| 17 | 17 | | |
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| 18 | 18 | | Referred to Committee on Commerce |
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| 19 | 19 | | |
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| 20 | 20 | | Introduced by: |
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| 21 | 21 | | |
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| 22 | 22 | | (CE) |
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| 23 | 23 | | |
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| 24 | 24 | | AN ACT CONCERNING THE RECOMMENDATIONS OF THE CONNECTICUT TECHNOLOGY COUNCIL. |
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| 25 | 25 | | |
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| 26 | 26 | | Be it enacted by the Senate and House of Representatives in General Assembly convened: |
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| 27 | 27 | | |
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| 28 | 28 | | Section 1. (Effective from passage) (a) On or before October 1, 2011, the Commissioner of Higher Education, in consultation with the Commissioner of Economic and Community Development, or their designees, shall, within existing budgetary resources, develop a plan to create and implement a university and industry research initiative to create a joint research institute between The University of Connecticut and private colleges in the state and use such joint research initiative to promote technology transfer programs to promote commercialization of technology developed at The University of Connecticut and private colleges. Such plan shall also identify business entities that may be interested in providing such joint research initiative with financial resources or other support. |
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| 29 | 29 | | |
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| 30 | 30 | | (b) On or before January 1, 2012, the Commissioner of Higher Education shall report to the joint standing committees of the General Assembly having cognizance of matters relating to higher education and commerce on the plan developed pursuant to subsection (a) of this section. Such report shall include the projected cost of creating and implementing a joint research institute between The University of Connecticut and private colleges in the state, a list of researchers at The University of Connecticut or private colleges willing to participate in the joint research initiative, the name of any private college in the state willing to participate in the initiative, the identities of any business entity willing to support such joint research initiative, and recommendations for administrative or legislative action needed to implement the plan. |
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| 31 | 31 | | |
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| 32 | 32 | | Sec. 2. (NEW) (Effective July 1, 2011) (a) For purposes of this section "virtual incubator portal" means an Internet web site designed and developed to provide research, consulting and other services to assist small technology-based companies. |
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| 33 | 33 | | |
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| 34 | 34 | | (b) The Commissioner of Economic and Community Development shall establish the virtual business incubator program to provide grants, subject to the availability of funds, to small technology-based companies that are assisted by the virtual incubator portal. 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 virtual incubator portal. The department, or a program operator selected pursuant to this subsection, shall operate the virtual incubator portal to provide assistance to small technology-based companies. In accordance with written guidelines developed by the department, the department or program operator, if any, may provide grants to assist small businesses operating within the virtual incubator portal. Grants made pursuant to this section shall be used by such small businesses to provide operating funds and related services, including business plan preparation, assistance in acquiring financing and management counseling. |
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| 35 | 35 | | |
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| 36 | 36 | | (c) A small technology-based company shall submit an application for a grant pursuant to this section in the manner prescribed by the Commissioner of Economic and Community Development. |
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| 37 | 37 | | |
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| 38 | 38 | | (d) There is established an account to be known as the virtual 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. |
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| 39 | 39 | | |
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| 40 | 40 | | (e) (1) There is established a Virtual Business Incubator Advisory Board. Said board shall consist of: (A) The Commissioner of Economic and Community Development or a designee; (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 to be appointed by the speaker of the House of Representatives, who shall have experience in the field of technology transfer and commercialization; (E) two members to be appointed by the president pro tempore of the Senate, who shall have experience in new product and market development; (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 to be appointed by the minority leader of the House of Representatives, who shall have experience in seed and early stage capital investment; and (I) one member to be appointed by the minority leader of the Senate, who shall have experience in seed and early stage capital investment. All initial appointments to said board shall be made not later than October 1, 2011. |
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| 41 | 41 | | |
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| 42 | 42 | | (2) The Commissioner of Economic and Community Development shall schedule the first meeting of said board not later than January 1, 2012. Thereafter, the board shall meet at least once annually to evaluate and recommend changes to the guidelines adopted pursuant to this section. |
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| 43 | 43 | | |
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| 44 | 44 | | (f) The Commissioner of Economic and Community Development shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, establishing eligibility criteria for the distribution and use of grants pursuant to this section. |
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| 45 | 45 | | |
