"AN ACT ESTABLISHING A REVENUE ACCOUNTABILITY COMMISSION. "

Strike line 84 in its entirety and insert the following in lieu thereof: "statutes. The report's findings shall include a study of the impact on business growth and the state's economy resulting from (A) the small business loan program established by section 501 of this act, (B) the jobs creation tax credit established by section 12-217ii of the general statutes, as amended by this act, and (C) the repeal of the business entity tax. Such report shall also include the commission's"

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. (NEW) (Effective July 1, 2010) (a) As used in this section, "qualified business" means a business employing one hundred or fewer employees.

(b) Subject to the availability of funds, the Commissioner of Economic and Community Development may establish a qualified business assistance program to provide loans to qualified businesses.

(c) To implement the program established pursuant to subsection (b) of this section, the commissioner may make or cause to be made direct loans to any qualified business, provided the cumulative total of outstanding loans (1) to any business at any time shall not exceed five hundred thousand dollars, and (2) to all businesses at any time shall not exceed twenty-five million dollars. The commissioner may enter into participation agreements with the Connecticut Development Authority, provided such agreements shall be limited to loans that meet the requirements of this section.

(d) There is established an account to be known as the "qualified business revolving loan account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Payments of principal or interest on a loan made pursuant to this section shall be paid to the State Treasurer for deposit in the qualified business revolving loan account. Moneys in the account shall be expended by the Commissioner of Economic and Community Development for the purposes of the qualified business assistance program established pursuant to this section, including reasonable and necessary expenses incurred in administering loans under this section.

(e) The commissioner shall adopt regulations in accordance with chapter 54 of the general statutes to implement the provisions of this section. Such regulations shall include, but need not be limited to, eligibility criteria and terms and conditions for loans.

Sec. 502. (Effective July 1, 2010) (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 twenty-five million dollars.

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be deposited in the qualified business revolving loan account established by section 501 of this act, and used by the Department of Economic and Community Development for the purpose of the qualified business assistance program established pursuant to section 501 of this act.

(c) All provisions of section 3-20 of the general statutes, 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 State Treasurer shall pay such principal and interest as the same become due.

Sec. 503. (NEW) (Effective October 1, 2010) (a) As used in this section:

(1) "Jobs" means permanent, full-time equivalent positions, not including construction jobs;

(2) "Commissioner" means the Commissioner of Economic and Community Development;

(3) "Permit applications" means applications for state permits and licenses; and

(4) "Permit ombudsman" means the office of the permit ombudsman established within the Department of Economic and Community Development under this section.

(b) (1) The commissioner shall establish an office of the permit ombudsman for the purpose of expediting review of permit applications for projects that would (A) create at least one hundred jobs, (B) create fifty jobs, if such project is to be located in an enterprise zone designated pursuant to section 32-70 of the general statutes, (C) include not less than one hundred residential units of affordable or work force housing that is compatible with the state's responsible growth initiatives, (D) be located in a brownfield, as defined in section 32-9cc of the general statutes, (E) be compatible with the state's responsible growth initiatives, or (F) meet the criteria set forth in subdivision (2) of this subsection. Projects ineligible for review under this section are projects for which the primary purpose is to (i) effect the final disposal of solid waste, biomedical waste or hazardous waste in this state, (ii) produce electrical power, unless the production of electricity is incidental and not the primary function of the project, (iii) extract natural resources, (iv) produce oil, or (v) construct, maintain or operate an oil, petroleum, natural gas or sewage pipeline.

(2) Notwithstanding the provisions of subdivision (1) of this subsection, the commissioner may, upon consideration of the economic impact factors of the project that include, but are not limited to: (A) The proposed wage and skill levels relative to those existing in the area in which the project may be located, (B) the project's potential to diversify and strengthen the state and local economy, (C) the amount of capital investment, and (D) in the judgment of the commissioner, after consultation with the departments of Environmental Protection, Transportation and Public Health that there is consistency with the strategic economic Development priorities of the state and the municipality, deem projects eligible for expedited permitting pursuant to this section.

(c) Within available appropriations, the Departments of Environmental Protection, Transportation and Public Health shall each designate through existing resources one or more staff members to act as a business ombudsmen and a liaison between their offices and the permit ombudsmen. The Commissioners of Economic and Community Development, Environmental Protection, Transportation and Public Health shall enter into a memorandum of understanding concerning each entity's responsibilities with respect to the permit ombudsmen and the process for expediting eligible permit applications.

(d) The memorandum of understanding may provide for the waiver or modification of procedural rules prescribing forms, fees, procedures or time limits for the review or processing of permit applications under the jurisdiction of those agencies. Notwithstanding any other provision of the general statutes, to the extent feasible, the memorandum of understanding shall provide for proceedings and hearings otherwise held separately by the parties to be combined into one proceeding or held jointly and at one location. Such waivers or modifications shall not be available for permit applications governed by federally delegated or approved permitting programs, the requirements of which would prohibit, or be inconsistent with, such waivers or modifications.

