Substitute House Bill No. 7151 mandates the Office of Policy and Management (OPM) to provide technical assistance to municipalities to help them assess their eligibility for the Motor Vehicle Tax grant. The bill introduces new definitions regarding "municipal spending," clarifying what expenditures are included and excluded, such as debt service and special education costs. It establishes a "municipal revenue sharing account" within the General Fund to manage and distribute funds for motor vehicle property tax grants based on municipalities' mill rates. Key changes include the repeal of Section 4-66l, the introduction of terms like "adopted budget expenditures" and "capital expenditure," and a new process for distributing grants based on mill rates.

The bill also modifies the enforcement of a municipal spending cap, stating that it will not apply for the fiscal year ending June 30, 2026, meaning municipalities exceeding their budget expenditures will not face grant reductions for that year. It requires municipalities to certify their budget expenditures annually, with potential waivers, and specifies that municipalities with a mill rate at or above twenty-five will receive higher distributions compared to those below that threshold. The bill includes minor technical changes to reorganize defined terms and is set to take effect on October 1, 2025, with no fiscal impact on the state or municipalities, as OPM has the resources to provide the necessary assistance.

Statutes affected:
Raised Bill: 4-66l
PD Joint Favorable Substitute: 4-66l
File No. 528: 4-66l