Chapter 578 - Department of Economic and Community Development

History: P.A. 78-303 removed Sec. 4-60a as part of state commerce act; P.A. 79-631 removed Secs. 4-5, 4-24a, 10-321(a) and 36-322(a)(9) as part of state commerce act.

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Sec. 32-1b. Department of Economic and Community Development established. (a) There is established a Department of Economic and Community Development. The department head shall be the Commissioner of Economic and Community Development, who shall be appointed by the Governor in accordance with the provisions of sections 4-5 to 4-8, inclusive, with the powers and duties prescribed in said sections 4-5 to 4-8, inclusive.

(b) Except as provided in section 8-37r, said department shall constitute a successor department to the Department of Housing in accordance with the provisions of sections 4-38d, 4-38e and 4-39.

(c) Said department shall constitute a successor department to the Department of Economic Development in accordance with the provisions of sections 4-38d, 4-38e and 4-39.

(d) Whenever the term “Commissioner of Economic Development” is used or referred to in the general statutes, the term “Commissioner of Economic and Community Development” shall be substituted in lieu thereof. Whenever the term “Department of Economic Development” is used or referred to in the general statutes, the term “Department of Economic and Community Development” shall be substituted in lieu thereof.

(e) If the term “Commissioner of Housing” or “Commissioner of Economic Development” is used or referred to in any public or special act of 1995 or 1996, or in any section of the general statutes which is amended in 1995 or 1996, it shall be deemed to mean or refer to the “Commissioner of Economic and Community Development”.

(f) If the term “Department of Housing” or “Department of Economic Development” is used or referred to in any public or special act of 1995 or 1996, or in any section of the general statutes which is amended in 1995 or 1996, it shall be deemed to mean or refer to the “Department of Economic and Community Development”.

(P.A. 73-599, S. 2; P.A. 77-614, S. 284, 610; P.A. 95-250, S. 1, 42; P.A. 96-211, S. 1, 5, 6; June 12 Sp. Sess. P.A. 12-1, S. 114.)

History: P.A. 77-614 replaced commissioner and department of commerce with commissioner and department of economic development, effective January 1, 1979; P.A. 95-250 created the Department of Economic and Community Development from the former Department of Housing and the former Department of Economic Development and directed the necessary name changes be made throughout the general statutes and in the public and special acts of 1995 and 1996; P.A. 96-211 entirely replaced prior provisions substituting provisions establishing a Department of Economic and Community Development as successor department to the Department of Housing and the Department of Economic Development, and requiring use of terms “Department of Economic and Community Development” and “Commissioner of Economic and Community Development” to be used in general statutes and 1995 and 1996 public and special acts, effective July 1, 1996; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (b) by adding exception re Sec. 8-37r, deleted former Subsec. (d) re terms Commissioner and Department of Housing and redesignated existing Subsecs. (e), (f) and (g) as Subsecs. (d), (e) and (f), effective June 15, 2012.

See Sec. 8-37i re establishment and general scope of powers and duties of the department.

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Sec. 32-1c. Powers and duties of commissioner. (a) In addition to any other powers, duties and responsibilities provided for in this chapter, chapter 131, chapter 579 and section 4-8 and subsection (a) of section 10-409, the commissioner shall have the following powers, duties and responsibilities: (1) To administer and direct the operations of the Department of Economic and Community Development; (2) to report annually to the Governor, as provided in section 4-60; (3) to conduct and administer the research and planning functions necessary to carry out the purposes of said chapters and sections; (4) to encourage and promote the development of industry and business in the state and to investigate, study and undertake ways and means of promoting and encouraging the prosperous development and protection of the legitimate interest and welfare of Connecticut business, industry and commerce, within and outside the state; (5) to serve, ex officio as a director on the board of Connecticut Innovations, Incorporated; (6) to serve as a member of the Committee of Concern for Connecticut Jobs; (7) to promote and encourage the location and development of new business in the state as well as the maintenance and expansion of existing business and for that purpose to cooperate with state and local agencies and individuals both within and outside the state; (8) to plan and conduct a program of information and publicity designed to attract tourists, visitors and other interested persons from outside the state to this state and also to encourage and coordinate the efforts of other public and private organizations or groups of citizens to publicize the facilities and attractions of the state for the same purposes; (9) to advise and cooperate with municipalities, persons and local planning agencies within the state for the purpose of promoting coordination between the state and such municipalities as to plans and development; (10) by reallocating funding from other agency accounts or programs, to assign adequate and available staff to provide technical assistance to businesses in the state in exporting, manufacturing and cluster-based initiatives and to provide guidance and advice on regulatory matters; (11) to aid minority businesses in their development; (12) to appoint such assistants, experts, technicians and clerical staff, subject to the provisions of chapter 67, as are necessary to carry out the purposes of said chapters and sections; (13) to employ other consultants and assistants on a contract or other basis for rendering financial, technical or other assistance and advice; (14) to acquire or lease facilities located outside the state subject to the provisions of section 4b-23; (15) to advise and inform municipal officials concerning economic development and collect and disseminate information pertaining thereto, including information about federal, state and private assistance programs and services pertaining thereto; (16) to inquire into the utilization of state government resources and coordinate federal and state activities for assistance in and solution of problems of economic development and to inform and advise the Governor about and propose legislation concerning such problems; (17) to conduct, encourage and maintain research and studies relating to industrial and commercial development; (18) to prepare and review model ordinances and charters relating to these areas; (19) to maintain an inventory of data and information and act as a clearinghouse and referral agency for information on state and federal programs and services relative to the purpose set forth herein. The inventory shall include information on all federal programs of financial assistance for defense conversion projects and other projects consistent with a defense conversion strategy and shall identify businesses which would be eligible for such assistance and provide notification to such business of such programs; (20) to conduct, encourage and maintain research and studies and advise municipal officials about forms of cooperation between public and private agencies designed to advance economic development; (21) to promote and assist the formation of municipal and other agencies appropriate to the purposes of this chapter; (22) to require notice of the submission of all applications by municipalities and any agency thereof for federal and state financial assistance for economic development programs as relate to the purposes of this chapter; (23) with the approval of the Commissioner of Administrative Services, to reimburse any employee of the department, including the commissioner, for reasonable business expenses, including but not limited to, mileage, travel, lodging, and entertainment of business prospects and other persons to the extent necessary or advisable to carry out the purposes of subdivisions (4), (7), (8) and (11) of this subsection and other provisions of this chapter; (24) to assist in resolving solid waste management issues; (25) (A) to serve as an information clearinghouse for various public and private programs available to assist businesses, (B) to identify specific micro businesses, as defined in section 32-344, whose growth and success could benefit from state or private assistance and contact such small businesses in order to (i) identify their needs, (ii) provide information about public and private programs for meeting such needs, including, but not limited to, technical assistance, job training and financial assistance, and (iii) arrange for the provision of such assistance to such businesses; (26) to enhance and promote the digital media and motion picture industries in the state; (27) by reallocating funding from other agency accounts or programs, to develop a marketing campaign that promotes Connecticut as a place of innovation; and (28) by reallocating funding from other agency accounts or programs, to execute the steps necessary to implement the knowledge corridor agreement with Massachusetts to promote the biomedical device industry.

(b) The Commissioner of Economic and Community Development may make available technical and financial assistance and advisory services to any appropriate agency, authority, commission or council for planning and other functions pertinent to economic development provided any financial assistance to a regional council of governments shall have the prior approval of the Secretary of the Office of Policy and Management or his designee. Financial assistance shall be rendered upon such contractual arrangements as may be agreed upon by the commissioner and any such agency, authority, commission or council in accordance with their respective needs, and the commissioner may determine the qualifications of personnel or consultants to be engaged for such assistance.

(c) The Commissioner of Economic and Community Development shall do all things necessary to apply for, qualify for and accept any federal funds made available or allotted under any federal act for planning or any other projects, programs or activities which may be established by federal law, for any of the purposes, or activities related thereto, of the Department of Economic and Community Development and said Commissioner of Economic and Community Development shall administer any such funds allotted to the department in accordance with federal law. The commissioner may enter into contracts with the federal government concerning the use and repayment of such funds under any such federal act, the prosecution of the work under any such contract and the establishment of any disbursement from a separate account in which federal and state funds estimated to be required for plan preparation or other eligible activities under such federal act shall be kept. Said account shall not be a part of the General Fund of the state or any subdivision of the state. The commissioner shall report on activities to apply for, qualify for and accept funds under this subsection in its annual report submitted pursuant to section 32-1m.

(d) The Commissioner of Economic and Community Development may designate any deputy commissioner or employee of the department to exercise the authority of the commissioner for the purpose of administering any statutory or regulatory responsibility.

(e) The powers and duties enumerated in this section shall be in addition to and shall not limit any other powers or duties of the Commissioner of Economic and Community Development contained in any other law.

(P.A. 73-599, S. 3; P.A. 75-425, S. 43, 57; P.A. 77-614, S. 284, 610; P.A. 78-303, S. 105, 136; P.A. 79-598, S. 23; P.A. 80-483, S. 97, 186; P.A. 84-512, S. 16, 30; P.A. 86-258, S. 7, 8; P.A. 88-231, S. 5; P.A. 89-245, S. 4; May Sp. Sess. P.A. 92-4, S. 1, 5; P.A. 95-250, S. 1, 37, 42; 95-309, S. 11, 12; P.A. 96-211, S. 1, 5, 6; Nov. 24 Sp. Sess. P.A. 08-1, S. 15; P.A. 09-234, S. 5; Sept. Sp. Sess. P.A. 09-7, S. 61; P.A. 10-75, S. 17; June 12 Sp. Sess. P.A. 12-1, S. 154; P.A. 13-247, S. 304; P.A. 14-35, S. 3.)

History: P.A. 75-425 specified that duties cited in Subdivs. (10) and (14) are subject to provisions of Sec. 4-26b; P.A. 77-614 replaced commissioner and department of commerce with commissioner and department of economic development, effective January 1, 1979; P.A. 78-303 deleted reference to Sec. 4-60a; P.A. 79-598 deleted reference to Sec. 4-5, added references to Sec. 4-8 and chapter 131, expanded commissioner's duties by adding Subdivs. (15) to (22) and Subsecs. (b) to (d); P.A. 80-483 made technical corrections in Subsec. (a); P.A. 84-512 deleted reference to repealed Sec. 4-24a in Subsec. (a), adding reference to Sec. 4-8; P.A. 86-258 added Subsec. (a)(23) re reimbursement for reasonable business expenses; P.A. 88-231 added Subsec.(a)(24) concerning resolution of solid waste management issues; P.A. 89-245 amended Subsec. (a) to rename Connecticut Product Development Corporation as Connecticut Innovations, Incorporated; May Sp. Sess. P.A. 92-4 amended Subsec. (a)(13) by adding provision re certain contracts implementing Connecticut economic information system and adding Subdiv. (25) re development and implementation of said system; (Revisor's note: In 1993 the obsolete reference in Subsec. (a) to repealed Sec. 36-322 was deleted editorially by the Revisors and the wording adjusted accordingly); P.A. 95-250 and P.A. 96-211 substituted Department and Commissioner of Economic and Community Development for Department and Commissioner of Economic Development and P.A. 95-250 also amended Subsec. (a)(19) to require the inventory to include information on all federal defense conversion projects, identify eligible businesses and provide notification to such businesses, effective July 1, 1995; P.A. 95-309 changed effective date of P.A. 95-250 but did not affect this section; Nov. 24 Sp. Sess. P.A. 08-1 amended Subsec. (a) by adding Subdiv. (26) re information clearinghouse for public and private business assistance programs and re identifying and contacting micro businesses, effective January 1, 2009; P.A. 09-234 amended Subsec. (a) to delete provision re implementing the Connecticut economic information system in Subdiv. (13), delete former Subdiv. (25) re the Connecticut economic information system and redesignate existing Subdiv. (26) as Subdiv. (25), effective July 9, 2009; Sept. Sp. Sess. P.A. 09-7 amended Subsec. (a) by adding Subdiv. (26) re enhancing and promoting digital media and motion picture industries, effective October 5, 2009; P.A. 10-75 amended Subsec. (a) by adding new Subdiv. (10) re exporting, manufacturing, cluster-based initiatives and regulatory matters, redesignating existing Subdivs. (10) to (26) as Subdivs. (11) to (27) and adding Subdiv. (28) re marketing campaign and Subdiv. (29) re knowledge corridor and amended Subsec. (c) to require commissioner to apply for, qualify for and accept federal funds and to report on such activities, effective July 1, 2010; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (a) by deleting former Subdiv. (11) re Connecticut Development Authority and redesignating existing Subdivs. (12) to (29) as Subdivs. (11) to (28), effective July 1, 2012; P.A. 13-247 amended Subsec. (b) by deleting “regional planning agency or a regional council of elected officials”, adding “regional council of governments” and making conforming changes, effective January 1, 2015; P.A. 14-35 added new Subsec. (d) re power of commissioner to designate deputy commissioner or department employee to exercise authority of commissioner and redesignated existing Subsec. (d) as Subsec. (e).

See Secs. 8-37i, 32-1b re establishment and general scope and duties of the department.

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Sec. 32-1d. Deputy commissioner, appointment and functions. The commissioner shall appoint a Deputy Commissioner of Economic and Community Development who shall be qualified by training and experience for the duties of the office of commissioner and shall, in the absence, disability or disqualification of the commissioner, perform all the functions and have all the powers and duties of said office. In addition to any other powers, duties or responsibilities, the Deputy Commissioner of Economic and Community Development shall act as the state's primary point of contact for all state programs relating to the federal opportunity zone program, established pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 115-97. The position of the Deputy Commissioner of Economic and Community Development shall be exempt from the classified service.

(P.A. 73-599, S. 4; P.A. 77-614, S. 284, 610; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 19-54, S. 1.)

History: P.A. 77-614 replaced deputy commissioner of commerce with deputy commissioner of economic development, effective January 1, 1979; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 19-54 added provision re Deputy Commissioner to act as primary contact for state programs relating to federal opportunity zone program, effective July 1, 2019.

See Sec. 4-8 re appointment of deputies.

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Sec. 32-1e. Plan for support and promotion of industries using recycled materials. (a) The Commissioner of Economic and Community Development, in consultation with the Materials Innovation and Recycling Authority and the Commissioner of Energy and Environmental Protection, shall prepare a plan for the support and promotion of industries that use, process or transport recycled materials. The plan shall outline ways existing programs of the Department of Economic and Community Development, the Materials Innovation and Recycling Authority and agencies such as the Department of Energy and Environmental Protection and Connecticut Innovations, Incorporated will be used to promote such industries.

(b) Such plan shall be completed on or before July 1, 2007.

(P.A. 88-231, S. 6; P.A. 89-130, S. 3, 4; 89-245, S. 5; P.A. 93-382, S. 18, 69; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 06-27, S. 1; P.A. 11-80, S. 1; June 12 Sp. Sess. P.A. 12-1, S. 155; P.A. 14-94, S. 1.)

History: P.A. 89-130 extended time for completion of the plan from March 1, 1989, to July 1, 1989, and extended time for initial report to the municipal solid waste recycling advisory council from August 1, 1989, to December 1, 1989; P.A. 89-245 amended Subsec. (a) to rename Connecticut Product Development Corporation as Connecticut Innovations, Incorporated; P.A. 93-382 amended Subsec. (b) to delete requirement that reports be submitted to the environment committee, effective July 1, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 06-27 amended Subsec. (a) to add provisions re Connecticut Resources Recovery Authority, Commissioner and Department of Environmental Protection and Connecticut Development Authority, to delete provision re plan preparation deadline and update and to change provision re industries that use recycled materials to those that “use, process or transport recycled materials” and amended Subsec. (b) to extend time for completion of plan from July 1, 1989, to July 1, 2007, and to delete provision re implementation report, effective May 8, 2006; pursuant to P.A. 11-80, “Commissioner of Environmental Protection” and “Department of Environmental Protection” were changed editorially by the Revisors to “Commissioner of Energy and Environmental Protection” and “Department of Energy and Environmental Protection”, respectively, effective July 1, 2011; June 12 Sp. Sess. P.A. 12-1 deleted “the Connecticut Development Authority” in Subsec. (a), effective July 1, 2012; pursuant to P.A. 14-94, “Connecticut Resources Recovery Authority” was changed editorially by the Revisors to “Materials Innovation and Recycling Authority”, effective June 6, 2014.

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Secs. 32-1f (Formerly Sec. 16a-35b) and 32-1g. Duties of commissioner re Connecticut's future. Connecticut competitiveness index. Sections 32-1f and 32-1g are repealed, effective July 1, 2011.

(P.A. 84-512, S. 2, 30; P.A. 89-362, S. 1, 5; P.A. 93-210, S. 1, 3; 93-382, S. 9, 69; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 11-131, S. 5.)

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(P.A. 93-382, S. 1, 6, 7, 69; P.A. 95-250, S. 1, 38, 42; 95-309, S. 11, 12; P.A. 96-211, S. 1, 5, 6; P.A. 00-212, S. 3; P.A. 01-96, S. 1; P.A. 03-26, S. 1; 03-197, S. 1; P.A. 05-191, S. 12.)

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Sec. 32-1k. Definitions. As used in section 32-1l, the following terms shall have the following meanings unless the context clearly indicates another meaning and intent:

(1) “Department” means the Department of Economic and Community Development;

(2) “Commissioner” means the Commissioner of Economic and Community Development; and

(3) “CII” means Connecticut Innovations, Incorporated, as created under chapter 581.

(P.A. 95-250, S. 2, 42; 95-309, S. 11, 12; June 12 Sp. Sess. P.A. 12-1, S. 156; P.A. 13-234, S. 7.)

History: P.A. 95-309 changed effective date of P.A. 95-250 but did not affect this section; June 12 Sp. Sess. P.A. 12-1 deleted former Subdiv. (3) defining “CDA” and redesignated existing Subdivs. (4) to (6) as Subdivs. (3) to (5), effective July 1, 2012; P.A. 13-234 deleted references to Secs. 8-244b to 8-244d and “this section”, replaced definition of “CHFA” with definition of “CII” in Subsdiv. (3) and deleted former Subdiv. (4) re definition of “CII” and former Subdiv. (5) re definition of “SHE”, effective July 1, 2013.

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Sec. 32-1l. Powers. In addition to his other powers and duties, the commissioner shall have the following powers and duties:

(1) To utilize the department's resources for planning and developing an economic and community development reorganization plan which (A) sets forth policy goals for the department, (B) determines strategies to encourage economic and community development, (C) determines the feasibility of dividing the operation of programs and resources of the state in support of economic and community development between and among the department and CII, (D) identifies strategies to increase the leverage of resources of the state used in furtherance of the purposes of CII, (E) identifies, if feasible, divisions and recommends a timetable and procedures for transferring resources and operations between and among the department and CII, and (F) recommends specific economic and community development objectives and administrative structures for the department and CII. In developing such plan, the department shall be the lead agency, in collaboration with CII, for research, planning and development of the plan and shall solicit community and regional input in the preparation of such plan in such a manner as will best help develop, clarify or further state policies for economic and community development. The commissioner shall submit a copy of the reorganization plan to the joint standing committees of the General Assembly having cognizance of matters relating to commerce and planning and development;

(2) Notwithstanding the provisions of the general statutes or any special act and with the approval of the Treasurer and the Secretary of the Office of Policy and Management, to transfer to CII: (A) Any revenues received by the department or the state in connection with any program or project of the department and the right to receive any such revenues; and (B) any loan assets or equity interests held by the department in connection with any program or project of the department; provided, no such transfer shall be approved by the Treasurer or the Secretary of the Office of Policy and Management if either determines that such transfer could adversely affect the tax-exempt status of any bonds of the state, the substantial interests of third parties, the financial budget of the state or other essential rights, interests, or prerogatives of the state. The commissioner may impose such conditions as he deems necessary or appropriate with respect to the use by CII of any revenues, rights, assets, interests or amounts transferred to it by the department under this subdivision; provided, the commissioner may waive any requirement under this subdivision for the adoption of written procedures until July 1, 1996;

(3) To award to CII financial, technical or other assistance. Financial assistance awarded by the department to CII may take any of the following forms, subject to any conditions imposed by the department: (A) Grants; (B) loans; (C) guarantees; (D) contracts of insurance; and (E) investments. In addition, to the extent funds or resources are available to the department for such purposes, the commissioner may provide such further financial or other assistance to CII as the commissioner in his sole discretion deems appropriate for any of the purposes of CII respectively;

(4) To enter into such agreements with CII as may be appropriate for the purpose of performing its duties which agreements may include, but shall not be limited to, provisions for the delivery of services by CII to third parties, provisions for payment by the department to CII for the delivery of such services, provisions for advances and reimbursements to the department for any expenses incurred or to be incurred by it in delivery of any services, assistance, revenues, rights, assets and interests and provisions for the sharing with CII of assistants, agents and other consultants, professionals and employees, and facilities and other real and personal property used in the conduct of the department's affairs; and

(5) To provide financial assistance for economic development projects directly or in participation with Connecticut Innovations, Incorporated, to purchase participation interests in loans made by Connecticut Innovations, Incorporated and enter into any agreements or contracts it deems necessary or convenient in connection with such loans.

(P.A. 95-250, S. 3, 42; 95-309, S. 11, 12; P.A. 96-68, S. 1; P.A. 97-211, S. 2, 7; June 12 Sp. Sess. P.A. 12-1, S. 152; P.A. 13-234, S. 8.)

History: P.A. 95-309 changed effective date of P.A. 95-250 but did not affect this section (Revisor's note: In Subdiv. (4) numeric Subpara. indicators were replaced editorially by the Revisors with alphabetic indicators for consistency with customary statutory usage); P.A. 96-68 deleted Subdiv. (6) re establishment of separate bureaus of economic development and housing and community development; P.A. 97-211 added new Subdiv. (6) re financial assistance for economic development projects and participation of the commissioner in assistance provided by the Connecticut Development Authority, effective June 24, 1997; pursuant to June 12 Sp. Sess. P.A. 12-1, “Connecticut Development Authority” was changed editorially by the Revisors to “Connecticut Innovations, Incorporated” in Subdiv. (6), effective July 1, 2012 (Revisor's note: References to “CDA” were deleted editorially by the Revisors to conform with changes made by June 12 Sp. Sess. P.A. 12-1, S. 152, 156); P.A. 13-234 deleted references to “CHFA”, deleted reference to the provision of housing in this state in Subdiv. (1)(B), deleted former Subdiv. (2) re legislation and redesignated existing Subdivs. (3) to (6) as Subdivs. (2) to (5), effective July 1, 2013.

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Sec. 32-1m. Annual report. (a) Not later than February first, annually, the Commissioner of Economic and Community Development shall submit a report to the Governor, the Auditors of Public Accounts and the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies, finance, revenue and bonding and commerce, in accordance with the provisions of section 11-4a. Not later than thirty days after submission of the report, said commissioner shall post the report on the Department of Economic and Community Development's web site. Such report shall include, but not be limited to, the following information with regard to the activities of the Department of Economic and Community Development and to business assistance programs administered by Connecticut Innovations, Incorporated, during the preceding state fiscal year:

(1) A brief description and assessment of the state's economy during such year, utilizing the most recent and reasonably available data, and including:

(A) Connecticut employment by industry;

(B) Connecticut and national average unemployment; and

(2) An analysis of the economic development portfolio of the department, including, but not limited to, each business assistance or incentive program, including any business tax credit or abatement program, grant, loan, forgivable loan or other form of assistance, enacted for the purpose of improving economic development. The analysis shall include:

(A) The Internet web site address of the state's open data portal and an indication of where the name, address and location of each recipient of the department's assistance is published on the site along with the following information concerning each recipient: (i) Business activities, (ii) standard industrial classification codes or North American industrial classification codes, (iii) whether the recipient is a minority or woman-owned business, (iv) a summary of the terms and conditions for the assistance, including the type and amount of state financial assistance and job creation or retention requirements, (v) the amount of investments from private and other nonstate sources that have been leveraged by the assistance, and (vi) the amount of state investment;

(B) A portfolio analysis, including an analysis of the wages paid by recipients of financial assistance by industry;

(C) An investment analysis, including (i) total portfolio value, (ii) total investment by industry, (iii) portfolio dollar per job average, and (iv) portfolio leverage ratio;

(D) An overview of the business assistance and incentive programs administered by the department and an analysis of their estimated economic impact on the state's economy. The analysis shall include, for each business assistance or incentive program for which such data is available, the number of new jobs created, the borrowing cost to the state and the estimated impact of such program on annual state revenues;

(E) An analysis of whether the statutory and programmatic goals of each business or incentive program are being met, with obstacles to such goals identified, if possible;

(F) (i) Recommendations as to whether any existing business assistance or incentive program should be continued, modified or repealed and the basis or bases for such recommendations, and (ii) any recommendations for additional data collection by the state to better inform future evaluations of such programs; and

(G) The methodologies and assumptions used in carrying out the analyses under this subdivision.

(3) An analysis of the community development portfolio of the department, including:

(A) The Internet web site address of the state's open data portal and an indication of where the name, address and location of each recipient of the department's assistance is published on the site along with the following information concerning each recipient: (i) Amount of state investment, (ii) a summary of the terms and conditions for the department's assistance, including the type and amount of state financial assistance, and (iii) the amount of investments from private and other nonstate sources that have been leveraged by such assistance; and

(B) An investment analysis, including (i) total active portfolio value, (ii) total investments made in the preceding state fiscal year, and (iii) total portfolio leverage ratio.

(4) An analysis of each business assistance or incentive program, including any business tax credit or abatement program, grant, loan, forgivable loan or other form of assistance, enacted for the purpose of improving economic development, that (A) (i) had ten or more recipients of assistance in the preceding state fiscal year, or (ii) credited, abated or distributed more than one million dollars in the preceding state fiscal year, and (B) is administered by the department or Connecticut Innovations, Incorporated. The analysis shall include:

(i) An overview of the business assistance or incentive program and an analysis of its estimated economic effects on the state's economy, including, for each program where such data is available, the number of new jobs created and the estimated impact of such program on annual state revenues;

(ii) An analysis of whether the statutory and programmatic goals of each business assistance or incentive program are being met, with obstacles to such goals identified, if possible;

(iii) Recommendations as to whether any such existing business assistance or incentive program should be continued, modified or repealed and the basis or bases for such recommendations, and any recommendations for additional data collection by the state to better inform future evaluations of such programs; and

(iv) The methodologies and assumptions used in carrying out the analysis under this subdivision.

(5) A summary of the department's international trade efforts in the preceding state fiscal year, and, to the extent possible, a summary of foreign direct investment that occurred in the state in such year.

(6) A summary of the total social and economic impact of the department's efforts and activities in the areas of economic and community development, and an assessment of the department's performance in terms of meeting its stated goals and objectives.

(7) With regard to the Small Business Express program established pursuant to section 32-7g, data on (A) the number of small businesses that received assistance under said program and the general categories of such businesses, (B) the amounts and types of assistance provided, (C) the total number of jobs on the date of application and the number proposed to be created or retained, (D) the most recent employment figures of the small businesses receiving assistance, (E) the default rate of small businesses that received assistance under said program, and (F) the progress of the lenders participating in said program in becoming self-sustainable.

(8) With regard to airport development zones established pursuant to section 32-75d, a summary of the economic and cost benefits of each zone and any recommended revisions to any such zones.

(9) An overview of the department's activities related to tourism, the arts and historic preservation.

(10) An overview of the department's activities concerning digital media, motion pictures and related production activity, and an analysis of the use of the film production tax credit established under section 12-217jj, the entertainment industry infrastructure tax credit established under section 12-217kk and the digital animation production tax credit established under section 12-217ll, including the amount of any tax credit issued under said sections and the total amount of production expenses or costs incurred in the state by the taxpayer who was issued such a tax credit.

(11) A summary of the department's and the office of the permit ombudsman's brownfield-related efforts and activities in the preceding fiscal year.

(12) A summary of the department's dry cleaning establishment remediation account activities in the preceding fiscal year.

(b) Any annual report that is required from the department by any provision of the general statutes shall be incorporated into the annual report submitted pursuant to subsection (a) of this section.

(c) On or before April 1, 2022, and annually thereafter, the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies, finance, revenue and bonding and commerce shall hold, individually or jointly, one or more public hearings on the analyses included in the annual report under subdivisions (2), (4) and (7) of subsection (a) of this section.

(P.A. 05-191, S. 1; P.A. 06-184, S. 2; 06-196, S. 265; P.A. 07-171, S. 1; P.A. 09-233, S. 1; 09-234, S. 8; P.A. 10-75, S. 31; 10-158, S. 12; Oct. Sp. Sess. P.A. 11-1, S. 3; P.A. 13-234, S. 54; 13-308, S. 22; P.A. 14-26, S. 1; P.A. 15-192, S. 3; P.A. 17-219, S. 4; 17-226, S.1; P.A. 18-122, S. 2; P.A. 21-193, S. 14; June Sp. Sess. P.A. 21-2, S. 286; P.A. 22-50, S. 4; 22-118, S. 157.)

History: P.A. 06-184 amended Subdiv. (8) by making a technical change and adding reference to Office of Brownfield Remediation and Development and summary requirement re “tracking of all funds administered through or by said office” and made technical changes in Subdiv. (12)(B), effective July 1, 2006; P.A. 06-196 made technical changes in Subdiv. (12)(B), effective June 7, 2006; P.A. 07-171 designated existing provisions as Subsec. (a), amended Subsec. (a) by deleting “at application” in Subdiv. (3)(B)(iv), requiring notice of amount of bond funds expended in Subdiv. (7), adding Subdiv. (8)(C) re information on dry cleaning grant program, adding new Subdiv. (10)(B) re assessment of rental assistance needs, adding new Subdiv. (14) re Housing Trust Fund and making technical changes, and added Subsec. (b) re inclusion of all required department reports in annual report; P.A. 09-233 amended Subsec. (a) by adding new Subdiv. (1)(G) re Connecticut's competitiveness as a place for business, redesignating existing Subdiv. (1)(G) as Subdiv. (1)(H) and adding provisions, codified by the Revisors as Subdivs. (18) and (19), re biodiesel producer incentive account grant program and fuel diversification grant program, effective July 1, 2009; P.A. 09-234 amended Subsec. (a) by adding new Subdivs. (10) and (11) re qualified biodiesel grant and fuel diversification programs and redesignating existing Subdivs. (10) to (15) as Subdivs. (12) to (17), with existing Subdiv. (16) having been redesignated by the Revisors as Subdiv. (20), effective July 1, 2009; P.A. 10-75 added Subsec. (a)(21) re Connecticut Credit Consortium, effective July 1, 2010; P.A. 10-158 amended Subsec. (a) to add provisions, codified by the Revisors as Subdiv. (22), re office of permit ombudsman; Oct. Sp. Sess. P.A. 11-1 amended Subsec. (a) to add Subdivs. (23) re Small Business Express program and (24) re airport development zones, effective October 27, 2011; P.A. 13-234 amended Subsec. (a) by deleting former Subdivs. (12) to (17) re housing development and redesignating existing Subdivs. (18) to (24) as Subdivs. (12) to (18), effective July 1, 2013; P.A. 13-308 made a technical change in Subsec. (a)(8), effective July 1, 2013; P.A. 14-26 amended Subsec. (a)(14) to delete requirement that report include summary of social and economic impact re efforts and activities concerning housing development; P.A. 15-192 amended Subsec. (a)(18) to delete provision re consultation with Connecticut Airport Authority, effective July 2, 2015; P.A. 17-219 substantially amended subsection (a) including by replacing provision re submission of report to Governor and General Assembly with provision re submission of report to Governor, Auditors of Public Accounts, and Appropriations, Finance, Revenue and Bonding and Commerce Committees, adding provision re reporting on business assistance or incentive programs not administered by department, deleting former Subdiv. (2) and redesignating existing Subdivs. (3) and (4) as new Subdivs. (2) and (3), amending redesignated Subdiv. (2) by adding provisions re analysis of economic development portfolio to include Internet web site address of state's open data portal, overview of business assistance and incentive programs administered by department, number of new jobs created, borrowing cost, estimated impact of program on state revenues, whether goals of program are being met, recommendations whether any program should be continued, modified or repealed, recommendations for additional data collection, and methodologies and assumptions used in carrying out analyses, amending redesignated Subdiv. (3) by adding provision re analysis of community development portfolio to include Internet web site address of state's open data portal, and deleting provision re estimated economic effects of department's economic development investments on state's economy, adding new Subdiv. (4) re analysis of business assistance or incentive program, deleting former Subdiv. (5), redesignating existing Subdiv. (6) as new Subdiv. (5), deleting former Subdivs. (7) to (13), redesignating existing Subdiv. (14) as new Subdiv. (6), deleting Subdivs. (15) and (16), redesignating existing Subdivs. (17) and (18) as new Subdiv. (7) and (8), and adding new Subdivs. (9) to (12), amended Subsec. (b) by replacing “provided” with “submitted”, and added Subsec. (c) re public hearings on analyses included in report, and made technical and conforming changes, effective July 11, 2017; P.A. 17-226 amended subsection (a) by replacing provision re submission of report to Governor and General Assembly with provision re submission of report to Governor, Auditors of Public Accounts, and Appropriations, Finance, Revenue and Bonding and Commerce Committees, adding provision re reporting on business assistance or incentive programs not administered by department, amending Subdiv. (3) by adding provisions re analysis of community development portfolio to include each business assistance or incentive program enacted for purpose of improving economic development, number of new jobs created, borrowing cost, estimated impact of program on state revenues, whether goals of program are being met, recommendations whether any program should be continued, modified or repealed, recommendations for additional data collection, and methodologies and assumptions used in carrying out analyses, adding Subdiv. (5) re analysis of each assistance or incentive program enacted for purpose of improving economic development, redesignating existing Subdivs. (5) to (18) as new Subdivs. (6) to (19), amended Subsec. (b) by replacing “provided” with “submitted”, and added Subsec. (c) re public hearings on analyses included in report, and made technical and conforming changes, effective July 11, 2017; P.A. 18-122 amended Subsec. (c) by replacing reference to Subdiv. (3) with reference to Subdiv. (2) and replacing reference to Subdiv. (5) with reference to Subdiv. (4), effective June 7, 2018; P.A. 21-193 amended Subsec. (a) by replacing “or incentive programs not administered by the department,” with “programs administered by Connecticut Innovations, Incorporated,” re report, and deleting “not” and adding “or Connecticut Innovations, Incorporated” in Subdiv. (4)(B) and amended Subsec. (c) by replacing “On or before March 1, 2018, and annually thereafter” with “Not later than sixty days after the submission of a report by the Auditors of Public Accounts pursuant to section 2-90c,” and adding “such report and” re hearing, effective July 13, 2021; June Sp. Sess. P.A. 21-2 amended Subsec. (a)(7) by deleting former Subpara. (A), redesignating existing Subparas. (B) to (E) as Subparas. (A) to (D) and adding new Subpara. (E) re default rate of businesses that receive assistance and Subpara.(F) re progress of lenders in becoming self-sustainable and amended Subsec. (c) by replacing “Not later than sixty days after the submission of a report by the Auditors of Public Accounts pursuant to section 2-90c” with “On or before April 1, 2022, and annually thereafter”, deleting provision re public hearing on report, adding reference to Subsec. (a)(7) and making a conforming change, effective June 23, 2021; P.A. 22-50 amended Subsec. (a)(2)(C) by adding “and” before “(iv)”; P.A. 22-118 made an identical change as P.A. 22-50.

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Sec. 32-1n. Reports re funding for economic and industry cluster initiatives. Section 32-1n is repealed, effective July 1, 2011.

(P.A. 05-276, S. 1; P.A. 11-131, S. 5.)

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Sec. 32-1o. State economic strategic plan. (a) On or before July 1, 2015, and every four years thereafter, the Commissioner of Economic and Community Development, within available appropriations, shall prepare an economic development strategic plan for the state in consultation with the Secretary of the Office of Policy and Management, the Commissioners of Energy and Environmental Protection and Transportation, the Labor Commissioner,the executive directors of the Connecticut Housing Finance Authority and the Connecticut Health and Educational Facilities Authority, and the chief executive officer of Connecticut Innovations, Incorporated, or their respective designees, and any other agencies the Commissioner of Economic and Community Development deems appropriate.

(b) In developing the plan, the Commissioner of Economic and Community Development shall:

(1) Ensure that the plan is consistent with (A) the text and locational guide map of the state plan of conservation and development adopted pursuant to chapter 297, and (B) the state's consolidated plan for housing and community development prepared pursuant to section 8-37t;

(2) Consult regional councils of governments, regional planning organizations, regional economic development agencies, interested state and local officials, entities involved in economic and community development, stakeholders and business, economic, labor, community and housing organizations;

(3) Consider (A) regional economic, community and housing development plans, and (B) applicable state and local workforce investment strategies;

(4) Assess and evaluate the economic development challenges and opportunities of the state and against the economic development competitiveness of other states and regions; and

(5) Host regional forums to provide for public involvement in the planning process.

(1) A review and evaluation of the economy of the state, including its strengths;

(2) A review and analysis of factors, issues and forces that impact or impede economic development and responsible growth in Connecticut and its constituent regions;

(3) An analysis of targeted industry sectors in the state that (A) identifies those industry sectors that are of current or future importance to the growth of the state's economy and to its global competitive position, (B) identifies what those industry sectors need for continued growth, and (C) identifies those industry sectors' current and potential impediments to growth;

(4) Establishment and articulation of a vision for Connecticut that identifies where the state should be in the future;

(5) Establishment of prioritized, clear and measurable goals and objectives for the state and regions and clear steps and strategies to achieve said goals and objectives, which may include, but shall not be limited to: (A) The promotion of economic development and opportunity, (B) the fostering of effective transportation access and choice including the use of airports and ports for economic development, (C) enhancement and protection of the environment, (D) maximization of the effective development and use of the workforce consistent with applicable state or local workforce investment strategy, (E) promotion of the use of technology in economic development, including access to high-speed telecommunications, and (F) the balance of resources through sound management of physical development;

(6) Establishment of relevant measures that clearly identify and quantify (A) whether a goal and objective is being met at the state, regional, local and private sector level, and (B) cause and effect relationships, and provide a clear and replicable measurement methodology;

(7) Recommendations on how the state can best achieve goals under the strategic plan; and

(8) Any other responsible growth information that the commissioner deems appropriate.

(d) On or before July 1, 2019, and every four years thereafter, the Commissioner of Economic and Community Development shall submit the economic development strategic plan for the state to the Governor for approval. The Governor shall review and approve or disapprove such plan not more than sixty days after submission. The plan shall be effective upon approval by the Governor or sixty days after the date of submission.

(e) Upon approval, the commissioner shall submit the economic development strategic plan to the joint standing committees of the General Assembly having cognizance of matters relating to commerce, planning and development, appropriations and the budgets of state agencies and finance, revenue and bonding. Not later than thirty days after such submission, the commissioner shall post the plan on the web site of the Department of Economic and Community Development.

(f) The commissioner, from time to time, may revise and update the strategic plan upon approval of the Governor. The commissioner shall post any such revisions on the web site of the Department of Economic and Community Development.

(P.A. 07-239, S. 4; P.A. 09-234, S. 2; P.A. 10-32, S. 107; P.A. 11-48, S. 96; 11-61, S. 28; 11-80, S. 86; 11-124, S. 8; 11-140, S. 23; June 12 Sp. Sess. P.A. 12-1, S. 157; P.A. 13-247, S. 71; P.A. 14-79, S. 3; P.A. 17-219, S. 9; P.A. 21-193, S. 12.)

