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statutes is repealed and the following is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