Connecticut Seal

General Assembly

 

Governor's Bill No. 7050

January Session, 2017

 

LCO No. 3789

 

*03789__________*

Referred to Committee on FINANCE, REVENUE AND BONDING

 

Introduced by:

 

REP. ARESIMOWICZ, 30th Dist.

REP. RITTER M., 1st Dist.

SEN. LOONEY, 11th Dist.

SEN. DUFF, 25th Dist.

 

AN ACT CONCERNING ENHANCEMENTS TO MUNICIPAL FINANCE AND ACCOUNTABILITY.

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

Section 1. Section 7-560 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

Whenever used in subsection (a) of section 7-394b, [and] sections 7-560 to 7-579, inclusive, as amended by this act, and sections 12, 15 and 18 to 23, inclusive, of this act, the following definitions shall apply:

(1) "Attorney General" means the Attorney General of the state of Connecticut.

(2) "Certified municipality" means a municipality that has been certified as a tier I or tier II municipality by the secretary.

(3) "Chief executive officer" means the officer described in section 7-193.

(4) "Debt service payment fund" means the fund into which the proceeds of the property tax intercept procedure are deposited and from which debt service on all outstanding general obligations of a municipality which have a term of more than one year and additionally all outstanding general obligations which the municipality determines are to be supported by the tax intercept procedure shall be paid as provided in subsection (a) of section 7-394b and sections 7-560 to 7-579, inclusive, as amended by this act.

(5) "Debt service payment fund requirement" means an amount at least equal to the aggregate amount of principal, sinking fund installments, if any, and interest during the then current fiscal year as the same become due and payable on all outstanding general obligations of the municipality which have a term of more than one year and additionally all outstanding general obligations which the municipality determines are to be supported by the tax intercept procedure.

(6) "Deficit" means with respect to the general fund of any municipality, any cumulative excess of expenditures, encumbrances, or other uses of funds for any fiscal year and all prior fiscal years over revenues of the municipality for such period and the prior year's undesignated fund balance, as reflected in the most recent audited financial statements of such municipality. For purposes of determining such excess, revenues shall not include the proceeds of tax anticipation notes and expenditures shall not include any principal payment of tax anticipation notes.

(7) "Deficit obligation" means any general obligation with a term of more than one year or any bond or any note issued in anticipation thereof, issued by a municipality either for the purpose of or having the effect of reducing, eliminating or preventing a general fund, special revenue fund or enterprise fund deficiency, other than any obligation issued pursuant to chapter 110.

(8) "Designated tier I municipality" means a municipality designated as a tier I municipality in accordance with the provisions of section 12 of this act.

(9) "Designated tier II municipality" means a municipality designated as a tier II municipality in accordance with the provisions of section 15 of this act.

(10) "Designated tier III municipality" means a municipality designated as a tier III municipality in accordance with the provisions of section 18 of this act.

(11) "Designated tier IV municipality" means a municipality designated as a tier IV municipality in accordance with the provisions of section 20 of this act.

(12) "Equalized mill rate" means the tax rate derived from the most recent available grand levy of a municipality divided by the equalized net grand list on which such levy is based, as determined by the secretary in accordance with section 10-261a.

(13) "Fund balance" means the amount that assets and deferred outflow of resources of a municipality's general fund exceeds the liabilities and deferred inflow of resources of the general fund of the municipality, as of the fiscal year ended as reflected in the municipality's most recent audited financial statements presented in accordance with generally accepted accounting principles.

(14) "Fund balance percentage" means the fund balance of the general fund of a municipality as of the fiscal year ended in the municipality's most recent audited financial statements and presented in accordance with generally accepted accounting principles, divided by the sum of revenues of the general fund and operating transfers into the general fund for the fiscal year.

[(8)] (15) "General fund deficiency" means a deficit or a projected fiscal year deficit, or both.

[(9)] (16) "General obligation" means an obligation issued by a municipality and secured by the full faith and credit and taxing power of such municipality including any contingent obligation which is payable from the general fund and is subject to annual appropriation.

[(10)] (17) "Maximum required capital reserve" means the maximum aggregate amount of principal, interest and other amounts due and owing during any succeeding fiscal year, excluding any sinking fund installments payable in a prior fiscal year on outstanding general obligations of a certified municipality supported by a special capital reserve fund issued pursuant to subsection (a) of section 7-394b and sections 7-568 to 7-579, inclusive, as amended by this act.

[(11)] (18) "Minimum required capital reserve" means the aggregate amount of principal, sinking fund installments, interest and other amounts due and owing during the next succeeding fiscal year on outstanding general obligations of a certified municipality supported by a special capital reserve fund pursuant to subsection (a) of section 7-394b and sections 7-560 to 7-579, inclusive, as amended by this act.

(19) "Municipal Accountability Review Board" means the Municipal Accountability Review Board established pursuant to section 19 of this act.

(20) "Municipal aid" means formula grants, grants, payments in lieu of taxes, reimbursements, payments and other funding provided by the state to municipalities and used to fund municipal general fund budgets, including education budgets.

[(12)] (21) "Municipal Finance Advisory Commission" means the Municipal Finance Advisory Commission established in section 7-394b.

(22) "Municipal revenue increase in fiscal year ending June 30, 2018, as a per cent of revenues" means the net difference in estimated municipal revenues from state sources and new municipal taxing authority as compiled by the secretary pursuant to section 4-71b for the fiscal year ending June 30, 2018, as compared to the estimated municipal revenues from such sources compiled by the secretary pursuant to section 4-71b for the fiscal year ending June 30, 2017, divided by the sum of revenues of the general fund and operating transfers into the general fund as reported in the municipality's audited financial statements for the fiscal year ending June 30, 2016.

[(13)] (23) "Municipality" means any town, city, borough, consolidated town and city, consolidated city and borough, any metropolitan district, any district, as defined in section 7-324, and any other political subdivision of the state having the power to levy taxes and to issue bonds, notes or other obligations.

[(14)] (24) "Obligation" means any bond, bond anticipation note, tax anticipation note or other interim funding obligation, certificate of participation, security, financing lease, installment purchase agreements, capital lease, receivable or other asset sale, refinancing covered by this definition and any other transaction which constitutes debt in accordance with both municipal reporting standards in section 7-394a and the regulations prescribing municipal financial reporting adopted by the secretary.

[(15)] (25) "Outstanding obligation" means any obligation with respect to which a principal or interest payment, sinking fund installment or other payment or deposit is, or will be, due in the future and for which moneys or defeasance securities have not been deposited in escrow.

[(16)] (26) "Projected fiscal year deficit" means, with respect to the general fund of any municipality during any fiscal year, the excess of estimated expenditures and uses of funds for the fiscal year over estimated revenues and any cumulative undesignated general fund balance from the prior fiscal year.

[(17)] (27) "Property taxes" means all taxes on real and personal property levied by the municipality in accordance with the general statutes including any interest, penalties and other related charges, and shall not mean any rent, rate, fee, special assessment or other charge based on benefit or use.

[(18)] (28) "Property tax intercept procedure" means a procedure where a municipality provides for the collection and deposit in a debt service payment fund maintained with a trustee of all property taxes needed to meet the debt service payment fund requirement and which meets all the requirements of section 7-562, as amended by this act.

(29) "Property tax levy" means the mill rate of the municipality multiplied by the net taxable grand list of the municipality.

[(19)] (30) "Revenues" means, with respect to the general fund for any municipality for any fiscal year, property taxes and other moneys that are generally available for, accounted for and deposited in the municipality's general fund.

[(20)] (31) "Secretary" means the Secretary of the Office of Policy and Management.

[(21)] (32) "Special capital reserve fund" means the fund established pursuant to section 7-571, as amended by this act, to secure the timely payment of principal and interest on general obligations issued by a certified municipality approved by the Treasurer pursuant to section 7-573.

[(22)] (33) "State" means the state of Connecticut.

[(23)] (34) "Tier I municipality" means any municipality which has applied to and been certified by the secretary as a tier I municipality.

[(24)] (35) "Tier II municipality" means any municipality which has applied to and been certified by the secretary as a tier II municipality.

[(25)] (36) "Treasurer" means the Treasurer of the state of Connecticut.

[(26)] (37) "Trustee" means any trust company or bank having the powers of a trust company within or without the state, appointed by the municipality as trustee for the municipality's tax intercept procedure or special capital reserve fund and approved by the Treasurer, as well as any successor trust company or bank having the powers of a trust company within or without the state succeeding a prior trust company or bank as trustee, so appointed and approved.

Sec. 2. Section 7-561 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

Any municipality may establish a property tax intercept procedure and a debt service payment fund, as provided in sections 7-562 to 7-564, inclusive, as amended by this act. The municipal officer or body empowered to issue general obligations or to determine the details of general obligations authorized by the municipality may establish such tax intercept procedure and such debt service payment fund, may determine the details and approve the terms of all indentures and agreements and other instruments necessary or appropriate to establish and implement a tax intercept procedure and a debt service payment fund as provided in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, and may bind the municipality, pursuant to any such indenture or agreement, with the requirements of [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, and of any ordinance or resolution authorizing the issuance of such general obligations of the municipality.

Sec. 3. Section 7-562 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(a) Any municipality which proposes to issue general obligations supported by a tax intercept procedure shall deliver to the secretary, together with the notice described in this section, documentation demonstrating that: (1) Such municipality has authorized the issuance of such obligations in accordance with the general statutes, charter, special act or home rule ordinance or the provisions of [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act; (2) such municipality has established a property tax intercept procedure and a debt service payment fund with a trustee in accordance with the provisions of [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act; and (3) such property tax intercept procedure shall assure that the property tax receipts transferred to the trustee and deposited in the debt service payment fund shall be in an amount at least equal to and deposited by such dates so as to satisfy the debt service payment fund requirement.

(b) Each such property tax intercept procedure and debt service payment fund shall: (1) Take effect immediately upon the issuance of such obligations; (2) provide that all outstanding general obligations of the municipality which have a term of more than one year shall be supported by and paid from debt service payment fund and that property taxes collected by the tax collector of such municipality shall be deposited in such debt service payment fund as provided in subsection (a) of this section; and (3) provide that the tax intercept procedure, the debt service payment fund, any indenture or agreement establishing them, may be amended by the municipality without the consent of any holder of any obligation of the municipality if such amendment does not impair the rights of the holders and is requested by the secretary or the Treasurer.

(c) Prior to the issuance of any general obligation and on or prior to the first day of each fiscal year thereafter, a municipality pursuant to its tax intercept procedure shall determine the percentage or amounts of property taxes to be deposited in such debt service payment fund, the time that such taxes shall be deposited therein and such other terms, conditions and requirements as such municipality shall determine to be in the best interest of the municipality, provided such terms, conditions and requirements shall assure that the debt service payment fund shall have money deposited therein by such dates so as to satisfy, and in amounts equal to or in excess of, the debt service payment requirement. Pursuant to the tax intercept procedure, the chief executive officer of such municipality shall certify to both the tax collector of such municipality and the trustee of the debt service payment requirement, the percentage or amount and the time for deposit of the property taxes therein and such other matters with respect to the operations of the fund as may be required by the tax intercept procedure. Such percentage, amount and time shall be sufficient to assure that the debt service payment fund shall at all times have sufficient moneys available to meet the debt service payment fund requirement. The tax collector shall, immediately upon receipt, remit such property taxes in the percentage or amount and at the time set forth in such certificate to the trustee for deposit in the debt service payment fund. Nothing shall preclude the municipality or its duly authorized officers from causing additional amounts of municipal taxes or other funds to be deposited in the fund.

(d) If the percentage or amount and the time for deposit of the property taxes and such other matters with respect to the operations of the fund as may be required by the tax intercept procedure are not sufficient to meet the debt service payment fund requirement, the trustee and the chief executive officer shall notify the secretary and the Treasurer and thereafter all property taxes of such municipality shall be intercepted by the tax collector and tendered to the trustee for deposit in the debt service payment fund until the moneys deposited therein shall be at least equal to the debt service payment fund requirement.

(e) Funds in the debt service payment fund shall be applied only to pay the outstanding general obligations of the municipality as and when the same shall become due, provided if at any time during any fiscal year, the moneys in the debt service payment fund exceed the debt service payment fund requirement for such fiscal year, the municipality, may instruct the trustee to, and the trustee shall, subject to any restrictions in the tax intercept procedures, pay over to such municipality the amount of such excess for use by the municipality in any manner allowed by law.

(f) The trustee shall from time to time withdraw from the debt service payment fund all amounts required for the payment of debt service on all general obligations of the municipality, as the same shall become due, and shall cause the amounts so withdrawn and disbursed to the paying agents for such general obligations to be applied to such payment.

(g) The debt service payment fund and all moneys or securities therein or payable thereto are hereby declared to be property of the depositing municipality devoted to essential governmental purposes and accordingly shall not be applied to any purpose other than as provided in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, and shall not be subject to any order, judgment, lien, execution, attachment, set-off or counterclaim by any creditor of the municipality, except the trustee.

Sec. 4. Section 7-563 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

The tax intercept procedure and the debt service payment fund shall be established pursuant to an indenture or other agreement between the municipality and the trustee. Such indenture or agreement shall include all the terms, conditions and requirements pertaining to the tax intercept procedure and the debt service payment fund in accordance with the requirements of [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, and the municipality shall agree to comply with all such terms, conditions and requirements for the benefit of the holders of any general obligations supported by such tax intercept procedure. Such indenture or agreement may also include covenants to pay the fees and expenses of the trustee and to indemnify the trustee from claims against the trustee, covenants of the municipality to protect and safeguard the security and rights of the holders of the obligations issued and sold subject thereto and inclusion of such covenants in the contract of the municipality with such holders and for the benefit of any holders of outstanding general obligations, provided such benefit conferred thereon shall not be deemed to restrict, preclude or otherwise impair any rights that such holders currently may assert and, without limiting said rights, such indenture or agreement shall contain covenants as to: (1) Establishment, maintenance and implementation of both the property tax intercept procedure and the debt service payment fund in a manner such that the municipality can transfer to the trustee for deposit in the debt service payment fund amounts at least equal to the debt service payment fund requirement, and the temporary investment of proceeds of such funds pending their use in accordance with [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, and subject to such limitations on investment of public funds otherwise provided for by the general statutes; (2) the appointment, rights, powers and duties of the trustee including limiting or abrogating the rights of the holders of such general obligations to appoint any other trustee and vesting in the trustee all or any such rights, duties and powers; and (3) conditions which would give rise to an event of default under the terms and conditions of such general obligations and actions and remedies which the trustee may take and assert on behalf of such holders. Any requirement set forth in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, pertaining to the tax intercept procedure and debt service payment fund may be modified to the extent necessary to comply with any covenant of the municipality necessary to ensure the exclusion of interest on such obligations from gross income for federal income tax purposes.

