June 2, 2004 |
2004-R-0458 | |
2004 INDUSTRY CLUSTER LEGISLATION | ||
| ||
By: John Rappa, Principal Analyst | ||
You want to know the status of 2004 bills affecting industry clusters, including those implementing the recommendations of the Governor’s Council on Economic Competitiveness and Technology.
Legislators proposed at least 13 bills affecting industry clusters, 11 of which would have implemented some of the recommendations proposed by the Governor’s Council on Economic Competitiveness and Technology in Partnership for Growth II: A Competitiveness Agenda for Connecticut (March 2004). The legislature enacted five, four of which implement some of the council’s recommendations. Table 1 summarizes these acts. Table 2 shows the final status of the cluster bills, some of which contain similar or identical provisions.
Table 1: 2004 Acts Affecting Industry Clusters
Act |
Council Recommendation |
Summary |
PA 04-106, AAC Bonds Issued by the Connecticut Development Authority and Its Subsidiaries on Behalf of Municipalities for Remediation Projects |
No |
Makes its easier for the Connecticut Development Authority (CDA) to issue bonds on behalf of towns for developing or redeveloping contaminated sites or properties involving the use of information technologies |
PA 04-212, AAC Workforce Development |
Yes |
• Authorizes Office of Workforce Competitiveness (OWC) challenge grants for university-business educational partnerships in technology-related fields • Requires OWC to coordinate the way state agencies develop and implement strategies promoting technology-based talent and innovation |
PA 04-235, AAC the Research and Development Tax Credit Exchange |
Yes |
Makes companies paying the alternative capital base corporation tax permanently eligible for R&D tax credit refunds if they grossed less than $ 70 million in the prior fiscal year, excluding transactions with related companies |
PA 04-216, AA Making Adjustments To The State Budget For The Biennium Ending June 30, 2005, And Making Appropriations Therefor, Making Deficiency Appropriations For The Fiscal Year Ending June 30, 2004, And Making Adjustments To State And Municipal Revenues |
Yes |
• Carries forward $ 200,000 appropriation for hiring consultants to prepare a seed capital plan for inner city development and high technology • $ 200,000 appropriation for entrepreneurial training |
PA 04-1, (§12), May Special Session, AA Increasing Certain Bond Authorizations for Capital Improvements |
Yes |
Authorizes: • manufacturing Assistance Act funding for supporting industry clusters and • up to $ 5 million for a manufacturing competitiveness grants program |
Most of the council’s 41 recommendations were not drafted into legislation and many, in our judgment, did not require implementing legislation. Table 3 lists the recommendations, identifies those we believe require implementing legislation, indicates whether legislation was drafted, and if so, indicates its final status.
Table 2: Status of 2004 Industry Cluster Bills
Bill No. |
Cluster Provisions |
Status | |
Description |
Council Recommendation | ||
SB 203, AAC Bonds Issued by the Connecticut Development Authority and Its Subsidiaries on Behalf of Municipalities for Remediation Projects |
Makes its easier for the Connecticut Development Authority (CDA) to issue bonds on behalf of towns for developing or redeveloping contaminated sites or properties involving the use of information technologies |
No (1) |
Enacted (PA 04-106) |
sSB 207, AA Establishing a Seed Capital Fund for Early State Companies in the BioSciences and Software and Information Technology Industries |
Requires Department of Economic and Community Development (DECD) to prepare a plan for creating a fund to dedicated to assist bioscience and software and information technology companies during their early developmental stages |
Yes |
Died in Finance, Revenue and Bonding Committee |
sSB 257, AAC the Urban and Industrial Sites Reinvestment Program |
• Earmarks $ 150 million in urban and industrial sites reinvestment tax credits for projects relating to the clusters and renewable energy technology • Lowers, from $ 20 million to $ 5 million, the minimum amount a business must invest directly in a project to qualify for the credits |
No Yes |
Died in Finance |
sSB 259, AAC a Small Business Office within the Department of Economic and Community Development |
• Requires DECD and Connecticut Innovations, Inc. (CII) to prepare a plan for directing equity capital to start-up and early stage technology-based companies • Requires state agencies to explain why a proposed regulation does not adversely affect small business and thus does not require them to prepare the a regulatory flexibility analysis • Requires DECD to establish an office to help small businesses obtain the services that address their specific needs. |
