Substitute Senate Bill No. 599
Substitute Senate Bill No. 599
PUBLIC ACT NO. 98-203
AN ACT CONCERNING ECONOMIC CLUSTERS, THE
CONNECTICUT-ISRAEL EXCHANGE COMMISSION AND A
TWENTY-FIRST CENTURY ACTION PLAN COMMISSION.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 32-222 of the general
statutes, as amended by sections 4 and 5 of public
act 97-211, is repealed and the following is
substituted in lieu thereof:
As used in sections 32-220 to 32-234,
inclusive, AS AMENDED:
(a) "Business development project" means a
project undertaken by an eligible applicant
involving one or more of the activities described
in subdivision (1), satisfying one or more of the
criteria set forth in subdivision (2) or involving
the activities described in subdivision (3), as
follows:
(1) The project involves (A) the construction,
substantial renovation, improvement or expansion
of a facility; (B) the acquisition of an existing
facility that has been idle for at least one year
prior to such acquisition, provided if such
facility is acquired through a lease, such lease:
(i) Shall be for an initial term of not less than
five years and (ii) shall be renewable at the
option of the lessee for an additional term of not
less than five years, provided the lease may be
subject to the option of the lessee to purchase
the facility at any time during the lease term or
thereafter. The commissioner may waive the one
year idleness requirement upon determination that
there is a high likelihood that the facility will
remain idle for one year. In making such
determination, the commissioner shall consider the
marketability of the facility, the general
economic condition of the municipality in which
the facility is located, the size of the facility,
the economic benefit of the proposed acquisition
to the municipality and the state, including, but
not limited to, the number of employment positions
proposed to be established at the facility, and
the degree to which the provision of financial
assistance under sections 32-220 to 32-234,
inclusive, AS AMENDED, is necessary as an
inducement to the eligible applicant to acquire
the facility; (C) the acquisition of new machinery
and equipment used directly in the manufacturing
of goods or products and acquired through purchase
as part of the technological upgrading of the
manufacturing process of a facility used in the
operation of a manufacturing or economic base
business which (i) has been in continuous
operation in the state for not less than five
years; and (ii) has incurred costs in acquiring
such machinery and equipment not less than the
greater of two hundred thousand dollars, or two
hundred per cent of the average annual expenditure
of the manufacturing or economic base business for
the acquisition of new machinery and equipment
used directly in the manufacturing of goods or
products at the facility during the three years
prior to the date upon which an application for
financial assistance is submitted pursuant to
subsection (c) of section 32-223, AS AMENDED, or
(D) the acquisition, improvement, demolition or
disposition of real property, or combinations
thereof, used or to be used in connection with the
operation of a manufacturing or economic base
business, provided, if the eligible applicant is
not a municipality or implementing agency, the
commissioner has determined that such project
would not be undertaken or completed in a timely
manner except for the provision of financial
assistance pursuant to sections 32-220 to 32-234,
inclusive, AS AMENDED, and that such project
promotes the economic stability and growth of the
state or any region thereof;
(2) A project which will: (A) Create at a
facility, within twenty-four months of the
initiation of a hiring program, not less than ten
new jobs or an increase in the number of persons
employed at the facility of twenty per cent,
whichever is greater; (B) promote the
diversification of the economy of an area of the
state or manufacturing or other economic base
business where such area or business is
substantially reliant upon defense and related
industry; (C) assist in the avoidance of an
imminent plant closing or relocation by a
manufacturing or other economic base business or
assist or improve the economy of an area of the
state which has been or is likely to be
significantly and adversely impacted by one or
more major plant closings or relocations; (D)
support research and development or
commercialization of technologies, products,
processes or techniques of a manufacturing or
other economic base business; (E) promote
community conservation or development or
improvement of the quality of life for urban
residents of the state; or (F) promote the
revitalization of underutilized, state-owned
former railroad depots and areas adjacent to such
depots;
(3) The project involves the creation of an
inventors workshop by an eligible applicant, to
enable (A) small manufacturing subcontractors
which manufacture parts and components exclusively
for other companies or (B) current or former
manufacturing employees or higher education
faculty or researchers, to design, test,
manufacture and market new products and
manufacturing techniques;
(b) "Business support services" means
activities related to a municipal development
project or business development project which
support the economic competitiveness of
manufacturing or economic base businesses or which
further the interests of the state, including, but
not limited to, facilities and services related to
day care, job training, education, transportation,
employee housing, energy conservation, pollution
control and recycling, provided activities related
to employee housing shall be limited to
feasibility and implementation studies;
(c) "Commissioner" means the Commissioner of
Economic and Community Development;
(d) "ECONOMIC CLUSTER" MEANS AN ECONOMIC
CLUSTER, AS DEFINED IN SECTION 32-4e, RECOGNIZED
BY THE COMMISSIONER;
[(d)] (e) "Department" means the Department of
Economic and Community Development;
[(e)] (f) "Development plan" means a plan for
a municipal development project prepared in
accordance with the provisions of subsection (b)
of section 32-223, AS AMENDED;
[(f)] (g) "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;
[(g)] (h) "Facility" means a plant, building
or other real property improvement, or part
thereof, used or to be used in connection with the
operation of a manufacturing or economic base
business;
[(h)] (i) "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;
[(i)] (j) "For-profit organization" means a
for-profit partnership or sole proprietorship or
corporation which is a manufacturing or economic
base business or which has demonstrated to the
satisfaction of the commissioner that it has the
qualifications, including financial
qualifications, necessary to carry out a business
development project;
[(j)] (k) "Implementing agency" means one of
the following agencies designated by a
municipality under section 32-223, AS AMENDED: (1)
