Bill Text: CT SB00327 | 2010 | General Assembly | Comm Sub

Connecticut Senate Bill 327 (Prior Session Legislation)

Bill Title: An Act Concerning Consolidation Of Economic Development Entities.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2010-04-20 - Favorable Report, Tabled for the Calendar, Senate [SB00327 Detail]

Download: Connecticut-2010-SB00327-Comm_Sub.html


General Assembly		*Raised Bill No. 327*
*February Session, 2010*		LCO No. 1594
		_____SB00327GAE___042010____
Referred to Committee on Commerce
Introduced by:
(CE)

AN ACT CONCERNING CONSOLIDATION OF ECONOMIC DEVELOPMENT ENTITIES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 32-1l of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

In addition to his or her 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 and the provision of housing in this state, including housing for very low, low and moderate income families, (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 CDA, CHFA and CII, (D) identifies strategies to increase the leverage of resources of the state used in furtherance of the purposes of CDA, CHFA and CII, (E) identifies, if feasible, divisions and recommends a timetable and procedures for transferring resources and operations between and among the department and CDA, CHFA and CII and (F) recommends specific economic and community development objectives and administrative structures for the department and CDA, CHFA and CII. In developing such plan, the department shall be the lead agency, in collaboration with CDA, CHFA and 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) To propose to the Governor on or before January 1, 1996, legislation to implement the economic and community development reorganization plan described in subdivision (1) of this section;]

[(3)] (1) 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 [CDA,] CHFA and [CII] the Connecticut Economic Innovations Authority: (A) Any revenues received by the department or the state in connection with any business development 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 business development 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] the commissioner deems necessary or appropriate with respect to the use by [CDA,] CHFA or [CII] the Connecticut Economic Innovations Authority 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;

[(4)] (2) To award to [CDA,] CHFA or [CII] the Connecticut Economic Innovations Authority financial, technical or other assistance. Financial assistance awarded by the department to [CDA,] CHFA or [CII] the Connecticut Economic Innovations Authority 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 [CDA,] CHFA and [CII] the Connecticut Economic Innovations Authority as the commissioner in [his] the commissioner's sole discretion deems appropriate for any of the purposes of [CDA,] CHFA and [CII] the Connecticut Economic Innovations Authority respectively; and

[(5)] (3) To enter into such agreements with [CDA,] CHFA and [CII] the Connecticut Economic Innovations Authority 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 [CDA,] CHFA and [CII] the Connecticut Economic Innovations Authority to third parties, provisions for payment by the department to [CDA,] CHFA or [CII] the Connecticut Economic Innovations Authority 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 [CDA,] CHFA or [CII] the Connecticut Economic Innovations Authority 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]

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

Sec. 2. (NEW) (Effective July 1, 2010) (a) As used in this section and sections 3 to 10, inclusive, of this act:

(1) "Authority" means the Connecticut Economic Innovations Authority;

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

(3) "Department" means the Department of Economic and Community Development.

(b) There is hereby created as a body politic and corporate, constituting a public instrumentality and political subdivision of the state created for the performance of an essential public and governmental function, the Connecticut Economic Innovations Authority which is empowered to carry out the purposes of the authority, as provided in section 3 of this act, which are determined to be public purposes for which public funds may be expended. The Connecticut Economic Innovations Authority shall not be construed to be a department, institution or agency of the state.

(c) The board of directors of the authority shall consist of the Commissioner of Economic and Community Development, the State Treasurer and the Secretary of the Office of Policy and Management, or their respective designees, five members appointed by the Governor and four members appointed as follows: One by the president pro tempore of the Senate, one by the minority leader of the Senate, one by the speaker of the House of Representatives and one by the minority leader of the House of Representatives. Each ex-officio member shall have full powers to vote, and member may designate a deputy or any member of the agency staff to represent the member at meetings of the authority with full powers to act and vote on the member's behalf. Each member appointed by the Governor shall serve at the pleasure of the Governor but no longer than the term of office of the Governor or until the member's successor is appointed and qualified, whichever is longer. Each member appointed by a member of the General Assembly shall serve in accordance with the provisions of section 4-1a of the general statutes. Members shall receive no compensation but shall be reimbursed for necessary expenses incurred in the performance of their duties. Any vacancy on the board shall be filled for the unexpired term by the appointing authority of such member. Any member of the board may be removed by the Governor for misfeasance, malfeasance or wilful neglect of duty.

(d) Each member of the authority, before entering upon his or her duties, shall take and subscribe the oath or affirmation required by article XI, section 1, of the State Constitution. A record of each such oath shall be filed in the office of the Secretary of the State. Each member of the board of directors of the authority shall execute a surety bond in the penal sum of fifty thousand dollars, or, in lieu thereof, the chairperson of the board shall execute a blanket position bond covering each member and the chief executive officer and the employees of the authority, each surety bond to be conditioned upon the faithful performance of the duties of the office or offices covered, to be executed by a surety company authorized to transact business in this state as surety and to be approved by the Attorney General and filed in the office of the Secretary of the State. The cost of each such bond shall be paid by the authority.

(e) Notwithstanding any provision of the law, 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 board of directors of the authority; provided such trustee, director, partner or officer of any person, firm or corporation or any individual having a financial interest in a person, firm or corporation shall file with the authority a record of his or her capacity with or interest in such person, firm or corporation and abstain and absent himself or herself from any deliberation, action and vote by the board in specific respect to such person, firm or corporation.

(f) The Commissioner of Economic and Community Development shall serve as the board chairperson. The board shall annually elect one of its members as vice chairperson. Meetings of the board shall be held at such times as shall be specified in the bylaws adopted by the board and at such other time or times as the chairperson or a majority of the board deems necessary.

(g) The board of directors of the authority shall adopt written procedures, in accordance with the provisions of section 1-121 of the general statutes, for: (1) Adopting an annual budget and plan of operations, including a requirement of board approval before the budget or plan may take effect; (2) hiring, promoting and compensating employees of the authority, including an affirmative action policy and a requirement of board approval before a position may be created; (3) purchasing, leasing or acquiring real and personal property and personal services, including a requirement of board approval for any nonbudgeted expenditure in excess of five thousand dollars; (4) contracting for financial, legal, bond underwriting and other professional services, including a requirement that the authority solicit proposals at least once every three years for each such service which it uses; (5) issuing and retiring bonds, bond anticipation notes and other obligations of the authority; (6) awarding loans, grants and other financial assistance, including eligibility criteria, the application process and the role played by the authority's staff and board of directors and including deadlines for the approval or disapproval of applications for such assistance by the authority; and (7) the use of surplus funds to the extent authorized under this section and sections 3 to 10, inclusive, of this act.

(h) Neither members of the board of directors of the authority nor any person executing the notes and bonds shall be liable personally on the notes or bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

(i) The powers of the authority shall be vested in and exercised by not less than seven of the members of the board of directors then in office. Such number of members shall constitute a quorum and the affirmative vote of a majority of the members present at a meeting of the board shall be necessary for any action taken by the authority. No vacancy in the membership of the board shall impair the right to exercise all the rights and perform all the duties of the authority. Any action taken by the board under the provisions of this section and sections 3 to 10, inclusive, of this act may be authorized by resolution at any regular or special meeting, and each such resolution shall take effect immediately and need not be published or posted. The authority shall be exempt from the provisions of section 4-9a of the general statutes.

(j) The board of directors of the authority may delegate to three or more of its members such board powers and duties as it may deem proper. At least one of such members shall not be a state employee.

(k) The authority shall continue as long as it shall have bonds or other obligations outstanding and until its existence is terminated by law. Upon the termination of the existence of the authority, all its rights and properties shall pass to and be vested in the state.

(l) The authority shall be subject to examination by the State Treasurer. The accounts of the authority shall be subject to annual audits by the State Auditors of Public Accounts.

Sec. 3. (NEW) (Effective July 1, 2010) (a) The purposes of the Connecticut Economic Innovations Authority shall be:

(1) To support the economic, workforce and community development policies, programs, goals and strategies of the state;

(2) To discharge the responsibilities of the authority under sections 2 to 10, inclusive, of this act, chapters 578, 579, 581, 584, 588l, 588n, 588r and 588u of the general statutes, and any other provisions of the general statutes or any public or special act setting forth or governing the powers and duties of the authority;

(3) To stimulate and encourage the research and development of new technologies and products;

(4) To encourage the creation and transfer of new technologies;

(5) To assist existing businesses in adopting current and innovative technological processes;

(6) To stimulate and provide services to industry that will advance the adoption and utilization of technology;

(7) To achieve improvements in the quality of products and services;

(8) To stimulate and encourage the development and operation of new and existing science parks and incubator facilities; and

(9) To promote science, engineering, mathematics and other disciplines that are essential to the development and application of technology within Connecticut by the infusion of financial aid for research, invention and innovation in situations in which such financial aid would not otherwise be reasonably available from commercial or other sources.

(b) For the purposes of subsection (a) of this section, the authority shall have the following powers, in addition to any others provided by law:

(1) To have perpetual succession as a body corporate and to adopt bylaws, policies and procedures for the regulation of its affairs and conduct of its businesses as provided by law;

(2) To solicit, receive and accept aid, grants or contributions from any source of money, property or labor or other things of value, to be held, used and applied to carry out the purposes of the authority, subject to the conditions upon which such grants and contributions may be made, including, but not limited to, gifts or grants from any department or agency of the United States or the state;

(3) To (A) employ such assistants, agents and other employees as may be necessary or desirable, which employees shall be exempt from the classified service and shall not be employees, as defined in subsection (b) of section 5-270 of the general statutes; (B) establish all necessary or appropriate personnel practices and policies, including those relating to hiring, promotion, compensation, retirement and collective bargaining, which need not be in accordance with chapter 68 of the general statutes, and the authority shall not be an employer as defined in subsection (a) of said section 5-270; and (C) engage consultants, attorneys and appraisers as may be necessary or desirable to carry out its purposes in accordance with this chapter;

(4) To make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this act;

(5) To sue and be sued, plead and be impleaded, adopt a seal and alter the same at pleasure;

(6) To maintain an office at such place or places within the state as it may designate;

(7) To invest in, acquire, lease, purchase, own, manage, hold and dispose of real property and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to the carrying out of these purposes; provided, however, all such acquisitions of real property for the authority's own use with amounts appropriated by the state to the authority or with the proceeds of bonds supported by the full faith and credit of the state shall be subject to the approval of the Secretary of the Office of Policy and Management and the provisions of section 4b-23 of the general statutes;

(8) To acquire, lease, purchase, own, manage, hold and dispose of personal property, and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to the carrying out of these purposes;

(9) To account for and audit funds of the authority and funds of any recipients of financial aid from the authority;

(10) With the approval of the State Treasurer, to invest any funds not needed for immediate use or disbursement, including any funds held in reserve, in obligations issued or guaranteed by the United States of America or the state of Connecticut and in other obligations which are legal investments for municipalities or retirement funds in this state;

(11) To procure insurance against any loss in connection with its property and other assets in such amounts and from such insurers as it deems desirable;

(12) To the extent permitted under its contract with other persons, to consent to any termination, modification, forgiveness or other change of any term of any contractual right, payment, royalty, contract or agreement of any kind to which the authority is a party;

(13) In connection with any application for assistance under or commitments therefor, to make and collect such fees as the authority shall determine to be reasonable;

(14) To hold patents, copyrights, trademarks, marketing rights, licenses, or any other evidences of protection or exclusivity as to any products as defined herein, issued under the laws of the United States or any state or any nation;

(15) To borrow money or accept gifts, grants or loans of funds, property or service from any source, public or private, and comply, subject to the provisions of law, with the terms and conditions thereof;

(16) To insure any or all payments to be made by the borrower under the terms of any agreement for the extension of credit or making of a loan by the authority in connection with any economic development project to be financed, wholly or in part, through the issuance of bonds or mortgage payments of any mortgage which is given by a mortgagor to the mortgagee who has provided the mortgage for an economic development project upon such terms and conditions as the authority may prescribe and as provided herein, and the faith and credit of the state are pledged thereto;

(17) To request for its guidance, in connection with any project, a finding of the municipal planning commission, or, if there is no planning commission, a finding of the municipal officers of the municipality in which the economic development project is proposed to be located, or of the regional planning agency of which such municipality is a member, as to the expediency and advisability of the economic development project;

(18) To advise the Governor, the General Assembly, the Commissioner of Economic and Community Development and the Commissioner of Higher Education on matters relating to economic development finance, science, engineering and technology which may have an impact on state policies, programs, employers and residents, and on job creation and retention;

(19) (A) To accept from the Department of Economic and Community Development: (i) Financial assistance, (ii) revenues or the right to receive or disburse revenues with respect to any business development program under the supervision of the department, and (iii) loan assets or equity interests in connection with any business development program under the supervision of the department; (B) to make advances to and reimburse the department for any expenses incurred or to be incurred by it in the delivery of such assistance, revenues, rights, assets or interests; (C) to enter into agreements for the delivery of services by the authority, in consultation with the department, or the Connecticut Housing Finance Authority, to third parties which agreements may include provisions for payment by the department to the authority for the delivery of such services; and (D) to enter into agreements with the department or the Connecticut Housing Finance Authority for the sharing of assistants, agents and other consultants, professionals and employees, and facilities and other real and personal property used in the conduct of the affairs of the Connecticut Economic Innovations Authority;

(20) To transfer from the Department of Economic and Community Development: (A) Financial assistance, (B) revenues or the right to receive or disburse revenues with respect to any business development financial assistance program under the supervision of the department, and (C) loan assets or equity interests in connection with any business development program under the supervision of the department, provided the transfer of such financial assistance, revenues, rights, assets or interests is determined by the department to be practicable, within the constraints and not inconsistent with the fiduciary obligations of the department imposed upon or established upon the authority by any provision of the general statutes, the department's bond resolutions or any other agreement or contract of the department and to have no adverse effect on the tax-exempt status of any bonds of the state;

(21) To do all acts and things necessary and convenient to carry out the purposes of sections 2 to 10, inclusive, of this act.

Sec. 4. (NEW) (Effective July 1, 2010) The exercise of the powers vested in the Connecticut Economic Innovations Authority, and any subsidiary of such authority, shall constitute the performance of an essential governmental function and the authority shall not be required to pay any taxes or assessments upon or in respect of a project, or any property or moneys of the authority, levied by the state, any municipality or political subdivision or special district having taxing powers of the state.

Sec. 5. (NEW) (Effective July 1, 2010) (a) (1) The Connecticut Economic Innovations Authority, established pursuant to section 2 of this act, may form one or more subsidiaries to carry out the public purposes of the authority and may transfer to any such subsidiary any moneys and real or personal property of any kind or nature. Any such subsidiary may be organized as a stock or nonstock corporation or a limited liability company. Each such subsidiary shall have and may exercise such powers of the authority as are set forth in the resolution of the authority prescribing the purposes for which such subsidiary is formed and such other powers provided to it by law.

(2) Each such subsidiary shall act through its board of directors, at least one-half of which shall be members of the board of directors of the authority, or their designees, or officers or employees of the authority. A resolution of the authority shall prescribe the purposes for which each such subsidiary is formed.

(3) The provisions of section 1-125 of the general statutes, as amended by this act, and this subsection shall apply to any officer, director, designee or employee appointed as a member, director or officer of any such subsidiary. Any such persons so appointed shall not be personally liable for the debts, obligations or liabilities of any such subsidiary as provided in said section 1-125. The subsidiary shall, and the authority may, provide for the indemnification to protect, save harmless and indemnify such officer, director, designee or employee as provided by said section 1-125.

(4) Each such subsidiary shall be deemed a quasi-public agency for purposes of chapter 12 of the general statutes and shall have all the privileges, immunities, tax exemptions and other exemptions of the authority, including the privileges, immunities, tax exemptions and other exemptions provided under the general statutes for special capital reserve funds. Each such subsidiary shall be subject to suit provided its liability shall be limited solely to the assets, revenues and resources of the subsidiary and without recourse to the general funds, revenues, resources or any other assets of the authority. Each such subsidiary is authorized to assume or take title to property subject to any existing lien, encumbrance or mortgage and to mortgage, convey or dispose of its assets and pledge its revenues in order to secure any borrowing, provided each such borrowing or mortgage shall be a special obligation of the subsidiary, which obligation may be in the form of bonds, bond anticipation notes and other obligations to the extent permitted under sections 2 to 9, inclusive, of this act to fund and refund the same and provide for the rights of the holders thereof, and to secure the same by pledge or revenues, notes and other assets and which shall be payable solely from the assets, revenues and other resources of the subsidiary. The authority shall have the power to assign to a subsidiary any rights, moneys or other assets it has under any governmental program including the nursing home loan program. No borrowing shall be undertaken by a subsidiary of the authority without the approval of the authority.

(b) (1) The authority may establish one or more subsidiaries to stimulate, encourage and carry out the remediation, development and financing of contaminated property within this state, in coordination with the Department of Environmental Protection, and to provide financial, developmental and environmental expertise to others including, but not limited to, municipalities, interested in or undertaking such remediation, development or financing which are determined to be public purposes for which public funds may be expended. Each subsidiary shall be deemed a quasi-public agency for purposes of chapter 12 of the general statutes. The authority may transfer to any such subsidiary any moneys and real or personal property. Each such subsidiary shall have all the privileges, immunities, tax exemptions and other exemptions of the authority.

(2) Each such subsidiary may sue and shall be subject to suit provided the liability of each such subsidiary shall be limited solely to the assets, revenues and resources of such subsidiary and without recourse to the general funds, revenues, resources or any other assets of the authority or any other subsidiary. No such subsidiary may provide for any bonded indebtedness of the state for the cost of any liability or contingent liability for the remediation of contaminated real property unless such indebtedness is specifically authorized by an act of the General Assembly. Each such subsidiary shall have the power to do all acts and things necessary or convenient to carry out the purposes of this subsection, section 12-81r of the general statutes, subsection (h) of section 22a-133m of the general statutes, subsection (a) of section 22a-133x of the general statutes, sections 22a-133aa, 22a-133bb and 22a-133dd of the general statutes, subsection (l) of section 22a-134a of the general statutes, and sections 22a-452f, 32-7e and 32-23pp to 32-23rr, inclusive, of the general statutes, including, but not limited to, (A) solicit, receive and accept aid, grants or contributions from any source of money, property or labor or other things of value, to be held, used and applied to carry out the purposes of this subsection, section 12-81r of the general statutes, subsection (h) of section 22a-133m of the general statutes, subsection (a) of section 22a-133x of the general statutes, sections 22a-133aa, 22a-133bb and 22a-133dd of the general statutes, subsection (l) of section 22a-134a of the general statutes, and sections 22a-452f, 32-7e and 32-23pp to 32-23rr, inclusive, of the general statutes, subject to the conditions upon which such grants and contributions may be made, including, but not limited to, gifts, grants or loans, from any department, agency or quasi-public agency of the United States or the state; (B) enter into agreements with persons upon such terms and conditions as are consistent with the purposes of such subsidiary to acquire or facilitate the remediation, development or financing of contaminated real or personal property; (C) to acquire, take title, lease, purchase, own, manage, hold and dispose of real and personal property and lease, convey or deal in or enter into agreements with respect to such property; (D) examine, inspect, rehabilitate, remediate or improve real or personal property or engage others to do so on such subsidiary's behalf, or enter into contracts therefor; (E) mortgage, convey or dispose of its assets and pledge its revenues in order to secure any borrowing, for the purpose of financing, refinancing, rehabilitating, remediating, improving or developing its assets, provided each such borrowing or mortgage shall be a special obligation of such subsidiary, which obligation may be in the form of notes, bonds, bond anticipation notes and other obligations issued by or to such subsidiary to the extent permitted under sections 2 to 9, inclusive, of this act to fund and refund the same and provide for the rights of the holders thereof, and to secure the same by pledge of revenues, notes or other assets and which shall be payable solely from the assets, revenues and other resources of such subsidiary; (F) to create real estate investment trusts or similar entities or to become a member of a limited liability company or to become a partner in limited or general partnerships or establish other contractual arrangements with private and public sector entities as such subsidiary deems necessary to remediate, develop or finance environmentally contaminated property in the state; and (G) any other powers necessary or appropriate to carry out the purposes of this subsection, subsection (h) of section 22a-133m of the general statutes, subsection (a) of section 22a-133x of the general statutes, sections 22a-133aa, 22a-133bb and 22a-133dd of the general statutes, subsection (l) of section 22a-134a of the general statutes, and sections 22a-452f, 32-7e and 32-23pp to 32-23rr, inclusive, of the general statutes. The board of directors, executive director, officers and staff of the authority may serve as members of any advisory or other board which may be established to carry out the purposes of this subsection, subsection (h) of section 22a-133m of the general statutes, subsection (a) of section 22a-133x of the general statutes, sections 22a-133aa, 22a-133bb and 22a-133dd of the general statutes, subsection (l) of section 22a-134a of the general statutes, and sections 22a-452f, 32-7e and 32-23pp to 32-23rr, inclusive, of the general statutes.

(c) Each such subsidiary shall act through its board of directors, at least one-half of which shall be members of the board of directors of the authority, or their designees, or officers or employees of the authority. A resolution of the authority shall prescribe the purposes for which each such subsidiary is formed.

(d) The provisions of section 1-125 of the general statutes, as amended by this act, and this subsection shall apply to any officer, director, designee or employee appointed as a member, director or officer of any such subsidiary. Any such persons so appointed shall not be personally liable for the debts, obligations or liabilities of any such subsidiary as provided in said section 1-125. The subsidiary shall, and the authority may, provide for the indemnification to protect, save harmless and indemnify such officer, director, designee or employee as provided by said section 1-125.

(e) The authority, or such subsidiary, may take such actions as are necessary to comply with the provisions of the Internal Revenue Code of 1986 or any subsequent corresponding internal revenue code of the United States, as from time to time amended, to qualify and maintain any such subsidiary as a corporation exempt from taxation under said internal revenue code.

(f) The authority may make loans to each such subsidiary, following standard authority procedures, from its assets and the proceeds of its bonds, notes and other obligations, provided the source and security for the repayment of such loans is derived from the assets, revenues and resources of the subsidiary.

Sec. 6. (NEW) (Effective July 1, 2010) (a) The board of directors of the Connecticut Economic Innovations Authority, established pursuant to section 2 of this act, shall appoint a chief executive officer who shall not be a member of the board and such other officers as it determines. Such officers shall be exempt from classified service, serve at the pleasure of the board and receive such compensation as shall be fixed by the board.

(b) The chief executive officer shall direct and supervise administrative affairs and technical activities in accordance with the directives of the board. He or she shall perform such other duties as may be directed by the board in carrying out the purposes of sections 2 to 10, inclusive, of this act and chapters 578, 579, 581, 584, 588l, 588n, 588r and 588u of the general statutes. The chief executive officer shall attend all meetings of the board, keep a record of the proceedings of the board and shall maintain and be custodian of all books, documents and papers filed with the authority and of the minute book or journal of the authority and of its official seal. He or she may cause copies to be made of all minutes and other records and documents of the authority and may give certificates under the official seal of the authority to the effect that such copies are true copies, and all persons dealing with the authority may rely upon such certificates.

Sec. 7. (NEW) (Effective July 1, 2010) (a) Not later than November 1, 2010, and annually thereafter, the Connecticut Economic Innovations Authority, established pursuant to section 2 of this act, shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the Governor, the Auditors of Public Accounts and the joint standing committees of the General Assembly having cognizance of matters relating to commerce, appropriations and the budgets of state agencies and finance, revenue and capital bonding, which shall include the following information with respect to new and outstanding financial assistance provided by the authority during the twelve-month period ending on June thirtieth next preceding the date of the report for each financial assistance program administered by the authority: (1) A list of the names, addresses and locations of all recipients of such assistance, (2) for each recipient: (A) The business activities, (B) the North American Industry, Classification System codes, (C) the gross revenues during the recipient's most recent fiscal year, (D) the number of employees at the time of application, (E) whether the recipient is a minority or woman-owned business, (F) a summary of the terms and conditions for the assistance, including the type and amount of state financial assistance, job creation or retention requirements, and anticipated wage rates, and (G) the amount of investments from private and other nonstate sources that have been leveraged by the assistance, (3) the economic benefit criteria used in determining which applications have been approved or disapproved, and (4) for each recipient of assistance, a comparison between the number of jobs to be created, the number of jobs to be retained and the average wage rates for each such category of jobs, as projected in the recipient's application, versus the actual number of jobs created, the actual number of jobs retained and the average wage rates for each such category. The report shall also indicate the actual number of full-time jobs and the actual number of part-time jobs in each such category and the benefit levels for each such subcategory. In addition, the report shall state (i) for each final application approved during the twelve-month period covered by the report, (I) the date that the final application was received by the authority, and (II) the date of such approval; (ii) for each final application withdrawn during the twelve-month period covered by the report, (I) the municipality in which the applicant is located, (II) the North American Industry Classification System code for the applicant, (III) the date that the final application was received by the authority, and (IV) the date of such withdrawal; (iii) for each final application disapproved during the twelve-month period covered by the report, (I) the municipality in which the applicant is located, (II) the North American Industry Classification System code for the applicant, (III) the date that the final application was received by the authority, and (IV) the date of such disapproval; and (v) for each final application on which no action has been taken by the applicant or the agency in the twelve-month period covered by the report and for which no report has been submitted under this subsection, (I) the municipality in which the applicant is located, (II) the North American Industry Classification System code for the applicant, and (III) the date that the final application was received by the authority. The provisions of this subsection shall not apply to activities of the authority under the provisions of chapter 581 of the general statutes which shall continue to be reported on as provided in section 32-47a of the general statutes, as amended by this act.

(b) The November first report shall also include a summary of the activities of the authority, including all activities to assist small businesses and minority business enterprises, as defined in section 4a-60g of the general statutes, a complete operating and financial statement and recommendations for legislation to promote the purposes of the authority.

Sec. 8. (NEW) (Effective October 1, 2010) (a) (1) In accordance with the provisions of section 4-38d of the general statutes, all powers and duties of the Connecticut Development Authority under the provisions of chapter 579 of the general statutes, shall be transferred to the Connecticut Economic Innovations Authority established pursuant to section 2 of this act. On and after the effective date of this section, the Connecticut Brownfields Redevelopment Authority, a subsidiary of the Connecticut Development Authority created pursuant to subsection (l) of section 32-11a of the general statutes, shall be a subsidiary of the Connecticut Economic Innovations Authority.

