SB 237 — AN ACT CONCERNING PUBLIC TRANSPORTATION.

GF - Cost $3 million None Department of Veterans' Affairs GF - Cost $1 million See Below Note:

TF=Transportation Fund;

GF=General Fund Municipal Impact:

Municipalities Effect FY 27 $ FY 28 $ Local and Regional School Potential See Below See Below Districts Revenue Gain Explanation Section 1 results in a cost of approximately $28.4 million in FY 27 and $29.7 million in FY 28 by requiring the Department of Transportation (DOT)torestoreserviceonShoreLineEast topre-COVIDlevels.

Actual costs will depend on several factors including availability of equipment and staff as well as required negotiations with Amtrak.

Section 2 requires DOT to assess various topics in conjunction with any state-wide bus study the agency undertakes in calendar year 2026 and is not anticipated to have a fiscal impact.

Sections 3 and 7 result in potential savings to DOT by eliminating certain notice requirements related to proposed transit fare decreases.

It 1Shore Line East currently operates 132 trains per week compared to 222 trains per week in 2019 (representing 59.5% of pre-COVID service levels).

sSB237 / File No.

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453 is expected that DOT could save up to $10,000 associated with any round of proposed fare decreases by, for example, having to place fewer newspaper advertisements.

Sections 4 and 8 appropriate $3 million in FY 27 from the General Fund (GF) to the State Department of Education (SDE) to establish a competitive grant program for local and regional boards of education (BOEs) to provide free bus passes to students in grades nine through 12.

The revenue gain to a BOE depends on the provisions of the grant program and award amounts.

The cost to SDE may be partially offset by repayments from districts that are found to not have used the grant for its specified purposes.

Section 5 and 9 appropriate $1 million in FY 27 from the GF to the Department of Veterans Affairs (DVA) to purchase bus passes for veterans.

The bill does not provide funding for DVA to purchase bus passes beyond FY 27;

therefore, costs in FY 28 and beyond will depend on available agency resources or any future funding provided.

Section 6 results in cost to DOT of up to $1,150,000 annually, as described below.

This section requires DOT to subsidize transit districts for any revenue loss they incur for providing discounted fares of up to 50% for the following populations:

(1) veterans, (2) those 65 or older, (3) those with disabilities, and (4) those 18 or younger.

In general, transit districts already offer discounts to those 65 or older and those with disabilities.

The cost to DOT to subsidize currently existing discounts (i.e., for those 65 or older and those with disabilities), is approximately $750,000 annually.

The cost to DOT to subsidize additional discount programs (i.e., for veterans and those 18 or younger), is approximately $400,000 annually.

The total cost for both, assuming all transit districts expand discounts to each of the bill's four target populations, would be $1,150,000 annually.

Spending Cap sSB237 / File No.

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453 sHB 5032, the FY 27 Revised Budget as favorably reported by the Appropriations Committee, is under the spending cap by $16.1 million in FY 27.

The appropriations contained in sections 8 and 9 of the bill would result in the budget being under the spending cap by $12.1 million in FY 27.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation, any future funding made available for the bus pass programs, growth in bus ridership, and decisions made by transit districts.

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453 OLR Bill Analysis sSB 237 AN ACT CONCERNING PUBLIC TRANSPORTATION.

TABLE OF CONTENTS:

SUMMARY § 1 — SHORE LINE EAST RAIL LINE SERVICE Requires DOT, by July 1, 2026, to increase Shore Line East rail line’s service frequency and number of runs based on specified considerations § 2 — DOT STATEWIDE BUS SERVICE STUDY Requires DOT, when doing any statewide bus service study during 2026, to (1)assessincreasing service frequency onthebustransit route between the Naugatuck Valley region and New Haven at peak times and (2) give the study to the Transportation Committee within 30 days of completing it §§ 3 & 7 — DOT MASS TRANSIT FARE INCREASE NOTICE Specifies that current law’s notice requirements for DOT mass transit fare changes only apply to fare increases and modifies the way in which the department must advertise the notice §§ 4 & 8 — FREE BUS PASS PROGRAM FOR STUDENTS Requires SDE to administer a program providing grants to school boards to (1) buy passes for state-owned or -controlled public buses and (2) distribute them without cost to public school students in grades 9-12;