An economic development commission, redevelopment
agency; sewer authority or sewer commission;
public works commission; water authority or water
commission; port authority or port commission or
harbor authority or harbor commission; parking
authority or parking commission; (2) a nonprofit
development corporation; or (3) any other agency
designated and authorized by a municipality to
undertake a project and approved by the
commissioner;
[(k)] (l) "Manufacturing or economic base
business" means a business classified in
accordance with the standard industrial
classification system of the Bureau of Census of
the United States Department of Commerce as
belonging to a major industry group numbered 20 to
39, inclusive; a business engaged in research and
development directly related to (1) manufacturing,
(2) agriculture or (3) aquaculture; a business
engaged in the significant servicing, overhauling
or rebuilding of machinery and equipment for
industrial use; ANY BUSINESS THAT IS PART OF AN
ECONOMIC CLUSTER; or any establishment or
auxiliary or operating unit thereof, as defined in
the Standard Industrial Classification Manual,
which the commissioner determines will materially
contribute to the economy of the state by creating
or retaining jobs, exporting products or services
beyond the state's boundaries, encouraging
innovation in products or services, adding value
to products or services, or otherwise supporting
or enhancing existing activities that are
important to the economy of the state;
[(l)] (m) "Municipal development project"
means a business development project through which
real property is acquired by a municipality or
implementing agency as part of such project;
[(m)] (n) "Municipality" means a town, city,
consolidated town and city or consolidated town
and borough;
[(n)] (o) "Nonprofit organization" means a
municipality or nonprofit corporation as defined
in section 33-1002 and organized under the laws of
this state and for purposes of this chapter
includes any constituent unit of the state system
of higher education;
[(o)] (p) "Planning commission" means a
planning and zoning commission designated pursuant
to section 8-4a or a planning commission created
pursuant to section 8-19;
[(p)] (q) "Project" means a municipal
development project or business development
project;
[(q)] (r) "Project area" means the area within
which a municipal development project or business
development project is located;
[(r)] (s) "Real property" means land,
buildings and other structures and improvements
thereto, subterranean or subsurface right, any and
all easements, air rights and franchises of any
kind or nature;
[(s)] (t) "Site and infrastructure
improvements" mean improvements to: (1) Sanitary
sewer facilities; (2) natural gas pipes, electric,
telephone and telecommunications conduits and
other facilities and waterlines and water supply
facilities, except for any such pipes, wires,
conduits, waterlines or facilities which a public
service company, as defined in section 16-1, water
company, as defined in section 25-32a, or
municipal utility is required to install pursuant
to any provision of the general statutes or any
special act, regulation or order of the Department
of Public Utility Control or a certificate of
public convenience and necessity; (3) storm
drainage facilities, including facilities to
control flooding; (4) site grading, landscaping,
environmental improvements, parking facilities,
roadways and related appurtenances; (5) railroad
spurs; (6) public port or docking facilities; and
(7) such other related improvements necessary or
appropriate to carry out the project;
[(t)] (u) "State" means the state of
Connecticut;
[(u)] (v) "Targeted investment community"
means a municipality which contains an enterprise
zone designated pursuant to section 32-70, AS
AMENDED;
[(v)] (w) "Total project cost" means costs of
any kind or nature relating to the planning,
implementation and completion of a municipal or
business development project;
[(w)] (x) "Defense diversification project"
means a project undertaken during the period from
July 1, 1991, to June 30, 1998, inclusive, by an
eligible applicant, as defined in this subsection,
involving any of the following: (1) Conversion or
preparation for conversion of defense-related
production to other types of production; (2)
product diversification or capital, organizational
or technological modernization by an eligible
applicant engaged in defense-related production;
(3) product diversification or conversion of
business service activity for application or use
in other than defense-related business by any
subcontractor engaged in defense-related
production or business service activity; (4)
conversion by an eligible applicant of real
property used in its entirety, or in part, for
defense-related activity to a use primarily for
other than defense-related activity, including use
as a site related to the export of Connecticut
products from the state for purposes of
encouraging such exportation; (5) product
diversification or conversion of business service
activity by an eligible applicant engaged in
production or business service activity which is
not defense-related in a region of the state
determined by the commissioner to be significantly
impacted by the loss, or potential loss, of
defense-related production or business service
activity, including acquisition or development, or
both, of real property by such applicant for
purposes of such diversification or conversion;
and (6) the creation or expansion of production,
business service, research or research-related
activities by an eligible applicant that will
significantly increase employment opportunities
for former employees of a contractor or
subcontractor engaged in defense-related
production. For purposes of any defense
diversification project, as defined in this
subsection, (A) "regional defense diversification
plan" means a plan prepared or supported by an
eligible applicant for purposes of (i) promoting
or advocating defense diversification projects or
(ii) supporting the retention of naval operations
as an interim strategy for economic stability
within a region seeking diversification, (B)
"eligible applicant" means any for-profit or
nonprofit organization, municipality, regional
planning agency or any combination thereof and (C)
"business service activity" means the rendering of
any type of service to a business organization for
consideration;
[(x)] (y) "Legislative body" means (1) the
board of selectmen in a town that does not have a
charter, special act or home rule ordinance
relating to its government or (2) the council,
board of aldermen, representative town meeting,
board of selectmen or other elected legislative
body described in a charter, special act or home
rule ordinance relating to its government in a
city, consolidated town and city, consolidated
town and borough or a town having a charter,
special act, consolidation ordinance or home rule
ordinance relating to its government.
