AN ACT ELIMINATING THE PROPERTY TAX ON CERTAIN MOTOR VEHICLES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective July 1, 2007) There is established a Casino Assistance Revenue Fund, which shall be a separate nonlapsing fund administered by the State Treasurer. The fund shall contain any moneys required by law to be deposited in the fund. Investment earnings credited to the assets of the fund shall become part of the assets of the fund. All moneys in the fund shall be used for the purposes set forth in section 4 of this act.

Sec. 2. (NEW) (Effective July 1, 2007) For the purposes set forth in section 4 of this act, the Comptroller shall transfer funds from the revenues received by the state pursuant to a memorandum of understanding with an Indian tribe, to the Casino Assistance Revenue Fund established by section 1 of this act as follows:

(1) In the fiscal year commencing July 1, 2007, one transfer of funds shall be made not later than the thirtieth day of November, 2007, in the total amount certified to the Comptroller by the Secretary of the Office of Policy and Management, as described in section 4 of this act.

(2) In the fiscal year commencing July 1, 2008, two transfers of funds shall be made, the first not later than the thirtieth day of November, 2008, and the second not later than the thirty-first day of January, 2009, each in the total amounts certified to the Comptroller by the secretary, as described in section 4 of this act.

(3) In the fiscal year commencing July 1, 2009, three transfers of funds shall be made, the first not later than the thirtieth day of November, 2009, the second not later than the thirty-first day of January, 2010, and the third not later than the thirtieth day of April, 2010, each in the total amounts certified to the Comptroller by the secretary, as described in section 4 of this act.

(4) In fiscal years commencing on and after July 1, 2010, four transfers of funds shall be made each year, the first not later than the thirtieth day of November, the second not later than the thirty-first day of January, the third not later than the thirtieth day of April, and the fourth not later than the thirtieth day of June, each in the total amounts certified to the Comptroller by the secretary, as described in section 4 of this act.

Sec. 3. Section 12-81 of the general statutes is amended by adding subdivision (77) as follows (Effective from passage and applicable to assessment years commencing on and after October 1, 2006):

(NEW) (77) (A) For the purposes of this subdivision, the following terms shall be defined as follows: (i) "Eligible vehicle" means a car, light duty truck, pick-up truck or motorcycle identified on a list the Commissioner of Motor Vehicles provides to the assessor of each town, pursuant to section 14-163, under Class Code 01 , Class Code 12, Class Code 14, Class Code 15, Class Code 16, Class Code 17, Class Code 25, Class Code 27, Class Code 28 or Class Code 33, and with respect to which said commissioner issues a registration that does not allow the use of such vehicle for commercial purposes or for a combination of passenger and commercial purposes; (ii) "lessee" means a person who leases an eligible vehicle, for a period of not less than one year, from a lessor who is a licensee, under section 14-15, pursuant to a written lease agreement that assigns responsibility for the payment of any property tax for the eligible vehicle to such lessee, regardless of whether a charge for such tax is separately stated in said agreement, or on a bill or invoice that may be rendered to the lessee by either a taxing jurisdiction or the lessor; (iii) "municipality" means each town, city, borough, consolidated town and city and consolidated town and borough, each district, as defined in section 7-324 and each special services district created concurrently with, or as a result of, the dissolution of a city or borough; (iv) "net assessed value" means the valuation of a motor vehicle for purposes of assessment less the total of all property tax exemptions for which the owner or lessee of such motor vehicle qualifies; (v) "person" means a natural person; and (vi) "tax collector" means the tax collector of each town and the person responsible for collecting property tax revenue for each municipality that is not a town.

(B) Subject to the provisions of this subdivision, each person who, on or after October 1, 2006, owns or leases an eligible vehicle that is subject to the property tax under chapter 204 shall be entitled to an exemption applicable to the net assessed value of such eligible vehicle, in an amount as follows: (1) For the assessment year commencing October 1, 2006, one thousand five hundred dollars; (2) for the assessment year commencing October 1, 2007, three thousand two hundred dollars; (3) for the assessment year commencing October 1, 2008, four thousand nine hundred dollars; and (4) for the assessment year commencing October 1, 2009, six thousand seven hundred dollars. For assessment years commencing on and after October 1, 2010, the exemption under this subdivision shall equal one hundred per cent of the net assessed value of each eligible vehicle.

