Substitute House Bill No. 7007
          Substitute House Bill No. 7007

              PUBLIC ACT NO. 95-334

AN ACT CONCERNING  THE  ESTABLISHMENT OF A FREEDOM
TRAIL FOR THE  STATE  OF  CONNECTICUT, CONNECTICUT
DEVELOPMENT AUTHORITY AND  DEPARTMENT  OF ECONOMIC
DEVELOPMENT PROGRAMS AND ENTERTAINMENT DISTRICTS.


    Section  1.  (NEW)  The Connecticut Historical
Commission,  in  conjunction  with   The   Amistad
Committee,  Inc.,  New  Haven,  shall  establish a
Freedom Trail for the state of  Connecticut  which
marks,  with plaques, the sites of the underground
railroad and  related  sites.  The  department  of
economic  development shall establish a program to
publicize the existence of The Freedom  Trail  and
shall  publish  a  brochure  which  indicates  the
location and history of the sites.
    Sec. 2. Section 32-261 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) There is  created within the authority the
Connecticut Works Guarantee  Fund.  The  authority
may issue or  make  advance  commitments  to issue
guarantees  of  loans   and  guarantees  of  other
investments. No guarantee or commitment to issue a
guarantee shall be provided or entered into by the
authority pursuant to  this  section  which  would
cause the aggregate  amount of all such guarantees
and commitments then  outstanding  to  exceed four
times the sum of the amounts available in the fund
plus the amount of any unpaid grants authorized to
be made by  the department of economic development
to the authority  for  deposit  in  the fund which
remain available for purposes of the fund pursuant
to  the  bond  authorization  in  section  32-262,
provided the amount  of  any  guarantee  shall  be
measured by the  portion of unpaid loan principal,
or  its  equivalent   in   the   case   of   other
investments, which is  guaranteed by the authority
and shall exclude  for purposes of such limitation
the amount of  any  such  guarantee  to the extent
that the liability  of  the authority with respect
thereto has been reinsured or otherwise assumed by
an eligible financial institution with a long-term
credit rating equal  to or higher than that of the
state. The purposes  of such program shall be: (1)
To  encourage  the   growth   and   retention   of
manufacturing firms and  other  businesses  in the
state that are  unable  to  obtain financing under
reasonable  terms  and   conditions   due  to  the
contraction in liquidity  in  the  banking system;
(2) to stimulate the growth and retention of jobs,
the development of  all  geographic regions of the
state and the  increase in state and municipal tax
revenue; and (3)  to  address  concerns  with  the
availability   of   financing   which   has   been
discontinued subsequent to  a  merger, takeover or
liquidation  of  a   financial  institution  by  a
federal  financial  regulatory   institution.  The
authority shall utilize  the authority provided by
this section to  achieve  the  maximum creation or
retention  of  jobs,   especially   high  quality,
skilled  jobs, with  the  funds  available.  There
shall be deposited  in the fund all guarantee fees
and  all  proceeds   of   collateral   and   other
recoveries with respect  to  payments  made  under
guarantees and any and all other moneys or assets,
other   than   payments   on   guarantees   issued
hereunder, received by the authority in return for
any  guarantee  provided   or   offered,   whether
pursuant to any  applicable  contract or agreement
entered into by the authority under subsection (j)
of this section  or otherwise. Amounts in the fund
shall be used  in  accordance with this section to
satisfy   any  valid   guarantee   claim   payable
therefrom and may  be  used  for any other purpose
determined by the  authority  to be in furtherance
of any guarantee or any contract or agreement with
an  eligible financial  institution  entered  into
pursuant to this  section  or  determined  by  the
authority  to  be   necessary  or  appropriate  to
protect the interests  of  the  authority  or  the
fund,  including, without  limitation,  protecting
the interests of  the  authority  in  any  project
during any period of loan delinquency or upon loan
default. ANY ADMINISTRATIVE  EXPENSES  INCURRED IN
CARRYING OUT THE  PROVISIONS  OF  THIS SECTION, TO
THE EXTENT NOT  PAID  BY  THE  AUTHORITY, SHALL BE
PAID FROM THE FUND. EACH PAYMENT FROM THE FUND FOR
SUCH ADMINISTRATIVE EXPENSES  SHALL BE MADE BY THE
AUTHORITY UPON CERTIFICATION BY THE CHAIRPERSON OF
THE AUTHORITY THAT THE PAYMENT IS AUTHORIZED UNDER
THE  PROVISIONS  OF   THIS   SECTION,   UNDER  THE
APPLICABLE RULES AND REGULATIONS OF THE AUTHORITY.
ANY AMOUNTS IN  THE  FUND  NOT CURRENTLY NEEDED TO
MEET THE OBLIGATIONS  OF THE FUND AND THE EXPENSES
OF THE AUTHORITY  MAY  BE  INVESTED IN OBLIGATIONS
DESIGNATED BY THE  AUTHORITY,  AND ALL INCOME FROM
SUCH INVESTMENTS SHALL BECOME PART OF THE FUND.
    (b)  The  authority   may  issue  to  eligible
financial  institutions,  upon   such   terms  and
conditions  as  the   authority   may   determine,
guarantees  of  loans   and  guarantees  of  other
investments the proceeds of which will be used for
a business purpose  whose  economic impact will be
in this state.
    (c)  The  authority   shall   determine  which
financial institutions are eligible to participate
in  the  guarantee  program  consistent  with  any
applicable   principles   set    forth    in   the
participation guidelines for  the  loan  guarantee
program  of  the   Connecticut   Works  Fund.  The
authority  shall encourage  the  participation  of
financial  institutions  of  all  sizes  from  all
regions of the state.
