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Substitute Senate Bill No. 48

PUBLIC ACT NO. 96-181

AN ACT CONCERNING THE AUTHORIZATION OF BONDS OF THE STATE FOR CAPITAL IMPROVEMENTS AND OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. The State Bond Commission shall have power, in accordance with the provisions of sections 1 to 7, inclusive, of this act, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding $26,175,000.

Sec. 2. The proceeds of the sale of said bonds to the extent hereinafter stated, shall be used for the purpose of acquiring, by purchase or condemnation, undertaking, constructing, reconstructing, improving or equipping, or purchasing land or buildings, or improving sites for the projects hereinafter described, including payment of architectural, engineering, demolition or related costs in connection therewith, or of payment of the cost of long-range capital programming and space utilization studies as hereinafter stated:

(a) For the Military Department: Planning for various renovations, improvements and expansion of Camp Hartell, Windsor Locks, not exceeding $1,400,000.

(b) For the Department of Environmental Protection:

(1) Recreation and natural heritage trust program for recreation, open space, resource protection and resource management, not exceeding $3,000,000; (2) Lakes restoration program in accordance with sections 22a-339a to 22a-339e, inclusive, of the general statutes, not exceeding $1,000,000.

(c) For The University of Connecticut Health Center: Alterations and improvements to multidiscipline laboratories, not exceeding $3,700,000.

(d) For the Connecticut State University System: (1) All Universities: (A) Purchase and installation of new and replacement equipment, not exceeding $4,000,000; (B) Acquisition of property and related expenses, not exceeding $800,000; (2) At Eastern Connecticut State University: (A) Planning for a perimeter road and additional parking, not exceeding $150,000; (B) Purchase and installation of equipment for the new library, not exceeding $800,000; (3) At Southern Connecticut State University: (A) Planning for various renovations and expansion of Engelman Hall, not exceeding $2,225,000; (B) Planning for a new physical plant building, not exceeding $600,000.

(e) For the Judicial Department:

(1) Development of a new Juvenile Matters Detention Center in Bridgeport, not exceeding $4,500,000; (2) Development of a new courthouse complex in Danielson, not exceeding $2,500,000; (3) Development of a new courthouse complex in Waterbury, not exceeding $1,500,000.

Sec. 3. All provisions of section 3-20 of the general statutes or the exercise of any right or power granted thereby which are not inconsistent with the provisions of this act are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to sections 1 to 7, inclusive, of this act, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds.

Sec. 4. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by the Secretary of the Office of Policy and Management or by or on behalf of such state officer, department or agency and stating such terms and conditions as said commission, in its discretion, may require.

Sec. 5. For the purposes of sections 1 to 7, inclusive, of this act, "state moneys" means the proceeds of the sale of bonds authorized pursuant to said sections 1 to 7, inclusive, of this act or of temporary notes issued in anticipation of the moneys to be derived from the sale of such bonds. Each request filed as provided in section 4 of this act for an authorization of bonds shall identify the project for which the proceeds of the sale of such bonds are to be used and expended and, in addition to any terms and conditions required pursuant to said section 4 of this act, include the recommendation of the person signing such request as to the extent to which federal, private or other moneys then available or thereafter to be made available for costs in connection with any such project should be added to the state moneys available or becoming available hereunder for such project. If the request includes a recommendation that some amount of such federal, private or other moneys should be added to such state moneys, then, if and to the extent directed by the State Bond Commission at the time of authorization of such bonds, said amount of such federal, private or other moneys then available or thereafter to be made available for costs in connection with such project may be added to any state moneys available or becoming available hereunder for such project and be used for such project, any other federal, private or other moneys then available or thereafter to be made available for costs in connection with such project upon receipt shall, in conformity with applicable federal and state law, be used by the Treasurer to meet principal of outstanding bonds issued pursuant to sections 1 to 7, inclusive, of this act, or to meet the principal of temporary notes issued in anticipation of the money to be derived from the sale of bonds theretofore authorized pursuant to said sections 1 to 7, inclusive, for the purpose of financing such costs, either by purchase or redemption and cancellation of such bonds or notes or by payment thereof at maturity. Whenever any of the federal, private or other moneys so received with respect to such project are used to meet the principal of such temporary notes or whenever principal of any such temporary notes is retired by application of revenue receipts of the state, the amount of bonds theretofore authorized in anticipation of such temporary notes were issued, and the aggregate amount of bonds which may be authorized pursuant to section 1 of this act, shall each be reduced by the amount of the principal so met or retired. Pending use of the federal, private or other moneys so received to meet principal as hereinabove directed, the amount thereof may be invested by the Treasurer in bonds or obligations of, or guaranteed by, the state of the United States or agencies or instrumentalities of the United States, shall be deemed to be part of the debt retirement funds of the state, and net earnings on such investments shall be used in the same manner as the said moneys so invested.

Sec. 6. Any balance of the proceeds of the sale of said bonds authorized for any project described in section 2 of this act in excess of the cost of such project may be used to complete any other project described in said section 2 if the State Bond Commission shall so determine and direct. Any balance of the proceeds of the sale of said bonds in excess of the costs of all the projects described in section 2 of this act shall be deposited to the credit of the General Fund.

Sec. 7. Said bonds issued pursuant to sections 1 to 7, inclusive, of this act shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due.

Sec. 8. Section 1 of special act 88-77, as amended by section 156 of special act 89-52, section 205 of special act 90-34, section 99 of special act 92-3 of the May special session, section 83 of special act 93-2 of the June special session, section 59 of public act 94-2 of the May special session and section 44 of special act 95-20, is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 1 to 7, inclusive, of special act 88-77, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding three hundred forty-six million [nine] EIGHT hundred [thirty] FORTY-SEVEN thousand three hundred thirty-one dollars.

Sec. 9. Subsection (f) of section 2 of special act 88-77 is amended to read as follows:

For the Department of Motor Vehicles: Planning, design, land and/or building acquisition, construction or improvements to motor vehicle facilities, INCLUDING THE HEADQUARTERS BUILDING not exceeding eleven million dollars.

Sec. 10. Subdivision (3) of subsection (t) of section 2 of special act 88-77 is amended to read as follows:

Planning for replacement of existing incinerator, not exceeding [two] ONE hundred [eighteen] THIRTY-FIVE thousand dollars.

Sec. 11. Subparagraph (C) of subdivision (2) of subsection (w) of section 2 of special act 88-77 is amended to read as follows:

Copernicus Hall, enclosed main deck with one story roofed structure AND INTERIOR RENOVATIONS FOR ADDITIONAL CLASSROOM AND OFFICE SPACE, not exceeding two million two hundred thirteen thousand dollars.

Sec. 12. Section 22 of special act 88-77, as amended by section 238 of special act 90-34, section 142 of special act 91-7 of the June special session, section 115 of special act 92-3 of the May special session, section 93 of special act 93-2 of the June special session and section 64 of public act 94-2 of the May special session, is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 22 to 27, inclusive, of special act 88-77, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate not exceeding sixty-seven million [seven] FOUR hundred [thirty-four] EIGHTY-FOUR thousand one hundred eight dollars.

Sec. 13. Subdivision (3) of subsection (j) of section 23 of special act 88-77, as amended by section 144 of special act 91-7 of the June special session, is amended to read as follows:

Grants-in-aid or loans to Resource Recovery Authorities for planning of facilities in accordance with the state solid waste management plan, not exceeding one million [six] THREE hundred FIFTY thousand dollars.

Sec. 14. Subdivision (15) of subsection (j) of section 23 of special act 88-77 is amended to read as follows:

Grant-in-aid to the town and city of Waterbury for improvements to [Scott Park] MUNICIPAL STADIUM, not exceeding five hundred thousand dollars.

Sec. 15. Section 28 of special act 88-77, as amended by section 187 of special act 89-52, section 244 of special act 90-34, section 147 of special act 91-7 of the June special session, section 117 of special act 92-3 of the May special session, section 98 of special act 93-2 of the June special session and section 66 of public act 94-2 of the May special session, is amended to read as follows:

The State Bond Commission shall have power in accordance with the provisions of sections 28 to 33, inclusive, of special act 88-77, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate not exceeding thirty-four million three hundred [ninety-eight] NINETY-SIX thousand [eight] THREE hundred [seventy-three] TWENTY-FOUR dollars.

Sec. 16. Subdivision (2) of subsection (a) of section 29 of special act 88-77 is amended to read as follows:

Additions to the Restoration of Historic Assets in Connecticut fund in accordance with the provisions of section 8 of special act 77-47, not exceeding [two] ONE million NINE HUNDRED NINETY-SEVEN THOUSAND FOUR HUNDRED FIFTY-ONE dollars.

Sec. 17. Subdivision (29) of subsection (a) of section 29 of special act 88-77 is amended to read as follows:

Grant-in-aid to the town and city of New Britain for the planning and design of a platform over a portion of Route 72 AND DOWNTOWN ECONOMIC DEVELOPMENT in said town and city, not exceeding two million five hundred thousand dollars.

Sec. 18. Section 1 of special act 89-52, as amended by section 253 of special act 90-34, section 150 of special act 91-7 of the June special session, section 118 of special act 92-3 of the May special session, section 102 of special act 93-2 of the June special session and section 69 of public act 94-2 of the May special session, is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 1 to 7, inclusive, of special act 89-52, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate not exceeding four hundred [ten] NINE million [seven] THREE hundred [eleven] SEVENTY-SIX thousand [three hundred] seventy-eight dollars.

Sec. 19. Subsection (d) of section 2 of special act 89-52 is amended to read as follows:

For the Department of Motor Vehicles: Planning, design, land and/or building acquisition, construction or improvements to motor vehicles facilities, INCLUDING THE HEADQUARTERS BUILDING not exceeding five million dollars.

Sec. 20. Subdivision (7) of subsection (g) of section 2 of special act 89-52 is amended to read as follows:

Dredging of Hoadley's Pond, Seymour, not exceeding [five] FOUR hundred FORTY-SIX thousand SEVEN HUNDRED dollars.

Sec. 21. Subparagraph (B) of subdivision (1) of subsection (p) of section 2 of special act 89-52 is repealed.

Sec. 22. Subdivision (8) of subsection (a) of section 23 of special act 89-52, as amended by section 6 of public act 90-179, is amended to read as follows:

Grant-in-aid to the town and city of Meriden for the [deepening or dredging of Harbor Brook] FLOOD MANAGEMENT ACTIVITY, not exceeding two hundred thousand dollars.

Sec. 23. Subdivision (1) of subsection (g) of section 23 of special act 89-52 is amended to read as follows:

Grants-in-aid to [municipalities] PUBLIC LIBRARIES, AS DEFINED IN SUBDIVISION (2) OF SECTION 11-24a OF THE GENERAL STATUTES for construction of public libraries, not exceeding two million dollars.

Sec. 24. Section 22 of special act 90-34, as amended by section 217 of special act 91-7 of the June special session, section 165 of special act 92-3 of the May special session, section 143 of special act 93-2 of the June special session, section 97 of public act 94-2 of the May special session and section 54 of special act 95-20, is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 22 to 27, inclusive, of special act 90-34, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$178,945,189] $178,645,189.

Sec. 25. Subdivision (4) of subsection (d) of section 23 of special act 90-34 is amended to read as follows:

Grant-in-aid to the town of East Hartford for feasibility study and design of an area for nature conservancy and passive recreation OR DOWNTOWN DEVELOPMENT, not exceeding $100,000.

Sec. 26. Subdivision (5) of subsection (d) of section 23 of special act 90-34, as amended by section 56 of special act 95-20, is amended to read as follows:

Grant-in-aid to the town of East Hartford for the purchase of land for open space, not exceeding [$1,500,000] $2,000,000 [0m, $750,000 of which shall be used for acquisition of land for downtown revitalization.

Sec. 27. Subdivision (12) of subsection (i) of section 23 of special act 90-34 is repealed.

Sec. 28. Subdivision (26) of subsection (i) of section 23 of special act 90-34 is amended to read as follows:

Grant-in-aid to the Dixwell Neighborhood Corporation for purchase of and renovations to St. Martin DePorres School for use as a community center AND FOR GRANTS-IN-AID TO MUNICIPALITIES, MUNICIPAL ENTITIES OR NONPROFIT ORGANIZATIONS WHICH ARE EXEMPT FROM TAXATION UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE OF 1986, OR ANY SUBSEQUENT CORRESPONDING INTERNAL REVENUE CODE OF THE UNITED STATES, AS FROM TIME TO TIME AMENDED, FOR URBAN DEVELOPMENT PROJECTS, INCLUDING HOUSING, ECONOMIC AND COMMUNITY DEVELOPMENT, TRANSPORTATION, ENVIRONMENTAL PROTECTION, PUBLIC SAFETY, CHILDREN AND FAMILIES AND SOCIAL SERVICES PROJECTS AND PROGRAMS, not exceeding $1,500,000.

Sec. 29. Subdivision (41) of subsection (i) of section 23 of special act 90-34, as amended by special act 93-1 and section 103 of public act 94-2 of the May special session, is amended to read as follows:

A grant-in-aid to town and city of East Hartford for development of a homeless shelter in East Hartford OR DOWNTOWN DEVELOPMENT, not exceeding $500,000.

Sec. 30. Subdivision (2) of subsection (k) of section 23 of special act 90-34 is amended to read as follows:

Grants-in-aid to [municipalities] PUBLIC LIBRARIES, AS DEFINED IN SUBDIVISION (2) OF SECTION 11-24a OF THE GENERAL STATUTES for construction of public libraries, not exceeding $3,500,000.

