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. It also includes a stipulation 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.

Additionally, the bill modifies Section 3-55j by repealing subsection (i) and inserting new provisions that guarantee municipalities Ledyard and Montville grants of up to $600,000 each, contingent upon the state revoking taxation of non-Indian property on reservation land. The distribution process for these grants will be managed by the Office of Policy and Management. The bill also proposes adjustments to the Pequot grant distribution to towns based on various economic factors, with an appropriation set at approximately $52.5 million for FY 25. Overall, the legislation aims to secure and enhance funding for municipalities affected by the operations of the Mashantucket Pequot and Mohegan Tribes while ensuring that funding levels are protected from arbitrary reductions. The Appropriations Committee has favorably reported the bill with a unanimous vote of 54 in favor and none against on April 24, 2025.

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