Connecticut Seal

General Assembly

 

Committee Bill No. 1

February Session, 2016

 

LCO No. 3287

 

*03287SB00001FIN*

Referred to Committee on FINANCE, REVENUE AND BONDING

 

Introduced by:

 

(FIN)

 

AN ACT CONCERNING INNOVATION, ENTREPRENEURSHIP AND CONNECTICUT'S ECONOMIC FUTURE.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective from passage) (a) There is hereby established and created a body politic and corporate, constituting a public instrumentality and political subdivision of the state established and created for the performance of an essential public and governmental function, to be known as ImpaCT. ImpaCT shall not be construed to be a department, institution or agency of the state.

(b) (1) The powers of ImpaCT shall be vested in and exercised by a board of directors, which shall consist of seven members, a majority of whom are serial entrepreneurs. By education or experience, such members shall be qualified in start-up development and investment, innovation district development, urban planning, and technology commercialization in higher education: (1) One appointed by the Governor for an initial term of four years; (2) one appointed by the speaker of the House of Representatives for an initial term of two years; (3) one appointed by the president pro tempore of the Senate for an initial term of two years; (4) one appointed by the minority leader of the House of Representatives for an initial term of two years; (5) one appointed by the minority leader of the Senate for an initial term of two years; and (6) two jointly appointed by the chairpersons of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding for an initial term of four years. Thereafter, all members shall be appointed by the original appointing authority for four-year terms. Any member of the board shall be eligible for reappointment. Any vacancy occurring other than by expiration of term shall be filled in the same manner as the original appointment for the balance of the unexpired term. The appointing authority for any member may remove such member for misfeasance, malfeasance or wilful neglect of duty.

(c) The board of directors shall designate the chairperson of the board from among its voting members. All initial appointments shall be made not later than July 1, 2016. Such chairperson shall schedule the first meeting of the board, which shall be held not later than July 15, 2016.

(d) Members of the board of directors may not designate a representative to perform in their absence their respective duties under this section and section 2 of this act.

(e) The chairperson shall, with the approval of the members of the board of directors, appoint an executive director of ImpaCT who shall be an employee of ImpaCT and paid a salary prescribed by the members. The executive director shall supervise the administrative affairs and technical activities of ImpaCT in accordance with the directives of the board.

(f) Each member of the board of directors shall be entitled to reimbursement for such member's actual and necessary expenses incurred during the performance of such member's official duties.

(g) Members may engage in private employment, or in a profession or business, subject to any applicable laws, rules and regulations of the state regarding official ethics or conflict of interest.

(h) Five members of the board of directors of ImpaCT shall constitute a quorum for the transaction of any business or the exercise of any power of ImpaCT. For the transaction of any business or the exercise of any power of the authority, and except as otherwise provided in this section and section 2 of this act, ImpaCT may act by a majority of the members present at any meeting at which a quorum is in attendance.

(i) ImpaCT shall continue as long as it has bonds or other obligations outstanding and until its existence is terminated by law, provided no such termination shall affect any outstanding contractual obligation of ImpaCT and the state shall succeed to the obligations of ImpaCT under any contract. Upon the termination of the existence of ImpaCT, all its rights and properties shall pass to and be vested in the state of Connecticut.

(j) It shall not constitute a conflict of interest for a trustee, director, partner or officer of any person, firm or corporation, or any individual having a financial interest in a person, firm or corporation, to serve as a member of the board of directors of ImpaCT, provided such trustee, director, partner, officer or individual shall comply with all applicable provisions of chapter 10 of the general statutes.

Sec. 2. (NEW) (Effective from passage) (a) The purposes of the ImpaCT shall be to foster innovation, start-up businesses and entrepreneur community building; to serve as a catalyst to protect and enhance the innovation ecosystem; to connect start-up entrepreneurs with one another and state, federal and private resources; to facilitate the establishment of innovation districts; to facilitate mentorship for start-up entrepreneurs; and to provide technical training and resources to start-up businesses and entrepreneurs.

(b) For the purposes enumerated in subsection (a) of this section, ImpaCT is authorized and empowered to:

(1) Have perpetual succession as a body politic and corporate and to adopt bylaws for the regulation of its affairs and the conduct of its business;

(2) Adopt an official seal and alter the same at pleasure;

(3) Maintain an office at such place or places as it may designate;

(4) Sue and be sued in its own name, and plead and be impleaded;

(5) (A) Employ such assistants, agents and other employees as may be necessary or desirable who shall not be employees, as defined in subsection (b) of section 5-270 of the general statutes; (B) 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 of the general statutes, and ImpaCT shall not be an employer as defined in subsection (a) of section 5-270 of the general statutes; and (C) engage consultants, attorneys and appraisers as may be necessary or desirable to carry out its purposes in accordance with this section;

(6) Issue bonds, bond anticipation notes and other obligations of ImpaCT for any of its corporate purposes, and to fund or refund the same, all as provided in this section;

(7) Receive and accept aid or contributions from any source of money, property, labor or other things of value, to be held, used and applied to carry out the purposes of this section subject to such conditions upon which such grants and contributions may be made, including, but not limited to, gifts or grants from any department, agency or instrumentality of the United States or this state for any purpose consistent with this section;

(8) Borrow money for the purpose of obtaining working capital;

(9) 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 section, including contracts and agreements for such professional services as the authority deems necessary, including, but not limited to, financial consultants, bond counsel, underwriters and technical specialists;

(10) 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;

(11) 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 carrying out the purposes of this section, provided such transactions shall not be subject to approval, review or regulation by any state agency pursuant to title 4b of the general statutes or any other provision of the general statutes;

(12) Procure insurance against any liability or loss in connection with its property and other assets, in such amounts and from such insurers as it deems desirable and to procure insurance for employees;

(13) Account for and audit funds of ImpaCT and funds of any recipients of funds from ImpaCT;

(14) Hold patents, copyrights, trademarks, marketing rights, licenses, or any other evidences of protection or exclusivity as to any products as defined in this section, issued under the laws of the United States or any state or any nation;

(15) Establish advisory committees to assist in accomplishing its duties under this section, which may include one or more members of the board of directors and persons other than members;

(16) Serve as a resource to start-up entrepreneurs in this state by (A) providing counseling and technical assistance in the areas of entrepreneurial business planning and management, financing and marketing for start-up businesses; and (B) conducting business workshops, seminars and conferences with local partners, including, but not limited to, public and private institutions of higher education, municipal governments, regional economic development districts, private industry, chambers of commerce, small business development organizations and economic development organizations;

(17) Facilitate partnerships between innovative start-up businesses, research institutions and venture capitalists or financial institutions;

(18) Increase the quantity and availability of capital for entrepreneurs and start-up companies, including, but not limited to, angel investors and venture capitalists;

(19) Promote technology-based development in the state;

(20) Encourage and promote the establishment of and, within available resources, provide financial aid to advanced technology centers;

(21) Maintain an inventory of data and information concerning state and federal programs that are related to the purposes of this section and to serve as a clearinghouse and referral service for such data and information;

(22) Promote and encourage and, within available resources, to provide financial aid for the establishment, maintenance and operation of incubator facilities;

(23) 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;

(24) Promote science, engineering, mathematics and other disciplines that are essential to the development and application of technology;

(25) Coordinate its efforts with existing business outreach centers, as described in section 32-9qq of the general statutes;

(26) Provide financial aid to persons developing smart buildings, as defined in section 32-23d of the general statutes, incubator facilities or other information technology intensive office and laboratory space;

(27) Coordinate the development and implementation of strategies regarding technology-based talent and innovation among state and quasi-public agencies, including the creation and administration of the Connecticut Small Business Innovation Research Office to act as a centralized clearinghouse and provide technical assistance to applicants in developing small business innovation research programs in conformity with the federal program established pursuant to the Small Business Research and Development Enhancement Act of 1992, P.L. 102-564, as amended from time to time, and other proposals;

(28) Encourage the retention of younger generation start-up entrepreneurs in the state;

(29) Promote entrepreneurship among students of institutions of higher education;

(30) Make planning grants to entities seeking to apply for innovation district status pursuant to section 11 of this act, provided such entity demonstrates that its proposed innovation district meets the purposes set forth in section 10 of this act; and

(31) Do all acts and things necessary or convenient to carry out the purposes of this section and the powers expressly granted by this section.

