House Bill No. 6676
Public Act No. 01-96
AN ACT IMPLEMENTING THE LEGISLATIVE COMMISSIONERS' RECOMMENDATIONS FOR TECHNICAL REVISIONS TO THE COMMERCE STATUTES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 32-1h of the general statutes is repealed and the following is substituted in lieu thereof:
Not later than November first, annually, the Commissioner of Economic and Community Development shall submit a report to the Auditors of Public Accounts and the joint standing committees of the General Assembly having cognizance of matters relating to the Department of Economic and Community Development, appropriations and capital bonding, which shall include the following information with respect to new and outstanding financial assistance provided by the commissioner for each financial assistance program [he] the commissioner administers: (1) A list of the names, addresses and locations of all recipients of such assistance, (2) for each such recipient: (A) The business activities, (B) the standard industrial classification manual codes, (C) the gross revenues during the recipient's most recent fiscal year, (D) the number of employees at the time of application, (E) whether the recipient is a minority or [women-owned] woman-owned business, (F) a summary of the terms and conditions for the assistance, including the type and amount of state financial assistance, job creation or retention requirements, and anticipated wage rates, and (G) the amount of investments from private and other nonstate sources that have been leveraged by the assistance, (3) the economic benefit criteria used in determining which applications have been approved or disapproved, and (4) for each recipient of assistance on or after July 1, 1991, a comparison between the number of jobs to be created, the number of jobs to be retained and the average wage rates for each such category of jobs, as projected in the recipient's application, versus the actual number of jobs created, the actual number of jobs retained and the average wage rates for each such category. The report shall also indicate the actual number of full-time jobs and the actual number of part-time jobs in each such category and the benefit levels for each such subcategory. The report shall include a summary of the activities of the department, including all activities to assist small businesses and minority business enterprises, as defined in section 4a-60g, recommendations for legislation to promote the purposes of the department, a list of all federal programs of financial assistance for defense conversion projects and other projects consistent with a defense conversion strategy and a list of all applications for such financial assistance filed by the Secretary of the Office of Policy and Management in consultation with the Commissioner of Economic and Community Development, during the preceding state fiscal year, including the status of each such application.
Sec. 2. Subsection (a) of section 32-16 of the general statutes is repealed and the following is substituted in lieu thereof:
(a) The authority may (1) upon application of the proposed mortgagee, insure and make advance commitments to insure all or a portion of mortgage payments required by a mortgage on any (A) economic development project, exclusive of machinery, equipment, furniture, fixtures and other personal property, or (B) any information technology project and (2) upon application of a borrower, insure and make advance commitments to insure, (i) all or a portion of loan payments required for an information technology project, [or] (ii) a loan for an economic development project used for manufacturing, industrial, research, retail, small business, product development, product warehousing, distribution or other purposes which will create or retain jobs, maintain or diversify industry, including new or emerging technologies, or maintain or increase the tax base, or (iii) a secured or unsecured working capital loan necessary for the start-up or continuation of such a project, upon such terms and conditions as the authority may prescribe, provided the aggregate amount of contracts of insurance or advance commitments issued under this section, together with contracts of insurance or advance commitments insured under subsection (b) or (d) of this section, outstanding at any one time shall not exceed four times the sum of the amounts available in the Mortgage and Loan Insurance Fund plus the amount of any unpaid grants authorized to be made by the Department of Economic and Community Development to the authority for deposit in such fund which remain available for purposes of the fund pursuant to the bond authorization in section 32-22, provided the amount of any such contract of insurance or advance commitment shall be measured by the portion of unpaid principal which is insured by the authority and shall exclude for purposes of such limitation the amount of any contract of insurance or advance commitment to the extent that the liability of the authority with respect thereto has been reinsured by, or participated in by, an eligible financial institution with a long-term credit rating equal to or higher than that of the state. The aggregate amount of principal obligations of all mortgages and loans so insured shall not constitute indebtedness of the state of Connecticut for purposes of computing the debt limit under section 3-21, provided bonds authorized to be issued pursuant to section 32-22 shall constitute indebtedness of the state of Connecticut for such purposes, whether or not obligations of the state of Connecticut are issued and outstanding in anticipation of the sale of such bonds. Any contract of insurance executed by the authority under this section shall be conclusive evidence of eligibility for such mortgage or loan insurance, and the validity of any contract of insurance so executed or of an advance commitment to insure shall be incontestable in the hands of an approved mortgagee or lender from the date of the execution of such contract of insurance or advance commitment, except for (A) fraud or misrepresentation on the part of such approved mortgagee or lender or (B) noncompliance with the terms of the contract of insurance or advance commitment and authority written procedures in force at the time of issuance of the contract or the advance commitment. To be eligible for insurance under the provisions of this chapter, a mortgage or agreement for the extension of credit or making of a loan by the authority or other lender shall: (i) Be one which is made to and held by the authority or an eligible financial institution approved by the authority as responsible and able to service the mortgage or loan properly; (ii) in the case of a mortgage under subdivision (1) of subsection (a) of this section, involve principal not to exceed twenty-five million dollars for any one economic development project exclusive of machinery, equipment, furniture, fixtures and other personal property, and not to exceed ninety per cent of the cost of such project, except that the authority may insure a portion of a mortgage or agreement for the extension of credit or making of a loan by the authority that otherwise satisfies the requirements of this section and the requirements prescribed by the authority by written procedure if such mortgage or agreement involves principal in excess of twenty-five million dollars, provided any approved contract of insurance shall not exceed twenty-five million dollars and in the case of a loan under subdivision (2) of subsection (a) of this section, involve principal not to exceed ten million dollars; (iii) have a maturity satisfactory to the authority but in no case later than twenty-five years from the date of the issuance of the insurance; (iv) contain amortization provisions satisfactory to the authority requiring payments by the borrower or mortgagor, not in excess of [his] the borrower's or mortgagor's reasonable ability to pay as determined by the authority; (v) be in such form and contain such terms and provisions with respect to property insurance, repairs, alterations, payment of taxes and assessments, default reserves, delinquency charges, default remedies, anticipation of maturity, additional and secondary liens and other matters as the authority may prescribe.