Sec. 5. Section 7-564 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

The holders of general obligations for the benefit of whom the property tax intercept procedure and debt service payment fund is established shall have, in addition to all other rights and remedies under law, the following rights and remedies subject to the terms and conditions of the applicable indenture or agreement with the trustee:

(1) In the event the municipality shall fail or refuse to comply with the indenture or agreement with the trustee or shall default in any contract made with the holders of such general obligations, the holders of twenty-five per cent in aggregate principal amounts of such then outstanding obligations, by instrument or instruments filed with the trustee and proved or acknowledged to the satisfaction of the trustee may cause the trustee to take action for the purposes provided for in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act.

(2) Such trustee may, upon written request of the holders of twenty-five per cent in principal amount of such general obligations then outstanding, in its own name, exercise all or any of the powers of any such holders including: (A) By mandamus or other suit, action or proceeding at law or in equity, enforce all rights of the holders of such general obligations, including requiring the municipality to carry out the provisions of any contract with the holders or any indenture or agreement with the trustee and to perform its duty thereunder; (B) bring suit upon such general obligations; and (C) by action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such obligations.

(3) Such trustee shall have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, or incident to the general representation of the holders of such general obligations of such issue in the enforcement and protection of their rights.

(4) The Superior Court shall have jurisdiction of any suit, action or proceeding by or on behalf of the holders of obligations. The venue of such suit, action or proceeding shall be the judicial district in which such municipality is located.

Sec. 6. Section 7-565 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

The state does hereby pledge to and agree with the holders of any general obligations issued under [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, and with those parties who may enter into contracts with a municipality pursuant to the provisions of [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, that the state will not limit or alter the rights hereby vested in a municipality until such obligations, together with the interest thereon, are fully met and discharged and such contracts are fully performed on the part of the municipality, provided nothing in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, shall preclude limitation or alteration if and when adequate provision shall be made by law for the protection of the holders of such general obligations of a municipality or those entering into such contracts with a municipality. A municipality as agent for the state is authorized to include this pledge and undertaking by the state in such general obligations.

Sec. 7. Section 7-568 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(a) Except as expressly provided in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, no municipality shall issue any deficit obligation to fund a general fund deficiency.

(b) Notwithstanding any charter, special act or home-rule ordinance to the contrary, any municipality which has no outstanding deficit obligation and which has not issued a deficit obligation in the past five years, is authorized and empowered to issue deficit obligations to fund a deficit, provided such municipality shall, within the time and in the manner prescribed by regulations adopted by the secretary, in consultation with the Treasurer: (1) Notify the secretary of its intent to issue such deficit obligations, (2) provide the secretary with the documentation required under [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, (3) establish a property tax intercept procedure, and (4) establish and covenant to maintain with a trustee a debt service payment fund into which the property tax receipts shall be deposited pursuant to the property tax intercept procedure in an amount at least equal to the debt service payment requirement and from which the trustee shall disburse funds to pay debt service on all general obligations of such municipality which have a term of over one year as and when the same shall become due. [The secretary shall refer to the Municipal Finance Advisory Commission, pursuant to the provisions of section 7-395, any municipality which notifies the secretary that it intends to issue deficit obligations under this section.] Notwithstanding any other provisions of sections 1 to 26, inclusive, of this act, any municipality that issues a deficit obligation pursuant to this section or in the five years preceding July 1, 2017, shall be designated a tier III municipality by the secretary.

Sec. 8. Section 7-569 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

No municipality, including any certified or designated municipality, shall issue any obligation for which there is a special capital reserve fund of any kind which is in any way contributed to or guaranteed by the state unless and until such obligation, and the indenture or agreement establishing such special capital reserve fund, is approved by the Treasurer. The approval of the Treasurer shall be based on documentation provided and certified by such municipality demonstrating to the Treasurer's satisfaction that (1) the secretary has determined that the municipality is a certified [the] or designated municipality, (2) the Municipal Finance Advisory Commission, in the case of a certified municipality or designated tier I municipality, or the Municipal Accountability Review Board, in the case of a designated tier II, III or IV municipality, has approved the obligation to be issued under [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, (3) the municipality is not in default on any general obligation after giving effect to an obligation approved under this section, (4) the municipality has funded or made due provision to fund the special capital reserve fund, (5) the financing is in the public interest, and (6) the secretary and the Treasurer have approved the property tax intercept procedure authorized by [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act.

Sec. 9. Section 7-570 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

Any certified or designated municipality which has authorized the issue of its general obligations and proposed to issue and secure such general obligations by a special capital reserve fund is hereby empowered to authorize and issue additional general obligations in the manner described in this section, solely for the purposes and in such amounts as are necessary (1) to fund all or a portion of such special capital reserve fund and (2) to pay all or a portion of the costs of issuing such authorized general obligations and such additional general obligations. Such additional general obligations and the appropriation of the proceeds thereof shall be authorized by a resolution adopted by a majority of all the members of the legislative body of the municipality, which for purposes of this section shall mean the body described below, notwithstanding the provisions of any general statute, special act, charter, special act charter, home-rule ordinance, local ordinance or local law governing the authorization of bonds or other obligations of such municipality or the appropriation of the proceeds thereof, all of which provisions are hereby superseded solely for the purposes of this section, including, but not limited to, any public hearing requirement, referendum approval requirement, referendum petition requirement, or recommendation or approval by any official, board, commission, agency, town meeting, representative town meeting, board of finance or other entity. The legislative body of the municipality empowered to authorize such additional obligations shall mean (A) the board of selectmen in any town without a charter, (B) the board of selectmen, council, board of directors, board of aldermen or board of burgesses in any municipality with a charter, (C) the board of education in any regional school district, (D) the city council in any unconsolidated city, (E) the board of burgesses in any unconsolidated borough, and (F) the board of directors or similar body in any other municipality. Notwithstanding any provision of a local law, ordinance, charter, special act charter, home-rule ordinance or the provisions of any bond authorizing ordinance or resolution, a certified or designated municipality's obligations may be sold at public sale on sealed proposal, by negotiation or by private placement in such manner at such price or prices, at such time or times and on such terms or conditions as the Treasurer determines to be in the best interest of the municipality and the state. Any certified or designated municipality which issues general obligations under [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, shall transfer bond proceeds and such other funds to the special capital reserve fund in the amount necessary to cause the amount of money in the special capital reserve fund to equal the maximum required capital reserve and to maintain therein an amount equal to the maximum required capital reserve.

Sec. 10. Section 7-571 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(a) Any certified or designated municipality may establish a special capital reserve fund to secure general obligations with a term of more than one year issued pursuant to [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act. The special capital reserve fund shall be established pursuant to an indenture or other agreement between the municipality and the trustee. Such indenture or agreement shall include all the terms, conditions and requirements pertaining to the special capital reserve fund in accordance with the requirements of [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, any requirements imposed by the secretary or the Treasurer, and any requirements imposed by the ordinance or resolution authorizing the issuance of such general obligations, and the municipality shall agree to comply with all such terms, conditions and requirements for the benefit of the holders of any general obligations supported by such special capital reserve fund and for the benefit of the state. Such indenture or agreement may also include covenants to pay the fees and expenses of the trustee and to indemnify the trustee against claims against the trustee and any other provisions which the municipality determines are necessary or appropriate to secure general obligations. The municipal officer or body empowered to issue such general obligations or to determine the details of such general obligations authorized by the municipality may establish such capital reserve fund and may determine the details and approve the terms of all indentures and agreements and other instruments necessary or appropriate to establish and implement such special capital reserve fund as provided in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, and may bind the municipality pursuant to any such indenture or agreement.

(b) The special capital reserve fund shall consist of (1) bond proceeds and other moneys of the municipality available to be deposited therein and (2) any money made available therefor by the state in accordance with this section. All moneys held in the special capital reserve fund, except as hereinafter provided, shall be used to pay interest due and owing in respect of general obligations of the municipality secured by such special capital reserve fund and for the redemption and retirement of such general obligations as they mature or become due pursuant to any sinking fund redemption provisions, or for the redemption and retirement of such general obligations pursuant to any refinancing or refunding provided any such refinancing or refunding obligations are not supported by any special capital reserve fund and any amounts in such special capital reserve fund are first applied to repay to the state any amounts which the state has paid or deposited in the special capital reserve fund and which the municipality has not repaid to the state. Income and interest from the investment of moneys in the special capital reserve fund shall be retained therein to meet any deficiencies in the maximum required capital reserve. Any amounts in excess of the maximum required capital reserve may be transferred first to the state in an amount equal to the aggregate amount transferred by the state for deposit in the special capital payment fund minus the aggregate amount of all previous reimbursements to the state, second to the debt service payment fund until the moneys in the debt service reserve fund equal or exceed the debt service payment requirement, and third to the municipality. Notwithstanding any provisions of this section, no municipality shall issue an obligation secured by a special capital reserve fund unless and until there is in the special capital reserve fund moneys and investments in an aggregate amount equal to the maximum required capital reserve, after giving effect to such obligations being issued. Any municipality may appropriate and deposit bond proceeds into the special capital reserve fund to bring the amount of money and investments therein to the maximum required capital reserve. Any requirement set forth in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, pertaining to the special capital reserve fund may be modified to the extent necessary to comply with any covenant of the municipality necessary to ensure the exclusion of interest on general obligations of the municipality supported by the special capital reserve fund from gross income for federal income tax purposes. On or before December first of each year, there is deemed to be appropriated from the state General Fund such sums, if any, as shall be certified by the chief executive officer of a certified or designated municipality to the secretary, the Treasurer and the Municipal Finance Advisory Commission for a certified municipality or a designated tier I municipality, or the Municipal Accountability Review Board, for a designated tier II, III or IV municipality, as necessary to restore special capital reserve fund to an amount equal to the minimum required capital reserve, and such amounts shall be allotted and paid from the General Fund of the state to the trustee for deposit in the special capital reserve fund. Such amounts, if any, shall be repaid by the municipality to the state and credited to the General Fund as soon as possible, from any moneys available therefor. For purposes of valuation of the special capital reserve fund, securities acquired as an investment for such fund shall be valued at par, actual cost to the certified or designated municipality or market value, whichever value is lower.

Sec. 11. Section 7-572 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

Any municipality that desires to issue general obligations under section 7-573, as amended by this act, shall apply to the secretary for certification or designation. The secretary may certify as a [Tier] tier I municipality any municipality which applies to be certified, provided such municipality (1) has a long-term bond rating from at least one bond rating agency which is investment grade or higher, (2) is unable to secure municipal bond insurance from any bond insurance company on reasonable terms and conditions on the date the secretary certifies such municipality, and (3) otherwise meets the standards established by the secretary. Such standards shall be [adopted as regulations] established in writing by the secretary, [in consultation] after consulting with the Treasurer, [and] shall provide for a level of supervision over such municipality which the secretary deems to be sufficient to minimize the risk of a draw upon the special capital reserve fund and a transfer from the state General Fund and shall be posted on the Internet web site of the Office of Policy and Management. The secretary may recertify and decertify any municipality then certified, provided the secretary shall not automatically decertify any municipality which is able to secure bond insurance after it has been certified by the secretary.

Sec. 12. (NEW) (Effective July 1, 2017) (a) A municipality shall be designated a tier I municipality by the secretary if any of the following conditions exist: (1) The municipality has no bond rating, or its highest bond rating is A or above, provided the municipality has no rating that is not investment grade, receives less than thirty per cent of its current fiscal year general fund budget revenues in the form of municipal aid from the state, has a positive fund balance percentage, and has a municipal revenue increase in fiscal year ending June 30, 2018, as a per cent of revenues of two per cent or more, (2) the municipality has no bond rating or its highest bond rating is A, provided the municipality has no rating that is not investment grade, receives less than thirty per cent of its current fiscal year general fund budget revenues in the form of municipal aid from the state, and had a positive fund balance percentage of less than five per cent, (3) the municipality's highest bond rating is AA or above, provided the municipality has no rating that is not investment grade, receives thirty per cent or more of its current fiscal year general fund budget revenues in the form of municipal aid from the state, has an equalized mill rate of less than thirty, has a positive fund balance percentage, and has a municipal revenue increase in fiscal year ending June 30, 2018, as a per cent of revenues of two per cent or more, or (4) the secretary, based on reports and findings of the Municipal Finance Advisory Commission, finds the fiscal condition of the municipality to warrant a designation as a tier I municipality.

(b) The secretary shall refer any municipality which is designated as a tier I municipality to the Municipal Finance Advisory Commission, pursuant to the provisions of section 7-395 of the general statutes. In addition to the requirements of section 7-394b of the general statutes, such municipality shall prepare and present a three-year financial plan to the Municipal Finance Advisory Commission for its review and approval.

Sec. 13. Section 7-573 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

Any [Tier I] tier I certified municipality or designated tier I municipality that meets the eligibility requirements of subdivisions (1) to (3), inclusive, of section 7-572, as amended by this act, may issue general obligations with a term of more than one year which are supported by a special capital reserve fund, but not general obligations to fund a general fund deficiency, as provided in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act. Any such [Tier] tier I municipality shall, within the time and in the manner prescribed by [regulations] written procedures adopted by the secretary, in consultation with the Treasurer: (1) Notify the secretary of its intent to issue such obligations, (2) provide the secretary with the documentation required under [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, (3) establish a property tax intercept procedure and debt service payment fund in accordance with the provisions of [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, and (4) comply with sections 7-569 to 7-571, inclusive, as amended by this act. The secretary shall refer to the Municipal Finance Advisory Commission, pursuant to the provisions of section 7-395, any tier I certified municipality which notifies the secretary that it intends to issue obligations under this section.

Sec. 14. Section 7-574 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

Any municipality that desires to issue general obligations under section 7-575, as amended by this act, shall apply to the secretary for certification. The secretary may certify as a tier II municipality any municipality which applies to be certified to issue a general obligation authorized by [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, provided such municipality (1) has a long-term bond rating from at least one bond rating agency which is investment grade or higher, (2) is unable to obtain municipal bond insurance from any bond insurance company on reasonable terms and conditions on the date the secretary certifies such municipality, (3) has not issued a deficit obligation in the last five years, (4) has no deficit obligations outstanding, and (5) otherwise meets the standards established by the secretary. Such standards shall be [adopted as regulations] established in writing by the secretary, [in consultation] after consulting with the Treasurer, [and] shall provide for a level of supervision over such municipality which the secretary deems to be sufficient to minimize the risk of a draw upon the special capital reserve fund and a transfer from the state General Fund and shall be posted on the Internet web site of the Office of Policy and Management. The secretary may recertify and decertify any municipality then certified, provided the secretary shall not automatically decertify any municipality which is able to secure bond insurance after it has been certified by the secretary.

