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General Assembly Raised Bill No. 873
January Session, 2021
LCO No. 3265
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT MITIGATING ADVERSE TAX CONSEQUENC ES RESULTING
FROM EMPLOYEES WORKI NG REMOTELY DURING COVI D-19, AND
CONCERNING THE REMOV AL OF LIENS ON THE PROPERTY OF
PUBLIC ASSISTANCE BE NEFICIARIES AND A THREE-TIERED
GRANTS IN LIEU OF TAXES PROGRAM.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (Effective from passage) (a) As used in this section, 1
"convenience of the employer rule" means a law or rule that is 2
substantially similar to that set forth in section 12-711 of the general 3
statutes, whether or not reciprocal, and "COVID-19" means the 4
respiratory disease designated by the World Health Organization on 5
February 11, 2020, as coronavirus 19, and any related mutation thereof 6
recognized by said organization as a communicable respiratory disease. 7
(b) Notwithstanding any provision of title 12 of the general statutes, 8
for the taxable year commencing January 1, 2020: 9
(1) Any resident who paid income tax to any other state that uses a 10
convenience of the employer rule shall be allowed a credit against such 11 Raised Bill No. 873
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resident's Connecticut income tax, for the tax paid to such other state on 12
income earned by such resident while working remotely from this state 13
for said taxable year, including while obligated by necessity to work 14
remotely from this state; 15
(2) Any resident who paid income tax to any other state that has 16
enacted a law or rule requiring a nonresident employee to pay 17
nonresident income tax to such other state on income earned while such 18
nonresident employee was working remotely from this state due to 19
COVID-19 if, immediately prior to March 11, 2020, such nonresident 20
employee was performing such work within such other state, shall be 21
allowed a credit against such resident's Connecticut income tax, for the 22
tax paid to such other state on income earned by such resident while 23
working remotely from this state for said taxable year; and 24
(3) The Department of Revenue Services shall not consider, in 25
determining whether an employer has nexus with this state for 26
purposes of the imposition of any Connecticut tax, the activities of an 27
employee who worked remotely from this state during said taxable year 28
solely due to COVID-19. 29
Sec. 2. Section 4a-13 of the general statutes is repealed and the 30
following is substituted in lieu thereof (Effective July 1, 2021): 31
For purposes of this section and section 4a-16, as amended by this act, 32
"cash assistance" means payments made to a beneficiary of the aid to 33
families with dependent children program, the state-administered 34
general assistance program, the state supplement program or the 35
temporary family assistance program. The Commissioner of 36
Administrative Services may accept mortgage notes and mortgage 37
deeds in payment of claims due for [welfare assistance or] (1) 38
institutional care [,] in state humane institutions, as defined in section 39
17b-222, or correctional institutions administered by the Commissioner 40
of Correction, and (2) cash assistance and medical assistance, provided 41
that no such claims shall be due and payable from mortgage notes and 42
mortgage deeds valued at two hundred fifty thousand dollars or less 43 Raised Bill No. 873
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unless required under federal law or the provisions of section 18-85c. 44
The commissioner may accept such mortgage notes and mortgage deeds 45
on such terms and conditions as the commissioner deems proper and 46
reasonable, and such encumbrances may be foreclosed in an action 47
brought in a court of competent jurisdiction by the commissioner on 48
behalf of the state. Any such encumbrance shall be released by the 49
commissioner upon payment of the amount by it secured. 50
Sec. 3. Section 4a-16 of the general statutes is repealed and the 51
following is substituted in lieu thereof (Effective July 1, 2021): 52
When any person supported or cared for by the state (1) under a 53
program of [public] cash or medical assistance, [or] (2) in an institution 54
maintained by the Department of Developmental Services or 55
Department of Mental Health and Addiction Services, [or] (3) when an 56
inmate of the Department of Correction, or [when any] (4) as a child 57
committed to the Commissioner of Social Services or Commissioner of 58
Children and Families dies, leaving only personal estate, including 59
personal assets owing and due the estate after death, not exceeding the 60
aggregate value, as described in section 45a-273, as amended by this act, 61
the Commissioner of Administrative Services or the commissioner's 62
authorized representative shall [, upon filing] file with the probate court 63
having jurisdiction of such estate a certificate that the total estate is 64
under the aggregate value, as described in section 45a-273, as amended 65
by this act, and the claim of the state for the cost of any care or support, 66
required to be recovered under federal law or the provisions of 18-85c, 67
together with the expense of last illness not exceeding three hundred 68
seventy-five dollars and funeral and burial expenses in accordance with 69
[section] sections 17b-84 and 17b-131, equals or exceeds the amount of 70
such estate. [,] The commissioner shall be issued a certificate by said 71
court that the commissioner is the legal representative of such estate 72
only for the following purpose. The commissioner shall have authority 73
to claim such estate, the commissioner's receipt for the same to be a valid 74
discharge of the liability of any person turning over the same, and to 75
settle the same by payment of the expense of last illness not exceeding 76
three hundred seventy-five dollars, expense of funeral and burial in 77 Raised Bill No. 873
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accordance with [section] sections 17b-84 and 17b-131 and the 78
remainder as partial or full reimbursement of the claim of the state only 79
for amounts due under the provisions of section 18-85c or federal law 80
for (A) care [or assistance] rendered to the decedent as described in 81
subdivisions (2) to (4), inclusive, of this section, or (B) cash or medical 82
assistance the state is required to recover under federal law. The 83
commissioner shall file with said probate court a statement of the 84
settlement of such estate as herein provided. 85
Sec. 4. Subsection (b) of section 17b-77 of the general statutes is 86
repealed and the following is substituted in lieu thereof (Effective July 1, 87
2021): 88
(b) The Commissioner of Social Services shall notify each applicant 89
for aid under the state supplement program, medical assistance 90
program, temporary family assistance program and state-administered 91
general assistance program of the provisions of sections 17b-93 to 17b-92
97, inclusive, as amended by this act, in general terms, at the time of 93
application for such aid. The commissioner shall notify each person who 94
may be liable for repayment of such aid, if known, of the provisions of 95
sections 17b-93 to 17b-97, inclusive, as amended by this act, in general 96
terms, not later than thirty days after the applicant for such aid is 97
determined to be eligible for such aid or, if not known at the time the 98