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| 46 | 46 | | Sec. 3. (Effective July 1, 2011) The sum of fifty million dollars is appropriated to Connecticut Innovations, Incorporated, from the General Fund, for the fiscal year ending June 30, 2012, for the provision of preseed financing, seed financing, start-up financing, early or first-stage financing and expansion financing to companies in the state through the early-stage venture capital program, established pursuant to section 32-41w of the general statutes. |
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| 47 | 47 | | |
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| 48 | 48 | | Sec. 4. (NEW) (Effective October 1, 2011) (a) There is established a sidecar investment fund program to be administered by Connecticut Innovations, Incorporated, for the purpose of providing grants to match preseed financing or seed financing by angel investors investing in companies in the state. "Angel investor" shall have the same meaning as in section 12-704d of the general statutes, as amended by this act, and "preseed financing" and "seed financing" shall have the same meanings as in section 32-34 of the general statutes. |
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| 49 | 49 | | |
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| 50 | 50 | | (b) To implement the program established in subsection (a) of this section, the corporation shall establish criteria for providing matching investments and shall develop and implement a plan to market the program. |
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| 51 | 51 | | |
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| 52 | 52 | | (c) The board of the corporation shall review and approve each application for matching grants for such financing. |
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| 53 | 53 | | |
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| 54 | 54 | | (d) The grants authorized pursuant to this section shall be allocated as follows: (1) Ninety per cent of the investments shall match angel investment funding; and (2) not more than ten per cent shall be set aside to invest in state university student entrepreneurs receiving angel investment funding. Not more than a fifty per cent match, up to a maximum of two hundred fifty thousand dollars, shall be invested in any single company. |
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| 55 | 55 | | |
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| 56 | 56 | | (e) The corporation shall adopt procedures, pursuant to section 1-121 of the general statutes, to implement the provisions of this section, including a list of the criteria required pursuant to subsection (b) of this section. |
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| 57 | 57 | | |
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| 58 | 58 | | (f) A review of the effectiveness of the program established by this section shall be conducted by the corporation by September 1, 2016. Such review shall be submitted, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to commerce and finance, revenue and bonding. |
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| 59 | 59 | | |
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| 60 | 60 | | Sec. 5. (NEW) (Effective July 1, 2011) (a) There is established the Young Innovators Corp Board within the Department of Economic and Community Development. The board shall consist of ten members, of which seven are voting members and three are ex-officio nonvoting members. |
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| 61 | 61 | | |
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| 62 | 62 | | (b) (1) The voting members of the board shall be appointed as follows: (A) One appointed by the Governor; (B) one appointed by the speaker of the House of Representatives; (C) one appointed by the president pro tempore of the Senate; (D) one appointed by the majority leader of the House of Representatives; (E) one appointed by the majority leader of the Senate; (F) one appointed by the minority leader of the House of Representatives; and (G) one appointed by the minority leader of the Senate. All the members appointed pursuant to this section shall represent businesses in the state that develop new technologies, provide venture capital, manufacture products or provide business consulting services in the state. |
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| 63 | 63 | | |
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| 64 | 64 | | (2) The ex-officio nonvoting members shall consist of the following members, or their designees: The Commissioners of Higher Education and Economic and Community Development and the chairperson of the board of Connecticut Innovations, Incorporated. |
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| 65 | 65 | | |
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| 66 | 66 | | (3) The voting members shall serve for a term of four years. The members of the board shall serve without compensation but shall, within the limits of available funds, be reimbursed for expenses necessarily incurred in the performance of their duties. |
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| 67 | 67 | | |
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| 68 | 68 | | (4) The Governor's appointee shall be the chairperson of the board. The board may create other positions it deems necessary and may fill such positions from among its members. The powers of the board shall be vested in and exercised by not less than four members of the board. Four members of the board shall constitute a quorum. The board may solicit and receive funds from any public or private sources to carry out its activities. |
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| 69 | 69 | | |
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| 70 | 70 | | (c) The Young Innovators Corp Board shall: |
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| 71 | 71 | | |
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| 72 | 72 | | (1) Develop and implement a plan to attract youths from around the world to live and establish businesses in the state by using competitions for best global business plans with stipends and start-up financing, as defined in section 32-34 of the general statutes, as prizes; |
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| 73 | 73 | | |
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| 74 | 74 | | (2) Develop and implement a plan to solicit socially-useful community-based projects using social media and new technologies by using competitions, and provide stipends and project funding as prizes; and |
