Connecticut Seal

General Assembly

File No. 740

    January Session, 2017

Substitute Senate Bill No. 1058

Senate, May 9, 2017

The Committee on Finance, Revenue and Bonding reported through SEN. FONFARA of the 1st Dist. and SEN. FRANTZ, L. of the 36th Dist., Chairpersons of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING THE IDENTIFICATION OF EMERGING ECONOMIC TRENDS.

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

Section 1. (NEW) (Effective from passage) (a) The CTNext board of directors established pursuant to section 32-39f of the general statutes shall issue a request for proposals to enter into an agreement with a private research organization to advise, guide and assist the state in short-term and long-term strategic economic planning by (1) identifying emerging industries in which the state should make strategic investments, considering the state's existing and potential strengths in the relevant workforce, education capacity, research capacity and the mix of existing businesses and industries in the state, (2) suggesting changes in state policy to bolster the state's workforce, education capacity and research capacity in support of the emerging industries identified under subdivision (1) of this subsection and to better meet the needs of the state's established industries, (3) periodically and regularly assessing the health of and potential strategic threats to the state's established industries, (4) accelerating the pace of innovation among new and existing businesses in the state, (5) forecasting short-term and long-term business trends that may impact existing businesses and new businesses in the state, (6) developing opportunities and business strategies to attract, retain and develop emerging and mature industries and businesses to and in the state, and (7) (A) periodically and regularly assessing economic conditions in the state to identify strategic strengths, weaknesses, opportunities and threats with respect to the objectives described in subdivisions (1) to (6), inclusive, of this subsection, and (B) develop and promote concrete policy recommendations informed by such assessment.

(b) To accomplish the objectives described in subsection (a) of this section, the selected research organization shall:

(1) Track and analyze developments in the state's major industry sectors, including, but not limited to: Health care and bioscience; financial services; insurance; venture capital; advanced manufacturing; aerospace; digital media and information technology; software development; data analytics; green technology; and tourism;

(2) Have expertise in or consult with experts in each of the following academic disciplines: Connecticut economic history and forecasting; technology and advancements in technology; strategic business planning and organizational development; investment and finance; the research and development process; and technology commercialization;

(3) Consult with representatives of employee organizations, as defined in section 5-270 of the general statutes, and private employee organizations to inform the research organization of developments in the workforce that shall be considered in the assessment undertaken by the research organization;

(4) Consult with representatives from public institutions of higher education in the state and from independent institutions of higher education in the state to inform the research organization of developments in higher education that shall be considered in the assessment undertaken by the research organization. The research organization shall examine: The relationship between institutions of higher education in the state and the state's major industry sectors; the extent of regular communications between institutions of higher education in the state and businesses in the state's major industry sectors; the alignment of curricula, degree programs and graduation rates in all fields of study offered by institutions of higher education in the state with the workforce and skill needs of the state's major industry sectors; and the responsiveness of institutions of higher education in the state to changing needs of the state's major industry sectors; and

(5) Develop contacts and working relationships with representatives of the businesses, organizations and institutions described in subdivisions (1) to (4), inclusive, of this subsection, in order to be updated continually and informed about emerging trends within their respective fields.

(c) (1) The research organization shall present, in accordance with the provisions of subdivision (2) of this subsection, an analysis of such assessments and action-oriented recommendations for legislative and programmatic changes to the CTNext board of directors and the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and commerce. The CTNext board of directors shall specify annually the scope of work for such research organization. The CTNext board of directors may change or adjust the scope of work if such directors deem such change or adjustment necessary or prudent in light of economic developments or trends, provided any such change or adjustment does not result in additional costs to the state.

(2) The research organization shall provide to the CTNext board of directors on a quarterly basis (A) an update on the status and progress of any prior legislative or programmatic changes recommended by such organization, including, but not limited to, a report on any such changes implemented by a state agency and whether such changes are accomplishing or are predicted to accomplish the purposes of such changes, and (B) any economic or business issues or problems forecast to adversely impact the state's economy or a major industry sector in the state. The research organization shall include annually in its fourth quarter report legislative and programmatic changes the organization recommends and specific action steps to accomplish the state's goals as described in subsection (a) of this section. The research organization shall provide to the CTNext board of directors annually a comprehensive report that includes the information required under this section.

(3) Prior to the hearing required under subdivision (4) of this subsection, a lead representative of the research organization shall provide to the chairpersons of the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and commerce a list of the department heads, as defined in section 4-5 of the general statutes, chief executive officers, presidents, deans or other comparable officials, (A) whose state agencies or state institutions are included, with respect to current or proposed programs or initiatives, in the research organization's comprehensive annual report required under subdivision (2) of this subsection, and (B) whose testimony at such hearing the lead representative believes would be helpful. The chairpersons of said committees may require additional department heads, chief executive officers, presidents, deans or other comparable officials of state agencies or state institutions to appear at such hearing to offer testimony.

