HB 5249 — AN ACT AMENDING THE CHARTER OF THE SOUTH CENTRAL CONNECTICUT REGIONAL WATER AUTHORITY CONCERNING THE POTENTIAL ACQUISITION OF A WATER COMPANY.

5249Section Sec.42 of public act 24-1 of the June special session is amended to read as follows (Effective from passage):

4.Sections 34 to 41, inclusive, of [this act] public act 24-1 of the June special session shall not be effective on and after December 31, 2027, sHB5249 / File No.

Section379 445 ofsHB5249 specialFile actNo. 77-98, as amended by special act 78-24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24-7 and public act 24-1 of the June special session, is amended to read as follows (Effective from passage):

Subject379 tounless the provisionsPublic ofUtilities sectionsRegulatory 34Authority toapproves 65, inclusive, of [this act,] special act 77-98, as amended by special act 78-24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24-7, public act 24-1 of the JuneSouth specialCentral sessionConnecticut andRegional thisWater act,Authority includingor approval by the PublicAquarion UtilitiesWater Regulatory Authority pursuant to subsectionown (c)and ofoperate section 5 of special act 77-98, as amended by special act 78-24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24-7, public act 24-1 of the JuneAquarion specialWater sessionCompany, andor thisone act,or andmore subsection (b) of sectionits 37subsidiaries, of special act 77-98, as amended by specialsaid actdate. 78-24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24-7, public act 24-1 of the June special session and this act, the authority shall have the power:

No provision of sections 34 to 41, inclusive, of public act 24-1 of the June special session shall be construed to limit the scope of the authority's review in any proceeding brought or pending on or after October 1, 2024, concerning the proposed change of control of a water company pursuant to sections 16-47 and 16-22 of the general statutes, which review shall include, but need not be limited to, review of (1) the Aquarion representative policy board membership structure set forth in subsection (a) of section 37 of section 41 of public act 24-1 of the June special session, (2) the Aquarion representative policy board weighted voting structure set forth in subsection (c) of section 37 of section 41 of public act 24-1 of the June special session, (3) theAquarionWater Authority membershipstructure set forthinsection 38 of section 41 of public act 24-1 of the June special session, as amended by this act, and (4) the functions of the office of consumer affairs as set forth in section 48 of section 41 of public act 24-1 of the June special session.

Sec.

6.

Section 44 of section 41 of public act 24-1 of the June special session is amended to read as follows (Effective from passage):

Subject to the provisions of sections 34 to 65, inclusive, of [this act] section 41 of public act 24-1 of the June special session, and contingent upon the Public Utilities Regulatory Authority granting approval to the South Central Connecticut Regional Water Authority or the Aquarion Water Authority to own and operate the Aquarion Water Company or one or more of its subsidiaries, the authority shall have the power:

(d) to acquire in the name of the authority by purchase, lease or otherwise and to hold and dispose of any real property or interest therein, including water rights and rights of way and water discharge rights, which the authoritysHB5249 determines/ toFile beNo. necessary or convenient, and to acquire any existing wastewater system or water supply system or parts thereof which are wholly or partially within the district as described under section 36 of [this act] special act 77-98, as amended by special act 78-24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24-7 and public act 24-1 of the June special session.

As379 a6 meanssHB5249 ofFile so acquiring, LCO No.

1680379 6authority ofdetermines 10to Raisedbe Billnecessary No.5249 the authority or aconvenient, subsidiaryand corporationto mayacquire purchaseany allexisting ofwastewater thesystem stock or allwater ofsupply anysystem partor ofparts thethereof assetswhich andare franchiseswholly ofor anypartially existingwithin privatelythe owneddistrict wateras ordescribed wastewaterunder company,section whereupon36 theof authority[this oract] suchsection subsidiary41 corporationshallof succeedpublic toact all24-1 rights,of powersthe andJune franchisesspecial thereof.session.

SectionsAs 16-43,a 16-50cmeans and 16-50d of theso generalacquiring, statutes shall not apply to any action by the authority or a subsidiary corporation ormay anypurchase actionall byof anythe privatelystock owned water company or sewageall company,of asany definedpart in section 16-1 of the generalassets statutes,and takenfranchises toof effectuateany theexisting acquisitionprivately ofowned thewater stock or allwastewater orcompany, anywhereupontheauthority partor ofsuch thesubsidiary assetscorporationshall andsucceed franchisesto ofall suchrights, waterpowers companyand orfranchises sewagethereof. company by the authority.

Sections 16-43, 16- 50c and 16-50d of the general statutes shall not apply to any action by the authority or a subsidiary corporation or any action by any privately owned water company or sewage company, as defined in section 16-1 of the general statutes, as amended by this act, taken to effectuate the acquisition of the stock or all or any part of the assets and franchises of such water company or sewage company by the authority.

(g) notwithstanding any provision of the general statutes, special acts or this charter, but subject to the provisions of section 45 of [this act] specialsection act41 77-98,of as amended by special act 78- 24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24-7, public act 24-1 of the June special session and this act, to sell water, however acquired, to customers within the district or to any municipality or water company;

(i) to adopt and amend bylaws, rules and regulations for the management and regulation of its affairs and for the use and protection of the water and properties of the authority or a subsidiary corporation and, subject to the provisions of any resolution authorizing the issuance of bonds, rules for the sale of water, the collection and processing of wastewater and the collection of rents and chargessHB5249 for/ bothFile waterNo. supply and wastewater functions.