(2) All notes, bonds or other obligations issued by the Connecticut Development Authority for the financing of any project or projects shall be in accordance with their terms of full force and effect and valid and binding upon the Connecticut Economic Innovations Authority as the successor to the Connecticut Development Authority and with respect to any resolution, contract, deed, trust agreement, mortgage, conditional sale or loan agreement, commitment, obligation or liability or other such document, public record, right, remedy, special act or public act, obligation, liability or responsibility pertaining thereto, the Connecticut Economic Innovations Authority shall be, and shall be deemed to be, the successor to the Connecticut Development Authority. All properties, rights in land, buildings and equipment and any funds, moneys, revenues and receipts or assets of such authority pledged or otherwise securing any such notes, bonds or other obligations shall belong to the Connecticut Economic Innovations Authority as successor to the Connecticut Development Authority, subject to such pledges and other security arrangements and to agreements with the holders of the outstanding notes, bonds or other obligations. Any resolution with respect to the issuance of bonds of Connecticut Development Authority for the purposes of sections 2 to 9, inclusive, of this act and any other action taken by the Connecticut Economic Innovations Authority with respect to assisting in the financing of any project shall be, or shall be deemed to be, a resolution of the Connecticut Economic Innovations Authority or an action taken by the Connecticut Economic Innovations Authority subject only to any agreements with the holders of outstanding notes, bonds or other obligations of the authority.

(3) Whenever the term "Connecticut Development Authority" is used or referred to in the general statutes, the term "Connecticut Economic Innovations Authority" shall be substituted in lieu thereof.

(4) The procedures of the Connecticut Development Authority, adopted pursuant to section 1-121 of the general statutes, shall remain in full force and effect with respect to any other matter before the Connecticut Economic Innovations Authority.

(b) (1) In accordance with the provisions of section 4-38d of the general statutes, all powers, duties and personnel of Connecticut Innovations, Incorporated, under the provisions of chapter 581 of the general statutes shall be transferred to the Connecticut Economic Innovations Authority established pursuant to section 2 of this act. All cash, notes, receivables, liabilities, appropriations, authorizations, allocations, and all other assets and properties of Connecticut Innovations, Incorporated, shall be transferred to the Connecticut Economic Innovations Authority. Such transfer shall not affect the validity, enforceability or binding nature of any contract or agreement for financial aid made by Connecticut Innovations, Incorporated, under the authorization of this act before the effective date of this act. On and after the effective date of this section, any and all subsidiaries of the Connecticut Innovations, Incorporated, shall be subsidiaries of the Connecticut Economic Innovations Authority.

(2) All notes, bonds or other obligations issued by Connecticut Economic Innovations, Incorporated for the financing of any project or projects shall be in accordance with their terms of full force and effect and valid and binding upon the Connecticut Economic Innovations Authority as the successor to Connecticut Innovations, Incorporated and with respect to any resolution, contract, deed, trust agreement, mortgage, conditional sale or loan agreement, commitment, obligation or liability or other such document, public record, right, remedy, special act or public act, obligation, liability or responsibility pertaining thereto, the Connecticut Economic Innovations Authority shall be, and shall be deemed to be, the successor to Connecticut Innovations, Incorporated. All properties, rights in land, buildings and equipment and any funds, moneys, revenues and receipts or assets of such commission pledged or otherwise securing any such notes, bonds or other obligations shall belong to the Connecticut Economic Innovations Authority as successor to Connecticut Innovations, Incorporated, subject to such pledges and other security arrangements and to agreements with the holders of the outstanding notes, bonds or other obligations. Any resolution with respect to the issuance of bonds of the Connecticut Economic Innovations Authority for the purposes of sections 2 to 9, inclusive, of this act and any other action taken by the Connecticut Economic Innovations Authority with respect to assisting in the financing of any project shall be, or shall be deemed to be, a resolution of the Connecticut Economic Innovations Authority or an action taken by the Connecticut Economic Innovations Authority subject only to any agreements with the holders of outstanding notes, bonds or other obligations of the authority.

(3) Whenever the term "Connecticut Innovations, Incorporated" is used or referred to in the general statutes, the term "Connecticut Economic Innovations Authority" shall be substituted in lieu thereof.

(4) The procedures of Connecticut Innovations, Incorporated, adopted pursuant to section 1-121 of the general statutes, shall remain in full force and effect with respect to any matter arising under the provisions of chapter 581 of the general statutes.

(c) Except as expressly provided in this act, nothing in this act shall be deemed to limit the powers exercised by the Connecticut Development Authority or Connecticut Innovations, Incorporated, before the effective date of this act.

Sec. 9. (NEW) (Effective July 1, 2010) (a) During the period from July 1, 2010, to September 30, 2010, the Connecticut Development Authority and Connecticut Innovations, Incorporated, may enter into any agreements with the Connecticut Economic Innovations Authority that are necessary to facilitate the assumption by the Connecticut Economic Innovations Authority of the responsibilities pursuant to sections 2 to 10, inclusive, of this act.

(b) The Connecticut Development Authority and Connecticut Innovations, Incorporated, shall provide professional and clerical support, facilities, equipment and supplies to the Connecticut Economic Innovations Authority during the period from July 1, 2010, to September 30, 2010, inclusive.

Sec. 10. Subsection (l) of section 1-79 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(l) "Quasi-public agency" means the [Connecticut Development Authority, Connecticut Innovations, Incorporated] Connecticut Economic Innovations Authority, or any subsidiary thereof, Connecticut Health and Education Facilities Authority, Connecticut Higher Education Supplemental Loan Authority, Connecticut Housing Finance Authority, Connecticut Housing Authority, Connecticut Resources Recovery Authority, Lower Fairfield County Convention Center Authority, Capital City Economic Development Authority and Connecticut Lottery Corporation.

Sec. 11. Section 1-120 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in sections 1-120 to 1-123, inclusive, as amended by this act:

(1) "Quasi-public agency" means the [Connecticut Development Authority, Connecticut Innovations, Incorporated] Connecticut Economic Innovations Authority, Connecticut Health and Educational Facilities Authority, Connecticut Higher Education Supplemental Loan Authority, Connecticut Housing Finance Authority, Connecticut Housing Authority, Connecticut Resources Recovery Authority, Capital City Economic Development Authority and Connecticut Lottery Corporation.

(2) "Procedure" means each statement, by a quasi-public agency, of general applicability, without regard to its designation, that implements, interprets or prescribes law or policy, or describes the organization or procedure of any such agency. The term includes the amendment or repeal of a prior regulation, but does not include, unless otherwise provided by any provision of the general statutes, (A) statements concerning only the internal management of any agency and not affecting procedures available to the public, and (B) intra-agency memoranda.

(3) "Proposed procedure" means a proposal by a quasi-public agency under the provisions of section 1-121 for a new procedure or for a change in, addition to or repeal of an existing procedure.

Sec. 12. Section 1-124 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) The [Connecticut Development Authority] Connecticut Economic Innovations Authority, the Connecticut Health and Educational Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the Connecticut Resources Recovery Authority and the Capital City Economic Development Authority shall not borrow any money or issue any bonds or notes which are guaranteed by the state of Connecticut or for which there is a capital reserve fund of any kind which is in any way contributed to or guaranteed by the state of Connecticut until and unless such borrowing or issuance is approved by the State Treasurer or the Deputy State Treasurer appointed pursuant to section 3-12. The approval of the State Treasurer or said deputy shall be based on documentation provided by the authority that it has sufficient revenues to (1) pay the principal of and interest on the bonds and notes issued, (2) establish, increase and maintain any reserves deemed by the authority to be advisable to secure the payment of the principal of and interest on such bonds and notes, (3) pay the cost of maintaining, servicing and properly insuring the purpose for which the proceeds of the bonds and notes have been issued, if applicable, and (4) pay such other costs as may be required.

(b) To the extent the [Connecticut Development Authority] Connecticut Economic Innovations Authority, Connecticut Innovations, Incorporated, Connecticut Higher Education Supplemental Loan Authority, Connecticut Housing Finance Authority, Connecticut Housing Authority, Connecticut Resources Recovery Authority, Connecticut Health and Educational Facilities Authority or the Capital City Economic Development Authority is permitted by statute and determines to exercise any power to moderate interest rate fluctuations or enter into any investment or program of investment or contract respecting interest rates, currency, cash flow or other similar agreement, including, but not limited to, interest rate or currency swap agreements, the effect of which is to subject a capital reserve fund which is in any way contributed to or guaranteed by the state of Connecticut, to potential liability, such determination shall not be effective until and unless the State Treasurer or his or her deputy appointed pursuant to section 3-12 has approved such agreement or agreements. The approval of the State Treasurer or his or her deputy shall be based on documentation provided by the authority that it has sufficient revenues to meet the financial obligations associated with the agreement or agreements.

Sec. 13. Section 1-125 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The directors, officers and employees of the [Connecticut Development Authority, Connecticut Innovations, Incorporated] Connecticut Economic Innovations Authority, Connecticut Higher Education Supplemental Loan Authority, Connecticut Housing Finance Authority, Connecticut Housing Authority, Connecticut Resources Recovery Authority, including ad hoc members of the Connecticut Resources Recovery Authority, Connecticut Health and Educational Facilities Authority, Capital City Economic Development Authority and Connecticut Lottery Corporation and any person executing the bonds or notes of the agency shall not be liable personally on such bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof, nor shall any director or employee of the agency, including ad hoc members of the Connecticut Resources Recovery Authority, be personally liable for damage or injury, not wanton, reckless, wilful or malicious, caused in the performance of his or her duties and within the scope of his or her employment or appointment as such director, officer or employee, including ad hoc members of the Connecticut Resources Recovery Authority. The agency shall protect, save harmless and indemnify its directors, officers or employees, including ad hoc members of the Connecticut Resources Recovery Authority, from financial loss and expense, including legal fees and costs, if any, arising out of any claim, demand, suit or judgment by reason of alleged negligence or alleged deprivation of any person's civil rights or any other act or omission resulting in damage or injury, if the director, officer or employee, including ad hoc members of the Connecticut Resources Recovery Authority, is found to have been acting in the discharge of his or her duties or within the scope of his or her employment and such act or omission is found not to have been wanton, reckless, wilful or malicious.

Sec. 14. Section 3-24d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The Treasurer may also sell participation certificates or securities of the Tax-Exempt Proceeds Fund to the Connecticut Housing Finance Authority, the Connecticut Resources Recovery Authority, the [Connecticut Development Authority] Connecticut Economic Innovations Authority, the Connecticut Health and Educational Facilities Authority, the Connecticut Student Loan Foundation, any municipalities within the state and any other authorities, agencies, instrumentalities and political subdivisions of the state or of any municipality within the state. The participation certificates or securities shall bear and pay such interest and be issued subject to such terms and conditions as shall be determined and established by the Treasurer.

Sec. 15. Section 3-24f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Participation certificates or securities of the Tax-Exempt Proceeds Fund issued by the Treasurer under the provisions of sections 3-24a to 3-24h, inclusive, are hereby made legal investments for the Connecticut Housing Finance Authority, the Connecticut Resources Recovery Authority, the [Connecticut Development Authority] Connecticut Economic Innovations Authority, the Connecticut Health and Educational Facilities Authority, the Connecticut Student Loan Foundation, all municipalities within the state, and all other authorities, agencies, instrumentalities and political subdivisions of the state or of any municipality within the state.

Sec. 16. Section 4-124ff of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) The Office of Workforce Competitiveness shall, within available appropriations and in consultation with the council established under subsection (b) of this section, establish a competitive "Innovation Challenge Grant" program to promote and encourage partnerships and collaborations involving technology-based business and industry with institutions of higher education and regional vocational-technical schools for the development of educational programs in emerging and interdisciplinary technology fields and to address related issues.

(b) There is established a Council of Advisors on Strategies for the Knowledge Economy to promote the formation of university-industry partnerships, identify benchmarks for technology-based workforce innovation and competitiveness and advise the award process (1) for innovation challenge grants to public postsecondary schools and their business partners, and (2) grants under section 4-124hh. The council shall be chaired by the director of the Office of Workforce Competitiveness and shall include the Secretary of the Office of Policy and Management, the Commissioners of Economic and Community Development and Higher Education, the Labor Commissioner, the executive [directors] director of [Connecticut Innovations, Incorporated and] the [Connecticut Development Authority] Connecticut Economic Innovations Authority and four representatives from the technology industry, one of whom shall be appointed by the president pro tempore of the Senate, one of whom shall be appointed by the speaker of the House of Representatives, one of whom shall be appointed by the minority leader of the Senate and one of whom shall be appointed by the minority leader of the House of Representatives.

Sec. 17. Section 8-134 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

For the purpose of carrying out or administering a redevelopment plan or other functions authorized under this chapter, a municipality, acting by and through its redevelopment agency, is hereby authorized, subject only to the limitations and procedures set forth in this section, to issue from time to time bonds of the municipality which are payable solely from and secured by: (a) A pledge of and lien upon any or all of the income, proceeds, revenues and property of redevelopment projects, including the proceeds of grants, loans, advances or contributions from the federal government, the state or other source, including financial assistance furnished by the municipality or any other public body pursuant to section 8-135; (b) taxes or payments in lieu of taxes, or both, in whole or in part, allocated to and paid into a special fund of the municipality pursuant to the provisions of section 8-134a, as amended by this act; or (c) any combination of the methods in subsections (a) and (b) of this section. For the purposes of a specified project only, the [Connecticut Development Authority] Connecticut Economic Innovations Authority may, upon a resolution with respect to such project adopted by the legislative body of the municipality, issue and administer bonds which are payable solely or in part from and secured by the pledge and security provided for in this section subject to the general terms and provisions of law applicable to the issuance of bonds by the [Connecticut Development Authority] Connecticut Economic Innovations Authority, except that the provisions of subsection (b) of section 32-23j shall not apply. Any bonds payable and secured as provided in this section shall be authorized by a resolution adopted by the legislative body of the municipality, notwithstanding the provisions of any other statute, local law or charter governing the authorization and issuance of bonds generally by the municipality. No such resolution shall be adopted until after a public hearing has been held upon such authorization. Notice of such hearing shall be published not less than five days prior to such hearing in a newspaper having a general circulation in the municipality. Such bonds shall be issued and sold in such manner; bear interest at such rate or rates, including variable rates to be determined in such manner as set forth in the proceedings authorizing the issuance of the bonds; provide for the payment of interest on such dates, whether before or at maturity; be issued at, above or below par; mature at such time or times not exceeding forty years from their date in the case of bonds issued to finance housing and facilities related thereto or thirty years from their date in all other cases; have such rank or priority; be payable in such medium of payment; be issued in such form, including, without limitation, registered or book-entry form, carry such registration and transfer privileges and be made subject to purchase or redemption before maturity at such price or prices and under such terms and conditions, including the condition that such bonds be subject to purchase or redemption on the demand of the owner thereof; and contain such other terms and particulars as the legislative body of the municipality or the officers delegated such authority by the legislative body of the municipality body shall determine. The proceedings under which bonds are authorized to be issued may, subject to the provisions of the general statutes, contain any or all of the following: (1) Provisions respecting custody of the proceeds from the sale of the bonds and any bond anticipation notes, including any requirements that such proceeds be held separate from or not be commingled with other funds of the municipality; (2) provisions for the investment and reinvestment of bond proceeds until such proceeds are used to pay project costs and for the disposition of any excess bond proceeds or investment earnings thereon; (3) provisions for the execution of reimbursement agreements, or similar agreements, in connection with credit facilities, including, but not limited to, letters of credit or policies of bond insurance, remarketing agreements and agreements for the purpose of moderating interest rate fluctuations; (4) provisions for the collection, custody, investment, reinvestment and use of the pledged revenues or other receipts, funds or moneys pledged for payment of bonds as provided in this section; (5) provisions regarding the establishment and maintenance of reserves, sinking funds and any other funds and accounts as shall be approved by the legislative body of the municipality in such amounts as may be established by the legislative body of the municipality and the regulation and disposition thereof, including requirements that any such funds and accounts be held separate from or not be commingled with other funds of the municipality; (6) covenants for the establishment of maintenance requirements with respect to facilities and properties; (7) provisions for the issuance of additional bonds on a parity with bonds issued prior to the issuance of such additional bonds, including establishment of coverage requirements with respect to such bonds as herein provided; (8) provisions regarding the rights and remedies available to the bond owners, note owners or any trustee under any contract, loan agreement, document, instrument or trust indenture in case of a default, including the right to appoint a trustee to represent their interests upon occurrence of any event of default, as defined in any such default proceedings, provided that if any bonds or bond anticipation notes are secured by a trust indenture, the respective owners of such bonds or notes shall have no authority except as set forth in such trust indenture to appoint a separate trustee to represent them; and (9) other provisions or covenants of like or different character from the foregoing which are consistent with this section and which the legislative body of the municipality determines in such proceedings are necessary, convenient or desirable in order to better secure the bonds or bond anticipation notes, or will tend to make the bonds or bond anticipation notes more marketable, and which are in the best interests of the municipality. Any provisions which may be included in proceedings authorizing the issuance of bonds under this section may be included in an indenture of trust duly approved in accordance with this section which secures the bonds and any notes issued in anticipation thereof, and in such case the provisions of such indenture shall be deemed to be a part of such proceedings as though they were expressly included therein. Any pledge made by the municipality shall be valid and binding from the time when the pledge is made, and any revenues or other receipts, funds or moneys so pledged and thereafter received by the municipality shall be subject immediately to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the municipality, irrespective of whether such parties have notice of such lien. Neither the resolution nor any other instrument by which a pledge is created need be recorded. The legislative body of the municipality may enter into a trust indenture by and between the municipality and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the municipality. Such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bond owners and note owners as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the municipality in relation to the exercise of its powers pursuant to this section and the custody, safeguarding and application of all moneys. The municipality may provide by such trust indenture for the payment of the pledged revenues or other receipts, funds or moneys to the trustee under such trust indenture or to any other depository, and for the method of disbursement thereof, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out such trust indenture may be treated as project costs. Such bonds shall not be included in computing the aggregate indebtedness of the municipality, provided, if such bonds are made payable, in whole or in part, from funds contracted to be advanced by the municipality, the aggregate amount of such funds not yet appropriated to such purpose shall be included in computing the aggregate indebtedness of the municipality. As used in this section, "bonds" means any bonds, including refunding bonds, notes, interim certificates, debentures or other obligations. For purposes of this section and section 8-134a, as amended by this act, references to the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall include any subsidiary of the [Connecticut Development Authority] Connecticut Economic Innovations Authority established pursuant to [subsection (l) of section 32-11a] section 2 of this act.

Sec. 18. Section 8-134a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Any redevelopment plan authorized under this chapter or any proceedings authorizing the issuance of bonds under this chapter may contain a provision that taxes, if any, identified in such plan or such authorizing proceedings and levied upon taxable real or personal property, or both, in a redevelopment project each year, or payments in lieu of such taxes authorized pursuant to chapter 114, or both, by or for the benefit of any one or more municipalities, districts, or other public taxing agencies after the effective date of the ordinance approving the redevelopment plan or such bond authorizing proceedings, as the case may be, shall be divided as follows: (1) In each fiscal year that portion of the taxes or payments in lieu of taxes, or both, which would be produced by applying the then current tax rate of each of the taxing agencies to the total sum of the assessed value of the taxable property in the redevelopment project on the effective date of such ordinance or the date of such authorizing proceedings, as the case may be, or on any date between such two dates which is identified in such proceedings, shall be allocated to and when collected shall be paid into the funds of the respective taxing agencies in the same manner as taxes by or for said taxing agencies on all other property are paid; and (2) that portion of the assessed taxes or payments in lieu of taxes, or both, each fiscal year in excess of the amount referred to in subdivision (1) of this section shall be allocated to and when collected shall be paid into a special fund of the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority as issuer of such bonds to be used in each fiscal year, first to pay the principal of and interest due in such fiscal year on loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, incurred by such municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority as issuer of such bonds to finance or refinance in whole or in part, such redevelopment project, and then, at the option of the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority as issuer of such bonds, to purchase bonds issued for the project which has generated the increments in taxes or payments in lieu of taxes and then, at the option of the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority as issuer of such bonds, to reimburse the provider of or reimbursement party with respect to any guarantee, letter of credit, policy of bond insurance, funds deposited in a debt service reserve fund, funds deposited as capitalized interest or other credit enhancement device used to secure payment of debt service on any bonds, notes or other indebtedness of a municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority as issuer of such bonds issued pursuant to section 8-134, as amended by this act, to finance or refinance such redevelopment project, to the extent of any payments of debt service made therefrom. Unless and until the total assessed valuation of the taxable property in a redevelopment project exceeds the total assessed value of the taxable property in such project as shown by the last assessment list, referred to in subdivision (1) of this section, all of the taxes levied and collected and all of the payments in lieu of taxes due and collected upon the taxable property in such redevelopment project shall be paid into the funds of the respective taxing agencies. When such loans, advances, and indebtedness, if any, and interest thereon, and such debt service reimbursement to the provider of or reimbursement party with respect to such credits, have been paid, in full, all moneys thereafter received from taxes or payments in lieu of taxes, or both, upon the taxable property in such redevelopment project shall be paid into the funds of the respective taxing agencies in the same manner as taxes on all other property are paid.

Sec. 19. Subsection (w) of section 32-23d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(w) "Authority" means the [Connecticut Development Authority or its successor as established and created under section 32-11a] Connecticut Economic Innovations Authority established pursuant to section 2 of this act.

Sec. 20. Section 32-23k of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The state of Connecticut does hereby pledge to and agree with the holders of any bonds and notes issued under the provisions of the authority legislation, as defined in subsection (hh) of section 32-23d, and with those parties who may enter into contracts with the [Connecticut Development Authority] Connecticut Economic Innovations Authority or its successor agency pursuant to the provisions of such authority legislation, that the state will not limit or alter the rights hereby vested in the authority until such obligations, together with the interest thereon, are fully met and discharged and such contracts are fully performed on the part of the authority, provided nothing contained herein shall preclude such limitation or alteration if and when adequate provision shall be made by law for the protection of the holders of such bonds and notes of the authority or those entering into such contracts with the authority. The authority is authorized to include this pledge and undertaking for the state in such bonds and notes or contracts.

Sec. 21. Section 32-23q of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The provisions of sections 37-4 and 37-6 shall not apply to any bond, note or other obligation issued by the [Connecticut Development Authority] Connecticut Economic Innovations Authority, or any loan, lease, sale agreement, note or other obligation evidencing a financial obligation to the authority.

Sec. 22. Section 32-23r of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The [Connecticut Development Authority] Connecticut Economic Innovations Authority shall require in all instances that a borrower or mortgagee shall enter into an agreement with the authority to give preference in employment to persons as set forth herein:

(1) Where the funds involved are to be used for the purchase, lease or alteration of an existing facility which has been inoperative and the borrower or mortgagee intends to make, assemble or produce products and or services comparable to those previously made, assembled, or produced at such facility, preference shall be given to those previously employed at such facility within the twelve-month period immediately preceding its closing in the order of their total length of employment at the closed facility, provided that they can perform the work required by the borrower or mortgagee at such existing facility;

(2) Where the funds involved are to be used for the purchase, lease or alteration of an existing facility which has been inoperative and the borrower or mortgagee intends to make, assemble or produce products different from those previously made, assembled or produced at the facility, preference in employment and training shall be given to those previously employed at such facility within the twelve-month period immediately preceding its closing in the order of their total length of employment at the closed facility, provided such training shall not exceed twelve weeks; and

(3) Where the borrower or mortgagee is not the operating or producing entity at the facility being financed, the borrower or mortgagee shall be required to enter into an irrevocable agreement with the operating or producing entity containing the above requirements and proof of such agreement shall be provided to the authority before approval of any funds or insurance.

Sec. 23. Section 32-23t of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

It is hereby found and declared as a matter of legislative determination that there is a continuing need for stimulation and encouragement of the growth and development of the state economy through the provision of two comprehensive loan programs and the establishment of a locally administered business outreach center challenge grant program which address the economic needs of a wide variety of business enterprises located throughout the state, including, but not limited to, development corporations, small contractors, small manufacturers, small business investment companies, employee groups, small water companies, small exporters, businesses affected by emergencies or disasters, small farmers, small retailers or service firms, high risk small businesses, start-up businesses, businesses located in various regions of the state, and other businesses that may be unable to obtain adequate financing from conventional sources. It is further found and declared that consolidating many of the separate loan programs currently administered by the Department of Economic and Community Development into two revolving loan funds to be administered by the [Connecticut Development Authority] Connecticut Economic Innovations Authority will enhance such programs for all borrowers, permit better targeting of state assistance to firms important to the economic base of the state, improve marketing, accounting and administration, alleviate certain administrative and technical problems created by changes in federal tax law, permit more effective use of existing resources and better enable the state to protect itself from losses through the establishment of a loan loss reserve and an improved loan work-out capability. It is further found and declared that major changes in the financial markets have altered the availability of capital to small and medium firms in the state, that assistance to high risk small and start-up businesses is important to the state economy and that such loan consolidation will better enable the [Connecticut Development Authority] Connecticut Economic Innovations Authority to leverage state assistance through active participation of private sector investments in small businesses.

Sec. 24. Subdivision (3) of subsection (a) of section 32-23v of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(3) "Authority" means the [Connecticut Development Authority established under section 32-11a] Connecticut Economic Innovations Authority established pursuant to section 2 of this act or its successor.

Sec. 25. Subsection (a) of section 32-23x of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) As used in this section:

(1) "Affiliate" means a business concern which directly controls or is controlled by another business concern, or a third party which controls both business concerns;

(2) "Authority" means the [Connecticut Development Authority established under section 32-11a] Connecticut Economic Innovations Authority established pursuant to section 2 of this act or its successor;

(3) "Department" means the Department of Economic and Community Development or its successor agency;

(4) "Enterprise zone" has the same meaning as provided in section 32-70;

(5) "Impacted business" means any person impacted by (A) a disaster caused by natural forces including, but not limited to, floods or hurricanes or (B) an economic emergency including, but not limited to, an existing or threatened major plant shutdown, business disruption from a major road or bridge repair project or other existing or potential economic emergency, provided such disaster or emergency described in subparagraph (A) or (B) of this subdivision is proclaimed as such by declaration of the Commissioner of Economic and Community Development, with the consent of the Secretary of the Office of Policy and Management, upon a determination by the Commissioner of Economic and Community Development that such disaster or emergency is of a magnitude that could materially affect the health or well-being of the citizens of the impacted area and that the financial assistance provided for under this section is necessary to assure timely and effective relief and restoration;

(6) "Loans" means loans and extensions of lines of credit;

(7) "Minority business enterprise" means any person who meets the criteria contained in section 4a-60g and who is receiving a state contract award;

(8) "Person" means any person or entity, including affiliates, engaged in a for-profit activity or activities in this state and who, except for an impacted business, is not an eligible borrower for assistance under the provisions of the Connecticut Growth Fund established under section 32-23v, as amended by this act;

(9) "Rate of interest" means the interest rate which the authority shall charge and collect on each loan made by the state under this section, which rate shall not exceed one per cent above the interest rate borne by the general obligation bonds of the state last issued prior to the date such loan is made, provided, such rate shall not exceed the maximum allowable under federal law;

(10) "Small contractor" means any person who is a contractor, subcontractor, manufacturer or service company who has been in business for at least one year prior to the date of its application for assistance under this section and whose gross revenues, including revenues of affiliates, did not exceed three million dollars in its most recently completed fiscal year prior to the date of its application for assistance under this section;

(11) "State or local development corporation" means any entity organized under the laws of this state which has the authority to promote and assist the growth and development of business concerns in the areas covered by their operations;

(12) "Targeted business" means a person located in an enterprise zone whose gross revenues did not exceed three million dollars in its most recently completed fiscal year prior to the date of its application for assistance under this section, or if such person has not been in business for at least one year prior to the date of such application, if the authority determines in its discretion that such person's gross revenues, including revenues of affiliates, are not likely to exceed three million dollars in its first fiscal year;

(13) "Water facilities" means (A) investor-owned water companies which supply water to at least twenty-five but less than ten thousand customers, (B) municipally-owned water companies, and (C) owners of privately and municipally-owned dams which the Commissioner of Environmental Protection has determined benefit the public.

