HB 5273 — AN ACT CONCERNING THE RECOMMENDATIONS OF THE INTERGOVERNMENTAL POLICY AND PLANNING DIVISION WITHIN THE OFFICE OF POLICY AND MANAGEMENT, AUDITS AND MUNICIPAL FINANCE.

(e) Any board of education awarded a grant for a proposal submitted pursuant to subsection (c) of this section may deposit any cost savings realized as a result of the implementation of the proposed service or initiativePublic intoAct aNo. nonlapsing account pursuant to section 10-248a.

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5273 initiative into a nonlapsing account pursuant to section 10-248a.

Subsection (a) of section 12-170d of the general statutes is sHB5273repealed /and Filethe No.following is substituted in lieu thereof (Effective July 1, 2024):

227 8 sHB5273 File No.

227 repealed and the following is substituted in lieu thereof (Effective July 1, 2024):

[, provided such application shall be made within one year from the close of the calendar year for which the grant is requested.] If the rental quarters are occupied by more than one person, it shall be assumed for the purposes of this section and sections 12-170e and 12-170f, as amended by this act, that each of such persons pays his orPublic herAct proportionateNo. share of the rental and utility expenses levied thereon and grants shall be calculated on that portion of utility and rent bills paid that are applicable to the person making application for grant under said sections.

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5273 or her proportionate share of the rental and utility expenses levied thereon and grants shall be calculated on that portion of utility and rent bills paid that are applicable to the person making application for grant under said sections.

(1) (A)Atthecloseofthecalendaryearforwhichagrantisclaimedbesixty- five years of age or over, or his or her spouse who is residing with such renter shall be sixty-five years of age or over, at the close of such year, or be fifty years of age or over and the surviving spouse of a renter who at the time of his or her death had qualified and was entitled to tax relief under this chapter, provided such spouse was domiciled with such renter at the time of his or her death, or (B) at the close of the calendar year for which a grant is claimed be under age sixty-five and eligible in accordance with applicable federal regulations, to receive permanent total disability benefits under Social Security, or if such renter has not sHB5273been /engaged Filein No.employment covered by Social Security and accordingly hasnot qualifiedfor SocialSecurity benefitsbut has become qualified for permanent total disability benefits under any federal, state orlocalgovernmentretirementordisabilityplan,includingtheRailroad Retirement Act and any government-related teacher's retirement plan, determined by the Secretary of the Office of Policy and Management to containrequirementsinrespecttoqualificationforsuchpermanenttotal disability benefits which are comparable to such requirements under Social Security;

227 9 sHB5273 File No.

227 been engaged in employment covered by Social Security and accordingly hasnot qualifiedfor SocialSecurity benefitsbut has become qualified for permanent total disability benefits under any federal, state orlocalgovernmentretirementordisabilityplan,includingtheRailroad Retirement Act and any government-related teacher's retirement plan, determined by the Secretary of the Office of Policy and Management to containrequirementsinrespecttoqualificationforsuchpermanenttotal disability benefits which are comparable to such requirements under Social Security;

(3) shall have taxable and nontaxable income, the total of which shall hereinafter be called "qualifying income", during the calendarPublic yearAct precedingNo. the filing of such renter's claim in an amount of not more than twenty thousand dollars, jointly with spouse, if married, and not more than sixteen thousand two hundred dollars if unmarried, provided such maximum amounts of qualifying income shall be subject to adjustment in accordance with subdivision (2) of subsection (a) of section 12-170e, and provided the amount of any Medicaid payments made on behalf of the renter or the spouse of the renter shall not constitute income;

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5273 calendar year preceding the filing of such renter's claim in an amount of not more than twenty thousand dollars, jointly with spouse, if married, and not more than sixteen thousand two hundred dollars if unmarried, provided such maximum amounts of qualifying income shall be subject to adjustment in accordance with subdivision (2) of subsection (a) of section 12-170e, and provided the amount of any Medicaid payments made on behalf of the renter or the spouse of the renter shall not constitute income;

Notwithstanding the provisions of subdivision (4) of this subsection, a renter who receives cash assistance from the Department of Social Services in the calendar year prior to that in which such renter sHB5273files /an Fileapplication No.for a grant may be entitled to receive such grant provided the amount of the cash assistance received shall be deducted from the amount of such grant and the difference between the amount of the cash assistance and the amount of the grant is equal to or greater than ten dollars.

227 10 sHB5273 File No.

227 files an application for a grant may be entitled to receive such grant provided the amount of the cash assistance received shall be deducted from the amount of such grant and the difference between the amount of the cash assistance and the amount of the grant is equal to or greater than ten dollars.

Sec.Public Act No.

