Table of Contents Sec. 32-220. Short title: Economic Development and Manufacturing Assistance Act of 1990. Sections 32-220 to 32-234, inclusive, shall be known and may be
cited as the "Economic Development and Manufacturing Assistance Act of 1990". Sec. 32-221. Declaration of policy. It is found and declared that the maintenance
and continued development of the state's manufacturing sector is important to the economic welfare of the state and to the retention and creation of job opportunities within
the state; that the manufacturing sector of the state's economy is facing increased competition from other geographic areas of the world; that assistance from the state can promote
the retention, expansion, and diversification of existing manufacturing businesses and
encourage manufacturing and other economic base businesses from other geographic
areas to locate into the state; that assistance from the state can enhance employment
opportunity and the tax base of communities, particularly in the state's more economically disadvantaged communities; that the economic competitiveness of manufacturing
and other economic base businesses is dependent in part upon the provision of adequate
business support services such as day care, job training, education, transportation, employee housing, energy conservation, pollution control and recycling; that state assistance to promote the retention and expansion and increase the competitiveness of manufacturing and other economic base businesses is an important function of the state and
is a public use for which public moneys may be expended; that in certain cases assistance
and encouragement of diversification of manufacturing businesses within the state may
promote the economic welfare of the state and is a public use and purpose for which
public moneys may be expended; that the participation and cooperation of the state's
agencies and authorities in providing financial assistance will improve the timeliness
and decrease the costs to businesses of providing such assistance; and therefore the
necessity in the public interest and for the public benefit and good for the provisions
of sections 32-220 to 32-234, inclusive, is hereby declared as a matter of legislative
determination. Sec. 32-222. Definitions. As used in sections 32-220 to 32-234, inclusive: Sec. 32-222a. Office of Defense Diversification established in the Department
of Economic and Community Development to provide financial assistance for defense diversification projects. There is established within the Department of Economic
and Community Development, for the period from July 1, 1991, to June 30, 1996, inclusive, an Office of Defense Diversification for purposes of providing financial assistance,
as defined in section 32-222, for defense diversification projects, as defined in said
section, especially with respect to such projects in areas such as southeastern Connecticut. Financial assistance for defense diversification projects shall be subject to the approval provisions in section 32-223, including for purposes of such provisions cooperation by said Office of Defense Diversification, the Connecticut Development Authority
and Connecticut Innovations, Incorporated. Such financial assistance may be provided
for any of the following purposes related to a defense diversification project: Sec. 32-223. Application for financial assistance. (a) An eligible applicant shall
submit an application for financial assistance to the commissioner on forms provided
by the commissioner and with such information the commissioner deems necessary,
including, but not limited to: (1) A description of the proposed project; (2) an explanation
of the expected benefits of the project in relation to the purposes of sections 32-220 to
32-234, inclusive; (3) information concerning the financial and technical capacity of
the eligible applicant to undertake the proposed project; (4) a project budget, and (5)
identification, when appropriate, of business support services that may be of benefit to
the state and the manufacturing and economic base businesses located or locating in the
project area as part of the project. In the case of a municipal development project the
eligible applicant shall, in addition to an application for financial assistance, submit a
development plan prepared pursuant to subsection (b) of section 32-224 and approved
by the commissioner, provided an eligible applicant may, prior to the submission of a
development plan, receive financial assistance for activities related to the planning of
a municipal development project to the extent such assistance is provided for under
subsection (b) of this section. Sec. 32-224. Designation of development agency. Project plan. Adoption of
plan. Readjustment, relocation and removal of public service facilities. (a) Any
municipality which has a planning commission may, by vote of its legislative body,
designate an implementing agency to exercise the powers granted under sections 32-
220 to 32-234, inclusive. Any municipality may, with the approval of the commissioner,
designate a separate implementing agency for each municipal development project undertaken by such municipality pursuant to said sections. Sec. 32-225. Acquisition and transfer of real property. General powers of
agency. (a) In connection with a municipal development project or a business development project, the municipality or where appropriate, an implementing agency, may,
with the approval of the legislative body of the municipality and of the commissioner
if any financial assistance was given for such project under section 32-223, transfer by
sale or lease all or any part of the real property in the project area to any person, in
accordance with the development plan, if any, and such disposition plans as may have
been approved by the commissioner in conjunction with a business development project. Sec. 32-226. Furnishing of municipal services to other municipalities. Any municipality may, by vote of its legislative body, furnish for consideration municipal services to, or have municipal services furnished to it by, one or more other municipalities.
The consideration for such services may be based, in whole or in part, upon a formula
which takes into account the taxes levied on the real property situated in the municipality
in which such services are to be furnished which the legislative body thereof determines
will be appreciably benefited. Sec. 32-227. Bond issue. (a) For the purpose of carrying out or administering a
municipal or business development project, (1) a municipality, acting by and through
its implementing agency, may, subject to the limitations and procedures set forth in
this section, issue from time to time bonds of the municipality and (2) the Connecticut
Development Authority may, upon a resolution adopted of the legislative body of the
municipality, issue from time to time bonds which, in either case, are payable solely
from and secured by: (A) A pledge of and lien upon any or all of the income, proceeds,
revenues and property of development projects, including the proceeds of grants, loans,
advances or contributions from the federal government, the state or other source, including financial assistance furnished by the municipality or any other public body pursuant
to sections 32-220 to 32-234, inclusive; (B) taxes or payments in lieu of taxes, or both,
in whole or in part, allocated to and paid into a special fund of the municipality or the
Connecticut Development Authority pursuant to the provisions of subsection (c) of this
section; or (C) any combination of the methods in subparagraphs (A) and (B) of this
section. Any bonds payable and secured as provided in this subsection shall be authorized and the appropriation of the proceeds thereof approved by and subject to a resolution
adopted by the legislative body of the municipality, notwithstanding the provisions of
any other statute, local law or charter governing the authorization and issuance of bonds
and the appropriation of the proceeds thereof generally by the municipality. No such
resolution shall be adopted until after a public hearing has been held upon such authorization. Notice of such hearing shall be published not less than five days prior to such
hearing in a newspaper having a general circulation in the municipality. Any such bonds
of a municipality or the Connecticut Development Authority shall be issued and sold
in such manner; bear interest at such rate or rates, including variable rates; provide for
the payment of interest on such dates, whether before or at maturity; be issued at, above
or below par; mature at such time or times not exceeding thirty years from their date;
have such rank or priority; be payable in such medium of payment; be issued in such
form, including, without limitation, registered or book-entry form; carry such registration and transfer privileges and be made subject to purchase or redemption before maturity at such price or prices and under such terms and conditions, including the condition
that such bonds be subject to purchase or redemption on the demand of the owner thereof;
and contain such other terms and particulars as the legislative body of the municipality
or the officers delegated such authority by the legislative body of the municipality shall
determine. Any such bonds of the Connecticut Development Authority shall be issued
and sold in the manner and subject to the general terms and provisions of law applicable
to issuance of bonds by the Connecticut Development Authority, except that the provisions of subsection (b) of section 32-23j shall not apply. The proceedings under which
bonds are authorized to be issued may, subject to the provisions of indenture or to any
other depository agreement, provide for the method of disbursement thereof, with such
safeguards and restrictions as it may determine. Any pledge made by the municipality
or the Connecticut Development Authority for bonds issued as provided in this subsection shall be valid and binding from the time when the pledge is made, and any revenues
or other receipts, funds or moneys so pledged and thereafter received by the municipality
or the Connecticut Development authority shall be subject to the lien of such pledge
without any physical delivery thereof or further act. The lien of any such pledge shall
be valid and binding as against all parties having claims of any kind in tort, contract or
otherwise against the municipality or Connecticut Development Authority, irrespective
of whether such parties have notice of such lien. Neither the resolution nor any other
instrument by which a pledge is created need be recorded. All expenses incurred in
carrying out such financing may be treated as project costs. Such bonds shall not be
included in computing the aggregate indebtedness of the municipality, provided, if such
bonds are made payable, in whole or in part, from funds contracted to be advanced by
the municipality, the aggregate amount of such funds not yet appropriated to such purpose shall be included in computing the aggregate indebtedness of the municipality.
