Substitute House Bill No. 5273
Public Act No. 24-132
AN ACT CONCERNING THE RECOMMENDATIONS OF THE
INTERGOVERNMENTAL POLICY AND PLANNING DIVISION
WITHIN THE OFFICE OF POLICY AND MANAGEMENT, AUDITS
AND MUNICIPAL FINANCE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-94a of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
On or before July first, annually, the [tax collector] assessor of each
municipality shall certify to the Secretary of the Office of Policy and
Management, on a form furnished by said secretary, the amount of tax
revenue which such municipality, except for the provisions of
subdivision (55) of section 12-81, would have received, together with
such supporting information as said secretary may require, except that
for the assessment year commencing October 1, 2003, such certification
shall be made to the secretary on or before August 1, 2004. Any
municipality which neglects to transmit to said secretary such claim and
supporting documentation as required by this section shall forfeit two
hundred fifty dollars to the state, provided said secretary may waive
such forfeiture in accordance with procedures and standards adopted
by regulation in accordance with chapter 54. Said secretary shall review
each such claim as provided in section 12-120b. Any claimant aggrieved Substitute House Bill No. 5273
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by the results of the secretary's review shall have the rights of appeal as
set forth in section 12-120b. The secretary shall, on or before December
fifteenth, annually, certify to the Comptroller the amount due each
municipality under the provisions of this section, including any
modification of such claim made prior to December fifteenth, and the
Comptroller shall draw an order on the Treasurer on the fifth business
day following and the Treasurer shall pay the amount thereof to such
municipality on or before the thirty-first day of December following. If
any modification is made as the result of the provisions of this section
on or after the December fifteenth following the date on which the [tax
collector] assessor has provided the amount of tax revenue in question,
any adjustments to the amount due to any municipality for the period
for which such modification was made shall be made in the next
payment the Treasurer shall make to such municipality pursuant to this
section. For the purposes of this section, "municipality" means a town,
city, borough, consolidated town and city or consolidated town and
borough. The provisions of this section shall not apply to the assessment
year commencing on October 1, 2002. In the fiscal year commencing July
1, 2004, and in each fiscal year thereafter, the amount of the grant
payable to each municipality in accordance with this section shall be
reduced proportionately in the event that the total amount of the grants
payable to all municipalities exceeds the amount appropriated.
Sec. 2. Section 12-9 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
[The] Not later than July 1, 2024, and annually thereafter, the
Secretary of the Office of Policy and Management shall [annually] cause
to be prepared by the tax collector complete statements relating to the
mill rate and tax levy [during the preceding] for the ensuing fiscal year,
such statements to be made upon printed blanks to be prepared and
furnished by the secretary to all such officers at least thirty days before
the date prescribed by the secretary for the filing of such statements. Substitute House Bill No. 5273
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Any person who neglects to file a true and correct report in the office of
the secretary at the time and in the form required by [him] the secretary
or which, in making and filing such report, includes therein any wilful
misstatement, shall forfeit one hundred dollars to the state, provided the
secretary may waive such forfeiture in accordance with procedures and
standards adopted by regulation in accordance with chapter 54.
Sec. 3. Subsection (d) of section 7-325 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective from
passage):
(d) Not later than July 1, [2022] 2024, and annually thereafter, the tax
collector of each district shall submit a statement to the Secretary of the
Office of Policy and Management on a form prescribed by the secretary.
Such statement shall include complete information concerning the mill
rate and tax levy in the district for the [preceding] ensuing fiscal year.
Any tax collector who neglects to submit a true and correct statement
shall forfeit one hundred dollars to the state.
Sec. 4. (NEW) (Effective from passage) Not later than July 1, 2024, and
annually thereafter, each special services district established under
chapter 105a of the general statutes shall submit a statement to the
Secretary of the Office of Policy and Management on a form prescribed
by the secretary. Such statement shall include complete information
concerning the mill rate and tax levy in the district for the ensuing fiscal
year. Any such district that neglects to submit a true and correct
statement shall forfeit one hundred dollars to the state.