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| 75 | 75 | | |
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| 76 | 76 | | (3) Develop and propose a plan to provide business entities in the state with interns, provided the state agrees to pay the first year of costs associated with such interns and the business entity agrees to hire any provided interns for one or more additional years. |
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| 77 | 77 | | |
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| 78 | 78 | | (d) The board may request other state agencies, including, but not limited to, the Departments of Higher Education and Economic and Community Development, and Connecticut Innovations, Incorporated, to provide information, reports and other assistance in carrying out its duties. |
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| 79 | 79 | | |
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| 80 | 80 | | (e) On or before January 1, 2012, and annually thereafter, the chairperson of the board shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the Governor and the joint standing committee of the General Assembly having cognizance of matters relating to commerce. Such report shall indicate any progress made by the board in the development and implementation of the competitions or intern program in accordance with subsection (c) of this section, provide recommendations for sources of revenue to fund this section and recommendations for legislative action needed to assist the board in achieving its directive. |
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| 81 | 81 | | |
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| 82 | 82 | | Sec. 6. Subsection (b) of section 12-704d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011): |
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| 83 | 83 | | |
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| 84 | 84 | | (b) There shall be allowed a credit against the tax imposed under this chapter, other than the liability imposed by section 12-707, for a cash investment of not less than one hundred thousand dollars in the qualified securities of a Connecticut business by an angel investor. The credit shall be in an amount equal to twenty-five per cent of such investor's cash investment, provided the total tax credits allowed to any angel investor shall not exceed two hundred fifty thousand dollars. The credit shall be claimed in the taxable year in which such cash investment is made by the angel investor. [and shall not be transferable] Any credit allowed pursuant to this section may be sold, assigned or otherwise transferred, in whole or in part, to one or more taxpayers. |
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| 85 | 85 | | |
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| 86 | 86 | | Sec. 7. Subsection (a) of section 32-1c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011): |
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| 87 | 87 | | |
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| 88 | 88 | | (a) In addition to any other powers, duties and responsibilities provided for in this chapter, chapter 131, chapter 579 and section 4-8 and subsection (a) of section 10-409, the commissioner shall have the following powers, duties and responsibilities: (1) To administer and direct the operations of the Department of Economic and Community Development; (2) to report annually to the Governor, as provided in section 4-60; (3) to conduct and administer the research and planning functions necessary to carry out the purposes of said chapters and sections; (4) to encourage and promote the development of industry and business in the state and to investigate, study and undertake ways and means of promoting and encouraging the prosperous development and protection of the legitimate interest and welfare of Connecticut business, industry and commerce, within and outside the state; (5) to serve, ex officio as a director on the board of Connecticut Innovations, Incorporated; (6) to serve as a member of the Committee of Concern for Connecticut Jobs; (7) to promote and encourage the location and development of new business in the state as well as the maintenance and expansion of existing business and for that purpose to cooperate with state and local agencies and individuals both within and outside the state; (8) to plan and conduct a program of information and publicity designed to attract tourists, visitors and other interested persons from outside the state to this state and also to encourage and coordinate the efforts of other public and private organizations or groups of citizens to publicize the facilities and attractions of the state for the same purposes; (9) to advise and cooperate with municipalities, persons and local planning agencies within the state for the purpose of promoting coordination between the state and such municipalities as to plans and development; (10) by reallocating funding from other agency accounts or programs, to assign adequate and available staff to provide technical assistance to businesses in the state in exporting, manufacturing and cluster-based initiatives and to provide guidance and advice on regulatory matters; (11) to provide all necessary staff, services, accounting and office space and equipment required by the Connecticut Development Authority subject to the provisions of section 4b-23, where real estate acquisitions are involved; (12) to aid minority businesses in their development; (13) to appoint such assistants, experts, technicians and clerical staff, subject to the provisions of chapter 67, as are necessary to carry out the purposes of said chapters and sections; (14) to employ other consultants and assistants on a contract or other basis for rendering financial, technical or other assistance and advice; (15) to acquire or lease facilities located outside the state subject to the provisions of section 4b-23; (16) to advise and inform municipal officials concerning economic development and collect and disseminate information pertaining thereto, including information about federal, state and private assistance programs and services pertaining thereto; (17) to inquire into the utilization of state government resources and coordinate federal and state activities for assistance in and solution of problems of economic development and to inform and advise the Governor about and propose legislation concerning such problems; (18) to conduct, encourage and maintain research and studies relating to industrial and commercial development; (19) to prepare and review model ordinances and charters