made pursuant to this 2285
2853+section by the Commissioner of Administrative Services may be based 2286
2854+on estimates, provided upon completion of such project and notification 2287
2855+of final acceptance to the state, the Commissioner of Administrative 2288
2856+Services shall adjust and recertify the dates and amounts of subsequent 2289
2857+grant payments based on the state's share of final eligible costs. 2290
2858+(b) (1) All orders and contracts for school building construction 2291
2859+receiving state assistance under this chapter, except as provided in 2292
2860+subdivisions (2) to (4), inclusive, of this subsection, shall be awarded to 2293
2861+the lowest responsible qualified bidder only after a public invitation to 2294
2862+bid, except for (A) school building projects for which the town or 2295
2863+regional school district is using a state contract pursuant to subsection 2296
2864+(d) of section 10-292, and (B) change orders, those contracts or orders 2297
2865+costing less than ten thousand dollars and those of an emergency nature, 2298
2866+as determined by the Commissioner of Administrative Services, in 2299
2867+Bill No.
2868+
2869+
2870+
2871+LCO No. 6185 77 of 137
2872+
2873+which cases the contractor or vendor may be selected by negotiation, 2300
2874+provided no local fiscal regulations, ordinances or charter provisions 2301
2875+conflict. Any of the qualified bidders under this subdivision may be a 2302
2876+cooperative purchasing contract offered through a regional educational 2303
2877+service center or a council of government. 2304
2878+(2) All orders and contracts for architectural services shall be 2305
2879+awarded from a pool of [not more than the four] at least three of the 2306
2880+most responsible qualified proposers after a public selection process. 2307
2881+Such process shall, at a minimum, involve requests for qualifications, 2308
2882+followed by requests for proposals, including fees, from the proposers 2309
2883+meeting the qualifications criteria of the request for qualifications 2310
2884+process. Following the qualification process, the awarding authority 2311
2885+shall evaluate the proposals to determine [the four] at least three of the 2312
2886+most responsible qualified proposers using those criteria previously 2313
2887+listed in the requests for qualifications and requests for proposals for 2314
2888+selecting architectural services specific to the project or school district. 2315
2889+Such evaluation criteria shall include due consideration of the 2316
2890+proposer's pricing for the project, experience with work of similar size 2317
2891+and scope as required for the order or contract, organizational and team 2318
2892+structure, including any subcontractors to be utilized by the proposer, 2319
2893+for the order or contract, past performance data, including, but not 2320
2894+limited to, adherence to project schedules and project budgets and the 2321
2895+number of change orders for projects, the approach to the work required 2322
2896+for the order or contract and documented contract oversight 2323
2897+capabilities, and may include criteria specific to the project. Final 2324
2898+selection by the awarding authority is limited to the pool of [the four] at 2325
2899+least three of the most responsible qualified proposers and shall include 2326
2900+consideration of all criteria included within the request for proposals. 2327
2901+As used in this subdivision, "most responsible qualified proposer" 2328
2902+means the proposer who is qualified by the awarding authority when 2329
2903+considering price and the factors necessary for faithful performance of 2330
2904+the work based on the criteria and scope of work included in the request 2331
2905+for proposals. 2332
2906+Bill No.
2907+
2908+
2909+
2910+LCO No. 6185 78 of 137
2911+
2912+(3) (A) All orders and contracts for construction management services 2333
2913+shall be awarded from a pool of [not more than the four] at least three 2334
2914+of the most responsible qualified proposers after a public selection 2335
2915+process. Such process shall, at a minimum, involve requests for 2336
2916+qualifications, followed by requests for proposals, including fees, from 2337
2917+the proposers meeting the qualifications criteria of the request for 2338
2918+qualifications process. Following the qualification process, the 2339
2919+awarding authority shall evaluate the proposals to determine [the four] 2340
2920+at least three of the most responsible qualified proposers using those 2341
2921+criteria previously listed in the requests for qualifications and requests 2342
2922+for proposals for selecting construction management services specific to 2343
2923+the project or school district. Such evaluation criteria shall include due 2344
2924+consideration of the proposer's pricing for the project, experience with 2345
2925+work of similar size and scope as required for the order or contract, 2346
2926+organizational and team structure for the order or contract, past 2347
2927+performance data, including, but not limited to, adherence to project 2348
2928+schedules and project budgets and the number of change orders for 2349
2929+projects, the approach to the work required for the order or contract, 2350
2930+and documented contract oversight capabilities, and may include 2351
2931+criteria specific to the project. Final selection by the awarding authority 2352
2932+is limited to the pool of [the four] at least three of the most responsible 2353
2933+qualified proposers and shall include consideration of all criteria 2354
2934+included within the request for proposals. As used in this subdivision, 2355
2935+"most responsible qualified proposer" means the proposer who is 2356
2936+qualified by the awarding authority when considering price and the 2357
2937+factors necessary for faithful performance of the work based on the 2358
2938+criteria and scope of work included in the request for proposals. 2359
2939+(B) The construction manager's contract shall include a guaranteed 2360
2940+maximum price for the cost of construction. Such guaranteed maximum 2361
2941+price shall be determined not later than ninety days after the selection 2362
2942+of the trade subcontractor bids. Each construction manager shall invite 2363
2943+bids and give notice of opportunities to bid on project elements on the 2364
2944+State Contracting Portal. Each bid shall be kept sealed until opened 2365
2945+Bill No.
2946+
2947+
2948+
2949+LCO No. 6185 79 of 137
2950+
2951+publicly at the time and place set forth in the notice soliciting such bid. 2366
2952+The construction manager shall, after consultation and approval by the 2367
2953+town or regional school district, award any related contracts for project 2368
2954+elements to the responsible qualified contractor submitting the lowest 2369
2955+bid in compliance with the bid requirements, provided that (i) the 2370
2956+construction manager shall not be eligible to submit a bid for any such 2371
2957+project element, and (ii) construction shall not begin prior to the 2372
2958+determination of the guaranteed maximum price. [, except work relating 2373
2959+to site preparation and demolition may commence prior to such 2374
2960+determination.] On and after July 1, 2024, the construction manager's 2375
2961+contract shall include a requirement that the construction manager 2376
2962+retain all documents and receipts relating to the school building project 2377
2963+for a period of two years following the date of completion of an audit 2378
2964+conducted by the Department of Administrative Services pursuant to 2379
2965+this section, for such project. 2380
2966+(C) The construction manager shall submit quarterly reports 2381
2967+regarding the ineligible project costs for the school building project to 2382
2968+date to the town or regional board of education. Upon submission of the 2383
2969+notice of project completion pursuant to subsection (d) of this section, 2384
2970+and prior to the audit conducted by the commissioner, the construction 2385
2971+manager shall submit a final report on the total ineligible costs for such 2386
2972+project to the town or regional school district. 2387
2973+(D) The construction manager shall meet quarterly with the town or 2388
2974+regional board of education to review any change orders for eligibility 2389
2975+as the school building project progresses. 2390
2976+(4) All orders and contracts for any other consultant services, 2391
2977+including, but not limited to, consultant services rendered by an owner's 2392
2978+representatives, construction administrators, program managers, 2393
2979+environmental professionals, planners and financial specialists, shall 2394
2980+comply with the public selection process described in subdivision (2) of 2395
2981+this subsection. No costs associated with an order or contract for such 2396
2982+consultant services shall be eligible for state financial assistance under 2397
2983+Bill No.
2984+
2985+
2986+
2987+LCO No. 6185 80 of 137
2988+
2989+this chapter unless such order or contract receives prior approval from 2398
2990+the Commissioner of Administrative Services in writing or through a 2399
2991+written electronic communication. 2400
2992+(c) If the Commissioner of Administrative Services determines that a 2401
2993+building project has not met the approved conditions of the original 2402
2994+application, the Department of Administrative Services may withhold 2403
2995+subsequent state grant payments for said project until appropriate 2404
2996+action, as determined by the commissioner, is taken to cause the 2405
2997+building project to be in compliance with the approved conditions or 2406
2998+may require repayment of all state grant payments for said project when 2407
2999+such appropriate action is not undertaken within a reasonable time. 2408
3000+(d) (1) Each town or regional school district shall submit a final grant 2409
3001+application to the Department of Administrative Services [within] not 2410
3002+later than one year from the date of completion and acceptance of the 2411
3003+school building project by the town or regional school district. If a town 2412
3004+or regional school district fails to submit a final grant application [within 2413
3005+said period of time] on or before such one-year date, the commissioner 2414
3006+may withhold ten per cent of the state reimbursement for such project. 2415
3007+(2) (A) On and after July 1, [2022] 2024, each town or regional school 2416
3008+district shall submit a notice of project completion [within three years] 2417
3009+not later than one year from the date of the issuance of a certificate of 2418
3010+occupancy for the school building project by the town or regional school 2419
3011+district. If a town or regional school district fails to submit such notice 2420
3012+of project completion [within said period of time] on or before such one-2421
3013+year date, the commissioner shall deem such project completed and 2422
3014+conduct an audit of such project in accordance with the provisions of 2423
3015+this chapter. 2424
3016+(B) For any school building project authorized by the General 2425
3017+Assembly prior to July 1, 2022, the commissioner shall deem as complete 2426
3018+any such project in which a certificate of occupancy has been granted, 2427
3019+but for which a notice of project completion has not been submitted by 2428
3020+Bill No.
3021+
3022+
3023+
3024+LCO No. 6185 81 of 137
3025+
3026+the town or regional school district on or before July 1, 2025. 2429
3027+Sec. 33. Section 163 of public act 24-151 is repealed. (Effective from 2430
3028+passage) 2431
3029+Sec. 34. Section 1 of special act 77-98, as amended by section 5 of 2432
3030+special act 99-12, section 2 of public act 02-85, section 1 of special act 13-2433
3031+20, section 1 of special act 17-5 and section 1 of special act 24-7, is 2434
3032+amended to read as follows (Effective from passage): 2435
3033+It is found and declared as a matter of legislative determination that 2436
3034+the creation of the South Central Connecticut Regional Water Authority 2437
3035+for the primary purpose of providing and assuring the provision of an 2438
3036+adequate supply of pure water and the safe disposal of wastewater at 2439
3037+reasonable cost within the South Central Connecticut Regional Water 2440
3038+District and such other areas as may be served pursuant to cooperative 2441
3039+agreements and acquisitions authorized by section 11 of special act 77-2442
3040+98, as amended by section 5 of special act 78-24, section 3 of special act 2443
3041+84-46, section 7 of public act 02-85 and section 3 of special act 17-5, as 2444
3042+amended by this act, and, to the degree consistent with the foregoing, of 2445
3043+advancing water conservation and the conservation and compatible 2446
3044+recreational use of land held by the authority, conducting or investing 2447
3045+in noncore businesses, provided, at the time of any investment in such 2448
3046+businesses, the authority's investment, less returns of or on such 2449
3047+investments in such businesses made on and after June 30, 2013, shall 2450
3048+not exceed the greater of five per cent of the authority's net utility plant 2451
3049+devoted to its water and wastewater utility businesses or such higher 2452
3050+amount approved by a majority of the total weighted votes of the 2453
3051+membership of the representative policy board, excluding vacancies, 2454
3052+except that the acquisition of the Aquarion Water Company or one or 2455
3053+more of its subsidiaries shall have no such limitations, and the carrying 2456
3054+out of its powers, purposes, and duties under sections 1 to 33, inclusive, 2457
3055+of special act 77-98, as amended by special act 78-24, special act 84-46, 2458
3056+sections 5 to 7, inclusive, of special act 99-12, sections 2 to 21, inclusive, 2459
3057+of public act 02-85, special act 13-20, special act 17-5, special act 24-7 and 2460
3058+Bill No.
3059+
3060+
3061+
3062+LCO No. 6185 82 of 137
3063+
3064+this act, and for the benefit of the people residing in the South Central 2461
3065+Connecticut Regional Water District and the state of Connecticut, and 2462
3066+for the improvement of their health, safety and welfare, that said 2463
3067+purposes are public purposes, and that the authority will be performing 2464
3068+an essential governmental function in the exercise of its powers under 2465
3069+sections 1 to 33, inclusive, of special act 77-98, as amended by special act 2466
3070+78-24, special act 84-46, sections 5 to 7, inclusive, of special act 99-12, 2467
3071+section 2 of public act 02-85, special act 13-20, special act 17-5, special act 2468
3072+24-7 and this act. The authority shall have the power to conduct or invest 2469
3073+in noncore businesses authorized pursuant to this section, either directly 2470
3074+or through an affiliated business entity. 2471
3075+Sec. 35. Section 2 of special act 77-98, as amended by section 1 of 2472
3076+special act 78-24, section 3 of public act 02-85, section 2 of special act 13-2473
3077+20, section 2 of special act 17-5 and section 2 of special act 24-7, is 2474
3078+amended to read as follows (Effective from passage): 2475
3079+As used in sections 1 to 33, inclusive, of special act 77-98, as amended 2476
3080+by special act 78-24, public act 02-85, special act 13-20, special act 17-5, 2477
3081+special act 24-7 and this act, unless a different meaning appears in the 2478
3082+context: "Authority" means the South Central Connecticut Regional 2479
3083+Water Authority created by section 5 of special act 77-98, as amended by 2480
3084+section 4 of special act 78-24, public act 02-85 and special act 13-20; 2481
3085+"district" means the South Central Connecticut Regional Water District 2482
3086+created by section 3 of special act 77-98, as amended by section 2 of 2483
3087+special act 78-24; "representative policy board" means the representative 2484
3088+policy board of the South Central Connecticut Regional Water District 2485
3089+created by section 4 of special act 77-98, as amended by section 3 of 2486
3090+special act 78-24; "chief executive officer" means that full time employee 2487
3091+of the authority responsible for the execution of the policies of the 2488
3092+authority and for the direction of the other employees of the authority; 2489
3093+"treasurer" means the treasurer of the authority; "customer" means any 2490
3094+person, firm, corporation, company, association or governmental unit 2491
3095+furnished water or wastewater service by the authority or any owner of 2492
3096+property who guarantees payment for water or wastewater service to 2493
3097+Bill No.
3098+
3099+
3100+
3101+LCO No. 6185 83 of 137
3102+
3103+such property; "properties" means the water supply and distribution 2494
3104+system or systems, wastewater collection and treatment systems and 2495
3105+other real or personal property of the authority; "bonds" means bonds, 2496
3106+notes and other obligations issued by the authority; "revenues" means 2497
3107+all rents, charges and other income derived from the operation of the 2498
3108+properties of the authority; "wastewater" means any substance, liquid 2499
3109+or solid, which may contaminate or pollute or affect the cleanliness or 2500
3110+purity of any water; "water supply system" means plants, structures and 2501
3111+other real and personal property acquired, constructed or operated for 2502
3112+the purpose of supplying water, including basins, dams, canals, 2503
3113+aqueducts, standpipes, pumping stations, water distribution systems, 2504
3114+including land, reservoirs, conduits, pipelines, mains, compensating 2505
3115+reservoirs, waterworks or sources of water supply, wells, purification or 2506
3116+filtration plants or other plants and works, connections, rights of 2507
3117+flowage or diversion and other plants, structures, conveyances, real or 2508
3118+personal property or rights therein and appurtenances necessary or 2509
3119+useful and convenient for the accumulation, supply or distribution of 2510
3120+water or for the conduct of water or environment related activities; 2511
3121+"wastewater system" means plants, structures and other real and 2512
3122+personal property acquired, constructed or operated for the purpose of 2513
3123+collecting, treating and discharging or reusing wastewater, whether or 2514
3124+not interconnected, including wastewater treatment plants, pipes and 2515
3125+conduits for collection of wastewater, pumping stations and other 2516
3126+plants, works, structures, conveyances, real or personal property or 2517
3127+rights therein and appurtenances necessary or useful and convenient for 2518
3128+the collection, transmission, treatment and disposition of wastewater; 2519
3129+"subsidiary corporation" means a corporation organized under the 2520
3130+general statutes or by special act which owns or operates all or part of a 2521
3131+water supply system or a wastewater system within the district and all 2522
3132+of the voting stock of which is owned by the authority; [,] "noncore 2523
3133+business" means an activity, including an activity conducted outside the 2524
3134+state of Connecticut, that is the acquisition of the Aquarion Water 2525
3135+Company or one or more of its subsidiaries or an activity that is related 2526
3136+to water, environment, agriculture, sustainable manufacturing support, 2527
3137+Bill No.
