Sec. 32-702. Procedure if noncompliance with agreement. Default. Penalty.
Sec. 32-703. Lien on security. Exception.
Sec. 32-704. Hospitality projects receiving state assistance. Labor peace agreements.
Secs. 32-705 to 32-709. Reserved
Sec. 32-700. Definitions. As used in sections 32-701 to 32-703, inclusive, and this section:
(1) “Awarding authority” means the Commissioner of Economic and Community Development, the board of directors of Connecticut Innovations, Incorporated, and the head of any other quasi-public agency, as defined in section 1-120, and any state agency authorized to award state assistance, as defined in subdivision (2) of this section.
(2) “State assistance” means any grant, loan, loan guarantee or issuance of tax benefit not of general applicability for the purpose of economic development that is (A) made to a business entity operated for profit, and (B) in an amount greater than one million dollars or that, if added to any other such state assistance made to the same business entity during the preceding two years, would total greater than one million dollars.
(P.A. 02-86, S. 1; June 12 Sp. Sess. P.A. 12-1, S. 165.)
History: P.A. 02-86 effective July 1, 2002; June 12 Sp. Sess. P.A. 12-1 amended Subdiv. (1) to redefine “awarding authority”, effective July 1, 2012.
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Sec. 32-701. Required terms and conditions of agreement for state assistance. Repayment. Modification. (a) The terms and conditions of any agreement for state assistance under any program of the general statutes to a business entity operated for profit administered by the Department of Economic and Community Development and Connecticut Innovations, Incorporated, shall include provisions for (1) specific goals for the creation and retention of full-time and part-time jobs and for periodic reports by the recipient on progress in achieving such goals if the primary purpose of the state assistance is job creation or retention, and (2) a requirement that an applicant for state assistance, except (A) equity investments, (B) grants, and (C) loans of a term of less than one year, provide the agency with security that is appropriate and reasonable in the circumstance for such financial assistance, including, but not limited to, a letter of credit, a lien on real property or a security interest in goods, equipment, inventory or other property of any kind and that the recipient of such state assistance will remain in substantial material compliance with state and federal law.
(b) If a recipient fails to create or retain the number of jobs in this state stipulated in an agreement for state assistance and such failure is due to circumstances within the control of such recipient, the recipient shall repay an amount that is in proportion to the number of jobs that it failed to create or retain unless the awarding authority deems it is in the best interests of the state or the community in which the recipient is located to revise such job creation goals. In such event, the parties shall enter into a revised agreement subject to the approvals required by subsection (c) of this section. Upon request of the awarding authority, a recipient shall provide information necessary to determine compliance with this section, including information showing the compensation paid to employees on jobs created as a result of the state assistance.
(c) The awarding authority, in its discretion, may modify the terms and conditions of any state assistance, including, but not limited to, forgiveness of repayment of a loan, revision of job creation and retention goals or changes to interest rates, provided such awarding authority notifies the State Bond Commission or the appropriate board of directors, if any, of the modification.
(P.A. 02-86, S. 2; June 12 Sp. Sess. P.A. 12-1, S. 166; P.A. 13-45, S. 1.)
History: P.A. 02-86 effective July 1, 2002; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (a) by deleting reference to Connecticut Development Authority and, in Subdiv. (2), deleting “any type of” re state assistance, adding exception re equity investments and replacing “appropriate security” with “security that is appropriate and reasonable in the circumstance”, effective July 1, 2012; P.A. 13-45 made technical changes in Subsec. (a)(2), effective May 28, 2013.