Sec. 31. Subdivision (30) of subsection (d) of section 23 of special act 90-34, as amended by section 181 of public act 94-2 of the May special session, is amended to read as follows:

Grant-in-aid to the town and city of Hartford for [a swimming pool] AN ENVIRONMENTAL EDUCATIONAL FACILITY AND RELATED IMPROVEMENTS ADJACENT TO THE MARY HOOKER SCHOOL in the Charter Oak-Zion section of Hartford, not exceeding $250,000.

Sec. 32. Section 1 of special act 91-7 of the June special session, as amended by section 173 of special act 92-3 of the May special session, section 161 of special act 93-2 of the June special session, section 106 of public act 94-2 of the May special session and section 60 of special act 95-20, is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 1 to 7, inclusive, of special act 91-7 of the June special session, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$162,668,859] $136,571,839.

Sec. 33. Subdivision (A) of subsection (l) of section 2 of special act 91-7 of the June special session is amended to read as follows: Renovations and improvements to existing state-owned buildings for inmate housing, programming and staff training space, and additional inmate capacity, including support facilities, not exceeding [$51,500,000] $26,500,000.

Sec. 34. Subsection (o) of section 2 of special act 91-7 of the June special session, as amended by section 172 of special act 93-2 of the June special session and section 112 of public act 94-2 of the May special session, is amended to read as follows:

For Contingency Reserve: Additions in the amount hereinbefore stated for any of the foregoing projects or purposes, amounts in the aggregate, not exceeding [$1,422,020] $325,000.

Sec. 35. Subdivision (2) of subsection (g) of section 23 of special act 91-7 of the June special session is amended to read as follows:

Grants-in-aid to [municipalities] PUBLIC LIBRARIES, AS DEFINED IN SUBDIVISION (2) OF SECTION 11-24a OF THE GENERAL STATUTES for construction of public libraries, not exceeding $2,000,000.

Sec. 36. Section 1 of special act 92-3 of the May special session, as amended by section 174 of special act 93-2 of the June special session, section 118 of public act 94-2 of the May special session and section 66 of special act 95-20, is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 1 to 7, inclusive, of special act 92-3 of the May special session, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$326,033,416] $321,789,271.

Sec. 37. Subsection (j) of section 2 of special act 92-3 of the May special session is amended to read as follows:

Fire, safety and environmental improvements, including improvements in compliance with current codes, air conditioning, site improvements, repair and replacement of roofs and other exterior building renovations, not exceeding [$500,000] $152,010.

Sec. 38. Subdivision (2) of subsection (r) of section 2 of special act 92-3 of the May special session, as amended by section 187 of special act 93-2 of the June special session, is amended to read as follows:

For renovation of a building [at or adjacent to Connecticut Valley Hospital] for a training academy AND ALTERATIONS, RENOVATIONS AND IMPROVEMENTS TO BUILDINGS, not exceeding $920,000.

Sec. 39. Subsection (t) of section 2 of special act 92-3 of the May special session, as amended by section 189 of special act 93-2 of the June special session and section 125 of public act 94-2 of the May special session, is amended to read as follows:

For Contingency Reserve: Additions to the amount hereinbefore stated for any of the foregoing projects or purposes, amounts in the aggregate, not exceeding [$5,538,660] $1,642,505.

Sec. 40. Section 12 of special act 92-3 of the May special session is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 12 to 20, inclusive, of [this act] SPECIAL ACT 92-3 OF THE MAY SPECIAL SESSION, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$42,155,000] $19,537,680.

Sec. 41. Subsection (a) of section 13 of special act 92-3 of the May special session, as amended by section 71 of special act 95-20, is amended to read as follows:

For the Board of Trustees for The University of Connecticut: Development of the South Campus residence halls and a new dining hall, not exceeding [$24,188,000] $1,733,650.

Sec. 42. Subdivision (2) of subsection (b) of section 13 of special act 92-3 of the May special session is amended to read as follows:

At Central Connecticut State University: Alterations and improvements to buildings, deferred maintenance [,] and fire safety and code compliance improvements, not exceeding [$1,895,000] $1,732,030.

Sec. 43. Section 1 of special act 93-2 of the June special session, as amended by section 134 of public act 94-2 of the May special session and section 75 of special act 95-20, is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 1 to 7, inclusive, of special act 93-2 of the June special session, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$348,691,000] $336,691,000.

Sec. 44. Subsection (k) of section 2 of special act 93-2 of the June special session is repealed.

Sec. 45. Subdivision (1) of subsection (s) of section 2 of special act 93-2 of the June special session is amended to read as follows:

New courthouse complex and parking, New Britain, not exceeding [$39,835,000] $28,335,000.

Sec. 46. Section 12 of special act 93-2 of the June special session is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 12 to 20, inclusive, of [this act] SPECIAL ACT 93-2 OF THE JUNE SPECIAL SESSION, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$4,527,000] $3,527,000

Sec. 47. Subparagraph (A) of subdivision (2) of subsection (a) of section 13 of special act 93-2 of the June special session is repealed.

Sec. 48. Section 21 of special act 93-2 of the June special session, as amended by section 145 of public act 94-2 of the May special session, is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 21 to 26, inclusive, of special act 93-2 of the June special session, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregatem not exceeding [$71,800,000] $74,292,713.

Sec. 49. Subdivision (6) of subsection (a) of section 22 of special act 93-2 of the June special session is amended to read as follows:

Grants-in-aid to municipalities for acquisition of land for public parks, recreational and water quality improvements, water mains and water pollution control facilities, including sewer projects, not exceeding [$6,400,000] $12,400,000.

Sec. 50. Subdivision (1) of subsection (g) of section 22 of special act 93-2 of the June special session, as amended by section 148 of public act 94-2 of the May special session, is amended to read as follows:

Grants-in-aid to private nonprofit organizations for community residential and outpatient facilities for development of facilities, acquisition, alterations, repairs and improvements, not exceeding [$900,000] $592,713.

Sec. 51. Subsection (j) of section 22 of special act 93-2 of the June special session is amended to read as follows:

For the State Library: Grants-in-aid to [municipalities] PUBLIC LIBRARIES, AS DEFINED IN SUBDIVISION (2) OF SECTION 11-24a OF THE GENERAL STATUTES for public libraries, not exceeding $2,000,000.

Sec. 52. Subsection (o) of section 22 of special act 93-2 of the June special session is repealed.

Sec. 53. Section 29 of special act 93-2 of the June special session, as amended by section 151 of public act 94-2 of the May special session and section 78 of special act 95-20, is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 29 to 35, inclusive, of special act 93-2 of the June special session, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$273,116,332] $267,112,657.

Sec. 54. Subdivision (1) of subsection (d) of section 30 of special act 93-2 of the June special session is repealed.

Sec. 55. Subdivision (1) of subsection (f) of section 30 of special act 93-2 of the June special session is amended to read as follows:

Fire, safety and environmental improvements, including improvements in compliance with current codes, site improvements, repair and replacement of roofs [,] and other exterior and interior building renovations, not exceeding [$2,000,000] $1,780,418.

Sec. 56. Subsection (g) of section 30 of special act 93-2 of the June special session is repealed.

Sec. 57. Subparagraph (D) of subdivision (1) of subsection (k) of section 30 of special act 93-2 of the June special session is repealed.

Sec. 58. Subsection (p) of section 30 of special act 93-2 of the June special session, as amended by section 159 of public act 94-2 of the May special session, is amended to read as follows:

Contingency Reserve: Additions to the amount hereinbefore stated for any of the foregoing projects or purposes, amounts in the aggregate, not exceeding [$359,600] $246,507.

Sec. 59. Section 40 of special act 93-2 of the June special session is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 40 to 48, inclusive, of [this act] SPECIAL ACT 93-2 OF THE JUNE SPECIAL SESSION, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$12,200,000] $10,450,000.

Sec. 60. Subdivision (2) of subsection (b) of section 41 of special act 93-2 of the June special session is repealed.

Sec. 61. Subparagraph (C) of subdivision (3) of subsection (b) of section 41 of special act 93-2 of the June special session is repealed.

Sec. 62. Section 49 of special act 93-2 of the June special session, as amended by section 165 of public act 94-2 of the May special session and section 83 of special act 95-20, is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 49 to 54, inclusive, of special act 93-2 of the June special session, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$50,842,000] $58,808,814.

Sec. 63. Subsection (e) of section 50 of special act 93-2 of the June special session is amended to read as follows:

For the Department of Mental Health and Addiction Services: Grants-in-aid to private nonprofit organizations for community-based facilities for purchases, repairs, alterations and improvements, not exceeding [$750,000] $216,814.

Sec. 64. Subsection (k) of section 50 of special act 93-2 of the June special session is repealed.

Sec. 65. Subsection (a) of section 11 of special act 93-21, as amended by section 175 of public act 94-2 of the May special session and section 88 of special act 95-20, is amended to read as follows:

(a) The town and city of Hartford shall be eligible to receive current payments of scheduled estimated eligible project costs for a site acquisition for and development of a permanent facility for the magnet [Language Immersion] SCIENCE, MATH AND TECHNOLOGY RESOURCE HIGH School, provided (1) the Hartford board of education files an application for a school building project, in accordance with section 10-283 of the general statutes, (2) final plans and specifications for the project are approved pursuant to sections 10-291 and 10-292 of the general statutes and (3) the Hartford board of education submits to the commissioner of education, in such form as the commissioner shall prescribe, and the commissioner approves a plan for the operation of the magnet [Language Immersion] SCIENCE, MATH AND TECHNOLOGY RESOURCE HIGH School which shall include, but not be limited to: A description of the educational programs to be offered, the completion date for the magnet school project, an estimated budget for the operation of the magnet school and written commitments from one or more additional school districts that such districts shall participate in the magnet school. The commissioner of education shall notify the secretary of the state bond commission when the provisions of subdivisions (1) and (3) of this subsection have been met. Upon application to the commissioner of education and compliance with the provisions of subdivisions (1) and (3) of this subsection, the town and city of Hartford shall be eligible to receive a grant in an amount equal to the amount authorized and allocated pursuant to subsection (a) of section 12 of special act 93-21, as amended by section 176 of public act 94-2 of May special session and section 89 of [this act] SPECIAL ACT 95-20, for the purpose of developing final plans and specifications pursuant to subdivision (2) of this subsection and, upon application to the commissioner of education and compliance with the provisions of subdivisions (1), (2) and (3) of this subsection, the town and city of Hartford shall be eligible to receive a grant in an amount equal to the amount authorized and allocated pursuant to subsection (a) of section 12 of special act 93-21, as amended by section 176 of public act 94-2 of the May special session and section 89 of [this act] SPECIAL ACT 95-20, for the preliminary construction of the facility.

Sec. 66. Subsection (b) of section 12 of special act 93-21, as amended by section 176 of public act 94-2 of the May special session and section 89 of special act 95-20, is amended to read as follows:

project for the magnet [Language Immersion] SCIENCE, MATH AND TECHNOLOGY RESOURCE HIGH School in accordance with the provisions of section 11 of special act 93-21, as amended by section 175 of public act 94-2 of the May special session, or for state site remediation of a site for such school building project.

Sec. 67. Section 16 of public act 94-2 of the May special session is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 16 to 22, inclusive, of [this act] PUBLIC ACT [4m94-2 [0m OF THE MAY SPECIAL SESSION, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate not exceeding [$40,700,000] $38,449,600.

Sec. 68. Subsection (d) of section 17 of public act 94-2 of the May special session is repealed.

Sec. 69. Subsection (g) of section 17 of public act 94-2 of the May special session is repealed.

Sec. 70. Section 1 of special act 95-20 is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 1 to 7, inclusive, of [this act] SPECIAL ACT 95-20, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$200,042,100] $198,709,000.

Sec. 71. Subdivision (2) of subsection (d) of section 2 of special act 95-20 is amended to read as follows:

Emergency Services Facility, including canine training and vehicle impound area, not exceeding [$2,410,000] $1,780,000.

Sec. 72. Subdivision (2) of subsection (g) of section 2 of special act 95-20 is amended to read as follows:

Development of facilities INCLUDING RENOVATIONS AND IMPROVEMENTS at the Experiment Station, not exceeding $5,000,000.

Sec. 73. Subdivision (1) of subsection (j) of section 2 of special act 95-20 is amended to read as follows:

Fire, safety and environmental improvements, including improvements in compliance with current codes, site improvements, repair and replacement of roofs and other exterior and interior building renovations, CLEAN AIR ACT IMPROVEMENTS AND FOR THE ACQUISITION OF ADDITIONAL FACILITIES not exceeding [$5,900,000] $13,315,525.

Sec. 74. Subdivision (5) of subsection (j) of section 2 of special act 95-20 is amended to read as follows:

Alterations, renovations and improvements necessary to comply with the Clean Air Act, not exceeding [$6,400,000] $552,475.

Sec. 75. Subdivision (1) of subsection (m) of section 2 of special act 95-20 is amended to read as follows:

Alterations and improvements for clinical and medical school programs, not exceeding [$5,250,000] $3,575,000.

Sec. 76. Subsection (s) of section 2 of special act 95-20 is repealed.