3138+
3139+
3140+
3141+LCO No. 6185 84 of 137
3142+
3143+or an energy project consisting of either a class I renewable energy 2528
3144+source, as defined in subdivision (20) of subsection (a) of section 16-1 of 2529
3145+the general statutes, or a class III source, as defined in subdivision (38) 2530
3146+of said section, but excluding wind sources located within the district 2531
3147+and any activity located on property that is class I or class II land owned 2532
3148+by the authority; and "affiliated business entity" means a corporation, a 2533
3149+limited liability company or a limited partnership controlled directly or 2534
3150+indirectly by the authority that conducts or invests in a noncore 2535
3151+business. A reference in sections 1 to 33, inclusive, of special act 77-98, 2536
3152+as amended by special act 78-24, special act 84-46, public act 02-85 and 2537
3153+special act 13-20, to any general statute, public act or special act shall 2538
3154+include any amendment or successor thereto. 2539
3155+Sec. 36. Section 4 of special act 77-98, as amended by section 3 of 2540
3156+special act 78-24, section 2 of special act 84-46, section 5 of public act 02-2541
3157+85, section 2 of special act 03-11, section 10 of special act 13-20 and 2542
3158+section 3 of special act 24-7, is amended by adding subsection (f) as 2543
3159+follows (Effective from passage): 2544
3160+(f) The members of the representative policy board shall have the 2545
3161+authority to act on behalf of the Aquarion representative policy board, 2546
3162+as defined in section 35 of section 41 of this act, until such time as the 2547
3163+members of the Aquarion representative policy board are appointed. 2548
3164+Sec. 37. Section 5 of special act 77-98, as amended by section 4 of 2549
3165+special act 78-24 and section 4 of special act 24-7, is amended to read as 2550
3166+follows (Effective from passage): 2551
3167+(a) A public corporation, to be known as the "South Central 2552
3168+Connecticut Regional Water Authority," constituting a public 2553
3169+instrumentality and political subdivision, is created for the purposes, 2554
3170+charged with the duties and granted the powers provided in sections 1 2555
3171+to 33, inclusive, of special act 77-98, as amended by special act 78-24 and 2556
3172+this act. On and before December 31, 2024, the authority shall consist of 2557
3173+five members who shall be residents of the district and not be members 2558
3174+Bill No.
3175+
3176+
3177+
3178+LCO No. 6185 85 of 137
3179+
3180+of the representative policy board. On and after January 1, 2025, except 2559
3181+as provided in subsection (c) of this section, the authority shall consist 2560
3182+of seven members who shall reside in Connecticut and not be members 2561
3183+of the representative policy board, and not fewer than five such 2562
3184+members shall be residents of the district. All members shall be 2563
3185+appointed without regard to political affiliation by a majority of the total 2564
3186+votes of those members of the representative policy board present at a 2565
3187+meeting at which at least two-thirds of the weighted vote, excluding 2566
3188+vacancies, is present, for terms of five years, not to exceed four 2567
3189+consecutive full terms, and until their successors are appointed and 2568
3190+have qualified, except that of the members first appointed, one shall be 2569
3191+appointed for a term ending January 1, 1983, one for a term ending 2570
3192+January 1, 1982, one for a term ending January 1, 1981, one for a term 2571
3193+ending January 1, 1980, and one for a term ending January l, 1979. The 2572
3194+sixth member first appointed shall be appointed for a three-year term 2573
3195+ending January 1, 2028, and the seventh member first appointed shall be 2574
3196+appointed for a five-year term ending January 1, 2030. Any vacancy 2575
3197+occurring on the authority shall be filled in the same manner for the 2576
3198+unexpired portion of the term. Any member of the authority may be 2577
3199+removed from office by the representative policy board for cause. 2578
3200+Members of the authority shall receive such compensation to be 2579
3201+adjusted every three years by the Consumer Price Index factor, as 2580
3202+described in section 4 of special act 77-98, as amended by special act 78-2581
3203+24, special act 84-46, public act 02-85, special act 03-11, special act 13-20 2582
3204+and this act, if approved by the majority of weighted votes of the 2583
3205+membership of the representative policy board, excluding vacancies, 2584
3206+and shall be reimbursed for their necessary expenses incurred in 2585
3207+performance of their duties. 2586
3208+(b) The members of the South Central Connecticut Regional Water 2587
3209+Authority board shall have the authority to act on behalf of the 2588
3210+Aquarion Water Authority, as described in section 35 of section 41 of 2589
3211+this act, until such time as the members of the Aquarion Water 2590
3212+Authority board are appointed. 2591
3213+Bill No.
3214+
3215+
3216+
3217+LCO No. 6185 86 of 137
3218+
3219+(c) Notwithstanding the provisions of subsection (a) of this section, 2592
3220+upon the Public Utilities Regulatory Authority's approval of the South 2593
3221+Central Connecticut Regional Water Authority or the Aquarion Water 2594
3222+Authority to own and operate the Aquarion Water Company or one or 2595
3223+more of its subsidiaries, the authority board shall consist of eleven 2596
3224+members who shall reside in Connecticut and not be members of the 2597
3225+representative policy board, six of whom shall be residents of the South 2598
3226+Central Connecticut Regional Water District appointed by the 2599
3227+representative policy board, and five of whom shall be appointed by the 2600
3228+representative policy board of the Aquarion Regional Water District, as 2601
3229+described in section 35 of section 41 of this act, in accordance with 2602
3230+section 38 of section 41 of this act. The six members appointed by the 2603
3231+representative policy board of the authority shall have the authority to 2604
3232+act on behalf of the Aquarion Water Authority until such time as the 2605
3233+members of the Aquarion Water Authority are appointed. All such 2606
3234+authority members shall be appointed without regard to political 2607
3235+affiliation by a majority of the total votes of those members of the 2608
3236+representative policy board present at a meeting at which at least two-2609
3237+thirds of the weighted vote, excluding vacancies, is present, for terms of 2610
3238+five years, not to exceed four consecutive full terms, and until their 2611
3239+successors are appointed and have qualified. The sixth member first 2612
3240+appointed shall be appointed for a three-year term ending January 1, 2613
3241+2028, and the seventh member first appointed shall be appointed for a 2614
3242+five-year term ending January 1, 2030. Any vacancy occurring on the 2615
3243+authority shall be filled in the same manner for the unexpired portion of 2616
3244+the term. Any member of the authority may be removed from office by 2617
3245+the representative policy board for cause. Members of the authority 2618
3246+shall receive such compensation to be adjusted every three years by the 2619
3247+Consumer Price Index factor, as described in section 4 of special act 77-2620
3248+98, as amended by special act 78-24, special act 84-46, public act 02-85, 2621
3249+special act 03-11, special act 13-20, special act 24-7 and this act, if 2622
3250+approved by the majority of weighted votes of the membership of the 2623
3251+representative policy board, excluding vacancies, and shall be 2624
3252+reimbursed for their necessary expenses incurred in performance of 2625
3253+Bill No.
3254+
3255+
3256+
3257+LCO No. 6185 87 of 137
3258+
3259+their duties. 2626
3260+Sec. 38. Section 9 of special act 77-98, as amended by section 5 of 2627
3261+special act 24-7, is amended to read as follows (Effective from passage): 2628
3262+The authority shall meet at least quarterly. Except as the bylaws of 2629
3263+the authority may provide in emergency situations, the powers of the 2630
3264+authority shall be exercised by the members at a meeting duly called 2631
3265+and held. On and before December 31, 2024, three members shall 2632
3266+constitute a quorum, and on and after January 1, 2025, four members 2633
3267+shall constitute a quorum, provided that after the appointment of all 2634
3268+authority members appointed by the representative policy board of the 2635
3269+Aquarion Regional Water District, a quorum shall be six members, and 2636
3270+no action shall be taken except pursuant to the affirmative vote of a 2637
3271+quorum. The authority may delegate to one or more of its members, 2638
3272+officers, agents or employees such powers and duties as it may deem 2639
3273+proper. 2640
3274+Sec. 39. Section 11 of special act 77-98, as amended by section 5 of 2641
3275+special act 78-24, section 3 of special act 84-46, section 7 of special act 02-2642
3276+85, and section 3 of special act 17-5, is amended to read as follows 2643
3277+(Effective from passage): 2644
3278+Subject to the provisions of sections 1 to 33, inclusive, of special act 2645
3279+77-98, as amended by special act 78-24, special act 84-46 sections 5 to 7, 2646
3280+inclusive, of special act 99-12, public act 02-85, special act 13-20, special 2647
3281+act 17-5, special act 24-7 and this act, the authority shall have the power: 2648
3282+(a) To sue and be sued; (b) to have a seal and alter the same at its 2649
3283+pleasure; (c) to acquire in the name of the authority by purchase, lease 2650
3284+or otherwise and to hold and dispose of personal property or any 2651
3285+interest therein, including shares of stock of a subsidiary corporation; 2652
3286+(d) to acquire in the name of the authority by purchase, lease or 2653
3287+otherwise and to hold and dispose of any real property or interest 2654
3288+therein, including water rights and rights of way and water discharge 2655
3289+rights, which the authority determines to be necessary or convenient, 2656
3290+Bill No.
3291+
3292+
3293+
3294+LCO No. 6185 88 of 137
3295+
3296+and to acquire any existing wastewater system or water supply system 2657
3297+or parts thereof which are wholly or partially within the district as 2658
3298+described under section 3 of special act 77-98, as amended by section 2 2659
3299+of special act 78-24, section 1 of special act 84-46 and public act 02-85. As 2660
3300+a means of so acquiring, the authority or a subsidiary corporation may 2661
3301+purchase all of the stock or all of any part of the assets and franchises of 2662
3302+any existing privately owned water or wastewater company, 2663
3303+whereupon the authority or such subsidiary corporation shall succeed 2664
3304+to all rights, powers and franchises thereof. Sections 16-43, 16-50c and 2665
3305+16-50d of the general statutes shall not apply to any action by the 2666
3306+authority or a subsidiary corporation or any action by any privately 2667
3307+owned water company or sewage company, as defined in section 16-1 2668
3308+of the general statutes, taken to effectuate the acquisition of the stock or 2669
3309+all or any part of the assets and franchises of such water company or 2670
3310+sewage company by the authority, provided section 16-43 of the general 2671
3311+statutes shall apply to any action taken to effectuate the acquisition of 2672
3312+the stock or all or any part of the assets and franchises of the Ansonia 2673
3313+Derby Water Company by the authority. Notwithstanding any 2674
3314+provision of section 25-32 of the general statutes, land may be 2675
3315+transferred to the authority or a subsidiary corporation of the authority 2676
3316+as part of such an acquisition. The commissioner of health services shall 2677
3317+not grant a permit for a change in the use of any class I or class II land 2678
3318+owned by the Ansonia Derby Water Company on the effective date of 2679
3319+this section and not transferred to the authority or a subsidiary 2680
3320+corporation or a permit for the sale, lease or assignment of any such class 2681
3321+II land, unless (1) all provisions of section 25-32 of the general statutes 2682
3322+are complied with, and (2) the commissioner of health services 2683
3323+determines, after holding a hearing, notice of which shall be published 2684
3324+not later than thirty days before the hearing in one or more newspapers 2685
3325+having a substantial circulation in the municipalities in which the land 2686
3326+is located, that such change in the use or sale, lease, or assignment of the 2687
3327+land will not have a significant adverse impact upon present and future 2688
3328+water supply needs of the authority or a subsidiary corporation of the 2689
3329+authority; [:] (e) to construct and develop any water supply system or 2690
3330+Bill No.
3331+
3332+
3333+
3334+LCO No. 6185 89 of 137
3335+
3336+any wastewater system; (f) to own, operate, maintain, repair, improve, 2691
3337+construct, reconstruct, replace, enlarge and extend any of its properties; 2692
3338+(g) any provision in any general statute, special act or charter to the 2693
3339+contrary notwithstanding, but subject to the provisions of section 12 of 2694
3340+special act 77-98, as amended by section 8 of public act 02-85, and section 2695
3341+28 of special act 77-98, as amended by section 9 of special act 78-24, to 2696
3342+sell water, however acquired, to customers within the district or to any 2697
3343+municipality or water company; (h) any provisions in any general 2698
3344+statute, special act or charter to the contrary notwithstanding, to 2699
3345+purchase water approved by the commissioner of health from any 2700
3346+person, private corporation or municipality when necessary or 2701
3347+convenient for the operation of any water supply system operated by 2702
3348+the authority; (i) to adopt and amend bylaws, rules and regulations for 2703
3349+the management and regulation of its affairs and for the use and 2704
3350+protection of the water and properties of the authority or a subsidiary 2705
3351+corporation and, subject to the provisions of any resolution authorizing 2706
3352+the issuance of bonds, rules for the sale of water, the collection and 2707
3353+processing of wastewater and the collection of rents and charges for 2708
3354+both water supply and wastewater functions. A copy of such bylaws, 2709
3355+rules and regulations and all amendments thereto, certified by the 2710
3356+secretary of the authority, shall be filed in the office of the secretary of 2711
3357+the state and with the clerk of each town and city within the district. 2712
3358+Any superior court located within the district shall have jurisdiction 2713
3359+over any violation of such bylaws, rules or regulations and the authority 2714
3360+may prosecute actions before the superior court to enforce such bylaws, 2715
3361+rules and regulations; (j) to make contracts and to execute all necessary 2716
3362+or convenient instruments, including evidences of indebtedness, 2717
3363+negotiable or non-negotiable; (k) to borrow money, to issue negotiable 2718
3364+bonds or notes, to fund and refund the same and to provide for the 2719
3365+rights of the holders of the authority's obligations; (l) to open the 2720
3366+grounds in any public street or way or public grounds for the purpose 2721
3367+of laying, installing, maintaining or replacing pipes and conduits, 2722
3368+provided upon the completion of such work the grounds shall be 2723
3369+restored to the condition they were in previously; (m) to enter into 2724
3370+Bill No.
3371+
3372+
3373+
3374+LCO No. 6185 90 of 137
3375+
3376+cooperative agreements with other water authorities, municipalities, 2725
3377+water districts, water companies or water pollution control authorities 2726
3378+within or without the district for interconnection of facilities, for 2727
3379+exchange or interchange of services and commodities or for any other 2728
3380+lawful purpose necessary or desirable to effect the purposes of sections 2729
3381+1 to 33, inclusive, of special act 77-98, as amended by special act 78-24, 2730
3382+special act 84-46 and sections 5 to 7, inclusive, of special act 99-12, special 2731
3383+act 13-20, special act 17-5, special act 24-7 and this act, such agreements 2732
3384+to be binding for a period specified therein; (n) to acquire, hold, develop 2733
3385+and maintain land and other real estate and waters for conservation and 2734
3386+for compatible active and passive recreational purposes and to levy 2735
3387+charges for such uses, provided the state department of health finds that 2736
3388+such uses will not harm the quality of water provided by the authority; 2737
3389+(o) to apply for and accept grants, loans or contributions from the United 2738
3390+States, the state of Connecticut or any agency, instrumentality or 2739
3391+subdivision of either of them or from any person, and to expend the 2740
3392+proceeds for any of its purposes; (p) to create programs and policies for 2741
3393+the purpose of conserving water; (q) to do any and all things necessary 2742
3394+or convenient to carry out the powers expressly given in sections 1 to 33, 2743
3395+inclusive, of special act 77-98, as amended by special act 78-24, special 2744
3396+act 84-76, sections 5 to 7, inclusive, of special act 99-12, public act 02-85, 2745
3397+special act 13-20, special act 17-5, special act 24-7 and this act, including 2746
3398+the powers granted by the general statutes to stock corporations, except 2747
3399+the power to issue stock, and the powers granted by the general statutes 2748
3400+to water pollution control authorities; and (r) to borrow money, to issue 2749
3401+negotiable bonds or notes, to fund and refund the same and to provide 2750
3402+for the rights of the holders of the authority's obligations for the specific 2751
3403+purpose of acquiring the Aquarion Water Company or one or more of 2752
3404+its subsidiaries. 2753
3405+Sec. 40. Subsection (a) of section 15 of special act 77-98, as amended 2754
3406+by section 8 of special act 99-12 and section 11 of special act 02-85, is 2755
3407+amended to read as follows (Effective from passage): 2756
3408+(a) The representative policy board shall establish an office of 2757
3409+Bill No.