As used in this section, "bonds" means any bonds, including refunding bonds, notes,
temporary notes, interim certificates, debentures or other obligations. Temporary notes
issued in accordance with this subsection in anticipation of the receipt of the proceeds
of bond issues may be issued for a period of not more than five years, and notes issued
for a shorter period of time may be renewed by the issue of other notes, provided the
period from the date of the original notes to the maturity of the last notes issued in
renewal thereof shall not exceed five years. Sec. 32-228. Sale, exchange or lease of real property under custody and control
of the Department Economic and Community Development. (a) The Commissioner
of Economic and Community Development may, with the approval of the Commissioner
of Public Works, the Secretary of the Office of Policy and Management and the State
Properties Review Board, sell, exchange, lease or enter into agreements concerning any
real property belonging to the state and transferred to the custody and control of the
Department of Economic and Community Development. The commissioner shall require, as a condition of any sale, exchange, lease or agreement entered into pursuant to
this section, that such real property be used primarily for manufacturing or economic
base businesses or for business support services. Prior to any such sale, exchange, lease
or agreement, the commissioner shall consult with each municipality in which the land,
improvement or interest is located. Sec. 32-229. Conditions re relocation of certain business which received state
financial assistance. Notwithstanding the provisions of section 32-5a, the commissioner may establish a time period during which a manufacturing or economic base
business receiving financial assistance before July 1, 1996, in connection with a municipal or business development project under sections 32-220 to 32-234, inclusive, shall
not relocate outside of the state. Such time period shall be more than three years. The
commissioner may take such action as he deems necessary or appropriate to enforce
such obligation including establishment of terms and conditions for repayment of any
financial assistance given under section 32-223. The provisions of section 32-5a shall
apply to any such financial assistance given on or after said date under section 32-223. Sec. 32-230. Economic Assistance Bond Fund. (a) There is established a fund to
be known as the "Economic Assistance Bond Fund". The fund shall contain any moneys
required by law to be deposited in the fund and shall be accounted for separately from
all other moneys, funds and accounts. Sec. 32-231. Economic Assistance Revolving Fund. (a) There is established a
fund to be known as the "Economic Assistance Revolving Fund". Repayment of principal and interest on loans shall be credited to such fund and shall become part of the
assets of the fund. The Economic Assistance Revolving Fund may include other separate
accounts. Any balance remaining in such fund at the end of any fiscal year shall be
carried forward in the fund for the fiscal year next succeeding. Sec. 32-232. Availability of financial assistance from Economic Assistance
Bond Fund and Economic Assistance Revolving Loan Fund for other programs.
All applications for financial assistance under chapters 130, 132, 588a and section 4-
66c pending on July 1, 1990, may be funded from the Economic Assistance Bond Fund
established pursuant to section 32-230 or the Economic Assistance Revolving Loan
Fund established pursuant to section 32-231. The commissioner may provide funds
available under sections 32-220 to 32-234, inclusive, for any project commenced under
said chapters 130, 132, 588a and said section 4-66c. Any application for financial assistance under chapter 132 to be funded under section 8-195 pending on July 1, 1990, shall
be funded in accordance with said section 8-195. The commissioner may also provide
funds available under sections 32-220 to 32-234, inclusive, for the procurement of air
pollution emission reduction credits by the secretary in accordance with sections 32-
242 and 32-242a. Sec. 32-233. Broad interpretation of powers. (a) The powers enumerated in sections 32-220 to 32-234, inclusive, shall be interpreted broadly to effectuate the purposes
thereof and shall not be construed as a limitation of powers. Sec. 32-234. Regulations. The commissioner may adopt regulations in accordance
with chapter 54 as necessary to carry out the provisions of sections 32-220 to 32-234,
inclusive. Sec. 32-235. Bond issue. (a) For the purposes described in subsection (b) of this
section the State Bond Commission shall have the power, from time to time, to authorize
the issuance of bonds of the state in one or more series and in principal amounts not
exceeding in the aggregate four hundred sixty-five million three hundred thousand dollars, provided one hundred one million dollars of said authorization shall be effective
on July 1, 2000. Sec. 32-236. Provision of assistance to certain financial institutions. Exemption from requirement for approval by General Assembly. In furtherance of the
economic development of the state, the Department of Economic and Community Development may provide financial assistance under sections 32-220 to 32-235, inclusive,
to a financial institution, as defined in section 12-217u, which has not less than two
thousand qualified employees, determined in accordance with subsections (d) and (e)
of said section 12-217u, at a facility or facilities located in a municipality in this state
with a population greater than one hundred thousand. The provisions of section 32-462
shall not apply to such assistance. Secs. 32-237 to 32-239. Reserved for future use. Sec. 32-240. Grants for establishment of flexible manufacturing networks.
Reports. (a) As used in this section: Sec. 32-241. Bond authorization. (a) For the purposes described in subsection (b)
of this section, the State Bond Commission shall have the power, from time to time, to
authorize the issuance of bonds of the state in one or more series and in principal amounts
not exceeding in the aggregate one million dollars. Sec. 32-242. Air pollution emission reduction credits. Program. In addition to
other financial assistance which the Department of Economic and Community Development may grant under this chapter, the Commissioner of Economic and Community
Development, in consultation with the Secretary of the Office of Policy and Management
and the Commissioner of Environmental Protection, may provide financial assistance
consisting of (1) funds to acquire air pollution emission reduction credits certified by
the Commissioner of Environmental Protection pursuant to section 22a-174f or (2) the
transfer of credits previously acquired by the Office of Policy and Management pursuant
to section 32-242a. Such transfer may be made as a grant, sale, loan or by such other
appropriate means of disposition as is determined by the Commissioner of Economic
and Community Development and the Secretary of the Office of Policy and Management. The assistance provided in the section shall be subject to the same rules and
procedures as any other financial assistance provided under sections 32-220 to 32-234,
inclusive. Any procurement, transfer or other use of such credits shall comply with the
federal Clean Air Act and any regulations, requirements and guidance issued by the
United States Environmental Protection Agency or the Department of Environmental
Protection regarding emission reduction credits. Sec. 32-242a. Purchase of air pollution emission reduction credits. (a) Notwithstanding any provision of the general statutes, the Secretary of the Office of Policy
and Management may acquire, purchase or otherwise procure air pollution emission
reduction credits certified by the Commissioner of Environmental Protection pursuant
to section 22a-174f on such terms as the secretary may deem appropriate. The secretary,
with the concurrence of the Commissioner of Economic and Community Development
and the Commissioner of Environmental Protection, may establish procedures regarding
the state's procurement and transfer of such credits as may be necessary. Any procurement, transfer or other use of such credits shall comply with the federal Clean Air Act and
any regulations, requirements and guidance issued by the United States Environmental
Protection Agency or the Department of Environmental Protection regarding emission
reduction credits. Sec. 32-243. Reserved for future use. Sec. 32-244. Applicability of Freedom of Information Act to data and other
information re financial assistance. (a) All data and other information received by the
Department of Economic and Community Development, the Connecticut Development
Authority or any implementing agency, as defined in section 32-222, or any advisory
board or committee of the department, authority or agency, from any person in connection with an application for, or the provision of, financial assistance, which consists of
the following, shall be deemed, for purposes of a public records request pursuant to the
Freedom of Information Act, as defined in section 1-200, made to the Department of
Economic and Community Development, the Connecticut Development Authority or
any such implementing agency, advisory board or committee, to be information described in subdivision (5) of subsection (b) of section 1-210: (1) Actual trade secrets or
information that a person intends to become a trade secret, (2) material that a person
intends to patent, (3) patented material, (4) marketing or business plans, (5) plans for
new products or services, (6) reports of customer orders or sales or other documents
that would disclose names and addresses of customers or potential customers, (7) information concerning the financial condition or personal affairs of any individual, (8) financial statements or projections, (9) sales or earnings forecasts, (10) capital or strategic
plans, (11) information regarding research and development, (12) tax returns, or (13)
other commercial, credit or financial information with respect to the financial condition
or business operations of an applicant for or recipient of financial assistance which is
of a type not customarily made available to the public.
Sec. 32-220. Short title: Economic Development and Manufacturing Assistance Act of 1990.
Sec. 32-221. Declaration of policy.
Sec. 32-222. Definitions.
Sec. 32-222a. Office of Defense Diversification established in the Department of Economic
and Community Development to provide financial assistance for defense diversification
projects.
Sec. 32-223. Application for financial assistance.
Sec. 32-224. Designation of development agency. Project plan. Adoption of plan. Readjustment, relocation and removal of public service facilities.
Sec. 32-225. Acquisition and transfer of real property. General powers of agency.
Sec. 32-226. Furnishing of municipal services to other municipalities.
Sec. 32-228. Sale, exchange or lease of real property under custody and control of the
Department Economic and Community Development.
Sec. 32-229. Conditions re relocation of certain business which received state financial
assistance.
Sec. 32-230. Economic Assistance Bond Fund.
Sec. 32-231. Economic Assistance Revolving Fund.
Sec. 32-232. Availability of financial assistance from Economic Assistance Bond Fund and
Economic Assistance Revolving Loan Fund for other programs.
Sec. 32-233. Broad interpretation of powers.
Sec. 32-234. Regulations.
Sec. 32-235. Bond issue.
Sec. 32-236. Provision of assistance to certain financial institutions. Exemption from
requirement for approval by General Assembly.
Secs. 32-237 to 32-239.
Sec. 32-240. Grants for establishment of flexible manufacturing networks. Reports.
Sec. 32-241. Bond authorization.
Sec. 32-242. Air pollution emission reduction credits. Program.
Sec. 32-242a. Purchase of air pollution emission reduction credits.
Sec. 32-243.
Sec. 32-244. Applicability of Freedom of Information Act to data and other information re
financial assistance.
Sec. 32-244a. Applicability of Freedom of Information Act to certain information.
(P.A. 90-270, S. 1, 38.)
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 90-270, S. 2, 38; P.A. 97-211, S. 3, 7.)