Yes Yes No |
Died on House calendar (File 630, as amended by Senate A) |
sSB 506, AAC the Cluster and CONNSTEP Initiatives |
• Increases from $ 4 million to $ 5 million the bond authorization for CONNSTEP • Allows CONNSTEP to hire a national consultant to recommend how it could help manufacturers adopt latest production technologies and techniques by tapping at least $ 100,000 from the above bond proceeds • Requires Governor’s Council on Economic Competitiveness to prepare cluster forecasts and DECD to prepare annual cluster budgets • Extends the Council’s authorization until December 31, 2006 |
Yes Yes No Yes |
Senate recommitted (File 595) to Commerce Committee |
sSB, 517 AAC Workforce Development |
• Authorizes Office of Workforce Competitiveness (OWC) challenge grants for university-business educational partnerships in technology-related fields • Requires OWC to coordinate the way state agencies develop and implement strategies promoting technology-based talent and innovation |
Yes Yes |
Enacted (PA 04-212) |
sHB, 5036 AAC the Governor’s Economic Development and Inner City Initiatives |
• Authorizes OWC to promote university-business educational partnerships in technology-related fields • Authorizes DECD to provide entrepreneurial training and assistance in distressed municipalities • Authorizes DECD to help small- and medium-size manufacturers to o adopt manufacturing techniques and advanced technologies o develop their workforces and increase jobs o identify new domestic and foreign markets o create a center providing access to the latest computer-aided product design and development technology |
Yes Yes Yes |
Died on the House Calendar (File 249) |
sHB 5044, AAC Plans of Conservation and Development |
Authorized policy restricting state funding for growth-related projects to already developed areas |
Yes(2) |
Died on House calendar (File 248) |
HB 5245, AAC the Research and Development Tax Credit Exchange |
Makes companies paying the alternative capital base corporation tax permanently eligible for R&D tax credit refunds if they grossed less than $ 70 million in the prior fiscal year, excluding transactions with related companies |
Yes |
Enacted (PA 04-235) |
sHB 5369, AAC Status of Manufacturing in Connecticut |
• Requires DECD to recommend legislation to help manufacturers become more competitive by; o expanding use of progressive manufacturing techniques and advanced technology; o creating virtual centers providing information about domestic and foreign market opportunities and designing new products; o improving manufacturing workers’ skills; and o establish “next generation” virtual manufacturing center • Establishes a task force to compare the cost of manufacturing in Connecticut with those of competing states |
Yes Yes |
Died in Legislative Management |
sHB 5647, AAC the Urban and Industrial Sites Reinvestment Program |
Lowers, from $ 20 million to $ 5 million, the minimum amount a business must invest directly in a project to qualify for the credits |
Yes |
Died on House Calendar (File 536) |
HB 5692, An Act Making Adjustments To The State Budget For The Biennium Ending June 30, 2005, And Making Appropriations Therefor, Making Deficiency Appropriations For The Fiscal Year Ending June 30, 2004, And Making Adjustments To State And Municipal Revenues. |
• Carries forward $ 200,000 appropriation for hiring consultants to prepare a seed capital plan for inner city development and high technology • $ 200,000 appropriation for entrepreneurial training |
Yes Yes |
Enacted: PA 04-216 |
SB 801, May Special Session AA Increasing Certain Bond Authorizations for Capital Improvements |
Allows DECD to use: • Manufacturing Assistance Act funds to support industry clusters and • up to $ 5 million for a manufacturing competitiveness grants program |
Yes Yes |
Enacted: PA 04-1, (§12), May Special Session |
(1) The Connecticut Development Authority proposed this bill as part of its legislative package, but not necessarily to implement the council’s brownfield recommendation. We included it because it addresses the same need as the council’s recommendation, namely to expedite the process of restoring brownfields to productive uses.
(2) sHB 5044 would have targeted state development dollars at areas where the supporting infrastructure already exists (i. e. , smart growth), which the council also recommended. But it is not clear if the bill’s sponsors intended to implement the council’s recommendation.
