Bill Text: CT HB05041 | 2014 | General Assembly | Comm Sub
Bill Title: An Act Concerning Investment In Connecticut's Advanced Manufacturing Businesses.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2014-04-22 - Tabled for the Calendar, House [HB05041 Detail]
Download: Connecticut-2014-HB05041-Comm_Sub.html
General Assembly |
||
February Session, 2014 |
*_____HB05041FIN___042214____* |
AN ACT CONCERNING INVESTMENT IN CONNECTICUT'S ADVANCED MANUFACTURING BUSINESSES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective from passage) As used in this section and sections 2 and 3 of this act:
(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 2 of this act;
(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.
Sec. 2. (NEW) (Effective from passage) (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; and (8) 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. All initial appointments to the advisory board pursuant to this subsection shall be made not later than July 1, 2014. 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.
Sec. 3. (NEW) (Effective from passage) (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 of the general statutes, in participation certificates in the Short Term Investment Fund created under sections 3-27a and 3-27f of the general statutes and in participation certificates or securities of the Tax-Exempt Proceeds Fund created under section 3-24a of the general statutes, (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 of the general statutes. 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 of the general statutes; (2) a targeted investment community, as defined in section 32-222 of the general statutes; (3) a public investment community, as defined in section 7-545 of the general statutes; (4) an enterprise zone designated pursuant to section 32-70 of the general statutes; 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 (j) 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 chapter 578 of the general statutes, 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 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 of the general statutes, 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 2 of this act 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 of the general statutes, 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.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
from passage |
New section |
Sec. 2 |
from passage |
New section |
Sec. 3 |
from passage |
New section |
CE |
Joint Favorable Subst. |
|
FIN |
Joint Favorable |