SB 1214 — AN ACT CONCERNING A TASK FORCE TO STUDY PAYMENTS IN LIEU OF TAXES TO MUNICIPALITIES AND THE STATE SPENDING CAP.

Senate General Assembly RaisedFile Bill No.

1214701 January Session, 2023 LCOSubstitute Senate Bill No.

39831214 ReferredSenate, toMay 4, 2023 The Committee on APPROPRIATIONSAppropriations Introducedreported by:through SEN.

(APP)OSTEN ANof ACTthe CONCERNING19th FULLYDist., FUNDINGChairperson PAYMENTSof INthe LIEUCommittee OFon TAXESthe TOpart MUNICIPALITIES.of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING A TASK FORCE TO STUDY PAYMENTS IN LIEU OF TAXES TO MUNICIPALITIES AND THE STATE SPENDING CAP.

(Effective from passage) (a) There is established a task force to study (1) the state's practice of making payments in lieu of taxes to municipalities.municipalities, and (2) the state spending cap.

The task force shall examine (1)(A) the payments in lieu of taxes made by the state to municipalitiesmunicipalitiesduring duringthebienniumending theJune30,2023,(B)the biennium ending June 30, 2023, (2) the current methodology for making such payments, and(C) (3) the potential costs for the state to fully fund the program for payments in lieu of taxes.taxes, and (D) the history of the spending cap and its impact on state spending and program funding.

(3)sSB1214 One/ appointedFile byNo. the majority leader of the House of Representatives;

701 1 sSB1214 File No.

701 (3) One appointed by the majority leader of the House of Representatives;

LCO(5) No.One appointed by the minority leader of the House of Representatives;

3983 1 of 3 Raised Bill No.1214 (5) One appointed by the minority leader of the House of Representatives;

ThissSB1214 act/ shallFile takeNo. effect as follows and shall amend the following sections:

Section701 12 fromsSB1214 passageFile New section LCO No.

3983701 2This ofact 3shall Raisedtake Billeffect No.as follows and shall amend the following sections:

1214Section Statement1 offrom Purpose:passage New section APP Joint Favorable Subst.

TosSB1214 study/ theFile potentialNo. for the state to fully fund the PILOT program.

[Proposed701 deletions3 aresSB1214 enclosedFile inNo. brackets.

Proposed701 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.

3983In 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:

None Municipal Impact:

None Explanation The bill establishes a task force to study the practice of making payments in lieu of taxes to municipalities and the spending cap resulting in no fiscal impact to the state because the task force has the expertise to meet the requirements of the bill.

The Out Years State Impact:

None Municipal Impact:

None sSB1214 / File No.

701 4 sSB1214 File No.

701 OFA Bill Analysis SB 1214 AN ACT CONCERNING A TASK FORCE TO STUDY PAYMENTS IN LIEU OF TAXES TO MUNICIPALITIES AND THE STATE SPENDING CAP.

SUMMARY:

The bill establishes a 9-member task force to study the state's practice of making payments in lieu of taxes to municipalities and to study the state spending cap.

It requires the task force to report its findings and recommendations to the Appropriations Committee by January 1, 2024.

The task force terminates when it submits its report or on January 1, 2024, whichever is earlier.

EFFECTIVE DATE:

Effective upon passage.

Task Force The task force is required to examine 1) payments in lieu of taxes during the biennium ending June 30, 2023, 2) the current methodology for making such payments, 3) potential cost to fully fund the program, 4) history of the spending cap.

Under the bill, the task force includes the following members:

1.

Two appointed by the speaker of the House of Representatives.

2.