AN ACT AUTHORIZING AND ADJUSTING BONDS OF THE STATE FOR CAPITAL IMPROVEMENTS, TRANSPORTATION AND OTHER PURPOSES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (Effective from passage) (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 sixty million dollars. (b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Transportation for grants-in-aid to municipalities for use in the manner set forth in, and in accordance with the provisions of, sections 13a-175a to 13a-175k, inclusive, of the general statutes. (c) 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 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 State Treasurer shall pay such principal and interest as the same become due. Sec. 2. Subsection (a) of section 7-538 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage): (a) For the purposes described in subsection (b) of this section, the State Bond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 [nine hundred fifty million dollars] nine hundred eighty million dollars.[, provided 1 thirty-five million dollars of said authorization shall be effective July 1, 2018]. Sec. 3. (Effective from passage) (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 sixty million dollars. (b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Office of Policy and Management for grants-in-aid to municipalities for the purposes set forth in subsection (a) of section 13a175a of the general statutes, for the fiscal year ending June 30, 2020. Such grant payments shall be made annually as follows: Municipalities Andover Ansonia Ashford Avon Barkhamsted Beacon Falls Berlin Bethany Bethel Bethlehem Bloomfield Bolton Bozrah Branford Bridgeport Bridgewater Bristol Brookfield Brooklyn Burlington Canaan Canterbury Canton Chaplin Cheshire FY 20 $2,620 85,419 3,582 261,442 41,462 43,809 786,396 67,229 282,660 7,945 1,701,347 24,859 138,521 374,850 1,031,564 587 2,486,925 118,281 10,379 15,300 20,712 2,022 7,994 601 736,700 2 Chester Clinton Colchester Colebrook Columbia Cornwall Coventry Cromwell Danbury Darien Deep River Derby Durham Eastford East Granby East Haddam East Hampton East Hartford East Haven East Lyme Easton East Windsor Ellington Enfield Essex Fairfield Farmington Franklin Glastonbury Goshen Granby Greenwich Griswold Groton (Town of) Guilford Haddam Hamden Hampton Hartford 89,264 191,674 39,009 550 26,763 10,533 31,099 1,726,901 104,136 14,728 153,897 54,564 537,454 1,696 18,943 4,447,536 43,500 22,442 2,660 295,024 223,527 256,875 74,547 96,747 545,804 23,080 240,799 2,648 35,332 89,022 31,895 1,240,819 64,848 3,554 286,689 1,419,161 3 Hartland Harwinton Hebron Kent Killingly Killingworth Lebanon Ledyard Lisbon Litchfield Lyme Madison Manchester Mansfield Marlborough Meriden Middlebury Middlefield Middletown Milford Monroe Montville Morris Naugatuck New Britain New Canaan New Fairfield New Hartford New Haven Newington New London New Milford Newtown Norfolk North Branford North Canaan North Haven North Stonington Norwalk 955 21,506 2,216 706,717 5,148 30,427 421,085 3,683 3,432 6,795 1,072,449 6,841 7,313 893,641 84,264 248,652 1,987,145 1,344,868 179,106 528,644 3,528 341,656 1,383,881 200 1,149 139,174 1,369,123 917,869 33,169 674,203 235,371 7,207 301,074 359,719 1,445,730 402,915 4 Norwich Old Lyme Old Saybrook Orange Oxford Plainfield Plainville Plymouth Pomfret Portland Preston Prospect Putnam Redding Ridgefield Rocky Hill Roxbury Salem Salisbury Scotland Seymour Sharon Shelton Sherman Simsbury Somers Southbury Southington South Windsor Sprague Stafford Stamford Sterling Stonington Stratford Suffield Thomaston Thompson Tolland 187,132 1,888 46,717 104,962 84,313 144,803 541,936 152,434 27,820 90,840 70,942 171,800 1,329 561,986 221,199 602 4,699 83 7,681 281,186 584,121 77,648 82,324 20,981 820,795 1,338,190 386,528 437,917 416,142 24,398 100,332 3,507,689 180,663 395,346 76,733 85,064 5 Torrington Trumbull Union Vernon Voluntown Wallingford Warren Washington Waterbury Waterford Watertown Westbrook West Hartford West Haven Weston Westport Wethersfield Willington Wilton Winchester Windham Windsor Windsor Locks Wolcott Woodbridge Woodbury Woodstock Jewett City (Bor. ) Barkhamsted F. D. Berlin - Kensington F. D. Berlin - Worthington F. D. Bloomfield: Center F. D. Bloomfield Blue Hills F. D. Cromwell F. D. Enfield F. D. 1 Enfield: Thompsonville F. D. 2 Enfield: Hazardville Fire #3 605,345 189,309 151,598 2,002 1,948,455 288 158 2,516,158 34,255 642,281 267,405 805,784 147,516 453 21,785 20,018 307,058 306,204 454,575 1,321,000 1,907,971 234,916 29,920 56,908 68,767 4,195 2,500 11,389 941 4,173 103,086 1,832 14,636 3,160 1,374 6 Enfield: N Thompsonville F. D. 4 Enfield: Shaker Pines F. D. 5 Groton City Groton Sewer Groton Old Mystic F. D. 5 Groton: Poq. Bridge F. D. Killingly Attawaugan F. D. Killingly Dayville F. D. Killingly Dyer Manor E. Killingly F. D. So. Killingly F. D. Killingly Williamsville F. D. Manchester Eighth Util. Middletown: South F. D. Middletown Westfield F. D. Middletown City Fire New Htfd. Village F. D. #1 New Htfd. Pine Meadow #3 New Htfd. South End F. D. Plainfield Central Village F. D. Plainfield - Moosup F. D. Plainfield: Plainfield F. D. Plainfield