You asked for a summary of sHB 6570, An Act Concerning Plans of Conservation and Development, favorably reported by the Planning and Development Committee.

SUMMARY

The bill makes many changes to the requirements and processes for preparing state, regional, and local land-use plans. It expands the requirements for the state Plan of Conservation and Development (Plan of C&D). It requires regional planning agencies (RPAs) to revise their existing plans of development by July 1, 2008 and at least once every 10 years. It modifies the plan adoption process and requires the plans to (1) identify any inconsistencies with six growth management principles, which are included in the current draft state Plan of C&D and (2) note on the record any inconsistencies with the state Plan of C&D and the reasons for them. It expands the contents of local plans of C&D, requires that they address the six growth management principles, modifies the process by which they are adopted, and establishes a process under which anyone may submit a proposal to the planning commission to request a change to the plan.

The bill establishes a process for Office of Policy and Management (OPM) to designate priority funding areas, subject to legislative approval. It generally restricts state funding for growth-related projects to such areas and establishes criteria for targeting state funding for such projects.

Finally, the bill requires the OPM secretary, within available funds, to coordinate the review of federal projects in relation to their location in priority funding areas to encourage the location of these projects in urban areas in accordance with a federal executive order.

The bill takes effect July 1, 2005.

STATE PLAN OF C&D

The law requires OPM to prepare the state Plan of C&D for legislative approval every five years. The bill requires that future plans describe the progress made in achieving the goals and objectives of the last plan. Future plans must also:

1. identify areas where it is prudent and feasible to have mixed use development patterns and land reuse that is compact, accessible to transit, and pedestrian-oriented and promote such patterns and reuse;

2. identify priority funding areas (described below); and

3. identify corridor management areas on either side of a limited access highway or a rail line.

In designating corridor management areas, the OPM secretary must make recommendations that:

1. promote land use and transportation options to reduce the growth of traffic congestion,

2. connect infrastructure and other development decisions,

3. promote development that minimizes the cost of new infrastructure facilities and maximizes the use of existing facilities, and

4. increase intermunicipal and regional cooperation.

The bill requires that the secretary post the draft and adopted plans on the state website.

REGIONAL PLAN OF DEVELOPMENT

By law, RPAs must adopt a plan of development. The bill requires that they do so at least once every 10 years. It also requires RPAs to revise their existing plans by July 1, 2008.

The bill requires the plan to identify areas where it is prudent and feasible to have mixed use development patterns and land reuse that is compact, accessible to transit, and pedestrian-oriented and promote such patterns and reuse. It also requires the plan identify any inconsistencies with the following growth management principles:

1. redevelop and revitalize regional centers and areas of mixed land uses with existing or planned physical infrastructure;

2. expand housing opportunities and design choices to support the viability of transportation options;

3. concentrate development around transportation nodes and along major transportation corridors to support the viability of transportation options and land reuse;

4. conserve and restore the natural environment, cultural and historical resources, and traditional rural lands;

5. protect environmental assets critical to public health and safety; and

6. integrate planning across all levels of government to address issues on a local, regional, and statewide basis.

The bill also requires that the plan include the RPAs’s recommendations for the use of land for agriculture.

By law, the RPA must hold a public hearing on its draft plan. The bill requires that the RPA post the plan on its website at least 65 days before the hearing. It requires the RPA to submit the draft plan to OPM for findings in the form of comments and recommendations, rather than giving OPM notice of the public hearing. The findings have to include a review of whether the draft is not inconsistent with the state Plan of C&D. The RPA must note on the record any inconsistencies and the reasons for them. The RPA must notify the OPM secretary of any such inconsistencies in the adopted plan and the reasons for them.

The RPA must post the plan its website if it has one.

LOCAL PLANS OF C&D

Contents

By law, a local planning commission must prepare or amend a plan of C&D for its municipality every 10 years. The bill requires the plans to (1) identify where it is feasible and prudent to have mixed use development patterns and land reuse that are compact, transit accessible, pedestrian-oriented and (2) promote such patterns and reuse. The bill requires the commission to consider focusing development and revitalization in areas with existing or planned infrastructure in preparing the plan.

The bill requires the plans, in addition to their existing components, to provide for a system of thoroughfares, parkways, bridges, streets, sidewalks, and other public ways as appropriate, rather than just including the commission’s recommendations for these facilities. It requires the commission, in developing the plan, to consider theprotection and preservation of agriculture in addition to other factors it must consider. It allows the plan to include the commission’s recommendations for corridor management areas and proposed priority funding areas (described below).

By law, the plan must include the commission’s recommendations for how the land in the municipality should be used. The bill explicitly requires that the plan include a map with such proposed uses. It also specifically allows the plan to include the commission’s recommendations regarding the location, relocation, and improvement of schools (the provision already applies to public buildings).

Under current law, the local commission must note any inconsistencies with the state Plan of C&D. The bill instead requires the commission to note any inconsistencies with the six growth management principles listed above.

Adoption Process

By law, the commission must hold a hearing on the plan. The bill requires that the commission submit the plan to the RPA 35, rather than 65, days before the hearing on adopting the plan. It also requires the commission to post the draft plan on the municipality’s website (if there is one) by the new deadline. The bill requires the RPA’s advisory report back to the commission to include findings regarding the local plan’s consistency with the state Plan of C&D, the regional plan of development, and the local plans of C&D of other municipalities in the RPA’s area. The commission may revise the draft plan in accordance with the RPA’ report, but may make a decision on the plan without the report.

The bill explicitly allows the commission to revise its plan in accordance with the RPA’s report.

