Bill Text: CT SB00402 | 2016 | General Assembly | Introduced

Connecticut Senate Bill 402 (Prior Session Legislation)

Introduced

Bill Title: An Act Establishing The Connecticut Infrastructure Bank.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2016-03-04 - Public Hearing 03/10 [SB00402 Detail]

Download: Connecticut-2016-SB00402-Introduced.html


General Assembly		*Raised Bill No. 402*
*February Session, 2016*		LCO No. 2662
		02662_______CE_
Referred to Committee on COMMERCE
Introduced by:
(CE)

AN ACT ESTABLISHING THE CONNECTICUT INFRASTRUCTURE BANK.

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

Section 1. (NEW) (Effective July 1, 2016) (a) There is hereby established and created a body politic and corporate, constituting a public instrumentality and political subdivision of the state established and created for the performance of an essential public and governmental function, to be known as the Connecticut Infrastructure Bank. The bank shall not be construed to be a department, institution or agency of the state.

(b) The powers of the bank shall be vested in and exercised by a board of directors, which shall consist of the following members, each with knowledge and expertise in matters related to the purpose and activities of said bank appointed as follows: (1) The Commissioner of Transportation or the commissioner's designee, the Treasurer or the Treasurer's designee and the Commissioner of Economic and Community Development or the commissioner's designee, all of whom shall serve as ex officio, nonvoting members; (2) one appointed by the speaker of the House of Representatives for a term of four years; (3) one appointed by the majority leader of the House of Representatives for a term of four years; (4) one appointed by the minority leader of the House of Representatives for a term of four years; (5) one appointed by the president pro tempore of the Senate for a term of four years; (6) one appointed by the majority leader of the Senate for a term of four years; (7) one appointed by the minority leader of the Senate for a term of four years; and (8) five appointed by the Governor, three for a term of two years and two for a term of four years. Thereafter, such members of the General Assembly and the Governor shall appoint members of the board to succeed such appointees whose terms expire and each member so appointed shall hold office for a period of four years from the first day of July in the year of his or her appointment. The board of directors shall select the chairperson from among the members of the board, who shall serve for a term of four years. The board of directors shall select a vice-chairperson from among its members and such other officers as it deems necessary. The board may establish committees and subcommittees as necessary to conduct its business.

(c) No appointed member of the board of directors may designate a representative to perform in their absence their respective duties under this section. Any vacancy occurring other than by expiration of term shall be filled in the same manner as the original appointment for the balance of the unexpired term. The appointing authority for any member may remove such member for inefficiency, wilful neglect of duty or misconduct in office.

(d) The chairperson shall, with the approval of the members of the board of directors, appoint an executive director of the bank who shall be an employee of the bank and paid a salary prescribed by the members. The executive director shall supervise the administrative affairs and technical activities of the bank in accordance with the directives of the board.

(e) Each member of the board of directors shall be entitled to reimbursement for such member's actual and necessary expenses incurred during the performance of such member's official duties.

(f) Members may engage in private employment, or in a profession or business, subject to any applicable laws, rules and regulations of the state regarding official ethics or conflict of interest.

(g) Eight members of the board of directors of the bank shall constitute a quorum for the transaction of any business or the exercise of any power of the bank. For the transaction of any business or the exercise of any power of the bank, and except as otherwise provided in this section, the bank may act by a majority of the members present at any meeting at which a quorum is in attendance.

(h) The bank shall continue as long as it has bonds or other obligations outstanding and until its existence is terminated by law, provided no such termination shall affect any outstanding contractual obligation of the bank and the state shall succeed to the obligations of the bank under any contract. Upon the termination of the existence of the bank, all its rights and properties shall pass to and be vested in the state of Connecticut.

(i) It shall not constitute a conflict of interest for a trustee, director, partner or officer of any person, firm or corporation, or any individual having a financial interest in a person, firm or corporation, to serve as a member of the board of directors of the bank, provided such trustee, director, partner, officer or individual shall comply with all applicable provisions of chapter 10 of the general statutes.

Sec. 2. (NEW) (Effective July 1, 2016) The purposes of the Connecticut Infrastructure Bank shall be to assist in financing infrastructure projects by providing loans and other financial assistance to public and private entities in order to improve the infrastructure in the state, including, but not limited to, highways, roads, bridges, transit and intermodal systems, inland waterways, commercial ports, airports, high speed rail, energy transmission or distribution, water and wastewater treatment facilities and telecommunication. For such purposes the bank is authorized and empowered to:

(1) Have perpetual succession as a body politic and corporate and to adopt bylaws for the regulation of its affairs and the conduct of its business;

(2) Adopt an official seal and alter the same at pleasure;

(3) Maintain an office at such place or places as it may designate;

(4) Sue and be sued in its own name, and plead and be impleaded;