relating to these areas; (20) to maintain an inventory of data and information and act as a clearinghouse and referral agency for information on state and federal programs and services relative to the purpose set forth herein. The inventory shall include information on all federal programs of financial assistance for defense conversion projects and other projects consistent with a defense conversion strategy and shall identify businesses which would be eligible for such assistance and provide notification to such business of such programs; (21) to conduct, encourage and maintain research and studies and advise municipal officials about forms of cooperation between public and private agencies designed to advance economic development; (22) to promote and assist the formation of municipal and other agencies appropriate to the purposes of this chapter; (23) to require notice of the submission of all applications by municipalities and any agency thereof for federal and state financial assistance for economic development programs as relate to the purposes of this chapter; (24) with the approval of the Commissioner of Administrative Services, to reimburse any employee of the department, including the commissioner, for reasonable business expenses, including but not limited to, mileage, travel, lodging, and entertainment of business prospects and other persons to the extent necessary or advisable to carry out the purposes of subdivisions (4), (7), (8) and (11) of this subsection and other provisions of this chapter; (25) to assist in resolving solid waste management issues; (26) (A) to serve as an information clearinghouse for various public and private programs available to assist businesses, (B) to identify specific micro businesses, as defined in section 32-344, whose growth and success could benefit from state or private assistance and contact such small businesses in order to (i) identify their needs, (ii) provide information about public and private programs for meeting such needs, including, but not limited to, technical assistance, job training and financial assistance, and (iii) arrange for the provision of such assistance to such businesses; (27) to enhance and promote the digital media and motion picture industries in the state; (28) by reallocating funding from other agency accounts or programs, to develop a marketing campaign that promotes Connecticut as a place of innovation and a place with a high quality of life, and highlights the state as a hub between the cities of New York, New York and Boston, Massachusetts; and (29) by reallocating funding from other agency accounts or programs, to execute the steps necessary to implement the knowledge corridor agreement with Massachusetts to promote the biomedical device industry. |
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| 89 | 89 | | |
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| 90 | 90 | | Sec. 8. Section 32-4f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011): |
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| 91 | 91 | | |
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| 92 | 92 | | (a) There is created a Connecticut Economic Conference Board. Said board shall consist of (1) the Governor, or his designee; (2) the Commissioner of Economic and Community Development; (3) the Commissioner of Higher Education and the commissioners of four state agencies in the executive department which have jurisdiction over matters of importance to economic clusters, who shall be appointed by the Governor; (4) the chairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to commerce, finance, revenue and bonding, and education; (5) a representative of each of the following areas: (A) Technology research, discovery or deployment, who shall be appointed by the president pro tempore of the Senate; (B) workforce training, job retention or human resources, who shall be appointed by the majority leader of the Senate; (C) financial or venture capital, who shall be appointed by the minority leader of the Senate; (D) telecommunications, energy, transportation or other physical infrastructure, who shall be appointed by the speaker of the House of Representatives; (E) regulatory, taxes or other financial services, who shall be appointed by the majority leader of the House of Representatives; (F) environmental, housing, the arts or any other aspect of quality of life, who shall be appointed by the minority leader of the House of Representatives; and (6) two economists, who shall be appointed by the Governor. Each member of the board described in subdivision (2), (3) or (4) of this subsection may designate a deputy to represent him as a member at meetings of the board, with full powers to act and vote in his behalf. All appointments under subdivisions (3), (5) and (6) of this subsection shall be made by October 1, 1996. The persons initially appointed under subparagraphs (A) and (D) of subdivision (5) of this subsection shall serve for a term of three years from October 1, 1996, the persons initially appointed under subparagraphs (B) and (E) of said subdivision shall serve for a term of two years from October 1, 1996, and the persons initially appointed under subparagraphs (C) and (F) of said subdivision shall serve for a term of one year from October 1, 1996. Thereafter all persons appointed under said subdivision (5) shall serve for terms of three years from October first in the year of their appointment. Any vacancy under said subdivision shall be filled by the appointing authority. Each member of the board shall serve without compensation. The board shall choose a chairman from among its members. |
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| 93 | 93 | | |
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| 94 | 94 | | (b) The Governor shall schedule and convene the first meeting of the board after the initial appointment of members under subdivisions (3), (5) and (6) of subsection (a) of this section. Such meeting shall be held no later than November 1, 1996. |
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| 95 | 95 | | |
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| 96 | 96 | | (c) Not later than January 1, 1998, and annually thereafter, the board shall submit a report to the Governor, the Commissioner of Economic and Community Development and the General Assembly on the state of economic clusters in the state and the nation. Such report shall include, but not be limited to, analyses of (1) the growth, maturity and decline of existing economic clusters, and (2) the formation of new economic clusters which employ emerging technologies. The board shall annually hold an economic cluster conference for the purpose of gathering information for such report. The board shall invite to the conference, business leaders, government officials and higher education faculty who work in, support or study economic clusters. |
