Substitute Senate Bill No. 449 proposes significant amendments to municipal grant programs and property classification laws. It repeals and replaces subsections (i) and (j) of section 7-536, establishing that municipalities will only receive grants for local capital improvement projects if they have fully expended or demonstrated intent to expend all previously issued funds. Additionally, municipalities must submit a certified report detailing their expenditures by September 1, 2026, with penalties for non-compliance. The bill also modifies section 4-66g to require municipalities to show prior fund utilization before receiving new grants and sets a cap on available funding. Furthermore, it repeals section 4-66m and alters eligibility requirements for the Small Town Economic Assistance Program (STEAP) to impose similar conditions regarding the expenditure of prior funds.

The bill mandates the Office of Policy and Management (OPM) to identify state-owned properties eligible for PA 490 classification, which allows for assessment at current use value rather than fair market value, impacting annual payment in lieu of taxes (PILOT) grants. It also eliminates the requirement for municipalities to certify compliance with zoning regulations for family and group child care homes, repealing the obsolete Intertown Capital Equipment Purchase Incentive Program. Key provisions include penalties for municipalities failing to comply with LoCIP reporting requirements and a delayed notification deadline for District Repair and Improvement Project (DRIP) grants. The effective date for most provisions is set for October 1, 2026, with some taking effect upon passage, aiming to streamline grant processes while ensuring accurate assessment of state properties for tax purposes.

Statutes affected:
PD Joint Favorable Substitute: 8-3j, 4-66m
File No. 284: 8-3j, 4-66m