AN ACT CONCERNING GOVERNMENT EFFICIENCY THROUGH REGIONALIZATION IN CONNECTICUT.

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

Section 1. (NEW) (Effective from passage) As used in sections 1 to 8, inclusive, of this act:

(1) "Household property tax liability" is defined as the sum of the property tax the household owes on their primary residence, including that owed to a municipality or a regional council, if such residence is assessed at less than five hundred thousand dollars, and up to two motor vehicles if such motor vehicles are assessed at less than ten thousand dollars each;

(2) "Household state income tax liability" is defined as the total state income taxes owed by all persons residing in the household;

(3) "Region" means a governance region established under section 3 of this act;

(4) "Regional council" means the council that governs a governance region; and

(5) "Transition decrease" means the amount of the decrease in property tax revenue for a municipality, calculated using the municipality's equalized mill rate, as defined in section 7-545 of the general statutes, for the tax year commencing January 1, 2010, that the municipality is expected to experience due to the implementation of section 2 of this act, minus the difference between the amount of funding that the municipality appropriated to its local or regional board of education for the fiscal year ending June 30, 2010, and the amount of the grant the municipality received under section 10-262i of the general statutes, for said fiscal year, and any grants that the local or regional board of education over which such municipality has jurisdiction received under title 10 of the general statutes.

Sec. 2. (NEW) (Effective July 1, 2010) Notwithstanding any provision of the general statutes, any regulation adopted pursuant to said statutes and any provision of any special or public act, no person's household property tax liability shall exceed that person's household income tax liability. Any person whose household property tax liability exceeds such person's household state income tax liability may inform the municipal tax collector, by using a form developed by such tax collector, that such person's household property tax liability is greater than permitted pursuant to this section and the tax collector shall adjust the amount of such person's household property tax liability to an amount that shall not exceed such person's household income tax liability.

Sec. 3. (NEW) (Effective from passage) (a) There are established six governance regions. Each region shall be comprised of municipalities that have jurisdiction over boards of education that are members of the same regional educational service center established under section 10-66a of the general statutes. Any municipality bordering a municipality that is in another region may switch to the other region on or before June 30, 2010, provided no municipality switches more than once.

(b) (1) Each region established under subsection (a) of this section shall be governed by a regional council. Not later than seven days following the effective date of this section, each chief municipal officer of each municipality shall appoint a resident of such municipality as a member to the regional council for such municipality. Any chief municipal officer of a municipality with a population equal to or greater than twenty thousand shall appoint an additional member for each twenty-thousand-person increment of total population. The term of each such appointed member shall expire January 20, 2011.

(2) As part of the state election held in 2010, each municipality shall elect a resident of such municipality to replace each member appointed under subdivision (1) of this subsection. Each such person shall become a member of the regional council on January 20, 2011. Such members shall be elected biennially for a term of two years.

(c) Each regional council, by majority vote of its members, shall determine the way services provided by the council are delivered and administered to the municipality the council serves, provided the council shall be considered government entities and shall be subject to laws governing state agencies. Notwithstanding any provision of the general statutes, any regulation adopted pursuant to said statutes or any special or public act, employees of the council shall receive the same benefits provided to state employees under provisions contained in the agreement between the State of Connecticut and the State Employees Bargaining Agent Coalition (SEBAC) ratified May 8, 2009, and any successor agreement.

Sec. 4. (NEW) (Effective from passage) (a) Notwithstanding any provision of the general statutes, any regulation adopted pursuant to said statutes and any provision of any special or public act, on and after July 1, 2010, no municipality shall be required to provide funding for any local or regional board of education that the municipality has jurisdiction over. Grants under title 10 of the general statutes, provided for such local and regional boards of education and municipalities, shall instead go to the regional council that serves such municipality.

(b) Each regional council shall provide to each municipality within its region a minimum budget appropriation as follows:

(1) To each local or regional board of education for each such municipality an appropriation in an amount of per student funding that the board of education or municipality received in the previous fiscal year; and

(2) To each local or regional board of education for each such municipality an appropriation that, if increased, shall not vary by more than five per cent from any increase given to any other such board of education.