History: P.A. 97-211 added provision re participation and cooperation of state agencies in providing assistance, effective
June 24, 1997.
(Return to TOC) (Return to Chapters) (Return to Titles)
(a) "Business development project" means a project undertaken by an eligible applicant involving one or more of the activities described in subdivision (1), satisfying one
or more of the criteria set forth in subdivision (2) or involving the activities described
in subdivision (3), as follows:
(1) The project involves (A) the construction, substantial renovation, improvement
or expansion of a facility; (B) the acquisition of an existing facility that has been idle
for at least one year prior to such acquisition, provided if such facility is acquired through
a lease, such lease: (i) Shall be for an initial term of not less than five years and (ii) shall
be renewable at the option of the lessee for an additional term of not less than five years,
provided the lease may be subject to the option of the lessee to purchase the facility at
any time during the lease term or thereafter. The commissioner may waive the one-year
idleness requirement upon determination that there is a high likelihood that the facility
will remain idle for one year. In making such determination, the commissioner shall
consider the marketability of the facility, the general economic condition of the municipality in which the facility is located, the size of the facility, the economic benefit of
the proposed acquisition to the municipality and the state, including, but not limited to,
the number of employment positions proposed to be established at the facility, and the
degree to which the provision of financial assistance under sections 32-220 to 32-234,
inclusive, is necessary as an inducement to the eligible applicant to acquire the facility;
(C) the acquisition of new machinery and equipment used directly in the manufacturing
of goods or products and acquired through purchase as part of the technological upgrading of the manufacturing process of a facility used in the operation of a manufacturing
or economic base business which (i) has been in continuous operation in the state for
not less than five years; and (ii) has incurred costs in acquiring such machinery and
equipment not less than the greater of two hundred thousand dollars, or two hundred
per cent of the average annual expenditure of the manufacturing or economic base business for the acquisition of new machinery and equipment used directly in the manufacturing of goods or products at the facility during the three years prior to the date upon which
an application for financial assistance is submitted pursuant to subsection (c) of section
32-223, or (D) the acquisition, improvement, demolition or disposition of real property,
or combinations thereof, or the remediation of contaminated real property, used or to
be used in connection with the operation of a manufacturing or economic base business,
provided, if the eligible applicant is not a municipality or implementing agency, the
commissioner has determined that such project would not be undertaken or completed
in a timely manner except for the provision of financial assistance pursuant to sections
32-220 to 32-234, inclusive, and that such project promotes the economic stability and
growth of the state or any region thereof.
(2) A project which will: (A) Create at a facility, within twenty-four months of the
initiation of a hiring program, not less than ten new jobs or an increase in the number
of persons employed at the facility of twenty per cent, whichever is greater; (B) promote
the diversification of the economy of an area of the state or manufacturing or other
economic base business where such area or business is substantially reliant upon defense
and related industry; (C) assist in the avoidance of an imminent plant closing or relocation by a manufacturing or other economic base business or assist or improve the economy of an area of the state which has been or is likely to be significantly and adversely
impacted by one or more major plant closings or relocations; (D) support research and
development or commercialization of technologies, products, processes or techniques
of a manufacturing or other economic base business; (E) promote community conservation or development or improvement of the quality of life for urban residents of the state;
or (F) promote the revitalization of underutilized, state-owned former railroad depots
and areas adjacent to such depots;
(3) The project involves the creation of an inventors workshop by an eligible applicant, to enable (A) small manufacturing subcontractors which manufacture parts and
components exclusively for other companies or (B) current or former manufacturing
employees or higher education faculty or researchers, to design, test, manufacture and
market new products and manufacturing techniques;
(b) "Business support services" means activities related to a municipal development
project or business development project which support the economic competitiveness
of manufacturing or economic base businesses or which further the interests of the state,
including, but not limited to, facilities and services related to day care, job training,
education, transportation, employee housing, energy conservation, pollution control and
recycling, provided activities related to employee housing shall be limited to feasibility
and implementation studies;
(c) "Commissioner" means the Commissioner of Economic and Community Development;
(d) "Economic cluster" means an economic cluster, as defined in section 32-4e,
recognized by the commissioner;
(e) "Department" means the Department of Economic and Community Development;
(f) "Development plan" means a plan for a municipal development project prepared
in accordance with the provisions of subsection (b) of section 32-223;
(g) "Eligible applicant" means any for-profit or nonprofit organization, or any combination thereof, provided, in the case of a defense diversification project, "eligible
applicant" means any for-profit or nonprofit organization, municipality, regional planning agency or any combination thereof and further provided, in the case of a loan
made by the Connecticut Development Authority in which the department purchases a
participation interest, "eligible applicant" means the for-profit or nonprofit organization,
or any combination thereof, that will receive the proceeds of such loan;
(h) "Facility" means a plant, building or other real property improvement, or part
thereof, used or to be used in connection with the operation of a manufacturing or economic base business;
(i) "Financial assistance" means grants, funds for the purchase of insurance policies
and payment of deductibles for insurance policies to cover remediation costs, extensions
of credit, loans or loan guarantees, participation interests in loans made to eligible applicants by the Connecticut Development Authority or combinations thereof;
(j) "For-profit organization" means a for-profit partnership or sole proprietorship
or corporation which is a manufacturing or economic base business or which has demonstrated to the satisfaction of the commissioner that it has the qualifications, including
financial qualifications, necessary to carry out a business development project;
(k) "Implementing agency" means one of the following agencies designated by a
municipality under section 32-223: (1) An economic development commission, redevelopment agency; sewer authority or sewer commission; public works commission; water
authority or water commission; port authority or port commission or harbor authority
or harbor commission; parking authority or parking commission; (2) a nonprofit development corporation; or (3) any other agency designated and authorized by a municipality
to undertake a project and approved by the commissioner;
(l) "Manufacturing or economic base business" means a business classified in accordance with the standard industrial classification system of the Bureau of Census of
the United States Department of Commerce as belonging to a major industry group
numbered 20 to 39, inclusive; a business engaged in research and development directly
related to (1) manufacturing, (2) agriculture or (3) aquaculture; a business engaged in
the significant servicing, overhauling or rebuilding of machinery and equipment for
industrial use; any business that is part of an economic cluster; or any establishment or
auxiliary or operating unit thereof, as defined in the Standard Industrial Classification
Manual, which the commissioner determines will materially contribute to the economy
of the state by creating or retaining jobs, exporting products or services beyond the state's
boundaries, encouraging innovation in products or services, adding value to products or
services, or otherwise supporting or enhancing existing activities that are important to
the economy of the state;
(m) "Municipal development project" means a business development project
through which real property is acquired by a municipality or implementing agency as
part of such project;
(n) "Municipality" means a town, city, consolidated town and city or consolidated
town and borough;
(o) "Nonprofit organization" means a municipality or nonprofit corporation as defined in section 33-1002 and organized under the laws of this state and for purposes of
this chapter includes any constituent unit of the state system of higher education;
(p) "Planning commission" means a planning and zoning commission designated
pursuant to section 8-4a or a planning commission created pursuant to section 8-19;
(q) "Project" means a municipal development project or business development
project;
(r) "Project area" means the area within which a municipal development project or
business development project is located;
(s) "Real property" means land, buildings and other structures and improvements
thereto, subterranean or subsurface right, any and all easements, air rights and franchises
of any kind or nature;
(t) "Site and infrastructure improvements" mean improvements to: (1) Sanitary
sewer facilities; (2) natural gas pipes, electric, telephone and telecommunications conduits and other facilities and waterlines and water supply facilities, except for any such
pipes, wires, conduits, waterlines or any such pipes, wires, conduits, waterlines or facilities which a public service company, as defined in section 16-1, water company, as
defined in section 25-32a, or municipal utility is required to install pursuant to any
provision of the general statutes or any special act, regulation or order of the Department
of Public Utility Control or a certificate of public convenience and necessity; (3) storm
drainage facilities, including facilities to control flooding; (4) site grading, landscaping,
environmental improvements, including remediation of contaminated sites, parking
facilities, roadways and related appurtenances; (5) railroad spurs; (6) public port or
docking facilities; and (7) such other related improvements necessary or appropriate to
carry out the project;
(u) "State" means the state of Connecticut;
(v) "Targeted investment community" means a municipality which contains an enterprise zone designated pursuant to section 32-70;
(w) "Total project cost" means costs of any kind or nature relating to the planning,
implementation and completion of a municipal or business development project;
(x) "Defense diversification project" means a project undertaken during the period
from July 1, 1991, to June 30, 1998, inclusive, by an eligible applicant, as defined
in this subsection, involving any of the following: (1) Conversion or preparation for
conversion of defense-related production to other types of production; (2) product diversification or capital, organizational or technological modernization by an eligible applicant engaged in defense-related production; (3) product diversification or conversion
of business service activity for application or use in other than defense-related business
by any subcontractor engaged in defense-related production or business service activity;
(4) conversion by an eligible applicant of real property used in its entirety, or in part,
for defense-related activity to a use primarily for other than defense-related activity,
including use as a site related to the export of Connecticut products from the state for
purposes of encouraging such exportation; (5) product diversification or conversion of
business service activity by an eligible applicant engaged in production or business
service activity which is not defense-related in a region of the state determined by the
commissioner to be significantly impacted by the loss, or potential loss, of defense-
related production or business service activity, including acquisition or development,
or both, of real property by such applicant for purposes of such diversification or conversion; and (6) the creation or expansion of production, business service, research or research-related activities by an eligible applicant that will significantly increase employment opportunities for former employees of a contractor or subcontractor engaged in
defense-related production. For purposes of any defense diversification project, as defined in this subsection, (A) "regional defense diversification plan" means a plan prepared or supported by an eligible applicant for purposes of (i) promoting or advocating
defense diversification projects or (ii) supporting the retention of naval operations as
an interim strategy for economic stability within a region seeking diversification, (B)
"eligible applicant" means any for-profit or nonprofit organization, municipality, regional planning agency or any combination thereof and (C) "business service activity"
means the rendering of any type of service to a business organization for consideration;
(y) "Legislative body" means (1) the board of selectmen in a town that does not
have a charter, special act or home rule ordinance relating to its government or (2) the
council, board of aldermen, representative town meeting, board of selectmen or other
elected legislative body described in a charter, special act or home rule ordinance relating
to its government in a city, consolidated town and city, consolidated town and borough
or a town having a charter, special act, consolidation ordinance or home rule ordinance
relating to its government.