(c) The board shall:

(1) Develop a plan to facilitate stronger relationships between Connecticut businesses and institutions of higher education in order to support entrepreneurial research and entrepreneurial talent development;

(2) Establish an investment fund that supports student-owned, start-up businesses;

(3) Establish a state-wide technology transfer office to (A) support the commercialization of ideas from students and faculty of institutions of higher education, (B) identify the most efficient and effective location for such office, (C) recommend the annual funding level for such office; (D) promote and support entrepreneurship and innovation among public institutions of higher education, private institutions of higher education and Connecticut businesses; and (E) provide advice and assistance to public and private research institutions on strategies for technology transfer, including, but not limited to, (i) assessing the viability and value of developing technologies; (ii) defining and exploiting potential markets for such technologies; (iii) commercialization strategies; (iv) intellectual property issues, including, but not limited to, licensing strategies; and (v) business development;

(4) Create an informational Internet web site known as ImpaCT that (A) lists services, programs or events offered to entrepreneurs; (B) advertises Connecticut based start-up businesses seeking funding, including links to the Internet web sites where such funding opportunities are available; (C) serves as an online community for entrepreneurs; (D) lists current research projects being conducted by professors at institutions of higher education, provided such projects are relevant to entrepreneurship and innovation; (E) provides information concerning innovation and entrepreneurial programming available at institutions of higher education, including, but not limited to, engineering, computer science and bioscience; and (F) connects businesses seeking to buy Connecticut made products for their business inputs;

(5) Publicize such informational page and any workshops, seminars and conferences facilitated by such office;

(6) Advise the Governor, the General Assembly, the Commissioner of Economic and Community Development, the president of The University of Connecticut and the president of the Board of Regents for Higher Education on matters relating to science, engineering and technology that may have an impact on state policies, programs, employers and residents, and on job creation and retention;

(7) Designate innovation districts pursuant to the provisions of sections 9 to 12, inclusive, of this act;

(8) Annually develop, update and implement a strategic state-wide innovation and entrepreneurship marketing plan for the promotion of Connecticut as an innovation and entrepreneurship hub. The executive director shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to commerce and finance, revenue and bonding, on or before January 1, 2017, concerning the content of such plan;

(9) Develop a gap year program model for institutions of higher education where students work for a cybersecurity, data science, software development, or other technology based start-up business for one year prior to graduation and are provided with matching funds from such start-up business to support their cost of living; and

(10) Develop a student loan deferral or forgiveness program for students who start businesses in the state immediately after graduation.

Sec. 3. (NEW) (Effective from passage) The members of the board of directors of ImpaCT shall adopt written procedures, in accordance with the provisions of section 1-121 of the general statutes, for: (1) Adopting an annual budget and plan of operations, including a requirement of board approval before the budget or plan may take effect; (2) hiring, dismissing, promoting and compensating employees of ImpaCT, including an affirmative action policy and a requirement of board approval before a position may be created or a vacancy filled; (3) acquiring real and personal property and personal services, including a requirement of board approval for any nonbudgeted expenditure in excess of an amount to be determined by the board; (4) contracting for financial, legal, bond underwriting and other professional services, including a requirement that ImpaCT solicit proposals at least once every three years for each such service which it uses; (5) issuing and retiring bonds, bond anticipation notes and other obligations of ImpaCT; (6) awarding loans, grants and other financial assistance, including eligibility criteria, the application process and the role played by ImpaCT's staff and board of directors; and (7) the use of surplus funds to the extent authorized under section 2 or 3 of this act or other provisions of the general statutes.

Sec. 4. (NEW) (Effective from passage) (a) ImpaCT may establish or designate one or more subsidiaries for such purposes as prescribed by resolution of ImpaCT's board of directors, which purposes shall be consistent with the purposes of ImpaCT. Each subsidiary shall be deemed a quasi-public agency for purposes of chapter 12 of the general statutes. ImpaCT may transfer to any such subsidiary any moneys and real or personal property. Each such subsidiary shall have all the privileges, immunities, tax exemptions and other exemptions of ImpaCT. A resolution of ImpaCT shall prescribe the purposes for which each subsidiary is formed.

(b) Each such subsidiary may sue and shall be subject to suit, provided the liability of each such subsidiary shall be limited solely to the assets, revenues and resources of such subsidiary and without recourse to the general funds, revenues, resources or any other assets of ImpaCT or any other subsidiary. Each such subsidiary shall have the power to do all acts and things necessary or convenient to carry out the purposes for which such subsidiary is established, including, but not limited to: (1) Solicit, receive and accept aid, grants or contributions from any source of money, property or labor or other things of value, subject to the conditions upon which such grants and contributions may be made, including, but not limited to, gifts, grants or loans from any department, agency or quasi-public agency of the United States or the state, or from any organization recognized as a nonprofit organization under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time; (2) enter into agreements with persons upon such terms and conditions as are consistent with the purposes of such subsidiary; and (3) acquire, take title, lease, purchase, own, manage, hold and dispose of real and personal property and lease, convey or deal in or enter into agreements with respect to such property.

(c) Each such subsidiary shall act through its board of directors, not less than fifty per cent of whom shall be members of the board of directors of ImpaCT or their designees.

(d) The provisions of this section and section 1-125 of the general statutes, as amended by this act, shall apply to any officer, director, designee or employee appointed as a member, director or officer of any such subsidiary. Neither any such persons so appointed nor the directors, officers or employees of ImpaCT shall be personally liable for the debts, obligations or liabilities of any such subsidiary as provided in section 1-125 of the general statutes, as amended by this act. Each subsidiary shall, and ImpaCT may, provide for the indemnification to protect, save harmless and indemnify such officer, director, designee or employee as provided by section 1-125 of the general statutes, as amended by this act.

(e) ImpaCT or any such subsidiary may take such actions as are necessary to comply with the provisions of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, to qualify and maintain any such subsidiary as a corporation exempt from taxation under said Internal Revenue Code.

(f) ImpaCT may make loans or grants to, and may guarantee specified obligations of, any such subsidiary, following standard authority procedures, from ImpaCT's assets and the proceeds of its bonds, notes and other obligations, provided the source and security, if any, for the repayment of any such loans or guarantees is derived from the assets, revenues and resources of such subsidiary.

Sec. 5. Subdivision (12) of section 1-79 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(12) "Quasi-public agency" means Connecticut Innovations, Incorporated, the Connecticut Health and Education Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the State Housing Authority, the Materials Innovation and Recycling Authority, the Capital Region Development Authority, the Connecticut Lottery Corporation, the Connecticut Airport Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, [and] the State Education Resource Center and ImpaCT.

Sec. 6. Section 1-120 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

As used in [sections 1-120] this section and sections 1-121 to 1-123, inclusive:

(1) "Quasi-public agency" means Connecticut Innovations, Incorporated, the Connecticut Health and Educational Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, the Capital Region Development Authority, the Connecticut Lottery Corporation, the Connecticut Airport Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, [and] the State Education Resource Center and ImpaCT.

(2) "Procedure" means each statement, by a quasi-public agency, of general applicability, without regard to its designation, that implements, interprets or prescribes law or policy, or describes the organization or procedure of any such agency. The term includes the amendment or repeal of a prior regulation, but does not include, unless otherwise provided by any provision of the general statutes, (A) statements concerning only the internal management of any agency and not affecting procedures available to the public, and (B) intra-agency memoranda.

(3) "Proposed procedure" means a proposal by a quasi-public agency under the provisions of section 1-121 for a new procedure or for a change in, addition to or repeal of an existing procedure.