History: P.A. 07-239 effective July 11, 2007; P.A. 09-234 amended Subsec. (c) by adding new Subdiv. (11) re review and evaluation of urban jobs program, enterprise zones, railroad depot zones, qualified manufacturing plants, entertainment districts and enterprise corridor zones, and redesignating existing Subdiv. (11) as Subdiv. (12), effective July 1, 2009; P.A. 10-32 made technical changes in Subsecs. (a), (b)(1) and (c)(1), (4) and (9), effective May 10, 2010; P.A. 11-48 amended Subsec. (a) by deleting references to executive director of Commission on Culture and Tourism and president of Office of Workforce Competitiveness and inserting reference to chairperson of Culture and Tourism Advisory Committee, effective July 1, 2011; P.A. 11-61 amended Subsec. (b)(1) to delete former Subpara. (C) re transportation strategy adopted pursuant to Sec. 13b-57g, effective July 1, 2011; P.A. 11-80 amended Subsec. (a) to replace “Commissioner of Environmental Protection” with “Commissioner of Energy and Environmental Protection”, effective July 1, 2011; P.A. 11-124 amended Subsec. (b)(1) by replacing “long-range state housing plan adopted” with “state's consolidated plan for housing and community development prepared”; P.A. 11-140 amended Subsec. (c) by adding new Subdiv. (12) re development, research and economic assistance matching grant program and redesignating existing Subdiv. (12) as Subdiv. (13), effective July 1, 2011; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (a) to delete “the Connecticut Development Authority”, effective July 1, 2012; P.A. 13-247 amended Subsec. (a) by replacing “2009” with “2015”, changing plan preparation from every 5 years to every 4 years and changing “economic strategic plan” to “economic development strategic plan”, effective July 1, 2013; P.A. 14-79 amended Subsec. (a) by replacing reference to executive director of Connecticut Innovations, Incorporated, with reference to chief executive officer of Connecticut Innovations, Incorporated, effective June 3, 2014; P.A. 17-219 amended Subsec. (c) by deleting provision re analyses to be included in plan and adding “including its strengths” in Subdiv. (1), deleting provision re factors issues or forces in Subdiv. (2), deleting former Subdiv. (3) re identification and analysis of economic clusters and redesignating existing Subdiv. (4) as new Subdiv. (3), deleting former Subdiv. (5) re review and evaluation of economic development structure in the state, redesignating existing Subdiv. (6) as new Subdiv. (4) and amending same by replacing “five, ten, fifteen and twenty years” with “the future”, redesignating existing Subdiv. (7) as new Subdiv. (5) and amending same by adding “prioritized”, replacing “, to meet the short and long-term goals established under this section and provide” with “and” and replacing “including, but not limited to, the following” with “which may include, but shall not be limited to”, deleting former Subdiv. (8) re prioritization of goals and objectives and redesignating existing Subdiv. (9) as new Subdiv. (6), redesignating existing Subdiv. (10) as new Subdiv. (7) and amending same by deleting provision re cost estimates for implementation of plan, deleting former Subdiv. (11) re review and evaluation of urban jobs program and deleting former Subdiv. (12) re assessment of economic assistance matching grant program, redesignating existing Subdiv. (13) as new Subdiv. (8), amended Subsec. (d) by replacing “July 1, 2009, and every five years thereafter” with “July 1, 2019, and every four years thereafter”, and made technical and conforming changes; P.A. 21-193 amended Subsec. (a) by deleting reference to chairperson of the Culture and Tourism Advisory Committee, effective July 13, 2021.

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Sec. 32-1p. Powers and duties re digital media and motion picture activities. With respect to digital media and motion picture activities, the Department of Economic and Community Development shall have the following powers and duties:

(1) To promote the use of Connecticut locations, structures, facilities and services for the production and postproduction of all digital media and motion pictures and other media-related products;

(2) To provide support services to visiting and in-state production companies, including assistance to digital media and motion picture producers in securing permits from state agencies, authorities or institutions or municipalities or other political subdivisions of the state;

(3) To develop and update a resource library concerning the many possible state sites which are suitable for production;

(4) To develop and update a production manual of available digital media and motion picture production facilities and services in the state;

(5) To conduct and attend trade shows and production workshops to promote Connecticut locations and facilities;

(6) To prepare an explanatory guide showing the impact of relevant state and municipal tax statutes, regulations and administrative opinions on typical production activities and to implement the tax credits provided for in sections 12-217jj, 12-217kk and 12-217ll;

(7) To formulate and propose guidelines for state agencies for a “one stop permitting” process for matters, including, but not limited to, the use of state roads and highways, the use of state-owned real or personal property for production activities and the conduct of regulated activities, and to hold workshops to assist state agencies in implementing such process;

(8) To formulate and recommend to municipalities model local ordinances and forms to assist production activities, including, but not limited to, “one stop permitting” of digital media and motion picture and other production activity to be conducted in a municipality, and to hold workshops to assist municipalities in implementing such ordinances;

(9) To accept any funds, gifts, donations, bequests or grants of funds from private and public sources for the purposes of this section;

(10) To request and obtain from any state agency, authority or institution or any municipality or other political subdivision of the state such assistance and data as will enable the department to carry out the purposes of this section;

(11) To assist and promote cooperation among all segments of management and labor that are engaged in digital media and motion pictures; and

(12) To take any other administrative action which may improve the position of the state's digital media and motion picture production industries in national and international markets.

(June Sp. Sess. P.A. 09-3, S. 100; P.A. 17-219, S. 8.)

History: June Sp. Sess. P.A. 09-3 effective September 9, 2009; P.A. 17-219 deleted former Subsec. (b) re annual report and deleted Subsec. (a) designator.

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Sec. 32-1q. Notification to department of digital media or motion picture-related requests for proposals issued by a state agency. Notwithstanding any provision of the general statutes, each state agency, department or institution issuing a request for proposals for any digital media, motion picture or related production activity shall, at the time of such issuance, transmit a copy of such request for proposals to the Department of Economic and Community Development. Said department shall notify the executive head of each state agency of the requirements of this section.

(June Sp. Sess. P.A. 09-3, S. 101.)

History: June Sp. Sess. P.A. 09-3 effective September 9, 2009.

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Sec. 32-1r. Report on business tax credit and abatement programs. Section 32-1r is repealed, effective July 11, 2017.

(June Sp. Sess. P.A. 10-1, S. 27; P.A. 17-219, S. 13; P.A. 17-226, S. 3.)

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Sec. 32-1s. Powers and duties re culture and tourism. (a) On and after July 1, 2011, the Department of Economic and Community Development shall assume all responsibilities of the Connecticut Commission on Culture and Tourism pursuant to any provision of the general statutes. The transfer of functions, powers, duties, personnel and obligations, including, but not limited to, contract obligations, the continuance of orders and regulations, the effect upon pending actions and proceedings, the completion of unfinished business, and the transfer of records and property between the Connecticut Commission on Culture and Tourism, as said department existed immediately prior to July 1, 2011, and the Department of Economic and Community Development shall be governed by the provisions of sections 4-38d, 4-38e and 4-39.

(b) Any order or regulation of the Connecticut Commission on Culture and Tourism, which is in force on July 1, 2011, shall continue in force and effect as an order or regulation of the Department of Economic and Community Development until amended, repealed or superseded pursuant to law. Where any order or regulation of said commission or said department conflicts, the Commissioner of Economic and Community Development may implement policies and procedures consistent with the provisions of this section and sections 3-110f, 3-110h, 3-110i, 4-9a, 4-66aa, 4-89, 4b-53, 4b-60, 4b-64, 4b-66a, 5-198, 7-147a, 7-147b, 7-147c, 7-147j, 7-147p, 7-147q, 7-147y, 8-37lll, 10-382, 10-384, 10-385, 10-386, 10-387, 10-388, 10-389, 10-391, 10-392,10-394, 10-395, 10-396, 10-397, 10-397a, 10-399, 10-400, 10-401, 10-402, 10-403, 10-404, 10-405, 10-406, 10-408, 10-409, 10-410, 10-411, 10-412, 10-413, 10-414, 10-415, 10-416, 10-416a, 10-416b,10a-111a, 10a-112, 10a-112b, 10a-112g, 11-6a, 12-376d, 13a-252, 19a-315b, 19a-315c, 22a-1d, 22a-19b, 22a-27s, 29-259,32-11a and 32-35 while in the process of adopting the policy or procedure in regulation form, provided notice of intention to adopt regulations is printed in the Connecticut Law Journal not later than twenty days after implementation. The policy or procedure shall be valid until the time final regulations are effective.

(P.A. 11-48, S. 78; P.A. 13-299, S. 23; P.A. 21-193, S. 24.)

History: P.A. 11-48 effective July 1, 2011; P.A. 13-299 deleted former Subsecs. (b) and (c) re substitution of terms for Connecticut Commission on Culture and Tourism, redesignated existing Subsec. (d) as Subsec. (b) and amended same to delete reference to Secs. 25-102qq and 25-109q and deleted former Subsec. (e) re the Legislative Commissioners' Office to make necessary technical changes, effective July 1, 2013; P.A. 21-193 amended Subsec. (b) by deleting references to Secs. 10-393, 10-425 and 32-6a, effective July 13, 2021.

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Sec. 32-1t. Registry of small business concerns owned and controlled by veterans. Annual report. Section 32-1t is repealed, effective July 13, 2021.

(P.A. 13-247, S. 134; P.A. 14-122, S. 150; P.A. 21-193, S. 26.)

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Sec. 32-1u. Permits for filming on state-owned property. Insurance. Liability. Coordination with state agencies, authorities and institutions. (a) The Department of Economic and Community Development, through its Office of Film, Television and Digital Media, shall serve as a state-wide point of contact for all producers of film, television and digital media productions requesting permission to (1) conduct film production activities on state-owned property, including, but not limited to, all state roads and highways, railroads and train stations, state forests and parks, airports and seaports, hospitals and all campuses of the public institutions of higher education in the state; and (2) use any other state-owned real or personal property, except courthouses and judicial branch facilities, for such purposes.

(b) The Commissioner of Economic and Community Development may issue a state film permit, on a form designated by the commissioner, to any person seeking to conduct film production activities on such state-owned property. Such permit shall specify the insurance coverage that the permittee shall be required to obtain, as determined by the commissioner in consultation with the state's Director of Insurance and Risk Management, with the state named as an additional insured. No liability shall accrue to the state or any agency or employee of the state for any injuries or damages to any person or property that may result, either directly or indirectly, from such film production activities of the permittee on such state-owned property.

(c) A state film permit shall identify the person requesting permission to conduct film production activities on state property and indicate that the permittee has provided documentation to the Department of Economic and Community Development substantiating the permittee's ability to conduct indemnified film production activities. Any permittee seeking permission to conduct film production activities on property controlled by a state agency, authority or institution shall present such permit to such agency, authority or institution when the permittee requests such permission. Following the presentment of such permit by a permittee, such state agency, authority or institution may authorize film production activities by the permittee on such property.

(d) The Commissioner of Economic and Community Development, pursuant to section 32-1p, shall establish guidelines to be used in working with state agencies, authorities or institutions to implement the provisions of this section. Such guidelines shall include, but not be limited to: (1) An agency contact at the Office of Film, Television and Digital Media for filing permit applications and for obtaining information on permit requirements; (2) identification of each individual within each respective state agency who shall be a point of contact for an agency permit application; (3) a mandatory preapplication review process to reduce permitting issues or conflicts by providing guidance to applicants on (A) information required for authorization or permit approval from the relevant state agencies, authorities or institutions, (B) specifications for desired on-site production and production-related activities, site suitability and limitations, and (C) steps the applicant can take to ensure expeditious permit application; (4) a single, coordinated production activity description form, including an equipment checklist and personnel roster; (5) a process by which the Office of Film, Television and Digital Media may forward permit applications to other relevant state agencies, authorities or institutions on behalf of an applicant; and (6) at the commissioner's discretion, a permit fee structure.

(e) The Office of Film, Television and Digital Media, at the request of the Commissioner of Economic and Community Development, may request the assistance of any other agency, authority or institution of the state to assist in providing information and assistance as may be necessary to expedite such office's duties and responsibilities under this section. Each officer or employee of such other agency, authority or institution of the state shall make reasonable efforts to cooperate with the Office of Film, Television and Digital Media.

(P.A. 16-200, S. 1.)

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Sec. 32-1v. Small business hotline. Not later than October 1, 2017, the Commissioner of Economic and Community Development shall establish and operate a state-wide small business hotline to provide prospective and existing small business owners with individualized information and guidance regarding business formation and development, networking resources and technical and financial assistance from the state and quasi-public agencies. The commissioner shall, within available appropriations, operate and staff such hotline during normal business hours. The commissioner may partner with a nonprofit organization to carry out the provisions of this section.

(P.A. 17-158, S. 1.)

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Sec. 32-1w. Identification and coordination of resources to support job growth and academic and training programs. The Department of Economic and Community Development, in consultation with the Labor Department and Office of Higher Education, may, within available appropriations:

(1) Identify (A) anticipated areas of job growth in the state over the next five and ten years, state-wide and by region, (B) existing or projected needs for certificate programs, degree programs and short-term and long-term noncredit training programs to support areas of job growth, (C) the certificate programs, degree programs and noncredit training programs in the state that are most in demand by employers and students, the percentage of graduates of such programs who are employed in the state two years after graduation and the fields and industries in which such graduates are employed, and (D) the capacity for growth in high-demand academic programs offered by institutions of higher education in the state;

(2) Coordinate with state agencies and quasi-public agencies to prioritize and align state resources to meet the existing and future talent needs of the state, identified pursuant to subdivision (1) of this section; and

(3) Coordinate with municipal leaders to (A) share the results of the analysis performed under subdivision (1) of this section with employers, public and independent institutions of higher education in the state and other stakeholders, and (B) develop a program to award grants to support evidence-based solutions to cultivate, attract, hire and retain workers in high-demand fields and industries. Such program may include, but not be limited to, internship programs, education programs, incentives to attract mid-career workers and fellowship programs to attract and retain recent graduates.

(P.A. 19-128, S. 9.)

History: P.A. 19-128 effective July 12, 2019.

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Secs. 32-2 and 32-2a. Expenses; director. Bonding of commission members and employees. Sections 32-2 and 32-2a are repealed.

(1949 Rev., S. 3537; 1972, P.A. 195, S. 12, 15; June, 1972, P.A. 1, S. 14; P.A. 73-599, S. 39; P.A. 74-338, S. 62, 94.)

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Sec. 32-3. Duties of department; Connecticut Innovations, Incorporated. (a) The department shall:

(1) Study and investigate conditions affecting Connecticut industry, business, commerce, agriculture and recreational and residential facilities and prepare and recommend plans for and promote and encourage the preservation, expansion and development of such industry, business, commerce, agriculture and recreational and residential facilities within and without the state;

(2) Prepare and recommend plans for and promote and encourage the location and development of new industry, business, commerce, agriculture and recreational and residential facilities in the state;

(3) Collect, compile and disseminate information relative to the natural and economic resources of the state;

(4) Cooperate with promotional, planning and research groups and associations, with agencies of the state and its political subdivisions and with agencies of the federal government and other states, in the execution of its duties;

(5) Furnish technical, secretarial and clerical assistance to organizations when it deems that the giving of such assistance will promote the objects of this chapter.

(b) Each officer, board, commission or department of the state government shall assist said department and the corporation in the performance of their duties, and the department and the corporation shall have access to all available information collected by any state agency. The department and the corporation shall assist, as appropriate, other state agencies in their duties upon request and shall make available to them all information collected by them.

(1949 Rev., S. 3538; 1953, S. 1893d; February, 1965, P.A. 492, S. 1; 1972, P.A. 195, S. 16; P.A. 73-599, S. 19; June 12 Sp. Sess. P.A. 12-1, S. 152.)

History: 1965 act required commission to prepare and recommend plans to promote and encourage established business and to promote and encourage new business, etc. and required commission to assist other state agencies and make information available to them; 1972 act required commission to carry out provisions of industrial assistance act; P.A. 73-599 replaced Connecticut development commission with department of commerce and Connecticut development authority and divided section into Subsecs., redesignating Subdivs. with numeric indicators accordingly; pursuant to June 12 Sp. Sess. P.A. 12-1, “authority” was changed editorially by the Revisors to “corporation” in Subsec. (b), effective July 1, 2012.

Cited. 150 C. 342.

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Secs. 32-3a, 32-3b and 32-4. Industrial modernization program; advisory committee. Advisory Committee on High Unemployment Areas; appointment; duties. Meetings; regulations; reports; audits. Sections 32-3a, 32-3b and 32-4 are repealed.

(1949 Rev., S. 3539; September, 1957, P.A. 11, S. 13; 1972, P.A. 195, S. 17; 224, S. 1–3; P.A. 73-177, S. 3, 4; 73-599, S. 39; P.A. 75-542, S. 1, 2; P.A. 77-614, S. 284, 609, 610; P.A. 83-487, S. 32, 33.)

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Sec. 32-4a. Assistance to Connecticut Economic Resource Center, Incorporated. Section 32-4a is repealed, effective May 7, 2008.

(P.A. 93-382, S. 54, 69; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 08-34, S. 5.)

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Sec. 32-4b. State Economic Development Advisory Board. Section 32-4b is repealed, effective July 1, 2011.

(P.A. 93-382, S. 55, 69; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 11-131, S. 5.)

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Secs. 32-4c and 32-4d. Reserved for future use.

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Sec. 32-4e. “Economic cluster” defined. As used in section 32-4h, “economic cluster” means a grouping of industries linked together through customer, supplier or other relationships.

(P.A. 96-252, S. 1, 8; P.A. 11-131, S. 4.)

History: P.A. 96-252 effective July 1, 1996; P.A. 11-131 removed reference to Secs. 32-4f and 32-4g, effective July 1, 2011.

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Sec. 32-4f. (Formerly Sec. 4-70d). Connecticut Economic Conference Board. Economic cluster conference and report. Section 32-4f is repealed, effective July 1, 2011.

(June Sp. Sess. P.A. 91-3, S. 130, 168; P.A. 92-44, S. 1, 2; 92-65, S. 1, 2; P.A. 93-196, S. 1, 3; 93-210, S. 2, 3; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; 96-252, S. 2, 8; P.A. 97-238, S. 6; P.A. 11-48, S. 285; 11-131, S. 5.)

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Sec. 32-4g. Economic cluster report by the Commissioner of Economic and Community Development. Section 32-4g is repealed, effective October 1, 2005.

(P.A. 96-252, S. 3, 8; P.A. 05-191, S. 12.)

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Sec. 32-4h. Economic cluster bond funds report. Not later than August 1, 1997, and annually thereafter, the chairperson of the board of directors of Connecticut Innovations, Incorporated shall submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to the Department of Economic and Community Development, in accordance with the provisions of section 11-4a, which details the amount of bond funds expended during the previous fiscal year on each economic cluster in the state by the quasi-public agency administered by such chairperson.

(P.A. 96-252, S. 4, 8; P.A. 07-171, S. 5; June 12 Sp. Sess. P.A. 12-1, S. 158.)

History: P.A. 96-252 effective July 1, 1996; P.A. 07-171 removed Commissioner of Economic and Community Development as entity responsible for report; June 12 Sp. Sess. P.A. 12-1 deleted “the chairperson of the board of directors of the Connecticut Development Authority and”, effective July 1, 2012.

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Sec. 32-4i. Learn Here, Live Here program. (a) The Commissioner of Economic and Community Development, in consultation with the Commissioner of Revenue Services and the president of the Connecticut State Colleges and Universities, may establish the Learn Here, Live Here program. Such program may provide an incentive for graduates of a public institution of higher education, private university or college, or health care training school in this state, or graduates from a technical education and career school, to buy a first home in the state. Persons who graduate on or after January 1, 2014, from such institutions, universities, colleges or schools may have their income tax liability, up to a maximum of two thousand five hundred dollars annually, segregated into the Connecticut first-time homebuyers account established pursuant to section 32-4j, provided not more than one million dollars from all program participants may be so segregated in any calendar year. After a period not exceeding ten years after graduation, any amounts so segregated may be withdrawn by a participant for the purchase of a first home in the state. The Commissioner of Economic and Community Development may make payments in accordance with this section from said fund to the participants. For the purposes of this section, “health care training school” means a medical or dental school, chiropractic college, school or college of optometry, school or college of chiropody or podiatry, school of occupational therapy, hospital-based occupational school, school or college of naturopathy, school of dental hygiene, school of physical therapy or any other school or institution giving instruction in the healing arts.

(b) (1) After a period not exceeding ten years after the date of graduation, a participant in the program established pursuant to subsection (a) of this section may apply to the Commissioner of Economic and Community Development for a payment to be issued, on behalf of such participant, and used as the down payment on a house, which must be the first house such participant has bought, either singly or jointly. Such payment may be in an amount equal to the amount of segregated funds deposited on behalf of such participant. If the payment is less than such amount, any excess amount shall be deposited in the General Fund.

(2) If a participant ceases to live in the state at any time up to one year after such date, such participant shall repay one hundred per cent of the amount paid out. If a participant ceases to live in the state at any time up to two years after such date, such participant shall repay eighty per cent of the amount paid out. If a participant ceases to live in the state at any time up to three years after such date, such participant shall repay sixty per cent of the amount paid out. If a participant ceases to live in the state at any time up to four years after such date, such participant shall repay forty per cent of the amount paid out. If a participant ceases to live in the state at any time up to five years after such date, such participant shall repay twenty per cent of the amount paid out. After five years, there is no repayment obligation. Any amounts repaid under this subdivision shall be deposited in the General Fund.

(c) On or before December 1, 2012, the Commissioner of Economic and Community Development may develop, within available appropriations, a comprehensive public education program to educate recent graduates of a public institution of higher education, private university or college, or health care training school in the state, or of a technical education and career school, about the program established under this section for first-time home buyers. The public education program shall include, but not be limited to, information concerning life-time savings plans and information on the purchase of a home. If the commissioner develops such public education program, the department shall begin to implement such program not later than January 1, 2014.

(P.A. 11-48, S. 285; 11-140, S. 30; P.A. 12-75, S. 1; 12-116, S. 87; P.A. 16-15, S. 39; P.A. 17-237, S. 108.)

History: P.A. 11-140 effective July 1, 2011; pursuant to P.A. 11-48, “Commissioner of Higher Education” was changed editorially by the Revisors to “president of the Board of Regents for Higher Education”, effective July 1, 2011; P.A. 12-75 added “private university or college, or health care training school” and deleted “who qualified as in-state students and paid the in-state tuition rate” in Subsecs. (a) and (c) and, in Subsec. (a), defined “health care training school” and made conforming changes, effective June 6, 2012; pursuant to P.A. 12-116, “regional vocational-technical school” was changed editorially by the Revisors to “technical high school”, effective July 1, 2012; P.A. 16-15 amended Subsec. (a) by replacing “president of the Board of Regents for Higher Education” with “president of the Connecticut State Colleges and Universities”, effective July 1, 2016; P.A. 17-237 replaced “technical high school” with “technical education and career school” in Subsecs. (a) and (c), effective July 1, 2017.

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Sec. 32-4j. Connecticut first-time homebuyers account. There is established a Connecticut first-time homebuyers account which shall be a separate, nonlapsing account within the General Fund. Funds segregated by the Commissioner of Revenue Services, pursuant to section 32-4k, shall be deposited in the account. An amount equal to the amount deposited in the account shall be available to the Commissioner of Economic and Community Development for payments to participants in the program established pursuant to section 32-4i. The State Treasurer shall invest the proceeds of the account, and investment earnings, after paying any costs incurred by the State Treasurer in administering the account, shall be credited to the General Fund. On or before September 1, 2014, and annually thereafter, the State Treasurer shall notify the Commissioner of Economic and Community Development of the total amount deposited in the account. Any funds segregated on behalf of a participant that are not used for the purchase of a first home shall be transferred to the General Fund.

(P.A. 11-140, S. 31.)

History: P.A. 11-140 effective July 1, 2011.

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Sec. 32-4k. Learn Here, Live Here program. Segregation of income taxes. As part of the Learn Here, Live Here program established pursuant to section 32-4i, for taxable years commencing on or after January 1, 2014, the Commissioner of Revenue Services shall segregate the income taxes paid by a participant in said program during a period not exceeding ten taxable years following the year of graduation. Upon the request of such participant, the commissioner shall segregate an annual amount of such tax liability, up to a maximum of two thousand five hundred dollars per year. The total amount segregated for all program participants shall not exceed one million dollars in any calendar year. The commissioner shall deposit such segregated amounts into the Connecticut first-time homebuyers account established pursuant to section 32-4j.

(P.A. 11-140, S. 32.)

History: P.A. 11-140 effective July 1, 2011.

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Sec. 32-4l. First five plus program. (a)(1) The Department of Economic and Community Development shall establish a first five plus program to encourage business expansion and job creation. As part of said program, the department may provide substantial financial assistance to up to twenty eligible business development projects by June 30, 2019.

(2) A business development project eligible for financial assistance under the first five plus program shall commit, in the manner prescribed by the Commissioner of Economic and Community Development, to (A) create not less than two hundred new jobs within twenty-four months from the date such application is approved; or (B) invest not less than twenty-five million dollars and create not less than two hundred new jobs not later than five years after the date such application is approved.

(3) The Commissioner of Economic and Community Development may give preference to a business development project that (A) involves the relocation of an out-of-state or international manufacturer or corporate headquarters, (B) involves the relocation of jobs involved in research, invention or innovation to the state, (C) is a redevelopment project that the commissioner believes will create jobs sooner than the schedule set forth in subdivision (2) of this subsection, (D) is located in a distressed municipality, as defined in section 32-9p, or (E) involves a targeted industry referenced in the economic development strategic plan for the state prepared pursuant to section 32-1o.

(4) The Commissioner of Economic and Community Development may, in awarding financial assistance to an eligible business development project, work with Connecticut Innovations, Incorporated, to secure financing for such project.

(5) The Commissioner of Economic and Community Development shall certify to the Governor for his or her approval that a business development project applicant has satisfied all the eligibility criteria in the program. Financial assistance awarded through the first five plus program shall be with the written consent of the Governor.

(b) (1) Financial assistance for the first five plus program for eligible business development projects shall be exempt from the provisions of subsection (c) of section 32-223, section 32-462, subsection (q) of section 32-9t and, at the commissioner's discretion, section 12-211a for the fiscal years ending June 30, 2012, June 30, 2013, June 30, 2014, June 30, 2015, June 30, 2016, June 30, 2017, June 30, 2018, June 30, 2019, and June 30, 2020.

(2) For any assistance agreements originally executed on December 22, 2011, financial assistance for the first five plus program for eligible business development projects shall be exempt from the provisions of subsection (c) of section 32-223, section 32-462, subsection (q) of section 32-9t and, at the commissioner's discretion, section 12-211a for any of the fiscal years ending June 30, 2021, to June 30, 2024, inclusive.

(c) The commissioner may take such action as the commissioner deems necessary or appropriate to enforce such commitment, including, but not limited to, establishing terms and conditions for the repayment of any financial assistance awarded pursuant to the provisions of this section.

(d) On or before September 1, 2013, January 1, 2014, September 1, 2014, January 1, 2015, September 1, 2015, January 1, 2016, September 1, 2016, January 1, 2017, September 1, 2017, January 1, 2018, September 1, 2018, January 1, 2019, and September 1, 2019, the Commissioner of Economic and Community Development shall report in accordance with the provisions of section 11-4a to the joint standing committees of the General Assembly having cognizance of matters relating to commerce and finance, revenue and bonding on (1) the projects funded through the first five plus program, (2) the number of jobs created, (3) the net rate of return to the state for the entire portfolio of the program, taking into account all loans that have been forgiven and all tax credits that have been allowed in accordance with this section, (4) the impact on the economy of this state, and (5) based on such information, recommendations for any modifications to the program, including, but not limited to, whether the program should continue. Not later than February 1, 2019, said joint standing committees shall convene a joint public hearing on the most recent report submitted by the commissioner pursuant to this section.

(P.A. 11-86, S. 1; Oct. Sp. Sess. P.A. 11-1, S. 38; June 12 Sp. Sess. P.A. 12-1, S. 209; P.A. 13-247, S. 132; June Sp. Sess. P.A. 15-5, S. 42; May Sp. Sess. P.A. 16-3, S. 18; P.A. 17-219, S. 1; P.A. 19-117, S. 384.)

History: P.A. 11-86 effective July 1, 2011; Oct. Sp. Sess. P.A. 11-1 changed “first five program” to “first five plus program”, amended Subsec. (a) to increase number of eligible business development projects from 5 to 10 and specify that up to 10 projects would be provided assistance in fiscal year ending June 30, 2012, and up to 5 projects in fiscal year ending June 30, 2013, in Subdiv. (1) and to add Subpara. (A) re relocation of out-of-state or international manufacturers and corporate headquarters and designate provision re redevelopment project as Subpara. (B) in Subdiv. (3), and amended Subsec. (d) to require additional report on or before September 1, 2012, effective October 27, 2011; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (a) by replacing provision re ten eligible business development projects in fiscal year ending June 30, 2012, and five such projects in fiscal year ending June 30, 2013, with provision re fifteen such projects by June 30, 2013, in Subdiv. (1), making a technical change in Subdiv. (2)(B), adding new Subpara. (B) re relocation of jobs outside the U.S. and redesignating existing Subpara. (B) as Subpara. (C) in Subdiv. (3), and deleting reference to Connecticut Development Authority in Subdiv. (4), effective June 15, 2012; P.A. 13-247 amended Subsec. (a)(1) to replace “2013” with “2015” and made conforming and technical changes in Subsecs. (b) and (d), effective July 1, 2013; June Sp. Sess. P.A. 15-5 amended Subsec. (a)(1) to replace “2015” with “2016”, amended Subsec. (b) to add “June 30, 2016, and June 30, 2017”, and amended Subsec. (d) to add “January 1, 2016, and September 1, 2016,”, effective July 1, 2015; May Sp. Sess. P.A. 16-3 amended Subsec. (a)(1) to increase number of eligible business development projects from 15 to 20 and to replace “June 30, 2016” with “June 30, 2019”, amended Subsec. (a)(3) to replace reference to jobs outside the United States with reference to jobs involved in research, invention or innovation in Subpara. (B), to add Subpara. (D) re distressed municipality and to add Subpara. (E) re targeted industry referenced in economic development strategic plan, amended Subsec. (b) to add “June 30, 2018, June 30, 2019, and June 30, 2020”, amended Subsec. (d) to add “January 1, 2017, September 1, 2017, January 1, 2018, September 1, 2018, January 1, 2019, and September 1, 2019,” and made technical and conforming changes, effective July 1, 2016; P.A. 17-219 amended Subsec. (d) by designating provision re first five plus program as Subdiv. (1), designating provision re number of jobs created as Subdiv. (2), adding Subdiv. (3) re net rate of return to state for entire portfolio of program, designating provision re impact on economy of state as Subdiv. (4), adding Subdiv. (5) re recommendations for modifications to program, and adding provision re public hearing on most recent report, effective July 1, 2017; P.A. 19-117 amended Subsec. (b) by designating existing provision re exemptions as Subdiv. (1) and adding Subdiv. (2) re extension of exemptions for any assistance agreements originally executed on December 22, 2011, effective June 26, 2019.

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Sec. 32-4m. State-certified industrial reinvestment project. Reinvestment contract. Exchange of accumulated credits. Determination of payment amount. Exclusion period. (a) As used in this section:

(1) “Accumulated credits” means the amount of credits allowed, in accordance with the provisions of section 12-217n, that have not been taken through the last income year completed prior to the date of an application submitted as provided in subsection (b) of this section. The amount of such accumulated credits shall be subject to confirmation, in accordance with the provisions of title 12, by the Commissioner of Revenue Services in consultation with the commissioner.

(2) “Base level” means the level identified in the reinvestment contract entered into pursuant to subsection (c) of this section, for each factor listed in subparagraph (A) of subdivision (6) of subsection (c) of this section, for the most recently completed calendar year prior to the designation as a state-certified industrial reinvestment project.

(3) “Commissioner” means the Commissioner of Economic and Community Development.

(4) “Eligible expenditures” means those expenditures made or incurred in this state by an eligible taxpayer in furtherance of a state-certified industrial reinvestment project, including, but not limited to, (A) expenditures with respect to buildings, improvements, property, plants and equipment, and expenses directly related to such expenditures, such as design work, professional fees, surveys and site preparation, remediation and clean-up, demolition, moving and renovation expenses, (B) expenditures with respect to personal property, (C) research and development expenses, as defined in section 12-217n, and (D) the hiring and training of employees.

(5) “Eligible taxpayer” means a taxpayer, or a group of taxpayers filing a combined return under section 12-223a, that, at the time application is made under subsection (b) of this section, (A) is primarily engaged in the industrial sector, (B) employs at least fifteen thousand people in the state, (C) has incurred at least two hundred million dollars per year in research and development expenses, as defined in section 12-217n, in the state for the five full income years immediately preceding the date of such application, and (D) has at least four hundred million dollars of accumulated credits.

(6) “Exchange year” means the period beginning on the date set forth in the reinvestment contract and ending on June 30, 2015, and each successive period ending on June thirtieth thereafter.

(7) “Income year” means the income year of an eligible taxpayer as determined under subsection (a) of section 12-213.

(8) “Industrial reinvestment project” means one or more projects in this state that, if certified by the commissioner as provided in subsection (b) of this section, will entail aggregate eligible expenditures in the state of not less than one hundred million dollars over a period of not more than five exchange years by an eligible taxpayer in furtherance of the industrial reinvestment project. If an industrial reinvestment project is comprised of more than one project, each such project shall be referred to as a segment. Such segments shall be specifically set forth in the reinvestment contract.

(9) “Industrial sector” means all activities that, in accordance with the North American Industrial Classification System, United States Manual, United States Office of Management and Budget, 2012 edition, are included in sector 31, 32 or 33, including all operations in support of such activities.

(10) “Payment year” means the twelve-month period beginning on the date payments commence under the reinvestment contract and each twelve-month period thereafter. The first payment year shall begin on or after July 1, 2015.

(11) “Reinvestment contract” means a contract entered into between the commissioner and an eligible taxpayer in accordance with subsection (c) of this section.

(12) “State-certified industrial reinvestment project” means an industrial reinvestment project certified by the commissioner as provided in subsection (b) of this section.

(b) (1) Any eligible taxpayer that intends to undertake an industrial reinvestment project may apply to the commissioner for certification of such project as a state-certified industrial reinvestment project. In order to receive such certification, an eligible taxpayer shall apply to the commissioner, in a form acceptable to the commissioner and containing such information as prescribed by the commissioner, including, but not limited to, (A) a detailed plan outlining the industrial reinvestment project, (B) the term of such project, (C) the estimated costs of such project, and (D) the amount of accumulated credits the eligible taxpayer proposes it be allowed to exchange in connection with such project. The commissioner may require the eligible taxpayer to submit such additional information as may be necessary to evaluate the application.

(2) All decisions of the commissioner with respect to applications received under the provisions of subdivision (1) of this subsection shall be at the commissioner's sole discretion. The provisions of this subsection shall not be construed as authorizing suit against the state by any taxpayer that is denied certification by the commissioner and shall not be construed as a waiver of sovereign immunity.

(c) (1) Upon certification by the commissioner of an application as provided in subsection (b) of this section, the commissioner may enter into a reinvestment contract with an eligible taxpayer pursuant to which the commissioner may, in consideration of the eligible taxpayer's agreement to make the eligible expenditures in connection with the state-certified industrial reinvestment project, agree to exchange certain of the eligible taxpayer's accumulated credits up to a specified amount. Such reinvestment contract shall specify: (A) Each segment of a state-certified industrial reinvestment project; (B) the length of time the state-certified industrial reinvestment project will take to complete; (C) the aggregate amount of eligible expenditures the eligible taxpayer agrees to make; (D) the base levels, if applicable; (E) the amounts, as determined in accordance with the provisions of subdivision (6) of this subsection, that the eligible taxpayer is eligible to receive during the term of such reinvestment contract with respect to such eligible expenditures, and the terms and conditions the eligible taxpayer must satisfy in order to receive such amounts, including, but not limited to, information required to be submitted by the eligible taxpayer and provisions for the commissioner to access relevant records and to verify their accuracy; (F) the terms and conditions of the repayment of any such amounts paid to the eligible taxpayer in exchange for the accumulated credits in the event of any failure on the part of the eligible taxpayer to comply with the terms of the reinvestment contract; (G) the manner and method for the eligible taxpayer to provide notice of any disputed claim under the reinvestment contract; and (H) any other terms and conditions the commissioner may require. Any eligible taxpayer that enters into a reinvestment contract with the commissioner under this subsection may, in the event of any disputed claims under such reinvestment contract, bring an action against the state to the superior court for the judicial district of Hartford for the purpose of having such claim determined, provided notice of any such disputed claim is first given to the commissioner in the manner and method described in the reinvestment contract. No action shall be allowed unless it is brought not later than two years after the date on which the eligible taxpayer gave proper notice to the commissioner under such reinvestment contract. All legal defenses under such reinvestment contract, except sovereign immunity, are reserved to the state.

(2) The payment by the state of amounts directly attributable to the exchange of accumulated credits in connection with a state-certified industrial reinvestment project may be made in the form, timing and manner determined by the commissioner, including as an offset or refund of state taxes otherwise payable by the eligible taxpayer under the provisions of chapters 208 and 219. To the extent that such payments involve the offset or refund of state taxes, such payments shall be made in consultation with the Commissioner of Revenue Services.

(3) The provisions of subsection (d) of section 12-217n, sections 12-217aa and 12-217zz, subsections (c) and (e) of section 32-223 and section 32-462 shall not apply to a reinvestment contract to the extent such provisions are inconsistent with such reinvestment contract.

(4) Subject to the provisions of subdivision (5) of this subsection, the amount of accumulated credits that an eligible taxpayer is allowed to exchange with respect to any state-certified industrial reinvestment project shall not exceed the eligible expenditures made by such taxpayer with respect to such project. No eligible taxpayer shall make any further claims with respect to any accumulated credits exchanged in connection with a state-certified industrial reinvestment project. The commissioner shall notify the Commissioner of Revenue Services of all accumulated credits, and the amounts thereof, exchanged in connection with such project.

(5) The aggregate amount of all payments made by the state under this section for the exchange of accumulated credits shall not exceed four hundred million dollars, provided (A) the amount of all payments made by the state during any of the first five payment years shall not exceed twenty million dollars per year, and (B) the amount of all payments made by the state during any of the sixth or subsequent payment years shall not exceed the sum of thirty-three million three hundred thirty-four thousand dollars per year.

(6) Subject to the provisions of subdivisions (4) and (5) of this subsection, the amounts an eligible taxpayer is entitled to receive under a reinvestment contract with respect to eligible expenditures made by such taxpayer shall be determined in accordance with subparagraph (A) or (B) of this subdivision.

(A) (i) If, in connection with a state-certified industrial reinvestment project, or segment thereof, an eligible taxpayer may qualify to receive more than two hundred million dollars upon compliance with the terms of the reinvestment contract, the amount the eligible taxpayer is eligible to receive with respect to such project or segment shall be determined by multiplying the actual amount of eligible expenditures made in each of the first five exchange years by the total of the four applicable weighting factors as determined in accordance with subclauses (I) to (IV), inclusive, of this clause.

(I) The weighting factor for the maintenance or increase of employment levels of engineers located in this state shall be calculated in accordance with the following table:

Employment Levels of Engineers	Weighting Factors
(Individuals Employed)
Below 4,350	0%
4,350	7%
4,400	8%
4,450	9%
4,500	10%
4,550	11%
4,600	12%
4,650	13%
4,700	14%
4,750	15%
4,800	16%
4,850	17%
4,900	18%
4,950	19%
5,000	20%

The actual percentage for such factor shall be interpolated in accordance with this table.