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Sec. 32-702. Procedure if noncompliance with agreement. Default. Penalty. If an awarding authority finds that a recipient of state assistance is not in substantial compliance with any other provision of the agreement and such noncompliance is within the recipient's control, the awarding authority shall provide written notice, by registered mail, to the recipient and shall order the recipient to come into compliance with such agreement not less than one hundred eighty days following receipt of such notice. Failure to comply with reporting requirements set forth in such agreement shall constitute a default. If the recipient fails to come into compliance with such agreement within the one-hundred-eighty-day period, the awarding authority may (1) rescind the agreement and require that the state be made whole by the repayment by the recipient of (A) the amount of any grant made, (B) the amount of any loan outstanding, including any interest necessary to make the state whole, or (C) the amount of any tax benefit received, or (2) impose a penalty on such recipient, for the period of failure to comply, at the rate of one per cent per month or any part thereof of the amount of the grant, tax benefit or loan outstanding. The awarding authority may foreclose on any collateral or bond related to such grant, tax benefit or loan for the purpose of payment of such penalty and any costs incurred by the awarding authority in connection with collection of such penalty.
(P.A. 02-86, S. 3.)
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Sec. 32-703. Lien on security. Exception. If the terms and conditions of an agreement for state assistance, except an agreement for grants only, provide for security, the awarding authority providing such state assistance shall have a lien on such security in an amount equal to the amount that is due on such state assistance or other appropriate security for such financial assistance. Any such lien shall have priority over all other subsequent liens except state tax liens, except if the awarding authority determines it is not in the best interests of the state to have such priority. The awarding authority shall notify the State Bond Commission or the appropriate board of directors, if any, of such determination.
(P.A. 02-86, S. 4.)
History: P.A. 02-86 effective July 1, 2002.
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Sec. 32-704. Hospitality projects receiving state assistance. Labor peace agreements. (a) As used in this section, the following terms have the following meanings:
(1) “Capital project” means any acquisition, construction, rehabilitation or remodeling of any structure used or intended to be used for commercial purposes that is financed in whole or in part with funds or property from or arranged by the state, including, but not limited to, grants, loans, bonds, revenue bonds, tax increment financing, conveyance of real property or other means;
(2) “Concession area” means a space or privilege granted within or upon a premises that is used for the purpose of a subsidiary business or service;
(3) “Contractor” means a business entity or individual who is awarded a hospitality project contract;
(4) “Hospitality project” means any (A) capital project involving a restaurant, bar, club, cafeteria or other food and beverage operation within or upon the premises of a hotel, or (B) concession area used to provide food and beverage or news or gift services within or upon the premises of a state-owned or operated facility that is financed or contracted for by the state;
(5) “Hotel” means a commercial establishment where sleeping accommodations are offered for pay to transient guests;
(6) “Labor peace agreement” means an agreement between a contractor, and any subcontractor thereof, and a labor organization representing hotel or concession area employees in the state that requires the labor organization and its members to refrain from engaging in labor activity that may disrupt the operations of the hotel or concession area, including, but not limited to, strikes, boycotts, work stoppages and picketing;
(7) “State” means the state of Connecticut; and
(8) “Substantial proprietary interest” means (A) a financial investment by the state of not less than six million dollars in any hospitality project, or twenty per cent of the cost of such project, whichever is less, in which the state shall be reimbursed under the terms of a finance agreement, or (B) any contract, lease or license entered into or issued pursuant to a hospitality project in which the state is entitled to receive rents, royalties or other payments in connection with a property provided by the state and based on the revenue of such hospitality project.
(b) For any hospitality project entered into on or after January 1, 2016, in which the state holds a substantial proprietary interest, the state shall require any contract for hotel or concession area operation or management services pursuant to such project to include a labor peace agreement between the contractor and any subcontractor, tenant or licensee thereof providing such operation or services and the labor organization representing or seeking to represent the employees of such hotel or concession area. Such labor peace agreement shall remain in effect until such time as the state's financial investment has been fully repaid.
(June Sp. Sess. P.A. 15-5, S. 113; P.A. 16-193, S. 13.)
History: June Sp. Sess. P.A. 15-5 effective January 1, 2016; P.A. 16-193 made a technical change in Subsec. (a).
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Secs. 32-705 to 32-709. Reserved for future use.
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