Sec. 7. Section 1-124 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Connecticut Innovations, Incorporated, the Connecticut Health and Educational Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, the Connecticut Airport Authority, the Capital Region Development Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority and the State Education Resource Center shall not borrow any money or issue any bonds or notes which are guaranteed by the state of Connecticut or for which there is a capital reserve fund of any kind which is in any way contributed to or guaranteed by the state of Connecticut until and unless such borrowing or issuance is approved by the State Treasurer or the Deputy State Treasurer appointed pursuant to section 3-12. The approval of the State Treasurer or said deputy shall be based on documentation provided by the authority that it has sufficient revenues to (1) pay the principal of and interest on the bonds and notes issued, (2) establish, increase and maintain any reserves deemed by the authority to be advisable to secure the payment of the principal of and interest on such bonds and notes, (3) pay the cost of maintaining, servicing and properly insuring the purpose for which the proceeds of the bonds and notes have been issued, if applicable, and (4) pay such other costs as may be required.

(b) To the extent Connecticut Innovations, Incorporated, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, the Connecticut Health and Educational Facilities Authority, the Connecticut Airport Authority, the Capital Region Development Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, [or] the State Education Resource Center or ImpaCT is permitted by statute and determines to exercise any power to moderate interest rate fluctuations or enter into any investment or program of investment or contract respecting interest rates, currency, cash flow or other similar agreement, including, but not limited to, interest rate or currency swap agreements, the effect of which is to subject a capital reserve fund which is in any way contributed to or guaranteed by the state of Connecticut, to potential liability, such determination shall not be effective until and unless the State Treasurer or his or her deputy appointed pursuant to section 3-12 has approved such agreement or agreements. The approval of the State Treasurer or his or her deputy shall be based on documentation provided by the authority that it has sufficient revenues to meet the financial obligations associated with the agreement or agreements.

Sec. 8. Section 1-125 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The directors, officers and employees of Connecticut Innovations, Incorporated, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Materials Innovation and Recycling Authority, including ad hoc members of the Materials Innovation and Recycling Authority, the Connecticut Health and Educational Facilities Authority, the Capital Region Development Authority, the Connecticut Airport Authority, the Connecticut Lottery Corporation, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, [and] the State Education Resource Center and ImpaCT and any person executing the bonds or notes of the agency shall not be liable personally on such bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof, nor shall any director or employee of the agency, including ad hoc members of the Materials Innovation and Recycling Authority, be personally liable for damage or injury, not wanton, reckless, wilful or malicious, caused in the performance of his or her duties and within the scope of his or her employment or appointment as such director, officer or employee, including ad hoc members of the Materials Innovation and Recycling Authority. The agency shall protect, save harmless and indemnify its directors, officers or employees, including ad hoc members of the Materials Innovation and Recycling Authority, from financial loss and expense, including legal fees and costs, if any, arising out of any claim, demand, suit or judgment by reason of alleged negligence or alleged deprivation of any person's civil rights or any other act or omission resulting in damage or injury, if the director, officer or employee, including ad hoc members of the Materials Innovation and Recycling Authority, is found to have been acting in the discharge of his or her duties or within the scope of his or her employment and such act or omission is found not to have been wanton, reckless, wilful or malicious.

Sec. 9. (NEW) (Effective from passage) For the purposes of this section and sections 10 to 12, inclusive, of this act, the following terms shall have the following meanings unless the context otherwise requires:

(1) "Anchor institution" means an entity having a significant and stable presence in the community, including, but not limited to, an institution of higher education, hospital, major corporation, research institution or existing business incubator or business accelerator;

(2) "ImpaCT board" or "board" means the board of directors of ImpaCT established pursuant to section 1 of this act;

(3) "Designated innovation district" means an area designated as an innovation district pursuant to section 10 of this act;

(4) "District plan" means the plan submitted to the ImpaCT board pursuant to subparagraph (F) of subdivision (1) of subsection (a) of section 11 of this act;

(5) "Entity" means a corporation, association, partnership, limited liability company, benefit corporation, nonprofit organization, municipality, institution of higher education or any other similar organization;

(6) "Executive director" means the executive director of ImpaCT;

(7) "Innovation entity" means an entity having submitted an application for innovation district status for a proposed innovation district and that is designated as an innovation district by the executive director pursuant to the provisions of subsection (a) of section 10 of this act;

(8) "Municipality" means any town, city, consolidated town and city or consolidated town and borough;

(9) "New Haven Line" means the rail passenger service operated between New Haven and intermediate points and Grand Central Station, including the Danbury, Waterbury and New Canaan branch lines;

(10) "Public transit" means the New Haven line, Shore Line East, the New Haven Hartford Springfield rail line and the New Britain to Hartford busway and any planned expansion of such busway; and

(11) "Shore Line East" means the rail service operating between New Haven and New London.

Sec. 10. (NEW) (Effective from passage) (a) There is established an innovation district program within ImpaCT. The purpose of such program is to (1) foster innovation and entrepreneurship by facilitating the establishment of innovation districts in compact geographic areas having entrepreneurial and innovation potential where (A) existing anchor institutions, institutions, companies and recreational spaces are in close proximity with start-up businesses, (B) public transit is accessible, (C) a significant portion of the underlying zoning allows for mixed-use development, including, but not limited to, housing, office and retail, and (D) foot traffic is facilitated; (2) identify, designate and fund the initial costs associated with development of an innovation district; (3) encourage collaboration among institutions of higher education, medical institutions and hospitals, existing companies, start-up businesses, researchers and investors; (4) encourage the leveraging of private investment in the designated innovation districts; (5) connect entrepreneurs who are facing similar opportunities and challenges, with one another and with private and public resources; and (6) facilitating the establishment of innovation places in municipalities having a connection to an innovation district by transit, labor market patterns or some other relationship, provided such places have entrepreneurial and innovation potential and are in a compact geographic area of high density land use within a walkable commercial and residential center.

(b) The executive director shall designate as an innovation district any proposed innovation district recommended for innovation district status by the ImpaCT board pursuant to the provisions of section 12 of this act, unless the executive director determines that good cause exists, and is supported by substantial evidence, to reject such recommendation on the grounds that the proposed innovation district fails to comply with the purposes set forth in subsection (a) of this section. The executive director shall award grants to an innovation entity in an amount equal to the amount recommended by the ImpaCT board. Prior to awarding any such grant, the executive director shall (1) enter into an agreement with any such innovation entity concerning (A) allowable grant expenses, provided such expenses shall be limited to those recommended by the ImpaCT board, and (B) submission of an annual financial audit of grant expenditures to the executive director until all grant moneys have been expended by the innovation entity, provided any such audit shall be prepared by an independent auditor, and (2) confirm that a significant portion of the underlying zoning of the proposed district allows for mixed-use development, including, but not limited to, housing, office and retail. If the executive director finds that any such grant is being used for purposes which are not in conformity with the expenses allowed pursuant to subdivision (1) of this subsection, the executive director may require repayment of the grant.

(c) The executive director shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to commerce, finance, revenue and bonding, on or before July 1, 2017, and on or before July first annually thereafter until July 1, 2020, with regard to the grants distributed pursuant to this section and concerning the operation and effectiveness of the innovation district program.

Sec. 11. (NEW) (Effective from passage) (a) Any entity may submit an application for innovation district status to the ImpaCT board. The application shall be submitted on or before September 1, 2016, on a form prescribed by the board. The application shall contain sufficient information to establish that the proposed district is suitable for the purposes set forth in section 10 of this act.

(1) Such application shall include: (A) Information concerning the proposed geographical boundaries of the proposed innovation district, including, but not limited to, a map indicating the boundaries of the proposed innovation district; (B) information concerning at least two anchor institutions located within the geographical boundaries of the proposed innovation district and how such institutions have agreed to participate in the development of and activities within such district; (C) a summary of existing and proposed transportation-related infrastructure within and around the proposed innovation district; (D) a summary of existing and proposed businesses, recreational facilities, public parks and any other public or private gathering spaces located within the proposed innovation district; (E) information concerning walkability of the proposed innovation district; (F) a district plan for the development of the proposed innovation district, including a plan for connecting the proposed district to public transit via rail or bus, a plan for leveraging private investment and a budget and timeline for use of any moneys granted by the executive director. Such budget shall indicate priority for the expenditure of funds in the event that moneys granted are insufficient to cover the costs of the entire proposed budget; (G) a list of municipal and state legislative action that may be required for the execution of such district plan; (H) a letter of support from the chief elected official of the municipality where the innovation district is proposed that shall include a statement of the official's support for any municipal legislative action recommended in the district plan. A chief elected official may only submit a letter of support for one proposed innovation district located within his or her municipality; (I) letters of support from private investors; (J) information concerning consistency with the state plan of conservation and development; (K) information concerning the capability of the applicant and other entities partnering with the applicant to implement and administer the district plan and how such partners will be involved in the decision-making process for the proposed innovation district; (L) a plan to distribute, on a need-based capacity, a portion of any municipal grand list growth attributable to (i) improvements to property within the proposed district after the establishment of such district, or (ii) the relocation of property from the proposed district to a municipality within the same regional council of governments after the establishment of such district.