Sec. 5. Subdivision (1) of subsection (a) of section 12-62c of the general
statutes is repealed and the following is substituted in lieu thereof
(Effective July 1, 2024, and applicable to assessment years commencing on or
after October 1, 2024):
(a) (1) A town implementing a revaluation of all real property may Substitute House Bill No. 5273
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phase in a real property assessment increase, or a portion of such
increase resulting from such revaluation, by requiring the assessor to
gradually increase the assessment or the rate of assessment applicable
to such property in the assessment year preceding that in which the
revaluation is implemented, in accordance with one of the methods set
forth in subsection (b) of this section. The legislative body of the town
shall approve the decision to provide for such phase-in, the method by
which it is accomplished and its term, provided the number of
assessment years over which such gradual increases are reflected shall
not exceed five assessment years, including the assessment year for
which the revaluation is effective. If a town chooses to phase in a portion
of the increase in the assessment of each parcel of real property resulting
from said revaluation, said legislative body shall establish a factor,
which shall be not less than twenty-five per cent in any assessment year
commencing prior to October 1, 2024, or twenty per cent in any
assessment year commencing on or after October 1, 2024, and shall
apply such factor to such increases for all parcels of real property,
regardless of property classification. A town choosing to phase in a
portion of assessment increase shall multiply such factor by the total
assessment increase for each such parcel to determine the amount of
such increase that shall not be subject to the phase-in. The assessment
increase for each parcel that shall be subject to the gradual increases in
amounts or rates of assessment, as provided in subsection (b) of this
section, shall be (A) the difference between the result of said
multiplication and the total assessment increase for any such parcel, or
(B) the result derived when such factor is subtracted from the actual
percentage by which the assessment of each such parcel increased as a
result of such revaluation, over the assessment of such parcel in the
preceding assessment year and said result is multiplied by such parcel's
total assessment increase.
Sec. 6. Subsection (a) of section 8-23 of the general statutes is repealed
and the following is substituted in lieu thereof (Effective July 1, 2024): Substitute House Bill No. 5273
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(a) (1) At least once every ten years, the commission shall prepare or
amend and shall adopt a plan of conservation and development for the
municipality. Following adoption, the commission shall regularly
review and maintain such plan. The commission may adopt such
geographical, functional or other amendments to the plan or parts of the
plan, in accordance with the provisions of this section, as it deems
necessary. The commission may, at any time, prepare, amend and adopt
plans for the redevelopment and improvement of districts or
neighborhoods which, in its judgment, contain special problems or
opportunities or show a trend toward lower land values.
(2) If a plan is not amended decennially, the chief elected official of
the municipality shall submit a letter to the Secretary of the Office of
Policy and Management and the Commissioners of Transportation,
Energy and Environmental Protection and Economic and Community
Development that explains why such plan was not amended. A copy of
such letter shall be included in each application by the municipality for
discretionary state funding in excess of twenty-five thousand dollars
submitted to any state agency.
Sec. 7. Section 4-124s of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
(a) For purposes of this section:
(1) "Regional council of governments" means any such council
organized under the provisions of sections 4-124i to 4-124p, inclusive;
(2) "Municipality" means a town, city or consolidated town and
borough;
(3) "Legislative body" means the board of selectmen, town council,
city council, board of alderman, board of directors, board of
representatives or board of the warden and burgesses of a municipality; Substitute House Bill No. 5273
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(4) "Secretary" means the Secretary of the Office of Policy and
Management or the designee of the secretary;
(5) "Regional educational service center" has the same meaning as
provided in section 10-282; and
(6) "Employee organization" means any lawful association, labor
organization, federation or council having as a primary purpose the
improvement of wages, hours and other conditions of employment.
(b) There is established a regional performance incentive program
that shall be administered by the Secretary of the Office of Policy and
Management. Any regional council of governments, regional
educational service center or a combination thereof may submit a
proposal to the secretary for: (1) The provision of any service that [one]
two or more participating municipalities of such council or local or
regional board of education of such regional educational service center
[currently] may provide [but which is not provided] on a regional and
ongoing basis, (2) the redistribution of grants awarded pursuant to
sections 4-66g, 4-66h, 4-66m and 7-536, according to regional priorities,
or (3) regional revenue sharing among such participating municipalities
pursuant to section 7-148bb. A copy of said proposal shall be sent to the
legislators representing said participating municipalities or local or
regional boards of education. Any regional educational service center
serving a population greater than one hundred thousand may submit a
proposal to the secretary for a regional special education initiative.