(C) With respect to an eligible vehicle that a person owns on any assessment date, the assessor shall grant the exemption under this subdivision without requiring such person to file an application claiming such exemption. A lessee who desires to claim the exemption in this subdivision shall file a written application for such exemption, with the assessor of the town in which such lessee's eligible vehicle is subject to taxation, on a form the Secretary of the Office of Policy and Management prescribes. A lessee shall file such application not later than the first day of November, if the lessee is claiming an exemption for an eligible vehicle registered on the first day of October in any assessment year, except that, for an eligible vehicle registered on October 1, 2006, a lessee may file such application on or before September 15, 2007. With respect to any eligible vehicle registered subsequent to the first day of October in any assessment year in which such exemption is available, but prior to the first day of August in said assessment year, a lessee shall file such application not later than the first day of November next following the conclusion of said assessment year. The exemption under this subdivision for an eligible vehicle registered subsequent to the first day of October in any assessment year shall be reduced by a ratio, the numerator of which shall be the number of months from the date of such registration, including the month in which registration occurs, to the first day of the following October, and the denominator of which shall be twelve. Failure to file such application in the manner and form and within the time limit prescribed shall constitute a waiver of the right to the exemption under this subdivision for the assessment list for which such exemption would be applicable.

(D) In any assessment year in which the provisions of section 12-71c are applicable with respect to an eligible vehicle for which the exemption under this subdivision has been approved, the assessor shall reduce the amount of said exemption by a ratio, the numerator of which shall be the number of full months from the date said eligible vehicle is sold, damaged, stolen or removed from this state and registered in another state by a person who concurrently ceases to be a resident of this state, to the first day of the following October, and the denominator of which shall be twelve. If a person replaces an eligible vehicle so sold, damaged or stolen with another eligible vehicle in said assessment year, the difference between the amount of the reduced exemption as determined under this subparagraph and the amount of the exemption prior to such reduction, shall be applied to the net assessed value of the replacement vehicle, as defined in subsection (b) of section 12-71b.

Sec. 4. (NEW) (Effective July 1, 2007) (a) (1) There shall be a state grant to each municipality equal to the property tax revenue loss the municipality sustains as a result of exemptions approved under the provisions of subdivision (77) of section 12-81 of the general statutes, as amended by this act, for assessment years commencing on or after October 1, 2006. The provisions of subsection (b) of this section shall be applicable with respect to the grant payable for the assessment year commencing October 1, 2006. The provisions of subsection (c) of this section shall be applicable with respect to the grant payable for assessment years commencing on and after October 1, 2010. Not later than July first, annually, commencing July 1, 2008, and ending July 1, 2011, the tax collector of each municipality shall certify to the Secretary of the Office of Policy and Management, on a form said secretary prescribes and furnishes: (A) The amount of tax revenue loss due to exemptions approved under subdivision (77) of section 12-81 of the general statutes, as amended by this act, for the assessment list for the year commencing on the October first immediately preceding, and (B) the amount of tax revenue loss due to such exemptions approved for the supplemental assessment list for which taxes were due on the first day of January immediately preceding. The tax collector's certification shall reflect any additions or deletions to any such list the assessor approves prior to the first day of July. Said secretary shall review each such claim as provided in section 12-120b of the general statutes. Not later than June first following the conclusion of the assessment year for which the assessor approved such exemption, the secretary shall notify each claimant of the modification or denial of the claimant's exemption, in accordance with the procedure set forth in section 12-120b of the general statutes, provided if the date the secretary receives a tax collector's certification is subsequent to the first day of July in any year, the secretary's review shall be extended to not later than the date that follows, by one year, the date the secretary receives such certification. Any claimant aggrieved by the results of the secretary's review shall have the rights of appeal as set forth in section 12-120b of the general statutes. If any modification is made as the result of the provisions of this section on or after the date on which said secretary certifies the last installment of payment due a municipality in any fiscal year, any adjustment to the amount due such municipality, for the amount of revenue loss in question, shall be made in the next payment the Treasurer shall make to such municipality pursuant to this section.