(II) The weighting factor for the maintenance or increase of overall employment levels in this state shall be calculated in accordance with the following table:

Overall Employment Levels	Weighting Factors
(Individuals Employed)
Below 12,450	0%
12,450	10.5%
12,600	12%
12,750	13.5%
12,900	15%
13,050	16.5%
13,200	18%
13,350	19.5%
13,500	21%
13,650	22.5%
13,800	24%
13,950	25.5%
14,100	27%
14,250	28.5%
14,400	30%

The actual percentage for this factor shall be interpolated in accordance with this table.

(III) The weighting factor for the maintenance or increase of payroll levels in this state shall be calculated in accordance with the following table:

Payroll Levels	Weighting Factors
Below $1,370,000,000	0%
1,370,000,000	10.5%
1,385,000,000	12%
1,400,000,000	13.5%
1,415,000,000	15%
1,430,000,000	16.5%
1,445,000,000	18%
1,460,000,000	19.5%
1,475,000,000	21%
1,490,000,000	22.5%
1,505,000,000	24%
1,520,000,000	25.5%
1,535,000,000	27%
1,550,000,000	28.5%
1,565,000,000	30%

The actual percentage for this factor shall be interpolated in accordance with this table.

(IV) The weighting factor for research and development expenses and capital expenditures made in this state, exclusive of those eligible expenditures made in accordance with a contract entered into with the commissioner under the provisions of this subsection, shall be calculated in accordance with the following table:

Investment Amount	Weighting Factors
Below $680,000,000	0%
680,000,000	7%
690,000,000	8%
700,000,000	9%
710,000,000	10%
720,000,000	11%
730,000,000	12%
740,000,000	13%
750,000,000	14%
760,000,000	15%
770,000,000	16%
780,000,000	17%
790,000,000	18%
800,000,000	19%
810,000,000	20%

The actual percentage for this factor shall be interpolated in accordance with this table.

(ii) The eligible taxpayer shall certify the base levels for the factors set forth in subclauses (I) to (IV), inclusive, of this clause to the commissioner not later than one hundred twenty days after entering into a reinvestment contract with the commissioner. In the event any of the base levels certified to the commissioner differ from those set forth in the reinvestment contract, the commissioner is authorized to adjust the tables for the weighting factors consistent with subclauses (I) to (IV), inclusive, of this clause.

(iii) The aggregate amount of all payments made by the state under this subparagraph for the exchange of accumulated credits shall not exceed three hundred seventy-five million dollars.

(B) If, in connection with a state-certified industrial reinvestment project, or segment thereof, an eligible taxpayer may qualify to receive fifty million dollars or less upon compliance with the terms of the reinvestment contract, the amount the eligible taxpayer is eligible to receive as an exchange of accumulated credits with respect to such project or segment shall be determined with reference to the performance of the eligible taxpayer during the first five exchange years and shall be calculated as follows: (i) To the extent that expenditures made by the eligible taxpayer with respect to one or more research and development components of such project or segment involve the retention of one hundred or more employees and the investment of over ten million dollars in research and development, the eligible taxpayer is eligible to receive one million dollars with respect to each such component; and (ii) to the extent that expenditures by the eligible taxpayer with respect to one or more capital components of such project or segment involve over one million dollars in capital expenditures, the eligible taxpayer is eligible to receive forty per cent of such expenditures with respect to each such component. The aggregate amount of all payments made by the state under this subparagraph for the exchange of accumulated credits shall not exceed fifty million dollars.

(d) Notwithstanding any provision of the general statutes, an eligible taxpayer that enters into a reinvestment contract with the commissioner under the provisions of this section and is authorized to exchange accumulated credits in connection with a state-certified industrial reinvestment project shall not be allowed any credit pursuant to section 12-217j or 12-217n during the exclusion period under such reinvestment contract, or be eligible to exchange credits under the provisions of section 12-217ee during such exclusion period. For purposes of this subsection, the exclusion period means those income years of the eligible taxpayer specified by the commissioner in the reinvestment contract as comprising the exclusion period. This subsection shall not preclude an eligible taxpayer (1) from taking accumulated credits that are not otherwise subject to exchange pursuant to such reinvestment contract during such exclusion period as otherwise allowed by law, or (2) from taking credits allowed under section 12-217j during the exclusion period as otherwise allowed by law. Except as provided herein, this subsection shall not impact an eligible taxpayer's ability to claim those tax credits it has already been allowed or otherwise affect such taxpayer's eligibility for credits under the provisions of the general statutes.

(e) To provide incentives for the retention and creation of jobs and business growth in the state, the commissioner shall analyze and, as appropriate, seek additional legislative approval for programs permitting taxpayers to exchange any accumulated credits in manners not otherwise provided for under this section.

(f) The commissioner shall include in the report required pursuant to section 32-1m an annual report that shall include information on the number of projects certified under this section, the number of reinvestment contracts entered into in connection with such projects, the status of the certified projects, the amount of accumulated credits that have been exchanged in connection with such projects, and the specific levels achieved by each eligible taxpayer under subparagraphs (A) and (B) of subdivision (6) of subsection (c) of this section.

(g) On and after June 30, 2015, the commissioner shall not enter into any reinvestment contracts under subsection (c) of this section.

(P.A. 14-2, S. 1.)

History: P.A. 14-2 effective May 8, 2014.

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Sec. 32-4n. Certified aerospace manufacturing project. Assistance agreement. Sales and use tax offset. Grants. Reports. (a) As used in this section:

(2) “Assistance agreement” means a contract entered into between the commissioner and an eligible taxpayer, in accordance with subsection (c) of this section, including any amendments to or extensions of such contract.

(3) “Capital expenditure” means bona fide costs to the wholly-owned subsidiary and its subsidiaries for: (A) Acquisition of lands, buildings, machinery, equipment or any combination thereof, (B) site and infrastructure improvements, (C) planning costs, (D) research and development expenses, as defined in section 12-217n, including, but not limited to, development of new products and markets, and (E) development of diversification strategies, including plans for regional diversification strategies and consultants required for the completion of such strategies and plans.

(4) “Commissioner” means the Commissioner of Economic and Community Development.

(5) “Company” means an entity with a place of business or wholly-owned subsidiary located in this state and the direct and indirect subsidiaries and affiliates of such entity.

(6) “Compliance year” means each twelve-month period commencing July first and continuing through June thirtieth of the following year, provided the initial compliance year shall commence on July 1, 2018, and end on June 30, 2019. “Annual” shall refer to a compliance year.

(7) “Eligible taxpayer” means a company that, at the time application is made under subsection (b) of this section, (A) is engaged in the aerospace industry, (B) employs not less than six thousand individuals in this state, (C) operates the company's primary helicopter production facility for its current United States government programs in this state, (D) plans to bid on a low-rate production contract with the federal government for a helicopter, and (E) has a wholly-owned subsidiary with production facilities and its headquarters, as defined in the assistance agreement, in Connecticut prior to September 29, 2016.

(8) “Employee base level” means (A) for compliance years commencing on or after July 1, 2018, and prior to July 1, 2023, a base level of full-time employees in this state that is not less than an average of six thousand five hundred for each compliance year, and (B) for compliance years commencing on or after July 1, 2023, and prior to the conclusion of the assistance agreement, a base level of full-time employees in this state that is not less than an average of seven thousand for each compliance year, provided the average number of full-time employees for each compliance year shall be determined by adding the number of full-time employees at the end of each quarter of the respective compliance year and dividing the sum of such quarters by four.

(9) “Full-time employee” means an employee in this state of the company who works for a minimum of thirty-five hours per week. “Full-time employee” does not include an employee working on a temporary or seasonal basis or any individual who does not receive a federal Form W-2 from the company.

(10) “Minimum requirements” means the minimum conditions that the eligible taxpayer must satisfy during each compliance year to qualify for the annual grants for such compliance year described in subsection (e) of this section and the sales and use tax offset for such compliance year, described in subsection (d) of this section, including, but not limited to, achieving the employee base level, the payroll base level, the supplier spend base level, the maintenance of the wholly-owned subsidiary's headquarters, as defined in the assistance agreement, in Connecticut and the maintenance and operation of the company's primary helicopter production facility for its current United States government programs, as of the date of the assistance agreement, in this state.

(11) “Payroll base level” means (A) for compliance years commencing on or after July 1, 2018, and prior to July 1, 2023, a base level of aggregate gross pay for full-time employees in this state that is not less than six hundred eleven million dollars for each compliance year, and (B) for compliance years commencing on or after July 1, 2023, and prior to the conclusion of the assistance agreement, a base level of aggregate gross pay for full-time employees in this state that is not less than seven hundred million dollars for each compliance year.

(12) “Production” means the various operations related to the completion of a helicopter, including, but not limited to, procurement, engineering, manufacture, assembly, integration and testing.

(13) “Regular place of business” means any bona fide office, factory, warehouse or other space in this state at which a supply company is doing business in its own name in a regular and systematic manner, and which place is continuously maintained, occupied and used by the supply company in carrying on its business through its employees regularly in attendance to carry on the supply company's business in the supply company's own name. “Regular place of business” does not include a place of business for a statutory agent for service of process, or a temporary office or location used by the supply company only for the duration of the contract or an office maintained, occupied and used by a person affiliated with the supply company.

(14) “Supply company” means any commercial business with a regular place of business in this state that supplies goods and services necessary to support (A) the manufacturing of company products, or (B) company operations. “Supply company” does not include any local, state or federal revenue collection or taxing entity.

(15) “Supplier spend base level” means a total annual spend by the wholly-owned subsidiary with its supply companies in this state of not less than: (A) Three hundred million dollars for compliance years commencing on or after July 1, 2018, and prior to July 1, 2024; (B) four hundred ten million dollars for compliance years commencing on or after July 1, 2024, and prior to July 1, 2029; and (C) four hundred seventy million dollars for compliance years commencing on or after July 1, 2029, and prior to the conclusion of the assistance agreement, provided: (i) If an expenditure qualifies both for the supplier spend base level and the capital expenditures target, the eligible taxpayer may choose between such categories for which such expenditure may be counted, and (ii) in no event shall any such expenditure be counted toward more than one such category.

(16) “Sales and use tax” means the taxes due under chapter 219.

(17) “Sales and use tax offset” means the offset described in subsection (d) of this section.

(18) “Wholly-owned subsidiary” means a subsidiary of the company, or such subsidiary's successor to its operations, that has its headquarters, as defined in the assistance agreement, in Connecticut. “Wholly-owned subsidiary” includes any direct or indirect subsidiary of the company's wholly-owned subsidiary, and any limited liability company wholly owned directly or indirectly by the company's wholly-owned subsidiary.

(b) (1) Any eligible taxpayer that intends to undertake an aerospace manufacturing project may apply to the commissioner for certification of such project as a certified aerospace manufacturing project. In order to receive such certification, an eligible taxpayer shall apply to the commissioner, in a form acceptable to the commissioner and include such information as prescribed by the commissioner, including, but not limited to, (A) a detailed plan outlining the aerospace manufacturing project, (B) the term of such project, and (C) the estimated expenditures for such project. The commissioner may require such eligible taxpayer to submit such additional information as may be necessary to evaluate the application.

(2) All decisions of the commissioner with respect to any application received under subdivision (1) of this subsection shall be made in the commissioner's discretion. The provisions of this subsection shall not be construed to authorize suit against this state by any taxpayer that is denied certification by the commissioner and shall not be construed as a waiver of sovereign immunity.

(c) (1) Upon certification by the commissioner of an application as provided in subsection (b) of this section, the commissioner may enter into an assistance agreement with an eligible taxpayer pursuant to which the commissioner may, in consideration of the eligible taxpayer's agreement to meet the minimum requirements in a compliance year in connection with the certified aerospace manufacturing project, and as further inducement for the eligible taxpayer to enter into an aerospace manufacturing project, agree to make certain grants to the eligible taxpayer and permit the eligible taxpayer to offset its sales and use tax liability up to a specified amount for the corresponding compliance year. Such assistance agreement shall list: (A) The specifications of the certified aerospace manufacturing project; (B) the length of time the certified aerospace manufacturing project will take to complete; (C) the minimum requirements the eligible taxpayer agrees to meet during each compliance year; (D) the commitment by the eligible taxpayer to maintain the headquarters, as defined in the assistance agreement, of the wholly-owned subsidiary or its successor in Connecticut and to operate the eligible taxpayer's primary helicopter production facility for its current United States government programs, as of the date of the assistance agreement, in Connecticut; (E) the grants, as determined in accordance with the provisions of subsection (e) of this section, that the eligible taxpayer is eligible to receive during the term of the assistance agreement based on meeting the minimum requirements, and the terms and conditions the eligible taxpayer is required to satisfy in order to receive such grants, including, but not limited to, the information required to be submitted to the commissioner by the eligible taxpayer and provisions for the commissioner to access relevant records of the eligible taxpayer and to verify the accuracy of such records; (F) the terms and conditions of the repayment of any grants, and other required financial penalties resulting from the failure on the part of the eligible taxpayer to comply with the terms of the assistance agreement; (G) the amount of sales and use tax, subject to the limitations set forth in subsection (d) of this section, that the eligible taxpayer is eligible to offset for each compliance year set forth in the assistance agreement, provided the eligible taxpayer meets the minimum requirements for each such compliance year; (H) the terms and conditions of the repayment of any such sales and use tax offsets, and other required financial penalties resulting from the failure on the part of the eligible taxpayer to otherwise comply with the terms of the assistance agreement; (I) the manner and method for the eligible taxpayer to provide notice of any disputed claim under the assistance agreement; and (J) any other terms and conditions the commissioner may require.

(2) Any eligible taxpayer that enters into an assistance agreement with the commissioner under this subsection may, in the event of any disputed claims under such assistance agreement, bring an action against this state to the superior court for the judicial district of Hartford for the purpose of having such claim determined, provided notice of any such disputed claim is first given to the commissioner in the manner and method described in such assistance agreement. No such action shall be allowed unless it is brought not later than two years after the date on which the eligible taxpayer gave proper notice to the commissioner in accordance with such assistance agreement. All legal defenses under such assistance agreement, except sovereign immunity, are reserved to this state.

(3) If the provisions of subsection (c) or (e) of section 32-223 or section 32-462 are in conflict with such assistance agreement, the provisions of such assistance agreement shall supersede.

(d) (1) The assistance agreement may provide for the offset of sales and use tax amounts otherwise payable by the eligible taxpayer under the provisions of chapter 219. The offset of sales and use taxes shall be made in the form, timing and manner determined by the commissioner in consultation with the Commissioner of Revenue Services. The offset of sales and use tax amounts shall be calculated after the application of all other sales and use tax exemptions set forth in chapter 219 in effect on September 29, 2016, and any subsequent amendments to chapter 219. Nothing in this subsection shall affect the eligible taxpayer's ability to claim the sales and use tax exemptions it otherwise qualifies for under any provision of the general statutes.

(2) The amount of sales and use tax liability that the commissioner may permit an eligible taxpayer to offset for any certified aerospace manufacturing project shall not exceed five million seven hundred fourteen thousand dollars per compliance year, nor exceed eighty million dollars in the aggregate over the term of the assistance agreement, provided if such eligible taxpayer's actual sales and use tax liability is less than five million seven hundred fourteen thousand dollars in any compliance year, the eligible taxpayer may carry forward, for a period not to exceed three years, the difference between (A) five million seven hundred fourteen thousand dollars in addition to any carry-forward from prior years, and (B) the eligible taxpayer's actual sales and use tax liability for such compliance year after applying any exemptions allowed pursuant to chapter 219. The carry forward amount shall be utilized on a first earned, first used basis, prior to the use of any current year offset by the eligible taxpayer to offset its sales and use tax liability in excess of the five million seven hundred fourteen thousand dollar annual limitation. At the end of each compliance year, the commissioner shall notify the Commissioner of Revenue Services whether the eligible taxpayer has met all minimum requirements necessary to qualify for the offset or is required to repay such amount in accordance with the terms of the assistance agreement.

(e) The commissioner shall make grants to an eligible taxpayer subject to an assistance agreement for the achievement of employment, payroll, supplier spend, capital expenditures and performance incentive targets and the satisfaction of other minimum requirements in accordance with this subsection.

(1) For each compliance year, the commissioner shall make an employment grant equal to the maximum grant for achieving the employment target for the company in accordance with the table contained in this subdivision, except that if the average number of full-time employees is less than the employment target for a compliance year, the employment grant shall be such maximum grant reduced by an amount equal to such maximum grant multiplied by a fraction, the numerator of which shall be the employment target in this state less actual employment in this state and the denominator of which shall be the employment target in this state less the employee base level in this state, in accordance with the table contained in this subdivision.

			Maximum Grant
	Employee Base		for Achieving the
Compliance	Level Required	Employment	Employment
Year Ending	for a Grant	Target	Target
6/30/2019	6,500	7,084	$2,142,857
6/30/2020	6,500	6,684	2,142,857
6/30/2021	6,500	6,582	2,142,857
6/30/2022	6,500	6,696	2,142,857
6/30/2023	6,500	6,978	2,142,857
6/30/2024	7,000	7,276	2,142,857
6/30/2025	7,000	7,537	2,142,857
6/30/2026	7,000	7,720	2,142,857
6/30/2027	7,000	7,773	2,142,857
6/30/2028	7,000	7,773	2,142,857
6/30/2029	7,000	7,773	2,142,857
6/30/2030	7,000	7,794	2,142,857
6/30/2031	7,000	7,924	2,142,857
6/30/2032	7,000	8,032	2,142,857

(2) For each compliance year, the commissioner shall make a payroll grant equal to the maximum grant for achieving the total payroll target by the company in accordance with the table contained in this subdivision, except if the actual total payroll for full-time employees in this state is less than the total payroll target for a compliance year, the payroll grant shall be such maximum grant reduced by an amount equal to such maximum grant multiplied by a fraction, the numerator of which shall be the total payroll target in this state less actual total payroll in this state and the denominator of which shall be the total payroll target in this state less payroll base level in this state, in accordance with the table contained in this subdivision.

			Maximum Grant
	Payroll Base		for Achieving the
Compliance	Level Required	Total Payroll	Total Payroll
Year Ending	for a Grant	Target	Target
6/30/2019	$611,000,000	$681,000,000	$2,142,857
6/30/2020	611,000,000	655,500,000	2,142,857
6/30/2021	611,000,000	658,500,000	2,142,857
6/30/2022	611,000,000	680,000,000	2,142,857
6/30/2023	611,000,000	718,500,000	2,142,857
6/30/2024	700,000,000	763,000,000	2,142,857
6/30/2025	700,000,000	806,000,000	2,142,857
6/30/2026	700,000,000	842,000,000	2,142,857
6/30/2027	700,000,000	864,500,000	2,142,857
6/30/2028	700,000,000	882,000,000	2,142,857
6/30/2029	700,000,000	900,000,000	2,142,857
6/30/2030	700,000,000	920,500,000	2,142,857
6/30/2031	700,000,000	954,500,000	2,142,857
6/30/2032	700,000,000	986,770,000	2,142,857

(3) (A) For each compliance year, the commissioner shall make a supplier spend grant equal to the maximum grant earned for achieving the supplier spend target by the wholly-owned subsidiary in accordance with the table contained in this subparagraph, except if the supplier spend is less than the supplier spend target for a compliance year, the supplier spend grant shall be such maximum grant reduced by an amount equal to such maximum grant multiplied by a fraction, the numerator of which shall be the supplier spend target in this state less actual supplier spend in this state and the denominator of which shall be the supplier spend target in this state less supplier spend base level in this state, in accordance with the table contained in this subparagraph.

			Maximum Grant
	Supplier Spend		Earned for
	Base Level		Achieving the
Compliance	Required for a	Supplier Spend	Supplier Spend
Year Ending	Grant	Target	Target
6/30/2019	$300,000,000	$353,602,014	$2,142,857
6/30/2020	300,000,000	328,497,198	2,142,857
6/30/2021	300,000,000	333,053,331	2,142,857
6/30/2022	300,000,000	362,668,196	2,142,857
6/30/2023	300,000,000	400,028,488	2,142,857
6/30/2024	300,000,000	433,743,873	2,142,857
6/30/2025	410,000,000	469,737,325	2,142,857
6/30/2026	410,000,000	497,825,886	2,142,857
6/30/2027	410,000,000	522,717,180	2,142,857
6/30/2028	410,000,000	548,853,039	2,142,857
6/30/2029	410,000,000	576,295,691	2,142,857
6/30/2030	470,000,000	605,110,475	2,142,857
6/30/2031	470,000,000	635,365,999	2,142,857
6/30/2032	470,000,000	667,134,299	2,142,857

(B) The wholly-owned subsidiary may, in a compliance year in which it has exceeded the applicable supplier spend target, carry forward on a first earned, first used basis, and apply the difference between the supplier spend target and the actual supplier spend to increase the actual supplier spend amount in any of the subsequent three compliance years.

(4) (A) For each compliance year, the commissioner shall make the grant earned for capital expenditures made in this state if the wholly-owned subsidiary has achieved ninety per cent of the capital expenditures target set forth in the table contained in this subparagraph.

Compliance Year	Capital Expenditures	Grant Earned for
Ending	Target	Capital Expenditures
6/30/2019	$76,000,000	$2,142,857
6/30/2020	76,000,000	2,142,857
6/30/2021	76,000,000	2,142,857
6/30/2022	76,000,000	2,142,857
6/30/2023	78,000,000	2,142,857
6/30/2024	79,000,000	2,142,857
6/30/2025	81,000,000	2,142,857
6/30/2026	82,000,000	2,142,857
6/30/2027	84,000,000	2,142,857
6/30/2028	86,000,000	2,142,857
6/30/2029	87,000,000	2,142,857
6/30/2030	89,000,000	2,142,857
6/30/2031	91,000,000	2,142,857
6/30/2032	93,000,000	2,142,857

(B) The wholly-owned subsidiary may, in a compliance year where it has exceeded the capital expenditures target amount, carry forward on a first earned, first used basis, and apply the difference between the actual capital expenditures amount and the capital expenditures target amount to increase the actual capital expenditures amount in any of the subsequent three compliance years.

(5) (A) The eligible taxpayer shall be eligible, in accordance with the terms of the assistance agreement, to receive annual performance incentive grants for any compliance year as set forth in this subdivision based on such eligible taxpayer exceeding the requisite employment target and total payroll target thresholds and meeting all requirements with respect to average payroll per employee, as defined in the assistance agreement. Each annual performance incentive grant shall be equal to the number of full-time employees in excess of the employment target for that compliance year multiplied by the per employee grant amount. Such annual performance incentive shall total not more than the maximum performance incentive per compliance year set forth in the table contained in this subparagraph.

		Maximum
		Performance	Number of Jobs
		Incentive Per	Required to
Compliance	Per Employee	Compliance	Receive
Year Ending	Grant Amount	Year	Maximum
6/30/2019	$3,500	$ 350,000	100
6/30/2020	3,500	525,000	150
6/30/2021	3,500	875,000	250
6/30/2022	3,500	1,050,000	300
6/30/2023	3,500	1,225,000	350
6/30/2024	3,500	1,400,000	400
6/30/2025	3,500	1,750,000	500
6/30/2026	3,500	1,750,000	500
6/30/2027	3,500	1,750,000	500
6/30/2028	3,500	1,750,000	500
6/30/2029	3,500	1,800,000	515
6/30/2030	3,500	1,925,000	550
6/30/2031	3,500	1,925,000	550
6/30/2032	3,500	1,925,000	550

(B) The aggregate amount of all annual performance incentives awarded under this subdivision shall not exceed twenty million dollars.

(6) Notwithstanding the provisions of subdivisions (1) to (5), inclusive, of this subsection, if an eligible taxpayer fails to meet the minimum requirements for a compliance year, the commissioner shall not make any grant to such eligible taxpayer for such compliance year.

(7) Notwithstanding the provisions of subdivisions (1) to (5), inclusive, of this subsection, where federal government action necessitates changes to the production schedule, the commissioner may deviate from the tables in this subsection in a manner proportional to such revised production schedule. The commissioner shall file a report with the committees of cognizance of the General Assembly within fifteen days describing such deviation.

(8) The eligible taxpayer shall certify, subject to a third-party audit performed in accordance with the Department of Economic and Community Development Audit Guide, the actual employment, payroll, supply spend and capital expenditure amounts to the commissioner in accordance with the requirements of the assistance agreement.

(9) The aggregate amount of all grants made by the commissioner under this subsection shall not exceed one hundred forty million dollars.

(f) To provide incentives for the retention and creation of jobs and business growth in this state, the commissioner shall analyze and may seek additional legislative approval, as appropriate, for programs permitting taxpayers to offset sales and use tax liability in manners not otherwise provided for under this section.

(g) (1) The commissioner shall include in the report required pursuant to section 32-1m an annual report that shall include information on the number of projects certified under this section, the status of such certified projects and the specific levels achieved by each eligible taxpayer under subdivisions (1) to (4), inclusive, of subsection (e) of this section.

(2) Not later than October 1, 2021, and every three years thereafter until the conclusion of the assistance agreement, the commissioner shall report in accordance with the provisions of section 11-4a to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and commerce on the number of projects certified under this section, the status of such certified projects and the specific levels achieved by each eligible taxpayer under subdivisions (1) to (4), inclusive, of subsection (e) of this section. Said committees shall conduct a joint informational hearing following the submission of each such report at which the commissioner shall present such report and be available for questions from the members of said committees.

(h) The commissioner shall not enter into any assistance agreement under subsection (c) of this section after January 31, 2017.

(Sept. Sp. Sess. P.A. 16-1, S. 1.)

History: Sept. Sp. Sess. P.A. 16-1 effective September 29, 2016.

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Sec. 32-4o. Bond authorization for grants. (a) The State Bond Commission shall authorize the issuance of bonds of this state, in accordance with the provisions of section 3-20, in principal amounts not exceeding in the aggregate one hundred forty million dollars for the grants described in subsection (e) of section 32-4n. The amount authorized for the issuance and sale of bonds in accordance with this section shall not exceed the amount authorized in each fiscal year in the following amounts, provided the costs of issuance and capitalized interest, if any, may be added to the capped amount in each fiscal year, and each of the authorized amounts shall be effective on July first of the fiscal year indicated as follows:

Fiscal Year Ending June 30	Amount
2017	$ 8,921,436
2020	9,096,428
2021	9,446,428
2022	9,621,428
2023	9,796,428
2024	9,971,428
2025	10,321,428
2026	10,321,428
2027	10,321,428
2028	10,321,428
2029	10,371,428
2030	10,496,428
2031	10,496,428
2032	10,496,428
Total	$140,000,000

(b) The State Bond Commission shall approve a memorandum of understanding between the Department of Economic and Community Development and this state, acting by and through the Secretary of the Office of Policy and Management and the Treasurer, providing for the issuance of such bonds for the purposes of the grants described in subsection (e) of section 32-4n, including provisions regarding the extent to which federal, private or other moneys then available or thereafter to be made available for costs should be added to the proceeds of the bonds authorized pursuant to this section for such grants. The memorandum of understanding shall be deemed to satisfy the provisions of section 3-20 and the exercise of any right or power granted thereby which is not inconsistent with the provisions of this section.

(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. 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. All bonds issued pursuant to this section shall be general obligations of this state and the full faith and credit of this 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 this 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 Treasurer shall pay such principal and interest as the same become due.

(d) Subject to the amount of limitations of the capping provisions in subsection (a) of this section, the principal amount of the bonds authorized under this section shall be deemed to be an appropriation and allocation of such amount, and such approval of such request shall be deemed the allotment by the Governor of such capital outlays within the meaning of section 4-85.

(Sept. Sp. Sess. P.A. 16-1, S. 2.)

History: Sept. Sp. Sess. P.A. 16-1 effective September 29, 2016.

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Sec. 32-4p. Certified aerospace manufacturing project for production contracts entered into after April 28, 2022. Assistance agreement. Project tax benefit. Recapture. (a) As used in this section:

(1) “Aerospace manufacturing project” means a project involving the production of helicopters in this state that, if certified by the commissioner as provided in subsection (b) of this section, will require (A) primary helicopter production for current United States government programs specified in the assistance agreement, as of the date of the assistance agreement, to be carried out at one or more facilities in this state, (B) the undertaking and maintaining of primary production for helicopters to be produced during the term of the assistance agreement under one or more future United States government programs specified in the assistance agreement under production contracts entered into by the eligible taxpayer after April 28, 2022, to be carried out at one or more facilities in this state, and (C) minimum requirements for total employment in this state, average employee wages in this state, supplier spend and capital expenditures by an eligible taxpayer in furtherance of such project continuing through at least June 30, 2042;

(2) “Annual recapture amount” means the total project tax benefits utilized by an eligible taxpayer divided by ten;

(3) “Assistance agreement” means a contract entered into between the commissioner and an eligible taxpayer in accordance with subsection (c) of this section, including any amendments to or extensions of such contract;

(4) “Average wage requirement” means, for compliance years commencing on or after July 1, 2022, and prior to July 1, 2032, an average annual wage for full-time employees in this state that is not less than the amounts specified in the assistance agreement;

(5) “Benefit period” means the period commencing on the effective date of the assistance agreement and ending on June 30, 2032;

(6) “Capital expenditure” means bona fide costs to the wholly-owned subsidiary and its subsidiaries for: (A) Acquisition of lands, buildings, machinery, equipment or any combination thereof; (B) site and infrastructure improvements; (C) planning costs; (D) research and development expenses, as defined in section 12-217n of the general statutes, revision of 1958, revised to January 1, 2021, and including, but not limited to, development of new products and markets; and (E) development of diversification strategies, including plans for regional diversification strategies and consultants required for the completion of such strategies and plans;

(7) “Capital expenditure requirement” means, for compliance years commencing on or after July 1, 2022, and prior to July 1, 2032, a total annual amount of capital expenditures made in this state by the wholly-owned subsidiary that is not less than:

(A) Seventy million two hundred thousand dollars for the compliance year ending June 30, 2023;

(B) Seventy-one million one hundred thousand dollars for the compliance year ending June 30, 2024;

(D) Seventy-three million eight hundred thousand dollars for the compliance year ending June 30, 2026;

(E) Seventy-five million six hundred thousand dollars for the compliance year ending June 30, 2027;

(F) Seventy-seven million four hundred thousand dollars for the compliance year ending June 30, 2028;

(G) Seventy-eight million three hundred thousand dollars for the compliance year ending June 30, 2029;

(H) Eighty million one hundred thousand dollars for the compliance year ending June 30, 2030;

(I) Eighty-one million nine hundred thousand dollars for the compliance year ending June 30, 2031; and

(J) Eighty-three million seven hundred thousand dollars for the compliance year ending June 30, 2032;

(8) “Commissioner” means the Commissioner of Economic and Community Development;

(9) “Company” means an entity with a place of business or a wholly-owned subsidiary located in this state and the direct and indirect subsidiaries and affiliates of such entity;

(10) “Compliance year” means each twelve-month period commencing July first and continuing through June thirtieth of the following year, provided the initial compliance year shall commence on July 1, 2022, and end on June 30, 2023, and the last compliance year shall commence on July 1, 2031, and end on June 30, 2032. “Annual” refers to a compliance year;

(11) “Contract year” means each twelve-month period commencing July first and continuing through June thirtieth of the following year, provided the initial contract year shall commence on July 1, 2022, and end on June 30, 2023, and the last contract year shall commence on July 1, 2041, and end on June 30, 2042;

(12) “Corporation business tax” means the tax due under chapter 208;

(13) “Eligible taxpayer” means a company that, at the time application is made under subsection (b) of this section, (A) is engaged in the aerospace industry, (B) employs not less than seven thousand individuals in this state, (C) operates the company's primary helicopter production facility for its current United States government programs in this state, (D) plans to bid on a production contract or contracts for a helicopter under one or more United States government programs, and (E) has a wholly-owned subsidiary with production facilities and its headquarters, as set forth in the assistance agreement, in this state prior to April 28, 2022;

(14) (A) “Employee requirement” means, for compliance years commencing on or after July 1, 2022, and prior to July 1, 2032:

(i) A minimum level of full-time employees in this state that is not less than an average of seven thousand three hundred seventy-five for each compliance year if the eligible taxpayer has entered into a production contract for one United States government program specified in the assistance agreement; and

(ii) A minimum level of full-time employees in this state that is not less than an average of seven thousand five hundred for each compliance year if the eligible taxpayer has entered into production contracts for two United States government programs specified in the assistance agreement.

(B) The average number of full-time employees for each compliance year shall be determined by adding the number of full-time employees at the end of each quarter of the respective compliance year and dividing the sum of such quarters by four;

(15) “Full-time employee” means an employee in this state of the company who works a minimum of thirty-five hours per week. “Full-time employee” does not include an employee working on a temporary or seasonal basis or any individual who does not receive a federal Form W-2 from the company;

(16) “Minimum requirements” means the minimum conditions the eligible taxpayer must satisfy during each compliance year to qualify for the sales and use tax offset for such compliance year and the refundable tax credit for such compliance year, including, but not limited to, (A) achieving the employee requirement, average wage requirement, supplier spend requirement and capital expenditure requirement, (B) the maintenance of the wholly-owned subsidiary's headquarters, as set forth in the assistance agreement, in this state, (C) the maintenance and operation of the company's primary helicopter production facility for its current United States government programs, as of the date of the assistance agreement, in this state, (D) the undertaking and maintaining in this state of the company's primary production for helicopters to be produced during the term of the assistance agreement under one or more future United States government programs specified in the assistance agreement under production contracts entered into by the eligible taxpayer after April 28, 2022, and (E) the maintenance of diversity and workforce training programs by the company in accordance with the terms of the assistance agreement;

(17) “Production” means the various operations related to the completion of a helicopter, including, but not limited to, procurement, engineering, manufacture, assembly, integration and testing;

(18) “Production contract” means a contract with the United States government for the production of helicopters;

(19) “Project tax benefit” means the total benefit accruing to an eligible taxpayer with respect to the sales and use tax offset and the refundable tax credit;

(20) “Refundable tax credit” means the credit described in subsection (e) of this section;

(21) “Regular place of business” means any bona fide office, factory, warehouse or other space in this state at which a supply company is doing business in its own name in a regular and systematic manner and which place is continuously maintained, occupied and used by the supply company in carrying on its business through its employees regularly in attendance to carry on the supply company's business in the supply company's own name. “Regular place of business” does not include a place of business for a statutory agent for service of process, a temporary office or location used by the supply company only for the duration of the contract or an office maintained, occupied and used by a person affiliated with the supply company;

(22) “Sales and use tax” means the taxes due under chapter 219;

(23) “Sales and use tax offset” means the offset described under subsection (d) of this section;

(24) “Supply company” means any commercial business with a regular place of business in this state that supplies goods and services necessary to support (A) the manufacturing of company products, or (B) company operations. “Supply company” does not include any local, state or federal revenue collection or taxing entity;

(25) (A) “Supplier spend requirement” means, for compliance years commencing on or after July 1, 2022, and prior to July 1, 2032, the total annual spend by the wholly-owned subsidiary and by the company, on behalf of the wholly-owned subsidiary, with supply companies in this state of not less than:

(i) Three hundred million dollars for compliance years commencing on or after July 1, 2022, and prior to July 1, 2024;

(ii) Four hundred ten million dollars for compliance years commencing on or after July 1, 2024, and prior to July 1, 2029; and

(iii) Four hundred seventy million dollars for compliance years commencing on or after July 1, 2029, and prior to July 1, 2032.

(B) If an expenditure qualifies for both the supplier spend requirement and the capital expenditures requirement, the eligible taxpayer may choose between such categories for which such expenditure may be counted. In no event shall any such expenditure be counted towards more than one such category; and

(26) “Wholly-owned subsidiary” means a subsidiary of the company, or such subsidiary's successor to its operations, that has its headquarters, as set forth in the assistance agreement, in this state. “Wholly-owned subsidiary” includes any direct or indirect subsidiary of the company's wholly-owned subsidiary and any limited liability company wholly owned directly or indirectly by the company's wholly-owned subsidiary.

(b) (1) Any eligible taxpayer that intends to undertake an aerospace manufacturing project may apply to the commissioner for certification of such project as a certified aerospace manufacturing project. In order to receive such certification, an eligible taxpayer shall apply to the commissioner, in a form acceptable to the commissioner and including such information as prescribed by the commissioner, including, but not limited to, (A) a detailed plan outlining the aerospace manufacturing project, (B) the term of such project, and (C) the estimated expenditures for such project. The commissioner may require such eligible taxpayer to submit such additional information as may be necessary to evaluate the application.

(2) Such assistance agreement shall have a term of not less than twenty years and shall list:

(A) The specifications of the certified aerospace manufacturing project;

(B) The length of time the certified aerospace manufacturing project will take to complete;

(D) The commitment by the eligible taxpayer to (i) maintain the headquarters, as set forth in the assistance agreement, of the wholly-owned subsidiary or its successor in this state, (ii) operate its primary helicopter production facility for its current United States government programs, as of the date of the assistance agreement, in this state, and (iii) to undertake and maintain its primary production of helicopters to be produced during the term of the assistance agreement under one or more future United States government programs specified in the assistance agreement in this state under production contracts entered into by the eligible taxpayer after April 28, 2022;

(E) The amount of sales and use tax that the eligible taxpayer is eligible to offset for each compliance year set forth in the assistance agreement, provided the eligible taxpayer meets the minimum requirements for each such compliance year;

(F) The terms and conditions of the repayment of any sales and use tax offsets and other required financial penalties resulting from the eligible taxpayer's failure to comply with the terms of the assistance agreement;

(G) The amount of corporation business tax, subject to the limits set forth in subsection (e) of this section, against which the eligible taxpayer is eligible to claim a credit for each compliance year set forth in the assistance agreement, provided the eligible taxpayer meets the minimum requirements for each such compliance year;

(H) The manner and method for the eligible taxpayer to provide notice of any disputed claim under the assistance agreement; and

(I) Any other terms and conditions the commissioner may require.

(3) The assistance agreement shall provide that the project tax benefit be earned and utilized during the first eight years of the term of any production contract, provided no project tax benefit may be earned or utilized beyond the benefit period.

(4) Any eligible taxpayer that enters into an assistance agreement with the commissioner under this subsection may, in the event of any disputed claim under such assistance agreement, bring an action against this state to the superior court for the judicial district of Hartford for the purpose of having such claim determined, provided notice of such disputed claim is first given to the commissioner in the manner and method described in such assistance agreement. No such action shall be allowed unless it is brought not later than two years after the date on which the eligible taxpayer gave proper notice to the commissioner in accordance with such assistance agreement. All legal defenses under such assistance agreement, except sovereign immunity, are reserved to this state.

(5) If the provisions of subsection (c) or (e) of section 32-223 or section 32-462 are in conflict with the assistance agreement, the provisions of such assistance agreement shall supersede.

(6) Upon the execution of the assistance agreement, the commissioner shall issue an allocation notice stating the maximum combined amount of the sales and use tax offset and the refundable tax credit available to the eligible taxpayer for the benefit period and the specific requirements the eligible taxpayer shall meet to qualify for such offset and credit. Such notice shall certify to the eligible taxpayer that the offsets and credits may be claimed by the eligible taxpayer if the eligible taxpayer meets the specific requirements set forth in the notice.

