Substitute Senate Bill No. 445
          Substitute Senate Bill No. 445

              PUBLIC ACT NO. 97-238


AN ACT CONCERNING ECONOMIC CLUSTERS AND TOURISM.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section 1. On  or before February 1, 1998, the
Commissioner of Economic and Community Development
shall report to  the  joint  standing committee of
the General Assembly  having cognizance of matters
relating to commerce  on  (1)  the extent to which
the state has  identified  economic  clusters  for
state  support and  the  programs  or  initiatives
which the state  has implemented to support growth
in  such  clusters  and  (2)  the  activities  and
initiatives  of the  International  Trade  Council
established under section  32-511  of  the general
statutes.
    Sec. 2. Subsection  (b)  of  section 32-301 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) The council shall:
    (1) Adopt procedures  for the operation of the
council  and  the   oversight  of  the  Office  of
Tourism;
    (2) Review and  approve or amend the strategic
marketing plan developed  by the Office of Tourism
pursuant to subdivision  (1)  of subsection (b) of
section 32-300;
    (3) (A) Review the plans and activities of the
tourism   districts  established   under   section
32-302, the convention  center authorities and the
coliseum authorities, and  (B)  determine  whether
such plans and  activities are consistent with the
strategic marketing plan and will promote economic
growth and employment  opportunities  in the state
PROVIDED,  IN  MAKING   SUCH   DETERMINATION,  THE
COUNCIL SHALL CONSIDER  THE  STATUTORY  MISSION OF
THE  DISTRICTS AND  THE  UNIQUE  MISSION  OF  EACH
DISTRICT AND FURTHER  PROVIDED  THE  COUNCIL SHALL
PROVIDE ANY RECOMMENDATIONS  FOR  CHANGES  IN SUCH
PLANS OR ACTIVITIES  TO THE BOARD OF DIRECTORS FOR
EACH DISTRICT;
    (4)  Not later  than  January  15,  1993,  and
annually  thereafter,  submit   a  report  on  its
findings and recommendations to the joint standing
committee   of   the   General   Assembly   having
cognizance of matters  relating  to the Department
of Economic and Community Development WHICH REPORT
SHALL FURTHER INCLUDE  A  DESCRIPTION  OF  TOURISM
PROMOTION EFFORTS BY THE STATE;
    (5) Determine which applications for challenge
grants should be approved under subdivision (5) of
section 32-300;
    (6)  Allocate  not   more  than  four  hundred
twenty-nine thousand dollars between July 1, 1994,
and  June  30,  1996,  from  the  tourism  account
established under section 32-303, to carry out the
purposes  of sections  32-306  and  32-307,  which
shall  include,  but   not   be  limited  to,  the
operation of the visitor welcome centers;
    (7) Make a  grant  to  each  tourism  district
whose allocation under  section  32-305 during any
fiscal year is  less  than  one  hundred  thousand
dollars. The amount of any such grant shall be the
difference of one hundred thousand dollars and the
amount of such allocation; and
    (8) Determine which applications for municipal
grants should be approved under subdivision (6) of
subsection (b) of section 32-300.