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5273 Sec.

The secretary may grant such extension in the case of extenuating circumstance due to illness or incapacitation as evidenced sHB5273byacertificatesignedby /aphysician,physicianassistantoranadvanced Filepractice No.registered nurse to that extent, or if the secretary determines there is good cause for doing so.] A renter making such application shall present to such assessor or agent, in substantiation of the renter's application, a copy of the renter's federal income tax return, and if not required to file a federal income tax return, such other evidence of qualifying income, receipts for money received, or cancelled checks, or copies thereof, and any other evidence the assessor or such agent may require.

227When 11the sHB5273assessor Fileor agent is satisfied that the applying renter is entitled to a grant, such assessor or agent shall issue a certificate of Public Act No.

22724-132 byacertificatesignedbyaphysician,physicianassistantoranadvanced12 practice registered nurse to that extent, or if the secretary determines there is good cause for doing so.] A renter making such application shall present to such assessor or agent, in substantiation of the24 renter'sSubstitute application,House aBill copyNo. of the renter's federal income tax return, and if not required to file a federal income tax return, such other evidence of qualifying income, receipts for money received, or cancelled checks, or copies thereof, and any other evidence the assessor or such agent may require.

When5273 the assessor or agent is satisfied that the applying renter is entitled to a grant, such assessor or agent shall issue a certificate of grant in such form as the secretary may prescribe and supply showing the amount of the grant due.

Such list and any supplements thereto shall be approved for payment by the secretary and shall be forwarded by the secretary to the Comptroller, along with a notice of any per cent reduction in claim amounts,andtheComptrollershall,notlaterthanfifteendaysfollowing receipt of such list, draw an order on the Treasurer in favor of each person on such list and on supplements to such list in the amount of such person's claim, minus any per cent reduction noticed by the sHB5273secretary /pursuant Fileto No.this subsection, and the Treasurer shall pay such amount to such person, not later than fifteen days following receipt of such order.

227(d) 12If sHB5273the FileSecretary of the Office of Policy and Management determines a renter was overpaid for such grant, the amount of any subsequent grant paid to the renter under section 12-170d, as amended by this act, after such determination shall be reduced by the amount of Public Act No.

22724-132 secretary13 pursuantof to24 thisSubstitute subsection,House andBill theNo. Treasurer shall pay such amount to such person, not later than fifteen days following receipt of such order.

(d)5273 If the Secretary of the Office of Policy and Management determines a renter was overpaid for such grant, the amount of any subsequent grant paid to the renter under section 12-170d, as amended by this act, after such determination shall be reduced by the amount of overpayment until the overpayment has been recouped.

sHB5273Sec. / File No.

22711. 13 sHB5273 File No.

227Section Sec.11.Sections8-159aand12-19fofthegeneralstatutesarerepealed.4-231 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024):

(Effective(a) July(1) 1,Each 2024)nonstate Thisentity act[which] shallthat takeexpends effecta astotal followsamount andof shallstate amendfinancial theassistance followingequal sections:to or in excess of [three] five hundred Public Act No.

Section24-132 114 fromof passage24 12-94aSubstitute Sec.House Bill No.

25273 fromthousand passagedollars 12-9in Sec.any fiscal year of such nonstate entity beginning on or after July 1, [2009] 2024, shall have either a single audit or a program- specific audit made for such fiscal year, in accordance with the provisions of subdivision (2) or (3) of this subsection, as applicable, and the requirements of regulations adopted pursuant to section 4-236.

3(2) fromIf passagethe 7-325(d)total Sec.amount of state financial assistance expended in any such fiscal year is for a single program, such nonstate entity may elect to have a program-specific audit made in lieu of a single audit, provided [a] no grant agreement or [a] statutory or regulatory provision governing the program of state financial assistance [does not require] requires a financial statement audit of such nonstate entity.

4(3) fromIf passagethe Newtotal sectionamount Sec.of state financial assistance expended in any such fiscal year is for more than one program, such entity shall have a single audit made for such fiscal year.

5(b) Notwithstanding any provision of the general statutes or any regulation adopted under any provision of the general statutes, each nonstate entity that expends total state financial assistance of less than [three] five hundred thousand dollars in any fiscal year of such nonstate entity beginning on or after July 1, [2009] 2024, andshall 12-62c(a)(1)be applicableexempt with respect to assessmentsuch yearsfiscal commencingyear onfrom complying with any statutory or afterregulatory Octoberrequirements 1,concerning 2024financial Sec.or financial and compliance audits that would otherwise [be applicable] apply to such nonstate entity.