(d) (1) The assistance agreement shall provide for the offset of sales and use tax amounts otherwise payable by the eligible taxpayer under the provisions of chapter 219. Such offset shall be made in the form, timing and manner determined by the commissioner in consultation with the Commissioner of Revenue Services. The sales and use tax offset amounts shall be calculated after the application of all other sales and use tax exemptions set forth in chapter 219 in effect on April 28, 2022 and any subsequent amendments to said chapter that the eligible taxpayer is eligible to claim. Nothing in this subsection shall affect the eligible taxpayer's ability to claim the sales and use tax exemptions that it otherwise qualifies for under any provision of the general statutes.

(2) Subsequent to a production contract taking effect for helicopters to be produced during the term of the assistance agreement, not later than sixty days after the end of each compliance year or, if the eligible taxpayer requests and the commissioner approves an extended date, not later than such extended date, the eligible taxpayer shall certify, subject to a third-party audit performed in accordance with the Department of Economic and Community Development audit guide or such protocols as may be set forth in the assistance agreement, the actual employment, wages, supplier spend and capital expenditure amounts to the commissioner in accordance with the requirements of the assistance agreement. If the results of such audit reveal that the eligible taxpayer has claimed a sales and use tax offset in excess of the amount allowable, the eligible taxpayer shall be subject to the repayment provisions as set forth in the assistance agreement. At the end of each compliance year, upon receipt of the eligible taxpayer's certification, the commissioner shall notify the Commissioner of Revenue Services whether the eligible taxpayer has met all minimum requirements necessary to qualify for the sales and use tax offset or is required to repay the amount of such offset in accordance with the terms of the assistance agreement.

(e) (1) If the results of the audit performed pursuant to subdivision (2) of subsection (d) of this section reveal that the eligible taxpayer was unable to utilize all of the sales and use tax offset to which it was entitled under the assistance agreement for a compliance year against its sales and use tax liability, the assistance agreement shall permit the eligible taxpayer to claim the excess amount as a refundable tax credit, not to exceed five million dollars for each compliance year, against the corporation business tax. If the amount of the excess is greater than five million dollars for any compliance year, the excess over five million dollars shall be carried forward to future compliance years to offset the eligible taxpayer's sales and use tax liability and then as refundable tax credits of up to five million dollars for each compliance year against the eligible taxpayer's corporation business tax liability, until the excess is fully utilized, except that no carry-forward shall extend beyond the benefit period. Such carry-forward shall be utilized prior to any sales and use tax offset earned in any subsequent compliance year.

(2) If the amount of the refundable tax credit exceeds the eligible taxpayer's corporation business tax liability for the applicable income year, the Commissioner of Revenue Services shall treat such excess as an overpayment and shall refund the amount of such excess, without interest, to the eligible taxpayer. In no event shall the refundable tax credits allowed under this subsection exceed forty-five million dollars in the aggregate over the term of the assistance agreement. The eligible taxpayer shall claim the refundable tax credit allowed under this subsection on its corporate tax return for the income year that ends during the compliance year and such credit shall not be subject to the limits set forth in section 12-217zz. Notwithstanding the provisions of section 12-217aa, such credit shall be claimed after all other tax credits have been claimed.

(3) Not later than thirty days after the commissioner receives an audit performed pursuant to subdivision (2) of subsection (d) of this section or as provided for in the assistance agreement, during each year of the benefit period, the Department of Economic and Community Development shall issue the eligible taxpayer a credit voucher that sets forth the amount of the refundable tax credit permitted pursuant to this subsection and the income year for which such credit may be claimed. The commissioner shall annually provide to the Commissioner of Revenue Services a report detailing all credit vouchers that have been issued under this subsection.

(f) (1) The eligible taxpayer shall pay the total amount of project tax benefit that was utilized by the eligible taxpayer for a particular compliance year and any penalty set forth in the assistance agreement if the commissioner determines that the eligible taxpayer failed to satisfy any of the minimum requirements for such compliance year.

(2) The project tax benefit utilized by the eligible taxpayer under subsections (d) and (e) of this section shall be subject to recapture during the contract years commencing on or after July 1, 2032, and ending on June 30, 2042, if the eligible taxpayer fails to satisfy during such time period certain annual thresholds relating to employee head count, average wages, supplier spend and capital expenditures, as detailed in the assistance agreement, and such other requirements including (A) the maintenance of the wholly-owned subsidiary's headquarters, as set forth in the assistance agreement, in this state, (B) the maintenance and operation of the company's primary helicopter production facility for its current United States government programs, as of the date of the assistance agreement, in this state, (C) the undertaking and maintaining in this state of the company's primary production for helicopters to be produced during the term of the assistance agreement under one or more of its future United States government programs specified in the assistance agreement under production contracts entered into by the eligible taxpayer after April 28, 2022, and (D) the maintenance of diversity and workforce training programs by the company in accordance with the terms of the assistance agreement.

(3) If the eligible taxpayer enters into a production contract with the United States government for one helicopter program specified in the assistance agreement, the targeted job requirement shall be seven thousand two hundred fifty, and the minimum job requirement shall be six thousand for each of the years subject to the recapture under subdivision (2) of this subsection. If the eligible taxpayer enters into production contracts with the United States government for two helicopter programs specified in the assistance agreement, the targeted job requirement shall be seven thousand seven hundred fifty, and the minimum job requirement shall be seven thousand for each of the years subject to the recapture under subdivision (2) of this subsection. The annual recapture amount shall be (A) repaid if the number of actual jobs in any year subject to the recapture is less than the minimum job requirement, and (B) prorated at ninety per cent value of the annual recapture amount if the number of actual jobs is equal to or greater than the minimum job requirement but less than the targeted job requirement. In addition to the recapture job obligation, the commissioner may require other criteria, including, but not limited to, wage requirements, with respect to the recapture of the remaining ten per cent of the annual recapture amount. In no event shall the amount of the recapture exceed the annual recapture amount.

(g) The aggregate amount of the project tax benefit granted by the commissioner under this section shall not exceed (1) six million two hundred fifty thousand dollars for each compliance year or fifty million dollars during the term of the assistance agreement if the eligible taxpayer has entered into a production contract after April 28, 2022, with the United States government for one helicopter program specified in the assistance agreement, and (2) nine million three hundred seventy-five thousand dollars for each compliance year or seventy-five million dollars during the term of the assistance agreement if the eligible taxpayer has entered into production contracts after April 28, 2022, with the United States government for two helicopter programs specified in the assistance agreement.

(h) The commissioner shall not enter into any assistance agreement under subsection (c) of this section after January 31, 2023.

(i) The commissioner may make revisions to the terms of the assistance agreement to address a scenario where a delay, not caused by the eligible taxpayer, prevents the eligible taxpayer from entering into one or more production contracts by June 30, 2024. Such revisions may include changes to the timing of (1) the benefit period, (2) the compliance years, (3) the contract years, (4) the minimum requirements, and (5) the recapture period, and other conforming changes, provided in all cases, the project tax benefit shall be earned and utilized during the first eight years of the term of any such production contract.

(j) The commissioner may from time to time amend, supplement or modify the terms of the assistance agreement consistent with the provisions of this section.

(P.A. 22-4, S. 1.)

History: P.A. 22-4 effective April 28, 2022.

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Sec. 32-4q. Innovation Corridor and Connecticut Communities Challenge programs; funding; application process; criteria. (a) On and after July 1, 2021, and until June 30, 2024, the Commissioner of Economic and Community Development, in coordination with the Secretary of the Office of Policy and Management, may, for the purposes of implementing the state's Economic Action Plan, use bond funds, funding received as a result of the American Rescue Plan Act of 2021, P.L. 117-2, as amended from time to time, and available resources, to provide (1) not more than one hundred million dollars in the aggregate for grants in support of major projects selected pursuant to subsection (b) of this section, and (2) not more than one hundred million dollars in the aggregate for community development grants awarded pursuant to subsection (c) of this section. Total funding for grants provided pursuant to subsections (b) and (c) of this section shall not exceed two hundred million dollars in the aggregate.

(b) On and after July 1, 2021, and until June 30, 2024, the Department of Economic and Community Development may establish an Innovation Corridor program, which shall provide grants for major projects in the state. The department shall develop a competitive application process and criteria consistent with the purposes of the state's Economic Action Plan to (1) evaluate applications submitted pursuant to this subsection, and (2) select projects for funding pursuant to subdivision (1) of subsection (a) of this section.

(c) On and after July 1, 2021, and until June 30, 2024, the Department of Economic and Community Development may establish a Connecticut Communities Challenge program, which shall provide community development grants. The department shall develop a competitive application process and criteria consistent with the purposes of the state's Economic Action Plan to (1) evaluate applications submitted pursuant to this subsection, and (2) select community development projects for funding pursuant to subdivision (2) of subsection (a) of this section.

(June Sp. Sess. P.A. 21-2, S. 488; P.A. 22-50, S. 2; 22-118, S. 155.)

History: June Sp. Sess. P.A. 21-2 effective July 1, 2021; this section was originally published as Sec. 32-4p in the 2022 Supplement to the General Statutes; P.A. 22-50 amended Subsec. (a) by replacing “For fiscal years ending June 30, 2022, to” with “On and after July 1, 2021, and until”, adding “in the aggregate” after “one hundred million dollars” and “grants in support of” before “major projects” in Subdiv. (1), replacing “matching grants” with “not more than one hundred million dollars in the aggregate for community development grants awarded” in Subdiv. (2), adding provision re total funding cap of $200,000,000 and making a technical change, amended Subsec. (b) by replacing “July 1, 2024” with “June 30, 2024” and replacing reference to request for proposals with reference to Innovation Corridor grant program and making conforming changes, amended Subsec. (c) by replacing “July 1, 2024” with “June 30, 2024”, replacing “Commissioner” with “Department”, deleting provisions re competitive grant program and adding provisions re Connecticut Communities Challenge program, effective May 23, 2022; P.A. 22-118 made identical changes as P.A. 22-50, effective May 7, 2022.

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Sec. 32-4r. Youth Service Corps grant program. (a) There is established a Youth Service Corps grant program to be administered by the Department of Economic and Community Development for the purpose of providing grants to municipalities of priority school districts, as described in section 10-266p, to establish local Youth Service Corps programs. Such programs shall provide paid community-based service learning and academic and workforce development programs to youth and young adults in the state in accordance with the provisions of section 32-4s.

(b) Not later than October 1, 2022, the Commissioner of Economic and Community Development shall develop an application process and selection criteria for Youth Service Corps program grants.

(c) Not later than January 1, 2023, and annually thereafter, the Commissioner of Economic and Community Development shall award a grant to each municipality selected to participate in the program in the amount of ten thousand dollars per youth or young adult participating in such municipality's local Youth Service Corps program plus fifteen per cent of such amount for program administration expenses. Such municipalities may use such grants to (1) administer the local Youth Service Corps program, and (2) award a subgrant of not more than ten thousand dollars to any youth or young adult participating in a local Youth Service Corps program to support or subsidize such youth or young adult's participation in program activities.

(d) Not later than December 1, 2023, and annually thereafter, each municipality that received a Youth Service Corps program grant shall submit a report evaluating its local Youth Service Corps program to the Commissioners of Economic and Community Development and Children and Families in a form and manner prescribed by the Commissioner of Economic and Community Development.

(e) Not later than January 1, 2024, and annually thereafter, the Commissioner of Economic and Community Development, in consultation with the Commissioner of Children and Families, shall report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to commerce and children regarding the Youth Service Corps grant program.

(f) There is established an account to be known as the “youth service corps grant program account” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be expended by the Commissioner of Economic and Community Development for the purposes of providing grants to municipalities of priority school districts, as described in section 10-266p, to establish local Youth Service Corps programs that provide paid community-based service learning and academic and workforce development programs to youth and young adults in the state in accordance with the provisions of section 32-4s.

(P.A. 22-47, S. 60.)

History: P.A. 22-47 effective July 1, 2022.

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Sec. 32-4s. Local Youth Service Corps program requirements. Each municipality of a priority school district, as described in section 10-266p, selected to receive a Youth Service Corps program grant pursuant to section 32-4r shall operate, establish or demonstrate plans to establish a local Youth Service Corps program that has the following characteristics:

(1) Youth participation in the local Youth Service Corps program shall be by referral only. Such referral shall be made by a school official, juvenile probation officer, the Commissioner of Children and Families, or the commissioner's designee, or an employee of a community organization designated by the municipality or the municipality's Youth Service Corps program administrator to make such referrals. Participants in a local Youth Service Corps program shall be youths or young adults between the ages of sixteen and twenty-four, inclusive, who are showing signs of disengagement or disconnection from school, the workplace or the community;

(2) The local Youth Service Corps program shall focus on youth or young adults who are involved with the justice system, involved with the Department of Children and Families, in foster care or experiencing homelessness;

(3) The local Youth Service Corps program shall be administered by a local community-based organization with expertise in providing youth or young adult services and workforce development programs. Such organization shall work with local municipal officials to identify potential local service project opportunities for such program;

(4) Each youth or young adult participant in a local Youth Service Corps program shall develop an individual success plan in which such participant shall identify goals relating to education, workforce or behavioral development. In support of such goals, the local Youth Service Corps program shall provide (A) year-long, part-time employment with flexible hours with public or private employers screened and approved by the administrator of the program, (B) community-based service learning projects selected by the administrator of the program, (C) a transition plan for such participant detailing such goals and steps to be taken to accomplish such goals, and (D) other activities approved by the administrator of the program; and

(5) Each Youth Service Corps program administrator shall evaluate each youth and young adult participant using performance indicators applicable to such participant, including, but not limited to, education outcomes, career competency development, training completion and positive behavior changes to measure whether the goals for such participant are being achieved.

(P.A. 22-47, S. 61.)

History: P.A. 22-47 effective July 1, 2022.

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Sec. 32-5. Receipts. The department is authorized to receive and to pay over to the State Treasurer any moneys from any source, including contributions made for the purposes of said department by individuals, corporations or associations, or any amounts from the sale of any printed matter or other material. Such receipts when so turned over to the State Treasurer shall become part of the General Fund of the state, provided any such contributions shall be deemed to be appropriated for the purposes designated by the contributors and shall be allotted in accordance with law. The department is further empowered to enter into a contract or contracts from time to time for the purposes of this chapter, such obligations to be met from any appropriation or other funds made available to it, as herein provided. No provision of this chapter shall be construed to restrict or prohibit the department from receiving or accepting funds from any source, including funds from federal, state or municipal governments or from private sources, for any of the purposes, or activities related thereto, of this chapter.

(1949 Rev., S. 3540; 1959, P.A. 355, S. 1; February, 1965, P.A. 232, S. 1; 492, S. 2; P.A. 73-599, S. 20.)

History: 1959 act removed power of commission to expend receipts and provided for appropriation of contributions and allotment in accordance with law; 1965 acts specified commission's right to receive and accept funds from any source; P.A. 73-599 replaced Connecticut development commission with department of commerce, here referred to simply as “department”, (P.A. 77-614 replaced commerce department with department of economic development).

See Sec. 32-8 re administration of federal funds.

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Sec. 32-5a. Conditions re relocation of certain businesses which received state financial assistance. The Commissioner of Economic and Community Development and the board of directors of Connecticut Innovations, Incorporated shall require, as a condition of any financial assistance provided on and after June 23, 1993, under any program administered by the Department of Economic and Community Development or such corporation to any business organization, except for a business organization that receives any such financial assistance in an amount not more than fifty thousand dollars and is an eligible small business, as defined in section 31-3pp, or under any assistance program that is funded entirely by the federal government, in which case the commissioner may require, that such business organization: (1) Shall not relocate outside of the state for ten years after receiving such assistance or during the term of a loan or loan guarantee, whichever is longer, unless the full amount of the assistance is repaid to the state and a penalty equal to five per cent of the total assistance received is paid to the state, except that this subdivision shall not be applicable to financial assistance by the corporation in the form of an equity investment or other financial assistance, including a convertible or seed loan, with predominantly equity characteristics, and (2) shall, if the business organization relocates within the state during such period, offer employment at the new location to its employees from the original location if such employment is available. For the purposes of subdivision (1) of this section, the value of a guarantee shall be equal to the amount of the state's liability under the guarantee. As used in this section, “relocate” means the physical transfer of a substantial portion, as determined by the Commissioner of Economic and Community Development, of the operations of a business or any division of a business that independently receives any financial assistance from the state from the location such business or division occupied at the time it accepted the financial assistance to another location. Notwithstanding the provisions of this section, the Commissioner of Economic and Community Development shall adopt regulations in accordance with chapter 54 to establish the terms and conditions of repayment, including specifying the conditions under which repayment may be deferred, following a determination by the commissioner of a legitimate hardship.

(P.A. 88-146; P.A. 93-218, S. 1, 4; 93-360, S. 14, 19; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; June 12 Sp. Sess. P.A. 12-1, S. 171; P.A. 17-162, S. 2; P.A. 21-193, S. 20.)

History: P.A. 93-218 applied requirements of the section to any financial assistance, instead of loans and grants only, provided by Connecticut development authority and Connecticut Innovations, Incorporated, as well as commissioner of economic development, to any business organization instead of only those with twenty-five or more employees, extended period of time for condition on not relocating out of state from 3 to 10 years, imposed penalty on relocating during such period and added provision specifying value of a guarantee for purposes of Subdiv. (1), effective June 23, 1993; P.A. 93-360 exempted financial assistance provided by Connecticut Innovations, Incorporated from requirements of the section, effective June 14, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; June 12 Sp. Sess. P.A. 12-1 replaced “Connecticut Development Authority” with “Connecticut Innovations, Incorporated” and “authority” with “corporation”, and added exception in Subdiv. (1) re financial assistance by the corporation, effective July 1, 2012; P.A. 17-162 redefined “relocate”; P.A. 21-193 added provision re exception for eligible small business receiving not more than $50,000 and for business receiving assistance under any program funded entirely by federal government, effective July 13, 2021.

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Sec. 32-5b. Deadlines for approval or disapproval of applications for financial assistance. Not later than July 1, 1996, the Commissioner of Economic and Community Development shall adopt regulations in accordance with the provisions of chapter 54, establishing deadlines for the approval or disapproval of applications for financial assistance by the Department of Economic and Community Development.

(P.A. 95-249, S. 1, 4; 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)

History: P.A. 95-249 effective July 1, 1995; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development.

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Sec. 32-5c. Preference for prequalified contractors and subcontractors for bond guaranty program. The Commissioner of Economic and Community Development shall give priority to any contractor or substantial subcontractor who is prequalified under section 4a-100 for participation in the Department of Economic and Community Development's bond guaranty program under public act 79-607*.

(P.A. 13-304, S. 3.)

*Note: Public act 79-607 is entitled “An Act Concerning Urban Action and Establishing a State Historic Preservation Board”. (See Reference Table captioned “Public Acts of 1979” in Volume 16 which lists the sections amended, created or repealed by the act.)

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Sec. 32-5d. Commissioner of Economic and Community Development required to give priority for financial assistance to certain applicants. (a) As used in this section:

(1) “Dislocated worker” has the same meaning as provided in the federal Workforce Innovation and Opportunity Act of 2014, P.L. 113-128, as amended from time to time;

(2) “Economic development financial assistance” means any grant, loan or loan guarantee, or combination thereof, provided to a business for the purpose of economic development;

(3) “Low-income individual” means an individual whose family income is less than three hundred per cent of the federal poverty level for the prior calendar year;

(4) “Minority” means an individual whose race is defined as other than white, or whose ethnicity is defined as Hispanic or Latino by the federal Office of Management and Budget for use by the Bureau of Census of the United States Department of Commerce;

(5) “Nontraditional employment” means occupations or fields of work for which individuals from one gender comprise less than twenty-five per cent of the individuals employed in each such occupation or field of work; and

(6) “Veteran” means any person who is a member of, was honorably discharged from or released under honorable conditions from active service in the armed forces, as defined in section 27-103.

(b) The Commissioner of Economic and Community Development shall give priority to applicants for economic development financial assistance who demonstrate a willingness, as determined by the commissioner, to make jobs available to unemployed individuals, low-income individuals, dislocated workers, individuals training for nontraditional employment, veterans, minorities, women and individuals with disabilities to the extent consistent with any state or regional economic development strategy.

(P.A. 21-188, S. 2.)

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Sec. 32-6. Connecticut building at Eastern States Exposition. (a) The management and control of the operation and affairs of the Connecticut building at the Eastern States Exposition at West Springfield shall be in the charge of the Department of Economic and Community Development. Maintenance of the land and building shall be the responsibility of the Department of Administrative Services. Coverage by fire and casualty insurance shall be the responsibility of the State Insurance and Risk Management Board in accordance with the provisions of section 4a-20. The building and land shall be used by the Department of Economic and Community Development, in cooperation with public and private agencies, to conduct an educational exhibit which will promote the agricultural, industrial, recreational and other physical and natural resources of this state.

(b) (1) There is established an account to be known as the Connecticut Eastern States Exposition account. The account shall contain any moneys required by law to be deposited in the account and shall be a separate, nonlapsing account of the General Fund. Investment earnings credited to the account shall become part of the assets of the account. Any balance remaining in said account at the end of any fiscal year shall be carried forward in the account for the next fiscal year.

(2) There shall be deposited in the Connecticut Eastern States Exposition account any proceeds realized by the state from activities pursuant to this section.

(3) Amounts in the Connecticut Eastern States Exposition account shall be available to fund the cost of any activities of the Department of Economic and Community Development pursuant to this section, including administrative costs related to such activities.

(1949 Rev., S. 3541; 1949, 1953, S. 1894d; P.A. 73-599, S. 21; P.A. 77-614, S. 284, 610; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; June 18 Sp. Sess. P.A. 97-11, S. 32, 65; P.A. 11-51, S. 44; P.A. 15-123, S. 4.)

History: P.A. 73-599 replaced Connecticut development commission with department of commerce; P.A. 77-614 replaced department of commerce with department of economic development, effective January 1, 1979; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; June 18 Sp. Sess. P.A. 97-11 designated existing provisions as Subsec. (a), amended Subsec. (a) by making Public Works Department responsible for maintenance of the Connecticut building and land and by making technical changes, and added new Subsec. (b) establishing the Connecticut Eastern States Exposition account, effective July 1, 1997; pursuant to P.A. 11-51, “Department of Public Works” was changed editorially by the Revisors to “Department of Administrative Services” in Subsec. (a), effective July 1, 2011; P.A. 15-123 amended Subsec. (a) to replace “Comptroller” with reference to State Insurance and Risk Management Board re responsibility for fire and casualty insurance, effective July 1, 2015.

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Sec. 32-6a. Committee for the Restoration of Historic Assets in Connecticut. Grants. Eligibility of greenways projects. Regulations. “Historical asset” defined. Section 32-6a is repealed, effective July 13, 2021.

(S.A. 77-47, S. 8, 65; P.A. 77-614, S. 284, 587, 610; P.A. 78-303, S. 85, 136; P.A. 79-338, S. 1, 2; P.A. 95-250, S. 1; 95-335, S. 4, 26; P.A. 96-211, S. 1, 5, 6; P.A. 00-148, S. 16; June 30 Sp. Sess. P.A. 03-6, S. 210(e); P.A. 04-20, S. 3; 04-205, S. 5; May Sp. Sess. P.A. 04-2, S. 30; P.A. 11-48, S. 173; P.A. 21-193, S. 26.)

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Secs. 32-6b to 32-6g. Reserved for future use.

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Sec. 32-6h. One-stop business licensing center. Section 32-6h is repealed, effective July 1, 1995.

(P.A. 86-329, S. 1, 3; P.A. 93-382, S. 68, 69.)

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Sec. 32-6i. Connecticut Economic Information System Steering Committee. Section 32-6i is repealed, effective July 1, 2011.

(May Sp. Sess. P.A. 92-4, S. 2, 5; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; June 18 Sp. Sess. P.A. 97-9, S. 28, 50; P.A. 11-51, S. 76; 11-131, S. 5.)

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Sec. 32-6j. Assistance of Labor Commissioner in job-training activities. In the assessment and provision of job training for employers, the Commissioner of Economic and Community Development and the chief executive officer of Connecticut Innovations, Incorporated shall request the assistance of the Labor Commissioner. Upon receipt of a request for job training pursuant to this section, the Labor Commissioner shall notify the president of the Connecticut State Colleges and Universities, or his or her designee, of such request. The president, or his or her designee, shall determine if a training program exists or can be designed at a regional community-technical college to meet such training need and shall notify the Labor Commissioner of such determination. The Labor Commissioner shall to the extent possible make arrangements for the participation of the regional community-technical colleges, the Connecticut State University System, other institutions of higher education, other postsecondary institutions, adult education programs and the Technical Education and Career System in implementing the program. Nothing in this section shall preclude the Labor Commissioner from considering or choosing other providers to meet such training need.

(P.A. 96-190, S. 3, 8; P.A. 11-48, S. 284; P.A. 12-116, S. 87; June 12 Sp. Sess. P.A. 12-1, S. 152; P.A. 13-123, S. 6; P.A. 16-15, S. 40; P.A. 17-237, S. 109.)

History: P.A. 96-190 effective July 1, 1996; P.A. 11-48 replaced “chancellor of the regional community-technical colleges” with “president of the Board of Regents for Higher Education” and made conforming and technical changes, effective July 1, 2011; pursuant to P.A. 12-116, “regional vocational-technical schools” was changed editorially by the Revisors to “technical high schools”, effective July 1, 2012; pursuant to June 12 Sp. Sess. P.A. 12-1, “Connecticut Development Authority” was changed editorially by the Revisors to “Connecticut Innovations, Incorporated”, effective July 1, 2012; P.A. 13-123 changed “executive director” to “chief executive officer”, effective June 18, 2013; P.A. 16-15 replaced “president of the Board of Regents for Higher Education” with “president of the Connecticut State Colleges and Universities”, effective July 1, 2016; P.A. 17-237 replaced “state technical high schools” with “the Technical Education and Career System”, effective July 1, 2017.

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Sec. 32-6k. Impact statements submitted to the Connecticut Transportation Strategy Board. Section 32-6k is repealed, effective July 1, 2011.

(June Sp. Sess. P.A. 01-5, S. 6, 18; P.A. 02-78, S. 1; P.A. 06-136, S. 26; P.A. 11-61, S. 188.)

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Sec. 32-6l. Promotion of market areas surrounding rail and bus terminals, airports and ports around the state. The Commissioner of Economic and Community Development, in consultation with the Commissioner of Transportation, shall collaborate with the towns and cities in the state to promote and market areas of retail sales and services surrounding rail, bus terminals, airports and ports around the state. The Commissioner of Economic and Community Development may use the services of the Connecticut Economic Resource Center and any other entity it deems necessary.

(June Sp. Sess. P.A. 01-5, S. 7, 18.)

History: June Sp. Sess. P.A. 01-5 effective July 2, 2001.

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Sec. 32-6m. Promotion of products produced in Connecticut. (a) The Commissioner of Economic and Community Development shall develop a “CONNECTICUT-MADE” or “CT-Made” logo and make such logo available to Connecticut manufacturers and producers of Connecticut-made products through an Internet web site that shall allow such manufacturers and producers to promote their products that are made or produced in Connecticut. The commissioner shall develop guidelines for the use of such logo in any branding efforts by such manufacturers and producers that may include: (1) The types of products and specifications for such products that may be branded as “CONNECTICUT-MADE” or “CT-Made”; and (2) the ability of such a manufacturer or producer to alter such logo's proportions or colors. Any state agency, quasi-public agency or other public or private institution may promote such Internet web site and logo. The commissioner shall not contract with any third party to carry out the provisions of this subsection.

(b) The commissioner may, within available appropriations, establish and administer a program to promote the marketing of products produced in Connecticut for the purpose of encouraging the development of manufacturing and production in the state. As part of said program, the commissioner may (1) provide for the design, plan and implementation of a multiyear, state-wide marketing and advertising campaign, including, but not limited to, television and radio advertisements, promoting the availability of, and advantages of purchasing, Connecticut-made products, (2) establish and continuously update an Internet web site connected with such advertising campaign that includes, but is not limited to, a comprehensive listing of Connecticut manufacturers, Connecticut-made products and Connecticut retailers selling Connecticut-made products, (3) direct Connecticut manufacturers and producers of Connecticut-made products in need of assistance to the appropriate economic development entity or state agency, and (4) conduct efforts to promote interaction and business relationships between Connecticut manufacturers and producers of Connecticut-made products and retailers, marketers, chambers of commerce, regional tourism districts and other potential institutional purchasers of Connecticut-made products, including, but not limited to, (A) linking Connecticut manufacturers and producers of Connecticut-made products with potential purchasers through a separate feature of the Internet web site established pursuant to this section, and (B) organizing state-wide or regional events promoting Connecticut manufacturers and producers of Connecticut-made products, where such manufacturers, producers and institutional purchasers are invited to participate. The commissioner shall use his or her best efforts to solicit cooperation and participation from Connecticut manufacturers, producers of Connecticut-made products, retailers, marketers, chambers of commerce and regional tourism districts in such advertising, Internet-related and event planning efforts, including, but not limited to, soliciting private sector matching funds.

(c) The commissioner may adopt such regulations, in accordance with chapter 54, as he or she deems necessary to carry out the purposes of this section.

(June 12 Sp. Sess. P.A. 12-1, S. 206; P.A. 17-132, S. 1.)

History: P.A. 17-132 added provisions re development of logo and guidelines for use of logo and designated such provisions as Subsec. (a), designated existing provisions re promotion and marketing of products produced in Connecticut as Subsec. (b) and amended same to replace “shall” with “may” re establishment and administration of program, delete provision re grant-in-aid, replace “The commissioner shall” with “the commissioner may” re marketing and advertising campaign, delete provisions re report, designated existing provisions re adoption of regulations as Subsec. (c), and made technical and conforming changes.

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Sec. 32-6n. Electronic business portal. Any electronic business portal established by the Department of Economic and Community Development shall include, but not be limited to, (1) specific branding to reflect a state-wide branding program developed at the direction of the office of the Governor, (2) alignment with the Connecticut Economic Resource Center's online business assistance technology platform, and (3) functionality that allows municipalities to promote local resources on such portal, provided each municipality shall be responsible for providing and maintaining its content on such portal.

(P.A. 13-46, S. 1.)

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Secs. 32-6o to 32-6s. Reserved for future use.

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Sec. 32-6t. Promotion of locations designated as Connecticut Treasures or state-owned and operated museums. On or before October 1, 2012, the Commissioner of Economic and Community Development, in consultation with the State Historian, shall develop a program to designate locations in the state with cultural, educational or historical significance as “Connecticut Treasures”. Such program shall promote locations designated as Connecticut Treasures or state-owned and operated museums, and shall integrate existing programs of the Department of Economic and Community Development and the State Historian in the promotion of such locations to adults and children. Such program shall include a “Connecticut Treasures Passport”, which shall provide free or reduced admission to locations designated as Connecticut Treasures and all state-owned and operated museums for children younger than eighteen years of age who are accompanied by an adult.

(June 12 Sp. Sess. P.A. 12-1, S. 207; P.A. 21-193, S. 13.)

History: June 12 Sp. Sess. P.A. 12-1 effective June 15, 2012; P.A. 21-193 replaced references to Culture and Tourism Advisory Committee with State Historian, effective July 13, 2021.

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Sec. 32-6u. Connecticut antiques trail. Promotional program. The Department of Economic and Community Development shall, within available appropriations, establish a Connecticut antiques trail to identify and market sites in the state where antiques are sold. The department shall develop criteria to identify (1) major antique dealers, (2) communities that feature a high concentration of antique dealers, (3) auction houses that have annual sales in excess of one million dollars, and (4) antique dealers located within municipally designated antiques corridors for inclusion in the antiques trail. The department shall develop a program to promote the antiques trail, including, but not limited to, (A) directional and other signs and notices pertaining to the sites identified by the department, and (B) an Internet web site for the antiques trail.

(P.A. 13-231, S. 2; P.A. 16-202, S. 2.)

History: P.A. 16-202 added Subdiv. (4) re antique dealers located within municipally designated antiques corridors, effective June 7, 2016.

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Sec. 32-6v. Promotion of bioscience and biotechnology businesses in Southeastern Connecticut Planning Region. Program. (a) Not later than February 1, 2015, the Commissioner of Economic and Community Development shall establish and administer a program to promote and support the development of bioscience and biotechnology businesses in the Southeastern Connecticut Planning Region designated pursuant to section 16a-4a. The commissioner shall develop such program in consultation with Connecticut Innovations, Incorporated, Connecticut United for Research Excellence, Inc., the Southeastern Connecticut Enterprise Region, the Chamber of Commerce of Eastern Connecticut and other organizations in the region with experience in the formation of or assistance to start-up businesses, fundraising, networking and marketing. Such program shall include:

(1) Outreach efforts to entrepreneurs, regional community and business leaders and experts in the bioscience and biotechnology fields to determine the needs and objectives of such individuals, and to inform such individuals of state programs and resources to assist in the formation of bioscience and biotechnology businesses in said planning region;

(2) A marketing plan for bioscience and biotechnology development in said planning region, including: (A) An identification of assets, including the facilities and talent pool located in said planning region, (B) marketing tools to advertise such assets, (C) goals for such marketing plan, and (D) a timetable and budget for such marketing plan; and

(3) A working group that shall consist of not less than ten nor more than fifteen business and community leaders from said planning region to (A) encourage networking and planning between professionals from different fields, (B) support the development and occupancy of the incubator at CURE Innovation Commons, (C) assess the program established pursuant to this section, and (D) make recommendations to the commissioner concerning the development and implementation of such program; and

(c) Not later than February 1, 2017, the commissioner shall include in the annual report, pursuant to section 32-1m, a report on the program established pursuant to this section.

(P.A. 14-217, S. 212.)

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Sec. 32-6w. Display of temporary signage or flags by business on Connecticut antiques trail. Notwithstanding any provision of the general statutes or any municipal zoning ordinance or regulation, except those ordinances or regulations pertaining to the size of signage or flags, a business identified by the Department of Economic and Community Development as being on the Connecticut antiques trail, established pursuant to section 32-6u, may display temporary signage or flags, for not more than sixteen hours each day, indicating that the business is on such trail.

(P.A. 16-202, S. 1.)

History: P.A. 16-202 effective June 7, 2016.

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Sec. 32-7. Financial and technical assistance to municipal and regional economic development agencies. Applications. (a) The department is authorized to (1) promote and assist the formation of municipal or regional economic development commissions under sections 7-136 and 7-137, or any other provision of the general statutes or any special act; and (2) make available technical and financial assistance to any municipal or regional economic development commission, regional economic development corporation or a regional council of governments organized under sections 4-124i to 4-124p, inclusive. Such financial assistance may be provided to expand or establish the capacity for planning and implementation of regional economic development, including, but not limited to, business retention and recruitment, infrastructure enhancement, labor force development and financial credit availability. Financial assistance may be used for strategic economic development plans, establishment of regional economic databases, regional marketing for business retention and recruitment, coordination of economic development efforts with regional, local, state and federal agencies, surveys, land use studies, site development plans and for any other functions of economic development commissions as set forth in said sections 7-136 and 7-137 or any other provision of the general statutes or any special act.

(b) Such financial assistance, if any, shall be rendered upon such contractual arrangements as may be agreed upon by the department and the eligible applicant in accordance with their respective needs.

(c) Applications for financial assistance shall be submitted to the Commissioner of Economic and Community Development at such times and on such forms as the commissioner may prescribe. Each such application shall include, but not be limited to, the following: (1) Documentation that the applicant has staff with expertise in regional economic development to prepare an effective plan to market its services through such entities as chambers of commerce, industry trade associations, banks, local development corporations, community-based organizations and industrial development agencies; (2) a description of the applicant including its organization, membership, staff and sources of other funds, if any; (3) identification of the geographic region to be served; and (4) a description of the means for coordinating financial assistance available under this section with financial assistance available from other public and private funding sources within the region.

(d) The commissioner shall approve financial assistance on the basis of: (1) The ability of the applicant to administer the financial assistance authorized under this section; (2) the extent of coordination with other publicly and privately supported financial assistance programs available within the region represented by the applicant; and (3) the degree of public and private support within the region for the applicant.

(November, 1955, S. N178; 1959, P.A. 448; 1961, P.A. 27; February, 1965, P.A. 492, S. 3; 1967, P.A. 522, S. 33; 1969, P.A. 628, S. 17; 1971, P.A. 67, S. 1; P.A. 73-599, S. 22; 73-616, S. 32; P.A. 92-150; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 13-247, S. 305.)

History: 1959 act added “or redefine” to Subdiv. (a) and changed planning “authorities” to planning “agencies” in Subdiv. (b); 1961 act added capital improvement programming, renewal and development to purposes, changed “local” to “municipal” and added development and industrial or redevelopment agencies to Subdivs. (b) and (c); 1965 act specified commission's power to receive and accept funds from any source; 1967 act deleted authority to insure proper utilization of zoning police powers and renewal of substandard, obsolescent or blighted areas, to promote and assist formation of municipal planning, zoning or redevelopment agencies or commissions and other duties and powers re such agencies, substituting for these general reference to “sound state or interregional” planning, deleted references to chapters 124, 126 and 130 and deleted commission's power to adopt regulations re qualifications of community planners; 1969 act deleted commission's duty “to insure the economic and orderly development of the state” through specified means, deleted authority to define or redefine “logical economic and planning regions of the state”, to provide assistance to regional agencies for regional plans of development and to prepare and recommend state-wide or interregional plans, deleted reference to chapter 127 and replaced references to regional planning or economic development agencies with references to municipal or regional economic development commissions; 1971 act included assistance to regional councils of elected officials in Subsec. (1)(b); P.A. 73-599 replaced Connecticut development commission with department of commerce, here referred to as “the department” (P.A. 77-614 replaced commerce department with department of economic development); P.A. 73-616 added reference to regional councils of elected officials in Subsec. (2) for consistency with change enacted in P.A. 73-599; P.A. 92-150 made technical changes replacing numeric Subsec. designations with alphabetical designations and amended Subsec. (a) by expanding agencies eligible for assistance, amended Subsec. (b) to make the commissioner solely responsible for determining contractual arrangements, and added Subsecs. (c) re applications and (d) establishing criteria for approval of financial assistance; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 13-247 amended Subsec. (a) by deleting references to regional planning agency and regional council of elected officials and making a conforming change, effective January 1, 2015.

See Sec. 8-154a et seq. re contracts for state financial assistance.

See Sec. 8-161 re assistance toward preparation of capital improvements program.

Cited. 150 C. 342.

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Secs. 32-7a to 32-7d. Transferred to Chapter 50, Secs. 4-124c to 4-124f, inclusive.

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Sec. 32-7e. Regional Economic Development Assistance Revolving Fund. (a) There is established a fund to be known as the “Regional Economic Development Assistance Revolving Fund”. Repayment of principal and interest on loans made for regional economic development activities pursuant to chapters 130, 132, 588a and section 4-66c shall be credited to the fund and shall become part of the assets of the fund. The Regional Economic Development Assistance Revolving Fund may include other separate accounts. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the next fiscal year succeeding.

(b) All moneys received in consideration of financial assistance for regional economic development activities, including payments of principal and interest on any loans, shall be credited to the fund. The Commissioner of Economic and Community Development, with the approval of the Secretary of the Office of Policy and Management, may deposit any federal, private or other moneys received by the state in connection with regional economic development activities into the fund. The Commissioner of Economic and Community Development may allow funds to be retained by regional entities and not repaid to the fund.

(c) The commissioner may provide financial assistance from the assets of the fund to regional entities in the form of individual loans or grants. Regional entities may provide loans to nonprofit businesses or communities, not to exceed two hundred fifty thousand dollars per individual loan, from a regional fund established by the entity. Notwithstanding any provision of the general statutes, payment of any administrative expenses or other costs incurred by the department in carrying out the purposes of chapters 130, 132, 588a and section 4-66c, with respect to regional economic development activities, may be paid from the fund established in this section.