(c) (1) A regional council of governments or regional educational
service center shall submit each proposal in the form and manner the
secretary prescribes and shall, at a minimum, provide the following
information for each proposal: (A) Service or initiative description; (B)
the explanation of the need for such service or initiative; (C) the method
of delivering such service or initiative on a regional basis; (D) the
organization that would be responsible for regional service or initiative Substitute House Bill No. 5273
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delivery; (E) a description of the population that would be served; (F)
the manner in which the proposed regional service or initiative delivery
will achieve economies of scale for participating municipalities or
boards of education; (G) [the amount by which participating
municipalities will reduce their mill rates as a result of savings realized]
an estimate of anticipated savings or costs that will not be incurred by
participating municipalities during the grant award period and in fiscal
years beyond such period; (H) a cost benefit analysis for the provision
of the service or initiative by each participating municipality and by the
entity or board of education submitting the proposal; (I) a plan of
implementation for delivery of the service or initiative on a regional
basis that addresses any potential growth or reduction in rates of
participation during the grant award period; (J) a resolution endorsing
such proposal approved by the governing body of the council or center,
which shall include a statement affirming that the council or center shall
fund an increasing proportion of the cost of such proposal over the
duration of the grant award period, that not less than [twenty-five] fifty
per cent of the total cost of such proposal shall be funded by the council
or center [in the first year of operation, and that by the fourth year of
operation the council or center] by the end of the grant award period
and that the council or center shall fund one hundred per cent of such
cost thereafter; (K) a resolution endorsing such proposal approved by
the governing body of the council of each planning region in which the
service or initiative is to be provided; (L) a copy of an acknowledgment
from any employee organization that may be impacted by such
proposal that they have been informed of and consulted about the
proposal; and (M) an explanation of the potential legal obstacles, if any,
to the regional provision of the service or initiative, and how such
obstacles will be resolved.
(2) The secretary shall review each proposal and shall award grants
for proposals the secretary determines best satisfy the following criteria:
(A) The proposed service or initiative will (i) reduce municipal and state Substitute House Bill No. 5273
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costs, (ii) enhance capacity in the delivery of services, or (iii) result in an
improvement in the level of service provided when compared to the
local delivery of such service, (B) the proposed service or initiative will
be available to or benefit all participating members of the regional
council of governments or regional educational service center regardless
of such members' participation in the grant application process; [(B)
when compared to the existing delivery of services by participating
members of the council or center, the proposal demonstrates (i) a
positive cost benefit to such members, (ii) increased efficiency and
capacity in the delivery of services, (iii) a diminished need for state
funding, and (iv) increased cost savings;] (C) the proposed service or
initiative promotes cooperation among participating members that may
lead to a reduction in economic or social inequality; (D) the proposal has
been approved by a majority of the members of the council or center;
[and, pursuant to this subsection, contains a statement that not less than
twenty-five per cent of the cost of such proposal shall be funded by the
council or center in the first year of operation, and that by the fourth
year of operation the council or center shall fund one hundred per cent
of such cost;] and (E) any employee organizations that may be impacted
by such proposal have been informed of and consulted about such
proposal, pursuant to this subsection.
(d) Notwithstanding the provisions of sections 7-339a to 7-339l,
inclusive, or any other provision of the general statutes, no regional
council of governments or regional educational service center or any
member municipalities or local or regional boards of education of such
councils or centers shall be required to execute an interlocal agreement
to implement a proposal submitted pursuant to subsection (c) of this
section.
(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 Substitute House Bill No. 5273
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initiative into a nonlapsing account pursuant to section 10-248a.
(f) The secretary shall submit to the Governor and the joint standing
committee of the General Assembly having cognizance of matters
relating to finance, revenue and bonding a report on the grants provided
pursuant to this section. Each such report shall (1) include information
on the amount of each grant and the potential of each grant for
leveraging other public and private investments, and (2) describe any
[property tax reductions] municipal or state cost savings and improved
services achieved by means of the program established pursuant to this
section. The secretary shall submit a report for the fiscal year
commencing July 1, 2011, not later than February 1, 2012, and shall
submit a report for each subsequent fiscal year not later than the first
day of March in such fiscal year.
