Connecticut Seal

General Assembly

 

Substitute Bill No. 1215

    January Session, 2007

*_____SB01215PD_FIN032307____*

AN ACT IMPLEMENTING A PROCESS OF STATE-WIDE RESPONSIBLE GROWTH.

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

Section 1. (NEW) (Effective October 1, 2007) (a) There is established a process for adoption, amendment, revision and implementation of a state economic development plan. The Commissioner of Economic and Community Development shall prepare the plan, in consultation with the Secretary of the Office of Policy and Management, the Labor Commissioner, the Connecticut Development Authority and Connecticut Innovations, Incorporated, regional councils of government and regional planning agencies.

(b) In developing the plan, the Commissioner of Economic and Community Development shall:

(1) Evaluate economic development in the state, and shall include a review of population, geography, workforce development and employment, transportation access and resources, environment and any other aspects of the state's economy the commissioner deems appropriate;

(2) Analyze economic and community development problems and opportunities in the state including (A) reviewing other government sponsored or supported plans and applicable state and local workforce investment strategies, and (B) identifying past, present and projected future economic development investments in the state:

(3) Define economic development problems of the state and establish goals and objectives to solve such problems;

(4) Provide for community and private sector participation in implementation of the plan;

(5) List all existing and proposed state projects and estimate the numbers of jobs created because of such projects;

(6) Identify and prioritize vital projects, programs and activities that address the state's greatest needs or that best enhance the state's competitiveness and identify sources of funding for past and potential future investments;

(7) Identify economic clusters that are growing or declining within the state;

(8) Propose a plan of action to implement the following goals: (A) Promoting economic development and opportunity, (B) fostering effective transportation access, (C) enhancing and protecting the environment, (D) maximizing the effective development and use of the workforce consistent with applicable state or local workforce investment strategy, (E) promoting the use of technology in economic development, including access to high-speed telecommunications, (F) balancing resources through sound management of physical development, and (G) obtaining and utilizing adequate funds and other resources; and

(9) List performance measures to evaluate successful development and implementation of the plan, including, but not limited to, (A) the number of jobs created after implementation of the plan, (B) the number and types of public and private investments undertaken in the state, (C) the number of jobs retained, (D) the amount of private sector investment in the state after implementation of the plan, and (E) changes in the economic environment of the region.

(c) Any amendment to the plan shall be made in the same manner as adoption or revision under this section.

Sec. 2. (NEW) (Effective October 1, 2007) (a) The Commissioner of Economic and Community Development shall supervise the process for adopting, amending, revising and implementing the economic development plan. The commissioner shall present a draft of the plan for preliminary review to the joint standing committees of the General Assembly having cognizance of matters relating to planning and development, commerce, finance, revenue and bonding and appropriations and the budgets of state agencies not later than March 15, 2008, and every five years thereafter.

(b) The commissioner shall publish the draft of the plan and disseminate it to the public. The Secretary of the Office of Policy and Management shall post the plan on the Internet web site of the state.

(c) The commissioner shall submit a copy of the draft economic development plan to the Office of Policy and Management for a determination of consistency with the state plan of conservation and development and to the Commissioner of Transportation for a determination of consistency with the state master transportation plan.

(d) Not later than five months after publication of said plan, the commissioner shall hold public hearings, in cooperation with regional planning agencies, to solicit comments on said plan.

(e) The commissioner shall consider the comments received at the public hearings and shall make any necessary or desirable revisions to said plan. Not more than three months after completion of the public hearings, the commissioner shall submit the final plan to the General Assembly. The plan shall become effective upon adoption by the General Assembly as the economic development plan of the state. In the event that the General Assembly disapproves the plan in whole or in part, the plan shall be deemed to be rejected and shall be returned to the commissioner for appropriate action.

Sec. 3. Section 16a-31 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) The following actions when undertaken by any state agency, with state or federal funds, shall be consistent with the plan:

(1) The acquisition of real property when the acquisition costs are in excess of one hundred thousand dollars;

(2) The development or improvement of real property when the development costs are in excess of one hundred thousand dollars;

(3) The acquisition of [public transportation] equipment or facilities when the acquisition costs are in excess of one hundred thousand dollars; and

(4) The authorization of each state grant or loan or the allocation of any tax credit, any application for which is not pending on July 1, 1991, for an amount in excess of one hundred thousand dollars. [, for the acquisition or development or improvement of real property or for the acquisition of public transportation equipment or facilities.] A state agency shall not implement an action unless the Secretary of the Office of Policy and Management determines that such action conforms with the plan.

(b) A state agency shall request, and the secretary shall provide, [an advisory] statement commenting on the extent to which any of the actions specified in subsection (a) of this section conforms to the plan and any agency may request and the secretary shall provide such other advisory reports as the state agency deems advisable.

(c) The secretary shall submit and the State Bond Commission shall consider prior to the allocation of any bond funds for any of the actions specified in subsection (a) [an advisory] a statement commenting on the extent to which such action is in conformity with the plan of conservation and development. The commission shall not approve an allocation of bond funds unless the secretary determines that the allocation conforms with the plan.

(d) Notwithstanding subsection (b) of this section, The University of Connecticut shall request, and the secretary shall provide, an advisory statement commenting on the extent the projects included in the third phase of UConn 2000, as defined in subdivision (25) of section 10a-109c, conform to the plan and the university may request and the secretary shall provide such other advisory reports as the university deems advisable. Notwithstanding subsection (c) of this section, the secretary shall submit and the State Bond Commission shall consider prior to the approval of the master resolution or indenture for securities for the third phase of UConn 2000, pursuant to subsection (c) of section 10a-109g, the advisory statement prepared under this subsection.

(e) Whenever a state agency is required by state or federal law to prepare a plan, it shall consider the state plan of conservation and development in the preparation of such plan. A draft of such plan shall be submitted to the secretary who shall provide for the preparer of the plan an advisory report commenting on the extent to which the proposed plan conforms to the state plan of conservation and development. The state agency shall not implement the plan unless the secretary determines that such plan conforms to the state plan of conservation and development.

Sec. 4. Section 4-124d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

The council shall consider such matters of a public nature common to two or more members of the council as it deems appropriate, including matters affecting the air, land, water supply, health, safety, welfare, education and economic conditions of the area comprised by its members. The council shall promote cooperative arrangements and coordinate action among its members and make recommendations therefor to the members and such other public agencies as exist or perform functions within the region or regions.

Sec. 5. (NEW) (Effective July 1, 2007) (a) Any regional council of governments, organized under the provisions of section 4-124i to 4-124p, inclusive, of the general statutes may establish a process for review of projects of regional significance. Such process shall establish criteria and procedures for approving or rejecting such projects and for their review. As used in this section, a project of regional significance means a project subject to review by the State Traffic Commission pursuant to section 14-311 of the general statutes.

(b) On or after the establishment of the process provided for in subsection (a) of this section, no project of regional significance may be implemented unless it is approved by the regional council of government for the area in which the project is located.

Sec. 6. Section 8-35a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) At least once every ten years, each regional planning agency shall make a plan of development for its area of operation, showing its recommendations for the general use of the area including land use, housing, principal highways and freeways, bridges, airports, parks, playgrounds, recreational areas, schools, public institutions, public utilities, agriculture and such other matters as, in the opinion of the agency, will be beneficial to the area. Any regional plan so developed shall be based on studies of physical, social, economic and governmental conditions and trends and shall be designed to promote with the greatest efficiency and economy the coordinated development of its area of operation and the general welfare and prosperity of its people. Such plan may encourage energy-efficient patterns of development, the use of solar and other renewable forms of energy, and energy conservation. Such plan shall be designed to promote abatement of the pollution of the waters and air of the region. The plan shall include provisions for disaster response and regional purchase of interoperable equipment and communication devices for first responders. The regional plan shall identify areas where it is feasible and prudent (1) to have compact, transit accessible, pedestrian-oriented mixed use development patterns and land reuse, and (2) to promote such development patterns and land reuse and shall note any inconsistencies with the following growth management principles: (A) Redevelopment and revitalization of regional centers and areas of mixed land uses with existing or planned physical infrastructure; (B) expansion of housing opportunities and design choices to accommodate a variety of household types and needs; (C) concentration of development around transportation nodes and along major transportation corridors to support the viability of transportation options and land reuse; (D) conservation and restoration of the natural environment, cultural and historical resources and traditional rural lands; (E) protection of environmental assets critical to public health and safety; and (F) integration of planning across all levels of government to address issues on a local, regional and state-wide basis. The plan shall identify measurable economies of scale for government functions, including, but not limited to, health districts, planning assistance and interoperable geographic information system mapping of the region, compatible with the state geographic information system. The plan of each region contiguous to Long Island Sound shall be designed to reduce hypoxia, pathogens, toxic contaminants and floatable debris in Long Island Sound.