Sec. 15. (NEW) (Effective July 1, 2017) (a) A municipality shall be designated a tier II municipality by the secretary if any of the following conditions exist: (1) The municipality has no bond rating from a bond rating agency, or, if its highest bond rating is A, provided the municipality has no rating that is not investment grade, receives thirty per cent or more of its current fiscal year general fund budget revenues in the form of municipal aid from the state, has a positive fund balance percentage of five per cent or more, has an equalized mill rate of less than thirty, and has a municipal revenue increase in fiscal year ending June 30, 2018, as a per cent of revenues of two per cent or more, (2) the municipality has no bond rating from a bond rating agency, or, if its highest bond rating is A, provided the municipality has no rating that is not investment grade, receives thirty per cent or more of its current fiscal year general fund budget revenues in the form of municipal aid from the state, has an equalized mill rate of less than thirty, and has a positive fund balance percentage of less than five per cent, (3) the municipality's highest bond rating is AA or higher, provided the municipality has no rating that is not investment grade, receives thirty per cent or more of its current fiscal year general fund budget revenues in the form of municipal aid from the state, and has an equalized mill rate of thirty or more, (4) the municipality's highest bond rating is AA or higher, provided the municipality has no rating that is not investment grade, and has a negative fund balance percentage, (5) the municipality's highest bond rating is Baa or BBB, provided the municipality has no rating that is not investment grade, has a positive fund balance percentage and an equalized mill rate of less than thirty, or (6) the secretary, based on reports and findings of the Municipal Finance Advisory Commission, finds that the fiscal condition of the municipality warrants its designation as a tier II municipality.

(b) The secretary shall refer any municipality designated as a tier II municipality to the Municipal Accountability Review Board established pursuant to section 19 of this act. Said board shall have the same authority and responsibilities possessed by the Municipal Finance Advisory Commission with respect to tier II certified municipalities referred to it, including, but not limited to, requiring that such municipalities prepare and present to said board for its review and approval a three-year financial plan and monthly financial reports, in a manner prescribed by said board. In preparing and adopting its annual budgets, such municipality shall only include assumptions respecting state revenues and property tax revenues as approved by such board and such board shall approve or disapprove all obligations issued by a designated tier II municipality pursuant to section 7-575 of the general statutes, as amended by this act, and this section, provided it shall only approve such obligations which in its judgment improve the financial condition of such municipality.

Sec. 16. Section 7-575 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

Any tier II certified municipality or any designated tier II, III or IV municipality that meets the eligibility requirements of subdivisions (1) to (5), inclusive, of section 14 of this act, or any designated tier IV municipality that does not meet such eligibility requirements but receives approval by the Municipal Accountability Review Board pursuant subdivision (7) of subsection (a) of section 20 of this act, may issue general obligations with a term of more than one year which are supported by a special capital reserve fund, including general obligations to fund a deficit, as provided in [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act provided no municipality shall issue an obligation with a term of more than one year to fund a projected fiscal year deficit. Any such certified or designated tier II municipality shall, within the time and in the manner prescribed by [regulations adopted] written standards established by the secretary, [in consultation] after consulting with the Treasurer: (1) Notify the secretary of its intent to issue such obligations, (2) provide the secretary with the documentation required under [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, (3) establish a property tax intercept procedure and debt service payment fund in accordance with the provisions of [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, and (4) comply with sections 7-569 to 7-571, inclusive, as amended by this act. The secretary shall refer to the Municipal Finance Advisory Commission, pursuant to the provisions of section 7-395, any certified tier II municipality which notifies the secretary that it intends to issue obligations under this section. A municipality that issues a deficit obligation pursuant to this section shall be a designated tier III municipality.

Sec. 17. Section 7-576 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

Each tier II certified municipality shall work with and report to the Municipal Finance Advisory Commission as provided for in this section. The secretary shall refer to the Municipal Finance Advisory Commission any tier II certified municipality for the purpose of improving the fiscal condition of such municipality. Such municipality shall prepare and present to the Municipal Finance Advisory Commission for its review and approval a three-year financial plan and monthly financial report in the manner prescribed by the Municipal Finance Advisory Commission. In addition, in preparing and adopting its annual budgets, such municipality shall include assumptions respecting state revenues and property tax revenues as approved by the Municipal Finance Advisory Commission. The Municipal Finance Advisory Commission shall approve or disapprove all obligations issued by a tier II certified municipality pursuant to section 7-575, as amended by this act, and this section, [inclusive,] provided it shall only approve such obligations which in its judgment improve the financial condition of such municipality.

Sec. 18. (NEW) (Effective July 1, 2017) (a) A municipality shall be designated as a tier III municipality if any of the following conditions exist: (1) The municipality has at least one bond rating from a bond rating agency that is below investment grade, (2) the municipality has no bond rating from a bond rating agency, or, if its highest bond rating is A, Baa or BBB, provided the municipality has no rating that is not investment grade, and it has either (A) a negative fund balance percentage, or (B) an equalized mill rate that is thirty or more and it receives thirty per cent or more of its current fiscal year general fund budget revenues in the form of municipal aid from the state, or (3) the municipality issues a deficit obligation or has issued a deficit obligation in the five years preceding July 1, 2017.

(b) The secretary shall refer any municipality that is a designated tier III municipality to the Municipal Accountability Review Board established pursuant to the provisions of section 19 of this act. The Municipal Accountability Review Board, with the approval of at least two-thirds of its members, may redesignate or designate a tier II municipality as a tier III municipality following a finding that the fiscal condition of the municipality warrants such a designation. Any such designation shall require the approval of the Governor.

Sec. 19. (NEW) (Effective July 1, 2017) (a) There is established a Municipal Accountability Review Board, which shall be in the Office of Policy and Management for administrative purposes only and which shall be comprised of the Secretary of the Office of Policy and Management, or the secretary's designee, who shall be the chairperson of the board, the State Treasurer, or the State Treasurer's designee, who shall be the co-chairperson of the board, four members appointed by the Governor, including one of whom shall be a resident of a tier II, III, or IV municipality, one of whom shall have expertise in finance, one of whom shall be affiliated with a business located in a designated or certified tier II, III or IV municipality and one whom shall be a current or former municipal chief executive officer or municipal financial officer. If more than two municipalities are designated tier III or IV municipalities, the Governor may make additional appointments to the board provided such additional appointees shall be assigned to serve in regard to specified municipalities referred to such board. In addition, with regard to each municipality designated for referral to the board, the members of the board shall include: (1) The chief elected official of the municipality, (2) a chief executive officer of a bargaining unit representing employees of the municipality, who is jointly recommended by a majority of the chief executive officers of the administrative units of the municipality, provided such recommendation shall be made not later than thirty days after the municipality's designation as a tier II, III or IV municipality, and (3) one member to be appointed by the Governor, based upon a recommendation by the council of governments for the region in which the designated tier II, III or IV municipality is located. The members of the board shall serve without compensation, but shall be reimbursed for expenses incurred in performance of their duties. Expenses of the board related to its work with designated tier III or IV municipalities, including any staff, consultants and other expenses adopted by the board, may, following consultation with such municipalities, be charged to such municipalities by the board and may be paid from the proceeds of any deficit obligation or debt restructuring bonds.

(b) Each designated tier III municipality shall work with the Municipal Accountability Review Board and report to it as provided for in this section. In addition to possessing such powers granted to such board with respect to the designated or certified tier II municipalities referred to it, the following shall apply:

(1) The board shall review and comment on the municipality's annual budget prior to its adoption by the legislative body.

(2) In preparing and adopting its annual budgets, the municipality shall only include assumptions respecting state revenues and property tax revenues and a mill rate as are approved by the board.

(3) The board shall approve or disapprove all obligations issued by a tier III municipality that is eligible to issue bonds pursuant to the provisions of section 7-575 of the general statutes, as amended by this act, provided it shall only approve such obligations which in its judgment improve the financial condition of such municipality.

(4) The board shall review and comment on proposed debt obligations of the municipality not covered by section 7-575 of the general statutes, as amended by this act, prior to their issuance.

(5) The board may approve or disapprove any contract of the municipality exceeding two hundred thousand dollars.

(6) With respect to any proposed collective bargaining agreement negotiated pursuant to sections 7-467 to 7-477, inclusive, of the general statutes or pursuant to section 10-153d of the general statutes, the board shall review and comment on the impact of any such agreement on the municipality's financial plan and fiscal sustainability prior to action on such proposed agreement by the municipal legislative body or legislative body of the local or regional school district, as applicable.

(7) The board may review and comment on the impact of any arbitration award on the municipality's financial plan and fiscal sustainability prior to the ability of the municipal legislative body pursuant to section 7-473c of the general statutes or the legislative body of the local or regional school district pursuant to section 10-153f of the general statutes to act on such awards.

(8) The board shall monitor compliance with the municipality's three-year financial plan and annual budget and recommend that the municipality make such changes as are necessary to ensure budgetary balance in such plan and budget.

(9) The board shall recommend that the municipality implement measures relating to the efficiency and productivity of the municipality's operations and management as the board deems appropriate, to reduce costs and improve services so as to advance the purposes of sections 1 to 26, inclusive, of this act.

(10) The board may obtain information on the financial condition and financial needs of the municipality.

(11) The board, in consultation with the municipality, may retain such staff and hire consultants experienced in the field of municipal finance, municipal law, governmental operations and administration or governmental accounting as it deems necessary or desirable for accomplishing its purposes.

(12) The board shall establish such written procedures as the board deems necessary to carry out its responsibilities and meet the purposes of sections 1 to 26, inclusive, of this act.

(13) The board may impose reasonable requirements necessary for a municipality to receive any budgeted increase in any state assistance.

(c) With respect to any municipality referred to the Municipal Review Accountability Board, such municipality and each of its administrative units shall supply the board with such financial reports, data, audits, statements and any other records or documentation as the board may require to exercise its powers and to perform its duties and functions. Such reports may include, but shall not be limited to, (1) proposed budgets, (2) monthly reports of the financial condition of the municipality, (3) the status of the municipality's current annual budget and progress under its financial plan for the then current fiscal year, (4) estimates of the operating results for all funds or accounts to the end of the then current fiscal year, (5) pension plan and debt projections, (6) statements and projections of general fund cash flow reserves, (7) the number of municipal employees on the municipal payroll, and (8) debt service requirements on all bonds and notes of the municipality for the following month.

Sec. 20. (NEW) (Effective July 1, 2017) (a) The chief elected official of a tier III municipality may apply to the secretary to request designation as a designated tier IV municipality. The secretary may approve the request if the secretary determines that such designation is necessary to ensure the fiscal sustainability of the municipality and is in the best interests of the state. The Municipal Accountability Review Board, with the approval of at least two-thirds of its members, may designate a tier III municipality as a tier IV municipality based on a finding by the board that the fiscal condition of such municipality warrants such a designation. Such designation shall require the approval of the Governor. Notwithstanding the provisions of sections 7 to 16, inclusive, of this act, a municipality designated tier IV municipality pursuant to this section shall retain such designation following the issuance of a deficit obligation subsequent to such municipality's designation as a tier IV municipality. With respect to a designated tier IV municipality, the Municipal Accountability Review Board shall have the same powers and responsibilities as it has with respect to designated tier III municipalities in addition to which it shall have the following additional or superseding authority and responsibilities:

(1) To review and approve or disapprove the municipality's annual budget, including, but not limited to, the general fund, other governmental funds, enterprise funds and internal service funds. No annual budget, annual tax levy or user fee for the municipality shall become operative until it has been approved by the board. If the board disapproves any annual budget, it shall adopt an interim budget and establish a tax rate and user fees. Such interim budget shall take effect at the commencement of the fiscal year and shall remain in effect until the municipality submits and the board approves a modified budget.

(2) To review and approve all bond ordinances and bond resolutions of the municipality.

(3) To monitor compliance with the municipality's three-year financial plan and annual budget and require that the municipality make such changes as are necessary to ensure budgetary balance in such plan and budget.

(4) (A) To approve or reject all collective bargaining agreements for a new term, other than modifications, amendments or reopenings of an agreement, to be entered into by the municipality or any of its agencies or administrative units, including the board of education. If it rejects an agreement, the board shall indicate the specific provisions of the proposed agreement which caused the rejection, as well as its rationale for the rejection. The board may indicate the total cost impact or savings that are acceptable in a new agreement. Following any rejection of a proposed collective bargaining agreement, the parties to the agreement shall have ten days from the date of the board's rejection to consider the board's concerns and propose a modified agreement. After the expiration of such ten-day period, the board shall approve or reject any such modified agreement. If the parties have been unable to reach an agreement or the board rejects such modified agreement, the board shall set forth the terms of the agreement, which shall be binding upon the parties. In establishing the terms of the agreement, as well as in making a determination to reject a proposed agreement, the parties shall have an opportunity to make a presentation to the board. The board shall not be limited to consideration and inclusion in the collective bargaining agreement of matters raised or negotiated by the parties; and (B) to approve or reject all modifications, amendments or reopeners to collective bargaining agreements entered into by the municipality or any of its agencies or administrative units, including the board of education. If it rejects an amendment to an agreement, the board shall indicate the specific provisions of the proposed amendment which caused the rejection, as well as its rationale for the rejection. The board may indicate the total cost impact or savings acceptable in a new amendment. If the board rejects a proposed amendment to a collective bargaining agreement, the parties to the agreement shall have ten days from the date of the board's rejection to consider the board's concerns and put forth a modified amendment. After the expiration of such ten-day period, the board shall approve or reject any revised amendment. If the parties are unable to reach a modified amendment or the board rejects such modified amendment, the board shall set forth the terms of the new amendment, which shall be binding upon the parties. For the purposes of this subparagraph, the board shall be limited to the subject of any proposed amendment. In establishing the terms of the new agreement, as well as in making a determination to reject a proposed amendment pursuant to this subdivision, the parties shall have an opportunity to make a presentation to the board.

(5) With respect to collective bargaining agreements of the municipality or any of its agencies or administrative units, including, but not limited to, the board of education that are in or are subject to binding arbitration, to serve as the binding arbitration panel. The board shall have the power to impose binding arbitration upon the parties any time after the seventy-fifth day following the commencement of negotiations or to reject any arbitration award pending potential municipal or board of education legislative action pursuant to section 7-473c or 10-153f of the general statutes. If, upon the date of a municipality's designation as a tier IV municipality, the parties are in binding arbitration, the board shall immediately replace any established binding arbitration panel. The board may reduce the time limits in the applicable provisions of the general statutes or any public or special acts governing binding arbitration by one-half. The board shall not be limited to consideration and inclusion in the collective bargaining agreement of the last best offers or the matters raised by or negotiated by the parties.

(6) (A) To require its approval of proposed transfers of a municipality's appropriations in excess of fifty thousand dollars, (B) to review, approve, disapprove or modify the budget of the board of education for the municipality on a line-item basis and to require the board of education to submit to it any budget transfers, or (C) to appoint a financial manager and delegate to such manager, in writing, such powers as the board deems necessary or appropriate for the purpose of managing the financial and administrative affairs of the municipality for the period of time during which the municipality is subject to the powers of the board provided the board may override any actions taken by such manager at any time and shall not delegate the powers enumerated under subdivisions (2), (3) and (5) to (7), inclusive, and (11) to (13), inclusive, of subsection (b) of section 19 of this act, or subdivisions (1), (2) and (4) to (7), inclusive, of this section.

