  We consider the quantum-mechanical algebra of observables generated by
canonical quantization of $SL(2,R)$ Chern-Simons theory with rational charge on
a space manifold with torus topology. We produce modular representations
generalizing the representations associated to the $SU(2)$ WZW models and we
exhibit the explicit polynomial representations of the corresponding fusion
algebras. The relation to Kac-Wakimoto characters of highest weight
$\widehat{sl}(2)$ representations with rational level is illustrated. Talk
given at the Como Conference on ``Integrable Quantum Field Theories'',
September 1992.
