SB 388 — AN ACT CONCERNING THE MASHANTUCKET PEQUOT AND MOHEGAN FUND.

Senate General Assembly RaisedFile Bill No.

388647 February Session, 2026 LCOSubstitute Senate Bill No.

1807388 ReferredSenate, toApril 15, 2026 The Committee on APPROPRIATIONSAppropriations Introducedreported by:through SEN.

(APP)OSTEN ANof ACTthe CONCERNING19th THEDist., MASHANTUCKETChairperson PEQUOTof ANDthe MOHEGANCommittee FUND.on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING THE MASHANTUCKET PEQUOT AND MOHEGAN FUND.

All funds received by the state of Connecticut from the Mashantucket Pequot Tribe pursuant to the joint memorandum of understanding entered into by and betweenthestateandthetribeonJanuarybetween 13,1993,asamendedonAprilthe state and the [tribe] Mashantucket Pequot Tribe on January 13, 1993, as amended on April 30, 1993, and any successor thereto, or from the Mohegan Tribe of Indians of Connecticut pursuant to the memorandum of understanding entered into by and between the state and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as amended from time to time, shall be deposited in the General Fund.

[During the fiscal year] (2)sSB388 For/ theFile fiscal years ending June 30, 2015, [and each fiscal year thereafter] to June 30, 2025, inclusive, from the funds received by the state from the tribe pursuant to said joint memorandum of understanding, as amended, and any successor thereto, an amount equal to the appropriation to the Mashantucket Pequot and Mohegan Fund for Grants to Towns shall be transferred to the Mashantucket LCO No.

1807647 1 ofsSB388 3File RaisedNo. Bill No.388 Pequot and Mohegan Fund and shall be distributed by the Office of Policy and Management, during said fiscal [year] years, in accordance with the provisions of section 3-55j.

647 (2) For the fiscal yearyears ending June 30, 2026,2015, andeachfiscal[and yeareach thereafter,onehundredfifty-twofiscal millionthreeyear hundredthereafter] seventy-eightto thousandJune six30, hundred2027, seventy-sixinclusive, dollarsfrom of the funds depositedreceived inby the Generalstate Fundfrom the tribe pursuant to subdivisionsaid (1)joint memorandum of thisunderstanding, subsectionas oramended, receivedand byany thesuccessor statethereto, pursuantan amount equal to the memorandumappropriation ofto understandingthe enteredMashantucket intoPequot by and betweenMohegan theFund statefor andGrants to Towns shall be transferred to the MoheganMashantucket TribePequot ofand IndiansMohegan ofFund Connecticutand onshall Maybe 17,distributed 1994,by asthe amendedOffice fromof timePolicy toand time,Management, shallduring besaid transferredfiscal from[year] theyears, Generalin Fundaccordance towith the Mashantucketprovisions Pequotof andsection Mohegan3-55j. Fund.

For the fiscal year ending June 30, 2028, andeachfiscal year thereafter,onehundredfifty-two millionthree hundred seventy-eight thousand six hundred seventy-six dollars of the funds deposited in the General Fund pursuant to subdivision (1) of this subsection shall be transferred from the General Fund to the Mashantucket Pequot and Mohegan Fund.

The amount of thethegrant grant payable to each municipality during any fiscal year, in accordance with [said] section 3-55j, shall be reduced proportionately if the total of such grants exceeds the amount of funds available for such year.

The Secretary of the Office of Policy and Management shall, annually, not later than the fifteenth day of December, the fifteenth day of March and the fifteenth day ofJunecertifyof June certify to theComptrollerthe theamountComptroller the amount due each municipality under the provisions of section 3-55j and the Comptroller shall draw an order on the Treasurer on or before the fifth business day following the fifteenth day of December, the fifth business day following the fifteenth day of March and the fifth business day following the fifteenth day of June and the Treasurer shall pay the amount thereof to such municipality on or before the first day of January, the first day of April and the thirtieth day of June.

LCOsSB388 / File No.

1807647 2 ofsSB388 3File Raised Bill No.

388647 This act shall take effect as follows and shall amend the following sections:

Section 1 July 1, 2026 3-55i StatementAPP ofJoint Purpose:Favorable Subst.

TosSB388 restore/ theFile MashantucketNo. Pequot and Mohegan Fund to its original intent of funding all towns.

[Proposed647 deletions3 aresSB388 enclosedFile inNo. brackets.

Proposed647 additionsThe following Fiscal Impact Statement and Bill Analysis are indicatedprepared byfor underline,the exceptbenefit thatof whenthe members of the entireGeneral textAssembly, solely for purposes of ainformation, billsummarization orand resolutionexplanation orand ado sectionnot ofrepresent athe billintent orof resolutionthe isGeneral new,Assembly itor iseither notchamber underlined.]thereof LCOfor No.any purpose.

1807In 3general, fiscal impacts are based upon a variety of 3informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 27 $ FY 28 $ Policy & Mgmt., Off.

GF - Cost None 99.8 million Note:

GF=General Fund Municipal Impact:

Municipalities Effect FY 27 $ FY 28 $ Various Municipalities Revenue None 99.8 million Gain Explanation The bill results in an annual revenue gain to various municipalities beginning in FY 28 as the Mashantucket Pequot and Mohegan Grants to Towns will increase by approximately $99.8 million, to a total of $152.38 million (in FY 28 and annually thereafter).

There will be a corresponding cost to the General Fund beginning in FY 28 to provide the funds necessary for this grant increase.

2 Currently, 124 towns receive such grants.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

1In FY 27, this grant is estimated to be $52.5 million.

Current law requires the amount equal to the grant total to be transferred from the General Fund to the Mashantucket Pequot and Mohegan Fund.

The funds are then distributed by the Office of Policy and Management to towns.

sSB388 / File No.

647 4 sSB388 File No.

647 OFA Bill Analysis SB 388 AN ACT CONCERNING THE MASHANTUCKET PEQUOT AND MOHEGAN FUND.

SUMMARY:

The bill makes the following changes regarding the Mashantucket Pequot and Mohegan grant.

• Maintains current funding levels through FY 27.

• Increasesthegrant totalby approximately $99.8millionfor a new total of $152.4 million beginning in FY 28.

• Prevents this grant amount from being reduced except by submission to the General Assembly by the Governor of an emergency certification.