(e) The permit ombudsman may develop and recruit two volunteers from the private sector, including a person from a state-wide business association and one from an association representing small businesses. Said volunteers may assist the permit ombudsman in developing the guidelines established pursuant to subsection (f) of this section.

(f) The permit ombudsman, subject to the approval of the Commissioner of Economic and Community Development, shall establish, pursuant to subsection (c) of this section, guidelines to be used in working with state permitting authorities to implement the provisions of this section. Guidelines may include, but are not limited to, the following: (1) An agency contact point for filing permit applications and for obtaining information on permit requirements; (2) identification of the individual or individuals within each respective agency who shall be responsible for processing the expedited permit application; (3) a mandatory preapplication review process to reduce permitting conflicts by providing guidance to applicants on (A) the permits needed from each agency, (B) specifications for site planning and development, site suitability and limitations and facility design, and (C) steps the applicant can take to ensure expeditious permit application and local comprehensive plan amendment review; (4) a single, coordinated project description form and checklist and an agreement by state agencies to reduce the necessity that an applicant provide duplicate information to multiple agencies; and (5) an application fee structure for permit expedition.

(g) The permit ombudsman, at the request of the Commissioner of Economic and Community Development, may call upon any other department, board, commission or other agency of the state to assist in providing information and assistance as said permit ombudsman determines necessary to expedite its duties and responsibilities. Each officer or employee of such office, department, board, commission or other agency of the state shall make reasonable efforts to cooperate with the permit ombudsman.

(h) The expedited permitting process established pursuant to this section shall not modify, qualify or otherwise alter existing agency nonprocedural standards for permit applications, unless expressly authorized by law. If it is determined that the applicant is not eligible to use this process, the applicant may apply for permitting of the project through the normal permitting processes.

Sec. 504. (NEW) (Effective July 1, 2010) (a) Beginning with the regular session of the General Assembly commencing on January 5, 2011, an employment impact statement shall be prepared with respect to certain bills and amendments that could, if passed, increase or decrease the level of employment in this state.

(b) Not later than January 1, 2011, the joint standing committees of the General Assembly on commerce and finance, revenue and bonding shall make recommendations for a provision to be included in the joint rules of the House of Representatives and the Senate concerning the procedure for the preparation of such employment impact statements, the content of such statements and the types of bills and amendments with respect to which such statements should be prepared.

Sec. 505. Section 12-217ii of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010, and applicable to income or taxable years, as applicable, commencing on or after January 1, 2010):

(a) As used in this section:

(1) "Commissioner" means the Commissioner of Economic and Community Development;

(2) "Income year" means, with respect to entities subject to the insurance premiums tax under chapter 207, the corporation business tax under this chapter or the [utilities company] utility companies tax under chapter 212, the income year as determined under each of said chapters, as the case may be, or with respect to the partners or members of affected business entities, the taxable year as determined under chapter 229;

(3) "Taxpayer" means a person subject to tax under chapter 207, this chapter or chapter 212, or an affected business entity, as defined in section 12-284b, the partners or members of which are subject to tax under chapter 229;

(4) ["New] "Net new job" means a full-time job which [(A) did not exist in this state prior to a taxpayer's application to the commissioner for an eligibility certificate under this section for a job creation credit, and (B)] is newly-created by the taxpayer and is filled by a new employee;

(5) "New employee" means a [person] state resident hired by the taxpayer to fill a new full-time job in Connecticut. A new employee does not include a person who was employed in Connecticut by a related person with respect to the taxpayer during the prior twelve months;

(6) "Full-time job" means a job in which an employee is required to work at least thirty-five or more hours per week. A full-time job does not include a temporary or seasonal job;

(7) "Related person" means (A) a corporation, limited liability company, partnership, association or trust controlled by the taxpayer, (B) an individual, corporation, limited liability company, partnership, association or trust that is in control of the taxpayer, (C) a corporation, limited liability company, partnership, association or trust controlled by an individual, corporation, limited liability company, partnership, association or trust that is in control of the taxpayer, or (D) a member of the same controlled group as the taxpayer; and

(8) "Control", with respect to a corporation, means ownership, directly or indirectly, of stock possessing fifty per cent or more of the total combined voting power of all classes of the stock of such corporation entitled to vote. "Control", with respect to a trust, means ownership, directly or indirectly, of fifty per cent or more of the beneficial interest in the principal or income of such trust. The ownership of stock in a corporation, of a capital or profits interest in a partnership, limited liability company or association or of a beneficial interest in a trust shall be determined in accordance with the rules for constructive ownership of stock provided in Section 267(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, other than paragraph (3) of said Section 267(c).

(b) (1) There is established a jobs creation tax credit program whereby a taxpayer who creates [at least ten new jobs in Connecticut] a net new job may be allowed a credit against the tax imposed under chapter 207, this chapter, [or] chapter 212 [, in an amount up to sixty per cent of the income tax deducted and withheld from the wages of new employees and paid over to the state pursuant to chapter 229] or chapter 229, provided the new employee hired for such net new job was, at the time of hiring, receiving benefits pursuant to chapter 567 or had exhausted all such benefits and was not currently working in a full-time job. The amount of such credit shall be in an amount equal to four hundred dollars per month that each new employee remains in the net new job. For each new employee, credits may be granted for thirty-six successive months.