(b) The regional planning agency shall prepare and include in the plan a comprehensive economic development strategy. In developing the strategy the agency shall:

(1) Evaluate economic development in the region, and shall include a review of population, geography, workforce development and employment, transportation access and resources, environment and any other aspects of the region's economy the commissioner deems appropriate;

(2) Analyze economic and community development problems and opportunities in the state, including (A) review of other government sponsored or supported plans and applicable state and local workforce investment strategies, and (B) identification of past, present and projected future economic development investments in the region;

(3) Define economic development problems of the region and establish goals and objectives to solve the economic development of such problems;

(4) Provide for community and private sector participation in implementation of the plan;

(5) List all projects and estimated numbers of jobs to be created from such projects;

(6) Identify and prioritize vital projects, programs and activities that address the state's greatest needs or that best enhance the state's competitiveness and identify sources of funding for past and potential future investments;

(7) Identify economic clusters that are growing or declining within the region;

(8) Propose a plan of action to implement the following goals: (A) Promoting economic development and opportunity, (B) fostering effective transportation access, (C) enhancing and protecting the environment, (D) maximizing the effective development and use of the workforce consistent with applicable state or local workforce investment strategy, (E) promoting the use of technology in economic development, including access to high-speed telecommunications, (F) balancing resources through sound management of physical development, and (G) obtaining and utilizing adequate funds and other resources;

(9) List performance measures to evaluate successful development and implementation of the plan, including, but not limited to, (A) the number of jobs created after implementation of the plan, (B) the number and types of public and private investments undertaken in the region, (C) the number of jobs retained, (D) the amount of private sector investment in the region after implementation of the plan, and (E) changes in the economic environment of the region; and

(10 ) Outline the methodology for integrating the plan with regional economic priorities.

[(b)] (c) Before adopting the regional plan of development or any part thereof or amendment thereto the agency shall hold at least one public hearing thereon, notice of the time, place and subject of which shall be given in writing to the chief executive officer and planning commission, where one exists, of each member town, city or borough. Notice of the time, place and subject of such hearing shall be published once in a newspaper having a substantial circulation in the region. At least sixty-five days before the public hearing the regional planning agency shall post the plan on the Internet web site of the agency, if any, and submit the plan to the Secretary of the Office of Policy and Management for findings in the form of comments and recommendations. Such findings shall include a review of the plan to determine if the proposed regional plan of development [is not inconsistent] conforms with the state plan of conservation and development and the state comprehensive economic development plan. Such notices shall be given not more than twenty days nor less than ten days before such hearing. [The regional planning agency shall note on the record any inconsistency with the state plan of conservation and development and the reasons for such inconsistency.] Adoption of the plan or part thereof or amendment thereto shall be made by the affirmative vote of not less than a majority of the representatives on the agency. The plan shall be posted on the Internet web site of the agency, if any, and a copy of the plan or of any amendments thereto, signed by the chairman of the agency, shall be transmitted to the chief executive officers, the town, city or borough clerks, as the case may be, and to planning commissions, if any, in member towns, cities or boroughs, and to the Secretary of the Office of Policy and Management, or his designee. The regional planning agency shall notify the Secretary of the Office of Policy and Management of any inconsistency with the state plan of conservation and development and the reasons therefor.

[(c)] (d) The regional planning agency shall revise the plan of development not more than three years after July 1, 2005.

[(d)] (e) The regional planning agency shall assist municipalities within its region and state agencies and may assist other public and private agencies in developing and carrying out any regional plan or plans of such regional planning agency. The regional planning agency may provide administrative, management, technical or planning assistance to municipalities within its region and other public agencies under such terms as it may determine, provided, prior to entering into an agreement for assistance to any municipality or other public agency, the regional planning agency shall have adopted a policy governing such assistance. The regional planning agency may be compensated by the municipality or other public agency with which an agreement for assistance has been made for all or part of the cost of such assistance.

Sec. 7. (NEW) (Effective July 1, 2007) (a) There is established a responsible growth planning grant program which shall be administered by the Secretary of the Office of Policy and Management. The purpose of the program shall be to provide financial assistance to municipalities to upgrade planning and zoning regulations with responsible growth provisions in order to qualify for grants under section 8 of this act.

(b) The Secretary of the Office of Policy and Management shall adopt regulations, in accordance with chapter 54 of the general statutes, for the administration of this section, including the establishment of eligibility requirements, funding limitations and the application process.

Sec. 8. (NEW) (Effective July 1, 2007) (a) There is established a responsible growth planning program which shall be administered by the Secretary of the Office of Policy and Management. The purpose of the program shall be to provide grants to municipalities that (1) adopt responsible growth planning and zoning regulations, and (2) participate in regional activities that support responsible growth and are coordinated by the regional councils of government or regional councils of elected officials.

(b) To be eligible for a grant under this section, a municipality shall submit information to the secretary sufficient for the secretary to determine that:

(1) The municipality has (A) zoning regulations that are consistent with the plan of conservation and development of the municipality, (B) provided for transit-oriented development within walkable or bikable distance from a transit center, (C) established density bonuses for housing where there is supporting infrastructure, and (D) has adopted approval processes for land use application that are predictable and efficient and based on clear standards;

(2) The municipality is a member of a regional council of government that (A) has a plan of development for its area of operation that conforms with state plan of conservation and development adopted under part I of chapter 297 of the general statutes and plans of conservation and development adopted by member municipalities, (B) has adopted a process to review projects of regional significance under section 5 of this act, and (C) has updated its plan of development, required under section 8-35a of the general statutes, as amended by this act, to include a comprehensive economic development strategy; and

(3) At least sixty per cent of the municipalities that are members of the regional council of government of the applicant municipality have (A) adopted municipal plans of conservation and development consistent with the regional plan of development and the state plan of conservation and development; (B) documented participation in the preparation of the regional plan of development and the state plan of conservation and development; and (C) zoning regulations in place that encourage mixed-use or mixed-income development or provide for overlay zones permitting mixed-use or mixed-income development.

(c) In each fiscal year, the amount of any grant to a municipality under this section shall be equal to one-half of the total of the share of the municipality for town aid under section 13a-17b of the general statutes and for local capital improvements under section 7-536 of the general statutes multiplied by the amount of funds appropriated for this section.

(d) The Secretary of the Office of Policy and Management shall adopt regulations, in accordance with chapter 54 of the general statutes, for the administration of this section, including the establishment of the application procedures and criteria for making determinations under subsection (b) of this section.

Sec. 9. (NEW) (Effective July 1, 2007) (a) There is established a regional efficiency grant program which shall be administered by the Secretary of the Office of Policy and Management. The purpose of the program shall be to provide financial assistance to municipalities who are members of regional councils of government in which sixty per cent of the member municipalities have (1) adopted revenue sharing under sections 12 to 17, inclusive, of this act; (2) participated in regional initiatives that consolidate the delivery of municipal services, including, but not limited to, joint-service delivery or joint contracting for service delivery of functions including, but not limited to, education, public safety, employee benefits and public works that consolidate; or (3) are members of a regional asset district established under the provisions of sections 18 to 25, inclusive, of this act. A regional council of government shall be eligible for a grant under this section if at least sixty per cent of the municipalities that are members of the regional council of government of which the applicant municipality is a member have met any of the criteria of subdivisions (1) to (3), inclusive, of this subsection.

(b) Each regional council of government applying for a grant under this section shall file with the secretary an application. Not later than sixty days after receipt of such application, the secretary may issue a certificate of eligibility for the grant. The regional council of government may annually file an application for the grant and certificate of eligibility.

(c) The Secretary of the Office of Policy and Management shall adopt regulations, in accordance with chapter 54 of the general statutes, for the administration of this section, including the establishment of the application procedures.

Sec. 10. (NEW) (Effective July 1, 2007) The regional council of government shall use the grant received under section 9 of this act for grants to member municipalities. In each fiscal year, the amount of any grant to a municipality under this section shall be equal to one-half of the total of the share of the municipality for town aid under section 13a-17b of the general statutes and for local capital improvements under section 7-536 of the general statutes multiplied by the amount of funds appropriated for this section.