(c) Notwithstanding any provision of the general statutes, any regulation adopted pursuant to said statutes and any provision of any special or public act, the functions and operations of the regional educational service center serving the local or regional school boards under the jurisdiction of municipalities shall cease to exist and the service center's functions and operations shall be transferred to the regional council serving such municipalities.

(d) Notwithstanding any provision of the general statutes, any regulation adopted pursuant to said statutes and any provision of any special or public act, each regional council is permitted to organize the delivery of education, and functions supporting the delivery of education, across existing school districts, provided any plan to organize the delivery of education:

(1) Has the consent to the local and regional boards of education under the jurisdiction of the municipalities in the region;

(2) Shall not reduce the level and quality of education delivered to students; and

(3) Shall continue to provide educational services in compliance with state laws.

(e) The Department of Education shall assist the regional councils in implementing the provisions of this section. The department shall cease operations as of June 30, 2011, with any grant distribution functions and school construction bond administration being transferred to the Office of Policy and Management.

Sec. 5. (NEW) (Effective from passage) (a) Notwithstanding any provision of the general statutes, any regulation adopted pursuant to said statutes and any provision of any special or public act, the Secretary of the Office of Policy and Management shall implement a transition of services and functions described in subsections (c) and (d) of this section to the regional councils.

(b) (1) Not later than June 1, 2010, the Secretary of the Office of Policy and Management shall determine each municipality's transition decrease. If any municipality's decrease calculates as less than zero, such decrease shall be adjusted to equal zero. Said secretary shall inform each regional council of any such decrease that is greater than two per cent for any municipality such council serves.

(2) Not later than July 1, 2010, each regional council shall implement a plan for each municipality it serves that was identified under subdivision (1) of this subsection as having a transition decrease greater than two per cent. Such plan shall (A) provide that the council takes over the provision of municipal services from the municipality, the cost in the municipality's budget of which is at least as much as the amount resulting from the loss of revenue calculated as the municipality's transition decrease, provided the council provides such services at a level that is at least equal to that previously provided by the municipality, (B) allow the council to provide a grant to such municipality that is in an amount that would equal the amount resulting from the loss of revenue calculated as the transition decrease, or (C) any combination of the provisions of subparagraphs (A) and (B) of this subdivision, provided such combination of effects results in a savings to the municipality that would equal the amount resulting from the loss of revenue calculated as the transition decrease.

(c) Any regionally-based functions of the Department of Transportation and the functions of the following departments and agencies, except as provided for in subsection (d) of this section, shall be transferred to the regional councils and implemented in a manner to serve the council's region:

(1) Department of Children and Families;

(2) The Connecticut State University System;

(3) The Community-Technical Colleges;

(4) Department of Economic and Community Development;

(5) Department of Mental Health and Addiction Services;

(6) The Division of State Police of the Department of Public Safety;

(7) Department of Social Services; and

(8) The Office of Workforce Competitiveness.

(d) Functions concerning policies and rates performed by the Department of Social Services shall be transferred to the Office of Policy and Management. Any state statute or regulation providing for nursing home rate redetermination based on the cost of providing care shall be in effect and regions shall provide funding at the levels required by such statutes or regulations. The General Assembly shall establish similar rate rules for other public services that regional councils shall adhere to.

(e) Each regional council may propose, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to government administration, plans to reorganize the delivery of the services transferred under the provisions of subsection (c) of this section in order to better provide service to people on a neighborhood and municipality basis. Any such plan, which may be amended by said committee or the General Assembly, shall be effective upon approval by the General Assembly.

(f) No regional council may provide services pursuant to this section at a level that is lower than that which is required by statute for services provided state-wide.

