LCO 1 of 6 General Assembly Substitute Bill No. 1242 January Session, 2025 AN ACT FUNDING SMALL HARBOR IMPROVEMENT PROJECTS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 102 of public act 21-111, as amended by section 82 1 of public act 23-205, is amended to read as follows (Effective July 1, 2025): 2 (a) [The] For the purposes described in subsection (b) of this section, 3 the State Bond Commission shall have the power from time to time to 4 authorize the issuance of bonds of the state [, in accordance with the 5 provisions of section 3-20 of the general statutes,] in one or more series 6 and in principal amounts not exceeding in the aggregate twenty million 7 dollars for the Connecticut Port Authority established pursuant to 8 section 15-31a of the general statutes. [The amount authorized for the 9 issuance and sale of such bonds in each of the following fiscal years shall 10 not exceed the following corresponding amount for each such fiscal 11 year, provided, to the extent the authority does not provide for the use 12 of all or a portion of such amount in any such fiscal year, such amount 13 not provided for shall be carried forward and added to the authorized 14 amount for the next succeeding fiscal year, and, provided further, the 15 costs of issuance and capitalized interest, if any, may be added to the 16 capped amount in each fiscal year, and each of the authorized amounts 17 shall be effective on July first of the fiscal year indicated as follows: 18 Substitute Bill No. 1242 LCO 2 of 6 T1 Fiscal Year Ending Amount T2 June Thirtieth T3 2022 $5,000,000 T4 2023 5,000,000 T5 2024 2,500,000 T6 T7 2025 2,500,000 T8 T9 2026 5,000,000 T10 Total $20,000,000] (b) [The State Bond Commission shall approve a memorandum of 19 understanding between the Connecticut Port Authority and the state, 20 acting by and through the Secretary of the Office of Policy and 21 Management and the Treasurer, providing for the issuance of said 22 bonds for the purposes of projects undertaken by the Connecticut Port 23 Authority regarding ports not located in the towns of New Haven, New 24 London or Bridgeport, including provisions regarding the extent to 25 which federal, private or other moneys then available or thereafter to be 26 made available for costs should be added to the proceeds of the bonds 27 authorized pursuant to this section for such projects. The memorandum 28 of understanding shall be deemed to satisfy the provisions of section 3-29 20 of the general statutes and the exercise of any right or power granted 30 thereby that is not inconsistent with the provisions of this section.] The 31 proceeds of the sale of such bonds, to the extent of the amount stated in 32 subsection (a) of this section, shall be deposited into the small harbor 33 improvement projects account, established pursuant to section 13b-55d, 34 as amended by this act. 35 (c) All provisions of section 3-20 of the general statutes, or the exercise 36 of any right or power granted thereby, that are not inconsistent with the 37 provisions of this section are hereby adopted and shall apply to all 38 bonds authorized by the State Bond Commission pursuant to this 39 section. Temporary notes in anticipation of the money to be derived 40 Substitute Bill No. 1242 LCO 3 of 6 from the sale of any such bonds so authorized may be issued in 41 accordance with said section, and from time to time renewed. All bonds 42 issued pursuant to this section shall be general obligations of the state 43 and the full faith and credit of the state of Connecticut are pledged for 44 the payment of the principal of and interest on said bonds as the same 45 become due, and accordingly and as part of the contract of the state with 46 the holders of said bonds, appropriation of all amounts necessary for 47 punctual payment of such principal and interest is hereby made, and 48 the Treasurer shall pay such principal and interest as the same become 49 due. 50 [(d) Subject to the amount of limitations of the capping provisions in 51 subsection (a) of this section, the principal amount of the bonds 52 authorized under this section shall be deemed to be an appropriation 53 and allocation of such amount, and such approval of such request shall 54 be deemed the allotment by the Governor of such capital outlays within 55 the meaning of section 4-85 of the general statutes.] 56 Sec. 2. Section 13b-55d of the general statutes is repealed and the 57 following is substituted in lieu thereof (Effective July 1, 2025): 58 (a) As used in this section, "small harbor" means any harbor in the 59 state not under the authority of the Connecticut Port Authority. 