LCO 3844 1 of 11 General Assembly Raised Bill No. 6833 January Session, 2025 LCO No. 3844 Referred to Committee on PLANNING AND DEVELOPMENT Introduced by: (PD) AN ACT CONCERNING THE LEGISLATIVE COMMISSIONERS' RECOMMENDATIONS FOR TECHNICAL REVISIONS TO STATUTES RELATING TO PLANNING AND DEVELOPMENT. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (a) of section 4-124s of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective July 1, 2 2025): 3 (a) For purposes of this section: 4 (1) "Regional council of governments" means any such council 5 organized under the provisions of sections 4-124i to 4-124p, inclusive; 6 (2) "Municipality" means a town, city or consolidated town and 7 borough; 8 (3) "Legislative body" means the board of selectmen, town council, 9 city council, board of [alderman] aldermen, board of directors, board of 10 representatives or board of the warden and burgesses of a municipality; 11 Raised Bill No. 6833 LCO 3844 2 of 11 (4) "Secretary" means the Secretary of the Office of Policy and 12 Management or the designee of the secretary; 13 (5) "Regional educational service center" has the same meaning as 14 provided in section 10-282; and 15 (6) "Employee organization" means any lawful association, labor 16 organization, federation or council having as a primary purpose the 17 improvement of wages, hours and other conditions of employment. 18 Sec. 2. Section 7-339hh of the general statutes is repealed and the 19 following is substituted in lieu thereof (Effective July 1, 2025): 20 Costs authorized for payment from a district master plan fund, 21 established pursuant to section 7-339gg, are limited to: 22 (1) Costs of improvements made within the tax increment district, 23 including, but not limited to, (A) capital costs, including, but not limited 24 to, (i) the acquisition or construction of land, improvements, 25 infrastructure, public ways, parks, buildings, structures, railings, street 26 furniture, signs, landscaping, plantings, benches, trash receptacles, 27 curbs, sidewalks, turnouts, recreational facilities, structured parking, 28 transportation improvements, pedestrian improvements and other 29 related improvements, fixtures and equipment for public use; [,] (ii) the 30 acquisition or construction of land, improvements, infrastructure, 31 buildings, structures, including facades and signage, fixtures and 32 equipment for industrial, commercial, residential, mixed-use or retail 33 use or transit-oriented development; [,] (iii) the demolition, alteration, 34 remodeling, repair or reconstruction of existing buildings, structures 35 and fixtures; (iv) environmental remediation; (v) site preparation and 36 finishing work; and (vi) all fees and expenses associated with the capital 37 cost of such improvements, including, but not limited to, licensing and 38 permitting expenses and planning, engineering, architectural, testing, 39 legal and accounting expenses; (B) financing costs, including, but not 40 limited to, closing costs, issuance costs, reserve funds and capitalized 41 interest; (C) real property assembly costs; (D) costs of technical and 42 marketing assistance programs; (E) professional service costs, 43 Raised Bill No. 6833 LCO 3844 3 of 11 including, but not limited to, licensing, architectural, planning, 44 engineering, development and legal expenses; (F) maintenance and 45 operation costs; (G) administrative costs, including, but not limited to, 46 reasonable charges for the time spent by municipal employees, other 47 agencies or third-party entities in connection with the implementation 48 of a district master plan; and (H) organizational costs relating to the 49 planning and the establishment of the tax increment district, including, 50 but not limited to, the costs of conducting environmental impact and 51 other studies and the costs of informing the public about the creation of 52 tax increment districts and the implementation of the district master 53 plan; 54 (2) Costs of improvements that are made outside the tax increment 55 district but are directly related to or are made necessary by the 56 establishment or operation of the tax increment district, including, but 57 not limited to, (A) that portion of the costs reasonably related to the 58 construction, alteration or expansion of any facilities not located within 59 the tax increment district that are required due to improvements or 60 activities within the tax increment district, including, but not limited to, 61 roadways, traffic signalization, easements, sewage treatment plants, 62 water treatment plants or other environmental protection devices, storm 63 or sanitary sewer lines, water lines, electrical lines, improvements to fire 64 stations, and street signs; (B) costs of public safety and public