3410+
3411+
3412+
3413+LCO No. 6185 91 of 137
3414+
3415+consumer affairs to act as the advocate for consumer interests in all 2758
3416+matters which may affect consumers, including without limitation 2759
3417+matters of rates, water quality and supply and wastewater service 2760
3418+quality. The costs of such office of consumer affairs, unless otherwise 2761
3419+provided by the state, shall jointly be paid by the authority and the 2762
3420+Aquarion Water Authority. 2763
3421+Sec. 41. Special act 77-98, as amended by special act 78-24, special act 2764
3422+84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-2765
3423+20, special act 17-5, special act 18-04 and special act 24-7, is amended by 2766
3424+adding sections 34 to 65, inclusive, as follows (Effective from passage): 2767
3425+Sec. 34. It is found and declared as a matter of legislative 2768
3426+determination that the creation of the Aquarion Water Authority for the 2769
3427+primary purpose of providing and assuring the provision of an 2770
3428+adequate supply of pure water and the safe disposal of wastewater at 2771
3429+reasonable cost within the Aquarion Regional Water District and such 2772
3430+other areas as may be served pursuant to cooperative agreements and 2773
3431+acquisitions and, to the degree consistent with the foregoing, of 2774
3432+advancing water conservation and the conservation and compatible 2775
3433+recreational use of land held by the authority, conducting or investing 2776
3434+in noncore businesses, provided, at the time of any investment in such 2777
3435+businesses, the authority's investment, less returns of or on such 2778
3436+investments in such businesses, shall not exceed the greater of five per 2779
3437+cent of the authority's net utility plant devoted to its water and 2780
3438+wastewater utility businesses or such higher amount approved by a 2781
3439+majority of the total weighted votes of the membership of the Aquarion 2782
3440+representative policy board, excluding vacancies, and the carrying out 2783
3441+of its powers, purposes, and duties under sections 34 to 65, inclusive, of 2784
3442+this act and for the benefit of the people residing in the Aquarion 2785
3443+Regional Water District and the state of Connecticut, and for the 2786
3444+improvement of their health, safety and welfare, that said purposes are 2787
3445+public purposes, and that the authority will be performing an essential 2788
3446+governmental function in the exercise of its powers under sections 34 to 2789
3447+65, inclusive, of this act. The authority shall have the power to conduct 2790
3448+Bill No.
3449+
3450+
3451+
3452+LCO No. 6185 92 of 137
3453+
3454+or invest in noncore businesses authorized pursuant to this section, 2791
3455+either directly or through an affiliated business entity. 2792
3456+Sec. 35. As used in sections 34 to 65, inclusive, of this act unless a 2793
3457+different meaning appears in the context: "Authority" means the 2794
3458+Aquarion Water Authority; "district" means the Aquarion Regional 2795
3459+Water District; "Aquarion representative policy board" means the 2796
3460+representative policy board of the Aquarion Regional Water District; 2797
3461+"chief executive officer" means that full time employee of the authority 2798
3462+responsible for the execution of the policies of the authority and for the 2799
3463+direction of the other employees of the authority; "treasurer" means the 2800
3464+treasurer of the authority; "customer" means any person, firm, 2801
3465+corporation, company, association or governmental unit furnished 2802
3466+water or wastewater service by the authority or any owner of property 2803
3467+who guarantees payment for water or wastewater service to such 2804
3468+property; "properties" means the water supply and distribution system 2805
3469+or systems, wastewater collection and treatment systems and other real 2806
3470+or personal property of the authority; "bonds" means bonds, notes and 2807
3471+other obligations issued by the authority; "revenues" means all rents, 2808
3472+charges and other income derived from the operation of the properties 2809
3473+of the authority; "wastewater" means any substance, liquid or solid, 2810
3474+which may contaminate or pollute or affect the cleanliness or purity of 2811
3475+any water; "water supply system" means plants, structures and other 2812
3476+real and personal property acquired, constructed or operated for the 2813
3477+purpose of supplying water, including basins, dams, canals, aqueducts, 2814
3478+standpipes, pumping stations, water distribution systems, including 2815
3479+land, reservoirs, conduits, pipelines, mains, compensating reservoirs, 2816
3480+waterworks or sources of water supply, wells, purification or filtration 2817
3481+plants or other plants and works, connections, rights of flowage or 2818
3482+diversion and other plants, structures, conveyances, real or personal 2819
3483+property or rights therein and appurtenances necessary or useful and 2820
3484+convenient for the accumulation, supply or distribution of water or for 2821
3485+the conduct of water or environment related activities; "wastewater 2822
3486+system" means plants, structures and other real and personal property 2823
3487+Bill No.
3488+
3489+
3490+
3491+LCO No. 6185 93 of 137
3492+
3493+acquired, constructed or operated for the purpose of collecting, treating 2824
3494+and discharging or reusing wastewater, whether or not interconnected, 2825
3495+including wastewater treatment plants, pipes and conduits for 2826
3496+collection of wastewater, pumping stations and other plants, works, 2827
3497+structures, conveyances, real or personal property or rights therein and 2828
3498+appurtenances necessary or useful and convenient for the collection, 2829
3499+transmission, treatment and disposition of wastewater; "subsidiary 2830
3500+corporation" means a corporation organized under the general statutes 2831
3501+or by special act which owns or operates all or part of a water supply or 2832
3502+a wastewater system within the district and all of the voting stock of 2833
3503+which is owned by the authority; "noncore business" means an activity, 2834
3504+including an activity conducted outside the state of Connecticut, that is 2835
3505+the acquisition of the Aquarion Water Company or one or more of its 2836
3506+subsidiaries or an activity that is related to water, environment, 2837
3507+agriculture, sustainable manufacturing support, or an energy project 2838
3508+consisting of either a class I renewable energy source, as defined in 2839
3509+subdivision (20) of subsection (a) of section 16-1 of the general statutes, 2840
3510+or a class III source, as defined in subdivision (38) of said section, but 2841
3511+excluding wind sources located within the district and any activity 2842
3512+located on property that is class I or class II land owned by the authority; 2843
3513+and "affiliated business entity" means a corporation, a limited liability 2844
3514+company or a limited partnership controlled directly or indirectly by the 2845
3515+authority that conducts or invests in a noncore business. A reference in 2846
3516+sections 34 to 65, inclusive, of this act to any general statute, public act 2847
3517+or special act shall include any amendment or successor thereto. 2848
3518+Sec. 36. There is created a district to be known as the "Aquarion 2849
3519+Regional Water District" which embraces the area and territory of the 2850
3520+towns and cities of Beacon Falls, Bethel, Bridgeport, Brookfield, 2851
3521+Burlington, Canaan, Cornwall, Danbury, Darien, East Derby, East 2852
3522+Granby, East Hampton, Easton, Fairfield, Farmington, Goshen, Granby, 2853
3523+Greenwich, Groton, Harwinton, Kent, Lebanon, Litchfield, Mansfield, 2854
3524+Marlborough, Middlebury, Monroe, New Canaan, New Fairfield, New 2855
3525+Hartford, New Milford, Newtown, Norfolk, North Canaan, Norwalk, 2856
3526+Bill No.
3527+
3528+
3529+
3530+LCO No. 6185 94 of 137
3531+
3532+Norwich, Oxford, Plainville, Redding, Ridgefield, Salisbury, Seymour, 2857
3533+Shelton, Sherman, Simsbury, Southbury, Southington, Stamford, 2858
3534+Stonington, Stratford, Suffield, Torrington, Trumbull, Washington, 2859
3535+Weston, Westport, Wilton, Wolcott, and Woodbury; provided, if the 2860
3536+authority shall neither own land or properties nor sell water or provide 2861
3537+wastewater services directly to customers in any city or town within the 2862
3538+district, the area and territory of such city or town thereupon shall be 2863
3539+excluded from the district. 2864
3540+Sec. 37. (a) The Aquarion representative policy board shall consist of 2865
3541+one elector from each city and town within the district who shall be 2866
3542+appointed by the chief elected official of such city or town, with the 2867
3543+approval of its legislative body, and one elector of the state who shall be 2868
3544+appointed by the governor. The term of the initial members of the 2869
3545+Aquarion representative policy board shall commence when each 2870
3546+member is first appointed and each member shall serve for a term of 2871
3547+three years, except that members first appointed from Beacon Falls, 2872
3548+Bethel, Bridgeport, Brookfield, Burlington, Canaan, Cornwall, Danbury, 2873
3549+Darien, East Derby, East Granby, East Hampton, Easton, Fairfield, 2874
3550+Farmington, Goshen, Granby, Greenwich, Groton, and Harwinton shall 2875
3551+serve until June 30, 2026, the members first appointed from Kent, 2876
3552+Lebanon, Litchfield, Mansfield, Marlborough, Middlebury, Monroe, 2877
3553+New Canaan, New Fairfield, New Hartford, New Milford, Newtown, 2878
3554+Norfolk, North Canaan, Norwalk, Norwich, Oxford, Plainville, 2879
3555+Redding, and Ridgefield shall serve until June 30, 2027, and the 2880
3556+members first appointed from Salisbury, Seymour, Shelton, Sherman, 2881
3557+Simsbury, Southbury, Southington, Stamford, Stonington, Stratford, 2882
3558+Suffield, Torrington, Trumbull, Washington, Weston, Westport, Wilton, 2883
3559+Wolcott, and Woodbury shall serve until June 30, 2028, and the member 2884
3560+first appointed by the governor shall serve for a term commencing upon 2885
3561+appointment and ending on the third June thirtieth thereafter; provided 2886
3562+members shall continue to serve until their successors are appointed 2887
3563+and have qualified. In the event of the resignation, death or disability of 2888
3564+a member from any city or town or the state, a successor may be 2889
3565+Bill No.
3566+
3567+
3568+
3569+LCO No. 6185 95 of 137
3570+
3571+appointed by the chief elected official of such city or town, or in the case 2890
3572+of the member appointed by the governor, by the governor, for the 2891
3573+unexpired portion of the term. Members shall receive two hundred fifty 2892
3574+dollars, adjusted as provided in this subsection, for each day in which 2893
3575+they are engaged in their duties and shall be reimbursed for their 2894
3576+necessary expenses incurred in the performance of their duties. Such 2895
3577+two-hundred-fifty dollar compensation amount shall be adjusted on 2896
3578+January 1, 2027, and every third year thereafter to reflect changes in the 2897
3579+Consumer Price Index for All Urban Consumers, Northeast Urban, All 2898
3580+Items (1982-84=100) published by the United States Bureau of Labor 2899
3581+Statistics or a comparable successor index. They shall elect a chairman 2900
3582+and a vice-chairman, who shall be members of the Aquarion 2901
3583+representative policy board, and a secretary. The chairman shall receive 2902
3584+a per diem payment of one and one-half times the amount paid to 2903
3585+members and provisional members. The Aquarion representative policy 2904
3586+board shall meet at least quarterly with the authority and such members 2905
3587+of the staff of the authority as the Aquarion representative policy board 2906
3588+deems appropriate. 2907
3589+(b) Notwithstanding the provisions of subsection (a) of this section, 2908
3590+no members shall be appointed to the board of the authority or the 2909
3591+Aquarion representative policy board until the date of the Public 2910
3592+Utilities Regulatory Authority's approval of the South Central 2911
3593+Connecticut Regional Water Authority or the Aquarion Water 2912
3594+Authority to own and operate the Aquarion Water Company or one or 2913
3595+more of its subsidiaries. The South Central Connecticut Regional Water 2914
3596+Authority shall send written notice to each entity with appointment 2915
3597+authority pursuant to subsection (a) of this section upon such approval. 2916
3598+(c) In voting upon all matters before the Aquarion representative 2917
3599+policy board, the vote of each member from a city or town shall be 2918
3600+accorded a weight, determined as follows: The sum of (1) the quotient 2919
3601+obtained by dividing the number of customers in the city or town from 2920
3602+which such member is appointed by the total number of customers in 2921
3603+all cities and towns from which members have been appointed, taken 2922
3604+Bill No.
3605+
3606+
3607+
3608+LCO No. 6185 96 of 137
3609+
3610+twice, and (2) the quotient obtained by dividing the number of acres of 2923
3611+land owned by the authority within the city or town from which such 2924
3612+member is appointed by the total number of acres of land owned by the 2925
3613+authority in all cities and towns from which members have been 2926
3614+appointed, shall be divided by three, the quotient thereof multiplied by 2927
3615+one hundred and the product thereof shall be rounded to the nearest 2928
3616+whole number. The weighted vote of the member appointed by the 2929
3617+governor shall be one. For the purposes of this section, "number of 2930
3618+customers" means the number of premises or groups of premises treated 2931
3619+as units for ordinary billing or other ordinary receipt of charges by the 2932
3620+authority and shall be determined from the records of the authority on 2933
3621+the last day of its preceding fiscal year and "number of acres of land" 2934
3622+means the number of acres of land rounded to the nearest whole number 2935
3623+as may appear on the records of the authority on the last day of its 2936
3624+preceding fiscal year. Whenever a vote is taken on any matter by the 2937
3625+Aquarion representative policy board, the vote shall be determined in 2938
3626+accordance with this subsection. Members of the Aquarion 2939
3627+representative policy board holding a majority of the votes so weighted 2940
3628+shall constitute a quorum. 2941
3629+(d) The Aquarion representative policy board shall adopt and may 2942
3630+amend such rules of procedure and bylaws for the conduct of its affairs 2943
3631+as it deems appropriate. It shall establish (1) a standing committee on 2944
3632+land use and management to consult with the authority on all matters 2945
3633+of land use and management, including acquisition and sale, 2946
3634+recreational use, cutting of timber and other products, mining and 2947
3635+quarrying; (2) a standing committee on finance to consult with the 2948
3636+authority on matters relating to financial and budgetary matters and the 2949
3637+establishment of rates; and (3) a standing committee on consumer affairs 2950
3638+to consult with the authority and the officer of consumer affairs 2951
3639+established pursuant to section 48 of this act on matters concerning the 2952
3640+interests of people residing within the district. The Aquarion 2953
3641+representative policy board may appoint such other committees as it 2954
3642+considers convenient from time to time. 2955
3643+Bill No.
3644+
3645+
3646+
3647+LCO No. 6185 97 of 137
3648+
3649+Sec. 38. (a) A public corporation, to be known as the "Aquarion Water 2956
3650+Authority", constituting a public instrumentality and political 2957
3651+subdivision, is created for the purposes, charged with the duties and 2958
3652+granted the powers provided in section 34 to 65, inclusive, of this act. 2959
3653+On and after December 31, 2025, the authority shall consist of eleven 2960
3654+members. Five of the members shall be residents of the Aquarion 2961
3655+Regional Water District who are appointed by the Aquarion 2962
3656+representative policy board and shall not be members of the Aquarion 2963
3657+representative policy board, and six of the members shall be members 2964
3658+of the South Central Connecticut Regional Water Authority who are 2965
3659+appointed by the South Central Connecticut Regional Water Authority 2966
3660+representative policy board. The eleven members of the board for the 2967
3661+Aquarion Water Authority shall be and remain the same eleven 2968
3662+members of the board of the South Central Connecticut Water 2969
3663+Authority. All authority board members shall be appointed without 2970
3664+regard to political affiliation by a majority of the total votes of those 2971
3665+members of the Aquarion representative policy board present at a 2972
3666+meeting at which at least two-thirds of the weighted vote, excluding 2973
3667+vacancies, is present, for terms of five years, not to exceed four 2974
3668+consecutive full terms, and until their successors are appointed and 2975
3669+have qualified, except that of the members first appointed, two shall be 2976
3670+appointed for a term ending January 1, 2026, two for a term ending 2977
3671+January 1, 2027, two for a term ending January 1, 2028, two for a term 2978
3672+ending January 1, 2029, and three for a term ending January 1, 2030. Any 2979
3673+vacancy occurring on the authority shall be filled in the same manner 2980
3674+for the unexpired portion of the term. Any member of the authority may 2981
3675+be removed from office by the Aquarion representative policy board for 2982
3676+cause. Members of the authority shall receive such compensation, to be 2983
3677+adjusted every three years by the Consumer Price Index factor, as 2984
3678+described in section 37 of this act, if approved by the majority of 2985
3679+weighted votes of the membership of the Aquarion representative 2986
3680+policy board, excluding vacancies, and shall be reimbursed for their 2987
3681+necessary expenses incurred in performance of their duties. 2988
3682+Bill No.
3683+
3684+
3685+
3686+LCO No. 6185 98 of 137
3687+
3688+(b) Notwithstanding the provisions of subsection (a) of this section, 2989
3689+no members shall be appointed to the board of the authority or the 2990
3690+Aquarion representative policy board until the date of the Public 2991
3691+Utilities Regulatory Authority's approval of the South Central 2992
3692+Connecticut Regional Water Authority or the Aquarion Water 2993
3693+Authority to own and operate the Aquarion Water Company or one or 2994
3694+more of its subsidiaries. 2995
3695+Sec. 39. The duration of the Aquarion representative policy board and 2996
3696+of the authority shall be perpetual unless terminated or altered by act of 2997
3697+the General Assembly, provided the General Assembly shall not 2998
3698+terminate the existence of the authority until all of its liabilities have 2999
3699+been met and its bonds have been paid in full or such liabilities and 3000
3700+bonds have otherwise been discharged. 3001
3701+Sec. 40. The officers of the authority shall be a chairman and a vice-3002
3702+chairman, who shall be members of the authority, and a treasurer and a 3003
3703+secretary, who may be members of the authority. The first chairman and 3004
3704+vice-chairman shall be the chairman and vice-chairman of the South 3005
3705+Central Connecticut Regional Water Authority, who shall each serve for 3006
3706+two-year terms, and each subsequent chairman and vice-chairman shall 3007
3707+be elected by the authority for two-year terms. All other officers shall be 3008
3708+elected by the authority for one-year terms. The treasurer shall execute 3009
3709+a bond conditioned upon the faithful performance of the duties of his 3010
3710+office, the amount and sufficiency of which shall be approved by the 3011
3711+authority and the premium therefor shall be paid by the authority. The 3012
3712+authority shall, from time to time, appoint an agent for the service of 3013
3713+process, and shall notify the secretary of the state of the same and 3014
3714+address of said agent. 3015
3715+Sec. 41. The authority may employ such persons as it may determine 3016
3716+to be necessary or convenient for the performance of its duties and may 3017
3717+fix and determine their qualifications, duties and compensation, 3018
3718+provided the chief executive officer shall be the chief executive officer of 3019
3719+the South Central Connecticut Regional Water Authority. The authority 3020
3720+Bill No.
