Connecticut Seal

General Assembly


Raised Bill No. 6585

January Session, 2009


LCO No. 4121



Referred to Committee on Planning and Development


Introduced by:


(PD )



Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2009) (a) As used in this section, "legislative body" means the council, commission, board, body or town meeting, by whatever name it may be known, having or exercising the general legislative powers and functions of a municipality and "municipality" means any town, city or borough, consolidated town and city or consolidated town and borough.

(b) Notwithstanding any provision of the general statutes or any special act, municipal charter or home rule ordinance, the chief elected officials of two or more municipalities that are members of the same federal economic development district, established under 42 USC 3171, may initiate a process for such municipalities to enter into an agreement to promote regional economic development and share fifty per cent of the real and personal property tax revenue from new economic development. Such agreement shall provide that the municipalities agree not to compete for new economic development and shall specify the types of new economic development projects subject to the agreement. The agreement shall also have terms providing for (1) identification on the plan of conservation and development, adopted under section 8-23 of the general statutes, of areas for (A) new economic development, (B) open space and natural resource preservation, and (C) transit oriented development, including housing; (3) capital improvements, including the shared use of buildings and other capital assets; (4) regional energy consumption, including strategies for cooperative energy use and development of distributive generation and sustainable energy projects; and (5) promotion and sharing of arts and cultural assets. The agreement shall also include terms providing for at least three municipal cooperative programs and at least three educational cooperative programs, including, but not limited to, the following: (A) Collective bargaining, (B) purchasing cooperatives, (C) health care pooling with each other or the state, (D) regional shared school curriculum and special education services, through regional economic education centers, established under section 10-66a of the general statutes, and (E) any other initiatives mutually agreed upon. Each municipality that is party to the agreement shall participate in at least one municipal cooperative program and one educational cooperative program. The provisions of this section shall not be construed to require that each municipality that is party to the agreement shall be required to participate in municipal cooperative program and educational cooperative programs.

(c) The agreement shall be prepared pursuant to negotiations and shall contain all provisions on which there is mutual agreement between the municipalities. The mill rate used to determine the amount of taxes imposed on such new economic development shall be the mill rate of the municipality in which the development is located. The municipality in which property with new economic development is located that is subject to shared revenue pursuant to an agreement under this section shall maintain a separate list describing such properties.

(d) The agreement shall establish procedures for amendment, termination and withdrawal. The negotiations shall include an opportunity for public participation. The agreement shall be approved by each municipality that is a party to the agreement by resolution of the legislative body.

Sec. 2. (NEW) (Effective October 1, 2009) The board of directors of each federal economic development district, established under 42 USC 3171, shall send a copy of the regional economic development plan for such district to the Secretary of the Office of Policy and Management. The secretary shall approve such plan not more than thirty days after receipt of such plan.

Sec. 3. (NEW) (Effective October 1, 2009) The municipalities that are a party to an agreement approved under section 1 of this act shall send a copy of such agreement to the Secretary of the Office of Policy and Management. Not more than thirty days after receipt of such plan, the secretary shall make a written determination as to whether or not the agreement is consistent with the requirements of said section 1. The secretary shall send a copy of his determination to each municipality that is a party to the agreement and the Commissioner of Revenue Services.

Sec. 4. (NEW) (Effective October 1, 2009) Notwithstanding the provisions of the general statutes, the Commissioner of Revenue Services and each municipality participating in an agreement entered into under the provisions of section 1 of this act that has been determined to be consistent with said section 1 shall enter into a memorandum of understanding to segregate not more than one-sixth of one per cent of the amount of the sales and use tax under chapter 219 of the general statutes from any state tax that is derived from income, items or transactions that occur in the municipalities that are a party to the agreement.

Sec. 5. Section 4-124d of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

The council shall consider such matters of a public nature common to two or more members of the council as it deems appropriate, including matters affecting transportation and the health, safety, welfare, education and economic conditions of the area comprised by its members. The council shall identify opportunities and obstacles to interlocal agreements that promote regional cooperation. The council shall promote cooperative arrangements, including agreements between towns entered into pursuant to section 1 of this act, and coordinate action among its members and make recommendations therefor to the members and such other public agencies as exist or perform functions within the region or regions.

Sec. 6. (Effective July 1, 2009) The sum of one million dollars is appropriated to the Office of Policy and Management, from the General Fund, for the fiscal year ending June 30, 2010, for grants to regional planning agencies to facilitate multi-municipal agreements pursuant to this act.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2009

New section

Sec. 2

October 1, 2009

New section

Sec. 3

October 1, 2009

New section

Sec. 4

October 1, 2009

New section

Sec. 5

October 1, 2009


Sec. 6

July 1, 2009

New section

Statement of Purpose:

To promote regional cooperation among towns through voluntary incentive programs whereby (1) towns agree on the location of future economic development and not to compete for new economic development, (2) share in property taxes generated from new economic development, and (3) receive a share of the sales and use tax revenue.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]