school 65 improvements made necessary by the establishment of the tax 66 increment district; and (C) costs of funding to mitigate any adverse 67 impact of the tax increment district upon the municipality and its 68 constituents; 69 (3) Costs related to economic development, environmental 70 improvements or employment training associated with the tax 71 increment district, including, but not limited to, (A) economic 72 development programs or events related to the tax increment district; 73 (B) environmental improvement projects developed by the municipality 74 related to the tax increment district; (C) the establishment of permanent 75 economic development revolving loan funds, investment funds and 76 grants; and (D) services and equipment necessary for employment skills 77 Raised Bill No. 6833 LCO 3844 4 of 11 development and training, including scholarships to in -state 78 educational institutions for jobs created or retained in the tax increment 79 district; and 80 (4) Costs of improvements that are made outside the tax increment 81 district for the renovation or rehabilitation of a housing development 82 that is a set-aside development, as defined in subsection (a) of section 8-83 30g, for which development the deed covenants or restrictions that 84 preserve such development as a set-aside development will expire in 85 not more than three years, provided the costs of such improvements are 86 paid pursuant to an agreement between the municipality and the owner 87 of such development in which the owner agrees to renew such deed 88 covenants or restrictions for not less than forty years. 89 Sec. 3. Section 7-393 of the general statutes is repealed and the 90 following is substituted in lieu thereof (Effective July 1, 2025): 91 Upon the completion of an audit, the independent auditor shall file 92 certified copies of the audit report [with] (1) with the appointing 93 authority, (2) in the case of a town, city or borough, with the clerk of 94 such town, city or borough, (3) in the case of a regional school district, 95 with the clerks of the towns, cities or boroughs in which such regional 96 school district is located and with the board of education, (4) in the case 97 of an audited agency, with the clerks of the towns, cities or boroughs in 98 which such audited agency is located, and (5) in each case, with the 99 Secretary of the Office of Policy and Management. Such copies shall be 100 filed within six months from the end of the fiscal year of the 101 municipality, regional school district or audited agency, but the 102 secretary may grant an extension of not more than thirty days, provided 103 the auditor making the audit and the chief executive officer of the 104 municipality, regional school district or audited agency shall jointly 105 submit a request in writing to the secretary stating the reasons for such 106 extension at least thirty days prior to the end of such six-month period. 107 If the reason for the extension relates to deficiencies in the accounting 108 system of the municipality, regional school district or audited agency, 109 the request must be accompanied by a corrective action plan. The 110 Raised Bill No. 6833 LCO 3844 5 of 11 secretary may, after a hearing with the auditor and officials of the 111 municipality, regional school district or audited agency, grant an 112 additional extension if conditions warrant, provided such extension 113 shall not exceed six months from the date the auditor was required to 114 file such copies. Said auditor shall preserve all of his or her working 115 papers employed in the preparation of any such audit until the 116 expiration of five years from the date of filing a certified copy of the 117 audit with the secretary and such working papers shall be available, 118 upon written request and upon reasonable notice from the secretary, 119 during such time for inspection by the secretary or his authorized 120 representative, at the office or place of business of the auditor, during 121 usual business hours. Any municipality, regional school district, 122 audited agency or auditor who fails to have the audit report filed on its 123 behalf within six months from the end of the fiscal year or within the 124 time granted by the secretary shall be referred by the secretary to the 125 Municipal Finance Advisory Commission established pursuant to 126 section 7-394b, assessed a civil penalty of not less than one thousand 127 dollars but not more than fifty thousand dollars or both, except that the 128 secretary may waive such penalties if, in the secretary's opinion, there 129 appears to be reasonable cause for not having completed or provided 130 the required audit report, provided an official of the municipality, 131 regional school district or audited