Sec. 11. (NEW) (Effective October 1, 2007) (a) Upon submission by a regional council of government of a certificate of eligibility for a regional efficiency grant under section 9 of this act, the Commissioner of Revenue Services shall segregate one per cent of the gross receipts from the sales within the meaning of subdivision (2) of subsection (a) of section 12-407 of the general statutes in such regional council of government.

(b) The Commissioner of Revenue Services shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, with respect to accounting procedures to implement the provisions of this section.

Sec. 12. (NEW) (Effective July 1, 2007) (a) As used in sections 13 to 17, inclusive, of this act:

(1) "Regional council of government" means any regional council of governments, organized under the provisions of sections 4-124i to 4-124p, inclusive, of the general statutes.

(2) "Fiscal capacity of a municipality" means the fair market value of all taxable real and personal property, determined as of January second of any year, divided by its population, determined as of a date in the same year.

(3) "Net tax capacity" means the fair market value of real and personal property multiplied by its net tax capacity rates determined in accordance with section 16 of this act.

(b) Any regional council of government may establish a revenue sharing program pursuant to the provisions of this section and sections 13 to 17, inclusive, of this act.

Sec. 13. (NEW) (Effective July 1, 2007) On or before August fifth annually, the assessors of each municipality that is a member of the regional council of government shall determine and certify to such regional council of government the net tax capacity in that year of commercial-industrial property subject to taxation within such municipality.

Sec. 14. (NEW) (Effective July 1, 2007) On or before July fifteenth, annually, each municipality shall determine the amount, if any, by which the net tax capacity determined in the preceding year under section 13 of this act of commercial-industrial property subject to taxation within each municipality in the year the regional council of government adopted the provisions of sections 12 to 17, inclusive, of this act exceeds the net tax capacity in year the regional council of government of commercial-industrial property subject to taxation within that municipality. The increase in total net tax capacity determined by this section shall be reduced by the amount of any decreases in net tax capacity of commercial-industrial property resulting from any court decisions, court related stipulation agreements, or abatements for a prior year, in the amount of such decreases made during the twelve-month period ending on May first of the current assessment year, where such decreases, if originally reflected in the determination of a prior year's net tax capacity, would have resulted in a smaller contribution from the municipality in that year. An adjustment for such decreases shall be made only if the municipality made a contribution in a prior year based on the higher net tax capacity of the commercial-industrial property.

Sec. 15. (NEW) (Effective July 1, 2007) (a) Each municipality shall certify the determinations under sections 13 and 14 of this act to the regional council of government on or before August first, annually. Such regional council of government shall determine an amount equal to forty per cent of the sum of the amounts certified under section 14 of this act. The resulting amount shall be known as the "area-wide net tax capacity for ........(year)".

(b) The Secretary of the Office of Policy and Management shall certify to the regional council of government, on or before August tenth, annually, the population of each municipality for the preceding year, the proportion of that population which resides within the area, the average fiscal capacity of all municipalities in the area for the preceding year and the fiscal capacity of each municipality in the area for the preceding year.

(c) The regional council of government shall determine, for each municipality, the product of (1) its population, and (2) the proportion which the average fiscal capacity of municipalities for the preceding year bears to the fiscal capacity of that municipality for the preceding year. The product shall be the area-wide tax base distribution index for that municipality.

(d) The regional planning agency shall determine the proportion which the index of each municipality bears to the sum of the indices of all municipalities and shall then multiply this proportion in the case of each municipality, by the area-wide net tax capacity.

(e) The result of the procedure prescribed by subsection (d) of this section shall be known as the "area-wide net tax capacity for ........(year) attributable to ..................(municipality)". The regional council of government shall certify such product to the municipality on or before August fifteenth.

Sec. 16. (NEW) (Effective July 1, 2007) (a) The regional council of government shall determine the net tax capacity of each municipality within the regional council of government in the manner prescribed by this section.

(b) The net tax capacity of a municipality is its net tax capacity, subject to the following adjustments:

(1) There shall be subtracted from its net tax capacity, in each municipality, an amount which bears the same proportion to forty per cent of the amount certified in that year for the municipality as the total preceding year's net tax capacity of commercial-industrial property which is subject to the taxing jurisdiction of the municipality within the municipality, bears to the total preceding year's net tax capacity of commercial-industrial property within the municipality.

(2) There shall be added to its net tax capacity, in each municipality, an amount which bears the same proportion to the area-wide net tax capacity for the year attributable to that municipality as the total preceding year's net tax capacity of residential property which is subject to the taxing jurisdiction of the municipality within the municipality bears to the total preceding year's net tax capacity of residential property of the municipality.

(c) The regional council of government shall apportion the levy of each municipality in the regional council of government in the manner prescribed by this subsection. The regional council of government shall:

(1) By August twentieth, determine the area-wide portion of the levy for each municipality by multiplying the local tax rate of the municipality for the preceding levy year times the distribution value set forth in subsection (b) of this section; and

(2) By September fifth, determine the local portion of the current year's levy by subtracting the resulting amount from subdivisions (1) of subsection (b) of this section from the municipality's current year's levy.

(d) On or before August twenty-fifth, the municipality shall certify to the regional council of government that portion of the levy of each municipality determined under subsection (b) of this section. The regional council of government shall then determine the area-wide tax rate sufficient to yield an amount equal to the sum of such levies from the area-wide net tax capacity. On or before September first, annually, the regional council of government shall certify the area-wide tax rate to each municipality.

(e) The area-wide tax rate shall apply to each commercial-industrial property subject to taxation within a municipality to that portion of the net tax capacity of the item which bears the same proportion to its total net tax capacity as forty per cent of the amount determined under sections 15 and 16 of this act is to the amount determined under section 13 of this act.

(f) The regional council of government shall determine for each municipality the difference between the total levy on distribution value, within the municipality and the total tax on contribution value within the municipality. On or before May sixteenth, annually, the regional council of government shall certify the differences so determined to each municipality. The regional planning agency shall certify to municipalities in which the total tax on contribution value exceeds the total levy on distribution value the settlement the municipality is to make to the other municipalities of the excess of the total tax on contribution value over the total levy on distribution value in the municipality. On or before June fifteenth and November fifteenth annually, each municipality having a total tax on contribution value in excess of the total levy on distribution value shall pay one-half of the excess to the other municipalities in accordance with the administrative auditors certification.

Sec. 17. (NEW) (Effective July 1, 2007) (a) If there is a reassessment of all or any portion of the property in a municipality other than in the form of a mathematically prescribed adjustment of valuation, or if omitted property is placed upon the tax rolls, and the reassessment has not been completed or the property placed upon the rolls, as the case may be, by November fifteenth, the net tax capacity of the affected property shall, be determined from the tax information in the office of the assessor of the municipality.

(b) If the reassessment, when completed and incorporated in the certification of the net tax capacity of the municipality, or the listing of omitted property, when placed on the rolls, results in an increase in the net tax capacity of commercial-industrial property in the municipality which differs from that used, for purposes of sections 13 to 15, inclusive, of this act, the increase in the net tax capacity of commercial-industrial property in that municipality in the succeeding year, as otherwise computed, shall be adjusted in a like amount, by an increase if the reassessment or listing discloses a larger increase than was used for purposes of sections 13 to 15, inclusive, of this act, or by a decrease if the reassessment or listing discloses a smaller increase than was used for those purposes, provided that no adjustment shall reduce the amount determined to an amount less than zero.

(c) The provisions of subsections (a) and (b) of this section shall not apply to the determination of the net tax capacity of commercial-industrial property and each item thereof.

Sec. 18. (NEW) (Effective July 1, 2007) (a) If a municipality does not certify its levy by November twenty-fifth, then its levy shall be deemed to equal its levy in the preceding year.

(b) If a municipality certifies its levy on or before November twenty-fifth, no change in its levy subsequent to that date shall be recognized.

(c) If, in any year, the levy employed in respect to a municipality, and its actual levy as determined subsequent to November twenty-fifth is a different amount, then its levy as otherwise determined in the succeeding year shall, for purposes of those provisions, be increased in the amount of the difference if the actual levy was greater than that employed for purposes of those provisions, or decreased in the amount of the difference if the actual levy was less than that employed for purposes of those provisions.

