House Bill No. 5390, concerning the Regional Planning Incentive Account, proposes amendments to the distribution of funds to regional councils of governments (COGs) starting from the fiscal year ending June 30, 2026. The bill repeals and replaces subdivision (5) of subsection (b) of section 4-66k, allowing for a total distribution of seven million dollars to be allocated based on a formula determined by the Secretary of the Office of Policy and Management in consultation with the COGs. Each COG will receive a base payment and a per capita payment based on the most recent federal decennial census data. Additionally, each COG will receive two hundred thousand dollars specifically for funding positions related to planning and development of housing, as well as for a regional stormwater management and flood mitigation coordinator position, or a municipal solid waste and recycling coordinator position, or both.

The bill expands the use of the allocated funds by allowing COGs to utilize the two hundred thousand dollars for either or both of the specified coordinator positions, which was previously limited to one position. The language that was deleted from current law included the phrase "or" between the two positions and "and associated costs," which has been replaced with "or both such positions, and any associated costs." This change does not have a fiscal impact on the state or municipalities, as it does not alter the total funds available from the Regional Planning Incentive Account. The effective date for these changes is set for July 1, 2026.