Table 3: 2004 Governor’s Council on Economic Competitiveness and Technology Recommendations
Recommendation |
Required Legislation |
Status of Implementing Legislation | ||
Proposed |
Bill No. |
Status | ||
Progressive manufacturing initiative |
Yes |
Yes |
506 |
Died in Committee |
Manufacturing machinery and equipment property tax phase-out |
Yes |
No |
Not Applicable (NA) |
NA |
Manufacturing best practices |
No |
Yes |
506 5369 |
Died in Committee Died in Committee |
Advanced manufacturing technology center |
Yes |
Yes |
5036 5369 |
Died in House Died in Committee |
CONNSTEP upgrade |
No |
Yes |
506 |
Died in Committee |
State and federal manufacturing-related policies |
No |
Yes |
5369 |
Died in Committee |
Seed capital fund plan |
Yes |
No |
207 |
Died in Committee |
R&D tax credit refund |
Yes |
Yes |
5245 |
Enacted: PA 04-235 |
Income tax rebate for employee job training |
Yes |
No |
NA |
NA |
Legislative technology committee |
No |
No |
NA |
NA |
Tax credit extension to LLCs and LLPs |
Yes |
No |
NA |
NA |
Technology transfer and commercialization strategy |
No |
No |
NA |
NA |
Nanotechnology Initiative |
No |
No |
NA |
NA |
Marketing Connecticut’s entrepreneurial culture |
No |
Yes |
5036 |
Died in Committee |
Support organizations promoting industry collaboration |
No |
No |
NA |
NA |
$ 25 million private equity fund for inner cities plan |
Yes |
Yes |
5692 |
Enacted: PA 04-216 |
Urban Neighborhood Initiative |
No |
No |
NA |
NA |
Enterprise zone benefits extension to non manufacturers |
No |
No |
NA |
NA |
Urban Reinvestment Act minimum investment threshold reduction |
Yes |
Yes |
259 5647 |
Died in House Died in House |
Increased funding for inner city entrepreneurial development |
Yes |
Yes |
5692 |
Enacted: PA 04-216 |
Strategies for expediting brownfield remediation |
No |
No |
NA |
NA |
Streamlined permitting and licensing processes |
No |
No |
NA |
NA |
Continued participation in inner city entrepreneurial development programs |
No |
Yes |
5036 |
Died in House |
Marketing successfully inner city entrepreneurial development programs |
No |
No |
NA |
NA |
Industry Cluster Resource Center in the Community-Technical Colleges |
No |
No |
NA |
NA |
Industry-specific skill standards, curriculum, and career ladders developed in Community-Technical Colleges |
No |
Yes |
517 5036 |
Enacted: PA 04-212 Died in House |
Streamlined Vocational-Technical High School System |
Yes |
No |
NA |
NA |
Increased support for STRIVE initiatives |
No |
Yes |
5692 |
Enacted: PA 04-1, MSS |
Dedicated tax revenues for funding transportation infrastructure projects |
No |
No |
NA |
NA |
Facilitate overseas flights out of Bradley International Airports |
No |
No |
NA |
NA |
Coordinated state port improvement programs |
No |
No |
NA |
NA |
DECD’s participation in smart growth discussions |
No |
No |
NA |
NA |
Target state-funded development at already developed areas |
Yes |
Yes |
5044 |
Died in House |
Compare Connecticut’s regulatory processes with those of competing states |
No |
Yes |
5369 |
Died in Committee |
Require economic impact statements for proposed regulations |
Yes |
No |
NA |
NA |
Extend the Governor’s Council until December 31, 2006 |
No |
Yes |
506 |
Died in Committee |
Shorten council’s name |
No |
No |
NA |
NA |
Increase bipartisan participation on the council |
No |
No |
NA |
NA |
Continued state support for industry clusters |
No |
Yes |
257 801, May Special Session (MSS) |
Died in Committee Enacted: PA 04-1, MSS |
Create DECD ombudsmen for specific industries |
No |
No |
NA |
NA |
Increase business and government participation in the clusters |
No |
No |
NA |
NA |
JR: ro