60 (b) The Connecticut Port Authority, established under section 15-31a, 61 shall establish a competitive grant program to be known as the small 62 harbor improvements projects grant program. Such program shall 63 provide funding to municipalities and private entities for small harbor 64 improvement projects for purposes of improving the economy and 65 infrastructure of the state. Such projects may include federal and 66 nonfederal dredging projects in small harbors and private maritime 67 infrastructure projects in small harbors, provided all applicable permits 68 and authorizations are obtained before such private maritime 69 infrastructure projects receive any such grant award. With regard to 70 federal and nonfederal dredging projects, grants may be awarded to (1) 71 support, in full or in part, local and state matching requirements for such 72 Substitute Bill No. 1242 LCO 4 of 6 projects; (2) cover the incremental costs associated with applicable 73 environmental regulatory requirements or management practices, 74 including beneficial use; (3) cover part or all of the costs of such projects 75 in the absence of adequate federal funds; and (4) provide 76 reimbursement for such projects that were approved by the authority 77 for funding or that commenced prior to the disbursement of such funds 78 due to time considerations that impacted the flow of commerce at such 79 small harbor. 80 (c) Applications shall be submitted annually to the Connecticut Port 81 Authority at such times and in such manner as the authority prescribes. 82 The authority shall develop the eligibility criteria for participation in the 83 program and determine the amount a private entity shall be required to 84 provide to match any such grant. The authority shall give preference to 85 applications submitted by a municipality. 86 [(a)] (d) The Connecticut Port Authority shall establish an account to 87 be known as the "small harbor improvement projects account". There 88 shall be deposited in the account: (1) The proceeds of notes, bonds or 89 other obligations issued by the state for the purpose of deposit therein 90 and used in accordance with the permissible uses thereof; (2) funds 91 appropriated by the General Assembly for the purpose of deposit 92 therein and used in accordance with the permissible uses thereof; and 93 (3) any other funds required or permitted by law to be deposited in the 94 account. The funds in said account shall be expended by the authority 95 for the [purposes described in subsection (b) of this section. As used in 96 this section, "small harbor" means any harbor in the state not under the 97 authority of the Connecticut Port Authority. 98 (b) The small harbor improvement projects account may be used (1) 99 for federal and nonfederal dredging projects in small harbors to (A) 100 support, in full or in part, local and state matching requirements for such 101 projects; (B) cover the incremental costs associated with applicable 102 environmental regulatory requirements or management practices, 103 including beneficial use; and (C) cover part or all of the costs of such 104 projects in the absence of adequate federal funds; and (2) to fund private 105 Substitute Bill No. 1242 LCO 5 of 6 maritime infrastructure projects in small harbors, provided all 106 applicable permits and authorizations are obtained before such private 107 maritime infrastructure projects receive any such funding] purpose of 108 providing grants pursuant to the program described in subsection (b) of 109 this section. If the account is used for the purpose described in 110 [subparagraph (C) of] subdivision [(1)] (3) of [this] subsection (b) of this 111 section, the authority shall pursue reimbursement to the account from 112 the federal government. 113 [(c)] (e) The authority shall adopt procedures in accordance with 114 section 1-121 to implement the provisions of this section, including, but 115 not limited to, a process for contracting for projects in small harbors 116 under this section. 117 Sec. 3. Subsection (m) of section 32 of public act 15-1 of the June 118 special session, as amended by section 230 of public act 16-4 of the May 119 special session and section 540 of public act 17-2 of the June special 120 session, is amended to read as follows (Effective July 1, 2025): 121 (m) For the Connecticut Port Authority: Grants -in-aid for 122 improvements to ports, harbors and marinas, including dredging and 123 navigational improvements, and reimbursement for dredging projects 124 at small harbors, as defined in section 13b-55d, as amended by this act, 125 not exceeding $6,750,000, provided not less than $5,000,000 shall be 126 made available to the ports, harbors and marinas in the state other than 127 the deep water ports in the cities of Bridgeport, New Haven and New 128 London. 129 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2025 PA 21-111, Sec. 102 Sec. 2 July 1, 2025 13b-55d Sec. 3 July 1, 2025 PA 15-1 of the June Sp. Sess., Sec. 32(m) Substitute Bill No. 1242 LCO 6 of 6 Statement of Legislative Commissioners: Section 3 was redrafted to reflect the current version of subsection (m) of section 32 of public act 15-1. TRA Joint Favorable Subst.