3721+
3722+
3723+
3724+LCO No. 6185 99 of 137
3725+
3726+shall establish a position with ongoing responsibilities for the use and 3021
3727+management of its land resources and such other senior managerial 3022
3728+positions as it deems appropriate, which shall be filled by appointment 3023
3729+by the chief executive officer with the approval of the authority. The 3024
3730+authority may also, from time to time, contract for professional services. 3025
3731+Sec. 42. The authority shall meet at least quarterly. Except as the 3026
3732+bylaws of the authority may provide in emergency situations, the 3027
3733+powers of the authority shall be exercised by the members at a meeting 3028
3734+duly called and held. On and after December 31, 2025, six members shall 3029
3735+constitute a quorum, and no action shall be taken except pursuant to the 3030
3736+affirmative vote of a quorum. The authority may delegate to one or more 3031
3737+of its members, officers, agents or employees such powers and duties as 3032
3738+it may deem proper. 3033
3739+Sec. 43. Except in the event of an emergency, whenever a public 3034
3740+hearing is required under sections 34 to 65, inclusive, of this act, notice 3035
3741+of such hearing shall be published by the Aquarion representative 3036
3742+policy board at least twenty days before the date set therefor, in a 3037
3743+newspaper or newspapers having a general circulation in each city and 3038
3744+town comprising the district. In the event of an emergency, notice of 3039
3745+such hearing shall be authorized by the chairman of the Aquarion 3040
3746+representative policy board and published in such newspaper or 3041
3747+newspapers at least seven days before the date set therefor. If there is no 3042
3748+such newspaper, such notice shall be published in one or more 3043
3749+electronic media, including, without limitation, the authority's Internet 3044
3750+web site, as are likely to reach a broad segment of persons within the 3045
3751+district. Such notice shall set forth the date, time and place of such 3046
3752+hearing and shall include a description of the matters to be considered 3047
3753+at such hearing. A copy of the notice shall be filed in the office of the 3048
3754+clerk of each such city and town and shall be available for inspection by 3049
3755+the public. At such hearings, all the users of the water supply system or 3050
3756+the wastewater system, owners of property served or to be served and 3051
3757+other interested persons shall have an opportunity to be heard 3052
3758+concerning the matter under consideration. When appropriate, the 3053
3759+Bill No.
3760+
3761+
3762+
3763+LCO No. 6185 100 of 137
3764+
3765+chairman of the Aquarion representative policy board may convene 3054
3766+more than one hearing on any matter and direct such hearings to be held 3055
3767+in suitable locations within the district so as to assure broader 3056
3768+participation by the general public in discussion of the matters under 3057
3769+consideration, provided in the case of the sale or transfer of real 3058
3770+property pursuant to section 51 of this act, a public hearing shall be held 3059
3771+in the city or town in which such real property is situated. Any decision 3060
3772+of the Aquarion representative policy board on matters considered at 3061
3773+such public hearing shall be in writing and shall be published in a 3062
3774+newspaper or newspapers having a general circulation in each city and 3063
3775+town comprising the district within thirty days after such decision is 3064
3776+made. For purposes of this section, "emergency" means a determination 3065
3777+by the chief executive officer of the authority, the chairman of the 3066
3778+authority and the chairman of the Aquarion representative policy board, 3067
3779+or their designees, that (1) delay in the award of a contract or the 3068
3780+expenditure of capital funds may threaten the public's safety or place 3069
3781+property at risk, (2) immediate action is necessary to respond to or 3070
3782+recover from a natural disaster or invasion or other hostile action, or (3) 3071
3783+immediate action is necessary to respond to an event threatening or 3072
3784+compromising the integrity of the authority's information systems and 3073
3785+associated infrastructure. 3074
3786+Sec. 44. Subject to the provisions of sections 34 to 65, inclusive, of this 3075
3787+act, the authority shall have the power: (a) To sue and be sued; (b) to 3076
3788+have a seal and alter the same at its pleasure; (c) to acquire in the name 3077
3789+of the authority by purchase, lease or otherwise and to hold and dispose 3078
3790+of personal property or any interest therein, including shares of stock of 3079
3791+a subsidiary corporation; (d) to acquire in the name of the authority by 3080
3792+purchase, lease or otherwise and to hold and dispose of any real 3081
3793+property or interest therein, including water rights and rights of way 3082
3794+and water discharge rights, which the authority determines to be 3083
3795+necessary or convenient, and to acquire any existing wastewater system 3084
3796+or water supply system or parts thereof which are wholly or partially 3085
3797+within the district as described under section 36 of this act. As a means 3086
3798+Bill No.
3799+
3800+
3801+
3802+LCO No. 6185 101 of 137
3803+
3804+of so acquiring, the authority or a subsidiary corporation may purchase 3087
3805+all of the stock or all of any part of the assets and franchises of any 3088
3806+existing privately owned water or wastewater company, whereupon the 3089
3807+authority or such subsidiary corporation shall succeed to all rights, 3090
3808+powers and franchises thereof. Sections 16-43, 16-50c and 16-50d of the 3091
3809+general statutes shall not apply to any action by the authority or a 3092
3810+subsidiary corporation or any action by any privately owned water 3093
3811+company or sewage company, as defined in section 16-1 of the general 3094
3812+statutes, taken to effectuate the acquisition of the stock or all or any part 3095
3813+of the assets and franchises of such water company or sewage company 3096
3814+by the authority. Notwithstanding any provision of section 25-32 of the 3097
3815+general statutes, land may be transferred to the authority or a subsidiary 3098
3816+corporation of the authority as part of such an acquisition; (e) to 3099
3817+construct and develop any water supply system or any wastewater 3100
3818+system; (f) to own, operate, maintain, repair, improve, construct, 3101
3819+reconstruct, replace, enlarge and extend any of its properties; (g) 3102
3820+notwithstanding any provision of the general statutes, special acts or 3103
3821+this charter, but subject to the provisions of section 45 of this act, to sell 3104
3822+water, however acquired, to customers within the district or to any 3105
3823+municipality or water company; (h) notwithstanding any provision of 3106
3824+the general statutes, special acts or this charter, to purchase water 3107
3825+approved by the Commissioner of Public Health from any person, 3108
3826+private corporation or municipality when necessary or convenient for 3109
3827+the operation of any water supply system operated by the authority; (i) 3110
3828+to adopt and amend bylaws, rules and regulations for the management 3111
3829+and regulation of its affairs and for the use and protection of the water 3112
3830+and properties of the authority or a subsidiary corporation and, subject 3113
3831+to the provisions of any resolution authorizing the issuance of bonds, 3114
3832+rules for the sale of water, the collection and processing of wastewater 3115
3833+and the collection of rents and charges for both water supply and 3116
3834+wastewater functions. A copy of such bylaws, rules and regulations and 3117
3835+all amendments thereto, certified by the secretary of the authority, shall 3118
3836+be filed in the office of the Secretary of the State and with the clerk of 3119
3837+each town and city within the district. Any superior court located within 3120
3838+Bill No.
3839+
3840+
3841+
3842+LCO No. 6185 102 of 137
3843+
3844+the district shall have jurisdiction over any violation of such bylaws, 3121
3845+rules or regulations and the authority may prosecute actions before the 3122
3846+superior court to enforce such bylaws, rules and regulations; (j) to make 3123
3847+contracts and to execute all necessary or convenient instruments, 3124
3848+including evidences of indebtedness, negotiable or non-negotiable; (k) 3125
3849+to borrow money, to issue negotiable bonds or notes, to fund and refund 3126
3850+the same and to provide for the rights of the holders of the authority's 3127
3851+obligations; (l) to open the grounds in any public street or way or public 3128
3852+grounds for the purpose of laying, installing, maintaining or replacing 3129
3853+pipes and conduits, provided upon the completion of such work the 3130
3854+grounds shall be restored to the condition they were in previously; (m) 3131
3855+to enter into cooperative agreements with other water authorities, 3132
3856+municipalities, water districts, water companies or water pollution 3133
3857+control authorities within or without the district for interconnection of 3134
3858+facilities, for exchange or interchange of services and commodities or for 3135
3859+any other lawful purpose necessary or desirable to effect the purposes 3136
3860+of sections 34 to 65, inclusive, of this act, such agreements to be binding 3137
3861+for a period specified therein; (n) to acquire, hold, develop and maintain 3138
3862+land and other real estate and waters for conservation and for 3139
3863+compatible active and passive recreational purposes and to levy charges 3140
3864+for such uses, provided the state department of health finds that such 3141
3865+uses will not harm the quality of water provided by the authority; (o) to 3142
3866+apply for and accept grants, loans or contributions from the United 3143
3867+States, the state of Connecticut or any agency, instrumentality or 3144
3868+subdivision of either of them or from any person, and to expend the 3145
3869+proceeds for any of its purposes; (p) to create programs and policies for 3146
3870+the purpose of conserving water; (q) to do any and all things necessary 3147
3871+or convenient to carry out the powers expressly given in sections 34 to 3148
3872+36, inclusive, of this act and sections 38 to 40, inclusive, of this act, 3149
3873+including the powers granted by the general statutes to stock 3150
3874+corporations, except the power to issue stock, and the powers granted 3151
3875+by the general statutes to water pollution control authorities; and (r) to 3152
3876+borrow money, to issue negotiable bonds or notes, to fund and refund 3153
3877+the same and to provide for the rights of the holders of the authority's 3154
3878+Bill No.
3879+
3880+
3881+
3882+LCO No. 6185 103 of 137
3883+
3884+obligations for the specific purpose of acquiring the Aquarion Water 3155
3885+Company or one or more of its subsidiaries. 3156
3886+Sec. 45. The authority shall not sell water to customers in any part of 3157
3887+the district with respect to which any person, any firm or any 3158
3888+corporation incorporated under the general statutes or any special act 3159
3889+has been granted a franchise to operate as a water company, as defined 3160
3890+in section 16-1 of the general statutes, or in which any town, city or 3161
3891+borough or any district organized for municipal purposes operates a 3162
3892+municipal water supply system, unless the legislative body of such 3163
3893+town, city, borough or district, such person, or the governing board of 3164
3894+such firm or corporation shall consent in writing to such sale by the 3165
3895+authority. The authority shall not extend wastewater services into new 3166
3896+areas previously unserved without the approval of either the legislative 3167
3897+body of the town, city, borough or district in which such area is located 3168
3898+or a duly authorized water pollution control authority. 3169
3899+Notwithstanding the provisions of any town or district charter, any 3170
3900+town or district may sell or transfer a wastewater system to the authority 3171
3901+with the approval of the legislative body of such town or district after a 3172
3902+public hearing. 3173
3903+Sec. 46. (a) Except with respect to (1) any real or personal property or 3174
3904+interest therein, the legal title to which is vested in the state or a political 3175
3905+subdivision thereof, (2) any existing water supply system, or (3) any 3176
3906+existing wastewater system, if such authority cannot agree with any 3177
3907+owner upon the terms of acquisition by the authority of any real or 3178
3908+personal property or interest therein which the authority is authorized 3179
3909+to acquire, the authority may proceed, at its election, in the manner 3180
3910+provided in subsection (b) of this section or in the manner provided in 3181
3911+subsection (c) of this section, except that the authority may not proceed 3182
3912+in the manner described in subsections (b) and (c) of this section with 3183
3913+respect to property to be acquired for noncore businesses. 3184
3914+(b) The authority may, after ten days' written notice to such owner, 3185
3915+petition the superior court for the county or judicial district in which 3186
3916+Bill No.
3917+
3918+
3919+
3920+LCO No. 6185 104 of 137
3921+
3922+such property is located, or, if said court is not then sitting, any judge of 3187
3923+said court, and thereupon said court or such judge shall appoint a 3188
3924+committee of three disinterested persons, who shall be sworn before 3189
3925+commencing their duties. Such committee, after giving reasonable 3190
3926+notice to the parties, shall view the property in question, hear the 3191
3927+evidence, ascertain the value, assess just damages to the owner or 3192
3928+parties interested in the property and report its doings to said court or 3193
3929+such judge. Within fourteen days after such report is made to said court 3194
3930+or such judge, any party may move for the acceptance thereof. Said court 3195
3931+or such judge may accept such report or may reject it for irregular or 3196
3932+improper conduct by the committee in the performance of its duties. If 3197
3933+the report is rejected, the court or judge shall appoint another 3198
3934+committee, which shall proceed in the same manner as did the first 3199
3935+committee. If the report is accepted, such acceptance shall have the effect 3200
3936+of a judgment in favor of the owner of the property against said 3201
3937+authority for the amount of such assessment, and, except as otherwise 3202
3938+provided by law, execution may issue therefor. Such property shall not 3203
3939+be used by such authority until the amount of such assessment has been 3204
3940+paid to the party to whom it is due or deposited for his use with the state 3205
3941+treasurer and, upon such payment or deposit, such property shall 3206
3942+become the property of the authority; provided, if at any stage of 3207
3943+condemnation proceedings brought hereunder, it appears to the court 3208
3944+or judge before whom such proceedings are pending that the public 3209
3945+interest will be prejudiced by delay, said court or such judge may direct 3210
3946+that the authority be permitted to enter immediately upon the property 3211
3947+to be taken and devote it temporarily to the public use specified in such 3212
3948+petition upon the deposit with said court of a sum to be fixed by said 3213
3949+court or such judge, upon notice to the parties of not less than ten days, 3214
3950+and such sum when so fixed and paid shall be applied so far as it may 3215
3951+be necessary for the purpose of the payment of any award of damages 3216
3952+which may be made, with interest thereon from the date of the order of 3217
3953+said court or judge, and the remainder if any returned to the authority. 3218
3954+If such petition is dismissed or no award of damages is made, said court 3219
3955+or such judge shall direct that the money so deposited, so far as it may 3220
3956+Bill No.
3957+
3958+
3959+
3960+LCO No. 6185 105 of 137
3961+
3962+be necessary, shall be applied to the payment of any damages that the 3221
3963+owner of such property or other parties in interest may have sustained 3222
3964+by such entry upon and use of such property, and of the costs and 3223
3965+expenses of such proceedings, such damages to be ascertained by said 3224
3966+court or such judge or a committee to be appointed for that purpose, and 3225
3967+if the sum so deposited is insufficient to pay such damages and all costs 3226
3968+and expenses so awarded, judgment shall be entered against the 3227
3969+authority for the deficiency, to be enforced and collected in the same 3228
3970+manner as a judgment by the superior court; and the possession of such 3229
3971+property shall be restored to the owner or owners thereof. The expenses 3230
3972+or costs of any such proceedings shall be taxed by said court or such 3231
3973+judge and paid by the authority. 3232
3974+(c) The authority, in its name, may proceed in the manner specified 3233
3975+for redevelopment agencies in accordance with sections 8-128 to 8-133, 3234
3976+inclusive, of the general statutes. 3235
3977+Sec. 47. With the approval of the Aquarion representative policy 3236
3978+board, the authority shall establish just and equitable rates or charges 3237
3979+for the use of the water supply system and the wastewater system 3238
3980+authorized herein, to be paid by any customer, including rates of 3239
3981+interest on unpaid rates or charges, and may change such rates, charges 3240
3982+or rates of interest from time to time. Such water supply system rates or 3241
3983+charges shall be established so as to provide funds sufficient in each 3242
3984+year, with other water supply related revenues, if any, (a) to pay the cost 3243
3985+of maintaining, repairing and operating the water supply system and 3244
3986+each and every portion thereof, to the extent that adequate provision for 3245
3987+the payment of such cost has not otherwise been made, (b) to pay the 3246
3988+principal of and the interest on outstanding water supply bonds of the 3247
3989+authority as the same shall become due and payable, (c) to meet any 3248
3990+requirements of any resolution authorizing, or trust agreement 3249
3991+securing, such bonds of the authority, (d) to make payments in lieu of 3250
3992+taxes as provided in section 54 of this act, as the same become due and 3251
3993+payable, upon the water supply system properties of the authority or of 3252
3994+a subsidiary corporation to the municipalities in which such properties 3253
3995+Bill No.