Sec. 19. (NEW) (Effective July 1, 2007) As used in sections 20 to 25, inclusive, of this act:

(1) "Board" or "board of directors" means the governing body of a regional assets district established pursuant to section 21 of this act;

(2) "Regional assets district" or "district" means any district established pursuant to section 20 of this act;

(3) "Municipality" means a town, city or borough; and

(4) "Regional asset" means a civic, science, recreational, sports, arts, transportation or cultural facility or project or a library which is part of a multimunicipal system, but does not include schools or health care facilities.

Sec. 20. (NEW) (Effective July 1, 2007) (a) Any regional council of governments organized under the provisions of sections 4-124i to 4-124p, inclusive, of the general statutes whose member towns represent fifty per cent or more of the population in its planning region may, by concurrent ordinance of the legislative body of each municipality that is a member of such regional council of governments, as the case may be, establish a regional assets district. Any two or more regional councils of governments or councils of elected officials may jointly establish a regional assets district.

(b) Any municipality may withdraw from a district by adoption of an ordinance by its legislative body. Any such ordinance shall be effective six months after such adoption.

Sec. 21. (NEW) (Effective July 1, 2007) (a) Each regional assets district established pursuant to section 20 of this act shall be a body corporate and politic. Any such district shall be a political subdivision of the state established and created for the performance of an essential public and government function.

(b) Each district shall continue in existence perpetually regardless of any actions by a municipality except that the district may be terminated pursuant to an intergovernmental cooperation agreement between the municipalities which transfers without impairment all of the administrative, managerial or financial functions exercised with respect to regional assets by the district to a municipality within the district.

(c) The district shall be governed by a board of directors, the composition of which shall be part of the initial concurrent ordinance authorizing the formation of the district. The members shall elect from among themselves a chairperson, vice-chairperson, secretary, treasurer and such other officers as they may determine. A member may hold more than one office of the board at any time. Members may serve successive terms as officers of the board.

(d) The board shall meet as frequently as it deems appropriate but at least once during each quarter of the fiscal year. A meeting of the board shall be called by the chairperson upon request to the chairperson by at least two members of the board. A majority of the members of the board shall constitute a quorum for the purpose of conducting the business of the board and for all other purposes, except that for the purposes of making decisions regarding personnel matters, contracts and capital and operating budgets, and deciding whether to enter into cooperation and support agreements with regional assets, an affirmative vote of sixty per cent of the members of the board shall be required.

Sec. 22. (NEW) (Effective July 1, 2007) (a) Each regional assets district established pursuant to section 20 of this act, shall have the following powers and duties and may exercise such powers in its own name:

(1) To make, enter into and award contracts with any person, association, partnership or corporation for the development, design, financing, construction, improvement, maintenance, operation, furnishing, fixturing, equipping and repair of regional assets;

(2) To conduct financial and performance reviews and audits of regional assets;

(3) To conduct long-term planning necessary for the efficient and effective operation and development of regional assets;

(4) To make bylaws with respect to the exercise of its own powers;

(5) To make, enter into and award contracts of every name and nature and to execute all instruments necessary or convenient for the carrying out of its business;

(6) To accept grants and to enter into contracts, leases, subleases, licenses or other transactions with any federal agency, state or political subdivision, person, association, partnership or corporation;

(7) To procure insurance in such amounts and from such insurers as the district may determine to be necessary or desirable for its purposes;

(8) To cooperate with any federal or state agency or political subdivision; and

(9) To invest any funds not required for immediate disbursement.

(b) The district shall not employ personnel directly engaged in the operation of regional assets, but may enter into contracts with municipal and other public and private organizations for the operation and financing of regional assets.

(c) The board of directors shall appoint an advisory board comprised of representatives of business, nonprofit organizations, civic, municipal and state leaders to assist the district in determining how best to spur economic growth using regional asset funds. Each member of the advisory board shall be appointed for a term of four years, except that of the initial appointments, one-half shall serve for a term of two years and one-half shall serve for a term of three years.

Sec. 23. (NEW) (Effective July 1, 2007) (a) Each district may negotiate and, by an affirmative vote of not less than sixty per cent of the board of directors, enter into cooperation and support agreements with owners and operators of regional assets which meet the eligibility criteria set forth in subsection (b) of this section.

(b) In order to qualify for funding from a regional assets district, in addition to any criteria established by the district, a regional asset shall serve a significant number of residents outside the municipality in which it is located, and receive funding from other public and private sources within the region. In determining whether a regional asset is eligible for funding, priority shall be given to regional assets located in a municipality which is a distressed municipality, as defined in section 32-9p of the general statutes or a targeted investment community, as defined in section 32-222 of the general statutes, or which qualifies for urban action bond funds pursuant to section 4-66c of the general statutes.

(c) The cooperation and support agreement executed with the owner and operator of each regional asset shall set forth a minimum level of financial support for the regional asset that shall be provided by the district in each of the first ten fiscal periods of the district, unless the regional asset ceases operations at the option of its owner and operator. The minimum level of financial support for a regional asset shall be not less than the financial support for the regional asset provided by the district during the first fiscal year of the agreement. If the minimum funding levels cannot be satisfied because of the lack of adequate resources, the minimum levels of funding for all regional assets shall be reduced by an equal fraction so as to ensure that total obligations do not exceed total revenues available to the district.

(d) The board shall conduct public hearings and meetings regarding proposed cooperation and support agreements and any revisions to such agreements.

Sec. 24. (NEW) (Effective July 1, 2007) (a) Each fiscal year the board shall adopt an operating and capital budget based upon all the cooperation and support agreements executed with the owners and operators of regional assets. The budget shall estimate the total revenues required for the operating and capital expenses of the district including revenues anticipated to fund such agreements.

(b) The board shall provide for an annual audit by an independent certified public accounting firm of the district's fiscal records and other records. A copy of such audit shall be sent to the Secretary of the Office of Policy and Management.

(c) The fiscal year of any district established pursuant to sections 20 to 25, inclusive, of this act shall jointly be determined by the governing body of a district and the Commissioner of Revenue Services.

(d) From the total amount of funds allocated to a regional assets district in any fiscal year, the board of said district may deduct and retain one per cent of the funds provided or thirty thousand dollars, whichever is greater, for reasonable administrative costs.

Sec. 25. (NEW) (Effective July 1, 2007) Any municipality participating in the district may (1) make grants from current revenues to the district and to assist in defraying the costs of managing, operating, maintaining, financing and servicing the debt of regional assets or parts of regional assets, (2) enter into long-term agreements providing for payment of the costs, and (3) enter into long-term leases or subleases as lessee or sublessee of all or part of a regional asset. Obligations of the municipality to make grants or lease or sublease payments to the district shall not constitute debts of the municipality and shall be payable only to the extent that current revenues of the municipality are available. Any such municipality may issue general obligation bonds for the purpose of obtaining funds for the acquisition or improvement of regional assets or parts of regional assets.

Sec. 26. (Effective from passage) (a) There is established a Tax Expenditure Review Committee which shall be comprised of the following members: (1) The chairpersons and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to planning and development and finance, revenue and bonding, or their designees; (2) one member appointed by each of the following: The Governor, the president pro tempore of the Senate, the speaker of the House of Representatives, the majority leader of the Senate, the majority leader of the House of Representatives, the minority leader of the House of Representatives and the minority leader of the Senate; and (3) the Commissioners of Revenue Services, Economic and Community Development, Transportation and the Secretary of the Office of Policy and Management, or their designees.

(b) The task force shall review existing state tax expenditures and spending and evaluate priorities for such expenditures and spending. Such evaluation shall rank priorities for tax expenditures and spending and shall include a recommendation on the priority of better land use and improved municipal services.

(c) The speaker of the House of Representatives and the president pro tempore of the Senate shall select the chairpersons of the task force, from among the members of the task force. Such chairpersons shall schedule the first meeting of the task force, which shall be held not later than sixty days after the effective date of this section.

(d) The administrative staff of the joint standing committee of the General Assembly having cognizance of matters relating to planning and development shall serve as administrative staff of the task force.

(e) Not later than January 1, 2009, the task force shall submit a report on its findings and recommendations to the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and finance, revenue and bonding, in accordance with the provisions of section 11-4a of the general statutes. The task force shall terminate on the date that it submits such report or January 1, 2009, whichever is later.

