Table of Contents Sec. 32-56. (Formerly Sec. 32-9a). Defense conversion. Determination of severe impact of defense contract cutbacks on a municipality by the commissioner.
(a) In view of the contemplated reduction in defense expenditures by the federal government and the fact that Connecticut ranks first in the nation on a per capita basis in defense
contracts awarded, the department shall engage special agent technologists who shall
take steps to assist medium and small manufacturers to find solutions for the problems
related to defense conversion and in executing adaptation to new technologies. Such
assistance shall be made available to medium-sized and small companies which lack
sufficient resources to keep abreast of new technologies in fields allied to their own or
in entering new markets not oriented to defense production. Sec. 32-57. Determination by commissioner of severe impact of defense contract cutbacks on a business. The Commissioner of Economic and Community Development may determine that the employment opportunities offered by a business in the
state have been severely impacted by a prime defense contract cutback. The commissioner shall make such a determination only after a public hearing, at which hearing
information shall be submitted to support findings required by this section. In making
such determination the commissioner may require the submission by such business of
all books, records, documents, drawings, specifications, certifications and other evidentiary items which it deems appropriate. In determining that employment opportunities
offered by a business in this state have been severely impacted by a prime defense
contract cutback the commissioner shall find that: Sec. 32-58. Department to advise local governments. Commissioner to report
annually on defense dependency. The Department of Economic and Community Development shall advise and cooperate with any municipal or regional agency, commission or authority responsible for economic planning in order to formulate and implement
plans to reduce the dependency of a municipal or regional economy on prime defense
contracts and to alleviate the effects of a possible prime defense contract cutback. The
Commissioner of Economic and Community Development shall submit on or before
September first of each year to the Governor and the General Assembly a report which
evaluates the extent to which the economy of the state is dependent on prime defense
contracts, designates the municipalities or regions whose economies are particularly
dependent on prime defense contracts, describes the adequacy of the steps being taken
to meet potential problems resulting from such dependency and shall include recommendations as to the need for further legislative and administrative action to reduce such
dependency and to aid areas which have been or may be impacted by prime defense
contract cutbacks.
Sec. 32-56. (Formerly Sec. 32-9a). Defense conversion. Determination of severe impact of
defense contract cutbacks on a municipality by the commissioner.
Sec. 32-57. Determination by commissioner of severe impact of defense contract cutbacks
on a business.
Sec. 32-58. Department to advise local governments. Commissioner to report annually on
defense dependency.
Sec. 32-59. Defense readjustment task force.
(b) It is found and declared that Connecticut ranks very high among the states on
a per capita basis in the amounts of prime defense contracts awarded; that the economies
of many areas in the state and the employment opportunities offered by many businesses
in the state are heavily defense-dependent and would suffer severe adverse impacts in
the event of prime defense contract cutbacks; that, in the event that defense-dependent
areas or businesses in the state were severely impacted by a prime defense contract
cutback, there would be a serious need for non-defense-related industrial and commercial development and activity in such areas or by such businesses to provide and maintain
employment and tax revenues; that private and public capital investment in the construction, renovation, and expansion of nondefense manufacturing and other industrial facilities will best contribute to maintaining employment and the existing tax base and to the
development of a wider-based and more balanced economy in the state; and that the tax
and other financial incentives provided by this section to encourage such public and
private investment in businesses and municipalities severely impacted by prime defense
contract cutbacks, are important and necessary applications of the resources of the state
in the exercise of its responsibility to preserve the health, safety and general welfare in
the state of its people; and therefore the necessity, in the public interest and for the public
benefit and good, of the provisions of this section is hereby declared as a matter of
legislative determination.
(c) The commissioner may determine that the economy of a municipality has been
severely impacted by a prime defense contract cutback. The commissioner shall make
such a determination only after a public hearing, at which hearing information shall be
submitted to support the findings required by this section.