    (d) (1) The  authority may issue guarantees of
loans and other  investments,  consistent with any
applicable principles set forth in the eligibility
guidelines for the  loan  guarantee program of the
Connecticut Works Fund,  for  any project used for
manufacturing,   industrial,   research,   product
warehousing, distribution or  other purposes which
will create or  retain jobs, maintain or diversify
industry, including new  or emerging technologies,
or  maintain  or   increase   the  tax  base.  The
authority also may  issue  guarantees of loans and
guarantees of other investments for other purposes
if the authority  determines  that  such  loans or
other investments will  materially  contribute  to
employment in the  state  by creating high quality
jobs, encouraging exportation  beyond the state of
goods and services,  developing  new  products  or
services,  creating  or   supporting  a  secondary
market for business loans made within the state or
otherwise supporting, contributing to or enhancing
activities important to  employment  levels in the
state. The authority  may issue loan guarantees to
women-owned  businesses  and   minority   business
enterprises. As used in this section, "women-owned
business" means any  business  of  which fifty-one
per cent or  more of the capital stock, if any, or
assets are owned  by  a woman who is active in the
daily affairs of the business and has the power to
direct the management and policies of the business
and "minority business  enterprise" shall have the
same meaning as in section 32-9e.
    (2) The authority  shall  not issue guarantees
authorized under this  section  to guarantee loans
for commercial real estate development projects or
for passive real  estate  ownership. The authority
may issue guarantees  for  projects  in  which the
borrower  intends  to   purchase  commercial  real
estate  for  use   in   its   principal   business
operations.
    (3) No guarantee  shall  be issued pursuant to
this section for  the  financing or refinancing of
any project unless  the  authority determines that
the  project  is   otherwise   unable   to  obtain
financing  in  satisfactory   amounts   or   under
reasonable  terms  or  conditions  or  unless  the
authority determines that  the  borrower is unable
to start, continue  to  operate,  expand, maintain
operations or relocate  to this state without such
guarantee.
    (4) No guarantee  shall  be issued pursuant to
this section for  the  financing or refinancing of
any project which  the authority determines may be
financed commercially, upon  reasonable  terms and
conditions, without such a guarantee, and which an
eligible  financial  institution  nonetheless  has
attempted  to  shift   into   this   program.  The
authority shall determine  whether  a  project has
been inappropriately diverted  into  this  program
consistent with the credit availability principles
set forth in  any  applicable  guidelines  for the
loan guarantee program  of  the  Connecticut Works
Fund. The authority  may require the participating
institution to submit  its  loan criteria and such
other information as  may  be  appropriate, and in
reviewing projects that involve the refinancing of
existing  loans, may  require  submission  of  the
classification assigned to  that loan by examiners
for any federal financial regulatory institution.
    (e)  (1)  The  authority  shall  maximize  the
leveraging  capability of  guarantees  under  this
section  to  the   extent   feasible.  The  amount
guaranteed shall not  exceed forty per cent of the
principal amount of  any  particular loan or other
investment, and the  total  guarantee  amounts for
all  outstanding  loans   or   other   investments
guaranteed by the  authority  under  this  section
shall not exceed  thirty  per  cent  OF  THE TOTAL
PRINCIPAL   AMOUNT   OF   ALL   SUCH   LOANS   AND
INVESTMENTS, EXCEPT THAT  IN  THE  CASE  OF A LOAN
GUARANTEE  EXTENDED  IN   PARTICIPATION  WITH  THE
UNITED STATES SMALL  BUSINESS  ADMINISTRATION, THE
AMOUNT GUARANTEED MAY  BE  UP TO FIFTY PER CENT OF
THE TOTAL PRINCIPAL AMOUNT OF LOANS TO A BORROWER,
AND SUCH LOAN  GUARANTEE  MAY  BE  DISREGARDED FOR
PURPOSES  OF  DETERMINING   COMPLIANCE  WITH  SUCH
OVERALL  THIRTY  PER  CENT  GUARANTEE  LIMITATION,
PROVIDED AT LEAST AN EQUAL PERCENTAGE OF THE TOTAL
PRINCIPAL AMOUNT OF  THE LOANS TO SUCH BORROWER IS
GUARANTEED BY THE  UNITED  STATES  SMALL  BUSINESS
ADMINISTRATION FOR AT  LEAST  THE  SAME  TERM  AND
OTHERWISE ON SUBSTANTIALLY  THE  SAME BASIS AS THE
LOAN GUARANTEE EXTENDED BY THE AUTHORITY. The term
of any guarantee  issued  under this section shall
not exceed twenty-five years.
    (2) No more than ten million dollars of [loan]
guarantees shall be  issued  for a single project.
No more than  ten  million  dollars  OF GUARANTEES
shall be issued  WITH  RESPECT  TO LOANS AND OTHER
INVESTMENTS to any  one  person  or  to any entity
owned by, controlled  by  or  under common control
with such person.
    (3) No loan  guarantee  shall  be issued to an
eligible financial institution  for  any  loan  or
other investment to  any  executive officer [,] OR
director   OF  SUCH   INSTITUTION,   or   TO   ANY
shareholder OWNING MORE  THAN FIVE PER CENT OF THE
OUTSTANDING  STOCK of  such  institution,  or  any
executive officer of  any other eligible financial
institution or any  director or shareholder owning
more than five  per  cent of the outstanding stock
of  any such  institution,  or  a  member  of  the
immediate family of  such  an  executive  officer,
director  or shareholder  or  to  any  company  or
entity controlled by any such persons.
