The proposed bill establishes the State Fairgrounds District Act, creating a new political subdivision known as the State Fairgrounds District, which includes the state-owned fairgrounds and any adjacent land acquired in the future. The district is empowered to acquire land, modify its boundaries, enter contracts, and issue bonds up to $500 million for development projects. It can levy a property tax, capped at $5 per $1,000 of net taxable value, contingent on voter approval. Governance will be managed by a seven-member board comprising local officials and community representatives. Key provisions include a special fund receiving 75% of net receipts from state gross receipts and gaming taxes generated within the district, as well as a tax exemption for bonds issued under the Act.

The bill also introduces modifications regarding the issuance and management of refunding bonds, allowing their principal amounts to vary in relation to the bonds being refunded, provided adequate payment provisions are established. It mandates the creation of a district development plan detailing project aspects such as geographical boundaries and job creation estimates. The bonds and their income will be exempt from state taxation, and annual reporting on the act's implementation and financial implications is required. Starting July 1, 2025, 75% of net receipts from gross receipts and gaming taxes will be allocated to a special fund for the district until the bonds are fully discharged, with the act taking effect on the same date.

Statutes affected:
CT substitute: 4-53-1, 4-54-1