3996+
3997+
3998+
3999+LCO No. 6185 106 of 137
4000+
4001+are situated, (e) to provide for the maintenance, conservation and 3254
4002+appropriate recreational use of the land of the authority, and (f) to pay 3255
4003+all other reasonable and necessary expenses of the authority and of the 3256
4004+Aquarion representative policy board to the extent that such expenses 3257
4005+are allocable to the water supply system activities of the authority and 3258
4006+the Aquarion representative policy board. Such wastewater system 3259
4007+rates or charges shall be established so as to provide funds sufficient in 3260
4008+each year with other wastewater related revenues, if any, (1) to pay the 3261
4009+cost of maintaining, repairing and operating the wastewater system and 3262
4010+each and every portion thereof, to the extent that adequate provision for 3263
4011+the payment of such cost has not otherwise been made, (2) to pay the 3264
4012+principal of and the interest on outstanding wastewater bonds of the 3265
4013+authority as the same shall become due and payable, (3) to meet any 3266
4014+requirements of any resolution authorizing, or trust agreement 3267
4015+securing, such bonds of the authority, and (4) to pay all other reasonable 3268
4016+and necessary expenses of the authority and of the Aquarion 3269
4017+representative policy board to the extent that such expenses are 3270
4018+allocable to the wastewater activities of the authority and of the 3271
4019+Aquarion representative policy board. No such rate or charge shall be 3272
4020+established until it has been approved by the Aquarion representative 3273
4021+policy board, after said board has held a public hearing at which all the 3274
4022+users of the waterworks system or the wastewater system, the owners 3275
4023+of property served or to be served and others interested have had an 3276
4024+opportunity to be heard concerning such proposed rate or charge. The 3277
4025+Aquarion representative policy board shall approve such rates and 3278
4026+charges unless it finds that such rates and charges will provide funds in 3279
4027+excess of the amounts required for the purposes described previously in 3280
4028+this section, or unless it finds that such rates and charges will provide 3281
4029+funds insufficient for such purposes. The rates or charge, so established 3282
4030+for any class of users or property served, shall be extended to cover any 3283
4031+additional premises thereafter served which are within the same class, 3284
4032+without the necessity of a hearing thereon. Any change in such rates or 3285
4033+charges shall be made in the same manner in which they were 3286
4034+established. The rates or charges levied upon any customer of any water 3287
4035+Bill No.
4036+
4037+
4038+
4039+LCO No. 6185 107 of 137
4040+
4041+supply system shall not be required to be equalized with the authority's 3288
4042+existing rates, but may be set on a separate basis, provided such rates 3289
4043+are just, equitable and nondiscriminatory. Such rates or charges, if not 3290
4044+paid when due, shall constitute a lien upon the premises served and a 3291
4045+charge against the owners thereof, which lien and charge shall bear 3292
4046+interest not to exceed the maximum rate as would be allowed for unpaid 3293
4047+taxes. Such lien shall take precedence over all other liens or 3294
4048+encumbrances except taxes and may be foreclosed against the lot or 3295
4049+building served in the same manner as a lien for taxes, provided all such 3296
4050+liens shall continue until such time as they shall be discharged or 3297
4051+foreclosed by the authority without the necessity of filing certificates of 3298
4052+continuation, but in no event for longer than fifteen years. The amount 3299
4053+of any such rate or charge that remains due and unpaid after twenty-3300
4054+eight days, which number of days may be changed with the approval of 3301
4055+the majority of the weighted votes of the membership of the Aquarion 3302
4056+representative policy board, excluding vacancies, with interest thereon 3303
4057+at a rate approved by the Aquarion representative policy board but not 3304
4058+to exceed the maximum interest rate allowed pursuant to the 3305
4059+Connecticut general statutes for unpaid property taxes and with 3306
4060+reasonable attorneys' fees, be recovered by the authority in a civil action 3307
4061+in the name of the authority against such owners. Any municipality 3308
4062+shall be subject to the same rate or charges under the same conditions as 3309
4063+other users of the water supply system or the wastewater system. The 3310
4064+assets or the revenues of the water system shall not be available to 3311
4065+satisfy debts, judgments or other obligations arising out of the operation 3312
4066+of the wastewater system and the assets or the revenues of the 3313
4067+wastewater system shall not be available to satisfy debts, judgments or 3314
4068+other obligations arising out of the operation of the water system. 3315
4069+Sec. 48. The office of consumer affairs established by the 3316
4070+representative policy board of the South Central Connecticut Regional 3317
4071+Water District shall act as the advocate for consumer interests in all 3318
4072+matters which may affect consumers of the Aquarion Regional Water 3319
4073+District, including without limitation matters of rates, water quality and 3320
4074+Bill No.
4075+
4076+
4077+
4078+LCO No. 6185 108 of 137
4079+
4080+supply and wastewater service quality and shall have those powers and 3321
4081+authorizations set forth in section 15 of special act 77-98, as amended by 3322
4082+section 8 of special act 99-12 and section 11 of special act 02-85, as 3323
4083+amended by this act. The costs of such office of consumer affairs, unless 3324
4084+otherwise provided by the state, shall be jointly shared paid by the 3325
4085+South Central Connecticut Regional Water Authority and the Aquarion 3326
4086+Water Authority. 3327
4087+Sec. 49. All contracts in excess of fifty thousand dollars for any 3328
4088+supplies, materials, equipment, construction work or other contractual 3329
4089+services shall be in writing and shall be awarded upon either sealed bids 3330
4090+or proposals or electronic submission of bids or proposals, and in each 3331
4091+case made in compliance with a public notice duly advertised by 3332
4092+publication in one or more newspapers of general circulation or, if there 3333
4093+are no such newspapers, in appropriate electronic media, including, 3334
4094+without limitation, the authority's Internet web site, as are likely to reach 3335
4095+a broad segment of potential vendors, at least ten days before the time 3336
4096+fixed for review of said bids or proposals, except for (1) contracts for 3337
4097+professional services, (2) when the supplies, materials, equipment or 3338
4098+work can only be furnished by a single party, (3) when the authority 3339
4099+determines by a two-thirds vote of the entire authority that the award 3340
4100+of such contract by negotiation without public bidding will be in the best 3341
4101+interest of the authority, or (4) when the procurement is made as a result 3342
4102+of participation in a procurement group, alliance or consortium made 3343
4103+up of other state or federal government entities in which the state of 3344
4104+Connecticut is authorized to participate. The authority may in its sole 3345
4105+discretion reject all such bids or proposals or any bids received from a 3346
4106+person, firm or corporation the authority finds to be unqualified to 3347
4107+perform the contract, and shall award such contract to the lowest 3348
4108+responsible bidder qualified to perform the contract. 3349
4109+Sec. 50. (a) If any member or employee of the Aquarion representative 3350
4110+policy board or of the authority or any employee of a subsidiary 3351
4111+corporation or an affiliated business entity is financially interested in or 3352
4112+has any personal beneficial interest, directly or indirectly, in any 3353
4113+Bill No.
4114+
4115+
4116+
4117+LCO No. 6185 109 of 137
4118+
4119+proposed contract or proposed purchase order for any supplies, 3354
4120+materials, equipment or contractual services to be furnished to or used 3355
4121+by the Aquarion representative policy board, the authority, a subsidiary 3356
4122+corporation or an affiliated business entity such member or employee 3357
4123+shall immediately so inform the Aquarion representative policy board, 3358
4124+the authority, the subsidiary corporation or the affiliated business entity 3359
4125+whichever he or she is a member or employee of, and shall take no part 3360
4126+in the deliberations or vote concerning such contract or purchase order. 3361
4127+The Aquarion representative policy board, as to its members and 3362
4128+employees, and the subsidiary corporation or affiliated business entity 3363
4129+as to its employees, the authority, as to its members and employees, may 3364
4130+terminate the membership or employment of any person who violates 3365
4131+this subsection. 3366
4132+(b) No member or employee of the Aquarion representative policy 3367
4133+board, the authority, a subsidiary corporation or an affiliated business 3368
4134+entity shall accept or receive, directly or indirectly, from any person, 3369
4135+firm or corporation to which any contract or purchase order may be 3370
4136+awarded, by rebate, gift or otherwise, any promise, obligation or 3371
4137+contract for future reward or compensation or any money or anything 3372
4138+of value in excess of ten dollars, provided the aggregate value of all such 3373
4139+things provided by a donor to a recipient in any calendar year shall not 3374
4140+exceed fifty dollars and, excluding any food or beverage or food and 3375
4141+beverage, costing less than fifty dollars in the aggregate per recipient in 3376
4142+a calendar year, and consumed on an occasion or occasions at which the 3377
4143+person paying, directly or indirectly, for the food or beverage, or his 3378
4144+representative, is in attendance. Any person who violates any provision 3379
4145+of this subsection shall be fined not more than five hundred dollars or 3380
4146+imprisoned for not more than six months or both. 3381
4147+Sec. 51. (a) Notwithstanding any provision of sections 34 to 65, 3382
4148+inclusive, of this act, the authority shall not sell or otherwise transfer any 3383
4149+unimproved real property or any interest or right therein, except for 3384
4150+access or utility purposes, or develop such property for any use not 3385
4151+directly related to a water supply function, other than for public 3386
4152+Bill No.
4153+
4154+
4155+
4156+LCO No. 6185 110 of 137
4157+
4158+recreational use not prohibited by section 25-43c of the general statutes, 3387
4159+until the land use standards and disposition policies required by 3388
4160+subsection (b) of this section have been approved by the Aquarion 3389
4161+representative policy board, unless the chief executive officer of the 3390
4162+town or city in which such property is located has approved such sale, 3391
4163+transfer or development in writing. The provisions of this section shall 3392
4164+not apply to any portion of a wastewater system. 3393
4165+(b) Within two years from the date it acquires all or part of a water 3394
4166+supply system, the authority shall develop and submit to the Aquarion 3395
4167+representative policy board for approval (1) standards for determining 3396
4168+the suitability of its real property for categories of land use, including 3397
4169+which, if any, of its real property may be surplus with regard to the 3398
4170+purity and adequacy of both present and future water supply, which, if 3399
4171+any, may be desirable for specified modes of recreation or open space 3400
4172+use and which may be suitable for other uses, giving due consideration 3401
4173+to the state plan of conservation and development, to classification and 3402
4174+performance standards recommended in the final report of the council 3403
4175+on water company lands pursuant to subsection (c) of section 16-49c of 3404
4176+the general statutes and to such other plans and standards as may be 3405
4177+appropriate, and (2) policies regarding the disposition of its real 3406
4178+property including identification of dispositions which are unlikely to 3407
4179+have any significant effect on the environment. Prior to approving any 3408
4180+standards or policies specified in this subsection, the Aquarion 3409
4181+representative policy board shall hold one or more public hearings to 3410
4182+consider the proposed standards and policies. The proposed standards 3411
4183+and policies shall be available for public inspection in the offices of the 3412
4184+authority from the date notice of such hearing is published. The 3413
4185+authority may amend such standards and policies from time to time 3414
4186+with the approval of the Aquarion representative policy board, which 3415
4187+shall hold public hearings if it deems such amendments substantial. 3416
4188+(c) After approval of land use standards and disposition policies in 3417
4189+the manner provided in subsection (b) of this section, the authority shall 3418
4190+not: (1) Sell or otherwise transfer any real property or any interest or 3419
4191+Bill No.
4192+
4193+
4194+
4195+LCO No. 6185 111 of 137
4196+
4197+right therein, except (A) for access, (B) for utility purposes, or (C) to 3420
4198+dedicate land as open space by conveying a conservation restriction, as 3421
4199+defined in section 47-42a of the general statutes, to the federal, state or a 3422
4200+municipal government or a nonprofit land-holding organization, as 3423
4201+defined in section 47-6b of the general statutes, or (2) develop such 3424
4202+property for any use not directly related to a water supply function, 3425
4203+other than for public recreational use not prohibited by section 25-43c of 3426
4204+the general statutes, without the approval of a majority of the weighted 3427
4205+votes of all of the members of the Aquarion representative policy board, 3428
4206+excluding vacancies, in the case of a parcel of twenty acres or less, and 3429
4207+by three-fourths of the weighted votes of all of the members of said 3430
4208+board, excluding vacancies, in the case of a parcel in excess of twenty 3431
4209+acres. The Aquarion representative policy board shall not approve such 3432
4210+sale or other transfer or development unless it determines, following a 3433
4211+public hearing, that the proposed action (A) conforms to the established 3434
4212+standards and policies of the authority, (B) is not likely to affect the 3435
4213+environment adversely, particularly with respect to the purity and 3436
4214+adequacy of both present and future water supply, and (C) is in the 3437
4215+public interest, giving due consideration, among other factors, to the 3438
4216+financial impact of the proposed action on the customers of the 3439
4217+authority and on the municipality in which the real property is located. 3440
4218+(d) Each request by the authority for approval pursuant to subsection 3441
4219+(c) of this section shall be accompanied by an evaluation of the potential 3442
4220+impact of the proposed action for which approval is requested, which 3443
4221+shall include: (1) A description of the real property and its environment, 3444
4222+including its existing watershed function and the costs to the authority 3445
4223+of maintaining such property in its current use, (2) a statement that the 3446
4224+proposed action conforms to the land classification standards and 3447
4225+disposition policies of the authority, (3) a detailed statement of the 3448
4226+environmental impact of the proposed action and, if appropriate, of any 3449
4227+alternatives to the proposed action, considering (A) direct and indirect 3450
4228+effects upon the purity and adequacy of both present and future water 3451
4229+supply, (B) the relationship of the proposed action to existing land use 3452
4230+Bill No.
4231+
4232+
4233+
4234+LCO No. 6185 112 of 137
4235+
4236+plans, including municipal and regional land use plans and the state 3453
4237+plan of conservation and development, (C) any adverse environmental 3454
4238+effects which cannot be avoided if the proposed action is implemented, 3455
4239+(D) any irreversible and irretrievable commitments of resources which 3456
4240+would be involved should the proposed action be implemented, and (E) 3457
4241+any mitigation measures proposed to minimize adverse environmental 3458
4242+impacts; except that for a sale or transfer identified in accordance with 3459
4243+subsection (b) of this section as being unlikely to have any significant 3460
4244+effect on the environment, the authority may submit a preliminary 3461
4245+assessment of the impact likely to occur in lieu of such detailed 3462
4246+statement of environmental impact, and the Aquarion representative 3463
4247+policy board may, on the basis of such preliminary assessment, waive 3464
4248+or modify the requirements for such detailed statement, and (4) a 3465
4249+summary of the final evaluation and recommendation of the authority. 3466
4250+(e) The Aquarion representative policy board shall submit the 3467
4251+evaluation required by subsection (d) of this section for comment and 3468
4252+review, at least sixty days in advance of the public hearing, to the 3469
4253+department of health, the department of planning and energy policy, 3470
4254+the regional planning agency for the region, the chief executive officer 3471
4255+of the city or town in which the real property is situated and other 3472
4256+appropriate agencies, and shall make such evaluation available to the 3473
4257+public for inspection. The decision of the Aquarion representative policy 3474
4258+board approving or disapproving the proposed action shall be 3475
4259+published in a newspaper or newspapers having a general circulation 3476
4260+within the district and copies of such decision shall be filed with the 3477
4261+clerk of each town and city in the district. 3478
4262+(f) Whenever the authority intends to sell or otherwise transfer any 3479
4263+unimproved real property or any interest or right therein after approval 3480
4264+by the Aquarion representative policy board, the authority shall first 3481
4265+notify in writing, by certified mail, return receipt requested, the 3482
4266+Commissioner of Energy and Environmental Protection and the 3483
4267+legislative body of the city or town in which such land is situated, of 3484
4268+such intention to sell or otherwise transfer such property and the terms 3485
4269+Bill No.
4270+
4271+
4272+
4273+LCO No. 6185 113 of 137
4274+
4275+of such sale or other transfer, and no agreement to sell or otherwise 3486
4276+transfer such property may be entered into by the authority except as 3487
4277+provided in this subsection. (1) Within ninety days after such notice has 3488
4278+been given, the legislative body of the city or town or the Commissioner 3489
4279+of Energy and Environmental Protection may give written notice to the 3490
4280+authority by certified mail, return receipt requested, of the desire of the 3491
4281+city, town or state to acquire such property and each shall have the right 3492
4282+to acquire the interest in the property which the authority has declared 3493
4283+its intent to sell or otherwise transfer, provided the state's right to 3494
4284+acquire the property shall be secondary to that of the city or town. (2) If 3495
4285+the legislative body of the city or town or the Commissioner of Energy 3496
4286+and Environmental Protection fails to give notice as provided in 3497
4287+subdivision (1) of this subsection or gives notice to the authority by 3498
4288+certified mail, return receipt requested, that the city, town or state does 3499
4289+not desire to acquire such property, the city or town or the state shall 3500
4290+have waived its right to acquire such property in accordance with the 3501
4291+terms of this subsection. (3) Within eighteen months after notice has 3502
4292+been given as provided in subdivision (1) of this subsection by the city 3503
4293+or town or the state of its desire to acquire such property, the authority 3504
4294+shall sell the property to the city or town or the state, as the case may be, 3505
4295+or, if the parties cannot agree upon the amount to be paid therefor, the 3506
4296+city or town or the state may proceed to acquire the property in the 3507
4297+manner specified for redevelopment agencies in accordance with 3508
4298+sections 8-128 to 8-133, inclusive, of the general statutes, provided 3509
4299+property subject to the provisions of subsections (b) and (c) of section 3510
4300+25-32 of the general statutes shall not be sold without the approval of 3511
4301+the department of health. (4) If the city or town or the state fails to 3512
4302+acquire the property or to proceed as provided in said sections within 3513
4303+eighteen months after notice has been given by the city or town or the 3514
4304+state of its desire to acquire the property, such city or town or the state 3515
4305+shall have waived its rights to acquire such property in accordance with 3516
4306+the terms of this subsection. (5) Notwithstanding the provisions of 3517
4307+section 54 of this section, the authority shall not be obligated to make 3518
4308+payments in lieu of taxes on such property for the period from the date 3519
4309+Bill No.