(2) A district plan may include, but shall not be limited to, (A) plans for: (i) Attracting and directing support to start-up businesses; (ii) development, in collaboration with private partners, of a business incubator, coworking space, business accelerator or public meeting space; (iii) events and community building; (iv) marketing and outreach; (v) open space improvement; (vi) housing development; (vii) improvement of technology infrastructure, including, but not limited to, broadband improvement; (viii) bicycle paths; and (ix) attracting anchor institutions, and (B) community letters of support from persons or entities other than the applicant.

(b) The ImpaCT board shall screen all applications submitted to it pursuant to subsection (a) of this section and shall select therefrom a limited number of finalist applicants. The ImpaCT board shall hold at least one public hearing on each application submitted by a finalist applicant. Such hearing shall be held in the municipality where the proposed innovation district is located and shall consist of a presentation by the applicant finalist on its proposal and a public comment period. The ImpaCT board shall conduct a site walk of any proposed innovation district submitted by an applicant finalist. The chairperson of the ImpaCT board shall give appropriate notice of such hearing. The notice shall (1) state the time and place of the hearing to be held not fewer than ten days after the date of such notice, and (2) be posted in a conspicuous place in or near the office of the town clerk for the municipality where the proposed innovation district is located and posted on the Internet web site of such municipality. Applicants may submit revised applications to the advisory panel based on public comments received at such hearing.

Sec. 12. (NEW) (Effective from passage) Through the innovation district program established pursuant to section 10 of this act, the ImpaCT board shall:

(1) Review and evaluate applications for innovation district status submitted by entities pursuant to section 11 of this act;

(2) Make recommendations to the executive director on or before January 1, 2017, for the approval of applications for innovation district status. If no such application meets the purposes set forth in subsection (a) of section (10) of this act or the criteria set forth in this subdivision, the board shall not recommend any application for innovation district status to the executive director. Such recommendations may include modifications to an application, agreed to by the applicant, as a condition for approval thereof. Such recommendations shall include recommendations for the amount of grant moneys to be awarded to each recommended applicant and recommendations for allowable grant expenses, including, but not limited to, expenditures set forth in such applicant's application, expenditures associated with any modifications recommended thereto by the ImpaCT board, operating expenses and the cost of the audit prescribed by subdivision (2) of subsection (b) of section 10 of this act. (A) No application may be recommended for innovation district status by the ImpaCT board unless such application is consistent with the purposes set forth in section 10 of this act and is for a proposed innovation district where a significant portion of such proposed district is located in an existing or proposed mixed-use zoning district. (B) In determining whether to recommend an application for approval, the ImpaCT board shall consider, but such consideration shall not be limited to: (i) Whether the entities partnering together to implement and administer the proposed district plan are of the quality to, and have demonstrated the commitment to, implement and administer the district plan in a manner sufficient to achieve the purposes set forth in section 10 of this act. Preference shall be given to applicants having (I) diverse partners, including, but not limited to, anchor institutions, and (II) partnerships with entities located within the proposed innovation district; (ii) whether the geography of the proposed innovation district is sufficiently compact to achieve the purposes set forth in section 10 of this act, provided no proposed innovation district having a proposed geographic area consisting of more than one half square mile shall be recommended by the ImpaCT board unless the applicant demonstrates good cause exists for expanding such district beyond one half square mile; (iii) whether the district plan is sufficient to achieve the purposes set forth in section 10 of this act and whether such plan includes (I) sufficient measures to ensure walkability within the proposed district; (II) sufficient measures to enhance regular interpersonal interactions amongst residents, workers and visitors of the district; (III) adequate and accessible public transportation; and (IV) existing or proposed restaurants, affordable housing options, retail spaces and public spaces, indoor or outdoor, that provide adequate opportunity for interpersonal interaction; (iv) the extent to which the district plan leverages private investment; (v) self-sustainability of the district after moneys granted by the executive director are fully expended; (vi) whether the underlying zoning of the proposed district provides for, or will be amended to provide for, reduced minimum floor area for residential dwelling units; and (vii) any other criteria the advisory committee determines is relevant for evaluating whether the proposed district, if granted innovation district status, will achieve the purposes set forth in section 10 of this act.

(3) Publicize and post on its Internet web site the deadline for applications for innovation district status pursuant to section 11 of this act; and

(4) Develop a program to provide grants to innovation places, including, but not limited to, a process to apply for such grants, the criteria for grant approval and a process for approving such grants, provided such grants shall only be provided to innovation places that meet the purposes set forth in section 10 of this act.

Sec. 13. (Effective from passage): On or before June 1, 2016, the Commissioner of Economic and Community Development shall publicize and post on its Internet web site the deadline for applications for innovation district status pursuant to section 11 of this act and the language of sections 9 through 12, inclusive, of this act.

Sec. 14. Section 32-235 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) For the purposes described in subsection (b) 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 billion four hundred fifteen million three hundred thousand dollars, provided (1) one hundred forty million dollars of said authorization shall be effective July 1, 2011, and twenty million dollars of said authorization shall be made available for small business development; (2) two hundred eighty million dollars of said authorization shall be effective July 1, 2012, and forty million dollars of said authorization shall be made available for the Small Business Express program established pursuant to section 32-7g, as amended by this act, and not more than twenty million dollars of said authorization may be made available for businesses that commit to relocating one hundred or more jobs that are outside of the United States to the state; and (3) one hundred million dollars of said authorization shall be effective July 1, 2016. Any amount of said authorizations that are made available for small business development or businesses that commit to relocating one hundred or more jobs that are outside of the United States to the state, but are not exhausted for such purpose by the first day of the fiscal year subsequent to the fiscal year in which such amount was made available, shall be used for the purposes described in subsection (b) of this section. For purposes of this subsection, a "small business" is one employing not more than one hundred employees.

