PA 18-110—sHB 5283

Planning and Development Committee

Appropriations Committee

AN ACT CONCERNING NEIGHBORHOOD REVITALIZATION ZONES

SUMMARY: This act requires municipalities to defend and indemnify neighborhood revitalization zone (NRZ) committees and their members under specified circumstances. Its provisions apply to NRZ planning committees and NRZ committees. NRZ planning committees are responsible for preparing a strategic plan for revitalizing the neighborhood and NRZ committees are established to implement the planning committee's strategic plan after the municipality adopts it (CGS 7-601 & -602).

The state's NRZ program helps neighborhood residents and businesses develop and implement plans to revitalize economically- and socially-distressed neighborhoods. NRZs are municipally designated. Under the NRZ statutes, municipalities can, among other things, (1) take property by eminent domain and (2) request the appointment of a rent receiver to enable the correction of code violations (CGS 7-600 et seq.).

EFFECTIVE DATE: July 1, 2018

REQUIRED DEFENSE AND INDEMNIFICATION

The act requires municipalities to defend and indemnify a NRZ committee (including a planning committee) and its members in any civil action arising out of an act, error, or omission made while exercising the committee or members' responsibilities for developing or implementing a strategic plan. The indemnification requirement applies to judgments or settlements.

Municipalities must defend committees and members if they act:

1. within the scope of their official capacity;

2. in a manner consistent with advice from the municipality's legal counsel; and

3. in the case of planning committees, in accordance with the committee's bylaws and any municipally-approved master plan.

Municipalities need not indemnify (1) planning committees or their members if their acts, errors, or omissions constitute reckless, willful, or wanton misconduct or (2) NRZ (implementation) committee members if their acts, errors, or omissions constitute reckless, willful, or wanton misconduct.