Sec. 26. Section 32-23z of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) A Business Environmental Clean-Up Revolving Loan Fund is created. The state, acting through the [Connecticut Development Authority] Connecticut Economic Innovations Authority, may provide loans or lines of credit from the Business Environmental Clean-Up Revolving Loan Fund (1) to businesses for the purposes of the containment and removal or mitigation of the discharge, spillage, uncontrolled loss, seepage or filtration of oil or petroleum or chemical liquids or solid, liquid or gaseous products or hazardous wastes, and (2) to businesses which convert gas and diesel-powered motor vehicles to vehicles powered by either gas or diesel fuel and a clean-burning alternative fuel, including but not limited to, compressed natural gas or electricity. Loans or lines of credit under subdivision (2) shall be for working or development capital. For the purposes of this section, "business" means any business which (A) if applying for assistance under subdivision (1), has been in business for at least one year prior to the date of application for its loan or line of credit or, if applying for assistance under subdivision (2), has been in business for at least two years prior to such application date, (B) has gross revenues, including revenues of affiliates, less than three million dollars in the most recent fiscal year before the date of the application or has less than one hundred fifty employees and, if applying for assistance under subdivision (2), derived at least seventy-five per cent of its gross revenues in such year from motor vehicle fuel conversion activities, (C) if applying for assistance under subdivision (1), has been doing business and has maintained its principal office and place of business in the state for a period of at least one year prior to the date of its application for assistance under this section or, if applying for assistance under subdivision (2), has been doing business and has maintained such office and business in the state for a period of at least two years prior to such application date, and (D) demonstrates, to the satisfaction of the authority and in its sole discretion, that it is unable to obtain financing from conventional sources on reasonable terms or in reasonable amounts. The [Connecticut Development Authority] Connecticut Economic Innovations Authority shall charge and collect interest on each such loan or line of credit at a rate to be determined in accordance with regulations adopted pursuant to subsection (b) of this section. The total amount of such loans or lines of credit provided to any single business in any period of twelve consecutive months shall not exceed two hundred thousand dollars. Payments made by businesses on all loans and lines of credit paid to the Treasurer for deposit in the Business Environmental Clean-Up Revolving Loan Fund shall be credited to such fund.

(b) The authority shall take any reasonable action it deems appropriate to moderate losses on loans and lines of credit made under this section, including, but not limited to, development and implementation of written procedures, in accordance with section 1-121, and a strategy to manage the assets of the fund and any losses incurred.

(c) The [Connecticut Development Authority] Connecticut Economic Innovations Authority shall establish loan procedures, interest, repayment terms, security requirements, default and remedy provisions and such other terms and conditions as the authority shall deem appropriate.

(d) Each such loan or extension of credit shall be authorized by the [Connecticut Development Authority] Connecticut Economic Innovations Authority or, if the authority so determines, by a committee of the authority consisting of the chairman and either one other member of the authority or its executive director, as specified in the determination of the authority. Any administrative expenses incurred in carrying out the provisions of this section, to the extent not paid by the authority, shall be paid from the Business Environmental Clean-Up Revolving Loan Fund. Payments from the Business Environmental Clean-Up Revolving Loan Fund to businesses or to pay such administrative expenses shall be made by the Treasurer upon certification by the executive director of the authority that the payment is authorized under the provisions of this section, under the applicable rules and regulations of the authority, and, if made to a business, under the terms and conditions established by the authority or the duly appointed committee thereof in authorizing the making of the loan or the extension of credit.

Sec. 27. Section 32-23aa of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The [Connecticut Development Authority] Connecticut Economic Innovations Authority shall not approve any application for financial assistance for any project unless such project complies with all state laws and regulations adopted thereunder.

Sec. 28. Section 32-23hh of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in sections 32-23gg to 32-23ll, inclusive:

(1) "Authority" means the [Connecticut Development Authority, created under section 32-11a] Connecticut Economic Innovations Authority established pursuant to section 2 of this act;

(2) "Executive director" means the executive director of the [Connecticut Development Authority] Connecticut Economic Innovations Authority;

(3) "Financial assistance" means any and all forms of loans, extensions of credit, guarantees, equity investments or any other form of financing or refinancing to persons for the purchase, acquisition, construction, expansion, continued operation, reconstruction, financing, refinancing or placing in operation of an economic development project, including, but not limited to, fixed assets, working capital, equity participations and acquisitions, employee buyouts, refinancing, financial restructuring, and other purposes which the authority determines further the purposes of sections 32-23gg to 32-23ll, inclusive;

(4) "Economic development project" means any project (A) which is to be used or occupied by any person for manufacturing, industrial, research or product warehousing or distribution purposes, or any combination thereof, and which the authority determines will tend to maintain or provide gainful employment, maintain or increase the tax base of the economy, or maintain, expand or diversify industry in the state, or for any other purpose which the authority determines will materially support the economic base of the state, by creating or retaining jobs, promoting the export of products or services beyond state boundaries, encouraging innovation in products or services, or otherwise contributing to, supporting or enhancing existing activities that are important to the economic base of the state, and (B) which is unable to obtain conventional financing in satisfactory amounts or on satisfactory terms in the sole judgment of the authority, or whose ability, in the judgment of the authority, to start, continue to operate, expand, or maintain operations or relocate to Connecticut, is dependent upon financial assistance;

(5) "Person" means a person as defined in subsection (s) of section 32-23d; and

(6) "Return on investment" means any and all forms of principal or interest payments, insurance premiums or guarantee fees, equity participations, options, warrants, debentures and any or all other forms of remuneration to the authority in return for any financial assistance provided or offered.

Sec. 29. Section 32-23qq of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) An Environmental Assistance Revolving Loan Fund is created. The state, acting through the [Connecticut Development Authority] Connecticut Economic Innovations Authority, or any subsidiary of the authority may provide grants, loans, lines of credit or loan guarantees to municipalities or businesses from the Environmental Assistance Revolving Loan Fund for the purposes of pollution prevention activities, as defined in section 32-23rr, for purchases and the costs associated with compliance with the Clean Air Act Amendments of 1990 (42 USC 7401, et seq.), as amended, or for remediation of contaminated real property. Within the Environmental Assistance Revolving Loan Fund, a loan subfund is created solely to provide loans and lines of credit as provided in this section, a guarantee subfund is created solely to provide loan guarantees as provided in this section and a grant subfund is created solely to provide grants as provided under this section. No financial assistance, nor any commitment to provide financial assistance, shall be provided by or entered into by the authority or any subsidiary of the authority pursuant to sections 32-23pp to 32-23ss, inclusive, as amended by this act, which would cause the aggregate amount of all such financial assistance and commitments then outstanding to exceed the sum of the amounts in the applicable subfund of the Environmental Assistance Revolving Loan Fund plus the amount of any unpaid grants authorized to be made by the Department of Economic and Community Development to the authority or any subsidiary of the authority for deposit in the applicable subfund of the Environmental Assistance Revolving Loan Fund, provided the amount of financial assistance in the form of any guarantee shall be measured by the portion of unpaid loan principal which is guaranteed by the authority. Notwithstanding the above, the aggregate amount of financial assistance in the form of guarantees and commitments with respect thereto, calculated as above, may be up to four times the sum of the amounts available in the guarantee subfund of the Environmental Assistance Revolving Loan Fund plus the amount of any unpaid grants which remain available and are specifically designated by the department for purposes of such subfund pursuant to the bond authorization in section 32-23ss, as amended by this act. For the purposes of this section, "business" means any business which (1) has gross revenues of less than twenty-five million dollars in its fiscal year ending prior to the application for any such loans, lines of credit or loan guarantees, or (2) has fewer than one hundred fifty employees. The [Connecticut Development Authority] Connecticut Economic Innovations Authority or any subsidiary of the authority shall charge and collect interest on each such loan or line of credit at a rate to be determined in accordance with procedures adopted pursuant to subsection (b) of this section. Payments made by businesses on all loans, lines of credit and loan guarantees shall be paid to the authority or any subsidiary of the authority for deposit in the Environmental Assistance Revolving Loan Fund.

(b) The [Connecticut Development Authority] Connecticut Economic Innovations Authority and any subsidiary of the authority shall adopt written procedures, in accordance with the provisions of section 1-121, to carry out the provisions of this section. Such procedures shall establish requirements for grants, loans, guarantees, interest, repayment terms, security requirements, default and remedies and such other terms and conditions as the authority or any subsidiary of the authority shall deem appropriate.

(c) Each such grant, loan, guarantee or extension of credit shall be authorized by the [Connecticut Development Authority] Connecticut Economic Innovations Authority or any subsidiary of the authority or, if the authority or any subsidiary of the authority so determines, by a committee of the authority or any subsidiary of the authority consisting of the chairman and either one other member of the authority or subsidiary or its executive director, as specified in the determination of the authority or subsidiary. Any administrative expenses incurred in carrying out the provisions of this section, to the extent not paid by the authority or any subsidiary of the authority or from moneys appropriated to the authority or any subsidiary of the authority, shall be paid from the Environmental Assistance Revolving Loan Fund. Payments from the Environmental Assistance Revolving Loan Fund to businesses or municipalities or to pay such administrative expenses shall be made by the authority or any subsidiary of the authority upon certification by the chairman of the authority or such subsidiary that the payment is authorized under the provisions of this section, under the applicable rules and regulations of the authority or subsidiary, and, if made to a business or municipality under the terms and conditions established by the authority or subsidiary or the duly appointed committee thereof in authorizing the making of the grant, loan or the extension of credit.

Sec. 30. Section 32-23ss of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) For the purposes described in subsection (b) 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 dollars.

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Economic and Community Development to make grants to the [Connecticut Development Authority] Connecticut Economic Innovations Authority for deposit in the Environmental Assistance Revolving Loan Fund to be used for the purpose of sections 32-23pp to 32-23rr, inclusive, and this section. The terms and conditions of said grants shall be governed in accordance with a grant contract between the department and the authority.

(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, 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. 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 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.

Sec. 31. Section 32-23tt of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in section 32-23ll, this section, and sections 32-23uu, 32-23vv and 32-235:

(1) "Authority" means the [Connecticut Development Authority] Connecticut Economic Innovations Authority established [under the provisions of this chapter] pursuant to section 2 of this act;

(2) "Educational upgrades" means (A) programs designed to increase the basic skills of workers and production workers including, but not limited to training, in written and oral communication, mathematics or science, or (B) training in innovative production methods and workplace oriented computer technical skills;

(3) "Financial assistance" means grants, loans, loan guarantees or interest rate subsidies or any combination thereof;

(4) "Manufacturing or economic base business" means a business defined under subsection (l) of section 32-222, as amended by this act;

(5) "Production worker" means an employee of a manufacturer whose principal duties are located within the state, and consist of the assembly or construction of the manufacturer's product or a portion thereof; and

(6) "Worker" means an employee of a manufacturing or economic-based business whose principal duties are located within the state.

Sec. 32. Section 32-23yy of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) As used in this section, the following terms shall have the following meanings unless the context indicates another meaning and intent:

(1) "Authority" means the [Connecticut Development Authority, created under section 32-11a] Connecticut Economic Innovations Authority established pursuant to section 2 of this act, and any of its subsidiaries or affiliates;

(2) "Executive Director" means the executive director of the [Connecticut Development Authority] Connecticut Economic Innovations Authority;

(3) "Financial assistance" means any and all forms of grants, loans, extensions of credit, guarantees, equity investments or other forms of financing or refinancing to persons for the purchase, acquisition, leasing, construction, expansion, continued operation, reconstruction, financing, refinancing or placing in operation of an information technology project, including, but not limited to, fixed assets, working capital, equity participations and acquisitions, employee buyouts, refinancing, lease guarantees, financial restructuring and other purposes which the authority determines further the purposes of this section. For purposes of this section financial assistance shall not be considered financial assistance under the provisions of section 32-462, as amended by this act;

(4) "Information technology project" means an information technology project, as defined in section 32-23d, as amended by this act;

(5) "Person" means a person, as defined in subsection (s) of section 32-23d;

(6) "Return on investment" means any and all forms of principal or interest payments, guarantee fees, equity participations, options, warrants, debentures and any or all other forms of remuneration to the authority in return for any financial assistance provided or offered.

(b) There is created within the authority the High-Technology Infrastructure Fund. The state, acting through the authority, may provide financial assistance from said fund that enables the development of information technology projects. Such financial assistance may be provided directly or in participation with any other financial institutions, funds or other persons or other sources of financing, public or private, and the authority may enter into any agreements or contracts it deems necessary or convenient in connection therewith. Payments of principal, interest or other forms of return on investment received by the authority shall be deposited in or held on behalf of said fund.

(c) The authority may provide financial assistance in such amounts, in such form and under such terms and conditions as the authority shall prescribe, in written procedures adopted in accordance with section 1-121. Such procedures shall provide, in the case of financial assistance in a form other than a grant, for returns on investment as the authority deems appropriate to reflect the nature of the risk, provided a single project shall not receive an amount in excess of fifteen million dollars and shall not be for a term longer than thirty years.

(d) The authority may take all reasonable steps and exercise all reasonable remedies necessary or desirable to protect the obligations or interests of the authority, including, but not limited to, the purchase or redemption in foreclosure proceedings, bankruptcy proceedings or in other judicial proceedings, of any property on which it holds a mortgage or other lien or in which it has an interest, and for such purposes and any other purposes provided in this section payment may be made from the High-Technology Infrastructure Fund upon certification by the executive director that payment is authorized under the provisions of this section, or other sections of the general statutes, applicable procedures or other programs of the authority.

(e) Applicants for financial assistance shall pay the costs the authority deems reasonable and necessary incurred in processing applications made under this section, including application and commitment fees, closing costs or other costs. In carrying out the provisions of this section, any administrative expenses incurred by the authority, to the extent not paid by the borrower or from moneys appropriated to the authority for such purposes, may be paid from the High-Technology Infrastructure Fund.

Sec. 33. Section 32-23zz of the 2010 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) For the purpose of assisting (1) any information technology project, as defined in subsection (ee) of section 32-23d, which is located in an eligible municipality, as defined in subdivision (12) of subsection (a) of section 32-9t, or (2) any remediation project, as defined in subsection (ii) of section 32-23d, the [Connecticut Development Authority] Connecticut Economic Innovations Authority may, upon a resolution of the legislative body of a municipality, issue and administer bonds which are payable solely or in part from and secured by: (A) A pledge of and lien upon any and all of the income, proceeds, revenues and property of such a project, including the proceeds of grants, loans, advances or contributions from the federal government, the state or any other source, including financial assistance furnished by the municipality or any other public body, (B) taxes or payments or grants in lieu of taxes allocated to and payable into a special fund of the [Connecticut Development Authority] Connecticut Economic Innovations Authority pursuant to the provisions of subsection (b) of this section, or (C) any combination of the foregoing. Any such bonds of the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall mature at such time or times not exceeding thirty years from their date of issuance and shall be subject to the general terms and provisions of law applicable to the issuance of bonds by the [Connecticut Development Authority] Connecticut Economic Innovations Authority, except that such bonds shall be issued without a special capital reserve fund as provided in subsection (b) of section 32-23j and, for purposes of section 32-23f, only the approval of the board of directors of the authority shall be required for the issuance and sale of such bonds. Any pledge made by the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority for bonds issued as provided in this section shall be valid and binding from the time when the pledge is made, and revenues and other receipts, funds or moneys so pledged and thereafter received by the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority, even if the parties have no notice of such lien. Recording of the resolution or any other instrument by which such a pledge is created shall not be required. In connection with any such assignment of taxes or payments in lieu of taxes, the [Connecticut Development Authority] Connecticut Economic Innovations Authority may, if the resolution so provides, exercise the rights provided for in section 12-195h of an assignee for consideration of any lien filed to secure the payment of such taxes or payments in lieu of taxes. All expenses incurred in providing such assistance may be treated as project costs.

(b) Any proceedings authorizing the issuance of bonds under this section may contain a provision that taxes or a specified portion thereof, if any, identified in such authorizing proceedings and levied upon taxable real or personal property, or both, in a project each year, or payments or grants in lieu of such taxes or a specified portion thereof, by or for the benefit of any one or more municipalities, districts or other public taxing agencies, as the case may be, shall be divided as follows: (1) In each fiscal year that portion of the taxes or payments or grants in lieu of taxes which would be produced by applying the then current tax rate of each of the taxing agencies to the total sum of the assessed value of the taxable property in the project on the date of such authorizing proceedings, adjusted in the case of grants in lieu of taxes to reflect the applicable statutory rate of reimbursement, shall be allocated to and when collected shall be paid into the funds of the respective taxing agencies in the same manner as taxes by or for said taxing agencies on all other property are paid; and (2) that portion of the assessed taxes or the payments or grants in lieu of taxes, or both, each fiscal year in excess of the amount referred to in subdivision (1) of this subsection shall be allocated to and when collected shall be paid into a special fund of the [Connecticut Development Authority] Connecticut Economic Innovations Authority to be used in each fiscal year, in the discretion of the [Connecticut Development Authority] Connecticut Economic Innovations Authority, to pay the principal of and interest due in such fiscal year on bonds issued by the [Connecticut Development Authority] Connecticut Economic Innovations Authority to finance, refinance or otherwise assist such project, to purchase bonds issued for such project, or to reimburse the provider of or reimbursement party with respect to any guarantee, letter of credit, policy of bond insurance, funds deposited in a debt service reserve fund, funds deposited as capitalized interest or other credit enhancement device used to secure payment of debt service on any bonds issued by the [Connecticut Development Authority] Connecticut Economic Innovations Authority to finance, refinance or otherwise assist such project, to the extent of any payments of debt service made therefrom. Unless and until the total assessed valuation of the taxable property in a project exceeds the total assessed value of the taxable property in such project as shown by the last assessment list referred to in subdivision (1) of this subsection, all of the taxes levied and collected and all of the payments or grants in lieu of taxes due and collected upon the taxable property in such project shall be paid into the funds of the respective taxing agencies. When such bonds and interest thereof, and such debt service reimbursement to the provider of or reimbursement party with respect to such credit enhancement, have been paid in full, all moneys thereafter received from taxes or payments or grants in lieu of taxes upon the taxable property in such development project shall be paid into the funds of the respective taxing agencies in the same manner as taxes on all other property are paid. The total amount of bonds issued pursuant to this section which are payable from grants in lieu of taxes payable by the state shall not exceed an amount of bonds, the debt service on which in any state fiscal year is, in total, equal to one million dollars.

(c) The authority may make grants or provide loans or other forms of financial assistance from the proceeds of special or general obligation notes or bonds of the authority issued without the security of a special capital reserve fund within the meaning of subsection (b) of section 32-23j, which bonds are payable from and secured by, in whole or in part, the pledge and security provided for in section 8-134, as amended by this act, 8-192, as amended by this act, 32-227, as amended by this act, or this section, all on such terms and conditions, including such agreements with the municipality and the developer of the project, as the authority determines to be appropriate in the circumstances, provided any such project in an area designated as an enterprise zone pursuant to section 32-70 receiving such financial assistance shall be ineligible for any fixed assessment pursuant to section 32-71, and the authority, as a condition of such grant, loan or other financial assistance, may require the waiver, in whole or in part, of any property tax exemption with respect to such project otherwise available under subsection (59) or (60) of section 12-81.

(d) As used in this section, "bonds" means any bonds, including refunding bonds, notes, temporary notes, interim certificates, debentures or other obligations; "legislative body" has the meaning provided in subsection (w) of section 32-222, as amended by this act; and "municipality" means a town, city, consolidated town or city or consolidated town and borough.

(e) For purposes of this section, references to the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall include any subsidiary of the [Connecticut Development Authority] Connecticut Economic Innovations Authority established pursuant to subsection (l) of section 32-11a, and a municipality may act by and through its implementing agency, as defined in subsection (k) of section 32-222, as amended by this act.

(f) No commitments for new projects shall be approved by the authority under this section on or after July 1, 2012.

(g) In the case of a remediation project, as defined in subsection (ii) of section 32-23d, that involves buildings that are vacant, underutilized or in deteriorating condition and as to which municipal real property taxes are delinquent, in whole or in part, for more than one fiscal year, the amount determined in accordance with subdivision (1) of subsection (b) of this section may, if the resolution of the municipality so provides, be established at an amount less than the amount so determined, but not less than the amount of municipal property taxes actually paid during the most recently completed fiscal year. If the [Connecticut Development Authority] Connecticut Economic Innovations Authority issues bonds for the remediation project, the amount established in the resolution shall be used for all purposes of subsection (a) of this section.

Sec. 34. Section 32-34 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in this chapter, the following terms shall have the following meanings unless the context clearly indicates another meaning and intent:

(1) ["Corporation" means Connecticut Innovations, Incorporated as created under section 32-35] "Authority" means the Connecticut Economic Innovations Authority established pursuant to section 2 of this act;

(2) "Entrepreneur" means any person who seeks to organize, operate and assume the risk for a business enterprise, or who organizes, operates and assumes the risk for a business enterprise;

[(3) "Finance committee" means a committee or subcommittee organized by the corporation and having the authority to approve or deny applications for financial aid and to enter into agreements on behalf of the corporation to provide financial aid;]

[(4)] (3) "Financial aid" means the infusion of capital to persons, in any form whatsoever, including, but not limited to, grants, loans, equity, leases, guarantees, royalty arrangements, other risk capital and other types of financial assistance;

[(5)] (4) "Incubator facilities" means a building, structure or complex designed, constructed, renovated or developed to house and provide research and other services to assist small technology-based companies;

[(6)] (5) "Invention" means any new product without regard to whether a patent has been or could be granted;

[(7)] (6) "Person" means any individual, general or limited partnership, corporation, limited liability company, institution of higher education, governmental entity or joint venture conducting research into ideas with commercial potential or carrying on business, or proposing to carry on business, within the state which (A) in the case of an individual, general or limited partnership, corporation, limited liability company or joint venture, demonstrates to the corporation the inability (i) to obtain conventional financing in satisfactory amounts or on satisfactory terms, or (ii) to locate or continue operations in the state without assistance as provided in this chapter, and (B) demonstrates to the corporation that any project for research into or the development of specific technologies, products, devices, techniques or procedures or the marketing of services based on the use of such technologies, products, devices, techniques or procedures for which assistance under this chapter, is sought, (i) will create new or retain existing jobs in the state, (ii) will result in an increase in the amount of goods or services exported from the state, (iii) will help to strengthen the economy of the state, or (iv) will promote the development and utilization of technology in the state;

[(8)] (7) "Product" means any technology, device, technique, service or process, which is or may be exploitable commercially; such term shall not refer to pure research but shall be construed to apply to such technologies, products, devices, techniques, services or processes which have advanced beyond the theoretic stage and are readily capable of being, or have been, reduced to practice;

[(9)] (8) "Research" means the scientific and engineering analysis, investigation, collection of ideas and inquiry into concepts, processes and techniques, the purpose of which is intended to result in a commercially feasible product, process or technique;

[(10)] (9) "Seed venture" means a business or other entity in the early stage of development;

[(11)] (10) "Technical peer review committee" means a committee, subcommittee or other entity organized by the corporation to provide advice and counsel concerning the technological, marketing and management feasibility of projects in connection with each application for financial and technical assistance;

[(12)] (11) "Technology" means the conversion of basic scientific research into processes, techniques and products which may have commercial potential;

[(13)] (12) "Advanced technology center" means a cooperative research center in a specified field of science and technology established and funded, subject to the requirements in sections 32-40a, as amended by this act, 32-40b, as amended by this act, and 32-40c, as amended by this act, through an academic, industrial and governmental partnership for purposes of technological research with a direct relationship to economic development in the state;

[(14)] (13) "Venture" means, without limitation, any contractual arrangement with any person whereby the corporation obtains rights from or in an invention or product or proceeds therefrom, or rights to obtain from any person any and all forms of equity instruments including, but not limited to, common and preferred stock, warrants, options, convertible debentures and similar types of instruments exercisable or convertible into capital stock, in exchange for the granting of financial aid to such person;

[(15)] (14) "Venture lease" means a lease by the corporation to a technology company of any real or personal property, on such terms, including lease payments, lease term and purchase options, as the corporation shall determine;

[(16)] (15) "Affiliate" means any person that directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with, another person, including, but not limited to, any corporation, general or limited partnership or limited liability company controlled, directly or indirectly, by such other person or the corporation, provided, in addition to other means of being controlled, a general or limited partnership or limited liability company shall be deemed to be controlled by the corporation if the corporation or one of its affiliates acts as a general partner or a manager of such general or limited partnership or limited liability company;

[(17)] (16) "Capital initiative" means providing financial aid through one or more affiliates and raising the capital for such affiliates, in whole or in part, from sources other than the state;

[(18)] (17) "Preseed financing" means financial aid provided for research and formulation of a concept;

[(19)] (18) "Seed financing" means financial aid to an inventor or entrepreneur to assess the viability of a concept and to qualify for start-up financing to fund, including, but not limited to, product development, market research, management team building and, pending successful progress on such initial steps, business plan development;

[(20)] (19) "Start-up financing" means financial aid to companies in the process of organizing as a business or that have been in operation for less than one year and (A) have completed product development and initial marketing but have not sold such product commercially, and (B) have established viability by performing market studies, assembling key management, developing a business plan and may also qualify for start-up financing by demonstrating viability by other means deemed appropriate by the corporation;

[(21)] (20) "Early or first-stage financing" means financial aid to companies that have expended initial capital, developed and market-tested prototypes, and demonstrate that such funds are necessary to initiate full-scale manufacturing and sales;

[(22)] (21) "Expansion financing" means financial aid to companies for market expansion or to enhance the fiscal position of a company in preceding a liquidity event including, but not limited to, an initial public offering or acquisition.

Sec. 35. Section 32-39c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) With respect to any affiliate created pursuant to section [32-39] 4 of this act, liability shall be limited solely to the assets and revenues or other resources of any such affiliate and without recourse liability to [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority, its other funds or any other assets of the [corporation] authority, except to the extent of any express written guarantees by the [corporation] authority or any investments made or committed to by the [corporation] authority.