(P.A. 98-253, S. 11.)

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Sec. 32-7f. Economic development grants program. (a) The Commissioner of Economic and Community Development shall establish an economic development grants program to provide grants for the following programs and purposes:

(1) To develop a small business incubator program to entities operating incubator facilities, as defined in section 32-34;

(2) To promote, retain and expand hydrogen and fuel cell industries in Connecticut;

(3) To promote supply chain integration and encourage the adoption of digital manufacturing and information technologies;

(4) To provide training for small and medium-sized businesses in high-performance work practices;

(5) To support the development of marine science, maritime and homeland security defense industries;

(6) To promote research innovation and nanotechnology; and

(7) To provide technical assistance to small business owners.

(b) The Department of Economic and Community Development may enter into an agreement, pursuant to chapter 55a, with a person, firm, corporation or other entity to operate the grants program developed pursuant to subsection (a) of this section.

(c) The commissioner shall prescribe the manner in which an entity shall submit an application for a grant awarded as part of the grants program developed pursuant to this section, provided such application procedure includes (1) a request for proposal, or (2) a competitive award process.

(P.A. 11-61, S. 162.)

History: P.A. 11-61 effective July 1, 2012.

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Sec. 32-7g. Small Business Express program. (a) There is established within the Department of Economic and Community Development the Small Business Express program. Said program shall provide small businesses with various forms of financial assistance. A small business eligible for assistance through said program shall (1) employ not more than one hundred employees, (2) have operations in Connecticut, and (3) be in good standing with the payment of all state and local taxes and with all state agencies. It shall be the goal of the Department of Economic and Community Development that, on or before July 1, 2026, the Small Business Express program be self-funded and that the default rate of small businesses that receive assistance under said program be not more than twenty per cent.

(b) The Small Business Express program shall consist of various components, including (1) a revolving loan fund, as described in subsection (c) of this section, to support small business growth, (2) at least one minority business revolving loan fund, as described in subsection (d) of this section, to support the growth of minority-owned businesses, (3) a component established in consultation with representatives from Connecticut-based banks and a banking industry association, as described in subsection (e) of this section, and (4) a component established in consultation with Connecticut Innovations, Incorporated, as described in subsection (f) of this section. Notwithstanding the provisions of section 32-5a regarding relocation limits, the department may require, as a condition of receiving financial assistance pursuant to this section, that a small business receiving such assistance shall not relocate, as defined in section 32-5a, for five years after receiving such assistance or during the term of the loan, whichever is longer. All other conditions and penalties imposed pursuant to section 32-5a shall continue to apply to such small business.

(c) There is established as part of the Small Business Express program a revolving loan fund to provide loans, loan guarantees, loan portfolio guarantees, portfolio insurance and grants.

(d) (1) There is established as part of the Small Business Express program at least one revolving loan fund to provide loans to eligible small businesses that are owned by one or more members of a minority. As used in this subsection, (A) “minority business development entity” means a nonprofit organization (i) having a lending portfolio on or before June 9, 2016, from which at least seventy-five per cent of lending is provided to minority-owned businesses state-wide; and (ii) that provided technical assistance on or before June 9, 2016, provided at least seventy-five per cent of such assistance was provided to minority-owned businesses state-wide; and (B) “minority” means (i) Black Americans, including all persons having origins in any of the Black African racial groups not of Hispanic origin; (ii) Hispanic Americans, including all persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race; (iii) all persons having origins in the Iberian Peninsula, including Portugal, regardless of race; (iv) women; (v) Asian Pacific Americans and Pacific islanders; or (vi) American Indians and persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification.

(2) Notwithstanding the provisions of section 32-7h, the commissioner shall allocate from the available funding under the Small Business Express program a total of five million dollars for grants-in-aid to not more than two minority business development entities in each of the fiscal years ending June 30, 2016, to June 30, 2020, inclusive, for the purpose of establishing and administering minority business revolving loan funds. Moneys from such funds shall be used to (A) provide loans to eligible small businesses, and (B) fund the administrative costs associated with the provision of such loans by a minority business development entity, provided a minority business development entity may not use more than ten per cent of the amount received as a grant under this section to fund such costs. Such loans shall be used for acquisition or purchase of machinery and equipment, construction or leasehold improvements, relocation expenses, working capital, which may be used for payment of rent, or other business-related expenses, as authorized by the minority business development entity.

(3) Loans from a minority business revolving loan fund may be in amounts from ten thousand dollars to a maximum of five hundred thousand dollars, shall carry a maximum repayment rate of four per cent and shall be for a term of not more than ten years. The minority business development entity shall review and approve loan terms, conditions and collateral requirements in a manner that prioritizes job growth and retention.

(4) Any eligible small business owned by one or more members of a minority may apply for assistance from a minority business revolving loan fund, provided the minority business development entity shall give priority to applicants that, as part of their business plan, are creating new jobs that will be maintained for not less than twelve consecutive months.

(5) Loans from a minority business revolving fund shall be provided in such a manner that, on or before five years after the date such loan fund is established, the annual funds or revenues derived from investment income, loan repayments or any other sources received by the minority business development entity in connection with such loan fund is sufficient to fund the administrative costs associated with such loan fund.

(6) A minority business development entity receiving a grant pursuant to this subsection shall annually submit to the commissioner a financial audit of grant expenditures until all grant moneys have been expended by such entity. Any such audit shall be prepared by an independent auditor and if the commissioner finds that any such grant is used for purposes that are not in conformity with uses set forth in subdivisions (2) and (3) of this subsection, the commissioner may require repayment of such grant.

(e) The commissioner, in consultation with representatives from Connecticut-based banks and a banking industry association, may establish as part of the Small Business Express program a component operated in collaboration with Connecticut-based banks, which may include, but need not be limited to, loan guarantees, short-term loans used as a bridge to private sector financing and the transfer of loans issued under subsection (c) of this section. Any loans issued under such component shall be used for acquisition or purchase of machinery and equipment, construction or leasehold improvements, relocation expenses, working capital, which may be used for payment of rent, or other business-related expenses, as authorized by the commissioner. The provisions of subsections (c) and (d) of this section shall not be construed to apply to such component. Such component shall be administered by Connecticut Innovations, Incorporated, in collaboration with the Department of Economic and Community Development. For purposes of this section, “Connecticut-based banks” means banks and out-of-state banks, each as defined in section 36a-2, having deposit-taking branches in the state.

(f) The commissioner, in consultation with Connecticut Innovations, Incorporated, may establish as part of the Small Business Express program a component operated in collaboration with Connecticut Innovations, Incorporated, which may include, but need not be limited to, financial assistance consistent with the provisions and purposes of sections 32-23e, 32-23ii and 32-265. Such component may be administered by Connecticut Innovations, Incorporated, in collaboration with the Department of Economic and Community Development.

(g) Not later than February 1, 2022, and annually thereafter, the commissioner shall provide a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, appropriations, commerce and labor. Such report shall include available data on (1) the number of small businesses that received assistance under the Small Business Express program and the general categories of such businesses, (2) the amounts and types of assistance provided, (3) the total number of jobs on the date of application and the number proposed to be created or retained, (4) the most recent employment figures of the small businesses receiving assistance, (5) the default rate of small businesses that received assistance under said program, and (6) the progress of the lenders participating in said program in becoming self-sustainable. The contents of such report shall also be included in the department's annual report.

(h) The commissioner may contract with nongovernmental entities, including, but not limited to, nonprofit organizations, economic and community development organizations, lending institutions, and technical assistance providers to carry out the provisions of this section.

(Oct. Sp. Sess. P.A. 11-1, S. 1; June 12 Sp. Sess. P.A. 12-1, S. 199; P.A. 13-56, S. 1; P.A. 14-98, S. 43; P.A. 16-128, S. 1; May Sp. Sess. P.A. 16-3, S. 17; P.A. 17-219, S. 2; P.A. 18-122, S. 3; June Sp. Sess. P.A. 21-2, S. 283; P.A. 22-50, S. 1; 22-118, S. 154.)

History: Oct. Sp. Sess. P.A. 11-1 effective October 27, 2011; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (a) by adding provision authorizing commissioner to partner with Connecticut Credit Consortium lenders, replacing October 27, 2011, with June 15, 2012, re date as of which small business must meet criteria to be eligible for assistance, replacing “fifty” with “one hundred” re required number of employees and deleting provisions re small business to be a Connecticut-based business and registered in this state, amended Subsec. (b) by replacing provision re use of Subsidized Training and Employment program with provision re referral of small business applicants to said program and adding “or during the term of the loan, whichever is longer” re relocation prohibition, amended Subsec. (d) by adding “or purchase” re use of loans in Subdiv. (1) and replacing “five years” with “ten years” re term of loan in Subdiv. (2), amended Subsec. (e)(2) by changing maximum loan amount from $250,000 to $300,000 and adding provision re maximum repayment rate and term, and amended Subsec. (f) by adding “or purchase” re use of grant funds, effective June 15, 2012; P.A. 13-56 amended Subsec. (c) by changing mandatory priority for funding of economic base industries to permissive priority, adding provision re permissive priority for funding to exporters and making conforming changes; P.A. 14-98 amended Subsec. (f) by adding Subdiv. (3) re waiver of matching requirement, effective July 1, 2014; P.A. 16-128 amended Subsec. (a) by deleting reference to June 15, 2012, amended Subsec. (b) by adding Subdiv. (4) re not more than 2 minority business revolving loan funds and making technical changes, added new Subsec. (g) re revolving loan funds for minority-owned small businesses and redesignated existing Subsec. (g) re report as Subsec. (h), effective June 9, 2016; May Sp. Sess. P.A. 16-3 amended Subsec. (c) to add Subdiv. (3) re businesses located in designated innovation places; P.A. 17-219 amended Subsec. (b) by adding Subdiv. (5) re component established in consultation with representatives with Connecticut-based banks and a banking industry association and making technical changes, amended Subsecs. (d)(1), (e)(1), (f)(1) and (g)(2) by adding “, which may be used for payment of rent,”, added new Subsec. (h) re component operated in collaboration with Connecticut-based banks and redesignated existing Subsec. (h) re report as Subsec. (i); P.A. 18-122 made a technical change in Subsec. (b)(5), effective June 7, 2018; June Sp. Sess. P.A. 21-2 amended Subsec. (a) by deleting provision re streamlined application process and partnership with Connecticut Credit Consortium, deleting “, on at least fifty per cent of its working days during the preceding twelve months,” in Subdiv. (1), deleting former Subdiv. (3) re registration for not less than 12 months, redesignating existing Subdiv. (4) as Subdiv. (3) and adding provision re goal for program, amended Subsec. (b) by deleting former Subdivs. (2) and (3) re job creation incentive component and matching grant component, redesignating existing Subdiv. (4) as Subdiv. (2) and amending same by replacing “not more than two” with “at least one”, redesignating existing Subdiv. (5) as Subdiv. (3), adding new Subdiv. (4) re component established in consultation with Connecticut Innovations, Incorporated, and deleting provision re commissioner to provide package of assistance and referral, deleted former Subsec. (c) re streamlined application process, redesignated existing Subsec. (d) as Subsec. (c) and amended same by deleting Subdiv. (1) designator, replacing provisions re use of loans with provisions re use of revolving loan fund and deleting Subdivs. (2) and (3) re loan amounts and assistance from revolving loan fund, deleted Subsecs. (e) and (f) re job creation incentive component and matching grant component, redesignated existing Subsec. (g) as Subsec. (d) and amended same by replacing “not more than two” with “at least one” in Subdiv. (1) and changing maximum loan amount from $100,000 to $500,000 in Subdiv. (3), redesignated existing Subsec. (h) as Subsec. (e) and amended same by adding reference to Connecticut Innovations, Incorporated, and deleting provision re allocation of funding under Small Business Express program, added new Subsec. (f) re component operated in collaboration with Connecticut Innovations, Incorporated, redesignated existing Subsec. (i) as Subsec. (g) and amended same to replace “June 30, 2012” with “February 1, 2022” and “every six months” with “annually” re report, delete former Subdiv. (1) re number of applications, redesignate existing Subdivs. (2) to (5) as Subdivs. (1) to (4), adding new Subdivs. (5) and (6) re default rate and progress in becoming self-sustainable and made conforming and technical changes, effective July 1, 2021; P.A. 22-50 added Subsec. (h) re commissioner's authority to contract with nongovernmental entities, effective May 23, 2022; P.A. 22-118 made identical changes as P.A. 22-50, effective May 7, 2022.

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Sec. 32-7h. Small business express assistance account. (a) There is established an account to be known as the “small business express assistance account” which will be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Repayment of principal and interest on loans shall be credited to such fund and shall become part of the assets of the fund. Moneys in the account shall be expended by the Department of Economic and Community Development for the purposes of the Small Business Express program established pursuant to section 32-7g. Except as provided in subsection (d) of section 32-7g, all moneys received for the purposes of the Small Business Express program and payments of principal and interest on any loans given under said program shall be credited to the account.

(b) Except as provided in subsection (d) of section 32-7g, the Commissioner of Economic and Community Development may provide for the payment of any administrative expenses or other costs incurred by the department or its lender partners in carrying out the purposes of the Small Business Express program not to exceed five per cent of funding from this program from the account established pursuant to subsection (a) of this section, provided one per cent shall be dedicated to develop capacity for capital construction projects for minority business enterprises.

(June 12 Sp. Sess. P.A. 12-1, S. 201; P.A. 13-123, S. 7; June Sp. Sess. P.A. 15-5, S. 407; P.A. 16-128, S. 2; June Sp. Sess. P.A. 21-2, S. 285.)

History: June 12 Sp. Sess. P.A. 12-1 effective June 15, 2012; P.A. 13-123 made a technical change in Subsec. (a), effective June 18, 2013; June Sp. Sess. P.A. 15-5 amended Subsec. (b) by increasing maximum payment for administrative costs from 4 per cent to 5 per cent and adding provision re 1 per cent to be dedicated to developing capacity for capital construction projects for minority business enterprises, effective July 1, 2015; P.A. 16-128 added “Except as provided in subsection (g) of section 32-7g,” and made conforming changes, effective June 9, 2016; June Sp. Sess. P.A. 21-2 replaced references to Sec. 32-7g(g) with references to Sec. 32-7g(d), effective July 1, 2021.

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Secs. 32-7i to 32-7l. Reserved for future use.

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Sec. 32-7m. Definitions. As used in this section and sections 32-7n and 32-7o:

(1) “Administrative costs” means the costs paid or incurred by the administrator, including, but not limited to, peer review costs, professional fees, allocated staff costs and other out-of-pocket costs attributable to the administration and operation of the Connecticut Manufacturing Innovation Fund;

(2) “Administrator” means the Department of Economic and Community Development;

(3) “Advisory board” means the Manufacturing Innovation Advisory Board established pursuant to section 32-7n;

(4) “Eligible recipient” means (A) an aerospace, medical device or other company or nonprofit organization specializing in or providing technologically advanced commercial products or services; (B) an entity desiring to leverage federal grant funds to support advancements in manufacturing; or (C) a state or federally certified education and training program designed to meet an anticipated demand for appropriately skilled and trained workers;

(5) “Financial assistance” means any and all forms of grants, extensions of credit, loans or loan guarantees, equity investments or other forms of financing; and

(6) “Return on investment” means any and all forms of principal or interest payments, guarantee fees, returns on equity investments, royalties, options, warrants and debentures and all other forms of remuneration to the administrator in return for any financial assistance offered or provided.

(P.A. 14-98, S. 47.)

History: P.A. 14-98 effective May 22, 2014.

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Sec. 32-7n. Manufacturing Innovation Advisory Board. (a) There is established a Manufacturing Innovation Advisory Board that shall consist of the following members: (1) Four appointed by the Governor; (2) one appointed by the president pro tempore of the Senate; (3) one appointed by the speaker of the House of Representatives; (4) one appointed by the majority leader of the Senate; (5) one appointed by the majority leader of the House of Representatives; (6) one appointed by the minority leader of the Senate; (7) one appointed by the minority leader of the House of Representatives; (8) the Chief Workforce Officer, or the officer's designee; and (9) the Commissioner of Economic and Community Development, or the commissioner's designee, who shall serve as the chairperson of the advisory board. Each appointed member shall (A) have skill, knowledge and experience in industries and sciences related to aerospace, medical devices, digital manufacturing, digital communication or advanced manufacturing; (B) be a university faculty member in or hold a graduate degree in a related discipline, including, but not limited to, additive manufacturing and materials science; (C) have manufacturing education and training expertise; or (D) represent manufacturing related businesses or professional organizations. Appointed members shall each serve a term that is coterminous with the respective appointing authority. Each member shall hold office until a successor is appointed. Any vacancy occurring on the advisory board, other than by expiration of term, shall be filled in the same manner as the original appointment for the balance of the unexpired term.

(b) The chairperson shall call the first meeting of the advisory board not later than September 30, 2014. The advisory board shall meet at such times as the chairperson deems necessary.

(c) No member of the advisory board shall receive compensation for such member's services, except that each member shall be entitled to reimbursement for actual and necessary expenses incurred in the performance of such member's official duties.

(d) A majority of the members of said advisory board shall constitute a quorum for the transaction of any business or the exercise of any power of the advisory board. The advisory board may act by a majority of the members present at any meeting at which a quorum is in attendance, for the transaction of any business or the exercise of any power of the advisory board, except as otherwise provided in this section.

(e) Notwithstanding any provision of the general statutes, it shall not constitute a conflict of interest for a trustee, director, partner, officer, manager, shareholder, proprietor, counsel or employee of an eligible recipient, or any individual with a financial interest in an eligible recipient, to serve as a member of the advisory board, provided such trustee, director, partner, officer, manager, shareholder, proprietor, counsel, employee or individual shall abstain from deliberation, action or vote by the advisory board concerning any matter relating to such eligible recipient.

(P.A. 14-98, S. 48; June Sp. Sess. P.A. 21-2, S. 245)

History: P.A. 14-98 effective May 22, 2014; June Sp. Sess. P.A. 21-2 amended Subsec. (a) by adding Subdiv. (8) re Chief Workforce Officer or officer's designee, redesignating existing Subdiv. (8) as Subdiv. (9) and deleting provision re initial appointments to be made not later than July 1, 2014, effective July 1, 2021.

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Sec. 32-7o. Connecticut Manufacturing Innovation Fund. Financial assistance. Manufacturing innovation districts. Approval of expenditures. Guidelines and terms. Voucher program. Plan and budget. (a) There is established the Connecticut Manufacturing Innovation Fund, which shall be a nonlapsing fund held by the Treasurer separate and apart from all other moneys, funds and accounts. The following moneys shall be deposited in the fund: (1) Any moneys required or permitted by law to be deposited in the fund; (2) any moneys received in return for financial assistance awarded from the Connecticut Manufacturing Innovation Fund pursuant to the program established in subsection (k) of this section; (3) all private contributions, gifts, grants, donations, bequests or devises received by the fund; and (4) to the extent not otherwise prohibited by state or federal law, any local, state or federal funds received by the fund. Investment earnings credited to the assets of such fund shall become part of the assets of such fund. The Treasurer shall invest the moneys held by the Connecticut Manufacturing Innovation Fund subject to use for financial assistance in accordance with subsections (d) and (k) of this section.

(b) Any moneys held in the Connecticut Manufacturing Innovation Fund may, pending the use or application of the proceeds thereof for an authorized purpose, be (1) invested and reinvested in such obligations, securities and investments as are set forth in subsection (f) of section 3-20, in participation certificates in the Short Term Investment Fund created under sections 3-27a and 3-27f and in participation certificates or securities of the Tax-Exempt Proceeds Fund created under section 3-24a, (2) deposited or redeposited in any bank or banks, at the direction of the Treasurer, or (3) invested in participation units in the combined investment funds, as defined in section 3-31b. Proceeds from investments authorized by this subsection shall be credited to the Connecticut Manufacturing Innovation Fund.

(c) The Connecticut Manufacturing Innovation Fund shall not be deemed an account within the General Fund. The moneys of the fund shall be used in accordance with the provisions of subsections (d) and (k) of this section and are in addition to any other resources available from state, federal or other entities that support the purposes described in subsections (d) and (k) of this section.

(d) The Connecticut Manufacturing Innovation Fund shall be used: (1) To provide financial assistance to eligible recipients as may be approved by the Manufacturing Innovation Advisory Board pursuant to subsection (g) of this section, and (2) to pay or reimburse the administrator for administrative costs pursuant to subsection (m) of this section. Such financial assistance shall be awarded for the purpose of: (A) Furthering the development or modernization of manufacturing equipment; (B) supporting advancements in manufacturing; (C) supporting advanced manufacturing research and development; (D) supporting expansion and training by eligible recipients; (E) attracting new manufacturers to the state; (F) supporting education and training programs designed to meet an anticipated demand for appropriately skilled and trained workers; (G) matching federal grants or otherwise leveraging federal grant funds to aid Connecticut universities and nonprofit organizations to increase research efforts; and (H) funding a voucher program as described in subsection (k) of this section. Additionally, such financial assistance shall target aerospace, medical device, composite materials, digital manufacturing and other technologically advanced commercial products and services' supply chains and related disciplines that are likely to lead to an improvement in or development of products or services that are commercializable and designed to advance the state of technology and the competitive position of eligible recipients, and that promise, directly or indirectly, to lead to job growth in the state in these or related fields.

(e) The administrator, in consultation with the Manufacturing Innovation Advisory Board, shall give priority consideration to proposals from any company that is located in or planning to relocate to: (1) A distressed municipality, as defined in section 32-9p; (2) a targeted investment community, as defined in section 32-222; (3) a public investment community, as defined in section 7-545; (4) an enterprise zone designated pursuant to section 32-70; or (5) a manufacturing innovation district established pursuant to subsection (f) of this section.

(f) The administrator, in consultation with the Manufacturing Innovation Advisory Board, may establish manufacturing innovation districts in order to promote economic development priorities identified by the administrator.

(g) All expenditures from the Connecticut Manufacturing Innovation Fund, except for administrative costs reimbursed to the administrator pursuant to subsection (m) of this section, shall be approved by the advisory board, provided the advisory board may delegate to staff of the administrator the approval of transactions not greater than one hundred thousand dollars. Any such approval by the advisory board shall be (1) specific to an individual expenditure to be made; (2) for budgeted expenditures with such variations as the advisory board may authorize at the time of such budget approval; or (3) for a financial assistance program to be administered by staff of the administrator, subject to limits, eligibility requirements and other conditions established by the Manufacturing Innovation Advisory Board at the time of such program approval.

(h) The administrator shall provide any necessary staff, office space, office systems and administrative support for the operation of the Connecticut Manufacturing Innovation Fund in accordance with this section. In acting as administrator of the fund, the Department of Economic and Community Development shall have and may exercise all of the powers set forth in this chapter, provided expenditures from the fund shall be approved by the Manufacturing Innovation Advisory Board pursuant to subsection (g) of this section.

(i) The Manufacturing Innovation Advisory Board shall establish an application and approval process with guidelines and terms for financial assistance awarded from the Connecticut Manufacturing Innovation Fund to any eligible recipient. Such guidelines and terms shall include: (1) A requirement that any applicant for financial assistance operate in the state, or propose to relocate operations to the state, in whole or in part, as a condition of such financial assistance; (2) limitations on the total amount of financial assistance that may be awarded in the form of loans and grants; (3) eligibility requirements for loans and grants, including a requirement for applicants to obtain matching funds from nonstate sources; (4) a process for preliminary review of applications for strength and eligibility by the administrator before such applications are presented to the advisory board for consideration; (5) return on investment objectives, including, but not limited to, job growth and leveraged investment opportunities; and (6) such other guidelines and terms as the advisory board determines to be necessary and appropriate in furtherance of the objectives of this section.

(j) Financial assistance awarded from the Connecticut Manufacturing Innovation Fund to eligible recipients shall be used for costs related to facilities, necessary furniture, fixtures and equipment, tooling development and manufacture, materials and supplies, proof of concept or relevance, research and development, compensation, apprenticeship and such other costs that the Manufacturing Innovation Advisory Board determines pursuant to subsection (i) of this section to be eligible for financial assistance within the purposes of this section.

(k) The Manufacturing Innovation Advisory Board may establish a voucher program that shall provide eligible recipients access to technical experts in universities, nonprofit organizations and other organizations that can provide specialized expertise to such eligible recipients to solve engineering, marketing and other challenges. The Commissioner of Economic and Community Development, in consultation with the advisory board, may adopt regulations, in accordance with the provisions of chapter 54, to implement such voucher program.

(l) On or before July 1, 2015, and prior to each fiscal year thereafter, the administrator shall prepare a plan of operations and an operating and capital budget for the Connecticut Manufacturing Innovation Fund, provided not later than ninety days prior to the start of each fiscal year, the administrator shall submit such plan and budget to the Manufacturing Innovation Advisory Board for its review and approval.

(m) Administrative costs shall be paid or reimbursed to the administrator from the Connecticut Manufacturing Innovation Fund, provided the total of such administrative costs in any fiscal year shall not exceed five per cent of the total amount of the allotted funding for such fiscal year as determined in the operating budget prepared pursuant to subsection (l) of this section. Nothing in this section or section 32-7n shall be deemed to require the administrator to risk or expend the funds of the Department of Economic and Community Development in connection with the administration of the Connecticut Manufacturing Innovation Fund.

(n) Not later than January 1, 2016, and annually thereafter, the administrator shall provide a report of the activities of the Connecticut Manufacturing Innovation Fund to the Manufacturing Innovation Advisory Board for the advisory board's review and approval. Upon such approval, the advisory board shall provide such report, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to commerce. Such report shall contain available information on the status and progress of the operations and funding of the Connecticut Manufacturing Innovation Fund and the types, amounts and recipients of financial assistance awarded and any returns on investment.

(P.A. 14-98, S. 49; P.A. 16-193, S. 32.)

History: P.A. 14-98 effective May 22, 2014; P.A. 16-193 amended Subsec. (g) by substituting “subsection (m)” for “subsection (j)” re exception for administrative costs reimbursed to administrator.

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Sec. 32-7p. Technology Talent Advisory Committee. Membership. Duties. Pilot programs. Report. (a) There shall be a Technology Talent Advisory Committee within the Department of Economic and Community Development. Such committee shall consist of members appointed by the Commissioner of Economic and Community Development, including, but not limited to, representatives of The University of Connecticut, the Board of Regents for Higher Education, independent institutions of higher education, the Office of Workforce Strategy and private industry. Such members shall be subject to term limits prescribed by the commissioner. Each member shall hold office until a successor is appointed.

(b) The commissioner shall call the first meeting of the advisory committee not later than October 15, 2016. The advisory committee shall meet not less than quarterly thereafter and at such other times as the chairperson deems necessary. The Technology Talent Advisory Committee shall designate the chairperson of the committee from among its members.

(c) No member of the advisory committee shall receive compensation for such member's service, except that each member shall be entitled to reimbursement for actual and necessary expenses incurred during the performance of such member's official duties.

(d) A majority of members of the advisory committee shall constitute a quorum for the transaction of any business or the exercise of any power of the advisory committee. The advisory committee may act by a majority of the members present at any meeting at which a quorum is in attendance, for the transaction of any business or the exercise of any power of the advisory committee, except as otherwise provided in this section.

(e) Notwithstanding any provision of the general statutes, 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 advisory committee, provided such trustee, director, partner, officer or individual complies with all applicable provisions of chapter 10. All members of the advisory committee shall be deemed public officials and shall adhere to the code of ethics for public officials set forth in chapter 10, except that no member shall be required to file a statement of financial interest as described in section 1-83.

(f) The Technology Talent Advisory Committee shall, in the following order of priority, (1) calculate the number of software developers and other persons (A) employed in technology-based fields where there is a shortage of qualified employees in this state for businesses to hire, including, but not limited to, data mining, data analysis and cybersecurity, and (B) employed by businesses located in Connecticut as of December 31, 2016; (2) develop pilot programs to recruit software developers to Connecticut and train residents of the state in software development and such other technology fields, with the goal of increasing the number of software developers and persons employed in such other technology fields residing in Connecticut and employed by businesses in Connecticut by at least double the number calculated pursuant to subdivision (1) of this subsection by January 1, 2026; and (3) identify other technology industries where there is a shortage of qualified employees in this state for growth stage businesses to hire.

(g) The Technology Talent Advisory Committee may develop pilot programs for (1) marketing and publicity campaigns designed to recruit technology talent to the state; (2) student loan deferral or forgiveness for students who start businesses in the state; and (3) training, apprenticeship and gap-year initiatives.

(h) The Technology Talent Advisory Committee shall report, in accordance with the provisions of section 11-4a, and present such report to the joint standing committees of the General Assembly having cognizance of matters relating to commerce, education, higher education and finance, revenue and bonding on or before January 1, 2017, concerning the (1) pilot programs developed pursuant to subsections (f) and (g) of this section, (2) number of software developers and persons employed in technology-based fields described in subsection (f) of this section targeted for recruitment pursuant to subsection (f) of this section, and (3) timeline and measures for reaching the recruitment target.

(May Sp. Sess. P.A. 16-3, S. 23; P.A. 17-212, S. 1; June Sp. Sess. P.A. 21-2, S. 244.)

History: May Sp. Sess. P.A. 16-3 effective June 2, 2016; P.A. 17-212 made a technical change in Subsec. (a), effective July 10, 2017; June Sp. Sess. P.A. 21-2 amended Subsec. (a) by adding “, the Office of Workforce Strategy” and deleting provision re initial appointments to be made not later than September 30, 2016, effective July 1, 2021.

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Sec. 32-7q. Minority Business Initiative Advisory Board. Duties. Membership. (a) There is established a Minority Business Initiative Advisory Board, which shall be within the Department of Economic and Community Development. The advisory board shall: (1) Advise the Commissioner of Economic and Community Development with regard to increasing the availability of technical assistance, access to capital and access to state contracts to minority-owned businesses; and (2) develop and administer programs to foster financial literacy, minority employment and entrepreneurship, which may include, but need not be limited to, internship and externship programs, apprenticeship programs, entrepreneurship programs and subsidies to employers for job creation.

(b) The advisory board shall consist of the following members:

(1) Four appointed by the Commissioner of Economic and Community Development, in consultation with members of the minority business community. Each such appointee shall: (A) Have skill, knowledge and experience in business and business development, procurement, and state and federal contracting; (B) have skill, knowledge and experience in developing minority-owned businesses; (C) be a member of or hold an office in a community organization serving minority populations that has economic development, including, but not limited to, business and entrepreneurial development, as part of its mission; (D) have business development education and training expertise; (E) represent a business or organization that primarily engages in business development; or (F) own a business;

(2) One appointed by the speaker of the House of Representatives;

(3) One appointed by the president pro tempore of the Senate;

(4) One appointed by the minority leader of the House of Representatives;

(5) One appointed by the minority leader of the Senate; and

(6) The Commissioner of Economic and Community Development, or the commissioner's designee.

(c) All appointments to the task force shall be made not later than September 1, 2017. Members shall serve a two-year term and may not serve more than three such terms consecutively, except that each member shall hold office until a successor is appointed. Any vacancy shall be filled by the appointing authority.

(d) The commissioner shall schedule the first meeting of the advisory board not later than September 30, 2017. The advisory board shall elect a chairperson from among its members. The advisory board shall meet at such times as the chairperson deems necessary.

(e) No member of the advisory board shall receive compensation for such member's services.

(P.A. 17-219, S. 6.)

History: P.A. 17-219 effective July 11, 2017.

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Sec. 32-7r. Regional economic development matching grant pilot program. (a) The Department of Economic and Community Development shall establish, within available resources, a regional economic development matching grant pilot program for the purpose of providing matching funds to regional economic development corporations for the implementation of economic development programs in distressed municipalities. Such pilot program shall be available to any regional development corporation representing not less than four municipalities, one of which shall be a distressed municipality, as defined in section 32-9p. The Commissioner of Economic and Community Development may, in his or her discretion, allow a regional economic development corporation that represents less than four municipalities, one of which shall be a distressed municipality, to participate in the program. The department may enter into an agreement, pursuant to chapter 55a, with a person, firm, corporation or other entity to operate such program.

(b) Applications for participation in such pilot program shall be submitted in a manner prescribed by the department. Each application shall include, but need not be limited to, the following: (1) The location of the principal place of business of the applicant; (2) an explanation of the economic development program for which the matching grant is being applied; (3) the amount and source of funding for such program the applicant seeks to have matched; and (4) such other information the department deems necessary. The department shall not accept new applications for the regional economic development matching grant pilot program after June 30, 2026.

(c) In determining whether an applicant shall be selected for a matching grant pursuant to this section, the department, or the operator, if any, selected pursuant to subsection (a) of this section, shall consider, but need not be limited to, the following factors: (1) The description of the economic development program proposed by the applicant; (2) the resources and record of success of the applicant relative to economic development programs implemented by the applicant in the applicant's region; and (3) the potential impact of the proposed economic development program on the workforce in the region where the applicant is located. The department may provide, within available funds, matching grants to eligible applicants for the funding of economic development programs proposed in such applications.

(d) The Commissioner of Economic and Community Development may award matching grants to regional economic development corporations participating in the pilot program not exceeding in the aggregate ten million dollars. The amount of any matching grant issued pursuant to this section shall not exceed five million dollars.

(e) Not later than two years after the receipt of any financial aid pursuant to this section, and annually thereafter, each regional economic development corporation participating in the pilot program shall submit a report to the Department of Economic and Community Development detailing the progress of the economic development program proposed in such corporation's application and containing any additional information deemed necessary by the Commissioner of Economic and Community Development.

(f) Not later than January 15, 2022, and annually thereafter, the Commissioner of Economic and Community Development shall submit a report, in accordance with the provisions of section 11-4a, containing an evaluation of the operation and effectiveness of the pilot program to the joint standing committee of the General Assembly having cognizance of matters relating to commerce.

(P.A. 21-77, S. 1.)

History: P.A. 21-77 effective July 1, 2021.

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Sec. 32-7s. Office of Community Economic Development Assistance. Certification of community development corporations. Grants for projects in target areas. Bonds. Report. (a) As used in this section:

(1) “Certified community development corporation” means an organization exempt from taxation 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, that (A) focuses a substantial majority of the community development corporation's efforts on serving one or more target areas, (B) has as its purpose to engage local residents and businesses to work together to undertake community development programs, projects and activities that develop and improve urban communities in sustainable ways that create and expand economic opportunities for low and moderate-income people, (C) demonstrates to the Office of Community Economic Development Assistance established under subsection (b) of this section that the community development corporation's constituency is meaningfully represented on the board of directors of such community development corporation, through (i) the percentage of the board members who are residents of a target area or a community that such community development corporation serves or seeks to serve, (ii) the percentage of board members who are low or moderate-income, (iii) the racial and ethnic composition of the board in comparison to the racial and ethnic composition of the community such community development corporation serves or seeks to serve, or (iv) the use of mechanisms such as committees or membership meetings that the community development corporation uses to ensure that its constituency has a meaningful role in the governance and direction of the community development corporation, and (D) is certified by the Office of Community Economic Development Assistance pursuant to this section;

(2) “Department” means the Department of Economic and Community Development; and

(3) “Target area” means a contiguous geographic area in which the current unemployment rate exceeds the state unemployment rate by at least twenty-five per cent or in which the mean household income is at or below eighty per cent of the state mean household income, as determined by the most recent decennial census.

(b) (1) There is established an Office of Community Economic Development Assistance within the Department of Economic and Community Development. The office shall, within available appropriations, (A) provide assistance to organizations seeking to establish themselves or be certified as a community development corporation in the state, (B) provide grants to certified community development corporations for projects to be undertaken in a target area, (C) serve as the liaison between community development corporations and investors seeking to invest funds in such community development corporations and provide assistance in soliciting investment funds for such community development corporations, and (D) seek to ensure coordinated, efficient and timely responses to such organizations, community development corporations and investors.

(2) The office shall identify eligible target areas in the state and post such target areas on the department's Internet web site.

(c) (1) Any organization exempt from taxation 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, may apply to the Office of Community Economic Development Assistance to establish itself as or be certified as a community development corporation in the state. The office shall prescribe the form and manner of such application.

(2) (A) Any existing community development corporation that operates or seeks to operate in the state may apply to the office to be certified. The office shall certify any community development corporation that is exempt from taxation under Section 501(c)(3) of said Internal Revenue Code and meets the requirements set forth in subparagraphs (A) to (C), inclusive, of subdivision (1) of subsection (a) of this section. Each community development corporation that is established pursuant to this subsection shall be deemed to be certified.

(B) The office shall maintain a current list of certified community development corporations and shall post such list on the Internet web site of the department.

(3) The Office of Community Economic Development Assistance shall establish a grant program for projects to be undertaken by a certified community development corporation in a target area. Such projects shall include, but not be limited to, infrastructure improvements, housing rehabilitation, streetscape improvements and facade improvements for businesses. The office shall establish the application form and process for such grant program, the criteria for eligible projects and for awarding grants and any caps or limits on the amount or number of grants awarded. The office shall post information concerning the grant program on the department's Internet web site.

(d) (1) For the purposes described in subdivision (2) of this subsection, 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 fifty million dollars.

(2) The proceeds of the sale of such bonds, to the extent of the amount stated in subdivision (1) of this subsection, shall be used by the Department of Economic and Community Development for the purposes of carrying out the duties of the Office of Community Economic Development Assistance under subsection (b) of this section and the grant program under subsection (c) of this section.

(3) All provisions of section 3-20, 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 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.

(e) Not later than July 1, 2023, and annually thereafter, the Office of Community Economic Development Assistance shall submit a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to commerce, planning and development and finance, revenue and bonding. Such report shall include, but not be limited to, a description of the activities undertaken by the office in the preceding fiscal year, the number of community development corporations established and certified in the preceding fiscal year, the number and amounts of grants awarded to certified community development corporations in the preceding fiscal year and a description and the locations of the projects undertaken by certified community development corporations in the preceding fiscal year.

(P.A. 22-118, S. 361.)

History: P.A. 22-118 effective July 1, 2022.