    (f) The authority shall consider all proposals
for  guarantees submitted  by  eligible  financial
institutions  consistent with  the  due  diligence
principles  set  forth   in  any  applicable  loan
presentation    guidelines    and     underwriting
considerations for the  loan  guarantee program of
the Connecticut Works  Fund.  The  authority shall
review and periodically  update  its due diligence
principles as appropriate.
    (g) To carry out the purposes of this section,
the authority shall  have  the powers set forth in
section 32-23e, provided  no  provision of section
32-23e  shall be  construed  to  limit  any  power
specifically granted to  the  authority under this
chapter and no  provision of this chapter shall be
construed to limit  any power specifically granted
to the authority under section 32-23e.
    (h) The authority  shall  not  issue  any  new
guarantees under this  program on or after July 1,
[1996] 1998.
    (i) The authority  is  authorized from time to
time   to   enter   into   guarantee   agreements,
reimbursement       agreements,      participation
agreements,    collateral   sharing    agreements,
servicing agreements, and  any other agreements or
contracts with borrowers  or  recipients  of other
investments    and   with    eligible    financial
institutions with respect to the fund and any loan
or other investment guarantee thereunder. Any such
agreement or contract,  and  any  procedure of the
authority,  may  contain   terms,   provisions  or
conditions necessary or  desirable  in  connection
with  the  program  subject  to  the  requirements
established  by this  section,  including  without
limitation,  terms,  provisions   and   conditions
relating  to  loan   documentation,   review   and
approval  procedures,  origination  and  servicing
rights and responsibilities,  default  conditions,
procedures  and  obligations,   the   payment   of
guarantee  fees,  the   giving  of  notice,  claim
procedures, the sources of payment for claims, the
priority  of competing  claims  for  payment,  the
release  or  termination   of  loan  security  and
borrower liability, the  timing  of  payment,  the
maintenance and disposition  of  projects  and the
use of amounts  received  during  periods  of loan
delinquency  or  upon   default,   and  any  other
provisions  concerning the  rights  of  guaranteed
parties   or  conditions   to   the   payment   of
guarantees. Any fees  for  guarantees issued under
the provisions of  this  section may be determined
on such basis,  be payable by such person, in such
amounts and at  such  times as the authority shall
determine, and the  amount of the fees need not be
uniform   among  the   various   guarantees.   The
agreements or contracts  may  be  executed  on  an
individual, group or  master  contract  basis with
eligible financial institutions.
    (j) Any guarantee  made by the authority under
the authorization of  this  section  shall provide
that claims payable  under  such  guarantee  shall
first be paid  from  any amounts readily available
in the fund  before any amounts available from the
bond authorization contained in section 32-262 are
utilized for claim  payment.  The faith and credit
of the state  is  hereby pledged, pursuant to said
bond authorization and  in accordance with section
3-20, to provide  to  the  fund moneys as and when
necessary to make  timely  payments of all amounts
required  to  be  paid  under  the  terms  of  any
guarantee executed by  the  authority  pursuant to
this section, but  not  in excess of the amount of
bonds so authorized  by  the State Bond Commission
for such purpose  less  the  amounts  paid  by the
state for deposit  to such fund. The obligation of
the authority to  make  payments  under  any  such
guarantee shall be  limited solely to such sources
and shall not  constitute  a  debt or liability of
the authority or the state.
    (k) Any guarantee  executed  by  the authority
under this section shall be conclusive evidence of
eligibility for such  guarantee,  and the validity
of any guarantee so executed or of a commitment to
guarantee shall be  incontestable  in the hands of
an  eligible financial  institution  holding  such
guarantee or commitment from the date of execution
and  delivery  thereof,   except   for   fraud  or
misrepresentation on the  part  of  such  eligible
financial institution and,  as  to  commitments to
guarantee, noncompliance with  the  commitment  or
authority rules or  regulations  in  force  at the
time of issuance of the commitment.
    (l) AS USED  IN  THIS  SECTION,  THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE
CONTEXT INDICATES ANOTHER MEANING AND INTENT:
    (1)   "AUTHORITY"   MEANS    THE   CONNECTICUT
DEVELOPMENT AUTHORITY CREATED UNDER SUBSECTION (a)
OF SECTION 32-23d;
    (2)  "ELIGIBLE  FINANCIAL  INSTITUTION"  SHALL
HAVE  THE  SAME  MEANING  AS  "ELIGIBLE  FINANCIAL
INSTITUTION",  AS DEFINED  IN  SUBSECTION  (e)  OF
SECTION 32-23d;
    (3) "LOANS" MEANS  LOANS, NOTES, BONDS AND ALL
OTHER FORMS OF  DEBT  FINANCING  OR  EXTENSIONS OF
CREDIT, SECURED OR  UNSECURED, INCLUDING LOANS FOR
WORKING CAPITAL PURPOSES;
    (4) "OTHER INVESTMENTS"  MEANS (A) ANY AND ALL
FORMS OF EQUITY FINANCING MADE BY THE AUTHORITY OR
AN  ELIGIBLE  FINANCIAL   INSTITUTION,   (B)   ANY
PARTICIPATION OR OTHER  INTEREST  IN  SUCH  EQUITY
FINANCING, HOWEVER EVIDENCED,  OR  (C) ANY POOL OR
PORTFOLIO OF, OR  POSITION  IN, LOANS, SUCH EQUITY
FINANCING OR ANY COMBINATION THEREOF;
    (5) "PERSON" MEANS  A  PERSON  AS  DEFINED  IN
SUBSECTION (s) OF SECTION 32-23d; AND
    (6) "STATE" MEANS THE STATE OF CONNECTICUT.