    Sec. 3. Section 32-302 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) THERE ARE ESTABLISHED TOURISM DISTRICTS TO
PROMOTE AND MARKET  DISTRICTS  AS REGIONAL LEISURE
AND BUSINESS TRAVELER  DESTINATIONS  TO  STIMULATE
ECONOMIC GROWTH. There  shall  be  eleven  tourism
districts as follows:
    (1) The Greater Fairfield district, consisting
of:  Greenwich,  Stamford,   Darien,  New  Canaan,
Wilton,   Norwalk,   Weston,   Westport,   Easton,
Fairfield, Monroe, Bridgeport and Stratford;
    (2) The Greater Waterbury district, consisting
of:  Waterbury,  Wolcott,  Watertown,  Middlebury,
Naugatuck,  Thomaston, Beacon  Falls,  Oxford  and
Seymour;
    (3) The Greater New Haven district, consisting
of:  Prospect, Bethany,  Hamden,  Ansonia,  Derby,
Orange,  Milford, West  Haven,  Woodbridge,  North
Haven,  New Haven,  East  Haven,  North  Branford,
Shelton and Trumbull;
    (4)   The   Connecticut    Valley    district,
consisting  of:  Meriden,  Wallingford,  Cromwell,
Middletown, Middlefield, Portland,  East  Hampton,
Durham,   Haddam,   East   Haddam,   Killingworth,
Clinton, Chester, Deep  River,  Essex,  Westbrook,
Old Saybrook, Branford, Guilford and Madison;
    (5)  The  Southeastern  Connecticut  district,
consisting of: Colchester,  Salem, Lyme, Old Lyme,
East Lyme, Franklin, Bozrah, Montville, Waterford,
New  London, Sprague,  Lisbon,  Norwich,  Preston,
Ledyard,   Groton,  Griswold,   Voluntown,   North
Stonington and Stonington;
    (6) The Litchfield  Hills district, consisting
of: Salisbury, Sharon,  Kent,  New  Milford, North
Canaan,  Canaan,  Cornwall,   Warren,  Washington,
Roxbury, Southbury, Norfolk,  Goshen,  Litchfield,
Morris,     Bethlehem,    Woodbury,     Colebrook,
Winchester, Torrington, Hartland, Barkhamsted, New
Hartford, Harwinton, Plymouth and Bristol;
    (7)   The   Central    Connecticut   district,
consisting  of: Southington,  Berlin,  Plainville,
New Britain and Cheshire;
    (8) The Greater  Hartford district, consisting
of: Canton, Simsbury,  South  Windsor,  Ellington,
Vernon, Tolland, Burlington,  Avon, West Hartford,
Hartford,  East  Hartford,   Manchester,   Bolton,
Andover,   Farmington,  Newington,   Wethersfield,
Glastonbury, Marlborough, Hebron and Rocky Hill;
    (9)   The  Northeast   Connecticut   district,
consisting   of:   Union,   Woodstock,   Thompson,
Willington,  Ashford, Eastford,  Pomfret,  Putnam,
Killingly, Coventry, Mansfield,  Chaplin, Hampton,
Brooklyn,  Columbia, Lebanon,  Windham,  Scotland,
Canterbury, Plainfield and Sterling;
    (10)   The   Housatonic    Valley    district,
consisting  of: Bethel,  Bridgewater,  Brookfield,
Danbury,   New   Fairfield,    Newtown,   Redding,
Ridgefield and Sherman; and
    (11) The Tobacco  Valley  district, consisting
of: Granby, East  Granby, Suffield, Windsor Locks,
Windsor, Bloomfield, Enfield, East Windsor, Somers
and Stafford.
    (b) Each tourism  district  shall have a board
of directors consisting of one representative from
each  municipality  within  the  district  with  a
population less than  sixty-five  thousand and two
representatives from each  municipality within the
district with a population greater than sixty-five
thousand, appointed by  the  board of selectmen of
towns, the council  or board of aldermen of cities
or the board  of  burgesses  of boroughs. ANY SUCH
DIRECTOR SHALL SERVE FOR A TERM OF THREE YEARS. In
addition, the board of directors may appoint up to
twenty-one persons representing  tourism interests
within the district  to  serve  on  the board. All
appointments to the  board  of  directors shall be
reported to the director of the Office of Tourism.
A TOURISM DISTRICT SHALL INDEMNIFY ANY DIRECTOR OR
EMPLOYEE OF SUCH DISTRICT FOR LIABILITY IMPOSED BY
LAW FOR NEGLIGENT ACTS OR OMISSIONS.
    (c) The provisions of section 1-19 shall apply
to each tourism  district  and to any other entity
contracting with a  tourist  district to carry out
the functions of the region.
    (d) The Office  of  Tourism  shall assist each
tourism district to  establish an ad hoc committee
to draft a  charter  and  bylaws  for  the tourism
district and to  organize  the  initial meeting of
the board of directors of the district.
