Substitute Senate Bill No. 1234
         Substitute Senate Bill No. 1234

              PUBLIC ACT NO. 97-274


AN  ACT  CONCERNING   CERTAIN  STATE  GRANT-IN-AID
PROGRAMS AND ABOLISHING CERTAIN DESIGNATED FUNDS.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  1.  Section   3-55i  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    There is established the ["Mashantucket Pequot
Fund"]  "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, 1994, funds  in excess of twenty-eight million
dollars, but not in excess of one hundred thirteen
million dollars, received by the state pursuant to
said  joint  memorandum   of   understanding,   as
amended, shall be  transferred to the Mashantucket
Pequot AND MOHEGAN  Fund  and shall be distributed
by the Office  of  Policy  and  Management, during
said  fiscal  year,   in   accordance   with   the
provisions of section  3-55j.  During  the  fiscal
year ending June  30,  1995,  and each fiscal year
thereafter, eighty-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 shall be
distributed   by  the   Office   of   Policy   and
Management, during said fiscal year, in accordance
with the provisions  of  section 3-55j, AS AMENDED
BY SECTION 2  OF THIS ACT. The amount of the grant
payable to each  municipality  during  any  fiscal
year, in accordance  with said [sections] 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
INSTALMENTS  AS  FOLLOWS:  THE  SECRETARY  OF  THE
OFFICE OF POLICY  AND  MANAGEMENT SHALL, ANNUALLY,
NOT LATER THAN  THE  FIRST  DAY  OF  DECEMBER, THE
FIRST DAY OF  MARCH  AND  THE  FIRST  DAY  OF JUNE
CERTIFY TO THE  COMPTROLLER  THE  AMOUNT  DUE EACH
MUNICIPALITY  UNDER  THE   PROVISIONS  OF  SECTION
3-55j, AS AMENDED  BY  SECTION  2 OF THIS ACT, AND
THE  COMPTROLLER  SHALL  DRAW  HIS  ORDER  ON  THE
TREASURER  ON  OR  BEFORE  THE  FIFTEENTH  DAY  OF
DECEMBER,  THE FIFTEENTH  DAY  OF  MARCH  AND  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. 2. Section  3-55j of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) [For the fiscal year ending June 30, 1994,
$20,000,000] TWENTY MILLION  DOLLARS of the moneys
available in the  Mashantucket  Pequot AND MOHEGAN
Fund established by  section  3-55i, AS AMENDED BY
SECTION  1  OF   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   [$85,205,085]    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. [The  grant  shall  be  paid in three
instalments  as  follows:  The  Secretary  of  the
Office of Policy  and  Management shall, not later
than December 1, 1993, March 1, 1994, and June 20,
1994, certify to  the  Comptroller  the amount due
each municipality under  the  provisions  of  this
section and the  Comptroller  shall draw his order
on the Treasurer  on  or before December 15, 1993,
March  15,  1994,  and  June  25,  1994,  and  the
Treasurer shall pay  the  amount  thereof  to such
municipality on or  before  January 1, 1994, April
1, 1994, and  June 30, 1994.] 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)   [Notwithstanding   the   provisions   of
subsection (a) of  this  section,  no municipality
shall receive a  grant pursuant to said subsection
which is less  than $1,667 and no] NO municipality
shall  receive  a   grant   pursuant   to   [said]
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) [For the fiscal year ending June 30, 1994,
$20,123,916]    TWENTY   MILLION    ONE    HUNDRED
TWENTY-THREE THOUSAND NINE HUNDRED SIXTEEN DOLLARS
of the moneys available in the Mashantucket Pequot
AND MOHEGAN Fund  established by section 3-55i, AS
AMENDED BY SECTION 1 OF 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.  [The grant shall be paid in
three instalments as follows: The Secretary of the
Office of Policy  and  Management shall, not later
than December 1, 1993, March 1, 1994, and June 20,
1994, certify to  the  Comptroller  the amount due
each municipality under  the  provisions  of  this
section and the  Comptroller  shall draw his order
on the Treasurer  on  or before December 15, 1993,
March  15,  1994,  and  June  25,  1994,  and  the
Treasurer shall pay  the  amount  thereof  to such