applicant is determined to be eligible for such aid, [the department shall 99
give such notice] not later than thirty days after the date on which the 100
commissioner identifies such person as one who may be liable for 101
repayment of such aid. The notice shall be (1) written in plain language, 102
(2) in an easily readable and understandable format, and (3) whenever 103
possible, in the first language of the applicant or person who may be 104
liable for repayment of such aid. 105
Sec. 5. Section 17b-79 of the general statutes is repealed and the 106
following is substituted in lieu thereof (Effective July 1, 2021): 107
(a) For purposes of this section, "cash assistance" means payments 108
made to a beneficiary of the state supplement program, temporary 109 Raised Bill No. 873
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family assistance program or the state-administered general assistance 110
program. No person shall be deemed ineligible to receive an award 111
under the state supplement program, medical assistance program, 112
temporary family assistance program, state-administered general 113
assistance program or supplemental nutrition assistance program for 114
himself or herself or for any person for whose support he or she is liable 115
by reason of having an interest in real property, maintained as his or her 116
home, provided the equity in such property [shall] does not exceed the 117
limits established by the commissioner. The commissioner may place a 118
lien against any property to secure the claim of the state for all amounts 119
which it has paid or may thereafter pay to such person or in such 120
person's behalf [under any such program, or] (1) for cash or medical 121
assistance, (2) to or on behalf of any person for whose support he or she 122
is liable, [except for] or (3) for any medical assistance, provided that, for 123
property valued at two hundred fifty thousand dollars or less, the 124
commissioner may only recover amounts due for cash or medical 125
assistance required to be recovered under federal law. Such recovery 126
shall not include property maintained as a home in aid to families of 127
dependent children cases, in which case such lien shall secure the state 128
only for that portion of the assistance grant awarded for amortization of 129
a mortgage or other encumbrance beginning with the fifth month after 130
the original grant for principal payment on any such encumbrance is 131
made, and each succeeding month of such grant thereafter. The claim of 132
the state shall be secured by filing a certificate in the land records of the 133
town or towns in which any such real estate is situated, describing such 134
real estate. Any such lien may, at any time during which the amount 135
secured by such lien remains unpaid, be foreclosed in an action brought 136
in a court of competent jurisdiction by the commissioner on behalf of 137
the state. Any real estate to which title has been taken by foreclosure 138
under this section, or which has been conveyed to the state in lieu of 139
foreclosure, may be sold, transferred or conveyed for the state by the 140
commissioner with the approval of the Attorney General, and the 141
commissioner may, in the name of the state, execute deeds for such 142
purpose. Such lien shall be released by the commissioner upon payment 143
of the amount secured by such lien, or an amount equal to the value of 144 Raised Bill No. 873
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the beneficiary's interest in such property if the value of such interest is 145
less than the amount secured by such lien, at the commissioner's 146
discretion, and with the advice and consent of the Attorney General, 147
upon a compromise of the amount due to the state. At the discretion of 148
the commissioner, the beneficiary, or, in the case of a husband and wife 149
living together, the survivor of them, as long as he or she lives, or a 150
dependent child or children, may be permitted to occupy such real 151
property. 152
(b) On and after July 1, 2021, the state shall not recover cash assistance 153
or medical assistance from a lien filed on any property valued at two 154
hundred fifty thousand dollars or less, unless the state is required to 155
recover such assistance under federal law. Any certificate or lien filed 156
under this section by or on behalf of the state on such property prior to 157
July 1, 2021, shall be released by the state if the recovery of such 158
assistance is not required under federal law. 159
Sec. 6. Section 17b-85 of the general statutes is repealed and the 160
following is substituted in lieu thereof (Effective July 1, 2021): 161
If any person receiving an award for the care of any dependent child 162
or children, or any person legally liable for the support of such child or 163
children, or any other person being supported wholly or in part under 164
the provisions of the state supplement program, medical assistance 165
program, temporary family assistance program or state-administered 166
general assistance program or any beneficiary under such provisions or 167
any legally liable relative of such beneficiary, receives property, wages, 168
income or resources of any kind, such person or beneficiary, within ten 169
days after obtaining knowledge of or receiving such property, wages, 170
income or resources, shall notify the commissioner thereof, orally or in 171
writing, unless good cause is established for failure to provide such 172
notice, as determined by the commissioner. No such person or 173
beneficiary shall sell, assign, transfer, encumber or otherwise dispose of 174
any property without the consent of the commissioner unless such 175
property is valued at two hundred fifty thousand dollars or less and 176
such person has not received care or support payments the state is 177 Raised Bill No. 873
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required to recover under federal law. The provisions of section 17b-137 178
shall be applicable with respect to any person applying for or receiving 179
an award under such provisions. Except for the supplemental nutrition 180
assistance program, any change in the information which has been 181
furnished on an application form or a redetermination of eligibility form 182
shall also be reported to the commissioner, orally or in writing, within 183
ten days of the occurrence of such change, unless good cause is 184
established for failure to provide such notice, as determined by the 185
commissioner. For participants in the supplemental nutrition assistance 186
program, the commissioner shall establish reporting requirements 187
regarding such changes in information in accordance with applicable 188
federal law, as may be amended from time to time. 189
Sec. 7. Section 17b-93 of the general statutes is repealed and the 190
following is substituted in lieu thereof (Effective July 1, 2021): 191
(a) If a beneficiary of aid under the state supplement program, 192
medical assistance program, aid to families with dependent children 193
program, temporary family assistance program or state-administered 194
general assistance program has or acquires property of any kind or 195
interest in any property, estate or claim of any kind, except moneys 196
received for the replacement of real or personal property, the state of 197
Connecticut shall have a claim, subject to subsections (b) and (c) of this 198