(2) On or before the fifteenth day of October, annually, commencing October 15, 2008, and ending October 15, 2011, the tax collector of each municipality shall certify to the secretary, in the form and manner the secretary prescribes, the amount of any addition or reduction to the claim for reimbursement the tax collector submitted, on or before the first day of July in such year, for purposes of a corresponding adjustment in the amount of state payment to the municipality, for any assessment list to which such addition or reduction applies.

(3) Any tax collector who fails to comply with the requirements of this section shall forfeit one hundred dollars to the state, provided the secretary may waive such forfeiture upon receiving a written request from the tax collector not later than thirty days after the date any such certification to said secretary is required, if in the secretary's opinion there appears to be reasonable cause for the tax collector's failure to comply with the requirements of this section.

(b) (1) Subject to this provision set forth in this subsection, the assessor shall, not later than five days after approving exemptions under subdivision (77) of section 12-81 of the general statutes, as amended by this act, for the assessment year commencing October 1, 2006, revise the motor vehicle list of the town and the motor vehicle list of each municipality located within the town, to reflect the approval of such exemptions for said assessment year. The assessor shall, not later than ten days following the date such revision is complete, provide such revised list to the tax collector. Not later than ten days after receiving said revised list, the tax collector shall mail a tax bill to the owner of each eligible vehicle. No tax collector shall mail a tax bill for a motor vehicle property tax due, in the fiscal year commencing July 1, 2007, that does not reflect exemptions approved under the provisions of this section.

(2) The assessor may approve an exemption under subdivision (77) of section 12-81 of the general statutes, as amended by this act, for a lessee's eligible vehicle prior to receiving an exemption application from such lessee. In the event the lessee fails to comply with the requirement to file an application, as set forth in said subdivision (77) of section 12-81, the assessor shall issue a certificate of correction removing said exemption. Not later than five days after issuing such certificate, the assessor shall notify the tax collector of the additional assessment represented by such correction. The tax collector shall, not later than ten days after receiving a notice from the assessor, mail a tax bill to the taxpayer for the amount of such additional assessment, provided if there are any remaining installments of the tax due for said fiscal year, the tax collector may reflect the tax for such additional assessment in any such installment. Such tax shall be due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection.

(3) Not later than thirty days after mailing tax bills pursuant to subdivision (1) of this subsection, the tax collector shall certify to the secretary the amount of the municipality's revenue loss in the fiscal year commencing July 1, 2007, due to exemptions the assessor approved under this section and subdivision (77) of section 12-81 of the general statutes, as amended by this act, for the assessment year commencing October 1, 2006. The tax collector's certification of such revenue loss shall reflect any additions or deletions to the revised motor vehicle list for said assessment year that the assessor approves prior to the date the tax collector submits such certification. Not later than October 15, 2007, the tax collector shall certify to said secretary the amount of any addition or reduction to the claim for reimbursement submitted for said assessment year, for purposes of a corresponding adjustment in the amount of state payment to the municipality. The secretary shall, on or before November 15, 2007, certify to the Comptroller the amount due each municipality as reimbursement of the revenue loss in said fiscal year, and the Comptroller shall draw an order on the Treasurer on or before the twenty-fourth day of November following, and the Treasurer shall pay the amount thereof to such municipality on or before the thirtieth day of November following.

(c) In fiscal years commencing on and after July 1, 2012, each municipality shall receive a share of the total amount of revenue deposited into the Casino Assistance Revenue Fund established by section 1 of this act, augmented by any amount from the General Fund that may be added to said Casino Assistance Revenue Fund, in proportion to the amount of the municipality's reimbursement pursuant to this section for the fiscal year commencing July 1, 2011, to the total of the payments to all municipalities for said fiscal year.

