Senate Bill No. 1186 proposes changes to the distribution formula for the Regional Planning Incentive Account, which allocates funds to regional councils of governments (COGs). The bill replaces the term "formed" with "created" in the context of COGs and establishes a new distribution method for fiscal years starting from June 30, 2024. Under the new formula, the total annual distribution remains at $7 million, but the per capita payment will now be adjusted based on any increase in the consumer price index (CPI) for urban consumers over the preceding twelve months. This adjustment aims to provide a larger grant amount to COGs with higher populations while maintaining a consistent base payment across all councils.

Additionally, the bill mandates that the distribution formula be reviewed and updated annually, rather than every five years as previously required. Each regional council must submit an annual proposal for the expenditure of these funds, which can include various initiatives aimed at improving the efficiency and quality of services provided to the public. The bill is set to take effect on July 1, 2025, and does not have any fiscal impact on the state or municipalities, as the Office of Policy and Management has the necessary resources to implement these changes.