    Sec.  3.  Section   32-262a   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Subject to [section  32-299  and]  any greater
rights  of  any   eligible  financial  institution
holding a guarantee  or  a  commitment  to issue a
guarantee in effect with respect to a loan or loan
commitment  outstanding on  June  14,  1993,  each
guarantee, commitment to  issue  a  guarantee  and
application for a  guarantee  under section 32-261
in effect or  pending  on June 14, 1993, shall be,
or shall be  deemed  to be, without further act of
the   authority,  a   guarantee,   commitment   or
application issued under or relating to, and shall
be funded from,  the  Connecticut  Works Guarantee
Fund in accordance  with  said section 32-261, and
any  and  all  guarantee  fees  or  other  amounts
received by the authority with respect to any such
guarantee,  commitment  or  application  shall  be
transferred to and deposited in such fund.
    Sec.  4.  Section   32-23qq   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) An Environmental Assistance Revolving Loan
Fund is created.  The  state,  acting  through the
Connecticut  Development  Authority,  may  provide
loans,  lines of  credit  or  loan  guarantees  to
businesses  from  the   Environmental   Assistance
Revolving Loan Fund  for  the purpose of pollution
prevention  activities,  as   defined  in  section
32-23rr or for  purchases and the costs associated
with the installation  of  stage II vapor recovery
systems as defined in the regulation adopted under
section   22a-174.   Within    the   Environmental
Assistance Revolving Loan  Fund, a loan subfund is
created  solely to  provide  loans  and  lines  of
credit as provided in this section and a guarantee
subfund  is  created   solely   to   provide  loan
guarantees  as  provided   in   this  section.  No
financial  assistance,  nor   any   commitment  to
provide financial assistance, shall be provided by
or  entered into  by  the  authority  pursuant  to
sections  32-23pp  to  32-33ss,  inclusive,  which
would  cause the  aggregate  amount  of  all  such
financial   assistance   and    commitments   then
outstanding to exceed  the  sum  of the amounts in
the  applicable  subfund   of   the  Environmental
Assistance Revolving Loan  Fund plus the amount of
any unpaid grants  authorized  to  be  made by the
department   of  economic   development   to   the
authority for deposit in the applicable subfund of
the Environmental Assistance  Revolving Loan Fund,
provided the amount of financial assistance in the
form of any  guarantee  shall  be  measured by the
portion  of  unpaid   loan   principal   which  is
guaranteed by the  authority.  Notwithstanding the
above,   the   aggregate   amount   of   financial
assistance  in  the   form   of   guarantees   and
commitments with respect  thereto,  calculated  as
above, may be  up  to  four  times  the sum of the
amounts available in  the guarantee subfund of the
Environmental Assistance Revolving  Loan Fund plus
the  amount of  any  unpaid  grants  which  remain
available and are  specifically  designated by the
department for purposes  of  such subfund pursuant
to the bond  authorization in section 32-23ss. For
the purposes of this section, "business" means any
business which (1) has gross revenues of less than
twenty-five million dollars  in  its  fiscal  year
ending  prior to  the  application  for  any  such
loans, lines of  credit  or loan guarantees or (2)
has fewer than  one  hundred  fifty employees. The
[department of economic  development]  CONNECTICUT
DEVELOPMENT  AUTHORITY shall  charge  and  collect
interest on each  such loan or line of credit at a
rate  to  be   determined   in   accordance   with
procedures adopted pursuant  to  subsection (b) of
this section. Payments  made  by businesses on all
loans, lines of  credit  and loan guarantees shall
be paid to  the  [treasurer] AUTHORITY for deposit
in  the Environmental  Assistance  Revolving  Loan
Fund.
    (b)  The  Connecticut   Development  Authority
shall adopt written procedures, in accordance with
the provisions of  section 1-121, to carry out the
provisions of this  section. Such procedures shall
establish  requirements  for   loans,  guarantees,
interest, repayment terms,  security requirements,
default and remedies  and  such  other  terms  and
conditions   as   the    authority    shall   deem
appropriate.
    (c) Each such  loan, guarantee or extension of
credit  shall be  authorized  by  the  Connecticut
Development  Authority or,  if  the  authority  so
determines,  by  a   committee  of  the  authority
consisting of the  chairman  and  either one other
member of the authority or its executive director,
as  specified  in   the   determination   of   the
authority. Any administrative expenses incurred in
carrying out the  provisions  of  this section, to
the extent not  paid  by  the  authority  or  from
moneys appropriated to  the  authority,  shall  be
paid from the  Environmental  Assistance Revolving
Loan  Fund.  Payments   from   the   Environmental
Assistance Revolving Loan Fund to businesses or to
pay such administrative  expenses shall be made by
the [treasurer] AUTHORITY  upon  certification  by
the chairman of  the authority that the payment is
authorized under the  provisions  of this section,
under the applicable  rules and regulations of the
authority, and, if  made  to a business, under the
terms and conditions  established by the authority
or  the  duly   appointed   committee  thereof  in
authorizing  the  making   of   the  loan  or  the
extension of credit.
    (d)  The  authority   shall   not  approve  an
application  for  a   loan,   line  of  credit  or
guarantee unless the  Connecticut  Hazardous Waste
Management  Service determines  the  applicant  is
eligible  for  such   loan,   line  of  credit  or
guarantee provided this subsection shall not apply
to loans for stage II vapor recovery systems.