(P.A. 90-270, S. 3, 38; P.A. 91-340, S. 1, 2, 8; P.A. 92-236, S. 27, 42, 48; P.A. 93-158, S. 8, 11; 93-160; May Sp. Sess.
P.A. 94-2, S. 194, 203; P.A. 95-250, S. 1; 95-270, S. 2, 11; 95-272, S. 19, 29; P.A. 96-180, S. 105, 166; 96-211, S. 1, 5,
6; 96-239, S. 9, 17; 96-256, S. 188, 209; P.A. 97-211, S. 4, 5, 7; P.A. 98-203, S. 1, 13; P.A. 99-216, S. 6, 7; P.A. 00-171,
S. 3, 4.)
History: P.A. 91-340 redefined "eligible applicant" to include any profit or nonprofit organization, any municipality,
regional planning agency or any combination thereof, where defense diversification project is concerned and added Subsec.
(w) defining a defense diversification project; P.A. 92-236 redefined "business development project" by adding Subdiv.
(3) re inventors workshop projects and amended Subsec. (w) defining "defense diversification project" by inserting "primarily" in Subdiv. (4), inserting "or both" in Subdiv. (5) and adding Subdiv. (6) re activities increasing opportunities for former
employees of a defense contractor or subcontractor; P.A. 93-158 added Subsec. (x) defining the term "legislative body",
effective June 23, 1993; P.A. 93-160 redefined "manufacturing or economic base business" to include businesses engaged
in research and development directly related to agriculture and aquaculture; May Sp. Sess. P.A. 94-2 in Subsec. (w) included
the support of the retention of naval operations under the definition of a regional defense diversification plan, effective
June 21, 1994; 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; P.A. 95-270 redefined "nonprofit organization" to include constituent units of the state system of higher education, effective July 1, 1995; P.A. 95-272 amended
Subdiv. (w) to extend project date from June 30, 1996, to June 30, 1998, effective July 1, 1995 (Revisor's note: Introductory
language "As used in sections 32-220 to 32-234, inclusive," omitted through clerical error from the 1995 edition of the
general statutes, was restored editorially by the Revisors); P.A. 96-180 amended Subsec. (a)(1) by substituting reference
to Sec. 32-223 for Sec. 32-222, effective June 3, 1996; P.A. 96-239 added Subpara. (F) to Subsec. (a)(2), including certain
railroad depot projects in definition of "business development project", effective July 1, 1996; P.A. 96-256 amended
definition of "nonprofit organization" to replace reference to Sec. 33-421 with Sec. 33-1002, effective January 1, 1997
(Revisor's note: In 1997 in Subsec. (n) the phrase "... and is organized under laws of this state ..." was changed editorially
by the Revisors to "... and organized under the laws of this state ..." for consistency of usage); P.A. 97-211 redefined
"eligible applicant" in Subsec. (f) and "financial assistance" in Subsec. (h) to add provision re participation of the department
in loans made by the Connecticut Development Authority, effective June 24, 1997; P.A. 98-203 added a new Subsec. (d)
defining "economic cluster", relettered the existing Subsecs. and redefined "manufacturing or economic base business"
to include economic cluster businesses, effective June 8, 1998; P.A. 99-216 amended Subdiv. (1) of Subsec. (a) to include
projects to remediate contaminated real property as eligible business development projects under this section, effective
July 1, 1999; P.A. 00-171 redefined "financial assistance" in Subsec. (i) to add provision re funds for the purchase of
insurance policies and payment of deductibles to cover remediation costs and redefined "site and infrastructure improvements" in Subsec. (t) to include remediation of contaminated sites.
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(1) Acquisition of real property, machinery or equipment, or any combination
thereof, provided financial assistance for such acquisition with respect to any such project may not exceed the total fair market value of the real or personal property, or both,
so acquired;
(2) Construction of site and infrastructure improvements;
(3) Assistance in the development of new products and markets, including the costs
of services of consultants concerning marketing, advertising, new product development,
exporting, capital, organizational and technological modernization and any other such
considerations contributing to diversification possibilities, and including to the extent
that it may be advantageous to eligible applicants for assistance, a pooling arrangement
applicable to such consulting services, provided the Department of Economic and Community Development shall adopt regulations in accordance with chapter 54 for purposes
of implementing any such pooling arrangement;
(4) Development of a regional defense diversification plan by any regional planning
agency or any combination of municipalities; and
(5) State financial assistance as a required share of total costs with respect to any
federal financial assistance that may be available for a defense diversification project.
(P.A. 91-340, S. 3, 8; 91-407, S. 32; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)
History: P.A. 91-407 amended Subdiv. (3) to include reference to advertising; 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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(b) Applications properly submitted shall be reviewed and may be approved, disapproved or modified by the commissioner. In reviewing an application and determining
the type and amount of financial assistance, if any, to be provided, the commissioner shall
consider the following criteria: (1) The availability of funds; (2) the relative economic
condition of the municipality; (3) the relative need of the eligible applicant or project
for financial assistance; (4) the degree to which financial assistance is necessary as an
inducement to the eligible applicant to undertake the project or to the manufacturing or
economic base business to locate or undertake the project in the state; (5) the relative
economic benefit of the project to the state, including, but not limited to: (A) The extent
to which the project will likely result in the retention and creation of jobs, the retention,
expansion or relocation of manufacturing or economic base businesses in the state or
the diversification of such businesses, or (B) the extent to which the project will increase
competitiveness of such businesses, respond to potential or actual dislocation as a result
of major plant closings or relocations and address the business service needs of such
businesses and the state; and (6) such other criteria as the commissioner may establish
consistent with the purposes of sections 32-220 to 32-234, inclusive. The commissioner
shall not deny an application for financial assistance for a project solely because the
project site does not have sewer service or access to sewer service.
(c) No financial assistance shall be given to an eligible applicant and no participation
interest in a loan made by the Connecticut Development Authority for the benefit of
an eligible applicant shall be purchased by the department until the commissioner has
approved the application submitted in accordance with subsection (a) of this section.
Notwithstanding any other provision of this section, in the event that the financial assistance requested is the purchase by the department of a participation interest in a loan
made by the Connecticut Development Authority, such authority may submit such application and other information as is required of eligible applicants under subsection (a)
of this section on behalf of such eligible applicant and no further application shall be
required of such eligible applicant. No financial assistance shall exceed: (1) Except as
otherwise provided in subdivisions (2) to (5), inclusive, of this subsection, fifty per cent
of the total project cost, (2) in the case of financial assistance to any project in a targeted
investment community, ninety per cent of the project cost, (3) when two or more municipalities which are not targeted investment communities jointly initiate a municipal development project in accordance with the provisions of subsection (e) of section 32-224,
seventy-five per cent of the total project cost, (4) in the case of a municipal development
project jointly initiated by two or more municipalities at least one of which is a targeted
investment community, the sum of: (A) Seventy-five per cent of the portion of the total
project cost allocable to the participation of the municipality or municipalities which
are not targeted investment communities and (B) ninety per cent of the portion of the
total project cost allocable to the participation of any targeted investment community
or communities and (5) in the case of a defense diversification project, ninety per cent
of the total project cost if the project involves a municipal development project or the
acquisition or development, or both, of real property for an unspecified occupant, and
one hundred per cent in the case of any other defense diversification project. A municipality's share of the total project cost, if any, may, with the approval of the commissioner,
be satisfied entirely or partially from noncash contributions, including contributions of
real property, from private sources, or, to the extent permitted by federal law, from
moneys received by the municipality under any federal grant program.