municipality on or  before  January 1, 1994, April
1, 1994, and  June 30, 1994.] 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, 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) [For the fiscal year ending June 30, 1994,
$35,000,000] THIRTY-FIVE MILLION  DOLLARS  of  the
moneys available in  the  Mashantucket  Pequot AND
MOHEGAN  Fund established  by  section  3-55i,  AS
AMENDED BY SECTION 1 OF THIS ACT, shall be paid to
municipalities in accordance  with  the provisions
of section 7-528,  AS AMENDED BY SECTION 3 OF THIS
ACT,  except that  for  the  purposes  of  section
7-528,  AS AMENDED  BY  SECTION  3  OF  THIS  ACT,
"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) [For the fiscal year ending June 30, 1994,
$5,475,000] FIVE MILLION FOUR HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS of  the  moneys  available in the
Mashantucket Pequot AND  MOHEGAN  Fund established
by section 3-55i,  AS AMENDED BY SECTION 1 OF THIS
ACT, shall be paid to the following municipalities
in  accordance  with  the  provisions  of  section
7-528, AS AMENDED BY SECTION 3 OF THIS ACT, 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, [for the  fiscal  year  ending  June  30,
1994,] the total  grants  paid  to  the  following
municipalities from the  moneys  available  in the
Mashantucket Pequot AND  MOHEGAN  Fund established
by section 3-55i,  AS AMENDED BY SECTION 1 OF THIS
ACT, shall be as follows:

        Bloomfield             $   267,489
        Bridgeport              10,506,506
        Bristol                  1,004,050
        Chaplin                    141,725
        Danbury                  1,612,564
        Derby                      432,162
        East Hartford              522,421
        East Lyme                  488,160
        Groton                   2,037,088
        Hamden                   1,592,270
        Manchester               1,014,244
        Meriden                  1,537,900
        Middletown               2,124,960
        Milford                    676,535
        New Britain              3,897,434
        New London               2,649,363
        North Haven                268,582
        Norwalk                  1,451,367
        Norwich                  1,662,147
        Preston                    461,939
        Rocky Hill                 477,950
        Stamford                 1,570,767
        Union                       38,101
        Voluntown                  156,902
        Waterbury                5,179,655
        Wethersfield               371,629
        Windham                  1,307,974
        Windsor Locks              754,833

    (h) [For the fiscal year ending June 30, 1994,
the]   THE  municipalities   of   Ledyard,   North
Stonington and Preston  shall each receive a grant
of [$25,000] TWENTY-FIVE  THOUSAND  DOLLARS  which
shall be paid  from  the  Mashantucket  Pequot AND
MOHEGAN  Fund established  by  section  3-55i,  AS
AMENDED BY SECTION  1 OF 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. [The Comptroller shall
draw his order  on  the  Treasurer for said amount
and the Treasurer  shall  pay  said amount to each
municipality.]
    Sec. 3. Section  7-528 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) As used in this section:
    (1) "Adjusted equalized  net  grand  list  per
capita" means the  adjusted  equalized  net  grand
list per capita  determined for each town pursuant
to section 10-261.
    (2)  "Municipality"  means   any  town,  city,
borough,   consolidated   town    and    city   or
consolidated town and borough;
    (3) "Per capita  income"  and "population" for
each town means that enumerated in the most recent
federal decennial census  of  population  or  that
enumerated in the  most  recent current population
report  series  issued   by   the   United  States
Department  of  Commerce,  Bureau  of  the  Census
available on January  first  of  the  fiscal  year
prior to the fiscal year in which payment is to be
made pursuant to  this  section, whichever is most
recent; and
    (4) "Secretary" means  the  Secretary  of  the
Office of Policy and Management.