6(c) JulyNo 1,provision 2024of 8-23(a)this Sec.section shall be deemed to exempt a nonstate entity from complying with any statutory or regulatory provision requiring [the] such nonstate entity to (1) maintain records concerning state financial assistance, or (2) provide access to such records to a state agency.

7 July 1, 2024 4-124s Sec.

812. July 1, 2024 12-170d(a) Sec.

9Section July4-232 1,of 2024the 12-170fgeneral Sec.statutes is repealed and the Public Act No.

1024-132 July15 1,of 202424 19a-200(c)Substitute Sec.House Bill No.

115273 Julyfollowing 1,is 2024substituted Repealerin sectionlieu Statementthereof of(Effective LegislativeJuly Commissioners:1, 2024):

In(a) sectionEach 7(f)(2),nonstate "local"entity was[which] changedthat is required to "municipal"be foraudited consistency.pursuant to sections 4-230 to 4-236, inclusive, shall designate an independent auditor to conduct such audit.

PDNot Jointlater Favorablethan Subst.thirty days before the end of the fiscal period for which the audit is required, the nonstate entity shall file the name of such auditor with the cognizant agency designated pursuant to section 4-235.

sHB5273If /a Filenonstate No.entity fails to make such filing, the cognizant agency may designate an independent auditor to conduct the audit.

227A 14nonstate sHB5273entity Fileshall No.be responsible for paying the costs of any audit conducted by an independent auditor designated by a cognizant agency.

227(b) The(1) followingUpon Fiscalthe Impactcompletion Statementof and[the] Billan Analysisaudit are[,] preparedpursuant forto thesections benefit4-230 ofto the4-236, membersinclusive, of[the] theeach Generalnonstate Assembly,entity solelyshall forfile purposesa ofcopy information,ofthe summarizationaudit andreport explanationwith andthe docognizant notagency representdesignated thepursuant intentto ofsection the4-235 Generaland, Assemblyif orapplicable, eitherstate chambergrantor thereofagencies forand anypass-through purpose.entities.

InOnce general,filed, fiscalsuch impactsreport areshall basedbe uponmade aavailable varietyby ofthe informationalnonstate sources,entity includingfor thepublic analyst’sinspection. professional knowledge.

WheneverCopies applicable,of agencythe datareport isshall consultedbe asfiled partnot oflater thethan analysis,thirty howeverdays finalafter productscompletion doof such report, if possible, but not necessarilylater reflectthan ansix assessmentmonths fromafter anythe specificend department.of the audit period.

OFAThe Fiscalcognizant Noteagency Statemay Impact:grant an extension of not more than thirty days, if the auditor conducting the audit and the chief executive officer of the nonstate entity jointly submit a request in writing to the cognizant agency that includes the reasons for such extension and an estimate of the time needed for completion of such audit, [at least] not less than thirty days prior to the end of such six-month period.

AgencyIf Affectedthe Fund-Effectreason FYfor 25the $extension FYrelates 26to $deficiencies Policyin &the Mgmt.,accounting Off.system of the nonstate entity, the request shall be accompanied by a corrective action plan.

GFThe -auditor Potentialor Upchief toexecutive 1,400officer Upshall topromptly 1,400provide Revenueany Gainadditional Policyinformation &the Mgmt.,cognizant Off.agency may require.

GFBefore -determining Potentialwhether Minimalto Minimalgrant Savingsan Note:extension request, the cognizant agency may require the auditor and officials of the nonstate entity to meet with Public Act No.

GF=General24-132 Fund16 Municipalof Impact:24 Substitute House Bill No.

Municipalities5273 Effectrepresentatives FYof 25 $ FY 26 $ Various Municipalities Potential Minimal Minimal Revenue Gain Special Districts Potential Minimal Minimal Cost Local and Regional School Potential See Below See Below Districts Revenue Gain Explanation The bill makes various changes to municipalities and programs administered by the Officecognizant ofagency. Policy and Management (OPM) described below.

TheNo billextension requiresgranted specialpursuant service districts to submitthis annualsubdivision millshall rateextend andbeyond taxtwelve levymonths informationafter tothe OPMlast andday subjectsof themthe tofiscal ayear $100 fine for failing to meetwhich thissuch requirement.audit applies.

This(2)Anynonstateentity,or resultstheauditorofsuch innonstateentity, a[which] potentialthat minimalfailsto costhave to[the]anaudit report filedonitsbehalf [within]not later thansixmonthsaftertheendofthefiscalyearorwithinthetimegranted by the specialcognizant serviceagency, districtsmay be assessed [,] by the Secretary of the Office of Policy and correspondingManagement revenue[,] gaina civil penalty of not less than one thousand dollars [but not more than] and not to OPM.exceed ten thousand dollars.

sHB5273In /addition Fileto, No.or in lieu of such penalty, the cognizant agency may assign an auditor to perform [the] an audit of such nonstate entity.

