Connecticut House Bill HB06221

Connecticut 2011 Regular Session

• Introduced: 1/26/11
• Refer: 1/26/11
• Report Pass: 2/15/11
• Report Pass: 4/21/11
• Refer: 4/29/11
• Report Pass: 5/5/11
• Engrossed: 5/17/11
• Report Pass: 5/19/11
• Chaptered: 6/21/11
• Enrolled: 6/24/11
• Passed: 7/8/11

Caption

An Act Concerning The Elimination Of Certain Sunset Dates.

Impact

The bill's impact on state law primarily relates to the facilitation of ongoing economic development initiatives through the Connecticut Development Authority. It allows the CDA to maintain its capacity to issue bonds for projects that may have a significant economic benefit. This legislative change supports investments in infrastructure and attracts new businesses by ensuring that municipalities have access to financial instruments that can underwrite such projects consistently over time. As a result, potential projects that may have faced uncertainty due to impending expirations of financial authority can now proceed without interruption.

Summary

House Bill 6221, also known as the Act Concerning the Elimination of Certain Sunset Dates, seeks to amend existing statutes governing the Connecticut Development Authority (CDA) and the issuance of bonds for economic development projects. The key change proposed by this bill is the removal of the sunset provision relating to specific financing strategies utilized by the CDA. By eliminating these sunset dates, the bill aims to ensure that the authority can continue its financial assistance programs, particularly for information technology and remediation projects, which are deemed essential for driving economic growth within eligible municipalities.

Sentiment

The general sentiment surrounding HB 6221 appears to be positive among legislators who see the need for continued investment in economic infrastructure without the burden of restrictive time limits. Supporters argue it promotes stability and growth, especially in targeted sectors like information technology and urban redevelopment. However, the change might raise concerns among some factions about the potential for increasing debt levels and a lack of accountability for projects funded through these mechanisms, prompting calls for additional oversight in the use of these financial tools.

Contention

Notable points of contention include the implications of removing sunset dates and the authority it grants to the Connecticut Development Authority when issuing bonds. Critics may argue that this could lead to an unchecked increase in state debt from ongoing projects without periodic reviews of their effectiveness. Furthermore, questions may arise regarding the transparency and benefit-to-cost ratios of projects financed this way. As the CDA retains more power to allocate resources for economic initiatives, stakeholders may advocate for clearer guidelines and performance metrics to ensure that the bond issuance leads to genuine economic growth.