Sec. 77. Section 9 of special act 95-20 is amended to read as follows:

The proceeds of the sale of said bonds shall be used by the Department of [Housing] ECONOMIC AND COMMUNITY DEVELOPMENT for the purposes hereinafter stated:

Housing development and rehabilitation, including moderate cost housing, moderate rental, congregate and elderly housing, urban homesteading, community housing development corporations, housing purchase and rehabilitation (no more than $10,000,000 of the total), housing for the homeless, housing for low income persons, limited equity cooperatives and mutual housing projects, removal and abatement of hazardous material including asbestos and lead-based paint in residential structures [(at least $2,500,000 shall be used for lead-safe interim housing),] emergency repair assistance for senior citizens, housing land bank and land trust, housing and community development, (AT LEAST $1,000,000 FOR ACCESSIBLE HOUSING IN ACCORDANCE WITH SECTIONS 8-218 AND 8-218a OF THE GENERAL STATUTES) predevelopment grants and loans, reimbursement for state and federal surplus property, private rental investment mortgage and equity program, housing infrastructure, septic system repair loan program, CONSTRUCTION acquisition and related rehabilitation and participation in federal programs, including administrative expenses associated with those programs eligible under the general statutes, not exceeding [$45,000,000] $50,000,000.

Sec. 78. Section 12 of special act 95-20 is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 12 to 17, inclusive, of [this act] SPECIAL ACT 95-20, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$60,315,000] $46,165,000.

Sec. 79. Subsection (b) of section 13 of special act 95-20 is amended to read as follows:

For the Office of Policy and Management: For the expansion and retention of naval operations within Connecticut including grants-in-aid, not exceeding [$15,000,000] $1,000,000.

Sec. 80. Subsection (d) of section 13 of special act 95-20 is repealed.

Sec. 81. Subsection (e) of section 13 of special act 95-20 is amended to read as follows:

For the Department of Mental Health and Addiction Services: Grants-in-aid to private nonprofit organizations for community-based residential and outpatient facilities for purchases, repairs, alterations and improvements, not exceeding [$1,250,000] $2,100,000.

Sec. 82. Subdivision (1) of subsection (h) of section 13 of special act 95-20 is amended to read as follows:

[Grants-in-aid to the] Connecticut Arts Endowment Fund [under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended,] for 501(c)(3) tax-exempt nonprofit organizations to be matched with private contributions, not exceeding $1,000,000.

Sec. 83. Subdivision (2) of subsection (h) of section 13 of special act 95-20 is amended to read as follows:

Grants-in-aid to [municipalities] PUBLIC LIBRARIES, AS DEFINED IN SUBDIVISION (2) OF SECTION 11-24a OF THE GENERAL STATUTES for construction, renovations, expansions, energy conservation and handicapped accessibility for public libraries, not exceeding $2,000,000.

Sec. 84. Section 18 of special act 95-20 is amended to read as follows: Repayment of any low interest working capital loan provided in accordance with subdivision (3) of subsection [(i)] (j) of section 13 of [this act] SPECIAL ACT 95-20 shall be subject to an interest rate to be determined in accordance with subsection (t) of section 3-20 of the general statutes and such terms and conditions as the Secretary of the Office of Policy and Management may establish. Payments by loan recipients shall be paid to the State Treasurer and deposited in the General Fund of the state.

Sec. 85. Section 20 of special act 95-20 is amended to read as follows:

In the case of any grant-in-aid made pursuant to subsections (d), (e), (g), (h) and (i) of section 13 of [this act] SPECIAL ACT 95-20which is made to any entity which is not a political subdivision of this state, the contract entered into pursuant to section 19 of [this act] SPECIAL ACT 95-20 shall provide that if the premises for which such grant-in-aid was made ceases, within ten years of the date of such grant, to be used as a facility for which such grant was made, an amount equal to the amount of such grant, minus ten per cent per year for each full year which has elapsed since the date of such grant, shall be repaid to the state and that a lien shall be placed on such land in favor of the state to ensure that such amount will be repaid in the event of such change in use EXCEPT THAT IF THE PREMISES FOR WHICH SUCH GRANT-IN-AID WAS MADE ARE OWNED BY THE STATE, A MUNICIPALITY OR A HOUSING AUTHORITY, NO LIEN SHALL BE PLACED.

Sec. 86. Section 21 of special act 95-20 is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 21 to 27, inclusive, of [this act] SPECIAL ACT 95-20, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$188,985,250] $196,035,250.

Sec. 87. Subdivision (1) of subsection (b) of section 22 of special act 95-20 is amended to read as follows:

Development of state-owned office facilities, including the acquisition of land and/or buildings, not exceeding [$10,000,000] $12,000,000.

Sec. 88. Subdivision (2) of subsection (d) of section 22 of special act 95-20 is amended to read as follows:

Development of a forensic laboratory, Phase II, Meriden, not exceeding [$440,000] $4,390,000.

Sec. 89. Subsection (e) of section 22 of special act 95-20 is amended to read as follows:

For the Department of Motor Vehicles: Renovations and improvements to the headquarters building, Wethersfield, [including windows and roof,] not exceeding $3,000,000.

Sec. 90. Subdivision (4) of subsection (f) of section 22 of special act 95-20 is repealed.

Sec. 91. Subdivision (5) of subsection (f) of section 22 of special act 95-20 is repealed.

Sec. 92. Subdivision (1) of subsection (h) of section 22 of special act 95-20 is repealed.

Sec. 93. Subdivision (1) of subsection (m) of section 22 of special act 95-20 is repealed.

Sec. 94. Subparagraph (A) of subdivision (1) of subsection (n) of section 22 of special act 95-20 is amended to read as follows:

Alterations and improvements to buildings and grounds, including fire, safety and handicapped code compliance projects, AND PURCHASE OF PROPERTY AND RELATED COSTS not exceeding [$4,000,000] $5,000,000.

Sec. 95. Subsection (s) of section 22 of special act 95-20 is amended to read as follows:

Contingency Reserve: Additions to the amount hereinbefore stated for any of the foregoing projects or purposes, AND FOR ANY OF THE PROJECTS OR PURPOSES AS AUTHORIZED UNDER THE PROVISIONS OF ANY ADDITIONAL ACT AS AUTHORIZED INCLUDING PROJECTS UNDER THE PROVISIONS OF SECTIONS 1 TO 7, INCLUSIVE, OF SPECIAL ACT 87-77, SECTIONS 1 TO 7, INCLUSIVE, OF SPECIAL ACT 88-77, SECTIONS 1 TO 7, INCLUSIVE, OF SPECIAL ACT 89-52, SECTIONS 1 TO 7, INCLUSIVE, OF SPECIAL ACT 90-34, SECTIONS 1 TO 7, INCLUSIVE, OF SPECIAL ACT 91-7 OF THE JUNE SPECIAL SESSION, SECTIONS 1 TO 7, INCLUSIVE, OF SPECIAL ACT 92-3 OF THE MAY SPECIAL SESSION, SECTIONS 29 TO 35, INCLUSIVE, OF SPECIAL ACT 93-2 OF THE JUNE SPECIAL SESSION AND SECTIONS 16 TO 22, INCLUSIVE, OF PUBLIC ACT 94-2, amounts in the aggregate, not exceeding [$1,603,900] $6,603,900.

Sec. 96. Section 32 of special act 95-20 is amended to read as follows:

The State Bond Commission shall have power, in accordance with the provisions of sections 32 to 37, inclusive, of [this act] SPECIAL ACT m95-20, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts in the aggregate, not exceeding [$34,420,000] $35,420,000.

Sec. 97. Subsection (d) of section 33 of special act 95-20 is amended to read as follows:

For the Department of Mental Retardation: [Grants-in-aid to] ADDITIONS TO THE COMMUNITY RESIDENTIAL REVOLVING LOAN FUND CREATED UNDER SECTION 17a-221 OF THE GENERAL STATUTES FOR private nonprofit providers for renovations and improvements to community-based residences, including life safety, health and environmental improvements, not exceeding [$1,000,000] $2,000,000.

Sec. 98. Subdivision (1) of subsection (g) of section 33 of special act 95-20 is amended to read as follows:

Connecticut Arts Endowment Fund [under section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended,] for 501(c)(3) tax-exempt nonprofit organizations to be matched with private contributions, not exceeding $1,000,000.

Sec. 99. Subdivision (3) of subsection (g) of section 33 of special act 95-20 is amended to read as follows:

Grants-in-aid to [municipalities] PUBLIC LIBRARIES, AS DEFINED IN SUBDIVISION (2) OF SECTION 11-24a OF THE GENERAL STATUTES, for construction, renovations, expansions, energy conservation and handicapped accessibility for public libraries, not exceeding $2,000,000.

Sec. 100. Subdivision (1) of subsection (h) of section 33 of special act 95-20 is amended to read as follows:

Grants-in-aid for construction, alterations, repairs and improvements to residential facilities, group homes, shelters [and] permanent family residences AND DAY TREATMENT FACILITIES, not exceeding $500,000.

Sec. 101. Section 39 of special act 95-20 is amended to read as follows:

In the case of any grant-in-aid made pursuant to subsections (d), (e), (f) and (h) of section 33 of [this act] SPECIAL ACT 95-20 which is made to any entity which is not a political subdivision of the state, the contract entered into pursuant to section 38 of [this act] SPECIAL ACT 95-20 shall provide that if the premises for which such grant-in-aid was made ceases, within ten years of the date of such grant, to be used as a facility for which such grant was made, an amount equal to the amount of such grant, minus ten per cent per year for each full year which has elapsed since the date of such grant, shall be repaid to the state and that a lien shall be placed on such land in favor of the state to ensure that such amount will be repaid in the event of such change in use EXCEPT THAT IF THE PREMISES FOR WHICH SUCH GRANT-IN-AID WAS MADE ARE OWNED BY THE STATE, A MUNICIPALITY OR A HOUSING AUTHORITY, NO LIEN SHALL BE PLACED.

Sec. 102. Section 55 of special act 95-20 is repealed.

Sec. 103. Section 3-20 of the general statutes, as amended by section 1 of public act 95-250 and section 8 of public act 95-270, is amended by adding subsection (x) as follows:

(NEW) (x) Notwithstanding any provision of the general statutes, public acts or special acts, upon any sale, lease or other disposition to or use by a nongovernmental entity of all or a portion of any project financed with proceeds of bonds of the state the interest on which is not included in gross income pursuant to Section 103 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, that would otherwise cause such bonds to be treated as private activity bonds within the meaning of Section 141 of said internal revenue code, the Treasurer is authorized to transfer all or a portion of the proceeds received with respect to and at the time of such disposition or use, in an amount not less than the amount required by said internal revenue code to preserve the exclusion from gross income of interest on such bonds, (1) to the General Fund to pay debt service on, including redemption, defeasance or purchase of, outstanding bonds of the state the interest on which is not included in gross income pursuant to Section 103 of said internal revenue code, (2) with the approval of the State Bond Commission, in lieu of the issuance of bonds, to the appropriate account or fund for any projects or purposes authorized by the State Bond Commission pursuant to a bond act and with the same force and effect as bond proceeds, thereby reducing the authority to issue bonds by such dollar amount, provided in any event that any such transfer does not cause the interest on the subject bonds to become included in gross income pursuant to Section 103 of said internal revenue code.

Sec. 104. Section 4-66c of the general statutes, as amended by section 1 of public act 95-250 and section 1 of public act 95-272, is repealed and the following is substituted in lieu thereof:

(a) For the purposes of subsection (b) of this section, the State Bond Commission shall have power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate [one] TWO hundred [ninety-seven] SEVENTY-FIVE million eight hundred ninety-five thousand nine hundred two dollars, provided [twelve] NINETY million dollars of said authorization shall be effective July 1, 1996. All provisions of section 3-20, AS AMENDED or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section, are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission in its discretion may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due.

(b) The proceeds of the sale of said bonds, to the extent hereinafter stated, shall be used, subject to the provisions of [subsection] SUBSECTIONS (c) AND (d) of this section, for the purpose of redirecting, improving and expanding state activities which promote community conservation and development and improve the quality of life for urban residents of the state as hereinafter stated: (1) For the Department of Economic and Community Development: Economic AND COMMUNITY development projects, INCLUDING ADMINISTRATIVE COSTS INCURRED BY THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT not exceeding fifty-eight million five hundred thousand dollars, provided five million dollars of said authorization shall be effective July 1, 1996 OF WHICH NOT MORE THAN TWO MILLION DOLLARS SHALL BE USED FOR THE TECHNOLOGY-BASED REVOLVING LOAN FUND PROGRAM; (2) for the Department of Transportation: Urban mass transit, not exceeding one million nine hundred ninety-five thousand nine hundred two dollars; (3) for the Department of Environmental Protection: Recreation development and solid waste disposal projects, not exceeding two million dollars; (4) for the Department of Social Services: Child day care projects, elderly centers, shelter facilities for victims of domestic violence, emergency shelters and related facilities for the homeless, multipurpose human resource centers and food distribution facilities, not exceeding thirty-nine million one hundred thousand dollars, provided four million dollars of said authorization shall be effective July 1, 1994; (5) for the Department of Economic and Community Development: Housing projects, not exceeding three million dollars; (6) for the Office of Policy and Management: (A) Grants-in-aid to municipalities for a pilot demonstration program to leverage private contributions for redevelopment of designated historic preservation areas, not exceeding one million dollars; (B) grants-in-aid [to municipalities, municipal entities or nonprofit organizations which are exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended,] for urban development projects including [housing,] economic AND COMMUNITY development, transportation, environmental protection, public safety CHILDREN AND FAMILIES and social services projects and programs, INCLUDING, IN THE CASE OF ECONOMIC AND COMMUNITY DEVELOPMENT PROJECTS ADMINISTERED ON BEHALF OF THE OFFICE OF POLICY AND MANAGEMENT BY THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT, ADMINISTRATIVE COSTS INCURRED BY THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT not exceeding [ninety-two] ONE HUNDRED SEVENTY million three hundred thousand dollars, provided [seven] EIGHTY-FIVE million dollars of said authorization shall be effective July 1, 1996.

