Substitute Senate Bill No. 481
          Substitute Senate Bill No. 481

              PUBLIC ACT NO. 98-146


AN ACT CONCERNING  DESIGNATION  OF  PROPERTIES  AS
MANUFACTURING PLANTS AND DESIGNATION OF ENTERPRISE
ZONES AND CONCERNING  ASSESSMENT  OF MANUFACTURING
FACILITIES IN ENTERPRISE ZONES.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  1.  Section  32-75c  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) ANY MUNICIPALITY  WITH  A  POPULATION LESS
THAN  TWENTY THOUSAND  THAT  IS  CONTIGUOUS  TO  A
TARGETED  INVESTMENT  COMMUNITY  MAY  REQUEST  THE
COMMISSIONER OF ECONOMIC AND COMMUNITY DEVELOPMENT
TO APPROVE THE DESIGNATION AS MANUFACTURING PLANTS
THOSE PROPERTIES LOCATED  IN  A  CENSUS  TRACT  OR
CONTIGUOUS TO SUCH  CENSUS  TRACT,  OR ANY PORTION
THEREOF, PROVIDED SUCH  CENSUS  TRACT  OR  PORTION
THEREOF  (1)  IS  CONTIGUOUS  TO  A  CENSUS  TRACT
LOCATED IN A  TARGETED  INVESTMENT  COMMUNITY  AND
THAT HAS A LOW OR MODERATE INCOME HOUSING PROJECT,
(2) CONTAINS A  FACILITY  OF  AT LEAST ONE HUNDRED
EIGHTY THOUSAND SQUARE FEET THAT WAS FORMERLY USED
FOR PRINTING AND  ALLIED  INDUSTRIES, (3) INCLUDES
AT LEAST ONE  HUNDRED ACRES OF LAND THAT IS VACANT
AND  ZONED FOR  COMMERCIAL,  INDUSTRIAL  OR  OTHER
ECONOMIC BASE ACTIVITY AND (4) HAS A BOUNDARY THAT
CONSISTS OF A  PORTION  OF  A RAILROAD TRACK AND A
STREAM.  IN APPROVING  A  DESIGNATION  UNDER  THIS
SUBSECTION, THE COMMISSIONER  SHALL  CONSIDER  THE
DEVELOPMENT RATIONALE, PROPOSED  LOCAL  EFFORT AND
JOB  CREATION  POTENTIAL   OF   THE  AREA  OF  THE
MUNICIPALITY FOR WHICH  THE DESIGNATION IS SOUGHT,
AS  DEMONSTRATED  IN   THE   PROPOSAL   FROM   THE
MUNICIPALITY. QUALIFIED PROPERTIES  DESIGNATED  AS
MANUFACTURING PLANTS UNDER  THIS  SECTION SHALL BE
ENTITLED TO THE SAME BENEFITS, SUBJECT TO THE SAME
CONDITIONS, UNDER THE  GENERAL  STATUTES FOR WHICH
BUSINESSES LOCATED IN AN ENTERPRISE ZONE QUALIFY.
    (b) A municipality  which  has  an  enterprise
zone designated under  section  32-70, AS AMENDED,
and a manufacturing  plant  having  an  area of at
least five hundred  thousand  square feet which is
located outside of  the  enterprise zone may, with
the approval of  the  Commissioner of Economic and
Community Development, designate the manufacturing
plant. A qualified  manufacturing plant DESIGNATED
UNDER THIS SECTION  shall  be entitled to the same
benefits, subject to  the  same  conditions, under
the general statutes  for which businesses located
in an enterprise  zone  qualify.  The commissioner
shall adopt regulations  in  accordance  with  the
provisions of chapter  54 which (1) further define
the term "manufacturing plant" for the purposes of
this  [section]  SUBSECTION,   (2)   establish  an
application procedure for  municipalities  seeking
the approval of  the  commissioner  for  qualified
manufacturing  plant  designations,   UNDER   THIS
SUBSECTION  and (3)  establish  criteria  for  the
issuance  by the  commissioner  of  approvals  for
[such] designations UNDER THIS SUBSECTION.