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Sec. 32-7t. JobsCT tax rebate program. Eligibility. Applications. Rebate amount calculation. Report. (a) As used in this section:

(1) “Commissioner” means the Commissioner of Economic and Community Development;

(2) “Discretionary FTE” means an FTE that is paid qualified wages and does not meet the threshold wage requirements to be a qualified FTE but is approved by the commissioner pursuant to subdivision (4) of subsection (c) of this section;

(3) “Distressed municipality” has the same meaning as provided in section 32-9p;

(4) “Full-time equivalent” or “FTE” means the number of employees employed at a qualified business, calculated in accordance with subsection (d) of this section;

(5) “Full-time job” means a job in which an employee is required to work at least thirty-five or more hours per week. “Full-time job” does not include a temporary or seasonal job;

(6) “Median household income” means the median annual household income for residents in a municipality as calculated from the U.S. Census Bureau's five-year American Community Survey or another data source, at the sole discretion of the commissioner;

(7) “New employee” means a person or persons hired by the qualified business to fill a full-time equivalent position. A new employee does not include a person who was employed in this state by a related person with respect to the qualified business within twelve months prior to a qualified business' application to the commissioner for a rebate allocation notice for a job creation rebate pursuant to subsection (c) of this section;

(8) “New FTEs” means the number of FTEs that (A) did not exist in this state at the time of a qualified business' application to the commissioner for a rebate allocation notice for a job creation rebate pursuant to subsection (c) of this section, (B) are not the result of FTEs acquired due to a merger or acquisition, (C) are filled by a new employee, (D) are qualified FTEs, and (E) are not FTEs hired to replace FTEs that existed in the state after January 1, 2020. The commissioner may issue guidance on the implementation of this definition;

(9) “New FTEs created” means the number of new FTEs that the qualified business is employing at a point-in-time at the end of the relevant time period;

(10) “New FTEs maintained” means the total number of new FTEs employed throughout a relevant time period;

(11) “Opportunity zone” means a population census tract that is a low-income community that is designated as a “qualified opportunity zone” pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 115-97, as amended from time to time;

(12) “Part-time job” means a job in which an employee is required to work less than thirty-five hours per week. “Part-time job” does not include a temporary or seasonal job;

(13) “Qualified business” means a person that is (A) engaged in business in an industry related to finance, insurance, manufacturing, clean energy, bioscience, technology, digital media or any similar industry, as determined by the sole discretion of the commissioner, and (B) subject to taxation under chapter 207, 208 or 228z;

(14) “Qualified FTE” means an FTE who is paid qualified wages of at least eighty-five per cent of the median household income for the location where the FTE position is primarily located, scaled in proportion to the FTE fraction, or thirty-seven thousand five hundred dollars, scaled in proportion to the FTE fraction, whichever is greater;

(15) “Qualified wages” means wages sourced to this state pursuant to section 12-705;

(16) “Rebate period” means the calendar years in which a tax rebate provided for in this section is to be paid pursuant to a contract executed pursuant to subsection (c) of this section; and

(17) “Related person” means (A) a corporation, limited liability company, partnership, association or trust controlled by the qualified business, (B) an individual, corporation, limited liability company, partnership, association or trust that is in control of the qualified business, (C) a corporation, limited liability company, partnership, association or trust controlled by an individual, corporation, limited liability company, partnership, association or trust that is in control of the qualified business, or (D) a member of the same controlled group as the qualified business. For the purposes of this subdivision, “control” means (i) ownership, directly or indirectly, of stock possessing fifty per cent or more of the total combined voting power of all classes of the stock of a corporation entitled to vote, (ii) ownership, directly or indirectly, of fifty per cent or more of the capital or profits interest in a partnership, limited liability company or association, or (iii) ownership, directly or indirectly, of fifty per cent or more of the beneficial interest in the principal or income of a trust. The ownership of stock in a corporation, of a capital or profits interest in a partnership, of a limited liability company or association or of a beneficial interest in a trust shall be determined in accordance with the rules for constructive ownership of stock provided in Section 267(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, other than paragraph (3) of said section.

(b) There is established a JobsCT tax rebate program under which qualified businesses that create jobs in this state, in accordance with the provisions of this section, may be allowed a tax rebate, which shall be treated as a credit against the tax imposed under chapter 208 or 228z or as an offset of the tax imposed under chapter 207.

(c) (1) To be eligible to claim a rebate under this section, a qualified business shall apply to the commissioner in accordance with the provisions of this subsection. The application shall be on a form prescribed by the commissioner and may require information, including, but not limited to, the number of new FTEs to be created by the qualified business, the number of current FTEs employed by the qualified business, feasibility studies or business plans for the increased number of FTEs, projected state and local revenue that may reasonably derive as a result of the increased number of FTEs and any other information necessary to determine whether there will be net benefits to the economy of the municipality or municipalities in which the qualified business is primarily located and the state.

(2) Upon receipt of an application, the commissioner shall determine (A) whether the qualified business making the application will be reasonably able to meet the FTE hiring targets and other metrics as presented in such application, (B) whether such qualified business' proposed job growth would provide a net benefit to economic development and employment opportunities in the state, and (C) whether such qualified business' proposed job growth will exceed the number of jobs at the business that existed prior to January 1, 2020. The commissioner may require the applicant to submit additional information to evaluate an application. Each qualified business making an application shall satisfy the requirements of this subdivision, as determined by the commissioner, to be eligible for the JobsCT tax rebate program.

(3) The commissioner, upon consideration of an application and any additional information, may approve an application in whole or in part or may approve an application with amendments. If the commissioner disapproves an application, the commissioner shall identify the defects in such application and explain the specific reasons for the disapproval. The commissioner shall render a decision on an application not later than ninety days after the date of its receipt by the commissioner.

(4) The commissioner may approve an application in whole or in part by a qualified business that creates new discretionary FTEs or may approve such an application with amendments if a majority of such new discretionary FTEs are individuals who (A) because of a disability, are receiving or have received services from the Department of Aging and Disability Services; (B) are receiving employment services from the Department of Mental Health and Addiction Services or participating in employment opportunities and day services, as defined in section 17a-226, operated or funded by the Department of Developmental Services; (C) have been unemployed for at least six of the preceding twelve months; (D) have been convicted of a misdemeanor or felony; (E) are veterans, as defined in section 27-103; (F) have not earned any postsecondary credential and are not currently enrolled in an postsecondary institution or program; or (G) are currently enrolled in a workforce training program fully or substantially paid for by the employer that results in such individual earning a postsecondary credential.

(5) The commissioner may combine approval of an application with the exercise of any of the commissioner's other powers, including, but not limited to, the provision of other financial assistance.

(6) The commissioner shall enter into a contract with an approved qualified business, which shall include, but need not be limited to, a requirement that the qualified business consent to the Department of Economic and Community Development's access of data compiled by other state agencies, including, but not limited to, the Labor Department, for the purposes of audit and enforcement and, if a qualified business is approved by the commissioner in accordance with subdivision (4) of this subsection, the required wage such business shall pay new discretionary FTEs to qualify for the tax rebates provided for in subsection (f) of this section.

(7) Upon signing a contract with an approved qualified business, the commissioner shall issue a rebate allocation notice stating the maximum amount of each rebate available to such business for the rebate period and the specific terms that such business shall meet to qualify for each rebate. Such notice shall certify to the approved qualified business that the rebates may be claimed by such business if it meets the specific terms set forth in the notice.

(d) For the purposes of this section, the FTE of a full-time job or part-time job is based on the hours worked or expected to be worked by an employee in a calendar year. A job in which an employee worked or is expected to work one thousand seven hundred fifty hours or more in a calendar year equals one FTE. A job in which an employee worked or is expected to work less than one thousand seven hundred fifty hours equals a fraction of one FTE, where the fraction is the number of hours worked in a calendar year divided by one thousand seven hundred fifty. The commissioner shall have the discretion to adjust the calculation of FTE.

(e) (1) In each calendar year of the rebate period, a qualified business approved by the commissioner pursuant to subdivision (3) of subsection (c) of this section that employs at least twenty-five new FTEs in this state by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed shall be allowed a rebate equal to the greater of the following amounts:

(A) The sum of:

(i) The lesser of (I) the new FTEs created in an opportunity zone or distressed municipality on December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) the new FTEs maintained in an opportunity zone or distressed municipality in the previous calendar year, multiplied by fifty per cent of the income tax that would be paid on the average wage of the new FTEs, as determined by the applicable marginal rate set forth in chapter 229 for an unmarried individual based solely on such wages; and

(ii) The lesser of (I) the new FTEs created on December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) the new FTEs maintained in a location other than an opportunity zone or distressed municipality in the previous calendar year, multiplied by twenty-five per cent of the income tax that would be paid on the average wage of the new FTEs, as determined by the applicable marginal rate set forth in chapter 229 for an unmarried individual based solely on such wages; or

(B) The greater of:

(i) One thousand dollars multiplied by the lesser of (I) the new FTEs created by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) the new FTEs maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed; or

(ii) For tax credits earned, claimed or payable prior to January 1, 2024, two thousand dollars multiplied by the lesser of (I) the new FTEs created by December 31, 2022, or (II) the new FTEs maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed.

(2) In no event shall the rebate under this subsection exceed in any calendar year of the rebate period five thousand dollars multiplied by the lesser of (A) the new FTEs created by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (B) the new FTEs maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed.

(3) In no event shall an approved qualified business receive a rebate under this subsection in any calendar year of the rebate period if such business has not maintained at least twenty-five new FTEs in the calendar year immediately prior to the calendar year in which the rebate is being claimed.

(f) (1) In each calendar year of the rebate period, a qualified business approved by the commissioner pursuant to subdivision (4) of subsection (c) of this section that employs at least twenty-five new discretionary FTEs in this state by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed shall be allowed a rebate equal to the sum of the amount calculated pursuant to subdivision (1) of subsection (e) of this section and the greater of the following:

(A) The sum of:

(i) The lesser of the new discretionary FTEs (I) created in an opportunity zone or distressed municipality on December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) maintained in an opportunity zone or distressed municipality in the previous calendar year, multiplied by fifty per cent of the income tax that would be paid on the average wage of the new discretionary FTEs, as determined by the applicable marginal rate set forth in chapter 229 for an unmarried individual based solely on such wages; and

(ii) The lesser of the new discretionary FTEs (I) created on December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) maintained in a location other than an opportunity zone or distressed municipality in the previous calendar year, multiplied by twenty-five per cent of the income tax that would be paid on the average wage of the new discretionary FTEs, as determined by the applicable marginal rate set forth in chapter 229 for an unmarried individual based solely on such wages; or

(B) The greater of:

(i) Seven hundred fifty dollars multiplied by the lesser of the new discretionary FTEs (I) created by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (II) maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed; or

(ii) For tax credits earned, claimed or payable prior to January 1, 2024, one thousand five hundred dollars multiplied by the lesser of (I) the new FTEs created by December 31, 2022, or (II) the new FTEs maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed.

(2) In no event shall the rebate under this section exceed in any calendar year of the rebate period five thousand dollars multiplied by the lesser of the new discretionary FTEs (A) created by December thirty-first of the calendar year that is two calendar years prior to the calendar year in which the rebate is being claimed, or (B) maintained in the calendar year immediately prior to the calendar year in which the rebate is being claimed.

(3) In no event shall an approved qualified business receive a rebate under this subsection in any calendar year of the rebate period if such business has not maintained at least twenty-five new discretionary FTEs in the calendar year immediately prior to the calendar year in which the rebate is being claimed.

(g) (1) Notwithstanding the provisions of subdivisions (3) and (4) of subsection (c) of this section, the commissioner may not approve an application in whole or in part if the full amount of rebates that such applicant may be paid pursuant to subsection (e) or (f) of this section would result in the aggregate amount of rebates issued to all approved qualified businesses under this section exceeding forty million dollars in any fiscal year.

(2) Notwithstanding the provisions of subdivision (4) of subsection (c) of this section, the commissioner may not approve an application in whole or in part if the full amount of rebates that such applicant may be paid pursuant to subsection (f) of this section would result in the aggregate amount of rebates issued pursuant to subsection (f) of this section exceeding ten million dollars in any fiscal year.

(h) (1) A rebate under this section may be granted to an approved qualified business for not more than seven successive calendar years. A rebate shall not be granted until at least twenty-four months after the commissioner's approval of a qualified business' application.

(2) An approved qualified business that has fewer than twenty-five new FTEs created in each of two consecutive calendar years or, if such business is approved by the commissioner pursuant to subdivision (4) of subsection (c) of this section, fewer than twenty-five new discretionary FTEs in each of two consecutive calendar years shall forfeit all remaining rebate allocations, unless the commissioner recognizes mitigating circumstances of a regional or national nature, including, but not limited to, a recession.

(i) Not later than January thirty-first of each year during the rebate period, each approved qualified business shall provide information to the commissioner regarding the number of new FTEs or new discretionary FTEs created or maintained during the prior calendar year and the qualified wages of such new employees. Any information provided under this subsection shall be subject to audit by the Department of Economic and Community Development.

(j) Not later than March fifteenth of each year during the rebate period, the Department of Economic and Community Development shall issue the approved qualified business a rebate voucher that sets forth the amount of the rebate, as calculated pursuant to subsections (e) and (f) of this section, and the taxable year against which such rebate may be claimed. The approved qualified business shall claim such rebate as a credit against the taxes due under chapter 208 or 228z or as an offset of the tax imposed under chapter 207. The commissioner shall annually provide to the Commissioner of Revenue Services a report detailing all rebate vouchers that have been issued under this section.

(k) Beginning on January 1, 2023, and annually thereafter, the commissioner, in consultation with the office of the State Comptroller and the Auditors of Public Accounts, shall submit a report to the Office of Policy and Management on the expenses of the JobsCT tax rebate program and the number of FTEs and discretionary FTEs created and maintained.

(P.A. 22-118, S. 420.)

History: P.A. 22-118 effective July 1, 2022, and applicable to taxable years commencing on or after January 1, 2023.

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Sec. 32-7u. JobsCT tax rebates. Claims by affected business entities. Credit available to members of affected business entities.

As used in this section, “affected business entity” and “member” have the same meanings as provided in subsection (a) of section 12-699. An affected business entity that receives a rebate under section 32-7t shall claim such rebate as a credit against the tax due under chapter 228z. If the amount of the rebate allowed pursuant to section 32-7t exceeds the liability for the tax imposed under chapter 228z, the Commissioner of Revenue Services shall treat such excess as an overpayment and shall refund the amount of such excess, without interest, to the taxpayer. With respect to an affected business entity granted a rebate pursuant to section 32-7t, the credit available to the members of such entity pursuant to subdivision (1) of subsection (g) of section 12-699 shall be based upon the amount of tax due under chapter 228z from such entity prior to the application of the rebate granted pursuant to section 32-7t and any other payments made against such tax due.

(P.A. 22-118, S. 421.)

History: P.A. 22-118 effective July 1, 2022, and applicable to taxable years commencing on or after January 1, 2023.

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Sec. 32-8. Administration of federal funds. The department is authorized to accept any federal funds allotted to this state under any federal act for any projects which may be established by federal law for any of the purposes, or activities related thereto, of this chapter, and said department shall administer such funds in accordance with federal law. Said department may enter into contracts with the federal government concerning the use and repayment of such funds under such federal act and the prosecution of the work under any such contract.

(1955, June, 1955, S. 1895d; November, 1955, S. N179; February, 1965, P.A. 232, S. 2; 492, S. 4; 1967, P.A. 522, S. 34; 1969, P.A. 628, S. 18; P.A. 73-599, S. 23.)

History: 1965 acts deleted specific reference to funds allotted under Federal Housing Act of 1954, broadened reference to federal funds uses to include use for interregional and area planning, urban renewal or development, demonstration projects, etc. as well as for local and regional planning; 1967 act deleted reference to use of funds for local planning and for urban renewal or redevelopment and deleted reference to contracting power of municipal planning commissions, zoning commissions and planning and zoning commissions; 1969 act generalized use of funds for “any projects”, replacing use for “state, regional, interregional or area planning, demonstration projects or any other projects”, deleted provisions re separate account in which funds are to be deposited and re contracting powers of regional planning agencies; P.A. 73-599 replaced Connecticut development commission with department of commerce, here referred to as “the department” (P.A. 77-614 replaced commerce department with department of economic development).

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Sec. 32-8a. Registry of electronic commerce and information technology intensive companies. The Department of Economic and Community Development shall maintain a registry of qualifying electronic commerce or information technology intensive companies for the purposes of sections 10a-169a and 10a-169b. An updated registry shall be made available on the department's web page.

(P.A. 00-187, S. 29, 75.)

History: P.A. 00-187 effective July 1, 2000.

See Secs. 10a-169a, 10a-169b re technology scholarship and loan reimbursement pilot programs.

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Sec. 32-8b. Cooperative internship program. The Commissioner of Economic and Community Development shall assist in the development of a partnership between organizations, including, but not limited to, registered or otherwise qualified electronic commerce or information technology intensive companies, nonprofit organizations, business associations, state agencies or other nonprofit organizations, business associations, state agencies or other public or private entities as designated by the commissioner to develop a cooperative internship program for students attending institutions of higher education in this state or another state who are majoring in information-technology-related fields and promotion and recruitment activities that are designed to increase the number of information technology workers in the state.

(P.A. 00-187, S. 32, 75.)

History: P.A. 00-187 effective July 1, 2000.

See Secs. 10a-169a, 10a-169b re technology scholarship and loan reimbursement pilot programs.

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Sec. 32-8c. Connecticut Young Adult Conservation Corps program. Set-asides. Reports. Section 32-8c is repealed, effective July 10, 2017.

(P.A. 13-268, S. 3; P.A. 17-212, S. 6.)

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Sec. 32-9. Right of local redevelopment agencies to contract with federal government. Nothing in section 32-7 or 32-8 shall be construed to prevent any municipality which has organized a redevelopment agency under chapter 130 from entering directly into contracts with the federal government for any benefits available to such municipality under the Federal Housing Act of 1954, as amended, or under any other federal act for housing or planning.

(November, 1955, S. N180.)

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Sec. 32-9a. Transferred to Chapter 583, Sec. 32-56.

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Sec. 32-9b. Powers and duties re certain municipal development projects transferred from Community Affairs Commissioner. In accordance with the provisions of section 4-38d, all powers and duties of the Commissioner of Community Affairs under the provisions of sections 7-137b, 8-155 to 8-159, inclusive, and 8-170 to 8-185, inclusive, shall be transferred to the Connecticut Development Commission, and where the words “Commissioner of Community Affairs” are used in said sections, the words “Connecticut Development Commission” shall be substituted in lieu thereof.

(1971, P.A. 505, S. 1.)

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Sec. 32-9c. Transfer of powers and duties of the Connecticut Development Commission. (a) In accordance with the provisions of section 4-38d, all powers and duties of the Connecticut Development Commission under the provisions of chapter 579, shall be transferred to Connecticut Innovations, Incorporated and all the powers and duties of said commission under the provisions of this chapter shall be transferred to the Department of Economic and Community Development.

(b) In accordance with the provisions of section 4-38d, all powers and duties of the Connecticut Development Commission under the provisions of sections 7-137b, 8-155 to 8-159, inclusive, and 8-170 to 8-185, inclusive, shall be transferred to the Department of Economic and Community Development and the words “Connecticut Development Commission” or “commissioner” used in said sections, shall mean “Department of Economic and Community Development”.

(c) In accordance with the provisions of section 4-38d, all powers and duties of the Connecticut Development Commission under the provisions of sections 8-163 to 8-167, inclusive, shall be transferred to the Department of Economic and Community Development and the words “Connecticut Development Commission” and “Development Commission” when used in said sections shall mean “Department of Economic and Community Development”.

(P.A. 73-599, S. 18, 25, 36; P.A. 77-614, S. 284, 610; P.A. 88-265, S. 32, 36; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; June 12 Sp. Sess. P.A. 12-1, S. 152.)

History: P.A. 77-614 replaced department of commerce (successor to Connecticut development commission) with department of economic development, effective January 1, 1979; P.A. 88-265 deleted provisions re Connecticut development authority approval of loans and made technical changes; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; (Revisor's note: In 2003 a reference in Subsec. (a) to “chapter 578” was changed editorially by the Revisors to “this chapter”); pursuant to June 12 Sp. Sess. P.A. 12-1, “Connecticut Development Authority” was changed editorially by the Revisors to “Connecticut Innovations, Incorporated” in Subsec. (a), effective July 1, 2012.

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Sec. 32-9d. Transfer of personnel and properties. All classified personnel of the commission shall be transferred to the absorbing agency wherever feasible and all properties belonging to the commission shall be transferred to the department.

(P.A. 73-599, S. 6.)

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Secs. 32-9e to 32-9h. Transferred to Chapter 58, Secs. 4a-60g to 4a-60j, inclusive.

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Sec. 32-9i. Job incentive grant program for businesses in areas of high unemployment. (a) A job incentive account is hereby created within the General Fund. There shall be deposited in said account all moneys received by or appropriated to the Department of Economic and Community Development from time to time therefor. In order to stimulate and encourage the creation and growth of jobs in areas of high unemployment, the state, acting by the Department of Economic and Community Development, may provide job incentive grants to eligible businesses, whose new or expanded facilities are located in an eligible municipality having high unemployment and which facility results in the creation of not less than five full-time jobs, as provided in sections 32-9i to 32-9l, inclusive.

(b) Amounts in the job incentive account shall be used for the purpose of making such grants to businesses which are eligible for such assistance, and which make application for and receive approval for such assistance from the Commissioner of Economic and Community Development.

(P.A. 77-560, S. 1, 7; 77-614, S. 284, 587, 610; P.A. 78-303, S. 85, 136; P.A. 86-107, S. 5, 19; P.A. 93-382, S. 19, 69; P.A. 94-95, S. 11; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)

History: P.A. 77-614 and P.A. 78-303 replaced commissioner and department of commerce with commissioner and department of economic development, effective January 1, 1979; P.A. 86-107 removed reference to the state treasurer as trustee of the fund; P.A. 93-382 changed reference in Subsec. (a) from Sec. 32-9m to Sec. 32-9l, effective July 1, 1993; P.A. 94-95 changed name of fund from “Job Incentive Fund” to “job incentive account”; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development.

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Sec. 32-9j. Definitions. For the purposes of sections 32-9i to 32-9l, inclusive, the following terms shall have the following meanings unless the context indicates another meaning and intent:

(a) “Eligible municipality” means any municipality in the state which is a distressed municipality as defined in subsection (b) of section 32-9p, and any other municipality in the state which has a population of not less than ten thousand and which has a rate of unemployment which exceeds one hundred ten per cent of the state's average rate of unemployment, as determined by the Labor Department, for the calendar year preceding the determination of eligibility, provided no such other municipality with an unemployment rate of less than six per cent shall be eligible. Eligible municipalities shall be designated by the Department of Economic and Community Development.

(b) “Eligible business facility” means (1) a business facility located in an eligible municipality and for which a certificate of eligibility or commitment letter has been issued by the department prior to March 1, 1991; or (2) a business facility for which a certificate of eligibility has been issued by the department and which is located in an enterprise zone designated pursuant to section 32-70. A business facility for which such a certificate is issued shall be deemed an eligible business facility only during the twenty-four-month period following the day on which the certificate of eligibility is issued. A business facility may not become an eligible business facility for the purposes of sections 32-9i to 32-9l, inclusive, unless it meets each of the following requirements: (A) It is a facility which does not primarily serve said eligible municipality in which it is located. A facility shall be deemed to meet this requirement if it is used primarily for the manufacturing, processing or assembling of raw materials or manufactured products, or for research or industrial warehousing, or any combination thereof or, if located in an enterprise zone designated pursuant to section 32-70, it is to be used by an establishment, an auxiliary or an operating unit of an establishment, which is an economic base business as defined in subsection (d) of section 32-222 or has a North American Industrial Classification code of 114111 through 114210, 311111 through 339999 or 482111 through 484230, 488310, 488320, 488991, 493120, 493130, 493190, 511210, 512110, 512120, 512191, 522210, 522293, 522294, 522298, 522310, 522320, 522390, 523110, 523120, 523130, 523140, 523210, 523910, 524113, 524114, 524126, 524127, 524128, 524130, 524292, 541711, 541712, 551111, 551112, 551114, 561422, 611310, 611410, 611420, 611430, 611513, 611519, 611710 and 624410 or any business that is part of an economic cluster, as defined in subsection (e) of section 32-222, or any establishment or auxiliary or operating unit thereof, as defined in the North American Industrial Classification System Manual. A facility shall not be deemed to meet this requirement if (i) it is used primarily in making retail sales of goods or services to customers who personally visit such facility to obtain such goods or services, or (ii) it is used primarily as a hotel, apartment house or other place of business which furnishes dwelling space or accommodations to either residents or transients; (B) it is a facility which is newly constructed or has undergone major expansion or renovation as determined by the Commissioner of Economic and Community Development; and (C) it is a facility which will create in the eligible municipality in which it is located, as a direct result of such construction, expansion or renovation, not less than five new employment positions, or in the case of a facility located in an enterprise zone designated pursuant to section 32-70, not less than three new employment positions in the enterprise zone.

(d) “Department” means the Department of Economic and Community Development.

(e) “Eligibility period” means the twenty-four-month period following the day on which the certificate of eligibility is issued.

(f) “Full-time employee” means an employee who works a minimum of thirty-five hours per week.

(P.A. 77-560, S. 2, 7; 77-614, S. 284, 587, 610; P.A. 78-303, S. 85, 136; P.A. 79-508, S. 1, 5; P.A. 84-339, S. 1, 3; P.A. 86-258, S. 4, 8; P.A. 89-235, S. 2, 5; P.A. 90-270, S. 16, 38; P.A. 93-382, S. 20, 69; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 11-140, S. 15.)

History: P.A. 77-614 and P.A. 78-303 replaced commissioner and department of commerce with commissioner and department of economic development, effective January 1, 1979; P.A. 79-508 redefined “eligible municipality” to specifically include distressed municipalities and redefined “eligible business facility” to specify exclusion of “newly constructed” facilities and to clarify exclusion of facilities which create new jobs; P.A. 84-339 amended Subdiv. (a) to include only municipalities with a population of not less than ten thousand and amended Subdivs. (b) and (e) to provide for a 24-month noncalendar year eligibility period; P.A. 86-258 added to definition of “eligible business facility” in Subdiv. (b) certain service facilities located in an enterprise zone; P.A. 89-235 amended the definition of “eligible business facility” in Subdiv. (b) to make technical changes to the categories of eligible facilities located in an enterprise zone which are defined in the Standard Industrial Classification Manual, and to require the creation of three new employment positions for all facilities located in an enterprise zone; P.A. 90-270 amended Subdiv. (b) to redefine “eligible business facility” to include facilities located in enterprise zones and further expanded the categories of business such facilities can engage in to include health services, fishing, hunting and trapping, motor freight transportation and warehousing, water transportation, transportation by air, transportation services, security and commodity brokers, dealers, exchanges and services, and made technical changes; P.A. 93-382 changed references to Sec. 32-9m to Sec. 32-9l, effective July 1, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 11-140 amended Subdiv. (b) to replace references to Standard Industrial Classification Manual codes with references to North American Industrial Classification codes and add provisions re economic base business and economic cluster, effective July 1, 2011.

Cited. 28 CA 1.

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Sec. 32-9k. Business facilities qualified for job incentive grants. (a) The commissioner shall initiate and conduct the implementation of a program designed to carry out the purposes of sections 32-9i to 32-9l, inclusive. Any business facility which qualifies under the definition contained in subsection (b) of section 32-9j may file with the commissioner an application for a certificate that such facility is an eligible business facility. Such application shall be in such form and shall contain such information, exhibits and supporting data as the commissioner may prescribe.

(b) If the commissioner finds that a business facility described in an application for a certificate of eligibility meets the requirements in subsection (b) of section 32-9j, the commissioner is authorized to issue such certificate. Such certificate shall specify the time period to which it relates and in which such business facility is an eligible business facility for the purposes of sections 32-9i to 32-9l, inclusive. A certificate of eligibility shall specify and identify the location of the eligible business facility to which it relates and, by appropriate designation, the jobs created by the business facility described in such certificate, during the time period to which such certificate relates. Any certificate of eligibility issued prior to July 1, 1984, shall remain in effect for the period for which it was initially issued and may be extended or renewed by the commissioner for a period not to exceed two calendar years from the original expiration date.

(c) A certificate of eligibility may be revoked by the commissioner, after a hearing, if the commissioner finds that the facility therein described fails in any respect to meet the eligibility requirements in sections 32-9i to 32-9l, inclusive, or may be modified if the commissioner finds that statements therein with reference to eligibility under sections 32-9i to 32-9l, inclusive, are not in accordance with facts determined by the commissioner. Such revocation or modification may be ordered if the application for the certificate and other information supplied by the applicant failed to fully and fairly disclose the facts relevant with reference to the requirements of sections 32-9i to 32-9l, inclusive, or if there has been a material change in such facts since the date when the certificate of eligibility was issued. In revoking any certificate of eligibility the commissioner shall determine whether the facility was an eligible business facility for any period of time, and if so, shall specify such period of time in a determination, or the commissioner may determine that such facility was not an eligible business facility at any time.

(P.A. 77-560, S. 3, 7; P.A. 84-339, S. 2, 3; P.A. 93-382, S. 21, 69.)

History: P.A. 84-339 provided for certificates issued after July 1, 1984, to be issued on a noncalendar year basis; P.A. 93-382 changed references to Sec. 32-9m to Sec. 32-9l, effective July 1, 1993.

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Sec. 32-9l. Determination of grant amounts. Regulations. (a) An eligible business facility shall be granted an amount determined by multiplying seven hundred fifty dollars or, in the case of any facility used primarily for the manufacturing, processing or assembling of raw materials or manufactured products, or for research or industrial warehousing, or any combination thereof, and located in an enterprise zone designated pursuant to section 32-70, for which not less than one hundred fifty full-time employees or fifty per cent of the full-time employment positions created by the facility are held by (1) residents of such zone, or (2) residents of such municipality who, at the time of employment, were eligible for training under the federal Comprehensive Employment Training Act or any other training program that replaces the Comprehensive Employment Training Act, two thousand two hundred fifty dollars, by the increase in the number of full-time employment positions, the costs of which are paid by the eligible business, directly resulting from the construction, renovation or expansion of the business facility, as determined by the department taking into account the employment requirements of business expansion, historical levels of employment and employment positions prior to the expansion, and such other factors as the department may deem appropriate. In the case of an eligible business facility located in an industrial district designated as part of an enterprise corridor zone under section 32-80, “such municipality”, as used in this subsection, means either the municipality in which the facility is located or any other municipality having an industrial district which is designated as part of the same enterprise corridor zone.

(b) Each business expansion of an applicant shall be treated separately by the department, and the department may establish a maximum number of employment positions for which benefits will be awarded under this section and sections 32-9j and 32-9p in order to make most effective use of the resources available for the job incentive grant program. The commissioner shall adopt regulations, in accordance with chapter 54, for the job incentive grant program and for grant eligibility thereunder.

(P.A. 77-560, S. 4, 7; P.A. 79-508, S. 2, 5; P.A. 81-445, S. 6, 11; P.A. 82-435, S. 4, 8; P.A. 83-381, S. 3; P.A. 86-258, S. 5, 8; P.A. 90-270, S. 22, 38; P.A. 93-382, S. 22, 69; P.A. 96-239, S. 5, 6, 17; P.A. 14-122, S. 151.)

History: P.A. 79-508 essentially replaced previous provisions, establishing new method for calculation of grant amount and substituting new provisions in Subsec. (b) for provision which had limited total number of jobs “for which all grants may be made under this section in any calendar year” to 1,000; P.A. 81-445 added double grant amount for facilities in enterprise zones in Subsec. (a), effective July 1, 1982; P.A. 82-435 inserted a 30% resident employee or municipal CETA eligible employee requirement for businesses in enterprise zones to be eligible for the increased grant; P.A. 83-381 amended Subsec. (a) concerning determination of eligibility for grant for facilities in enterprise zones; P.A. 86-258 amended Subsec. (a) to increase grant for certain manufacturing, research and warehousing facilities located in enterprise zones, from $1,000 to $1,500; P.A. 90-270 amended Subsec. (a) by making businesses employing more than 150 full-time employees eligible for grants; P.A. 93-382 deleted reference to Sec. 32-9m in Subsec. (b), effective July 1, 1993; P.A. 96-239 amended Subsec. (a) by substituting $750 for $500, 50% for 30%, and $2,250 for $1,500 in formula for determining grant amount, and defining “such municipality” relative to enterprise corridor zone eligible business facilities, effective July 1, 1996; P.A. 14-122 made technical changes in Subsec. (a).

See chapter 585 re enterprise zones.

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Sec. 32-9m. Report. Section 32-9m is repealed, effective July 1, 1993.

(P.A. 77-560, S. 5, 7; P.A. 79-508, S. 3, 5; P.A. 81-106, S. 1, 2; P.A. 93-382, S. 67, 69.)

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Sec. 32-9n. Office of Small Business Affairs. (a) There is established within the Department of Economic and Community Development an Office of Small Business Affairs. Such office shall aid and encourage small business enterprises, particularly those owned and operated by minorities and other socially or economically disadvantaged individuals in Connecticut. As used in this section, “minority” means: (1) Black Americans, including all persons having origins in any of the Black African racial groups not of Hispanic origin; (2) Hispanic Americans, including all persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race; (3) all persons having origins in the Iberian Peninsula, including Portugal, regardless of race; (4) women; (5) Asian Pacific Americans and Pacific islanders; or (6) American Indians and persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification.

(b) Said Office of Small Business Affairs shall: (1) Administer at least one regional office of the small business development center program within the Department of Economic and Community Development; (2) coordinate, with the director of the small business development center program, the flow of information within the technical and management assistance program within the Department of Economic and Community Development; (3) encourage Connecticut Innovations, Incorporated to grant loans to small businesses, particularly those owned and operated by minorities and other socially or economically disadvantaged individuals; (4) coordinate and serve as a liaison between all federal, state, regional and municipal agencies and programs affecting small business affairs; (5) administer any business management training program established under section 32-352 or section 32-355 as the Commissioner of Economic and Community Development may determine; (6) provide a single point of contact for small businesses seeking financial and technical assistance from the state and quasi-public agencies; (7) coordinate all state funded revolving loan funds used to assist small businesses; and (8) establish, in cooperation with the Commissioner of Economic and Community Development, and within available appropriations, an informational web page with a list and links to all small business resources available and post them in a conspicuous place on the department's web site. The office shall update this information on its web site on at least a quarterly basis.

(c) On or after February 1, 2011, the Office of Small Business Affairs shall compile a summary of all small business activities and programs available and incorporate such summary into the report required pursuant to section 32-1m.

(P.A. 77-508, S. 1, 2; 77-614, S. 284, 587, 610; P.A. 78-303, S. 85, 136; P.A. 82-358, S. 4, 10; P.A. 87-577, S. 2; P.A. 94-152, S. 2, 3; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 99-208, S. 7; 99-233, S. 3, 7; P.A. 10-145, S. 1; June 12 Sp. Sess. P.A. 12-1, S. 152.)

History: P.A. 77-614 and P.A. 78-303 replaced department of commerce with department of economic development, effective January 1, 1979; P.A. 82-358 defined minority in Subsec. (a) and added reference to specific inclusion of minority business enterprises in set-aside program in Subsec. (b); P.A. 87-577 amended Subsec. (a)(2) by adding all persons having origins in the Iberian Peninsula, including Portugal; P.A. 94-152 transferred “all persons having origins in the Iberian Peninsula, including Portugal” from Subdiv. (2) to new Subdiv. (3) and renumbered former Subdivs. (3), (4) and (5) accordingly, effective July 1, 1994; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 99-208 added Subsec. (b)(6) re business management training programs; P.A. 99-233 deleted Subsec. (b)(1) re authority to administer the set-aside program and renumbering the remaining Subdivs. accordingly, effective June 29, 1999; P.A. 10-145 amended Subsec. (b) to require administration of at least one regional office within department in Subdiv. (1), to require coordination with director of small business development center program in Subdiv. (2), and to add Subdivs. (6), (7) and (8) re single point of contact, coordinating all state revolving loan funds and establishing web page, and added Subsec. (c) re annual report, effective June 7, 2010; pursuant to June 12 Sp. Sess. P.A. 12-1, “Connecticut Development Authority” was changed editorially by the Revisors to “Connecticut Innovations, Incorporated” in Subsec. (b), effective July 1, 2012.

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Sec. 32-9o. Industrial growth in areas of high unemployment. Legislative determination. It is hereby found and declared as a matter of legislative determination that: (a) There is a serious need for the investment of private capital in business enterprises located in municipalities experiencing conditions of high unemployment, poverty, aging housing stock and low or declining rates of growth in job creation, population and per capita income; (b) high property tax rates and the unavailability or high cost of credit to business organizations have discouraged industrial activity in such municipalities and perpetuated prevailing patterns of economic and social stress; (c) private capital investment in the construction, renovation and expansion of manufacturing and other industrial facilities will best contribute to increasing employment and an expanding tax base in such municipalities and the development of a more productive and balanced economy in the state; and (d) the tax, grant and other financial incentives provided by subdivisions (59) and (60) of section 12-81 and sections 12-217e, 32-9p to 32-9s, inclusive, and 32-23p to encourage such private investment are important and necessary applications of the resources of the state in the exercise of its responsibility to preserve and foster the health, safety and general welfare of the state and its people. Accordingly the necessity, in the public interest and for the public benefit and good, of the provisions under said sections is hereby declared as a matter of legislative determination.

(P.A. 78-357, S. 1, 16; June Sp. Sess. P.A. 98-1, S. 66, 121.)

History: June Sp. Sess. P.A. 98-1 made a technical change, effective June 24, 1998.

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Sec. 32-9p. Definitions. As used in subdivisions (59) and (60) of section 12-81 and sections 12-217e, 32-9p to 32-9s, inclusive, and 32-23p, the following words and terms have the following meanings:

(a) “Area of high unemployment” means, as of the date of any final and official determination by the authority or the department to extend assistance under said sections, any municipality which is a distressed municipality as defined in subsection (b) of this section, and any other municipality in the state which in the calendar year preceding such determination had a rate of unemployment which exceeded one hundred ten per cent of the average rate of unemployment in the state for the same calendar year, as determined by the Labor Department, provided no such other municipality with an unemployment rate of less than six per cent shall be an area of high unemployment.

(b) “Distressed municipality” means, as of the date of the issuance of an eligibility certificate, any municipality in the state which, according to the United States Department of Housing and Urban Development meets the necessary number of quantitative physical and economic distress thresholds which are then applicable for eligibility for the urban development action grant program under the Housing and Community Development Act of 1977, as amended, or any town within which is located an unconsolidated city or borough which meets such distress thresholds. Any municipality which, at any time subsequent to July 1, 1978, has met such thresholds but which at any time thereafter fails to meet such thresholds, according to said department, shall be deemed to be a distressed municipality for a period of five years subsequent to the date of the determination that such municipality fails to meet such thresholds, unless such municipality elects to terminate its designation as a distressed municipality, by vote of its legislative body, not later than September 1, 1985, or not later than three months after receiving notification from the commissioner that it no longer meets such thresholds, whichever is later. In the event a distressed municipality elects to terminate its designation, the municipality shall notify the commissioner and the Secretary of the Office of Policy and Management in writing within thirty days. In the event that the commissioner determines that amendatory federal legislation or administrative regulation has materially changed the distress thresholds thereby established, “distressed municipality” means any municipality in the state which meets comparable thresholds of distress which are then applicable in the areas of high unemployment and poverty, aging housing stock and low or declining rates of growth in job creation, population and per capita income as established by the commissioner, consistent with the purposes of subdivisions (59) and (60) of section 12-81 and sections 12-217e, 32-9p to 32-9s, inclusive, and 32-23p, in regulations adopted in accordance with chapter 54. For purposes of sections 32-9p to 32-9s, inclusive, “distressed municipality” also means any municipality adversely impacted by a major plant closing, relocation or layoff, provided the eligibility of a municipality shall not exceed two years from the date of such closing, relocation or layoff. The Commissioner of Economic and Community Development shall adopt regulations, in accordance with the provisions of chapter 54, which define what constitutes a “major plant closing, relocation or layoff” for purposes of sections 32-9p to 32-9s, inclusive. “Distressed municipality” also means the portion of any municipality which is eligible for designation as an enterprise zone pursuant to subdivision (2) of subsection (b) of section 32-70.

(c) “Eligibility certificate” means a certificate issued by the department pursuant to section 32-9r evidencing its determination that a facility for which an application for assistance has been submitted qualifies as a manufacturing facility and is eligible for assistance under section 12-217e and subdivisions (59) and (60) of section 12-81.