Sec. 27. (NEW) (Effective July 1, 2007) The Commissioner of Revenue Services shall develop and disseminate a program to inform the public about applicability of use taxes imposed under the provisions of chapter 219 of the general statutes to purchases made on the Internet. Such program shall include, but not be limited to, information on the amount of the tax and methods of payment.

Sec. 28. Subsection (a) of section 12-700 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007, and applicable to taxable years commencing on or after January 1, 2007):

(a) There is hereby imposed on the Connecticut taxable income of each resident of this state a tax:

(1) At the rate of four and one-half per cent of such Connecticut taxable income for taxable years commencing on or after January 1, 1992, and prior to January 1, 1996.

(2) For taxable years commencing on or after January 1, 1996, but prior to January 1, 1997, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T1

Connecticut Taxable Income

Rate of Tax

T2

    Not over $2,250

    3.0%

T3

    Over $2,250

    $67.50, plus 4.5% of the

T4

 

    excess over $2,250

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T5

Connecticut Taxable Income

Rate of Tax

T6

    Not over $3,500

    3.0%

T7

    Over $3,500

    $105.00, plus 4.5% of the

T8

 

    excess over $3,500

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or a person who files a return under the federal income tax as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T9

Connecticut Taxable Income

Rate of Tax

T10

    Not over $4,500

    3.0%

T11

    Over $4,500

    $135.00, plus 4.5% of the

T12

 

    excess over $4,500

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income.

(3) For taxable years commencing on or after January 1, 1997, but prior to January 1, 1998, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T13

Connecticut Taxable Income

Rate of Tax

T14

    Not over $6,250

    3.0%

T15

    Over $6,250

    $187.50, plus 4.5% of the

T16

 

    excess over $6,250

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T17

Connecticut Taxable Income

Rate of Tax

T18

    Not over $10,000

    3.0%

T19

    Over $10,000

    $300.00, plus 4.5% of the

T20

 

    excess over $10,000

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or any person who files a return under the federal income tax for such taxable year as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T21

Connecticut Taxable Income

Rate of Tax

T22

    Not over $12,500

    3.0%

T23

    Over $12,500

    $375.00, plus 4.5% of the

T24

 

    excess over $12,500

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income.

(4) For taxable years commencing on or after January 1, 1998, but prior to January 1, 1999, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T25

Connecticut Taxable Income

Rate of Tax

T26

    Not over $7,500

    3.0%

T27

    Over $7,500

    $225.00, plus 4.5% of the

T28

 

    excess over $7,500

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T29

Connecticut Taxable Income

Rate of Tax

T30

    Not over $12,000

    3.0%

T31

    Over $12,000

    $360.00, plus 4.5% of the

T32

 

    excess over $12,000

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or any person who files a return under the federal income tax for such taxable year as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T33

Connecticut Taxable Income

Rate of Tax

T34

    Not over $15,000

    3.0%

T35

    Over $15,000

    $450.00, plus 4.5% of the

T36

 

    excess over $15,000

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income.

(5) For taxable years commencing on or after January 1, 1999, but prior to January 1, 2003, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T37

Connecticut Taxable Income

Rate of Tax

T38

    Not over $10,000

    3.0%

T39

    Over $10,000

    $300.00, plus 4.5% of the

T40

 

    excess over $10,000

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T41

Connecticut Taxable Income

Rate of Tax

T42

    Not over $16,000

    3.0%

T43

    Over $16,000

    $480.00, plus 4.5% of the

T44

 

    excess over $16,000

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or any person who files a return under the federal income tax for such taxable year as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T45

Connecticut Taxable Income

Rate of Tax

T46

    Not over $20,000

    3.0%

T47

    Over $20,000

    $600.00, plus 4.5% of the

T48

 

    excess over $20,000

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income.

(6) For taxable years commencing on or after January 1, 2003, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T49

Connecticut Taxable Income

Rate of Tax

T50

    Not over $10,000

    3.0%

T51

    Over $10,000

    $300.00, plus 5.0% of the

T52

 

    excess over $10,000

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T53

Connecticut Taxable Income

Rate of Tax

T54

    Not over $16,000

    3.0%

T55

    Over $16,000

    $480.00, plus 5.0% of the

T56

 

    excess over $16,000

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or any person who files a return under the federal income tax for such taxable year as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T57

Connecticut Taxable Income

Rate of Tax

T58

    Not over $20,000

    3.0%

T59

    Over $20,000

    $600.00, plus 5.0% of the

T60

 

    excess over $20,000

(D) For trusts or estates, the rate of tax shall be 5.0% of the Connecticut taxable income.

(7) For taxable years commencing on or after January 1, 2007, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T61

Connecticut Taxable Income

Rate of Tax

T62

Not over $10,000

3.0%

T63

Over $10,000 but not over

$300.00, plus 5.0% of the excess

T64

$200,000

over $10,000

T65

Over $200,000 but not over

$10,000, plus 5.75% of the excess

T66

$500,000

over $200,000

T67

Over $500,000 but not over

$28,750, plus 6.0% of the excess

T68

$1,000,000

over $500,000

T69

Over $1,000,000 but not over

$60,000, plus 6.5% of the excess

T70

$2,000,000

over $1,000,000

T71

Over $2,000,000

$130,000, plus 7.0% of the excess

T72

 

over $2,000,000

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T73

Connecticut Taxable Income

Rate of Tax

T74

Not over $16,000

3.0%

T75

Over $16,000 but not over

$480.00, plus 5.0% of the excess

T76

$200,000

over $16,000

T77

Over $200,000 but not over

$10,000, plus 5.75% of the excess

T78

$500,000

over $200,000

T79

Over $500,000 but not over

$28,750, plus 6.0% of the excess

T80

$1,000,000

over $500,000

T81

Over $1,000,000 but not over

$60,000, plus 6.5% of the excess

T82

$2,000,000

over $1,000,000

T83

Over $2,000,000

$130,000, plus 7.0% of the excess

T84

 

over $2,000,000

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or any person who files a return under the federal income tax for such taxable year as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T85

Connecticut Taxable Income

Rate of Tax

T86

Not over $20,000

3.0%

T87

Over $20,000, but not over

$600.00, plus 5.0% of the excess

T88

$200,000

over $20,000

T89

Over $200,000 but not over

$10,000, plus 5.75% of the excess

T90

$500,000

over $200,000

T91

Over $500,000 but not over

$28,750, plus 6.0% of the excess

T92

$1,000,000

over $500,000

T93

Over $1,000,000 but not over

$60,000, plus 6.5% of the excess

T94

$2,000,000

over $1,000,000

T95

Over $2,000,000

$130,000, plus 7.0% of the excess

T96

 

over $2,000,000

(D) For trusts or estates, the rate of tax shall be 5.0% of the Connecticut taxable income.

[(7)] (8) The provisions of this subsection shall apply to resident trusts and estates and, wherever reference is made in this subsection to residents of this state, such reference shall be construed to include resident trusts and estates, provided any reference to a resident's Connecticut adjusted gross income derived from sources without this state or to a resident's Connecticut adjusted gross income shall be construed, in the case of a resident trust or estate, to mean the resident trust or estate's Connecticut taxable income derived from sources without this state and the resident trust or estate's Connecticut taxable income, respectively.