Wauregan F. D. Pomfret F. D. Putnam: E. Putnam F. D. Simsbury F. D. Stafford Springs Service Dist. Sterling F. D. Stonington Mystic F. D. Stonington Old Mystic F. D. Stonington Pawcatuck F. D. Stonington Quiambaug F. D. Stonington Wequetequock F. D. Trumbull Center Trumbull Long Hill F. D. Trumbull Nichols F. D. W. Haven: West Shore F. D. W. Haven: Allingtown F. D. West Haven First Ctr. F. D. 1 69 6,403 164,635 1,688 1,695 22,300 1,836 42,086 1,428 95 189 6,710 68,425 207,081 10,801 33,837 7,128 131 10 1,466 2,174 1,959 5,136 1,031 10,110 2,638 15,246 1,293 601 2,519 5,500 72 73 555 1,105 3,435 34,708 21,514 4,736 7 Windsor Wilson F. D. Windsor F. D. Windham First Grand Totals 214 14 8,929 $60,000,000 (c) 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 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 State Treasurer shall pay such principal and interest as the same become due. Sec. 4. Section 10-287d of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage): For the purposes of funding (1) grants to projects that have received approval of the Department of Administrative Services pursuant to sections 10-287 and 10-287a, subsection (a) of section 10-65 and section 10-76e, (2) grants to assist school building projects to remedy safety and health violations and damage from fire and catastrophe, and (3) technical education and career school projects pursuant to section 10-283b, the State Treasurer is authorized and directed, subject to and in accordance with the provisions of section 3-20, to issue bonds of the state from time to time in one or more series in an aggregate amount not exceeding [eleven billion seven hundred fifty-six million one hundred sixty thousand dollars] twelve billion two hundred thirty-one million one hundred sixty thousand dollars, [provided ninety million dollars of said authorization shall be effective July 1, 2018, and] provided not more than five million dollars shall be made available for school security projects administered by the School Safety Infrastructure Council established pursuant to section 10-292r that involve multimedia interoperable communication systems. Bonds of each series shall bear such date or dates and mature at such time or times not exceeding thirty years from their respective dates and be subject to such redemption privileges, with or without premium, as may be fixed by the State Bond Commission. They shall be sold at not less than par and accrued interest and 8 the full faith and credit of the state is pledged for the payment of the interest thereon and the principal thereof as the same shall 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 State Treasurer shall pay such principal and interest as the same become due. The State Treasurer is authorized to invest temporarily in direct obligations of the United States, United States agency obligations, certificates of deposit, commercial paper or bank acceptances such portion of the proceeds of such bonds or of any notes issued in anticipation thereof as may be deemed available for such purpose. Sec. 5. Subsection (d) of section 10a-91e of the general statutes is repealed and the following substituted in lieu thereof (Effective from passage): (1) On or before the first day of March in each year, the board of regents shall submit to the Governor, the Treasurer and the Secretary of the Office of Policy and Management, the most recently approved facilities and academic plans and the amount of bonds required for the CSCU 2020 program for the fiscal year beginning on July first of that year. The Governor may, not later than thirty days after such submission, approve or disapprove all or a portion of such amount of bonding submitted by the board of regents by notifying the board of regents, in writing, of such decision and the reasons for it. If the Governor does not act within such thirty-day period, the issuance of bonds for the CSCU 2020 program for the fiscal year beginning on July first of that year is deemed approved. (2) In the event the capped amount of authorized bonds is increased by the General Assembly for the fiscal year beginning on July first for which the issuance of such bonds has already been approved by the Governor or deemed approved pursuant to subdivision (1) of this subsection or the General Assembly authorizes new bonds after the first day of March for the fiscal year beginning July 1, the board of regents shall submit to the Governor, the Treasurer and the Secretary of the Office of Policy and Management, not later than thirty days after the effective date of such increase, an addendum to the most recently approved facilities and academic plans and the amount of additional bonds required for the CSCU 2020 program for the fiscal year beginning on July first of that year. The Governor may, not later than thirty days after such submission, approve or disapprove all or a portion of such additional amount of bonding submitted by the board of regents by notifying the board of regents in writing, of such decision and the reasons for such decision. If the Governor does not act within such thirty-day period, the issuance of additional bonds for the CSCU 2020 program for the fiscal year beginning on July first of that year is deemed approved. 