General Assembly Governor's Bill No. 6383 January Session, 2011 LCO No. 3607 *_____HB06383CE____032211____* Referred to Committee on Commerce Introduced by: REP. DONOVAN, 84th Dist. REP. SHARKEY, 88th Dist. SEN. WILLIAMS, 29th Dist. SEN. LOONEY, 11th Dist. General Assembly Governor's Bill No. 6383 January Session, 2011 LCO No. 3607 *_____HB06383CE____032211____* Referred to Committee on Commerce Introduced by: REP. DONOVAN, 84th Dist. REP. SHARKEY, 88th Dist. SEN. WILLIAMS, 29th Dist. SEN. LOONEY, 11th Dist. AN ACT CREATING AN ECONOMIC DEVELOPMENT GRANTS PROGRAM. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2011) (a) The Commissioner of Economic and Community Development shall establish an economic development grants program to provide grants for the following programs and purposes: (1) To develop a small business incubator program to entities operating incubator facilities, as defined in section 32-34 of the general statutes; (2) To promote, retain and expand hydrogen and fuel cell industries in Connecticut; (3) To promote supply chain integration and encourage the adoption of digital manufacturing and information technologies; (4) To provide training for small and medium-sized businesses in high-performance work practices; (5) To support the development of marine science, maritime and homeland security defense industries; (6) To promote research innovation and nanotechnology; and (7) To provide technical assistance to small business owners. (b) The Department of Economic and Community Development may enter into an agreement, pursuant to chapter 55a of the general statutes, with a person, firm, corporation or other entity to operate the grants program developed pursuant to subsection (a) of this section. (c) The commissioner shall prescribe the manner in which an entity shall submit an application for a grant awarded as part of the grants program developed pursuant to this section, provided such application procedure includes (1) a request for proposal, or (2) a competitive award process. Sec. 2. Subsection (b) of section 32-235 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011): (b) The proceeds of the sale of said bonds, to the extent of the amount stated in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 (1) for the purposes of sections 32-220 to 32-234, inclusive, including economic cluster-related programs and activities, and for the Connecticut job training finance demonstration program pursuant to sections 32-23uu and 32-23vv provided, (A) three million dollars shall be used by said department solely for the purposes of section 32-23uu and not more than five million two hundred fifty thousand dollars of the amount stated in said subsection (a) may be used by said department for the purposes of section 31-3u, (B) not less than one million dollars shall be used for an educational technology grant to the deployment center program and the nonprofit business consortium deployment center approved pursuant to section 32-41l, (C) not less than two million dollars shall be used by said department for the establishment of a pilot program to make grants to businesses in designated areas of the state for construction, renovation or improvement of small manufacturing facilities provided such grants are matched by the business, a municipality or another financing entity. The Commissioner of Economic and Community Development shall designate areas of the state where manufacturing is a substantial part of the local economy and shall make grants under such pilot program which are likely to produce a significant economic development benefit for the designated area, (D) five million dollars may be used by said department for the manufacturing competitiveness grants program, (E) one million dollars shall be used by said department for the purpose of a grant to the Connecticut Center for Advanced Technology, for the purposes of [section 32-237] subdivision (5) of subsection (a) of section 1 of this act, (F) fifty million dollars shall be used by said department for the purpose of grants to the United States Department of the Navy, the 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, located in Groton, which will increase the military value of said base. Such projects shall not be subject to the provisions of sections 4a-60 and 4a-60a, (G) two million dollars shall be used by said department for the purpose of a grant to the Connecticut Center for Advanced Technology, Inc., for manufacturing initiatives, including aerospace and defense, and (H) two million dollars shall be used by said department for the purpose of a grant to companies adversely impacted by the construction at the Quinnipiac Bridge, where such grant may be used to offset the increase in costs of commercial overland transportation of goods or materials brought to the port of New Haven by ship or vessel, and (2) for the purposes of the small business assistance program established pursuant to section 32-9yy, provided fifteen million dollars shall be deposited in the small business assistance account established pursuant to said section 32-9yy. The provisions of sections 32-220 to 32-234, inclusive, shall not apply to such funds authorized pursuant to this subdivision. Sec. 3. Section 32-356 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011): [(a) For purposes of this section, "incubator facilities" shall have the same meaning as incubator facilities in section 32-34. (b) The Commissioner of Economic and Community Development shall establish the small business incubator program to provide grants to entities operating incubator facilities, as defined in section 32-34. The Department of Economic and Community Development may enter into an agreement, pursuant to chapter 55a, with a person, firm, corporation or other entity to operate such program. The department, or a program operator selected pursuant to this subsection, shall, subject to the availability of funds, operate a technology-based small business incubator program. In accordance with the written guidelines developed by the department, the department or program operator, if any, may provide grants to assist small businesses operating within incubator facilities. Grants made pursuant to this section shall be used by such entities to provide operating funds and related services, including business plan preparation, assistance in acquiring financing and management counseling. (c) An entity shall submit an application for a grant pursuant to this section in the manner prescribed by the Commissioner of Economic and Community Development.] [(d)] There is established an account to be known as the small business incubator account, which shall be a separate, nonlapsing account within the General Fund. The commissioner may use funds from the account to provide administrative expenses and grants [pursuant to this section] for the purposes of subdivision (1) of subsection (a) of section 1 of this act. [(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, as ex-officio nonvoting members, or their designees; (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. 4. Sections 32-9ww, 32-237 and 32-348 of the general statutes are repealed. (Effective July 1, 2011) This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2011 New section Sec. 2 July 1, 2011 32-235(b) Sec. 3 July 1, 2011 32-356 Sec. 4 July 1, 2011 Repealer section This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2011 New section Sec. 2 July 1, 2011 32-235(b) Sec. 3 July 1, 2011 32-356 Sec. 4 July 1, 2011 Repealer section CE Joint Favorable CE Joint Favorable