Substitute House Bill No. 5576 amends Special Act 23-27 to facilitate the transfer of two parcels of state land, totaling approximately 7.23 acres, to the city of New Haven for economic development and municipal purposes. The city is required to utilize these parcels for specified purposes and may sell or lease them, with proceeds directed to the State Treasurer for the General Fund. If the city fails to use the parcels within three years, they will revert to the state. The bill also establishes specific deadlines for the conveyance and execution of agreements, set for June 28, 2025, and August 27, 2023, respectively, and mandates approval from the State Properties Review Board before the conveyance can occur.

Key changes in the bill include the deletion of a provision that allowed the Board of Regents for Higher Education to revert the conveyance due to a breach of a memorandum of understanding with APT Foundation, Inc. Additionally, new legal language clarifies that control of the parcels will not revert back to the state within three years following the conveyance, thereby securing potential revenue from future sales for both the Board of Regents and the city. The Government Oversight Committee has favorably reported on the bill, indicating strong support for its aim to enhance financial stability and asset management for both entities.