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statutes is repealed and the following is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