Sec. 8. Subsection (a) of section 12-170d of the general statutes is
repealed and the following is substituted in lieu thereof (Effective July 1,
2024):
(a) Beginning with the calendar year 1973 and for each calendar year
thereafter any renter of real property, or of a mobile manufactured
home, as defined in section 12-63a, which such renter occupies as his or
her home, who meets the qualifications set forth in this section, shall be
entitled to receive in the following year in the form of direct payment
from the state, a grant in refund of utility and rent bills actually paid by
or for such renter on such real property or mobile manufactured home
to the extent set forth in section 12-170e. Such grant by the state shall be
made upon receipt by the state of a certificate of grant with a copy of the
application therefor attached, as provided in section 12-170f, as
amended by this act. [, 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 Substitute House Bill No. 5273
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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. For purposes of this section and sections 12-170e
and 12-170f, as amended by this act, a married couple shall constitute
one tenant, and a resident of cooperative housing shall be a renter. To
qualify for such payment by the state, the renter shall meet qualification
requirements in accordance with each of the following subdivisions: (1)
(A) At the close of the calendar year for which a grant is claimed be sixty-
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
been engaged in employment covere d by Social Security and
accordingly has not qualified for Social Security benefits but has become
qualified for permanent total disability benefits under any federal, state
or local government retirement or disability plan, including the Railroad
Retirement Act and any government-related teacher's retirement plan,
determined by the Secretary of the Office of Policy and Management to
contain requirements in respect to qualification for such permanent total
disability benefits which are comparable to such requirements under
Social Security; (2) shall reside within this state and shall have resided
within this state for at least one year or such renter's spouse who is
domiciled with such renter shall have resided within this state for at
least one year and shall reside within this state at the time of filing the
claim and shall have resided within this state for the period for which
claim is made; (3) shall have taxable and nontaxable income, the total of
which shall hereinafter be called "qualifying income", during the Substitute House Bill No. 5273
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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; and (4) shall not have received financial aid or
subsidy from federal, state, county or municipal funds, excluding Social
Security receipts, emergency energy assistance under any state
program, emergency energy assistance under any federal program,
emergency energy assistance under any local program, payments
received under the federal Supplemental Security Income Program,
payments derived from previous employment, veterans and veterans
disability benefits and subsidized housing accommodations, during the
calendar year for which a grant is claimed, for payment, directly or
indirectly, of rent, electricity, gas, water and fuel applicable to the rented
residence. 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
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. Funds attributable to such reductions shall be
transferred annually from the appropriation to the Office of Policy and
Management, for tax relief for elderly renters, to the Department of
Social Services, to the appropriate accounts, following the issuance of
such grants. Notwithstanding the provisions of subsection (b) of section
12-170aa, the owner of a mobile manufactured home may elect to
receive benefits under section 12-170e in lieu of benefits under said
section 12-170aa. Substitute House Bill No. 5273
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Sec. 9. Section 12-170f of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
(a) Any renter, believing himself or herself to be entitled to a grant
under section 12-170d, as amended by this act, for any calendar year,
shall apply for such grant to the assessor of the municipality in which
the renter resides or to the duly authorized agent of such assessor or
municipality on or after April first and not later than [October first]
September thirtieth of each year with respect to such grant for the
calendar year preceding each such year. Such application shall be made
on a form prescribed and furnished by the Secretary of the Office of
Policy and Management or electronically in a manner prescribed by the
secretary. Municipalities that require notarization of a landlord
verification of property rental on an application under this section (1)
shall exempt a renter from the requirement if a landlord verification for
the same property rental by the same renter has been previously
notarized, and (2) shall not delay submission of the application of an
otherwise qualified renter to the Secretary of the Office of Policy and
Management if the renter fails to meet the deadline for notarizing such
landlord verification. [A renter may apply to the secretary prior to
November fifteenth of the claim year for an extension of the application
period. The secretary may grant such extension in the case of
extenuating circumstance due to illness or incapacitation as evidenced
by a certificate signed by a physician, physician assistant or an advanced
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 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. When the assessor or agent is satisfied that the applying renter
is entitled to a grant, such assessor or agent shall issue a certificate of Substitute House Bill No. 5273
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grant in such form as the secretary may prescribe and supply showing
the amount of the grant due.