appropriates $3 million for the program to SDE from the General Fund for FY 27 §§ 5 & 9 — FREE BUS PASSES FOR VETERANS Requires DVA to buy passes for state-owned or -controlled public buses and distribute them without cost to Connecticut veterans;

appropriates $1 million for these purposes to DVA from the General Fund for FY 27 § 6 — TRANSIT DISTRICT OPERATING SUBSIDIES sSB237 / File No.

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453 Requires the DOT commissioner to (1) give operating subsidies to transit districts that provide up to a 50% fare discount to veterans, seniors, youth,andpeoplewithdisabilitiesand(2)establisheligibility criteria, an application process, and reporting requirements SUMMARY This bill makes various changes in public transit-related laws.

A section-by-section analysis follows.

EFFECTIVE DATE:

July 1, 2026, except the provisions on the (1) Shore Line East rail line and Department of Transportation (DOT) bus service study are effective upon passage and (2) mass transit fare increase notices are effective October 1, 2026.

§ 1 — SHORE LINE EAST RAIL LINE SERVICE Requires DOT, by July 1, 2026, to increase Shore Line East rail line’s service frequency and number of runs based on specified considerations The bill requires DOT, by July 1, 2026, to increase Shore Line East rail line’s service frequency and number of runs to levels comparable to those that existed before the service reduction due to the governor- declared COVID-19 public health and civil preparedness emergencies.

In doing so, the department must consider ridership data, connectivity with other rail lines and public transportation services, workforce commuting patterns, employer hiring activity and feedback, and seasonal tourism demands.

The bill specifies that the goal of the increase is to reduce passenger waiting times and increase service reliability.

§ 2 — DOT STATEWIDE BUS SERVICE STUDY Requires DOT, when doing any statewide bus service study during 2026, to (1) assess increasing service frequency on the bus transit route between the Naugatuck Valley region and New Haven at peak times and (2) give the study to the Transportation Committee within 30 days of completing it The bill requires DOT, when doing any statewide bus service study during the 2026 calendar year, to (1) assess the feasibility of increasing service frequency on the bus transit route between the Naugatuck sSB237 / File No.

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453 Valley region and New Haven at peak times and (2) include related recommendations for ensuring service meets public demand and reduces passenger waiting times.

Under the bill, within 30 days after DOT completes any such study, the department must send the results to the Transportation Committee.

§§ 3 & 7 — DOT MASS TRANSIT FARE INCREASE NOTICE Specifies that current law’s notice requirements for DOT mass transit fare changes only apply to fare increases and modifies the way in which the department must advertise the notice The bill specifies that (1) a provision of current law requiring DOT to follow a notice process before changing fares for mass land transportation (rail and bus services) only applies to fare increases and (2) the notice must include both the date and time the increase will take effect, rather than just the date as under current law.

The bill also modifies the way in which DOT must advertise this notice by requiring the department to do so in one or more newspapers with circulation in all areas that would be affected by the proposed fare increase.

Under current law, DOT must do so in at least one newspaper with general circulation in all areas of the state that may be affected by thefarechange.Asunderexistinglaw,unchangedbythebill,DOTmust advertise this notice at least once.

The bill specifies that the advertised notice must include the date (in addition to the time and place as current law requires) that a public hearing will be held on the proposed fare increase.

Additionally, the bill makes a technical change by specifying that the Uniform Administrative Procedure Act (UAPA) does not apply to the lawonmassland transportation farechanges(§7).Existing lawonthese fare changes already exempts them from UAPA.

