Commerce Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-5573

Title:

AN ACT CONCERNING AN EXTENSION OF THE FIRST FIVE PLUS PROGRAM.

Vote Date:

3/17/2016

Vote Action:

Joint Favorable Substitute

PH Date:

3/15/2016

File No.:

SPONSORS OF BILL:

Commerce Committee

REASONS FOR BILL:

The bill:

● Extends the First Five Plus Program's sunset date by 3 years, from June 30, 2016 to June 30, 2019 and makes conforming technical changes

● Increases number of First Five Plus Projects from 15 to 20

● Expands range of projects for which DECD may give preference to include:

Projects located in the state's 25 distressed municipalities

Projects involving a business in an industry sector that the state's strategic economic development plan targets for assistance

Under current law, DECD can give preference to:

n Manufacturers from other states or countries relocating to Connecticut

n Businesses relocating corporate headquarters to Connecticut

n Redevelopment projects that create jobs and invest capital sooner than that program's statutory timeframe

n Projects relocating overseas jobs to Connecticut

● On or after July 1, 2016, prohibits DECD from providing First Five assistance until specified events occur:

Commissioner must submit a report to the Commerce and Finance, Revenue and Bonding Committees that:

n Identifies the First Five Plus's portfolio net rate of return to the state, taking into account all loans that have been forgiven and tax credits granted and

n Recommends whether the program should be continued, based on above analysis

Commerce and Finance Committees vote, in concurrence, to approve the recommendation

EFFECTIVE DATE: JULY 1, 2016

RESPONSE FROM ADMINISTRATION/AGENCY:

Catherine Smith, Commissioner, DECD

The bill will improve the agency's ability to effectively and efficiently negotiate business assistance deals, strengthen our efforts to attract and retain businesses, and create good paying jobs here in Connecticut.

NATURE AND SOURCES OF SUPPORT:

None

NATURE AND SOURCES OF OPPOSITION:

None

Reported by: Giovanni Sap

Date: 3/18/16