Commerce Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-5518

Title:

AN ACT CONCERNING THE LIABILITIES OF APPLICANTS FOR STATE FINANCIAL ASSISTANCE.

Vote Date:

3/18/2014

Vote Action:

Joint Favorable

PH Date:

3/11/2014

File No.:

SPONSORS OF BILL:

Commerce Committee

REASONS FOR BILL:

This bill requires DECD and Connecticut Innovations to determine if an applicant is currently being sued in civil court for debt, or owes taxes to the state or a municipality. Under this bill, DECD and Connecticut Innovations should consider such factors in the decision whether to award financial assistance.

RESPONSE FROM ADMINISTRATION/AGENCY:

Catherine H. Smith, Commissioner, Department of Economic and Community Development (DECD): Commissioner Smith provided testimony that the initiative is unnecessary, as the DECD “already has a thorough underwriting process that considers these factors and many more”. She states that the process used by DECD is constantly being reviewed and improved in order to remain “outstanding stewards of taxpayer dollars”.

NATURE AND SOURCES OF SUPPORT:

Claire Leonardi, CEO, Connecticut Innovations (CI): Ms. Leonardi provided written testimony commenting that, in relation to proposed financing, Connecticut Innovations (CI) has always scrutinized any outstanding taxes. She states that it has been and continues to be a requirement to “disclose any and all outstanding tax liabilities before granting financing” during the application process.

NATURE AND SOURCES OF OPPOSITION:

Claire Leonardi, CEO, Connecticut Innovations (CI): Ms. Leonardi provided written testimony commenting that, in relation to proposed financing, Connecticut Innovations (CI) has always scrutinized any outstanding taxes. She states that it has been and continues to be a requirement to “disclose any and all outstanding tax liabilities before granting financing” during the application process.

Reported by: Mark Vanderhoof, Assistant Clerk

Date: 3-19-2014