You asked a summary of the fiscal provisions of bills favorably reported by the Planning and Development Committee to the Finance, Revenue and Bonding Committee.

SB 649 AAC REGIONAL PLANNING ORGANIZATION TAX EXEMPTION

This bill exempts from the property tax property belonging to, or held in trust for, a regional council of elected officials, regional council of governments, or a regional planning agency.

sSB 1055 AA AUTHORIZING BONDS OF THE STATE FOR THE ELIMINATION OF THE OVERFLOW OF SEWAGE IN TOWNS SERVED BY THE METROPOLITAN DISTRICT COMMISSION AND FOR PLANNING AND DEVELOPMENT PROJECTS

This bill authorizes $ 10 million in bonding for the Department of Environmental Protection to provide a grant to the Metropolitan District Commission (MDC) to be used to eliminate of the overflow of sanitary sewage to Trout Brook, Piper Brook, Mill Brook, Goff Brook, Meadow Brook and the Connecticut River caused by the inflow of rainwater from drains, roof leaders and sump pumps and infiltration of groundwater into the sanitary sewers of West Hartford, Newington, Rocky Hill, Wethersfield and Windsor. The bill also authorizes bonding for a wide range of projects to be funded by the Department of Economic and Community Development (DECD) and the Office of Policy and Management (OPM), as described in Table 1.

Table 1: Bonding Authorized by sSB 1055

SB 1250 AA AUTHORIZING THE METROPOLITAN DISTRICT COMMISSION TO IMPOSE A SURCHARGE TO COVER THE COSTS OF IMPLEMENTING THE CLEAN WATER PROJECT AND TO ADOPT PROCUREMENT PROCESSES

This bill allows the MDC to impose a fee on member municipalities and customers to comply with a consent decree it entered into with the Environmental Protection Agency. It establishes minority business set aside requirements for MDC, but allows the Commission on Human Rights and Opportunities to waive or postpone these requirements based on the availability of contractors and subcontractors who can perform the contracts. If MDC does not meet the requirements and has not obtained a waiver, it would not longer be able to charge the fee.

SB 1056 AAC STATE REVENUE SHARING FOR COOPERATIVE MUNICIPAL ACTIVITIES

This bill requires the Department of Revenue Services to segregate 0. 5% of the sales tax revenue and place this money in a new “municipal cooperation incentive account. ” The money goes to regional councils of governments and regional councils of elected officials, based on their member municipalities' share of the state's population that are covered by these types of organizations. It appears that municipalities that have regional planning agencies (RPAs) rather than the councils would be ineligible for the grants. There are RPAs in Connecticut River estuary, greater Bridgeport, and lower Fairfield County.

The regional councils must use the money for general revenue sharing grants to member municipalities for specific initiatives undertaken jointly by two or more member municipalities to consolidate services and promote cooperation between municipalities to achieve economies of scale and lower costs, except costs of education. Grants may be used for capital improvements or other costs, including shared planning costs, the municipalities incur in implementing joint initiatives. The grants must be disbursed in accordance with an annual allocation plan approved by the council after a public hearing.

SB 1056 AA AUTHORIZING BONDS OF THE STATE FOR A MIXED USE DEVELOPMENT IN NORTH HAVEN

This bill authorizes $ 13 million in bonding for Department of Economic and Community Development (DECD) to provide a grant to North Haven for design, development and construction of a mixed-use development in the town.

SB 1057 AA AUTHORIZING BONDS OF THE STATE FOR DOWNTOWN DEVELOPMENT IN EAST HAVEN

This bill authorizes $ 1. 5 million for DECD to provide a grant to East Haven for design, development and construction of phase 3 of its downtown development plan.

sSB 1215 AAC RESPONSIBLE GROWTH

The bill provides new state aid to municipalities that upgrade their zoning practices and share services or perform functions jointly. To pay for the aid, the bill establishes new income tax brackets for higher-income households. For married couples filing jointly, it establishes a 5. 75 tax rate for income between $ 200,000 and $ 500,000, a 6% rate for income between $ 500,000 and $ 1 million, a 6. 5% rate for income between $ 1 million and $ 2 million, and a 7% rate for income above $ 2 million.

The bill taps sales tax revenues to establish a regional efficiency grant program, administered by OPM. The program provides grants to municipalities who are members of regional councils of government in which 60% cent of the member municipalities have (1) adopted revenue sharing under the bill; (2) participated in regional initiatives to consolidate the delivery of municipal services, such as joint delivery or joint contracting for delivery of educational services or other functions; and (3) are members of a regional asset district established under the bill.

The bill allows regional councils of governments that meet certain criteria to establish a regional assets district. It allows districts to negotiate and, by an affirmative vote of at least 60% of the district's board of directors, enter into funding agreements with owners and operators of regional assets. These assets include such things as libraries, recreational, cultural, and transportation facilities. To be eligible for this funding, the asset must serve a significant number of residents outside the municipality where it is located, and receive funding from other public and private sources within the region. The agreement must establish a minimum level of financial support the district will provide to the asset for the district's next ten fiscal periods.

A municipality participating in the district may (1) make grants from its revenues to the district to assist in defraying the costs of managing, operating, maintaining, financing and servicing the debt of the assets; (2) enter into long-term agreements providing for payment of the costs, and (3) enter into long-term leases as a lessee of all or part of the asset.

The bill establishes a Tax Expenditure Review Committee consisting of the leaders of the Planning and Development and Finance, Revenue and Bonding committees, members appointed by the governor and legislative leaders, and four agency heads. The bill requires the task force to (1) review existing state tax expenditures and spending and (2) evaluate priorities for such expenditures and spending. The evaluation must rank priorities for tax expenditures and spending and include recommendations on the priority of better land use and improved municipal services.

The bill also increases funding for education and payments in lieu of taxes and establishes a responsible growth planning program.

KM/JR: ro