(d) In any fiscal year in which the amount of revenue deposited into the Casino Assistance Revenue Fund, established by section 1 of this act, on or before the fifteenth day of November in said year is insufficient to pay the total amount of the grant due each municipality in a single installment, said secretary may certify more than one installment of grant payments to the Comptroller, in accordance with the schedule set forth in this subsection.

(1) In the fiscal year commencing July 1, 2008, the secretary may certify the grant in two installments, as follows: One-half of the total amount due shall be certified to the Comptroller not later than the fifteenth day of November, and the Comptroller shall draw an order on the Treasurer on or before the twenty-fourth day of November following and the Treasurer shall pay the amount thereof to such municipality on or before the thirtieth day of November following. The remainder of the total amount due shall be certified to the Comptroller not later than the fifteenth day of January following, and the Comptroller shall draw an order on the Treasurer on or before the twenty-fourth day of January following and the Treasurer shall pay the amount thereof to such municipality on or before the thirty-first day of January following.

(2) In the fiscal year commencing July 1, 2009, the secretary may certify the grant in three installments, as follows: One-third of the total amount due shall be certified to the Comptroller not later than the fifteenth day of November, and the Comptroller shall draw an order on the Treasurer on or before the twenty-fourth day of November following and the Treasurer shall pay the amount thereof to such municipality on or before the thirtieth day of November following; one-third of the total amount due shall be certified to the Comptroller not later than the fifteenth day of January, and the Comptroller shall draw an order on the Treasurer on or before the twenty-fourth day of January following and the Treasurer shall pay the amount thereof to such municipality on or before the thirty-first day of January following; and the remainder of the total amount due shall be certified to the Comptroller not later than the fifteenth day of April, and the Comptroller shall draw an order on the Treasurer on or before the twenty-fourth day of April following and the Treasurer shall pay the amount thereof to such municipality on or before the thirtieth day of April following.

(3) In fiscal years commencing on and after July 1, 2010, the secretary may certify the grant in four installments, as follows: One-quarter of the total amount due shall be certified to the Comptroller not later than the fifteenth day of November, and the Comptroller shall draw an order on the Treasurer on or before the twenty-fourth day of November following and the Treasurer shall pay the amount thereof to such municipality on or before the thirtieth day of November following; one-quarter of the total amount due shall be certified to the Comptroller not later than the fifteenth day of January, and the Comptroller shall draw an order on the Treasurer on or before the twenty-fourth day of January following and the Treasurer shall pay the amount thereof to such municipality on or before the thirty-first day of January following; one-quarter of the total amount due shall be certified to the Comptroller not later than the fifteenth day of April, and the Comptroller shall draw an order on the Treasurer on or before the twenty-fourth day of April following and the Treasurer shall pay the amount thereof to such municipality on or before the thirtieth day of April following; and the remainder of the total amount due shall be certified not later than the fifteenth day of June, and the Comptroller shall draw an order on the Treasurer on or before the twenty-fourth day of June following and the Treasurer shall pay the amount thereof to such municipality on or before the thirtieth day of June following.

Sec. 5. (NEW) (Effective July 1, 2007) (a) As used in this section, "eligible vehicle" and "lessee" shall have the same meaning as in subdivision (77) of section 12-81 of the general statutes, as amended by this act.

(b) Any person, firm or corporation licensed pursuant to section 14-15 of the general statutes, having executed a written agreement to lease an eligible vehicle to a lessee for whom an exemption under subdivision (77) of section 12-81 of the general statutes, as amended by this act, is approved for the assessment year commencing October 1, 2006, shall, if such agreement provides for the collection of a periodic fee for all or a portion of a property tax liability assigned to such lessee, return or cause to be credited to any periodic fee remaining under such agreement, any amount collected toward the payment of a property tax liability that is reduced as a result of the approval of such exemption for said assessment year. Any written agreement such licensee executes with a lessee, on or after the effective date of this section, shall provide for a mechanism by which to return or credit to any periodic fee remaining under such agreement, any amount collected toward the payment of a property tax liability that is reduced as a result of the approval of an exemption under said subdivision (77) of section 12-81 for any assessment year commencing on and after October 1, 2007, and on or before October 1, 2010.