4310+
4311+
4312+
4313+LCO No. 6185 114 of 137
4314+
4315+the city or town gives notice of its desire to acquire such property. (6) 3520
4316+Notwithstanding the provisions of subdivision (4) of this subsection, if 3521
4317+the authority thereafter proposes to sell or otherwise transfer such 3522
4318+property to any person subject to less restrictions on use or for a price 3523
4319+less than that offered by the authority to the city or town and the state, 3524
4320+the authority shall first notify the city or town and the Commissioner of 3525
4321+Energy and Environmental Protection of such proposal in the manner 3526
4322+provided in subdivision (1) of this subsection, and such city or town and 3527
4323+the state shall again have the option to acquire such property and may 3528
4324+proceed to acquire such property in the same manner and within the 3529
4325+same time limitations as are provided in subdivisions (1) to (4), 3530
4326+inclusive, of this subsection. (7) The provisions of this subsection shall 3531
4327+not apply to transfers of real property from the authority to any public 3532
4328+service company. (8) A copy of each notice required by this subsection 3533
4329+shall be sent by the party giving such notice to the clerk of the town or 3534
4330+city in which the real property is situated and such clerk shall make all 3535
4331+such notices part of the appropriate land records. 3536
4332+(g) Nothing contained in this section shall be construed to deprive the 3537
4333+state Department of Public Health of its jurisdiction under section 25-32 3538
4334+of the general statutes. The authority shall notify the state Commissioner 3539
4335+of Public Health of any proposed sale or other transfer of land, or change 3540
4336+or use, as required by said section. 3541
4337+(h) The authority shall use the proceeds of any sale or transfer under 3542
4338+this section solely for capital improvements to its remaining properties, 3543
4339+acquisition of real property or any interest or right therein, retirement 3544
4340+of debt or any combination of such purposes. 3545
4341+(i) The provisions of this section shall apply to any unimproved real 3546
4342+property or any interest or right therein related to the water supply 3547
4343+system whether owned or possessed by the authority or by any 3548
4344+subsidiary corporation. 3549
4345+Sec. 52. The authority shall not (1) acquire, by purchase, lease or 3550
4346+Bill No.
4347+
4348+
4349+
4350+LCO No. 6185 115 of 137
4351+
4352+otherwise any existing water supply system or parts thereof or any 3551
4353+wastewater system or parts thereof, (2) commence any project costing 3552
4354+more than three and one-half million dollars to repair, improve, 3553
4355+construct, reconstruct, enlarge and extend any of its properties or 3554
4356+systems, or (3) acquire or make a subsequent investment in any noncore 3555
4357+business in an amount more than one and one-half million dollars 3556
4358+without the approval, following a public hearing, of a majority of the 3557
4359+total weighted votes of the membership of the Aquarion representative 3558
4360+policy board, excluding vacancies. The dollar amounts specified in 3559
4361+subdivisions (2) and (3) of this section shall be adjusted every three years 3560
4362+by the Consumer Price Index factor, as described in section 37 of this act, 3561
4363+with the approval of a majority of the weighted votes of the membership 3562
4364+of the Aquarion representative policy board, excluding vacancies. 3563
4365+Sec. 53. (a) The authority shall have an annual audit of its accounts, 3564
4366+books and records by a certified public accountant selected by the 3565
4367+Aquarion representative policy board. A copy of the audit shall be filed 3566
4368+in the office of the town clerk in each town within the district and shall 3567
4369+be available for public inspection during the ordinary business hours of 3568
4370+the authority at the principal office of the authority. A concise financial 3569
4371+statement shall be posted annually on the Aquarion Water Authority's 3570
4372+web site. 3571
4373+(b) The attorney general may examine the books, accounts and 3572
4374+records of the authority. 3573
4375+Sec. 54. (a) Neither the authority nor a subsidiary corporation or an 3574
4376+"affiliated business entity" shall be required to pay taxes or assessments 3575
4377+upon any of the properties acquired by it or under its jurisdiction, 3576
4378+control or supervision, provided in lieu of such taxes or assessments the 3577
4379+authority shall make annual payments to each municipality in which it 3578
4380+or a subsidiary corporation owns property related to the water supply 3579
4381+system equal to the taxes which would otherwise be due for the 3580
4382+property of the authority or such subsidiary corporation in such 3581
4383+municipality, excluding any improvements made to or constructed on 3582
4384+Bill No.
4385+
4386+
4387+
4388+LCO No. 6185 116 of 137
4389+
4390+any such real property by the authority or such subsidiary corporation, 3583
4391+provided land owned by the authority or a subsidiary corporation 3584
4392+related to the water supply system shall be assessed in accordance with 3585
4393+section 12-63 of the general statutes, and provided further payments for 3586
4394+property acquired by the authority or a subsidiary corporation during 3587
4395+any tax year shall be adjusted for such fractional year in accordance with 3588
4396+the customary practice in such municipality for adjusting taxes between 3589
4397+the buyer and seller of real property. In addition, the authority or a 3590
4398+subsidiary corporation shall reimburse each such municipality for its 3591
4399+expenses in providing municipal services to any improvements made to 3592
4400+or constructed on any real property by the authority or such subsidiary 3593
4401+corporation within such municipality. As used in this section, 3594
4402+"improvements" does not include water pipes or improvements to water 3595
4403+pipes. 3596
4404+(b) The authority may contest the assessed valuation of any 3597
4405+properties owned by the authority or a subsidiary corporation with 3598
4406+respect to which any payment in lieu of taxes is determined in the same 3599
4407+manner as any owner of real property in such municipality. Payments 3600
4408+in lieu of taxes payable to any municipality shall be paid by the authority 3601
4409+to the municipality upon the date and in the manner provided for the 3602
4410+payment of real property taxes of the municipality. 3603
4411+(c) In the event the authority in any year does not have sufficient 3604
4412+funds to make such payments in lieu of taxes, or any portion of them, as 3605
4413+the same become due and payable, the authority shall adjust its rates 3606
4414+and charges and the Aquarion representative policy board shall 3607
4415+approve such adjustment of rates and charges, after a public hearing 3608
4416+thereon as provided in section 14 of special act 77-98, as amended by 3609
4417+section 6 of special act 78-24, so as to provide funds within one year after 3610
4418+the date on which such payment became due and payable to make such 3611
4419+payment. Any municipality or any holder of bonds or notes of the 3612
4420+authority aggrieved by the failure of the authority to make any payment 3613
4421+in lieu of taxes or portion thereof as the same becomes due and payable 3614
4422+may apply to the superior court for the county in which such 3615
4423+Bill No.
4424+
4425+
4426+
4427+LCO No. 6185 117 of 137
4428+
4429+municipality is situated for an order directing the authority to 3616
4430+appropriately increase its rates and charges. 3617
4431+(d) Neither the authority nor a subsidiary corporation shall be 3618
4432+required to pay taxes imposed upon or measured by the receipts or 3619
4433+earnings derived by the authority or such subsidiary corporation 3620
4434+through the ownership or operation of a water supply system, or 3621
4435+imposed as a result of the income, powers, activities or items reflected 3622
4436+on the balance sheet of the authority or such subsidiary corporation. 3623
4437+Sec. 55. (a) The authority, subject to the approval of the Aquarion 3624
4438+representative policy board, shall have the power and is authorized 3625
4439+from time to time to issue its negotiable bonds for any of its corporate 3626
4440+purposes, including incidental expenses in connection therewith, and to 3627
4441+secure the payment of the same by a lien or pledge covering all or part 3628
4442+of its contracts, earnings or revenues. The authority shall have power 3629
4443+from time to time, without the approval of the Aquarion representative 3630
4444+policy board, to refund any bonds by the issuance of new bonds within 3631
4445+the terms of any refunding provisions of its bonds, whether the bonds 3632
4446+to be refunded have or have not matured, and may issue bonds partly 3633
4447+to refund bonds then outstanding and partly for any of its public 3634
4448+purposes. Except as may be otherwise expressly provided by the 3635
4449+authority every issue of bonds by the authority shall be preferred 3636
4450+obligations, taking priority over all other claims against the authority, 3637
4451+including payments in lieu of taxes to any municipality, and payable out 3638
4452+of any moneys, earnings or revenues of the authority, subject only to 3639
4453+any agreements with the holders of particular bonds pledging any 3640
4454+particular moneys, earnings or revenues. Notwithstanding the fact that 3641
4455+the bonds may be payable from a special fund, if they are otherwise of 3642
4456+such form and character as to be negotiable instruments under the terms 3643
4457+of the uniform commercial code, the bonds shall be negotiable 3644
4458+instruments within the meaning of and for all the purposes of the 3645
4459+uniform commercial code, subject only to the provisions of the bonds 3646
4460+for registration. 3647
4461+Bill No.
4462+
4463+
4464+
4465+LCO No. 6185 118 of 137
4466+
4467+(b) The bonds shall be authorized by resolution of the authority and 3648
4468+shall bear such date or dates, mature at such time or times, bear interest 3649
4469+at such rates per annum, not exceeding statutory limitations, be payable 3650
4470+at such times, be in such denomination, be in such form, either coupon 3651
4471+or registered, carry such registration privileges, be executed in such 3652
4472+manner, be payable in lawful money of the United States of America, at 3653
4473+such place or places, and be subject to such terms of redemption as such 3654
4474+resolution or resolutions may provide. All bonds of the authority shall 3655
4475+be sold through a negotiated sale or a public sale to the bidder who shall 3656
4476+offer the lowest true interest cost to the authority, to be determined by 3657
4477+the authority. 3658
4478+(c) Any resolution or resolutions authorizing any bonds or any issue 3659
4479+of bonds may contain provisions which shall be a part of the contract 3660
4480+with the holders of the bonds thereby authorized as to (1) pledging all 3661
4481+or any part of the moneys, earnings, income and revenues derived from 3662
4482+all or any part of the properties of the authority to secure the payment 3663
4483+of the bonds or of any issue of the bonds subject to such agreement with 3664
4484+the bondholders as may then exist, (2) the rates, rentals, fees and other 3665
4485+charges to be fixed and collected and the amounts to be raised in each 3666
4486+year thereby, and the use and disposition of the earnings and other 3667
4487+revenues, (3) the setting aside of reserves and the creation of sinking 3668
4488+funds and the regulation and disposition thereof, (4) limitations on the 3669
4489+rights of the authority to restrict and regulate the use of the properties 3670
4490+in connection with which such bonds are issued, (5) limitations on the 3671
4491+purposes to which, and the manner in which, the proceeds of sale of any 3672
4492+issue of bonds may be applied, (6) limitations on the issuance of 3673
4493+additional bonds, the terms upon which additional bonds may be issued 3674
4494+and secured, and the refunding of outstanding or other bonds, (7) the 3675
4495+procedure, if any, by which the terms of any contract with bondholders 3676
4496+may be amended or abrogated, the amount of bonds the holders of 3677
4497+which must consent thereto and the manner in which such consent may 3678
4498+be given, (8) the creation of special funds into which any earnings or 3679
4499+revenues of the authority may be deposited, (9) the terms and provisions 3680
4500+Bill No.
4501+
4502+
4503+
4504+LCO No. 6185 119 of 137
4505+
4506+of any trust deed or indenture securing the bonds or under which bonds 3681
4507+may be issued, (10) definitions of the acts or omission to act which shall 3682
4508+constitute a default in the obligations and duties of the authority to the 3683
4509+bondholders and providing the rights and remedies of the bondholders 3684
4510+in the event of such default, including as a matter of right the 3685
4511+appointment of a receiver, provided such rights and remedies shall not 3686
4512+be inconsistent with the general laws of this state, (11) limitations on the 3687
4513+power of the authority to sell or otherwise dispose of its properties, (12) 3688
4514+any other matters, of like or different character, which in any way affect 3689
4515+the security or protection of the bonds, and (13) limitations on the 3690
4516+amount of moneys derived from the properties to be expended for 3691
4517+operating, administrative or other expenses of the authority. 3692
4518+(d) The authority may obtain from a commercial bank or insurance 3693
4519+company a letter of credit, line of credit or other liquidity facility or 3694
4520+credit facility for the purpose of providing funds for the payments in 3695
4521+respect of bonds, notes or other obligations required by the holder 3696
4522+thereof to be redeemed or repurchased prior to maturity or for 3697
4523+providing additional security for such bonds, notes or other obligations. 3698
4524+In connection therewith, the authority may enter into reimbursement 3699
4525+agreements, remarketing agreements, standby bond purchase 3700
4526+agreements and any other necessary or appropriate agreements. The 3701
4527+authority may pledge all or any part of the moneys, earnings, income 3702
4528+and revenues derived from all or any part of the properties of the 3703
4529+authority and any other property which may be pledged to bondholders 3704
4530+to secure its payment obligations under any agreement or contract 3705
4531+entered into pursuant to this section subject to such agreements with the 3706
4532+bondholders as may then exist. 3707
4533+(e) In connection with or incidental to the carrying of bonds or notes 3708
4534+or in connection with or incidental to the sale and issuance of bonds or 3709
4535+notes, the authority may enter into such contracts to place the obligation 3710
4536+of the authority, as represented by the bonds or notes, in whole or in 3711
4537+part, on such interest rate or cash flow basis as the authority may 3712
4538+determine, including without limitation, interest rate swap agreements, 3713
4539+Bill No.
4540+
4541+
4542+
4543+LCO No. 6185 120 of 137
4544+
4545+insurance agreements, forward payment conversion agreements, 3714
4546+contracts providing for payments based on levels of, or changes in, 3715
4547+interest rates or market indices, contracts to manage interest rate risk, 3716
4548+including, without limitation, interest rate floors or caps, options, puts, 3717
4549+calls and similar arrangements. Such contracts shall contain such 3718
4550+payment, security, default, remedy and other terms and conditions as 3719
4551+the authority may deem appropriate and shall be entered into with such 3720
4552+party or parties as the authority may select, after giving due 3721
4553+consideration, where applicable, for the creditworthiness of the 3722
4554+counterparty or counterparties, provided such parties or counterparties 3723
4555+shall be a financial institution whose unsecured long-term obligations 3724
4556+are rated within the top two rating categories of any nationally 3725
4557+recognized rating service. The authority may pledge all or any part of 3726
4558+the moneys, earnings, income and revenues derived from all or any part 3727
4559+of the properties of the authority and any other property which may be 3728
4560+pledged to bondholders to secure its payment obligations under any 3729
4561+agreement or contract entered into pursuant to this section subject to 3730
4562+such agreements with the bondholders as may then exist. 3731
4563+(f) It is the intention of the general assembly that any pledge of 3732
4564+earnings, revenues or other moneys made by the authority shall be valid 3733
4565+and binding from the time when the pledge is made; that the earnings, 3734
4566+revenues or other moneys so pledged and thereafter received by the 3735
4567+authority shall immediately be subject to the lien of such pledge without 3736
4568+any physical delivery thereof or further act, and that the lien of any such 3737
4569+pledge shall be valid and binding as against all parties having claims of 3738
4570+any kind in tort, contract or otherwise against the authority irrespective 3739
4571+of whether such parties have notice thereof. Neither the resolution nor 3740
4572+any other instrument by which a pledge is created need be recorded. 3741
4573+(g) Neither the members of the authority nor any person executing 3742
4574+the bonds shall be liable personally on the bonds or be subject to any 3743
4575+personal liability or accountability by reason of the issuance thereof. 3744
4576+(h) The authority shall have the power out of any funds available to 3745
4577+Bill No.