    Sec.  5.  Section   22a-133m  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) An urban  sites remedial action program is
established to identify,  evaluate,  plan  for and
undertake  the  remediation   of   polluted   real
property which is  deemed  vital  to  the economic
development needs of the state.
    (b) The commissioner  of economic development,
in   consultation   with   the   commissioner   of
environmental  protection,  shall   establish  the
priority of sites  for  evaluation and remediation
based  upon  the   following   factors:   (1)  The
estimated cost of  evaluating  and remediating the
site, if known;  (2) the anticipated complexity of
an  evaluation of  the  site;  (3)  the  estimated
schedule for completing  an  evaluation;  (4)  the
potential  economic development  benefits  of  the
site to the  state  of  Connecticut;  and  (5) any
other  factors  which   the   commissioners   deem
relevant. No real  property  shall be eligible for
evaluation  or  remediation   under  this  section
unless: (A) The  [site  is located in a distressed
municipality as defined in section 32-9p; (B) the]
commissioner of economic  development  finds  that
the  state owns  the  site  or  otherwise  has  or
obtains  the  power   to   approve   the  type  of
development which first  occurs  on the site after
remediation; and [(C)]  (B)  the  commissioner  of
environmental protection is  unable  to  determine
the responsible party  for  the  pollution  or the
cleanup of the  site,  or the responsible party is
not in timely compliance with orders issued by the
commissioner to provide  remedial  action,  or the
commissioner has not issued a final decision on an
order to a  responsible  party to provide remedial
action because of  (i)  a request for a hearing on
an order, or (ii) an order issued is subject to an
appeal pending before a court. EXCEPT FOR ANY SITE
PROPOSED FOR ACQUISITION  UNDER  SUBSECTION (e) OF
THIS SECTION, NO  REAL  PROPERTY SHALL BE ELIGIBLE
FOR EVALUATION OR  REMEDIATION  UNDER THIS SECTION
UNLESS  THE  SITE   IS  LOCATED  IN  A  DISTRESSED
MUNICIPALITY, AS DEFINED  IN  SECTION  32-9p.  For
purposes  of  this  section,  "responsible  party"
means any person, as defined in section 22a-2, who
created a source  of  pollution  on the site or an
owner of the  site  during  the  investigation  or
remediation funded pursuant to this section.
    (c) The cost  of  evaluating  and  remediating
sites pursuant to  this section shall be paid from
(1) funds authorized pursuant to subsection (a) of
section 29 of  special  act  89-52  and  (2) funds
authorized  for  such  evaluation  or  remediation
pursuant to any other public or special act.
    (d) Whenever funds  are  used pursuant to this
section for purposes  of evaluating or remediating
a polluted site, the commissioner of environmental
protection may seek reimbursement of the costs and
expenses  incurred  by   requesting  the  attorney
general to bring  a  civil  action to recover such
costs and expenses  from any party responsible for
such pollution provided  no  such  action shall be
brought  separately from  any  action  to  recover
costs and expenses incurred by the commissioner in
pursuing action to contain, remove or mitigate any
pollution on such  site.  The  costs  and expenses
recovered may include  but shall not be limited to
(1) the actual  cost  of  identifying, evaluating,
planning for and  undertaking  the  remediation of
the  site;  (2)   any   administrative  costs  not
exceeding ten per  cent  of  the actual costs; (3)
the costs of recovering the reimbursement, and (4)
interest on the  actual costs at a rate of ten per
cent a year from the date such expenses were paid.
    (e)  On  or   before   July   1,   1996,   the
commissioner   of   economic    development,    in
consultation    with    the     commissioner    of
environmental  protection  may   acquire  polluted
commercial or industrial  property for the purpose
of remediation of  the pollution and for the lease
or sale of  such  property  in  order  to  promote
business growth or  expansion through the reuse or
redevelopment of such  property.  Such acquisition
may include, but  not  be limited to, condemnation
of the property  in accordance with the provisions
of chapter 835.  For  purposes of this subsection,
the commissioner of  economic development shall be
exempt from all  of  the  requirements of sections
22a-134 to 22a-134e,  inclusive, section 4b-3, and
section 4b-21. When  acquiring  polluted  property
under  this  subsection,   the   commissioner   of
economic development may  accept  on behalf of the
state of Connecticut the liability, at the time of
the acquisition, for  all  costs of remediation of
the  polluted  property  provided  the  transferor
shall be liable for all costs in excess of fifteen
million   dollars   and   further   provided   the
commissioner shall not  accept any liability under
federal   law.  The   commissioner   of   economic
development may enter  into  lease, sale, or other
agreements  for  the  use  of  the  real  property
acquired pursuant to  this  subsection. All moneys
received  by  the   state  pursuant  to  any  such
agreement shall be  deposited  into the urban site
remediation fund established  under subsection (f)
of this section.
    (f)  There  is   established   an  Urban  Site
Remediation Fund. The  fund may contain any moneys
required by law  to  be  deposited in the fund and
shall be held  by the treasurer separate and apart
from all other  moneys,  funds  and  accounts. Any
balance remaining in  the  fund  at the end of any
fiscal year shall  be  carried forward in the fund
for the fiscal  year  next  succeeding.  The  fund
shall be used by the commissioner of environmental
protection for costs  incurred  in  the assessment
and remedial activities conducted at real property
acquired  pursuant  to   subsection  (e)  of  this
subsection, and by  the  commissioner  of economic
development to pay  any  local  property  taxes on
real property acquired  pursuant to subsection (e)
of this subsection  and the costs of administering
the program.