[(2) For each new employee, credits may be granted for five successive years. ]

[(3)] (2) The credit shall be claimed in the income year in which it is earned. Any credits not used in [a tax] an income year shall expire.

(c) Any taxpayer planning to create one or more net new jobs and claim a credit under the provisions of this section shall apply to the commissioner in accordance with the provisions of this section. The application shall be on a form provided by the commissioner, and shall contain sufficient information concerning the number of net new jobs to be created, feasibility studies or business plans for the increased number of jobs, projected state and local revenue that might derive as a result of the job growth and other information necessary to demonstrate that there will be net benefits to the economy of the municipality and the state. The commissioner shall impose a fee for such application as the commissioner deems appropriate. The commissioner shall consider applications and approve tax credits to taxpayers in the order in which such applications are received.

(d) The commissioner shall determine whether (1) the taxpayer making the application is eligible for the tax credit, (2) the new employee was receiving benefits pursuant to chapter 567 or had exhausted such benefits and was not currently working in a full-time job, and [(2)] (3) the proposed job growth (A) is economically viable only with use of the tax credit, (B) would provide a net benefit to economic development and employment opportunities in the state, and (C) conforms to the state plan of conservation and development prepared pursuant to section 16a-24. The commissioner may require the applicant to submit such additional information as may be necessary to evaluate the application.

(e) (1) The commissioner, upon consideration of the application and any additional information the commissioner requires concerning the job growth, may approve the credit application, in whole or in part, if the commissioner concludes that the increase in the number of jobs is economically viable only with the use of the tax credit and that the revenue generated due to economic development and employment opportunities created in the state exceeds the credit and any other credits to be taken. If the commissioner disapproves an application, the commissioner shall specifically identify the defects in the application and specifically explain the reasons for the disapproval. The commissioner shall render a decision on an application not later than ninety days after the date of its receipt by the commissioner.

(2) The total amount of credits granted to all taxpayers shall not exceed [ten million] seventeen million five hundred thousand dollars in any one fiscal year. No new tax credits may be allowed pursuant to this section in any one fiscal year once the seventeen-million-five-hundred-thousand-dollar limit is reached.

(3) [A credit under this section may be granted to a taxpayer for not more than five successive income years. ] No new tax credits shall be allowed pursuant to this section after December 31, 2013.

(4) The commissioner may combine approval of a credit application with the exercise of any of the commissioner's other powers, including, but not limited to, the provision of other forms of financial assistance.

(f) Upon approving a taxpayer's credit application, the commissioner shall issue a credit allocation notice certifying that the credits will be available to be claimed by the taxpayer if the taxpayer otherwise meets the requirements of this section. No later than thirty days after the close of the taxpayer's income year, the taxpayer shall provide information to the commissioner regarding the number of net new jobs created for the year. [and the income tax deducted and withheld from the wages of such new employees and paid over to the state for such year. ] The commissioner shall issue a certificate of eligibility that includes the taxpayer's name, the number of net new jobs created, and the amount of the credit certified for the year. The certificate shall be issued by the commissioner sixty days after the close of the taxpayer's income year or thirty days after the information is provided, whichever comes first.

(g) The commissioner shall, upon request, provide a copy of the certificate of eligibility issued under subsection (f) of this section to the Commissioner of Revenue Services.

[(h) (1) If (A) the number of new employees on account of which a taxpayer claimed the credit allowed by this section decreases to less than the number for which the commissioner issued an eligibility certificate during any of the four years succeeding the first full income year following the issuance of an eligibility certificate, and (B) those employees are not replaced by other employees who have not been shifted from an existing location of the taxpayer or a related person in this state, the taxpayer shall be required to recapture a percentage of the credit allowed under this section on its tax return, as determined under the provisions of subdivision (2) of this subsection. The commissioner shall provide notice of the required recapture amount to both the taxpayer and the Commissioner of Revenue Services.

(2) If the taxpayer is required under the provisions of subdivision (1) of this subsection to recapture a portion of the credit during (A) the first of such four years, then ninety per cent of the credit allowed shall be recaptured on the tax return required to be filed for such year, (B) the second of such four years, then sixty-five per cent of the credit allowed for the entire period of eligibility shall be recaptured on the tax return required to be filed for such year, (C) the third of such four years, then fifty per cent of the credit allowed for the entire period of eligibility shall be recaptured on the tax return required to be filed for such year, (D) the fourth of such four years, then thirty per cent of the credit allowed for the entire period of eligibility shall be recaptured on the tax return required to be filed for such year. ]

Sec. 506. Section 12-284b of the general statutes is repealed. (Effective from passage and applicable to taxable years commencing on or after January 1, 2010)"