agency or the auditor submits a 132 written request for such waiver. The secretary may impose any civil 133 penalty assessed pursuant to this section against a municipality, 134 regional school district or audited agency in the form of a reduction in 135 the amount of one or more grants awarded by the secretary, including, 136 but not limited to, any grant payable pursuant to section 12-18b. 137 Sec. 4. Subdivision (2) of subsection (a) of section 7-576e of the general 138 statutes is repealed and the following is substituted in lieu thereof 139 (Effective July 1, 2025): 140 (2) The Municipal Accountability Review Board may designate a tier 141 III municipality as a tier IV municipality based on a finding by the board 142 that the fiscal condition of such municipality warrants such a 143 designation based upon an evaluation of the following criteria: (A) The 144 Raised Bill No. 6833 LCO 3844 6 of 11 balance in the municipal reserve fund; (B) the short and long-term 145 liabilities of the municipality, including, but not limited to, the 146 municipality's ability to meet minimum funding levels required by law, 147 contract or court order; (C) the initial budgeted revenue for the 148 municipality for the past five fiscal years as compared to the actual 149 revenue received by the municipality for such fiscal years; (D) budget 150 projections for the following five fiscal years; (E) the economic outlook 151 for the municipality; (F) the municipality's access to capital markets; and 152 (G) evidence of unsound or irregular financial practices in relation to 153 commonly accepted standards in municipal finance that the board 154 believes may materially affect the municipality's financial condition. For 155 the purpose of determining whether to make a finding pursuant to this 156 subdivision, the membership of the board shall additionally include the 157 chief elected official of such municipality, the treasurer of such 158 municipality and a member of the legislative body of such municipality, 159 as selected by such body. In conducting a vote on any such 160 determination, the treasurer of such municipality shall be a [non-voting] 161 nonvoting member of the board. The board shall submit such finding 162 and recommended designation to the secretary, who shall provide for a 163 thirty-day notice and public comment period related to such finding 164 and recommendation. Following the public notice and comment period, 165 the secretary shall forward the board's finding and recommended 166 designation and a report regarding the comments received in this regard 167 to the Governor. Following the receipt of such documentation from the 168 secretary, the Governor may approve or disapprove the board's 169 recommended designation. 170 Sec. 5. Section 7-576i of the general statutes is repealed and the 171 following is substituted in lieu thereof (Effective July 1, 2025): 172 (a) Any designated tier II, III [,] or IV municipality shall be eligible to 173 receive funding from the Municipal Restructuring Fund, which fund 174 shall be nonlapsing. A designated tier II, III or IV municipality seeking 175 such funds shall submit, for approval by the Secretary of the Office of 176 Policy and Management, a plan detailing its overall restructuring plan, 177 including local actions to be taken and its proposed use of such funds. 178 Raised Bill No. 6833 LCO 3844 7 of 11 Notwithstanding section 10-262j, a municipality may, as part of such 179 plan and in consultation with its local board of education, submit a 180 proposed reduction in the minimum budget requirement related to its 181 education budget. The secretary shall consult with the Commissioner of 182 Education in approving or rejecting such proposed reduction. The 183 secretary shall consult with the Municipal Accountability Review Board 184 in making distribution decisions and attaching appropriate conditions 185 thereto, including the timing of any such distributions and whether such 186 funds shall be distributed in the form of a municipal restructuring fund 187 loan subject to repayment by the municipality. The distribution of such 188 assistance funds shall be based on the relative fiscal needs of the 189 requesting municipalities. The secretary may approve all, none or a 190 portion of the funds requested by a municipality. In attaching 191 conditions to such funding, the secretary shall consider the impact of 192 such conditions on the ability of a municipality to meet legal and other 193 obligations. The board shall monitor and report to the secretary on the 194 use of such funds and adherence to the conditions attached thereto. The 195 secretary shall develop and issue guidance on the (1) administration of 196 the Municipal Restructuring Fund, (2) criteria for participation by 197 municipalities and requirements for plan submission, and (3) 198 prioritization for the awarding of assistance funds pursuant to this 199 section. Any municipality that receives funding from the Municipal 200 Restructuring Fund, in addition to the other responsibilities and 201 authority given to the board with respect to designated tiers II, III and 202 IV municipalities, shall be required to receive board approval of its 203 annual budgets. 