    (g)   The   commissioner    of   environmental
protection shall conduct an assessment to evaluate
the potential cost  of  remedial activities of any
site proposed for acquisition under subsection (e)
of this section  prior to the transfer of the real
property   to   the   commissioner   of   economic
development.  The  commissioner  of  environmental
protection, after transfer  of the property to the
commissioner   of  economic   development,   shall
conduct remedial actions  necessary  to  remediate
the pollution at  or on the site and shall certify
to the commissioner  of  economic development that
such  actions have  minimized  and  mitigated  any
threat to human health or the environment and have
contained,  removed  or  otherwise  mitigated  the
effects of any  pollution  in  the  property.  The
commissioner of environmental  protection  may use
funds authorized pursuant  to  subsection  (a)  of
section  29  of   special   act  89-52  and  funds
authorized for such  purpose pursuant to any other
public or special  act  for  the  purposes of this
subsection.   The   commissioner    of    economic
development shall adopt regulations, in accordance
with the provisions  of  chapter  54, to carry out
the provisions of  this subsection and subsections
(e) and (f) of this section.
    Sec. 6. Subsection (a) of section 32-9e of the
general statutes is  repealed and the following is
substituted in lieu thereof:
    (a) As used in this section and sections 32-9f
to 32-9h, inclusive,  the following terms have the
following meanings:
    (1) "Small contractor"  means  any contractor,
subcontractor, manufacturer or service company (A)
which  has been  doing  business  UNDER  THE  SAME
OWNERSHIP AND MANAGEMENT  and  has  maintained its
principal place of  business  in  the state, for a
period of at  least  one year IMMEDIATELY prior to
the date of  application  for  certification under
this section, (B)  which  had  gross  revenues not
exceeding ten million dollars in the most recently
completed fiscal year  prior  to  such application
and  (C)  at  least  fifty-one  per  cent  of  the
ownership of which  is held by a person or persons
who  are  active  in  the  daily  affairs  of  the
business  and  have   the   power  to  direct  the
management and policies  of  the  business, except
that a nonprofit corporation shall be construed to
be   a  small   contractor   if   such   nonprofit
corporation    meets    the     requirements    of
subparagraphs (A) and (B) of this subdivision.
    (2) "State agency"  means  each  state  board,
commission,   department,   office,   institution,
council or other agency with the power to contract
for goods or services itself or through its head.
    (3) "Minority business  enterprise"  means any
small contractor (A) fifty-one per cent or more of
the capital stock,  if any, or assets of which are
owned by a person or persons (i) who are active in
the daily affairs of the enterprise, (ii) who have
the power to direct the management and policies of
the enterprise, and  (iii)  who  are  members of a
minority, as such  term  is  defined in subsection
(a) of section  32-9n,  (B)  who  is an individual
with  a disability  or  (C)  who  is  a  nonprofit
corporation in which fifty-one per cent or more of
the  persons who  are  (i)  active  in  the  daily
affairs of the  enterprise and (ii) have the power
to  direct the  management  and  policies  of  the
enterprise are members  of  a minority, as defined
in  this subsection  or  are  individuals  with  a
disability.
    (4)  "Affiliated" means  the  relationship  in
which a person directly, or indirectly through one
or more intermediaries, controls, is controlled by
or is under common control with another person.
    (5) "Control" means  the  power  to  direct or
cause the direction of the management and policies
of any person,  whether  through  the ownership of
voting  securities, by  contract  or  through  any
other direct or  indirect  means. Control shall be
presumed  to exist  if  any  person,  directly  or
indirectly, owns, controls,  holds  with the power
to vote, or  holds proxies representing twenty per
cent or more  of  any voting securities of another
person.
    (6)    "Person"    means    any    individual,
corporation, partnership, association, joint stock
company,     business    trust,     unincorporated
organization or other entity.
    (7) "Individual with  a  disability"  means an
individual (A) having  a  physical impairment that
substantially limits one or more of the major life
activities  of the  individual  or  (B)  having  a
record of such an impairment.
    (8) "Nonprofit corporation"  means a nonprofit
corporation incorporated pursuant to chapter 600.
    Sec. 7. Subsection (j) of section 32-9e of the
general statutes is  repealed and the following is
substituted in lieu thereof:
    (j) In lieu  of  a performance, BID, LABOR AND
MATERIALS OR OTHER  REQUIRED bond, a contractor or
subcontractor  awarded  a   contract   under  this
section may provide  to the awarding authority and
the awarding authority  shall  accept  a letter of
credit. Any such  letter  of credit shall be in an
amount equal to  ten  per cent of the contract for
any  contract  that   is  less  than  one  hundred
thousand  dollars  and   in  an  amount  equal  to
twenty-five  per cent  of  the  contract  for  any
contract  that  exceeds   one   hundred   thousand
dollars.
    Sec. 8. Subsections  (m)  and  (n)  of section
32-9e of the general statutes are repealed and the
following is substituted in lieu thereof:
    (m) On or  before [July 1, 1994] SEPTEMBER 30,
1995, and annually  thereafter,  each state agency
and each political  subdivision of the state other
than a municipality  setting  aside  contracts  or
portions  of  contracts  shall  prepare  a  report
establishing small and minority business set-aside
program  goals for  the  [following]  TWELVE-MONTH
PERIOD BEGINNING JULY FIRST IN THE SAME year. Each
such report shall be submitted to the commissioner
of economic development,  the  commission on human
rights and opportunities  and  the  cochairmen and
ranking members of the joint standing committee of
the general assembly  having cognizance of matters
relating to planning and development.
