Sec. 32-451. Public policy objectives for threshold projects.
Sec. 32-452. Information required for threshold projects.
Sec. 32-453. Additional criteria for award of financial assistance.
Sec. 32-456. Logs of pending requests for assistance.
Sec. 32-457. Confidential or proprietary information or trade secrets.
Sec. 32-458. Liabilities of applicants for financial assistance.
Sec. 32-459. Return or use of unused grant awards.
Secs. 32-460 and 32-461. Reserved
Sec. 32-462a. Authorization for financial assistance to Torrington Development Corporation.
Sec. 32-462b. Authorization for financial assistance to the Steel Point project in Bridgeport.
Secs. 32-463 to 32-474. Reserved
Sec. 32-479. Development of goals, objectives and outcome measures. Annual reports.
Sec. 32-480. Encouragement of utilization of high performance work practices.
Secs. 32-481 to 32-499. Reserved
Sec. 32-450. Definitions. As used in sections 32-450 to 32-458, inclusive:
(1) “Awarding authority” means the Commissioner of Economic and Community Development and the board of directors of Connecticut Innovations, Incorporated.
(2) “Economic development financial assistance” means any grant, loan or loan guarantee, or combination thereof, or any tax credits approved pursuant to section 32-9t, provided to a business for the purpose of economic development.
(3) “Employee representatives” means representatives of any certified or recognized bargaining agents for employees of a business.
(4) “Threshold project” means (A) a project for which a business operating in the state and having twenty-five or more full-time employees in the state submits a request to an awarding authority for economic development financial assistance in the form of (i) a grant in the amount of two hundred fifty thousand dollars or more or (ii) a combination of a grant and a loan or loan guarantee, totaling two hundred fifty thousand dollars or more, or (B) a project for which a business operating in the state and having one hundred or more full-time employees in the state submits a request to an awarding authority for economic development financial assistance in the form of (i) a loan or a loan guarantee, in the amount of one million dollars or more, or (ii) a combination of a loan and a loan guarantee, totaling one million dollars or more.
(P.A. 94-231, S. 1, 9; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; 96-264, S. 2, 8; P.A. 06-189, S. 19; June 12 Sp. Sess. P.A. 12-1, S. 161; P.A. 14-85, S. 2.)
History: P.A. 94-231 effective October 1, 1994, and applicable to applications for economic development financial assistance submitted on or after said date; 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. 96-264 amended Subdiv. (4) by designating existing provisions defining “threshold project” as Subpara. (A), applying Subpara. (A) to a grant or a combination of a grant and a loan or loan guarantee totaling $250,000 or more and adding Subpara. (B) re criteria for request for financial assistance in form of a loan or loan guarantee or a combination of a loan and a loan guarantee, effective July 1, 1996; P.A. 06-189 amended Subdiv. (2) to redefine “economic development financial assistance” by including tax credits approved pursuant to Sec. 32-9t; June 12 Sp. Sess. P.A. 12-1 amended Subdiv. (1) to delete reference to board of directors of Connecticut Development Authority, effective July 1, 2012; P.A. 14-85 added reference to Sec. 32-458.
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Sec. 32-451. Public policy objectives for threshold projects. Each awarding authority shall (1) develop a written statement articulating the public policy objectives for threshold projects under each economic development financial assistance program administered by the authority and (2) inform each business seeking such financial assistance of such public policy objectives at the time that the business initially requests the assistance. Such public policy objectives may include, but shall not be limited to, retaining existing businesses in the state; retaining existing jobs in the state; expanding the level of economic activity by existing businesses in the state; expanding employment opportunities with existing businesses in the state; attracting new jobs to the state; providing jobs for underemployed persons, laid-off workers and public assistance recipients; increasing, enhancing and updating the capacity of businesses in the state; increasing, enhancing and updating employee skills and employee training in the state; increasing state and municipal tax revenues from increased economic activity and increased employment; and providing other benefits to the state, local community, citizens and employers.