    (e) ON OR  BEFORE  JANUARY  FIRST OF EACH YEAR
EACH DISTRICT SHALL  (1) SUBMIT TO THE CONNECTICUT
TOURISM COUNCIL ITS  BUDGET FOR THE PRIOR YEAR AND
THE BUDGET FOR  THE  CURRENT  YEAR  PROVIDED  SUCH
SUBMITTAL   SHALL   BE   IN   A   FORM   DEVELOPED
COLLECTIVELY  BY THE  DISTRICTS,  THE  CONNECTICUT
TOURISM  COUNCIL AND  THE  OFFICE  OF  POLICY  AND
MANAGEMENT AND SHALL  BE BASED ON TOURISM INDUSTRY
STANDARDS AND (2)  SUBMIT  TO THE OFFICE OF POLICY
AND MANAGEMENT AN  INDEPENDENT AUDIT IN ACCORDANCE
WITH THE PROVISIONS  OF  SECTIONS  4-230 TO 4-236,
INCLUSIVE.
    (f) EACH TOURISM DISTRICT SHALL COORDINATE ITS
ACTIVITIES  WITH  ANY  PRIVATE  NONPROFIT  TOURIST
ASSOCIATION WITHIN THE  DISTRICT  AND  WITHIN THIS
STATE, WHICH PROMOTES  TOURISM INDUSTRY BUSINESSES
IN THIS STATE,  IN  ORDER TO FOSTER COOPERATION IN
THE PROMOTION OF SUCH BUSINESSES.
    Sec. 4. Section 32-305 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) The Commissioner of Revenue Services shall
segregate (1) one  and  one-half  per  cent of the
gross receipts from  the tax from sales within the
meaning of subdivision  (h)  of  subsection (2) of
section  12-407 by  any  hotel  or  lodging  house
located in any municipality having a population of
less  than  sixty-five  thousand,  (2)  three  and
one-half per cent  of the gross receipts from such
tax in any  municipality  having  a  population of
sixty-five  thousand  or   more   but   less  than
seventy-five thousand, and  (3)  four and one-half
per cent of  the  gross  receipts from such tax in
any   municipality   having    a   population   of
seventy-five  thousand  or   more,   provided  the
commissioner shall segregate  three  and  one-half
per cent of  the  gross  receipts from such tax in
the municipality having  the  most popular tourist
attraction in the  state,  as  determined  by  the
Office of Tourism,  if  such  municipality  has  a
population of less  than sixty-five thousand. Such
segregated funds shall  be  allocated  to  tourism
districts  established  under  section  32-302  as
follows: The portion  of the funds attributable to
such  tax receipts  in  a  municipality  shall  be
allocated to the  tourism  district  in  which the
municipality is located,  provided (A) one hundred
per cent of  the  amount  attributable to such tax
receipts from sales in Hartford shall be allocated
to the Connecticut  Convention  Center  Authority,
(B)   seventy-five  per   cent   of   the   amount
attributable to such  tax  receipts  from sales in
New Haven shall  be  allocated  to  the  New Haven
Coliseum Authority, (C)  seventy-five  per cent of
the amount attributable  to such tax receipts from
sales  in  Stamford  shall  be  allocated  to  the
Stamford Center for the Arts, (D) seventy-five per
cent  of  the  amount  attributable  to  such  tax
receipts from sales  in Norwalk shall be allocated
to  the  Maritime   Center   Authority   and   (E)
seventy-five per cent  of  the amount attributable
to such tax  receipts  from  sales  in  Bridgeport
shall  be  allocated   to  the  Greater  Fairfield
district established in  section  32-302,  for the
sole  purpose  of  marketing  tourist  attractions
located in Bridgeport.  If  for  any  state fiscal
year   the  amount   of   the   allocation   under
subparagraph (E) is  less than the amount of funds
allocated during the  fiscal  year ending June 30,
1991, to the  then  existing Bridgeport convention
and visitors bureau,  pursuant  to sections 7-136b
and 7-136c of  the  general  statutes,  revised to
January 1, 1991,  the  Connecticut Tourism Council
shall provide a  grant  under section 32-300, from
the  tourism  account,   in  the  amount  of  such
difference, to said Greater Fairfield district for
the purpose set  forth  in  subparagraph  (E). Not
later than [October  1, 1994] JANUARY 1, 1999, and
annually  thereafter, each  tourism  district  and
each authority receiving  funds under this section
shall submit to  the Connecticut Tourism Council a
full  audit of  the  books  and  accounts  of  the
district or authority  for  the  preceding  fiscal
year AT THE  SAME  TIME THAT AN AUDIT IS SUBMITTED
TO  THE OFFICE  OF  POLICY  AND  MANAGEMENT  UNDER
SUBSECTION (f) OF  SECTION 32-302. Each such audit
shall be conducted  by  an  independent  certified
public  accountant. The  Commissioner  of  Revenue
Services shall also  segregate  an  additional one
million dollars of  the  gross  receipts from such
tax in the state during each state fiscal year and
allocate  such  funds  to  the  cultural  heritage
development  account  established   under  section
10-373bb. The Commissioner of Revenue Services may
adopt   regulations,  in   accordance   with   the
provisions of chapter  54,  concerning  accounting
procedures necessary to  carry out the purposes of
this section.