    Sec. 2. Subdivision  (59)  of section 12-81 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (59)  (a)  Any   manufacturing   facility,  as
defined in section  32-9p,  acquired, constructed,
substantially renovated or  expanded  on  or after
July 1, 1978,  in  a  distressed  municipality, as
defined  in  said   section   or   in  a  targeted
investment  community,  as   defined   in  section
32-222,  AS AMENDED,  or  in  an  enterprise  zone
designated pursuant to  section 32-70, AS AMENDED,
and for which  an eligibility certificate has been
issued by the Department of Economic and Community
Development,   AND   ANY    MANUFACTURING    PLANT
DESIGNATED BY SAID  COMMISSIONER  UNDER SUBSECTION
(a) OF SECTION  32-75c, AS AMENDED BY THIS ACT, as
follows: To the  extent  of eighty per cent of its
valuation for purposes  of  assessment  in each of
the  five  full  assessment  years  following  the
assessment   year  in   which   the   acquisition,
construction,  renovation  or   expansion  of  the
manufacturing facility is completed, EXCEPT THAT A
MANUFACTURING   FACILITY   HAVING    A    STANDARD
INDUSTRIAL CLASSIFICATION CODE  OF 2833 AND HAVING
AT  LEAST ONE  THOUSAND  FULL-TIME  EMPLOYEES,  AS
DEFINED IN SUBSECTION  (f) OF SECTION 32-9j, SHALL
BE ELIGIBLE TO HAVE THE ASSESSMENT PERIOD EXTENDED
FOR FIVE ADDITIONAL  YEARS  UPON  APPROVAL  OF THE
COMMISSIONER, IN ACCORDANCE  WITH  ALL  APPLICABLE
REGULATIONS,  PROVIDED  SUCH  FULL-TIME  EMPLOYEES
HAVE NOT BEEN  RELOCATED  FROM ANOTHER FACILITY IN
THE STATE OPERATED BY THE SAME ELIGIBLE APPLICANT;
    (b)  Any  service   facility,  as  defined  in
section     32-9p,     acquired,      constructed,
substantially renovated or  expanded  on  or after
July  1,  1996,   and  for  which  an  eligibility
certificate has been  issued  by the Department of
Economic and Community  Development,  as  follows:
(i) In the case of an investment of twenty million
dollars or more  but  not  more  than  thirty-nine
million dollars in  the  service  facility, to the
extent of forty  per  cent  of  its  valuation for
purposes of assessment  in  each  of the five full
assessment years following  the assessment year in
which the acquisition, construction, renovation or
expansion of the  service  facility  is completed;
(ii) in the  case  of  an  investment of more than
thirty-nine  million dollars  but  not  more  than
fifty-nine   million  dollars   in   the   service
facility, to the  extent  of fifty per cent of its
valuation for purposes  of  assessment  in each of
the  five  full  assessment  years  following  the
assessment   year  in   which   the   acquisition,
construction,  renovation  or   expansion  of  the
service facility is  completed;  (iii) in the case
of an investment  of  more than fifty-nine million
dollars but not  more  than  seventy-nine  million
dollars in the  service facility, to the extent of
sixty per cent  of  its  valuation for purposes of
assessment in each  of  the  five  full assessment
years following the  assessment  year in which the
acquisition, construction, renovation or expansion
of the service  facility is completed; (iv) in the
case of an  investment  of  more than seventy-nine
million dollars but  not  more than ninety million
dollars in the  service facility, to the extent of
seventy per cent  of its valuation for purposes of
assessment in each  of  the  five  full assessment
years following the  assessment  year in which the
acquisition, construction, renovation or expansion
of the service  facility  is  completed; or (v) in
the case of  an  investment  of  more  than ninety
million dollars in  the  service  facility, to the
extent of eighty  per  cent  of  its valuation for
purposes of assessment  in  each  of the five full
assessment years following  the assessment year in
which the acquisition, construction, renovation or
expansion of the service facility is completed;
    (c) The completion  date  of  a  manufacturing
facility,  MANUFACTURING  PLANT   or   a   service
facility will be  determined  by the Department of
Economic  and Community  Development  taking  into
account the issuance of occupancy certificates and
such other factors  as  it  deems relevant. In the
case of a  manufacturing  facility,  MANUFACTURING
PLANT or a  service  facility  which consists of a
constructed, renovated or  expanded  portion of an
existing  plant, the  assessed  valuation  of  the
facility OR MANUFACTURING  PLANT is the difference
between the assessed  valuation of the plant prior
to its being  improved  and the assessed valuation
of the plant  upon completion of the improvements.
In  the  case   of   a   manufacturing   facility,
MANUFACTURING PLANT or  a  service  facility which
consists of an  acquired  portion  of  an existing
plant, the assessed  valuation  of the facility OR
MANUFACTURING PLANT is  the  assessed valuation of
the  portion acquired.  This  exemption  shall  be
applicable  during  each   such   assessment  year
regardless  of any  change  in  the  ownership  or
occupancy of the  facility OR MANUFACTURING PLANT.