(P.A. 94-231, S. 2, 9.)
History: P.A. 94-231 effective October 1, 1994, and applicable to applications for economic development financial assistance submitted on or after said date.
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Sec. 32-452. Information required for threshold projects. (a) Each business seeking economic development financial assistance for a threshold project shall submit the following prior to any decision by the awarding authority regarding such assistance:
(1) A statement explaining how the business will use the financial assistance to further the public policy objectives developed under section 32-451 for the program under which assistance is sought, including but not limited to, the number of jobs to be retained, the number of jobs to be created and the wage and benefit levels of such jobs. Such statement shall not be a contractual or otherwise binding obligation of the business, provided no provision of this subdivision shall be deemed to prohibit the awarding authority from imposing any lawful conditions on the award of economic development financial assistance;
(2) A statement regarding the municipality in which the project will be located, indicating (A) whether the business has consulted with such municipality concerning the business's request for financial assistance and the public policy objectives which the request is intended to serve and, if not, (i) the reasons why and (ii) whether the business intends to so consult, (B) whether the municipality supports such request, (C) whether the municipality has made any commitments to the business and, if so, the nature of such commitments and a description of the manner in which the commitments relate to the business's plan for using the economic development financial assistance to further the public policy objectives of the awarding authority, and (D) whether the business has made any commitments to the municipality which relate to the request and, if so, a description of the relationship between the assistance sought and such commitments. If the business has consulted with the municipality concerning the request, the business shall provide a copy of the portion of the statement described in subparagraphs (B), (C) and (D) of this subdivision to the chief elected official of the municipality; and
(3) If there are employee representatives of the business and (A) the business has not consulted with such employee representatives concerning the request for financial assistance and the public policy objectives which the request is intended to serve, a statement to that effect that also indicates (i) the reasons for not consulting with the employee representatives and (ii) whether the business intends to so consult, or (B) the business has consulted with the employee representatives of the business concerning the request and such objectives, a statement prepared jointly by the business and the employee representatives or separate statements by the business and the employee representatives, indicating (i) whether the employee representatives support the application, (ii) whether the employee representatives have made any commitments to the business and, if so, the nature of such commitments and a description of the manner in which the commitments relate to the business's plan for using the economic development financial assistance to further the public policy objectives of the awarding authority, (iii) whether the business has made any commitments to the employee representatives which relate to the request and, if so, a description of the relationship between the assistance sought and such commitments, and (iv) whether the business has developed a plan for on-going cooperation between the business and its employees through a labor-management committee or any other mechanism, for the purpose of promoting such public policy objectives.
(b) If there are no employee representatives of a business seeking economic development financial assistance for a threshold project, the business and its employees may submit either a joint statement or separate statements to the awarding authority, containing the information described in subparagraph (B) of subdivision (3) of subsection (a) of this section with regard to employees of the business.
(P.A. 94-231, S. 3, 9.)
History: P.A. 94-231 effective October 1, 1994, and applicable to applications for economic development financial assistance submitted on or after said date.
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Sec. 32-453. Additional criteria for award of financial assistance. (a) In addition to the criteria specified under the provisions of the general statutes authorizing each economic development financial assistance program, the awarding authority shall consider the following criteria in evaluating each request for financial assistance for a threshold project under each such program:
(1) The extent to which the request addresses the stated public policy objectives developed under section 32-451 for the program;
(2) The probability that the projected benefits to the state, local community and employees will be achieved; and
(3) The extent to which the business's project planning has included community and employee participation.
(b) After approving a request for financial assistance for a threshold project, the awarding authority and the business shall sign a statement (1) identifying the public policy objectives which the project will address and the extent to which the project will further such objectives, including but not limited to, the number of jobs to be retained, the number of jobs to be created and the wage and benefit levels of such jobs, and (2) reciting that the business understands that it is receiving economic development financial assistance because of the expectation that the assistance will be used to produce such benefits. Such statement shall not be contractually binding on the business, provided the appointing authority may, in a separate document, require any contractual commitments that it deems appropriate. The authority shall provide a copy of such statement to the chief elected official of the municipality in which the project will be located and any employee representatives of the business.