Sec. 2. Section 32-348 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) There is hereby established within the
Department of Economic and Community Development a
manufacturing extension service program for the
purpose of awarding a grant to [a private
nonprofit or public entity seeking to establish
within the state a manufacturing extension service
for small and medium-sized manufacturers] THE
CONNECTICUT MANUFACTURING EXTENSION PARTNERSHIP
AFFILIATE, WHICH SHALL BE KNOWN AS CONNSTEP, AS
DESIGNATED BY THE UNITED STATES DEPARTMENT OF
COMMERCE NATIONAL INSTITUTE OF STANDARDS AND
TECHNOLOGY. Applications for a grant under this
section shall be made and grants shall be awarded
in the manner and form prescribed by the
commissioner. The extension service's
responsibilities shall include, but not be limited
to, providing training for small and medium-sized
businesses in high performance work practices.
[(b) The Commissioner of Economic and
Community Development shall, within available
appropriations, conduct a study of the feasibility
of the consolidation of the business outreach
center challenge grant program authorized under
section 32-9qq and The University of Connecticut
small business development center program into any
extension service established with assistance
provided under subsection (a) of this section. The
commissioner shall submit a report on his 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 no later
than January 15, 1994.]
[(c)] (b) For the purposes described in
subsection [(d)] (c) of this section, the State
Bond Commission shall have the power, from time to
time to authorize the issuance of bonds of the
state in one or more series and in principal
amounts not exceeding in the aggregate [one] FOUR
million dollars.
[(d)] (c) The proceeds of the sale of said
bonds, to the extent of the amount stated in
subsection (c) of this section, shall be used by
the Commissioner of Economic and Community
Development for the purposes of subsection (a) of
this section.
[(e)] (d) All provisions of section 3-20, or
the exercise of any right or power granted thereby
which are not inconsistent with the provisions of
this section are hereby adopted and shall apply to
all bonds authorized by the State Bond Commission
pursuant to this section, and temporary notes in
anticipation of the money to be derived from the
sale of any such bonds so authorized may be issued
in accordance with said section 3-20 and from time
to time renewed. Such bonds shall mature at such
time or times not exceeding twenty years from
their respective dates as may be provided in or
pursuant to the resolution or resolutions of the
State Bond Commission authorizing such bonds. None
of said bonds shall be authorized except upon a
finding by the State Bond Commission that there
has been filed with it a request for such
authorization, which is signed by or on behalf of
the Secretary of the Office of Policy and
Management and states such terms and conditions as
said commission, in its discretion, may require.
Said bonds issued pursuant to this section shall
be general obligations of the state and the full
faith and credit of the state of Connecticut are
pledged for the payment of the principal of and
interest on said bonds as the same become due, and
accordingly and as part of the contract of the
state with the holders of said bonds,
appropriation of all amounts necessary for
punctual payment of such principal and interest is
hereby made, and the Treasurer shall pay such
principal and interest as the same become due.
Sec. 3. Section 32-34 of the general statutes
is repealed and the following is substituted in
lieu thereof:
As used in this chapter AND SECTIONS 5 AND 6
OF THIS ACT, the following terms shall have the
following meanings unless the context clearly
indicates another meaning and intent:
(1) "Corporation" means Connecticut
Innovations, Incorporated as created under section
32-35;
(2) "Entrepreneur" means any person who seeks
to organize, operate and assume the risk for a
business enterprise, or who organizes, operates
and assumes the risk for a business enterprise;
(3) "Finance committee" means a committee or
subcommittee organized by the corporation and
having the authority to approve or deny
applications for financial aid and to enter into
agreements on behalf of the corporation to provide
financial aid;
(4) "Financial aid" means the infusion of
[risk] capital [or operating capital] to persons,
[for use in the research, development, application
and exploitation of specific technologies,
inventions and products and for education related
to such technologies, inventions and products] IN
ANY FORM WHATSOEVER, including, but not limited
to, grants, loans, EQUITY, LEASES, GUARANTEES,
ROYALTY ARRANGEMENTS, OTHER risk capital
[investment] and other types of financial
assistance;
(5) "Incubator facilities" means a building,
structure or complex designed, constructed,
renovated or developed to house and provide
research and other services to assist small
technology-based companies;
(6) "Invention" means any new product without
regard to whether a patent has been or could be
granted;
(7) "Person" means any individual, GENERAL OR
LIMITED partnership, corporation, limited
liability company, institution of higher
education, governmental entity or joint venture
conducting research into ideas with commercial
potential or carrying on business, or proposing to
carry on business, within the state which (A) in
the case of an individual, GENERAL OR LIMITED
partnership, corporation, limited liability
company or joint venture, demonstrates to the
corporation the inability (i) to obtain
conventional financing in satisfactory amounts or
on satisfactory terms or (ii) to locate or
continue operations in the state without
assistance as provided in this chapter, and (B)
demonstrates to the corporation that any project
for research into or the development of specific
technologies, products, devices, techniques or
procedures or the marketing of services based on
the use of such technologies, products, devices,
techniques or procedures for which assistance
under this chapter, is sought, (i) will create new
or retain existing jobs in the state, (ii) will
result in an increase in the amount of goods or
services exported from the state, (iii) will help
to strengthen the economy of the state, or (iv)
will promote the development and utilization of
technology in the state;
(8) "Product" means any technology, device,
technique, service or process, which is or may be
exploitable commercially; such term shall not
refer to pure research but shall be construed to
apply to such technologies, products, devices,
techniques, services or processes which have
advanced beyond the theoretic stage and are
readily capable of being, or have been, reduced to
practice;
(9) "Research" means the scientific and