(d) Financial assistance whether provided directly to eligible applicants or indirectly
in the form of the department's purchase of a participation interest in a loan made by
the Connecticut Development Authority under sections 32-220 to 32-234, inclusive,
may be used for (1) the planning of a municipal development project or business development project, including, but not limited to, the reasonable cost of feasibility studies,
engineering, appraisals, market studies and related activities; (2) the acquisition of real
property, machinery or equipment, or any combination thereof, provided such financial
assistance shall not exceed fair market value; or (3) the construction of site and infrastructure improvements relating to a municipal development or business development
project; (4) the construction, renovation and demolition of buildings; (5) relocation
expenses for the purpose of assisting a manufacturing or other economic base business
to locate, construct, renovate or acquire a facility; or (6) such other reasonable expenses
necessary or appropriate for the initiation, implementation and completion of the project,
including, but not limited to: (A) Administrative expenses of the eligible applicant and
(B) business support services in conjunction with another state agency when such agency
does not provide adequate funds for such services or when no other state agency provides
such services. The department may purchase participation interests in loans made by
the Connecticut Development Authority for the foregoing purposes. All relocation assistance provided under sections 32-220 to 32-234, inclusive, to persons residing in the
project area shall be in conformance with chapter 135.
(e) The commissioner may establish the terms and conditions of any financial assistance provided under sections 32-220 to 32-234, inclusive, except that the interest rate
on any loans shall be determined by the State Bond Commission in accordance with
subsection (t) of section 3-20. The commissioner may make any stipulation in connection
with an offer of financial assistance he deems necessary to implement the policies and
purposes of sections 32-220 to 32-234, inclusive, including, but not limited to the following: (1) The provision of assurances that the eligible applicant will discharge its obligations in connection with the project and (2) a requirement that the eligible applicant
provide the department with appropriate security for such financial assistance, including,
but not limited to, a letter of credit, a lien on real property or a security interest in goods,
equipment, inventory or other property of any kind.
(f) During the fiscal year ending June 30, 1993, the commissioner shall prepare a
request for proposals soliciting applications for business development projects described
in subdivision (3) of subsection (a) of section 32-222 and shall provide financial assistance to at least one eligible applicant for such a project.
(P.A. 90-270, S. 4, 38; P.A. 91-340, S. 4, 8; P.A. 92-236, S. 28, 43, 48; P.A. 93-218, S. 3, 4; P.A. 97-211, S. 6, 7.)
History: P.A. 91-340 made a technical change to the references to "sections 32-220 to 32-234, inclusive," in Subsecs.
(a), (b), (d) and (e) (made necessary by the codification of new Sec. 32-222a), but the change necessitated no change to
the wording of this section as codified; P.A. 92-236 amended Subsec. (c) by enumerating provisions setting forth limits
on financial assistance and adding Subdiv. (5) re such limits for defense diversification projects and added Subsec. (f) re
request for proposals for projects described in Sec. 32-222(a)(3); P.A. 93-218 amended Subsec. (b) to prohibit commissioner
from denying application for project solely because site lacks sewer service or access to sewer service, effective June 23,
1993; P.A. 97-211 amended Subsecs. (c) and (d) to add provisions re participation of the department in loans made by the
Connecticut Development Authority, effective June 24, 1997.
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(b) The implementing agency may initiate a municipal development project by preparing and submitting a development plan to the commissioner. Such plan shall include:
(1) A legal description of the real property within the boundaries of the project area; (2)
a description of the present condition and uses of such real property; (3) a description
of the types and locations of land uses or building uses proposed for the project area;
(4) a description of the types and locations of present and proposed streets, sidewalks
and sanitary, utility and other facilities and the types and locations of other proposed
project improvements; (5) statements of the present and proposed zoning classification
and subdivision status of the project area and the areas adjacent to the project area; (6)
a plan for relocating project area occupants; (7) a financing plan; (8) an administrative
plan; (9) an environmental analysis, marketability and proposed land use study, or building use study if required by the commissioner; (10) appraisal reports and title searches
if required by the commissioner; (11) a description of the economic benefit of the project,
including the number of jobs which the implementing agency anticipates would be
created or retained by the project, estimated property tax benefits and the number and
types of existing housing units in the municipality in which the project would be located,
and in contiguous municipalities, which would be available to employees filling such
jobs and (12) a finding that (A) the land and buildings within the boundaries of the
project area will be used principally for manufacturing or other economic base business
purposes or business support services; (B) the plan is in accordance with the plan of
development for the municipality, if any, adopted by its planning commission and the
plan of development of the regional planning agency, if any, for the region within which
the municipality is located; (C) the plan is not inimical to any state-wide planning program objectives of the state or state agencies as coordinated by the Secretary of the
Office of Policy and Management; and (D) the project will contribute to the economic
welfare of the municipality and the state and that to carry out and administer the project,
public action under sections 32-220 to 32-234, inclusive, is required. The provisions of
this subsection with respect to submission of a development plan to and approval by
the commissioner and with respect to a finding that the plan is not inimical to any state-
wide planning program objectives of the state or its agencies shall not apply to a project
for which no financial assistance has been given and no application for financial assistance is to be made under section 32-223. Any plan which has been prepared under
chapters 130, 132 or 588a may be submitted by the implementing agency to the legislative body of the municipality and to the commissioner in lieu of a plan initiated and
prepared in accordance with this section, provided all other requirements of sections
32-220 to 32-234, inclusive, for obtaining the approval of the commissioner of the
development plan are satisfied. Any action taken in connection with the preparation and
adoption of such plan shall be deemed effective to the extent such action satisfies the
requirements of said sections.
(c) No plan shall be adopted unless the planning commission of the municipality
finds that the plan is in accord with the plan of development, if any, for the municipality
and the regional planning agency, if any, organized under chapter 127 for the region
within which such municipality is located finds that such plan is in accord with the plan
of development, if any, for such region. If the regional planning agency fails to make
a finding concerning the plan within thirty-five days of receipt thereof, by such agency,
it shall be presumed that such agency does not disapprove of the plan. The implementing
agency shall hold at least one public hearing on the plan and shall cause notice of the
time, place, and subject of any public hearing to be published at least once in a newspaper
of general circulation in the municipality not less than one week nor more than three
weeks prior to the date of such public hearing. Upon adoption the implementing agency
shall submit the plan to the legislative body of the municipality for approval or disapproval. Any approval by the implementing agency and legislative body of the municipality made under this section shall specifically provide for approval of any findings contained therein. After approval of the plan by the legislative body of the municipality,
such plan shall be submitted to the commissioner for his approval. If the commissioner
requires a substantial modification of the plan as a condition of approval, the plan shall
be subject to a public hearing and approval by the implementing agency and the legislative body of the municipality in accordance with the provisions of this subsection.
(d) A development plan may be modified at any time by the implementing agency,
provided, if modified after the lease or sale of real property in the project area, the lessees
or purchasers of such real property or their successor or successors in interest affected
by the proposed modification shall consent to such modification. If the proposed modification will substantially alter the development plan as previously approved, the modification shall be subject to the approval of the local legislative body of the municipality
and the commissioner in the same manner as approval of the development plan. The
municipality may, by vote of its legislative body, abandon the development plan and
convey such real property within the boundaries of the project area free of any restriction,
obligation or procedure imposed by the plan subject to all other local and state laws,
ordinances or regulations if after three years from the date of approval of the plan the
implementing agency has not transferred by sale or lease all or any part of the real
property acquired in the project area to any person in accordance with the development
plan and no grant of financial assistance under sections 32-220 to 32-234, inclusive,
has been given for such project other than for activities related to the planning of the
project pursuant to section 32-222.
(e) The implementing agencies of two or more municipalities may, after approval
by each legislative body thereof, jointly initiate a development project if the project area
is to be located in one or more of such municipalities. Such implementing agencies,
after approval by the commissioner of the development plan for the project if any state
aid is to be requested under section 32-223, may enter into and amend subject to the
approval of the commissioner, an agreement to jointly carry out the development plan.
Such agreement may include provisions for furnishing municipal services to the project
and sharing costs of and revenues from the project, including property tax and rental
receipts. The development plan shall include a proposed form of the agreement to be
entered into by the municipalities. Each municipality which is a party to an agreement
may make appropriations and levy taxes in accordance with the provisions of the general
statutes and may issue bonds in accordance with section 32-227 to further its obligations
under the agreement.