section and the provisions of section 17b-94, as amended by this act, 199
which shall have priority over all other unsecured claims and 200
unrecorded encumbrances, against such beneficiary for the full amount 201
paid, [subject to the provisions of section 17b-94, to the beneficiary or on 202
the beneficiary's behalf under said programs;] provided that the state's 203
claim on property valued at two hundred fifty thousand dollars or less 204
shall not exceed the amount the state is required to recover under 205
federal law, and, in addition thereto, the parents of an aid to dependent 206
children beneficiary, a state-administered general assistance beneficiary 207
or a temporary family assistance beneficiary shall be liable to repay, 208
subject to the provisions of section 17b-94, as amended by this act, to the 209
state the full amount of any such aid paid to or on behalf of either parent, 210
his or her spouse, and his or her dependent child or children, as defined 211 Raised Bill No. 873
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in section 17b-75, to the extent such payments are required to be 212
recovered by the state under federal law or the value of such parent's 213
assets or estate exceeds two hundred fifty thousand dollars. The state of 214
Connecticut shall have a lien against property of any kind or interest in 215
any property, estate or claim of any kind of the parents of an aid to 216
dependent children, temporary family assistance or state administered 217
general assistance beneficiary, in addition and not in substitution of [its] 218
any other state claim, for amounts owing under any order for support 219
of any court or any family support magistrate, including any arrearage 220
under such order, provided household goods and other personal 221
property identified in section 52-352b, real property pursuant to section 222
17b-79, as amended by this act, as long as such property is used as a 223
home for the beneficiary and money received for the replacement of real 224
or personal property, shall be exempt from such lien. 225
(b) Any person who received cash benefits under the aid to families 226
with dependent children program, the temporary family assistance 227
program or the state-administered general assistance program, when 228
such person was under eighteen years of age, shall not be liable to repay 229
the state for such assistance. 230
(c) No claim, except a claim required to be made under federal law, 231
shall be made, or lien applied, against any payment made pursuant to 232
chapter 135, any payment made pursuant to section 47-88d or 47-287, 233
any moneys received as a settlement or award in a housing or 234
employment or public accommodation discrimination case, any court-235
ordered retroactive rent abatement, including any made pursuant to 236
subsection (e) of section 47a-14h or section 47a-4a, 47a-5 or 47a-57, or 237
any security deposit refund pursuant to subsection (d) of section 47a-21 238
paid to a beneficiary of assistance under the state supplement program, 239
medical assistance program, aid to families with dependent children 240
program, temporary family assistance program or state-administered 241
general assistance program or paid to any person who has been 242
supported wholly, or in part, by the state, in accordance with section 243
17b-223, in a humane institution. 244 Raised Bill No. 873
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(d) Notwithstanding any provision of the general statutes, whenever 245
funds are collected pursuant to this section or section 17b-94, as 246
amended by this act, and the person who otherwise would have been 247
entitled to such funds is subject to a court-ordered current or arrearage 248
child support payment obligation in a IV-D support case, such funds 249
shall first be paid to the state for reimbursement of Medicaid funds 250
granted to such person for medical expenses incurred for injuries related 251
to a legal claim by such person which was the subject of the state's lien 252
and such funds shall then be paid to the Office of Child Support Services 253
for distribution pursuant to the federally mandated child support 254
distribution system implemented pursuant to subsection (j) of section 255
17b-179. The remainder, if any, shall be paid to the state for payment of 256
previously provided assistance [through the state supplement program, 257
medical assistance program, aid to families with dependent children 258
program, temporary family assistance program or state-administered 259
general assistance program] that the state is required to recover under 260
federal law or, if such recovery is not required under federal law, from 261
an estate that exceeds the value of two hundred fifty thousand dollars. 262
(e) The Commissioner of Social Services shall adopt regulations, in 263
accordance with chapter 54, establishing criteria and procedures for 264
adjustment of the claim of the state of Connecticut against any parent 265
liable for child support payments under subsection (a) of this section. 266
The purpose of any such adjustment shall be to encourage the positive 267
involvement of noncustodial parents in the lives of their children and to 268
encourage noncustodial parents to begin making regular support 269
payments. 270
(f) On and after July 1, 2021, the state shall not recover cash assistance 271
or medical assistance from a lien filed on any property valued at two 272
hundred fifty thousand dollars or less, unless the state is required to 273
recover such assistance under federal law. Any certificate or lien filed 274
under this section by or on behalf of the state on such property prior to 275
July 1, 2021, shall be released by the state if the recovery of such 276
assistance is not required under federal law. For purposes of this 277
subsection, cash assistance means payments made to a beneficiary of the 278 Raised Bill No. 873
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aid to families with dependent children program, the state-administered 279
general assistance program, the state supplement program or the 280
temporary family assistance program. 281
Sec. 8. Section 17b-94 of the general statutes is repealed and the 282
following is substituted in lieu thereof (Effective July 1, 2021): 283
(a) In the case of causes of action of beneficiaries of aid under the state 284
supplement program, medical assistance program, aid to families with 285
dependent children program, temporary family assistance program or 286
state-administered general assistance program, subject to subsections 287
(b) and (c) of section 17b-93, as amended by this act, or of a parent liable 288
to repay the state under the provisions of section 17b-93, as amended by 289
this act, the claim of the state shall be a lien against the proceeds 290
therefrom in the amount of the assistance paid or fifty per cent of the 291
proceeds received by such beneficiary or such parent after payment of 292
all expenses connected with the cause of action, whichever is less, for 293
repayment under section 17b-93, as amended by this act, [and shall have 294
priority] provided the proceeds from the cause of action exceeds two 295
hundred fifty thousand dollars or the state is required to recover all, or 296
a portion of the proceeds, under federal law for the assistance paid. The 297
state's claim shall have priority over all other claims except attorney's 298