(c) Any proceeds from the sale of bonds authorized pursuant to subsections (a) and (b) of this section or of temporary notes issued in anticipation of the moneys to be derived from the sale of such bonds may be used to fund grants-in-aid to municipalities or the grant-in-aid programs of said departments, including BUT NOT LIMITED TO financial assistance and expenses authorized under chapters 128, 129, 130, 133, 136 and 298, and section 16a-40a, provided any such program shall be implemented in an eligible municipality or is for projects in other municipalities which the State Bond Commission determines will help to meet the goals set forth in section 4-66b. For the purposes of this section, "eligible municipality" means a municipality which is economically distressed within the meaning of subsection (b) of section 32-9p [or] which is classified as an urban center in any plan adopted by the General Assembly pursuant to section 16a-30 OR IN WHICH THE STATE BOND COMMISSION DETERMINES THAT THE PROJECT IN QUESTION WILL HELP MEET THE GOALS SET FORTH IN SECTION 4-66b.

(d) [As used in this subsection, "applicant" means a municipality, nonprofit corporation, as defined in section 33-421 and organized under the laws of this state, or for-profit partnership, sole proprietorship or corporation. In order to be eligible for state financial assistance in the form of a grant-in-aid to an applicant, an economic development project shall be implemented in an eligible municipality or in any other municipality if the State Bond Commission determines that the economic development project will help meet the goals set forth in section 4-66b.] Any economic development project eligible for assistance under this [subsection] SECTION may include but not be limited to: (1) The construction or rehabilitation of commercial, industrial and mixed use structures; and (2) the construction, reconstruction or repair of roads, accessways and other site improvements. The state, acting by and in the discretion of the Commissioner of Economic and Community Development, may enter into a contract [with any applicant] for state financial assistance for any eligible economic OR COMMUNITY development project in the form of a grant-in-aid. [to the applicant.] Any grant-in-aid shall be in an amount not in excess of the cost of the project for which the grant is made as determined and approved by the Commissioner of Economic and Community Development. Before entering into a grant-in-aid contract the Commissioner of Economic and Community Development shall have approved an application submitted [by the applicant] on forms provided by the commissioner. No project shall be undertaken until the Commissioner of Economic and Community Development approves the plans, specifications and estimated costs. The commissioner may adopt such regulations, in accordance with chapter 54, as are necessary for the implementation of this section.

(e) NOTWITHSTANDING ANY PROVISION OF THE GENERAL STATUTES TO THE CONTRARY, WHENEVER THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT OR THE OFFICE OF POLICY AND MANAGEMENT IS AUTHORIZED BY THE GENERAL STATUTES TO ASSESS, COLLECT OR FUND ADMINISTRATIVE EXPENSES OR SERVICE CHARGES OR OTHERWISE RECOVER COSTS OR EXPENSES INCURRED BY THE STATE IN CARRYING OUT THE PROVISIONS OF ANY ECONOMIC OR COMMUNITY DEVELOPMENT PROJECT OR PROGRAM ADMINISTERED BY THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT, EXCEPT IN THE CASE OF ADMINISTRATIVE OVERSIGHT CHARGES DESCRIBED IN SECTION 8-37tt AMOUNTS SO ASSESSED, COLLECTED OR FUNDED BY THE STATE MAY BE USED TO PAY ANY ADMINISTRATIVE EXPENSES OF THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT AND SHALL NOT BE REQUIRED TO BE USED TO PAY EXPENSES RELATED TO A PARTICULAR PROJECT OR PROGRAM.

Sec. 105. Section 17a-220 of the general statutes, as amended by sections 12 and 21 of public act 95-257, is amended by adding subsection (o) as follows:

(NEW) (o) "Capital repairs and improvements" means major repairs and improvements to an existing community residential facility to maintain the physical plant and property of such facility, which repair and improvement are reimbursable under the room and board rates established by the Department of Social Services in accordance with section 17b-244, as amended, and may be capitalized in accordance with generally accepted accounting principles.

Sec. 106. Section 17a-222 of the general statutes is amended by adding subsection (d) as follows:

(NEW) (d) The department may make community residential facility loans to organizations which own or have capital leases for existing community-based residential facilities for rehabilitation and capital repairs and improvements in amounts not less than three thousand dollars and not greater than forty thousand dollars. Notwithstanding the provisions of section 17a-225, as amended, the department may make loans pursuant to this subsection upon execution of a promissory note equal to the amount of the loan which shall provide for repayment of the loan principal and interest. The term of such loans shall be consistent with the reimbursement through the rates established by the Department of Social Services in accordance with section 17b-224.

Sec. 107. Section 22-26hh of the general statutes, as amended by section 10 of public act 95-272, is repealed and the following is substituted in lieu thereof:

The State Bond Commission shall have power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate [eighty-two] SEVENTY-EIGHT million two hundred fifty thousand dollars, [provided three million dollars of said authorization shall be effective July 1, 1996,] the proceeds of which shall be used by the Commissioner of Agriculture for the purposes of this chapter provided not more than fifty thousand dollars shall be used for the purposes of sections 22-26dd and 22-26ee AS AMENDED and not more than two million dollars shall be used for the purposes of section 22-26jjm AS AMENDED. All provisions of section 3-20, AS AMENDED or the exercise of any right or power granted thereby which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due.

Sec. 108. Section 22a-475 of the general statutes is repealed and the following is substituted in lieu thereof:

As used in this section and sections 22a-476 to 22a-483, inclusive, AS AMENDED the following terms shall have the following meanings unless the context clearly indicates a different meaning or intent: (1) "Bond anticipation note" means a note issued by a municipality in anticipation of the receipt of the proceeds of a project loan obligation or a grant account loan obligation. (2) "Clean Water Fund" means the fund created under section 22a-477. (3) "Combined sewer projects" means any project undertaken to mitigate pollution due to combined sewer and storm drain systems, including, but not limited to, components of regional water pollution control facilities undertaken to prevent the overflow of untreated wastes due to collection system inflow, provided the state share of the cost of such components is less than the state share of the estimated cost of eliminating such inflow by means of physical separation at the sources of such inflow. (4) "Commissioner" means the Commissioner of Environmental Protection. (5) "Department" means the Department of Environmental Protection. (6) "DISADVANTAGED COMMUNITIES" MEANS THE SERVICE AREA OF A PUBLIC WATER SYSTEM THAT MEETS AFFORDABILITY CRITERIA ESTABLISHED BY THE OFFICE OF POLICY AND MANAGEMENT IN ACCORDANCE WITH APPLICABLE FEDERAL REGULATIONS. (7) "DRINKING WATER FEDERAL REVOLVING LOAN ACCOUNT" MEANS THE DRINKING WATER FEDERAL REVOLVING LOAN ACCOUNT OF THE CLEAN WATER FUND CREATED UNDER SECTION 22a-477, AS AMENDED BY SECTIONS 104 TO 106, INCLUSIVE, OF THIS ACT. (8) "DRINKING WATER STATE ACCOUNT" MEANS THE DRINKING WATER STATE ACCOUNT OF THE CLEAN WATER FUND CREATED UNDER SECTION 22a-477, AS AMENDED BY SECTIONS 104 TO 106, INCLUSIVE, OF THIS ACT. (9) "ELIGIBLE DRINKING WATER PROJECT" MEANS THE PLANNING, DESIGN, DEVELOPMENT, CONSTRUCTION, REPAIR, EXTENSION, IMPROVEMENT, REMODELING, ALTERATION, REHABILITATION, RECONSTRUCTION OR ACQUISITION OF ALL OR A PORTION OF A PUBLIC WATER SYSTEM APPROVED BY THE COMMISSIONER OF PUBLIC HEALTH, IN CONSULTATION WITH THE COMMISSIONER OF ENVIRONMENTAL PROTECTION, UNDER SECTIONS 22a-475 TO 22a-483, INCLUSIVE, AS AMENDED. (10) "ELIGIBLE PROJECT" MEANS AN ELIGIBLE DRINKING WATER PROJECT OR AN ELIGIBLE WATER QUALITY PROJECT, AS APPLICABLE. [(6)] (11) "Eligible water quality project" means the planning, design, development, construction, repair, extension, improvement, remodeling, alteration, rehabilitation, reconstruction or acquisition of a water pollution control facility approved by the commissioner under sections 22a-475 to 22a-483, inclusive AS AMENDED. [(7)] (12) "Eligible [water quality] project costs" means the total costs of an eligible [water quality] project which are determined by the commissioner to be necessary and reasonable. The total costs of a project may include the costs of all labor, materials, machinery and equipment, lands, property rights and easements, interest on project loan obligations and bond anticipation notes, including costs of issuance approved by the commissioner, plans and specifications, surveys or estimates of costs and revenues, engineering and legal services, auditing and administrative expenses, and all other expenses approved by the commissioner which are incident to all or part of an eligible [water quality] project. (13) "ELIGIBLE PUBLIC WATER SYSTEM" MEANS A WATER COMPANY, AS DEFINED IN SECTION 25-32a, AS AMENDED, SERVING TWENTY-FIVE OR MORE PERSONS OR FIFTEEN OR MORE SERVICE CONNECTIONS YEAR ROUND AND NONPROFIT NONCOMMUNITY WATER SYSTEMS. [(8)] (14) "Grant account loan" means a loan to a municipality by the state from the water pollution control state account of the Clean Water Fund. [(9)] (15) "Grant account loan obligation" means bonds or other obligations issued by a municipality to evidence the permanent financing by such municipality of its indebtedness under a project funding agreement with respect to a grant account loan, made payable to the state for the benefit of the water pollution control state account of the Clean Water Fund and containing such terms and conditions and being in such form as may be approved by the commissioner. [(10)] (16) "Grant anticipation note" means any note or notes issued in anticipation of the receipt of a project grant. [(11)] (17) "Interim funding obligation" means any bonds or notes issued by a [municipality] RECIPIENT in anticipation of the issuance of project loan obligations, grant account loan obligations, or the receipt of project grants. (18) "INTENDED USE PLAN" MEANS A DOCUMENT IF REQUIRED, PREPARED BY THE COMMISSIONER OF PUBLIC HEALTH, IN CONSULTATION WITH THE COMMISSIONER, IN ACCORDANCE WITH SECTION 22a-478, AS AMENDED BY SECTION 107 OF THIS ACT. [(12)] (19) "Municipality" means any metropolitan district, town, consolidated town and city, consolidated town and borough, city, borough, village, fire and sewer district, sewer district or public authority and each municipal organization having authority to levy and collect taxes or make charges for its authorized function. [(13)] (20) "Pollution abatement facility" means any equipment, plant, treatment works, structure, machinery, apparatus, or land, or any combination thereof, which is acquired, used, constructed or operated for the storage, collection, reduction, recycling, reclamation, disposal, separation or treatment of water or wastes, or for the final disposal of residues resulting from the treatment of water or wastes, and includes, but is not limited to: Pumping and ventilating stations, facilities, plants and works; outfall sewers, interceptor sewers and collector sewers; and other real or personal property and appurtenances incident to their use or operation. (21) "PRIORITY LIST OF ELIGIBLE DRINKING WATER PROJECTS" MEANS THE PRIORITY LIST OF ELIGIBLE DRINKING WATER PROJECTS ESTABLISHED BY THE COMMISSIONER OF PUBLIC HEALTH IN ACCORDANCE WITH THE PROVISIONS OF SECTIONS 22a-475 TO 22a-483, INCLUSIVE, AS AMENDED. (22) "PRIORITY LIST OF ELIGIBLE PROJECTS" MEANS THE PRIORITY LIST OF ELIGIBLE DRINKING WATER PROJECTS OR THE PRIORITY LIST OF ELIGIBLE WATER QUALITY PROJECTS, AS APPLICABLE. [(14)] (23) "Priority list of eligible water quality projects" means the priority list of eligible water quality projects established by the commissioner in accordance with the provisions of sections 22a-475 to 22a-483, inclusive, AS AMENDED. [(15)] (24) "Program" means the municipal water quality financial assistance program, INCLUDING THE DRINKING WATER FINANCIAL ASSISTANCE PROGRAM, created under sections 22a-475 to 22a-483, inclusive, AS AMENDED. [(16)] (25) "Project grant" means a grant made to a municipality by the state from the water pollution control state account of the Clean Water Fund or the Long Island Sound clean-up account of the Clean Water Fund. [(17)] (26)"Project loan" means a loan made to a [municipality] RECIPIENT by the state from the Clean Water Fund. [(18)] (27) "Project funding agreement" means a written agreement between the state, acting by and through THE COMMISSIONER OF PUBLIC HEALTH AND the commissioner, IN CONSULTATION WITH THE DEPARTMENT OF PUBLIC UTILITY CONTROL WHEN THE RECIPIENT IS A WATER COMPANY, AS DEFINED IN SECTION 16-1, AS AMENDED and a [municipality] RECIPIENT with respect to a project grant, a grant account loan and a project loan as provided under sections 22a-475 to 22a-483, inclusive, AS AMENDED and containing such terms and conditions as may be approved by the commissioner. [(19)] (28) "Project obligation" or "project loan obligation" means bonds or other obligations issued by a [municipality] RECIPIENT to evidence the permanent financing by such [municipality] RECIPIENT of its indebtedness under a project funding agreement with respect to a project loan, made payable to the state for the benefit of the water pollution control federal revolving loan account THE DRINKING WATER FEDERAL REVOLVING LOAN ACCOUNT OR THE DRINKING WATER STATE ACCOUNT, AS APPLICABLE of the Clean Water Fund and containing such terms and conditions and being in such form as may be approved by the commissioner. (29) "PUBLIC WATER SYSTEM" MEANS A PUBLIC WATER SYSTEM, AS DEFINED FOR PURPOSES OF THE FEDERAL SAFE DRINKING WATER ACT, AS AMENDED OR SUPERSEDED. (30) "RECIPIENT" MEANS A MUNICIPALITY OR ELIGIBLE PUBLIC WATER SYSTEM, AS APPLICABLE. [(20)] (31) [0m "State bond anticipation note" means any note or notes issued by the state in anticipation of the issuance of bonds. [(21)] (32) "State grant anticipation note" means any note or notes issued by the state in anticipation of the receipt of federal grants. [(22)] (33) "Water pollution control facility" means a pollution abatement facility which stores, collects, reduces, recycles, reclaims, disposes of, separates or treats sewage, or disposes of residues from the treatment of sewage. [(23)] (34) "Water pollution control state account" means the water pollution control state account of the Clean Water Fund created under section 22a-477 AS AMENDED BY SECTIONS 104 TO 106, INCLUSIVE, OF THIS ACT. [(24)] (35) "Water pollution control federal revolving loan account" means the water pollution control federal revolving loan account of the Clean Water Fund created under section 22a-477 AS AMENDED BY SECTIONS 104 TO 106, INCLUSIVE, OF THIS ACT. [(25)] (36) "Long Island Sound clean-up account" means the Long Island Sound clean-up account created under section 22a-477 AS AMENDED BY SECTIONS 104 TO 106, INCLUSIVE, OF THIS ACT.