4578+
4579+
4580+
4581+LCO No. 6185 121 of 137
4582+
4583+purchase, as distinguished from the power of redemption above, and all 3746
4584+bonds so purchased shall be cancelled. 3747
4585+(i) In the discretion of the authority, the bonds may be secured by a 3748
4586+trust indenture by and between the authority and a corporate trustee, 3749
4587+which may be any trust company or bank having the powers of a trust 3750
4588+company. Such trust indenture may contain such provisions for 3751
4589+protecting and enforcing the rights and remedies of the bondholders as 3752
4590+may be reasonable and proper and not in violation of any law, including 3753
4591+covenants setting forth the duties of the authority in relation to the 3754
4592+construction, maintenance, operation, repair and insurance of the 3755
4593+properties and the custody, safeguarding and application of all moneys, 3756
4594+and may provide that the properties shall be constructed and paid for 3757
4595+under the supervision and approval of consulting engineers. The 3758
4596+authority may provide by such trust indenture or other depository for 3759
4597+the methods of disbursement thereof, with such safeguards and 3760
4598+restrictions as it may determine. All expenses incurred in carrying out 3761
4599+such trust indenture may be treated as part of the cost of maintenance, 3762
4600+operation and repair of the properties. If the bonds are secured by a trust 3763
4601+indenture, bondholders shall have no authority to appoint a separate 3764
4602+trustee to represent them. 3765
4603+(j) Notwithstanding any other provision of sections 34 to 65, 3766
4604+inclusive, of this act, any resolution or resolutions authorizing bonds or 3767
4605+notes of the authority shall contain a covenant by the authority that it 3768
4606+will at all times maintain rates, fees, rentals or other charges sufficient 3769
4607+to pay, and that any contracts entered into by the authority for the sale 3770
4608+and distribution of water or the collection of wastewater shall contain 3771
4609+rates, fees, rentals or other charges sufficient to pay, the cost of operation 3772
4610+and maintenance of the properties and the principal of and interest on 3773
4611+any obligation issued pursuant to such resolution or resolutions as the 3774
4612+same severally become due and payable, and to maintain any reserves 3775
4613+or other funds required by the terms of such resolution or resolutions. 3776
4614+(k) If any officer of the authority whose signature or a facsimile of 3777
4615+Bill No.
4616+
4617+
4618+
4619+LCO No. 6185 122 of 137
4620+
4621+whose signature appears on any bonds or coupons ceases to be such 3778
4622+officer before delivery of such bonds, such signature or such facsimile 3779
4623+shall nevertheless be valid and sufficient for all purposes as if they had 3780
4624+remained in office until such delivery. 3781
4625+Sec. 56. The authority shall have the power and is authorized to issue 3782
4626+negotiable notes and may renew the same from time to time, but the 3783
4627+maximum maturity of any such note, including renewals thereof, shall 3784
4628+not exceed eight years from date of issue of such original note. Such 3785
4629+notes shall be paid from any moneys of the authority available therefor 3786
4630+and not otherwise pledged or from the proceeds of the sale of the bonds 3787
4631+of the authority in anticipation of which they were issued. The notes 3788
4632+shall be issued and may be secured in the same manner as the bonds 3789
4633+and such notes and the resolution or resolutions authorizing such notes 3790
4634+may contain any provisions, conditions or limitations which the bonds 3791
4635+or a bond resolution of the authority may contain. Such notes shall be as 3792
4636+fully negotiable as the bonds of the authority. 3793
4637+Sec. 57. The state of Connecticut does pledge to and agree with the 3794
4638+holders of the bonds or notes of the authority that the state will not limit 3795
4639+or alter the rights vested in the authority to acquire, construct, maintain, 3796
4640+operate, reconstruct and improve the properties, to establish and collect 3797
4641+the revenues, rates, rentals, fees and other charges referred to in sections 3798
4642+34 to 66, inclusive, of this act and to fulfill the terms of any agreements 3799
4643+made with the holders of the bonds or notes, or in any way impair the 3800
4644+rights and remedies of the bondholders or noteholders until the bonds 3801
4645+or notes together with interest thereon, interest on any unpaid 3802
4646+installments of interest and all costs and expenses in connection with 3803
4647+any action or proceeding by or on behalf of the bondholders or 3804
4648+noteholders are fully met and discharged. 3805
4649+Sec. 58. The bonds, notes or other obligations of the authority shall 3806
4650+not be a debt of the state of Connecticut or of any municipality, and 3807
4651+neither the state nor any municipality shall be liable therefor, nor shall 3808
4652+they be payable out of funds other than those of the authority. 3809
4653+Bill No.
4654+
4655+
4656+
4657+LCO No. 6185 123 of 137
4658+
4659+Sec. 59. The bonds and notes of the authority shall be securities in 3810
4660+which all public officers and bodies of this state and all municipalities, 3811
4661+all insurance companies and associations and other persons carrying on 3812
4662+an insurance business, all banks, bankers, trust companies, savings 3813
4663+banks, savings and loan associations, investment companies and other 3814
4664+persons carrying on a banking business and all other persons whatever, 3815
4665+except as hereinafter provided, who are now or may be authorized to 3816
4666+invest in bonds or other obligations of the state, may properly and 3817
4667+legally invest funds, including capital in their control or belonging to 3818
4668+them; provided, notwithstanding the provisions of any other general 3819
4669+statute or special act to the contrary, such bonds shall not be eligible for 3820
4670+the investment of funds, including capital, of trusts, estates or 3821
4671+guardianships under the control of individual administrators, 3822
4672+guardians, executors, trustees or other individual fiduciaries. The bonds 3823
4673+shall also be securities that may be deposited with and may be received 3824
4674+by all public officers and bodies of this state and all municipalities and 3825
4675+municipal subdivisions for any purpose for which the deposit of bonds 3826
4676+or other obligations of this state is now or may be authorized. 3827
4677+Sec. 60. The state of Connecticut covenants with the purchasers and 3828
4678+with all subsequent holders and transferees of bonds or notes issued by 3829
4679+the authority, in consideration of the acceptance of and payment for the 3830
4680+bonds or notes, that the bonds and notes of the authority, the income 3831
4681+therefrom and all moneys, funds and revenues pledged to pay or secure 3832
4682+the payment of such bonds or notes shall at all times be free from 3833
4683+taxation. 3834
4684+Sec. 61. Nothing in sections 34 to 65, inclusive, of this act shall be 3835
4685+construed to deprive the Commissioner of Energy and Environmental 3836
4686+Protection, the Commissioner of Public Health or any successor 3837
4687+commissioner or board of any jurisdiction which such commissioners or 3838
4688+boards may now or hereafter have. Neither the Public Utilities 3839
4689+Regulatory Authority nor any successor board or commissioner shall 3840
4690+have jurisdiction of any kind over the authority, a subsidiary 3841
4691+corporation, the Aquarion representative policy board or the rates fixed 3842
4692+Bill No.
4693+
4694+
4695+
4696+LCO No. 6185 124 of 137
4697+
4698+or charges collected by the authority. 3843
4699+Sec. 62. Insofar as the provisions of sections 34 to 65, inclusive, of this 3844
4700+act are inconsistent with the provisions of any other general statute, 3845
4701+special act or any municipal ordinance, the provisions of sections 34 to 3846
4702+65, inclusive, of this act shall be controlling; provided nothing contained 3847
4703+in sections 34 to 65, inclusive, of this act shall exempt the authority from 3848
4704+compliance with zoning regulations lawfully established by any 3849
4705+municipality, except that the plants, structures and other facilities of the 3850
4706+water supply system or the wastewater system owned or operated by 3851
4707+the authority shall be permitted uses in all zoning districts in every city, 3852
4708+town or borough within the district; and provided further that the 3853
4709+authority may not construct purification or filtration plants or 3854
4710+wastewater treatment plants in any zoning district in which such use is 3855
4711+not permitted under local zoning regulations without first obtaining 3856
4712+approval of the proposed location of such facility from the Aquarion 3857
4713+representative policy board following a public hearing. 3858
4714+Sec. 63. (a) The authority or any person who is aggrieved by a 3859
4715+decision of the Aquarion representative policy board with respect to the 3860
4716+establishment of rates or charges, the establishment of land use 3861
4717+standards and disposition policies, the sale or other transfer or change 3862
4718+of use of real property, the location of purification, filtration or 3863
4719+wastewater treatment plants, the commencement of any project costing 3864
4720+more than three and one-half million dollars, and as adjusted by the 3865
4721+Consumer Price Index factor, as described in section 37 of this act, and 3866
4722+subject to the approval of a majority of the weighted votes of the 3867
4723+membership of the Aquarion representative policy board, excluding 3868
4724+vacancies, to repair, improve, construct, reconstruct, enlarge or extend 3869
4725+any of the properties or systems of the authority or the acquisition by 3870
4726+purchase, lease or otherwise of any existing water supply system, 3871
4727+wastewater system or part thereof, other than the purchase of all or any 3872
4728+part of the properties and franchises of the Aquarion Water Company, 3873
4729+is entitled to review by the Superior Court as provided in this section. 3874
4730+For the purposes of this section, the holders of any bonds or notes of the 3875
4731+Bill No.
4732+
4733+
4734+
4735+LCO No. 6185 125 of 137
4736+
4737+authority and any trustee acting on behalf of such holders shall be 3876
4738+deemed aggrieved persons with respect to any decision of the Aquarion 3877
4739+representative policy board which violates any covenant or other 3878
4740+provision of the resolution or resolutions authorizing such bonds or 3879
4741+notes. 3880
4742+(b) Proceedings for review shall be instituted by filing a petition in 3881
4743+the superior court for the judicial district of Hartford within forty-five 3882
4744+days after publication of the decision of the Aquarion representative 3883
4745+policy board or, if a rehearing is requested, within forty-five days after 3884
4746+the decision thereon. Copies of the petition shall be served upon the 3885
4747+Aquarion representative policy board and published in a newspaper or 3886
4748+newspapers having a general circulation in each town or city 3887
4749+comprising the district. 3888
4750+(c) The filing of the petition shall not of itself stay enforcement of the 3889
4751+decision of the Aquarion representative policy board. The Aquarion 3890
4752+representative policy board may grant, or the reviewing court may 3891
4753+order, a stay upon appropriate terms, provided enforcement of a 3892
4754+decision respecting the establishment of rates or charges may be stayed 3893
4755+only after issuance of a judgment for the appellant by the reviewing 3894
4756+court. 3895
4757+(d) Within thirty days after service of the petition, or within such 3896
4758+further time as may be allowed by the court, the Aquarion 3897
4759+representative policy board shall transmit to the reviewing court the 3898
4760+original or a certified copy of the entire record of the proceeding under 3899
4761+review, which shall include the Aquarion representative policy board's 3900
4762+findings of fact and conclusions of law, separately stated. By stipulation 3901
4763+of all parties to the review proceedings, the record may be shortened. A 3902
4764+party unreasonably refusing to stipulate to limit the record may be taxed 3903
4765+by the court for the additional costs. The court may require or permit 3904
4766+subsequent corrections or additions to the record. 3905
4767+(e) If, before the date set for hearing, application is made to the court 3906
4768+Bill No.
4769+
4770+
4771+
4772+LCO No. 6185 126 of 137
4773+
4774+for leave to present additional evidence, and it is shown to the 3907
4775+satisfaction of the court that the additional evidence is material and that 3908
4776+there were good reasons for failure to present it in the proceeding before 3909
4777+the Aquarion representative policy board, the court may refer the case 3910
4778+back to the board with instructions to take such evidence as the court 3911
4779+directs. The Aquarion representative policy board may modify its 3912
4780+findings and decision by reason of the additional evidence and shall file 3913
4781+that evidence and any modifications, new findings, or decisions with the 3914
4782+reviewing court. 3915
4783+(f) The review shall be conducted by the court without a jury and 3916
4784+shall be confined to the record. In cases of alleged irregularities in 3917
4785+procedure before the Aquarion representative policy board, not shown 3918
4786+in the record, proof thereon may be taken in the court. The court, upon 3919
4787+request, shall hear oral argument and receive written briefs. 3920
4788+(g) The court shall not substitute its judgment for that of the Aquarion 3921
4789+representative policy board as to the weight of the evidence on 3922
4790+questions of fact. The court shall affirm the decision of the Aquarion 3923
4791+representative policy board unless the court finds that the substantial 3924
4792+rights of the appellant have been prejudiced because the Aquarion 3925
4793+representative policy board's findings, inferences, conclusions, or 3926
4794+decisions are: (1) In violation of constitutional provisions, the general 3927
4795+statutes or the provisions of this or another special act; (2) in excess of 3928
4796+the authority of the Aquarion representative policy board; (3) made 3929
4797+upon unlawful procedure; (4) affected by other error of law; (5) clearly 3930
4798+erroneous in view of the reliable probative, and substantial evidence on 3931
4799+the whole record; or (6) arbitrary or capricious or characterized by abuse 3932
4800+of discretion or clearly unwarranted exercise of discretion. If the court 3933
4801+finds such prejudice, it shall sustain the appeal and, if appropriate, may 3934
4802+render a judgment under subsection (h) of this section or remand the 3935
4803+case for further proceedings. 3936
4804+(h) If a particular Aquarion representative policy board action is 3937
4805+required by law, the court, on sustaining the appeal, may render a 3938
4806+Bill No.
4807+
4808+
4809+
4810+LCO No. 6185 127 of 137
4811+
4812+judgment that modifies the Aquarion representative policy board 3939
4813+decision, orders the Aquarion representative policy board action, or 3940
4814+orders the Aquarion representative policy board to take such action as 3941
4815+may be necessary to effect the particular action. 3942
4816+(i) In any case in which an aggrieved party claims that he cannot pay 3943
4817+the costs of an appeal under this section and will thereby be deprived of 3944
4818+a right to which he is entitled, he shall, within the time permitted for 3945
4819+filing the appeal, file with the clerk of the court to which the appeal is to 3946
4820+be taken an application for waiver of payment of such fees, costs and 3947
4821+necessary expenses, including the requirements of bond, if any. After 3948
4822+such hearing as the court determines is necessary, the court shall enter 3949
4823+its judgment on the application, which judgment shall contain a 3950
4824+statement of the facts the court has found, with its conclusions thereon. 3951
4825+The filing of the application for the waiver shall toll the time limits for 3952
4826+the filing of an appeal until such time as a judgment on such application 3953
4827+is entered. 3954
4828+(j) Neither the authority nor the Aquarion representative policy 3955
4829+board shall be construed to be an agency within the scope of chapter 54 3956
4830+of the general statutes. 3957
4831+Sec. 64. (a) Whenever the authority acquires the property and 3958
4832+franchises of any private water company or companies operating a 3959
4833+water supply system within its district, all employees of such company 3960
4834+or companies who are necessary for the operation of the authority, 3961
4835+except senior managerial officers, shall become employees of the 3962
4836+authority and shall be credited by the authority with all rights that have 3963
4837+accrued as of the date of such acquisition with respect to seniority, sick 3964
4838+leave, vacation, insurance and pension benefits in accordance with the 3965
4839+records, personnel policies or labor agreements of the acquired 3966
4840+company or companies. 3967
4841+(b) The authority shall assume and observe all accrued pension 3968
4842+obligations of such acquired company or companies, and members and 3969
4843+Bill No.
4844+
4845+
4846+
4847+LCO No. 6185 128 of 137
4848+
4849+beneficiaries of any pension, retirement or other employee benefit 3970
4850+system established by the acquired company or companies shall 3971
4851+continue to have such rights, privileges, benefits, obligations and status 3972
4852+with respect to such established systems as have accrued as of the date 3973
4853+of such acquisition. The authority may enter into agreements with 3974
4854+representatives of its employees relative to the inclusion of its 3975
4855+employees in any applicable state or municipal employee's retirement 3976
4856+plan or plans, and the authority shall constitute a municipality eligible 3977
4857+to participate in such retirement plans. The authority may enter into 3978
4858+agreements with representatives of its employees relative to the transfer 3979
4859+to or the establishment of pension trust funds under the joint control of 3980
4860+such authority and representatives of its employees, and shall have all 3981
4861+powers necessary to maintain and administer such trust funds jointly 3982
4862+with representatives of its employees. 3983
4863+(c) The authority shall assume and observe all labor contracts of such 3984
4864+company or companies in existence at the time of transfer and all 3985
4865+obligations incurred by such contracts regarding wages, salaries, hours, 3986
4866+sick leave and other leave, working conditions, grievance procedures, 3987
4867+collective bargaining and pension or retirement. 3988
4868+(d) The authority shall assume and observe personnel policies of such 3989
4869+company or companies in existence at the time of transfer relating to 3990
4870+personnel not covered by labor contracts, and all obligations incurred 3991
4871+through such personnel policies regarding wages, salaries, hours, sick 3992
4872+leave, vacation, pension and retirement, subject to such modifications 3993
4873+therein as the authority may subsequently adopt, provided such 3994
4874+modifications shall not affect any rights of such employees which have 3995
4875+vested prior to such modification. 3996
4876+(e) Nothing in this section shall prevent the authority from hiring any 3997
4877+senior managerial officers of such company on such terms as it may 3998
4878+determine or be construed to prohibit the authority from exercising the 3999
4879+normal prerogatives of management with respect to such matters as the 4000
4880+promotion, demotion, assignment, transfer or discharge of its 4001
4881+Bill No.