fees for said causes, expenses of suit, costs of hospitalization connected 299
with the cause of action by whomever paid over and above hospital 300
insurance or other such benefits, and, for such period of hospitalization 301
as was not paid for by the state, physicians' fees for services during any 302
such period as are connected with the cause of action over and above 303
medical insurance or other such benefits; and such claim shall consist of 304
the total assistance repayment for which claim may be made under said 305
programs under the provisions of this section. The proceeds of such 306
causes of action shall be assignable to the state for payment of the 307
amount due under section 17b-93, as amended by this act, subject to the 308
provisions of this subsection, irrespective of any other provision of law. 309
Upon presentation to the attorney for the beneficiary of an assignment 310
of such proceeds executed by the beneficiary or his conservator or 311
guardian, such assignment shall constitute an irrevocable direction to 312 Raised Bill No. 873
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the attorney to pay the Commissioner of Administrative Services in 313
accordance with its terms, except if, after settlement of the cause of 314
action or judgment thereon, the Commissioner of Administrative 315
Services does not inform the attorney for the beneficiary of the amount 316
of lien which is to be paid to the Commissioner of Administrative 317
Services within forty-five days of receipt of the written request of such 318
attorney for such information, such attorney may distribute such 319
proceeds to such beneficiary and shall not be liable for any loss the state 320
may sustain thereby. 321
(b) In the case of an inheritance of an estate by a beneficiary of aid 322
under the state supplement program, medical assistance program, aid 323
to families with dependent children program, temporary family 324
assistance program or state-administered general assistance program, 325
subject to subsections (b) and (c) of section 17b-93, as amended by this 326
act, or by a parent liable to repay the state under the provisions of 327
section 17b-93, as amended by this act, fifty per cent of the assets of the 328
estate payable to the beneficiary or such parent or the amount of such 329
assets equal to the amount of assistance paid, provided the value of the 330
estate exceeds two hundred fifty thousand dollars, or is otherwise 331
required to be recovered by the state under federal law, whichever is 332
less, shall be assignable to the state for payment of the amount due 333
under section 17b-93, as amended by this act. The state shall have a lien 334
against such assets in the applicable amount specified in this subsection. 335
The Court of Probate shall accept any such assignment executed by the 336
beneficiary or parent or any such lien notice if such assignment or lien 337
notice is filed by the Commissioner of Administrative Services with the 338
court prior to the distribution of such inheritance, and to the extent of 339
such inheritance not already distributed, the court shall order 340
distribution in accordance with such assignment or lien notice. If the 341
Commissioner of Administrative Services receives any assets of an 342
estate pursuant to any such assignment, the commissioner shall be 343
subject to the same duties and liabilities concerning such assigned assets 344
as the beneficiary or parent. 345
(c) On and after July 1, 2021, the state shall not recover cash assistance 346 Raised Bill No. 873
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or medical assistance from a lien filed on any property or estate valued 347
at two hundred fifty thousand dollars or less, unless the state is required 348
to recover such assistance under federal law. Any certificate or lien filed 349
under this section by or on behalf of the state on such property or estate 350
prior to July 1, 2021, shall be released by the state if the recovery of such 351
assistance is not required under federal law. For purposes of this 352
subsection, cash assistance means payments made to a beneficiary of the 353
aid to families with dependent children program, the state-administered 354
general assistance program, the state supplement program or the 355
temporary family assistance program. 356
Sec. 9. Section 17b-95 of the general statutes is repealed and the 357
following is substituted in lieu thereof (Effective July 1, 2021): 358
(a) For purposes of this section, "cash assistance" means payments 359
made to a beneficiary under the state supplement program, aid to 360
families with dependent children program, temporary family assistance 361
program or state-administered general assistance program. Subject to 362
the provisions of subsection (b) of this section, upon the death of a 363
parent of a child who has, at any time, been a beneficiary under the 364
program of aid to families with dependent children, the temporary 365
family assistance program or the state-administered general assistance 366
program, or upon the death of any person who has at any time been a 367
beneficiary of aid under the state supplement program, medical 368
assistance program, aid to families with dependent children program, 369
temporary family assistance program or state-administered general 370
assistance program, except as provided in subsection (b) of section 17b-371
93, as amended by this act, the state shall have a claim against such 372
parent's or [person's] beneficiary's estate for all [amounts paid on behalf 373
of each such child or for the support of either parent or such child or 374
such person under the state supplement program, medical assistance 375
program, aid to families with dependent children program, temporary 376
family assistance program or state-administered general assistance 377
program] cash assistance or medical assistance for which the state has 378
not been reimbursed, to the extent that (1) the amount which the 379
surviving spouse, parent or dependent children of the decedent would 380 Raised Bill No. 873
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otherwise take from such estate is not needed for their support, (2) the 381
value of the estate exceeds two hundred fifty thousand dollars, or (3) the 382
state is required to recover such assistance under federal law. 383
Notwithstanding the provisions of this subsection, effective for services 384
provided on or after January 1, 2014, no state claim pursuant to this 385
section shall be made against the estate of a recipient of medical 386
assistance under the Medicaid Coverage for the Lowest Income 387
Populations program, established pursuant to Section 388
1902(a)(10)(A)(i)(VIII) of the Social Security Act, as amended from time 389
to time, except to the extent required by federal law. 390
(b) In the case of any person dying after October 1, 1959, the claim for 391
medical payments, even though such payments were made prior 392
thereto, shall be restricted to medical disbursements actually made for 393
care of such deceased beneficiary. 394
(c) Claims pursuant to this section shall have priority over all 395
unsecured claims against such estate, except (1) expenses of last sickness 396
not to exceed three hundred seventy-five dollars, (2) funeral and burial 397
expenses in accordance with [section] sections 17b-84 and 17b-131, and 398
(3) administrative expenses, including [probate fees and taxes, and] (A) 399