    (b)  Except as  provided  by  law,  a  tourism
district, convention center  authority or coliseum
authority, as the case may be, may borrow money to
pay  its  obligations   that  cannot  be  paid  at
maturity  out  of   current   revenue   from  such
allocations, but shall  not  borrow  a sum greater
than  can  be   repaid   out  of  the  allocations
anticipated during the  year in which the money is
borrowed. The tourism  district, convention center
authority or coliseum  authority,  as the case may
be,  may  pledge  its  securities  to  secure  the
repayment of any sum so borrowed.
    (c)   NOTWITHSTANDING   THE    PROVISIONS   OF
SUBSECTION (a) OF  THIS  SECTION,  IF  NINETY DAYS
HAVE ELAPSED SINCE  A  PLAN  FOR CORRECTIVE ACTION
HAS  BEEN  FILED  FOR  A  TOURISM  DISTRICT  UNDER
SUBSECTION (g) OF  SECTION 4-233 AND THE SECRETARY
OF  THE  OFFICE   OF  POLICY  AND  MANAGEMENT,  IN
CONSULTATION WITH THE CONNECTICUT TOURISM COUNCIL,
FINDS THAT THE  PLAN HAS NOT BEEN IMPLEMENTED, THE
SECRETARY SHALL NOTIFY THE COMMISSIONER OF REVENUE
SERVICES WHO SHALL  THEN SEGREGATE TEN PER CENT OF
THE DISTRICT'S MONTHLY DISBURSEMENT OF FUNDS UNDER
SUBSECTION (a) OF  THIS  SECTION  AND DEPOSIT SUCH
AMOUNT INTO A  SEPARATE  ACCOUNT  EACH MONTH UNTIL
THE  SECRETARY  FINDS  THAT  SUCH  PLAN  IS  BEING
IMPLEMENTED AT WHICH  TIME  HE  SHALL  INFORM SAID
COMMISSIONER WHO SHALL  THEN  DISBURSE  ANY  FUNDS
ACCRUED IN THE ACCOUNT TO THE DISTRICT.
    Sec. 5. Subdivision  (10)  of section 4-230 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (10) "Audited agency"  means  a fire district,
fire and sewer  district,  sewer district or other
municipal utility, the  Metropolitan  District  of
Hartford County, a  regional board of education, a
regional  planning  agency,  any  other  political
subdivision of similar  character which is created
or any other  agency  created  or  designated by a
municipality to act  for  such  municipality whose
average annual receipts  from  all  sources exceed
two  hundred  thousand   dollars  OR  ANY  TOURISM
DISTRICT  ESTABLISHED  UNDER  SECTION  32-302,  AS
AMENDED BY SECTION 3 OF THIS ACT.