(b) The assessor or agent shall forward the application to the secretary
not later than the last day of the month following the month in which
the renter has made application. Any municipality that neglects to
transmit to the secretary the application as required by this section shall
forfeit two hundred fifty dollars to the state, provided the secretary may
waive such forfeiture in accordance with procedures and standards
adopted by regulation in accordance with chapter 54. The certificate of
grant shall be delivered to the renter and the assessor or agent shall keep
the original copy of such certificate and application.
(c) After the secretary's review of each claim, pursuant to section 12-
120b, and verification of the amount of the grant, the secretary shall
make a determination of any per cent reduction to all claims that will be
necessary to keep within available appropriations and, not later than
[October] November fifteenth of each year, prepare a list of certificates
approved for payment, and shall thereafter supplement such list
monthly. 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, and the Comptroller shall, not later than fifteen days following
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
secretary pursuant to this subsection, and the Treasurer shall pay such
amount to such person, not later than fifteen days following receipt of
such order.
(d) 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 Substitute House Bill No. 5273
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overpayment until the overpayment has been recouped. Any claimant
aggrieved by the results of the secretary's review or determination shall
have the rights of appeal as set forth in section 12-120b. Applications
filed under this section shall not be open for public inspection. Any
person who, for the purpose of obtaining a grant under section 12-170d,
as amended by this act, wilfully fails to disclose all matters related
thereto or with intent to defraud makes false statement shall be fined
not more than five hundred dollars.
(e) Any municipality may provide, upon approval by its legislative
body, that the duties and responsibilities of the assessor, as required
under this section and section 12-170g, shall be transferred to (1) the
officer in such municipality having responsibility for the administration
of social services, or (2) the coordinator or agent for the elderly in such
municipality.
Sec. 10. Subsection (c) of section 19a-200 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective July 1,
2024):
(c) In cities, towns or boroughs with a population of forty thousand
or more for five consecutive years, according to the [estimated
population figures authorized pursuant to subsection (b) of section
8-159a] most recent federal decennial census, or, in intervening years
between such censuses, the most recent estimate of the Department of
Public Health, such director of health shall serve in a full-time capacity,
except where a town has designated such director as the chief medical
advisor for its public schools under section 10-205.
Sec. 11. Section 4-231 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
(a) (1) Each nonstate entity [which] that expends a total amount of
state financial assistance equal to or in excess of [three] five hundred Substitute House Bill No. 5273
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thousand dollars in 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.
(2) If the total 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.
(3) If the total amount 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.
(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, shall be exempt with
respect to such fiscal year from complying with any statutory or
regulatory requirements concerning financial or financial and
compliance audits that would otherwise [be applicable] apply to such
nonstate entity.
(c) No provision of this 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.
Sec. 12. Section 4-232 of the general statutes is repealed and the Substitute House Bill No. 5273
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following is substituted in lieu thereof (Effective July 1, 2024):
(a) Each nonstate entity [which] that is required to be audited
pursuant to sections 4-230 to 4-236, inclusive, shall designate an
independent auditor to conduct such audit. Not later than 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. If a nonstate entity fails to
make such filing, the cognizant agency may designate an independent
auditor to conduct the audit. A nonstate entity shall be responsible for
paying the costs of any audit conducted by an independent auditor
designated by a cognizant agency.
(b) (1) Upon the completion of [the] an audit [,] pursuant to sections
4-230 to 4-236, inclusive, [the] each nonstate entity shall file a copy of the
audit report with the cognizant agency designated pursuant to section
4-235 and, if applicable, state grantor agencies and pass-through
entities. Once filed, such report shall be made available by the nonstate
entity for public inspection. Copies of the report shall be filed not later
than thirty days after completion of such report, if possible, but not later
than six months after the end of the audit period. The cognizant agency
may 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. If the reason for the extension
relates to deficiencies in the accounting system of the nonstate entity,
the request shall be accompanied by a corrective action plan. The
auditor or chief executive officer shall promptly provide any additional
information the cognizant agency may require. Before determining
whether to grant an extension request, the cognizant agency may
require the auditor and officials of the nonstate entity to meet with Substitute House Bill No. 5273
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representatives of the cognizant agency. No extension granted pursuant
to this subdivision shall extend beyond twelve months after the last day
of the fiscal year to which such audit applies.
