Bill Text: CT SB00363 | 2012 | General Assembly | Introduced

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Bill Title: An Act Concerning Economic Opportunity.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2012-03-09 - Public Hearing 03/15 [SB00363 Detail]

Download: Connecticut-2012-SB00363-Introduced.html

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General Assembly		Raised Bill No. 363
February Session, 2012		LCO No. 1914
		*01914_______BA_*
Referred to Committee on Banks
Introduced by:
(BA)

AN ACT CONCERNING ECONOMIC OPPORTUNITY.

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

Section 1. Subsection (l) of section 32-11a of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2012):

(l) (1) The authority may establish one or more subsidiaries to stimulate, encourage and carry out the remediation, development and financing of contaminated property within this state, in coordination with the Department of Energy and Environmental Protection, [and] to provide financial, development and environmental expertise to others including, but not limited to, municipalities, interested in or undertaking such remediation, development or financing which are determined to be public purposes for which public funds may be expended. The authority may also establish one or more subsidiaries to act as an infrastructure and economic development bank to provide financing for the development of (A) municipal and state infrastructure, (B) nonprofit infrastructure, and (C) private infrastructure. Each subsidiary shall be deemed a quasi-public agency for purposes of chapter 12. The authority may transfer to any such subsidiary any moneys and real or personal property. Each such subsidiary shall have all the privileges, immunities, tax exemptions and other exemptions of the authority.

(2) Each [such] subsidiary established to stimulate, encourage and carry out the remediation, development and financing of contaminated property or to provide financial, development and environmental expertise to others interested in or undertaking such remediation may sue and shall be subject to suit provided the liability of each such subsidiary shall be limited solely to the assets, revenues and resources of such subsidiary and without recourse to the general funds, revenues, resources or any other assets of the authority or any other subsidiary. No such subsidiary may provide for any bonded indebtedness of the state for the cost of any liability or contingent liability for the remediation of contaminated real property unless such indebtedness is specifically authorized by an act of the General Assembly. Each such subsidiary shall have the power to do all acts and things necessary or convenient to carry out the purposes of this subsection, section 12-81r, subsection (h) of section 22a-133m, subsection (a) of section 22a-133x, sections 22a-133aa, 22a-133bb and 22a-133dd, subsection (l) of section 22a-134, and sections 22a-452f, 32-7e and 32-23pp to 32-23rr, inclusive, including, but not limited to, (i) solicit, receive and accept aid, grants or contributions from any source of money, property or labor or other things of value, to be held, used and applied to carry out the purposes of this subsection, section 12-81r, subsection (h) of section 22a-133m, subsection (a) of section 22a-133x, sections 22a-133aa, 22a-133bb and 22a-133dd, subsection (l) of section 22a-134, and sections 22a-452f, 32-7e and 32-23pp to 32-23rr, inclusive, subject to the conditions upon which such grants and contributions may be made, including but not limited to, gifts, grants or loans, from any department, agency or quasi-public agency of the United States or the state; (ii) enter into agreements with persons upon such terms and conditions as are consistent with the purposes of such subsidiary to acquire or facilitate the remediation, development or financing of contaminated real or personal property; (iii) to acquire, take title, lease, purchase, own, manage, hold and dispose of real and personal property and lease, convey or deal in or enter into agreements with respect to such property; (iv) examine, inspect, rehabilitate, remediate or improve real or personal property or engage others to do so on such subsidiary's behalf, or enter into contracts therefor; (v) mortgage, convey or dispose of its assets and pledge its revenues in order to secure any borrowing, for the purpose of financing, refinancing, rehabilitating, remediating, improving or developing its assets, provided each such borrowing or mortgage shall be a special obligation of such subsidiary, which obligation may be in the form of notes, bonds, bond anticipation notes and other obligations issued by or to such subsidiary to the extent permitted under this chapter to fund and refund the same and provide for the rights of the holders [thereof] of such notes, bonds, bond anticipation notes and other obligations, and to secure the same by pledge of revenues, notes or other assets and which shall be payable solely from the assets, revenues and other resources of such subsidiary; (vi) to create real estate investment trusts or similar entities, [or to] become a member of a limited liability company or [to become] a partner in limited or general partnerships, or establish other contractual arrangements with private and public sector entities as such subsidiary deems necessary to remediate, develop or finance environmentally contaminated property in the state; and (vii) any other powers enumerated in subsection (e) of section 32-23 necessary or appropriate to carry out the purposes of this subsection, subsection (h) of section 22a-133m, subsection (a) of section 22a-133x, sections 22a-133aa, 22a-133bb and 22a-133dd, subsection (l) of section 22a-134, and sections 22a-452f, 32-7e, and 32-23pp to 32-23rr, inclusive. The board of directors, executive director, officers and staff of the authority may serve as members of any advisory or other board which may be established to carry out the purposes of this subsection, subsection (h) of section 22a-133m, subsection (a) of section 22a-133x, sections 22a-133aa, 22a-133bb and 22a-133dd, subsection (l) of section 22a-134, and sections 22a-452f, 32-7e, and 32-23pp to 32-23rr, inclusive.