(b) The provisions of sections 32-47, as amended by this act, and 1-125, as amended by this act, shall apply to any officer, director, designee or employee serving at the request of the [corporation] authority as a member, director or officer or advisor of any such affiliate. Any such person so appointed shall not be personally liable for the debts, obligations or liabilities of any such affiliate as provided in said section 1-125. Any affiliate shall and the [corporation] authority may provide the indemnification to protect, save harmless and indemnify such officer, director, designee or employee as provided in said section 1-125.

Sec. 36. Section 32-39d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Guarantees issued by [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority and all equity instruments and obligations, any of which include a guarantee of a return of capital or principal by the [corporation] authority, under the provisions of this chapter, are hereby made securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, state banks and trust companies, national banking associations, savings banks, savings and loan associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such instruments and obligations are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state is now or may hereafter be authorized by law.

Sec. 37. Section 32-39e of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) If, in the exercise of its powers under section 32-39, [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority finds that the use of a certain technology, product or process would promote public health and safety, environmental protection or economic development and such technology, product or process was developed by a business domiciled in this state to which the [corporation] authority has provided financial assistance or in which the corporation has invested, the [corporation] authority, upon application of such business, may recommend to the Secretary of the Office of Policy and Management that an agency of the state be directed to test such technology, product or process by employing it in the operations of such agency on a trial basis. The purpose of such test program shall be to validate the commercial viability of such technology, product or process provided no business in which [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority has invested shall be required to participate in such program. No such recommendation may be made unless such business has submitted a viable business plan for manufacturing and marketing such technology, product or process and such business (1) will manufacture or produce such technology, product or process in this state, (2) demonstrates that the usage of such technology, product or process by the state agency will not adversely affect safety, (3) demonstrates that sufficient research and development has occurred to warrant participation in the test program, and (4) demonstrates that the technology, product or process has potential for commercialization not later than two years following the completion of any test program involving a state agency under this section.

(b) If the Secretary of the Office of Policy and Management finds that employing such technology, product or process would be feasible in the operations of a state agency and would not have any detrimental effect on such operations, said secretary, notwithstanding the requirement of chapter 58, may direct an agency of the state to accept delivery of such technology, product or process and to undertake such a test program. Any costs associated with the acquisition and use of such technology, product or process by the testing agency shall be borne by [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority, the business or by any investor or participant in such business. The acquisition of any technology, product or process for purposes of the test program established pursuant to this section shall not be deemed to be a purchase under the provisions of the state procurement policy. The testing agency, on behalf of [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority shall maintain records related to such test program, as requested by [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority and shall make such records and any other information derived from such test program available to [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority and the business. Any proprietary information derived from such test program shall be exempt from the provisions of subsection (a) of section 1-210.

(c) The Secretary of the Office of Policy and Management and [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority may develop a program to recognize state agencies that help to promote public health and safety, environmental protection or economic development by participating in a testing program under this section. Such program may include the creation of a fund established with savings accrued by the testing agency during its participation in the testing program established under this section. Such fund shall only be used to implement the program of recognition established by the Secretary of the Office of Policy and Management and [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority under the provisions of this subsection.

Sec. 38. Section 32-40 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) All applications for financial aid shall be forwarded, together with an application fee prescribed by the [corporation] Connecticut Economic Innovations Authority, to the executive director of the [corporation] authority. Each such application shall be processed in accordance with the written procedures adopted by the [corporation] authority under subdivision (5) of subsection (d) of section 32-35. The [finance committee] board of directors of the [corporation] authority shall approve or deny each application recommended by the chief executive [director] officer. If the [finance committee] board of directors approves an application, [such committee] it may authorize the [corporation] authority to enter into an agreement or agreements on behalf of the [corporation] authority to provide financial aid to the applicant. The applicant shall be promptly notified of such action by the [corporation] authority.

(b) In making the decision as to approval or denial of an application, the [finance committee] board of directors of the [corporation] authority shall give priority to those applicants (1) whose businesses are defense-dependent, or are located in municipalities which the Commissioner of Economic and Community Development has declared have been severely impacted by prime defense contract cutbacks pursuant to section 32-56, and (2) whose proposed research and development activity, technology, product or invention is to be used to convert all or a portion of the applicant's business to non-defense-related industrial or commercial activity, or to create a new non-defense-related industrial or commercial business. For purposes of this section, a defense-dependent business is any business that derives [over] more than fifty per cent of its gross income, generated from operations within the state, from prime defense contracts or from subcontracts entered into in connection with prime defense contracts, a significant portion of whose facilities and equipment are designed specifically for defense production and cannot be converted to nondefense uses without substantial investment.

(c) All financial and credit information and all trade secrets contained in any application for financial aid submitted to the [corporation] authority or obtained by the [corporation] authority concerning any applicant, project, activity, technology, product or invention shall be exempt from the provisions of subsection (a) of section 1-210.

Sec. 39. Section 32-40a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Any advanced technology center, as defined in section 32-34, as amended by this act, shall be established for purposes of conducting research characterized by reasonable prospects of stimulating development of new business and industry utilizing such advanced technology and augmenting the application of advanced technology by existing business and industry in the state. [Connecticut Innovations, Incorporated] The Connecticut Economic Innovations Authority, hereinafter referred to as "the [corporation"] authority" shall require any applicant for state funding with respect to a proposed advanced technology center to submit a complete description of the organization of such center, plans for research and proposed funding from sources other than the state of Connecticut, subject to the provisions of section 32-40c, as amended by this act, including, but not limited to, the following:

(1) The specific technological research to be undertaken and the proposed business and industry involvement in the development and application of such research;

(2) A detailed description of the organization of such center for administrative and research purposes, including (A) name and qualifications of the person to serve as director of the center, and (B) a proposed advisory board for such center which shall include members from the academic institution involved and private business;

(3) Proposed arrangements with the [corporation] authority, concerning financial benefits to the state of Connecticut as a result of patents, royalty payments or similar rights developing from research at such center; and

(4) Details concerning the organization and content of an annual report to be submitted to the [corporation] authority by such center reviewing the progress of research, with the understanding that funding shall be contingent upon satisfactory performance evaluations.

Sec. 40. Section 32-40b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

In approving the application of an advanced technology center, as defined in section 32-34, as amended by this act, for state funding, [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority shall assess scientific, economic, management and financial factors, including, but not limited to, the following:

(1) The likelihood that the research proposal will result in fundamental technological advances transferable to commercial application and the means that the center proposes to make these transfers;

(2) The potential of the research proposal to stimulate technological advances in existing businesses, new business creation and long-term job growth in Connecticut;

(3) Evidence of significant financial commitment by academic and industrial participants and the likelihood that the center will become self-sufficient by the end of the state's financial commitment period;

(4) Evidence that the state will receive a financial return commensurate with its investment in the center;

(5) The level of representation by all financial participants in the center's proposed management structure;

(6) The planned involvement of small businesses and academic institutions in the center's activities;

(7) The center's plan to involve minority students and minority-owned businesses in its activities; and

(8) The adequacy of the center's proposed mechanisms for evaluating its progress.

Sec. 41. Section 32-40c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Funds from the state of Connecticut for purposes of any advanced technology center, as defined in section 32-34, as amended by this act, shall not be allotted for such purpose unless documentation, satisfactory to the Secretary of the Office of Policy and Management, has been submitted to [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority certifying that such funds are accepted in accordance with a plan of proposed funding for such advanced technology center during a period of five years, commencing with the year of the initial state grant for such purpose. Such proposed funding shall include, in addition to the proposed amounts from the state of Connecticut, funds from other sources in an amount not less than the total proposed funds from the state during such five-year period.

Sec. 42. Section 32-41a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is hereby created a "Connecticut Innovations [, Incorporated] Fund". Proceeds from the sale of bonds authorized by the State Bond Commission in accordance with [section] sections 32-41 and [section] 32-41b, as amended by this act, shall be paid directly to the Treasurer of the state as agent of the [corporation] Connecticut Economic Innovations Authority and the Treasurer shall deposit all such amounts in the Connecticut Innovations [, Incorporated] Fund. The moneys in said fund shall be paid by checks signed by the Treasurer of the state or by his deputy appointed pursuant to section 3-12 on requisition of the [executive director of the corporation] the chief executive officer of the authority or his designee.

(b) Any funds or revenues of [Connecticut Innovations, Incorporated] the authority derived from application fees, royalty payments, investment income and loan repayments received by the [corporation] authority in connection with its programs shall be held, administered and invested by the [corporation] authority or deposited with and invested by any institution as may be designated by the [corporation] authority at its sole discretion and paid as the [corporation] authority shall direct. All moneys in such accounts shall be used and applied to carry out the purposes of the [corporation] authority. The [corporation] authority may make payments from such accounts to the Treasurer of the state for deposit in the Connecticut Innovations [, Incorporated] Fund for use in accordance with subsection (c) of this section.

(c) The moneys in the Connecticut Innovations [, Incorporated] Fund (1) shall be used to carry out the purposes of the [corporation] authority and for the repayment of state bonds in such amounts as may be required by the State Bond Commission pursuant to said section 32-41 and section 32-41b, as amended by this act, and (2) may be used as state matching funds for federal funds available to the state for defense conversion projects or other projects consistent with a defense conversion strategy.

Sec. 43. Section 32-41b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The State Bond Commission shall have power in accordance with the provisions of section 3-20 to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate sixty-one million four hundred forty-five thousand six hundred dollars, to carry out the purposes of this section as follows: (1) Loans for the development and marketing of products in the high technology field within the state, not exceeding thirty-four million dollars; (2) royalty financing for start-up costs and product development costs of high technology products and procedures in the state, not exceeding seven million four hundred forty-five thousand six hundred dollars; and (3) financial aid for biotechnology and other high technology laboratories, facilities and equipment, not exceeding twenty million dollars. Any loans originated under subdivision (1) of this section shall bear interest at a rate to be determined in accordance with subsection (t) of said section 3-20. The principal and interest of said bonds shall be payable at such place or places as may be determined by the State Treasurer and shall bear such date or dates, mature at such time or times, bear interest at such rate or different or varying rates, be payable at such time or times, be in such denominations, be in such form with or without interest coupons attached, carry such registration and transfer privileges, be payable in such medium of payment and be subject to such terms of redemption with or without premium as, irrespective of the provisions of said section 3-20, may be provided by the authorization of the State Bond Commission or fixed in accordance therewith. The proceeds of the sale of said bonds, after deducting therefrom all expenses of issuance and sale, shall be paid to the Connecticut Innovations [, Incorporated] Fund created under section 32-41a, as amended by this act. When the State Bond Commission has acted to issue such bonds or a portion thereof, the Treasurer may, pending the issue of such bonds, issue, in the name of the state, temporary notes in anticipation of the money to be received from the sale of such bonds. In issuing the bonds authorized hereunder, the State Bond Commission may require repayment of such bonds by the corporation as shall seem desirable consistent with the purposes of this section and section 32-41a, as amended by this act. Such terms for repayment may include a forgiveness of interest, a holiday in the repayment of interest or principal or both.

Sec. 44. Section 32-41i of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in sections 32-41g to 32-41o, inclusive, as amended by this act:

(1) "Act" means the Technology Deployment Act of 1993;

(2) "Advanced available technology" means a technology or process that can be applied to a manufacturing operation without substantial modification;

(3) "Technology deployment" means (A) activities that assist businesses in applying advanced available technologies in their existing operations, or (B) activities that assist businesses in the development and manufacture of new products derived from advanced available technologies;

(4) ["Corporation" means Connecticut Innovations, Incorporated] "Authority" means the Connecticut Economic Innovations Authority established pursuant to section 2 of this act or a subsidiary designated by said authority;

(5) "Eligible institution" means an institution within the Connecticut State University System which is operating a technology deployment program on July 1, 1993;

(6) "Eligible deployment research consortium" means a multitown, nonprofit coalition which is representative of the business, academic and government communities in an economically distressed area of the state which on or before July 1, 1993, is dependent upon labor intensive, less technologically advanced manufacturing;

(7) "Eligible business consortium" means a nonprofit business-led consortium organized for the purpose of technology deployment in the fields of biotechnology, ergonomics, environmental and energy technologies or educational and job training technologies;

(8) "Eligible grant recipient" means one or more state institutions of higher education or a nonprofit business-led consortium organized for the purpose of technology deployment in advanced materials, marine sciences, photonics, pharmaceutical and environmental technologies; and

(9) "Small and medium-sized business" means a manufacturing business with fewer than five hundred employees.

Sec. 45. Section 32-41j of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is established a university-based manufacturing application center program to be administered by the [corporation] authority for the purpose of promoting technology deployment by linking Connecticut's higher education system with small and medium-sized businesses. [During the three-month period beginning on July 1, 1993, the corporation] The authority shall accept applications from eligible institutions in a form and manner prescribed by the [corporation] authority for state funding for the operation of a manufacturing application center.

(b) [On or before January 1, 1994, the corporation] The authority shall review all applications timely received pursuant to this section and shall approve one such application. In approving such application the [corporation] authority shall assess scientific and economic factors concerning the proposed manufacturing application center, including, but not limited to, the following:

(1) The eligible institution's experience with manufacturing applications, including computer-integrated manufacturing, computer-aided drafting and design, just-in-time manufacturing and total quality management;

(2) The center's plan to provide follow-up employee training to center users;

(3) The center's plan to involve urban-based businesses, minority students or minority-owned businesses in its activities; and

(4) The adequacy of the center's proposed mechanisms for evaluating its progress.

(c) The center's responsibilities shall include, but not be limited to, providing training for manufacturing businesses in high performance work practices.

Sec. 46. Section 32-41k of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is established a nonprofit deployment research program to be administered by the [corporation] authority for the purpose of identifying emerging advanced available technologies in economically distressed manufacturing or former manufacturing regions of the state. [During the six-month period beginning on July 1, 1993, the corporation] The authority shall accept applications from eligible deployment research consortia in a form and manner prescribed by the [corporation] authority for state funding for technology deployment research.

(b) [On or before July 1, 1994, the corporation] The authority shall review all applications timely received pursuant to this section and shall approve one such application. In approving such application the [corporation] authority shall assess scientific and economic factors concerning the proposed technology deployment research, including but not limited to the following:

(1) The extent to which the research will identify advanced available technologies for future deployment;

(2) The extent to which the research enhances existing manufacturing in Connecticut industry;

(3) The eligible research consortium's plan to involve minority students or minority owned businesses in its activities; and

(4) The adequacy of the eligible research consortium's proposed mechanisms for evaluating its progress.

(c) The center's responsibilities shall include, but not be limited to, providing training for businesses in high performance work practices.

Sec. 47. Section 32-41l of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is established a Connecticut energy and environmental technologies deployment center program to be administered by the [corporation] authority for the purpose of promoting a nonprofit business consortium for technology deployment in two critical technologies where the state possesses unique scientific and human resources. [During the three-month period beginning on July 1, 1993, the corporation] The authority shall accept applications from eligible business consortia in a form and manner prescribed by the [corporation] authority for state funding for the operation of an energy and environmental technologies application center.

(b) [On or before January 1, 1994, the corporation] The authority shall review all applications timely received pursuant to this section and shall approve one such application. In approving such application the [corporation] authority shall assess scientific and economic factors concerning the proposed Connecticut energy and environmental technologies deployment center, including but not limited to the following:

(1) Participation in the center by multiple private enterprises including defense and non-defense-based firms with an expertise in environmental and energy technologies;

(2) Participation in the center by more than one public or private institution of higher education;

(3) The center's plan to involve minority students or minority-owned businesses in its activities; and

(4) The adequacy of the center's proposed mechanisms for evaluating its progress.

Sec. 48. Section 32-41m of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is established a Connecticut educational and job training technologies deployment center program to be administered by the [corporation] authority for the purpose of promoting a nonprofit business-led consortium for technology deployment in a critical technology in which the state possesses unique scientific and human resources. [During the three-month period beginning on July 1, 1993, the corporation] The authority shall accept applications from eligible business consortia in a form and manner prescribed by the [corporation] authority for state funding for the operation of an educational and job training technologies deployment center.

(b) [On or before January 1, 1994, the corporation] The authority shall review all applications timely received pursuant to this section and shall approve one such application. In approving such application the [corporation] authority shall assess scientific and economic factors concerning the proposed Connecticut educational and job training technologies deployment center, including, but not limited to, the following:

(1) The center's plan to provide educational and job training technologies to industry, the state's public schools, and state agencies;

(2) The center's plan to deploy educational and job training software, hardware and state of the art telecommunications technologies;

(3) The center's plan to involve minority students or minority-owned businesses in its activities; and

(4) The adequacy of the center's proposed mechanisms for evaluating its progress.

Sec. 49. Section 32-41n of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is established a critical technologies grant program to be administered by the [corporation] authority for the purpose of promoting technology deployment in advanced materials, marine sciences, photonics, pharmaceutical and environmental technologies. [During the twelve-month period beginning on July 1, 1993, the corporation] The authority shall accept applications from eligible grant recipients in a form and manner prescribed by the [corporation] authority for state grants for the purpose of promoting technology deployment in such technologies.

(b) [On or before January 1, 1995, the corporation] The authority shall review all applications timely received pursuant to this section, may approve such applications and provide approved grant recipients such financial assistance as it may determine will promote technology deployment in advanced materials, marine sciences, photonics, pharmaceutical and environmental technologies. In approving such application the [corporation] authority shall assess scientific and economic factors concerning the uses of the proposed grant, including but not limited to the following:

(1) The formal participation in the program proposed by businesses actively engaged in the commercial use of advanced materials, marine sciences, photonics, pharmaceutical and environmental technologies;

(2) The likelihood that the program proposed will result in substantial and timely deployment of advanced available technologies in one or more of the following: Advanced materials, marine sciences, photonics, pharmaceutical and environmental technologies;

(3) The proposal's plan to involve minority students or minority-owned businesses in its activities; and

(4) The adequacy of the program's mechanisms for evaluating its progress.

Sec. 50. Section 32-41o of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) For the purposes described in subsection (b) 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 five million five hundred thousand dollars.

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the [corporation] authority as follows: (1) Three million dollars for the program established in section 32-41j, as amended by this act; (2) five hundred thousand dollars for the program established in section 32-41k, as amended by this act; (3) one million two hundred fifty thousand dollars for the program established and for the eligible business consortium approved in section 32-41l, as amended by this act; and (4) seven hundred fifty thousand dollars for the program established and for the eligible business consortium approved in section 32-41m, as amended by this act.

Sec. 51. Section 32-41p of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is established a workplace center of excellence program to be administered by [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority for the purpose of developing and deploying ergonomic technology solutions and knowledge. [During the three-month period beginning on July 1, 1994, the corporation] The authority shall accept applications from eligible institutions in a form and manner prescribed by the [corporation] authority for state funding for the establishment and operation of a workplace center of excellence.

(b) [On or before January 1, 1995, the corporation] The authority shall review all applications timely received pursuant to this section, approve one such application and provide the approved institution with such financial assistance as the [corporation] authority may determine will promote the purposes of this section. In approving such application the [corporation] authority shall assess scientific and economic factors concerning the proposed center, including but not limited to, the following:

(1) The formal participation in, and financial support of, the center by employers, insurers, and enterprises actively engaged in developing and deploying ergonomics solutions and related activities;

(2) The likelihood that the center will result in substantial and timely deployment of advanced technology solutions to existing businesses in the state;

(3) The center's plan to involve employers, labor, institutions of higher education and other interested parties in its decision-making;

(4) The adequacy of the center's financial plan, including the matching of any state grant funds to implement specific projects with at least an equal amount of funding from private sources;

(5) The center's plan to involve urban residents and urban-based businesses; and

(6) The adequacy of the center's mechanisms for evaluating its progress.

Sec. 52. Section 32-41q of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) As used in this section "critical industry" means an industry that uses emerging technologies, including but not limited to, fuel cell technology, to develop and manufacture nondefense products for future sale, has the potential to create or retain jobs in the state and is critical to the state economy.

(b) There is established an account to be known as the critical industries development account, which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys invested pursuant to the provisions of this section. [Connecticut Innovations, Incorporated] The Connecticut Economic Innovations Authority may use funds from the account to provide loans, loan guarantees, interest rate subsidies and other forms of loan assistance to customers of businesses in critical industries which businesses are based in the state. [Connecticut Innovations, Incorporated] The Connecticut Economic Innovations Authority may solicit and receive funds from any public and private sources for the program. Such funds may include, without limitation, federal funds, state bond proceeds, private venture capital and investments by persons, firms or corporations. Private capital investments may be made either in the account as a whole or in one or more individual technologies or projects.

(c) No product may receive assistance under this section unless its manufacturer agrees to enter into a contract to: (1) Carry out a specified percentage of the development and manufacturing work for the product in the state; and (2) when subcontracting is required, to conduct a specified percentage of such work with companies based in the state. [Connecticut Innovations, Incorporated] The Connecticut Economic Innovations Authority shall determine such percentage for the purposes of this program.

(d) Any person who, or firm or corporation which, invests funds in the critical industries development account pursuant to this section shall receive a portion of the interest paid and principal repayment by the recipient of the loan in proportion to the ratio of the amount of the investment of such person, firm or corporation to the total loan amount.

(e) The Commissioner of Economic and Community Development may adopt regulations in accordance with the provisions of chapter 54 to carry out the purposes of this section.

Sec. 53. Section 32-41s of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) As used in this section:

(1) "Eligible business" means a business which (A) has not more than three hundred employees at any time during the preceding twelve months, and (B) is engaged in biotechnology, pharmaceutical or photonics research, development or production in the state; and

(2) "Eligible commercial property" means (A) real or personal property which an eligible business has (i) owned or leased, and (ii) utilized at all times during the preceding twelve months, or (B) real property which the Commissioner of Economic and Community Development or [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority has certified as newly constructed or substantially renovated and expanded primarily for occupancy by one or more eligible businesses.

(b) On and after July 1, 1997, eligible businesses and eligible commercial property located in any municipality which has (1) a major research university with programs in biotechnology, pharmaceuticals or photonics, and (2) an enterprise zone, shall be entitled to the same benefits, subject to the same conditions, under the general statutes for which businesses located in an enterprise zone qualify.

(c) [Connecticut Innovations, Incorporated] The Connecticut Economic Innovations Authority may provide lease guarantees or other financial aid for facilities, improvements and equipment, to benefit any eligible business [which is] unable to secure financing for such items on commercially reasonable terms.

(d) [Connecticut Innovations, Incorporated] The Connecticut Economic Innovations Authority may recommend regulations to carry out the purposes of this section, which the Commissioner of Economic and Community Development shall adopt in accordance with chapter 54.

(e) [Connecticut Innovations, Incorporated] The Connecticut Economic Innovations Authority shall evaluate the feasibility of establishing a bio-processing facility within this state. If determined to be feasible, [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority shall facilitate the formation of a business consortium, in which it may participate, to launch and operate such facility.

Sec. 54. Section 32-41t of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in this section and section 32-41u, as amended by this act:

(1) ["Corporation" means Connecticut Innovations, Incorporated as created under section 32-35] "Authority" means the Connecticut Economic Innovations Authority; and

(2) "Eligible participant" means a member of the faculty or a researcher engaged in applied research and development at any Connecticut college or university that agrees to participate in a high technology research and development program established by the [corporation] authority.

Sec. 55. Section 32-41u of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is established a high technology research and development program to be administered by the [corporation] authority for the purpose of promoting collaboration between businesses and colleges and universities in this state in advanced materials, aerospace, bioscience, energy and environmental systems, information technology, applied optics, microelectronics and other high technology fields. The [corporation] authority may accept applications to the program from eligible participants in a form and manner prescribed by the [corporation] authority.

(b) In approving any application the [corporation] authority shall assess the collaborative nature of the proposal as well as scientific and economic factors, including, but not limited to, the following:

(1) The formal participation in the proposal by businesses actively engaged in the commercial use of advanced materials, aerospace, bioscience, energy and environmental systems, information technology, applied optics, microelectronics and other high technology fields;

(2) The likelihood that a proposal will result in the development or commercialization of high technology products or processes in this state; and

(3) The likelihood that a proposal will result in long-term, sustainable economic growth for this state.

(c) The [corporation] authority shall provide financial aid, as defined in subdivision [(4)] (3) of section 32-34, as amended by this act, to eligible participants whose proposals have been approved by the [corporation] authority as provided in subsections (a) and (b) of this section.

(d) The [corporation] authority may establish other programs, including financial programs, in order to attract and retain residents with postsecondary education in science, engineering, mathematics and other disciplines that are essential or advisable to the development and application of technology.

Sec. 56. Section 32-43 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The state of Connecticut does hereby pledge to and agree with any person with whom the [corporation] authority may enter into contracts pursuant to the provisions of this chapter that the state will not limit or alter the rights hereby vested in the [corporation] authority until such contracts and the obligations thereunder are fully met and performed on the part of the [corporation] authority, provided nothing herein contained shall preclude such limitation or alteration if adequate provision shall be made by law for the protection of such persons entering into contracts with the [corporation] authority.

Sec. 57. Section 32-47 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) Neither the directors of [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority nor any person acting on behalf of said [corporation] authority executing any notes, bonds, contracts, agreements or other obligations issued pursuant to this chapter shall be liable personally on such notes, bonds, contracts, agreements or obligations, or be subject to any personal liability or accountability by reason of the issuance thereof.

(b) No director shall be personally liable for damage or injury, not wanton or wilful, caused in the performance of his duties and within the scope of his employment. Any person having a complaint for such damage or injury shall present it as a claim against the state under the provisions of chapter 53.

Sec. 58. Section 32-47a of the 2010 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Not later than January first in each year, [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority shall submit a business plan containing a summary of its projected operations for the year 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. Not later than November first, annually, the [corporation] authority shall submit a report to the Commissioner of Economic and Community Development, the Auditors of Public Accounts and said joint standing committees, which shall include the following information with respect to new and outstanding financial assistance provided by the [corporation] authority during the twelve-month period ending on June thirtieth next preceding the date of the report for each financial assistance program administered by the [corporation] authority: (1) A list of the names, addresses and locations of all recipients of such assistance, (2) for each such recipient: (A) The business activities, (B) the Standard Industrial Classification Manual codes, (C) the gross revenues during the recipient's most recent fiscal year, if the recipient is an organization that makes such information public in the normal course of business, or, if the recipient does not make such information public in the normal course of business, the gross revenue information shall be provided for a recipient separately, using a system in which no recipient is listed by name but each is given a separate identity in a manner consistent with the provisions of subsection (c) of section 32-40, as amended by this act, (D) the number of employees at the time of application, (E) whether the recipient is a minority or woman-owned business, (F) a summary of the terms and conditions for the assistance, including the type and amount of state financial assistance, job creation or retention requirements, and anticipated wage rates, and (G) the amount of investments from private and other nonstate sources that have been leveraged by the assistance, (3) the economic benefit criteria used in determining which applications have been approved or disapproved, and (4) for each recipient of assistance on or after July 1, 1991, a comparison between the number of jobs to be created, the number of jobs to be retained and the average wage rates for each such category of jobs, as projected in the recipient's application, versus the actual number of jobs created, the actual number of jobs retained and the average wage rates for each such category. The Governor and the chairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and commerce may, after a request to [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority by any of said persons, examine, in confidence, the detailed data, including the specific revenue data for each identifiable business, submitted pursuant to subparagraph (C) of subdivision (2) of this section. The chairpersons and ranking members of said committees may disclose such data to the members of said committees, who shall also keep such data confidential. The report shall also indicate the actual number of full-time jobs and the actual number of part-time jobs in each such category and the benefit levels for each such subcategory. The November first report shall include a summary of the activities of the [corporation] authority, including all activities to assist small businesses and minority business enterprises, as defined in section 4a-60g, a complete operating and financial statement and recommendations for legislation to promote the purposes of the [corporation] authority. The [corporation] authority shall furnish such additional information upon the written request of any such committee at such times as the committee may request.