Sec. 29. Section 12-19a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2007, and applicable to assessment years commencing on or after October 1, 2007):

(a) On or before January first, annually, the Secretary of the Office of Policy and Management shall determine the amount due, as a state grant in lieu of taxes, to each town in this state wherein state-owned real property, reservation land held in trust by the state for an Indian tribe or a municipally owned airport, except that which was acquired and used for highways and bridges, but not excepting property acquired and used for highway administration or maintenance purposes, is located. The grant payable to any town under the provisions of this section in the state fiscal year commencing July 1, 1999, and each fiscal year thereafter, shall be equal to the total of (1) (A) one hundred per cent of the property taxes which would have been paid with respect to any facility designated by the Commissioner of Correction, on or before August first of each year, to be a correctional facility administered under the auspices of the Department of Correction or a juvenile detention center under direction of the Department of Children and Families that was used for incarcerative purposes during the preceding fiscal year. If a list containing the name and location of such designated facilities and information concerning their use for purposes of incarceration during the preceding fiscal year is not available from the Secretary of the State on the first day of August of any year, said commissioner shall, on said first day of August, certify to the Secretary of the Office of Policy and Management a list containing such information, (B) one hundred per cent of the property taxes which would have been paid with respect to that portion of the John Dempsey Hospital located at The University of Connecticut Health Center in Farmington that is used as a permanent medical ward for prisoners under the custody of the Department of Correction. Nothing in this section shall be construed as designating any portion of The University of Connecticut Health Center John Dempsey Hospital as a correctional facility, and (C) in the state fiscal year commencing July 1, 2001, and each fiscal year thereafter, one hundred per cent of the property taxes which would have been paid on any land designated within the 1983 Settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation on or after June 8, 1999, (2) subject to the provisions of [subsection (c)] subsections (c) and (g) of this section, sixty-five per cent of the property taxes which would have been paid with respect to the buildings and grounds comprising Connecticut Valley Hospital in Middletown. Such grant shall commence with the fiscal year beginning July 1, 2000, and continuing each year thereafter, (3) notwithstanding the provisions of subsections (b) and (c) of this section, with respect to any town in which more than fifty per cent of the property is state-owned real property, one hundred per cent of the property taxes which would have been paid with respect to such state-owned property. Such grant shall commence with the fiscal year beginning July 1, 1997, and continuing each year thereafter, (4) subject to the provisions of [subsection (c)] subsections (c) and (f) of this section, forty-five per cent of the property taxes which would have been paid with respect to all other state-owned real property, and (5) subject to the provisions of subsection (f) of this section, forty-five per cent of the property taxes which would have been paid with respect to all municipally owned airports; except for the exemption applicable to such property, on the assessment list in such town for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable. The grant provided pursuant to this section for any municipally owned airport shall be paid to any municipality in which the airport is located, except that the grant applicable to Sikorsky Airport shall be paid half to the town of Stratford and half to the city of Bridgeport. [For the fiscal year ending June 30, 2000, and in each fiscal year thereafter, the amount of the grant payable to each municipality in accordance with this section shall be reduced proportionately in the event that the total of such grants in such year exceeds the amount appropriated for the purposes of this section with respect to such year.]

(b) As used in this section "total tax levied" means the total real property tax levy in such town for the fiscal year preceding the fiscal year in which a grant in lieu of taxes under this section is made, reduced by the Secretary of the Office of Policy and Management in an amount equal to all reimbursements certified as payable to such town by the secretary for real property exemptions and credits on the taxable grand list or rate bill of such town for the assessment year that corresponds to that for which the assessed valuation of the state-owned land and buildings has been provided. For purposes of this section and section 12-19b, any real property which is owned by the John Dempsey Hospital Finance Corporation established pursuant to the provisions of sections 10a-250 to 10a-263, inclusive, or by one or more subsidiary corporations established pursuant to subdivision (13) of section 10a-254 and which is free from taxation pursuant to the provisions of subdivision (13) of section 10a-259 shall be deemed to be state-owned real property. As used in this section and section 12-19b, "town" includes borough.

(c) In the fiscal year ending June 30, 1991, and in each fiscal year thereafter, the portion of the grant payable to any town as determined in accordance with subdivisions (2) and (4) of subsection (a) of this section, shall not be greater than the following percentage of total tax levied by such town on real property in the preceding calendar year as follows: (1) In the fiscal year ending June 30, 1991, ten per cent, (2) in the fiscal year ending June 30, 1992, twelve per cent, (3) in the fiscal year ending June 30, 1993, fourteen per cent, (4) in the fiscal year ending June 30, 1994, twenty-seven per cent, (5) in the fiscal year ending June 30, 1995, thirty-five per cent, (6) in the fiscal year ending June 30, 1996, forty-two per cent, (7) in the fiscal year ending June 30, 1997, forty-nine per cent, (8) in the fiscal year ending June 30, 1998, fifty-six per cent, (9) in the fiscal year ending June 30, 1999, sixty-three per cent, (10) in the fiscal year ending June 30, 2000, seventy per cent, (11) in the fiscal year ending June 30, 2001, seventy-seven per cent, (12) in the fiscal year ending June 30, 2002, eighty-four per cent, (13) in the fiscal year ending June 30, 2003, ninety-two per cent, and (14) in the fiscal year ending June 30, 2004, and in each fiscal year thereafter, one hundred per cent.

(d) In the fiscal year commencing July 1, 1999, and in each fiscal year thereafter, the Commissioner of Transportation shall pay from the Bradley International Airport Enterprise Fund to the State Comptroller, on or before September fifteenth, the portion of the state grant in lieu of taxes payable under the provisions of this section at the rate of twenty per cent of the property taxes which would have been paid to the towns of East Granby, Suffield, Windsor and Windsor Locks for real property located at Bradley International Airport. Such payment shall be credited to the appropriation from the General Fund for reimbursements to towns for loss of taxes on state property.

(e) Notwithstanding the provisions of this section in effect prior to January 1, 1997, any grant in lieu of taxes on state-owned real property made to any town in excess of seven and one-half per cent of the total tax levied on real property by such town is validated.

(f) In the fiscal year ending June 30, 2008, and in each fiscal year thereafter, the amount of the grant provided pursuant to subdivisions (2), (4) and (5) of subsection (a) of this section shall be one hundred per cent of the property taxes which would have been paid with respect to all other state-owned real property.

Sec. 30. Section 12-20a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) On or before January first, annually, the Secretary of the Office of Policy and Management shall determine the amount due to each municipality in the state, in accordance with this section, as a state grant in lieu of taxes with respect to real property owned by any private nonprofit institution of higher learning or any nonprofit general hospital facility or free standing chronic disease hospital or an urgent care facility that operates for at least twelve hours a day and that had been the location of a nonprofit general hospital for at least a portion of calendar year 1996 to receive payments in lieu of taxes for such property, exclusive of any such facility operated by the federal government, except a campus of the United States Department of Veterans Affairs Connecticut Healthcare Systems, or the state of Connecticut or any subdivision thereof. As used in this section "private nonprofit institution of higher learning" means any such institution, as defined in subsection (a) of section 10a-34, or any independent college or university, as defined in section 10a-37, that is engaged primarily in education beyond the high school level, and offers courses of instruction for which college or university-level credit may be given or may be received by transfer, the property of which is exempt from property tax under any of the subdivisions of section 12-81; "nonprofit general hospital facility" means any such facility which is used primarily for the purpose of general medical care and treatment, exclusive of any hospital facility used primarily for the care and treatment of special types of disease or physical or mental conditions; and "free standing chronic disease hospital" means a facility which provides for the care and treatment of chronic diseases, excluding any such facility having an ownership affiliation with and operated in the same location as a chronic and convalescent nursing home.

(b) The grant payable to any municipality under the provisions of this section in the state fiscal year commencing July 1, 1999, and [in each fiscal year thereafter] until the fiscal year commencing July 1, 2007, shall be equal to seventy-seven per cent of the property taxes which, except for any exemption applicable to any such institution of higher education or general hospital facility 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 grant is payable. [The amount of the grant payable to each municipality in any year in accordance with this section shall be reduced proportionately in the event that the total of such grants in such year exceeds the amount appropriated for the purposes of this section with respect to such year.] In the state fiscal year commencing July 1, 2008, and in each fiscal year thereafter, the amount of the grant shall be one hundred per cent of the property taxes which would have been paid with respect to such property.

(c) Notwithstanding the provisions of subsection (b) of this section, the amount of the grant payable to any municipality under the provisions of this section with respect to a campus of the United States Department of Veterans Affairs Connecticut Healthcare Systems shall be as follows: (1) For the fiscal year ending June 30, 2007, twenty per cent of the amount payable in accordance with said subsection (b); (2) for the fiscal year ending June 30, 2008, forty per cent of such amount; (3) for the fiscal year ending June 30, 2009, sixty per cent of such amount; (4) for the fiscal year ending June 30, 2010, eighty per cent of such amount; (5) for the fiscal year ending June 30, 2011, and each fiscal year thereafter, one hundred per cent of such amount.