Sec. 109. Section 22a-476 of the general statutes is repealed and the following is substituted in lieu thereof:

It is hereby found and declared that the establishment of a municipal water quality financial assistance program to provide funds for grants for projects to improve Long Island Sound and to establish a low interest revolving loan fund and grant assistance fund to finance one hundred per cent of eligible [water quality] project costs is necessary to ensure a continuing source of funds to finance the future needs of the state and is a matter of state-wide concern affecting the health, safety and welfare of the inhabitants of the state and the quality of the environment of the state, INCLUDING THE PURITY AND ADEQUACY OF ITS DRINKING WATER and that the establishment of such a program to encourage and support the planning, development and construction of water pollution control facilities AND OF NECESSARY IMPROVEMENTS TO ELIGIBLE PUBLIC WATER SYSTEMS serves an essential public purpose. It is further found and declared that, since the federal Water Quality Act of 1987 restructures the federal grant program for municipal water pollution control projects as a program in which grant proceeds must be used to provide financial assistance in a manner which promotes preservation of the corpus of such proceeds for continuing reapplication to the purposes for which the grants were provided, since financial assistance for municipal water pollution control projects can be more effectively provided through state participation in the federal program of capitalization grants to states as set forth in Section 212 of said act and compliance with requirements for eligibility to receive capitalization grants under such program, and since the act also permits states to use a revolving fund and its chief assets as a basis for issuing bonds for further revolving fund activity, and under such an arrangement a state is able to leverage outstanding loans made from an initial set of capitalization grants and make available significant amounts of money much sooner than would otherwise have been possible, it is in the interests of the state to make use of this mechanism. IT IS FURTHER FOUND AND DECLARED THAT THE FEDERAL GOVERNMENT INTENDS TO ESTABLISH A SIMILAR REVOLVING FUND PROGRAM, FUNDED IN PART WITH FEDERAL CAPITALIZATION GRANTS, WHICH MAY BE ESTABLISHED AND OPERATED BY STATES AS PART OF THE CLEAN WATER FUND PROGRAM, IN ORDER TO PROVIDE FINANCIAL ASSISTANCE TO DEVELOP AND IMPLEMENT DRINKING WATER PROJECTS, AND THAT THEREFORE IT IS IN THE INTERESTS OF THE STATE TO PARTICIPATE IN SUCH PROGRAM. It is further found and declared that it is in the best interests of the state to plan to authorize, in addition to any other funds contemplated, the following amounts for the Long Island Sound clean-up account: Not less than five million dollars in 1991, not less than sixteen million dollars in 1992, not less than twenty million dollars in 1993, not less than sixteen million dollars in 1994, not less than twelve million dollars in 1995, not less than thirty-four million dollars in 1996, and not less than seven million dollars in 1997.

Sec. 110. Subsection (a) of section 22a-477 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) There is established and created a fund to be known as the "Clean Water Fund". There is established and created within the Clean Water Fund a water pollution control federal revolving loan account, a water pollution control state account, a Long Island Sound clean-up account A DRINKING WATER FEDERAL REVOLVING LOAN ACCOUNT, A DRINKING WATER STATE ACCOUNT and a river restoration account, which accounts shall be held separate and apart from each other.

Sec. 111. Subsection (i) of section 22a-477 of the general statutes is repealed and the following is substituted in lieu thereof:

(i) The Treasurer may establish such accounts and subaccounts within the Clean Water Fund as he deems desirable to effectuate the purposes of sections 22a-475 to 22a-483, inclusive, AS AMENDED including, but not limited to, accounts (1) to segregate a portion or portions of the corpus of the water pollution control federal revolving loan account OR THE DRINKING WATER FEDERAL REVOLVING LOAN ACCOUNT or as security for revenue bonds issued by the state for deposit in [the water pollution control federal revolving loan account] EITHER OF SUCH ACCOUNTS, (2) to segregate investment earnings on all or a portion of the water pollution control federal revolving loan account [or] THE water pollution control state account, THE DRINKING WATER FEDERAL REVOLVING LOAN ACCOUNT OR THE DRINKING WATER STATE ACCOUNT or (3) to segregate moneys in the fund that have previously been expended for the benefit of an eligible [water quality] project from moneys that are initial deposits in the account.

Sec. 112. Section 22a-477 of the general statutes is amended by adding subsections (o) to (t), inclusive, as follows:

(NEW) (o) There shall be deposited in the drinking water federal revolving loan account of the Clean Water Fund: (1) The proceeds of notes, bonds or other obligations issued by the state for the purpose of deposit therein and use in accordance with the permissible uses thereof; (2) federal capitalization grants and federal capitalization awards received by the state pursuant to the federal Safe Drinking Water Act or other related federal acts; (3) funds appropriated by the General Assembly for the purpose of deposit therein and use in accordance with the permissible uses thereof; (4) payments received from any recipient in repayment of a project loan made with moneys on deposit in the drinking water federal revolving loan account; (5) interest or other income earned on the investment of moneys in the drinking water federal revolving loan account; and (6) any additional moneys made available from any sources, public or private, for the purposes for which the drinking water federal revolving loan account has been established and for the purpose of deposit therein.

(NEW) (p) Within the drinking water federal revolving loan account there are established the following subaccounts: (1) A federal receipts subaccount, into which shall be deposited federal capitalization grants and federal capitalization awards received by the state pursuant to the federal Safe Drinking Water Act or other related federal acts; (2) a state bond receipts subaccount into which shall be deposited the proceeds of notes, bonds or other obligations issued by the state for the purpose of deposit therein; (3) a state General Fund receipts subaccount into which shall be deposited funds appropriated by the General Assembly for the purpose of deposit therein; and (4) a federal loan repayment subaccount into which shall be deposited payments received from any recipient in repayment of a project loan made from any moneys deposited in the drinking water federal revolving loan account. Moneys in each subaccount created under this subsection may be expended by the commissioner for any of the purposes of the drinking water federal revolving loan account and investment earnings of any subaccount shall be deposited in such account.

(NEW) (q) There shall be deposited in the drinking water state account of the Clean Water Fund: (1) The proceeds of notes, bonds or other obligations issued by the state for the purpose of deposit therein and use in accordance with the permissible uses thereof; (2) funds appropriated by the General Assembly for the purpose of deposit therein and use in accordance with the permissible uses thereof; (3) interest or other income earned on the investment of moneys in the drinking water state account; (4) payments received from any recipient as repayment for a project loan made with moneys on deposit in the drinking water state account; and (5) any additional moneys made available from any sources, public or private, for the purposes for which the drinking water state account has been established other than moneys on deposit in the federal receipts subaccount of the drinking water federal revolving loan account.

(NEW) (r) Within the drinking water state account there are established the following subaccounts: (1) A state bond receipts subaccount, into which shall be deposited the proceeds of notes, bonds or other obligations issued by the state for the purpose of deposit therein; (2) a General Fund receipts subaccount into which shall be deposited funds appropriated by the General Assembly for the purpose of deposit therein; and (3) a state loan repayment subaccount into which shall be deposited payments received from any recipient in repayment of a project loan made from any moneys deposited in the drinking water state account.

(NEW) (s) Amounts in the drinking water federal revolving loan account of the Clean Water Fund shall be available to the commissioner to provide financial assistance (1) to any recipient for construction of eligible drinking water projects and approved by the Department of Public Health, and (2) for any other purpose authorized by the federal Safe Drinking Water Act or other related federal acts. In providing such financial assistance to recipients, amounts in such account may be used only: (A) By the commissioner to make loans to recipients at an interest rate not exceeding one-half the rate of the average net interest cost as determined by the last previous similar bond issue by the state of Connecticut as determined by the State Bond Commission in accordance with subsection (t) of section 3-20, as amended, provided such loans shall not exceed a term of twenty years, or such longer period as may be permitted by applicable federal law, and shall have principal and interest payments commencing not later than one year after scheduled completion of the project, and provided the loan recipient shall establish a dedicated source of revenue for repayment of the loan, except to the extent that the priority list of eligible drinking water projects allows for the making of project loans to disadvantaged communities upon different terms, including reduced interest rates or an extended term, if permitted by federal law; (B) by the commissioner to guarantee, or purchase insurance for, local obligations, where such action would improve credit market access or reduce interest rates; (C) as a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the state if the proceeds of the sale of such bonds have been deposited in such account; (D) to be invested by the State Treasurer and earn interest on moneys in such account; (E) by the Commissioner of Environmental Protection and the Department of Public Health to pay for the reasonable costs of administering such account and conducting activities under the federal Safe Drinking Water Act or other related federal acts.

(NEW) (t) Amounts in the drinking water state account of the Clean Water Fund shall be available: (1) To be invested by the State Treasurer to earn interest on moneys in such account; (2) for the Commissioner of Environmental Protection to make grants to recipients in a manner provided under the federal Safe Drinking Water Act in the amounts and in the manner set forth in a project funding agreement; (3) with the concurrence of the Commissioner of Public Health for the Commissioner of Environmental Protection to make loans to recipients in amounts and in the manner set forth in a project funding agreement for planning and developing eligible drinking water projects prior to construction and permanent financing; (4) with the concurrence of the Commissioner of Public Health for the Commissioner of Environmental Protection to make loans to recipients, for terms not exceeding twenty years, for an eligible drinking water project; (5) with the concurrence of the Commissioner of Public Health for the Commissioner of Environmental Protection to pay the costs of studies and surveys to determine drinking water needs and priorities and to pay the expenses of the Department of Environmental Protection and the Department of Public Health in undertaking such studies and surveys and in administering the program; (6) for the payment of costs as agreed to by the Department of Public Health after consultation with the Secretary of the Office of Policy and Management for administration and management of the drinking water programs within the Clean Water Fund; (7) provided such amounts are not required for the purposes of such fund, for the State Treasurer to pay debt service on bonds of the state issued to fund the drinking water programs within the Clean Water Fund, or for the purchase or redemption of such bonds; and (8) for any other purpose of the drinking water programs within the Clean Water Fund and the program relating thereto.

Sec. 113. Section 22a-478 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) The commissioner shall maintain a priority list of eligible water quality projects and shall establish a system setting the priority for making project grants, grant account loans and project loans. In establishing such priority list and ranking system, the commissioner shall consider all factors he deems relevant, including but not limited to the following: (1) The public health and safety; (2) protection of environmental resources; (3) population affected; (4) attainment of state water quality goals and standards; (5) consistency with the state plan of conservation and development; (6) state and federal regulations and (7) the formation in municipalities of local housing partnerships pursuant to the provisions of section 8-336f AS AMENDED. The priority list of eligible water quality projects shall include a description of each project and its purpose, impact, cost and construction schedule, and an explanation of the manner in which priorities were established. The commissioner shall adopt an interim priority list of eligible water quality projects for the purpose of making project grants, grant account loans and project loans prior to adoption of final regulations, which priority list shall be the priority list currently in effect under subsection (c) of section 22a-439.

(b) In each fiscal year the commissioner may make project grants, grant account loans and project loans to municipalities in the order of the priority list of eligible water quality projects to the extent of moneys available therefor in the appropriate accounts of the Clean Water Fund. Each municipality undertaking an eligible water quality project may apply for and receive a project grant and loan or project grants and loans in an amount equal to one hundred per cent of the eligible water quality project costs.