Sec. 59. Section 32-477 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The board of directors of the [Connecticut Development Authority] Connecticut Economic Innovations Authority 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, as amended by this act, 32-23x, as amended by this act, 32-23gg to 32-23ll, inclusive, 32-23z, as amended by this act, 32-23pp to 32-23ss, inclusive, as amended by this act, and section 32-341, as amended by this act, 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.

Sec. 60. Section 10a-25b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) The State Bond Commission may authorize the issuance of bonds of the state in one or more series in accordance with the provisions of sections 10a-25a to 10a-25g, inclusive, as amended by this act, but not in excess of the aggregate amount of twenty-two million five hundred thousand dollars.

(b) The proceeds of the sale of said bonds, to the extent hereinafter stated, shall be used to encourage, promote, develop and assist high technology products and programs within Connecticut by infusion of financial assistance in situations when such financial aid would not otherwise reasonably be available from other sources as hereinafter stated: (1) For the State Board of Education: High technology equipment for programs in the vocational-technical schools, not exceeding two million dollars; (2) for [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority: (A) Matching funds for cooperative high technology research and development projects and programs, not exceeding nine million dollars; (B) financial aid, as defined in subdivision [(4)] (3) of section 32-34, as amended by this act, to public institutions of higher education for high technology projects and programs, not exceeding eleven million five hundred thousand dollars.

Sec. 61. Section 10a-25g of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Through [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority the state may provide financial aid, as defined in subdivision [(4)] (3) of section 32-34, as amended by this act, for the development of high technology projects and programs in accordance with the provisions of subdivision (2) of subsection (b) of section 10a-25b. Such funding shall be made in accordance with written procedures adopted by [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority in accordance with the provisions of section 1-121. [Until June 30, 1996, Connecticut Innovations, Incorporated may use not more than three per cent of the total amount of any annual bond allocation for high technology projects and programs described in section 10a-25b or this section, for the administration and evaluation of such projects and programs.]

Sec. 62. Section 32-41 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The State Bond Commission shall have power in accordance with the provisions of section 3-20 to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate forty-seven million eight hundred fifty-four thousand nine hundred dollars to carry out the purposes of sections 32-32 to 32-41, inclusive, as amended by this act. The principal and interest of said bonds shall be payable at such place or places as may be determined by the State Treasurer and shall bear such date or dates, mature at such time or times, bear interest at such rate or different or varying rates, be payable at such time or times, be in such denominations, be in such form with or without interest coupons attached, carry such registration and transfer privileges, be payable in such medium of payment and be subject to such terms of redemption with or without premium as, irrespective of the provisions of said section 3-20, may be provided by the authorization of the State Bond Commission or fixed in accordance therewith. The proceeds of the sale of such bonds, after deducting therefrom all expenses of issuance and sale, shall be paid to the Connecticut Innovations [, Incorporated] Fund created under section 32-41a, as amended by this act. When the State Bond Commission has acted to issue such bonds or a portion thereof, the Treasurer may, pending the issue of such bonds, issue, in the name of the state, temporary notes in anticipation of the money to be received from the sale of such bonds. In issuing the bonds authorized hereunder, the State Bond Commission may require repayment of such bonds by the corporation as shall seem desirable consistent with the purposes of sections 32-32 to 32-41, inclusive, as amended by this act. Such terms for repayment may include a forgiveness of interest, a holiday in the repayment of interest or principal or both.

Sec. 63. Subsection (f) of section 4-66a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(f) The Secretary of the Office of Policy and Management is authorized to do all things necessary to apply for and accept federal funds allotted or available to the state under any federal act or program which could support activities which the secretary is authorized to undertake. He shall administer such funds in accordance with state and federal law. The secretary, in consultation with the executive director of [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority or the Commissioner of Economic and Community Development, when applicable, may apply for all federal funds available to the state for defense conversion projects and other projects consistent with a defense conversion strategy.

Sec. 64. Subdivision (42) of section 8-250 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(42) To accept from the department: (A) Financial assistance, (B) revenues or the right to receive revenues with respect to any program under the supervision of the department, and (C) loan assets or equity interests in connection with any program under the supervision of the department; to make advances to and reimburse the department for any expenses incurred or to be incurred by it in the delivery of such assistance, revenues, rights, assets, interests or amounts; to enter into agreements with the department for the delivery of services by the authority in consultation with the department [,] and the [Connecticut Development Authority and Connecticut Innovations, Incorporated,] Connecticut Economic Innovations Authority to third parties which agreements may include provisions for payment by the department to the authority for the delivery of such services; and to enter into agreements with the department or with the [Connecticut Development Authority or Connecticut Innovations, Incorporated,] Connecticut Economic Innovations Authority for the sharing of assistants, agents and other consultants, professionals and employees, and facilities and other real and personal property used in the conduct of the authority's affairs;

Sec. 65. Section 16-245n of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) For purposes of this section, "renewable energy" means solar photovoltaic energy, solar thermal, geothermal energy, wind, ocean thermal energy, wave or tidal energy, fuel cells, landfill gas, hydropower that meets the low-impact standards of the Low-Impact Hydropower Institute, hydrogen production and hydrogen conversion technologies, low emission advanced biomass conversion technologies, alternative fuels, used for electricity generation including ethanol, biodiesel or other fuel produced in Connecticut and derived from agricultural produce, food waste or waste vegetable oil, provided the Commissioner of Environmental Protection determines that such fuels provide net reductions in greenhouse gas emissions and fossil fuel consumption, usable electricity from combined heat and power systems with waste heat recovery systems, thermal storage systems and other energy resources and emerging technologies which have significant potential for commercialization and which do not involve the combustion of coal, petroleum or petroleum products, municipal solid waste or nuclear fission.

(b) On and after July 1, 2004, the Department of Public Utility Control shall assess or cause to be assessed a charge of not less than one mill per kilowatt hour charged to each end use customer of electric services in this state which shall be deposited into the Renewable Energy Investment Fund established under subsection (c) of this section. Notwithstanding the provisions of this section, receipts from such charges shall be disbursed to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005, unless the department shall, on or before October 30, 2003, issue a financing order for each affected distribution company in accordance with sections 16-245e to 16-245k, inclusive, to sustain funding of renewable energy investment programs by substituting an equivalent amount, as determined by the department in such financing order, of proceeds of rate reduction bonds for disbursement to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005. The department may authorize in such financing order the issuance of rate reduction bonds that substitute for disbursement to the General Fund for receipts of both charges under this subsection and subsection (a) of section 16-245m and also may in its discretion authorize the issuance of rate reduction bonds under this subsection and subsection (a) of section 16-245m that relate to more than one electric distribution company. The department shall, in such financing order or other appropriate order, offset any increase in the competitive transition assessment necessary to pay principal, premium, if any, interest and expenses of the issuance of such rate reduction bonds by making an equivalent reduction to the charges imposed under this subsection, provided any failure to offset all or any portion of such increase in the competitive transition assessment shall not affect the need to implement the full amount of such increase as required by this subsection and sections 16-245e to 16-245k, inclusive. Such financing order shall also provide if the rate reduction bonds are not issued, any unrecovered funds expended and committed by the electric distribution companies for renewable resource investment through deposits into the Renewable Energy Investment Fund, provided such expenditures were approved by the department following August 20, 2003, and prior to the date of determination that the rate reduction bonds cannot be issued, shall be recovered by the companies from their respective competitive transition assessment or systems benefits charge except that such expenditures shall not exceed one million dollars per month. All receipts from the remaining charges imposed under this subsection, after reduction of such charges to offset the increase in the competitive transition assessment as provided in this subsection, shall be disbursed to the Renewable Energy Investment Fund commencing as of July 1, 2003. Any increase in the competitive transition assessment or decrease in the renewable energy investment component of an electric distribution company's rates resulting from the issuance of or obligations under rate reduction bonds shall be included as rate adjustments on customer bills.

(c) There is hereby created a Renewable Energy Investment Fund which shall be within [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority for administrative purposes only. The fund may receive any amount required by law to be deposited into the fund and may receive any federal funds as may become available to the state for renewable energy investments. Upon authorization of the Renewable Energy Investments Board established pursuant to subsection (d) of this section, [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority may use any amount in said fund for expenditures that promote investment in renewable energy sources in accordance with a comprehensive plan developed by it to foster the growth, development and commercialization of renewable energy sources, related enterprises and stimulate demand for renewable energy and deployment of renewable energy sources that serve end use customers in this state and for the further purpose of supporting operational demonstration projects for advanced technologies that reduce energy use from traditional sources. Such expenditures may include, but not be limited to, reimbursement for services provided by the administrator of the fund including a management fee, disbursements from the fund to develop and carry out the plan developed pursuant to subsection (d) of this section, grants, direct or equity investments, contracts or other actions which support research, development, manufacture, commercialization, deployment and installation of renewable energy technologies, and actions which expand the expertise of individuals, businesses and lending institutions with regard to renewable energy technologies.

(d) There is hereby created a Renewable Energy Investments Board to act on matters related to the Renewable Energy Investment Fund, including, but not limited to, development of a comprehensive plan and expenditure of funds. The Renewable Energy Investments Board shall, in such plan, give preference to projects that maximize the reduction of federally mandated congestion charges. The Renewable Energy Investments Board shall make a draft of the comprehensive plan available for public comment for not less than thirty days. The board shall conduct three public hearings in three different regions of the state on the draft comprehensive plan and shall include a summarization of all public comments received at said public hearings in the final comprehensive plan approved by the board. The board shall provide a copy of the comprehensive plan, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and commerce. The Department of Public Utility Control shall, in an uncontested proceeding, during which the department may hold a public hearing, approve, modify or reject the comprehensive plan prepared pursuant to this subsection.

(e) The Renewable Energy Investments Board shall include not more than fifteen individuals with knowledge and experience in matters related to the purpose and activities of the Renewable Energy Investment Fund. The board shall consist of the following members: (1) One person with expertise regarding renewable energy resources appointed by the speaker of the House of Representatives; (2) one person representing a state or regional organization primarily concerned with environmental protection appointed by the president pro tempore of the Senate; (3) one person with experience in business or commercial investments appointed by the majority leader of the House of Representatives; (4) one person representing a state or regional organization primarily concerned with environmental protection appointed by the majority leader of the Senate; (5) one person with experience in business or commercial investments appointed by the minority leader of the House of Representatives; (6) the Commissioner of Emergency Management and Homeland Security or the commissioner's designee; (7) one person with expertise regarding renewable energy resources appointed by the Governor; (8) two persons with experience in business or commercial investments appointed by the board of directors of [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority; (9) a representative of a state-wide business association, manufacturing association or chamber of commerce appointed by the minority leader of the Senate; (10) the Consumer Counsel; (11) the Secretary of the Office of Policy and Management or the secretary's designee; (12) the Commissioner of Environmental Protection or the commissioner's designee; (13) a representative of organized labor appointed by the Governor; and (14) a representative of residential customers or low-income customers appointed by Governor. On a biennial basis, the board shall elect a chairperson and vice-chairperson from among its members and shall adopt such bylaws and procedures it deems necessary to carry out its functions. The board may establish committees and subcommittees as necessary to conduct its business.

(f) The board shall issue annually a report to the Department of Public Utility Control reviewing the activities of the Renewable Energy Investment Fund in detail and shall provide a copy of such 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 energy and commerce and the Office of Consumer Counsel. The report shall include a description of the programs and activities undertaken during the reporting period jointly or in collaboration with the Energy Conservation and Load Management Funds established pursuant to section 16-245m.

(g) There shall be a joint committee of the Energy Conservation Management Board and the Renewable Energy Investments Board, as provided in subdivision (2) of subsection (d) of section 16-245m.

(h) No later than December 31, 2006, and no later than December thirty-first every five years thereafter, the board shall, after consulting with the Energy Conservation Management Board, conduct an evaluation of the performance of the programs and activities of the fund and submit a report, in accordance with the provisions of section 11-4a, of the evaluation to the joint standing committees of the General Assembly having cognizance of matters relating to energy and commerce.

Sec. 66. Section 16-245aa of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is established an account to be known as the "municipal renewable energy and efficient energy grant account", which shall be a separate, nonlapsing account within the Renewable Energy Investment Fund, established pursuant to section 16-245n, as amended by this act. The account shall contain any moneys required or permitted by law to be deposited in the account and any funds received from any public or private contributions, gifts, grants, donations, bequests or devises to the fund. [Connecticut Innovations, Incorporated,] The Connecticut Economic Innovations Authority may make grants-in-aid from the fund in accordance with the provisions of subsection (b) of this section.

(b) [Connecticut Innovations, Incorporated] The Connecticut Economic Innovations Authority, in consultation with the Department of Public Utility Control, the Department of Education and the Department of Emergency Management and Homeland Security, shall establish a municipal renewable energy and efficient energy generation grant program. [Connecticut Innovations, Incorporated,] The Connecticut Economic Innovations Authority shall make grants under said program to municipalities for the purchase of (1) renewable energy sources, including solar energy, geothermal energy and fuel cells or other energy-efficient hydrogen-fueled energy, or (2) energy-efficient generation sources, including units providing combined heat-and-power operations with greater than sixty-five per cent efficiency or such higher efficiency level as [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority may prescribe, for municipal buildings. [Connecticut Innovations, Incorporated,] The Connecticut Economic Innovations Authority shall give priority to applications for grants for disaster relief centers and high schools. Each grant shall be in an amount that makes the cost of purchasing and operating the renewable energy or energy-efficient generation source competitive with the municipality's current electricity expenses.

(c) [On or before October 1, 2007, Connecticut Innovations, Incorporated,] The Connecticut Economic Innovations Authority shall develop an application for grants-in-aid under this section for the purpose of purchasing and operating renewable energy or energy-efficient generation sources and may receive applications from municipalities for such grants-in-aid on and after said date. Applications shall include, but not be limited to, a complete description of the proposed renewable energy or energy-efficient generation source.

(d) Commencing with the fiscal year ending June 30, 2008, and for each of the five consecutive fiscal years thereafter, until the fiscal year ending June 30, 2012, not less than ten million dollars shall be available from the municipal renewable energy and efficient energy generation grant account for grants-in-aid to municipalities for the purpose of purchasing and operating renewable energy or energy-efficient generation sources. Any balance of such amount not used for such grants-in-aid during a fiscal year shall be carried forward for the fiscal year next succeeding for such grants-in-aid.

(e) On or before January 1, [2009] 2011, and annually thereafter, [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority shall report on the effectiveness of said program to the joint standing committee of the General Assembly having cognizance of matters relating to energy.

Sec. 67. Subsection (b) of section 16-245bb of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Sec. 68. Subsection (b) of section 16a-38p of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority for the purpose of funding the net project costs, or the balance of any projects after applying any public or private financial incentives available, for any renewable energy or combined heat and power projects in state buildings. The funds shall be made available through the Renewable Energy Investment Fund, established pursuant to section 16-245n, as amended by this act. Eligible state buildings shall be Leadership in Energy and Environmental Design (LEED) certified or in the process of becoming LEED certified or in the process of becoming LEED silver rating certified or receive a two-globe rating in the green Globes USA design program or in the process of receiving a two-globe rating in the Green Globes USA design program.

Sec. 69. Subsection (f) of section 19a-32f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(f) [Connecticut Innovations, Incorporated] The Connecticut Economic Innovations Authority shall serve as administrative staff of the committee and shall assist the committee in (1) developing the application for the grants-in-aid authorized under subsection (e) of this section, (2) reviewing such applications, (3) preparing and executing any assistance agreements or other agreements in connection with the awarding of such grants-in-aid, and (4) performing such other administrative duties as the committee deems necessary.

Sec. 70. Subsection (a) of section 31-11aa of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) The Connecticut Employment and Training Commission within the Office of Workforce Competitiveness shall produce, within available appropriations, a report on information technology workforce development, including a long-range strategic plan, that addresses Connecticut's workforce and research needs as they relate to information technology and electronic commerce. The commission shall work with the Commissioners of Economic and Community Development, Education and Higher Education and any business-related association or organization that the commission deems appropriate in creating a planning structure, no later than July 5, 2000, to develop the plan. The planning structure shall include representation from the Connecticut Employment and Training Commission, the General Assembly, the Departments of Education, Higher Education and Economic and Community Development, [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority, information technology and software companies, the Connecticut Business and Industry Association, the Connecticut Economic Resource Center, the Connecticut Technology Council, The University of Connecticut, the Connecticut State University System, the community-technical colleges, Charter Oak State College, the Connecticut Distance Learning Consortium, the Connecticut Conference of Independent Colleges and any other representatives including regional and state-wide business and technology associations the Connecticut Employment and Training Commission and commissioners deem necessary.

Sec. 71. Section 32-1e of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) The Commissioner of Economic and Community Development, in consultation with the Connecticut Resources Recovery Authority and the Commissioner of 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 Connecticut Resources Recovery Authority and agencies such as the Department of Environmental Protection [, the Connecticut Development Authority and Connecticut Innovations, Incorporated] and the Connecticut Economic Innovations Authority will be used to promote such industries.

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

Sec. 72. Section 32-1k of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in sections 8-244b to 8-244d, inclusive, this section and section 32-1l, as amended by this act, 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;

[(3) "CDA" means the Connecticut Development Authority, as created under chapter 579;]

[(4)] (3) "CHFA" means the Connecticut Housing Finance Authority, as created under chapter 134; and

[(5) "CII" means Connecticut Innovations, Incorporated, as created under chapter 581; and]

[(6)] (4) "SHA" means the State Housing Authority as created under section 8-244b.

Sec. 73. Section 32-4h of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Not later than August 1, 1997, and annually thereafter, the [chairperson of the board of directors of the Connecticut Development Authority and the chairperson of the board of directors of Connecticut Innovations, Incorporated] executive director of the Connecticut Economic Innovations Authority 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.]

Sec. 74. Section 32-6k of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) Prior to entering into a grant, loan or assistance agreement for any project which is a major traffic generator within the meaning of section 14-311, the Commissioner of Economic and Community Development and the executive [directors of the Connecticut Development Authority and Connecticut Innovations, Incorporated] director of the Connecticut Economic Innovations Authority, as the case may be, shall submit an impact statement for each such project to the Connecticut Transportation Strategy Board, established pursuant to section 13b-57e. Each impact statement shall (1) describe the project and its expected impact on the transportation system, (2) summarize whether or not such project conforms to the strategy adopted in accordance with section 13b-57g, and (3) include any other information the board may require to discharge its responsibilities under this subsection including, but not limited to, (A) the size of any facility proposed in connection with the project, (B) the hours of operation of such facility, (C) a projection of whether or not an increase in daily vehicle trips including truck traffic is likely to occur as a result of such project, and (D) the availability of public transportation to and from such facility. The board shall evaluate each such impact statement to determine whether such project conforms to such strategy and shall submit to said commissioner and executive [directors] director any findings and recommendations with respect to such project. Nothing in this subsection shall be construed as requiring any delay in the implementation of any such project.

(b) The board shall, subject to the requirements of chapter 14, protect confidential information and trade secrets provided in connection with the review of any project pursuant to subsection (a) of this section.

Sec. 75. Section 32-41v of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) As used in this section:

(1) ["Corporation"] "Authority" means [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority; and

(2) "Fund" means the Connecticut New Opportunities Fund.

(b) [Connecticut Innovations, Incorporated] The Connecticut Economic Innovations Authority shall establish a fund to be known as the Connecticut New Opportunities Fund, for the purpose of investing in seed stage and emerging growth companies in the state. The [corporation] authority, or a subsidiary created by the [corporation] authority for the purposes of this section, shall serve as general partner or managing member of the fund and shall determine whether the fund should be organized as a limited partnership or a limited liability company. The general partner or managing member of the fund shall be reimbursed from the fund for its management costs, which shall not exceed two per cent, annually, of the committed capital of the fund.

(c) Investors in the fund may include pension funds, foundations and private entities. Such investors shall participate as limited partners or nonmanaging members of the fund. The committed capital of the fund shall not exceed fifty million dollars.

(d) The moneys in the fund shall be invested as follows: (1) Not more than twenty-five per cent in seed stage companies, and (2) not more than seventy-five per cent in not more than twenty emerging growth companies. Not more than three million dollars shall be invested in any single seed stage or emerging growth company. Fund investments shall be in the form of equity or similar instruments. An emerging growth company may be eligible for an investment if the company projects high growth, has a strong management team, has current and prospective customers, has had difficulty raising early stage venture capital and is a strong market driver but is facing entry barriers.

(e) The fund shall have a term of ten years, provided it may be extended for three one-year periods if necessary to complete liquidation of the fund's investments. Upon such liquidation, each investor shall be entitled to a return of the investment made, plus eighty per cent of all net realized gains of the fund. The state shall provide a first loss guarantee at the end of the tenth year, if needed, of not more than twenty-five million dollars. The state shall be entitled to ten per cent of all net realized gains of the fund and the general partner or managing member of the fund shall also be entitled to ten per cent of all such net realized gains.

Sec. 76. Section 32-41w of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is established an early-stage venture capital program to be administered by [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority to provide preseed financing, seed financing, start-up financing, early or first-stage financing and expansion financing to companies in the state.

(b) In support of the program established in subsection (a) of this section, the [corporation] authority shall establish criteria for awarding such financing and shall develop and implement a plan to market the program.

(d) Funds provided for this section shall be allocated as follows: (1) Not less than five per cent for preseed financing; (2) not less than ten per cent for seed financing; (3) not less than ten per cent for start-up financing; (4) not less than fifteen per cent for early or first stage financing; and (5) not less than forty per cent and not more than sixty per cent on expansion financing, as such terms are defined in section 32-34, as amended by this act. The [corporation] authority shall use not more than three per cent of such funds for administration and marketing of such financial aid.

(e) The [corporation] authority shall adopt procedures, pursuant to section 1-121, to implement the provisions of this section.

Sec. 77. Section 32-344 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in this section and sections 32-345 and 32-346:

(1) "Business-led consortium" means a coalition or other group of entities, related by contractual or other arrangements, that (A) includes at least one Connecticut business and may include other businesses and nonprofit or public institutions, and (B) is led by a business for the purpose of technology development or commercialization;

(2) ["Corporation"] "Authority" means [Connecticut Innovations, Incorporated, as created under section 32-35] the Connecticut Economic Innovations Authority established pursuant to section 2 of this act;

(3) "Small business" means a corporation, limited liability company, partnership, sole proprietorship or individual, operating a business for profit, which employs five hundred or fewer employees, including employees employed in any subsidiary or affiliated corporation;

(4) "Small business innovation research program" means the federal program established pursuant to the Small Business Innovation Development Act of 1982 (P.L. 97-219), as amended, which provides funds to small businesses to conduct innovative research which has potential commercial applications;

(5) "Small business technology transfer program" means the federal program established pursuant to the Small Business Research and Development Enhancement Act of 1992 (P.L. 102-564), as amended, which provides funds to small businesses that collaborate with nonprofit research institutions to conduct innovative research which has potential commercial applications;

(6) "Federal technology support program" means any program now or hereafter established by the government of the United States of America or any agency or instrumentality thereof, other than the small business innovation research program and small business technology transfer program that (A) is authorized to provide funding support for projects undertaken by businesses and business-led consortia for the development or commercialization of advanced technologies, including without limitation technologies applied or applicable to national defense, and (B) requires recipients to furnish a portion of the funds necessary to carry out such activities;

(7) "Micro business" means a business entity, including its affiliates, that (A) is independently owned and operated, and (B) employs fewer than fifty full-time employees or has gross annual sales of less than five million dollars.

Sec. 78. Subsection (e) of section 32-356 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(e) (1) There is established a Small Business Incubator Advisory Board. Said board shall consist of: (A) The Commissioner of Economic and Community Development; (B) the [president of the Connecticut Development Authority and the] executive director of [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority, or the executive director's designee, as an ex-officio nonvoting [members, or their designees] member; (C) one member to be appointed by the Governor; (D) two members with experience in the field of technology transfer and commercialization, to be appointed by the speaker of the House of Representatives; (E) two members with experience in new product and market development, to be appointed by the president pro tempore of the Senate; (F) one member to be appointed by the majority leader of the Senate; (G) one member to be appointed by the majority leader of the House of Representatives; (H) one member with experience in seed and early stage capital investment, to be appointed by the minority leader of the House of Representatives; and (I) one member with experience in seed and early stage capital investment, to be appointed by the minority leader of the Senate. All initial appointments to said board shall be made not later than September 1, 2007.

(2) The Commissioner of Economic and Community Development shall schedule the first meeting of said board not later than October 15, 2007. Thereafter, the board shall meet at least once annually to evaluate and recommend changes to the guidelines adopted pursuant to this section.

Sec. 79. Section 32-450 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in sections 32-450 to 32-457, inclusive, as amended by this act:

(1) "Awarding authority" means the Commissioner of Economic and Community Development [,] and the board of directors of the [Connecticut Development Authority and the board of directors of Connecticut Innovations, Incorporated] Connecticut Economic Innovations Authority.

(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.

Sec. 80. Section 32-462 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) As used in this section:

(1) "Agency" means the Department of Economic and Community Development [, the Connecticut Development Authority] or [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority.

(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.

Sec. 81. Section 32-478 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The board of directors of [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority 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, as amended by this act, 32-345 and 32-346, to the extent consistent with any state or regional economic development strategy.

Sec. 82. Section 32-479 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

[Not later than July 1, 1996, the] The Commissioner of Economic and Community Development, the Labor Commissioner [, the Connecticut Development Authority and Connecticut Innovations, Incorporated] and the Connecticut Economic Innovations Authority 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 [, the Connecticut Development Authority] and [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority 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.

Sec. 83. Section 32-480 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The Department of Economic and Community Development, the Labor Department [, the Connecticut Development Authority] and [Connecticut Innovations, Incorporated] the Connecticut Economic Innovations Authority 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.