(3) Each subsidiary established to act as an infrastructure and economic development bank may sue and shall be subject to suit provided the liability of each such subsidiary shall be limited solely to the assets, revenues and resources of such subsidiary and without recourse to the general funds, revenues, resources or any other assets of the authority or any other subsidiary. No such subsidiary may provide for any bonded indebtedness of the state for the cost of supporting infrastructure and economic development, except as permitted under section 3 of this act, unless such indebtedness is specifically authorized by an act of the General Assembly. Each such subsidiary shall have the power to do all acts and things necessary or convenient to carry out the purposes of this subsection, including, but not limited to, (A) solicit, receive and accept aid, grants or contributions from any source of money, property or labor or other things of value, to be held, used and applied to carry out the purposes of the subsidiary, subject to the conditions upon which such grants and contributions may be made, including, but not limited to, gifts, grants or loans, from any department, agency or quasi-public agency of the United States or the state; (B) enter into agreements with persons upon such terms and conditions as are consistent with the purposes of such subsidiary to provide financing for infrastructure and economic development projects; (C) acquire, take title, lease, purchase, own, manage, hold and dispose of real and personal property and lease, convey or deal in or enter into agreements with respect to such property; (D) mortgage, convey or dispose of its assets and pledge its revenues in order to secure any borrowing, for the purpose of financing, refinancing, rehabilitating, remediating, improving or developing its assets, provided each such borrowing or mortgage shall be a special obligation of such subsidiary, which obligation may be in the form of notes, bonds, bond anticipation notes and other obligations issued by or to such subsidiary to the extent permitted under this chapter to fund and refund the same and provide for the rights of the holders of such notes, bonds, bond anticipation notes and other obligations, and to secure the same by pledge of revenues, notes or other assets and which shall be payable solely from the assets, revenues and other resources of such subsidiary; (E) to create real estate investment trusts or similar entities, become a member of a limited liability company or a partner in limited or general partnerships, or establish other contractual arrangements with private and public sector entities as such subsidiary deems necessary to support infrastructure and economic development. The board of directors, executive director, officers and staff of the authority may serve as members of any advisory or other board which may be established to carry out the purposes of this subsection.

[(3)] (4) Each such subsidiary established pursuant to subdivision (2) or (3) of this subsection shall act through its board of directors at least one-half of which shall be members of the board of directors of the authority or their designees or officers or employees of the authority. A resolution of the authority shall prescribe the purposes for which each such subsidiary is formed.

[(4)] (5) The provisions of section 1-125 and this subsection shall apply to any officer, director, designee, or employee appointed as a member, director, or officer of any such subsidiary established pursuant to subdivision (2) or (3) of this subsection. Neither any such persons so appointed nor the directors, officers or employees of the authority shall be personally liable for the debts, obligations, or liabilities of any such subsidiary as provided in said section 1-125. Each subsidiary shall and the authority may provide for the indemnification to protect, save harmless and indemnify such officer, director, designee or employee as provided by said section 1-125.