    [(b) (1) On March thirty-first, annually, from
March 31, 1988,  to  March  31,  1991,  inclusive,
forty-two million dollars  shall  be paid from the
Local Property Tax  Relief  Trust Fund established
under section 7-526  to municipalities in the form
of  grants  for   the   unrestricted  use  of  the
municipalities. The Secretary  of  the  Office  of
Policy and Management  shall  in  February of each
year calculate the amount due each municipality in
accordance with the formula provided in subsection
(c) of this  section  and  shall  certify  to  the
Comptroller the amount due. (2) On or before March
first, annually, from  March 1, 1988, to March 31,
1991, inclusive, there  shall  be transferred from
the General Fund  such  sums,  if any, as shall be
certified by the  secretary to the State Treasurer
as necessary to  enable  the state to pay the full
amount from the  Local  Property  Tax Relief Trust
Fund to municipalities each year as required under
this subdivision without  a  premature liquidation
of long-term investments  entered  into  prior  to
July 1, 1987. Any such sum or sums shall be repaid
from the Local  Property  Tax Relief Trust Fund to
the General Fund as soon as the liquidity of trust
fund assets permits.  Up  to  one hundred thousand
dollars in the  property  tax relief fund shall be
transferred to the  General  Fund  not  later than
July 1, 1996.  The  amount so transferred shall be
credited to the  appropriation  for  the Office of
Policy and Management  for  use in funding studies
required of said  office  pursuant  to legislation
enacted during the February, 1996, regular session
of  the  General   Assembly,  including,  but  not
limited to, (A)  any  activities  of  a task force
instituted to study  municipal retirement plans or
(B) any activities  of  a  task  force  created to
reduce paperwork mandates on municipalities.]
    [(c)]   (b)   The   funds   allocated   [under
subsection (b) of] IN ACCORDANCE WITH this section
shall be distributed to each municipality pro rata
on  the  basis   of  the  following  formula:  The
population of each  town multiplied by the inverse
of  the adjusted  equalized  net  grand  list  per
capita of such  town  multiplied by the inverse of
the per capita  income  of  such town shall be the
numerator  of  the  fraction,  and  the  resulting
products shall be added together and the sum shall
be the denominator  of  the  fraction. Any city or
borough not consolidated with the town in which it
is located and  any town containing such a city or
borough shall share the allocation to such town on
the basis of  the following ratio: The total taxes
levied in the  previous  fiscal year by such town,
city or borough  shall  be  the  numerator  of the
fraction. The total  taxes  levied by the town and
all cities or  boroughs  located  within such town
shall be added  together, and the sum shall be the
denominator of the  fraction.  Any  such  city  or
borough may, by  vote  of  its  legislative  body,
direct the Secretary  of  the Office of Policy and
Management to reallocate  all  or a portion of the
share of such city or borough to the town in which
it is located.
    Sec. 4. Section  7-545 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a)  As used  in  [sections  7-545  to  7-547,
inclusive]  THIS SECTION  AND  SECTION  7-546,  AS
AMENDED BY SECTION 5 OF THIS ACT:
    (1) "Secretary" means  the  Secretary  of  the
Office of Policy and Management;
    (2)    "Municipality"    means    any    town,
consolidated town and  city  or  consolidated town
and borough;
    (3) "Per capita  income"  and "population" for
each town means that enumerated in the most recent
federal decennial census  of  population  or  that
enumerated in the current population report series
issued  by  the   United   States   Department  of
Commerce, Bureau of  the Census, whichever is more
recent  and available  on  January  first  of  the
fiscal year three  years  prior to the fiscal year
in which payment  is  to  be made pursuant to this
section;
    (4) "Adjusted equalized  net  grand  list  per
capita" means the  most  recent adjusted equalized
net grand list per capita determined for each town
pursuant to section 10-261;
    (5) "Equalized mill  rate"  means the tax rate
derived from the  most recent available grand levy
of a town  divided by the equalized net grand list
on which such  levy  is based as determined by the
secretary in accordance with section 10-261a;
    (6) "Per capita aid to families with dependent
children"  means the  number  obtained  by  adding
together  the  unduplicated  aggregate  number  of
children  eligible to  receive  benefits  by  town
under  the  aid   to  dependent  children  program
pursuant to sections  17b-22,  17b-180 to 17b-183,
inclusive, 17b-807 and  17b-808 in October and May
of each fiscal  year,  and  dividing  by two, such
number to be  certified and submitted annually, no
later than the first day of July of the succeeding
fiscal year, to  the secretary by the Commissioner
of Social Services. Such number shall be expressed
as a percentage of the population of a town;
    (7)  "Unemployment  rate"  means  the  average
unemployment rate of  a  town  as  reported by the
Labor Commissioner on  the  first  day of July for
the latest available twelve-month period;
    (8) "Eligibility index"  is a measure of local
burden   determined  by   calculating   a   town's
disparity  in  relation   to  all  municipalities.