(f) As used in this subsection, "public service facility" includes any sewer, pipe,
main conduit, cable, wire, pole, tower, building or utility appliance owned or operated
by an electric, gas, telephone, telegraph or water company. Whenever an implementing
agency determines that the closing of any street or public right-of-way is provided for
in a development plan adopted and approved in accordance with sections 32-220 to 32-
234, inclusive, or where the carrying out of such a development plan, including the
construction of new improvements, requires the temporary or permanent readjustment,
relocation or removal of a public service facility from a street or public right-of-way,
the implementing agency shall issue an appropriate order to the company owning or
operating such facility. Such company shall permanently or temporarily readjust, relocate or remove the public service facility promptly in accordance with such order, provided an equitable share of the cost of such readjustment, relocation or removal, including the cost of installing and constructing a facility of equal capacity in a new location,
shall be borne by the implementing agency. Such equitable share shall be fifty per cent
of such cost after the deduction hereinafter provided. In establishing the equitable share
of the cost to be borne by the implementing agency, there shall be deducted from the
cost of the readjusted, relocated or removed facilities a sum based on a consideration
of the value of materials salvaged from existing installations, the cost of the original
installation, the life expectancy of the original facility and the unexpired term of such
life use. The books and records of the company shall be made available for inspection
by the implementing agency to determine the equitable share of the cost of such readjustment, relocation or removal. When any facility is removed from a street or public right-
of-way to a private right-of-way, the implementing agency shall not pay for such private
right-of-way. If the implementing agency and the company owning or operating such
facility cannot agree upon the share of the cost to be borne by the implementing agency,
such agency or the company may apply to the superior court for the judicial district
within which the street or public right-of-way is situated, or, if the court is not in session,
to any judge thereof, for a determination of the cost to be borne by the implementing
agency. The court or the judge, after causing notice of the pendency of such application
to be given to the other party, shall appoint a state referee to make such determination.
The referee, having given at least ten days' notice to the interested parties of the time
and place of the hearing, shall hear both parties, take such testimony as he may deem
material and thereupon determine the amount of the cost to be borne by the implementing
agency. The referee shall immediately report the amount to the court. If the report is
accepted by the court, such determination shall, subject to right of appeal as in civil
actions, be conclusive upon such parties.
(g) After approval of the development plan pursuant to sections 32-220 to 32-234,
inclusive, the implementing agency may by purchase, lease, exchange or gift acquire
or rent real property necessary or appropriate for the project as identified in the development plan and real property and interests therein for rights-of-way and other easements
to and from the project area. The implementing agency may, with the approval of the
legislative body of the municipality, and in the name of the municipality, condemn
in accordance with section 8-128 to 8-133, inclusive, any real property necessary or
appropriate for the project as identified in the development plan, including real property
and interests in land for rights-of-way and other easements to and from the project area.
(P.A. 90-270, S. 5, 38.)
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(b) In carrying out a business or municipal development project, a municipality or
implementing agency shall have all powers necessary or convenient to undertake and
carry out municipal and business development projects, including the power to (1) clear,
demolish, repair, rehabilitate, operate, or insure real property while it is in its possession,
(2) make site improvements essential to the preparation of land for its use in connection
with the project, (3) install, construct or reconstruct streets, utilities and other improvements as necessary to carry out the objectives of the project, and (4) provide financial
assistance to manufacturing and economic base businesses or other eligible applicants
in a manner approved by the commissioner.
(P.A. 90-270, S. 6, 38.)
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(P.A. 90-270, S. 7, 38.)
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(b) For the purpose of carrying out or administering a municipal or business development project, a municipality or its implementing agency may accept grants, advances,
loans or other financial assistance from the federal government, the state or other source
and may do any and all things necessary or desirable to secure such financial aid. To
assist any project located in the area in which it is authorized to act, any public body,
including the state, or any city, town, borough, authority, district, subdivision or agency
of the state, may, upon such terms as it determines, furnish service or facilities, provide
property, lend or contribute funds, and take any other action of a character which it is
authorized to perform for other purposes. To obtain funds for the temporary and definitive financing of any project, a municipality or implementing agency may, in addition
to other action authorized under this act or other law, issue its general obligation bonds,
notes, temporary notes or other obligations secured by a pledge of the municipality's
full faith and credit. Such bonds, notes, temporary notes and other obligations shall be
authorized in accordance with the requirements for the authorization of such obligations
generally by the municipality and the authorization, issuance and sale thereof shall be
subject to the limitations contained in the general statutes, including provisions on the
limitation of the aggregate indebtedness of the municipality. Notwithstanding the provisions of sections 7-264, 7-378 and 7-378a, and any other public or special act or charter
or bond ordinance or bond resolution which limits the issuance or renewal of temporary
notes issued in anticipation of the receipt of the proceeds of bond issues to a period of
time of less than five years from the date of the original notes or requires a reduction
in the principal amount of such notes or renewal notes prior to the fifth anniversary of
the date of the original notes, such temporary notes may be issued for a period of not
more than five years, and notes issued for a shorter period of time may be renewed by
the issue of other notes, provided the period from the date of the original notes to the
maturity of the last notes issued in renewal thereof shall not exceed five years.
(c) Any development plan authorized under sections 32-220 to 32-234, inclusive,
or any proceedings authorizing the issuance of bonds under said sections may contain
a provision that taxes, if any, identified in such plan or such authorizing proceedings
and levied upon taxable real or personal property, or both, in a project each year or
payments in lieu of such taxes authorized pursuant to chapter 114, or both, by or for the
benefit of any one or more municipalities, districts or other public taxing agencies, as
the case may be, shall be divided as follows: (1) In each fiscal year that portion of the
taxes or payments in lieu of taxes, or both, which would be produced by applying the
then current tax rate of each of the taxing agencies to the total sum of the assessed value
of the taxable property in the project on the effective date of such adoption or the date
of such authorizing proceedings, as the case may be, or on any date between such two
dates which is identified in such proceedings, shall be allocated to and when collected
shall be paid into the funds of the respective taxing agencies in the same manner as taxes
by or for said taxing agencies on all other property are paid; and (2) that portion of the
assessed taxes or the payments in lieu of taxes, or both, each fiscal year in excess of the
amount referred to in subdivision (1) of this subsection shall be allocated to and when
collected shall be paid into a special fund of the municipality or the Connecticut Development Authority to be used in each fiscal year, first to pay the principal of and interest
due in such fiscal year on loans, moneys advanced to, or indebtedness, whether funded,
refunded, assumed, or otherwise, incurred by such municipality or the Connecticut Development Authority to finance or refinance in whole or in part, such project, and then,
at the option of the municipality or the Connecticut Development Authority, to purchase
bonds issued for the project which has generated the tax increments or payments in lieu
of taxes and then, at the option of the municipality or the Connecticut Development
Authority, to reimburse the provider of or reimbursement party with respect to any
guarantee, letter of credit, policy of bond insurance, funds deposited in a debt service
reserve fund, funds deposited as capitalized interest or other credit enhancement device
used to secure payment of debt service on any bonds, notes or other indebtedness issued
pursuant to this section to finance or refinance such project, to the extent of any payments
of debt service made therefrom. Unless and until the total assessed valuation of the
taxable property in a project exceeds the total assessed value of the taxable property in
such project as shown by the last assessment list referred to in subdivision (1) of this
subsection, all of the taxes levied and collected and all of the payments in lieu of taxes
due and collected upon the taxable property in such project shall be paid into the funds
of the respective taxing agencies. When such loans, advances, and indebtedness, if any,
and interest thereof, and such debt service reimbursement to the provider of or reimbursement party with respect to such credit enhancement, have been paid in full, all
moneys thereafter received from taxes or payments in lieu of taxes, or both, upon the
taxable property in such development project shall be paid into the funds of the respective
taxing agencies in the same manner as taxes on all other property are paid.
(d) Notwithstanding the provisions of subsection (a) or (b) of this section and any
other public or special act or charter or bond ordinance or bond resolution which limits
the renewal of temporary notes issued pursuant to said subsections in anticipation of
the receipt of the proceeds of bond issues to five years from the date of the original
notes, any municipality may renew temporary notes in accordance with the provisions
of this section for an additional period of not more than four years from the end of such
five-year period. The officers or board authorized to issue the bonds or determine the
particulars of the bonds may adopt a resolution authorizing the renewal of temporary
notes for such additional period under the following conditions: (1) All project grant
payments and bond sale proceeds received shall be promptly applied toward project
costs or toward payment of such temporary notes as the same shall become due and
payable or shall be deposited in trust for such purposes; (2) no later than the end of each
period of twelve months after the end of such five-year period a portion of such temporary
notes equal to at least one-twentieth of the municipality's estimated cost of the project
shall be retired from funds other than project grants or land sale proceeds or note proceeds; (3) the interest on all temporary notes renewed after such five-year period shall
be paid from funds other than project grants or land sale proceeds or note proceeds; (4)
the principal amount of each bond issue when sold shall be reduced by the amounts
spent under subdivision (2) of this section, and the principal of such bonds shall be paid
in annual installments commencing no later than one year from the date of issue; and
(5) the maximum authorized term of the bonds when sold shall be reduced by not less
than the number of months from the end of such five-year period to the date of issue.
Any anticipated federal or state project grants or land sale proceeds may be used in
computing the municipality's cost of the project. Any municipality in which such resolution is passed shall include in its annual budget or shall otherwise appropriate sufficient
funds to make the payments required by subdivisions (2) and (3) of this subsection.
(P.A. 90-270, S. 8, 38; P.A. 93-158, S. 9, 11; P.A. 98-237, S. 5.)
History: P.A. 93-158 amended Subsecs. (a) and (b) adding provisions re temporary notes, effective June 23, 1993; P.A.
98-237 amended Subsec. (a) by authorizing the Connecticut Development Authority to issue bonds for a specified project
upon approval of the legislative body of the municipality in which the project is located, and made technical changes.