A379 copy7 ofsHB5249 suchFile bylaws, rules and regulations and LCO No.

1680379 7chargesfor ofbothwatersupply 10andwastewater Raisedfunctions.A Billcopy No.5249ofsuch bylaws, rules and regulations and all amendments thereto, certified by the secretary of the authority, shall be filed in the office of the Secretary of the State and with the clerk of eachtownandcityeach withinthedistrict.Anytown superior court locatedwithin the district shall have jurisdiction over any violation of such bylaws, rules or regulations and thecity authoritywithin may prosecute actions before the superiordistrict. court to enforce such bylaws, rules and regulations;

Any superior court located within the district shall have jurisdiction over any violation of such bylaws, rules or regulations and the authority may prosecute actions before the superior court to enforce such bylaws, rules and regulations;

(k) to borrowmoney,borrow money, to issuenegotiablebondsorissue notes,tonegotiable fundandrefundbonds or notes, to fund and refund the same and to provide for the rights of the holders of the authority's obligations;

(m) to enter into cooperative agreements with other water authorities, municipalities, water districts, water companies or water pollution control authorities within or without the district for interconnection of facilities, for exchange or interchange ofservicesandcommoditiesorof services and commodities or for any other lawful purpose necessary or desirable to effect the purposes of sections 34 to 65, inclusive, of [this act] specialsection act41 77-98,of as amended by special act 78-24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24-7, public act 24-1 of the June special sessionsession, and this act, such agreements to be binding for a period specified therein;

(n) to acquire, hold, develop and maintain land and other real estateestateandwatersforconservationandforcompatibleactiveandpassive and waters for conservation and for compatible active and passive recreational purposes and to levy charges for such uses, provided the state department of health finds that such uses will not harm the quality of water provided by the authority;

(q) to do any and all things necessary or convenient to carry out the powers LCOexpressly given in sections 34 to 36, inclusive, [of this act] and sections 38 to 40, inclusive, of [this act] section 41 of public act 24-1 of the June sHB5249 / File No.

1680379 8 ofsHB5249 10File Raised Bill No.

5249379 expressly given in sections 34 to 36, inclusive, [of this act] and sections 38 to 40, inclusive, of [this act] special actsession, 77-98, as amended by special act 78-24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24- 7, public act 24-1 of the June special session and this act, including the powers granted by the general statutes to stock corporations, except the power to issue stock, and the powers granted by the general statutes to water pollution control authorities;

andand(r)to (r)borrowmoney, to borrowissuenegotiablebondsor money,notes,to tofundand issue negotiable bonds or notes, to fund and refund the same and to provide for the rights of the holders of the authority's obligations for the specific purpose of acquiring the Aquarion Water Company or one or more of its subsidiaries.

5.7.

Section 62 of specialsection act41 77-98,of as amended by special act 78-24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24-7 and public act 24-1 of the June special session,session is amended to read as follows (Effective from passage):

Following[Insofar approvalas] byIf the Public Utilities Regulatory Authority,Authority asgrants setapproval forthto inthe subsectionSouth (c)Central ofConnecticut sectionRegional 5Water ofAuthority specialor actthe 77-98,Aquarion asWater amendedAuthority byto specialown actand 78-24,operate specialthe actAquarion 84-46,Water specialCompany actor 99-12,one specialor actmore 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24-7, public act 24-1 of theits Junesubsidiaries, special session and thisif act,the andprovisions subsection (b) of sectionsections 3734 ofto special65, actinclusive, 77-98, as amended by special act 78-24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13-20, special act 17-5, special act 18-04, special act 24-7, public act 24-1 of the June special session and this act, if granted, insofar [Insofar]astheprovisionsofsections34to 65,inclusive, of [this act] specialsection act41 77-98,of as amended by special act 78-24, special act 84-46, special act 99-12, special act 02-85, special act 03-11, special act 13- 20, special act 17-5, special act 18-04, special act 24-7, public act 24-1 of the June special session and this act, are inconsistent with the provisions of any other general statute, special act or any municipal ordinance, the provisions of said sections 34 to 65, inclusive, [ofof this[this act] shallsection be41 LCOof No.public act 24-1 of theJunespecialsession shallbecontrolling;

1680providednothing 9contained in sections 34 to 65, inclusive, of 10[this Raisedact] Billsection No.41 of public act 24-1 of the June special session shall exempt the authority from compliance with zoning regulations lawfully established by any municipality, except that the plants, structures and other facilities of the water supply system or the wastewater system owned or operated by the authority shall be permitted uses in all zoning districts in every city, town or boroughwithinthedistrict;andprovidedfurther thattheauthoritymay not construct purification or filtration plants or wastewater treatment plants in any zoning district in which such use is not permitted under local zoning regulations without first obtaining approval of the proposed location of such facility from the Aquarion representative policy board following a public hearing.