(d) As used in this section and section 12-20b, the word "municipality" means any town, consolidated town and city, consolidated town and borough, borough, district, as defined in section 7-324, and any city not consolidated with a town. )

Sec. 31. Section 10-76g of the general statutes is amended by adding subsections (e) and (f) as follows (Effective July 1, 2007):

(NEW) (e) Any school district, except a state-operated school district, which provides special education in accordance with regulations adopted pursuant to sections 10-76a to 10-76g, inclusive, for any exceptional child described in subparagraph (A) of subdivision (5) of section 10-76a, shall, for each fiscal year, be reimbursed for a percentage of its net cost of special education for the preceding fiscal year, as defined in subsection (h) of section 10-76f, equal to the percentage such school district would be eligible to receive pursuant to subsection (f) of this section. Applications for such reimbursements shall be made not later than October first, and all such reimbursements shall be paid not later than December fifteenth, provided, if a school district submits after November first the audited data, pursuant to section 10-227, upon which reimbursements are based or if the data submitted would result in increased reimbursements in excess of one hundred twenty per cent of the reimbursements for the prior fiscal year, then not less than eighty-five per cent of the estimated reimbursements based upon the prior year's reported expenditures shall be paid not later than December fifteenth and the adjusted balance shall be paid not later than March first.

(NEW) (f) A school district providing special education in accordance with regulations adopted pursuant to sections 10-76a to 10-76g, inclusive, for any exceptional child described in subparagraph (A) of subdivision (5) of section 10-76a, shall be eligible annually for reimbursement as follows:

(1) The percentage of the net cost of special education aid a local board of education shall receive, under the provisions of this section, shall be determined as follows: (A) Each town shall be ranked in descending order from one to one hundred sixty-nine according to such town's adjusted equalized net grand list per capita, as defined in section 10-261; (B) based upon such ranking, and notwithstanding the provisions of section 2-32a, a percentage of not less than forty nor more than seventy-five shall be determined for each town on a continuous scale.

(2) The percentage of the net cost of special education a regional board of education shall receive under the provisions of this section shall be determined by its ranking. Such ranking shall be determined by (A) multiplying the total population, as defined in section 10-261, of each town in the district by such town's ranking, as determined in subdivision (1) of this subsection, (B) adding together the figures for each town determined under subparagraph (A) of this subdivision, and (C) dividing the total computed under subparagraph (B) of this subdivision by the total population of all towns in the district. The ranking of each regional board of education shall be rounded to the next higher whole number and each such board shall receive the same reimbursement percentage as would a town with the same rank.

(3) The percentage of the net cost of special education a regional educational service center shall receive under the provisions of this section and section 10-66i shall be determined by its ranking. Such ranking shall be determined by (A) multiplying the total population, as defined in section 10-261, of each member town in the regional educational service center by such town's ranking, as determined in subdivision (1) of this subsection, (B) adding together the figures for each town determined under subparagraph (A) of this subdivision, and (C) dividing the total computed under subparagraph (B) of this subdivision by the total population of all member towns in the regional educational service center. The ranking of each regional educational service center shall be rounded to the next higher whole number and each such center shall receive the same reimbursement percentage as would a town with the same rank.

Sec. 32. Subdivision (9) of section 10-262f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(9) "Foundation" means (A) for the fiscal year ending June 30, 1990, three thousand nine hundred eighteen dollars, (B) for the fiscal year ending June 30, 1991, four thousand one hundred ninety-two dollars, (C) for the fiscal year ending June 30, 1992, four thousand four hundred eighty-six dollars, (D) for the fiscal years ending June 30, 1993, June 30, 1994, and June 30, 1995, four thousand eight hundred dollars, (E) for the fiscal years ending June 30, 1996, June 30, 1997, and June 30, 1998, five thousand seven hundred eleven dollars, (F) for the fiscal year ending June 30, 1999, five thousand seven hundred seventy-five dollars, [and] (G) for the fiscal years ending June 30, 2000, to June 30, 2007, inclusive, five thousand eight hundred ninety-one dollars, and (H) for the fiscal year ending June 30, 2008, and each fiscal year thereafter, eight thousand one hundred twenty-two dollars.

Sec. 33. Subdivision (24) of section 10-262f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(24) "State guaranteed wealth level" means (A) for the fiscal year ending June 30, 1990, 1.8335 times the town wealth of the town with the median wealth as calculated using the data of record on December first of the fiscal year prior to the year in which the grant is to be paid pursuant to section 10-262i, [and] (B) for the fiscal years ending June 30, 1991, and 1992, 1.6651 times the town wealth of the town with such median wealth, [and] (C) for the fiscal years ending June 30, 1993, June 30, 1994, and June 30, 1995, 1.5361 times the town wealth of the town with the median wealth, [and] (D) for the fiscal [year] years ending June 30, 1996, [and each fiscal year thereafter] to June 30, 2007, 1.55 times the town wealth of the town with the median wealth, and (E) for the fiscal year ending June 30, 2008, and each fiscal year thereafter, two times the town wealth of the town with the median wealth.

Sec. 34. (NEW) (Effective July 1, 2007) (a) On or before June 15, 2008, and annually thereafter, each municipality shall report to the Secretary of the Office of Policy and Management, on a form prescribed by the secretary, the average change in the mill rate of the municipality for the current fiscal year and the four previous fiscal years.

(b) For the fiscal years commencing July 1, 2008, and each fiscal year thereafter, each municipality shall calculate the mill rate for the next fiscal year pursuant to this section.

(1) The municipality shall determine a proposed mill rate for the next fiscal year.

(2) If the difference between the proposed mill rate and the current year mill rate is less than the average change in the mill rate as reported to the secretary, the municipality shall determine an adjusted mill rate by dividing the increase in the amount of funding to the municipality for the next fiscal year under sections 12-19a, 12-20a, 10-76g and section 10-262h of the general statutes, as amended by this act, above the amount of funding in the current fiscal year under said sections by the net grand list of the municipality. The adjusted mill rate shall be subtracted from the proposed mill rate. The result shall be the mill rate for the next fiscal year.

(3) If the difference between the proposed mill rate and the mill rate for the current year is greater than the average change in the mill rate as reported to the secretary, the municipality shall determine an adjusted mill rate by dividing the increase in the amount of funding to the municipality for the next fiscal year under sections 12-19a, 12-20a, 10-76g and section 10-262h of the general statutes, as amended by this act, above the amount of funding in the current fiscal year under said sections by the net grand list. The municipality shall subtract the adjusted mill rate from the sum of the proposed mill rate and the average change in the mill rate. The result shall be the mill rate for the next fiscal year.

(c) Not more than ten days after setting the mill rate pursuant to subsection (b) of this section, the municipality shall report to the Secretary of the Office of Policy and Management the mill rate for the next year along with the calculations used to set such mill rate.

Sec. 35. (NEW) (Effective July 1, 2007, and applicable to income years commencing on or after January 1, 2007) (a) As used in this section:

(1) "Business firm" means any business entity authorized to do business in the state and subject to the corporation business tax imposed under chapter 208 of the general statutes, or any company subject to a tax imposed under chapter 207 of the general statutes, or any air carrier subject to the air carriers tax imposed under chapter 209 of the general statutes, or any railroad company subject to the railroad companies tax imposed under chapter 210 of the general statutes, or any regulated telecommunications service, express, telegraph, cable, or community antenna television company subject to the regulated telecommunications service, express, telegraph, cable, and community antenna television companies tax imposed under chapter 211 of the general statutes, or any utility company subject to the utility companies tax imposed under chapter 212 of the general statutes;

(2) "Nonprofit corporation" means a nonprofit corporation incorporated pursuant to chapter 602 of the general statutes or any predecessor statutes thereto, having as one of its purposes the construction, rehabilitation, ownership or operation of housing and having articles of incorporation approved by the executive director of the Connecticut Housing Finance Authority in accordance with regulations adopted pursuant to section 8-79a of the general statutes or 8-84 of the general statutes;

(3) "Eligible employee" means an employee whose income is not more than eighty per cent of the area median income of the municipality in which the business firm is located, as determined by the United States Department of Housing and Urban Development; and

(4) "Qualifying housing" means rental or ownership housing units that are either within three miles of the worksite of the eligible employee or within three miles of a public transit facility which provides service to the worksite of the eligible employee.

(b) The Commissioner of Revenue Services shall grant a credit against any tax due under the provisions of chapter 207, 208, 209, 210, 211 or 212 of the general statutes in an amount equal to the amount specified by the Connecticut Housing Finance Authority in any tax credit voucher issued by said authority pursuant to subsection (c) of this section.