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Economic and Community Development (1) for the purposes of sections 32-220 to 32-234, inclusive, including economic cluster-related programs and activities, and for the Connecticut job training finance demonstration program pursuant to sections 32-23uu and 32-23vv, provided (A) three million dollars shall be used by said department solely for the purposes of section 32-23uu and not more than five million two hundred fifty thousand dollars of the amount stated in said subsection (a) may be used by said department for the purposes of section 31-3u, (B) not less than one million dollars shall be used for an educational technology grant to the deployment center program and the nonprofit business consortium deployment center approved pursuant to section 32-41l, (C) not less than two million dollars shall be used by said department for the establishment of a pilot program to make grants to businesses in designated areas of the state for construction, renovation or improvement of small manufacturing facilities, provided such grants are matched by the business, a municipality or another financing entity. The Commissioner of Economic and Community Development shall designate areas of the state where manufacturing is a substantial part of the local economy and shall make grants under such pilot program which are likely to produce a significant economic development benefit for the designated area, (D) five million dollars may be used by said department for the manufacturing competitiveness grants program, (E) one million dollars shall be used by said department for the purpose of a grant to the Connecticut Center for Advanced Technology, for the purposes of subdivision (5) of subsection (a) of section 32-7f, (F) fifty million dollars shall be used by said department for the purpose of grants to the United States Department of the Navy, the United States Department of Defense or eligible applicants for projects related to the enhancement of infrastructure for long-term, on-going naval operations at the United States Naval Submarine Base-New London, located in Groton, which will increase the military value of said base. Such projects shall not be subject to the provisions of sections 4a-60 and 4a-60a, (G) two million dollars shall be used by said department for the purpose of a grant to the Connecticut Center for Advanced Technology, Inc., for manufacturing initiatives, including aerospace and defense, and (H) four million dollars shall be used by said department for the purpose of a grant to companies adversely impacted by the construction at the Quinnipiac Bridge, where such grant may be used to offset the increase in costs of commercial overland transportation of goods or materials brought to the port of New Haven by ship or vessel, (2) for the purposes of the small business assistance program established pursuant to section 32-9yy, provided fifteen million dollars shall be deposited in the small business assistance account established pursuant to said section 32-9yy, [and] (3) to deposit twenty million dollars in the small business express assistance account established pursuant to section 32-7h, (4) twenty-five million dollars shall be used by ImpaCT for providing grants to designated innovation districts, as defined in section 9 of this act or planning grants pursuant to section 2 of this act, (5) five million dollars shall be used by ImpaCT for providing grants to innovation places pursuant to section 12 of this act, (6) sixty million dollars shall be used by Startup CT for the purposes of providing loans pursuant to section 25 of this act, (7) twenty-five million dollars shall be used by ImpaCT for the purposes of providing grants to business accelerators pursuant to section 26 of this act, and (8) five million shall be used by the State Department of Education for the purpose of providing grants to technical high schools for the provision of evening training programs in the skilled trades, including, but not limited to, manufacturing, masonry, electrical, plumbing and carpentry trades, provided the purpose of such programs shall be to prepare participants for earning a credential or degree recognized by employers or trade associations, as applicable.

(c) 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. 15. (NEW) (Effective from passage and applicable to assessment years commencing on or after October 1, 2016) (a) As used in this section:

(1) "Average increase in assessed value" means the average of the increase in assessed value of commercial and industrial property, and personal property used exclusively for commercial or industrial purposes, for the three assessment years immediately preceding the base year;

(2) "Base year" means the assessment year immediately preceding the improvement;

(3) "Increase from the base year" means the assessed value of commercial or industrial property for the current assessment year plus the current assessment year assessed value of any personal property acquired after the base year to be used exclusively for commercial or industrial purposes, less the assessed value of the commercial or industrial property for the base year;

(4) "Improvement to commercial or industrial property" or "improvement" includes, but is not limited to, any personal property acquired after the base year and used exclusively for commercial or industrial purposes;

(5) "Designated innovation district" has the same meaning as set forth in section 10 of this act; and

(6) "Mill rate" means the mill rate on real property and personal property other than motor vehicles.

(b) (1) Notwithstanding any provision of the general statutes or any special act, charter or home rule ordinance, a municipality that contains a designated innovation district, by vote of its legislative body, or in a municipality where the legislative body is a town meeting, by vote of the board of selectmen, provide that, for improvements to commercial or industrial property that result in an increase from the base year, (A) the assessment of such improvement shall be reduced as provided in subparagraph (B) of subdivision (2) of this subsection, and (B) the increase in tax revenue attributable to such improvement shall be allocated to reduce the assessments and total tax imposed on commercial and industrial properties located within the municipality as provided in subparagraph (C) of subdivision (2) of this subsection. The reduced assessments and allocations shall continue until the earlier of (i) the assessment year in which the mill rate for the municipality is not more than ten per cent greater than the average regional mill rate calculated pursuant to subdivision (2) of this subsection, or (ii) a date determined by such vote of the legislative body or the board of selectmen.

(2) (A) The tax collector of any municipality that has voted to reduce assessments pursuant to subdivision (1) of this subsection shall annually calculate the average regional mill rate based on the average mill rate of the planning region of the state, as designated under the provisions of section 16a-4a of the general statutes, in which the municipality is located.

(B) With respect to an improvement to commercial or industrial property that results in an increase from the base year of at least ten thousand dollars, the assessor of such municipality shall annually (i) determine the amount of the current assessment year increase in assessed value of the property that exceeds the average increase in assessed value with respect to the property, and (ii) reduce the assessment of the amount determined under clause (i) of this subparagraph to an amount that yields a total tax on such amount equal to the tax that would be imposed at the applicable average regional mill rate.

(C) Each such municipality shall allocate tax revenue attributable to such improvements to reduce the assessments and total tax imposed on each commercial and industrial property located within the innovation district in which the improved property is located, that is not subject to any other form of property tax relief and that has a total assessment of less than fifteen million dollars, except that such municipality may retain the amount equal to the average increase in assessed value on such commercial and industrial properties, and may retain an additional twenty per cent of the current assessment year increase in assessed value that is in excess of the average increase in assessed value.

(c) The assessor of any municipality that has voted to reduce assessments pursuant to subdivision (1) of subsection (b) of this section shall calculate assessed values under this section without regard to any revaluation of real property that takes place on or after the date of such vote.

Sec. 16. Section 32-39 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):

The purposes of the corporation shall be to stimulate and encourage the research and development of new technologies, businesses 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) 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, (1) that all such acquisitions of real property for the corporation's own use with amounts appropriated by the state to the corporation or with the proceeds of bonds supported by the full faith and credit of the state shall be subject to the approval of the Secretary of the Office of Policy and Management and the provisions of section 4b-23, and (2) the corporation shall relocate its main office to a designated innovation district, as defined in section 9 of this act, on or before January 1, 2018, and shall establish a satellite office in each other designated innovation district;

(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;

(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; 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, provided the board shall adopt a performance-based compensation policy requiring that on and after one year from the effective date of this section, no employee may receive a salary in an amount greater than fifty thousand dollars unless the employee has exceeded certain performance measures determined by the board; 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, chief executive officer, 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 president of the Board of Regents for 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)] (19) To conduct and encourage research and studies relating to technological development;

[(24)] (20) 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)] (21) 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)] (22) 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)] (23) 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)] (24) 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)] (25) To do all acts and things necessary and convenient to carry out the purposes of this chapter;

[(34)] (26) 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 and the Connecticut Housing Finance 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 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)] (27) 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)] (28) 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)] (29) To provide financial aid to enable biotechnology, bioscience 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; and

[(38) To provide financial aid to persons developing smart buildings, as defined in section 32-23d, incubator facilities or other information technology intensive office and laboratory space;]

[(39)] (30) To provide financial aid to persons developing or constructing the basic buildings, facilities or installations needed for the functioning of the media and motion picture industry in this state. [;]

[(40) To coordinate the development and implementation of strategies regarding technology-based talent and innovation among state and quasi-public agencies, including the creation and administration of the Connecticut Small Business Innovation Research Office to act as a centralized clearinghouse and provide technical assistance to applicants in developing small business innovation research programs in conformity with the federal program established pursuant to the Small Business Research and Development Enhancement Act of 1992, P.L. 102-564, as amended, and other proposals.]

Sec. 17. Subsection (h) of section 32-35 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):

(h) The corporation shall provide funding for the operation of the Connecticut Small Business Innovation Research Office in accordance with subdivision [(41) of section 32-39] (15) of section 9 of this act.

Sec. 18. (NEW) (Effective from passage): Notwithstanding any provision of the general statutes, any venture agreement, investment agreement or other similar agreement entered into by Connecticut Innovations, Incorporated shall involve one or more private partners.

Sec. 19. (Effective from passage): On or before January 1, 2017, Connecticut Innovations, Incorporated shall submit a performance audit of such corporation conducted by an independent accounting or management consulting firm including, but not limited to: (1) Whether the staffing levels of such corporation are appropriate; (2) a recommendation as to which designated innovation district, as defined in section 9 of this act, the corporation should relocate to; (3) whether the corporation should shift to a fund model similar to that established pursuant to section 25 of this act; (4) recommended measures for the corporation to take in order to improve its ranking in two or more ranking systems prepared by organizations that rank public venture capital entities by varying success measures; and (5) an analysis of performance based on any other performance measures recommended by the ImpaCT board, established pursuant to section 1 of this act.

