SB 858 — AN ACT CONCERNING THE MASHANTUCKET PEQUOT AND MOHEGAN FUND.

Senate General Assembly CommitteeFile Bill No.

858894 January Session, 2025 LCOSubstitute Senate Bill No.

5063858 ReferredSenate, toMay 12, 2025 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.

[During the fiscal year] (2) For the fiscal years ending June 30, 2015, [and each fiscal year thereafter] to June 30, 2026, 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 equalsSB858 to/ theFile appropriation to the Mashantucket Pequot and Mohegan Fund for Grants to Towns shall be transferred to the Mashantucket LCO No.

5063894 1 ofsSB858 3File CommitteeNo. Bill No.858 Pequot and Mohegan Fund and shall be distributed by the Office of Policy and Management, during said fiscal [year] years, in accordance withtheprovisionsofsection3-55j,asamendedby thisact.For thefiscal year ending June 30, 2027, and each fiscal year thereafter, one hundred thirty-nine million three hundred eighty thousand dollars of the funds deposited in the General Fund pursuant to subdivision (1) of this subsection or received by the state 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 transferred from the General Fund to the Mashantucket Pequot and Mohegan Fund.

894 equal to the appropriation to the Mashantucket Pequot and Mohegan Fund for Grants to Towns shall be transferred to the Mashantucket Pequot and Mohegan Fund and shall be distributed by the Office of Policy and Management, during said fiscal [year] years, in accordance withtheprovisionsofsection3-55j,asamendedby thisact.For thefiscal year ending June 30, 2028, and each fiscal year thereafter, one hundred thirty-nine million three hundred eighty thousand dollars of the funds deposited in the General Fund pursuant to subdivision (1) of this subsection or received by the state 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 transferred from the General Fund to the Mashantucket Pequot and Mohegan Fund.

andsSB858 (2)/ aFile vote of at least two-thirds of the members of each house of the LCO No.

5063894 2 ofsSB858 3File Committee Bill No.

858894 and (2) a vote of at least two-thirds of the members of each house of the General Assembly approving such reduction.

2 July 1, 2025 3-55j(i) StatementAPP ofJoint Purpose:Favorable Subst.

TosSB858 restore/ theFile MashantucketNo. Pequot and Mohegan Fund to its original intent of funding all towns.

[Proposed894 deletions3 aresSB858 enclosedFile inNo. brackets.

Proposed894 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 Co-Sponsors:for any purpose.

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

OSTEN,Whenever 19thapplicable, Dist.agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

S.B.OFA Fiscal Note State Impact:

858Agency LCOAffected No.Fund-Effect FY 26 $ FY 27 $ Policy & Mgmt., Off.

5063MP&MF 3- ofNone 352,541,796 Savings Note:

MP&MF=Mashantucket Pequot and Mohegan Fund Municipal Impact:

Municipalities Effect FY 26 $ FY 27 $ Various Municipalities Revenue None 52,541,796 Loss Ledyard;

Montville Potential Up to $1.2 Up to $1.2 Revenue million million Gain Explanation The bill maintains the current funding level of the Mashantucket Pequot and Mohegan Fund grant (MPMF) through FY 26 but does not specify a funding source in FY 27.

This will result in a revenue loss to towns in FY 27 and a corresponding savings to the Office of Policy and Management (OPM) in FY 27 associated with not paying out the grant.

The bill also requires an additional payment of $1.2 million to be paid to Ledyard and Montville ($600,000 each) beginning in FY 26 from the Mashantucket Pequot and Mohegan Grants to Towns if the state revokes taxation of non-Indian property on reservation land.

This results in a potential revenue gain to Ledyard and Montville and corresponding cost to the General Fund to provide the funds necessary 1In FY 26, this grant is estimated to be $52.5 million.

sSB858 / File No.

894 4 sSB858 File No.

894 for this grant increase.

The Out Years The bill also results in an annual revenue gain to various municipalities beginning in FY 28 associated with an increase of approximately $86.9 million, to a total of $139.38 million for the MPMF grant.

This results in a corresponding cost to the General Fund in FY 28 to provide the funds necessary for this grant increase.

Currently, 124 towns receive such grants.

2Current law requires the amount equal to the grant total to be transferred from the General Fund to the Mashantucket Pequot and Mohegan Fund (MP & MF).

The funds are then distributed by OPM from the MP & MF.

sSB858 / File No.

894 5 sSB858 File No.

894 OFA Bill Analysis SB 858 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 26, but does not specify funding in FY 27.