  We compute explicitly the Schr\"odinger picture space of states of SU(2)
Chern-Simons theory on $T^2\times R$ in the presence of temporal Wilson lines.
Relation with Friedan-Shenker bundle of conformal field theory and the
existence of a projective flat connection on this bundle is discussed. Talk
given by the first author at the XIX International Colloquium on Group
Theoretical Methods in Physics, Salamanca (Spain), June 29-July 4, 1992
