Assembly Bill 719 proposes to replace the existing expenditure restraint incentive program with a new municipality payment program, which will take effect in 2027. The bill terminates payments under the expenditure restraint incentive program by the end of 2026 and establishes a new payment structure for municipalities that received payments under the previous program in 2024, 2025, or 2026. Each eligible municipality will receive an annual payment equal to the highest amount it received from the expenditure restraint incentive program during that three-year period.

The bill includes several amendments to existing statutes, specifically changing references from the "expenditure restraint incentive" to the "municipality payment" program in sections 20.835, 25.491, 79.015, and 79.02. Additionally, it creates new sections 79.05 (8) and 79.06, which outline the cessation of payments under the old program and the details of the new municipality payment program, respectively. The effective dates for these changes are staggered, with some provisions taking effect in 2026 and others in 2027.

Statutes affected:
Bill Text: 20.835(1)(s), 20.835, 25.491(3), 25.491, 79.015, 79.02(2)(b), 79.02, 79.02(3)