(P.A. 94-231, S. 4, 9.)
History: P.A. 94-231 effective October 1, 1994, and applicable to applications for economic development financial assistance submitted on or after said date.
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Sec. 32-454. Reports. (a) Each awarding authority shall require each recipient of economic development financial assistance for a threshold project to report annually to the authority on its progress toward achieving the public policy objectives which they have agreed to under subsection (b) of section 32-453. The awarding authority shall provide a copy of such report (1) to the chief elected official of the municipality in which the project will be located, upon the request of such official, and (2) to any employee representatives of the business, upon the request of such representatives.
(b) Upon submitting each biannual report required under subsection (c) of section 32-11a or section 32-47a, each awarding authority under said provisions shall transmit a report on each threshold project (1) to the chief elected official of each municipality in which the project is located, upon the request of such official, and (2) to any employee representatives of the business, upon the request of such representatives. Each report shall include a notice indicating that (A) the information in the report is also being submitted to the joint standing committees of the General Assembly having cognizance of matters relating to the Department of Economic and Community Development, appropriations and capital bonding, and (B) comments, including comments on employee and community participation in implementing the project, may be submitted to such committees.
(P.A. 94-231, S. 5, 9; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 05-191, S. 7.)
History: P.A. 94-231 effective October 1, 1994, and applicable to applications for economic development financial assistance submitted on or after said date; 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. 05-191 amended Subsec. (b) by deleting reference to reports required under Sec. 32-1i and making a technical change.
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Sec. 32-455. Contracts. The awarding authority shall include provisions in the contract with a recipient of economic development financial assistance for a threshold project that (1) require the recipient to use the assistance only for the purposes approved by the authority and (2) establish remedies in the event that the recipient does not use such assistance for such purposes. Such remedies may include, but shall not be limited to, liquidated damages. In the event the recipient breaches the contract by spending such financial assistance in a manner which violates the contract, the awarding authority shall seek enforcement of such remedies and provide no further financial assistance to the recipient until the breach is resolved.
(P.A. 94-231, S. 6, 9.)
History: P.A. 94-231 effective October 1, 1994, and applicable to applications for economic development financial assistance submitted on or after said date.
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Sec. 32-456. Logs of pending requests for assistance. Each awarding authority shall maintain a log containing a list of all pending requests for economic development financial assistance for threshold projects. The log shall be organized by the municipalities affected by such requests and, for each such request, shall set forth the name of the business requesting such financial assistance, a brief statement of the purpose of the application and a means for members of the public to obtain additional information concerning the request. The information contained in the log shall be made available, on request, to members of the public, subject to the provisions of section 32-457.
(P.A. 94-231, S. 7, 9.)
History: P.A. 94-231 effective October 1, 1994, and applicable to applications for economic development financial assistance submitted on or after said date.
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Sec. 32-457. Confidential or proprietary information or trade secrets. Notwithstanding any provision of sections 32-450 to 32-457, inclusive, (1) no business seeking economic development financial assistance for a threshold project shall be required to disclose confidential or proprietary information or trade secrets to a municipality, the employees of the business or any other person, except to the extent required by the awarding authority as a condition of receipt of such assistance, (2) no awarding authority shall be required to disclose confidential or proprietary information or trade secrets and (3) no such business or awarding authority shall be required to disclose the existence of a request for financial assistance if the existence of such a request is itself confidential or proprietary information or a trade secret.
(P.A. 94-231, S. 8, 9.)
History: P.A. 94-231 effective October 1, 1994, and applicable to applications for economic development financial assistance submitted on or after said date.
