Substitute Senate Bill No. 906
          Substitute Senate Bill No. 906

              PUBLIC ACT NO. 97-211


AN  ACT CONCERNING TRANSFER OF REAL PROPERTY UNDER
THE MANUFACTURING ASSISTANCE ACT AND PARTICIPATION
BY   THE  DEPARTMENT  OF  ECONOMIC  AND  COMMUNITY
DEVELOPMENT IN CERTAIN LOANS.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  1.  Section  32-228  of  the  general
statutes is amended  by  adding  subsection (d) as
follows:
    (NEW) (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.
    Sec. 2. Section  32-1l of the general statutes
is amended by adding subdivision (6) as follows:
    (NEW) (6) To  provide financial assistance for
economic  development  projects   directly  or  in
participation  with  the  Connecticut  Development
Authority, to purchase  participation interests in
loans   made  by   the   Connecticut   Development
Authority  and  enter   into   any  agreements  or
contracts  it deems  necessary  or  convenient  in
connection with such loans.
    Sec. 3. Section 32-221 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    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. 4. Subsection  (f)  of  section 32-222 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (f) "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.
    Sec. 5. Subsection  (h)  of  section 32-222 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (h)  "Financial  assistance"   means   grants,
extensions of credit,  loans  or  loan guarantees,
PARTICIPATION INTERESTS IN  LOANS MADE TO ELIGIBLE
APPLICANTS   BY   THE    CONNECTICUT   DEVELOPMENT
AUTHORITY or combinations thereof.
    Sec. 6. Subsections  (c)  and  (d)  of section
32-223 of the  general  statutes  are repealed and
the following is substituted in lieu thereof:
    (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.
    Sec. 7. This  act  shall  take effect from its
passage.

Approved June 24, 1997