(d) In determining that a municipality has been severely impacted by a prime defense contract cutback the commissioner shall find that (1) one or more businesses in
the municipality has experienced a cancellation of one or more prime defense contracts,
or subcontracts entered into in connection with prime defense contracts, or a significant
reduction in prime defense contract or related subcontract awards or orders; (2) such
prime defense contract cutback has caused or will cause a loss of employment opportunities in the municipality; (3) such prime defense contract cutback has caused or will cause
a severe adverse impact in the municipality. In making such findings the commissioner
may consider the extent to which the businesses in the municipality are, or were at the
period in time before the prime defense contract cutback occurred, dependent on prime
defense contracts or on subcontracts related to such prime defense contracts; the extent
to which one or more prime defense contractors in the municipality has or plans to
reduce its work force or the amount of defense subcontract awards or orders which would
be performed by businesses in the municipality; the extent to which the unemployed in
the municipality are or were defense workers with specialized skills not easily transferable to other industries; the existence of abandoned or underutilized defense-related
manufacturing facilities in the municipality; and any other factors which the commissioner deems relevant to such finding. The commissioner's determination that a municipality is severely impacted by a prime defense contract cutback shall be effective for
two years from the date of the decision of the commissioner. The commissioner may
renew such determination for another two-year period following a public hearing and
upon making the findings required by this subsection.
(e) Any business facility located in a municipality declared by the commissioner
to be severely impacted by a prime defense contract cutback pursuant to subsection (c)
of this section, which facility would be a "manufacturing facility", as defined in subsection (d) of section 32-9p, but for the fact that the facility is not in a "distressed municipality", as defined in subsection (b) of section 32-9p, will be deemed a manufacturing
facility for the purposes of sections 32-9p to 32-9s, inclusive, section 12-217e, and
subdivisions (59) and (60) of section 12-81, if the purpose of the construction, expansion,
renovation or acquisition of such facility is not dependent on prime defense contracts
or related subcontracts. The provisions of this section shall apply to a business facility
located in a building that was vacant on July 1, 1998, and was formerly used for defense
manufacturing.
(f) Any municipality declared by the commissioner to be severely impacted by a
prime defense contract cutback will be deemed a distressed municipality under sections
8-190 and 8-195 for the purpose of assisting non-defense-dependent projects.
(February, 1965, P.A. 348, S. 1; P.A. 73-599, S. 24; P.A. 79-230; P.A. 80-267, S. 4; P.A. 98-146, S. 4, 5.)
History: P.A. 73-599 replaced Connecticut development commission with department of commerce, here referred to
as "the department" (P.A. 77-614 replaced department of commerce with department of economic development); P.A. 79-
230 added Subsec. (b) re feasibility study; P.A. 80-267 replaced Subsec. (b) provisions with legislative finding and added
Subsecs. (c) to (f); Sec. 32-9a transferred to Sec. 32-56 in 1981; P.A. 98-146 amended Subsec. (e) by applying provisions
to a business facility located in a building vacant on July 1, 1998, effective July 1, 1998, and applicable to assessment
years commencing on and after October 1, 1998.
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(1) The business derives, or derived at the period of time before a prime defense
contract cutback occurred, over fifty per cent of its gross income, generated by operations
within the state, from prime defense contracts or from subcontracts entered into in connection with prime defense contracts, and a significant portion of its facilities and equipment are designed for defense production and cannot be converted to nondefense production without substantial investment;
(2) The business has suffered a cancellation of one or more prime defense contracts
or related subcontracts, or a significant reduction in prime defense contract or related
subcontract awards or orders;
(3) The business has reduced its workforce substantially, or will reduce its workforce substantially, as a result of such cancellation of prime defense contracts or related
subcontracts or of the reduction of prime defense contract or related subcontract awards
or orders.
(P.A. 80-267, S. 8; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)
History: P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development.
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(P.A. 80-267, S. 10; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)
History: P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development.
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