[(5)] (6) The authority or any such subsidiary established pursuant to subdivision (2) or (3) of this subsection may take such actions as are necessary to comply with the provisions of the Internal Revenue Code of 1986 or any subsequent corresponding internal revenue code of the United States, as from time to time amended, to qualify and maintain any such subsidiary as a corporation exempt from taxation under said Internal Revenue Code.

[(6)] (7) The authority may make loans or grants to, and may guarantee specified obligations of, any such subsidiary established pursuant to subdivision (2) or (3) of this subsection, following standard authority procedures, from the authority's assets and the proceeds of its bonds, notes, and other obligations, provided however, that the source and security, if any, for the repayment of any such loans or guarantees is derived from the assets, revenues and resources of such subsidiary.

[(7)] (8) Notwithstanding any other provisions of law, the Commissioner of Energy and Environmental Protection shall issue to the authority or any subsidiary established to stimulate, encourage and carry out the remediation, development and financing of contaminated property, or to provide financial, development and environmental expertise to others interested in or undertaking such remediation, development or financing, a covenant not to sue, pursuant to section 22a-133aa or section 22a-133bb, as applicable, without fee, as otherwise required in subsection (c) of said section 22a-133aa for the remediation of a facility in accordance with an approved remediation plan.

Sec. 2. (NEW) (Effective July 1, 2012) (a) For purposes of this section, "infrastructure development project" means any project which is to be:

(1) Used or occupied by a common carrier or public utility to provide bus, rail, limousine, water or air transportation services or water, sewer, gas, electricity or telephone utility services and which the Connecticut Infrastructure and Economic Development Bank determines will tend to assist the common carrier or public utility in providing service to the general public in the state;

(2) Primarily available for the use by the general public, including, without limitation, stadiums, sport complexes, amusement parks, museums, theaters, civic, concert, cultural and exhibition centers, centers for the visual and performing arts, hotels, motels, resorts, inns and other public lodging accommodations and which the Connecticut Infrastructure and Economic Development Bank determines will tend to (A) promote tourism, (B) provide a special enhancement of recreation facilities in the state, or (C) contribute to the business or industrial development of the state; or

(3) Used or occupied by any person organized and operated not for profit but exclusively for health, educational, charitable, community, cultural, agricultural, consumer or other purposes benefitting the citizens of the state and which the Connecticut Infrastructure and Economic Development Bank determines satisfies a public need not adequately met by businesses operating for profit.

(b) There is hereby created an Infrastructure and Economic Development Fund which shall be within the Connecticut Infrastructure and Economic Development Bank established pursuant to subsection (c) of this section and in accordance with subsection (l) of section 32-11a of the general statutes, as amended by this act. The fund may receive any amount of revenue generated from the imposition of tax on conveyances of real property which shall be remitted to the Commissioner of Revenue Services for deposit to the credit of the state General Fund in accordance with section 12-494 of the general statutes and may receive any federal funds as may become available to the state for infrastructure and economic development. Upon authorization of the Connecticut Infrastructure and Economic Development Bank, any amount in said fund may be used for expenditures that promote investment in municipal and state infrastructure and economic development projects, as defined in subsection (a) of this section. Such expenditures may include, but not be limited to, (1) providing low-cost financing and credit enhancement mechanisms for infrastructure and economic development projects and technologies, (2) reimbursing the operating expenses, including administrative expenses incurred by said bank, and capital costs incurred by said bank in connection with the operation of the fund, (3) implementing the plan developed pursuant to subsection (c) of this section or other permitted activities of said bank, (4) disbursing from the fund to develop and carry out such plan, (5) making grants or direct or equity investments, entering into contracts or taking any other actions which support infrastructure and economic development, and (6) taking any actions which expand the expertise of individuals, businesses and lending institutions with regard to infrastructure and economic development.

(c) There is established the Connecticut Infrastructure and Economic Development Bank, which shall be a subsidiary of the Connecticut Development Authority in accordance with subsection (l) of section 32-11a of the general statutes, as amended by this act. Said bank shall (1) develop separate programs to and support existing programs that finance and otherwise support infrastructure and economic development, as the authority may determine, and (2) support financing or other expenditures that promote investment in infrastructure and economic development in accordance with a comprehensive plan developed by it to foster such infrastructure and economic development.