204 (b) The secretary may distribute funds from the Municipal 205 Restructuring Fund to a third party on behalf of a designated tier II, tier 206 III or tier IV municipality. Funds received by a municipality pursuant to 207 this section may be used, in part, to pay an arbitrator selected pursuant 208 to clause (v) of subdivision (3) of subsection (a) of section 7-576e. 209 (c) Notwithstanding the provisions of subsection (a) of this section, 210 in making distributions from the Municipal Restructuring Fund, the 211 board shall give immediate consideration to any municipality that shall 212 Raised Bill No. 6833 LCO 3844 8 of 11 default on debt obligations by January 1, 2018, without an immediate 213 distribution of such funds. 214 Sec. 6. Subdivision (3) of subsection (c) of section 7-622 of the general 215 statutes is repealed and the following is substituted in lieu thereof 216 (Effective July 1, 2025): 217 (3) If the administrator determines that an applicant requesting 218 assistance to pay for repairs to real property is eligible, (A) a licensed 219 home inspector or insurance adjuster with whom the Office of the 220 Comptroller has executed a contract for services, or (B) at such eligible 221 applicant's option, a licensed home inspector or insurance adjuster with 222 experience assessing flood damage who is approved by the 223 administrator and hired by such eligible applicant, shall evaluate the 224 damage to the applicant's property and provide a report concerning 225 such damage to the administrator. Such report shall be in a form and 226 manner prescribed by the administrator, and shall include, but need not 227 be limited to, a description of the damage to such eligible applicant's 228 property and the estimated cost to repair such damage. Not later than 229 thirty days after the receipt of such report, the administrator may award 230 a grant, in accordance with a formula established by the Comptroller, to 231 the eligible applicant, or at the administrator's discretion, provide such 232 grant to a contractor or vendor selected by the applicant to repair such 233 damage. Such formula shall include a reduction in the amount of any 234 such grant equal to any payments received by the applicant pursuant to 235 any claim made against a property and casualty insurance policy held 236 by such applicant for such damage. 237 Sec. 7. Subsection (b) of section 8-216a of the general statutes is 238 repealed and the following is substituted in lieu thereof (Effective July 1, 239 2025): 240 (b) Any modification, amendment [,] or replacement of a contract 241 already in existence on or before October 1, 1973, shall not be subject to 242 the provisions of subsection (a) of this section without the mutual 243 consent of the parties thereto. 244 Raised Bill No. 6833 LCO 3844 9 of 11 Sec. 8. Subsection (a) of section 12-170d of the general statutes is 245 repealed and the following is substituted in lieu thereof (Effective July 1, 246 2025): 247 (a) Beginning with the calendar year 1973 and for each calendar year 248 thereafter, any renter of real property, or of a mobile manufactured 249 home, as defined in section 12-63a, which such renter occupies as his or 250 her home, who meets the qualifications set forth in this section, shall be 251 entitled to receive in the following year in the form of direct payment 252 from the state, a grant in refund of utility and rent bills actually paid by 253 or for such renter on such real property or mobile manufactured home 254 to the extent set forth in section 12-170e. Such grant by the state shall be 255 made upon receipt by the state of a certificate of grant with a copy of the 256 application therefor attached, as provided in section 12-170f. If the rental 257 quarters are occupied by more than one person, it shall be assumed for 258 the purposes of this section and sections 12-170e and 12-170f that each 259 of such persons pays his or her proportionate share of the rental and 260 utility expenses levied thereon and grants shall be calculated on that 261 portion of utility and rent bills paid that are applicable to the person 262 making application for grant under said sections. For purposes of this 263 section and sections 12-170e and 12-170f, a married couple shall 264 constitute one tenant, and