(c) The funding of [a] AN ELIGIBLE WATER QUALITY project shall be pursuant to a project funding agreement between the state, acting by and through the commissioner, and the municipality undertaking such project and shall be evidenced by a project fund obligation or grant account loan obligation, or both, or an interim funding obligation of such municipality issued in accordance with section 22a-479. A project funding agreement shall be in a form prescribed by the commissioner. A nonpoint source pollution abatement project shall receive a project grant of seventy-five per cent of the cost of the project determined to be eligible by the commissioner. A combined sewer project shall receive (1) a project grant of fifty per cent of the cost of the project, which cost shall be the cost the federal Environmental Protection Agency uses in making grants pursuant to Part 35 of the federal Construction Grant Regulations and Titles II and VI of the federal Water Pollution Control Act, as amended; and (2) a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible water quality project costs. Any other ELIGIBLE WATER QUALITY project shall receive (A) a project grant of twenty per cent of the cost, which cost shall be the cost the federal Environmental Protection Agency uses for grants pursuant to said Part 35 and said Titles II and VI, and (B) a loan for the remainder of the costs of the project, not exceeding one hundred per cent of the eligible [water quality] project cost. On or after fiscal year 2007, all ELIGIBLE WATER QUALITY projects eligible for funding shall receive a loan of one hundred per cent of the eligible costs and shall not receive a project grant. All loans made in accordance with the provisions of this section FOR AN ELIGIBLE WATER QUALITY PROJECT shall bear an interest rate of two per cent per annum. The commissioner may allow any project fund obligation, grant account loan obligation or interim funding obligation FOR AN ELIGIBLE WATER QUALITY PROJECT to be repaid by a borrowing municipality prior to maturity without penalty.

(d) Each project loan and grant account loan FOR AN ELIGIBLE WATER QUALITY PROJECT shall be made pursuant to a project funding agreement between the state, acting by and through the commissioner, and such municipality, and each project loan FOR AN ELIGIBLE WATER QUALITY PROJECT shall be evidenced by a project loan obligation, each grant account loan FOR AN ELIGIBLE WATER QUALITY PROJECT shall be evidenced by a grant account loan obligation, or either may be evidenced by an interim funding obligation of such municipality issued in accordance with sections 22a-475 to 22a-483, inclusive AS AMENDED. Except as otherwise provided in said sections, each project funding agreement shall contain such terms and conditions, including provisions for default which shall be enforceable against a municipality, as shall be approved by the commissioner. Each project loan obligation, grant account loan obligation, or interim funding obligation issued pursuant to a project funding agreement FOR AN ELIGIBLE WATER QUALITY PROJECT shall bear interest at a rate of two per cent per annum. Except as otherwise provided in sections 22a-475 to 22a-483, inclusive, AS AMENDED each project loan obligation, grant account loan obligation and interim funding obligation shall be issued in accordance with the terms and conditions set forth in the project funding agreement. Notwithstanding any other provision of the general statutes, public act or special act to the contrary, each project loan obligation and grant account loan obligation FOR AN ELIGIBLE WATER QUALITY PROJECT shall mature no later than twenty years from the date of completion of the construction of the project, and shall be paid in monthly instalments of principal and interest or in monthly instalments of principal unless a finding is otherwise made by the Treasurer of the state requiring a different payment schedule. Interest on each project loan obligation and grant account loan obligation FOR AN ELIGIBLE WATER QUALITY PROJECT shall be payable monthly unless a finding is otherwise made by the Treasurer of the state requiring a different payment schedule. Principal and interest on interim funding obligations issued under a project funding agreement FOR AN ELIGIBLE WATER QUALITY PROJECT shall be payable at such time or times as provided in the project funding agreement, not exceeding six months after the date of completion of the planning and design phase or the construction phase, as applicable, of the eligible water quality project, as determined by the commissioner, and may be paid from the proceeds of a renewal note or notes, or from the proceeds of a project loan obligation or grant account loan obligation. The commissioner may allow any project loan obligation, grant account loan obligation or interim funding obligation FOR AN ELIGIBLE WATER QUALITY PROJECT to be repaid by the borrowing municipality prior to maturity without penalty.

(e) (1) The commissioner may make a project grant or a grant account loan or both to a municipality pursuant to a project funding agreement for the planning and design phase of an eligible water quality project. Principal and interest on a grant account loan for the planning and design phases of an eligible water quality project may be paid from and included in the principal amount of a loan for the construction phase of an eligible water quality project. (2) In lieu of a grant and loan pursuant to subsection (b) of this section, the commissioner, upon written request by a municipality, may make a project grant to such municipality in the amount of fifty-five per cent of the cost approved by the commissioner for the planning phase of an eligible water quality project.

(f) A project grant, a grant account loan and a project loan FOR AN ELIGIBLE WATER QUALITY PROJECT shall not be made to a municipality unless: (1) In the case of a project grant, grant account loan and project loan for the construction phase, final plans and specifications for such project are approved by the commissioner; (2) Each municipality undertaking such project provides assurances satisfactory to the commissioner that the municipality shall undertake and complete such project with due diligence and, in the case of a project loan for the construction phase, that it shall own such project and shall operate and maintain the eligible water quality project for a period and in a manner satisfactory to the commissioner after completion of such project; (3) Each municipality undertaking such project has filed with the commissioner all applications and other documents prescribed by the commissioner within time periods prescribed by the commissioner; (4) Each municipality undertaking such project has established separate accounts for the receipt and disbursement of the proceeds of such project grant, grant account loan and project loan and has agreed to maintain project accounts in accordance with generally accepted government accounting standards; (5) In any case in which an eligible water quality project shall be owned or maintained by more than one municipality, the commissioner has received evidence satisfactory to the commissioner that all such municipalities are legally required to complete their respective portions of such project; (6) Each municipality undertaking such project has agreed to comply with such audit requirements as may be imposed by the commissioner; (7) In the case of a project grant, grant account loan and project loan for the construction phase, each municipality shall assure the commissioner that it has adequate legal, institutional, managerial and financial capability to construct and operate the pollution abatement facility for the design life of the facility; and (8) In the case of a project grant, grant account loan and project loan for the construction phase awarded after July 1, 1991, each municipality shall demonstrate, to the satisfaction of the commissioner, that it has implemented an adequate operation and maintenance program for the municipal sewerage system for the design life of the facility.

(g) Notwithstanding any provision of sections 22a-475 to 22a-483, inclusive, AS AMENDED to the contrary, the commissioner may make a project grant or project grants and a grant account loan or loans in accordance with the provisions of subsection (c) of this section with respect to an eligible water quality project without regard to the priority list of eligible water quality projects if a public emergency exists which requires that the eligible water quality project be undertaken to protect the public health and safety or the natural and environmental resources of the state.

(h) THE DEPARTMENT OF PUBLIC HEALTH SHALL ESTABLISH AND MAINTAIN A PRIORITY LIST OF ELIGIBLE DRINKING WATER PROJECTS AND SHALL ESTABLISH A SYSTEM SETTING THE PRIORITY FOR MAKING PROJECT LOANS TO ELIGIBLE PUBLIC WATER SYSTEMS. IN ESTABLISHING SUCH PRIORITY LIST AND RANKING SYSTEM, THE COMMISSIONER OF PUBLIC HEALTH SHALL CONSIDER ALL FACTORS WHICH HE DEEMS RELEVANT, INCLUDING BUT NOT LIMITED TO THE FOLLOWING: (1) THE PUBLIC HEALTH AND SAFETY; (2) PROTECTION OF ENVIRONMENTAL RESOURCES; (3) POPULATION AFFECTED; (4) RISK TO HUMAN HEALTH; (5) PUBLIC WATER SYSTEMS MOST IN NEED ON A PER HOUSEHOLD BASIS ACCORDING TO APPLICABLE STATE AFFORDABILITY CRITERIA; (6) COMPLIANCE WITH THE APPLICABLE REQUIREMENTS OF THE FEDERAL SAFE DRINKING WATER ACT AND OTHER RELATED FEDERAL ACTS; (7) APPLICABLE STATE AND FEDERAL REGULATIONS. THE PRIORITY LIST OF ELIGIBLE DRINKING WATER PROJECTS SHALL INCLUDE A DESCRIPTION OF EACH PROJECT AND ITS PURPOSE, IMPACT, COST AND CONSTRUCTION SCHEDULE, AND AN EXPLANATION OF THE MANNER IN WHICH PRIORITIES WERE ESTABLISHED. THE COMMISSIONER OF PUBLIC HEALTH SHALL ADOPT AN INTERIM PRIORITY LIST OF ELIGIBLE DRINKING WATER PROJECTS FOR THE PURPOSE OF MAKING PROJECT LOANS PRIOR TO ADOPTION OF FINAL REGULATIONS, AND IN SO DOING MAY UTILIZE EXISTING RULES AND REGULATIONS OF THE DEPARTMENT RELATING TO THE PROGRAM. TO THE EXTENT REQUIRED BY APPLICABLE FEDERAL LAW, THE DEPARTMENT OF PUBLIC HEALTH AND THE COMMISSIONER OF ENVIRONMENTAL PROTECTION SHALL PREPARE ANY REQUIRED INTENDED USE PLAN WITH RESPECT TO ELIGIBLE DRINKING WATER PROJECTS; (8) CONSISTENCY WITH THE PLAN OF CONSERVATION AND DEVELOPMENT; (9) CONSISTENCY WITH THE POLICIES DELINEATED IN SECTION 22a-380; AND (10) CONSISTENCY WITH THE COORDINATED WATER SYSTEM PLAN IN ACCORDANCE WITH SUBSECTION (f) OF SECTION 25-33d, AS AMENDED.

(i) IN EACH FISCAL YEAR THE COMMISSIONER MAY MAKE PROJECT LOANS TO RECIPIENTS IN THE ORDER OF THE PRIORITY LIST OF ELIGIBLE DRINKING WATER PROJECTS TO THE EXTENT OF MONEYS AVAILABLE THEREFOR IN THE APPROPRIATE ACCOUNTS OF THE CLEAN WATER FUND. EACH RECIPIENT UNDERTAKING AN ELIGIBLE DRINKING WATER PROJECT MAY APPLY FOR AND RECEIVE A PROJECT LOAN OR LOANS IN AN AMOUNT EQUAL TO ONE HUNDRED PER CENT OF THE ELIGIBLE PROJECT COSTS.

(j) THE FUNDING OF AN ELIGIBLE DRINKING WATER PROJECT SHALL BE PURSUANT TO A PROJECT FUNDING AGREEMENT BETWEEN THE STATE, ACTING BY AND THROUGH THE COMMISSIONER OF ENVIRONMENTAL PROTECTION AND THE COMMISSIONER OF PUBLIC HEALTH, AND THE RECIPIENT UNDERTAKING SUCH PROJECT AND SHALL BE EVIDENCED BY A PROJECT FUND OBLIGATION OR AN INTERIM FUNDING OBLIGATION OF SUCH RECIPIENT ISSUED IN ACCORDANCE WITH SECTION 22a-479, AS AMENDED BY SECTION 108 OF THIS ACT. A PROJECT FUNDING AGREEMENT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER OF ENVIRONMENTAL PROTECTION AND THE COMMISSIONER OF PUBLIC HEALTH. ANY ELIGIBLE DRINKING WATER PROJECT SHALL RECEIVE A PROJECT LOAN FOR THE COSTS OF THE PROJECT. ALL LOANS MADE IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION FOR AN ELIGIBLE DRINKING WATER PROJECT SHALL BEAR AN INTEREST RATE NOT EXCEEDING ONE-HALF THE RATE OF THE AVERAGE NET INTEREST COST AS DETERMINED BY THE LAST PREVIOUS SIMILAR BOND ISSUE BY THE STATE OF CONNECTICUT AS DETERMINED BY THE STATE BOND COMMISSION IN ACCORDANCE WITH SUBSECTION (t) OF SECTION 3-20, AS AMENDED. THE COMMISSIONER MAY ALLOW ANY PROJECT FUND OBLIGATION OR INTERIM FUNDING OBLIGATION FOR AN ELIGIBLE DRINKING WATER PROJECT TO BE REPAID BY A BORROWING RECIPIENT PRIOR TO MATURITY WITHOUT PENALTY.