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Sec. 32-458. Liabilities of applicants for financial assistance. Any awarding authority, as defined in section 32-450, when determining whether to grant any economic development financial assistance, shall consider whether the applicant for such financial assistance or any principal of such applicant (1) is currently subject to litigation in civil court for a debt, or (2) has any amount of taxes due and unpaid to the state or a municipality.
(P.A. 14-85, S. 1.)
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Sec. 32-459. Return or use of unused grant awards. The Department of Economic and Community Development shall include in any agreement for the award of a grant by the department a date by which the grant recipient shall (1) return any unused grant award to the department, or (2) apply to the department for authorization to use such unused grant award for another purpose.
(P.A. 15-151, S. 1.)
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Secs. 32-460 and 32-461. Reserved for future use.
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Sec. 32-462. Limitation on the amount of financial assistance which may be awarded without specific approval by the General Assembly. Exception. (a) As used in this section:
(1) “Agency” means the Department of Economic and Community Development or Connecticut Innovations, Incorporated.
(2) “Financial assistance” means grants, loans, loan guarantees, contracts of insurance, investments, or combinations thereof, which are provided from the proceeds of bonds, notes or other obligations of the state or an agency which constitute a debt or liability of the state or which are secured by a special capital reserve fund payable from amounts appropriated or deemed appropriated from the General Fund.
(3) “Applicant” means any eligible applicant seeking financial assistance from an agency for a business project. The term “applicant” shall not include any political subdivision of the state.
(4) “Business project” means a business proposal undertaken by one or more applicants, but does not include housing unless undertaken in combination with another unrelated type of business.
(5) “Biotechnology business project” means any commercial project to be used or occupied by any person to conduct laboratory activity relating to, or the research, development or manufacture of, biologically active molecules or devices that apply to, affect or analyze biological processes.
(b) (1) No agency or agencies may award more than a total of ten million dollars of financial assistance during any two-year period to an applicant or for a business project unless such financial assistance is specifically authorized by an act of the General Assembly which has been enacted before, on or after July 1, 1994. (2) The provisions of subdivision (1) of this subsection shall not apply to any awards funded or to be funded by bonds authorized to be issued by the State Bond Commission before July 1, 1994.
(c) Notwithstanding the provisions of subsection (b) of this section, no agency or agencies may award more than twenty million dollars of financial assistance for a biotechnology business project during any two-year period unless such financial assistance is specifically authorized by an act of the General Assembly which has been enacted before, on or after July 1, 2001.
(May Sp. Sess. P.A. 94-2, S. 15, 203; Oct. Sp. Sess. P.A. 94-1, S. 19, 21; P.A. 95-250, S. 21, 42; 95-309, S. 11, 12; P.A. 96-211, S. 1, 5, 6; June Sp. Sess. P.A. 01-7, S. 22, 28; June 12 Sp. Sess. P.A. 12-1, S. 162.)
History: May Sp. Sess. P.A. 94-2, S. 15, effective July 1, 1994; Oct. Sp. Sess. P.A. 94-1 amended Subsec. (a)(2) by adding “contracts of insurance” to the definition of “financial assistance” and by specifying that the several forms of financial assistance “are provided from the proceeds of bonds, notes or other obligations of the state or an agency which constitute a debt or liability of the state or which are secured by a special capital reserve fund payable from amounts appropriated or deemed appropriated from the general fund”, amended Subsec. (a)(3) by excluding any political subdivision of the state from the term “applicant”, and amended Subsec. (b) by making existing language Subdiv. (1) and adding a new Subdiv. (2) which excludes from the provisions of Subdiv. (1) “awards funded or to be funded by bonds authorized to be issued” before July 1, 1994, effective October 14, 1994; P.A. 95-250 and P.A. 96-211 redefined “agency” by replacing “Commissioner of Economic Development” with “Commissioner of Economic and Community Development” and redefined “business project” to exclude housing in business project unless combined with an unrelated business in Subdiv. (4); P.A. 95-309 changed effective date of P.A. 95-250 but did not affect this section; June Sp. Sess. P.A. 01-7 amended Subsec. (a) to define “biotechnology business project” and added new Subsec. (c) re limitation on state assistance to biotechnology business projects, effective July 1, 2001; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (a)(1) to redefine “agency”, effective July 1, 2012.