Sec. 84. Section 32-700 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in sections 32-701 to 32-703, inclusive, as amended by this act, and this section:

(1) "Awarding authority" means the Commissioner of Economic and Community Development, the board of directors of the [Connecticut Development Authority, the board of directors of Connecticut Innovations, Incorporated,] Connecticut Economic Innovations Authority and the head of any other quasi-public agency, as defined in section 1-120, as amended by this act, 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.

Sec. 85. Subsection (a) of section 32-701 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(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 [, Connecticut Development Authority] and [Connecticut Innovations, Incorporated,] the Connecticut Economic Innovations Authority 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 any type of state assistance, except grants and loans of a term of less than one year, provide the agency with appropriate security 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.

Sec. 86. Section 32-717 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) The Commissioner of Economic and Community Development, [the chairperson of Connecticut Innovations, Incorporated,] the president of The University of Connecticut and the [chairperson of the Connecticut Development Authority] executive director of the Connecticut Economic Innovations Authority, or their respective designees, shall prepare, within available appropriations, and in consultation with the Governor's Competitiveness Council, the Commissioner of Education, the Commissioner of Higher Education, the chancellor of the community-technical college system, the director of the Office of Workforce Competitiveness and any other agencies and leading technology-focused organizations deemed appropriate by the Commissioner of Economic and Community Development, recommendations for an implementation plan and budget to establish an Innovation Network that will include the following: (1) The creation of endowed chairs and the hiring of leading academic professionals in targeted fields based on core competencies to work at universities, state colleges and community colleges, in collaboration with other technology initiatives; (2) the focused and aggressive solicitation of and leveraged partnership with federal research funds; (3) increased corporate-sponsored research; (4) the establishment of at least one innovation accelerator, linked to universities and involving corporations and start-up enterprises focused on advanced technology and leveraging the efforts underway by the Connecticut Center for Advanced Technology in the Hartford area; (5) the strengthening of technology transfer and entrepreneurship activities at universities in the state; (6) incentives and financial support for collaborative research between universities and industry or federally sponsored technology centers; (7) the creation of linkages to angel networks; and (8) the creation of linkages to incubators in Connecticut. Said plan shall also include provisions for the utilization of existing resources, including, but not limited to, [Connecticut Innovations, Incorporated, the Connecticut Development Authority] the Connecticut Economic Innovations Authority, The University of Connecticut and the Office of Workforce Competitiveness.

(b) Not later than January 1, 2006, the Commissioner of Economic and Community Development, in consultation with [the chairperson of Connecticut Innovations, Incorporated,] the president of The University of Connecticut and the [chairperson of the Connecticut Development Authority] executive director of the Connecticut Economic Innovations Authority, shall develop an implementation plan for the Innovation Network, within available resources, and submit said plan and budget to the Governor and the joint standing committees of the General Assembly having cognizance of matters relating to economic development, education and labor, in accordance with the provisions of section 11-4a.

Sec. 87. Section 32-718 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The Department of Economic and Community Development, [Connecticut Innovations, Incorporated,] The University of Connecticut, the [Connecticut Development Authority] Connecticut Economic Innovations Authority and the Office of Workforce Competitiveness may use up to ten million dollars of their existing resources for plan implementation and to provide a catalyst for an additional forty million dollars of private investment. The plan for how these funds will be applied and how they will leverage the private money shall be presented to and approved by the State Bond Commission.

Sec. 88. Subsection (d) of section 8-192 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(d) For the purposes of carrying out or administering a specified development plan authorized under this chapter, the [Connecticut Development Authority] Connecticut Economic Innovations Authority may, upon a resolution with respect to such project adopted by the legislative body of the municipality, issue and administer bonds which are payable solely or in part from and secured by the pledge and security provided for in subsection (a) of this section subject to the general terms and provisions of law applicable to the issuance of bonds by the [Connecticut Development Authority] Connecticut Economic Innovations Authority, except that the provisions of subsection (b) of section 32-23j shall not apply. For purposes of this section and section 8-192a, as amended by this act, references to the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall include any subsidiary of the [Connecticut Development Authority established pursuant to subsection (l) of section 32-11a] Connecticut Economic Innovations Authority.

Sec. 89. Section 8-192a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Any development plan authorized under this chapter or any proceedings authorizing the issuance of bonds under this chapter may contain a provision that taxes, if any, identified in such plan or such authorizing proceeding and levied upon taxable real or personal property, or both, in a development project each year or payments in lieu of such taxes authorized pursuant to chapter 114, or both, by or for the benefit of any one or more municipalities, districts or other public taxing agencies after adoption of the development plan as provided by section 8-191 or such authorizing proceedings, as the case may be, shall be divided as follows: (a) In each fiscal year that portion of the taxes or payments in lieu of taxes, or both, which would be produced by applying the then current tax rate of each of the taxing agencies to the total sum of the assessed value of the taxable property in the development project on the effective date of such adoption or the date of such authorizing proceedings, as the case may be, or on any date between such two dates which is identified in such proceedings, shall be allocated to and when collected shall be paid into the funds of the respective taxing agencies in the same manner as taxes by or for said taxing agencies on all other property are paid; and (b) that portion of the assessed taxes or the payments in lieu of taxes, or both, each fiscal year in excess of the amount referred to in subdivision (a) of this section shall be allocated to and when collected shall be paid into a special fund of the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority as issuer of such bonds to be used in each fiscal year, first to pay the principal of and interest due in such fiscal year on loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, incurred by such municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority as issuer of such bonds to finance or refinance in whole or in part, such development project, and then, at the option of the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority as issuer of such bonds, to purchase bonds issued for the project which has generated the tax increments or payments in lieu of taxes and then, at the option of the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority as issuer of such bonds, to reimburse the provider of or reimbursement party with respect to any guarantee, letter of credit, policy of bond insurance, funds deposited in a debt service reserve fund, funds deposited as capitalized interest or other credit enhancement device used to secure payment of debt service on any bonds, notes or other indebtedness issued pursuant to section 8-192, as amended by this act, to finance or refinance such development project, to the extent of any payments of debt service made therefrom. Unless and until the total assessed valuation of the taxable property in a development project exceeds the total assessed value of the taxable property in such project as shown by the last assessment list referred to in subdivision (a) of this section, all of the taxes levied and collected and all of the payments in lieu of taxes due and collected upon the taxable property in such development project shall be paid into the funds of the respective taxing agencies. When such loans, advances, and indebtedness, if any, and interest thereon, and such debt service reimbursement to the provider of or reimbursement party with respect to such credit enhancement, have been paid in full, all moneys thereafter received from taxes or payments in lieu of taxes, or both, upon the taxable property in such development project shall be paid into the funds of the respective taxing agencies in the same manner as taxes on all other property are paid.

Sec. 90. Subsection (b) of section 8-240m of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(b) The [Connecticut Development Authority] Connecticut Economic Innovations Authority may provide financial assistance, including, without limitation, financial assistance in the form of grants, loans and the purchase of capital stock, for the program established pursuant to subsection (a) of section 8-240k, upon the execution of a financial assistance agreement containing such terms and conditions as the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall deem necessary and appropriate to fulfill the purposes of sections 8-240k to 8-240n, inclusive.

Sec. 91. Section 13b-79w of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The [Connecticut Development Authority] Connecticut Economic Innovations Authority is authorized to make loans, on such terms and subject to such conditions as it determines, to (1) support transit-oriented development projects, as defined in section 13b-79o; and (2) encourage the development and use of port and rail freight facilities and services, including trackage and related infrastructure.

Sec. 92. Section 16-243v of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) For purposes of this section: (1) "Connecticut electric efficiency partner program" means the coordinated effort among the Department of Public Utility Control, persons and entities providing enhanced demand-side management technologies, and electric consumers to conserve electricity and reduce demand in Connecticut through the purchase and deployment of energy efficient technologies; (2) "enhanced demand-side management technologies" means demand-side management solutions, customer-side emergency dispatchable generation resources, customer-side renewable energy generation, load shifting technologies and conservation and load management technologies that reduce electric distribution company customers' electric demand, and high efficiency natural gas and oil boilers and furnaces; and (3) "Connecticut electric efficiency partner" means an electric distribution company customer who acquires an enhanced demand-side management technology or a person, other than an electric distribution company, that provides enhanced demand-side management technologies to electric distribution company customers.

(b) The Energy Conservation Management Board, in consultation with the Renewable Energy Investments Advisory Committee, shall evaluate and approve enhanced demand-side management technologies that can be deployed by Connecticut electric efficiency partners to reduce electric distribution company customers' electric demand. Such evaluation shall include an examination of the potential to reduce customers' demand, federally mandated congestion charges and other electric costs. On or before October 15, 2007, the Energy Conservation Management Board shall file such evaluation with the Department of Public Utility Control for the department to review and approve or to review, modify and approve on or before October 15, 2007.

(c) Not later than October 15, 2007, the Energy Conservation Management Board shall file with the department, for the department to review and approve or to review, modify and approve, an analysis of the state's electric demand, peak electric demand and growth forecasts for electric demand and peak electric demand. Such analysis shall identify the principal drivers of electric demand and peak electric demand, associated electric charges tied to electric demand and peak electric demand growth, including, but not limited to, federally mandated congestion charges and other electric costs, and any other information the department deems appropriate. The analysis shall include, but not be limited to, an evaluation of the costs and benefits of the enhanced demand-side management technologies approved pursuant to subsection (b) of this section and establishing suggested funding levels for said individual technologies.

(d) Commencing April 1, 2008, any person may apply to the department for certification and funding as a Connecticut electric efficiency partner. Such application shall include the technologies that the applicant shall purchase or provide and that have been approved pursuant to subsection (b) of this section. In evaluating the application, the department shall (1) consider the applicant's potential to reduce customers' electric demand, including peak electric demand, and associated electric charges tied to electric demand and peak electric demand growth, (2) determine the portion of the total cost of each project that shall be paid for by the customer participating in this program and the portion of the total cost of each project that shall be paid for by all electric ratepayers and collected pursuant to subsection (h) of this section. In making such determination, the department shall ensure that all ratepayer investments maintain a minimum two-to-one payback ratio, and (3) specify that participating Connecticut electric efficiency partners shall maintain the technology for a period sufficient to achieve such investment payback ratio. The annual ratepayer contribution for projects approved pursuant to this section shall not exceed sixty million dollars. Not less than seventy-five per cent of such annual ratepayer investment shall be used for the technologies themselves. No person shall receive electric ratepayer funding pursuant to this subsection if such person has received or is receiving funding from the Energy Conservation and Load Management Funds for the projects included in said person's application. No person shall receive electric ratepayer funding without receiving a certificate of public convenience and necessity as a Connecticut electric efficiency partner by the department. The department may grant an applicant a certificate of public convenience if it possesses and demonstrates adequate financial resources, managerial ability and technical competency. The department may conduct additional requests for proposals from time to time as it deems appropriate. The department shall specify the manner in which a Connecticut electric efficiency partner shall address measures of effectiveness and shall include performance milestones.

(e) Beginning February 1, 2010, a certified Connecticut electric efficiency partner may only receive funding if selected in a request for proposal developed, issued and evaluated by the department. In evaluating a proposal, the department shall take into consideration the potential to reduce customers' electric demand including peak electric demand, and associated electric charges tied to electric demand and peak electric demand growth, including, but not limited to, federally mandated congestion charges and other electric costs, and shall utilize a cost benefit test established pursuant to subsection (c) of this section to rank responses for selection. The department shall determine the portion of the total cost of each project that shall be paid by the customer participating in this program and the portion of the total cost of each project that shall be paid by all electric ratepayers and collected pursuant to the provisions of this subsection. In making such determination, the department shall (1) ensure that all ratepayer investments maintain a minimum two-to-one payback ratio, and (2) specify that participating Connecticut electric efficiency partners shall maintain the technology for a period sufficient to achieve such investment payback ratio. The annual ratepayer contribution shall not exceed sixty million dollars. Not less than seventy-five per cent of such annual ratepayer investment shall be used for the technologies themselves. No Connecticut electric efficiency partner shall receive funding pursuant to this subsection if such partner has received or is receiving funding from the Energy Conservation and Load Management Funds for such technology. The department may conduct additional requests for proposals from time to time as it deems appropriate. The department shall specify the manner in which a Connecticut electric efficiency partner shall address measures of effectiveness and shall include performance milestones.

(f) The department may retain the services of a third party entity with expertise in areas such as demand-side management solutions, customer-side renewable energy generation, customer-side distributed generation resources, customer-side emergency dispatchable generation resources, load shifting technologies and conservation and load management investments to assist in the development and operation of the Connecticut electric efficiency partner program. The costs for obtaining third party services pursuant to this subsection shall be recoverable through the systems benefits charge.

(g) The department shall develop a long-term low-interest loan program to assist certified Connecticut electric efficiency partners in financing the customer portion of the capital costs of approved enhanced demand-side management technologies. The department may establish such financing mechanism by the use of one or more of the following strategies: (1) Modifying the existing long-term customer-side distributed generation financing mechanism established pursuant to section 16-243j, (2) negotiating and entering into an agreement with the [Connecticut Development Authority] Connecticut Economic Innovations Authority to establish a credit facility or to utilize grants, loans or loan guarantees for the purposes of this section upon such terms and conditions as the authority may prescribe including provisions regarding the rights and remedies available to the authority in case of default, or (3) selecting by competitive bid one or more entities that can provide such long-term financing.

(h) The department shall provide for the payment of electric ratepayers' portion of the costs of deploying enhanced demand-side management technologies by implementing a contractual financing agreement with the [Connecticut Development Authority] Connecticut Economic Innovations Authority or a private financing entity selected through an appropriate open competitive selection process. No contractual financing agreements entered into with the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall exceed ten million dollars. Any electric ratepayer costs resulting from such financing agreement shall be recovered from all electric ratepayers through the systems benefits charge.

(i) On or before February 15, 2009, and annually thereafter, the department shall report to the joint standing committee of the General Assembly having cognizance of matters relating to energy regarding the effectiveness of the Connecticut electric efficiency partner program established pursuant to this section. Said report shall include, but not be limited to, an accounting of all benefits and costs to ratepayers, a description of the approved technologies, the payback ratio of all investments, the number of programs deployed and a list of proposed projects compared to approved projects and reasons for not being approved.

(j) On or before April 1, 2011, the Department of Public Utility Control shall initiate a proceeding to review the effectiveness of the program and perform a ratepayer cost-benefit analysis. Based upon the department's findings in the proceeding, the department may modify or discontinue the partnership program established pursuant to this section.

Sec. 93. Subparagraph (P) of subdivision (1) of section 22a-134 of the 2010 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(P) Any conveyance of an establishment to any entity created or operating under chapter 130 or 132, or to an urban rehabilitation agency, as defined in section 8-292, or to a municipality under section 32-224, or to the [Connecticut Development Authority] Connecticut Economic Innovations Authority or any subsidiary of the authority;

Sec. 94. Section 22a-173 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The [Connecticut Development Authority] Connecticut Economic Innovations Authority may, upon application of the proposed mortgagee, insure and make advance commitments to insure mortgage payments required by a first mortgage on new machinery, equipment and buildings for the primary purpose of reducing, controlling or eliminating air pollution, certified as approved for such purpose by the Commissioner of Environmental Protection, upon such terms and conditions as the [Connecticut Development Authority] Connecticut Economic Innovations Authority may prescribe in accordance with the provisions of chapter 579.

Sec. 95. Section 22a-259 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The following are declared to be policies of the state of Connecticut: (1) That maximum resources recovery from solid waste and maximum recycling and reuse of such resources in order to protect, preserve and enhance the environment of the state shall be considered environmental goals of the state; (2) that solid waste disposal and resources recovery facilities and projects are to be implemented either by the state of Connecticut or under state auspices, in furtherance of these goals; (3) that appropriate governmental structure, processes and support are to be provided so that effective state systems and facilities for solid waste management and large-scale resources recovery may be developed, financed, planned, designed, constructed and operated for the benefit of the people and municipalities of the state; (4) that private industry is to be utilized to the maximum extent feasible to perform planning, design, management, construction, operation, manufacturing and marketing functions related to solid waste disposal and resources recovery and to assist in the development of industrial enterprise based upon resources recovery, recycling and reuse; (5) that long-term negotiated contracts between the state and private persons and industries may be utilized as an incentive for the development of industrial and commercial enterprise based on resources recovery within the state; (6) that solid waste disposal services shall be provided for municipal and regional authorities and private persons in the state, at reasonable cost, by state systems and facilities where such services are considered necessary and desirable in accordance with the state-wide solid waste management plan and that any revenues received from the payment of the costs of such services otherwise from the operation of state systems and facilities shall be redistributed to the users of such services provided that the authority has determined that all contractual obligations related to such systems and facilities have been met and that such revenues are surplus and not needed to provide necessary support for such systems and facilities; (7) that provision shall be made for planning, research and development, and appropriate innovation in the design, management and operation of the state's systems and facilities for solid waste management, in order to permit continuing improvement and provide adequate incentives and processes for lowering operating and other costs; (8) that the authority established pursuant to this chapter shall have responsibility for implementing solid waste disposal and resources recovery systems and facilities and solid waste management services where necessary and desirable throughout the state in accordance with the state solid waste management plan and applicable statutes and regulations; (9) that actions and activities performed or carried out by the authority or its contractors in accordance with the provisions of this chapter shall be in conformity with the state solid waste management plan and with other applicable policies and regulations of the state, as promulgated from time to time in law and by action of the Department of Environmental Protection and the [Connecticut Development Authority] Connecticut Economic Innovations Authority; (10) that it being to the best interest of the state, municipalities, individual citizens and the environment to minimize the quantity of materials entering the waste stream that would require collection, transportation, processing, or disposal by any level of government, it is the intent of this legislation to promote the presegregation of recoverable or recyclable materials before they become mixed and included in the waste stream; and that this intent shall be reflected in the policy of the resources recovery authority and that no provision of this chapter or action of this authority shall either discourage or prohibit either voluntary or locally ordained solid waste segregation programs or the sale of such segregated materials to private persons, unless the authority has determined based upon a feasibility report filed with the applicable municipal authority that the reduced user fees charged to it should result in its total cost of solid waste management including user fees paid to the authority to be less without presegregation than with it; [,] and (11) that these policies and purposes are hereby declared to be in the public interest and the provisions of this chapter to be necessary and for the public benefit, as a matter of legislative determination.

Sec. 96. Section 22a-264 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The activities of the authority in providing or contracting to provide solid waste management services to the state, regions, municipalities and persons, in implementing the state resources recovery system and in planning, designing, financing, constructing, managing or operating solid waste facilities, including their location, size and capabilities, shall be in conformity with applicable statutes and regulations and with the state solid waste management plan as promulgated by the Commissioner of Environmental Protection. The authority shall have power to assist in the preparation, revision, extension or amendment of the state solid waste management plan, and the Department of Environmental Protection is hereby authorized to utilize, by contract or other agreement, the capabilities of the authority for the carrying out of such planning functions. The authority shall have power to revise and update, as may be necessary to carry out the purposes of this chapter, that portion of the state solid waste management plan defined as the "solid waste management system". To effect such revision and updating, the authority shall prepare an annual plan of operations which shall be reviewed by the Commissioner of Environmental Protection for consistency with the state solid waste management plan. Upon approval by the Commissioner of Environmental Protection and by a two-thirds vote of the authority's full board of directors, the annual plan of operations shall be promulgated. Any activities of the authority carried out to assist in the development of industry and commerce based upon the availability of recovered resources for recycling and reuse shall be coordinated to the extent practicable with plans and activities of the [Connecticut Development Authority] Connecticut Economic Innovations Authority with due consideration given to the secondary materials industries operating within the state of Connecticut.

Sec. 97. Subsection (c) of section 25-33a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(c) Each grant made pursuant to subsection (a) of this section shall be authorized by the [Connecticut Development Authority] Connecticut Economic Innovations Authority or, if the authority so determines, by a committee of the authority consisting of the chairman and either one other member of the authority or its executive director. The [Connecticut Development Authority] Connecticut Economic Innovations Authority shall charge reasonable application and other fees to be applied to the administrative expenses incurred in carrying out the provisions of this section, to the extent such expenses are not paid by the authority or from moneys appropriated to the department. Each such payment shall be made by the Treasurer upon certification by the Commissioner of Economic and Community Development that the payment is authorized under the provisions of this section under the applicable rules and regulations of the department, and under the terms and conditions established by the authority or the duly appointed committee thereof in authorizing the making of the grant.

Sec. 98. Subsection (a) of section 32-1o of the 2010 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) On or before July 1, 2009, and every five years thereafter, the Commissioner of Economic and Community Development, within available appropriations, shall prepare an economic strategic plan for the state in consultation with the Secretary of the Office of Policy and Management, the Commissioners of Environmental Protection and Transportation, the Labor Commissioner, the executive directors of the Connecticut Housing Finance Authority, the [Connecticut Development Authority, the Connecticut Innovations, Inc., the Commission on Culture and Tourism] Connecticut Economic Innovations Authority and the Connecticut Health and Educational Facilities Authority, and the president of the Office of Workforce Competitiveness, or their respective designees, and any other agencies the Commissioner of Economic and Community Development deems appropriate.

Sec. 99. Section 32-5a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The Commissioner of Economic and Community Development and the board of directors of the [Connecticut Development Authority] Connecticut Economic Innovations Authority 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 authority to any business organization, 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, 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 the operations of a business in its entirety or of any division of a business which 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.

Sec. 100. Section 32-6j of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

In the assessment and provision of job training for employers, the Commissioner of Economic and Community Development and the executive director of the [Connecticut Development Authority] Connecticut Economic Innovations Authority 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 chancellor of the regional community-technical colleges, or his designee, of such request. The chancellor, or his 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 state regional vocational-technical schools in implementing the program. Nothing in this section shall preclude the Labor Commissioner from considering or choosing other providers to meet such training need.

Sec. 101. Subsection (a) of section 32-9c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(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 the [Connecticut Development Authority] Connecticut Economic Innovations Authority 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.

Sec. 102. Subsection (b) of section 32-9n of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(b) Said Office of Small Business Affairs shall: (1) Administer the small business development center program run by the Department of Economic and Community Development; (2) coordinate the flow of information within the technical and management assistance program run by the Department of Economic and Community Development; (3) encourage the [Connecticut Development Authority] Connecticut Economic Innovations Authority 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; and (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.

Sec. 103. Subsection (d) of section 32-9cc of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(d) The Department of Environmental Protection, the Connecticut Development Authority and the Department of Public Health shall each designate one or more staff members to act as a liaison between their offices and the Office of Brownfield Remediation and Development. The Commissioners of Economic and Community Development, Environmental Protection and Public Health and the executive director of the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall enter into a memorandum of understanding concerning each entity's responsibilities with respect to the Office of Brownfield Remediation and Development. The Office of Brownfield Remediation and Development may develop and recruit two volunteers from the private sector, including a person from the Connecticut chapter of the National Brownfield Association, with experience in different aspects of brownfield remediation and development. Said volunteers may assist the Office of Brownfield Remediation and Development in achieving the goals of this section.

Sec. 104. Section 32-9kk of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) As used in subsections (b) to (k), inclusive, of this section:

(1) "Brownfield" means any abandoned or underutilized site where redevelopment and reuse has not occurred due to the presence or potential presence of pollution in the buildings, soil or groundwater that requires remediation before or in conjunction with the restoration, redevelopment and reuse of the property;

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

(3) "Department" means the Department of Economic and Community Development;

(4) "Eligible applicant" means any municipality, a for-profit or nonprofit organization or entity, a local or regional economic development entity acting on behalf of a municipality or any combination thereof;

(5) "Financial assistance" means grants, extensions of credit, loans or loan guarantees, participation interests in loans made to eligible applicants by the [Connecticut Development Authority] Connecticut Economic Innovations Authority or combinations thereof;

(6) "Municipality" means a town, city, consolidated town and city or consolidated town and borough;

(7) "Eligible brownfield project" means the foreclosure, investigation, assessment, remediation and development of a brownfield undertaken pursuant to this subsection and subsections (b) to (k), inclusive, of this section;

(8) "Project area" means the area within which a brownfield development project is located;

(9) "Real property" means land, buildings and other structures and improvements thereto, subterranean or subsurface rights, any and all easements, air rights and franchises of any kind or nature;

(10) "State" means the state of Connecticut; and

(11) "Eligible grant recipients" means municipalities, economic development authorities, regional economic development authorities, or qualified nonprofit community and economic development corporations.

(b) Subject to the availability of funds, the Commissioner of Economic and Community Development may, in consultation with the Commissioner of Environmental Protection, provide financial assistance pursuant to subsections (e) and (f) of this section in support of eligible brownfield projects, as defined in subdivision (7) of subsection (a) of this section.

(c) An eligible applicant, as defined in subdivision (4) of subsection (a) of this section, shall submit an application for financial assistance to the Commissioner of Economic and Community Development on forms provided by said commissioner and with such information said commissioner deems necessary, including, but not limited to: (1) A description of the proposed project; (2) an explanation of the expected benefits of the project in relation to the purposes of subsections (a) to (i), inclusive, of this section; (3) information concerning the financial and technical capacity of the eligible applicant to undertake the proposed project; (4) a project budget; (5) a description of the condition of the property involved including the results of any environmental assessment of the property; and (6) the names of any persons known to be liable for the remediation of the property.

(d) The commissioner may approve, reject or modify any application properly submitted. In reviewing an application and determining the type and amount of financial assistance, if any, to be provided, the commissioner shall consider the following criteria: (1) The availability of funds; (2) the estimated costs of assessing and remediating the site, if known; (3) the relative economic condition of the municipality; (4) the relative need of the eligible project for financial assistance; (5) the degree to which financial assistance is necessary as an inducement to the eligible applicant to undertake the project; (6) the public health and environmental benefits of the project; (7) relative economic benefits of the project to the municipality, the region and the state, including, but not limited to, the extent to which the project will likely result in a contribution to the municipality's tax base and the retention and creation of jobs; (8) the time frame in which the contamination occurred; (9) the relationship of the applicant to the person or entity that caused the contamination; (10) the length of time the property has been abandoned; (11) the taxes owed and the projected revenues that may be restored to the community; (12) the type of financial assistance requested pursuant to this section; and (13) such other criteria as the commissioner may establish consistent with the purposes of subsection (a) to (k), inclusive, of this section.

(e) (1) There is established a remedial action and redevelopment municipal grant program to be administered by the Department of Economic and Community Development for the purpose of providing financial assistance in the form of grants to eligible grant recipients. Eligible grant recipients may use grant funds for any development project, including manufacturing, retail, residential, municipal, educational, parks, community centers and mixed-use development, and the project's associated costs, including (A) soil, groundwater and infrastructure investigation, (B) assessment, (C) remediation, (D) abatement, (E) hazardous materials or waste disposal, (F) long-term groundwater or natural attenuation monitoring, (G) environmental land use restrictions, (H) attorneys' fees, (I) planning, engineering and environmental consulting, and (J) building and structural issues, including demolition, asbestos abatement, polychlorinated biphenyls removal, contaminated wood or paint removal, and other infrastructure remedial activities.