(7) To approve and authorize the issuance of obligations under section 7-575 of the general statutes, as amended by this act, including, with regard to a designated tier IV municipality otherwise ineligible to issue such obligations, for the purposes of issuing general obligations for purposes of deficit financing, addressing pension liabilities in accordance with section 7-374c of the general statutes, debt restructuring and other purposes allowed for which municipal obligations are authorized by the general statutes.

(b) Notwithstanding the provisions of section 7-370c of the general statutes, or any other public or special act, local law or charter, or ordinance or resolution, which limits or imposes conditions on the date of the first maturity of, or the due date of the first sinking fund payment for, or on the amount of any principal or any principal and interest installments on, or sinking fund payment deposit for, refunding bonds issued by any municipality, the board may authorize a designated tier IV municipality to issue refunding bonds for which the provisions of section 7-371 of the general statutes regarding such limitations shall not apply, regardless of whether or not such refunding bonds achieve net present value savings, as described in section 7-370c of the general statutes, with respect to the refunded bonds. The board shall only approve the issue of such refunding bonds upon a determination that, in its judgment, the issue of such bonds will improve the financial condition of such municipality.

(c) Notwithstanding the provisions of section 7-370c or 7-371 of the general statutes, or any other public or special act, local law or charter, or ordinance or resolution, which limits or imposes conditions on the final maturity of, or the due date of the last sinking fund payment for, bonds issued by any municipality, the board may authorize a designated tier IV municipality to issue bonds for which the last installment of any series of such bonds shall mature, or the last sinking fund payment for such series of bonds shall be due, not later than thirty years from the date of issue of such bonds. The board shall only approve the issuance of such bonds upon a determination that, in its judgment, such issuance will improve the financial condition of such municipality.

Sec. 21. (NEW) (Effective July 1, 2017) A municipality designated as tier I municipality in accordance with section 12 of this act or a tier II municipality in accordance with section 15 of this act shall retain such designation, notwithstanding any positive changes in the factors leading to its current designation, for a minimum of the two fiscal years subsequent to its most current designation or until, following any such designation, (1) there have been no annual operating budgetary deficits in the general fund of the municipality for two consecutive fiscal years, (2) the municipality's bond rating has either improved or remained unchanged since its most current designation, (3) the municipality has presented and the commission or board has approved a financial plan that projects a positive unreserved fund for the three succeeding consecutive fiscal years covered by such financial plan, and (4) the municipality's audits for such consecutive fiscal years have been completed and contain no general fund deficit. Notwithstanding any other provisions of sections 1 to 26, inclusive, of this act, the municipality shall remain undesignated for purposes of a tier designation, unless circumstances would result in the municipality being designated as a tier numerically higher than its most recent designation.

Sec. 22. (NEW) (Effective July 1, 2017) (a) A municipality designated as tier III municipality in accordance with section 18 of this act or tier IV municipality in accordance with section 20 of this act shall retain such designation, for a minimum of the three fiscal years subsequent to its most current designation notwithstanding any positive changes in the factors leading to its current designation, or until, following its most current designation: (1) There have been no annual operating budgetary deficits in the general fund of the municipality for three consecutive fiscal years, (2) the municipality's bond rating has either improved or remained unchanged since its most current designation, provided it has no bond ratings that are below investment grade, (3) the municipality has presented and the board has approved a financial plan that projects a positive unreserved fund balance for the three succeeding consecutive fiscal years covered by such financial plan, and (4) the audits for the aforementioned consecutive fiscal years have been completed and contain no general fund deficit.

(b) Notwithstanding any other provisions of sections 1 to 26, inclusive, of this act, the municipality shall remain undesignated for purposes of a tier designation, unless it has an annual operating budgetary deficit in its general fund equal to one per cent or more of its most recently completed annual general fund budget or if it experiences an annual operating budgetary deficit in its general fund in consecutive years of any amount or if it has one or more bond ratings that are below investment grade.

Sec. 23. (NEW) (Effective July 1, 2017) A designated tier II, III or IV municipality shall not enact a property tax levy in its annual budget that is more than three per cent greater than the property tax levy contained in its annual budget for the prior fiscal year. The secretary shall develop such procedures and guidelines as may be needed to assist in the implementation of such property tax levy limitation. Any designated tier II, III or IV municipality may apply to the Municipal Accountability Review Board for exceptions to such property tax levy limitation. Factors to be considered by such board in approving or disapproving such exception shall include the need to address critical matters impacting the health and welfare of the citizens, funding needed to reduce a municipality's long-term obligations and the implementation of court orders or legal settlements.

Sec. 24. Section 7-577 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(a) The Attorney General may apply for a writ of mandamus on behalf of the [commission] Municipal Finance Advisory Commission or the Municipal Accountability Review Board, acting through its chairperson, requiring any official, employee or agent of the municipality to carry out and give effect to any determination of the commission authorized by [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, and any obligation by a municipality to repay to the state any amounts the state pays into a special capital reserve fund and compliance by a municipality with any agreements or indenture pertaining to a special capital reserve fund or tax intercept procedure or debt service payment fund related thereto. Each such application shall be filed in superior court for the judicial district of Hartford.

(b) The superior court for the judicial district of Hartford may, by application of the secretary, the commission, the Municipal Accountability Review Board or the Attorney General, enforce, by appropriate decree or process, any provisions of [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act, or any act or determination of the commission rendered pursuant to [subsection (a) of section 7-394b and] sections 7-560 to 7-579, inclusive, as amended by this act.

Sec. 25. Section 7-578 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

Within one year of initial participation [in] as a certified tier I or tier II municipality, a participating municipality may develop a comprehensive economic development plan designed to increase the tax base of the municipality to a level that will allow the municipality to provide an adequate level of municipal services. The plan shall be approved by the legislative authority of the municipality. If at any time after the comprehensive economic development plan has been completed and the municipality fails to show substantial progress in meeting the goals of the plan, the state may suspend further assistance to the municipality. The secretary, in consultation with the Commissioner of Economic and Community Development, shall evaluate the comprehensive economic development plan annually. The secretary may provide qualified staff and financial assistance to the qualifying municipality for purposes of developing a comprehensive economic development plan.

Sec. 26. Section 7-579 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

For the purposes of [subsection (a) of section 7-394b and] sections 7-560 to 7-578, inclusive, as amended by this act, deficit obligation, as defined in section 7-560, with respect to the town and city of New Haven, means such obligation issued on or after July 1, 1993.

Sec. 27. (NEW) (Effective July 1, 2017) (a) Each municipality shall annually reimburse the state for a portion of the state's contributions to the teachers' retirement system made pursuant to section 10-183z of the general statutes. Such reimbursement payment shall be made not later than December thirty-first of each fiscal year. For the fiscal years ending June 30, 2018, and June 30, 2019, the amounts of such payments to be made by each municipality are as follows:

T1

 

Reimbursement

Reimbursement

T2

 

for

for

T3

 

Fiscal Year 2018

Fiscal Year 2019

T4

Andover

431,456

445,479

T5

Ansonia

1,380,587

1,425,456

T6

Ashford

452,003

466,693

T7

Avon

2,887,735

2,981,586

T8

Barkhamsted

409,944

423,267

T9

Beacon Falls

637,285

657,997

T10

Berlin

2,441,492

2,520,840

T11

Bethany

749,833

774,202

T12

Bethel

2,332,959

2,408,780

T13

Bethlehem

304,101

313,984

T14

Bloomfield

2,009,129

2,074,426

T15

Bolton

713,027

736,200

T16

Bozrah

272,946

281,817

T17

Town of Branford

2,747,784

2,837,087

T18

Bridgeport

12,908,368

13,327,890

T19

Bridgewater

169,504

175,013

T20

Bristol

5,994,524

6,189,347

T21

Brookfield

2,119,039

2,187,907

T22

Brooklyn

767,308

792,245

T23

Burlington

1,276,359

1,317,840

T24

Canaan

172,333

177,933

T25

Canterbury

479,505

495,089

T26

Canton

1,230,338

1,270,324

T27

Chaplin

279,788

288,881

T28

Cheshire

3,508,100

3,622,113

T29

Chester

310,439

320,528

T30

Clinton

1,725,858

1,781,949

T31

Colchester

2,081,212

2,148,852

T32

Colebrook

169,448

174,955

T33

Columbia

613,199

633,128

T34

Cornwall

192,670

198,931

T35

Coventry

1,357,867

1,401,998

T36

Cromwell

1,442,833

1,489,725

T37

Danbury

7,411,220

7,652,085

T38

Darien

4,584,090

4,733,073

T39

Deep River

418,412

432,010

T40

Derby

980,928

1,012,808

T41

Durham

1,085,539

1,120,819

T42

Eastford

183,496

189,459

T43

East Granby

770,240

795,273

T44

East Haddam

1,016,006

1,049,027

T45

East Hampton

1,528,350

1,578,021

T46

East Hartford

5,716,884

5,902,683

T47

East Haven

2,282,352

2,356,528

T48

East Lyme

2,252,917

2,326,137

T49

Easton

1,298,824

1,341,036

T50

East Windsor

1,052,181

1,086,377

T51

Ellington

1,898,286

1,959,980

T52

Enfield

4,254,110

4,392,369

T53

Essex

606,580

626,294

T54

Fairfield

9,194,608

9,493,433

T55

Farmington

3,343,850

3,452,525

T56

Franklin

193,209

199,488

T57

Glastonbury

5,098,541

5,264,244

T58

Goshen

322,064

332,531

T59

Granby

1,514,998

1,564,236

T60

Greenwich

10,053,427

10,380,164

T61

Griswold

1,349,780

1,393,648

T62

Groton

3,970,190

4,099,221

T63

Guilford

2,865,342

2,958,465

T64

Haddam

1,102,026

1,137,842

T65

Hamden

4,812,509

4,968,915

T66

Hampton

175,822

181,537

T67

Hartford

17,059,239

17,613,665

T68

Hartland

192,298

198,548

T69

Harwinton

658,967

680,384

T70

Hebron

1,362,129

1,406,399

T71

Kent

309,444

319,501

T72

Killingly

1,752,218

1,809,165

T73

Killingworth

757,422

782,038

T74

Lebanon

851,915

879,603

T75

Ledyard

1,913,289

1,975,471

T76

Lisbon

429,293

443,245

T77

Litchfield

900,232

929,490

T78

Lyme

288,526

297,903

T79

Madison

2,602,739

2,687,329

T80

Manchester

5,081,279

5,246,421

T81

Mansfield

1,662,704

1,716,741

T82

Marlborough

840,959

868,290

T83

Meriden

5,842,301

6,032,176

T84

Middlebury

1,029,867

1,063,337

T85

Middlefield

551,370

569,289

T86

Middletown

3,683,211

3,802,916

T87

Milford

5,581,054

5,762,438

T88

Monroe

3,017,406

3,115,472

T89

Montville

2,039,532

2,105,817

T90

Morris

281,468

290,615

T91

Naugatuck

3,173,613

3,276,755

T92

New Britain

7,512,822

7,756,989

T93

New Canaan

4,198,553

4,335,006

T94

New Fairfield

2,069,310

2,136,562

T95

New Hartford

801,726

827,782

T96

New Haven

14,966,054

15,452,451

T97

Newington

3,457,889

3,570,271

T98

New London

2,188,925

2,260,065

T99

New Milford

3,088,270

3,188,639

T100

Newtown

3,917,100

4,044,406

T101

Norfolk

152,352

157,303

T102

North Branford

1,473,670

1,521,564

T103

North Canaan

417,493

431,062

T104

North Haven

2,494,713

2,575,792

T105

North Stonington

641,730

662,587

T106

Norwalk

9,215,371

9,514,871

T107

Norwich

3,331,735

3,440,017

T108

Old Lyme

1,062,442

1,096,971

T109

Old Saybrook

1,271,219

1,312,533

T110

Orange

1,997,989

2,062,923

T111

Oxford

1,330,435

1,373,674

T112

Plainfield

1,589,753

1,641,420

T113

Plainville

1,927,428

1,990,069

T114

Plymouth

1,236,815

1,277,012

T115

Pomfret

447,189

461,723

T116

Portland

966,127

997,526

T117

Preston

457,631

472,504

T118

Prospect

999,501

1,031,985

T119

Putnam

790,031

815,707

T120

Redding

1,740,644

1,797,215

T121

Ridgefield

4,407,654

4,550,903

T122

Rocky Hill

2,027,836

2,093,741

T123

Roxbury

307,820

317,824

T124

Salem

348,037

359,349

T125

Salisbury

389,052

401,697

T126

Scotland

222,785

230,025

T127

Seymour

1,732,618

1,788,928

T128

Sharon

309,766

319,833

T129

Shelton

3,726,462

3,847,572

T130

Sherman

389,839

402,509

T131

Simsbury

3,634,442

3,752,561

T132

Somers

1,157,222

1,194,832

T133

Southbury

2,179,715

2,250,556

T134

Southington

4,547,523

4,695,318

T135

South Windsor

3,591,178

3,707,891

T136

Sprague

283,602

292,819

T137

Stafford

1,295,535

1,337,640

T138

Stamford

14,188,331

14,649,453

T139

Sterling

294,708

304,286

T140

Stonington

1,775,660

1,833,369

T141

Stratford

5,413,087

5,589,013

T142

Suffield

1,860,799

1,921,275

T143

Thomaston

751,201

775,615

T144

Thompson

769,109

794,105

T145

Tolland

1,934,215

1,997,078

T146

Torrington

3,250,448

3,356,088

T147

Trumbull

5,476,968

5,654,970

T148

Union

84,703

87,456

T149

Vernon

2,884,556

2,978,304

T150

Voluntown

295,379

304,978

T151

Wallingford

5,230,018

5,399,994

T152

Warren

140,734

145,308

T153

Washington

423,138

436,890

T154

Waterbury

12,291,680

12,691,160

T155

Waterford

2,383,220

2,460,675

T156

Watertown

2,310,071

2,385,148

T157

Westbrook

823,917

850,695

T158

West Hartford

8,011,568

8,271,945

T159

West Haven

4,458,510

4,603,411

T160

Weston

2,355,644

2,432,202

T161

Westport

5,877,870

6,068,901

T162

Wethersfield

2,801,870

2,892,931

T163

Willington

613,739

633,686

T164

Wilton

3,998,115

4,128,054

T165

Winchester

594,612

613,937

T166

Windham

2,520,456

2,602,371

T167

Windsor

3,208,290

3,312,560

T168

Windsor Locks

1,526,083

1,575,681

T169

Wolcott

1,830,112

1,889,591

T170

Woodbridge

1,288,548

1,330,426

T171

Woodbury

1,048,371

1,082,443

T172

Woodstock

863,428

891,489

(b) If any municipality fails to make the payment required under subsection (a) of this section for any fiscal year within thirty days after the date such payment is due, a five per cent penalty shall be assessed on the total amount of the payment due for such fiscal year.