(5) (A) Employ such assistants, agents and other employees as may be necessary or desirable who shall not be employees, as defined in subsection (b) of section 5-270 of the general statutes; (B) establish all necessary or appropriate personnel practices and policies, including those relating to hiring, promotion, compensation, retirement and collective bargaining, which need not be in accordance with chapter 68 of the general statutes, and the bank shall not be an employer as defined in subsection (a) of section 5-270 of the general statutes; and (C) engage consultants, attorneys and appraisers as may be necessary or desirable to carry out its purposes in accordance with this section;

(6) Issue bonds, bond anticipation notes and other obligations of the exchange for any of its corporate purposes, and to fund or refund the same and provide for the rights of the holders thereof, and to secure the same by pledge of revenues, notes and mortgages of others;

(7) Receive and accept aid or contributions from any source of money, property, labor or other things of value, to be held, used and applied to carry out the purposes of this section and chapter 242 of the general statutes subject to such conditions upon which such grants and contributions may be made, including, but not limited to, gifts or grants from any department, agency or instrumentality of the United States or this state for any purpose consistent with this section;

(8) Borrow money for the purpose of obtaining working capital;

(9) Make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under sections 1 to 4, inclusive, of this act, including contracts and agreements for such professional services as the bank deems necessary, including, but not limited to, financial consultants, bond counsel, underwriters and technical specialists;

(10) Acquire, lease, purchase, own, manage, hold and dispose of personal property, and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to the carrying out of these purposes;

(11) Invest in, acquire, lease, purchase, own, manage, hold and dispose of real property and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to carrying out the purposes of this section, provided such transactions shall not be subject to approval, review or regulation by any state agency pursuant to title 4b of the general statutes or any other provision of the general statutes;

(12) Procure insurance against any liability or loss in connection with its property and other assets, in such amounts and from such insurers as it deems desirable and to procure insurance for employees;

(13) Account for and audit funds of the bank and funds of any recipients of funds from the bank;

(14) Establish advisory committees to assist in accomplishing its duties under this section and sections 1, 3 and 4 of this act, which may include one or more members of the board of directors and persons other than members; and

(15) Do all acts and things necessary or convenient to carry out the purposes of this section and sections 1, 3 and 4 of this act and the powers expressly granted by said sections.

Sec. 3. (NEW) (Effective July 1, 2016) The members of the board of directors of the Connecticut Infrastructure Bank shall adopt written procedures, in accordance with the provisions of section 1-121 of the general statutes, for: (1) Adopting an annual budget and plan of operations, including a requirement of board approval before the budget or plan may take effect; (2) hiring, dismissing, promoting and compensating employees of the bank, including an affirmative action policy and a requirement of board approval before a position may be created or a vacancy filled; (3) acquiring real and personal property and personal services, including a requirement of board approval for any nonbudgeted expenditure in excess of an amount to be determined by the board; (4) contracting for financial, legal, bond underwriting and other professional services, including a requirement that the bank solicit proposals at least once every three years for each such service which it uses; (5) issuing and retiring bonds, bond anticipation notes and other obligations of the bank; (6) awarding loans, grants and other financial assistance, including eligibility criteria, the application process and the role played by the bank's staff and board of directors; and (7) the use of surplus funds to the extent authorized under this section and sections 1, 2 and 4 of this act or other provisions of the general statutes.

Sec. 4. (NEW) (Effective July 1, 2016) There is hereby created a Connecticut Infrastructure Bank Fund. The fund may receive any amount required by law to be deposited into the fund and may receive any federal funds as may become available to the state for infrastructure investments. Upon authorization of the Connecticut Infrastructure Bank established pursuant to section 1 of this act, any amount in said fund may be used for expenditures that promote investment in infrastructure in accordance with sections 1 and 2 of this act. Such expenditures may include, but shall not be limited to: (1) Providing low-cost financing and credit enhancement mechanisms for infrastructure projects, (2) reimbursement of the operating expenses, including administrative expenses, incurred by the Connecticut Infrastructure Bank and the Department of Transportation, and (3) capital costs incurred by the Connecticut Infrastructure Bank in connection with the operation of the fund, the other permitted activities of the Connecticut Infrastructure Bank, grants, direct or equity investments, contracts and other actions that support infrastructure projects in the state.

Sec. 5. Subdivision (12) of section 1-79 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):

(12) "Quasi-public agency" means Connecticut Innovations, Incorporated, the Connecticut Health and Education Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the State Housing Authority, the Materials Innovation and Recycling Authority, the Capital Region Development Authority, the Connecticut Lottery Corporation, the Connecticut Airport Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, [and] the State Education Resource Center and the Connecticut Infrastructure Bank.

Sec. 6. Section 1-120 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):

As used in sections 1-120 to 1-123, inclusive:

(1) "Quasi-public agency" means Connecticut Innovations, Incorporated, the Connecticut Health and Educational Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, the Capital Region Development Authority, the Connecticut Lottery Corporation, the Connecticut Airport Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, [and] the State Education Resource Center and the Connecticut Infrastructure Bank.