engineering analysis, investigation, collection of
ideas and inquiry into concepts, processes and
techniques, the purpose of which is intended to
result in a commercially feasible product, process
or technique;
(10) "Seed venture" means a business or other
entity in the early stage of development;
(11) "Technical peer review committee" means a
committee, subcommittee or other entity organized
by the corporation to provide advice and counsel
concerning the technological, marketing and
management feasibility of projects in connection
with each application for financial and technical
assistance;
(12) "Technology" means the conversion of
basic scientific research into processes,
techniques and products which may have commercial
potential;
(13) "Advanced technology center" means a
cooperative research center in a specified field
of science and technology established and funded,
subject to the requirements in sections 32-40a,
32-40b and 32-40c, through an academic, industrial
and governmental partnership for purposes of
technological research with a direct relationship
to economic development in the state;
(14) "Venture" means, without limitation, any
contractual arrangement with any person whereby
the corporation obtains rights from or in an
invention or product or proceeds therefrom, or
rights to obtain from any person any and all forms
of equity instruments including, but not limited
to, common and preferred stock, warrants, options,
convertible debentures and similar types of
instruments exercisable or convertible into
capital stock, in exchange for the granting of
financial aid to such person;
(15) "VENTURE LEASE" MEANS A LEASE BY THE
CORPORATION TO A TECHNOLOGY COMPANY OF ANY REAL OR
PERSONAL PROPERTY, ON SUCH TERMS, INCLUDING LEASE
PAYMENTS, LEASE TERM AND PURCHASE OPTIONS, AS THE
CORPORATION SHALL DETERMINE;
(16) "AFFILIATE" MEANS ANY PERSON THAT
DIRECTLY OR INDIRECTLY THROUGH ONE OR MORE
INTERMEDIARIES, CONTROLS OR IS CONTROLLED BY OR IS
UNDER COMMON CONTROL WITH, ANOTHER PERSON,
INCLUDING, BUT NOT LIMITED TO, ANY CORPORATION,
GENERAL OR LIMITED PARTNERSHIP OR LIMITED
LIABILITY COMPANY CONTROLLED, DIRECTLY OR
INDIRECTLY, BY SUCH OTHER PERSON OR THE
CORPORATION, PROVIDED, IN ADDITION TO OTHER MEANS
OF BEING CONTROLLED, A GENERAL OR LIMITED
PARTNERSHIP OR LIMITED LIABILITY COMPANY SHALL BE
DEEMED TO BE CONTROLLED BY THE CORPORATION IF THE
CORPORATION OR ONE OF ITS AFFILIATES ACTS AS A
GENERAL PARTNER OR A MANAGER OF SUCH GENERAL OR
LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY;
(17) "CAPITAL INITIATIVE" MEANS PROVIDING
FINANCIAL AID THROUGH ONE OR MORE AFFILIATES AND
RAISING THE CAPITAL FOR SUCH AFFILIATES, IN WHOLE
OR IN PART, FROM SOURCES OTHER THAN THE STATE.
Sec. 4. Section 32-39 of the general statutes
is repealed and the following is substituted in
lieu thereof:
The purposes of the corporation shall be to
stimulate and encourage the research and
development of new technologies and products, to
encourage the creation and transfer of new
technologies, to assist existing businesses in
adopting current and innovative technological
processes, to stimulate and provide services to
industry that will advance the adoption and
utilization of technology, to achieve improvements
in the quality of products and services, to
stimulate and encourage the development and
operation of new and existing science parks and
incubator facilities, and to promote science,
engineering, mathematics and other disciplines
that are essential to the development and
application of technology within Connecticut by
the infusion of financial aid for research,
invention and innovation in situations in which
such financial aid would not otherwise be
reasonably available from commercial or other
sources, and for these purposes the corporation
shall have the following powers:
(1) To have perpetual succession as a body
corporate and to adopt bylaws, policies and
procedures for the regulation of its affairs and
conduct of its businesses as provided in section
32-36;
(2) To enter into venture agreements with
persons, upon such terms and on such conditions as
are consistent with the purposes of this chapter,
for the advancement of financial aid to such
persons for the research, development and
application of specific technologies, products,
procedures, services and techniques, to be
developed and produced in this state, and to
condition such agreements upon contractual
assurances that the benefits of increasing or
maintaining employment and tax revenues shall
remain in this state and shall accrue to it;
(3) To solicit, receive and accept aid, grants
or contributions from any source of money,
property or labor or other things of value, to be
held, used and applied to carry out the purposes
of this chapter, subject to the conditions upon
which such grants and contributions may be made,
including but not limited to, gifts or grants from
any department or agency of the United States or
the state;
(4) With the approval of the Secretary of the
Office of Policy and Management, to invest in,
acquire, lease, purchase, own, manage, hold and
dispose of real property and lease, convey or deal
in or enter into agreements with respect to such
property on any terms necessary or incidental to
the carrying out of these purposes; provided,
however, that all such acquisitions of real
property shall be subject to the provisions of
section 4b-23 AND FURTHER PROVIDED THE FOREGOING
REQUIREMENTS OF THIS SUBDIVISION SHALL NOT APPLY
TO AFFILIATES WHICH ACQUIRE, LEASE, PURCHASE, OWN,
MANAGE, HOLD OR DISPOSE OF REAL PROPERTY AND WHICH
AFFILIATES ENGAGE IN SUCH ACTIVITIES PRIMARILY FOR
USE BY OR FOR THE BENEFIT OF TECHNOLOGY COMPANIES;
(5) To borrow money OR TO GUARANTEE A RETURN
TO THE INVESTORS IN OR LENDERS TO ANY CAPITAL
INITIATIVE, to the extent permitted under this
chapter, AND SECTIONS 5 AND 6 OF THIS ACT;
(6) To hold patents, copyrights, trademarks,
marketing rights, licenses, or any other evidences
of protection or exclusivity as to any products as
defined herein, issued under the laws of the
United States or any state or any nation;
(7) To employ such assistants, agents and
other employees as may be necessary or desirable,
which employees shall be exempt from the
classified service and shall not be employees, as
defined in subsection (b) of section 5-270, AS
AMENDED; establish all necessary or appropriate
personnel practices and policies, including those
relating to hiring, promotion, compensation,
retirement and collective bargaining, which need
not be in accordance with chapter 68, and the
corporation shall not be an employer as defined in
subsection (a) of section 5-270, AS AMENDED; and
engage consultants, attorneys and appraisers as
may be necessary or desirable to carry out its
purposes in accordance with this chapter;
(8) To make and enter into all contracts and
agreements necessary or incidental to the