Sec. 20. (NEW) (Effective from passage): (a) The Commissioner of Economic and Community Development shall establish a mentorship network connecting start-up entrepreneurs in technology based ventures, including, but not limited to, cybersecurity, data science, software development, or other technology based start-up business, with qualified mentors. The commissioner shall provide mentorship training to any Connecticut business seeking to participate in such mentorship network.

(b) The commissioner may forgive a portion of any state assistance received by a technology based business and owed to the state if such business participates in the mentorship network established pursuant to subsection (a) of this section. The commissioner shall develop a formula to calculate such state assistance forgiveness based on the hours of mentorship provided by any such business.

Sec. 21. Section 52 of public act 11-1 of the October special session is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) For the purposes described in subsection (b) 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 hundred twenty-five million dollars, provided twenty-five million dollars of said authorization shall be effective July 1, 2012, twenty-five million dollars of said authorization shall be effective July 1, 2013, twenty-five million dollars of said authorization shall be effective July 1, 2014, and twenty-five million dollars of said authorization shall be effective July 1, 2015.

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used (1) by Connecticut Innovations, Incorporated for the purpose of recapitalizing the programs established in chapter 581 of the general statutes, provided up to fifteen million dollars shall be made available for the preseed financing program established pursuant to section 32-41x of the general statutes, and (2) by ImpaCT (A) for the purposes enumerated in subsection (a) of section 2 of this act in an amount up to twenty-five million dollars for such purposes, provided (i) five million dollars of said authorization shall be effective July 1, 2016; (ii) five million dollars of said authorization shall be effective July 1, 2017; (iii) five million dollars of said authorization shall be effective July 1, 2018; (iv) five million dollars of said authorization shall be effective July 1, 2019; and (v) five million dollars of said authorization shall be effective July 1, 2020, and (B) for technology transfer purposes in an amount up to five million dollars, provided (i) one million dollars of said authorization shall be effective July 1, 2016; (ii) one million dollars of said authorization shall be effective July 1, 2017; (iii) one million dollars of said authorization shall be effective July 1, 2018; (iv) one million dollars of said authorization shall be effective July 1, 2019; and (v) one million dollars of said authorization shall be effective July 1, 2020, and (3) by The University of Connecticut for hiring staff for its entrepreneurship program in an amount up to five million dollars for such purposes, provided (A) said university provides matching funds for such hiring, (B) said university establishes a partnership with a designated innovation district, as defined in section 9 of this act, in which said university agrees to establish, in such district, its branch campus for programs that relate to the specialty of such innovation district, and (C) (i) one million dollars of said authorization shall be effective July 1, 2016; (ii) one million dollars of said authorization shall be effective July 1, 2017; (iii) one million dollars of said authorization shall be effective July 1, 2018; (iv) one million dollars of said authorization shall be effective July 1, 2019; and (v) one million dollars of said authorization shall be effective July 1, 2020.

(c) All provisions of section 3-20 of the general statutes, 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 State Treasurer shall pay such principal and interest as the same become due.

Sec. 22. Subsection (c) of section 32-7g of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):

(c) The commissioner shall establish a streamlined application process for the Small Business Express program. The small business applicant may receive assistance pursuant to said program not later than thirty days after submitting a completed application to the department. Any small business meeting the eligibility criteria in subsection (a) of this section may apply to said program. The commissioner shall give priority for available funding to small businesses creating jobs and may give priority for available funding to (1) economic base industries, as defined in subsection (d) of section 32-222, including, but not limited to, those in the fields of precision manufacturing, business services, green and sustainable technology, bioscience and information technology, [and] (2) businesses attempting to export their products or services to foreign markets; and (3) businesses located in designated innovation districts, as defined in section 9 of this act.

Sec. 23. Section 10-395a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

There is established an account within the General Fund to be known as the "state-wide tourism, innovation and entrepreneurship marketing account". The account may contain all moneys required by law to be deposited in the account. Any balance remaining in said account at the end of any fiscal year shall be carried forward in said account for the fiscal year next succeeding. The moneys in said account shall be allocated for implementation of the state-wide marketing plan in accordance with section 10-396 and implementation of the state-wide innovation and entrepreneurship marketing plan in accordance with section 2 of this act.

Sec. 24. Section 12-704d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016, and applicable to taxable years commencing on or after January 1, 2016):

(a) As used in this section:

(1) "Angel investor" means an accredited investor, as defined by the Securities and Exchange Commission, or network of accredited investors who review new or proposed businesses for potential investment and who may seek active involvement, such as consulting and mentoring, in a Connecticut business, but "angel investor" does not include (A) a person controlling fifty per cent or more of the Connecticut business invested in by the angel investor, (B) a venture capital company, or (C) any bank, bank and trust company, insurance company, trust company, national bank, savings association or building and loan association for activities that are a part of its normal course of business;

(2) "Cash investment" means the contribution of cash, at a risk of loss, to a qualified Connecticut business in exchange for qualified securities;

(3) "Connecticut business" means any business with its principal place of business in Connecticut that is engaged in bioscience, advanced materials, photonics, information technology, clean technology or any other emerging technology as determined by the Commissioner of Economic and Community Development;

(4) "Bioscience" means manufacturing pharmaceuticals, medicines, medical equipment or medical devices and analytical laboratory instruments, operating medical or diagnostic testing laboratories, or conducting pure research and development in life sciences;

(5) "Advanced materials" means developing, formulating or manufacturing advanced alloys, coatings, lubricants, refrigerants, surfactants, emulsifiers or substrates;

(6) "Photonics" means generation, emission, transmission, modulation, signal processing, switching, amplification, detection and sensing of light from ultraviolet to infrared and the manufacture, research or development of opto-electronic devices, including, but not limited to, lasers, masers, fiber optic devices, quantum devices, holographic devices and related technologies;

(7) "Information technology" means software publishing, motion picture and video production, teleproduction and postproduction services, telecommunications, data processing, hosting and related services, custom computer programming services, computer system design, computer facilities management services, other computer related services and computer training;

(8) "Clean technology" means the production, manufacture, design, research or development of clean energy, green buildings, smart grid, high-efficiency transportation vehicles and alternative fuels, environmental products, environmental remediation and pollution prevention; and

(9) "Qualified securities" means any form of equity, including a general or limited partnership interest, common stock, preferred stock, with or without voting rights, without regard to seniority position that must be convertible into common stock.

(b) There shall be allowed a credit against the tax imposed under this chapter, other than the liability imposed by section 12-707, for a cash investment of not less than twenty-five thousand dollars in the qualified securities of a Connecticut business by an angel investor. The credit shall be in an amount equal to twenty-five per cent of such investor's cash investment, provided the total tax credits allowed to any angel investor shall not exceed two hundred fifty thousand dollars. The credit shall be claimed in the taxable year in which such cash investment is made by the angel investor and shall not be transferable. The credit may be sold, assigned or otherwise transferred, in whole or in part.

(c) To qualify for a tax credit pursuant to this section, a cash investment shall be in a Connecticut business that (1) has been approved as a qualified Connecticut business pursuant to subsection (d) of this section; (2) had annual gross revenues of less than one million dollars in the most recent income year of such business; (3) has fewer than twenty-five employees, not less than seventy-five per cent of whom reside in this state; (4) has been operating in this state for less than seven consecutive years; (5) is primarily owned by the management of the business and their families; and (6) received less than two million dollars in cash investments eligible for the tax credits provided by this section.

(d) (1) A Connecticut business may apply to Connecticut Innovations, Incorporated, for approval as a Connecticut business qualified to receive cash investments eligible for a tax credit pursuant to this section. The application shall include (A) the name of the business and a copy of the organizational documents of such business, (B) a business plan, including a description of the business and the management, product, market and financial plan of the business, (C) a description of the business's innovative technology, product or service, (D) a statement of the potential economic impact of the business, including the number, location and types of jobs expected to be created, (E) a description of the qualified securities to be issued and the amount of cash investment sought by the qualified Connecticut business, (F) a statement of the amount, timing and projected use of the proceeds to be raised from the proposed sale of qualified securities, and (G) such other information as the chief executive officer of Connecticut Innovations, Incorporated, may require.