227In 15such sHB5273case, File[the] No.such nonstate entity shall be responsible for paying the costs related to [the] such audit.

227The Assecretary may, upon receipt of 2021,a written request from an official of the nonstate entity or its auditor, waive all such penalties if the secretary determines that there were[appears 14to specialbe] serviceis districts.reasonable cause for the entity not having completed or provided [the] a required audit report.

IfSec. each of these failed to report the information to OPM, it would result in a revenue gain of $1,400 to OPM beginning in FY 25.

The13. bill eliminates a requirement for municipalities to submit a letter with certain funding applications if the municipality fails to update its plan of conservation and development.

BeginningSection in7-576a FYof 25the onlygeneral applicationsstatutes thatis arerepealed forand discretionarythe fundingfollowing ofis greatersubstituted thanin $25,000lieu mustthereof include(Effective thisJuly letter.1, 2024):

Failure[(a) Any] The Municipal Finance Advisory Commission may designate any municipality referred to submitsaid thiscommission letterpursuant resultsto insubsection disqualification(d) fromof discretionarysection funding.7-395 [to the Municipal Finance Advisory Commission shall be designated] as a tier I municipality.

ThisThe resultschief inelected aofficial potentialof revenueany gainmunicipality that does not meet the conditions identified under subsection (d) of section 7-395 may apply to municipalitiesthe beginningMunicipal Finance Advisory Commission for designation as a tier I municipality, provided such official (1) expects that such municipality will meet one or more such conditions in FYthe 25following twenty-four month period, and (2) submits a report to the extentMunicipal lessFinance municipalitiesAdvisory areCommission, disqualifiedin froma discretionaryform funding.and manner prescribed by the commission, that confirms that such condition or conditions will be met Public Act No.

There24-132 is17 alsoof a24 potentialSubstitute grandHouse listBill shiftNo. in out years.

This5273 is associated with a reduction from 25% to 20% in thesuch minimumperiod. revaluation phase- in for revaluation increases.

ThisEach alignsdecision withto currentdesignate lawa thatmunicipality allowsas municipalitiesa tier I municipality pursuant to phase-inthis thesection revaluationshall overbe fivebased years.on an evaluation of such municipality's financial condition and financial practices.

TheIn billaddition alsoto expandsthe eligiblerequirements purposesof forsection which7-394b, OPMeach canmunicipality awarddesignated regionalas performancea incentivetier programI (RPIP)municipality grants.shall prepare and present a five-year financial plan to the Municipal Finance Advisory Commission for its review and approval.

This[(b) resultsThe insecretary ashall potentialrefer revenueany gainmunicipality todesignated Regionalas Educationa Servicetier CentersI (RECS)municipality andto Councilsthe ofMunicipal GovernmentFinance beginningAdvisory inCommission, FYpursuant 25 to the extentprovisions additionalof grantssection are7-395. awarded.

TheIn billaddition shortensto the applicationrequirements periodof forsection the7-394b, Renterssuch Rebatemunicipality programshall byprepare oneand daypresent anda eliminatesfive-year thefinancial extensionplan periodto forthe rentersMunicipal possessingFinance aAdvisory physician'sCommission orfor advancedits practicereview registeredand nurse'sapproval.] certificate.Sec.

This14. may result in potential savings for the Office of Policy and Management beginning in FY 25 as they could see less applicants due to the deadline adjustments.

TheSection bill7-576f makesof variousthe othergeneral changesstatutes includingis eliminatingrepealed obsoleteand grantthe programsfollowing thatis dosubstituted notin resultlieu inthereof a(Effective fiscalJuly impact.1, 2024):

1These(a) special(1) serviceA districtsmunicipality aredesignated locatedas a tier I municipality in accordance with section 7-576a, as amended by this act, shall retain such designation, notwithstanding any positive changes in the followingfactors municipalities:leading to its current designation, until the Municipal Finance Advisory Commission, by unanimous vote, terminates such designation based on an evaluation of such municipality's financial condition and financial practices.

Bridgeport,[(a)] Danbury,(2) Hartford,A Manchester,municipality Middletown,designated Newas Britain,a New[tier Haven,I Newmunicipality London,in Stamford,accordance andwith Westsection Hartford.7-576a,] tier II municipality in accordance with section 7-576b, tier III municipality in accordance with section 7-576c, or tier IV municipality in accordance with section 7-576e, as amended by this act, shall retain such designation, notwithstanding any positive changes in the factors leading to its current designation, until, in the fiscal years following such designation, [(1)] the Municipal Accountability Review Board determines that (A) there have been no Public Act No.

sHB527324-132 /18 Fileof 24 Substitute House Bill No.