    Sec. 6. Section  32-4f of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) There is  created  a  Connecticut Economic
Conference Board. Said  board shall consist of (1)
the   Governor,   or   his   designee;   (2)   the
Commissioner    of    Economic    and    Community
Development;  (3)  THE   COMMISSIONER   OF  HIGHER
EDUCATION  AND the  commissioners  of  four  state
agencies in the  executive  department  which have
jurisdiction  over  matters   of   importance   to
economic clusters, who  shall  be appointed by the
Governor; (4) the chairpersons and ranking members
of the joint  standing  committees  of the General
Assembly having cognizance  of matters relating to
[the   Department  of   Economic   and   Community
Development   and   capital   bonding]   COMMERCE,
FINANCE, REVENUE AND BONDING, AND EDUCATION; (5) a
representative of each of the following areas: (A)
Technology research, discovery  or deployment, who
shall be appointed by the president pro tempore of
the Senate; (B)  workforce training, job retention
or human resources,  who shall be appointed by the
majority leader of  the  Senate;  (C) financial or
venture capital, who  shall  be  appointed  by the
minority    leader    of     the    Senate;    (D)
telecommunications,   energy,  transportation   or
other  physical  infrastructure,   who   shall  be
appointed  by  the   speaker   of   the  House  of
Representatives; (E) regulatory,  taxes  or  other
financial services, who  shall be appointed by the
majority leader of  the  House of Representatives;
(F) environmental, housing,  the arts or any other
aspect of quality  of life, who shall be appointed
by  the  minority   leader   of   the   House   of
Representatives; and (6) two economists, who shall
be appointed by  the  Governor. Each member of the
board described in  subdivision (2), (3) or (4) of
this  subsection  may   designate   a   deputy  to
represent him as  a  member  at  meetings  of  the
board, with full  powers  to  act  and vote in his
behalf. All appointments  under  subdivisions (3),
(5) and (6)  of  this  subsection shall be made by
October 1, 1996.  The  persons initially appointed
under subparagraphs (A) and (D) of subdivision (5)
of this subsection shall serve for a term of three
years from October  1, 1996, the persons initially
appointed under subparagraphs  (B) and (E) of said
subdivision shall serve  for  a  term of two years
from October 1,  1996,  and  the persons initially
appointed under subparagraphs  (C) and (F) of said
subdivision shall serve  for  a  term  of one year
from  October  1,  1996.  Thereafter  all  persons
appointed under said  subdivision  (5) shall serve
for terms of three years from October first in the
year of their  appointment. Any vacancy under said
subdivision  shall be  filled  by  the  appointing
authority. Each member  of  the  board shall serve
without compensation. The  board  shall  choose  a
chairman from among its members.
    (b) The Governor  shall  schedule  and convene
the first meeting  of  the board after the initial
appointment of members under subdivisions (3), (5)
and (6) of  subsection  (a)  of this section. Such
meeting shall be  held  no  later than November 1,
1996.
    (c)  Not  later  than  January  1,  1998,  and
annually  thereafter, the  board  shall  submit  a
report  to  the   Governor,  the  Commissioner  of
Economic and Community Development and the General
Assembly on the  state of economic clusters in the
state and the  nation.  Such report shall include,
but not be limited to, analyses of (1) the growth,
maturity and decline of existing economic clusters
and (2) the  formation  of  new  economic clusters
which  employ  emerging  technologies.  The  board
shall annually hold an economic cluster conference
for the purpose  of gathering information for such
report. The board  shall invite to the conference,
business leaders, government  officials and higher
education faculty who  work  in,  support or study
economic clusters.
    Sec. 7. Subdivision  (6)  of section 32-307 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (6) The Department of Transportation shall (A)
maintain the visitor  welcome centers owned by the
Department  of  Transportation   and  (B)  provide
housekeeping   services   at    the    Middletown,
Southington,    Wallingford,   West    Willington,
Danbury, North Stonington  and  Westbrook  visitor
welcome centers. [, provided the Office of Tourism
shall  provide  funding   to   the  Department  of
Transportation for such  housekeeping  services at
the Westbrook visitor welcome center;]
    Sec. 8. (NEW)  There is established an account
to be known  as  the  "Connecticut film, video and
media account". Any funds received by the state as
the result of  an activity originated or sponsored
by the Connecticut  Film,  Video and Media Office,
including, but not limited to, advertising revenue
or payments from  film premieres or screenings, or
other film or  video  products, shall be deposited
in the account.  Any  moneys in said account shall
be used by  the  Connecticut Film, Video and Media
Office to carry out the purposes of sections 32-86
to 32-90, inclusive, of the general statutes.

Approved June 24, 1997