(2) Said chief executive officer shall, on a monthly basis, compile a list of approved applications, categorized by the cash investments being sought by the qualified Connecticut business and type of qualified securities offered.

(e) (1) Any angel investor that intends to make a cash investment in a business on such list may apply to Connecticut Innovations, Incorporated, to reserve a tax credit in the amount indicated by such investor. The aggregate amount of all tax credits under this section that may be reserved by Connecticut Innovations, Incorporated, shall not exceed six million dollars annually for the fiscal years commencing July 1, 2010, to July 1, 2012, inclusive, and shall not exceed three million dollars in each fiscal year thereafter. Connecticut Innovations, Incorporated, shall not reserve tax credits under this section for any investment made on or after July 1, [2016] 2019.

(2) The amount of the credit allowed to any investor pursuant to this section shall not exceed the amount of tax due from such investor under this chapter, other than section 12-707, with respect to such taxable year. Any tax credit that is claimed by the angel investor but not applied against the tax due under this chapter, other than the liability imposed under section 12-707, may be carried forward for the five immediately succeeding taxable years until the full credit has been applied.

(f) If the angel investor is an S corporation or an entity treated as a partnership for federal income tax purposes, the tax credit may be claimed by the shareholders or partners of the angel investor. If the angel investor is a single member limited liability company that is disregarded as an entity separate from its owner, the tax credit may be claimed by such limited liability company's owner, provided such owner is a person subject to the tax imposed under this chapter.

(g) A review of the cumulative effectiveness of the credit under this section shall be conducted by Connecticut Innovations, Incorporated, by July 1, 2014, and by July first annually thereafter. Such review shall include, but need not be limited to, the number and type of Connecticut businesses that received angel investments, the number of angel investors and the aggregate amount of cash investments, the current status of each Connecticut business that received angel investments, the number of employees employed in each year following the year in which such Connecticut business received the angel investment, and the economic impact in the state, of the Connecticut business that received the angel investment. Such review shall be submitted to the Office of Policy and Management and to the joint standing committee of the General Assembly having cognizance of matters relating to commerce, in accordance with the provisions of section 11-4a

Sec. 25. (NEW) (Effective July 1, 2016, and applicable to taxable years commencing on or after January 1, 2016) (a) For the purposes of this section:

(1) "Cash investment" means the contribution of cash, at a risk of loss, to a qualified Connecticut business in exchange for qualified securities;

(2) "Connecticut Innovations" means Connecticut Innovations, Incorporated or any successor thereto;

(3) "Eligible debt security" means a senior debt instrument issued by a growth fund in exchange for cash, at par value or a premium;

(4) "Eligible equity investment" means an equity investment in or eligible debt security issued by a growth fund that is acquired at its original issue solely in exchange for cash; and

(5) "Start-up fund" means an entity certified by Connecticut Innovations pursuant to this section.

(b) (1) There is established a Connecticut venture loan program to be known as Startup CT for the purposes of increasing the amount of preseed financing and seed financing, as defined in section 32-34 of the general statutes, available in Connecticut. Connecticut Innovations shall certify up to six entities as start-up funds under this section and may make up to sixty million dollars in forgivable loans to such entities, provided one such start-up fund shall make investments exclusively in intellectual property and start-ups developed by students, faculty and researchers from The University of Connecticut. On and after September 1, 2016, entities may submit applications for approval as a start-up fund on a form prescribed by Connecticut Innovations, which shall include: (A) A description of intended industry targets, preferred stage of investment and any geographic cluster strategy; (B) a detailed description of the track record of key fund managers with an emphasis on experience with seed and early stage investments; (C) the specific strategy the fund manager will pursue to raise the necessary private capital to qualify for a growth loan and a fund-raising track record for funds with similar characteristics and targets; and (D) any other information reasonably required by Connecticut Innovations.

(2) Connecticut Innovations shall review and consider each application and approve or reject such application within thirty days of receipt. Upon approval of an entity as a start-up fund, Connecticut Innovations shall: (A) Enter into a loan agreement with the start-up fund which shall (i) provide up to ten million dollars, which shall be specifically conditioned upon the start-up fund securing equity investments in the form of cash in an amount at least equal to twenty million dollars; and (ii) include the economic goals the start-up fund must achieve to be granted loan forgiveness, and (B) make an allocation of tax credits to the start-up fund, if applicable, pursuant to subsection (c) of this section. Approved applicants may submit an additional application for loans under this section in the event that Connecticut Innovations has not approved the maximum number of start-up funds by October 15, 2016.

(3) Within sixty days of receiving approval for a loan under this section, the start-up fund shall collect an amount of eligible equity investments in an amount equal to twenty million dollars. Within sixty-five days of receiving such approval, the growth fund shall send documentation to Connecticut Innovations sufficient to prove receipt of such equity contribution. Upon receipt of such documentation, the State shall make the growth loan to the start-up fund.

(4) Prior to any cash investment by a start-up fund, Connecticut Innovations shall certify such business as eligible for investment based on guidelines promulgated by Connecticut Innovations. Such guidelines shall require that the business be (A) principally located in or willing to relocate to Connecticut, and (B) in the early stages of development.

(5) On or before December thirty-first of the year containing the fifth anniversary of the closing date of the loan and annually thereafter, the start-up fund shall provide a state revenue impact assessment prepared by a nationally recognized third-party independent economic forecasting firm using a dynamic economic forecasting model that analyzes the economic impact of the investments of the start-up fund, including, but not limited to, jobs created or retained thereby. Connecticut Innovations shall forgive all or part of the loan upon the achievement of economic development goals agreed to by Connecticut Innovations and the start-up fund in the loan agreement.

(c) (1) There shall be allowed a credit against the tax imposed under chapter 208 of the general statutes for an equity investment in the form of cash in a start-up fund. The credit shall be earned and vested upon the making of an eligible equity investment into a start-up fund, be available for utilization against the tax imposed by this chapter in an amount equal to twenty-five per cent of such investment in each of the years containing the third and fourth anniversaries of the investment date for a total credit equal to fifty per cent of the investment and shall be transferable.

(2) The credit earned under this subsection shall be subject to recapture upon a start-up fund's failure to invest thirty million dollars within five years of the loan awarded under this section within four years of the closing date of such loan. If a start-up fund fails to comply with the provisions of this subdivision, Connecticut Innovations shall notify the officers of the start-up fund of the potential recapture, in writing, ninety days prior to such potential recapture. Such credit shall be recaptured by Connecticut Innovations unless the deficiency is waived by Connecticut Innovations or is corrected by the start-up fund within such ninety days.

(3) The credit may be sold, assigned or otherwise transferred, in whole or in part.

(4) The aggregate amount of tax credits under this section that may be earned as a result of equity investments in the form of cash in a start-up fund shall not exceed sixty million dollars.

Sec. 26. (NEW) (Effective from passage): There is established, within ImpaCT, AccelerateCT, which shall provide grants to qualified private business accelerators for the purpose of developing such accelerators and providing financial assistance to growth stage companies utilizing such accelerator. Such grants may be in an amount up to four hundred thousand dollars and shall be disbursed over two years. Such grant moneys may be used by a qualified private business accelerator for (1) overhead and operational expenses associated with such business accelerator, including, but not limited to, lease payments for up to two years, information technology infrastructure and management personnel costs, and (2) providing financial assistance to growth stage companies utilizing such accelerator. ImpaCT shall establish an application process for such grants, the criteria for approval for such grants and an approval process for such grants, provided the criteria for approval shall include, but not be limited to, consideration of sufficiency of matching private capital, location of the qualified private business accelerator, investment team expertise, network capacity, and the number of growth stage companies committed to utilizing such business accelerator. For the purposes of this section, growth stage company means a company with five hundred thousand to five million dollars in revenue, at least one intern, defendable intellectual property, strong management and proven sales, as determined by the qualified private business accelerator.