2275273 16audited sHB5273operating Filedeficits No.in the general fund of the municipality for two consecutive fiscal years, [(2)] (B) the [municipality's] municipality has a long-term bond rating from one or more bond rating agencies that is investment grade or higher and such bond rating has either improved or remained unchanged since its most current designation, [(3)] (C) the municipality has presented and the [commission or] board has approved a financial plan that projects a positive fund balance for the three succeeding consecutive fiscalyearscoveredby suchfinancialplan, [where] provided (i) each fiscal year of such plan is based upon recurring revenue and expenses, (ii) a positive fund balance of at least five per cent is projected in the third such fiscal year, [and (4)] and (iii) such plan does not include funding received pursuant to section 7-576i, as amended by this act, or 7-576j, (D) the municipality's audits for such consecutive fiscal years have been completed and [contain no general fund deficit] the General Fund reports an audited fund balance of at least five per cent, and (E) there is no evidence that the municipality has engaged in unsound or irregular financial practices in relation to commonly accepted standards in municipal finance.

227 The Outboard Yearsmay Theundertake annualizedthe ongoingdetermination fiscaldescribed impactin identifiedthis abovesubdivision wouldat continueits intodiscretion theor futureupon subjectthe torequest inflation,of fines,a andmunicipality. grants awarded.

sHB5273(b) /[Notwithstanding Filesubsection (a) of this section, the Municipal Finance Advisory Commission may, by unanimous vote, end the designation of a municipality designated as a tier I municipality, based on an evaluation of such municipality's financial condition.] (1) If the Municipal Accountability Review Board determines that a municipality has satisfied the criteria listed in subdivision (2) of subsection (a) of this section, the secretary shall, at the secretary's discretion and in consideration of the fiscal condition of the municipality and best interests of the state, terminate such municipality's tier designation or redesignate such municipality to a lower tier, provided no such municipalityshallberedesignatedasatierImunicipality.Notlaterthan sixty days after the board makes such determination, the secretary shall Public Act No.

22724-132 1719 sHB5273of File24 Substitute House Bill No.

2275273 OLRnotify Billthe Analysismunicipality sHBof 5273the ANsecretary's ACTdecision CONCERNINGto THEterminate RECOMMENDATIONSsuch OFmunicipality's THEtier INTERGOVERNMENTALdesignation POLICYor ANDredesignate PLANNINGsuch DIVISIONmunicipality WITHINto THEa OFFICElower OFtier. POLICY AND MANAGEMENT.

SUMMARYA Thismunicipality bill:shall retain its existing tier designation until such notice is received.

1.If the secretary fails to provide such notice prior to the expiration of said sixty-day period, the municipality's tier designation shall be deemed terminated on the sixty-first day following such determination.

makes(2) variousA changesmunicipality redesignated to thea regionallower performancetier incentivepursuant programto (RPIP),subdivision including(1) itsof applicationthis subsection shall (A) meet the requirements of this chapter pertaining to such lower tier, and selection(B) criterianot (§request 7);a determination from the Municipal Accountability Review Board pursuant to subdivision (2) of subsection (a) of this section during the one-year period following such redesignation.

2.Sec.

changes15. the rental rebate program’s deadlines for filing and processing applications and eliminates the ability to apply to the Office of Policy and Management (OPM) for an extension (§§ 8 & 9);

3.Section 7-576i of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024):

reduces,(a) fromAny 25%designated totier 20%,II, theIII, minimumor revaluationIV phase-inmunicipality factorshall forbe municipalitieseligible opting to phasereceive infunding afrom portionthe ofMunicipal aRestructuring revaluationFund, increase, which allowsfund themshall tobe phase-innonlapsing. up to 80%, rather than 75%, over a maximum of five assessment years;

A designated tier II, III or IV municipality seeking such funds shall submit, for approval by the Secretary of the Office of Policy and 4.Management, a plan detailing its overall restructuring plan, including local actions to be taken and its proposed use of such funds.

limitsNotwithstanding thesection discretionary10-262j, statea fundingmunicipality applicationsmay, toas whichpart municipalitiesof mustsuch attachplan aand letterin ifconsultation theywith haveits notlocal updatedboard theirof localeducation, planssubmit ofa conservationproposed andreduction developmentin (C&D)the (§minimum 6).budget requirement related to its education budget.

The billsecretary alsoshall makesconsult with the followingCommissioner changesof toEducation conformin toapproving currentor OPMrejecting practice:such proposed reduction.