(c) On or before the first of October of each year, commencing October 1, 2007, each such licensee shall submit to the Commissioner of Motor Vehicles, in the form and manner said commissioner may require, information concerning each motor vehicle such licensee owns, on the first day of October of each such year, and leases pursuant to a written agreement for a period of not less than one year. Such information shall include, but is not limited to: (1) The name and address of each lessee of an eligible vehicle; and (2) the name and address of any entity that is not a natural person and that has entered into a written agreement for the lease of a motor vehicle.

Sec. 6. Subsection (b) of section 12-704c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage, and applicable to taxable years commencing on or after January 1, 2007):

(b) (1) The credit allowed under this section shall not exceed two hundred fifteen dollars for the taxable year commencing on or after January 1, 1997, and prior to January 1, 1998; for taxable years commencing on or after January 1, 1998, but prior to January 1, 1999, three hundred fifty dollars; for taxable years commencing on or after January 1, 1999, but prior to January 1, 2000, four hundred twenty-five dollars; for taxable years commencing on or after January 1, 2000, but prior to January 1, 2003, five hundred dollars; for taxable years commencing on or after January 1, 2003, three hundred fifty dollars; for taxable years commencing on or after January 1, 2005, but prior to January 1, 2006, three hundred fifty dollars; and for taxable years commencing on or after January 1, 2006, but prior to January 1, 2007, five hundred dollars. In the case of any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing a joint return, the credit allowed, in the aggregate, shall not exceed such amounts for each such taxable year.

(2) The credit allowed under this section to nonqualifying individuals, as defined in subdivision (4) of this subsection, shall not exceed three hundred fifty dollars for taxable years commencing on or after January 1, 2007, but prior to January 1, 2008; two hundred twenty-five dollars for taxable years commencing on or after January 1, 2008, but prior to January 1, 2009; and one hundred dollars for taxable years commencing on or after January 1, 2009, but prior to January 1, 2010. In the case of any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing a joint return, the credit allowed, in the aggregate, shall not exceed such amounts for each such taxable year. For taxable years commencing on or after January 1, 2010, no credit shall be allowed under this section to nonqualifying individuals.

(3) The credit allowed under this section to qualifying individuals, as defined in subdivision (4) of this subsection, shall not exceed five hundred dollars for taxable years commencing on or after January 1, 2007.

(4) For purposes of this section, "qualifying individual" means an individual who has attained age sixty-five before the close of his or her taxable year. In the case of any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing a joint return, if either spouse is a qualifying individual, the other shall be treated as a qualifying individual. For purposes of this section, "nonqualifying individual" means any individual who is not a qualifying individual.

Sec. 7. Section 14-163 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) The commissioner shall compile information concerning motor vehicles and snowmobiles subject to property taxation pursuant to section 12-71 using the records of the Department of Motor Vehicles and information reported by owners of motor vehicles and snowmobiles. In addition to any other information the owner of a motor vehicle or snowmobile is required to file with the commissioner by law, such owner shall provide the commissioner with the name of the town in which such owner's motor vehicle or snowmobile is to be set in the list for property tax purposes, pursuant to section 12-71. On or before December 1, 2004, and annually thereafter, the commissioner shall furnish to each assessor in this state a list identifying motor vehicles and snowmobiles that are subject to property taxation in each such assessor's town. Said list shall include the names and addresses of the owners of such motor vehicles and snowmobiles, together with the vehicle identification numbers for all such vehicles for which such numbers are available.