Points  shall  be   allocated   for  each  of  the
following  factors: (A)  Per  capita  income,  (B)
adjusted equalized net  grand list per capita, (C)
equalized  mill  rate,   (D)  per  capita  aid  to
families   with  dependent   children,   and   (E)
unemployment rate. For  each  factor  the variance
shall  be  the   difference   between   the  first
percentile and the  one  hundredth percentile town
factors. In calculating  the eligibility index for
unemployment rate, per capita aid to families with
dependent children and  equalized  mill  rate, the
factor for the  first  percentile  town  shall  be
subtracted from the  factor  for  the town and the
result divided by  the  variance and multiplied by
one hundred. In  calculating the eligibility index
for per capita  income  and adjusted equalized net
grand list per  capita,  the  factor for the first
percentile  town  shall  be  subtracted  from  the
factor  for the  town  and  the  result  shall  be
divided by the  variance  and  multiplied  by  one
hundred. The product  of such multiplication shall
then be subtracted  from  one  hundred.  The index
points for all  factors  shall be totalled by town
resulting in the  overall  eligibility  index. The
eligibility index listing  shall be ranked for all
towns from highest  to  lowest points according to
need;
    (9)   "Public  investment   communities"   are
municipalities requiring financial  assistance  to
offset  their  service  burdens  with  eligibility
defined as one which is in the top quartile of the
"eligibility index" scale;
    (10) "Grand levy"  means  the mill rate of the
town multiplied by  the  net taxable grand list of
the town and includes the value of special service
districts if such districts contain fifty per cent
or more of  the  value  of  total taxable property
within the town.
    (b) On or  before  July 15, 1994, and annually
thereafter,  the  secretary   shall   prepare  the
eligibility index for Connecticut municipalities.
    Sec. 5. Section  7-546 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) The Secretary  of the Office of Policy and
Management shall establish  a program of financial
assistance in the  form of grants-in-aid to public
investment  communities  as   defined  in  section
7-545, AS AMENDED  BY  SECTION  4 OF THIS ACT. The
amount  of  each  grant  shall  be  determined  as
follows: The population  of  the public investment
community shall be  multiplied  by its eligibility
index and the  product  divided  by the product of
the   population   of    all   public   investment
communities multiplied by  the  total  eligibility
index of all  public  investment  communities. The
resulting  factors  for   each  public  investment
community shall be  totalled.  The  amount  of the
grant each public  investment  community  shall be
eligible for shall  bear  the same relationship to
the total amount  appropriated for such purpose as
does  the  factor   for   each  public  investment
community to the total of such factors.
    (b)   Each   public    investment    community
determined  to  be  eligible  for  a  grant  under
[sections  7-545  to   7-547,  inclusive]  SECTION
7-545, AS AMENDED  BY  SECTION  4 OF THIS ACT, AND
THIS SECTION, in  any  year  shall  continue to be
eligible during the four years next succeeding the
year in which such public investment community was
determined to be eligible.
    (c)  Each  town   shall   submit  a  plan  for
activities  to be  paid  with  grants  under  this
section  to  the   Commissioner  of  Economic  and
Community Development for  his approval. Financial
assistance  under  [sections   7-545   to   7-547,
inclusive] SECTION 7-545,  AS AMENDED BY SECTION 4
OF THIS ACT, AND THIS SECTION, may be used for the
following:   Job  training,   community   economic
development,  reduction in  workers'  compensation
costs,  facilitation of  environmental  compliance
and   permitting,  manufacturers'   tax   rebates,
contributions  to  regional  economic  development
revolving loan funds  and  the creation of net new
jobs in retail  establishments  and  job retention
and the creation  of net new jobs in manufacturing
establishments. Not more than five per cent of any
amount received under this section may be used for
planning and administrative costs.
    Sec. 6. Sections 4-68l, 7-526, 7-526a, 7-526b,
7-527, 7-547, 12-62b  and  12-62e  of  the general
statutes are repealed.
    Sec. 7. This  act  shall  take effect from its
passage.

Approved June 26, 1997