Connecticut House Bill HB06466

Connecticut 2013 Regular Session

• Introduced: 2/21/13
• Refer: 2/21/13
• Report Pass: 3/7/13
• Refer: 3/18/13
• Report Pass: 3/25/13
• Engrossed: 4/10/13
• Report Pass: 4/11/13
• Chaptered: 5/20/13
• Enrolled: 5/22/13
• Passed: 5/28/13

Caption

An Act Clarifying Collateral Requirements For Applicants For Financial Assistance From The Department Of Economic And Community Development And Connecticut Innovations, Incorporated.

Impact

The proposed legislation seeks to refine existing regulations regarding the collateral necessary for applicants of state assistance in Connecticut. By mandating that businesses provide appropriate forms of security—such as letters of credit or liens—the bill aims to protect state funds while incentivizing businesses to meet their job creation commitments. This move could lead to a stronger framework for economic development, ensuring that financial resources are allocated effectively and that recipients remain compliant with state and federal laws.

Summary

House Bill 6466 aims to clarify the collateral requirements for applicants seeking financial assistance from the Department of Economic and Community Development and Connecticut Innovations, Incorporated. The bill stipulates that any agreement for state financial aid administered under various programs must include specific goals related to job creation and retention. It seeks to ensure that entities receiving state assistance are held accountable for their performance and compliance with job-related targets, reinforcing the state’s commitment to boosting employment through strategic support.

Sentiment

The overall sentiment surrounding HB 6466 appears to be cautiously optimistic. Supporters, particularly from the economic development sector, view the bill as a necessary reform to ensure state assistance promotes tangible job growth and economic stability. Critics, however, may argue about the implications of increased collateral requirements, suggesting that it could deter businesses, particularly startups and smaller firms, from applying for state assistance due to perceived financial burdens.

Contention

One notable point of contention is the balance between securing state interests through collateral and fostering a business-friendly environment. While proponents assert that rigorous collateral requirements will enhance accountability and ensure job creation goals are met, opponents fear that these requirements may be overly stringent and could dissuade businesses from seeking state assistance. This debate centers on how best to achieve job retention and creation while ensuring that the state’s financial investments are safeguarded.