taxes, and (B) probate fees, including fiduciary fees not exceeding the 400
following commissions on the value of the whole estates accounted for 401
by such fiduciaries: On the first two thousand dollars or portion thereof, 402
five per cent; on the next eight thousand dollars or portion thereof, four 403
per cent; on the excess over ten thousand dollars, three per cent. Upon 404
petition by any fiduciary, the Probate Court, after a hearing thereon, 405
may authorize compensation in excess of the above schedule for 406
extraordinary services. Notice of any such petition and hearing shall be 407
given to the Commissioner of Administrative Services in Hartford at 408
least ten days in advance of such hearing. The allowable funeral and 409
burial payment [herein] as provided in this section shall be reduced by 410
the amount of any prepaid funeral arrangement. Any amount paid from 411
the estate under this section to any person which exceeds the limits 412
provided [herein] in this section shall be repaid to the estate by such 413
person, and such amount may be recovered in a civil action with interest 414 Raised Bill No. 873
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at six per cent from the date of demand. 415
(d) For purposes of this section, all sums due on or after July 1, 2003, 416
to any individual after the death of a [public] cash assistance or medical 417
assistance beneficiary from whom the state is required to recover such 418
assistance under federal law, pursuant to the terms of an annuity 419
contract purchased at any time with assets of [a public assistance] such 420
beneficiary, shall be deemed to be part of the estate of the deceased 421
beneficiary and shall be payable to the state by the recipient of such 422
annuity payments to the extent necessary [to achieve full 423
reimbursement of any public assistance benefits paid to, or on behalf of, 424
the deceased beneficiary] under federal law, irrespective of any 425
provision of law. The recipient of beneficiary payments from any such 426
annuity contract shall be solely liable to the state of Connecticut for 427
reimbursement of [public assistance] cash assistance and medical 428
assistance benefits paid to, or on behalf of, the deceased beneficiary that 429
the state is required to recover under federal law and, for annuity 430
contracts with payments exceeding two hundred fifty thousand dollars, 431
all amounts due the state, regardless of federal law, to the extent of any 432
payments received by such recipient pursuant to the annuity contract. 433
(e) On and after July 1, 2021, the state shall not recover cash assistance 434
or medical assistance from a lien filed on any property or estate valued 435
at two hundred fifty thousand dollars or less, unless the state is required 436
to recover such assistance under federal law. Any certificate or lien filed 437
under this section by or on behalf of the state on such property or estate 438
prior to July 1, 2021, shall be released by the state if the recovery of such 439
assistance is not required under federal law. 440
Sec. 10. Section 17b-224 of the general statutes is repealed and the 441
following is substituted in lieu thereof (Effective July 1, 2021): 442
A patient who is receiving or has received care in a state humane 443
institution, his estate or both shall be liable to reimburse the state for any 444
unpaid portion of per capita cost, [to the same extent as the liability of a 445
public assistance beneficiary under sections 17b-93 and 17b-95,] subject 446 Raised Bill No. 873
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to the same protection of a surviving spouse or dependent child as is 447
provided in section 17b-95, as amended by this act, [and subject to the 448
same limitations and the same assignment and lien rights as provided 449
in section 17b-94] provided the unpaid portion is required to be 450
recovered under federal law or the value of the patient's assets or estate 451
exceeds two hundred fifty thousand dollars. 452
Sec. 11. Section 12-18b of the general statutes is repealed and the 453
following is substituted in lieu thereof (Effective July 1, 2021): 454
(a) For purposes of this section: 455
(1) "College and hospital property" means all real property described 456
in subsection (a) of section 12-20a; 457
(2) "District" [means any district, as defined] has the same meaning 458
as provided in section 7-324; 459
[(3) "Qualified college and hospital property" means college and 460
hospital property described in subparagraph (B) of subdivision (2) of 461
subsection (b) of this section; 462
(4) "Qualified state, municipal or tribal property" means state, 463
municipal or tribal property described in subparagraphs (A) to (G), 464
inclusive, of subdivision (1) of subsection (b) of this section; 465
(5) "Municipality" means any town, city, borough, consolidated town 466
and city and consolidated town and borough; 467
(6) "Select college and hospital property" means college and hospital 468
property described in subparagraph (A) of subdivision (2) of subsection 469
(b) of this section; 470
(7) "Select payment in lieu of taxes account" means the account 471
established pursuant to section 12-18c; 472
(8) "Select state property" means state property described in 473
subparagraph (H) of subdivision (1) of subsection (b) of this section;] 474 Raised Bill No. 873
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(3) "Equalized net grand list per capita" means the grand list of a 475
municipality upon which taxes were levied for the general expenses of 476
such municipality three years prior to the fiscal year in which a grant 477
under this section is to be paid, equalized in accordance with the 478
provisions of section 10-261a and divided by the total population of such 479
municipality; 480
(4) "Municipality" means any town, city, borough, consolidated town 481
and city and consolidated town and borough; 482
[(9)] (5) "State, municipal or tribal property" means all real property 483
described in subsection (a) of section 12-19a; 484
[(10) "Tier one districts or municipalities" means the ten districts or 485
municipalities with the highest percentage of tax exempt property on 486
the list of municipalities prepared by the Secretary of the Office of Policy 487
and Management pursuant to subsection (c) of this section and having 488
a mill rate of twenty-five mills or more; 489
(11) "Tier two districts or municipalities" means the next twenty-five 490
districts or municipalities after tier one districts or municipalities with 491
the highest percentage of tax exempt property on the list of 492
municipalities prepared by the Secretary of the Office of Policy and 493
Management pursuant to subsection (c) of this section and having a mill 494
rate of twenty-five mills or more; 495
(12) "Tier three districts or municipalities" means all districts and 496
municipalities not included in tier one districts or municipalities or tier 497
two districts or municipalities; 498
(13) "Tier one municipalities" means the ten municipalities with the 499
highest percentage of tax exempt property on the list of municipalities 500
prepared by the Secretary of the Office of Policy and Management 501
pursuant to subsection (c) of this section and having a mill rate of 502
twenty-five mills or more; 503
(14) "Tier two municipalities" means the next twenty -five 504 Raised Bill No. 873