(4) (A) The lead representative of the research organization who provided the list under subdivision (3) of this subsection and the chairperson of the CTNext board of directors shall present annually the comprehensive report under subdivision (2) of this subsection at a hearing held jointly by the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and commerce. At such hearing, members of said committees may question any individual appearing before them, and the lead representative of the research organization and the chairperson of the CTNext board of directors may question any of the department heads, chief executive officers, presidents, deans or comparable officials presenting testimony pursuant to subdivision (3) of this subsection.

(B) Said committees shall include in proposed legislation in the regular session of the General Assembly immediately following such hearing any legislative changes recommended by the research organization.

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

Section 1

from passage

New section

Statement of Legislative Commissioners:

In Section 1, "(NEW)" was added for accuracy, and Subsec. (a)(7), the first sentence of Subsec. (b) and Subsecs. (b)(5) and (c)(2) were rewritten for accuracy and consistency with standard drafting conventions.

FIN

Joint Favorable Subst. -LCO

 

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

CT Next (CT Innovations Inc)

GF - Acceleration of Debt Service Costs

See Below

See Below

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill is anticipated to accelerate the use of General Obligation bond funds by requiring the CTNext Board to retain and direct an independent research organization to conduct ongoing strategic planning and generate recommendations.

The bill does not authorize any General Obligation bonds, the funding source of CTNext, for this specific purpose. It is therefore anticipated that funding will sourced from G.O. bond authorizations available to CTNext.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

OLR Bill Analysis

sSB-1058

AN ACT CONCERNING THE IDENTIFICATION OF EMERGING ECONOMIC TRENDS.

SUMMARY

This bill establishes a process to continuously analyze economic and business conditions and generate for legislators periodic reports that, among other things, recommend appropriate legislative and programmatic actions. These tasks must be performed by a private research organization selected by the board of CTNext, a subsidiary of Connecticut Innovations that fosters innovation and entrepreneurship.

The bill specifies how the organization must perform the tasks. Among other things, it must track developments in the state's major industry sectors and develop contacts and working relationships with business organizations, unions, and academic institutions. When consulting academic institutions, it must assess the extent to which they interact with businesses and develop programs that meet their needs.

The organization must meet with the CTNext board at least quarterly. It must also submit a comprehensive annual report to the board that recommends specific steps to achieve the goals established through the assessment process. The board's chairperson and the organization's lead representative must present the report to the Commerce and Finance, Revenue and Bonding committees at a joint hearing, which various state officials must attend. The committees must include the organization's recommendations in the bills they propose during the next regular legislative session.

EFFECTIVE DATE: Upon passage

CTNEXT BOARD

The bill requires CTNext's board of directors, after issuing a request for proposals, to select a private research organization and enter into an agreement with it, although the bill does not set a deadline for doing so. (Presumably, the board would use its fund to compensate the organization.) The board must annually specify the organization's scope of work and may change it as it deems necessary or prudent in light of economic trends and developments, as long as these changes do not generate additional costs to the state.

RESEARCH ORGANIZATION

Purpose

The research organization must continuously advise, guide, and assist the state in short- and long-term strategic economic development planning by:

Method

The bill specifies the kinds of things the organization must do to fulfill its statutory purposes, including:

In consulting with higher education representatives, the organization must examine the institutions' relationships with the state's major industry sectors. It must specifically examine the extent to which:

The organization must consider in its economic assessments the information it receives from the representatives of employee organizations and higher education institutions.

RESEARCH AND REPORTING

The bill generally requires the organization to continuously gather and analyze economic information, periodically report its findings and legislative and programmatic recommendations to CTNext's board, and advise it on the status of previously recommended actions.

Quarterly Reporting

The organization must report quarterly to the board, updating it on the status of previously recommended legislative and programmatic changes, including whether the agencies implementing these changes are achieving their goals or are expected to do so. The organization must also inform the board about any economic or business problems or issues that could harm the state's major industry sectors.

The organization's fourth quarter report must include the organization's recommendations for legislative and programmatic recommendations and actions aimed at achieving the state's economic development goals.

Lastly, the organization must submit an annual comprehensive report to the board that includes the information it gathered throughout the year. (The bill does not specify a date by which the organization must start reporting.)

Public Hearing

The CTNext board and the organization's lead representative must present the organization's annual report to a joint hearing of the Commerce and Finance, Revenue and Bonding committees. Before the hearing, the lead representative must provide the committees' chairpersons with a list of the department heads, chief executive officers, presidents, deans, and comparable officials whose (1) state agencies or institutions are included in the report and (2) testimony the representative believes would be helpful. The committee chairpersons may also require representatives from other state agencies and institutions to testify at the hearing.

At the hearing, Commerce and Finance committee members may question any individual who appears before them, including the lead representative and the chairperson of the CTNext board. The lead representative and the chairperson may also question the people testifying at the hearing.

Legislative Proposals

The bill requires the Commerce and Finance committees to include the organization's recommendations in the bills they propose during the subsequent regular legislative session.

COMMITTEE ACTION

Finance, Revenue and Bonding Committee

Joint Favorable

Yea

49

Nay

2

(04/27/2017)

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