See Sec. 7-380b re issuance of bonds, notes or other obligations authorized before June 23, 1993.
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(b) The Commissioner of Economic and Community Development, with the approval of the Commissioner of Public Works, the Secretary of the Office of Policy and
Management and the State Properties Review Board, may: (1) Enter into a contract to
purchase, lease or hold any surplus real property made available by the federal government if the commissioner determines that such real property can be utilized for manufacturing or other economic base businesses or for business support services and (2) sell,
exchange, lease or enter into an agreement concerning any real property acquired by
the commissioner under subdivision (1) of this subsection. The commissioner shall
require, as a condition of any sale, exchange, lease or agreement entered into pursuant
to subdivision (2) of this subsection, that such real property be used primarily for manufacturing or other economic base businesses or for business support services. No such
land may be sold, exchanged or leased by the commissioner under subdivision (2) of
this subsection without prior consultation with each municipality in which such land is
located.
(c) The use of any land sold, exchanged or leased under this section shall be subject
to the planning, zoning, sanitary and building laws, ordinances or regulations of the
municipality in which such land is located.
(d) The Commissioner of Economic and Community Development may, with the
approval of the Commissioner of Public Works, the Secretary of the Office of Policy
and Management and the State Properties Review Board: (1) Enter into a contract to
purchase, lease or hold any real property, other than property owned by the state or made
available by the federal government, if the commissioner has entered into a contract to
sell, exchange or lease such property to another person who will utilize such property
for manufacturing or other economic base business or for business support services
provided such sale or lease shall close not later than one week after the commissioner
purchases, leases, holds or otherwise acquires such property and further provided such
contract shall provide that the transferor shall be liable for any costs associated with
remediation of environmental contamination of such real property; and (2) sell, exchange or lease any real property acquired by the commissioner under subdivision (1)
of this subsection. The commissioner shall require, as a condition of any sale, exchange,
lease or agreement entered into pursuant to subdivision (2) of this subsection, that such
real property be used primarily for manufacturing or other economic base business or
for business support services. No such land may be sold, exchanged or leased by the
commissioner under subdivision (2) of this subsection without prior consultation with
each municipality in which such real property is located provided any person who leases
such property from the commissioner under this subsection shall be liable to the municipality for any tax due under chapter 203 as if such lessee were the owner of such property.
The transferor shall be liable for any costs associated with remediation of environmental
contamination of any property which the Commissioner of Economic and Community
Development proposes to acquire under this section provided, in the case of a property
to be subsequently sold by the commissioner under this section, the commissioner may
enter into a contract with the subsequent transferee under which the transferee shall be
liable for such costs.
(P.A. 90-270, S. 9, 38; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 97-211, S. 1, 7.)
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; P.A. 97-211 added Subsec. (d) re acquisition and
transfer of certain real property by the commissioner, effective June 24, 1997.
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(P.A. 90-270, S. 10, 38; P.A. 96-264, S. 3, 8.)
History: P.A. 96-264 limited application of existing provisions to financial assistance received before July 1, 1996, and
applied provisions of Sec. 32-5a to financial assistance given on or after said date under Sec. 32-223, effective July 1, 1996.
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(b) The proceeds from the sale of bonds and any bond anticipation notes issued for
the purposes of sections 32-220 to 32-234, inclusive, shall be deposited into the fund,
except for any refunding bonds and bonds issued to refund bond anticipation notes. The
proceeds from bonds and bond anticipation notes deposited into the fund shall be applied
to pay the financial assistance provided for in said sections and administrative expenses
and other costs incurred by the department for bond-financed state programs authorized
by said sections, the State Bond Commission in accordance with section 3-20, and the
act or acts pursuant to which such bonds and bond anticipation notes were issued.
(P.A. 90-270, S. 11, 38; P.A. 91-340, S. 6, 8; P.A. 93-382, S. 12, 69; P.A. 96-181, S. 120, 121.)
History: P.A. 91-340 made a technical change to the references to "sections 32-220 to 32-234, inclusive," in Subsecs.
(b) and (c) (made necessary by the codification of new Sec. 32-222a), but the change necessitated no substantive change
to the wording of this section as codified; P.A. 93-382 deleted former Subsec. (d) re annual report to general assembly
committees, effective July 1, 1993; P.A. 96-181 deleted former Subsec. (c) imposing maximum amount for expenditures
for administrative expenses, effective July 1, 1996.
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(b) All moneys received in consideration of financial assistance, including payments of principal and interest on any loans, shall be credited to the fund. At the discretion
of the commissioner and subject to the approval of the Secretary of the Office of Policy
and Management, any federal, private or other moneys received by the state in connection with projects undertaken pursuant to sections 32-220 to 32-234, inclusive, shall be
credited to the assets of the fund.
(c) The commissioner may provide financial assistance pursuant to section 32-223
from the fund established under this section. Notwithstanding any provision of the general statutes, payment of any administrative expenses or other costs incurred by the
department in carrying out the purposes of sections 32-220 to 32-234, inclusive, may
be paid from the fund subject to the approval of the Governor.
(P.A. 90-270, S. 12, 38; P.A. 91-340, S. 7, 8; P.A. 94-95, S. 7.)
History: P.A. 91-340 made a technical change to the references to "sections 32-220 to 32-234, inclusive," in Subsecs.
(b) and (c) (made necessary by the codification of new Sec. 32-222a), but the change necessitated no change to the wording
of this section as codified; P.A. 94-95 amended Subsec. (a) eliminating requirement that the fund be kept separate and
apart from other moneys, funds and accounts and specified that fund may include other separate accounts.
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(P.A. 90-270, S. 13, 38; P.A. 91-280, S. 3, 4; May Sp. Sess. P.A. 94-2, S. 14, 203.)
History: P.A. 91-280 added the provision that any municipal development project for which a grant was pending under
Sec. 8-195 on July 1, 1990, shall be funded in accordance with said section; May Sp. Sess. P.A. 94-2 authorized the
commissioner to provide funding for Secs. 32-242 and 32-242a from Secs. 32-220 to 32-234, inclusive, effective July
1, 1994.
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(b) To the extent that the provisions of sections 32-220 to 32-234, inclusive, are
inconsistent with the provisions of any general statute or special act or parts thereof,
the provisions of said sections shall be deemed controlling.
(P.A. 90-270, S. 14, 38.)
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(P.A. 90-270, S. 15, 38.)
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(b) The proceeds of the sale of said bonds, to the extent of the amount stated in
subsection (a) of this section, shall be used by the Department of Economic and Community Development for the purposes of sections 32-220 to 32-234, inclusive, and for the
Connecticut job training finance demonstration program pursuant to sections 32-23uu
and 32-23vv provided, (1) three million dollars shall be used by said department solely
for the purposes of section 32-23uu and not more than five million two hundred fifty
thousand dollars of the amount stated in said subsection (a) may be used by said department for the purposes of section 31-3u, (2) not less than one million dollars shall be
used for an educational technology grant to the deployment center program and the
nonprofit business consortium deployment center approved pursuant to section 32-41l,
and (3) not less than two million dollars shall be used by said department for the establishment of a pilot program to make grants to businesses in designated areas of the state for
construction, renovation or improvement of small manufacturing facilities provided
such grants are matched by the business, a municipality or another financing entity. The
commissioner shall designate areas of the state where manufacturing is a substantial
part of the local economy and shall make grants under such pilot program which are
likely to produce a significant economic development benefit for the designated area.
(c) All provisions of section 3-20, or the exercise of any right or power granted
thereby which are not inconsistent with the provisions of this section are hereby adopted
and shall apply to all bonds authorized by the State Bond Commission pursuant to this
section, and temporary notes in anticipation of the money to be derived from the sale
of any such bonds so authorized may be issued in accordance with said section 3-20
and from time to time renewed. Such bonds shall mature at such time or times not
exceeding twenty years from their respective dates as may be provided in or pursuant
to the resolution or resolutions of the State Bond Commission authorizing such bonds.
None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed
by or on behalf of the Secretary of the Office of Policy and Management and states such
terms and conditions as said commission, in its discretion, may require. Said bonds
issued pursuant to this section shall be general obligations of the state and the full faith
and credit of the state of Connecticut are pledged for the payment of the principal of
and interest on said bonds as the same become due, and accordingly and as part of the
contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due.
(P.A. 90-270, S. 33, 38; P.A. 91-340, S. 5, 8; June Sp. Sess. P.A. 91-4, S. 22, 25; May Sp. Sess. P.A. 92-7, S. 24, 36;
P.A. 93-394, S. 2, 3; 93-433, S. 7, 26; June Sp. Sess. P.A. 93-1, S. 20, 45; May Sp. Sess. P.A. 94-2, S. 196, 203; P.A. 95-
250, S. 1; 95-272, S. 20, 29; P.A. 96-211, S. 1, 5, 6; June 5 Sp. Sess. P.A. 97-1, S. 18, 20; P.A. 98-259, S. 16, 17; P.A. 99-
241, S. 16, 66; 99-242, S. 89, 90; P.A. 00-167, S. 66, 69.)