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municipalities after tier one municipalities with the highest percentage 505
of tax exempt property on the list of municipalities prepared by the 506
Secretary of the Office of Policy and Management pursuant to 507
subsection (c) of this section and having a mill rate of twenty-five mills 508
or more; 509
(15) "Tier three municipalities" means all municipalities not included 510
in tier one municipalities or tier two municipalities; and 511
(16) "Mill rate" means the mill rate on real property and personal 512
property other than motor vehicles] 513
(6) "Tier one municipalities" means municipalities with an equalized 514
net grand list per capita of less than one hundred thousand dollars per 515
capita; 516
(7) "Tier two municipalities" means municipalities with an equalized 517
net grand list per capita of one hundred thousand dollars to two 518
hundred thousand dollars per capita; and 519
(8) "Tier three municipalities" means municipalities with an 520
equalized net grand list per capita of greater than two hundred 521
thousand dollars per capita. 522
(b) Notwithstanding the provisions of sections 12-19a and 12-20a, all 523
funds appropriated for state grants in lieu of taxes shall be payable to 524
municipalities and districts pursuant to the provisions of this section. 525
On or before January first, annually, the Secretary of the Office of Policy 526
and Management shall determine the amount due, as a state grant in 527
lieu of taxes, to each municipality and district in this state wherein 528
college and hospital property is located and to each municipality in this 529
state wherein state, municipal or tribal property, except that which was 530
acquired and used for highways and bridges, but not excepting 531
property acquired and used for highway administration or maintenance 532
purposes, is located. 533
(1) The grant payable to any municipality for state, municipal or tribal 534 Raised Bill No. 873
LCO No. 3265 18 of 28
property under the provisions of this section in the fiscal year ending 535
June 30, 2017, and each fiscal year thereafter shall be equal to the total 536
of: 537
(A) One hundred per cent of the property taxes that would have been 538
paid with respect to any facility designated by the Commissioner of 539
Correction, on or before August first of each year, to be a correctional 540
facility administered under the auspices of the Department of 541
Correction or a juvenile detention center under direction of the 542
Department of Children and Families that was used for incarcerative 543
purposes during the preceding fiscal year. If a list containing the name 544
and location of such designated facilities and information concerning 545
their use for purposes of incarceration during the preceding fiscal year 546
is not available from the Secretary of the State on August first of any 547
year, the Commissioner of Correction shall, on said date, certify to the 548
Secretary of the Office of Policy and Management a list containing such 549
information; 550
(B) One hundred per cent of the property taxes that would have been 551
paid with respect to that portion of the John Dempsey Hospital located 552
at The University of Connecticut Health Center in Farmington that is 553
used as a permanent medical ward for prisoners under the custody of 554
the Department of Correction. Nothing in this section shall be construed 555
as designating any portion of The University of Connecticut Health 556
Center John Dempsey Hospital as a correctional facility; 557
(C) One hundred per cent of the property taxes that would have been 558
paid on any land designated within the 1983 Settlement boundary and 559
taken into trust by the federal government for the Mashantucket Pequot 560
Tribal Nation on or after June 8, 1999; 561
(D) Subject to the provisions of subsection (c) of section 12-19a, sixty-562
five per cent of the property taxes that would have been paid with 563
respect to the buildings and grounds comprising Connecticut Valley 564
Hospital and Whiting Forensic Hospital in Middletown; 565
(E) With respect to any municipality in which more than fifty per cent 566 Raised Bill No. 873
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of the property is state-owned real property, one hundred per cent of 567
the property taxes that would have been paid with respect to such state-568
owned property; 569
(F) Forty-five per cent of the property taxes that would have been 570
paid with respect to all municipally owned airports; except for the 571
exemption applicable to such property, on the assessment list in such 572
municipality for the assessment date two years prior to the 573
commencement of the state fiscal year in which such grant is payable. 574
The grant provided pursuant to this section for any municipally owned 575
airport shall be paid to any municipality in which the airport is located, 576
except that the grant applicable to Sikorsky Airport shall be paid one-577
half to the town of Stratford and one-half to the city of Bridgeport; 578
(G) Forty-five per cent of the property taxes that would have been 579
paid with respect to any land designated within the 1983 Settlement 580
boundary and taken into trust by the federal government for the 581
Mashantucket Pequot Tribal Nation prior to June 8, 1999, or taken into 582
trust by the federal government for the Mohegan Tribe of Indians of 583
Connecticut, provided the real property subject to this subparagraph 584
shall be the land only, and shall not include the assessed value of any 585
structures, buildings or other improvements on such land; and 586
(H) Forty-five per cent of the property taxes that would have been 587
paid with respect to all other state-owned real property. 588
(2) (A) The grant payable to any municipality or district for college 589
and hospital property under the provisions of this section in the fiscal 590
year ending June 30, 2017, and each fiscal year thereafter shall be equal 591
to the total of seventy-seven per cent of the property taxes that, except 592
for any exemption applicable to any college and hospital property under 593
the provisions of section 12-81, would have been paid with respect to 594
college and hospital property on the assessment list in such municipality 595
or district for the assessment date two years prior to the commencement 596
of the state fiscal year in which such grant is payable; and 597
(B) Notwithstanding the provisions of subparagraph (A) of this 598 Raised Bill No. 873
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subdivision, the grant payable to any municipality or district with 599
respect to a campus of the United States Department of Veterans Affairs 600
Connecticut Healthcare Systems shall be one hundred per cent. 601
(c) The Secretary of the Office of Policy and Management shall list 602
municipalities, boroughs and districts based on (1) the percentage of real 603
property on the 2012 grand list of each municipality that is exempt from 604
property tax under any provision of the general statutes other than that 605
property described in subparagraph (A) of subdivision (1) of subsection 606
(b) of this section, and (2) for the fiscal year ending June 30, 2022, and 607
each fiscal year thereafter, the equalized net grand list per capita of each 608
municipality. Boroughs and districts shall have the same ranking as the 609
town, city, consolidated town and city or consolidated town and 610