If during any  such  assessment year, however, any
facility for which  an eligibility certificate has
been issued ceases  to  qualify as a manufacturing
facility,  MANUFACTURING  PLANT   or   a   service
facility, the entitlement to the exemption allowed
by  this  subdivision   shall  terminate  for  the
assessment year following  the  date  on which the
qualification ceases, and there shall not be a pro
rata application of  the exemption. Any person who
desires to claim  the  exemption  provided in this
subdivision shall file  annually with the assessor
or   board  of   assessors   in   the   distressed
municipality,  targeted  investment  community  or
enterprise  zone designated  pursuant  to  section
32-70  in  which  the  manufacturing  facility  or
service facility is  located,  on  or  before  the
first  day  of   November,   written   application
claiming such exemption  on  a  form prescribed by
the  Secretary  of   the   Office  of  Policy  and
Management. Failure to  file  such  application in
this  manner  and   form  within  the  time  limit
prescribed shall constitute  a waiver of the right
to such exemption for such assessment year, unless
an extension of  time  is allowed by the Secretary
of the Office  of  Policy  and  Management  as set
forth in section  12-81k,  AS  AMENDED,  and  upon
payment of the required fee for late filing.
    Sec. 3. Subsection (b) of section 32-70 of the
general statutes is  repealed and the following is
substituted in lieu thereof:
    (b)  Notwithstanding  any  provision  of  this
section  to the  contrary,  (1)  any  municipality
which has an enterprise zone may with the approval
of the commissioner,  expand  such enterprise zone
by designating for  inclusion  in such zone one or
more  additional  census   tracts   or  contiguous
portions of such  census tract or tracts, provided
such census tract  or  tracts  are  located in the
municipality,  are contiguous  to  the  enterprise
zone and meet  the reduced criteria for contiguous
census tracts in  subsection  (a) of this section,
[and] (2) any  municipality which is contiguous to
an enterprise zone  which  is  located  in another
municipality  may,  with   the   approval  of  the
commissioner, designate as  an enterprise zone one
or more census  tracts  or  contiguous portions of
such census tract  or tracts, which are located in
the municipality making such designation, provided
such  census tract  or  tracts  meet  the  reduced
criteria   for   contiguous   census   tracts   in
subsection (a) of  this section and are contiguous
to  the  enterprise  zone  located  in  the  other
municipality. When approving  such  an expanded or
new zone under  this  subsection, the commissioner
shall consider the development rationale, proposed
local effort and  job  creation  potential of such
expanded  or  new  zone  as  demonstrated  by  the
municipality AND (3)  ANY  MUNICIPALITY  WHICH  IS
CONTIGUOUS TO AN  ENTERPRISE ZONE WHICH IS LOCATED
IN ANOTHER MUNICIPALITY  MAY, WITH THE APPROVAL OF
THE COMMISSIONER AND  THE  LEGISLATIVE BODY OF THE
MUNICIPALITY  CONTAINING  THE   ENTERPRISE   ZONE,
DESIGNATE AS AN ENTERPRISE ZONE ONE OR MORE CENSUS
TRACTS OR PORTIONS  OF SUCH CENSUS TRACT OR TRACTS
THAT ARE CONTIGUOUS  TO THE ENTERPRISE ZONE IN THE
OTHER MUNICIPALITY, PROVIDED NO MUNICIPALITY WHICH
DESIGNATES AN ENTERPRISE ZONE IN THIS MANNER SHALL
BE  CONSIDERED  TO   BE   A   TARGETED  INVESTMENT
COMMUNITY, AS DEFINED  IN  SECTION  32-222,  OR AN
ENTERPRISE ZONE COMMUNITY.
    Sec. 4. Section  32-56 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) In view  of  the contemplated reduction in
defense expenditures by the federal government and
the  fact that  Connecticut  ranks  first  in  the
nation on a  per capita basis in defense contracts
awarded, the department shall engage special agent
technologists  who  shall  take  steps  to  assist
medium and small  manufacturers  to find solutions
for the problems related to defense conversion and
in executing adaptation  to new technologies. Such
assistance shall be made available to medium-sized
and   small  companies   which   lack   sufficient
resources to keep  abreast  of new technologies in
fields allied to  their  own  or  in  entering new
markets not oriented to defense production.