performance of its duties and the execution of its
powers under this chapter;
(9) To sue and be sued, plead and be
impleaded, adopt a seal and alter the same at
pleasure;
(10) With the approval of the State Treasurer,
to invest any funds not needed for immediate use
or disbursement, including any funds held in
reserve, in obligations issued or guaranteed by
the United States of America or the state of
Connecticut and in other obligations which are
legal investments for retirement funds in this
state;
(11) To procure insurance against any loss in
connection with its property and other assets in
such amounts and from such insurers as it deems
desirable;
(12) To the extent permitted under its
contract with other persons, to consent to any
termination, modification, forgiveness or other
change of any term of any contractual right,
payment, royalty, contract or agreement of any
kind to which the corporation is a party;
(13) To do anything necessary and convenient
to render the bonds to be issued under section
32-41 more marketable;
(14) To acquire, lease, purchase, own, manage,
hold and dispose of personal property, and lease,
convey or deal in or enter into agreements with
respect to such property on any terms necessary or
incidental to the carrying out of these purposes;
(15) In connection with any application for
assistance under this chapter, or commitments
therefor, to make and collect such fees as the
corporation shall determine to be reasonable;
(16) To enter into venture agreements with
persons, upon such terms and conditions as are
consistent with the purposes of this chapter to
provide financial aid to such persons for the
marketing of new and innovative services based on
the use of a specific technology, product, device,
technique, service or process;
(17) To enter into limited partnerships or
other contractual arrangements with private and
public sector entities as the corporation deems
necessary to provide financial aid which shall be
used to make investments of seed venture capital
in companies based in or relocating to the state
in a manner which shall foster additional capital
investment, the establishment of new businesses,
the creation of new jobs and additional
commercially-oriented research and development
activity. The repayment of such financial aid
shall be structured in such manner as the
corporation deems will best encourage private
sector participation in such limited partnerships
or other arrangements. The board of directors,
executive director, officers and staff of the
corporation may serve as members of any advisory
or other board which may be established to carry
out the purposes of this subdivision;
(18) To account for and audit funds of the
corporation and funds of any recipients of
financial aid from the corporation;
(19) To advise the Governor, the General
Assembly, the Commissioner of Economic and
Community Development and the Commissioner of
Higher Education on matters relating to science,
engineering and technology which may have an
impact on state policies, programs, employers and
residents, and on job creation and retention;
(20) To promote technology-based development
in the state;
(21) To encourage and promote the
establishment of and, within available resources,
to provide financial aid to advanced technology
centers;
(22) To maintain an inventory of data and
information concerning state and federal programs
which are related to the purposes of this chapter
and to serve as a clearinghouse and referral
service for such data and information;
(23) To conduct and encourage research and
studies relating to technological development;
(24) To provide technical or other assistance
and, within available resources, to provide
financial aid to the Connecticut Academy of
Science and Engineering, Incorporated, in order to
further the purposes of this chapter;
(25) To recommend a science and technology
agenda for the state that will promote the
formation of public and private partnerships for
the purpose of stimulating research, new business
formation and growth and job creation;
(26) To encourage and provide technical
assistance and, within available resources, to
provide financial aid to existing manufacturers
and other businesses in the process of adopting
innovative technology and new state-of-the-art
processes and techniques;
(27) To recommend state goals for
technological development and to establish
policies and strategies for developing and
assisting technology-based companies and for
attracting such companies to the state;
(28) To promote and encourage and, within
available resources, to provide financial aid for
the establishment, maintenance and operation of
incubator facilities;
(29) To promote and encourage the coordination
of public and private resources and activities
within the state in order to assist
technology-based entrepreneurs and business
enterprises;
(30) To provide services to industry that will
stimulate and advance the adoption and utilization
of technology and achieve improvements in the
quality of products and services;
(31) To promote science, engineering,
mathematics and other disciplines that are
essential to the development and application of
technology;
(32) To coordinate its efforts with existing
business outreach centers, as described in section
32-9qq;
(33) To do all acts and things necessary and
convenient to carry out the purposes of this
chapter;
(34) To accept from the department: (A)
Financial assistance, (B) revenues or the right to
receive revenues with respect to any program under
the supervision of the department, and (C) loan
assets or equity interests in connection with any
program under the supervision of the department;
to make advances to and reimburse the department
for any expenses incurred or to be incurred by it
in the delivery of such assistance, revenues,
rights, assets, or interests; to enter into
agreements for the delivery of services by the
corporation, in consultation with the department,
the Connecticut Housing Finance Authority and the
Connecticut Development Authority, to third
parties which agreements may include provisions
for payment by the department to the corporation
for the delivery of such services; and to enter
into agreements with the department or with the
Connecticut Development Authority or Connecticut
Housing Finance Authority for the sharing of
assistants, agents and other consultants,
professionals and employees, and facilities and
other real and personal property used in the
conduct of the corporation's affairs;
(35) To transfer to the department: (A)
Financial assistance, (B) revenues or the right to
receive revenues with respect to any program under
the supervision of the corporation, and (C) loan
assets or equity interests in connection with any
program under the supervision of the corporation,
provided the transfer of such financial
assistance, revenues, rights, assets or interests