1.The secretary shall consult with the [municipal accountability review board] Municipal Accountability Review Board in making distribution decisions and attaching appropriate conditions thereto, including the timing of any such distributions and whether such funds shall be distributed in the form of a municipal restructuring fund loan subject to Public Act No.

shifts,24-132 from20 municipalof tax24 collectorsSubstitute toHouse assessors,Bill the requirement to certify to OPM the revenue loss associated with the property tax exemption for totally disabled homeowners (§ 1) and sHB5273 / File No.

2275273 18repayment sHB5273by Filethe No.municipality.

227The 2.distribution of such assistance funds shall be based on the relative fiscal needs of the requesting municipalities.

requiresThe thesecretary annualmay statementsapprove municipalall, andnone specialor taxinga districtportion taxof collectors provide to OPM on their mill rate and tax levy to be based on data for the ensuing,funds ratherrequested thanby preceding,a fiscalmunicipality. year, beginning with the FY 25 statements (§§ 2 & 3).

ItIn alsoattaching extendsconditions thisto annualsuch millfunding, ratethe andsecretary taxshall levyconsider reportingthe requirementimpact toof municipalsuch specialconditions serviceson districts and subjects them to the sameability $100of finea formunicipality failing to filemeet alegal true and correctother statementobligations. that applies to special taxing districts under existing law (§ 4).

Lastly,The theboard billshall eliminatesmonitor anand obsoletereport (1) state grant program designed to providethe formulasecretary grantson tothe municipalitiesuse toof addresssuch urbanfunds problems and (2)adherence provisionto on allocating payment in lieu of taxes grants for the Torringtonconditions courthouseattached (§§thereto. 10 & 11).

EFFECTIVEThe DATE:secretary shall develop and issue guidance on the (1) administration of the [municipal restructuring fund] Municipal Restructuring Fund, (2) criteria for participation by municipalities and requirements for plan submission, and (3) prioritization for the awarding of assistance funds pursuant to thissection.Any municipalitythatreceivesfundingfromthe [municipal restructuring fund] Municipal Restructuring Fund, in addition to the other responsibilities and authority given to the board with respect to designated tiers II, III and IV municipalities, shall be required to receive board approval of its annual budgets.

July(b) 1,The 2024,secretary exceptmay thatdistribute thefunds provisionsfrom onthe annualMunicipal millRestructuring rateFund and tax levy reporting to OPMa arethird effectiveparty uponon passagebehalf andof thea revaluationdesignated phase-intier provisionsII, aretier applicableIII to assessment years beginning on or aftertier OctoberIV 1,municipality. 2024.

§Funds 7received —by RPIPa Eligiblemunicipality Purposespursuant Theto billthis expandssection the eligible purposes for which OPM may awardbe RPIPused, grantsin part, to includepay servicesan thatarbitrator twoselected orpursuant moreto participatingclause municipalities(v) or boards of educationsubdivision can(3) provideof onsubsection a(a) regional and ongoing basis, rather than services that one or more of thesesection entities7-576e, currentlyas provideamended butby notthis onact. a regional basis.

By[(b)] law,(c) eligibilityNotwithstanding forthe RPIPprovisions grantsof issubsection limited(a) of this section, in making distributions from the Municipal Restructuring Fund, the board shall give immediate consideration to councilsany ofmunicipality governmentsthat (COG)shall anddefault regionalon educationaldebt servicesobligations centersby (RESC).January 1, 2018, without an immediate distribution of such funds.

AsSec. under existing law, OPM may also award the grants for (1) redistributing specified state grants to municipalities according to regional priorities, (2) regional revenue sharing among municipalities that have entered certain agreements to do so, and (3) qualifying regional special education initiatives.

Application16. Requirements By law, applicants must include certain information about the sHB5273 / File No.

227Subdivision 19(2) sHB5273of Filesubsection No.(a) of section 7-576e of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024):

227Public proposalAct andNo. its projected benefits and implementation plan as part of their RPIP applications.

The24-132 bill21 makesof the24 followingSubstitute changesHouse toBill thisNo. required information:

1.5273 (2) The Municipal Accountability Review Board may designate a tier III municipality as a tier IV municipality basedonafinding by theboard that the fiscal condition of such municipality warrants such a designation based upon an evaluation of the following criteria:

requires(A) applicantsThe tobalance include an estimate of the proposal’s anticipated savings or costs that will be avoided during the grant award period and in future fiscal years, rather than the amountmunicipal byreserve whichfund; participating municipalities will reduce their mill rates as a result of these savings;

2.(B) the short and long-term liabilities of the municipality, including, but not limited to, the municipality's ability to meet minimum funding levels required by law, contract or court order;

requires(C) that the implementationinitial planbudgeted revenue for the proposedmunicipality regionalfor servicethe orpast initiativefive addressfiscal anyyears potentialas growthcompared orto reductionthe inactual participationrevenue ratesreceived duringby the grantmunicipality awardfor period;such fiscal years;

and(D) 3.budget projections for the following five fiscal years;

specifiesthatitincludeacopyofanacknowledgment,ratherthan(E) anthe acknowledgmenteconomic itself,outlook fromfor any employer organization (e.g., labor union) potentially impacted by the proposalmunicipality; that it was informed and consulted about it.