9 Required Bond Authorizations for Municipal Aid & School Construction Section Agency Program 1 DOT Town Aid Road (GO) 2 OPM Local Capital Improvement Program 3 OPM Grants for Municipal Projects and Purposes 4 DAS School Construction - Principal 5 CSCU Fix for CSCU March 1st deadline CGS 10a91e Total General Obligation Bonds FY 2020 Description 60,000,000 CGS 13a-175e requires half of authorized funds be distributed in July and January. Expected distributions are overdue. 30,000,000 CGS 7-536 requires that municipalities be notified of their entitlement amount on March 1st which allows them to obtain project authorizations and seek reimbursements as projects are completed. 60,000,000 Municipalities have budgeted for these funds and expect payment before the end of the fiscal year. 475,000,000 To ensure that ongoing local school construction projects and technical school projects have the required funding for FY2020. - Due to delay in passage of a bond bill $ 625,000,000 Page 1 STATE OF CONNECTICUT OFFICE OF POLICY AND MANAGEMENT February 21, 2020 The Honorable Len Fasano, Senator Republican Leader The Honorable Themis Klarides, House Minority Leader The Honorable Kevin Witkos, Finance Senate Ranking Member The Honorable Christopher Davis, Finance House Ranking Member Dear Senator Fasano, Representative Klarides, Senator Witkos and Representative Davis, At the request of Governor Lamont, I am hereby submitting draft legislation and an accompanying detailed spreadsheet of authorizations to move forward with a targeted municipal aid bond package. A corresponding package was submitted to your Democratic colleagues. While we have been attempting to negotiate a long-term transportation plan for this state that would include a mix of General Obligation and Special Tax Obligation bonds, the other projects included in the bond bill have been forced to wait. It is imperative to decouple the municipal grants from the larger bond bill and approve authorizations that will allow for these municipal grant programs to prevent year end deficits and help offset local expenses. Towns have waited long enough for municipal aid and therefore new authorizations are required. On behalf of Governor Lamont, I have attached for your information the proposed legislation requesting action by March 6, 2020. Assuming passage and signing by the Governor, I shall schedule a State Bond Commission meeting by March 18, 2020 subject to statutory requirements. I appreciate your time and attention and look forward to working together to help our municipalities. Sincerely, Melissa N. McCaw OPM Secretary cc: Governor Ned Lamont Lieutenant Governor Susan Bysiewicz Ryan Drajewicz, Chief of Staff Paul Mounds, Chief Operating Officer Kosta Diamantis, OPM Deputy Secretary 450 Capitol Avenue • Hartford, Connecticut 06106-1379 www.ct.gov/opm STATE OF CONNECTICUT OFFICE OF POLICY AND MANAGEMENT February 21, 2020 The Honorable Joseph Aresimowicz, Speaker of the House The Honorable Matthew Ritter, House of Representatives Majority Leader The Honorable Martin M. Looney, Senate President Pro Tempore The Honorable Bob Duff, Senate Majority Leader The Honorable Senator Jon Fonfara The Honorable Representative Jason Rojas The Honorable Senator Marilyn Moore The Honorable Representative Patricia Miller Dear Legislative Leaders and Committee Chairs, At the request of Governor Lamont, I am hereby submitting draft legislation and an accompanying detailed spreadsheet of authorizations to move forward with a targeted municipal aid bond package. Our cities and towns, we all agree, have waited long enough for their municipal aid capital funding and we need new authorizations to move forward immediately. While we have been attempting to negotiate a long-term transportation plan for this state that would include a mix of General Obligation and Special Tax Obligation bonds, the other projects included in the bond bill have been forced to wait. At this time, however, we feel it is imperative to decouple the municipal grants from the larger bond bill and pass authorizations that will allow for these municipal grant programs to prevent year end deficits and help offset local expenses. On behalf of Governor Lamont, I respectfully ask that you review the proposed legislation and act on this municipal bond package expeditiously with successful passage and bill signing by March 6, 2020. Upon passage of the bill accordingly, I shall schedule a State Bond Commission meeting by March 18, 2020 consistent with statute and subject to all notice requirements. Thereafter, I shall resume discussions with you on the comprehensive bond bill to reflect the Governor’s vision. Please contact me if you have any questions. I appreciate your time and attention and look forward to working together to help our municipalities. Sincerely, Melissa N. McCaw OPM Secretary 450 Capitol Avenue • Hartford, Connecticut 06106-1379 www.ct.gov/opm cc: Governor Ned Lamont Lieutenant Governor Susan Bysiewicz Ryan Drajewicz, Chief of Staff Paul Mounds, Chief Operating Officer Kosta Diamantis, OPM Deputy Secretary