is determined by the corporation to be
practicable, within the constraints and not
inconsistent with the fiduciary obligations of the
corporation imposed upon or established upon the
corporation by any provision of the general
statutes, the corporation's bond resolutions or
any other agreement or contract of the corporation
and to have no adverse effect on the tax-exempt
status of any bonds of the state;
(36) WITH RESPECT TO ANY CAPITAL INITIATIVE,
TO CREATE, WITH ONE OR MORE PERSONS, ONE OR MORE
AFFILIATES AND TO PROVIDE, DIRECTLY OR INDIRECTLY,
FOR THE CONTRIBUTION OF CAPITAL TO ANY SUCH
AFFILIATE, EACH SUCH AFFILIATE BEING EXPRESSLY
AUTHORIZED TO EXERCISE ON SUCH AFFILIATE'S OWN
BEHALF ALL POWERS WHICH THE CORPORATION MAY
EXERCISE UNDER THIS SECTION, IN ADDITION TO SUCH
OTHER POWERS PROVIDED TO IT BY LAW;
(37) TO PROVIDE FINANCIAL AID TO ENABLE
BIOTECHNOLOGY AND OTHER TECHNOLOGY COMPANIES TO
LEASE, ACQUIRE, CONSTRUCT, MAINTAIN, REPAIR,
REPLACE OR OTHERWISE OBTAIN AND MAINTAIN
PRODUCTION, TESTING, RESEARCH, DEVELOPMENT,
MANUFACTURING, LABORATORY AND RELATED AND OTHER
FACILITIES, IMPROVEMENTS AND EQUIPMENT.
Sec. 5. (NEW) (a) With respect to any
affiliate created pursuant to section 32-39 of the
general statutes, as amended by this act,
liability shall be limited solely to the assets
and revenues or other resources of any such
affiliate and without recourse liability to
Connecticut Innovations, Incorporated, its other
funds or any other assets of the corporation,
except to the extent of any express written
guarantees by the corporation or any investments
made or committed to by the corporation.
(b) The provisions of sections 32-47 and 1-125
of the general statutes shall apply to any
officer, director, designee or employee serving at
the request of the corporation as a member,
director or officer or advisor of any such
affiliate. Any such person so appointed shall not
be personally liable for the debts, obligations or
liabilities of any such affiliate as provided in
said section 1-125. Any affiliate shall and the
corporation may provide the indemnification to
protect, save harmless and indemnify such officer,
director, designee or employee as provided in said
section 1-125.
Sec. 6. (NEW) Guarantees issued by Connecticut
Innovations, Incorporated, and all equity
instruments and obligations, any of which include
a guarantee of a return of capital or principal by
the corporation, under the provisions of chapter
581 of the general statutes, as amended by this
act, this section and section 5 of this act, are
hereby made securities in which all public
officers and public bodies of the state and its
political subdivisions, all insurance companies,
state banks and trust companies, national banking
associations, savings banks, savings and loan
associations, investment companies, executors,
administrators, trustees and other fiduciaries may
properly and legally invest funds, including
capital in their control or belonging to them.
Such instruments and obligations are hereby made
securities which may properly and legally be
deposited with and received by any state or
municipal officer or any agency or political
subdivision of the state for any purpose for which
the deposit of bonds or obligations of the state
is now or may hereafter be authorized by law.
Sec. 7. Subsection (c) of section 32-70 of the
general statutes, as amended by section 98 of
public act 97-2 of the June 18 special session, is
repealed and the following is substituted in lieu
thereof:
(c) (1) On or before September 30, 1993, the
Commissioner of Economic and Community Development
shall approve the designation of ten areas as
enterprise zones, not more than four of which
shall be in municipalities with a population
greater than eighty thousand and not more than six
of which shall be in municipalities with a
population of less than eighty thousand. (2) (A)
On or after October 1, 1993, the commissioner
shall approve the designation of two areas as
enterprise zones. Each such area shall be in a
municipality with a population of less than eighty
thousand, in which there are one or more base or
plant closures. Such municipalities shall be in
different counties. If the commissioner approves
the designation of an area of a municipality as an
enterprise zone because of a plant closure in the
municipality and there is a closure of another
plant in any other municipality in the state by
the same business, the commissioner shall also
designate an area in such other municipality as an
enterprise zone. If any such designated area
includes a portion of a census tract in which any
such base or plant is located, the census tracts
in such area shall not be required to meet the
eligibility criteria set forth under subsection
(a) of this section for enterprise zone
designation. If any such area is located elsewhere
in the municipality, the census tracts in such
area shall meet such eligibility criteria. As used
in this subparagraph, (i) "base" means any United
States or state of Connecticut military base or
facility located in whole or in part within the
state; (ii) "plant" means any manufacturing or
economic base business, as defined in subsection
[(k)] (l) of section 32-222; and (iii) "closure"
means any reduction or transfer in military
personnel or civilian employment at one or more
bases or plants in a municipality, which occurred
between July 1, 1989, and July 1, 1993, or is
scheduled to occur between July 1, 1993, and July
1, 1996, and exceeds two thousand persons. Such
employment figures shall be certified by the Labor
Department. (B) On or after October 1, 1993, the
commissioner shall approve the designation of
three other areas as enterprise zones, one of
which shall be in a municipality with a population
greater than eighty thousand and two of which
shall be in municipalities with a population of
less than eighty thousand. The census tracts in
such areas shall meet the eligibility criteria set
forth under subsection (a) of this section for
enterprise zone designation. The commissioner
shall approve the designation of enterprise zones
under this subparagraph for those municipalities
which he determines to have experienced the
largest increases in poverty from October 1, 1989,
to October 1, 1993, inclusive, based on a weighted
average of the unemployment rate, caseload under
the temporary family assistance program and per
capita income of less than ninety per cent of the
state average between 1985 and 1989. In making his
determination, the commissioner may also consider
the vacancy rates for commercial and industrial
facilities in a municipality and a municipality's
program for the implementation of an effective
enterprise zone program. To the extent
appropriate, the commissioner shall use the
Regional Economic Models, Inc. (REMI) system in
making the calculations for such determination.