borough in which such borough or district is located. 611
[(d) For the fiscal year ending June 30, 2017, if the total of grants 612
payable to each municipality and district in accordance with the 613
provisions of subsection (b) of this section exceeds the amount 614
appropriated for the purposes of said subsection (b) for said fiscal year: 615
(1) The amount of the grant payable to each municipality for state, 616
municipal or tribal property and to each municipality or district for 617
college and hospital property shall be reduced proportionately, 618
provided the percentage of the property taxes payable to a municipality 619
or district with respect to such property shall not be lower than the 620
percentage paid to the municipality or district for such property for the 621
fiscal year ending June 30, 2015; and (2) certain municipalities and 622
districts shall receive an additional payment in lieu of taxes grant 623
payable from the Municipal Revenue Sharing Fund established in 624
section 4-66p. The total amount of the grant payment is as follows: 625
T1 Municipality/District Grant Amount
T2
T3 Ansonia 19,652
T4 Bridgeport 3,095,669
T5 Chaplin 10,692
T6 Danbury 593,619
T7 Deep River 1,876 Raised Bill No. 873
LCO No. 3265 21 of 28
T8 Derby 132,817
T9 East Granby 9,474
T10 East Hartford 205,669
T11 Hamden 593,967
T12 Hartford 11,883,205
T13 Killingly 44,593
T14 Ledyard 2,881
T15 Litchfield 13,303
T16 Mansfield 2,516,331
T17 Meriden 248,303
T18 Middletown 695,770
T19 Montville 25,080
T20 New Britain 1,995,060
T21 New Haven 14,584,940
T22 New London 1,297,919
T23 Newington 169,211
T24 North Canaan 4,203
T25 Norwich 248,588
T26 Plainfield 15,417
T27 Simsbury 20,731
T28 Stafford 41,189
T29 Stamford 528,332
T30 Suffield 51,434
T31 Wallingford 58,914
T32 Waterbury 3,141,669
T33 West Hartford 202,308
T34 West Haven 324,832
T35 Windham 1,193,950
T36 Windsor 9,241
T37 Windsor Locks 31,122
T38 Borough of Danielson (Killingly) 2,135
T39 Borough of Litchfield 137
T40 Middletown: South Fire District 1,121
T41 Plainfield - Plainfield Fire District 296
T42 West Haven First Center (D1) 1,136
T43 West Haven: Allingtown FD (D3) 50,751
T44 West Haven: West Shore FD (D2) 33,544
(e) (1) For the fiscal years ending June 30, 2018, and June 30, 2019, if 626
the total of grants payable to each municipality and district in 627
accordance with the provisions of subsection (b) of this section exceeds 628 Raised Bill No. 873
LCO No. 3265 22 of 28
the amount appropriated for the purposes of said subsection (b) for said 629
fiscal years: (A) The amount of the grant payable to each municipality 630
for state, municipal or tribal property and to each municipality or 631
district for college and hospital property shall be reduced 632
proportionately, provided the percentage of the property taxes payable 633
to a municipality or district with respect to such property shall not be 634
lower than the percentage paid to the municipality or district for such 635
property for the fiscal year ending June 30, 2015; and (B) certain 636
municipalities and districts shall receive an additional payment in lieu 637
of taxes grant payable from the select payment in lieu of taxes account. 638
The total amount of the grant payment is as follows: 639
T45
Municipality/District Grant Amount
T46 Ansonia 20,543
T47 Bridgeport 3,236,058
T48 Chaplin 11,177
T49 Danbury 620,540
T50 Deep River 1,961
T51 Derby 138,841
T52 East Granby 9,904
T53 East Hartford 214,997
T54 Hamden 620,903
T55 Hartford 12,422,113
T56 Killingly 46,615
T57 Ledyard 3,012
T58 Litchfield 13,907
T59 Mansfield 2,630,447
T60 Meriden 259,564
T61 Middletown 727,324
T62 Montville 26,217
T63 New Britain 2,085,537
T64 New Haven 15,246,372
T65 New London 1,356,780
T66 Newington 176,884
T67 North Canaan 4,393
T68 Norwich 259,862
T69 Plainfield 16,116
T70 Simsbury 21,671
T71 Stafford 43,057
T72 Stamford 552,292 Raised Bill No. 873
LCO No. 3265 23 of 28
T73 Suffield 53,767
T74 Wallingford 61,586
T75 Waterbury 3,284,145
T76 West Hartford 211,483
T77 West Haven 339,563
T78 Windham 1,248,096
T79 Windsor 9,660
T80 Windsor Locks 32,533
T81 Borough of Danielson (Killingly) 2,232
T82 Borough of Litchfield 143
T83 Middletown: South Fire District 1,172
T84 Plainfield - Plainfield Fire District 309
T85 West Haven First Center (D1) 1,187
T86 West Haven: Allingtown FD (D3) 53,053
T87 West Haven: West Shore FD (D2) 35,065
(2) For the fiscal year ending June 30, 2020, and each fiscal year 640
thereafter, if the total of grants payable to each municipality and district 641
in accordance with the provisions of subsection (b) of this section 642
exceeds the amount appropriated for the purposes of said subsection (b) 643
for said fiscal years: 644
(A) The amount of the grant payable to each municipality for 645
qualified state, municipal or tribal property and to each municipality or 646
district for qualified college and hospital property shall be reduced 647
proportionately, provided the percentage of the property taxes payable 648
to a municipality or district with respect to such property shall not be 649
lower than the percentage paid to the municipality or district for such 650
property for the fiscal year ending June 30, 2015; 651
(B) The amount of the grant payable to each municipality or district 652
for select college and hospital property shall be reduced as follows: (i) 653
Tier one districts or municipalities shall each receive a grant in lieu of 654
taxes equal to forty-two per cent of the property taxes that, except for 655
any exemption applicable to any college and hospital property under 656
the provisions of section 12-81, would have been paid to such 657
municipality or district with respect to select college and hospital 658
property; (ii) tier two districts or municipalities shall each receive a 659 Raised Bill No. 873
LCO No. 3265 24 of 28
grant in lieu of taxes equal to thirty-seven per cent of the property taxes 660
that, except for any exemption applicable to any college and hospital 661
property under the provisions of section 12-81, would have been paid 662
to such municipality or district with respect to select college and 663
hospital property; and (iii) tier three districts or municipalities shall each 664
receive a grant in lieu of taxes equal to thirty-two per cent of the 665
property taxes that, except for any exemption applicable to any college 666
and hospital property under the provisions of section 12-81, would have 667
been paid to such municipality or district with respect to select college 668
and hospital property. Grants in excess of thirty-two per cent of the 669
property taxes that, except for any exemption applicable to any college 670
and hospital property under the provisions of section 12-81, would have 671
been paid to tier one districts or municipalities and to tier two districts 672
or municipalities with respect to select college and hospital property 673
shall be payable from the select payment in lieu of taxes account; and 674
(C) The amount of the grant payable to each municipality for select 675
state property shall be reduced as follows: (i) Tier one municipalities 676
shall each receive a grant in lieu of taxes equal to thirty-two per cent of 677
the property taxes that, except for any exemption applicable to any state 678
property under the provisions of section 12-81, would have been paid 679
to such municipality with respect to select state property; (ii) tier two 680