(2) Any nonstate entity, or the auditor of such nonstate entity, [which]
that fails to have [the] an audit report filed on its behalf [within] not later
than six months after the end of the fiscal year or within the time granted
by the cognizant agency, may be assessed [,] by the Secretary of the
Office of Policy and Management [,] a civil penalty of not less than one
thousand dollars [but not more than] and not to exceed ten thousand
dollars. In addition to, or in lieu of such penalty, the cognizant agency
may assign an auditor to perform [the] an audit of such nonstate entity.
In such case, [the] such nonstate entity shall be responsible for paying
the costs related to [the] such audit. The secretary may, upon receipt of
a written request from an official of the nonstate entity or its auditor,
waive all such penalties if the secretary determines that there [appears
to be] is reasonable cause for the entity not having completed or
provided [the] a required audit report.
Sec. 13. Section 7-576a of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
[(a) Any] The Municipal Finance Advisory Commission may
designate any municipality referred to said commission pursuant to
subsection (d) of section 7-395 [to the Municipal Finance Advisory
Commission shall be designated] as a tier I municipality. The chief
elected official of any municipality that does not meet the conditions
identified under subsection (d) of section 7-395 may apply to the
Municipal 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 the following twenty-four
month period, and (2) submits a report to the Municipal Finance
Advisory Commission, in a form and manner prescribed by the
commission, that confirms that such condition or conditions will be met Substitute House Bill No. 5273
Public Act No. 24-132 18 of 24
in such period. Each decision to designate a municipality as a tier I
municipality pursuant to this section shall be based on an evaluation of
such municipality's financial condition and financial practices. In
addition to the requirements of section 7-394b, each municipality
designated as a tier I municipality shall prepare and present a five-year
financial plan to the Municipal Finance Advisory Commission for its
review and approval.
[(b) The secretary shall refer any municipality designated as a tier I
municipality to the Municipal Finance Advisory Commission, pursuant
to the provisions of section 7-395. In addition to the requirements of
section 7-394b, such municipality shall prepare and present a five-year
financial plan to the Municipal Finance Advisory Commission for its
review and approval.]
Sec. 14. Section 7-576f of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
(a) (1) A municipality designated as 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 factors
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.
[(a)] (2) A municipality designated as a [tier I municipality in
accordance with section 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 Substitute House Bill No. 5273
Public Act No. 24-132 19 of 24
audited operating deficits 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 fiscal years covered by such financial plan,
[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. The board may
undertake the determination described in this subdivision at its
discretion or upon the request of a municipality.
(b) [Notwithstanding subsection (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
municipality shall be redesignated as a tier I municipality. Not later than
sixty days after the board makes such determination, the secretary shall Substitute House Bill No. 5273
Public Act No. 24-132 20 of 24
notify the municipality of the secretary's decision to terminate such
municipality's tier designation or redesignate such municipality to a
lower tier. A municipality shall retain its existing tier designation until
such notice is received. 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.
(2) A municipality redesignated to a lower tier pursuant to
subdivision (1) of this subsection shall (A) meet the requirements of this
chapter pertaining to such lower tier, and (B) not request 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.
Sec. 15. Section 7-576i of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024):
(a) Any designated tier II, III, or IV municipality shall be eligible to
receive funding from the Municipal Restructuring Fund, which fund
shall be nonlapsing. A designated tier II, III or IV municipality seeking
such funds shall submit, for approval by the Secretary of the Office of
Policy and Management, a plan detailing its overall restructuring plan,
including local actions to be taken and its proposed use of such funds.