(c) (1) The Connecticut Housing Finance Authority shall administer a system of tax credit vouchers within the resources, requirements and purposes of this section to encourage employees to reside closer to their employment. Vouchers may be issued to business firms for contributions to (A) eligible employees of the business firm for a down payment on a house or to offset housing costs; (B) housing programs developed, sponsored or managed by a nonprofit corporation which commits to using such financial assistance, to provide, assist or subsidize qualifying housing to eligible employees; or (C) developers who set aside qualifying housing units for eligible employees of the business firm.

(2) Upon submission of a plan for contributions by a business firm, the Connecticut Housing Finance Authority shall issue an initial certificate of eligibility for the credit allowed under subsection (b) of this section after it has been established that the amounts to be paid for financial assistance by the business firm complies with the provisions of this section. If the authority determines that all appropriate requirements are met, the authority shall issue an annual certificate of eligibility for the credit allowed under subsection (b) or (f) of this section for each income year for which an application for a credit under either of said subsections is made. The authority shall require the business firm to submit annual reports on expenditures for each income year for which the credit is claimed and to submit such other information as may be necessary to determine whether all appropriate requirements have been met and that the applicant continues to be a financial institution.

(3) Such vouchers may be used as a credit against any of the taxes to which such business firm is subject and which are enumerated in subsection (b) of this section.

(d) No business firm shall receive a credit pursuant to both this section and chapter 228a of the general statutes in relation to the same cash contribution.

(e) Nothing in this section shall be construed to prevent two or more business firms from participating jointly in one or more programs under the provisions of this section. Such joint programs shall be submitted, and acted upon, as a single program by the business firms involved.

(f) No tax credit shall be granted to any business firm for any individual amount contributed of less than two hundred fifty dollars.

(g) Any tax credit not used in the period during which the cash contribution was made may be carried forward or backward for the five immediately succeeding or preceding income years until the full credit has been allowed.

(h) In no event shall the total amount of all tax credits allowed to all business firms pursuant to the provisions of this section exceed five million dollars in any one fiscal year.

(i) No organization conducting a housing program or programs eligible for funding with respect to which tax credits may be allowed under this section shall be allowed to receive an aggregate amount of such funding for any such program or programs in excess of five hundred thousand dollars for any fiscal year.

(j) Nothing in this section shall be construed to prevent a business firm from making any cash contribution to a housing program to which tax credits may be applied which cash contribution may result in the business firm having a limited equity interest in the program.

(k) The Connecticut Housing Finance Authority, with the approval of the Commissioner of Revenue Services, shall adopt written procedures in accordance with section 1-121 of the general statutes to implement the provisions of this section.

(l) The credit which is sought by the business firm shall first be claimed on the tax return for such business firm's income year during which the cash contribution to which the tax credit voucher relates was paid.

Sec. 36. Subsection (k) of section 8-395 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007, and applicable to income years commencing on or after January 1, 2007):

(k) The Connecticut Housing Finance Authority, with the approval of the Commissioner of Revenue Services, shall adopt written procedures in accordance with section 1-121 to implement the provisions of this section. Such procedures shall include provisions for issuing tax credit vouchers for cash contributions to housing programs based on a system of ranking housing programs. In establishing such ranking system, the authority shall consider the following: (1) The readiness of the project to be built; (2) use of the funds to build or rehabilitate a specific housing project or to capitalize a revolving loan fund providing low-cost loans for housing construction, repair or rehabilitation to benefit persons of very low, low and moderate income; (3) the extent the project will benefit families at or below twenty-five per cent of the area median income and families with incomes between twenty-five per cent and fifty per cent of the area median income, as defined by the United States Department of Housing and Urban Development; (4) evidence of the general administrative capability of the nonprofit corporation to build or rehabilitate housing; (5) evidence that any funds received by the nonprofit corporation for which a voucher was issued were used to accomplish the goals set forth in the application; [and] (6) with respect to any income year commencing on or after January 1, 1998: (A) Use of the funds to provide housing opportunities in urban areas and the impact of such funds on neighborhood revitalization; and (B) the extent to which tax credit funds are leveraged by other funds; and (7) whether or not the funds will reduce the commuting distance of low and moderate income persons.

Sec. 37. (Effective July 1, 2007) The sum of two billion five hundred fifty million dollars is appropriated to the Department of Education, from the General Fund, for the fiscal year ending June 30, 2008, for Equalization Education Grants.

Sec. 38. (Effective July 1, 2007) The sum of two billion six hundred fifty million dollars is appropriated to the Department of Education, from the General Fund, for the fiscal year ending June 30, 2009, for Equalization Education Grants.

Sec. 39. (Effective July 1, 2007) The sum of five million dollars is appropriated to the Office of Policy and Management, from the General Fund, for the fiscal year ending June 30, 2008, for the purpose of the responsible growth planning grant program established pursuant to section 7 of this act and for capacity building in said office because of the program.

Sec. 40. (Effective July 1, 2007) The sum of five million dollars is appropriated to the Office of Policy and Management, from the General Fund, for the fiscal year ending June 30, 2009, for the purpose of the responsible growth planning grant program established pursuant to section 7 of this act and for capacity building in said office because of the program.

Sec. 41. (Effective July 1, 2007) The sum of fifty million dollars is appropriated to the Office of Policy and Management, from the General Fund, for the fiscal year ending June 30, 2009, for the purpose of the responsible growth program established pursuant to section 8 of this act.

Sec. 42. (Effective July 1, 2007) The sum of fifty million dollars is appropriated to the Office of Policy and Management, from the General Fund, for the fiscal year ending June 30, 2009, for the purpose of the regional efficiency program established pursuant to section 9 of this act.

Sec. 43. (Effective July 1, 2007) The sum of two hundred twelve million three hundred sixty-three thousand two hundred seventy-two dollars is appropriated to the Office of Policy and Management, from the General Fund, for the fiscal year ending June 30, 2008, for the purpose of the program of payment in lieu of taxes under sections 12-19a of the general statutes, as amended by this act, and section 12-20a of the general statutes, as amended by this act.

Sec. 44. (Effective July 1, 2007) The sum of two hundred million nine hundred seventy thousand seven hundred forty-seven dollars is appropriated to the Office of Policy and Management, from the General Fund, for the fiscal year ending June 30, 2009, for the purpose of the program of payment in lieu of taxes under sections 12-19a of the general statutes, as amended by this act, and section 12-20a of the general statutes, as amended by this act.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2007

New section

Sec. 2

October 1, 2007

New section

Sec. 3

July 1, 2007

16a-31

Sec. 4

July 1, 2007

4-124d

Sec. 5

July 1, 2007

New section

Sec. 6

July 1, 2007

8-35a

Sec. 7

July 1, 2007

New section

Sec. 8

July 1, 2007

New section

Sec. 9

July 1, 2007

New section

Sec. 10

July 1, 2007

New section

Sec. 11

October 1, 2007

New section

Sec. 12

July 1, 2007

New section

Sec. 13

July 1, 2007

New section

Sec. 14

July 1, 2007

New section

Sec. 15

July 1, 2007

New section

Sec. 16

July 1, 2007

New section

Sec. 17

July 1, 2007

New section

Sec. 18

July 1, 2007

New section

Sec. 19

July 1, 2007

New section

Sec. 20

July 1, 2007

New section

Sec. 21

July 1, 2007

New section

Sec. 22

July 1, 2007

New section

Sec. 23

July 1, 2007

New section

Sec. 24

July 1, 2007

New section

Sec. 25

July 1, 2007

New section

Sec. 26

from passage

New section

Sec. 27

July 1, 2007

New section

Sec. 28

October 1, 2007, and applicable to taxable years commencing on or after January 1, 2007

12-700(a)

Sec. 29

October 1, 2007, and applicable to assessment years commencing on or after October 1, 2007

12-19a

Sec. 30

July 1, 2007

12-20a

Sec. 31

July 1, 2007

10-76g

Sec. 32

July 1, 2007

10-262f(9)

Sec. 33

July 1, 2007

10-262f(24)

Sec. 34

July 1, 2007

New section

Sec. 35

July 1, 2007, and applicable to income years commencing on or after January 1, 2007

New section

Sec. 36

July 1, 2007, and applicable to income years commencing on or after January 1, 2007

8-395(k)

Sec. 37

July 1, 2007

New section

Sec. 38

July 1, 2007

New section

Sec. 39

July 1, 2007

New section

Sec. 40

July 1, 2007

New section

Sec. 41

July 1, 2007

New section

Sec. 42

July 1, 2007

New section

Sec. 43

July 1, 2007

New section

Sec. 44

July 1, 2007

New section