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Sec. 32-462a. Authorization for financial assistance to Torrington Development Corporation. In accordance with the provisions of section 32-462, during the period commencing November 2, 2007, and ending June 30, 2009, the Department of Economic and Community Development may provide financial assistance from existing programs to Torrington Development Corporation for the purposes of restoration and improvements to property in the city of Torrington, in said time period, in an aggregate amount not to exceed thirty million dollars.
(May Sp. Sess. P.A. 04-1, S. 13; June Sp. Sess. P.A. 07-7, S. 57.)
History: May Sp. Sess. P.A. 04-1 effective July 1, 2004; June Sp. Sess. P.A. 07-7 extended the period of applicability of section from July 1, 2001, to June 30, 2007, to November 2, 2007, to June 30, 2009, and changed name of applicant from Downtown Torrington Redevelopment LLC, to Torrington Development Corporation, effective November 2, 2007.
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Sec. 32-462b. Authorization for financial assistance to the Steel Point project in Bridgeport. In accordance with the provisions of section 32-462, during the period commencing January 1, 2010, and ending June 30, 2020, any agency, as defined in section 32-462, may provide financial assistance from existing programs to the Steel Point project for the purposes of development and improvements to property in the city of Bridgeport, in said time period, in an aggregate amount not to exceed forty million dollars.
(Sept. Sp. Sess. P.A. 09-8, S. 16; P.A. 12-144, S. 1; P.A. 15-184, S. 8.)
History: Sept. Sp. Sess. P.A. 09-8 effective October 5, 2009; P.A. 12-144 changed end date for financial assistance from June 30, 2012, to June 30, 2015, effective June 15, 2012; P.A. 15-184 changed end date for financial assistance from June 30, 2015, to June 30, 2020, effective July 2, 2015.
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Secs. 32-463 to 32-474. Reserved for future use.
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Sec. 32-475. Definition. As used in sections 32-475 to 32-480, inclusive: “High performance work organization” means a person, firm or corporation which establishes a work environment which enhances the ability of the person, firm or corporation to:
(1) Demonstrate a commitment to continuous improvement of products and services and cost reductions for such products and services;
(2) Encourage decentralized decision-making, worker participation at all levels and greater reliance on front-line workers;
(3) Develop a worker-management relationship based on consideration of mutual interests and concerns;
(4) Adopt an organizational structure which includes flexible, cross-functional teams responsible for training, customer service, operational problem-solving and product design and development;
(5) Cultivate an environment which permits managers to assume motivational and leadership functions, including, but not limited to, long-range planning, coaching and facilitation, rather than serving only as enforcers;
(6) Demonstrate a commitment to ongoing training of all workers, including front-line staff, and training to enable the company to meet ISO 9000 standards;
(7) Implement a flexible benefits program and innovative compensation schemes, such as profit-sharing, gain-sharing, skill-based pay or pay-for-performance systems;
(8) Demonstrate a commitment to a safe and healthful workplace;
(9) Solicit suggestions from customers and suppliers in designing and developing products and services;
(10) Demonstrate a commitment to delivering a greater variety of high quality products at a lower cost through manufacturing innovations such as concurrent engineering, flexible manufacturing and just-in-time production;
(11) Provide wages and benefits that meet or exceed industry averages; and
(12) Participate in a Connecticut career certificate program established by a local or regional board of education, the Technical Education and Career System or regional education service center and approved by the Commissioner of Education and the Labor Commissioner.