(2) The Commissioner of Economic and Community Development shall award grants on a competitive basis, based at a minimum on an annual request for applications, the first of which shall be issued on October 1, 2008, and the following to be issued on June first each year, with awards being made by the following January first. The commissioner, at the commissioner's discretion, may increase the frequency of requests for applications and awards depending upon the number of applicants and the availability of funding.

(3) A grant awarded pursuant to this section shall not exceed four million dollars. If the eligible costs exceed four million dollars, the commissioner may request and seek funding through other state programs.

(4) If the eligible grant recipient develops and sells the property, such applicant shall return any money received pursuant to this subsection, to the brownfield remediation and development account established pursuant to subsection (l) of this section, minus twenty per cent, which such eligible grant recipient shall retain to cover costs of oversight, administration, development and, if applicable, lost tax revenue.

(5) Any eligible grant recipient shall be immune from liability to the extent provided in subsection (a) of section 32-9ee.

(6) The eligible grant recipient may make low-interest loans to a redeveloper, if the future reuse is known and an agreement with the redeveloper is in place and the private party is a coapplicant. Loan principal and interest payments shall be returned to the brownfield remediation and development account established pursuant to subsection (l) of this section, minus twenty per cent of the principal, which the eligible grant recipient shall retain. If the eligible grant recipient provides a loan, such loan may be secured by a state or municipal lien on the property.

(7) Any eligible grant recipients that provide a loan pursuant to subdivision (6) of this subsection shall require the loan recipient to enter a voluntary program pursuant to section 22a-133x or 22a-133y with the Commissioner of Environmental Protection for brownfield remediation. The commissioner may use not more than five per cent of eligible grant or loan proceeds for reasonable administrative expenses.

(8) Notwithstanding section 22a-134a, the eligible grant recipient may acquire and convey its interest in the property without such recipient or the subsequent purchaser incurring liability, including any such liability incurred pursuant to section 22a-134a, provided the property was remediated pursuant to section 22a-133x or 22a-133y or pursuant to an order issued by the Commissioner of Environmental Protection and such remediation was performed in accordance with the standards adopted pursuant to section 22a-133k as determined by said commissioner or, if authorized by said commissioner, verified by a licensed environmental professional unless such verification has been rejected by said commissioner subsequent to an audit conducted by said commissioner and provided the subsequent purchaser has no direct or related liability for the site conditions.

(f) (1) The Department of Economic and Community Development shall develop a targeted brownfield development loan program to provide financial assistance in the form of low-interest loans to eligible applicants who are potential brownfield purchasers who have no direct or related liability for the site conditions and eligible applicants who are existing property owners who (A) are currently in good standing and otherwise compliant with the Department of Environmental Protection's regulatory programs, (B) demonstrate an inability to fund the investigation and cleanup themselves, and (C) cannot retain or expand jobs due to the costs associated with the investigating and remediating of the contamination.

(2) The commissioner shall provide low-interest loans to eligible applicants who are purchasers or existing property owners pursuant to this section who seek to develop property for purposes of retaining or expanding jobs in the state or for developing housing to serve the needs of first-time home buyers. Loans shall be available to manufacturing, retail, residential or mixed-use developments, expansions or reuses. The commissioner shall provide loans based upon project merit and viability, the economic and community development opportunity, municipal support, contribution to the community's tax base, number of jobs, past experience of the applicant, compliance history and ability to pay.

(3) Any loan recipient who is a brownfields purchaser and who (A) receives a loan in excess of thirty thousand dollars, or (B) uses loan proceeds to perform a Phase II environmental investigation, shall be subject to section 22a-134a or shall enter a voluntary program for remediation of the property with the Department of Environmental Protection. Any loan recipient who is an existing property owner shall enter a voluntary program with the Department of Environmental Protection.

(4) Loans made pursuant to this subsection shall have such terms and conditions and shall be subject to such eligibility, loan approval and criteria, as determined by the commissioner. Such conditions shall include, but not be limited to, performance requirements and commitments to maintain or retain jobs. Loan repayment shall coincide with the restoration of the site to a productive use or the completion of the expansion. Such loans shall be for a period not to exceed twenty years.

(5) If the property is sold before loan repayment, the loan is payable upon closing, with interest, unless the commissioner agrees otherwise. The commissioner may carry the loan forward as an encumbrance to the purchaser with the same terms and conditions as the original loan.

(6) Loans made pursuant to this subsection may be used for any purpose, including the present or past costs of investigation, assessment, remediation, abatement, hazardous materials or waste disposal, long-term groundwater or natural attenuation monitoring, costs associated with an environmental land use restriction, attorneys' fees, planning, engineering and environmental consulting costs, and building and structural issues, including demolition, asbestos abatement, polychlorinated biphenyls removal, contaminated wood or paint removal, and other infrastructure remedial activities.

(7) For any loan made pursuant to this subsection that is greater than fifty thousand dollars, the applicant shall submit a redevelopment plan that describes how the property will be used or reused for commercial, industrial or mixed-use development and how it will result in jobs and private investment in the community. For any residential development loan pursuant to this subsection, the developer shall agree that the development will provide the housing needs reasonable and appropriate for first-time home buyers or recent college graduates looking to remain in this state.

(8) The loan program established pursuant to this subsection shall be available to all qualified new and existing property owners. Recipients who use loans for commercial, industrial or mixed-use development shall agree to retain or add jobs, during the term of the loan, unless otherwise agreed to by the Department of Economic and Community Development, the [Connecticut Development Authority] Connecticut Economic Innovations Authority and the Connecticut Brownfield Redevelopment Authority. The residential developer shall agree to retire the loan upon sale of the units unless the development will be apartments.

(9) Each loan recipient pursuant to this subsection may be eligible for up to two million dollars per year for up to two years, subject to agency underwriting and reasonable and customary requirements to assure performance. If additional funds are needed, the Commissioner of Economic and Community Development may recommend that the project be funded through the State Bond Commission.

(g) The Commissioner of Economic and Community Development shall approve applications submitted in accordance with subsection (c) of this section before awarding any financial assistance to an eligible applicant or purchasing any participation interest in a loan made by the [Connecticut Development Authority] Connecticut Economic Innovations Authority for the benefit of an eligible applicant. Notwithstanding any other provision of this section, if the applicant's request for financial assistance involves the department purchasing a participation interest in a loan made by the [Connecticut Development Authority] Connecticut Economic Innovations Authority, such authority may submit such application and other information as is required of eligible applicants under subsection (c) of this section on behalf of such eligible applicant and no further application shall be required of such eligible applicant. No financial assistance shall exceed fifty per cent of the total project cost, provided in the case of (1) planning or site evaluation projects, and (2) financial assistance to any project in a targeted investment community, such assistance shall not exceed ninety per cent of the project cost. Upon approval of the commissioner, a nonstate share of the total project cost, if any, may be satisfied entirely or partially from noncash contributions, including contributions of real property, from private sources or, to the extent permitted by federal law, from moneys received by the municipality under any federal grant program.

(h) Financial assistance may be made available for (1) site investigation and assessment, (2) planning and engineering, including, but not limited to, the reasonable cost of environmental consultants, laboratory analysis, investigatory and remedial contractors, architects, attorneys' fees, feasibility studies, appraisals, market studies and related activities, (3) the acquisition of real property, provided financial assistance for such acquisition shall not exceed fair market value as appraised as if clean, (4) the construction of site and infrastructure improvements related to the site remediation, (5) demolition, asbestos abatement, hazardous waste removal, PCB removal and related infrastructure remedial activities, (6) remediation, groundwater monitoring, including, but not limited to, natural attenuation groundwater monitoring and costs associated with filing an environmental land use restriction, (7) environmental insurance, and (8) other reasonable expenses the commissioner determines are necessary or appropriate for the initiation, implementation and completion of the project. The department may purchase participation interests in loans made by the [Connecticut Development Authority] Connecticut Economic Innovations Authority for the foregoing purposes.

(i) The commissioner may establish the terms and conditions of any financial assistance provided pursuant to subsections (a) to (k), inclusive, of this section. The commissioner may make any stipulation in connection with an offer of financial assistance the commissioner deems necessary to implement the policies and purposes of such sections, including, but not limited to the following: (1) Providing assurances that the eligible applicant will discharge its obligations in connection with the project; and (2) requiring that the eligible applicant provide the department with appropriate security 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.

(j) The commissioner may use any available funds for financial assistance under the provisions of subsections (a) to (k), inclusive, of this section.

(k) Whenever funds are used pursuant to subsections (a) to (k), inclusive, of this section for purposes of environmental assessments or remediation of a brownfield, the Commissioner of Environmental Protection may seek reimbursement of the costs and expenses incurred by requesting the Attorney General to bring a civil action to recover such costs and expenses from any party responsible for such pollution provided no such action shall be brought separately from any action to recover costs and expenses incurred by the Commissioner of Environmental Protection in pursuing action to contain, remove or mitigate any pollution on such site. The costs and expenses recovered may include, but shall not be limited to, (1) the actual cost of identifying, evaluating, planning for and undertaking the remediation of the site; (2) any administrative costs not exceeding ten per cent of the actual costs; (3) the costs of recovering the reimbursement; and (4) interest on the actual costs at a rate of ten per cent a year from the date such expenses were paid. The defendant in any civil action brought pursuant to this subsection shall have no cause of action or claim for contribution against any person with whom the Commissioner of Environmental Protection has entered into a covenant not to sue pursuant to sections 22a-133aa and 22a-133bb with respect to pollution on or emanating from the property that is the subject of said civil action. Funds recovered pursuant to this section shall be deposited in the brownfield remediation and development account established pursuant to subsections (l) to (o), inclusive, of this section. The provisions of this subsection shall be in addition to any other remedies provided by law.

(l) There is established a separate nonlapsing account within the General Fund to be known as the "brownfield remediation and development account". There shall be deposited in the account: (1) The proceeds of bonds issued by the state for deposit into said account and used in accordance with this section; (2) repayments of assistance provided pursuant to subsection (c) of section 22a-133u; (3) interest or other income earned on the investment of moneys in the account; (4) funds recovered pursuant to subsection (i) of this section; and (5) all funds required by law to be deposited in the account. Repayment of principal and interest on loans made pursuant to subsections (a) to (k), inclusive, of this section shall be credited to such account and shall become part of the assets of the account. Any balance remaining in such account at the end of any fiscal year shall be carried forward in the account for the fiscal year next succeeding.

(m) All moneys received in consideration of financial assistance, including payments of principal and interest on any loans, shall be credited to the account. At the discretion of the Commissioner of Economic and Community Development and subject to the approval of the Secretary of the Office of Policy and Management, any federal, private or other moneys received by the state in connection with projects undertaken pursuant to subsections (a) to (k), inclusive, of this section shall be credited to the assets of the account.

(n) Notwithstanding any provision of law, proceeds from the sale of bonds available pursuant to subdivision (1) of subsection (b) of section 4-66c may, with the approval of the Governor and the State Bond Commission, be used to capitalize the brownfield remediation and development account created by subsections (l) to (o), inclusive, of this section.

(o) The commissioner may, with the approval of the Secretary of the Office of Policy and Management, provide financial assistance pursuant to subsections (a) to (k), inclusive, of this section from the account established under subsection (l) to (o), inclusive, of this section.

Sec. 105. Subdivision (1) of subsection (b) of section 32-9qq of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(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 the [Connecticut Development Authority] Connecticut Economic Innovations Authority, business counseling and related monitoring and follow-up services.

Sec. 106. Section 32-22b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The [Connecticut Development Authority] Connecticut Economic Innovations Authority may establish a loan guarantee program to provide guarantees of not more than thirty per cent of the loan to lenders who provide financing to eligible developers or eligible property owners as defined in subsection (a) of section 32-9kk, as amended by this act.

Sec. 107. Subsection (b) of section 32-23o of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(b) Each such loan or extension of credit shall be authorized by the [Connecticut Development Authority] Connecticut Economic Innovations Authority or, if the authority so determines, by a committee of the authority consisting of the chairman and either one other member of the authority or its executive director, as specified in the determination of the authority. Any administrative expenses incurred in carrying out the provisions of this section, to the extent not paid by the authority or from moneys appropriated to the department, shall be paid from the Small Contractors' Revolving Loan Fund. Payments from the Small Contractors' Revolving Loan Fund to small contractors or to pay such administrative expenses shall be made by the Treasurer upon certification by the Commissioner of Economic and Community Development that the payment is authorized under the provisions of this section, under the applicable rules and regulations of the department, and, if made to a small contractor, under the terms and conditions established by the authority or the duly appointed committee thereof in authorizing the making of the loan or the extension of credit.

Sec. 108. Section 32-23s of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The amendments to sections 32-11a, 32-16, 32-23c, 32-23d, as amended by this act, 32-23e, 32-23f and 32-23j effective on June 29, 1981, are intended and shall be construed as a clarification and expansion of the powers of the [Connecticut Development Authority] Connecticut Economic Innovations Authority, and shall not limit or impair any obligation incurred or right exercised by the authority under its powers prior to said date.

Sec. 109. Section 32-61 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in this chapter, "authority" means the [Connecticut Development Authority created under subsection (a) of section 32-11a] Connecticut Economic Innovations Authority established pursuant to this act; "executive director" means the executive director of the [Connecticut Development Authority appointed pursuant to subsection (d) of section 32-11a] Connecticut Economic Innovations Authority established pursuant to section 2 of this act; "project" means a project as defined in subsection (d) of section 32-23d; "insurance fund" means the Revenue Bond Mortgage Insurance Fund created under section 32-62; "eligible financial institution" means an eligible financial institution as defined in section 32-65; "state" means the state of Connecticut; and "loan" means loans, notes, bonds or other forms of indebtedness related to the financing or refinancing of a project by the authority or an eligible financial institution, or any participation or other interest therein, however evidenced, or any pool or portion of the foregoing.

Sec. 110. Subsection (a) of section 32-141 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) (1) The total amount of private activity bonds which may be issued by state issuers in the calendar year commencing January 1, 2001, under the state ceiling in effect for such year, shall be allocated as follows: (A) Sixty per cent to the Connecticut Housing Finance Authority; (B) fifteen per cent to the [Connecticut Development Authority] Connecticut Economic Innovations Authority; and (C) twenty-five per cent to municipalities and political subdivisions, departments, agencies, authorities and other bodies of municipalities, the Connecticut Higher Education Supplemental Loan Authority and for contingencies.

(2) The total amount of private activity bonds which may be issued by state issuers in the calendar year commencing January 1, 2007, and each calendar year thereafter, under the state ceiling in effect for each such year, shall be allocated as follows: (A) Sixty per cent to the Connecticut Housing Finance Authority; (B) twelve and one-half per cent to the [Connecticut Development Authority] Connecticut Economic Innovations Authority; and (C) twenty-seven and one-half per cent to municipalities and political subdivisions, departments, agencies, authorities and other bodies of municipalities and the Connecticut Higher Education Supplemental Loan Authority, then to the Connecticut Student Loan Foundation and then for contingencies. At least ten per cent of bonds allocated under subparagraph (A) of this subdivision shall be used for multifamily residential housing in the calendar year commencing January 1, 2008. In each calendar year commencing January 1, 2009, fifteen per cent of such bonds shall be used for multifamily residential housing.

(3) The board of directors of the Connecticut Housing Finance Authority shall undertake a review and analysis of the multifamily housing goals and programs of the authority to determine the extent to which the authority can increase the production of multifamily housing and promote its preservation, including production of multifamily housing that serves households with incomes less than fifty per cent of the area median income and households with incomes less than twenty-five per cent of the area median income. Such review and analysis shall include, but not be limited to, the use of private activity bonds in conjunction with four per cent federal tax credits. The board of directors of the authority shall report its findings and recommendations to the joint standing committee of the General Assembly having cognizance of matters relating to planning and development and to the select committee on housing not later than January 1, 2008.

Sec. 111. Section 32-222 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in sections 32-220 to 32-234, inclusive: (a) "Business development project" means a project undertaken by an eligible applicant involving one or more of the following:

(1) The construction, substantial renovation, improvement or expansion of a facility;

(2) The acquisition of new machinery and equipment;

(3) The acquisition, improvement, demolition, cultivation or disposition of real property, or combinations thereof, or the remediation of contaminated real property;

(4) The creation at a facility, within twenty-four months of the initiation of a hiring program, not less than ten new jobs or an increase in the number of persons employed at the facility of twenty per cent, whichever is greater;

(5) Economic diversification of the economy of an area of the state or manufacturing or other economic base business where such area or business is substantially reliant upon defense and related industry;

(6) Participation in the avoidance of an imminent plant closing or relocation by a manufacturing or other economic base business or assist or improve the economy of an area of the state which has been or is likely to be significantly and adversely impacted by one or more major plant closings or relocations;

(7) Support research and development or commercialization of technologies, products, processes or techniques of a manufacturing or other economic base business;

(8) Creation or support of organizations that provide technical and engineering assistance to small manufacturers or other economic base businesses to assist them with the design, testing, manufacture and marketing of new products and the instruction and implementation of new techniques and technologies;

(9) Support of substantial workforce development efforts;

(10) Promotion of community conservation or development or improvement of the quality of life for urban residents of the state; [or]

(11) Promotion of the revitalization of underutilized, state-owned former railroad depots and areas adjacent to such depots; or

(12) Promotion of export activities, including sponsorship of programs that support exportation, assistance to companies in accessing federal Department of Commerce services, and provision of marketing materials and web site improvements for exporters.

(b) "Business support services" means activities related to a municipal development project or business development project which support the economic competitiveness of manufacturing or economic base businesses or which further the interests of the state, including, but not limited to, facilities and services related to day care, job training, education, transportation, employee housing, energy conservation, pollution control and recycling, provided activities related to employee housing shall be limited to feasibility and implementation studies;

(d) "Economic base business" means a business that the commissioner determines will materially contribute to the economy of the state by creating or retaining jobs, exporting products or services beyond the state's boundaries, encouraging innovation in products or services, adding value to products or services or otherwise supporting or enhancing existing activities important to the economy of the state;

(e) "Economic cluster" means an economic cluster, as defined in section 32-4e, recognized by the commissioner;

(f) "Department" means the Department of Economic and Community Development;

(g) "Development plan" means a plan for a municipal development project prepared in accordance with the provisions of subsection (b) of section 32-223, as amended by this act;

(h) "Eligible applicant" means any for-profit or nonprofit organization, or any combination thereof, any municipality, regional planning agency or any combination thereof and further provided, in the case of a loan made by the [Connecticut Development Authority] Connecticut Economic Innovations Authority in which the department purchases a participation interest, "eligible applicant" means the for-profit or nonprofit organization, or any combination thereof, that will receive the proceeds of such loan;

(i) "Financial assistance" means grants, funds for the purchase of insurance policies and payment of deductibles for insurance policies to cover remediation costs, extensions of credit, loans or loan guarantees, participation interests in loans made to eligible applicants by the [Connecticut Development Authority] Connecticut Economic Innovations Authority or combinations thereof;

(j) "For-profit organization" means a for-profit partnership or sole proprietorship or corporation or limited liability company which is an economic base business or has a North American Industrial Classification code of 311111 through 339999 or 493110, 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, or any establishment or auxiliary or operating unit thereof, as defined in the North American Industrial Classification System Manual, which has demonstrated to the satisfaction of the commissioner that it has the qualifications, including financial qualifications, necessary to carry out a business development project;

(k) "Implementing agency" means one of the following agencies designated by a municipality under section 32-223, as amended by this act: (1) An economic development commission, redevelopment agency; sewer authority or sewer commission; public works commission; water authority or water commission; port authority or port commission or harbor authority or harbor commission; parking authority or parking commission; (2) a nonprofit development corporation; or (3) any other agency designated and authorized by a municipality to undertake a project and approved by the commissioner;

(l) "Municipal development project" means a business development project through which real property is acquired by a municipality or implementing agency as part of such project;

(m) "Municipality" means a town, city, consolidated town and city or consolidated town and borough;

(n) "Nonprofit organization" means a municipality or nonprofit corporation as defined in section 33-1002 and organized under the laws of this state and for purposes of this chapter includes any constituent unit of the state system of higher education;

(o) "Planning commission" means a planning and zoning commission designated pursuant to section 8-4a or a planning commission created pursuant to section 8-19;

(p) "Project" means a municipal development project or business development project;

(q) "Project area" means the area within which a municipal development project or business development project is located;

(r) "Real property" means land, buildings and other structures and improvements thereto, subterranean or subsurface right, any and all easements, air rights and franchises of any kind or nature;

(s) "Site and infrastructure improvements" means improvements to: (1) Sanitary sewer facilities; (2) natural gas pipes, electric, telephone and telecommunications conduits and other facilities and waterlines and water supply facilities, except for any such pipes, wires, conduits, waterlines or any such pipes, wires, conduits, waterlines or facilities which a public service company, as defined in section 16-1, water company, as defined in section 25-32a, or municipal utility is required to install pursuant to any provision of the general statutes or any special act, regulation or order of the Department of Public Utility Control or a certificate of public convenience and necessity; (3) storm drainage facilities, including facilities to control flooding; (4) site grading, landscaping, environmental improvements, including remediation of contaminated sites, parking facilities, roadways and related appurtenances; (5) railroad spurs; (6) public port or docking facilities; and (7) such other related improvements necessary or appropriate to carry out the project;

(t) "State" means the state of Connecticut;

(u) "Targeted investment community" means a municipality which contains an enterprise zone designated pursuant to section 32-70;

(v) "Total project cost" means costs of any kind or nature relating to the planning, implementation and completion of a municipal or business development project;

(w) "Legislative body" means (1) the board of selectmen in a town that does not have a charter, special act or home rule ordinance relating to its government, or (2) the council, board of aldermen, representative town meeting, board of selectmen or other elected legislative body described in a charter, special act or home rule ordinance relating to its government in a city, consolidated town and city, consolidated town and borough or a town having a charter, special act, consolidation ordinance or home rule ordinance relating to its government.

Sec. 112. Section 32-223 of the 2010 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) (1) An eligible applicant shall submit an application for financial assistance to the commissioner on forms provided by the commissioner and with such information the commissioner deems necessary, including, but not limited to: (A) A description of the proposed project; (B) an explanation of the expected benefits of the project in relation to the purposes of sections 32-220 to 32-234, inclusive; (C) information concerning the financial and technical capacity of the eligible applicant to undertake the proposed project; (D) a project budget; and (E) identification, when appropriate, of business support services that may be of benefit to the state and the manufacturing and economic base businesses located or locating in the project area as part of the project. In the case of a municipal development project the eligible applicant shall, in addition to an application for financial assistance, submit a development plan prepared pursuant to subsection (b) of section 32-224 and approved by the commissioner, provided an eligible applicant may, prior to the submission of a development plan, receive financial assistance for activities related to the planning of a municipal development project to the extent such assistance is provided for under subsection (b) of this section.

(2) The United States Department of the Navy, the United States Department of Defense or eligible applicants shall not be required to submit an application for financial assistance to the commissioner, as required by subsection (a) of this section, for projects related to the enhancement of infrastructure for long-term, on-going naval operations at the United States Naval Submarine Base-New London that are funded by grants to said Department of the Navy, said Department of Defense or said applicants as provided in subdivision (6) of subsection (b) of this section.

(b) Applications properly submitted shall be reviewed and may be approved, disapproved or modified by the commissioner. In reviewing an application and determining the type and amount of financial assistance, if any, to be provided, the commissioner shall consider the following criteria: (1) The availability of funds; (2) the relative economic condition of the municipality; (3) the relative need of the eligible applicant or project for financial assistance; (4) the degree to which financial assistance is necessary as an inducement to the eligible applicant to undertake the project or to the manufacturing or economic base business to locate or undertake the project in the state; (5) the relative economic benefit of the project to the state, including, but not limited to: (A) The extent to which the project will likely result in the retention and creation of jobs, the retention, expansion or relocation of manufacturing or economic base businesses in the state or the diversification of such businesses, or (B) the extent to which the project will increase competitiveness of such businesses, respond to potential or actual dislocation as a result of major plant closings or relocations and address the business service needs of such businesses and the state; and (6) such other criteria as the commissioner may establish consistent with the purposes of sections 32-220 to 32-234, inclusive. The commissioner shall not deny an application for financial assistance for a project solely because the project site does not have sewer service or access to sewer service.

(c) No financial assistance shall be given to an eligible applicant and no participation interest in a loan made by the [Connecticut Development Authority] Connecticut Economic Innovations Authority for the benefit of an eligible applicant shall be purchased by the department until the commissioner has approved the application submitted in accordance with subsection (a) of this section. Notwithstanding any other provision of this section, in the event that the financial assistance requested is the purchase by the department of a participation interest in a loan made by the [Connecticut Development Authority] Connecticut Economic Innovations Authority, such authority may submit such application and other information as is required of eligible applicants under subsection (a) of this section on behalf of such eligible applicant and no further application shall be required of such eligible applicant. No financial assistance shall exceed: (1) Except as otherwise provided in subdivisions (2) to (6), inclusive, of this subsection, fifty per cent of the total project cost, (2) in the case of financial assistance to any project in a targeted investment community, ninety per cent of the project cost, (3) when two or more municipalities which are not targeted investment communities jointly initiate a municipal development project in accordance with the provisions of subsection (e) of section 32-224, seventy-five per cent of the total project cost, (4) in the case of a municipal development project jointly initiated by two or more municipalities at least one of which is a targeted investment community, the sum of: (A) Seventy-five per cent of the portion of the total project cost allocable to the participation of the municipality or municipalities which are not targeted investment communities, and (B) ninety per cent of the portion of the total project cost allocable to the participation of any targeted investment community or communities, (5) in the case of a defense diversification project, ninety per cent of the total project cost if the project involves a municipal development project or the acquisition or development, or both, of real property for an unspecified occupant, and one hundred per cent in the case of any other defense diversification project, and (6) in the case of moneys used by the department for the purpose of grants to the United States Department of the Navy, United States Department of Defense or eligible applicants for projects related to the enhancement of infrastructure for long-term, on-going naval operations at the United States Naval Submarine Base-New London, as provided in subdivision (6) of subsection (b) of section 32-235, one hundred per cent of the total project cost. A municipality's share of the total project cost, if any, may, with the approval of the commissioner, be satisfied entirely or partially from noncash contributions, including contributions of real property, from private sources, or, to the extent permitted by federal law, from moneys received by the municipality under any federal grant program.

