Substitute Senate Bill No. 858 establishes the "Mashantucket Pequot and Mohegan Fund" as a separate nonlapsing fund, which will receive contributions from the Mashantucket Pequot Tribe according to a joint memorandum of understanding. The bill repeals existing Section 3-55i and introduces new provisions that maintain current funding levels through fiscal year 2026, while increasing the total grant amount to approximately $139.38 million starting in fiscal year 2028. Additionally, it stipulates that transfers from the General Fund to the Mashantucket Pequot and Mohegan Fund cannot be reduced without an emergency certification from the Governor and a two-thirds vote from the General Assembly.

The bill also modifies Section 3-55j by repealing certain provisions and inserting new language that specifies grant amounts for municipalities, particularly Ledyard and Montville, which could receive up to $600,000 each if the state revokes taxation of non-Indian property on reservation land. It outlines the distribution process for these grants to ensure timely payments to municipalities and addresses the distribution of Pequot grants based on various factors, including state-owned property value and population. The proposed changes aim to update the grant distribution process to reflect current economic conditions and ensure fair compensation for the towns and tribes involved. The Appropriations Committee has favorably reported the bill with a unanimous vote of 54 in favor and none against.

Statutes affected:
Committee Bill: 3-55i, 3-55j
APP Joint Favorable Substitute: 3-55i, 3-55j
File No. 894: 3-55i, 3-55j