(b) On or before October 1, 2004, and annually thereafter, the commissioner shall furnish to each assessor in this state a list identifying motor vehicles and snowmobiles in each such assessor's town that were registered subsequent to the first day of October of the assessment year immediately preceding, but prior to the first day of August in such assessment year, and that are subject to property taxation on a supplemental list pursuant to section 12-71b. In addition to the information for each such vehicle and snowmobile specified under subsection (a) of this section that is available to the commissioner, the list provided under this subsection shall include a code related to the date of registration of each such vehicle or snowmobile.

(c) On and after December 1, 2010, the list said commissioner provides under this section shall include motor vehicles and snowmobiles that are not eligible for the exemption under subdivision (77) of section 12-81, as amended by this act, but shall not include any eligible vehicle, as defined in said subdivision (77) of section 12-81, that a natural person owns or leases on or after October 1, 2010.

Sec. 8. Section 3-55i of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

There is established the ["Mashantucket Pequot and Mohegan Fund" which shall be a separate nonlapsing fund. All funds received by the state of Connecticut from the Mashantucket Pequot Tribe pursuant to the joint memorandum of understanding entered into by and between the state and the tribe on January 13, 1993, as amended on April 30, 1993, and any successor thereto, shall be deposited in the General Fund. During the fiscal year ending June 30, 2000, and each fiscal year thereafter, one hundred thirty-five million dollars, received by the state from the tribe pursuant to said joint memorandum of understanding, as amended, and any successor thereto, shall be transferred to the Mashantucket Pequot and Mohegan Fund and] Supplemental Municipal Assistance Grant, which shall be paid from the General Fund. Commencing with the fiscal year ending June 30, 2008, and each fiscal year thereafter, eighty-six million two hundred fifty thousand dollars shall be distributed by the Office of Policy and Management, during [said] such fiscal year, in accordance with the provisions of section 3-55j, as amended by this act. The amount of the grant payable to each municipality during any fiscal year, in accordance with said section, shall be reduced proportionately if the total of such grants exceeds the amount of funds available for such year. The grant shall be paid in three installments as follows: The Secretary of the Office of Policy and Management shall, annually, not later than the fifteenth day of December, the fifteenth day of March and the fifteenth day of June certify to the Comptroller the amount due each municipality under the provisions of section 3-55j, as amended by this act, and the Comptroller shall draw an order on the Treasurer on or before the fifth business day following the fifteenth day of December, the fifth business day following the fifteenth day of March and the fifth business day following the fifteenth day of June and the Treasurer shall pay the amount thereof to such municipality on or before the first day of January, the first day of April and the thirtieth day of June.

Sec. 9. Section 3-55j of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

(a) Twenty million dollars of the moneys available in the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant established by section 3-55i, as amended by this act, shall be paid to municipalities eligible for a state grant in lieu of taxes pursuant to section 12-19a in addition to the grants payable to such municipalities pursuant to section 12-19a, subject to the provisions of subsection (b) of this section. Such grant shall be calculated under the provisions of section 12-19a and shall equal one-third of the additional amount which such municipalities would be eligible to receive if the total amount available for distribution were eighty-five million two hundred five thousand eighty-five dollars and the percentage of reimbursement set forth in section 12-19a were increased to reflect such amount. Any eligible special services district shall receive a portion of the grant payable under this subsection to the town in which such district is located. The portion payable to any such district under this subsection shall be the amount of the grant to the town under this subsection which results from application of the district mill rate to exempt property in the district. As used in this subsection and subsection (c) of this section, "eligible special services district" means any special services district created by a town charter, having its own governing body and for the assessment year commencing October 1, 1996, containing fifty per cent or more of the value of total taxable property within the town in which such district is located.

(b) No municipality shall receive a grant pursuant to subsection (a) of this section which, when added to the amount of the grant payable to such municipality pursuant to section 12-19a, would exceed one hundred per cent of the property taxes which would have been paid with respect to all state-owned real property, except for the exemption applicable to such property, on the assessment list in such municipality for the assessment date two years prior to the commencement of the state fiscal year in which such grants are payable, except that, notwithstanding the provisions of said subsection (a), no municipality shall receive a grant pursuant to said subsection which is less than one thousand six hundred sixty-seven dollars.

