PA 17-162—sSB 961
AN ACT CONCERNING STATE HISTORICAL MUSEUMS AND THE RELOCATION OF BUSINESSES RECEIVING FINANCIAL ASSISTANCE FROM THE STATE
SUMMARY: This act tightens the criterion for determining whether businesses must repay, with a penalty, any state economic development assistance they received if they relocate outside Connecticut within a specified period. Under the act, a business must repay the assistance and a penalty if the Department of Economic and Community Development (DECD) commissioner determines it transferred a “substantial portion” of its operation, or those of any of its divisions, out of state. Under prior law, the business had to repay the assistance plus a penalty only if it transferred its entire operation or that of any of its divisions out of state.
By law, a business cannot receive economic development assistance unless it agrees not to relocate from Connecticut for 10 years after receiving the assistance, or the term of a state loan or loan guarantee, whichever is longer. If it relocates before the period expires, it must repay the entire amount of the assistance plus 5% (CGS § 32-5a).
The act also changes the law to reflect that DECD operates the Prudence Crandall, Old New-Gate Prison and Copper Mine, and the Eric Sloane and Kent Iron Furnace museums. Under prior law, DECD operated only the Henry Whitfield House museum, which it continues to do under the act.
EFFECTIVE DATE: Upon passage, except the change to the criterion for imposing the relocation penalty takes effect October 1, 2017.