Bill Text: CT SB01044 | 2013 | General Assembly | Comm Sub
Bill Title: An Act Concerning The Connecticut Health And Educational Facilities Authority.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2013-05-14 - File Number 817 [SB01044 Detail]
Download: Connecticut-2013-SB01044-Comm_Sub.html
General Assembly |
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January Session, 2013 |
*_____SB01044FIN___050713____* |
AN ACT CONCERNING THE CONNECTICUT HEALTH AND EDUCATIONAL FACILITIES AUTHORITY.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsection (a) of section 10a-186a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):
(a) [In] (1) At the discretion of the Secretary of the Office of Policy and Management and the Treasurer, the authority may create and establish one or more special capital reserve funds in connection with the issuance of bonds to finance a project at a participating nursing home or to refund bonds previously issued by the authority to finance a project at a participating nursing home, or in connection with the issuance of bonds to (A) effect a refinancing or other restructuring with respect to one or more participating nursing homes as permitted by subsection (b) of this section, [to] (B) finance dormitories, residential facilities, student centers, food service facilities and other auxiliary service facilities and related buildings and improvements at a public educational institution, [to] (C) finance The University of Connecticut Health Center clinical services projects, as defined in subsection (g) of section 10a-114a, or [to] (D) finance up to one hundred million dollars, in the aggregate, for (i) a project, as defined in subsection (b) of section 10a-178, at a health care institution that has a long-term bond rating from at least one bond rating agency that is below investment grade, or (ii) equipment, including installation and any necessary building renovations or alterations for the installation and operation of such project or equipment, for participating health care institutions. [at the discretion of the Secretary of the Office of Policy and Management and the Treasurer, the authority may create and establish one or more reserve funds to be known as special capital reserve funds and]
(2) The authority may pay into such special capital reserve funds [(1)] (A) any moneys appropriated and made available by the state for the purposes of such funds, [(2)] (B) any proceeds of the sale of notes or bonds for a project, to the extent provided in the resolution of the authority authorizing the issuance thereof, and [(3)] (C) any other moneys which may be made available to the authority for the purpose of such funds from any other source or sources. The moneys held in or credited to any special capital reserve fund established under this section, except as hereinafter provided, shall be used solely for the payment of the principal of and interest, when due, whether at maturity or by mandatory sinking fund installments, on bonds of the authority secured by such special capital reserve fund as the same become due, the purchase of such bonds of the authority, the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity, including in any such case by way of reimbursement of a provider of bond insurance or of a credit or liquidity facility that has paid such amounts; provided the authority shall have power to provide that moneys in any such fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such funds to less than the maximum amount of principal and interest becoming due by reasons of maturity or a required sinking fund installment in the then current or any succeeding calendar year on the bonds of the authority then outstanding or the maximum amount permitted to be deposited in such fund by the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, to permit the interest on such bonds to be excluded from gross income for federal tax purposes and secured by such special capital reserve fund, such amount being herein referred to as the "required minimum capital reserve", except for the purpose of paying such principal of, redemption premium and interest on such bonds of the authority secured by such special capital reserve fund becoming due and for the payment of which other moneys of the authority are not available. The authority may provide that it shall not issue bonds secured by a special capital reserve fund at any time if the required minimum capital reserve on the bonds outstanding and the bonds then to be issued and secured by the same special capital reserve fund at the time of issuance, unless the authority, at the time of the issuance of such bonds, shall deposit in such special capital reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which, together with the amount then in such special capital reserve fund, will be not less than the required minimum capital reserve. On or before December first, annually, there is deemed to be appropriated from the state General Fund such sums, if any, as shall be certified by the chairman or vice-chairman of the authority to the Secretary of the Office of Policy and Management and the Treasurer of the state, as necessary to restore each such special capital reserve fund to the amount equal to the required minimum capital reserve of such fund, and such amounts shall be allotted and paid to the authority. For the purpose of evaluation of any such special capital reserve fund, obligations acquired as an investment for any such fund shall be valued at market. Nothing contained in this section shall preclude the authority from establishing and creating other debt service reserve funds in connection with the issuance of bonds or notes of the authority which are not special capital reserve funds. Subject to any agreement or agreements with holders of outstanding notes and bonds of the authority, any amount or amounts allotted and paid to the authority pursuant to this section shall be repaid to the state from moneys of the authority at such time as such moneys are not required for any other of its corporate purposes and in any event shall be repaid to the state on the date one year after all bonds and notes of the authority theretofore issued on the date or dates such amount or amounts are allotted and paid to the authority or thereafter issued, together with interest on such bonds and notes, with interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceeding by or on behalf of the holders thereof, are fully met and discharged. No bonds secured by a special capital reserve fund shall be issued to pay project costs unless the authority is of the opinion and determines that the revenues from the project shall be sufficient [(A)] (i) to pay the principal of and interest on the bonds issued to finance the project, [(B)] (ii) to 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, [(C)] (iii) to pay the cost of maintaining the project in good repair and keeping it properly insured, and [(D)] (iv) to pay such other costs of the project as may be required.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
July 1, 2013 |
10a-186a(a) |
Statement of Legislative Commissioners:
The subsection was divided into subdivisions for clarity, and the language at the end of Subdiv. (1) was moved to the beginning, for accuracy and clarity.
FIN |
Joint Favorable Subst. |