Bill Text: CT SB00450 | 2010 | General Assembly | Comm Sub

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Bill Title: An Act Establishing A Revolving Loan Fund For Small Businesses.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2010-04-08 - Referred by Senate to Committee on Finance, Revenue and Bonding [SB00450 Detail]

Download: Connecticut-2010-SB00450-Comm_Sub.html

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General Assembly		Raised Bill No. 450
February Session, 2010		LCO No. 2338
		*_____SB00450CE____031910____*
Referred to Committee on Commerce
Introduced by:
(CE)

AN ACT ESTABLISHING A REVOLVING LOAN FUND FOR SMALL BUSINESSES.

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

Section 1. (NEW) (Effective from passage and applicable to taxable years commencing on or after January 1, 2010) (a) For purposes of this section:

(1) "TARP bonus" means aggregate disqualified bonus payments of one million dollars or more received from covered TARP recipients, where such bonus represents a payment received in the taxable year commencing January 1, 2010, or January 1, 2011, or award for work performed during the taxable year commencing January 1, 2010, or January 1, 2011. "TARP bonus" includes, but is not limited to, cash, loans, payments received in a medium other than cash, or arrangements for payments to be awarded in the future.

(2) "Covered TARP recipient" means (A) any entity that, on or after December 31, 2007, received funds directly from the federal Troubled Assets Relief Program established pursuant to P.L. 110-343, (B) any entity that is a member of the same affiliated group, as defined in Section 1504 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, as an entity, association or corporation described in subparagraph (A) of this subdivision, and (C) any partnership, if more than fifty per cent of the capital or profits interests of such partnership are owned, directly or indirectly, by one or more entities, associations or corporations described in subparagraph (A) or (B) of this subdivision.

(3) "Disqualified bonus payment" means any retention payment, incentive payment or other bonus paid by a covered TARP recipient that is in addition to any amount payable to a taxpayer for services performed by such taxpayer at a regular hourly, daily, weekly, monthly or similar periodic rate. "Disqualified bonus payment" does not include commissions, welfare or fringe benefits or expense reimbursements.

(4) "TARP" means the federal Troubled Assets Relief Program established under P.L. 110-343.

(5) "Taxpayer" means any person, trust or estate subject to the tax imposed by chapter 229 of the general statutes.

(b) Notwithstanding the provisions of section 12-700 of the general statutes, for taxable years commencing on January 1, 2010, and January 1, 2011, a taxpayer who receives a TARP bonus shall pay a tax on such bonus at a rate of eight and ninety-seven-hundredths per cent. Such TARP bonus shall not be subject to the provisions of section 12-700 of the general statutes, but any income received by such taxpayer in addition to such TARP bonus shall continue to be subject to the provisions of section 12-700 of the general statutes.

(c) The provisions of this section shall not apply to a taxpayer who irrevocably waives his or her right to the full amount of a TARP bonus or returns the full amount of such bonus to the covered TARP recipient prior to December thirty-first of the applicable taxable year, provided the taxpayer receives no benefit from the covered TARP recipient in connection with the waiver or return of such bonus.

(d) Any reimbursement to a taxpayer by a covered TARP recipient of the tax imposed by this section shall be treated as a disqualified bonus payment to the taxpayer liable for such tax.

(e) The provisions of this section shall apply to any bonus received by a taxpayer from a covered TARP recipient, regardless of whether such covered TARP recipient has repaid in full or in part to the federal government any funds received pursuant to the Troubled Assets Relief Program.

(f) Any covered TARP recipient that pays or awards a TARP bonus of one million dollars or more during the taxable years commencing January 1, 2010, and January 1, 2011, shall comply with the provisions of sections 12-705 and 12-706 of the general statutes, as applicable.

Sec. 2. Subdivision (8) of subsection (a) of section 12-701 of the 2010 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to taxable years commencing on or after January 1, 2010):

(8) "Connecticut taxable income of a resident" means the Connecticut adjusted gross income of a natural person with respect to any taxable year reduced by (A) the amount of the exemption provided in section 12-702, and (B) for applicable taxable years, the amount of any TARP bonus, as defined in section 1 of this act.

Sec. 3. (NEW) (Effective July 1, 2010) (a) As used in this section, "small business" means a business employing fewer than fifty people.

(b) The Department of Economic and Community Development shall establish a small business assistance program to provide direct loans and loan guarantees to small businesses.

(c) As part of the small business assistance program, the department may: (1) (A) Guarantee, make an advance commitment to guarantee or cause to be guaranteed loans to small businesses, or (B) in the case that loans are not made available in the private market in connection with such guarantees, make or cause to be made direct loans to any qualified business; (2) make or cause to be made, direct loans to any small business; and (3) enter into participation agreements with other state or federal agencies, provided such agreements shall be limited to loans and loan guarantees that meet the requirements of the program established pursuant to this section.

(d) There is established an account to be known as the "small business assistance account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be expended by the Department of Economic and Community Development for the purposes of providing the loans and loan guarantees in the small business assistance program.

Sec. 4. (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 twenty 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 deposited into the small business assistance account established pursuant to section 3 of this act, to be used by the Department of Economic and Community Development for the purposes of the small business assistance program.

(c) All provisions of section 3-20 of the general statutes, 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 State Treasurer shall pay such principal and interest as the same become due.

This act shall take effect as follows and shall amend the following sections:
Section 1	from passage and applicable to taxable years commencing on or after January 1, 2010	New section
Sec. 2	from passage and applicable to taxable years commencing on or after January 1, 2010	12-701(a)(8)
Sec. 3	July 1, 2010	New section
Sec. 4	July 1, 2010	New section

CE

Joint Favorable