(c) Notwithstanding any provision of the general statutes, if any municipality defaults in the payment of its obligation under subsections (a) and (b) of this section, the State Treasurer shall notify the State Comptroller and the Commissioner of Administrative Services that the municipality is in default of such obligation. Upon notice of such default, the state shall withhold payment of state aid and assistance to such municipality pursuant to any statute in existence at the time the default is established up to the amount of such obligation.

Sec. 28 (NEW) (Effective from passage and applicable to assessment years commencing on or after October 1, 2016) (a) For purposes of this section, (1) "acute care general hospital" means any such facility licensed by the Department of Public Health that is used primarily for general medical care and treatment, exclusive of any hospital used primarily for the care and treatment of special types of disease or physical or mental conditions, (2) "freestanding chronic disease hospital" means a facility licensed by said department that provides for the care and treatment of chronic diseases, excluding any such facility that has an ownership affiliation with and is operated in the same location as a chronic and convalescent nursing home, and (3) "municipality" means any town, city or borough, consolidated town and city or consolidated town and borough.

(b) Any real property owned by an acute care general hospital, a freestanding chronic disease hospital, a children's hospital or a psychiatric hospital shall be subject to the property tax under chapter 203 of the general statutes. The provisions of this section regarding the taxable status of any such real property shall supersede the provisions of any section of the general statutes or any public or special act to the contrary, except for (1) the property tax exemptions specified in subdivisions (1) and (2) of section 12-81 of the general statutes, (2) any property for which a payment in lieu of taxes is made under subsection (b) of section 12-20b of the general statutes, and (3) the property tax exemption a municipality may provide by adopting an ordinance in accordance with the provisions of subsection (c) of this section.

(c) (1) Any municipality in which real property, as described in section 12-64 of the general statutes, owned by any acute care general hospital, freestanding chronic disease hospital, children's hospital or psychiatric hospital is situated may, by ordinance adopted by its legislative body, or, in a municipality where the legislative body is a town meeting, by vote of the board of selectmen, provide an exemption from property tax applicable to such real property for assessment years commencing on or after October 1, 2016. Such property tax exemption may be applicable to all or a portion of the total assessment of such real property, as determined by the municipality. The percentage of such total real property assessment that is exempt shall be specified in the ordinance adopted pursuant to this subsection and the remaining portion of such total real property assessment, if any, shall be subject to taxation as provided in subsection (b) of this section. The ordinance may provide that real property leased to an acute care general hospital, a freestanding chronic disease hospital, a children's hospital or a psychiatric hospital is eligible for an exemption under this subsection. The ordinance shall provide that any real property acquired or leased by an acute care general hospital, a freestanding chronic disease hospital, a children's hospital or a psychiatric hospital after the first day of October shall first become exempt to the extent allowed by the municipality on the assessment date next succeeding the date of acquisition or lease. The chief executive officer of any municipality that adopts an ordinance pursuant to this subsection shall send a copy of such ordinance to the Secretary of the Office of Policy and Management, not later than ten business days after the date on which the municipality's legislative body votes to approve such ordinance.

(2) The owner of an acute care general hospital, a freestanding chronic disease hospital, a children's hospital or a psychiatric hospital seeking an exemption adopted by ordinance pursuant to subdivision (1) of this subsection shall apply to the assessor of such municipality. Such application shall be on a form prepared for such purpose by the assessor and shall be filed not later than the first day of November following the assessment date with respect to which such exemption is claimed, except that an application for the assessment year commencing October 1, 2016, may be filed not later than sixty days after the date on which an ordinance authorizing the exemption is effective. The assessor may grant an extension of not more than forty-five days to file the application upon determination that there is good cause. If the date for filing is a Saturday, Sunday or a legal holiday, the application may be filed without penalty on the following business day.

(3) Failure to file an application in the form or manner or within the time period prescribed under this subsection shall constitute a waiver of the right to such exemption for the assessment year, unless the assessor grants an extension of time to file such application. If an extension of time is so allowed, the applicant shall pay a fee for late filing to the municipality in which the real property, for which such application is filed, is situated, unless such fee is waived by the assessor or board of assessors. Such fee shall be as follows: (A) If the assessed value of the real property for which such exemption application is filed is one hundred thousand dollars or less, fifty dollars; (B) if the assessed value of the real property for which such exemption application is filed is greater than one hundred thousand dollars but less than two hundred fifty thousand dollars, one hundred fifty dollars; (C) if the assessed value of the real property for which such exemption application is filed is equal to or greater than two hundred fifty thousand dollars but less than five hundred thousand dollars, two hundred fifty dollars; and (D) if the assessed value of the real property for which such exemption application is filed is equal to or greater than five hundred thousand dollars, five hundred dollars.

(4) When an applicant has filed, and the assessor has approved, such application for the first time, such applicant shall file an exemption application quadrennially thereafter, subject to the provisions of this subdivision. Any owner who has submitted an application and been approved in any year for the exemption under this subsection shall be presumed to be qualified for such exemption in the three assessment years immediately following the year of initial approval, unless the following occurs: (A) There is a change to the composition of the exempt real property of the acute care general hospital, freestanding chronic disease hospital, children's hospital or psychiatric hospital, or (B) the acute care general hospital, freestanding chronic disease hospital, children's hospital or psychiatric hospital acquires, by purchase or lease, real property, whether or not such real property was tax-exempt to any extent under this subsection prior to such purchase or lease. If there is such a change or acquisition, the owner shall file a new application for the exemption under this subsection by the first day of November next succeeding the date of any change or acquisition described in this subdivision. Any such newly altered or acquired real property shall be subject to taxation until the application and approval requirements of this subsection have been complied with.

(5) If the legislative body of the municipality elects, pursuant to section 12-62c of the general statutes, to defer all or any part of the amount of the increase in the assessed value of real property in the year a revaluation becomes effective and in any succeeding year in which such deferment is allowed, the portion of the taxable real property assessment of an acute care general hospital, a freestanding chronic disease hospital, a children's hospital or a psychiatric hospital for each assessment year in which such deferments are allowed, shall reflect assessments based upon such deferment.

(d) (1) Notwithstanding the provisions of section 12-55 of the general statutes, the assessor or board of assessors of any municipality in which real property owned by an acute care general hospital, a freestanding chronic disease hospital, a children's hospital or a psychiatric hospital is situated and becomes taxable as of the assessment year commencing October 1, 2016, shall reflect the addition of the assessments of such taxable real property and the deduction of such assessments from the tax-exempt portion of the grand list for said assessment year. Such assessor shall send written notice of the valuation of any such taxable real property to the last-known address of the acute care general hospital, freestanding chronic disease hospital, children's hospital or psychiatric hospital that owns such real property and such hospital shall have the right to appeal such valuation during a special meeting of the board of assessment appeals, as provided in this subsection. Each notice sent pursuant to this subsection shall include: (A) The total valuation of the real property; (B) the percentage and amount of the real property assessment that is subject to taxation; and (C) information describing the manner in which an appeal may be filed with the board of assessment appeals. Each such notice shall be mailed not later than ten calendar days after the date on which the assessor adjusts the taxable and tax-exempt grand lists pursuant to this subsection. The assessor shall notify the board of assessment appeals of the supplemental addition to the taxable grand list for the assessment year commencing October 1, 2016.

(2) Any person, including any lessee of real property whose lease has been recorded as provided in section 47-19 of the general statutes and is bound under the terms of the lease to pay real property taxes and any person to whom title to such property has been transferred since the assessment date, claiming to be aggrieved by the actions of the assessor of such municipality regarding such valuation may appeal to the board of assessment appeals. Such appeal shall be filed, in writing, not later than thirty days after the date on which the assessor sends notice of a supplemental addition to the taxable grand list for the assessment year commencing October 1, 2016. The written appeal shall include, but is not limited to, the property owner's name, the name and position of the signer, a description of the property that is the subject of the appeal, the name and mailing address of the party to be sent all correspondence from the board of assessment appeals, the reason for the appeal, the appellant's estimate of value, the signature of the property owner or a duly authorized agent of the property owner and the date of signature.

(3) During the assessment year commencing October 1, 2016, the board of assessment appeals shall notify each aggrieved person who filed a written appeal in accordance with subdivision (2) of this subsection regarding the valuation of real property of the date, time and place of the appeal hearing. Such notice shall be sent not later than seven calendar days preceding the hearing date, except that the board may elect not to conduct an appeal hearing for any commercial, industrial, utility or apartment property with an assessed value greater than one million dollars. In such case, the board shall notify the appellant, in writing, that it has elected not to conduct an appeal hearing. The board shall determine all appeals for which it conducts an appeal hearing and send written notification of the final determination of such appeals to each such person not later than one week after such determination has been made. Such written notification shall include information describing the property owner's right to appeal the determination of such board in accordance with subdivision (5) of this subsection.

(4) The board of assessment appeals shall not reduce the valuation or assessment of real property on the revised taxable grand list owned or leased by an acute care general hospital, a freestanding chronic disease hospital, a children's hospital or a psychiatric hospital that does not appear at a hearing before the board of assessment appeals, either in person or by such hospital's attorney or agent, and offer or consent to be sworn before the board and answer all questions touching such hospital's real property situated in the municipality.

(5) Any person aggrieved by (A) the action of the board of assessment appeals with respect to the supplemental addition of real property to the assessment list for the assessment year commencing October 1, 2016, under the provisions of this subsection, or (B) a decision of the board not to conduct an appeal hearing for any such real property with an assessed value greater than one million dollars, may make application, not later than two months after the date of the mailing of notice of such action, in the nature of an appeal therefrom, to the superior court for the judicial district in which such town or city is situated. All provisions of section 12-117a of the general statutes, other than the time for filing, shall be applicable to such application. The pendency of such application shall not suspend an action by the municipality to collect not more than seventy-five per cent of the tax so assessed or not more than ninety per cent of such tax with respect to any real property for which the assessed value is five hundred thousand dollars or more, and upon which such appeal is taken.

(e) (1) During the assessment year commencing October 1, 2016, the tax collector shall prepare a warrant with respect to the supplemental addition of taxable real property to the grand list for said year under subsection (d) of this section and shall forward such warrant to the owner of such real property. Such tax collector shall have the same powers for the collection of the tax based on such supplemental additions to such list as for the collection of other taxes. The tax collector shall, not later than twenty days after receiving notice from the assessor of the addition of such taxable real property to the taxable grand list for said assessment year, mail or deliver to the owner of such real property a bill for the amount of taxes for which such owner is liable and shall include with such bill, using (A) an attachment, (B) an enclosure, or (C) printed matter upon the face of the bill, a statement of state aid to municipalities that shall be in the following form:

"The (fiscal year) budget for the (city or town) estimates that .... Dollars will be received from the state of Connecticut for various state financed programs. Without this assistance your (fiscal year) property tax would be (insert the amount computed in accordance with subsection (b) of section 12-130 of the general statutes) mills.".

(2) Such tax shall be due and payable not later than thirty days after the date on which the tax collector mailed or delivered the tax bill to the owner of such real property. Failure to send out or receive any such bill or statement shall not invalidate the tax. For purposes of this subdivision, "mail" includes to send by electronic mail, provided an individual from whom taxes are due consents, in writing, to receive a bill and statement electronically.

(3) If the tax collector of a municipality in which the real property of any acute care general hospital, freestanding chronic disease hospital, children's hospital or psychiatric hospital is situated collects real property taxes for the assessment year commencing October 1, 2016, in more than one installment, the tax collector shall cause payment of any tax due under this subsection to be made in the number of installments remaining in the fiscal year for all other real property taxes. If the final day for payment of any tax or any installment is a Saturday, Sunday or a legal holiday, payment may be made without interest or penalty on the following business day.

(f) (1) The assessor of any town in which real property owned by an acute care general hospital, a freestanding chronic disease hospital, a children's hospital or a psychiatric hospital becomes subject to the property tax under chapter 203 of the general statutes for the assessment year commencing October 1, 2016, shall separate the real property within a district, as defined in section 7-324 of the general statutes, from the other real property in the town. The assessor shall promptly notify the district clerk that the assessment of such real property has been added to the taxable portion of the grand list for said assessment year. If the legislative body of the town elects, pursuant to section 12-62c of the general statutes, to defer all or any part of the amount of the increase in the assessed value of real property in the year a revaluation becomes effective and in any succeeding year in which such deferment is allowed, such assessment furnished to the district clerk for each such year shall reflect assessments based upon such deferment.

(2) The district clerk shall prepare a rate bill and deliver such bill to the treasurer of the district. The district and the treasurer shall have the same powers as towns and collectors of taxes to collect and enforce payment of such taxes. Such taxes, when laid, shall be a lien upon the real property in the same manner as town taxes and may be continued by certificates recorded in the land record office of the town and foreclosed in the same manner as liens for town taxes or enforced in accordance with any provision of the general statutes for the collection of property taxes. The assessor or board of assessment appeals shall promptly forward to the district clerk any certificate of correction or notice of any other lawful change to the grand list for the assessment year commencing October 1, 2016. The district clerk shall, not later than ten days after receiving any such certificate or notice, forward a copy of such certificate or notice to the treasurer, who shall correct accordingly the assessment of the real property for which such certificate or notice was issued and the rate bill related to such assessment.

Sec. 29. Subsections (a) and (b) of section 12-18b of the general statutes are repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(a) For purposes of this section:

(1) "College and hospital property" means all real property owned by a private nonprofit institution of learning, an acute care general hospital, a freestanding chronic disease hospital or an eligible urgent care facility and described in [subsection (a) of section 12-20a] subdivisions (17) to (20), inclusive, of this subsection;

(2) "District" [means any district, as defined] has the same meaning as provided in section 7-324;

(3) "Qualified college and hospital property" means college and hospital property described in subparagraph [(B)] (C) of subdivision (2) of subsection (b) of this section;

(4) "Qualified state, municipal or tribal property" means state, municipal or tribal property described in subparagraphs (A) to (G), inclusive, of subdivision (1) of subsection (b) of this section;

(5) "Municipality" means any town, city, borough, consolidated town and city and consolidated town and borough;

(6) "Select college and hospital property" means college and hospital property described in [subparagraph (A)] subparagraphs (A) and (B) of subdivision (2) of subsection (b) of this section;

(7) "Select payment in lieu of taxes account" means the account established pursuant to section 12-18c;

(8) "Select state property" means state property described in subparagraph (H) of subdivision (1) of subsection (b) of this section;

(9) "State, municipal or tribal property" means all real property described in subsection (a) of section 12-19a;

(10) "Tier one districts or municipalities" means the ten districts or municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;

(11) "Tier two districts or municipalities" means the next twenty-five districts or municipalities after tier one districts or municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;

(12) "Tier three districts or municipalities" means all districts and municipalities not included in tier one districts or municipalities or tier two districts or municipalities;

(13) "Tier one municipalities" means the ten municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;

(14) "Tier two municipalities" means the next twenty-five municipalities after tier one municipalities with the highest percentage of tax exempt property on the list of municipalities prepared by the Secretary of the Office of Policy and Management pursuant to subsection (c) of this section and having a mill rate of twenty-five mills or more;

(15) "Tier three municipalities" means all municipalities not included in tier one municipalities or tier two municipalities; [and]

(16) "Mill rate" means the mill rate on real property and personal property other than motor vehicles;

(17) "Private nonprofit institution of higher learning" means any such institution, as defined in subsection (a) of section 10a-34, or any independent institution of higher education, as defined in subsection (a) of section 10a-173, 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, as amended by this act;

(18) "Acute care general hospital" means any such facility licensed by the Department of Public Health that is used primarily for general medical care and treatment, exclusive of any hospital used primarily for the care and treatment of special types of disease or physical or mental conditions, the real property of which was tax exempt under any of the subdivisions of section 12-81, as amended by this act, in the assessment year commencing October 1, 2015;

(19) "Freestanding chronic disease hospital" means a facility licensed by the Department of Public Health that provides for the care and treatment of chronic diseases, excluding any such facility that has an ownership affiliation and operated in the same location as a chronic and convalescent nursing home, the real property of which was tax exempt under any of the subdivisions of section 12-81, as amended by this act, in the assessment year commencing October 1, 2015; and

(20) "Eligible urgent care facility" includes an urgent care facility that operates for at least twelve hours a day, had been the location of a nonprofit general hospital for at least a portion of calendar year 1996 and was eligible to receive payments in lieu of taxes for such property under section 12-20a in the fiscal year commencing July 1, 2016.