(d) “Manufacturing facility” means any plant, building, other real property improvement, or part thereof, (1) which (A) is constructed or substantially renovated or expanded on or after July 1, 1978, in a distressed municipality, a targeted investment community as defined in section 32-222, an enterprise zone designated pursuant to section 32-70 or an airport development zone established pursuant to section 32-75d, or (B) is acquired on or after July 1, 1978, in a distressed municipality, a targeted investment community as defined in section 32-222, an enterprise zone designated pursuant to said section 32-70 or an airport development zone established pursuant to section 32-75d, by a business organization which is unrelated to and unaffiliated with the seller, after having been idle for at least one year prior to its acquisition and regardless of its previous use; (2) which is to be used for the manufacturing, processing or assembling of raw materials, parts or manufactured products, for research and development facilities directly related to manufacturing, for the significant servicing, overhauling or rebuilding of machinery and equipment for industrial use, or, except as provided in this subsection, for warehousing and distribution or, (A) if located in an enterprise zone designated pursuant to said section 32-70, which is to be used by an establishment, an auxiliary or an operating unit of an establishment, which is an economic base business as defined in subsection (d) of section 32-222 or has a North American Industrial Classification code of 114111 through 114210, 311111 through 339999, 482111 through 484230, 488310, 488320, 488991, 493120, 493130, 493190, 511210, 512110, 512120, 512191, 522210, 522293, 522294, 522298, 522310, 522320, 522390, 523110, 523120, 523130, 523140, 523210, 523910, 524113, 524114, 524126, 524127, 524128, 524130, 524292, 541711, 541712, 551111, 551112, 551114, 561422, 611310, 611410, 611420, 611430, 611513, 611519, 611710 or 624410 or any business that is part of an economic cluster, as defined in subsection (e) of section 32-222, or any establishment or auxiliary or operating unit thereof, as defined in the North American Industrial Classification System Manual, or (B) if located in an enterprise zone designated pursuant to said section 32-70, which is to be used by an establishment primarily engaged in supplying goods or services in the fields of computer hardware or software, computer networking, telecommunications or communications, or (C) if located in a municipality with an entertainment district designated under section 32-76 or established under section 2 of public act 93-311*, is to be used in the production of entertainment products, including multimedia products, or as part of the airing, display or provision of live entertainment for stage or broadcast, including support services such as set manufacturers, scenery makers, sound and video equipment providers and manufacturers, stage and screen writers, providers of capital for the entertainment industry and agents for talent, writers, producers and music properties and technological infrastructure support including, but not limited to, fiber optics, necessary to support multimedia and other entertainment formats, except entertainment provided by or shown at a gambling or gaming facility or a facility whose primary business is the sale or serving of alcoholic beverages, or (D) if located in an airport development zone established pursuant to section 32-75d, (i) which, for the Bradley Airport development zone, is to be used for the warehousing or motor freight distribution of goods transported by aircraft to or from an airport located in such zone, or (ii) in the opinion of the Commissioner of Economic and Community Development, may be dependent upon or directly related to such airport and which, except as provided in this subparagraph, is to be used for any other business service, excluding any service provided by an organization that has a North American Industrial Classification code of 237130, 441110 to 454390, inclusive, 532111, 532112 or 812930; and (3) for which the department has issued an eligibility certificate in accordance with section 32-9r. In the case of facilities which are acquired, the department may waive the requirement of one year of idleness if it determines that, absent qualification as a manufacturing facility under subdivisions (59) and (60) of section 12-81, and sections 12-217e, 32-9p to 32-9s, inclusive, and 32-23p, there is a high likelihood that the facility will remain idle for one year. In the case of facilities located in an enterprise zone designated pursuant to said section 32-70, (A) the idleness requirement in subparagraph (B) of subdivision (1) of this subsection, for business organizations which over the six months preceding such acquisition have had an average total employment of between six and nineteen employees, inclusive, shall be reduced to a minimum of six months, and (B) the idleness requirement shall not apply to business organizations with an average total employment of five or fewer employees, provided no more than one eligibility certificate shall be issued under this subparagraph for the same facility within a three-year period. Of those facilities which are for warehousing and distribution, only those which are newly constructed or which represent an expansion of an existing facility qualify as manufacturing facilities. In the event that only a portion of a plant is acquired, constructed, renovated or expanded, only the portion acquired, constructed, renovated or expanded constitutes the manufacturing facility. A manufacturing facility which is leased may for the purposes of subdivisions (59) and (60) of section 12-81 and sections 12-217e, 32-9p to 32-9s, inclusive, and 32-23p, be treated in the same manner as a facility which is acquired if the provisions of the lease serve to further the purposes of subdivisions (59) and (60) of section 12-81 and sections 12-217e, 32-9p to 32-9s, inclusive, and 32-23p and demonstrate a substantial, long-term commitment by the occupant to use the manufacturing facility, including a contract for lease for an initial minimum term of five years with provisions for the extension of the lease at the request of the lessee for an aggregate term which shall not be less than ten years, or the right of the lessee to purchase the facility at any time after the initial five-year term, or both. For a facility located in an enterprise zone designated pursuant to said section 32-70, and occupied by a business organization with an average total employment of ten or fewer employees over the six-month period preceding acquisition, such contract for lease may be for an initial minimum term of three years with provisions for the extension of the lease at the request of the lessee for an aggregate term which shall not be less than six years, or the right of the lessee to purchase the facility at any time after the initial three-year term, or both, and may also include the right for the lessee to relocate to other space within the same enterprise zone, provided such space is under the same ownership or control as the originally leased space or if such space is not under such same ownership or control as the originally leased space, permission to relocate is granted by the lessor of such originally leased space, and such relocation shall not extend the duration of benefits granted under the original eligibility certificate. Except as provided in subparagraph (B) of subdivision (1) of this subsection, a manufacturing facility does not include any plant, building, other real property improvement or part thereof used or usable for such purposes which existed before July 1, 1978.

(e) “Service facility” means a manufacturing facility described in subparagraph (A) or (B) of subdivision (2) of subsection (d) of this section, provided such facility is located outside of an enterprise zone in a targeted investment community.

(f) “Capital reserve fund bond”, “commissioner”, “department”, “industrial project” and “insurance fund” have the meanings provided in section 32-23d.

(g) “Municipality” means any town, city or borough in the state.

(P.A. 78-357, S. 2, 16; P.A. 79-492, S. 1, 4; 79-508, S. 4, 5; P.A. 81-109, S. 1, 3; 81-333, S. 1, 3; P.A. 83-246; 83-451, S. 3, 4; P.A. 85-578, S. 1, 5; P.A. 86-153, S. 2, 5; 86-258, S. 2, 8; P.A. 89-235, S. 3, 5; P.A. 90-270, S. 17, 38; P.A. 93-311, S. 3, 8; P.A. 94-247, S. 2, 8; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; 96-222, S. 23; 96-239, S. 10, 17; June Sp. Sess. P.A. 98-1, S. 67, 121; June Sp. Sess. P.A. 99-1, S. 16, 51; P.A. 00-174, S. 48, 83; June Sp. Sess. P.A. 01-6, S. 62, 85; P.A. 10-98, S. 5; P.A. 11-140, S. 16, 17; Oct. Sp. Sess. P.A. 11-1, S. 43; June 12 Sp. Sess. P.A. 12-1, S. 179; P.A. 14-122, S. 152, 153; P.A. 15-192, S. 4.)

*Note: Section 2 of public act 93-311 is special in nature and therefore has not been codified but remains in full force and effect according to its terms.

History: P.A. 79-492 expanded definition of “manufacturing facility” to include warehouse facilities, to allow waiver of one year of idleness requirement and to clarify applicability to newly constructed or expanded facilities; P.A. 79-508 redefined “area of high unemployment” to specifically include distressed municipalities and to specifically exclude other municipalities with unemployment rate of less than 6%; P.A. 81-109 deleted Subdiv. (g) which had defined “commissioner of commerce” to mean commissioner of economic development in certain sections; P.A. 81-333 amended Subsec. (b) to provide for five-year extension of distressed municipality status for municipalities previously so designated but subsequently failing to meet federal thresholds; P.A. 83-246 included research and development facilities within the definition of “manufacturing facility” in Subsec. (d); P.A. 83-451 amended Subsec. (b) to include within “distressed municipality” any municipality adversely affected by a major plant closing, relocation or layoff, as defined in regulations to be adopted by the commissioner of economic development; P.A. 85-578 amended Subsec. (b) to authorize a municipality to elect to terminate its designation as a “distressed municipality”; P.A. 86-153 amended Subdiv. (b) to require notification to the commissioner and the secretary of the office of policy and management in the event a distressed municipality elects to terminate its designation, effective April 28, 1986, and applicable in any municipality for purposes of the assessment year commencing October 1, 1986, and each assessment year thereafter; P.A. 86-258 added to definition of “distressed municipality” the portion of a municipality eligible for enterprise zone designation pursuant to Sec. 32-70(b)(2), amended definition of “manufacturing facility” to include certain service facilities located in an enterprise zone, to modify the idleness requirement for facilities located in an enterprise zone and to modify lease requirements for facilities generally; P.A. 89-235 amended the definition of “manufacturing facility” in Subsec. (d) to make technical changes to the categories of eligible facilities located in an enterprise zone which are defined in the Standard Industrial Classification Manual, deleted the requirement for the creation of ten or more new employment positions for such facilities, made technical changes to manufacturing facility leasing requirements and deleted provisions disqualifying business facilities that transfer personnel or employment positions from within a distressed municipality and which does not represent a net expansion of business operations and employment in such municipality; P.A. 90-270 amended Subsec. (d) to redefine “manufacturing facility” to include a facility located in a targeted investment community or an enterprise zone and expanded the categories of activities to include health services, fishing, hunting and trapping, motor freight transportation and warehousing, water transportation, transportation by air, transportation services, security and commodity brokers, dealers, exchanges and services; P.A. 93-311 amended the definition of “manufacturing facility” to include facilities located in an entertainment district, effective July 1, 1993; P.A. 94-247 redefined “manufacturing facility” to include facilities used in the production of multimedia products and technological infrastructure support, effective June 9, 1994; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 96-222 amended Subsec. (d)(2) by deleting the phrase “in bulk of manufactured products on other than a retail basis” after the phrase “warehousing and distribution” and Subsec. (d)(3) by deleting the phrase “of manufactured products on other than a retail basis,” after the phrase “warehousing and distribution”; P.A. 96-239 redefined “manufacturing facility” in Subsec. (d)(2)(i) by adding “telemarketing” to list of SIC categories, inserted a new Subsec. (e) defining “service facility” and relettered former Subsecs. (e) and (f) as Subsecs. (f) and (g), effective July 1, 1996; June Sp. Sess. P.A. 98-1 made technical corrections and included management consulting services within the scope of part of the definition of “manufacturing facility”, effective June 24, 1998; June Sp. Sess. P.A. 99-1 amended Subsec. (d)(2) by adding Subpara. (B) re establishments primarily engaged in supplying goods or services in the fields of computer hardware or software, computer networking, telecommunications or communications, amended Subsec. (e) to include facility described in Subsec. (d)(2)(B) as a service facility, and made technical changes, effective July 1, 1999; P.A. 00-174 amended Subsec. (d)(2)(A) to include references to facilities within certain categories in the North American Industrial Classification System, effective May 26, 2000; June Sp. Sess. P.A. 01-6 amended Subsec. (d) to move provision re the North American Industrial Classification System and make technical changes, effective July 1, 2001; P.A. 10-98 amended Subsec. (b) to include portions of municipalities within airport development zone and amended Subsec. (d) to include airport development zone in Subdiv. (1) and add Subdiv. (2)(D) re location in airport development zone, effective October 1, 2011; P.A. 11-140 amended Subsec. (d) to replace references to Standard Industrial Classification Manual codes with references to North American Industrial Classification codes and add provisions re economic base business and economic cluster, effective July 1, 2011, and amended Subsec. (b) by deleting provision re airport development zone, effective October 1, 2011; Oct. Sp. Sess. P.A. 11-1 amended Subsec. (d) to change “the airport development zone” to “an airport development zone”, amended Subsec. (d)(2)(D)(i) to make provisions applicable to the Bradley Airport development zone, and amended Subsec. (d)(2)(D)(ii) to add references to Connecticut Airport Authority, to specify that the facility “may be”, rather than “is”, dependent upon or directly related to airport, to delete reference to information technology, and to include North American Industrial Classification code 237130 in list of exclusions, effective October 27, 2011; June 12 Sp. Sess. P.A. 12-1 deleted “Authority” and made a technical change in Subsec. (f), effective July 1, 2012; P.A. 14-122 made technical changes in Subsecs. (b) and (f); P.A. 15-192 amended Subsec. (d) to delete references to Connecticut Airport Authority, effective July 2, 2015.

Cited. 234 C. 624.

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Sec. 32-9q. Loans for business expansion in a distressed municipality. Loans to nonprofit state or local development corporations. Transfer of certain funds to the Connecticut Growth Fund. (a) An Employment Incentive Revolving Fund is hereby created. In order to encourage business expansion and location in distressed municipalities, the state, acting through the Department of Economic and Community Development may make working capital loans to any industrial business organization in a distressed municipality which has or is reasonably expected to create new employment in the municipality. The business organization will be considered to have created new employment in such municipality if the number of persons employed by such business organization as a result of such loan has increased or is expected to increase by more than five. Working capital loans under this section shall not exceed seventy-five thousand dollars in amount nor ten years in term for any single loan and shall not be made unless the borrower receives concurrently with such loan another working capital loan from a private financial institution or local development corporation, as defined in Sections 501, 502 and 503 of the Small Business Investment Act, Public Law 699, as amended, in an amount at least equal to the amount of the working capital loan made by the state. Such working capital loans made by the state or by a private financial institution may be either secured or unsecured. Any business organization receiving a working capital loan from the state under this section shall demonstrate to the satisfaction of the Commissioner of Economic and Community Development that the availability of such loan was an important factor in the decision of such business organization to locate or expand in such distressed municipality.

(b) The state, acting through the Commissioner of Economic and Community Development, may make loans under this section to any nonprofit state or local development corporation. The purposes of such loans shall include, but not be limited to, working capital, start-ups and fixed assets. Such loans shall not exceed in the aggregate five hundred thousand dollars.

(c) The Commissioner of Economic and Community Development shall charge and collect interest on each loan extended by the state under this section at a rate not in excess of one per cent above the rate of interest borne by the bonds of the state last issued prior to the date such loan is made. Payments of principal and interest on such loans paid to the Treasurer for deposit in the Employment Incentive Revolving Fund shall be transferred to the Connecticut Growth Fund established under section 32-23v.

(d) The Commissioner of Economic and Community Development shall adopt regulations in accordance with chapter 54 to carry out the provisions of this section. Such regulations shall establish loan procedures, repayment terms, security requirements, default and remedy provisions and such other terms and conditions as said commissioner shall deem appropriate.

(e) For the purposes of this section the State Bond Commission shall have 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 five hundred thousand dollars. All provisions of section 3-20 and the exercise of any right or power granted thereby which is 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 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 the Secretary of the Office of Policy and Management or by or on behalf of such state officer, department or agency and stating such terms and conditions as said commission, in its discretion, may require. 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. 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.

(P.A. 78-357, S. 2, 5, 16; P.A. 79-521; P.A. 82-434, S. 5, 6; P.A. 83-580, S. 4, 8; P.A. 86-107, S. 6, 19; P.A. 88-265, S. 33, 36; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)

History: P.A. 79-521 inserted new Subsec. (b) re loans to nonprofit state or local development corporations, relettering former Subsecs. (b) to (d) accordingly and deleted “working capital” where referring to loans under Subsec. (c), formerly (b); P.A. 82-434 amended Subsec. (a) to delete the necessity of a physical expansion in order to be eligible for a loan; P.A. 83-580 provided for the transfer of outstanding assets and liabilities of fund to the small contractors and manufacturers revolving loan fund in Subsec. (c) and reduced bond authorization in Subsec. (e) from $1,00,000 to $500,000; P.A. 86-107 removed reference to the state treasurer as trustee of the fund; P.A. 88-265 substituted Connecticut growth fund for small contractors and manufacturers revolving loan fund in Subsec. (c); P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development.

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Sec. 32-9r. Manufacturing facilities in distressed municipalities, targeted investment communities, airport development zones and enterprise zones. Service facilities. Eligibility for business tax credit and property tax exemption. (a) Any person may apply to the department for a determination as to whether the facility described in an application qualifies as a manufacturing facility or service facility. Applications for eligibility certificates are to be made on the forms and in the manner prescribed by the department. In evaluating each application the department may require the submission of all books, records, documents, drawings, specifications, certifications and other evidentiary items which it deems appropriate. No eligibility certificate shall be issued after March 1, 1991, for a manufacturing facility located in a distressed municipality which does not qualify as a targeted investment community unless the department has issued to the applicant a commitment letter for such facility prior to March 1, 1991. Notwithstanding the provisions of this subsection, an eligibility certificate may be issued by the department after March 1, 1991, for a qualified manufacturing facility acquired, constructed or substantially renovated in a distressed municipality provided the commissioner determines that such acquisition, construction or substantial renovation was initiated prior to March 1, 1991, and was legitimately induced by the prospect of assistance under section 12-217e and subdivisions (59) and (60) of section 12-81, respectively. The department may issue an eligibility certificate for a qualified manufacturing facility or a qualified service facility located in a targeted investment community upon determination by the commissioner (A) that the acquisition, construction or substantial renovation relating to the qualified manufacturing facility or qualified service facility in such community was induced by the prospect of assistance under subdivisions (59) and (60) of section 12-81; and (B) the applicant demonstrates an economic need or there is an economic benefit to the state. The department shall issue an eligibility certificate for a qualified manufacturing facility located in an airport development zone established pursuant to section 32-75d, and may issue an eligibility certificate for a facility described in subparagraph (D) of subdivision (2) of subsection (d) of section 32-9p, upon determination by the department (i) that the acquisition, construction or substantial renovation relating to the qualified manufacturing facility or facility described in said subparagraph (D) in the airport development zone was induced by the prospect of assistance under subdivisions (59) and (60) of section 12-81; (ii) the applicant demonstrates an economic need and there is an economic benefit to the state without causing an economic detriment to or conflict with an existing zone; and (iii) that the applicant serves an airport-related function or relies substantially on airport services. The department shall issue an eligibility certificate if the commissioner determines (1) that the manufacturing facility is located in an enterprise zone designated pursuant to section 32-70 and is a qualified manufacturing facility, or (2) that the facility is a plant, building, other real property improvement, or part thereof, which is located in a municipality with an entertainment district designated under section 32-76 or established under section 2 of public act 93-311*, and which qualifies as a “manufacturing facility” under subsection (d) of section 32-9p in that it is to be used in the production of entertainment products, including multimedia products, or as part of the airing, display or provision of live entertainment for stage or broadcast, including support services such as set manufacturers, scenery makers, sound and video equipment providers and manufacturers, stage and screen writers, providers of capital for the entertainment industry and agents for talent, writers, producers and music properties and technological infrastructure support including, but not limited to, fiber optics, necessary to support multimedia and other entertainment formats, except entertainment provided by or shown at a gambling or gaming facility or a facility whose primary business is the sale or serving of alcoholic beverages.

(b) The department shall reach a determination as to the eligibility of a facility within a reasonable time period, but may postpone the determination to the extent required to verify to its satisfaction that there is a high likelihood that any proposed facility will actually be constructed, expanded, substantially renovated or acquired. Prior to July 1, 2018, upon a favorable finding, the department shall issue to the applicant a certificate to the effect that the facility concerned is a manufacturing facility or a service facility and is eligible for assistance under section 12-217e and subdivisions (59) and (60) of section 12-81. On and after July 1, 2018, upon a favorable finding, the department shall issue to the applicant a certificate to the effect that the facility concerned is a manufacturing facility or a service facility and is eligible for assistance under subdivisions (59) and (60) of section 12-81.

(c) Except as specified in subsection (d) of this section, upon an unfavorable determination the department shall issue a notice to the applicant to the effect that the facility concerned has been determined not to be a manufacturing facility or a service facility, together with a statement in reasonable detail as to the reasons for the unfavorable determination. Any aggrieved applicant shall be afforded an opportunity for a public hearing on the matter within thirty days following issuance of the notice. The department shall reconsider the application based upon the information presented at the public hearing and reaffirm or change its earlier determination within ten days of the hearing.

(d) Upon an unfavorable determination regarding an application concerning an airport development zone, the department shall issue a notice to the applicant to the effect that the facility concerned has been determined not to be a manufacturing facility or a service facility, together with a statement in reasonable detail as to the reasons for the unfavorable determination. Any aggrieved applicant shall be afforded an opportunity for a public hearing on the matter within thirty days following issuance of the notice. The department shall reconsider the application based upon the information presented at the public hearing and reaffirm or change its earlier determination within ten days of the hearing.

(e) The decision of the department rendered pursuant to subsection (c) or (d) of this section to issue an eligibility certificate or to deny an application for the issuance of an eligibility certificate either upon the expiration of thirty days without a public hearing following an initial unfavorable determination or upon any reconsideration of the application pursuant to subsection (c) or (d) of this section is conclusive and final as to the matters thereby decided, and chapter 54 shall not apply to the administrative determinations authorized to be made by this section.

(f) Any person who claims a benefit under section 12-217e or subdivisions (59) and (60) of section 12-81 shall notify the department of any change in fact or circumstance which may bear upon the continued qualification as a manufacturing facility or a service facility for which an eligibility certificate has been issued. Upon receipt of such information or upon independent investigation, the department may revoke the eligibility certificate in the manner provided in subsection (c) of this section.

(g) The commissioner shall adopt regulations, in accordance with chapter 54, to carry out the provisions of this section. Such regulations shall provide that establishments in the category of business support services, as defined in subsection (b) of section 32-222, or manufacturing facilities, as defined in subsection (d) of section 32-9p, may be eligible for a certificate if they are located in an enterprise zone.

(P.A. 78-357, S. 6, 16; P.A. 81-109, S. 2, 3; P.A. 90-270, S. 21, 38; P.A. 91-354, S. 1; P.A. 95-334, S. 11, 13; P.A. 96-239, S. 13, 17; P.A. 00-174, S. 49, 83; June Sp. Sess. P.A. 01-6, S. 63, 85; P.A. 10-98, S. 6; P.A. 11-140, S. 18; Oct. Sp. Sess. P.A. 11-1, S. 44; P.A. 15-192, S. 5; P.A. 18-145, S. 2.)

*Note: Section 2 of public act 93-311 is special in nature and therefore has not been codified but remains in full force and effect according to its terms.

History: P.A. 81-109 added Subsec. (f) granting commissioner power to adopt regulations; P.A. 90-270 amended Subsec. (a) by clarifying process for approval of applications for facilities located in targeted investment communities and in enterprise zones; P.A. 91-354 amended Subsec. (f) to require regulations to specify that business services located in enterprise zones be eligible for a certificate; P.A. 95-334 added Subsec. (a)(2) re eligibility certificates for certain entertainment facilities located in municipalities with entertainment districts, effective July 13, 1995; P.A. 96-239 added references to “service facility” and “qualified service facility” in Subsecs. (a), (b), (c) and (e), effective July 1, 1996; P.A. 00-174 amended Subsec. (f) to include references to facilities within certain categories in the North American Industrial Classification System, effective May 26, 2000; June Sp. Sess. P.A. 01-6 amended Subsec. (f) to delete provision re the North American Industrial Classification System, add reference to manufacturing facilities as defined in Sec. 32-9p(d) and change “shall” to “may” re certificate eligibility, effective July 1, 2001; P.A. 10-98 amended Subsec. (a) to add provisions re issuance of eligibility certificates for facilities in airport development zone and certain other facilities, effective October 1, 2011; P.A. 11-140 amended Subsec. (f) to replace provision re business services as defined in Standard Industrial Classification Manual with provision re business support services as defined in Sec. 32-222(b), effective July 1, 2011 (Revisor's note: The changes made by P.A. 11-140 were incorporated editorially by the Revisors in the version of Subsec. (f), as amended by P.A. 10-98, that became effective on October 1, 2011); Oct. Sp. Sess. P.A. 11-1 amended Subsec. (a) to add requirement that department forward airport development zone application with economic impact statement to Connecticut Airport Authority, to change entity issuing eligibility certificates from the department to the authority, to require in clause (ii) that applicant show there is an economic benefit to the state without causing an economic detriment to or conflict with an existing zone, and to add clause (iii) re airport-related functions, amended Subsec. (c) to add “Except as specified in subsection (d)”, added new Subsec. (d) re unfavorable determination by authority, redesignated existing Subsec. (d) as Subsec. (e) and added references to Subsecs. (c) and (d) therein, and redesignated existing Subsecs. (e) and (f) as Subsecs. (f) and (g), effective October 27, 2011; P.A. 15-192 amended Subsecs. (a), (d) and (e) to delete provisions re Connecticut Airport Authority and make conforming changes, effective July 2, 2015; P.A. 18-145 amended Subsec. (a) to delete references to Sec. 12-217e, amended Subsec. (b) to add provision re eligibility certificates issued on or after July 1, 2018, and made conforming changes, effective July 1, 2018.

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Sec. 32-9s. State grants in lieu of taxes on exempt property of manufacturing facilities in distressed municipalities, targeted investment communities, enterprise zones or airport development zones and exempt property of service facilities. The state shall make an annual grant payment to each municipality, to each district, as defined in section 7-325, which is located in a distressed municipality, targeted investment community, enterprise zone or municipality within an airport development zone established pursuant to section 32-75d and to each special services district created pursuant to chapter 105a which is located in a distressed municipality, targeted investment community or enterprise zone in the amount of fifty per cent of the amount of that tax revenue which the municipality or district would have received except for the provisions of subdivisions (59) and (60) of section 12-81 or subdivision (70) of section 12-81. On or before the first day of August of each year, each municipality and district shall file a claim with the Secretary of the Office of Policy and Management for the amount of such grant payment to which such municipality or district is entitled under this section. The claim shall be made on forms prescribed by the secretary and shall be accompanied by such supporting information as the secretary may require. Any municipality or district which neglects to transmit to the secretary such claim and supporting documentation as required by this section shall forfeit two hundred fifty dollars to the state, provided the secretary may waive such forfeiture in accordance with procedures and standards adopted by regulation in accordance with chapter 54. The secretary shall review each such claim as provided in section 12-120b. Any claimant aggrieved by the results of the secretary's review shall have the rights of appeal as set forth in section 12-120b. The secretary shall, on or before the December fifteenth next succeeding the deadline for the receipt of such claims, certify to the Comptroller the amount due under this section, including any modification of such claim made prior to December fifteenth, to each municipality or district which has made a claim under the provisions of this section. The Comptroller shall draw an order on the Treasurer on or before the fifth business day following December fifteenth, and the Treasurer shall pay the amount thereof to each such municipality or district on or before the following December thirty-first. If any modification is made as the result of the provisions of this section on or after the December first following the date on which the municipality or district has provided the amount of tax revenue in question, any adjustment to the amount due to any municipality or district for the period for which such modification was made shall be made in the next payment the Treasurer shall make to such municipality or district pursuant to this section. In the fiscal year commencing July 1, 2003, and in each fiscal year thereafter, the amount of the grant payable to each municipality and district in accordance with this section shall be reduced proportionately in the event that the total amount of the grants payable to all municipalities and districts exceeds the amount appropriated.

(P.A. 78-303, S. 85, 136; 78-357, S. 9, 16; P.A. 80-267, S. 5; P.A. 83-280, S. 1, 3; P.A. 84-203, S. 1, 2; P.A. 85-371, S. 9, 10; P.A. 86-258, S. 3, 8; P.A. 87-115, S. 5, 8; P.A. 88-230, S. 1, 12; 88-287, S. 2, 5; P.A. 89-235, S. 4, 5; P.A. 90-98, S. 1, 2; 90-270, S. 18, 38; June Sp. Sess. P.A. 91-14, S. 9, 30; P.A. 93-142, S. 4, 7, 8; P.A. 95-220, S. 4–6; 95-283, S. 21, 68; P.A. 96-239, S. 14, 15, 17; 96-261, S. 3, 4; June Sp. Sess. P.A. 99-1, S. 17, 51; June Sp. Sess. P.A. 01-6, S. 55, 85; May Sp. Sess. P.A. 04-2, S. 24; P.A. 05-287, S. 14; P.A. 10-98, S. 7; Oct. Sp. Sess. P.A. 11-1, S. 45.)

History: P.A. 78-303 allowed substitution of commissioner of revenue services for tax commissioner in P.A. 78-357 to fulfill purposes of P.A. 77-614; P.A. 80-267 made provisions applicable to all municipalities where previously they applied solely to “distressed” municipalities; P.A. 83-280 provided for grant payment to special districts and special services districts located within distressed municipalities; P.A. 84-203 changed administrative references from commissioner of revenue services to secretary of the office of policy and management, changed filing date from July first to August first and specified period for appeal; P.A. 85-371 extended deadline for review by the secretary to the following August first and inserted provisions concerning modifications after that date, effective July 1, 1985, and applicable to grant or claim information received by secretary of the office of policy and management on or after that date; P.A. 86-258 added provisions re grants in the case of certain service manufacturing facilities located in an enterprise zone; P.A. 87-115 added the provisions for forfeiture by any municipality which neglects to transmit the claim and supporting documentation as required and provided for waiver of such forfeiture in accordance with regulations to be adopted, effective May 11, 1987, and applicable to claims required to be submitted on or before August 1, 1989, and thereafter; P.A. 88-287 added provisions re payments for revenue a municipality or district would have received except for the provisions of Sec. 12-81(70), effective June 6, 1988, and applicable to assessment years of municipalities commencing on or after October 1, 1988; P.A. 89-235 amended Subdiv. (3) to make technical changes to the categories of certified manufacturing facilities located in an enterprise zone which are defined in the Standard Industrial Classification Manual, and deleted the requirement for the creation of ten or more new employment positions for such facilities; P.A. 90-270 expanded eligibility to districts located in targeted investment communities and enterprise zones and expanded the categories of activities that can be engaged in by business to include health services, fishing, hunting and trapping, motor freight transportation and warehousing, water transportation, transportation by air, transportation services, security and commodity brokers, dealers, exchanges and services; June Sp. Sess. P.A. 91-14 amended Subdiv. (1) to decrease the grant amount related to Subdivs. (59) and (60) of Sec. 12-81 from 75% of the tax revenue otherwise payable to 50%, effective September 19, 1991, and applicable to grant payments made in the fiscal year commencing July 1, 1991, and in each fiscal year thereafter; P.A. 95-283 changed location of appeal from the judicial district in which the municipality or district is located to the judicial district of Hartford-New Britain, effective October 1, 1996 (Revisor's note: P.A. 88-230, 90-98, 93-142 and 95-220 authorized substitution of “judicial district of Hartford” for “judicial district of Hartford-New Britain”, effective September 1, 1998); P.A. 96-239 expanded SIC category list to include telemarketing, effective July 1, 1996; P.A. 96-261 repealed changes made by P.A. 95-283, effective June 10, 1996; June Sp. Sess. P.A. 99-1 deleted Subdiv. (3) re grants with respect to certain manufacturing facilities, and made a technical change, effective July 1, 1999; June Sp. Sess. P.A. 01-6 deleted former provisions re notice and appeal of decisions of the Secretary of the Office of Policy and Management, added provisions re appeal in accordance with Sec. 12-120b and made technical changes, effective July 1, 2001; May Sp. Sess. P.A. 04-2 made a technical change and provided for pro rata reduction of grants under section in the event the total amount due to municipalities exceeds the amount appropriated, effective May 12, 2004, and applicable to assessment years commencing on or after October 1, 2002; P.A. 05-287 changed “December first” to “December fifteenth” and changed “on or before the following December fifteenth” to “the fifth business day following December fifteenth”, effective July 13, 2005; P.A. 10-98 added municipalities within airport development zone and changed exception from “subdivisions (59), (60) and (70) of section 12-81” to “subdivisions (59) and (60) of section 12-81 or subdivision (70) of said section 12-81”, effective October 1, 2011; Oct. Sp. Sess. P.A. 11-1 changed “the airport development zone” to “an airport development zone”, effective October 27, 2011.

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Sec. 32-9t. Urban and industrial site reinvestment program. Registration of fund managers. Tax credits. (a) As used in this section:

(1) “Commissioner” means the Commissioner of Economic and Community Development.

(2) “Eligible industrial site investment project” means a project located within this state for the development or redevelopment of real property: (A) (i) That has been subject to a “spill”, as defined in section 22a-452c, (ii) is an “establishment”, as defined in subdivision (3) of section 22a-134, or (iii) is a “facility”, as defined in 42 USC 9601(9); (B) that, if remediated, renovated or demolished in accordance with applicable law and regulations and the standards of remediation of the Department of Energy and Environmental Protection and used for business purposes, will add significant new economic activity and employment in the municipality in which the investment is to be made, and will generate additional tax revenues to the state; (C) for which the use of the urban and industrial site reinvestment program will be necessary to attract private investment to the project; (D) the business use of which would be economically viable and would generate direct and indirect economic benefits to the state that exceed the amount of the investment during the period for which the tax credits granted pursuant to public act 00-170* are granted; and (E) that is, in the judgment of the commissioner, consistent with the strategic economic development priorities of the state and the municipality.

(3) “Eligible urban reinvestment project” means a project: (A) That would add significant new economic activity in the eligible municipality in which the project is located, and will generate significant additional tax revenues to the state or the municipality; (B) for which the use of the urban and industrial site reinvestment program will be necessary to attract private investment to an eligible municipality; (C) that is economically viable; (D) for which the direct and indirect economic benefits to the state outweigh the costs of the project; and (E) that is, in the judgment of the commissioner, consistent with the strategic economic development priorities of the state and the municipality.

(4) “Related person” means: (A) A corporation, limited liability company, partnership, association or trust controlled by the taxpayer; (B) an individual, corporation, limited liability company, partnership, association or trust that is in control of the taxpayer; (C) a corporation, limited liability company, partnership, association or trust controlled by an individual, corporation, limited liability company, partnership, association or trust that is in control of the taxpayer; or (D) a member of the same controlled group as the taxpayer. For purposes of this section, “control”, with respect to a corporation, means ownership, directly or indirectly, of stock possessing fifty per cent or more of the total combined voting power of all classes of the stock of such corporation entitled to vote. “Control”, with respect to a trust, means ownership, directly or indirectly, of fifty per cent or more of the beneficial interest in the principal or income of such trust. The ownership of stock in a corporation, of a capital or profits interest in a partnership or association or of a beneficial interest in a trust shall be determined in accordance with the rules for constructive ownership of stock provided in Section 267(c) of the Internal Revenue Code, other than paragraph (3) of said section.

(5) “Investment” means all amounts invested in an eligible project by or on behalf of a taxpayer, whether directly, through a fund, or through a community development entity or a contractually bound community development entity including, but not limited to, (A) equity investments made by the taxpayer, and (B) loans.

(6) “Income year” means with respect to entities subject to taxation under chapters 207 to 212a, the income year as determined under each of said chapters, as the case may be.

(7) “Taxpayer” means any person, as defined in section 12-1, whether or not subject to any taxes levied by this state.

(8) “Fund manager” means a fund manager registered in accordance with subsection (d) of this section.

(9) “New job” means a job that did not exist in the business of a subject business in this state prior to the subject business' application to the commissioner for an eligibility certificate under this section for a new facility and that is filled by a new employee, but does not mean a job created when an employee is shifted from an existing location of the subject business in this state to a new facility.

(10) “New employee” means a person hired by a subject business to fill a position for a new job or a person shifted from an existing location of the subject business outside this state to a new facility in this state, provided (A) in no case shall the total number of new employees allowed for purposes of this credit exceed the total increase in the taxpayer's employment in this state, which increase shall be the difference between (i) the number of employees employed by the subject business in this state at the time of application for an eligibility certificate to the commissioner plus the number of new employees who would be eligible for inclusion under the credit allowed under this section without regard to this calculation, and (ii) the highest number of employees employed by the subject business in this state in the year preceding the subject business' application for an eligibility certificate to the commissioner, and (B) a person shall be deemed to be a “new employee” only if such person's duties in connection with the operation of the facility are on a regular, full-time, or equivalent thereof, and permanent basis.

(11) “New facility” means a facility which (A) is acquired by, leased to, or constructed by, a subject business on or after the date of the subject business' application to the commissioner for an eligibility certificate under this section, unless, upon application of the subject business and upon good and sufficient cause shown, the commissioner waives the requirement that such activity take place after the application, and (B) was not in service or use during the one-year period immediately prior to the date of the subject business' application to the commissioner for an eligibility certificate under this section, unless upon application of the subject business and upon good and sufficient cause shown, the commissioner consents to waiving the one-year period.

(12) “Eligible municipality” means (A) a municipality with an area designated as an enterprise zone pursuant to section 32-70, (B) a distressed municipality, as defined in subsection (b) of section 32-9p, (C) a municipality that has a population in excess of one hundred thousand, or (D) any municipality that the commissioner determines is connected with the relocation of an out-of-state operation or the expansion of an existing facility that will result in a capital investment by a company of not less than fifty million dollars.

(13) “Eligible project” means an eligible urban reinvestment project or an eligible industrial site investment project or both.

(14) “Approved investment” means an investment approved by the commissioner under subsection (g) of this section.

(15) “Recapture amount” means the amount by which the total of tax credits claimed with respect to any approved investment as of the date of calculation exceeds the sum of all state revenue actually generated through such date by the eligible project in which such approved investment was made.

(16) “Pro rata share” means the percentage the amount of the approved investment by an individual investor in an eligible project bears to the total amount of the approved investment in such project, or in the case of a taxpayer to whom credits are transferred under this section, the percentage the amount of credits with respect to an approved investment transferred bears to the total credits with respect to such approved investment.

(17) “Community development entity” means any corporation, limited partnership or limited liability company qualified to do business in this state and which (A) is organized for the purpose of providing investment capital or financing for eligible projects under this section, (B) maintains accountability to residents of more than one eligible municipality through representation on the governing board of the entity, (C) is organized for the purpose of seeking certification and an allocation of new markets tax credits as provided in Section 45D of the Internal Revenue Code, and (D) is registered in accordance with subsection (d) of this section. No community development entity shall be eligible for any tax credits under this section unless it is certified under said Section 45D on the date any approved investment is made. A community development entity shall not be deemed a “fund” for purposes of this section.

(18) “Project” means the acquisition, leasing, demolition, remediation, construction, renovation, expansion or other development or redevelopment of real property and improvements within this state, including furniture, fixtures, equipment and other personal property which is reasonably necessary in connection therewith, and associated interest and other financing costs and charges, relocation and start-up costs, and architectural, engineering, legal and other professional services, plans, specifications, surveys, permits, studies and evaluations necessary or incident to the development, financing, completion and placing in operation of such a project. In the case of a contractually bound community development entity, “project” shall not include any activities, costs or services not included in the terms of the allocation agreement with the community development financial institutions fund under Section 45D of the Internal Revenue Code.

(19) “Contractually bound community development entity” means a community development entity that (A) has entered into an allocation agreement with the community development financial institutions fund pursuant to Section 45D of the Internal Revenue Code, and (B) whose service area in such allocation agreement includes the state of Connecticut.

(20) “Internal Revenue Code” means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.

(b) There is established an urban and industrial site reinvestment program under which taxpayers who make investments in eligible urban reinvestment projects or eligible industrial site investment projects may be allowed a credit against the tax imposed under chapter 207, 208, 208a, 209, 210, 211 or 212 or section 38a-743, or a combination of such taxes, in an amount equal to the percentage of their approved investment determined in accordance with subsection (i) of this section.

(c) No project shall be deemed an eligible project unless such project shall, in the judgment of the commissioner, be of sufficient size, by itself or in conjunction with related new investments, to generate a substantial return to the state economy.