(c) Twenty million one hundred twenty-three thousand nine hundred sixteen dollars of the moneys available in the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant established by section 3-55i, as amended by this act, shall be paid to municipalities eligible for a state grant in lieu of taxes pursuant to section 12-20a, in addition to and in the same proportion as the grants payable to such municipalities pursuant to section 12-20a, subject to the provisions of subsection (d) of this section. Any eligible special services district shall receive a portion of the grant payable under this subsection to the town in which such district is located. The portion payable to any such district under this subsection shall be the amount of the grant to the town under this subsection which results from application of the district mill rate to exempt property in the district.

(d) Notwithstanding the provisions of subsection (c) of this section, no municipality shall receive a grant pursuant to said subsection which, when added to the amount of the grant payable to such municipality pursuant to section 12-20a, would exceed one hundred per cent of the property taxes which, except for any exemption applicable to any private nonprofit institution of higher education, nonprofit general hospital facility or free standing chronic disease hospital under the provisions of section 12-81, as amended by this act, would have been paid with respect to such exempt real property on the assessment list in such municipality for the assessment date two years prior to the commencement of the state fiscal year in which such grants are payable.

(e) Thirty-five million dollars of the moneys available in the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant established by section 3-55i, as amended by this act, shall be paid to municipalities in accordance with the provisions of section 7-528, except that for the purposes of section 7-528, "adjusted equalized net grand list per capita" means the equalized net grand list divided by the total population of a town, as defined in subdivision (7) of subsection (a) of section 10-261, multiplied by the ratio of the per capita income of the town to the per capita income of the town at the one hundredth percentile among all towns in the state ranked from lowest to highest in per capita income, and "equalized net grand list" means the net grand list of such town upon which taxes were levied for the general expenses of such town two years prior to the fiscal year in which a grant is to be paid, equalized in accordance with section 10-261a.

(f) Five million four hundred seventy-five thousand dollars of the moneys available in the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant established by section 3-55i, as amended by this act, shall be paid to the following municipalities in accordance with the provisions of section 7-528, except that for the purposes of said section 7-528, "adjusted equalized net grand list per capita" means the equalized net grand list divided by the total population of a town, as defined in subdivision (7) of subsection (a) of section 10-261, multiplied by the ratio of the per capita income of the town to the per capita income of the town at the one hundredth percentile among all towns in the state ranked from lowest to highest in per capita income, and "equalized net grand list" means the net grand list of such town upon which taxes were levied for the general expenses of such town two years prior to the fiscal year in which a grant is to be paid, equalized in accordance with section 10-261a: Bridgeport, Hamden, Hartford, Meriden, New Britain, New Haven, New London, Norwalk, Norwich, Waterbury and Windham.

(g) Notwithstanding the provisions of subsections (a) to (f), inclusive, of this section, the total grants paid to the following municipalities from the moneys available in the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant established by section 3-55i, as amended by this act, shall be as follows:

(h) For the fiscal year ending June 30, 1999, and each fiscal year thereafter, if the amount of grant payable to a municipality in accordance with this section is increased as the result of an appropriation to the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant for such fiscal year which exceeds eighty-five million dollars, the portion of the grant payable to each eligible service district, in accordance with subsections (a) and (c) of this section shall be increased by the same proportion as the grant payable to such municipality under this section as a result of said increased appropriation.

(i) For the fiscal year ending June 30, 2003, to the fiscal year ending June 30, 2006, inclusive, the municipalities of Ledyard, Montville, Norwich, North Stonington and Preston shall each receive a grant of five hundred thousand dollars which shall be paid from the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant established by section 3-55i, as amended by this act, and which shall be in addition to the grants paid to said municipalities pursuant to subsections (a) to (g), inclusive, of this section.