    (n) On or before [October 1, 1994] NOVEMBER 1,
1995, and quarterly  thereafter, each state agency
and each political  subdivision of the state other
than a municipality  setting  aside  contracts  or
portions  of  contracts  shall  prepare  a  status
report on the  implementation  and  results of its
small business and  minority  business  enterprise
set-aside  program goals  DURING  THE  THREE-MONTH
PERIOD ENDING ONE  MONTH  BEFORE  THE DUE DATE FOR
THE REPORT. Each  report shall be submitted to the
commissioner   of   economic    development,   THE
COMMISSION ON HUMAN  RIGHTS  AND OPPORTUNITIES and
the cochairmen and  ranking  members  of the joint
standing committee of  the general assembly having
cognizance of matters  relating  to  planning  and
development.
    Sec. 9. Section  32-9f of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) The commissioner  of  economic development
shall be responsible for the administration of the
set-aside  program  and   shall   promulgate  such
regulations as are  necessary  to  carry  out  the
purposes of sections  32-9e  to  32-9g, inclusive.
Such  regulations  shall  include  (1)  provisions
concerning  the  application  of  the  program  to
individuals with a  disability  AND (2) GUIDELINES
FOR A LEGALLY  ACCEPTABLE  FORMAT FOR, AND CONTENT
OF, LETTERS OF  CREDIT AUTHORIZED UNDER SUBSECTION
(j) OF SECTION  32-9e,  AS AMENDED BY SECTION 7 OF
THIS ACT.
    (b)  On  or   before   January  1,  1994,  the
commissioner  of economic  development  shall,  by
regulations adopted in accordance with chapter 54,
establish  a  process   to   ensure   that   small
contractors,   small   businesses   and   minority
business  enterprises  have  fair  access  to  all
competitive  contracts outside  of  the  set-aside
program.
    Sec. 10. Section 32-76 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) On and  after  January 1, [1996] 1997, any
municipality   in   which   an   enterprise   zone
designated  under section  32-70  is  located  may
designate  an entertainment  district  within  the
municipality.
    (b)  Upon  designation   of  an  entertainment
district under subsection (a) of this section, the
municipality  may apply  to  the  commissioner  of
economic development for  state  approval  of  the
designation. The municipality seeking the approval
of the commissioner  of  economic  development for
the designation of  an area of the municipality as
an   enterprise   zone   shall   file   with   the
commissioner a preliminary  application. Not later
than  sixty  days   after   receipt   of   such  a
preliminary  application, the  commissioner  shall
indicate  to the  municipality,  in  writing,  any
recommendations for improving  the  municipality's
application.  Not  later  than  sixty  days  after
receipt of the  commissioner's  written  response,
the municipality shall  file  a  final application
with the commissioner.
    (c)  In approving  an  entertainment  district
designation, the commissioner  shall  evaluate the
effect of the proposal on the economic development
of the municipality,  the  region  and  the state,
taking   into  consideration   market   potential,
specific development plans and private commitments
in the area.
    (d) The commissioner  of  economic development
shall adopt regulations in accordance with chapter
54 to implement this section. Such regulations may
establish  additional  criteria  for  approval  of
districts, including establishment of a zone size.
    (e) ANY PLANT,  BUILDING,  OTHER REAL PROPERTY
IMPROVEMENT, OR PART  THEREOF, WHICH IS LOCATED IN
A  MUNICIPALITY  WITH  AN  ENTERTAINMENT  DISTRICT
DESIGNATED UNDER THIS SECTION OR ESTABLISHED UNDER
SECTION  2  OF   PUBLIC   ACT  93-311,  AND  WHICH
QUALIFIES  AS  A  "MANUFACTURING  FACILITY"  UNDER
SUBSECTION (d) OF  SECTION  32-9p IN THAT IT IS TO
BE  USED  IN   THE   PRODUCTION  OF  ENTERTAINMENT
PRODUCTS,  INCLUDING MULTIMEDIA  PRODUCTS,  OR  AS
PART OF THE  AIRING,  DISPLAY OR PROVISION OF LIVE
ENTERTAINMENT FOR STAGE  OR  BROADCAST,  INCLUDING
SUPPORT  SERVICES  SUCH   AS   SET  MANUFACTURERS,
SCENERY   MAKERS,  SOUND   AND   VIDEO   EQUIPMENT
PROVIDERS  AND  MANUFACTURERS,  STAGE  AND  SCREEN
WRITERS,   PROVIDERS   OF    CAPITAL    FOR    THE
ENTERTAINMENT  INDUSTRY  AND  AGENTS  FOR  TALENT,
WRITERS,  PRODUCERS  AND   MUSIC   PROPERTIES  AND
TECHNOLOGICAL  INFRASTRUCTURE  SUPPORT  INCLUDING,
BUT NOT LIMITED  TO,  FIBER  OPTICS,  NECESSARY TO
SUPPORT   MULTIMEDIA   AND   OTHER   ENTERTAINMENT
FORMATS, EXCEPT ENTERTAINMENT PROVIDED BY OR SHOWN
AT A GAMBLING  OR  GAMING  FACILITY  OR A FACILITY
WHOSE PRIMARY BUSINESS  IS  THE SALE OR SERVING OF
ALCOHOLIC BEVERAGES, AND  FOR WHICH THE DEPARTMENT
HAS   ISSUED   AN   ELIGIBILITY   CERTIFICATE   IN
ACCORDANCE WITH SECTION  32-9r, AS AMENDED BY THIS
ACT,  SHALL BE  ENTITLED  TO  THE  SAME  BENEFITS,
SUBJECT TO THE  SAME CONDITIONS, UNDER THE GENERAL
STATUTES FOR WHICH  PLANTS,  BUILDINGS  AND  OTHER
REAL   PROPERTY   IMPROVEMENTS   LOCATED   IN   AN
ENTERPRISE ZONE QUALIFY.