4882+
4883+
4884+
4885+LCO No. 6185 129 of 137
4886+
4887+employees, nor shall the authority be bound by any term of any 4002
4888+personnel policy entered into by such company or companies in 4003
4889+anticipation of acquisition by the authority. 4004
4890+Sec. 65. The relations between the authority and its employees with 4005
4891+respect to collective bargaining and the arbitration of labor disputes 4006
4892+shall be governed by sections 7-467 to 7-477, inclusive, of the general 4007
4893+statutes. 4008
4894+Sec. 42. (Effective from passage) Sections 34 to 41, inclusive, of this act 4009
4895+shall not be effective on and after December 31, 2027, unless the Public 4010
4896+Utilities Regulatory Authority approves the South Central Connecticut 4011
4897+Regional Water Authority or the Aquarion Water Authority to own and 4012
4898+operate the Aquarion Water Company, or one or more of its 4013
4899+subsidiaries, by said date. 4014
4900+Sec. 43. (NEW) (Effective October 1, 2024) (a) As used in this section: 4015
4901+(1) "Actions which may significantly affect the environment" has the 4016
4902+same meaning as provided in section 22a-1c of the general statutes, but 4017
4903+does not include any action that (A) is a major federal action under the 4018
4904+National Environmental Policy Act, 42 USC 4321 et seq., as amended 4019
4905+from time to time, (B) is an undertaking under the National Historic 4020
4906+Preservation Act, 54 USC 300101 et seq., as amended from time to time, 4021
4907+(C) affects an archaeological site, or (D) affects a sacred site; 4022
4908+(2) "Archaeological site" has the same meaning as provided in section 4023
4909+10-381 of the general statutes; 4024
4910+(3) "Historic structures and landmarks" has the same meaning as 4025
4911+provided in section 10-410 of the general statutes; 4026
4912+(4) "Sacred site" has the same meaning as provided in section 10-381 4027
4913+of the general statutes; 4028
4914+(5) "Sponsoring agency" has the same meaning as described in 4029
4915+sections 22a-1 to 22a-1h, inclusive, of the general statutes; 4030
4916+Bill No.
4917+
4918+
4919+
4920+LCO No. 6185 130 of 137
4921+
4922+(6) "State entity" means a state department, institution or agency 4031
4923+under sections 22a-1 to 22a-1h, inclusive, of the general statutes; 4032
4924+(7) "State funding recipient" means any person that receives funds 4033
4925+from the state to be used for an activity or a sequence of planned 4034
4926+activities that are subject to the process established by sections 22a-1 to 4035
4927+22a-1h, inclusive, of the general statutes; and 4036
4928+(8) "State Historic Preservation Officer" means the individual 4037
4929+appointed by the Governor pursuant to 54 USC 302301(1), as amended 4038
4930+from time to time, to administer the state historic preservation program 4039
4931+in accordance with 54 USC 302303, as amended from time to time. 4040
4932+(b) Whenever a sponsoring agency requests an initial determination 4041
4933+from the State Historic Preservation Officer, in accordance with sections 4042
4934+22a-1 to 22a-1h, inclusive, of the general statutes, as to whether an 4043
4935+individual activity or a sequence of planned activities proposed to be 4044
4936+undertaken by the sponsoring agency, a state entity or a state funding 4045
4937+recipient, as applicable, is within the category of actions which may 4046
4938+significantly affect the environment because such activity or sequence 4047
4939+of activities could have an impact on the state's historic structures and 4048
4940+landmarks, the officer shall: 4049
4941+(1) In making such initial determination, consider all information 4050
4942+provided by the sponsoring agency, state entity or state funding 4051
4943+recipient, as applicable; and 4052
4944+(2) Make such initial determination not later than thirty days after the 4053
4945+officer receives information the officer deems reasonably necessary to 4054
4946+make such initial determination. 4055
4947+(c) If the State Historic Preservation Officer makes an initial 4056
4948+determination that such individual activity or sequence of planned 4057
4949+activities will not have any effect on historic structures and landmarks, 4058
4950+or is not within the category of actions which may significantly affect 4059
4951+the environment because such activity or sequence of activities will not 4060
4952+Bill No.
4953+
4954+
4955+
4956+LCO No. 6185 131 of 137
4957+
4958+have an impact on historic structures and landmarks, the officer shall 4061
4959+provide such determination in writing to the sponsoring agency, state 4062
4960+entity or state funding recipient, as applicable. Such written 4063
4961+determination shall constitute a final determination by the officer for the 4064
4962+purposes of this section. 4065
4963+(d) (1) If the State Historic Preservation Officer makes an initial 4066
4964+determination that such individual activity or sequence of planned 4067
4965+activities will have an effect on historic structures and landmarks, or is 4068
4966+within the category of actions which may significantly affect the 4069
4967+environment because such activity or sequence of activities will have an 4070
4968+impact on historic structures and landmarks, the officer shall, in 4071
4969+collaboration with the sponsoring agency, state entity or state funding 4072
4970+recipient, as applicable, propose a prudent or feasible alternative to such 4073
4971+individual activity or sequence of planned activities to avoid such 4074
4972+impact, if such alternative is possible. 4075
4973+(2) If the State Historic Preservation Officer and the sponsoring 4076
4974+agency, state entity or state funding recipient, as applicable, reach an 4077
4975+agreement regarding such alternative, the officer shall provide to such 4078
4976+sponsoring agency, state entity or state funding recipient, as applicable, 4079
4977+a written determination that such alternative (A) will not have any effect 4080
4978+on historic structures and landmarks, or (B) is not within the category of 4081
4979+actions which may significantly affect the environment because such 4082
4980+activity or sequence of activities will not have an impact on historic 4083
4981+structures and landmarks. Such written determination shall constitute a 4084
4982+final determination by the officer for the purposes of this section. 4085
4983+(3) (A) If the State Historic Preservation Officer and the sponsoring 4086
4984+agency, state entity or state funding recipient, as applicable, cannot 4087
4985+reach an agreement regarding such alternative, the officer shall provide 4088
4986+to such sponsoring agency, state entity or state funding recipient, as 4089
4987+applicable, a written determination that such individual activity or 4090
4988+sequence of planned activities (i) will have an effect on historic 4091
4989+structures and landmarks, or (ii) is within the category of actions which 4092
4990+Bill No.
4991+
4992+
4993+
4994+LCO No. 6185 132 of 137
4995+
4996+may significantly affect the environment because such activity or 4093
4997+sequence of activities will have an impact on historic structures and 4094
4998+landmarks. 4095
4999+(B) (i) Notwithstanding subsection (c) of section 22a-1b of the general 4096
5000+statutes, after the State Historic Preservation Officer provides a written 4097
5001+determination under subparagraph (A) of this subdivision, the officer 4098
5002+shall, in collaboration with the sponsoring agency, state entity or state 4099
5003+funding recipient, as applicable, propose a mitigation plan requiring 4100
5004+such sponsoring agency, state entity or state funding recipient, as 4101
5005+applicable, to mitigate such impact. 4102
5006+(ii) The sponsoring agency, state entity or state funding recipient, as 4103
5007+applicable, shall, to the extent possible, submit to the State Historic 4104
5008+Preservation Officer all pertinent information regarding such individual 4105
5009+activity or sequence of planned activities that may affect such mitigation 4106
5010+plan. Such information shall be considered by the officer in the 4107
5011+development of the mitigation plan. 4108
5012+(iii) In establishing the mitigation plan, the State Historic 4109
5013+Preservation Officer shall consult with the Commissioner of Economic 4110
5014+and Community Development, or the commissioner's designee, about 4111
5015+the economic impact of (I) the individual activity or sequence of planned 4112
5016+activities proposed to be undertaken by the sponsoring agency, state 4113
5017+entity or state funding recipient, as applicable, and (II) the mitigation 4114
5018+plan. Any information provided by the commissioner during such 4115
5019+consultation shall be considered by the officer in the development of the 4116
5020+mitigation plan. 4117
5021+(iv) Not later than forty-five days after the State Historic Preservation 4118
5022+Officer receives the information submitted under subparagraph (B)(ii) 4119
5023+of this subdivision, the officer shall memorialize the mitigation plan in 4120
5024+a proposed mitigation agreement that may be executed by the 4121
5025+sponsoring agency, state entity or state funding recipient, as applicable. 4122
5026+If the sponsoring agency, state entity or state funding recipient, as 4123
5027+Bill No.
5028+
5029+
5030+
5031+LCO No. 6185 133 of 137
5032+
5033+applicable, executes such proposed mitigation agreement, the officer 4124
5034+shall also execute such proposed mitigation agreement. The execution 4125
5035+of such mitigation agreement shall constitute (I) a determination by the 4126
5036+officer that the officer is satisfied the effect on historic structures and 4127
5037+landmarks will be mitigated pursuant to the terms of such mitigation 4128
5038+agreement, and (II) a final determination by the officer for the purposes 4129
5039+of this section. 4130
5040+(v) At the time the State Historic Preservation Officer provides the 4131
5041+mitigation agreement proposed under subparagraph (B)(iv) of this 4132
5042+subdivision to the sponsoring agency, state entity or state funding 4133
5043+recipient, as applicable, the officer shall notify such sponsoring agency, 4134
5044+state entity or state funding recipient, as applicable, that a request may 4135
5045+be submitted in accordance with the provisions of subdivision (1) of 4136
5046+subsection (e) of this section to the Commissioner of Economic and 4137
5047+Community Development to review such proposed mitigation 4138
5048+agreement. 4139
5049+(e) (1) If the sponsoring agency, state entity or state funding recipient, 4140
5050+as applicable, declines to execute the mitigation agreement proposed 4141
5051+under subparagraph (B)(iv) of subdivision (3) of subsection (d) of this 4142
5052+section, such sponsoring agency, state entity or state funding recipient, 4143
5053+as applicable, may submit, not later than fifteen days after the State 4144
5054+Historic Preservation Officer provides such proposed mitigation 4145
5055+agreement to such sponsoring agency, state entity or state funding 4146
5056+recipient, as applicable, a request to the Commissioner of Economic and 4147
5057+Community Development to review the proposed mitigation agreement 4148
5058+and make recommendations to revise such proposed mitigation 4149
5059+agreement. Such request shall be in the form and manner prescribed by 4150
5060+the commissioner and may include a request for a conference with the 4151
5061+commissioner, the officer, the sponsoring agency, the state entity or the 4152
5062+state funding recipient, as applicable, and any other interested party. 4153
5063+(2) (A) Not later than thirty days after receiving such request, the 4154
5064+commissioner shall (i) if such conference was requested, hold such 4155
5065+Bill No.
5066+
5067+
5068+
5069+LCO No. 6185 134 of 137
5070+
5071+conference, and (ii) make recommendations, if any, for revisions to the 4156
5072+proposed mitigation agreement. If such revisions are recommended, the 4157
5073+commissioner's review pursuant to this subsection shall be concluded 4158
5074+and the State Historic Preservation Officer shall include such revisions 4159
5075+in a revised mitigation agreement. Such revised mitigation agreement 4160
5076+may be executed by the sponsoring agency, state entity or state funding 4161
5077+recipient, as applicable. If the sponsoring agency, state entity or state 4162
5078+funding recipient, as applicable, executes such revised mitigation 4163
5079+agreement, the officer shall also execute such revised mitigation 4164
5080+agreement. The execution of such revised mitigation agreement shall 4165
5081+constitute (I) a determination by the officer that the officer is satisfied 4166
5082+the effect on historic structures and landmarks will be mitigated 4167
5083+pursuant to the terms of such revised mitigation agreement, and (II) a 4168
5084+final determination by the officer for the purposes of this section. 4169
5085+(B) If the commissioner makes no recommendations for revisions to 4170
5086+the mitigation agreement, the commissioner's review pursuant to this 4171
5087+subsection shall be concluded. The sponsoring agency, state entity or 4172
5088+state funding recipient, as applicable, may subsequently elect to execute 4173
5089+the mitigation agreement proposed by the State Historic Preservation 4174
5090+Officer under subparagraph (B)(iv) of subdivision (3) of subsection (d) 4175
5091+of this section. If the sponsoring agency, state entity or state funding 4176
5092+recipient, as applicable, executes such proposed mitigation agreement, 4177
5093+the officer shall also execute such proposed mitigation agreement. The 4178
5094+execution of such mitigation agreement shall constitute (i) a 4179
5095+determination by the officer that the officer is satisfied the effect on 4180
5096+historic structures and landmarks will be mitigated pursuant to the 4181
5097+terms of such mitigation agreement, and (ii) a final determination by the 4182
5098+officer for the purposes of this section. 4183
5099+(f) If the State Historic Preservation Officer proposes a mitigation 4184
5100+plan pursuant to subparagraph (B)(i) of subdivision (3) of subsection (d) 4185
5101+of this section but a mitigation agreement is not executed, the 4186
5102+sponsoring agency shall conduct an early public scoping process in 4187
5103+accordance with subsection (b) of section 22a-1b of the general statutes. 4188
5104+Bill No.
5105+
5106+
5107+
5108+LCO No. 6185 135 of 137
5109+
5110+(g) Not later than January first, annually, the State Historic 4189
5111+Preservation Officer shall post on the Department of Economic and 4190
5112+Community Development's Internet web site all mitigation agreements 4191
5113+executed during the preceding fiscal year.4192
5114+This act shall take effect as follows and shall amend the following
5115+sections:
5116+
5117+Section 1 July 1, 2024, and
5118+applicable to assessment
5119+years commencing on or
5120+after October 1, 2024
5121+14-33(a)(2)
5122+Sec. 2 July 1, 2024, and
5123+applicable to assessment
5124+years commencing on or
5125+after October 1, 2024
5126+12-71d(b)
5127+Sec. 3 July 1, 2024, and
5128+applicable to assessment
5129+years commencing on or
5130+after October 1, 2024
5131+12-63(b)
5132+Sec. 4 July 1, 2024, and
5133+applicable to assessment
5134+years commencing on or
5135+after October 1, 2024
5136+12-41(b) and (c)
5137+Sec. 5 July 1, 2024, and
5138+applicable to assessment
5139+years commencing on or
5140+after October 1, 2024
5141+12-53(a)
5142+Sec. 6 July 1, 2024, and
5143+applicable to assessment
5144+years commencing on or
5145+after October 1, 2024
5146+12-71(a)(2)
5147+Sec. 7 July 1, 2024, and
5148+applicable to assessment
5149+years commencing on or
5150+after October 1, 2024
5151+12-71(f)(2)
5152+Sec. 8 July 1, 2024, and
5153+applicable to assessment
5154+years commencing on or
5155+after October 1, 2024
5156+12-71b
5157+Bill No.
5158+
5159+
5160+
5161+LCO No. 6185 136 of 137
5162+
5163+Sec. 9 July 1, 2024, and
5164+applicable to assessment
5165+years commencing on or
5166+after October 1, 2024
5167+12-71c(b)
5168+Sec. 10 July 1, 2024, and
5169+applicable to assessment
5170+years commencing on or
5171+after October 1, 2024
5172+12-81(74)
5173+Sec. 11 July 1, 2024 7-152e(a)
5174+Sec. 12 from passage 12-71(f)(7)(B)
5175+Sec. 13 July 1, 2025 12-71e
5176+Sec. 14 July 1, 2024 36a-2
5177+Sec. 15 July 1, 2024 36a-65(e)
5178+Sec. 16 July 1, 2024 36a-70(n) to (u)
5179+Sec. 17 July 1, 2024 36a-139a(a) to (h)
5180+Sec. 18 July 1, 2024 36a-139b(a) to (g)
5181+Sec. 19 July 1, 2024 36a-215
5182+Sec. 20 July 1, 2024 36a-220(a)
5183+Sec. 21 July 1, 2024 36a-221a(a) to (c)
5184+Sec. 22 July 1, 2024 36a-225
5185+Sec. 23 July 1, 2024 36a-226a(a)
5186+Sec. 24 July 1, 2024 36a-237(a) and (b)
5187+Sec. 25 July 1, 2024 36a-237f
5188+Sec. 26 July 1, 2024 36a-237g
5189+Sec. 27 July 1, 2024 36a-237h(a) to (c)
5190+Sec. 28 July 1, 2024 36a-333(a)(2)
5191+Sec. 29 July 1, 2024 36a-609
5192+Sec. 30 from passage New section
5193+Sec. 31 October 1, 2025 38a-48
5194+Sec. 32 July 1, 2024 10-287
5195+Sec. 33 from passage Repealer section
5196+Sec. 34 from passage SA 77-98, Sec. 1
5197+Sec. 35 from passage SA 77-98, Sec. 2
5198+Sec. 36 from passage SA 77-98, Sec. 4
5199+Sec. 37 from passage SA 77-98, Sec. 5
5200+Sec. 38 from passage SA 77-98, Sec. 9
5201+Sec. 39 from passage SA 77-98, Sec. 11
5202+Sec. 40 from passage SA 77-98, Sec. 15(a)
5203+Sec. 41 from passage SA 77-98
5204+Sec. 42 from passage New section
5205+Bill No.
5206+
5207+
5208+
5209+LCO No. 6185 137 of 137
5210+
5211+Sec. 43 October 1, 2024 New section
5212+