By[and] law,(F) the proposalmunicipality's mustaccess alsoto includecapital amarkets; resolution endorsing the proposalfromtheCOG’sorRESC’sgoverningbody.Undercurrentlaw, this resolution must state that the entity will fund at least 25% of the proposal’s first year costs and all of its costs by the fourth year.

Theand bill(G) insteadevidence requiresof thatunsound theor resolutionirregular affirmfinancial thatpractices thein entityrelation willto fundcommonly anaccepted increasingstandards proportionin ofmunicipal thefinance proposal’sthat costs during the grantboard awardbelieves period,may includingmaterially 50%affect of the proposal’smunicipality's costsfinancial bycondition. the end of the period and all of its costs afterwards.

SelectionFor Criteriathe Currentpurpose lawof requiresdetermining thewhether OPMto secretarymake toa awardfinding grantspursuant to proposalsthis thatsubdivision, hethe determinesmembership bestof meetthe specifiedboard criteria,shall includingadditionally thatinclude the projectchief demonstrate,elected comparedofficial toof existingsuch servicemunicipality, delivery,the increasedtreasurer capacityof andsuch efficiency,municipality and a costmember benefitof tothe members,legislative increasedbody costof savings,such andmunicipality, aas diminishedselected needby forsuch statebody. funding.

TheIn billconducting insteada requiresvote thaton theany secretaryawardgrantstoproposalsthatbestreducemunicipalandstatesuch costs,determination, enhance service delivery capacity, or improve the leveltreasurer of servicesuch providedmunicipality comparedshall tobe havinga itnon-voting deliveredmember atof the localboard. level.

sHB5273The /board Fileshall No.submit such finding and recommended designation to the secretary, who shall provide for a thirty-day notice and public comment period related to such finding and recommendation.

227Following 20the sHB5273public Filenotice No.and comment period, the secretary shall forward the board's finding and recommended designationandareportregardingthecommentsreceivedinthisregard to the Governor.

227Following It also makes a conforming change by eliminating the criteriareceipt thatof thesuch proposaldocumentation includefrom a statement that the applicantsecretary, will fund at least 25% of the proposal’sGovernor firstmay yearapprove costsor anddisapprove all its costs by the fourthboard's year.recommended designation.

RequiredSec. Report to the Legislature The bill requires the OPM secretary, in his annual report to the legislatureonRPIP,todescribethelocalorstatecostsavings,ratherthan property tax reductions, achieved by the program.

§§17. 8 & 9 — RENTAL REBATE PROGRAM The bill advances the application deadline for the rental rebate program by one day, from October 1 to September 30, and eliminates the ability to apply to OPM for an extension by November 15 of the claim year.

UnderSection current7-393 law,of the OPMgeneral secretarystatutes canis grantrepealed anand extension (1) for good cause or (2) if the applicantfollowing providesis asubstituted certificatein (signedlieu bythereof a(Effective qualifyingJuly medical1, professional)2024): that he or she was ill or incapacitated because of extenuating circumstances.

ByPublic law,Act unchangedNo. by the bill, local officials must forward rental rebate applications to the OPM secretary by the end of the month following the month in which the renter applied.

By24-132 advancing22 theof application24 deadlineSubstitute toHouse SeptemberBill 30,No. the bill also pushes up the deadline for towns to forward applications to OPM from November 30 to October 31.

The5273 billUpon correspondinglythe pushescompletion back,of froman Octoberaudit, 15the toindependent Novemberauditor 15,shall file certified copies of the dateaudit byreport whichwith OPM(1) mustthe makeappointing authority, (2) in the case of a listtown, city or borough, with the clerk of approvedsuch applicationstown, city or borough, (3) in the case of a regional school district, with the clerks of the towns, cities or boroughs in which such regional school district is located and forwardwith themthe toboard of education, (4) in the comptrollercase forof payment.an audited agency, with the clerks of the towns, cities or boroughs in which such audited agency is located, and (5) in each case, with the Secretary of the Office of Policy and Management.

