Conn. Gen. Stat. § 13a-175a: Allocation of funds. Approval of use of funds for other purposes. Report by towns and districts.

(a) For each fiscal year there shall be allocated twelve million five hundred thousand dollars out of the funds appropriated to the Department of Transportation, or from any other source, not otherwise prohibited by law, to be used by the towns (1) for the construction, reconstruction, improvement and maintenance of highways, sections of highways, bridges and structures incidental to highways and bridges, including (A) construction, reconstruction, improvements and maintenance intended to increase resiliency against increased precipitation, flooding, sea level rise and extreme heat, and (B) the plowing of snow, the sanding of icy pavements, the trimming and removal of trees, the installation, replacement and maintenance of traffic signs, signals and markings, (2) for traffic control and vehicular safety programs, traffic and parking planning and administration, and other purposes and programs related to highways, traffic and parking, and (3) for the purposes of providing and operating essential public transportation services and related facilities.

(b) Notwithstanding the provisions of subsection (a) of this section, the Secretary of the Office of Policy and Management, in the secretary's discretion, may approve the use of funds by a town for purposes other than those enumerated in said subsection.

(c) Not later than September 1, 2022, and annually thereafter, each town or district that received funds pursuant to subsection (a) of this section in the preceding fiscal year shall submit a report to the Commissioner of Transportation, in the form and manner prescribed by the commissioner, detailing the amount of such funds expended in such fiscal year for each of the usages enumerated in said subsection or approved pursuant to subsection (b) of this section.

(d) The Secretary of the Office of Policy and Management shall reduce the grant payable to a town or district in accordance with subsection (a) of this section by ten per cent in any fiscal year that the town or district fails to timely submit the report required by subsection (c) of this section. The secretary shall waive such reduction if the town or district submits such report after the due date and provides proof of such submission to the secretary.