Notwithstanding section 10-262j, a municipality may, as part of such
plan and in consultation with its local board of education, submit a
proposed reduction in the minimum budget requirement related to its
education budget. The secretary shall consult with the Commissioner of
Education in approving or rejecting such proposed reduction. 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 Substitute House Bill No. 5273
Public Act No. 24-132 21 of 24
repayment by the municipality. The distribution of such assistance
funds shall be based on the relative fiscal needs of the requesting
municipalities. The secretary may approve all, none or a portion of the
funds requested by a municipality. In attaching conditions to such
funding, the secretary shall consider the impact of such conditions on
the ability of a municipality to meet legal and other obligations. The
board shall monitor and report to the secretary on the use of such funds
and adherence to the conditions attached thereto. The 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
this section. Any municipality that receives funding from the [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.
(b) The secretary may distribute funds from the Municipal
Restructuring Fund to a third party on behalf of a designated tier II, tier
III or tier IV municipality. Funds received by a municipality pursuant to
this section may be used, in part, to pay an arbitrator selected pursuant
to clause (v) of subdivision (3) of subsection (a) of section 7-576e, as
amended by this act.
[(b)] (c) Notwithstanding the provisions of subsection (a) of this
section, in making distributions from the Municipal Restructuring
Fund, the board shall give immediate consideration to any municipality
that shall default on debt obligations by January 1, 2018, without an
immediate distribution of such funds.
Sec. 16. Subdivision (2) of subsection (a) of section 7-576e of the
general statutes is repealed and the following is substituted in lieu
thereof (Effective July 1, 2024): Substitute House Bill No. 5273
Public Act No. 24-132 22 of 24
(2) The Municipal Accountability Review Board may designate a tier
III municipality as a tier IV municipality based on a finding by the board
that the fiscal condition of such municipality warrants such a
designation based upon an evaluation of the following criteria: (A) The
balance in the municipal reserve fund; (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; (C) the initial budgeted revenue for the
municipality for the past five fiscal years as compared to the actual
revenue received by the municipality for such fiscal years; (D) budget
projections for the following five fiscal years; (E) the economic outlook
for the municipality; [and] (F) the municipality's access to capital
markets; and (G) evidence of unsound or irregular financial practices in
relation to commonly accepted standards in municipal finance that the
board believes may materially affect the municipality's financial
condition. For the purpose of determining whether to make a finding
pursuant to this subdivision, the membership of the board shall
additionally include the chief elected official of such municipality, the
treasurer of such municipality and a member of the legislative body of
such municipality, as selected by such body. In conducting a vote on
any such determination, the treasurer of such municipality shall be a
non-voting member of the board. The board shall 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. Following the public notice and comment period,
the secretary shall forward the board's finding and recommended
designation and a report regarding the comments received in this regard
to the Governor. Following the receipt of such documentation from the
secretary, the Governor may approve or disapprove the board's
recommended designation.
Sec. 17. Section 7-393 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective July 1, 2024): Substitute House Bill No. 5273
Public Act No. 24-132 23 of 24
Upon the completion of an audit, the independent auditor shall file
certified copies of the audit report with (1) the appointing authority, (2)
in the case of a town, city or borough, with the clerk of such town, 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 with the board of education, (4) in the case of 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. Such copies shall be filed within six
months from the end of the fiscal year of the municipality, regional
school district or audited agency, but the secretary may grant an
extension of not more than thirty days, provided the auditor making the
audit 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 prior
to the end of such six-month period. If the reason for the extension
relates to deficiencies in the accounting system of the municipality,
regional school district or audited agency the request must be
accompanied by a corrective action plan. The secretary may, after a
hearing with the auditor and officials of the municipality, regional
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. Said
auditor shall preserve 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. Any
municipality, regional school district, audited agency or auditor who
fails to have the audit report filed on its behalf within six months from
the end of the fiscal year or within the time granted by the secretary shall Substitute House Bill No. 5273
Public Act No. 24-132 24 of 24
be referred by the secretary to the Municipal Finance Advisory
Commission established pursuant to section 7-394b, assessed a 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 the auditor submits a written request for such waiver.
The secretary may impose any civil penalty assessed pursuant to this
section against a municipality, regional school district or audited agency
in the form of a reduction in the amount of one or more grants awarded
by the secretary, including, but not limited to, any grant payable
pursuant to section 12-18b.
Sec. 18. Sections 8-159a and 12-19f of the general statutes are repealed.
(Effective July 1, 2024)