municipalities shall each receive a grant in lieu of taxes equal to twenty-681
eight per cent of the property taxes that, except for any exemption 682
applicable to any state property under the provisions of section 12-81, 683
would have been paid to such municipality with respect to select state 684
property; and (iii) tier three municipalities shall each receive a grant in 685
lieu of taxes equal to twenty-four per cent of the property taxes that, 686
except for any exemption applicable to any state property under the 687
provisions of section 12-81, would have been paid to such municipality 688
with respect to select state property. Grants in excess of twenty-four per 689
cent of the property taxes that, except for any exemption applicable to 690
any state property under the provisions of section 12-81, would have 691
been paid to tier one municipalities and to tier two municipalities with 692
respect to select state property shall be payable from the select payment 693 Raised Bill No. 873
LCO No. 3265 25 of 28
in lieu of taxes account. 694
(3) If the total of grants payable to each municipality and district in 695
accordance with the provisions of subsection (b) of this section and 696
subdivision (2) of this subsection exceeds the amount appropriated for 697
the purposes of said subsection and said subdivision and the amount 698
available in the select payment in lieu of taxes account in any fiscal year, 699
the amount of the grant payable to each municipality for state, 700
municipal or tribal property and to each municipality or district for 701
college and hospital property shall be reduced proportionately, 702
provided (A) the grant payable to tier one districts or municipalities for 703
select college and hospital property shall be ten percentage points more 704
than the grant payable to tier three districts or municipalities for such 705
property, (B) the grant payable to tier two districts or municipalities for 706
select college and hospital property shall be five percentage points more 707
than the grant payable to tier three districts or municipalities for such 708
property, (C) the grant payable to tier one municipalities for select state 709
property shall be eight percentage points more than the grant payable 710
to tier three municipalities for such property, and (D) the grant payable 711
to tier two municipalities for select state property shall be four 712
percentage points more than the grant payable to tier three 713
municipalities for such property. Grants to tier one municipalities or 714
districts and grants to tier two municipalities or districts in excess of 715
grants paid to tier three municipalities or districts pursuant to this 716
subsection shall be payable from the select payment in lieu of taxes 717
account. Grants to tier one municipalities and grants to tier two 718
municipalities in excess of grants paid to tier three municipalities 719
pursuant to this subsection shall be payable from the select payment in 720
lieu of taxes account.] 721
(d) For the fiscal year ending June 30, 2022, and each fiscal year 722
thereafter: 723
(1) If the total of grants payable to each municipality and district in 724
accordance with the provisions of subsection (b) of this section exceeds 725
the amount appropriated for the purposes of said subsection for each 726 Raised Bill No. 873
LCO No. 3265 26 of 28
such fiscal year: 727
(A) Each tier one municipality and district shall receive fifty per cent 728
of the grant amount payable to such municipality or district as 729
calculated under subsection (b) of this section; 730
(B) Each tier two municipality and district shall receive forty per cent 731
of the grant amount payable to such municipality or district as 732
calculated under subsection (b) of this section; and 733
(C) Each tier three municipality and district shall receive thirty per 734
cent of the grant amount payable to such municipality or district as 735
calculated under subsection (b) of this section; and 736
(2) If the total of grants payable to each municipality and district in 737
accordance with the provisions of subdivision (1) of this subsection 738
exceeds the amount appropriated for the purposes of said subdivision 739
in any fiscal year, the amount of the grant payable to each municipality 740
and district shall be reduced proportionately. 741
[(f)] (e) Notwithstanding the provisions of subsections (a) to (d), 742
inclusive, of this section, for any municipality receiving payments under 743
section 15-120ss, property located in such municipality at Bradley 744
International Airport shall not be included in the calculation of any state 745
grant in lieu of taxes pursuant to this section. 746
[(g)] (f) For purposes of this section, any real property [which] that is 747
owned by the John Dempsey Hospital Finance Corporation established 748
pursuant to the provisions of sections 10a-250 to 10a-263, inclusive, or 749
by one or more subsidiary corporations established pursuant to 750
subdivision (13) of section 10a-254 and [which] that is free from taxation 751
pursuant to the provisions of section 10a-259 shall be deemed to be state-752
owned real property. 753
[(h)] (g) The Office of Policy and Management shall report, in 754
accordance with the provisions of section 11-4a, to the joint standing 755
committee of the General Assembly having cognizance of matters 756 Raised Bill No. 873
LCO No. 3265 27 of 28
relating to finance, revenue and bonding, on or before July 1, [2017, and 757
on or before July first annually thereafter until July 1, 2020] 2021, and 758
annually thereafter, with regard to the grants distributed in accordance 759
with this section, and shall include in such reports any 760
recommendations for changes in the grants. 761
Sec. 12. Section 12-18c of the general statutes is repealed and the 762
following is substituted in lieu thereof (Effective July 1, 2021): 763
There is established an account to be known as the "select payment in 764
lieu of taxes account" which shall be a separate, nonlapsing account 765
within the General Fund. The account shall contain any moneys 766
required by law to be deposited in the account. Moneys in the account 767
shall be expended by the Office of Policy and Management for [the 768
purposes of making select grants to municipalities and districts for 769
payments in lieu of taxes as provided for in subdivision (1) of subsection 770
(e) of section 12-18b, subparagraphs (B) and (C) of subdivision (2) of 771
subsection (e) of section 12-18b, subdivision (3) of subsection (e) of 772
section 12-18b and for] any [other] purpose expressly provided by law. 773
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 July 1, 2021 4a-13
Sec. 3 July 1, 2021 4a-16
Sec. 4 July 1, 2021 17b-77(b)
Sec. 5 July 1, 2021 17b-79
Sec. 6 July 1, 2021 17b-85
Sec. 7 July 1, 2021 17b-93
Sec. 8 July 1, 2021 17b-94
Sec. 9 July 1, 2021 17b-95
Sec. 10 July 1, 2021 17b-224
Sec. 11 July 1, 2021 12-18b
Sec. 12 July 1, 2021 12-18c
Statement of Purpose:
To (1) mitigate adverse tax consequences resulting from employees
working remotely during the taxable year 2020 due to COVID-19, (2) Raised Bill No. 873
LCO No. 3265 28 of 28
eliminate state recovery of public assistance payments from certain
assets and estates, and (3) revise the calculation of the amounts of grants
in lieu of taxes paid to municipalities, based on equalized net grand list
per capita.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]