(2) "Procedure" means each statement, by a quasi-public agency, of general applicability, without regard to its designation, that implements, interprets or prescribes law or policy, or describes the organization or procedure of any such agency. The term includes the amendment or repeal of a prior regulation, but does not include, unless otherwise provided by any provision of the general statutes, (A) statements concerning only the internal management of any agency and not affecting procedures available to the public, and (B) intra-agency memoranda.

(3) "Proposed procedure" means a proposal by a quasi-public agency under the provisions of section 1-121 for a new procedure or for a change in, addition to or repeal of an existing procedure.

Sec. 7. Section 1-124 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):

(a) Connecticut Innovations, Incorporated, the Connecticut Health and Educational Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, the Connecticut Airport Authority, the Capital Region Development Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, [and] the State Education Resource Center and the Connecticut Infrastructure Bank shall not borrow any money or issue any bonds or notes which are guaranteed by the state of Connecticut or for which there is a capital reserve fund of any kind which is in any way contributed to or guaranteed by the state of Connecticut until and unless such borrowing or issuance is approved by the State Treasurer or the Deputy State Treasurer appointed pursuant to section 3-12. The approval of the State Treasurer or said deputy shall be based on documentation provided by the authority that it has sufficient revenues to (1) pay the principal of and interest on the bonds and notes issued, (2) establish, increase and maintain any reserves deemed by the authority to be advisable to secure the payment of the principal of and interest on such bonds and notes, (3) pay the cost of maintaining, servicing and properly insuring the purpose for which the proceeds of the bonds and notes have been issued, if applicable, and (4) pay such other costs as may be required.

(b) To the extent Connecticut Innovations, Incorporated, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, the Connecticut Health and Educational Facilities Authority, the Connecticut Airport Authority, the Capital Region Development Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, [or] the State Education Resource Center or the Connecticut Infrastructure Bank is permitted by statute and determines to exercise any power to moderate interest rate fluctuations or enter into any investment or program of investment or contract respecting interest rates, currency, cash flow or other similar agreement, including, but not limited to, interest rate or currency swap agreements, the effect of which is to subject a capital reserve fund which is in any way contributed to or guaranteed by the state of Connecticut, to potential liability, such determination shall not be effective until and unless the State Treasurer or his or her deputy appointed pursuant to section 3-12 has approved such agreement or agreements. The approval of the State Treasurer or his or her deputy shall be based on documentation provided by the authority that it has sufficient revenues to meet the financial obligations associated with the agreement or agreements.

Sec. 8. Section 1-125 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):

The directors, officers and employees of Connecticut Innovations, Incorporated, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, including ad hoc members of the Materials Innovation and Recycling Authority, the Connecticut Health and Educational Facilities Authority, the Capital Region Development Authority, the Connecticut Airport Authority, the Connecticut Lottery Corporation, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, [and] the State Education Resource Center and the Connecticut Infrastructure Bank and any person executing the bonds or notes of the agency shall not be liable personally on such bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof, nor shall any director or employee of the agency, including ad hoc members of the Materials Innovation and Recycling Authority, be personally liable for damage or injury, not wanton, reckless, wilful or malicious, caused in the performance of his or her duties and within the scope of his or her employment or appointment as such director, officer or employee, including ad hoc members of the Materials Innovation and Recycling Authority. The agency shall protect, save harmless and indemnify its directors, officers or employees, including ad hoc members of the Materials Innovation and Recycling Authority, from financial loss and expense, including legal fees and costs, if any, arising out of any claim, demand, suit or judgment by reason of alleged negligence or alleged deprivation of any person's civil rights or any other act or omission resulting in damage or injury, if the director, officer or employee, including ad hoc members of the Materials Innovation and Recycling Authority, is found to have been acting in the discharge of his or her duties or within the scope of his or her employment and such act or omission is found not to have been wanton, reckless, wilful or malicious.

Sec. 9. (Effective July 1, 2016) The sum of fifty million dollars is appropriated to the Connecticut Infrastructure Bank, from the General Fund, for the fiscal year ending June 30, 2017, for deposit into the Connecticut Infrastructure Bank Fund established under section 4 of this act.


This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2016	New section
Sec. 2	July 1, 2016	New section
Sec. 3	July 1, 2016	New section
Sec. 4	July 1, 2016	New section
Sec. 5	July 1, 2016	1-79(12)
Sec. 6	July 1, 2016	1-120
Sec. 7	July 1, 2016	1-124
Sec. 8	July 1, 2016	1-125
Sec. 9	July 1, 2016	New section

Statement of Purpose:

To establish the Connecticut Infrastructure Bank to encourage the improvement of infrastructure in the state by providing loans and other financial assistance to public and private entities for infrastructure projects.

[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.]