HB 7293 — AN ACT CONCERNING REGIONAL CONSOLIDATION EFFORTS AND MUNICIPALITIES.

General Assembly   RaisedSubstitute Bill No.

7293 January Session, 2017   LCO*_____HB07293PD____032717____* No.AN ACT CONCERNING REGIONAL CONSOLIDATION EFFORTS AND MUNICIPALITIES.

5395   *05395_______PD_* Referred to Committee on PLANNING AND DEVELOPMENT   Introduced by:

  (PD)   AN ACT CONCERNING REGIONAL CONSOLIDATION EFFORTS AND MUNICIPALITIES.

(b) Each town, city and borough, which has so voted to become a part of any such public service district, shall, by its board of selectmen, city council or board of burgesses, appoint one person to be a member of suchthe board.board, described in subsection (a) of this section.

Any town, city or borough having a population of more than ten thousand inhabitants, as annually estimated by the Department of Public Health by a method comparable or similar to that used by the United States Bureau of the Census, shall be entitled to one additional representative for each additional ten thousand population or part thereof, provided no such municipality shall have more than five representatives on asuch board.

The term of office for members of thesuch public service district board shall be three years, except that:

Members of the districtboard shall serve without compensation but shall receive their necessary expenses while in the performance of their official duties.

(b) A public service district may, without limiting its authority under other provisions of law, borrow money for the purpose of carrying out or administering a district public service project, program or other function, or for the purpose of refinancing existing indebtedness, or temporarily in anticipation of receipt of current revenues, and provided the board shall hold a public hearing on any such proposed borrowing which is estimated by the board to increase the annual apportionment of district expenses made pursuant to subsection (c) of this section by more than seven per cent over levels currently established.

The public service district may enter into note, loan or other agreements providing that such borrowings shall be payable from or secured by one or more of the following:

(1) A pledge, lien, mortgage or other security interest in any or all of the income, proceeds, revenues and property, real or personal, of its projects, assets, programs or other functions, including the proceeds of payments, grants, loans, advances, guarantees or contributions from the federal government, the state of Connecticut, the constituent municipalities of the public service district or any other source;

Neither members of the boardboard, as described in subsection (a) of section 3 of this act, nor any person executing on behalf of the public service district any note, mortgage, pledge, loan, security or other agreement in connection with the borrowing of money by a public service district shall be personally liable on the obligations thereunder or be subject to any personal liability or accountability by reason of the entranceentry into such agreements.

Each pledge, agreement or assignment made for the benefit or security of any such borrowing entered into pursuant to this subsection shall be in effect until the principal and interest on such borrowing for the benefit of which the same were made have been fully paid, or until provision is made for the payment in the manner provided therein.in such pledge, agreement or assignment.

Any pledge or assignment made in respect of such borrowing that is secured thereby shall be valid and binding from the time when the pledge or assignment is made;made.

anyAny income, proceeds, revenues or property so pledged or assigned and thereafter received by the district shall immediately be subject to the lien of such pledge, without any physical delivery thereof or further act;act.

andThe the lien of any such pledge or assignment shall be valid and binding as against parties having claims of any kind in tort, contract or otherwise against the public service district irrespective of whether such parties have notice thereof.

(c) The boardboard, described in subsection (a) of section 3 of this act, shall meet at least quarterly and at other times as determined by the chairperson.

ItThe board shall elect a chairperson and it shall furnish the necessary offices and equipment to enable itthe board to carry out its duties.

The fiscal year of each such public service district shall be from July first to June thirtieth, and, by June thirtieth in each year, the board shall estimate the amount of money required to pay the costs and expenses of the public service district during the ensuing fiscal year, provided, if any municipality within the public service district has a fiscal year whichthat begins on July first, such estimate shall be made by April thirtieth of each year.

Such board shall hold a public hearing on its proposed budget,budget after two weeks' notice of whichsuch shallhearing beis given in a newspaper having a circulation in each constituent municipality of such public service district.

From time to time, the board shall draw upon the treasurer of each town, city or borough within the public service district a proportionate share of the expenses of such district, from such funds as may have been appropriated by each, to pay the cost of operating the public service district, including debt service on borrowings of the district, such apportionment toshall be made equitable on a per capita basis as established by the last annual population estimate by the Department of Public Health for each participating town, city or borough.

(NEW) (Effective October 1, 2017) (a) Any constituent town, city or borough may, by vote passed prior to January first in any year, withdraw from the district,public suchservice withdrawaldistrict. to become effective on the first day of July following, provided such city, town or borough shall have been a member of the district for at least twenty-four months prior to such vote of withdrawal.

EmployeesSuch withdrawal shall notbecome loseeffective anyon benefitsthe orfirst civilday servicesof statusthe asfollowing July, provided such city, town or borough shall be a resultmember of the withdrawaldistrict fromfor theat district.least twenty-four months prior to such vote of withdrawal.

(b)Employees Notwithstandingshall thenot provisionslose of subsection (a) of this section, no withdrawal or termination of participation by any constituentbenefits municipality shall affect any pledge, agreement, assignment or mortgagecivil ofservices anystatus income,as revenuea proceedsresult or property of a district made for the benefitwithdrawal orfrom securitysuch of any borrowing of the district.

(c)(b) Notwithstanding anythe otherprovisions provision of thesubsection general(a) statutes,of this section, no districtwithdrawal shallor ceasetermination toof existparticipation untilby suchany timeconstituent asmunicipality paymentshall affect any pledge, agreement, assignment or provisionmortgage forof paymentany income, revenue proceeds or property of a public service district made for the outstandingbenefit balanceor security of borrowingsany borrowing of such districtdistrict. is made.

(c) Notwithstanding any provision of the general statutes, no public service district shall cease to exist until such time as payment or provision for payment of the outstanding balance of borrowings of such district is made.

6 October 1, 2017 New section Statement of Purpose:Legislative Commissioners:

ToThroughout encouragesections and3 promoteto regional5, municipalinclusive, consolidationtechnical efforts.changes were made for clarity and conformity with drafting conventions.

[ProposedPD deletionsJoint areFavorable enclosedSubst. in brackets.

Proposed-LCO 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.]