(C) Notwithstanding the provisions of subsection
(a) of this section, municipalities that were not
distressed municipalities under the provisions of
subsection (b) of section 32-9p on February 1,
1986, shall be eligible to designate areas as
enterprise zones under subparagraph (A) or (B) of
this subdivision. (3) The commissioner shall not
approve the designation of more than one
enterprise zone in any municipality. The
commissioner shall adopt regulations in accordance
with chapter 54 concerning such additional
qualifications for an area to become an enterprise
zone as he deems necessary. The commissioner may
remove the designation of any area he has approved
as an enterprise zone if such area no longer meets
the criteria for designation as such an area set
forth in this section or in regulations adopted
pursuant to this section, provided no such
designation shall be removed less than ten years
from the original date of approval of such zone.
The commissioner may designate any additional area
as an enterprise zone if that area is designated
as an enterprise zone, empowerment zone or
enterprise community pursuant to any federal
legislation.
Sec. 8. Section 32-23tt of the general
statutes is repealed and the following is
substituted in lieu thereof:
As used in section 32-23ll, this section, and
sections 32-23uu, 32-23vv and 32-235:
(1) "Authority" means the Connecticut
Development Authority established under the
provisions of this chapter.
(2) "Educational upgrades" means (A) programs
designed to increase the basic skills of
production workers including, but not limited to
training, in written and oral communication,
mathematics or science, or (B) training in
innovative production methods and workplace
oriented computer technical skills.
(3) "Financial assistance" means grants,
loans, loan guarantees or interest rate subsidies
or any combination thereof.
(4) "Manufacturing or economic base business"
means a business defined under subsection [(k)]
(l) of section 32-222.
(5) "Production worker" means an employee of a
manufacturer whose principal duties are located
within the state, and consist of the assembly or
construction of the manufacturer's product or a
portion thereof.
Sec. 9. Section 32-41 of the general statutes
is repealed and the following is substituted in
lieu thereof:
The State Bond Commission shall have power in
accordance with the provisions of section 3-20 to
authorize the issuance of bonds of the state in
one or more series and in principal amounts not
exceeding in the aggregate [fifty-eight]
FORTY-EIGHT million two hundred fifty thousand
dollars to carry out the purposes of sections
32-32 to 32-41, inclusive. [, provided five
million dollars of said authorization shall be
effective July 1, 1996.] The principal and
interest of said bonds shall be payable at such
place or places as may be determined by the State
Treasurer and shall bear such date or dates,
mature at such time or times, bear interest at
such rate or different or varying rates, be
payable at such time or times, be in such
denominations, be in such form with or without
interest coupons attached, carry such registration
and transfer privileges, be payable in such medium
of payment and be subject to such terms of
redemption with or without premium as,
irrespective of the provisions of said section
3-20, may be provided by the authorization of the
State Bond Commission or fixed in accordance
therewith. The proceeds of the sale of such bonds,
after deducting therefrom all expenses of issuance
and sale, shall be paid to the Connecticut
Innovations, Incorporated Fund created under
section 32-41a. When the State Bond Commission has
acted to issue such bonds or a portion thereof,
the Treasurer may, pending the issue of such
bonds, issue, in the name of the state, temporary
notes in anticipation of the money to be received
from the sale of such bonds. In issuing the bonds
authorized hereunder, the State Bond Commission
may require repayment of such bonds by the
corporation as shall seem desirable consistent
with the purposes of sections 32-32 to 32-41,
inclusive. Such terms for repayment may include a
forgiveness of interest, a holiday in the
repayment of interest or principal or both.
Sec. 10. Section 32-41b of the general
statutes, as amended by section 17 of public act
97-1 of the June 5 special session, is repealed
and the following is substituted in lieu thereof:
The State Bond Commission shall have power in
accordance with the provisions of section 3-20 to
authorize the issuance of bonds of the state in
one or more series and in principal amounts not
exceeding in the aggregate [fifty-one] SIXTY-ONE
million four hundred forty-five thousand six
hundred dollars, [provided five million dollars of
said authorization shall be effective July 1,
1996,] to carry out the purposes of this section
as follows: (1) Loans for the development and
marketing of products in the high technology field
within the state, not exceeding [forty-four]
THIRTY-FOUR million dollars; [, provided five
million dollars of said authorization shall be
effective July 1, 1996;] (2) royalty financing for
start-up costs and product development costs of
high technology products and procedures in the
state, not exceeding seven million four hundred
forty-five thousand six hundred dollars; AND (3)
FINANCIAL AID FOR BIOTECHNOLOGY AND OTHER HIGH
TECHNOLOGY LABORATORIES, FACILITIES AND EQUIPMENT,
NOT EXCEEDING TWENTY MILLION DOLLARS. Any loans
originated under subdivision (1) of this section
shall bear interest at a rate to be determined in
accordance with subsection (t) of said section
3-20. The principal and interest of said bonds
shall be payable at such place or places as may be
determined by the State Treasurer and shall bear
such date or dates, mature at such time or times,
bear interest at such rate or different or varying
rates, be payable at such time or times, be in
such denominations, be in such form with or
without interest coupons attached, carry such
registration and transfer privileges, be payable
in such medium of payment and be subject to such
terms of redemption with or without premium as,
irrespective of the provisions of said section
3-20, may be provided by the authorization of the
State Bond Commission or fixed in accordance
therewith. The proceeds of the sale of said bonds,
after deducting therefrom all expenses of issuance
and sale, shall be paid to the Connecticut
Innovations, Incorporated Fund created under
section 32-41a. When the State Bond Commission has
acted to issue such bonds or a portion thereof,
the Treasurer may, pending the issue of such
bonds, issue, in the name of the state, temporary
notes in anticipation of the money to be received
from the sale of such bonds. In issuing the bonds
authorized hereunder, the State Bond Commission
may require repayment of such bonds by the
corporation as shall seem desirable consistent
with the purposes of this section and section
32-41a. Such terms for repayment may include a
forgiveness of interest, a holiday in the
repayment of interest or principal or both.