(d) Financial assistance, whether provided directly to eligible applicants or indirectly in the form of the department's purchase of a participation interest in a loan made by the [Connecticut Development Authority] Connecticut Economic Innovations Authority under sections 32-220 to 32-234, inclusive, may be used for (1) the planning of a municipal development project or business development project, including, but not limited to, the reasonable cost of feasibility studies, engineering, appraisals, market studies and related activities; (2) the acquisition of real property, machinery or equipment, or any combination thereof, provided such financial assistance shall not exceed fair market value; (3) the construction of site and infrastructure improvements relating to a municipal development or business development project; (4) the construction, renovation and demolition of buildings; (5) relocation expenses for the purpose of assisting an eligible applicant to locate, construct, renovate or acquire a facility; or (6) such other reasonable expenses necessary or appropriate for the initiation, implementation and completion of the project, including, but not limited to: (A) Administrative expenses of the eligible applicant; and (B) business support services in conjunction with another state agency when such agency does not provide adequate funds for such services or when no other state agency provides such services. The department may purchase participation interests in loans made by the [Connecticut Development Authority] Connecticut Economic Innovations Authority for the foregoing purposes. All relocation assistance provided under sections 32-220 to 32-234, inclusive, to persons residing in the project area shall be in conformance with chapter 135.

(e) The commissioner may establish the terms and conditions of any financial assistance provided under sections 32-220 to 32-234, inclusive, except that the interest rate on any loans shall be determined by the State Bond Commission in accordance with subsection (t) of section 3-20. The commissioner may make any stipulation in connection with an offer of financial assistance he deems necessary to implement the policies and purposes of sections 32-220 to 32-234, inclusive, including, but not limited to the following: (1) The provision of assurances that the eligible applicant will discharge its obligations in connection with the project, and (2) a requirement that the eligible applicant provide the department with appropriate security 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.

Sec. 113. Section 32-227 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) For the purpose of carrying out or administering a municipal or business development project, (1) a municipality, acting by and through its implementing agency, may, subject to the limitations and procedures set forth in this section, issue from time to time bonds of the municipality, and (2) the [Connecticut Development Authority] Connecticut Economic Innovations Authority may, upon a resolution adopted by the legislative body of the municipality, issue from time to time bonds which, in either case, are payable solely or in part from and secured by: (A) A pledge of and lien upon any or all of the income, proceeds, revenues and property of development projects, including the proceeds of grants, loans, advances or contributions from the federal government, the state or other source, including financial assistance furnished by the municipality or any other public body pursuant to sections 32-220 to 32-234, inclusive; (B) taxes or payments in lieu of taxes, or both, in whole or in part, allocated to and paid into a special fund of the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority pursuant to the provisions of subsection (c) of this section; or (C) any combination of the methods in subparagraphs (A) and (B) of this subdivision. Any bonds payable and secured as provided in this subsection shall be authorized by, and the appropriation of the proceeds thereof approved by and subject to, a resolution adopted by the legislative body of the municipality, notwithstanding the provisions of any other statute, local law or charter governing the authorization and issuance of bonds and the appropriation of the proceeds thereof generally by the municipality. No such resolution shall be adopted until after a public hearing has been held upon such authorization. Notice of such hearing shall be published not less than five days prior to such hearing in a newspaper having a general circulation in the municipality. Any such bonds of a municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall be issued and sold in such manner; bear interest at such rate or rates, including variable rates; provide for the payment of interest on such dates, whether before or at maturity; be issued at, above or below par; mature at such time or times not exceeding thirty years from their date; have such rank or priority; be payable in such medium of payment; be issued in such form, including, without limitation, registered or book-entry form; carry such registration and transfer privileges and be made subject to purchase or redemption before maturity at such price or prices and under such terms and conditions, including the condition that such bonds be subject to purchase or redemption on the demand of the owner thereof; and contain such other terms and particulars as the legislative body of the municipality or the officers delegated such authority by the legislative body of the municipality shall determine. Any such bonds of the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall be issued and sold in the manner and subject to the general terms and provisions of law applicable to issuance of bonds by the [Connecticut Development Authority] Connecticut Economic Innovations Authority, except that the provisions of subsection (b) of section 32-23j shall not apply. The proceedings under which bonds are authorized to be issued may, subject to the provisions of indenture or to any other depository agreement, provide for the method of disbursement thereof, with such safeguards and restrictions as it may determine. Any pledge made by the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority for bonds issued as provided in this subsection shall be valid and binding from the time when the pledge is made, and any revenues or other receipts, funds or moneys so pledged and thereafter received by the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority shall be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the municipality or [Connecticut Development Authority] the Connecticut Economic Innovations Authority, irrespective of whether such parties have notice of such lien. Neither the resolution nor any other instrument by which a pledge is created need be recorded. All expenses incurred in carrying out such financing may be treated as project costs. Such bonds shall not be included in computing the aggregate indebtedness of the municipality, provided, if such bonds are made payable, in whole or in part, from funds contracted to be advanced by the municipality, the aggregate amount of such funds not yet appropriated to such purpose shall be included in computing the aggregate indebtedness of the municipality. As used in this section, "bonds" means any bonds, including refunding bonds, notes, temporary notes, interim certificates, debentures or other obligations. Temporary notes issued in accordance with this subsection in anticipation of the receipt of the proceeds of bond issues may be issued for a period of not more than five years, and notes issued for a shorter period of time may be renewed by the issue of other notes, provided the period from the date of the original notes to the maturity of the last notes issued in renewal thereof shall not exceed five years. For purposes of this section, references to the Connecticut Development Authority shall include any subsidiary of the [Connecticut Development Authority established pursuant to subsection (l) of section 32-11a] Connecticut Economic Innovations Authority.

(b) For the purpose of carrying out or administering a municipal or business development project, a municipality or its implementing agency may accept grants, advances, loans or other financial assistance from the federal government, the state or other source and may do any and all things necessary or desirable to secure such financial aid. To assist any project located in the area in which it is authorized to act, any public body, including the state, or any city, town, borough, authority, district, subdivision or agency of the state, may, upon such terms as it determines, furnish service or facilities, provide property, lend or contribute funds, and take any other action of a character which it is authorized to perform for other purposes. To obtain funds for the temporary and definitive financing of any project, a municipality or implementing agency may, in addition to other action authorized under this act or other law, issue its general obligation bonds, notes, temporary notes or other obligations secured by a pledge of the municipality's full faith and credit. Such bonds, notes, temporary notes and other obligations shall be authorized in accordance with the requirements for the authorization of such obligations generally by the municipality and the authorization, issuance and sale thereof shall be subject to the limitations contained in the general statutes, including provisions on the limitation of the aggregate indebtedness of the municipality. Notwithstanding the provisions of sections 7-264, 7-378 and 7-378a, and any other public or special act or charter or bond ordinance or bond resolution which limits the issuance or renewal of temporary notes issued in anticipation of the receipt of the proceeds of bond issues to a period of time of less than five years from the date of the original notes or requires a reduction in the principal amount of such notes or renewal notes prior to the fifth anniversary of the date of the original notes, such temporary notes may be issued for a period of not more than five years, and notes issued for a shorter period of time may be renewed by the issue of other notes, provided the period from the date of the original notes to the maturity of the last notes issued in renewal thereof shall not exceed five years.

(c) Any development plan authorized under sections 32-220 to 32-234, inclusive, or any proceedings authorizing the issuance of bonds under said sections may contain a provision that taxes, if any, identified in such plan or such authorizing proceedings and levied upon taxable real or personal property, or both, in a project each year or payments in lieu of such taxes authorized pursuant to chapter 114, or both, by or for the benefit of any one or more municipalities, districts or other public taxing agencies, as the case may be, shall be divided as follows: (1) In each fiscal year that portion of the taxes or payments in lieu of taxes, or both, which would be produced by applying the then current tax rate of each of the taxing agencies to the total sum of the assessed value of the taxable property in the project on the effective date of such adoption or the date of such authorizing proceedings, as the case may be, or on any date between such two dates which is identified in such proceedings, shall be allocated to and when collected shall be paid into the funds of the respective taxing agencies in the same manner as taxes by or for said taxing agencies on all other property are paid; and (2) that portion of the assessed taxes or the payments in lieu of taxes, or both, each fiscal year in excess of the amount referred to in subdivision (1) of this subsection shall be allocated to and when collected shall be paid into a special fund of the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority to be used in each fiscal year, first to pay the principal of and interest due in such fiscal year on loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, incurred by such municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority to finance or refinance in whole or in part, such project, and then, at the option of the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority, to purchase bonds issued for the project which has generated the tax increments or payments in lieu of taxes and then, at the option of the municipality or the [Connecticut Development Authority] Connecticut Economic Innovations Authority, to reimburse the provider of or reimbursement party with respect to any guarantee, letter of credit, policy of bond insurance, funds deposited in a debt service reserve fund, funds deposited as capitalized interest or other credit enhancement device used to secure payment of debt service on any bonds, notes or other indebtedness issued pursuant to this section to finance or refinance such project, to the extent of any payments of debt service made therefrom. Unless and until the total assessed valuation of the taxable property in a project exceeds the total assessed value of the taxable property in such project as shown by the last assessment list referred to in subdivision (1) of this subsection, all of the taxes levied and collected and all of the payments in lieu of taxes due and collected upon the taxable property in such project shall be paid into the funds of the respective taxing agencies. When such loans, advances, and indebtedness, if any, and interest thereof, and such debt service reimbursement to the provider of or reimbursement party with respect to such credit enhancement, have been paid in full, all moneys thereafter received from taxes or payments in lieu of taxes, or both, upon the taxable property in such development project shall be paid into the funds of the respective taxing agencies in the same manner as taxes on all other property are paid.

(d) Notwithstanding the provisions of subsection (a) or (b) of this section and any other public or special act or charter or bond ordinance or bond resolution which limits the renewal of temporary notes issued pursuant to said subsections in anticipation of the receipt of the proceeds of bond issues to five years from the date of the original notes, any municipality may renew temporary notes in accordance with the provisions of this section for an additional period of not more than four years from the end of such five-year period. The officers or board authorized to issue the bonds or determine the particulars of the bonds may adopt a resolution authorizing the renewal of temporary notes for such additional period under the following conditions: (1) All project grant payments and bond sale proceeds received shall be promptly applied toward project costs or toward payment of such temporary notes as the same shall become due and payable or shall be deposited in trust for such purposes; (2) no later than the end of each period of twelve months after the end of such five-year period a portion of such temporary notes equal to at least one-twentieth of the municipality's estimated cost of the project shall be retired from funds other than project grants or land sale proceeds or note proceeds; (3) the interest on all temporary notes renewed after such five-year period shall be paid from funds other than project grants or land sale proceeds or note proceeds; (4) the principal amount of each bond issue when sold shall be reduced by the amounts spent under subdivision (2) of this section, and the principal of such bonds shall be paid in annual installments commencing no later than one year from the date of issue; and (5) the maximum authorized term of the bonds when sold shall be reduced by not less than the number of months from the end of such five-year period to the date of issue. Any anticipated federal or state project grants or land sale proceeds may be used in computing the municipality's cost of the project. Any municipality in which such resolution is passed shall include in its annual budget or shall otherwise appropriate sufficient funds to make the payments required by subdivisions (2) and (3) of this subsection.

Sec. 114. Section 32-244 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) All data and other information received by the Department of Economic and Community Development, the [Connecticut Development Authority] Connecticut Economic Innovations Authority or any implementing agency, as defined in section 32-222, as amended by this act, or any advisory board or committee of the department, authority or agency, from any person in connection with an application for, or the provision of, financial assistance, which consists of the following, shall be deemed, for purposes of a public records request pursuant to the Freedom of Information Act, as defined in section 1-200, made to the Department of Economic and Community Development, the [Connecticut Development Authority] Connecticut Economic Innovations Authority or any such implementing agency, advisory board or committee, to be information described in subdivision (5) of subsection (b) of section 1-210: (1) Actual trade secrets or information that a person intends to become a trade secret, (2) material that a person intends to patent, (3) patented material, (4) marketing or business plans, (5) plans for new products or services, (6) reports of customer orders or sales or other documents that would disclose names and addresses of customers or potential customers, (7) information concerning the financial condition or personal affairs of any individual, (8) financial statements or projections, (9) sales or earnings forecasts, (10) capital or strategic plans, (11) information regarding research and development, (12) tax returns, or (13) other commercial, credit or financial information with respect to the financial condition or business operations of an applicant for or recipient of financial assistance which is of a type not customarily made available to the public.

(b) The enumeration in this section of particular types of data and information shall not be construed to limit the possible applicability of subdivision (5) of subsection (b) of section 1-210 to other data or information not so enumerated.

Sec. 115. Section 32-244a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

All information contained in any application for financial assistance submitted to the Department of Economic and Community Development or the [Connecticut Development Authority] Connecticut Economic Innovations Authority prior to October 1, 2000, and all information with respect to any person or project, including all financial, credit and proprietary information, obtained by the Department of Economic and Community Development or the [Connecticut Development Authority] Connecticut Economic Innovations Authority prior to October 1, 2000, or on or after October 1, 2000, pursuant to the requirements of an agreement entered into prior to October 1, 2000, shall be exempt from the provisions of subsection (a) of section 1-210.

Sec. 116. Subsection (k) of section 32-261 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(k) As used in this section, the following terms shall have the following meanings unless the context indicates another meaning and intent:

(1) "Authority" means the [Connecticut Development Authority created under subsection (a) of section 32-23d] Connecticut Economic Innovations Authority established pursuant to section 2 of this act;

(2) "Eligible financial institution" shall have the same meaning as "eligible financial institution", as defined in subsection (e) of section 32-23d;

(3) "Loans" means loans, notes, bonds and all other forms of debt financing or extensions of credit, secured or unsecured, including loans for working capital purposes;

(4) "Other investments" means (A) any and all forms of equity financing made by the authority or an eligible financial institution, (B) any participation or other interest in such equity financing, however evidenced, or (C) any pool or portfolio of, or position in, loans, such equity financing or any combination thereof;

(5) "Person" means a person, as defined in subsection (s) of section 32-23d; and

(6) "State" means the state of Connecticut.

Sec. 117. Subsection (b) of section 32-262 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Economic and Community Development to make grants to the [Connecticut Development Authority] Connecticut Economic Innovations Authority for deposit in the Investment and Loan Guaranty Fund to be used for the purpose of section 32-261, as amended by this act. The terms and conditions of said grants shall be governed in accordance with a grant contract between the department and the authority.

Sec. 118. Section 32-265 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) As used in this section: (1) "Authority" means the [Connecticut Development Authority] Connecticut Economic Innovations Authority, and (2) "financial institution" means an eligible financial institution, as defined in subsection (e) of section 32-23d, which is approved by the authority to participate in the program established by this section.

(b) In order to stimulate and encourage the growth and development of the state economy, the Connecticut Capital Access Fund is created to provide portfolio insurance to participating financial institutions to assist them in making loans that are somewhat riskier than conventional loans. The insurance shall be based on a portfolio insurance mechanism applicable to loans enrolled by a financial institution in the program, rather than loans by loan guarantees. The state, acting through the [Connecticut Development Authority] Connecticut Economic Innovations Authority, shall enter into a participation agreement with each financial institution approved to participate in the program. A participation agreement entered into by the authority and a financial institution shall establish a separate loan loss reserve account, owned and controlled by the [Connecticut Development Authority] Connecticut Economic Innovations Authority, but earmarked to cover losses on loans enrolled by that financial institution in the program. A separate loan loss reserve account shall be established for each participating financial institution. Each time a financial institution enrolls a loan in the program, payments shall be made into the earmarked loan loss reserve account by the borrower, financial institution and the authority, in amounts consistent with the provisions of the participation agreement. The financial institution shall be allowed to recover the cost of its payment from the borrower.

(c) To carry out the purposes of this section, the authority shall have those powers set forth in section 32-23. The authority shall also have the power to take all reasonable steps and exercise all available remedies necessary or desirable to protect the obligations or interests of the authority including, but not limited to, the purchase or redemption in foreclosure proceedings, bankruptcy proceedings or in other judicial proceedings of any property on which it holds a mortgage or other lien or in which it has an interest, and for such purposes payment may be made from the Connecticut Capital Access Fund.

(d) Approval of loans for which payments may be made into an account established under this section shall be within the sole discretion of the financial institution making the loan except that such loans shall comply with the requirements specified in the participation agreement.

(e) The authority shall adopt written procedures in accordance with section 1-121 for implementing the program. Such written procedures shall include the form of participation agreement which shall set forth procedures for use of the program and the rights and responsibilities of participating financial institutions and the authority. The participation agreement shall require that loans enrolled in the program shall be for a business purpose in the state and shall not be used for residential housing, passive real estate ownership, an insider transaction or to refinance a prior loan by the financial institution which was not covered under the program, except that if new funds are provided to a borrower, an amount equal to the amount of the new funds may be covered under the program.

(f) (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 five million dollars.

(2) The proceeds of the sale of said 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 to make grants to the [Connecticut Development Authority] Connecticut Economic Innovations Authority for deposit in the Connecticut Capital Access Fund to be used for the purposes authorized under this section and section 32-341, as amended by this act.

(3) 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. 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 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.

Sec. 119. Section 32-266 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

As used in sections 32-266 to 32-284, inclusive, as amended by this act:

(1) "Authority" means the [Connecticut Development Authority] Connecticut Economic Innovations Authority; and

(2) "Regional corporation" means a corporation formed by three or more municipal development corporations, a regional economic development corporation or a regional community development corporation.

Sec. 120. Subsection (b) of section 32-285 of the 2010 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(b) As used in this section: (1) "Authority" means the [Connecticut Development Authority] Connecticut Economic Innovations Authority; and (2) "eligible project" means a large-scale economic development project (A) that may add a substantial amount of new economic activity and employment in the municipality in which it is to be located and surrounding areas, and may generate significant additional tax revenues in the state; (B) for which use of the tax incremental financing mechanism may be necessary to attract the project to locate in the state; (C) which is economically viable and self-sustaining, taking into account the application of the proceeds of the bonds to be issued under the tax incremental financing program; (D) for which the direct and indirect economic benefits to the state and the municipality in which it will be located outweigh the costs of the project; and (E) which is consistent with the strategic development priorities of the state.

Sec. 121. Subsection (a) of section 32-341 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) There is established within the [Connecticut Development Authority] Connecticut Economic Innovations Authority a small business assistance program under which the authority shall make loans and loan guarantees and provide equity equivalent capital to businesses in this state that employ not more than one hundred persons and are unable to obtain conventional financial assistance. The authority may establish criteria for such loans, including, but not limited to, whether such assistance would enable an applicant to create or retain jobs and whether the applicant exports goods or services out of the state.

Sec. 122. Subdivision (1) of section 32-500 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(1) "Authority" means the [Connecticut Development Authority] Connecticut Economic Innovations Authority.

Sec. 123. Section 32-503 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) The [Connecticut Development Authority] Connecticut Economic Innovations Authority shall establish an export division within the authority. The division shall, within available resources, provide: (1) Working capital loans to small and medium-sized companies which are unable to obtain export financing, (2) access for such companies to existing public and private export lenders and other export funding sources, including, but not limited to, transaction financing, letters of credit, equity investments and loan guarantees, and (3) technical assistance to such companies in obtaining such financing. Such export division may give priority to assisting Connecticut businesses with regard to trade with African countries with whom the United States has diplomatic relations.

(b) On or before January 30, 1998, the authority shall submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to economic development on the progress of the authority in carrying out the purposes of this section, including a list of successful transactions.

Sec. 124. Section 32-609 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

With the concurrence of the Secretary of the Office of Policy and Management and the State Treasurer, the Capital City Economic Development Authority may submit an application to the [Connecticut Development Authority] Connecticut Economic Innovations Authority on behalf of the convention center project as defined in subdivision (3) of section 32-600, for a loan or loans consistent with the requirements of chapter 579 and the [Connecticut Development Authority is hereby authorized to] Connecticut Economic Innovations Authority may review such application as a package for the purposes of its requirements, including eligibility for federal or state funding in addition to the financing applied for. Any loan by the [Connecticut Development Authority] Connecticut Economic Innovations Authority to the Capital City Economic Development Authority shall be evidenced by the general obligation bond of such authority, in fully marketable form, duly executed and accompanied by an approving legal opinion with respect to validity, security and tax matters as would otherwise be required in a public offering. Any loan with respect to the hotel or other portions of private investment pertaining to the convention center project shall be on such terms and conditions as the [Connecticut Development Authority] Connecticut Economic Innovations Authority requires to satisfy its eligibility for financing of a loan from the proceeds of its general obligation program bonds.

Sec. 125. Sections 32-11a, 32-35 and 32-39 of the general statutes are repealed. (Effective July 1, 2010)


This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2010	32-1l
Sec. 2	July 1, 2010	New section
Sec. 3	July 1, 2010	New section
Sec. 4	July 1, 2010	New section
Sec. 5	July 1, 2010	New section
Sec. 6	July 1, 2010	New section
Sec. 7	July 1, 2010	New section
Sec. 8	October 1, 2010	New section
Sec. 9	July 1, 2010	New section
Sec. 10	July 1, 2010	1-79(l)
Sec. 11	July 1, 2010	1-120
Sec. 12	July 1, 2010	1-124
Sec. 13	July 1, 2010	1-125
Sec. 14	July 1, 2010	3-24d
Sec. 15	July 1, 2010	3-24f
Sec. 16	July 1, 2010	4-124ff
Sec. 17	July 1, 2010	8-134
Sec. 18	July 1, 2010	8-134a
Sec. 19	July 1, 2010	32-23d(w)
Sec. 20	July 1, 2010	32-23k
Sec. 21	July 1, 2010	32-23q
Sec. 22	July 1, 2010	32-23r
Sec. 23	July 1, 2010	32-23t
Sec. 24	July 1, 2010	32-23v(a)(3)
Sec. 25	July 1, 2010	32-23x(a)
Sec. 26	July 1, 2010	32-23z
Sec. 27	July 1, 2010	32-23aa
Sec. 28	July 1, 2010	32-23hh
Sec. 29	July 1, 2010	32-23qq
Sec. 30	July 1, 2010	32-23ss
Sec. 31	July 1, 2010	32-23tt
Sec. 32	July 1, 2010	32-23yy
Sec. 33	July 1, 2010	32-23zz
Sec. 34	July 1, 2010	32-34
Sec. 35	July 1, 2010	32-39c
Sec. 36	July 1, 2010	32-39d
Sec. 37	July 1, 2010	32-39e
Sec. 38	July 1, 2010	32-40
Sec. 39	July 1, 2010	32-40a
Sec. 40	July 1, 2010	32-40b
Sec. 41	July 1, 2010	32-40c
Sec. 42	July 1, 2010	32-41a
Sec. 43	July 1, 2010	32-41b
Sec. 44	July 1, 2010	32-41i
Sec. 45	July 1, 2010	32-41j
Sec. 46	July 1, 2010	32-41k
Sec. 47	July 1, 2010	32-41l
Sec. 48	July 1, 2010	32-41m
Sec. 49	July 1, 2010	32-41n
Sec. 50	July 1, 2010	32-41o
Sec. 51	July 1, 2010	32-41p
Sec. 52	July 1, 2010	32-41q
Sec. 53	July 1, 2010	32-41s
Sec. 54	July 1, 2010	32-41t
Sec. 55	July 1, 2010	32-41u
Sec. 56	July 1, 2010	32-43
Sec. 57	July 1, 2010	32-47
Sec. 58	July 1, 2010	32-47a
Sec. 59	July 1, 2010	32-477
Sec. 60	July 1, 2010	10a-25b
Sec. 61	July 1, 2010	10a-25g
Sec. 62	July 1, 2010	32-41
Sec. 63	July 1, 2010	4-66a(f)
Sec. 64	July 1, 2010	8-250(42)
Sec. 65	July 1, 2010	16-245n
Sec. 66	July 1, 2010	16-245aa
Sec. 67	July 1, 2010	16-245bb(b)
Sec. 68	July 1, 2010	16a-38p(b)
Sec. 69	July 1, 2010	19a-32f(f)
Sec. 70	July 1, 2010	31-11aa(a)
Sec. 71	July 1, 2010	32-1e
Sec. 72	July 1, 2010	32-1k
Sec. 73	July 1, 2010	32-4h
Sec. 74	July 1, 2010	32-6k
Sec. 75	July 1, 2010	32-41v
Sec. 76	July 1, 2010	32-41w
Sec. 77	July 1, 2010	32-344
Sec. 78	July 1, 2010	32-356(e)
Sec. 79	July 1, 2010	32-450
Sec. 80	July 1, 2010	32-462
Sec. 81	July 1, 2010	32-478
Sec. 82	July 1, 2010	32-479
Sec. 83	July 1, 2010	32-480
Sec. 84	July 1, 2010	32-700
Sec. 85	July 1, 2010	32-701(a)
Sec. 86	July 1, 2010	32-717
Sec. 87	July 1, 2010	32-718
Sec. 88	July 1, 2010	8-192(d)
Sec. 89	July 1, 2010	8-192a
Sec. 90	July 1, 2010	8-240m(b)
Sec. 91	July 1, 2010	13b-79w
Sec. 92	July 1, 2010	16-243v
Sec. 93	July 1, 2010	22a-134(1)(P)
Sec. 94	July 1, 2010	22a-173
Sec. 95	July 1, 2010	22a-259
Sec. 96	July 1, 2010	22a-264
Sec. 97	July 1, 2010	25-33a(c)
Sec. 98	July 1, 2010	32-1o(a)
Sec. 99	July 1, 2010	32-5a
Sec. 100	July 1, 2010	32-6j
Sec. 101	July 1, 2010	32-9c(a)
Sec. 102	July 1, 2010	32-9n(b)
Sec. 103	July 1, 2010	32-9cc(d)
Sec. 104	July 1, 2010	32-9kk
Sec. 105	July 1, 2010	32-9qq(b)(1)
Sec. 106	July 1, 2010	32-22b
Sec. 107	July 1, 2010	32-23o(b)
Sec. 108	July 1, 2010	32-23s
Sec. 109	July 1, 2010	32-61
Sec. 110	July 1, 2010	32-141(a)
Sec. 111	July 1, 2010	32-222
Sec. 112	July 1, 2010	32-223
Sec. 113	July 1, 2010	32-227
Sec. 114	July 1, 2010	32-244
Sec. 115	July 1, 2010	32-244a
Sec. 116	July 1, 2010	32-261(k)
Sec. 117	July 1, 2010	32-262(b)
Sec. 118	July 1, 2010	32-265
Sec. 119	July 1, 2010	32-266
Sec. 120	July 1, 2010	32-285(b)
Sec. 121	July 1, 2010	32-341(a)
Sec. 122	July 1, 2010	32-500(1)
Sec. 123	July 1, 2010	32-503
Sec. 124	July 1, 2010	32-609
Sec. 125	July 1, 2010	Repealer section

CE	Joint Favorable
GAE	Joint Favorable

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Bill Text: CT SB00327 | 2010 | General Assembly | Comm Sub

Connecticut Senate Bill 327 (Prior Session Legislation)

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