(d) (1) The commissioner may register managers of funds and community development entities created for the purpose of investing in eligible urban reinvestment projects and eligible industrial site investment projects. Any manager, community development entity or contractually bound community development entity registered under this subsection shall have its primary place of business in this state. Each applicant shall submit an application under oath to the commissioner to be registered and shall furnish evidence satisfactory to the commissioner of its financial responsibility, integrity, professional competence and experience in managing investment funds. Failure to maintain adequate fiduciary standards with respect to investments made under this section shall constitute cause for the commissioner to revoke, after hearing, any registration granted under this section or section 38a-88a. The fund manager, community development entity or contractually bound community development entity shall make a report on or before the first day of March in each year, under oath, to the Commissioner of Economic and Community Development and the Commissioner of Revenue Services specifying the name, address and Social Security number or employer identification number of each investor, the year during which each investment was made by each investor, the amount of each investment, a description of the fund's investment objectives and relative performance, or the entity's projects, as the case may be, and a description, including amounts, of all fees received by such manager or entity in relation to each such fund.

(2) Any manager of funds registered on or before July 1, 2000, pursuant to section 38a-88a shall be deemed registered as a fund manager for all purposes under the provisions of this section upon submission, in writing, to the commissioner of such manager's intention to act as a manager of funds under this section. The commissioner may request from any such manager such information as the commissioner may require relating to such manager's financial responsibility, integrity, professional competence and experience in managing investment funds.

(e) Any taxpayer or fund manager, community development entity or contractually bound community development entity wishing to make an investment under the provisions of this section shall apply to the commissioner in accordance with the provisions of this section. The application shall contain sufficient information to establish that the project in which the proposed investment will be made is an eligible industrial site investment project or an urban reinvestment project, as appropriate, and information concerning the type of investment proposed to be made, the location of the project, the number of jobs to be created or retained, physical infrastructure that might be created or preserved, feasibility studies or business plans for the project, projected state and local revenue that might derive as a result of the project and other information necessary to demonstrate the financial viability of the project and to demonstrate that the investment will provide net benefits to the economy of, and employment for citizens of, the municipality and the state, and in the case of an eligible industrial site investment project, how such project will meet the standards of remediation of the Department of Energy and Environmental Protection. The commissioner shall impose a fee for such application as the commissioner deems appropriate.

(f) (1) The commissioner shall determine whether the project in which the proposed investment is to be made is an eligible urban reinvestment project or an eligible industrial site investment project, whether the project is economically viable only with use of the urban and industrial site reinvestment program, the effects of the project on the municipality where the investment will be made, and whether the project would provide a net benefit to economic development and employment opportunities in the state and whether the project will conform to the state plan of conservation and development. The commissioner may require the applicant to submit such additional information as may be necessary to evaluate the application.

(2) The commissioner shall prepare a revenue impact assessment that estimates the state and local revenue that would be generated as a result of the project. The commissioner shall prepare an economic feasibility study relative to such project. The commissioner may retain any such persons as the commissioner deems appropriate to conduct such revenue impact assessment or economic feasibility study.

(g) (1) The commissioner, upon consideration of the application, the revenue impact assessment and any additional information that the commissioner requires concerning a proposed investment, may approve an investment if the commissioner concludes that the project in which such investment is to be made is an eligible urban reinvestment project or an eligible industrial site investment project. The commissioner shall give priority to applications for projects located in federally designated opportunity zones. If the commissioner rejects an application, the commissioner shall specifically identify the defects in the application and specifically explain the reasons for the rejection. The commissioner shall render a decision on an application not later than ninety days from its receipt. The amount of the investment so approved shall not exceed the greater of: (A) The amount of state revenue that will be generated according to the revenue impact assessment prepared under this subsection; or (B) the total of state revenue and local revenue generated according to such assessment in the case of a manufacturing business with North American Industrial Classification codes of 339999, 311211 through 312140, 324191 and 325412 that is relocating to a site in Connecticut from out-of-state, provided the relocation will result in new development of at least seven hundred twenty-five thousand square feet in a state-sponsored industrial park.

(2) The approval of an investment by the commissioner may be combined with the exercise of any of the commissioner's other powers, including, but not limited to, the provision of other forms of financial assistance.

(3) The commissioner shall require the applicant to reimburse the commissioner for all or any part of the cost of any revenue impact assessment, economic feasibility study or other activities performed in the exercise of due diligence pursuant to subsection (f) of this section.

(4) There is established an account to be known as the “Connecticut economic impact and analysis account” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account and shall be held separate and apart from other moneys, funds and accounts. There shall be deposited in the account any proceeds realized by the state from activities pursuant to this section. Investment earnings credited to the account shall become part of the assets of the account. Any balance remaining in the account at the end of any fiscal year shall be carried forward in the account for the next fiscal year. Amounts in the account may be used by the Department of Economic and Community Development to fund the cost of any activities of the department pursuant to this section, including administrative costs related to such activities.

(h) Upon approving an investment, the commissioner shall issue a certificate of eligibility certifying that the applicant has complied with the provisions of this section.

(i) (1) There shall be allowed as a credit against the tax imposed under chapters 207 to 212a, inclusive, or section 38a-743, or a combination of said taxes, an amount equal to the following percentage of approved investments made by or on behalf of a taxpayer with respect to the following income years of the taxpayer: (A) With respect to the income year in which the investment in the eligible project was made and the two next succeeding income years, zero per cent; (B) with respect to the third full income year succeeding the year in which the investment in the eligible project was made and the three next succeeding income years, ten per cent; (C) with respect to the seventh full income year succeeding the year in which the investment in the eligible project was made and the next two succeeding years, twenty per cent. The sum of all tax credits granted pursuant to the provisions of this section shall not exceed one hundred million dollars with respect to a single eligible urban reinvestment project or a single eligible industrial site investment project approved by the commissioner. The sum of all tax credits granted pursuant to the provisions of this section shall not exceed nine hundred fifty million dollars.

(2) Notwithstanding the provisions of subdivision (1) of this subsection, any applicant may, at the time of application, apply to the commissioner for a credit that exceeds the limitations established by this subsection. The commissioner shall evaluate the benefits of such application and make recommendations to the General Assembly relating to changes in the general statutes which would be necessary to effect such application if the commissioner determines that the proposal would be of economic benefit to the state.

(j) The credits allowed by this section may be claimed by a taxpayer who has made an investment (1) directly only if such investment has a total asset value, either alone or in conjunction with other taxpayer investments in an eligible project, of not less than five million dollars or, in the case of an investment in an eligible project for the preservation of an historic facility and redevelopment of the facility for mixed uses that includes at least four housing units, a total asset value of not less than two million dollars; (2) through a fund managed by a fund manager registered under this section only if such fund: (A) Has a total asset value of not less than sixty million dollars for the income year for which the initial credit is taken; and (B) has not less than three investors who are not related persons with respect to each other or to any person in which any investment is made other than through the fund at the date the investment is made; or (3) through a community development entity or a contractually bound community development entity.

(k) The commissioner shall, upon request, provide a copy of the eligibility certificate issued under subsection (h) of this section to the Commissioner of Revenue Services.

(l) The tax credit allowed by this section, when made through a fund, shall only be available for investments in funds that are not open to additional investments or investors beyond the amount subscribed at the formation of the fund.

(m) (1) The Commissioner of Revenue Services may treat one or more corporations that are properly included in a combined corporation business tax return under section 12-223a as one taxpayer in determining whether the appropriate requirements under this section are met. Where corporations are treated as one taxpayer for purposes of this subsection, then the credit shall be allowed only against the amount of the combined tax for all corporations properly included in a combined return that, under the provisions of subdivision (2) of this subsection, is attributable to the corporations treated as one taxpayer.

(2) The amount of the combined tax for all corporations properly included in a combined corporation business tax return that is attributable to the corporations that are treated as one taxpayer under the provisions of this subsection shall be in the same ratio to such combined tax that the net income apportioned to this state of each corporation treated as one taxpayer bears to the net income apportioned to this state, in the aggregate, of all corporations included in such combined return. Solely for the purposes of computing such ratio, any net loss apportioned to this state by a corporation treated as one taxpayer or by a corporation included in such combined return shall be disregarded.

(n) Any taxpayer allowed a credit under this section may assign such credit to another taxpayer or taxpayers, provided such other taxpayer or taxpayers may claim such credit only with respect to a taxable year for which the assigning taxpayer would have been eligible to claim such credit and such other taxpayer or taxpayers may not further assign such credit. The taxpayer or taxpayers allowed such credit, the fund manager, the community development entity or contractually bound community development entity shall file with the Commissioner of Revenue Services information requested by the commissioner regarding such assignments, including, but not limited to, the current holders of credits as of the end of the preceding calendar year.

(o) No taxpayer shall be eligible for a credit under (1) this section, and (2) section 12-217e or 38a-88a, for the same investment. No two taxpayers shall be eligible for any tax credit with respect to the same investment or the same project costs.

(p) Any credit not used in the income year for which it was allowed may be carried forward for the five immediately succeeding income years until the full credit has been allowed.

(q) (1) Any tax credits approved under this section that would constitute in excess of twenty million dollars in total for a single investment shall be submitted by the Commissioner of Economic and Community Development to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding prior to the issuance of a certificate of eligibility for such investment. Said committee shall have thirty days from the date such project is submitted to convene a meeting to recommend approval or disapproval of such investment. If such submittal is withdrawn, altered, amended or otherwise changed, and resubmitted, said committee shall have thirty days from the date of such resubmittal to convene a meeting to recommend approval or disapproval of such investment. If said committee does not act on a submittal or resubmittal, as the case may be, within that time, the investment shall be deemed to be approved by said committee.

(2) While the General Assembly is in session, the House of Representatives or the Senate, or both, may meet not later than thirty days following the date said committee makes a recommendation pursuant to subdivision (1) of this subsection. If such submission is not disapproved by the House of Representatives or the Senate, or both, within such time, the commissioner may issue such certificate.

(3) While the General Assembly is not in regular session, the House of Representatives or the Senate, or both, may meet not later than thirty days following the date said committee makes a recommendation pursuant to subdivision (1) of this subsection. If such submission is not disapproved by the House of Representatives, the Senate, or both, within such time, the commissioner may issue such certificate.

(r) Not later than July first in each year that credits allowed by this section are claimed by a taxpayer with respect to an approved investment, the commissioner may retain such persons as said commissioner may deem appropriate to conduct a study to estimate the state revenue that is being and will be generated by the eligible project in which such investment is made. Such economic impact study shall determine whether the state revenue actually generated by such eligible project is equal to the estimate of state revenue made at the time the investment in such eligible project was approved. If the sum of all state revenue actually generated by such eligible project is less than the amount of the total sum of tax credits claimed with respect to the approved investment in such project on the date of such analysis, the commissioner may determine from the person retained pursuant to this subsection the applicable recapture amount and may revoke the certificate of eligibility issued under subsection (h) of this section. The commissioner may require the taxpayer, the fund manager, community development entity or contractually bound community development entity that made such approved investment to reimburse the commissioner for all or any part of the cost of any economic impact study performed under this subsection.

(s) (1) Any taxpayer which has claimed credits allowed by this section related to an investment concerning which the commissioner has revoked the certificate of eligibility issued under subsection (h) of this section, shall be required to recapture such taxpayer's pro rata share of the recapture amount as determined under the provisions of subdivision (2) of this subsection and no subsequent credit shall be allowed unless such certificate of eligibility is reinstated under the provisions of subdivision (3) of this subsection.

(2) If the taxpayer is required under the provisions of subdivision (1) of this subsection to recapture its pro rata share of the recapture amount during (A) the first year such credit was claimed, then ninety per cent of such share shall be recaptured on the tax return required to be filed for such year, (B) the second of such years, then sixty-five per cent of such share shall be recaptured on the tax return required to be filed for such year, (C) the third of such years, then fifty per cent of such share shall be recaptured on the tax return required to be filed for such year, (D) the fourth of such years, then thirty per cent of such share shall be recaptured on the tax return required to be filed for such year, (E) the fifth of such years, then twenty per cent of such share shall be recaptured on the tax return required to be filed for such year, and (F) the sixth or subsequent of such years, then ten per cent of such share shall be recaptured on the tax return required to be filed for such year. The Commissioner of Revenue Services may recapture such share from the taxpayer who has claimed such credits. If the commissioner is unable to recapture all or part of such share from such taxpayer, the commissioner may seek to recapture such share from any taxpayer who has assigned credits in an amount at least equal to such share to another taxpayer. If the commissioner is unable to recapture all or part of such share from any such taxpayer, the commissioner may recapture such share from any fund through which the investment was made.

(3) If the commissioner has revoked the certificate of eligibility issued under subsection (h) of this section, such certificate of eligibility shall be reinstated by the commissioner if, upon a request made by the taxpayer, fund manager or community development entity who made such approved investment, an economic impact study conducted pursuant to subsection (r) of this section shall determine that the sum of all state revenue actually generated by the project in which such investment was made is greater than the amount of the total sum of tax credits claimed on the date of such analysis, provided no such request shall be made pursuant to this subsection during the calendar year in which such certificate was revoked. For the purpose of determining whether such certificate shall be reinstated, the commissioner shall, upon receipt of a request made under this subsection, obtain one such economic impact study per calendar year and may obtain additional such economic impact studies as the commissioner deems appropriate.

(t) Notwithstanding subsections (r) and (s) of this section, for a contractually bound community development entity, credit recapture for credits allowed by this section shall be governed by the terms of its allocation agreement with the community development financial institutions fund or, where such agreement is silent, by Section 45D of the Internal Revenue Code and the regulations promulgated by the United States Treasury pursuant to said section.

(P.A. 00-170, S. 38, 42; June Sp. Sess. P.A. 01-9, S. 122, 131; June 30 Sp. Sess. P.A. 03-6, S. 77; P.A. 04-20, S. 6; P.A. 05-276, S. 2, 3; P.A. 06-159, S. 20; 06-184, S. 10; 06-187, S. 12; 06-189, S. 18; P.A. 11-78, S. 1; 11-80, S. 1; 11-86, S. 2; 11-140, S. 19; Oct. Sp. Sess. P.A. 11-1, S. 48; P.A. 14-98, S. 44; June Sp. Sess. P.A. 15-5, S. 408; P.A. 19-54, S. 8; 19-186, S. 9.)

*Note: Public act 00-170 is entitled “An Act Concerning Reduction of Various Taxes and Fees, Sunset of Certain Insurance Reinvestment Funds, Crediting of Interest on the Attorneys' Client Security Fund, a Tax on Snuff Tobacco Products, Funds for the Fisheries Account, Incentives for Urban Site Reinvestment and Use of the Tobacco Settlement Fund”. (See Reference Table captioned “Public Acts of 2000” in Volume 16 which lists the sections amended, created or repealed by the act.)

History: P.A. 00-170 effective July 1, 2000 (Revisor's note: In Subsec. (e), a period was inserted editorially by the Revisors before “The commissioner shall”); June Sp. Sess. P.A. 01-9 amended Subsec. (a) to redefine “eligible industrial site investment project” in Subdiv. (2), “eligible urban reinvestment project” in Subdiv. (3), “investment” in Subdiv. (5), “recapture amount” in Subdiv. (15), and “pro rata share” in Subdiv. (16), define “community development entity” and “project” in new Subdivs. (17) and (18) and make a technical change in Subdiv. (14), amended Subsec. (b) to change “invest” to “make investments” and add reference to “approved” investment, and added provisions re community development entity, changed “investment” to “project” and made conforming and technical changes in Subsec. (d) to (g), (i), (j), (n), (o), (r) and (s), effective July 1, 2001; June 30 Sp. Sess. P.A. 03-6 amended Subsec. (g) by, in Subdiv. (1), adding “greater of:”, designating existing maximum investment amount as Subpara. (A) and adding Subpara. (B) re total revenue generated in case of manufacturing business with standard industrial classification codes of 3999, 2099, 2992 and 3834, by adding provision in Subdiv. (3) re other activities performed in the exercise of due diligence and deleting “used in reviewing the application”, and by adding new Subdiv. (4) re Connecticut economic impact and analysis account, effective August 20, 2003; P.A. 04-20 made a technical change in Subsec. (g)(3), effective April 16, 2004; P.A. 05-276 amended Subsec. (j)(1) by inserting “, either alone or in conjunction with other taxpayer investments in an eligible project,”, reducing the investment threshold for credits from $20,000,000 to $5,000,000 and further reducing such threshold to $2,000,000 for an eligible project for preservation of an historic facility and redevelopment of the facility for certain mixed uses, and amended Subsec. (n) by adding “or taxpayers”, effective July 13, 2005; P.A. 06-159 amended Subsec. (k) by providing that a copy of the eligibility certificate be submitted upon request of commissioner, rather than requiring such copy to be filed with the tax return, effective June 6, 2006; P.A. 06-184, effective June 9, 2006, and P.A. 06-187, effective May 26, 2006, both redefined “eligible municipality” in Subsec. (a)(12) to add Subpara. (D); P.A. 06-189 amended Subsec. (q) by designating existing provisions as Subdiv. (1) and amending same by replacing procedure for approval by House, Senate or both not later than 60 days after submission of tax credit with provisions re recommendation by Finance, Revenue and Bonding Committee not later than 30 days after submission, and adding Subdivs. (2) and (3) providing procedure for approval by House, Senate or both while General Assembly is in regular session and not in regular session; P.A. 11-78 amended Subsec. (a)(5) to redefine “investment” by adding contractually bound community development entity, amended Subsec. (a)(18) to define “project” re a contractually bound community development entity, added Subsec. (a)(19) defining contractually bound community development entity and Subsec. (a)(20) defining Internal Revenue Code, amended Subsecs. (d), (e), (j), (n) and (r) to add provisions re contractually bound community development entity and added Subsec. (t) re credit recapture for contractually bound community development entities, and made conforming changes, effective July 1, 2011; pursuant to P.A. 11-80, “Department of Environmental Protection” was changed editorially by the Revisors to “Department of Energy and Environmental Protection” in Subsecs. (a)(2) and (e), effective July 1, 2011; P.A. 11-86 amended Subsec. (i)(1) to increase credit cap from $500,000,000 to $750,000,000, effective July 1, 2011; P.A. 11-140 amended Subsec. (g)(1) to replace references to Standard Industrial Classification codes with references to North American Industrial Classification codes, effective July 1, 2011; Oct. Sp. Sess. P.A. 11-1 amended Subsec. (i)(1) to lower from $750,000,000 to $650,000,000 the amount of tax credits granted under section, effective October 27, 2011; P.A. 14-98 amended Subsec. (i)(1) to increase tax credit cap from $650,000,000 to $800,000,000, effective July 1, 2014; June Sp. Sess. P.A. 15-5 amended Subsec. (i)(1) to increase tax credit cap from $800,000,000 to $950,000,000, effective July 1, 2015; P.A. 19-54 amended Subsec. (g)(1) to add provision re commissioner to give priority to applications for projects located in federally designated opportunity zones, effective July 1, 2019; P.A. 19-186 amended Subsec. (b) to replace “chapters 207 to 212a, inclusive,” with “chapter 207, 208, 208a, 209, 210, 211 or 212” re applicability of tax credit and make a technical change, effective July 8, 2019, and applicable to income years commencing on or after July 8, 2019.

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Sec. 32-9u. Use of North American Industrial Classification codes. The Commissioner of Economic and Community Development may issue an eligibility certificate for a program under section 32-9j, 32-9p, 32-9r or 32-9t to a business that has a North American Industrial Classification code, provided the business meets the specifications of the Standard Industrial Classification Manual code, in said section 32-9j, 32-9p, 32-9r or 32-9t. Nothing in this section shall be construed to allow the commissioner to expand eligibility for any benefit conferred by the issuance of such a certificate to a business that would not have been eligible due to its Standard Industrial Classification Manual code.

(P.A. 10-190, S. 7.)

History: P.A. 10-190 effective June 9, 2010.

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Sec. 32-9v. Redevelopment of properties that provide significant regional or state-wide economic benefits. Pilot programs and development projects. (a) To promote redevelopment of properties that will provide significant regional or state-wide economic benefits in a manner that promotes smart growth, as defined in section 1 of public act 09-230*, the Commissioners of Economic and Community Development, Energy and Environmental Protection and Transportation, and the Secretary of the Office of Policy and Management may cooperatively develop pilot programs that facilitate such redevelopment. The Commissioner of Economic and Community Development shall certify before February 1, 2013, to the Governor for his or her approval no more than three development projects that are likely to produce significant regional or state-wide economic development benefit. Such development projects shall (1) be located in a distressed municipality, target investment community or enterprise zone, (2) primarily involve redevelopment of previously developed properties, and (3) be consistent with the principles of smart growth as defined in section 1 of public act 09-230*. Upon approval by the Governor of any such project, the Commissioner of Economic and Community Development shall publish notice of such approval, including a description of the project, in the affected municipalities, provided such publication shall include notice in the Environmental Monitor.

(b) On or before February 1, 2013, the Commissioner of Economic and Community Development shall, in accordance with the provisions of section 11-4a, report to the Governor and the joint standing committee of the General Assembly having cognizance of matters relating to commerce on the success of any pilot program developed in accordance with this section.

(P.A. 12-183, S. 5.)

*Note: Section 1 of public act 09-230 is special in nature and therefore has not been codified but remains in full force and effect according to its terms.

History: P.A. 12-183 effective June 15, 2012.

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Sec. 32-9w. Evaluation of impact of development project on the environment. Procedure. (a) Notwithstanding sections 22a-1 to 22a-1i, inclusive, upon approval by the Governor of a project, in accordance with section 32-9v, such project shall comply with the procedure set forth in this section.

(b) The Department of Economic and Community Development shall prepare a written evaluation of the impact of the overall project on the environment. Such evaluation shall include a list of all permits, licenses or other approvals required by the Department of Energy and Environmental Protection and a detailed evaluation of environmental impacts that addresses all of the matters in subsection (c) of section 22a-1b. The commissioner shall consider all public comments in preparing such environmental impact evaluation. The Commissioner of Economic and Community Development shall submit such evaluation and a summary thereof, including any negative findings to the Commissioner of Energy and Environmental Protection and the Secretary of the Office of Policy and Management and shall make the evaluation and summary available to the public for inspection and comment at the same time. The Commissioner of Economic and Community Development shall hold a public hearing on the evaluation and shall publish notice of the availability of such evaluation and summary in the Environmental Monitor and a newspaper of general circulation in the affected municipalities not less than fourteen calendar days before the date of such hearing. Any person may comment at the public hearing or in writing not later than the second day following the close of the public hearing. All public comments received by the Department of Economic and Community Development shall be promptly forwarded to the Commissioner of Energy and Environmental Protection and the Secretary of the Office of Policy and Management and shall be made available for public inspection.

(c) The Secretary of the Office of Policy and Management shall review the evaluation, together with the comments thereon, and shall make a written determination as to whether (1) the process prescribed in this section has been followed, (2) such evaluation is adequate, and (3) all comments received have been addressed. Such determination shall be made public and forwarded to the Department of Economic and Community Development not later than ten days after the close of the hearing. The Secretary of the Office of Policy and Management may revise or require the revision of the evaluation if the secretary finds that the evaluation is inadequate. In making a determination, the Secretary of the Office of Policy and Management shall take into account all public and agency comments.

(P.A. 12-183, S. 8; P.A. 13-123, S. 8.)

History: P.A. 12-183 effective June 15, 2012; P.A. 13-123 made a technical change in Subsec. (b), effective June 18, 2013.

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Sec. 32-9x. Analysis of benefits and opportunity costs of current use and alternative uses of Hartford Brainard Airport property. Connecticut Airport Authority requirements and prohibition. Report. (a) The state shall, consistent with and supportive of the goals of promoting the health, welfare and safety of the people of the state and increasing their quality of life, boosting tourism, stimulating the economy and enhancing the ability of people to enjoy the Connecticut River, assess the benefits and opportunity costs to the city of Hartford and to the state of the current use and alternative uses of the Hartford Brainard Airport property.

(b) To further such assessment and identify the related costs, the Department of Economic and Community Development shall have an analysis conducted that includes, but is not limited to, the following:

(1) The economic impact, direct, indirect, quantitative and qualitative, of the current use of the property to the state and to the region surrounding the property;

(2) The economic impact, direct, indirect, quantitative and qualitative, of alternative uses of the property, including commercial, residential and recreational opportunities, to the state and to the region surrounding the property;

(3) Identification of any environmental or flood control obstacles to the development of alternative uses of the property, including the conducting of any required testing of the site, and the possible avenues and associated costs to render the property environmentally developable;

(4) Identification of any federal, state or local governmental obstacles, including existing contractual obligations, to the development of alternative uses of the property, the possible avenues to remove each such obstacle and the associated costs of pursuing each avenue; and

(5) The highest and best use of the property if not its current use, taking into consideration the findings of subdivisions (2) to (4), inclusive, of this subsection and the goals set forth in subsection (a) of this section.

(c) (1) To accomplish the analysis, the Department of Economic and Community Development shall issue a request for proposals for an entity to oversee the analysis and the production of the report required under subsection (e) of this section. Once selected, such entity shall issue separate requests for qualifications to engage consultants or entities, or both, to undertake (A) the economic components of the analysis, (B) the environmental components of the analysis, and (C) the regulatory components of the analysis. Such entity shall select consultants and entities whose expertise best lends itself to analyzing the specific subject matter components of the analysis.

(2) The Department of Energy and Environmental Protection shall obtain from the United States Army Corps of Engineers any information or reports generated in the preceding ten years by said agency pertaining to the Connecticut River in Hartford and Wethersfield. Said department shall provide such information or reports to the Department of Economic and Community Development, for distribution to the appropriate consultants or entities under subdivision (1) of this subsection to inform the analysis.

(d) (1) The Connecticut Airport Authority, established pursuant to section 15-120bb, shall assist and work collaboratively with the entities and consultants engaged under subdivision (1) of subsection (c) of this section to accomplish the analysis.

(2) For the period commencing July 1, 2022, to May 31, 2024, inclusive, the Connecticut Airport Authority shall not enter into any agreements or incur any obligations that would further encumber the property or that would prohibit or impinge the development of alternative uses of the property, unless such agreement or obligation provides for its termination without liability in the event the property is no longer to be used as an airport in the future, in which case such agreement or obligation shall terminate not later than six months after a decision is made to close the airport.

(3) The provisions of subdivision (2) of this subsection shall not apply to the acceptance of federal grants from the Federal Aviation Administration for items deemed to be necessary for the safe operation of the airport, provided nothing that extends or will have the result of extending a runway shall be considered necessary for the safe operation of the airport.

(e) Not later than October 15, 2023, the Department of Economic and Community Development shall submit a report of the findings of the analysis to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding.

(P.A. 22-118, S. 426.)

History: P.A. 22-118 effective July 1, 2022.

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Secs. 32-9y and 32-9z. Reserved for future use.

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Secs. 32-9aa and 32-9bb. Loans for the repair of dams. Regulations. Sections 32-9aa and 32-9bb are repealed.

(P.A. 84-452, S. 1, 2, 4; P.A. 87-416, S. 16, 24; P.A. 88-265, S. 35, 36; 88-266, S. 13, 46.)

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Sec. 32-9cc. Transferred to Chapter 588gg, Sec. 32-761.

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Sec. 32-9dd. Transfer of remediated brownfields. Section 32-9dd is repealed, effective July 1, 2013.

(P.A. 06-184, S. 6; P.A. 09-235, S. 3; P.A. 11-80, S. 1; P.A. 13-308, S. 37.)

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Sec. 32-9ee. Transferred to Chapter 588gg, Sec. 32-764.

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Secs. 32-9ff and 32-9gg. Connecticut brownfields remediation account. Brownfield remediation funds for manufacturing facilities. Sections 32-9ff and 32-9gg are repealed, effective July 1, 2013.

(P.A. 06-184, S. 9, 12; P.A. 11-141, S. 3; P.A. 13-308, S. 37.)

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Secs. 32-9hh to 32-9jj. Transferred to Chapter 300a, Secs. 17-31ee to 17-31gg, inclusive.

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Sec. 32-9kk. Transferred to Chapter 588gg, Sec. 32-763.

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Sec. 32-9ll. Transferred to Chapter 588gg, Sec. 32-768.

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Sec. 32-9mm. Transferred to Chapter 588gg, Sec. 32-769.

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Secs. 32-9nn to 32-9pp. Loans for business disruption caused by road and bridge repair. Road and Bridge Repair Business Disruption Trust Fund. Bond issue. Sections 32-9nn to 32-9pp, inclusive, are repealed.

(P.A. 86-335, S. 1–3, 5; P.A. 88-265, S. 35, 36.)

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Sec. 32-9qq. Business outreach center challenge grants. Eligibility of greenways projects. (a) It is hereby found and declared as a matter of legislative determination that there is a continuing need in the state for stimulation and encouragement of economic growth and development within the state through the establishment of business outreach centers located in certain regions of the state or for certain industry sectors to assist in providing services to small businesses and minority business enterprises as defined in section 4a-60g in the areas of business plan development, financial projection and planning, loan packaging, business counseling and related follow-up services, including the monitoring of any of the foregoing.

(b) The business outreach center challenge grant program is hereby created. In order to stimulate and encourage economic growth and development, the state, acting through the Department of Economic and Community Development, may make grants for the establishment of business outreach centers located in certain regions of the state or for certain industry sectors to assist in providing services to small businesses and minority business enterprises. Such grants shall be made under such terms and conditions as the department deems appropriate and shall be payable from the proceeds of the sale of bonds authorized under subsection (f) of this section and funds received by the department from any other source, in accordance with the following provisions:

(1) A business outreach center shall be any nonprofit or governmental entity providing or able to provide assistance to small businesses and minority business enterprises in the areas of business plan development, financial projection, loan package planning, including loan packaging for small businesses and minority business enterprises which are seeking financial assistance from Connecticut Innovations, Incorporated, business counseling and related monitoring and follow-up services.

(2) The department may require any entity receiving a grant pursuant to this section to obtain a matching grant in such amount as the department determines in its discretion. Such matching grant may include cash and in-kind contributions.

(c) Grants may be made under this section to municipalities and other organizations for the purpose of providing funds to develop greenways, including, but not limited to, transportation-related greenways supported by the federal Transportation Equity Act for the 21st Century, as amended from time to time. The amount of any grant shall be as follows: (1) For transportation greenways projects that are part of interstate greenways, not more than twenty per cent of the project cost; (2) for transportation greenways projects that are local spurs from interstate greenways or that are intertown greenways projects, not more than ten per cent of the project cost; and (3) for greenways that are not transportation greenways, not more than half of the capital costs of the project.

(d) Applications for grants under this section shall be submitted on forms provided by the department. When reviewing applications, the department shall consider such factors as the impact on certain regions of the state or certain industry sectors, the applicant's plan for outreach efforts designed to inform small businesses and minority business enterprises of available sources of financial and technical assistance and the commitment and capacity of the applicant to provide assistance to small businesses and minority business enterprises under this section.

(e) Each grant made under this section shall be authorized pursuant to regulations adopted by the Department of Economic and Community Development in accordance with the provisions of chapter 54, which regulations may include, but shall not be limited to, provisions concerning application requirements, grant amounts and eligible use of funds, provided the amount of any grant under subsection (b) of this section shall be not more than the amount specified in said subsection.

(f) For the purposes 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 two million five hundred thousand dollars. The proceeds of the sale of said bonds shall be used by the Department of Economic and Community Development for grants under the business outreach center challenge grant program created under this section. 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. Said 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, 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. Net earnings on investments or reinvestments of proceeds, accrued interest and premiums on the issuance of such bonds, after payment therefrom of expenses incurred by the Treasurer or State Bond Commission in connection with their issuance, shall become part of the business outreach center challenge grant program.

(P.A. 88-265, S. 28, 36; P.A. 89-119, S. 2, 4; P.A. 95-250, S. 1; 95-335, S. 5, 26; P.A. 96-211, S. 1, 5, 6; P.A. 00-148, S. 18; P.A. 05-288, S. 140; June 12 Sp. Sess. P.A. 12-1, S. 152.)

History: P.A. 89-119 made technical change to Subsec. (b); P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; P.A. 95-335 inserted new Subsec. (c) making greenways projects eligible for grants and relettered the remaining Subsecs., effective July 1, 1995; P.A. 00-148 amended Subsec. (c) by changing “Intermodal Surface Transportation Efficiency Act of 1991” to “Transportation Equity Act for the 21st Century”; P.A. 05-288 made a technical change in Subsec. (e), effective July 13, 2005; pursuant to June 12 Sp. Sess. P.A. 12-1, “Connecticut Development Authority” was changed editorially by the Revisors to “Connecticut Innovations, Incorporated” in Subsec. (b)(1), effective July 1, 2012.

See Sec. 23-100 re definition of “greenway”.

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(P.A. 89-245, S. 19; P.A. 91-169, S. 1, 3; 91-280, S. 1, 4; P.A. 95-38, S. 8; 95-250, S. 1; P.A. 96-59.)

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Sec. 32-9tt. Funding for businesses new to exporting. (a) The Commissioner of Economic and Community Development may provide cost sharing or matching grant moneys, with funds available through bond authorization pursuant to section 32-235, to assist and promote economic clusters representing businesses that are new to exporting or organizations representing such businesses. For purposes of this section, “cost sharing or matching grant moneys” means all contributions, including cash and third party in-kind donations that are approved by the commissioner.

(b) Such cost sharing or matching grant moneys shall be available to a group of businesses or the organization representing such group, for the following purposes: (1) Recruiting and organizing of member businesses for the purpose of collaborating on ways in which the member business may export their products and services to other countries; (2) researching and identifying the foreign markets where there is a demand for their products and services; (3) designating agents for the purpose of accessing the services of federal, state, local, private and nonprivate export service providers; and (4) identifying and contracting with foreign representatives in the identified markets to promote and sell the products and services of the member businesses.

(c) A group receiving grants shall provide the commissioner with information concerning goals, methodology, budget and program results. Such information shall be provided in a form and manner prescribed by the commissioner.

(P.A. 00-153.)

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Sec. 32-9uu. Program to increase entrepreneurial potential in the inner cities. The Commissioner of Economic and Community Development may establish, within available appropriations, a program to increase the entrepreneurial potential in the inner cities and provide successful role models that will further demonstrate to students and residents the value of market-based strategies to increase wealth and income.

(P.A. 05-276, S. 4.)

History: P.A. 05-276 effective July 13, 2005.

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Sec. 32-9vv. Connecticut Hydrogen-Fuel Cell Coalition. The Department of Economic and Community Development shall establish, in consultation with the Connecticut Center for Advanced Technology, a Connecticut Hydrogen-Fuel Cell Coalition.

(P.A. 06-187, S. 63.)

History: P.A. 06-187 effective May 26, 2006.

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Sec. 32-9ww. Fuel cell economic development plan. Reports. Section 32-9ww is repealed, effective July 1, 2012.

(P.A. 06-187, S. 64; P.A. 11-61, S. 180; 11-80, S. 1.)

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Sec. 32-9xx. Small Business Advisory Board. Section 32-9xx is repealed, effective July 13, 2021.

(P.A. 10-145, S. 2; P.A. 21-193, S. 26.)

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Sec. 32-9yy. Connecticut Credit Consortium. Small business assistance account. (a) As used in this section, “qualified business” means a Connecticut business, whether for-profit or not-for-profit, employing less than one hundred employees.

(b) The Commissioner of Economic and Community Development shall establish the Connecticut Credit Consortium, which shall be a small business assistance revolving loan program to provide direct loans and lines of credit to qualified businesses. The commissioner shall establish eligibility criteria and guidelines for the program.

(c) As part of the program established pursuant to subsection (b) of this section, the commissioner may make, or cause to be made, direct loans or lines of credit to any qualified businesses, provided the cumulative total of outstanding loans and lines of credit (1) to any business at any time shall not exceed five hundred thousand dollars, and (2) to all businesses at any time shall not exceed fifteen million dollars.

(d) There is established an account to be known as the “small business assistance account” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. All moneys received in consideration of financial assistance, including payments of principal and interest on any loans, shall be credited to the account. Moneys in the account shall be expended by the Department of Economic and Community Development for the purposes of the small business assistance program established pursuant to subsection (b) of this section.

(e) Loans and lines of credit provided pursuant to subsection (b) of this section shall be exempt from the provisions of sections 32-5a and 32-222 to 32-234, inclusive.

(P.A. 10-75, S. 6; P.A. 11-104, S. 4; 11-140, S. 25.)

History: P.A. 10-75 effective July 1, 2010; P.A. 11-104 amended Subsec. (d) by deleting provisions re repayments credited to fund and re carry forward of account balance, effective July 8, 2011; P.A. 11-140 amended Subsec. (a) to redefine “qualified business” as one with less than 100, rather than 50, employees, effective July 8, 2011.

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Sec. 32-9zz. Manufacturing reinvestment account. (a) For the purposes of this section, (1) “manufacturing reinvestment account” means a trust created or organized by a manufacturer and held by a Connecticut bank for the benefit of such manufacturer, to which the manufacturer may make cash contributions not to exceed the amount set forth in subsection (c) of this section for any income year. Moneys in a manufacturing reinvestment account shall not be invested in life insurance contracts or comingled with other property, and (2) “manufacturer” means any business entity subject to tax pursuant to chapter 208 or 229 that is engaged in the business of manufacturing, as defined in subdivision (72) of section 12-81.

(b) The Department of Economic and Community Development shall establish criteria and guidelines to select not more than fifty manufacturers that may establish a reinvestment account pursuant to subsection (c) of this section. Such criteria shall include, but not be limited to, a requirement that any such manufacturer shall have not more than one hundred fifty employees. The department shall, based on the criteria established pursuant to this subsection, establish an ongoing list of selected manufacturers.

(c) Any manufacturer may establish an interest-bearing manufacturing reinvestment account, provided (1) contributions in any income year shall not exceed the lesser of (A) fifty thousand dollars in income years commencing on or after January 1, 2011, and prior to January 1, 2012, or one hundred thousand dollars in income years commencing on or after January 1, 2012, or (B) such manufacturer's domestic gross receipts, (2) moneys may be held in such account for not more than five years, (3) distributions from such account shall be used by such manufacturer to purchase machinery or equipment for use in the state or manufacturing facilities, as defined in subdivision (72) of section 12-81, or for workforce training, development or expansion in the state, and (4) distributions shall be treated in accordance with the provisions of chapter 208 or 229.

(d) Any money remaining in a manufacturing reinvestment account at the end of the five-year period after such account's creation or organization, including any interest earned remaining, shall be returned to the manufacturer and shall be treated in accordance with the provisions of chapter 208 or 229.

(P.A. 11-140, S. 4; Oct. Sp. Sess. P.A. 11-1, S. 18; June 12 Sp. Sess. P.A. 12-1, S. 192, 193; P.A. 14-69, S. 1.)

History: P.A. 11-140 effective July 1, 2011, and applicable to income years commencing on or after January 1, 2011; Oct. Sp. Sess. P.A. 11-1 amended Subsec. (b) to allow 100 manufacturers, rather than 50, to establish accounts and amended Subsec. (c) to increase annual set-aside amount in income years on or after January 1, 2012, from $50,000 to $100,000, effective October 27, 2011; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (c) to add “for use in the state” and “in the state” in Subdiv. (3) and replace “disbursements” with “distributions” and replace provision re tax rate of three and one-half per cent with provision re treatment in accordance with Ch. 208 or 229 in Subdiv. (4), and amended Subsec. (d) to replace provision re timely payment of tax with provision re treatment in accordance with Ch. 208 or 229 and make technical changes, effective June 15, 2012; P.A. 14-69 amended Subsec. (b) to change “one hundred manufacturers” to “fifty manufacturers” and change “fifty employees” to “one hundred fifty employees”, effective July 1, 2014.

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