Sec. 11. Section 32-182 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Department of Economic and Community
Development may provide the necessary personnel
and resources AS PROVIDED IN THIS SECTION to help
the commission perform its tasks in accordance
with the provisions of this chapter. If the
commission receives monetary contributions or
contributions of in-kind resources from private
agencies during any state fiscal year, the
department [shall, within available
appropriations, provide an equal amount of in-kind
resources, up to a value of seventy thousand
dollars, to the commission to match such
contributions] SHALL ALLOCATE AN AMOUNT OF MONEY
TO THE COMMISSION EQUAL TO ONE-THIRD OF THE TOTAL
VALUE OF ALL SUCH CONTRIBUTIONS AND RESOURCES
PROVIDED SUCH ALLOCATION DOES NOT EXCEED SEVENTY
THOUSAND DOLLARS IN ANY STATE FISCAL YEAR. IN
ADDITION, THE DEPARTMENT MAY CONTINUE TO PROVIDE
THE IN-KIND RESOURCES TO THE COMMISSION WHICH IT
IS PROVIDING ON THE EFFECTIVE DATE OF THIS
SECTION. Any such contributions, ALLOCATIONS and
resources shall be used by the commission to
establish an office to develop strategic business
relationships between Connecticut and Israeli
businesses.
Sec. 12. (a) There is established a
Twenty-First Century Action Plan Commission.
(b) The commission shall consist of twenty-two
members, appointed as follows:
(1) Four by the president pro tempore of the
Senate, one of whom shall be a member of the
General Assembly, one of whom shall represent
business and industry, one of whom shall represent
academics and the arts and one of whom shall
represent organized labor;
(2) Four by the speaker of the House of
Representatives, one of whom shall be a member of
the General Assembly, one of whom shall represent
academics and the arts, one of whom shall be a
concerned citizen having substantial interest in
the future and experience in futurism or community
service and one of whom shall represent organized
labor;
(3) Three by the majority leader of the
Senate, one of whom shall be a member of the
General Assembly, one of whom shall represent
business and industry and one of whom shall be a
concerned citizen having substantial interest in
the future and experience in futurism or community
service;
(4) Three by the majority leader of the House
of Representatives, one of whom shall be a member
of the General Assembly, one of whom shall
represent business and industry and one of whom
shall represent academics and the arts;
(5) Two by the minority leader of the Senate,
one of whom shall be a member of the General
Assembly and one of whom shall represent academics
and the arts;
(6) Two by the minority leader of the House of
Representatives, one of whom shall be a member of
the General Assembly and one of whom shall be a
concerned citizen having substantial interest in
the future and experience in futurism or community
service; and
(7) Four members appointed by the Governor,
two of whom shall represent the executive branch
of state government, one of whom shall represent
business and industry and one of whom shall be a
concerned citizen having substantial interest in
the future and experience in futurism or community
service.
(c) The commission shall elect a chairperson
and a vice-chairperson from among its members. Any
person absent from (1) three consecutive meetings
of the commission, or (2) fifty per cent of such
meetings during any calendar year shall be deemed
to have resigned from the commission, effective
immediately. Vacancies on the commission shall be
filled by the appointing authority. Members of the
commission shall serve without compensation but
shall, within the limits of available funds, be
reimbursed for expenses necessarily incurred in
the performance of their duties. The commission
shall meet as often as deemed necessary by the
chairperson or a majority of the commission.
(d) The commission shall study the long-term
requirements for, and potential of, Connecticut's
growth and prosperity in order to make the state a
world leader in both quality of life and
establishing the tools, technology and trends that
will make the world a better place to live.
(e) (1) The commission shall prepare a
long-range plan on twenty-first century options
and priorities for the state. The plan shall focus
primarily on the following major areas:
(A) Transportation and infrastructure;
(B) Energy;
(C) Education;
(D) Communication;
(E) Business, industry and technology;
(F) Recreation, culture and the arts; and
(G) Housing, health care and urban affairs.
(2) The plan shall include options and
priorities in each such area during each of the
following timeframes:
(A) Nearest future: 2005-2020;
(B) Mid-future: 2020-2040; and
(C) Far future: Beyond 2040.
(3) Not later than February 1, 2000, the
commission shall submit such plan to the General
Assembly, in accordance with the provisions of
section 11-4a of the general statutes.
(f) The commission shall also educate
government and the public as to the concept and
methodologies of longer-term thinking and
planning.
(g) The commission may use such funds as may
be available from federal, state or other sources
and may enter into contracts to carry out the
purposes of this section.
(h) The commission shall terminate on the date
that it submits such report or February 1, 2000,
whichever is earlier.
Sec. 13. This act shall take effect from its
passage, except that section 11 shall take effect
July 1, 1998.
Approved June 8, 1998