Sec. 3. Subsection (gg) of section 32-23d of the general statutes is repealed and the following is substituted in lieu thereof:
(gg) "Smart building" means a building that houses, for use by its tenants, an information or communications infrastructure capable of transmitting digital video, voice [,] and data content over a high-speed wired, wireless [,] or other communications intranet and provides the capability of delivering and receiving high-speed digital video, voice and data transmissions over the Internet.
Sec. 4. Section 32-23yy of the general statutes is repealed and the following is substituted in lieu thereof:
(a) As used in this section, the following terms shall have the following meanings unless the context indicates another meaning and intent:
(1) "Authority" means the Connecticut Development Authority, created under section 32-11a, and any of its subsidiaries or affiliates;
(2) "Executive Director" means the executive director of the Connecticut Development Authority;
(3) "Financial assistance" means any and all forms of grants, loans, extensions of credit, guarantees, equity investments [, grants] or other forms of financing or refinancing to persons for the purchase, acquisition, leasing, construction, expansion, continued operation, reconstruction, financing, refinancing or placing in operation of an information technology project, including, but not limited to, fixed assets, working capital, equity participations and acquisitions, employee buyouts, refinancing, lease guarantees, financial restructuring and other purposes which the authority determines further the purposes of this section. For purposes of this section financial assistance shall not be considered financial assistance under the provisions of section 32-462;
(4) "Information technology project" means an information technology project, as defined in section 32-23d;
(5) "Person" means a person, as defined in subsection (s) of section 32-23d;
(6) "Return on investment" means any and all forms of principal or interest payments, guarantee fees, equity participations, options, warrants, debentures and any or all other forms of remuneration to the authority in return for any financial assistance provided or offered.
(b) There is created within the authority the High-Technology Infrastructure Fund. The state, acting through the authority, may provide financial assistance from such fund that enables the development of information technology projects. Such financial assistance may be provided directly or in participation with any other financial institutions, funds or other persons or other sources of financing, public or private and the authority may enter into any agreements or contracts it deems necessary or convenient in connection therewith. Payments of principal, interest or other forms of return on investment received by the authority shall be deposited in or held on behalf of said fund.
(c) The authority may provide financial assistance in such amounts, in such form and under such terms and conditions as the authority shall prescribe, in written procedures adopted in accordance with section 1-121. Such procedures shall provide, in the case of financial assistance in a form other than a grant, for returns on investment as the authority deems appropriate to reflect the nature of the risk, provided a single project shall not receive an amount in excess of fifteen million dollars and shall not be for a term longer than thirty years.
(d) The authority may take all reasonable steps and exercise all reasonable remedies necessary or desirable to protect the obligations or interests of the authority, including, but not limited to, the purchase or redemption [of] in foreclosure proceedings, bankruptcy proceedings or in other judicial proceedings, of any property on which it holds a mortgage or other lien or in which it has an interest, and for such purposes and any other purposes provided in this section payment may be made from the High-Technology Infrastructure Fund upon certification by the executive director that payment is authorized under the provisions of this section, or other sections of the general statutes, applicable procedures or other programs of the authority.
(e) Applicants for financial assistance shall pay the costs the authority deems reasonable and necessary incurred in processing applications made under this section, including application and commitment fees, closing costs or other costs. In carrying out the provisions of this section, any administrative expenses incurred by the authority, to the extent not paid by the borrower or from moneys appropriated to the authority for such purposes, may be paid from the High-Technology Infrastructure Fund.
Sec. 5. Subsection (t) of section 32-222 of the general statutes is repealed and the following is substituted in lieu thereof:
(t) "Site and infrastructure improvements" [mean] means 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 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, including remediation of contaminated sites, 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.
Approved June 6, 2001