Sec. 6. (NEW) (Effective July 1, 2011) (a) Notwithstanding any provision of the general statutes, any regulation adopted pursuant to said statutes and any provision of any special or public act, in addition to the diversion of grants from municipalities and local or regional boards of education to regional councils, as provided for in subsection (a) of section 4 of this act, the Secretary of the Office of Policy and Management shall pay any grant for the purpose of regionalizing state functions that would otherwise go to a municipality to the regional council that serves such municipality.

(b) Each regional council shall distribute money paid to the council under subsection (a) of this section, subsection (a) of section 4 of this act, and sections 7 and 8 of this act to municipalities it serves in the form of grants described in subsection (c) of this section or to municipalities in accordance with the provisions of subsection (b) of section 5 of this act.

(c) The regional council shall distribute the grants under this subsection to the municipalities it serves in a manner determined by the council. Such grants shall be as follows:

(1) A base grant that shall be the product of (A) the region's population, and (B) a dollar amount, as determined by the council.

(2) An income modified grant that shall be the product of (A) the base grant, and (B) the dividend of the per capita income of the state divided by the region's per capita income.

(3) A higher education grant that shall be the product of (A) the number of full-time students, as defined in section 10a-26 of the general statutes, classified as in-state students under section 10a-29 of the general statutes, attending colleges and universities under management of the council, and (B) a dollar amount, as determined by the council.

(4) A health facilities grant that shall be the product of (A) the total amount appropriated by the General Assembly for Medicaid costs at the hospitals, nursing homes and other similar facilities, and (B) the dividend of the (i) Medicaid costs at the hospitals, nursing homes and other similar facilities located in municipalities served by the regional council, divided by (ii) state-wide Medicaid costs at the hospitals, nursing homes and other similar facilities.

Sec. 7. (NEW) (Effective July 1, 2010) (a) Any regional council may establish any type of tax, including, but not limited to, a retail sales tax, a tax on food and beverages, an amusements tax, a hotel tax, payroll taxes or hospital bed taxes, or a property tax pursuant to section 8 of this act.

(b) Any regional council tax imposed pursuant to this section shall be in addition to any state tax imposed on the same activity.

(c) (1) Any tax imposed by a regional council under the provisions of this section shall be collected and administered by the Department of Revenue Services, in the same manner as such taxes are currently paid, and in accordance with the laws governing such taxes. The department shall segregate the amount paid that is attributable to any regional council tax and, commencing on the first day of the calendar quarter next succeeding the institution of such regional council tax, remit to the regional council such amount. Thereafter, the department shall remit quarterly to the regional council any amounts received attributable to a regional council tax.

(2) The department may deduct from the amounts received attributable to regional council taxes any costs directly associated with the administration and collection of such taxes by the department.

(d) A regional council shall use the revenue generated by any tax enacted under the provisions of this section to fund grants under section 6 of this act.

Sec. 8 (NEW) (Effective from passage) (a) Any regional council may establish a property tax to be levied on the residents of the municipalities served by such council. Any such tax imposed pursuant to this section shall be in addition to any property tax imposed by a municipality and shall be imposed uniformly on all municipalities served by the council.

(b) Such property tax imposed by the regional council shall be collected and administered by the municipal tax collectors of the municipalities served by the council, in the same manner as such taxes are currently paid, and in accordance with the laws governing such taxes. The municipal tax collector shall segregate the amount paid that is attributable to any regional council property tax and, commencing on the first day of the calendar quarter next succeeding the institution of such regional council tax, remit to the regional council such amount. Thereafter, the tax collector shall remit semiannually to the regional council any amounts received attributable to a regional council tax.

(c) A regional council shall use the revenue generated by any tax enacted under the provisions of this section to fund grants under section 6 of this act.

Sec. 9. (Effective from passage) The Secretary of the Office of Policy and Management shall review the provisions of sections 1 to 8, inclusive, of this act. Not later than January 1, 2010, said secretary shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to government administration, recommendations, if any, for legislation required to further regionalize the functions of state and municipal governments.

Statement of Purpose:

To provide for the regionalization of state and municipal services.

[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.]