(P.A. 94-116, S. 1, 28; P.A. 12-116, S. 87; P.A. 17-237, S. 110.)
History: P.A. 94-116 effective July 1, 1994; pursuant to P.A. 12-116, “regional vocational-technical school” was changed editorially by the Revisors to “technical high school” in Subdiv. (12), effective July 1, 2012; P.A. 17-237 amended Subdiv. (12) by replacing “technical high school” with “the Technical Education and Career System”, effective July 1, 2017.
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Sec. 32-476. Commissioner of Economic and Community Development required to give priority to applicants establishing high performance work environments. The Commissioner of Economic and Community Development shall give priority to applicants who have established a work environment consistent with the criteria set forth in section 32-475 in awarding financial assistance under the programs authorized pursuant to chapter 588l to the extent consistent with any state or regional economic development strategy.
(P.A. 94-116, S. 2, 28; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)
History: P.A. 94-116 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.
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Sec. 32-477. Connecticut Innovations, Incorporated required to give priority to certain applicants establishing high performance work environments. The board of directors of Connecticut Innovations, Incorporated shall give priority to applicants who have established a work environment consistent with the criteria set forth in section 32-475 in awarding financial assistance under the programs authorized pursuant to chapter 588n, sections 32-14 to 32-23a, inclusive, 32-23v, 32-23x, 32-23gg to 32-23ll, inclusive, 32-23z, 32-23pp to 32-23ss, inclusive, and section 32-341 and the programs utilizing proceeds of self-sustaining revenue bonds and umbrella revenue bonds pursuant to chapter 579, to the extent consistent with any state or regional economic development strategy.
(P.A. 94-116, S. 3, 28; June 12 Sp. Sess. P.A. 12-1, S. 152.)
History: P.A. 94-116 effective July 1, 1994; 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.
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Sec. 32-478. Connecticut Innovations, Incorporated required to give priority to certain applicants establishing high performance work environments. The board of directors of Connecticut Innovations, Incorporated shall give priority to applicants who have established a work environment consistent with the criteria set forth in section 32-475 in awarding financial assistance under the program authorized pursuant to sections 32-344, 32-345 and 32-346, to the extent consistent with any state or regional economic development strategy.
(P.A. 94-116, S. 4, 28.)
History: P.A. 94-116 effective July 1, 1994.
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Sec. 32-479. Development of goals, objectives and outcome measures. Annual reports. Not later than July 1, 1996, the Commissioner of Economic and Community Development, the Labor Commissioner and Connecticut Innovations, Incorporated shall jointly develop goals and objectives and quantifiable outcome measures related to the percentage of financial assistance which is being provided to high performance work organizations. The Labor Commissioner and Connecticut Innovations, Incorporated shall submit an annual report concerning such goals, objectives and measures to the joint standing committee of the General Assembly having cognizance of matters relating to labor and public employees and the joint standing committee having cognizance of matters relating to commerce.
(P.A. 94-116, S. 6, 28; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 05-191, S. 8; June 12 Sp. Sess. P.A. 12-1, S. 163.)
History: P.A. 94-116 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. 05-191 deleted Commissioner of Economic and Community Development from group of officials and agencies required to submit annual report; June 12 Sp. Sess. P.A. 12-1 deleted references to Connecticut Development Authority, effective July 1, 2012.
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Sec. 32-480. Encouragement of utilization of high performance work practices. The Department of Economic and Community Development, the Labor Department and Connecticut Innovations, Incorporated shall, when appropriate, encourage persons, firms and corporations which contact said departments or authorities for financial assistance to utilize high performance work practices in their business operations.
(P.A. 94-116, S. 7, 28; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; June 12 Sp. Sess. P.A. 12-1, S. 164.)
History: P.A. 94-116 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; June 12 Sp. Sess. P.A. 12-1 deleted reference to Connecticut Development Authority, effective July 1, 2012.
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Secs. 32-481 to 32-499. Reserved for future use.
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