§§ 4 & 8 — FREE BUS PASS PROGRAM FOR STUDENTS Requires SDE to administer a program providing grants to school boards to (1) buy passes for state-owned or -controlled public buses and (2) distribute them without cost to public school students in grades 9-12;

appropriates $3 million for the program to SDE from the General Fund for FY 27 sSB237 / File No.

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453 The bill requires the State Department of Education (SDE) to administer a program providing grants to local or regional boards of education (“school boards”) for (1) purchasing passes for state-owned or -controlled public buses (CTtransit buses) and (2) distributing them withoutcosttopublicschoolstudentsingrades9-12underparticipating school boards’ jurisdiction.

The bill appropriates $3 million for the program to SDE from the General Fund for FY 27.

The bill authorizes SDE to develop guidelines and grant criteria needed to administer the program, including setting the application process.

Each school boardthat receives agrant must submit to SDEany reports and financial statements the department requires.

If SDE finds that any grant is being used for purposes not allowed by the bill, the department may require the school board to repay the state.

The bill requires SDE, starting by July 1, 2027, to annually report on theprogramtotheEducationandTransportationcommittees,including on the number of grants it awarded during the prior year and the program’s impact on student outcomes.

Background Related Law on School Board Bus Passes.

PA 25-65 (§ 37) allows school boards to (1) purchase passes for state-owned or -controlled public buses at a discounted rate and (2) distribute the passes at no cost to public school students in grades 9-12 under their jurisdiction or sell them to these students at cost or for a reduced cost (codified at CGS § 13b-38j(c)).

§§ 5 & 9 — FREE BUS PASSES FOR VETERANS Requires DVA to buy passes for state-owned or -controlled public buses and distribute them without cost to Connecticut veterans;

appropriates $1 million for these purposes to DVA from the General Fund for FY 27 The bill requires the Department of Veterans Affairs (DVA) to purchase passes for state-owned or -controlled public buses (CTtransit buses) and distribute them without cost to Connecticut veterans.

It relatedly (1)appropriates$1million for these purposesto DVAfrom the General Fund for FY 27, (2) requires veterans to apply to DVA for the sSB237 / File No.

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453 bus passes, and (3) allows DVA to develop guidelines and criteria needed to distribute the passes, including setting the application process.

The bill requires DVA, starting by July 1, 2027, to annually report to the Veterans’ and Military Affairs and Transportation committees on the number of passes it purchased and distributed during the prior year and the impact on veterans.

Under the bill, a “veteran” is anyone honorably discharged or released under honorable conditions, or released with an other than honorable discharge based on a qualifying condition, from active service in the armed forces (the U.S.

Army, Navy, Marine Corps, Coast Guard, Space Force, Air Force, and any of their reserve components, including the Connecticut National Guard when under federal service) (CGS § 27-103).

§ 6 — TRANSIT DISTRICT OPERATING SUBSIDIES Requires the DOT commissioner to (1) give operating subsidies to transit districts that provide up to a 50% fare discount to veterans, seniors, youth, and people with disabilities and (2) establish eligibility criteria, an application process, and reporting requirements The bill requires the DOT commissioner to give an operating subsidy to any transit district that provides a fare discount, not exceeding 50%, to:

veterans (as defined above), seniors (people age 65 or older), youth (people age 18 or younger), and people with disabilities.

The subsidies are to offset a transit district’s revenue losses from providing these fare discounts.

Under the bill, the DOT commissioner must establish related eligibility criteria, an application process, and reporting requirements.

(By law, a transit district is responsible for setting its own passenger fares and other rates (CGS § 7-273d).) PA 25-65 (§ 37) (a related law) generally requires the DOT commissioner to give up to a 50% fare discount for state-owned or - controlled public buses (CTtransit buses) to the same groups discussed above (veterans, seniors, youth, and people with disabilities) (codified at CGS § 13b-38j(a)).

COMMITTEE ACTION sSB237 / File No.

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453 Transportation Committee Joint Favorable Substitute Yea 35 Nay 1 (03/16/2026) sSB237 / File No.

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