(k) EACH PROJECT LOAN FOR AN ELIGIBLE DRINKING WATER PROJECT SHALL BE MADE PURSUANT TO A PROJECT FUNDING AGREEMENT BETWEEN THE STATE, ACTING BY AND THROUGH THE COMMISSIONER OF ENVIRONMENTAL PROTECTION AND THE DEPARTMENT OF PUBLIC HEALTH, AND SUCH RECIPIENT, AND EACH PROJECT LOAN FOR AN ELIGIBLE DRINKING WATER PROJECT SHALL BE EVIDENCED BY A PROJECT LOAN OBLIGATION OR BY AN INTERIM FUNDING OBLIGATION OF SUCH RECIPIENT ISSUED IN ACCORDANCE WITH SECTIONS 22a-475 TO 22a-483, INCLUSIVE, AS AMENDED. EXCEPT AS OTHERWISE PROVIDED IN SAID SECTIONS 22a-475 TO 22a-483, INCLUSIVE, EACH PROJECT FUNDING AGREEMENT SHALL CONTAIN SUCH TERMS AND CONDITIONS, INCLUDING PROVISIONS FOR DEFAULT WHICH SHALL BE ENFORCEABLE AGAINST A RECIPIENT, AS SHALL BE APPROVED BY THE COMMISSIONER OF ENVIRONMENTAL PROTECTION AND THE COMMISSIONER OF PUBLIC HEALTH. EACH PROJECT LOAN OBLIGATION OR INTERIM FUNDING OBLIGATION ISSUED PURSUANT TO A PROJECT FUNDING AGREEMENT FOR AN ELIGIBLE DRINKING WATER PROJECT SHALL BEAR AN INTEREST RATE NOT EXCEEDING ONE-HALF THE RATE OF THE AVERAGE NET INTEREST COST AS DETERMINED BY THE LAST PREVIOUS SIMILAR BOND ISSUE BY THE STATE OF CONNECTICUT AS DETERMINED BY THE STATE BOND COMMISSION IN ACCORDANCE WITH SUBSECTION (t) OF SECTION 3-20, AS AMENDED. EXCEPT AS OTHERWISE PROVIDED IN SAID SECTIONS 22a-475 TO 22a-483, INCLUSIVE, EACH PROJECT LOAN OBLIGATION AND INTERIM FUNDING OBLIGATION SHALL BE ISSUED IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE PROJECT FUNDING AGREEMENT. NOTWITHSTANDING ANY OTHER PROVISION OF THE GENERAL STATUTES, PUBLIC ACT OR SPECIAL ACT TO THE CONTRARY, EACH PROJECT LOAN OBLIGATION FOR AN ELIGIBLE DRINKING WATER PROJECT SHALL MATURE NO LATER THAN TWENTY YEARS FROM THE DATE OF COMPLETION OF THE CONSTRUCTION OF THE PROJECT, AND SHALL BE PAID IN MONTHLY INSTALMENTS OF PRINCIPAL AND INTEREST OR IN MONTHLY INSTALMENTS OF PRINCIPAL UNLESS A FINDING IS OTHERWISE MADE BY THE STATE TREASURER REQUIRING A DIFFERENT PAYMENT SCHEDULE. INTEREST ON EACH PROJECT LOAN OBLIGATION FOR AN ELIGIBLE DRINKING WATER PROJECT SHALL BE PAYABLE MONTHLY UNLESS A FINDING IS OTHERWISE MADE BY THE STATE TREASURER REQUIRING A DIFFERENT PAYMENT SCHEDULE. PRINCIPAL AND INTEREST ON INTERIM FUNDING OBLIGATIONS ISSUED UNDER A PROJECT FUNDING AGREEMENT FOR AN ELIGIBLE DRINKING WATER PROJECT SHALL BE PAYABLE AT SUCH TIME OR TIMES AS PROVIDED IN THE PROJECT FUNDING AGREEMENT, NOT EXCEEDING SIX MONTHS AFTER THE DATE OF COMPLETION OF THE PLANNING AND DESIGN PHASE OR THE CONSTRUCTION PHASE, AS APPLICABLE, OF THE ELIGIBLE DRINKING WATER PROJECT, AS DETERMINED BY THE COMMISSIONER OF ENVIRONMENTAL PROTECTION AND THE COMMISSIONER OF PUBLIC HEALTH, AND MAY BE PAID FROM THE PROCEEDS OF A RENEWAL NOTE OR NOTES, OR FROM THE PROCEEDS OF A PROJECT LOAN OBLIGATION. THE COMMISSIONER MAY ALLOW ANY PROJECT LOAN OBLIGATION OR INTERIM FUNDING OBLIGATION FOR AN ELIGIBLE DRINKING WATER PROJECT TO BE REPAID BY THE BORROWING RECIPIENT PRIOR TO MATURITY WITHOUT PENALTY WITH THE CONCURRENCE OF THE COMMISSIONER OF PUBLIC HEALTH.

(l) THE COMMISSIONER OF ENVIRONMENTAL PROTECTION AND THE COMMISSIONER OF PUBLIC HEALTH MAY MAKE A PROJECT LOAN TO A RECIPIENT PURSUANT TO A PROJECT FUNDING AGREEMENT FOR AN ELIGIBLE DRINKING WATER PROJECT FOR THE PLANNING AND DESIGN PHASE OF AN ELIGIBLE PROJECT, TO THE EXTENT PROVIDED BY THE FEDERAL SAFE DRINKING WATER ACT, AS AMENDED. PRINCIPAL AND INTEREST ON A PROJECT LOAN FOR THE PLANNING AND DESIGN PHASES OF AN ELIGIBLE DRINKING WATER PROJECT MAY BE PAID FROM AND INCLUDED IN THE PRINCIPAL AMOUNT OF A LOAN FOR THE CONSTRUCTION PHASE OF AN ELIGIBLE DRINKING WATER PROJECT.

(m) A PROJECT LOAN FOR AN ELIGIBLE DRINKING WATER PROJECT SHALL NOT BE MADE TO A RECIPIENT UNLESS: (1) IN THE CASE OF A PROJECT LOAN FOR THE CONSTRUCTION PHASE, FINAL PLANS AND SPECIFICATIONS FOR SUCH PROJECT ARE APPROVED BY THE COMMISSIONER OF PUBLIC HEALTH, AND WHEN THE RECIPIENT IS A WATER COMPANY, AS DEFINED IN SECTION 16-1, AS AMENDED, WITH THE CONCURRENCE OF THE DEPARTMENT OF PUBLIC UTILITY CONTROL, AND WITH THE APPROVAL OF THE COMMISSIONER OF ENVIRONMENTAL PROTECTION FOR CONSISTENCY WITH FINANCIAL REQUIREMENTS OF THE GENERAL STATUTES, REGULATIONS AND RESOLUTIONS; (2) EACH RECIPIENT UNDERTAKING SUCH PROJECT PROVIDES ASSURANCES SATISFACTORY TO THE COMMISSIONER OF PUBLIC HEALTH AND THE COMMISSIONER OF ENVIRONMENTAL PROTECTION THAT THE RECIPIENT SHALL UNDERTAKE AND COMPLETE SUCH PROJECT WITH DUE DILIGENCE AND, IN THE CASE OF A PROJECT LOAN FOR THE CONSTRUCTION PHASE, THAT IT SHALL OWN SUCH PROJECT AND SHALL OPERATE AND MAINTAIN THE ELIGIBLE DRINKING WATER PROJECT FOR A PERIOD AND IN A MANNER SATISFACTORY TO THE DEPARTMENT OF PUBLIC HEALTH AFTER COMPLETION OF SUCH PROJECT; (3) EACH RECIPIENT UNDERTAKING SUCH PROJECT HAS FILED WITH THE COMMISSIONER OF PUBLIC HEALTH ALL APPLICATIONS AND OTHER DOCUMENTS PRESCRIBED BY THE COMMISSIONER OF ENVIRONMENTAL PROTECTION, THE DEPARTMENT OF PUBLIC UTILITY CONTROL AND THE COMMISSIONER OF PUBLIC HEALTH WITHIN TIME PERIODS PRESCRIBED BY THE COMMISSIONER OF PUBLIC HEALTH; (4) EACH RECIPIENT UNDERTAKING SUCH PROJECT HAS ESTABLISHED SEPARATE ACCOUNTS FOR THE RECEIPT AND DISBURSEMENT OF THE PROCEEDS OF SUCH PROJECT LOAN AND HAS AGREED TO MAINTAIN PROJECT ACCOUNTS IN ACCORDANCE WITH GENERALLY ACCEPTED GOVERNMENT ACCOUNTING STANDARDS OR UNIFORM SYSTEM OF ACCOUNTS, AS APPLICABLE; (5) IN ANY CASE IN WHICH AN ELIGIBLE DRINKING WATER PROJECT SHALL BE OWNED OR MAINTAINED BY MORE THAN ONE RECIPIENT, THE COMMISSIONER HAS RECEIVED EVIDENCE SATISFACTORY TO HIM THAT ALL SUCH RECIPIENTS ARE LEGALLY REQUIRED TO COMPLETE THEIR RESPECTIVE PORTIONS OF SUCH PROJECT; (6) EACH RECIPIENT UNDERTAKING SUCH PROJECT HAS AGREED TO COMPLY WITH SUCH AUDIT REQUIREMENTS AS MAY BE IMPOSED BY THE COMMISSIONER; AND (7) IN THE CASE OF A PROJECT LOAN FOR THE CONSTRUCTION PHASE, EACH RECIPIENT SHALL ASSURE THE COMMISSIONER OF ENVIRONMENTAL PROTECTION, THE DEPARTMENT OF PUBLIC UTILITY CONTROL, AS REQUIRED, AND THE COMMISSIONER OF PUBLIC HEALTH THAT IT HAS ADEQUATE LEGAL, INSTITUTIONAL, TECHNICAL, MANAGERIAL AND FINANCIAL CAPABILITY TO ENSURE COMPLIANCE WITH THE REQUIREMENTS OF APPLICABLE FEDERAL LAW, EXCEPT TO THE EXTENT OTHERWISE PERMITTED BY FEDERAL LAW.

(n) NOTWITHSTANDING ANY PROVISION OF SECTIONS 22a-475 TO 22a-483, INCLUSIVE, AS AMENDED, TO THE CONTRARY, THE COMMISSIONER OF PUBLIC HEALTH WITH THE CONCURRENCE OF THE COMMISSIONER OF ENVIRONMENTAL PROTECTION MAY MAKE A PROJECT LOAN OR LOANS IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (j) OF THIS SECTION WITH RESPECT TO AN ELIGIBLE DRINKING WATER PROJECT WITHOUT REGARD TO THE PRIORITY LIST OF ELIGIBLE DRINKING WATER PROJECTS IF A PUBLIC DRINKING WATER SUPPLY EMERGENCY EXISTS, PURSUANT TO SECTION 25-32b, AS AMENDED, WHICH REQUIRES THAT THE ELIGIBLE DRINKING WATER PROJECT BE UNDERTAKEN TO PROTECT THE PUBLIC HEALTH AND SAFETY.

[(h)] (o) The commissioner shall prepare an annual report to the Governor within ninety days after the completion of each fiscal year which includes a list of project funding agreements entered into during the fiscal year then ended, the estimated year that funding will be available for specific [water quality] projects listed on [the] EACH priority list of eligible [water quality] projects and a financial report on the condition of the Clean Water Fund for the fiscal year then ended, which shall include a certification by the commissioner of any amounts to become available for payment of debt service or for the purchase or redemption of bonds during the next succeeding fiscal year.

Sec. 114. Section 22a-479 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) A municipality may authorize and approve (1) the execution and delivery of project funding agreements and (2) the issuance and sale of project obligations, grant account loan obligations and interim funding obligations, in accordance with such statutory and charter requirements as govern the authorization and approval of borrowings and the making of contracts generally by the municipality. Project loan obligations, grant account loan obligations and interim funding obligations shall be duly executed and accompanied by an approving legal opinion of bond counsel of recognized standing in the field of municipal law whose opinions are generally accepted by purchasers of municipal bonds and shall be subject to the debt limitation provisions of section 7-374; except that project loan obligations, grant account loan obligations and interim funding obligations issued in order to meet the requirements of any abatement order of the commissioner shall not be subject to the debt limitation provisions of section 7-374, provided the municipality files a certificate, signed by its chief fiscal officer, with the commissioner demonstrating to the satisfaction of the commissioner that the municipality has a plan for levying a system of charges, assessments or other revenues which are sufficient, together with other available funds of the municipality, to repay such obligations as the same become due and payable.

(b) Each [municipality] RECIPIENT which enters into a project funding agreement shall protect, defend and hold harmless the state, its agencies, departments, agents and employees from and against any and all claims, suits, actions, demands, costs and damages arising from or in connection with the performance or nonperformance by the [municipality] RECIPIENT, or any of its officers, employees or agents, of the [municipality's] RECIPIENT'S obligations under any project funding agreement as such project funding agreement may be amended or supplemented from time to time. Each such [municipality] RECIPIENT may insure against the liability imposed by this subsection through any insurance company organized within or without this state authorized to write such insurance in this state or may elect to act as self-insurer of such liability, provided such indemnity shall not be limited by any such insurance coverage.

(c) Whenever a [municipality] RECIPIENT has entered into a project funding agreement and has authorized the issuance of project loan obligations or grant account loan obligations, it may authorize the issuance of interim funding obligations. Proceeds from the issuance and sale of interim funding obligations shall be used to temporarily finance an eligible [water quality] project pending receipt of the proceeds of a project loan obligation, a grant account loan obligation or project grant. Such interim funding obligations may be issued and sold to the state for the benefit of the Clean Water Fund or issued and sold to any other lender on such terms and in such manner as shall be determined by a [municipality] RECIPIENT. Such interim funding obligations may be renewed from time to time by the issuance of other notes, provided the final maturity of such notes shall not exceed six months from the date of completion of the planning and design phase or the construction phase, as applicable, of an eligible [water quality] project, as determined by the commissioner. Such notes and any renewals OF A MUNICIPALITY shall not be subject to the requirements and limitations set forth in sections 7-378 and 7-378a. The provisions of section 7-374 shall apply to such notes and any renewals thereof OF A MUNICIPALITY; except that project loan obligations, grant account loan obligations and interim funding obligations issued in order to meet the requirements of an abatement order of the commissioner shall not be subject to the debt limitation provisions of section 7-374, provided the municipality files a certificate, signed by its chief fiscal officer, with the commissioner demonstrating to the satisfaction of the commissioner that the municipality has a plan for levying a system of charges, assessments or other revenues sufficient, together with other available funds of the municipality, to repay such obligations as the same become due and payable. The officer or agency authorized by law or by vote of the [municipality] RECIPIENT to issue such interim funding obligations shall, within any limitation imposed by such law or vote, determine the date, maturity, interest rate, form, manner of sale and other details of such obligations. Such obligations may bear interest or be sold at a discount and the interest or discount on such obligations, including renewals thereof, and the expense of preparing, issuing and marketing them may be included as a part of the cost of an eligible [water quality] project. Upon the issuance of a project loan obligation or grant account loan obligation, the proceeds thereof, to the extent required, shall be applied forthwith to the payment of the principal of and interest on all interim funding obligations issued in anticipation thereof and upon receipt of a project grant, the proceeds thereof, to the extent required, shall be applied forthwith to the payment of the principal of and interest on all grant anticipation notes issued in anticipation thereof or, in either case, shall be deposited in trust for such purpose with a bank or trust company, which may be the bank or trust company, if any, at which such obligations are payable.

