Finds that the preservation and restoration of the character of such a community, and the community's historical and cultural character, are important public policy goals that can be achieved through the creation of community preservation authorities.

Creates community preservation authorities to restore or enhance the health, safety, and well-being of communities adversely impacted by the construction of, or ongoing operation of, multiple major public facilities, public works, and capital projects with significant public funding.

Requires that, by November 15, 2006, the department of community, trade, and economic development shall develop and report to the appropriate committees of the legislature recommendations for a community preservation authorities program. The department shall develop the recommendations within existing resources and shall consult with at least one community that has an interest in forming such an authority. The recommendations must include statutory and budgetary elements needed to support the program and must address operational issues, including: (1) The appointing authority and process by which community preservation authority board members are named;

(2) State agencies that should be considered for designation as the single point of contact;

(3) The means for establishing the authorities' eligibility for grant and loan programs;

(4) How the community preservation authorities program should address the potential impacts of major public facilities, public works, and capital projects sited within and adjacent to the community's geographic boundaries; and

(5) Any other issues that must be resolved in order to operate the program.