The bill eliminates:

1. the requirement for the commission to submit the plan to the municipality’s legislative body for its review at least 65 days before the public hearing,

2. the legislative body’s authority to hold a hearing on the plan at this stage and the requirement that the body submit its comments to the commission before the hearing on the plan’s adoption,

3. the provision that deems the legislative body’s failure to report before by the hearing date as its approval of the plan, and

4. the legislative body’s authority to hold a hearing on the adopted plan and to adopt a resolution on endorsing the plan.

Instead, the bill allows the commission to revise its draft plan after its public hearing and requires that the proposed final plan be submitted to the legislative body for its endorsement. The legislative body must endorse or reject the plan or parts of it. It may submit comments and recommended changes to the commission.

In towns where the town meeting is the legislative body, the proposed final plan goes to the board of selectmen, which may hold a hearing on it. The town meeting may endorse or reject the plan or parts of it and submit comments and recommendations on it.

By law, even if the legislative body does not endorse all or part of the plan, the commission can still adopt it by a vote of at least two-thirds of its members.

Under the bill, once the plan is adopted, it must be posted on the municipality’s website (if there is one). The commission must notify the OPM secretary of any inconsistencies between the final plan and the state Plan of C&D and the reasons for them.

Amendments to the Plan

The bill allows any property owner or tenant in the muncipality, or his agent, to submit a proposal to the commission to request a change to the plan. The proposal must be in writing and on a form prescribed by the commission. The commission must decide whether to hold a hearing on the proposal within 35 of receiving it. It must hold a hearing if it determines that it is in the public interest.

The commission must approve, deny, or modify the proposal by the deadline that already applies to other petitions (usually 65 days after the hearing ends). If the commission determines at any time that the proposal would be a significant change to the policies and goals of the local plan, it must consider the proposal in the same way it considers plan revisions, as discussed above.

PRIORITY FUNDING AREAS

Designation

Under the bill, the OPM secretary must develop recommendations for setting and revising boundaries for priority funding areas. He must consult with RPAs and the economic and community development, environmental protection, public works, agriculture, and transportation commissioners in doing this.

In making his recommendations, the secretary must consider:

1. regional centers, growth areas, neighborhood conservation areas, and rural community centers as designated in the state Plan of C&D;

2. redevelopment areas, distressed municipalities, targeted investment communities, public investment communities, and enterprise zones; and

3. corridor management areas identified in the state Plan of C&D.

The secretary must submit his recommendations to the Continuing Legislative Committee on State Planning and Development for its review in conjunction with its review of the state Plan of C&D. (The last version of the plan was approved in March 2005; the next approval will take place in 2010). The boundaries of the priority funding areas become effective upon the approval of the legislature.

Once the areas are designated, each state agency and department must review its regulations and modify them to carry out coordinated management of growth-related projects in priority funding areas. Each agency, department, and institution must cooperate with municipalities to ensure that programs and activities in rural areas sustain village character.

State Funding for Growth-Related Projects

Once the boundaries are established, state agencies, departments, and institutions generally cannot provide funding for growth-related projects outside of the priority funding areas. Funding includes any form of assurance, guarantee, grant, credit, tax credit, loan, loan guarantee, or reduction in the principal or interest rate on all or part of a loan.

Growth-related projects are those that include:

1. acquisition of real property, other than open space for conservation or preservation purposes, with an acquisition cost over $ 100,000;

2. development or improvement of real property where the development costs exceed $ 100,000; and

3. acquisition of public transportation facilities or equipment costing more than $ 100,000;

Growth-related projects also include the authorization of state grants of more than $ 100,000, if the grant application is not pending on July 1, 2006, to (1) acquire, develop, or improve real property or (2) acquire public transportation equipment or facilities.

Any project, funding, or other state assistance, other than described above, is not subject to the financing restrictions. In addition grant programs are not subject to the restrictions if the grant is for:

1. school construction projects funded by the Department of Education;

2. maintaining, repairing, adding to, or renovating existing facilities;

3. acquiring land for telecommunications towers whose primary purpose is public safety;

4. parks, conservation and open space;

5. acquiring agricultural, conservation, and historic easements;

6. housing that the economic and community development commissioner determines will promote fair housing choice and racial and economic integration; and

7. projects at an existing facility that needed to comply with state environmental or health standards.

In addition, grant funding by the Department of Economic and Community Development (DECD) is not considered a growth-related project under certain circumstances. To be exempt, the grant must be used for a project (1) financed with federal funds to purchase or rehabilitate existing single or multifamily housing or (2) financed by revenue bonds. In addition, the DECD commissioner must determine that applying these sections of the bill would (1) conflict with state or federal law regarding the issuance or tax-exempt status of bonds or a provision of a trust agreement between DECD and trustees or (2) prohibit financing of an existing project or financing provided to cure or prevent a default under existing financing.

Funding Projects Outside of Priority Funding Areas

State funding of growth-related projects is allowed outside of priority funding areas if the head of the funding agency, with OPM approval, determines that it is consistent with the local Plan of C&D and that the project:

1. enhances other activities targeted by state agencies, departments, or institutions to a municipality within a priority funding area;

2. is located in a distressed municipality, targeted investment community, or public investment community;

3. supports existing neighborhoods or communities;

4. promotes the use of mass transit;

5. provides for mixed use development patterns and land reuse that is compact, transit accessible, and pedestrian oriented, and promotes such patterns and land reuse;

6. has no reasonable alternate site in a priority funding area;

7. must be located away from other developments due to its operational or physical characteristics; or

8. is for the reuse or redevelopment of an existing site.

In addition, it appears that the bill allows for funding projects outside of priority areas if the extreme inequity, hardship, or disadvantage of not funding the projects clearly outweighs the benefits of locating the project within such areas.

Within one year after the areas are designated and annually thereafter, every department, agency, and institution must prepare a report that describes grants for growth-related projects made under these provisions.

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