OLR Bill Analysis

sSB 438

AN ACT ASSISTING COMMUNITY HEALTH CARE PROVIDERS.

SUMMARY

This bill modifies the criteria that physicians and physicians' offices must meet to qualify for financial assistance from the Small Business Express (EXP) program (see BACKGROUND).

Under current law, physicians and physicians' offices qualify for EXP under the same criteria as all other types of businesses. Specifically, they must (1) employ 100 or fewer people on at least 50% of working days in the previous 12 months, (2) be located in Connecticut, (3) have been registered to conduct business for at least 12 months, and (4) be in good standing with all state agencies and up-to-date on all state and local taxes.

Under the bill, in order to qualify for EXP, a physician must be (1) licensed and practice in the state and (2) in good standing with the Department of Public Health (DPH) and up-to-date on state and local taxes. A physician's office must (1) be located in the state, (2) employ 100 or fewer people on at least 50% of working days in the previous 12 months, and (3) be in good standing with DPH and up-to-date on state and local taxes. The effect of having different program eligibility criteria for physicians and physicians' offices is unclear.

The bill also requires the Department of Economic and Community Development (DECD) commissioner, in consultation with the Connecticut State Medical Society, to review the EXP application and screening process to ensure that the program facilitates participation by physicians and physicians' offices as the bill allows. If necessary, the commissioner must modify the program's application or process to promote physicians' and physicians' offices' participation in EXP. By January 1, 2018, DECD must report its findings and any proposed program modifications to the Commerce and Public Health committees.

EFFECTIVE DATE: October 1, 2017

BACKGROUND

Small Business Express Program

EXP provides eligible small businesses with financial assistance to pay for eligible expenses, including machinery and equipment purchases, construction or leasehold improvements, training expenses, and working capital. The program has three major components (a revolving loan fund, a job creation incentive component, and a matching grant component), and assistance amounts range from $10,000 to $300,000, depending on the component. The law generally requires DECD to prioritize applicants that are likely to create jobs or, in the case of the job creation component, award funding only to businesses that commit to creating and maintaining jobs (CGS § 32-7g).

Related Bill

sSB 820 (File 408), favorably reported by the Commerce Committee, similarly modifies EXP eligibility requirements for physicians and physicians' offices.

COMMITTEE ACTION

Public Health Committee

Joint Favorable

Yea

26

Nay

0

(03/24/2017)