(b) Notwithstanding the provisions of sections 12-19a and 12-20a, all funds appropriated for state grants in lieu of taxes shall be payable to municipalities and districts pursuant to the provisions of this section. 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 municipality and district in this state wherein college and hospital property is [located] situated and to each municipality in this state wherein state, municipal or tribal property, 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] situated.

(1) The grant payable to any municipality for state, municipal or tribal property under the provisions of this section in the fiscal year ending June 30, 2017, and each fiscal year thereafter shall be equal to the total of:

(A) One hundred per cent of the property taxes that 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 August first of any year, the Commissioner of Correction shall, on said date, 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 that 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;

(C) One hundred per cent of the property taxes that 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;

(D) Subject to the provisions of subsection (c) of section 12-19a, sixty-five per cent of the property taxes that would have been paid with respect to the buildings and grounds comprising Connecticut Valley Hospital in Middletown;

(E) With respect to any municipality in which more than fifty per cent of the property is state-owned real property, one hundred per cent of the property taxes that would have been paid with respect to such state-owned property;

(F) Forty-five per cent of the property taxes that 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 municipality 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] situated, except that the grant applicable to Sikorsky Airport shall be paid one-half to the town of Stratford and one-half to the city of Bridgeport;

(G) Forty-five per cent of the property taxes that would have been paid with respect to any land designated within the 1983 Settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation prior to June 8, 1999, or taken into trust by the federal government for the Mohegan Tribe of Indians of Connecticut, provided the real property subject to this subparagraph shall be the land only, and shall not include the assessed value of any structures, buildings or other improvements on such land; and

(H) Forty-five per cent of the property taxes that would have been paid with respect to all other state-owned real property.

(2) (A) (i) The grant payable to any municipality or district for college and hospital property under the provisions of this section in the fiscal year ending June 30, 2017, [and each fiscal year thereafter] shall be equal to the total of seventy-seven per cent of the property taxes that, except for any exemption applicable to any college and hospital property under the provisions of section 12-81, as amended by this act, would have been paid with respect to college and hospital property on the assessment list in such municipality or district for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable; [and]

(ii) The grant payable to any municipality or district for college property in the fiscal year ending June 30, 2018, and each fiscal year thereafter shall be equal to the total of seventy-seven per cent of the property taxes that, except for any exemption applicable to the real property of any institution of higher education under the provisions of section 12-81, as amended by this act, would have been paid with respect to college property on the assessment list in such municipality or district for the assessment date two years prior to the commencement of the state fiscal year in which such grant is payable;

(B) Notwithstanding the provisions of subparagraph (A) of this subdivision, the grant payable to any municipality or district with respect to real property of an eligible urgent care facility in the fiscal year ending June 30, 2017, and each fiscal year thereafter shall be seventy-seven per cent; and

[(B)] (C) Notwithstanding the provisions of subparagraph (A) of this subdivision, the grant payable to any municipality or district with respect to a campus of the United States Department of Veterans Affairs Connecticut Healthcare Systems in the fiscal year ending June 30, 2017, and each fiscal year thereafter shall be one hundred per cent.

Sec. 30. Subdivision (1) of subsection (e) of section 12-18b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(e) (1) (A) For the fiscal years ending June 30, 2018, and June 30, 2019, if the total of grants payable to each municipality and district in accordance with the provisions of subsection (b) of this section [exceeds] differs from the amount appropriated for the purposes of said subsection (b) for said fiscal years: [(A)] (i) The amount of the grant payable to each municipality for state, municipal or tribal property, for which the grant calculated under this section is less than one hundred per cent of the property tax that would be due for such property except for the exemption applicable to such property, and to each municipality or district for college and hospital property shall be [reduced] adjusted proportionately, provided the percentage of the property taxes payable to a municipality or district with respect to such property shall not be lower than the percentage paid to the municipality or district for such property for the fiscal year ending June 30, 2015; and [(B)] (ii) certain municipalities and districts shall receive an additional payment in lieu of taxes grant payable from the select payment in lieu of taxes account. The total amount of the grant payment is as follows:

T173

Municipality/District

Grant Amount

T174

Ansonia

20,543

T175

Bridgeport

3,236,058

T176

Chaplin

11,177

T177

Danbury

620,540

T178

Deep River

1,961

T179

Derby

138,841

T180

East Granby

9,904

T181

East Hartford

214,997

T182

Hamden

620,903

T183

Hartford

12,422,113

T184

Killingly

46,615

T185

Ledyard

3,012

T186

Litchfield

13,907

T187

Mansfield

2,630,447

T188

Meriden

259,564

T189

Middletown

727,324

T190

Montville

26,217

T191

New Britain

2,085,537

T192

New Haven

15,246,372

T193

New London

1,356,780

T194

Newington

176,884

T195

North Canaan

4,393

T196

Norwich

259,862

T197

Plainfield

16,116

T198

Simsbury

21,671

T199

Stafford

43,057

T200

Stamford

552,292

T201

Suffield

53,767

T202

Wallingford

61,586

T203

Waterbury

3,284,145

T204

West Hartford

211,483

T205

West Haven

339,563

T206

Windham

1,248,096

T207

Windsor

9,660

T208

Windsor Locks

32,533

T209

Borough of Danielson (Killingly)

2,232

T210

Borough of Litchfield

143

T211

Middletown: South Fire District

1,172

T212

Plainfield - Plainfield Fire District

309

T213

West Haven First Center (D1)

1,187

T214

West Haven: Allingtown FD (D3)

53,053

T215

West Haven: West Shore FD (D2)

35,065

(B) In no event shall an adjusted grant calculated under this subsection exceed one hundred per cent of the property tax that would have been due except for the exemption applicable to any property for which a grant is payable.

Sec. 31. Subdivision (7) of section 12-81 of the general statutes is amended by adding subparagraph (C) as follows (Effective from passage and applicable to assessment years commencing on or after October 1, 2016):

(NEW) (C) On and after October 1, 2016, real property owned by any acute care general hospital or freestanding chronic disease hospital, as defined in section 28 of this act, or children's hospital or psychiatric hospital shall not be considered to be property used for a charitable purpose under this section, except that nothing in this subparagraph shall be deemed to affect the charitable or tax-exempt status of any real payment for which a payment in lieu of taxes is made under subsection (b) of section 12-20b or of any personal property of a corporation as described in subparagraph (A) of this subdivision;

Sec. 32. Subdivision (16) of section 12-81 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to assessment years commencing on or after October 1, 2016):

(16) Subject to the provisions of section 12-88, all personal property of, or held in trust for, any Connecticut hospital society or corporation or sanatorium, provided (A) no officer, member or employee thereof receives or, at any future time, shall receive any pecuniary profit from the operations thereof, except reasonable compensation for services in the conduct of its affairs, and (B) in 1967, and quadrennially thereafter, a statement shall be filed by such hospital society, corporation or sanatorium on or before the first day of November with the assessor or board of assessors of any town, consolidated town and city or consolidated town and borough, in which any of its personal property claimed to be exempt is situated. Such statement shall be filed on a form provided by such assessor or board of assessors;

Sec. 33. Subdivision (58) of section 12-81 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to assessment years commencing on or after October 1, 2016):

(58) (A) Subject to authorization of the exemption by ordinance in any municipality, any real or personal property leased to a charitable, religious or nonprofit organization, exempt from taxation for federal income tax purposes, provided such property is used exclusively for the purposes of such charitable, religious or nonprofit organization and not otherwise exempt under this section;

(B) On and after October 1, 2016, any real property leased to an acute care general hospital or a freestanding chronic disease hospital, as both terms are defined in section 28 of this act, a children's hospital or a psychiatric hospital shall not be eligible for the exemption under this subdivision, unless the municipality in which such leased real property is situated provides for such an exemption by ordinance adopted in accordance with section 28 of this act;

Sec. 34. Subsection (e) of section 19a-644 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(e) The office shall require each hospital licensed by the Department of Public Health, that is not subject to the provisions of subsection (a) of this section, to report to said office on its operations in the preceding fiscal year by filing (1) copies of the hospital's audited financial statements, [except a] and (2) a Hospital Reporting System Report 500 of twelve months' actual filing. A health system, as defined in section 19a-508c, may submit to the office one such report that includes the audited financial statements and Report 500 for each of its hospitals. Such report shall be due at the office on or before the close of business on the last business day of the fifth month following the month in which a hospital's fiscal year ends.

Sec. 35. (NEW) (Effective October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017) (a) Any hospital claiming an exemption from the property tax on personal property pursuant to subdivision (7) or (16) of section 12-81 of the general statutes, as amended by this act, with respect to any taxable year shall submit a declaration of the tangible personal property, as described in sections 12-41 and 12-43 of the general statutes, and a statement in accordance with section 12-49 of the general statutes. Such declaration shall be submitted on or before October first or the extended filing date granted pursuant to section 12-42 of the general statutes, as amended by this act, as applicable, to the assessor or board of assessors of the municipality in which the hospital property claimed to be exempt is located. Commercial or financial information in any declaration filed under this section shall not be open to public inspection. The assessor or board of assessors, as applicable, shall add taxable property to any such declaration if so required by subsection (b) of section 12-53 of the general statutes. Exemptions claimed pursuant to subdivision (7) or (16) of section 12-81 of the general statutes, as amended by this act, shall be deemed waived for any assessment year in which a hospital fails to file a declaration in the manner prescribed by this section. For purposes of this section, "personal property" includes all property subject to tax pursuant to section 12-71 of the general statutes, and "hospital" means any nonprofit (1) acute care general hospital, (2) ambulatory surgical center, as defined in section 12-263i of the general statutes, (3) freestanding chronic hospital, and (4) urgent care facility that operates for at least twelve hours a day, had been the location of a nonprofit general hospital for at least a portion of calendar year 1996 and was eligible to receive payments in lieu of taxes for such property under section 12-20a of the general statutes in the fiscal year commencing July 1, 2016. "Hospital" does not include any such hospital, center or facility operated by the federal government or the state of Connecticut or any political subdivision thereof.

(b) Any assessor in receipt of a declaration filed pursuant to subsection (a) of this section shall determine the present true and actual value of such declared property pursuant to the requirements set forth in sections 12-63 and 12-71 of the general statutes. Such assessor shall include data concerning the assessment of tangible personal property included on a personal property declaration filed in accordance with this section, in the data provided to the Secretary of the Office of Policy and Management for purposes of the report under section 12-120a of the general statutes.

Sec. 36. Section 12-42 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017):

The assessors may grant an extension of not more than forty-five days to file the declaration required pursuant to section 12-41 or section 35 of this act upon determination that there is good cause. If no declaration is filed, the assessors shall fill out a declaration including all property [which] that the assessors have reason to believe is owned by the person for whom such declaration is prepared, liable to taxation, at the percentage of its actual valuation, as determined by the assessors in accordance with the provisions of sections 12-63 and 12-71, from the best information they can obtain, and add thereto twenty-five per cent of such assessment. When the first day of November is a Saturday or Sunday, the declaration may be filed or postmarked on the next business day following.

Sec. 37. Subparagraph (A) of subdivision (7) of section 12-81 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017):

(7) (A) Subject to the provisions of sections 12-87, [and] 12-88 and section 35 of this act, the real property of, or held in trust for, a corporation organized exclusively for scientific, educational, literary, historical or charitable purposes or for two or more such purposes and used exclusively for carrying out one or more of such purposes or for the purpose of preserving open space land, as defined in section 12-107b, for any of the uses specified in said section, that is owned by any such corporation, and the personal property of, or held in trust for, any such corporation, provided (i) any officer, member or employee thereof does not receive or at any future time shall not receive any pecuniary profit from the operations thereof, except reasonable compensation for services in effecting one or more of such purposes or as proper beneficiary of its strictly charitable purposes, and (ii) in 1965, and quadrennially thereafter, a statement shall be filed on or before the first day of November with the assessor or board of assessors of any town, consolidated town and city or consolidated town and borough, in which any of its property claimed to be exempt is situated. Such statement shall be filed on a form provided by such assessor or board of assessors. The real property shall be eligible for the exemption regardless of whether it is used by another corporation organized exclusively for scientific, educational, literary, historical or charitable purposes or for two or more such purposes;

Sec. 38. Subdivision (16) of section 12-81 of the general statutes, as amended by section 32 of this act, is repealed and the following is substituted in lieu thereof (Effective October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017):

(16) Subject to the provisions of section 12-88 and section 35 of this act, all personal property of, or held in trust for, any Connecticut hospital society or corporation or sanatorium, provided (A) no officer, member or employee thereof receives or, at any future time, shall receive any pecuniary profit from the operations thereof, except reasonable compensation for services in the conduct of its affairs, and (B) in 1967, and quadrennially thereafter, a statement shall be filed by such hospital society, corporation or sanatorium on or before the first day of November with the assessor or board of assessors of any town, consolidated town and city or consolidated town and borough, in which any of its personal property claimed to be exempt is situated. Such statement shall be filed on a form provided by such assessor or board of assessors;

Sec. 39. Section 12-81 of the general statutes is amended by adding subdivision (78) as follows (Effective October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017):

(NEW) (78) Personal property owned or leased by a business organization whose personal property has a total assessed value of less than ten thousand dollars. Any person claiming the exemption provided under this subdivision for any assessment year shall annually, on or before the first day of November, file a written application for such exemption with the assessor or board of assessors in the town in which such personal property is located. Failure to file such an application in the manner and form provided by such assessor or board of assessors or within the time limit prescribed shall constitute a waiver of the right to the exemption for the assessment year.