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| 97 | 97 | | |
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| 98 | 98 | | (d) Not later than January 1, 2012, the board shall establish a data center to monitor economic cluster growth in the state and to track the success of new businesses in the state. The data center established pursuant to this subsection shall be within the Department of Economic and Community Development for administrative purposes. The data compiled by the data center shall be provided to the board and shall be used to prepare a report for the quarter commencing July 1, 2012, and for each quarter thereafter. The chairperson of the board shall submit the report, in accordance with the provisions of section 11-4a, to the Governor and the joint standing committee of the General Assembly having cognizance of matters relating to commerce. Such report shall detail any growth in an economic cluster, identify business entities with high growth potential, detail the number of new business entities established in each quarter and shall recommend administrative or legislative action needed to facilitate the growth of business entities or economic clusters in the state. |
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| 99 | 99 | | |
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| 100 | 100 | | |
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| 101 | 101 | | |
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| 102 | 102 | | |
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| 103 | 103 | | This act shall take effect as follows and shall amend the following sections: |
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| 104 | 104 | | Section 1 from passage New section |
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| 105 | 105 | | Sec. 2 July 1, 2011 New section |
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| 106 | 106 | | Sec. 3 July 1, 2011 New section |
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| 107 | 107 | | Sec. 4 October 1, 2011 New section |
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| 108 | 108 | | Sec. 5 July 1, 2011 New section |
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| 109 | 109 | | Sec. 6 July 1, 2011 12-704d(b) |
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| 110 | 110 | | Sec. 7 July 1, 2011 32-1c(a) |
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| 111 | 111 | | Sec. 8 July 1, 2011 32-4f |
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| 112 | 112 | | |
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| 113 | 113 | | This act shall take effect as follows and shall amend the following sections: |
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| 114 | 114 | | |
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| 115 | 115 | | Section 1 |
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| 116 | 116 | | |
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| 117 | 117 | | from passage |
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| 118 | 118 | | |
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| 119 | 119 | | New section |
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| 120 | 120 | | |
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| 121 | 121 | | Sec. 2 |
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| 122 | 122 | | |
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| 123 | 123 | | July 1, 2011 |
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| 124 | 124 | | |
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| 125 | 125 | | New section |
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| 126 | 126 | | |
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| 127 | 127 | | Sec. 3 |
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| 128 | 128 | | |
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| 129 | 129 | | July 1, 2011 |
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| 130 | 130 | | |
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| 131 | 131 | | New section |
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| 132 | 132 | | |
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| 133 | 133 | | Sec. 4 |
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| 134 | 134 | | |
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| 135 | 135 | | October 1, 2011 |
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| 136 | 136 | | |
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| 137 | 137 | | New section |
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| 138 | 138 | | |
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| 139 | 139 | | Sec. 5 |
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| 140 | 140 | | |
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| 141 | 141 | | July 1, 2011 |
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| 142 | 142 | | |
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| 143 | 143 | | New section |
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| 144 | 144 | | |
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| 145 | 145 | | Sec. 6 |
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| 146 | 146 | | |
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| 147 | 147 | | July 1, 2011 |
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| 148 | 148 | | |
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| 149 | 149 | | 12-704d(b) |
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| 150 | 150 | | |
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| 151 | 151 | | Sec. 7 |
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| 152 | 152 | | |
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| 153 | 153 | | July 1, 2011 |
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| 154 | 154 | | |
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| 155 | 155 | | 32-1c(a) |
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| 156 | 156 | | |
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| 157 | 157 | | Sec. 8 |
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| 158 | 158 | | |
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| 159 | 159 | | July 1, 2011 |
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| 160 | 160 | | |
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| 161 | 161 | | 32-4f |
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| 162 | 162 | | |
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