BySuch law,copies unchangedshall bybe filed within six months from the bill,end of the comptrollerfiscal mustyear drawof the municipality, regional school district or audited agency, but the secretary may grant an orderextension onof not more than thirty days, provided the stateauditor treasurermaking withinthe 15audit and the chief executive officer of the municipality, regional school district or audited agency shall jointly submit a request in writing to the secretary stating the reasons for such extension at least thirty days afterprior receivingto the listend of approvedsuch paymentssix-month fromperiod. OPM.

Lastly,If the billreason makesfor athe conformingextension changerelates byto eliminatingdeficiencies ain requirementthe thataccounting renterssystem applyof for the rebatemunicipality, withinregional aschool yeardistrict afteror theyearaudited foragency whichthe theyrequest aremust requestingbe theaccompanied grant.by a corrective action plan.

§The 5secretary —may, REVALUATIONafter PHASE-INSa Connecticuthearing lawwith allowsthe municipalitiesauditor toand phase-inofficials post-revaluationof sHB5273the /municipality, Fileregional No.school district or audited agency, grant an additional extension if conditions warrant, provided such extension shall not exceed six months from the date the auditor was required to file such copies.

227Said 21auditor sHB5273shall Filepreserve No.all of his or her working papers employed in the preparation of any such audit until the expiration of [three] five years from the date of filing a certified copy of the audit with the secretary and such working papers shall be available, upon written request and upon reasonable notice from the secretary, during such time for inspection by the secretary or his authorized representative, at the office or place of business of the auditor, during usual business hours.

227Any assessmentincreasesinpropertyvaluesoveraperiodofmunicipality, uptofiveyears.regional school district, audited agency or auditor who fails to have the audit report filed on its behalf within six months from theendofthefiscalyearorwithinthetimegrantedbythesecretaryshall Public Act No.

When24-132 a23 revaluation is phased-in, the real property assessment represents less than 70% of the24 property’sSubstitute revaluedHouse fairBill marketNo. value for each year of a phase-in term.

Phase-ins5273 givebe taxpayersreferred timeby the secretary to adjustthe Municipal Finance Advisory Commission established pursuant to assessmentsection increases7-394b, afterassessed a revaluation.civil penalty of not less than one thousand dollars but not more than [ten] fifty thousand dollars or both, except that the secretary may waive such penalties if, in the secretary's opinion, there appears to be reasonable cause for not having completed or provided the required audit report, provided an official of the municipality, regional school district or audited agency or theauditor submitsa writtenrequest for such waiver.

ExistingThe lawsecretary givesmay municipalitiesimpose fourany optionscivil forpenalty phasing-inassessed revaluations,pursuant includingto onethis optionsectionagainst thata phases-inmunicipality,regionalschooldistrict justor aauditedagency portionin the form of thea increasereduction in valuesthe amount of one or more grants awarded by the overallsecretary, rateincluding, atbut whichnot theylimited increased.to, any grant payable pursuant to section 12-18b.

UnderSec.18.Sections8-159a currentand12-19fofthegeneralstatutesarerepealed. law, if a municipality chooses this option, it may phase-in no more than 75% of either increase.

The(Effective amountJuly or1, portion2024) theApproved townJune phases-in5, is2024 calledPublic theAct “phase-inNo. factor,” and the town must uniformly apply it to all types of property.

The24-132 bill24 reduces the minimum phase-in factor from 25% to 20%, which in turn allows municipalities to phase-in up to 80%, rather than 75%, of either24 increase over a maximum of five assessment years.

In practice, OPM applies this factor to all revaluation phase-ins, regardless of whether they phase in all or part of the revaluation increase.

Based on this current practice, municipalities may only phase- in revaluation increases for up to four years with a minimum phase-in factor of 25% per year.

So, reducing the phase-in factor from 25% to 20% allows towns to phase-in a revaluation for up to five years.

The law, however, already allows towns to phase-in revaluation increases for up to five years.

§ 6 — DISCRETIONARY STATE FUNDING APPLICATIONS Under current law, any municipality that fails to update its plan of C&D every 10 years must (1) submit a letter to specified state officials explaining why it was not amended and (2) include a copy of this letter in each application for discretionary funding it submits to any state agency.

The bill limits the funding applications for which municipalities must attach this letter to those that exceed $25,000.

By law, unchanged by the bill, municipalities that fail to update their plans of C&D or submit the letter described above are disqualified from sHB5273 / File No.

227 22 sHB5273 File No.

227 receivingdiscretionarystatefundsunlesstheOPMsecretarywaivesthis provision.

COMMITTEE ACTION Planning and Development Committee Joint Favorable Substitute Yea 19 Nay 2 (03/15/2024) sHB5273 / File No.

227 23