Sec. 27. (NEW) (Effective October 1, 2016) (a) Notwithstanding the provisions of section 32-70 of the general statutes, the Commissioner of Economic and Community Development may establish a knowledge center enterprise zone surrounding any college, university or other institution of higher learning in the state upon receipt from such college, university or institution of a proposal recommending the establishment of such a zone, provided: (1) The commissioner determines that the economic development benefits of establishing such a knowledge center enterprise zone outweigh the anticipated costs to the state and the affected municipalities; and (2) such proposal complies with the state plan of conservation and development adopted pursuant to chapter 297 of the general statutes. The commissioner may establish not more than ten knowledge center enterprise zones.

(b) Any proposal submitted by a college, university or other institution of higher learning pursuant to subsection (a) of this section shall include, but not be limited to: (1) The geographic scope of the proposed knowledge center enterprise zone, including designation of all census blocks that such institution proposes incorporating into such zone, provided no zone shall extend beyond a two-mile radius of such college, university or institution; (2) the nature of business and industry that will be developed and how such business and industry align with the mission of such college, university or institution; (3) how such business and industry will collaborate with such college, university or institution to create jobs and the anticipated number of jobs to be created; (4) such college, university or institution's experience with business collaboration or plan for such collaboration; (5) any other economic and community developments anticipated from the establishment of such zone; and (6) the anticipated lost revenue to the state and municipalities as a result of establishing such zone.

(c) The commissioner may modify the geographic scope of any proposed knowledge center enterprise zone to improve the balance between the anticipated economic benefit and the cost to the state and affected municipalities.

(d) Businesses located within a knowledge center enterprise zone 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.

(e) The commissioner shall adopt regulations in accordance with the provisions of chapter 54 of the general statutes to implement the provisions of this section. Such regulations shall include, but not be limited to: (1) A review and approval process for proposals submitted pursuant to subsection (a) of this section; (2) goals and performance standards for knowledge center enterprise zones; and (3) procedures to assess the performance of knowledge center enterprise zones.

(f) Not less than ten years from the original date of approval of a knowledge center enterprise zone, the commissioner shall assess the performance of such zone. The commissioner may remove the designation of such knowledge center enterprise zone if such zone fails to meet the goals and performance standards set forth in the regulations adopted pursuant to subsection (e) of this section.

Sec. 28. Subsection (e) section 13 of public act 15-1 of the June special session is repealed and the following is substituted in lieu thereof (Effective from passage):

(e) For the Department of Economic and Community Development: (1) For the Connecticut Manufacturing Innovation Fund established by section 32-7o of the general statutes, not exceeding $20,000,000, provided not more than [$3,500,000] $5,750,000 shall be used as a grant-in-aid to the Connecticut Center for Advanced Technology, provided (A) not more than $3,500,000 shall be used for research and development of the machining of high rate laser-engineered additive manufacturing;

(2) For the Small Business Express program established by section 32-7g of the general statutes, not exceeding $50,000,000;

(3) For the Brownfield Remediation and Revitalization program, not exceeding $20,000,000;

(4) For the implementation of a minority business enterprise assistance program to assist such businesses in obtaining surety bonds, including bid, performance and payment bonds, for capital construction projects, which program may be run by a nonprofit entity with which said department shall contract, not exceeding $2,000,000.

(B) Seven hundred fifty thousand dollars shall be used for the "Dream It. Do It." Initiative, and

(C) Two million dollars shall be used for a program, administered in cooperation with the Workforce Investment Boards, that intends to add at least one thousand job seekers and interns to the manufacturing talent pipeline by (i) recruiting job seekers and interns from traditional and non-traditional manufacturing education programs, (ii) assessing and screening such job seekers and interns with regard to skills related to manufacturing, (iii) offering online manufacturing education to such job seekers and interns, (iv) linking screened and assessed job seekers and interns with manufacturers for six-week internships and twelve-week on-the-job training opportunities, (v) providing wage subsidies to manufacturers employing such job seekers or interns, and (vi) linking job seekers to manufacturers that are under the Subsidized Training and Employment program established under section 31-3pp of the general statutes or employ apprentices under a qualified apprenticeship training program, as described in section 12-217g of the general statutes.

Sec. 29. (Effective July 1, 2016) (a) For the purposes described in subsection (b) 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 seven million dollars.

(b) The proceeds of the sale of such bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by The University of Connecticut for the purpose of acquiring, undertaking, constructing, reconstructing, improving or equipping or purchasing land or buildings for The University of Connecticut Waterbury Downtown Campus.

(c) All provisions of section 3-20 of the general statutes, or the exercise of any right or power granted thereby, that 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. 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 section 3-20 of the general statutes 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 such 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 that 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. Such 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 such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section

Sec. 2

from passage

New section

Sec. 3

from passage

New section

Sec. 4

from passage

New section

Sec. 5

from passage

1-79(12)

Sec. 6

from passage

1-120

Sec. 7

from passage

1-124

Sec. 8

from passage

1-125

Sec. 9

from passage

New section

Sec. 10

from passage

New section

Sec. 11

from passage

New section

Sec. 12

from passage

New section

Sec. 13

from passage

New section

Sec. 14

from passage

32-235

Sec. 15

from passage and applicable to assessment years commencing on or after October 1, 2016

New section

Sec. 16

October 1, 2016

32-39

Sec. 17

October 1, 2016

32-35(h)

Sec. 18

from passage

New section

Sec. 19

from passage

New section

Sec. 20

from passage

New section

Sec. 21

from passage

PA 11-1 of the October Sp. Sess., Sec. 52

Sec. 22

October 1, 2016

32-7g(c)

Sec. 23

from passage

10-395a

Sec. 24

July 1, 2016, and applicable to taxable years commencing on or after January 1, 2016

12-704d

Sec. 25

July 1, 2016, and applicable to taxable years commencing on or after January 1, 2016

New section

Sec. 26

from passage

New section

Sec. 27

October 1, 2016

New section

Sec. 28

from passage

PA 15-1 of the June Sp. Sess., (e) Sec. 13

Sec. 29

July 1, 2016

New section

Statement of Purpose:

To (1) establish a new quasi-public entity to be known as ImpaCT and authorize bonding for such entity; (2) establish an innovation district program, give priority for certain small business express loans to businesses in such districts and authorize bonding for certain uses within such districts; (3) authorize bonding for the provision of evening programs in skilled trades provided by technical high schools; (4) establish an optional tax assessment method for properties within an innovation district; (5) modify certain provisions regarding Connecticut Innovations, Incorporated and transfer certain duties from such corporation to ImpaCT; (6) require such corporation to involve private partners in its venture and investment agreements; (7) require a performance audit of such corporation; (8) require the Commissioner of Economic and Community Development to develop a mentorship network; (9) authorize bonding for The University of Connecticut for hiring staff for its entrepreneurship program; (10) require that moneys from the state-wide tourism account be used for innovation and entrepreneurship marketing; (11) extend the angel investor tax credit for three years and to make such credit transferable; (12) establish a venture loan program and authorize bonding for such program; (13) allow for grants to business accelerators and authorize bonding for such program; (14) allow for the establishment of a knowledge center enterprise zone; (15) authorize bonding for the "Dream It. Do It." Initiative; (16) authorize bonding for a program to add job seekers to the manufacturing talent pipeline; and (17) to authorize bonding for capital improvements to The University of Connecticut Waterbury Downtown Campus.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]

Co-Sponsors:

SEN. LOONEY, 11th Dist.; SEN. DUFF, 25th Dist.

SEN. FONFARA, 1st Dist.; SEN. DOYLE, 9th Dist.

SEN. GERRATANA, 6th Dist.; SEN. MOORE, 22nd Dist.

SEN. COLEMAN, 2nd Dist.; SEN. LARSON, 3rd Dist.

SEN. WINFIELD, 10th Dist.; SEN. HARTLEY, 15th Dist.

SEN. BYE, 5th Dist.; SEN. GOMES, 23rd Dist.

SEN. OSTEN, 19th Dist.; SEN. MAYNARD, 18th Dist.

SEN. LEONE, 27th Dist.; SEN. FLEXER, 29th Dist.

SEN. BARTOLOMEO, 13th Dist.; SEN. CASSANO, 4th Dist.

SEN. CRISCO, 17th Dist.; REP. ROJAS, 9th Dist.

SEN. KENNEDY, 12th Dist.

S.B. 1