    Sec. 11. Subsection  (a)  of  section 32-9r of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) Any person may apply to the department for
a  determination  as   to   whether  the  facility
described  in  an   application   qualifies  as  a
manufacturing    facility.    Applications     for
eligibility certificates are  to  be  made  on the
forms  and  in   the   manner  prescribed  by  the
department.  In evaluating  each  application  the
department  may  require  the  submission  of  all
books,      records,     documents,      drawings,
specifications,    certifications    and     other
evidentiary items which  it  deems appropriate. No
eligibility  certificate  shall  be  issued  after
March  1,  1991,   for  a  manufacturing  facility
located in a  distressed  municipality  which does
not qualify as  a  targeted  investment  community
unless the department  has issued to the applicant
a commitment letter  for  such  facility  prior to
March 1, 1991.  Notwithstanding  the provisions of
this subsection, an eligibility certificate may be
issued by the  department after March 1, 1991, for
a  qualified  manufacturing   facility   acquired,
constructed  or  substantially   renovated   in  a
distressed municipality provided  the commissioner
determines that such  acquisition, construction or
substantial  renovation  was  initiated  prior  to
March 1, 1991, and was legitimately induced by the
prospect of assistance  under  section 12-217e and
subdivisions  (59)  and  (60)  of  section  12-81,
respectively.   The  department   may   issue   an
eligibility    certificate   for    a    qualified
manufacturing  facility  located   in  a  targeted
investment  community upon  determination  by  the
commissioner    (A)    that    the    acquisition,
construction or substantial renovation relating to
the  qualified  manufacturing   facility  in  such
community  was  induced   by   the   prospect   of
assistance under section  12-217e and subdivisions
(59) and (60)  of  said section 12-81; and (B) the
applicant demonstrates an  economic  need or there
is  an  economic   benefit   to   the  state.  The
department shall issue  an eligibility certificate
if  the  commissioner   determines  (1)  that  the
facility  is  located   in   an   enterprise  zone
designated pursuant to  section  32-70  and  is  a
qualified manufacturing facility  OR  (2) THAT THE
FACILITY IS A PLANT, BUILDING, OTHER REAL PROPERTY
IMPROVEMENT, OR PART  THEREOF, WHICH IS LOCATED IN
A  MUNICIPALITY  WITH  AN  ENTERTAINMENT  DISTRICT
DESIGNATED UNDER SECTION 32-76, AS AMENDED BY THIS
ACT, OR ESTABLISHED  UNDER SECTION 2 OF PUBLIC ACT
93-311, AND WHICH  QUALIFIES  AS  A "MANUFACTURING
FACILITY" UNDER SUBSECTION (d) OF SECTION 32-9p IN
THAT  IT IS  TO  BE  USED  IN  THE  PRODUCTION  OF
ENTERTAINMENT   PRODUCTS,   INCLUDING   MULTIMEDIA
PRODUCTS, OR AS  PART  OF  THE  AIRING, DISPLAY OR
PROVISION  OF  LIVE  ENTERTAINMENT  FOR  STAGE  OR
BROADCAST, INCLUDING SUPPORT  SERVICES SUCH AS SET
MANUFACTURERS,  SCENERY MAKERS,  SOUND  AND  VIDEO
EQUIPMENT PROVIDERS AND  MANUFACTURERS,  STAGE AND
SCREEN  WRITERS,  PROVIDERS  OF  CAPITAL  FOR  THE
ENTERTAINMENT  INDUSTRY  AND  AGENTS  FOR  TALENT,
WRITERS,  PRODUCERS  AND   MUSIC   PROPERTIES  AND
TECHNOLOGICAL  INFRASTRUCTURE  SUPPORT  INCLUDING,
BUT NOT LIMITED  TO,  FIBER  OPTICS,  NECESSARY TO
SUPPORT   MULTIMEDIA   AND   OTHER   ENTERTAINMENT
FORMATS, EXCEPT ENTERTAINMENT PROVIDED BY OR SHOWN
AT A GAMBLING  OR  GAMING  FACILITY  OR A FACILITY
WHOSE PRIMARY BUSINESS  IS  THE SALE OR SERVING OF
ALCOHOLIC BEVERAGES.
    Sec. 12. Section  2  of  public  act 93-311 is
repealed and the  following is substituted in lieu
thereof:
    (a) The commissioner  of  economic development
shall establish an  entertainment  district  pilot
program in the city of Bridgeport BY JULY 1, 1995.
The purpose of  the  pilot  program  shall  be  to
promote economic development  in the state and the
city of Bridgeport.
    (b) On or  before  January 1, [1995] 1997, the
commissioner shall submit  a  report  to the joint
standing committee of  the general assembly having
cognizance of matters  relating  to local economic
development   which   describes   the   activities
undertaken pursuant to the pilot program and makes
recommendations   for   municipal    entertainment
districts.
    Sec. 13. This  act  shall take effect from its
passage, except that  sections  1 to 3, inclusive,
shall take effect July 1, 1995.

Approved July 13, 1995