SB 361 — AN ACT CONCERNING FEES IN LIEU OF SIDEWALK REQUIREMENTS.

Senate General Assembly RaisedFile Bill No.

361295 February Session, 2026 LCOSenate Bill No.

1974361 ReferredSenate, toApril 1, 2026 The Committee on PLANNINGPlanning ANDand DEVELOPMENTDevelopment Introducedreported by:through SEN.

(PD)RAHMAN ANof ACTthe CONCERNING4th FEESDist., INChairperson LIEUof OFthe SIDEWALKCommittee REQUIREMENTS.on the part of the Senate, that the bill ought to pass.

AN ACT CONCERNING FEES IN LIEU OF SIDEWALK REQUIREMENTS.

(c)SB361 Any/ suchFile regulations may limit the areas of the municipality in LCO 1974 1 of 2 Raised Bill No.

361295 which1 aSB361 feeFile inNo. lieu of public sidewalk requirements may be considered.

295 (c) Any such regulations may limit the areas of the municipality in which a fee in lieu of public sidewalk requirements may be considered.

Section 1 October 1, 2026 New section PD Joint Favorable LCOSB361 1974/ 2File ofNo. 2

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295 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

Municipalities Effect FY 27 $ FY 28 $ Various Municipalities Potential Potential Potential Revenue Gain Explanation The bill allows municipalities to include a fee in their zoning regulations that developers can pay in lieu of sidewalk construction if it meets certain criteria.

This results in a potential revenue gain to municipalities beginning in FY 27 to the extent fees are paid.

Any revenue gain is dependent on the number of fees in lieu of sidewalk construction and the amount.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of fees.

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295 OLR Bill Analysis SB 361 AN ACT CONCERNING FEES IN LIEU OF SIDEWALK REQUIREMENTS.

SUMMARY This bill broadly allows municipal planning and zoning commissions to include provisions in their zoning and subdivision regulations allowing a developer to pay a fee in lieu of sidewalk construction (FILOS), under certain conditions.

The authority extends to commissions regardless of any conflicting special acts.

(Some municipalities exercise land use powers under a special act, rather than the statutes.) In practice, some Connecticut municipalities have interpreted state law as allowing FILOS provisions in zoning regulations.

State law does not allow FILOS provisions in subdivision regulations.

EFFECTIVE DATE:

October 1, 2026 FILOS PROVISIONS ALLOWED The bill allows planning and zoning commissions to include FILOS provisions in their regulations.

This means that local zoning or subdivision regulations may include provisions allowing an applicant (developer) to ask to pay a fee instead of complying with regulations on public sidewalk construction and maintenance.

But commissions may accept a FILOS only if the sidewalk required by regulations would be unnecessary or impractical for the proposed development.

Under the bill, FILOS regulations must include a formula or schedule for setting the fee.

Regulations may limit when a developer can ask to pay a FILOS by specifying that the commission will only consider them in certain areas of the town.

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295 Using Collected Fees Any collected FILOS must be put in a fund that is only used to pay for public sidewalk construction and maintenance.

Municipalities must approve spending from the fund in the same way they approve other capital projects.

The bill specifies that (1) income earned on deposited FILOS accrues to the fund and (2) the fund cannot be used for operating expenses or be deemed part of the municipality’s general fund.

COMMITTEE ACTION Planning and Development Committee Joint Favorable Yea 13 Nay 8 (03/13/2026) SB361 / File No.

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