Sec. 40. Section 4-66l of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(a) For the purposes of this section:

(1) "FY 15 mill rate" means the mill rate a municipality uses during the fiscal year ending June 30, 2015;

(2) "Mill rate" means, unless otherwise specified, the mill rate a municipality uses to calculate tax bills for motor vehicles;

(3) "Municipality" means any town, city, consolidated town and city or consolidated town and borough. "Municipality" includes a district for the purposes of subdivision (1) of subsection (d) of this section;

(4) "Municipal spending" means:

T216

Municipal

spending for

the fiscal year

prior to the

current fiscal

Municipal

spending for

the fiscal year

two years

prior to the

   

T217

   

T218

   

T219

   

T220

   

T221

year

current year

X 100

= Municipal spending;

T222

______________________________

T223

Municipal spending for the fiscal

T224

year two years prior to the

   

T225

current year

   

(5) "Per capita distribution" means:

T226

Municipal population

___________________

X Sales tax revenue

= Per capita distribution;

T227

T228

T229

Total state population

(6) "Pro rata distribution" means:

T230

Municipal weighted

mill rate

calculation

X Sales tax revenue

= Pro rata distribution;

T231

T232

T233

____________________

T234

Sum of all municipal

weighted mill rate

calculations combined

T235

T236

(7) "Regional council of governments" means any such council organized under the provisions of sections 4-124i to 4-124p, inclusive;

(8) "Municipal population" means the number of persons in a municipality according to the most recent estimate of the Department of Public Health;

(9) "Total state population" means the number of persons in this state according to the most recent estimate published by the Department of Public Health;

(10) "Weighted mill rate" means a municipality's FY 15 mill rate divided by the average of all municipalities' FY 15 mill rate;

(11) "Weighted mill rate calculation" means per capita distribution multiplied by a municipality's weighted mill rate;

(12) "Sales tax revenue" means the moneys in the account remaining for distribution pursuant to subdivision (6) of subsection (b) of this section;

(13) "District" means any district, as defined in section 7-324; and

(14) "Secretary" means the Secretary of the Office of Policy and Management.

(b) There is established an account to be known as the "municipal revenue sharing account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. The secretary shall set aside and ensure availability of moneys in the account in the following order of priority and shall transfer or disburse such moneys as follows:

(1) Ten million dollars for the fiscal year ending June 30, 2016, shall be transferred not later than April fifteenth for the purposes of grants under section 10-262h;

(2) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, moneys sufficient to make motor vehicle property tax grants payable to municipalities pursuant to subsection (c) of this section shall be expended not later than August first annually by the secretary;

(3) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, moneys sufficient to make the grants payable from the select payment in lieu of taxes grant account established pursuant to section 12-18c shall annually be transferred to the select payment in lieu of taxes account in the Office of Policy and Management;

(4) For the fiscal years ending June 30, 2018, and June 30, 2019, moneys sufficient to make the municipal revenue sharing grants payable to municipalities pursuant to subdivision (2) of subsection (d) of this section shall be expended not later than October thirty-first annually by the secretary;

(5) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, seven million dollars shall be expended for the purposes of the regional services grants pursuant to subsection (e) of this section to the regional councils of governments; and

(6) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, moneys in the account remaining shall be expended annually by the secretary for the purposes of the municipal revenue sharing grants established pursuant to subsection (f) of this section. Any such moneys deposited in the account for municipal revenue sharing grants between October first and June thirtieth shall be distributed to municipalities on the following October first and any such moneys deposited in the account between July first and September thirtieth shall be distributed to municipalities on the following January thirty-first. Any municipality may apply to the Office of Policy and Management on or after July first for early disbursement of a portion of such grant. The Office of Policy and Management may approve such an application if it finds that early disbursement is required in order for a municipality to meet its cash flow needs. No early disbursement approved by said office may be issued later than September thirtieth.

(c) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, motor vehicle property tax grants to municipalities that impose mill rates on real property and personal property other than motor vehicles greater than 32 mills or that, when combined with the mill rate of any district located within the municipality, impose mill rates greater than 32 mills, shall be made in an amount equal to the difference between the amount of property taxes levied by the municipality and any district located within the municipality on motor vehicles for the assessment year commencing October 1, 2013, and the amount such levy would have been if the mill rate on motor vehicles for said assessment year was 32 mills. Not later than fifteen calendar days after receiving a property tax grant pursuant to this section, the municipality shall disburse to any district located within the municipality the amount of any such property tax grant that is attributable to the district.

(d) (1) For the fiscal year ending June 30, 2017, each municipality shall receive a municipal revenue sharing grant, which shall be payable August 1, 2016, from the Municipal Revenue Sharing Fund established in section 4-66p. The total amount of the grant payable is as follows:

T237

Municipality

Grant Amount

T238

Andover

66,705

T239

Ansonia

605,442

T240

Ashford

87,248

T241

Avon

374,711

T242

Barkhamsted

76,324

T243

Beacon Falls

123,341

T244

Berlin

843,048

T245

Bethany

114,329

T246

Bethel

392,605

T247

Bethlehem

42,762

T248

Bloomfield

438,458

T249

Bolton

106,449

T250

Bozrah

53,783

T251

Branford

570,402

T252

Bridgeport

14,476,283

T253

Bridgewater

15,670

T254

Bristol

1,276,119

T255

Brookfield

343,611

T256

Brooklyn

103,910

T257

Burlington

193,490

T258

Canaan

14,793

T259

Canterbury

58,684

T260

Canton

211,078

T261

Chaplin

48,563

T262

Cheshire

594,084

T263

Chester

57,736

T264

Clinton

268,611

T265

Colchester

330,363

T266

Colebrook

29,694

T267

Columbia

111,276

T268

Cornwall

11,269

T269

Coventry

252,939

T270

Cromwell

288,951

T271

Danbury

2,079,675

T272

Darien

171,485

T273

Deep River

93,525

T274

Derby

462,718

T275

Durham

150,019

T276

East Granby

106,222

T277

East Haddam

186,418

T278

East Hampton

263,149

T279

East Hartford

3,877,281

T280

East Haven

593,493

T281

East Lyme

243,736

T282

East Windsor

232,457

T283

Eastford

23,060

T284

Easton

155,216

T285

Ellington

321,722

T286

Enfield

911,974

T287

Essex

74,572

T288

Fairfield

795,318

T289

Farmington

335,287

T290

Franklin

26,309

T291

Glastonbury

754,546

T292

Goshen

30,286

T293

Granby

244,839

T294

Greenwich

366,588

T295

Griswold

243,727

T296

Groton

433,177

T297

Guilford

456,863

T298

Haddam

170,440

T299

Hamden

4,491,337

T300

Hampton

38,070

T301

Hartford

13,908,437

T302

Hartland

27,964

T303

Harwinton

113,987

T304

Hebron

208,666

T305

Kent

26,808

T306

Killingly

351,213

T307

Killingworth

85,270

T308

Lebanon

149,163

T309

Ledyard

307,619

T310

Lisbon

45,413

T311

Litchfield

169,828

T312

Lyme

21,862

T313

Madison

372,897

T314

Manchester

1,972,491

T315

Mansfield

525,280

T316

Marlborough

131,065

T317

Meriden

1,315,347

T318

Middlebury

154,299

T319

Middlefield

91,372

T320

Middletown

964,657

T321

Milford

1,880,830

T322

Monroe

404,221

T323

Montville

401,756

T324

Morris

28,110

T325

Naugatuck

2,405,660

T326

New Britain

5,781,991

T327

New Canaan

168,106

T328

New Fairfield

288,278

T329

New Hartford

140,338

T330

New Haven

2,118,290

T331

New London

750,249

T332

New Milford

565,898

T333

Newington

651,000

T334

Newtown

572,949

T335

Norfolk

20,141

T336

North Branford

292,517

T337

North Canaan

66,052

T338

North Haven

487,882

T339

North Stonington

107,832

T340

Norwalk

3,401,590

T341

Norwich

1,309,943

T342

Old Lyme

79,946

T343

Old Saybrook

101,527

T344

Orange

284,365

T345

Oxford

171,492

T346

Plainfield

310,350

T347

Plainville

363,176

T348

Plymouth

255,581

T349

Pomfret

54,257

T350

Portland

192,715

T351

Preston

58,934

T352

Prospect

197,097

T353

Putnam

76,399

T354

Redding

189,781

T355

Ridgefield

512,848

T356

Rocky Hill

405,872

T357

Roxbury

15,998

T358

Salem

85,617

T359

Salisbury

20,769

T360

Scotland

36,200

T361

Seymour

343,388

T362

Sharon

19,467

T363

Shelton

706,038

T364

Sherman

39,000

T365

Simsbury

567,460

T366

Somers

141,697

T367

South Windsor

558,715

T368

Southbury

404,731

T369

Southington

889,821

T370

Sprague

89,456

T371

Stafford

243,095

T372

Stamford

2,372,358

T373

Sterling

77,037

T374

Stonington

202,888

T375

Stratford

1,130,316

T376

Suffield

321,763

T377

Thomaston

158,888

T378

Thompson

114,582

T379

Tolland

303,971

T380

Torrington

2,435,109

T381

Trumbull

745,325

T382

Union

17,283

T383

Vernon

641,027

T384

Voluntown

33,914

T385

Wallingford

919,984

T386

Warren

11,006

T387

Washington

25,496

T388

Waterbury

13,438,542

T389

Waterford

259,091

T390

Watertown

453,012

T391

West Hartford

1,614,320

T392

West Haven

1,121,850

T393

Westbrook

80,601

T394

Weston

211,384

T395

Westport

262,402

T396

Wethersfield

940,267

T397

Willington

121,568

T398

Wilton

380,234

T399

Winchester

224,447

T400

Windham

513,847

T401

Windsor

593,921

T402

Windsor Locks

256,241

T403

Wolcott

340,859

T404

Woodbridge

247,758

T405

Woodbury

200,175

T406

Woodstock

97,708

T407

Borough of Danielson

-

T408

Borough of Litchfield

-

T409

Bloomfield, Blue Hills FD

92,961

T410

Enfield Thompsonville FD #2

354,311

T411

Manchester - Eighth Utility District

436,718

T412

Middletown - City Fire

910,442

T413

Middletown So Fire

413,961

T414

Norwich CCD

552,565

T415

Norwich TCD

62,849

T416

Simsbury FD

221,536

T417

Plainfield Fire District

-

T418

Windham, Special Service District #2

640,000

T419

Windham 1st Taxing District

-

T420

Windham First

 

T421

West Haven First Center (D1)

1,039,843

T422

West Haven: Allingtown FD (D3)

483,505

T423

West Haven: West Shore FD (D2)

654,640

(2) For the fiscal years ending June 30, 2018, and June 30, 2019, each municipality shall receive a municipal sharing grant payable not later than October thirty-first of each year. The total amount of the grant payable is as follows:

T424

Municipality

Grant Amount

T425

Andover

96,020

T426

Ansonia

643,519

T427

Ashford

125,591

T428

Avon

539,387

T429

Barkhamsted

109,867

T430

Beacon Falls

177,547

T431

Berlin

1,213,548

T432

Bethany

164,574

T433

Bethel

565,146

T434

Bethlehem

61,554

T435

Bloomfield

631,150

T436

Bolton

153,231

T437

Bozrah

77,420

T438

Branford

821,080

T439

Bridgeport

9,758,441

T440

Bridgewater

22,557

T441

Bristol

1,836,944

T442

Brookfield

494,620

T443

Brooklyn

149,576

T444

Burlington

278,524

T445

Canaan

21,294

T446

Canterbury

84,475

T447

Canton

303,842

T448

Chaplin

69,906

T449

Cheshire

855,170

T450

Chester

83,109

T451

Clinton

386,660

T452

Colchester

475,551

T453

Colebrook

42,744

T454

Columbia

160,179

T455

Cornwall

16,221

T456

Coventry

364,100

T457

Cromwell

415,938

T458

Danbury

2,993,644

T459

Darien

246,849

T460

Deep River

134,627

T461

Derby

400,912

T462

Durham

215,949

T463

East Granby

152,904

T464

East Haddam

268,344

T465

East Hampton

378,798

T466

East Hartford

2,036,894

T467

East Haven

854,319

T468

East Lyme

350,852

T469

East Windsor

334,616

T470

Eastford

33,194

T471

Easton

223,430

T472

Ellington

463,112

T473

Enfield

1,312,766

T474

Essex

107,345

T475

Fairfield

1,144,842

T476

Farmington

482,637

T477

Franklin

37,871

T478

Glastonbury

1,086,151

T479

Goshen

43,596

T480

Granby

352,440

T481

Greenwich

527,695

T482

Griswold

350,840

T483

Groton

623,548

T484

Guilford

657,644

T485

Haddam

245,344

T486

Hamden

2,155,661

T487

Hampton

54,801

T488

Hartford

1,498,643

T489

Hartland

40,254

T490

Harwinton

164,081

T491

Hebron

300,369

T492

Kent

38,590

T493

Killingly

505,562

T494

Killingworth

122,744

T495

Lebanon

214,717

T496

Ledyard

442,811

T497

Lisbon

65,371

T498

Litchfield

244,464

T499

Lyme

31,470

T500

Madison

536,777

T501

Manchester

1,971,540

T502

Mansfield

756,128

T503

Marlborough

188,665

T504

Meriden

1,893,412

T505

Middlebury

222,109

T506

Middlefield

131,529

T507

Middletown

1,388,602

T508

Milford

2,707,412

T509

Monroe

581,867

T510

Montville

578,318

T511

Morris

40,463

T512

Naugatuck

1,251,980

T513

New Britain

3,131,893

T514

New Canaan

241,985

T515

New Fairfield

414,970

T516

New Hartford

202,014

T517

New Haven

114,863

T518

New London

917,228

T519

New Milford

814,597

T520

Newington

937,100

T521

Newtown

824,747

T522

Norfolk

28,993

T523

North Branford

421,072

T524

North Canaan

95,081

T525

North Haven

702,295

T526

North Stonington

155,222

T527

Norwalk

4,896,511

T528

Norwich

1,362,971

T529

Old Lyme

115,080

T530

Old Saybrook

146,146

T531

Orange

409,337

T532

Oxford

246,859

T533

Plainfield

446,742

T534

Plainville

522,783

T535

Plymouth

367,902

T536

Pomfret

78,101

T537

Portland

277,409

T538

Preston

84,835

T539

Prospect

283,717

T540

Putnam

109,975

T541

Redding

273,185

T542

Ridgefield

738,233

T543

Rocky Hill

584,244

T544

Roxbury

23,029

T545

Salem

123,244

T546

Salisbury

29,897

T547

Scotland

52,109

T548

Seymour

494,298

T549

Sharon

28,022

T550

Shelton

1,016,326

T551

Sherman

56,139

T552

Simsbury

775,368

T553

Somers

203,969

T554

South Windsor

804,258

T555

Southbury

582,601

T556

Southington

1,280,877

T557

Sprague

128,769

T558

Stafford

349,930

T559

Stamford

3,414,955

T560

Sterling

110,893

T561

Stonington

292,053

T562

Stratford

1,627,064

T563

Suffield

463,170

T564

Thomaston

228,716

T565

Thompson

164,939

T566

Tolland

437,559

T567

Torrington

1,133,394

T568

Trumbull

1,072,878

T569

Union

24,878

T570

Vernon

922,743

T571

Voluntown

48,818

T572

Wallingford

1,324,296

T573

Warren

15,842

T574

Washington

36,701

T575

Waterbury

5,595,448

T576

Waterford

372,956

T577

Watertown

652,100

T578

West Hartford

2,075,223

T579

West Haven

1,614,877

T580

Westbrook

116,023

T581

Weston

304,282

T582

Westport

377,722

T583

Wethersfield

1,353,493

T584

Willington

174,995

T585

Wilton

547,338

T586

Winchester

323,087

T587

Windham

739,671

T588

Windsor

854,935

T589

Windsor Locks

368,853

T590

Wolcott

490,659

T591

Woodbridge

274,418

T592

Woodbury

288,147

T593

Woodstock

140,648

(e) For the fiscal year ending June 30, 2017, and each fiscal year thereafter, each regional council of governments shall receive a regional services grant, the amount of which will be based on a formula to be determined by the secretary, except that, for the fiscal year ending June 30, 2018, and each fiscal year thereafter, thirty-five per cent of such grant moneys shall be awarded to regional councils of governments for the purpose of assisting regional education service centers in merging their human resource, finance or technology services with such services provided by municipalities within the region. For the fiscal year ending June 30, 2017, three million dollars shall be expended by the secretary from the Municipal Revenue Sharing Fund established in section 4-66p for the purpose of the regional services grant. No such council shall receive a grant for the fiscal year ending June 30, 2018, or any fiscal year thereafter, unless the secretary approves a spending plan for such grant moneys submitted by such council to the secretary on or before July 1, 2017, and annually thereafter. The regional councils of governments shall use such grants for planning purposes and to achieve efficiencies in the delivery of municipal services by regionalizing such services, including, but not limited to, region-wide consolidation of such services. Such efficiencies shall not diminish the quality of such services. A unanimous vote of the representatives of such council shall be required for approval of any expenditure from such grant. On or before October 1, 2017, and biennially thereafter, each such council shall submit a report, in accordance with section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and finance, revenue and bonding. Such report shall summarize the expenditure of such grants and provide recommendations concerning the expansion, reduction or modification of such grants.

(f) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, each municipality shall receive a municipal revenue sharing grant as follows:

(1) (A) A municipality having a mill rate at or above twenty-five shall receive the per capita distribution or pro rata distribution, whichever is higher for such municipality.

(B) Such grants shall be increased by a percentage calculated as follows:

T594

 

Sum of per capita distribution amount

 

T595

 

for all municipalities having a mill rate

 

T596

 

below twenty-five – pro rata distribution

 

T597

 

amount for all municipalities

 

T598

 

having a mill rate below twenty-five

 

T599

 

_______________________________________

 

T600

 

Sum of all grants to municipalities

 

T601

 

calculated pursuant to subparagraph (A)

 

T602

 

of subdivision (1) of this subsection.

 

(C) Notwithstanding the provisions of subparagraphs (A) and (B) of this subdivision, Hartford shall receive not more than 5.2 per cent of the municipal revenue sharing grants distributed pursuant to this subsection; Bridgeport shall receive not more than 4.5 per cent of the municipal revenue sharing grants distributed pursuant to this subsection; New Haven shall receive not more than 2.0 per cent of the municipal revenue sharing grants distributed pursuant to this subsection and Stamford shall receive not more than 2.8 per cent of the equalization grants distributed pursuant to this subsection. Any excess funds remaining after such reductions in payments to Hartford, Bridgeport, New Haven and Stamford shall be distributed to all other municipalities having a mill rate at or above twenty-five on a pro rata basis according to the payment they receive pursuant to this subdivision; and

(2) A municipality having a mill rate below twenty-five shall receive the per capita distribution or pro rata distribution, whichever is less for such municipality.

(3) For the purposes of this subsection, "mill rate" means the mill rate for real property and personal property other than motor vehicles.

(g) Except as provided in subsection (c) of this section, a municipality may disburse any municipal revenue sharing grant funds to a district within such municipality.

[(h) (1) Except as provided in subdivision (2) of this subsection, for the fiscal year ending June 30, 2018, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) or (f) of this section shall be reduced if such municipality increases its adopted budget expenditures for such fiscal year above a cap equal to the amount of adopted budget expenditures authorized for the previous fiscal year by 2.5 per cent or more or the rate of inflation, whichever is greater. Such reduction shall be in an amount equal to fifty cents for every dollar expended over the cap set forth in this subsection. For the purposes of this section, (A) "municipal spending" does not include expenditures for debt service, special education, implementation of court orders or arbitration awards, expenditures associated with a major disaster or emergency declaration by the President of the United States, a disaster emergency declaration issued by the Governor pursuant to chapter 517 or any disbursement made to a district pursuant to subsection (c) or (g) of this section, budgeting for an audited deficit, nonrecurring grants, capital expenditures or payments on unfunded pension liabilities, (B) "adopted budget expenditures" includes expenditures from a municipality's general fund and expenditures from any nonbudgeted funds, and (C) "capital expenditure" means a nonrecurring capital expenditure of one hundred thousand dollars or more. Each municipality shall annually certify to the secretary, on a form prescribed by said secretary, whether such municipality has exceeded the cap set forth in this subsection and if so the amount by which the cap was exceeded.

(2) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) or (f) of this section shall not be reduced in the case of a municipality whose adopted budget expenditures exceed the cap set forth in subdivision (1) of this subsection by an amount proportionate to any increase to its municipal population from the previous fiscal year, as determined by the secretary.]

[(i)] (h) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (f) of this section shall be reduced proportionately in the event that the total of such grants in such year exceeds the amount available for such grants in the municipal revenue sharing account established pursuant to subsection (b) of this section.

Sec. 41. Section 12-130 of the general statutes, as amended by section 209 of public act 15-244, is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(a) When any community, authorized to raise money by taxation, lays a tax, it shall appoint a collector thereof; and the selectmen of towns, and the committees of other communities, except as otherwise specially provided by law, shall make out and sign rate bills containing the proportion which each individual is to pay according to the assessment list; and any judge of the Superior Court or any justice of the peace, on their application or that of their successors in office, shall issue a warrant for the collection of any sums due on such rate bills. Each collector shall mail or hand to each individual from whom taxes are due a bill for the amount of taxes for which such individual is liable. In addition, the collector shall include with such bill, using [one of the following methods] (1) an attachment, (2) an enclosure, or (3) printed matter upon the face of the bill, a statement of [: (A) State] state aid to municipalities [which] that shall be in the following form:

"The (fiscal year) budget for the (city or town) estimates that .... Dollars will be received from the state of Connecticut for various state financed programs. Without this assistance your (fiscal year) property tax would be (herein insert the amount computed in accordance with subsection (b) of this section) mills.". [; and

(B) State aid reduction to municipalities that overspend, which shall be in the following form:

"The state will reduce grants to your town if local spending increases by more than 2.5 per cent from the previous fiscal year."]

Failure to send out or receive any such bill or statement shall not invalidate the tax. For purposes of this subsection, "mail" includes to send by electronic mail, provided an individual from whom taxes are due consents, in writing, to receive a bill and statement electronically. Prior to sending any such bill or statement by electronic mail, a community shall provide the public with the appropriate electronic mail address of the community on the community's Internet web site and shall establish procedures to ensure that any individual who consents to receive a bill or statement electronically (i) receives such bill or statement, and (ii) is provided the proper return electronic mail address of the community sending the bill or statement.

(b) The mill rate to be inserted in the statement of state aid to municipalities required by subsection (a) of this section shall be computed on the total estimated revenues required to fund the estimated expenditures of the municipality exclusive of assistance received or anticipated from the state.

Sec. 42. Subsection (b) of section 12-71 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017):

(b) Except as otherwise provided by the general statutes, property subject to this section shall be valued at the same percentage of its then actual valuation as the assessors have determined with respect to the listing of real estate for the same year, except that any antique, rare or special interest motor vehicle, as defined in section 14-1, as amended by this act, shall be assessed at a value of not more than [five hundred] one thousand dollars. The owner of such antique, rare or special interest motor vehicle may be required by the assessors to provide reasonable documentation that such motor vehicle is an antique, rare or special interest motor vehicle, provided any motor vehicle for which special number plates have been issued pursuant to section 14-20 shall not be required to provide any such documentation. The provisions of this section shall not include money or property actually invested in merchandise or manufacturing carried on out of this state or machinery or equipment [which] that would be eligible for exemption under subdivision (72) of section 12-81 once installed and [which] that cannot begin or [which] that has not begun manufacturing, processing or fabricating; or [which] that is being used for research and development, including experimental or laboratory research and development, design or engineering directly related to manufacturing or being used for the significant servicing, overhauling or rebuilding of machinery and equipment for industrial use or the significant overhauling or rebuilding of other products on a factory basis or being used for measuring or testing or metal finishing or in the production of motion pictures, video and sound recordings.

Sec. 43. Subdivision (3) of section 14-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):

(3) "Antique, rare or special interest motor vehicle" means a motor vehicle [twenty] thirty years old or older [which] that is being preserved because of historic interest and [which] is not altered or modified from the original manufacturer's specifications, except that a motor vehicle that was registered as an antique, rare or special interest motor vehicle in accordance with section 14-20 prior to October 1, 2017, shall be permitted to continue to be registered as an antique, rare or special interest motor vehicle;

Sec. 44. (NEW) (Effective July 1, 2017) (a) The Secretary of the Office of Policy and Management shall establish a program for municipalities to apply for approval of a plan for taxation that establishes differentiated rates of taxation for different classes of property. Different mill rates for taxable real property in each class shall not be applicable to any real property for which a grant is payable under section 12-19a, 12-20a or 12-81b of the general statutes, as amended by this act.

(b) The secretary shall (1) establish application procedures and criteria for the program and post such procedures and criteria on the Office of Policy and Management's Internet web site, and (2) send a copy of such procedures and criteria to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding.

(c) Prior to submitting a plan to the secretary, the chief elected official of a municipality shall:

(1) Appoint a committee consisting of (A) a representative of the legislative body of the municipality, (B) a representative from the business community, (C) the assessor of the municipality, and (D) relevant taxpayers and stakeholders, to prepare a plan for submission to the legislative body of the municipality of the implementation of different rates of taxation among property classes. Such plan shall (i) provide a process for implementation of differentiated tax rates, (ii) designate geographic areas of the municipality where the differentiated rates shall be applied, if applicable, and (iii) identify legal and administrative issues affecting the implementation of the plan. The chief elected official, chief executive officer and tax collector of the municipality shall have an opportunity to review and comment on the plan prior to its submission to the legislative body of the municipality; and

(2) Submit, after approval of the plan by the legislative body of the municipality, such plan to the secretary before October first for implementation in the following fiscal year.

(d) The secretary shall not approve a plan unless the chief elected official of the municipality certifies that the plan has been developed and approved pursuant to the requirements under subsection (c) of this section. The secretary shall send a notice of approval or disapproval to the chief executive officer of the municipality and to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding not later than January first next following such submission.

(e) No municipality shall implement differentiated tax rates in a plan approved by the secretary until the legislative body of the municipality adopts such rates by ordinance or, in a municipality where the legislative body is a town meeting, by vote of the board of selectmen.

Sec. 45. (NEW) (Effective July 1, 2017) The amount of state aid, plus the sum of all property taxes paid to a municipality for real property owned by a hospital, in the fiscal year ending June 30, 2018, that exceeds the amount of actual state aid paid to the municipality in the fiscal year ending June 30, 2017, shall be excluded from municipal revenue that is considered when determining the financial capacity of a municipal employer or local board of education for arbitration awards entered on or after July 1, 2017. For the purposes of this section, "state aid" means the amount of actual state aid, if known, or the estimated amount of funds the municipality can expect to receive as calculated by the Secretary of Policy and Management pursuant to 4-71b of the general statutes. "State aid" does not include the amount of any capital expenditures of the state made on behalf of the municipality.

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

Section 1

July 1, 2017

7-560

Sec. 2

July 1, 2017

7-561

Sec. 3

July 1, 2017

7-562

Sec. 4

July 1, 2017

7-563

Sec. 5

July 1, 2017

7-564

Sec. 6

July 1, 2017

7-565

Sec. 7

July 1, 2017

7-568

Sec. 8

July 1, 2017

7-569

Sec. 9

July 1, 2017

7-570

Sec. 10

July 1, 2017

7-571

Sec. 11

July 1, 2017

7-572

Sec. 12

July 1, 2017

New section

Sec. 13

July 1, 2017

7-573

Sec. 14

July 1, 2017

7-574

Sec. 15

July 1, 2017

New section

Sec. 16

July 1, 2017

7-575

Sec. 17

July 1, 2017

7-576

Sec. 18

July 1, 2017

New section

Sec. 19

July 1, 2017

New section

Sec. 20

July 1, 2017

New section

Sec. 21

July 1, 2017

New section

Sec. 22

July 1, 2017

New section

Sec. 23

July 1, 2017

New section

Sec. 24

July 1, 2017

7-577

Sec. 25

July 1, 2017

7-578

Sec. 26

July 1, 2017

7-579

Sec. 27

July 1, 2017

New section

Sec. 28

from passage and applicable to assessment years commencing on or after October 1, 2016

New section

Sec. 29

July 1, 2017

12-18b(a) and (b)

Sec. 30

July 1, 2017

12-18b(e)(1)

Sec. 31

from passage and applicable to assessment years commencing on or after October 1, 2016

12-81(7)

Sec. 32

from passage and applicable to assessment years commencing on or after October 1, 2016

12-81(16)

Sec. 33

from passage and applicable to assessment years commencing on or after October 1, 2016

12-81(58)

Sec. 34

from passage

19a-644(e)

Sec. 35

October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017

New section

Sec. 36

October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017

12-42

Sec. 37

October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017

12-81(7)(A)

Sec. 38

October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017

12-81(16)

Sec. 39

October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017

12-81

Sec. 40

July 1, 2017

4-66l

Sec. 41

October 1, 2017

12-130

Sec. 42

October 1, 2017, and applicable to assessment years commencing on or after October 1, 2017

12-71(b)

Sec. 43

October 1, 2017

14-1(3)

Sec. 44

July 1, 2017

New section

Sec. 45

July 1, 2017

New section

Statement of Purpose:

To implement the Governor's budget recommendations.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]