5249 controlling;

provided nothing contained in said sections 34 to 65, inclusive, [of this act] shall exempt the authority from compliance with zoningregulationslawfullyestablishedbyanymunicipality,exceptthat the plants, structures and other facilities of the water supply system or the wastewater system owned or operated by the authority shall be permitted uses in all zoning districts in every city, town or borough within the district;

and provided further that the authority may not construct purificationor filtrationplantsor wastewater treatment plants in any zoning district in which such use is not permitted under local zoning regulations without first obtaining approval of the proposed location of such facility from the Aquarion representative policy board following a public hearing.

Section 1 from passage SA16-1(a)(6) 77-98,sHB5249 Sec./ File No.

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41section 37(b) Sec.

4 from passage PA 24-1 of the June Sp.

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441 from passage SA 77-98, Sec.

5 from passage PA 24-1 of the June Sp.

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6 from passage PA 24-1 of the June Sp.

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541 from passage SA 77-98, Sec.

627 Statementfrom passage PA 24-1 of Purpose:the June Sp.

ToSess., amend, theSec. charter of the South Central Connection Regional Water Authority concerning the potential acquisition of a water company.

[Proposed62 deletionsSec. are enclosed in brackets.

Proposed41 additionsET areJoint indicatedFavorable bySubst. 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.] LCO No.

1680sHB5249 10/ ofFile 10No.

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379 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation The bill makes various clarifying and procedural changes regarding the Public Utilities Regulatory Authority's (PURA) regulatory authority and makes changes to the composition of various governing boards, which does not result in a fiscal impact.

The Out Years State Impact:

None Municipal Impact:

None sHB5249 / File No.

379 11 sHB5249 File No.

379 OLR Bill Analysis sHB 5249 AN ACT AMENDING THE CHARTER OF THE SOUTH CENTRAL CONNECTICUT REGIONAL WATER AUTHORITY CONCERNING THE POTENTIAL ACQUISITION OF A WATER COMPANY.

SUMMARY Under current law (PA 24-1, June Special Session, §§ 34-42), if the Public Utilities Regulatory Authority (PURA) approves the South Central Connecticut Regional Water Authority (RWA) or the Aquarion Water Authority (AWA) to own and operate the Aquarion Water Company or its subsidiaries, an 11-member governing board with members from both authorities’ districts is created to run both authorities.

(PURA approved the transaction on March 25, 2026.) This bill changes the composition of the governing board, if PURA approves the transaction, to require:

1.

six, rather than five, members to be residents of the Aquarion Regional Water District appointed by AWA’s policy board and 2.

five, rather than six, members to be members of RWA’s governing board appointed by RWA’s policy board.

As under existing law, the members appointed by RWA’s policy board may act on AWA’s behalf until the AWA members are appointed.

The bill also generally specifies that (1) nothing in the underlying law creating AWA limits the scope of PURA’s review of the transaction and (2) certain provisions in the underlying law depend on PURA’s approval of the transaction.

Separately, the bill also expands PURA’s regulatory authority over watercompaniestocovercompaniesthatserveatleast300,000customer sHB5249 / File No.

379 12 sHB5249 File No.

379 accounts and are (1) districts, metropolitan districts, municipal districts, or special services districts established under state statute or public or special act or (2) waterworks systems owned, leased, maintained, operated,managed,orcontrolledbyanyunit oflocalgovernmentunder a statute or public or special act.

(It does not appear that this change would apply to RWA or AWA under the bill, as the underlying laws for both generally specify that they are the controlling authority, regardless of conflicting state laws or local ordinances.) The bill also makes various minor, technical, and conforming changes.

EFFECTIVE DATE:

Upon passage PURA REVIEW The bill specifies that nothing in the underlying law creating AWA limits the scope of PURA’s review in any proceeding brought or pending on or after October 1, 2024, about a proposed change of control of a water company under the laws on (1) PURA’s review and approval of holding companies exercising control over Connecticut public utility companies, which generally requires PURA to investigate and hold a hearing on the issue (CGS § 16-47), and (2) transferring a public utility company’s franchise or assets, which generally requires the company to prove that the transfer is in the public’s interest (CGS § 16-22).

More specifically, the bill requires PURA to review at least the following factors, as set in the underlying law creating AWA:

1.

Aquarion representative policy board membership structure;

2.

Aquarion representative policy board weighted voting structure;

3.

Aquarion Water Authority (the governing board) membership structure, as amended by the bill;

and 4.

functions of the office of consumer affairs.

The bill similarly specifies that certain provisions of the underlying sHB5249 / File No.

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379 law for RWA and AWA hinge on PURA’s approval of the transaction as described above, including (1) the change in the governing board’s membership, as required by the bill;

(2) appointments to the Aquarion representative policy board;

(3) certain AWA powers (such as acquiring property);and(4) a provisionthatgenerallyrequirestheunderlying law to supersede any conflicting state statute, special act, or municipal ordinance.

COMMITTEE ACTION Energy and Technology Committee Joint Favorable Substitute Yea 24 Nay 2 (03/17/2026) sHB5249 / File No.

379 14