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HB 5271 AAC Standards for State Economic Development Assistance

This bill places requirements on for-profit entities seeking more than $ 500,000 of economic development assistance from the Department of Economic and Community Development commissioner, the Connecticut Development Authority board of directors, the Connecticut Innovation, Inc. , board of directors, or any state agency.

The bill applies to any economic development grant, loan, loan guarantee, or tax benefit that is not of general applicability. It applies if the assistance is more than $ 500,000 or, if added to other assistance the entity has received in the past five years, equals more than $ 500,000.

The bill requires the entity to enter an agreement for at least five years (or a longer term if the agreement specifies) to:

1. materially and substantially comply with federal and state law,

2. provide standard compensation rates to its full-time and part-time employees that (a) the labor commissioner establishes and (b) includes benefits or their actuarial equivalent, and

3. maintain or increase full-time employment.

The bill establishes noncompliance penalties. It requires the state authority to include a requirement in its agreements concerning proof that entities are complying with the bill. The authority can require them to provide information necessary to determine compliance.

If the form of assistance is a loan, the recipient must agree in writing to repay the full amount of the loan.

Effective Date: October 1, 2002

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