(d) Project loan obligations, grant account loan obligations, interim funding obligations or any obligation of a municipality that satisfies the requirements of Title VI of the federal Water Pollution Control Act OR THE FEDERAL SAFE DRINKING WATER ACT OR OTHER RELATED FEDERAL ACT may, as determined by the commissioner, be general obligations of the issuing municipality and in such case each such obligation shall recite that the full faith and credit of the issuing municipality are pledged for the payment of the principal thereof and interest thereon. To the extent a municipality is authorized pursuant to sections 22a-475 to 22a-483, inclusive, AS AMENDED to issue project loan obligations or interim funding obligations, such obligations may be secured by a pledge of revenues derived from its sewer system OR PUBLIC WATER SUPPLY SYSTEM, AS APPLICABLE. In any such case, such pledge shall be valid and binding from the time when such pledge is made. Any revenues or other receipts, funds or moneys so pledged and thereafter received by the municipality shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the municipality, irrespective of whether such parties have notice thereof. Neither the project loan obligation, interim funding obligation, project funding agreement nor any other instrument by which a pledge is created need be recorded. All securities or other investments of moneys of the state permitted or provided for under sections 22a-475 to 22a-483, inclusive, AS AMENDED may, upon the determination of the State Treasurer, be purchased and held in fully marketable form, subject to provision for any registration in the name of the state. Securities or other investments at any time purchased, held or owned by the state may, upon the determination of the State Treasurer and upon delivery to the state, be accompanied by such documentation, including approving bond opinion, certification and guaranty as to signatures and certification as to absence of litigation, and such other or further documentation as shall from time to time be required in the municipal bond market or required by the state.

(e) Notwithstanding the provisions of the general statutes, any special act or any municipal charter, a municipality may, upon the approval of its legislative body and (1) its water pollution control authority or sewer authority, if any, appropriate funds and authorize project loan obligations, interim funding obligations, revenue bonds, notes or other obligations of the municipality paid and secured solely by a pledge of revenues of the municipality and the water pollution control authority or sewer authority, if any, derived from its sewer system, to pay for and finance the total project costs OF AN ELIGIBLE WATER QUALITY PROJECT, pursuant to a project loan and project grant agreement between the municipality and the state pursuant to sections 22a-475 to 22a-483, inclusive AS AMENDED, AND (2) ITS WATER AUTHORITY, IF ANY, APPROPRIATE FUNDS AND AUTHORIZE PROJECT LOAN OBLIGATIONS, INTERIM FUNDING OBLIGATIONS, REVENUE BONDS, NOTES OR OTHER OBLIGATIONS OF THE MUNICIPALITY PAID AND SECURED SOLELY BY A PLEDGE OF REVENUES OF THE MUNICIPALITY AND THE WATER AUTHORITY, IF ANY, DERIVED FROM ITS PUBLIC WATER SUPPLY SYSTEM, TO PAY FOR AND FINANCE THE TOTAL PROJECT COSTS OF AN ELIGIBLE WATER QUALITY PROJECT, PURSUANT TO A PROJECT LOAN AGREEMENT BETWEEN THE MUNICIPALITY AND THE STATE PURSUANT TO SECTIONS 22a-475 TO 22a-483, INCLUSIVE, AS AMENDED. The provisions of chapter 103 shall apply to the bonds, notes or other obligations authorized by this section, to the extent such section is not inconsistent with this subsection.

(f) ANY RECIPIENT WHICH IS NOT A MUNICIPALITY SHALL EXECUTE AND DELIVER PROJECT LOAN OBLIGATIONS AND INTERIM FINANCING OBLIGATIONS IN ACCORDANCE WITH APPLICABLE LAW AND IN SUCH FORM AND WITH SUCH REQUIREMENTS AS MAY BE DETERMINED BY THE COMMISSIONER. THE COMMISSIONER OF PUBLIC HEALTH AND THE DEPARTMENT OF PUBLIC UTILITY CONTROL AS REQUIRED BY SECTION 16-19e SHALL REVIEW AND APPROVE ALL COSTS THAT ARE NECESSARY AND REASONABLE PRIOR TO THE AWARD OF THE PROJECT FUNDING AGREEMENT. THE DEPARTMENT OF PUBLIC UTILITY CONTROL, WHERE APPROPRIATE, SHALL INCLUDE THESE COSTS IN THE RECIPIENT'S RATE STRUCTURE IN ACCORDANCE WITH SECTION 16-19e.

Sec. 115. Section 22a-482 of the general statutes is repealed and the following is substituted in lieu thereof:

The commissioner OF ENVIRONMENTAL PROTECTION AND THE COMMISSIONER OF PUBLIC HEALTH shall adopt regulations in accordance with the provisions of chapter 54 to carry out the purposes of sections 22a-475 to 22a-483, inclusive AS AMENDED. PENDING THE ADOPTION OF REGULATIONS CONCERNING THE DRINKING WATER ACCOUNTS, AS DEFINED IN SUBDIVISIONS (7) AND (8) OF SECTION 22a-475, AS AMENDED BY SECTION 102 OF THIS ACT, THE REGULATIONS IN EFFECT AND APPLICABLE TO THE MANAGEMENT AND OPERATION OF THE CLEAN WATER FUND SHALL BE UTILIZED BY THE COMMISSIONER OF PUBLIC HEALTH AND THE COMMISSIONER OF ENVIRONMENTAL PROTECTION IN CONNECTION WITH THE OPERATION OF THE DRINKING WATER ACCOUNTS, AS DEFINED IN SUBDIVISIONS (7) AND (8) OF SAID SECTION 22a-475.

Sec. 116. Subsection (c) of section 22a-483 of the general statutes is repealed and the following is substituted in lieu thereof:

(c) All provisions of section 3-20, AS AMENDED or the exercise of any right or power granted thereby which are not inconsistent with the provisions of sections 22a-475 to 22a-483, inclusive, AS AMENDED are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to said sections, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 AS AMENDED and from time to time renewed. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to sections 22a-475 to 22a-483, inclusive, AS AMENDED may be general obligations of the state and in such case the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due. Such general obligation bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such general obligation bonds. The state, acting by and through the State Bond Commission, is hereby authorized to issue from time to time general obligation bonds in such sums as is appropriate and necessary to meet the state's matching requirement for eligibility pursuant to the federal Water Quality Act of 1987 OR THE FEDERAL SAFE DRINKING WATER ACT OR OTHER SIMILAR FEDERAL ACT, provided such sums shall not exceed the aggregate principal amounts of bonds authorized pursuant to subsection (a) of this section. Whenever such bonds are so authorized, the state's obligations shall be issued on such terms and conditions as shall be determined and established by the Treasurer. Such bonds shall bear such rate of interest as the treasurer shall determine, by reference to such open market indices for obligations having similar terms and characteristics as the Treasurer shall determine relevant, in order to arrive at a taxable rate of interest on the obligations of the state issued and sold to the Clean Water Fund. The Treasurer shall deliver such bonds to the Clean Water Fund upon the receipt of evidence from the Environmental Protection Agency evidencing satisfaction by the state of its federal matching requirement pursuant to the federal Water Quality Act of 1987 OR THE FEDERAL SAFE DRINKING WATER ACT OR OTHER SIMILAR FEDERAL ACT.

Sec. 117. Subsection (e) of section 22a-483 of the general statutes is repealed and the following is substituted in lieu thereof:

(e) Any pledge made by the state pursuant to sections 22a-475 to 22a-483, inclusive, AS AMENDED is a pledge within the meaning and for all purposes of title 42a and shall be valid and binding from the time when the pledge is made, and any revenues or other receipts, funds or moneys so pledged and thereafter received by the state shall be subject immediately to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the state, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded. ANY PLEDGE MADE BY THE STATE PURSUANT TO SECTIONS 22a-475 TO 22a-483, INCLUSIVE, AS AMENDED, TO SECURE REVENUE BONDS ISSUED TO FINANCE ELIGIBLE WATER QUALITY PROJECTS SHALL SECURE ONLY REVENUE BONDS ISSUED FOR SUCH PURPOSE AND ANY SUCH PLEDGE MADE BY THE STATE TO SECURE REVENUE BONDS ISSUED TO FINANCE ELIGIBLE DRINKING WATER PROJECTS SHALL SECURE ONLY REVENUE BONDS ISSUED FOR SUCH PURPOSE.

Sec. 118. Subsection (i) of section 22a-483 of the general statutes is repealed and the following is substituted in lieu thereof:

(i) The proceedings under which bonds are authorized to be issued may, subject to the provisions of the general statutes, contain any or all of the following: (1) Provisions respecting custody of the proceeds from the sale of the bonds and any bond anticipation notes, including any requirements that such proceeds be held separate from or not be commingled with other funds of the state; (2) provisions for the investment and reinvestment of bond proceeds utilized to pay project costs and for the disposition of any excess bond proceeds or investment earnings thereon; (3) provisions for the execution of reimbursement agreements or similar agreements in connection with credit facilities, including, but not limited to, letters of credit or policies of bond insurance, remarketing agreements and agreements for the purpose of moderating interest rate fluctuations; (4) provisions for the collection, custody, investment, reinvestment and use of the pledged revenues or other receipts, funds or moneys pledged therefor as provided in sections 22a-475 to 22a-483, inclusive [4m, [0m AS AMENDED; (5) provisions regarding the establishment and maintenance of reserves, sinking funds and any other funds and accounts as shall be approved by the State Bond Commission in such amounts as may be established by the State Bond Commission, and the regulation and disposition thereof, or the establishment of a reserve fund of the state into which may be deposited any moneys appropriated and made available by the state for such fund, any proceeds of the sale of bonds or notes, to the extent provided in the resolution of the state authorizing the issuance thereof, and any other moneys which may be made available to the state for the purpose of such fund from any source whatever and, in lieu of the deposit of any such moneys, evidence by the state of the satisfaction of a federal matching requirement on the part of the state pursuant to the federal Water Quality Act of 1987 OR THE FEDERAL SAFE DRINKING WATER ACT OR OTHER RELATED FEDERAL ACT, AS APPLICABLE, including requirements that any such funds and accounts be held separate from or not be commingled with other funds of the state; (6) covenants for the establishment of pledged revenue coverage requirements for the bonds and state bond anticipation notes; (7) provisions for the issuance of additional bonds on a parity with bonds theretofore issued, including establishment of coverage requirements with respect thereto as herein provided; (8) provisions regarding the rights and remedies available in case of a default to bondowners, noteowners or any trustee under any contract, loan agreement, document, instrument or trust indenture, including the right to appoint a trustee to represent their interests upon occurrence of an event of default, as defined in said proceedings, provided that if any bonds or state bond anticipation notes shall be secured by a trust indenture, the respective owners of such bonds or notes shall have no authority except as set forth in such trust indenture to appoint a separate trustee to represent them; (9) provisions for the payment of rebate amounts; and (10) provisions or covenants of like or different character from the foregoing which are consistent with sections 22a-475 to 22a-483, inclusive, AS AMENDED and which the State Bond Commission determines in such proceedings are necessary, convenient or desirable in order to better secure the bonds or state bond anticipation notes, or will tend to make the bonds or state bond anticipation notes more marketable, and which are in the best interests of the state. Any provision which may be included in proceedings authorizing the issuance of bonds hereunder may be included in an indenture of trust duly approved in accordance with sections 22a-475 to 22a-483, inclusive, AS AMENDED which secures the bonds and any notes issued in anticipation thereof, and in such case the provisions of such indenture shall be deemed to be a part of such proceedings as though they were expressly included therein.

Sec. 119. Subsection (a) of section 32-23ss of the general statutes, as amended by section 1 of public act 95-250, is repealed and the following is substituted in lieu thereof:

(a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate [five] TWO million dollars.

Sec. 120. Section 32-230 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) There is established a fund to be known as the "Economic Assistance Bond Fund". The fund shall contain any moneys required by law to be deposited in the fund and shall be accounted for separately from all other moneys, funds and accounts.

(b) The proceeds from the sale of bonds and any bond anticipation notes issued for the purposes of sections 32-220 to 32-234, inclusive, AS AMENDED shall be deposited into the fund, except for any refunding bonds and bonds issued to refund bond anticipation notes. The proceeds from bonds and bond anticipation notes deposited into the fund shall be applied to pay the financial assistance provided for in said sections and administrative expenses and other costs incurred by the department for bond-financed state programs authorized by said sections, the State Bond Commission in accordance with section 3-20, AS AMENDED and the act or acts pursuant to which such bonds and bond anticipation notes were issued.

[(c) The amount expended by the department for administrative expenses and other costs shall annually not exceed one and one-half per cent of the amount authorized by the General Assembly for the purposes of sections 32-220 to 32-234, inclusive.]

Sec. 121. This act shall take effect July 1, 1996.

Approved May 31, 1996. Effective July 1, 1996.

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