(j) For the fiscal years ending June 30, 2000, June 30, 2001, and June 30, 2002, the sum of forty-nine million seven hundred fifty thousand dollars shall be paid to municipalities, and for the fiscal year ending June 30, 2003, and each fiscal year thereafter, the sum of forty-seven million five hundred thousand dollars shall be paid to municipalities, in accordance with this subsection, from the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant established by section 3-55i, as amended by this act. The grants payable under this subsection shall be used to proportionately increase the amount of the grants payable to each municipality in accordance with subsections (a) to (i), inclusive, of this section and shall be in addition to the grants payable under subsections (a) to (g), inclusive, of this section.

(k) The amount of the grant payable to each municipality in accordance with subsection (j) of this section shall be reduced proportionately in the event that the total of the grants payable to each municipality pursuant to this section exceeds the amount appropriated for such grants with respect to such year.

Sec. 10. Section 3-55l of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

(a) For the fiscal year ending June 30, 2006, the municipalities of Ledyard, Montville, Norwich, North Stonington and Preston shall each receive a grant of two hundred fifty thousand dollars which shall be paid from the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant established by section 3-55i, as amended by this act, and which shall be in addition to the grants paid to said municipalities pursuant to section 3-55j, as amended by this act.

(b) For the fiscal year ending June 30, 2007, and each fiscal year thereafter, the municipalities of Ledyard, Montville, Norwich, North Stonington and Preston shall each receive a grant of seven hundred fifty thousand dollars which shall be paid from said [fund] grant and which shall be in addition to the grants paid to said municipalities pursuant to section 3-55j, as amended by this act.

(c) The grants payable in accordance with this section shall be determined prior to the determination of grants pursuant to said section 3-55j, as amended by this act, and shall not be reduced proportionately if the total of the grants payable to each municipality pursuant to said section exceeds the amount appropriated for grants pursuant to section 3-55i, as amended by this act, with respect to each such year.

Sec. 11. Section 96 of public act 06-187 is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

For the fiscal year ending June 30, 2008, and each fiscal year thereafter, one million six hundred thousand dollars of the appropriation to the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant established pursuant to section 3-55i, as amended by this act, for Grants to Towns, shall be distributed to municipalities that are members of the Southeastern Connecticut Council of Governments and to any distressed municipality that is a member of the Northeastern Connecticut Council of Governments or the Windham Area Council of Governments. Said amount shall be distributed proportionately to each such municipality based on the total amount of payments received by all such municipalities [from said fund] in the preceding fiscal year, determined in accordance with section 3-55j of the general statutes, as amended by this act. The grants payable in accordance with this section shall be determined prior to the determination of grants pursuant to said section 3-55j and shall not be reduced proportionately if the total of the grants payable to each municipality pursuant to said section exceeds the amount appropriated for such grants with respect to such year. The payments to municipalities authorized by this section shall be made in accordance with the schedule set forth in section 3-55i of the general statutes, as amended by this act.

Sec. 12. Subsection (b) of section 22a-27j of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

(b) Not later than three months following the close of each fiscal year starting with fiscal year July 1, 2000, the Department of Environmental Protection shall identify those municipalities that are not in compliance with subsection (a) of this section for the previous fiscal year and shall provide the Office of Policy and Management with a list of such municipalities. The list shall be submitted annually and in such manner as the Office of Policy and Management may require. The Office of Policy and Management, when issuing the first payment from the [Mashantucket Pequot and Mohegan Fund] Supplemental Municipal Assistance Grant established pursuant to section 3-55i, as amended by this act, in the fiscal year during which said list is received, shall reduce said payment to a municipality by one thousand dollars for each quarter of the preceding fiscal year that the municipality has not been in compliance with subsection (a) of this section to a maximum of four thousand dollars in each fiscal year. The Office of Policy and Management shall certify to the State Comptroller the amount of any funds withheld under this subsection to be transferred to the Environmental Quality Fund for the uses set forth in subsection (a) of this section, and the State Comptroller shall cause said amount to be transferred to such fund.

Statement of Purpose:

To implement the Governor's budget recommendations.

[Proposed deletions are enclosed in brackets. Proposed 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.]