Sec. 3. (NEW) (Effective July 1, 2012) (a) The Connecticut Infrastructure and Economic Development Bank may issue infrastructure and economic development bonds secured in whole or in part by assets of, and assessment of charges and other receipts deposited into the Infrastructure and Economic Development Fund, established pursuant to section 2 of this act. The infrastructure and economic development bonds shall be nonrecourse to the credit or any assets of the state or said bank.

(b) Except as otherwise provided in this subsection, the state of Connecticut does hereby pledge and agree with the owners of the infrastructure and economic development bonds that the state shall neither limit nor alter the assessment of charges, and all rights thereunder, until the infrastructure and economic development bonds, together with the interest thereon, are fully met and discharged, provided nothing contained in this subsection shall preclude such limitation or alteration if and when adequate provision is made by law for the protection of the owners and holders of such bonds. The Connecticut Infrastructure and Economic Development Bank as agent for the state is authorized to include this pledge and undertaking for the state in the infrastructure and economic development bonds.

(c) The infrastructure and economic development bonds shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof, other than the Connecticut Infrastructure and Economic Development Bank, shall not constitute a pledge of the full faith and credit of the state or any of its political subdivisions, other than the Connecticut Infrastructure and Economic Development Bank, but shall be payable solely from the funds provided under section 2 of this act, and shall not constitute an indebtedness of the state within the meaning of any constitutional or statutory debt limitation or restriction and, accordingly, shall not be subject to any statutory limitation on the indebtedness of the state and shall not be included in computing the aggregate indebtedness of the state in respect to and to the extent of any such limitation. This subsection shall in no way preclude bond guarantees or enhancements as provided in section 2 of this act. All infrastructure and economic development bonds shall contain on the face thereof a statement to the following effect: "Neither the full faith and credit nor the taxing power of the State of Connecticut is pledged to the payment of the principal of, or interest on, this bond.".

(d) The exercise of the powers granted by this section, subsection (l) of section 32-11a of the general statutes, as amended by this act, and section 2 of this act shall be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare, and prosperity, and as the exercise of such powers shall constitute the performance of an essential public function, neither the Connecticut Infrastructure and Economic Development Bank, any affiliate of said bank, or any collection or other agent of any of the foregoing shall be required to pay any taxes or assessments upon or in respect of any revenues or property received, acquired, transferred, or used by the Connecticut Infrastructure and Economic Development Bank, any affiliate of said bank or any collection or other agent of any of the foregoing, or upon or in respect of the income therefrom, and any bonds or notes issued under the provisions of this section, their transfer and the income therefrom, including any profit made on the sale of such bonds or notes, shall at all times be free from taxation of every kind by the state and by the municipalities and other political subdivisions in the state except for estate and succession taxes, and the interest on such bonds and notes shall be included in the computation of any excise or franchise tax.

(e) The proceeds of any infrastructure and economic development bonds shall be used for the purposes of the Connecticut Infrastructure and Economic Development Bank in accordance with subsection (l) of section 32-11a of the general statutes, as amended by this act, and section 2 of this act.

Sec. 4. (NEW) (Effective October 1, 2012) The Department of Economic and Community Development shall establish a Connecticut housing and economic development collaborative consisting of local, state and nonprofit development agencies bound by a memorandum of understanding to establish a uniform state-wide system to receive individual requests for development assistance, refer such requests to the appropriate funding agency and ensure that such agency delivers assistance in a timely manner. Such collaborative shall design and deliver assistance in accordance with the demands and circumstances of the individuals seeking assistance.

This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2012	32-11a(l)
Sec. 2	July 1, 2012	New section
Sec. 3	July 1, 2012	New section
Sec. 4	October 1, 2012	New section

Statement of Purpose:

To establish (1) an infrastructure and economic development bank as a subsidiary of the Connecticut Development Authority, and (2) a housing and economic development collaborative.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]