History: P.A. 91-340 amended Subsec. (a) by increasing the maximum amount of state bonds the bond commission
may authorize for the purposes of sections 32-220 to 32-234, inclusive, from forty million to fifty million dollars and
amended Subsec. (b) by providing that ten million dollars of said total amount the bond commission may authorize shall
be used solely for defense diversification projects as defined in sections 32-222 and 32-222a; June Sp. Sess. P.A. 91-4
increased the bond authorization from fifty million dollars to seventy million dollars; May Sp. Sess. P.A. 92-7 amended
Subsec. (a) to increase the bond authorization from seventy million dollars to one hundred seventeen million five hundred
thousand dollars and amended Subsec. (b) to increase amount set aside for defense diversification projects from ten million
dollars to twenty-two million five hundred thousand dollars; P.A. 93-394 amended Subsec. (b) to set aside not more than
five million two hundred fifty thousand dollars for purposes of Sec. 31-3t, effective July 1, 1993; P.A. 93-433 raised
aggregate total of bonds from one hundred seventeen million five hundred thousand dollars to one hundred twenty-two
million five hundred thousand dollars and authorized bonds proceeds to be used for the Connecticut job training finance
demonstration program, effective July 1, 1993; June Sp. Sess. P.A. 93-1 amended Subsec. (a) to increase bond authorization
from one hundred twenty-two million five hundred thousand dollars to two hundred thirty-seven million five hundred
thousand dollars, effective July 1, 1993, provided forty million dollars of said authorization shall be effective July 1, 1994,
and amended Subsec. (b) to increase bond authorization from twenty-four million five hundred thousand dollars to forty-
two million five hundred thousand dollars, effective July 1, 1993, provided ten million dollars of said authorization shall
be effective July 1, 1994 (Revisor's note: The language enacted in Subsec. (b) by P.A. 93-433 and inadvertently omitted
from this act through clerical error was restored editorially by the Revisors); May Sp. Sess. P.A. 94-2 in Subsec. (a)
increased total bond authorization from two hundred thirty-seven million five hundred thousand dollars to two hundred
sixty-seven million five hundred thousand dollars and increased bond authorization from forty million dollars to seventy
million dollars, effective June 21, 1994; 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; P.A. 95-272 amended
Subsec. (a) to increase authorization from two hundred sixty-seven million five hundred thousand dollars to three hundred
two million five hundred thousand dollars, effective July 1, 1995, provided twenty-five million dollars shall be effective
July 1, 1996; June 5 Sp. Sess. P.A. 97-1 amended Subsec. (a) to increase bond authorization from three hundred two million
five hundred thousand dollars to three hundred twenty-five million three hundred thousand dollars provided five million
dollars of the authorization is effective July 1, 1998, effective July 31, 1997; P.A. 98-259, effective July 1, 1998, amended
Subsec. (a) to increase authorization from $325,300,000 to $329,300,000, provided $9,000,000 of said authorization was
effective July 1, 1998; P.A. 99-241 amended Subsec. (a) to increase authorization from $329,300,000 to $399,300,000,
provided $35,000,000 is effective July 1, 2000, and Subsec. (b) to add proviso that not less than $2,000,000 be used for a
pilot program to make grants to small manufacturing facilities in designated areas of the state effective July 1, 1999; P.A.
99-242 amended Subsec. (b) to add new Subdiv. (2) re one million dollars to be used for an educational technology grant
to the deployment center program and the nonprofit business consortium deployment center, effective July 1, 1999; P.A.
00-167 amended Subsec. (a) to increase the aggregate bond authorization from $399,300,000 to $465,300,000, effective
July 1, 2000, of which $101,000,000 is effective July 1, 2000.
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(P.A. 00-170, S. 29, 42.)
History: P.A. 00-170 effective May 26, 2000.
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(1) "Commissioner" means the Commissioner of Economic and Community Development;
(2) "Flexible manufacturing network" means a group of three or more private sector
firms working cooperatively to (A) manufacture products, (B) sell, market, develop
technologies for or create or disseminate information concerning manufactured products
or (C) provide manufacturing support services or computer integrated manufacturing
for such firms; and
(3) "Manufacturing support services" means services utilized by manufacturers to
improve productivity, including but not limited to, services related to quality, management, technology or product development, marketing or modernization.
(b) The commissioner shall award grants for the establishment of flexible manufacturing networks in the state. Such grants may be awarded to entities interested in establishing flexible manufacturing networks, including but not limited to, manufacturers,
trade associations, unions, municipalities and nonprofit corporations.
(c) The commissioner shall prepare and issue a request for proposals for flexible
manufacturing network services. The request for proposals shall require each person,
firm or corporation submitting a proposal to: (1) Indicate the manufacturing sector or
sectors to be included in the network, (2) indicate the persons, firms and corporations
expected to participate in the network, (3) identify common problems and needs of the
network participants, (4) indicate the objectives of the network, which may include but
shall not be limited to, sharing costs and risks, instituting joint worker training programs,
sharing new machines and equipment, using management consultant and extension services, utilizing centralized administrative support, accessing public and private development funds and identifying new business opportunities, (5) identify the specific tasks
that the network would undertake and (6) provide any other information deemed necessary by the Commissioner of Economic and Community Development.
(d) Not later than January 1, 1995, the commissioner shall report to the General
Assembly on the amount of money that would be necessary to provide a grant to a flexible
manufacturing network to enable the network to procure training for its participants in
high performance work practices.
(P.A. 92-236, S. 30, 48; P.A. 93-382, S. 13, 69; P.A. 94-116, S. 12, 28; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)
History: P.A. 93-382 deleted former Subsec. (d) re annual report to general assembly committee re department of
economic development, effective July 1, 1993; P.A. 94-116 added Subsec. (d) requiring report re funding needed for
high performance work practices grant, effective July 1, 1994; 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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(b) The proceeds of the sale of said bonds, to the extent of the amount stated in
subsection (a) of this section, shall be used by the Department of Economic and Community Development for the purposes of section 32-240.
(c) All provisions of section 3-20, or the exercise of any right or power granted
thereby which are not inconsistent with the provisions of this section are hereby adopted
and shall apply to all bonds authorized by the State Bond Commission pursuant to this
section, and temporary notes in anticipation of the money to be derived from the sale
of any such bonds so authorized may be issued in accordance with said section 3-20
and from time to time renewed. Such bonds shall mature at such time or times not
exceeding twenty years from their respective dates as may be provided in or pursuant
to the resolution or resolutions of the State Bond Commission authorizing such bonds.
None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed
by or on behalf of the Secretary of the Office of Policy and Management and states such
terms and conditions as said commission, in its discretion, may require. Said bonds
issued pursuant to this section shall be general obligations of the state and the full faith
and credit of the state of Connecticut are pledged for the payment of the principal of
and interest on said bonds as the same become due, and accordingly and as part of the
contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due.
(P.A. 92-236, S. 44, 48; June Sp. Sess. P.A. 93-1, S. 21, 45; July Sp. Sess. P.A. 93-1, S. 2, 3; P.A. 95-250, S. 1; P.A.
96-211, S. 1, 5, 6.)
History: June Sp. Sess. P.A. 93-1 amended Subsec. (a) to increase bond authorization from one hundred million dollars
to one hundred eighty-four one hundred thousand dollars, effective July 1, 1993, provided forty-three million nine hundred
thousand dollars of said authorization shall be effective July 1, 1994; July Sp. Sess. P.A. 93-1 deleted former Subsec. (a),
as amended by section 21 of June Sp. Sess. P.A. 93-1 since the amendment was enacted in error, and reenacted said Subsec.
with the same wording as existed prior to said amendment, effective July 15, 1993; 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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(May Sp. Sess. P.A. 94-2, S. 12, 203; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)
History: May Sp. Sess. P.A. 94-2, S. 12, effective July 1, 1994; 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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(b) All moneys received by the department in consideration for air pollution emission reduction credits previously acquired by the secretary and transferred hereunder,
including but not limited to lease payments, licensee fees and payments of principal and
interest on any loans or purchase money obligations, shall be paid over to the Office of
Policy and Management and credited to the program to be administered by the secretary
under this section. Any additional credits procured with such moneys shall be held as
part of such program and shall be available to the secretary to provide financial assistance
as set forth in section 32-242 in accordance with the procedures established by the
secretary pursuant to subsection (a) of this section. Any balance remaining in such
program at the end of any fiscal year shall be carried forward in the program for the
fiscal year next succeeding.
(c) Notwithstanding any provision of the general statutes, any administrative expenses or any other costs of the secretary in carrying out the purposes of this section
may be paid from the resources of such program.
(May Sp. Sess. P.A. 94-2, S. 13, 203; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)
History: May Sp. Sess. P.A. 94-2, S. 13, effective July 1, 1994; 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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(b) The enumeration in this section of particular types of data and information shall
not be construed to limit the possible applicability of subdivision (5) of subsection (b)
of section 1-210 to other data or information not so enumerated.
(P.A. 00-136, S. 3.)
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