a resident of cooperative housing shall be a 265 renter. To qualify for such payment by the state, the renter shall meet 266 qualification requirements in accordance with each of the following 267 subdivisions: (1) (A) At the close of the calendar year for which a grant 268 is claimed be sixty-five years of age or over, or his or her spouse who is 269 residing with such renter shall be sixty-five years of age or over, at the 270 close of such year, or be fifty years of age or over and the surviving 271 spouse of a renter who at the time of his or her death had qualified and 272 was entitled to tax relief under this chapter, provided such spouse was 273 domiciled with such renter at the time of his or her death, or (B) at the 274 close of the calendar year for which a grant is claimed be under age 275 sixty-five and eligible in accordance with applicable federal regulations, 276 to receive permanent total disability benefits under Social Security, or if 277 such renter has not been engaged in employment covered by Social 278 Raised Bill No. 6833 LCO 3844 10 of 11 Security and accordingly has not qualified for Social Security benefits 279 but has become qualified for permanent total disability benefits under 280 any federal, state or local government retirement or disability plan, 281 including the Railroad Retirement Act and any government-related 282 teacher's retirement plan, determined by the Secretary of the Office of 283 Policy and Management to contain requirements in respect to 284 qualification for such permanent total disability benefits which are 285 comparable to such requirements under Social Security; (2) shall reside 286 within this state and shall have resided within this state for at least one 287 year or such renter's spouse who is domiciled with such renter shall 288 have resided within this state for at least one year and shall reside within 289 this state at the time of filing the claim and shall have resided within this 290 state for the period for which claim is made; (3) shall have taxable and 291 nontaxable income, the total of which shall hereinafter be called 292 "qualifying income", during the calendar year preceding the filing of 293 such renter's claim in an amount of not more than twenty thousand 294 dollars, jointly with spouse, if married, and not more than sixteen 295 thousand two hundred dollars if unmarried, provided such maximum 296 amounts of qualifying income shall be subject to adjustment in 297 accordance with subdivision (2) of subsection (a) of section 12-170e, and 298 provided the amount of any Medicaid payments made on behalf of the 299 renter or the spouse of the renter shall not constitute income; and (4) 300 shall not have received financial aid or subsidy from federal, state, 301 county or municipal funds, excluding Social Security receipts, 302 emergency energy assistance under any state program, emergency 303 energy assistance under any federal program, emergency energy 304 assistance under any local program, payments received under the 305 federal Supplemental Security Income Program, payments derived 306 from previous employment, veterans and veterans disability benefits 307 and subsidized housing accommodations, during the calendar year for 308 which a grant is claimed, for payment, directly or indirectly, of rent, 309 electricity, gas, water and fuel applicable to the rented residence. 310 Notwithstanding the provisions of subdivision (4) of this subsection, a 311 renter who receives cash assistance from the Department of Social 312 Services in the calendar year prior to that in which such renter files an 313 Raised Bill No. 6833 LCO 3844 11 of 11 application for a grant may be entitled to receive such grant provided 314 the amount of the cash assistance received shall be deducted from the 315 amount of such grant and the difference between the amount of the cash 316 assistance and the amount of the grant is equal to or greater than ten 317 dollars. Funds attributable to such reductions shall be transferred 318 annually from the appropriation to the Office of Policy and 319 Management, for tax relief for elderly renters, to the Department of 320 Social Services, to the appropriate accounts, following the issuance of 321 such grants. Notwithstanding the provisions of subsection (b) of section 322 12-170aa, the owner of a mobile manufactured home may elect to 323 receive benefits under section 12-170e in lieu of benefits under said 324 section 12-170aa. 325 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2025 4-124s(a) Sec. 2 July 1, 2025 7-339hh Sec. 3 July 1, 2025 7-393 Sec. 4 July 1, 2025 7-576e(a)(2) Sec. 5 July 1, 2025 7-576i Sec. 6 July 1, 2025 7-622(c)(3) Sec. 7 July 1, 2025 8-216a(b) Sec. 8 July 1, 2025 12-170d(a) PD Joint Favorable