    (b) It is  found and declared that Connecticut
ranks very high  among  the states on a per capita
basis in the  amounts  of  prime defense contracts
awarded; that the  economies  of many areas in the
state and the  employment opportunities offered by
many  businesses  in   the   state   are   heavily
defense-dependent and would  suffer severe adverse
impacts in the  event  of  prime  defense contract
cutbacks;    that,    in     the     event    that
defense-dependent areas or businesses in the state
were severely impacted by a prime defense contract
cutback,  there  would   be  a  serious  need  for
non-defense-related   industrial  and   commercial
development and activity  in such areas or by such
businesses to provide  and maintain employment and
tax  revenues; that  private  and  public  capital
investment in the  construction,  renovation,  and
expansion of nondefense  manufacturing  and  other
industrial  facilities  will  best  contribute  to
maintaining employment and  the  existing tax base
and to the  development  of a wider-based and more
balanced economy in  the  state;  and that the tax
and other financial  incentives  provided  by this
section  to  encourage  such  public  and  private
investment   in  businesses   and   municipalities
severely  impacted  by   prime   defense  contract
cutbacks, are important and necessary applications
of the resources  of  the state in the exercise of
its responsibility to  preserve the health, safety
and general welfare  in  the  state of its people;
and  therefore  the   necessity,   in  the  public
interest and for  the  public benefit and good, of
the provisions of  this section is hereby declared
as a matter of legislative determination.
    (c) The commissioner  may  determine  that the
economy  of  a   municipality  has  been  severely
impacted by a  prime defense contract cutback. The
commissioner shall make  such a determination only
after  a  public   hearing,   at   which   hearing
information  shall be  submitted  to  support  the
findings required by this section.
    (d) In determining  that  a  municipality  has
been severely impacted by a prime defense contract
cutback the commissioner  shall  find that (1) one
or  more  businesses   in   the  municipality  has
experienced a cancellation  of  one  or more prime
defense contracts, or subcontracts entered into in
connection  with prime  defense  contracts,  or  a
significant reduction in prime defense contract or
related subcontract awards  or  orders;  (2)  such
prime defense contract  cutback has caused or will
cause a loss  of  employment  opportunities in the
municipality;  (3)  such  prime  defense  contract
cutback has caused  or will cause a severe adverse
impact  in  the   municipality.   In  making  such
findings the commissioner  may consider the extent
to which the  businesses  in the municipality are,
or were at  the  period  in  time before the prime
defense contract cutback  occurred,  dependent  on
prime defense contracts or on subcontracts related
to such prime  defense  contracts;  the  extent to
which one or more prime defense contractors in the
municipality has or plans to reduce its work force
or the amount  of  defense  subcontract  awards or
orders which would  be  performed by businesses in
the  municipality;  the   extent   to   which  the
unemployed in the municipality are or were defense
workers  with  specialized   skills   not   easily
transferable to other industries; the existence of
abandoned    or   underutilized    defense-related
manufacturing facilities in  the municipality; and
any other factors  which  the  commissioner  deems
relevant  to  such   finding.  The  commissioner's
determination  that  a  municipality  is  severely
impacted by a prime defense contract cutback shall
be effective for  two  years  from the date of the
decision of the commissioner. The commissioner may
renew  such  determination  for  another  two-year
period following a  public hearing and upon making
the findings required by this subsection.
    (e)  Any  business   facility   located  in  a
municipality declared by  the  commissioner  to be
severely  impacted by  a  prime  defense  contract
cutback  pursuant  to   subsection   (c)  of  this
section, which facility  would be a "manufacturing
facility", as defined in subsection (d) of section
32-9p, but for  the  fact that the facility is not
in  a "distressed  municipality",  as  defined  in
subsection (b) of  section 32-9p, will be deemed a
manufacturing  facility  for   the   purposes   of
sections  32-9p  to   32-9s,   inclusive,  section
12-217e, AS AMENDED,  and  subdivisions  (59)  and
(60) of section  12-81, AS AMENDED, if the purpose
of  the  construction,  expansion,  renovation  or
acquisition of such  facility  is not dependent on
prime defense contracts  or  related subcontracts.
THE PROVISIONS OF  THIS  SECTION  SHALL APPLY TO A
BUSINESS FACILITY LOCATED  IN  A BUILDING THAT WAS
VACANT ON THE  EFFECTIVE  DATE OF THIS ACT AND WAS
FORMERLY USED FOR DEFENSE MANUFACTURING.
    (f)   Any   municipality   declared   by   the
commissioner to be  severely  impacted  by a prime
defense  contract  cutback   will   be   deemed  a
distressed municipality under  sections  8-190 and
8-195    for    the     purpose    of    assisting
non-defense-dependent projects.
    Sec. 5. This  act  shall  take  effect July 1,
1998, and shall  be applicable to assessment years
commencing on or  after  October  1,  1998, except
that section 1 shall take effect October 1, 1998.

Approved June 4, 1998