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General Assembly Raised Bill No. 7080
January Session, 2019
LCO No. 3723
Referred to Committee on COMMERCE
Introduced by:
(CE)
AN ACT CONCERNING CE RTAIN REPORTING REQUIREMEN TS OF
THE DEPARTMENT OF EC ONOMIC AND COMMUNITY
DEVELOPMENT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsections (a) to (c), inclusive, of section 32-1m of the 1
general statutes are repealed and the following is substituted in lieu 2
thereof (Effective October 1, 2019): 3
(a) Not later than February first, annually, the Commissioner of 4
Economic and Community Development shall submit a report to the 5
Governor, the Auditors of Public Accounts and the joint standing 6
committees of the General Assembly having cognizance of matters 7
relating to appropriations and the budgets of state agencies, finance, 8
revenue and bonding and commerce, in accordance with the 9
provisions of section 11-4a. Not later than thirty days after submission 10
of the report, said commissioner shall post the report on the 11
Department of Economic and Community Development's we b site. 12
Such report shall include, but not be limited to, the following 13
information with regard to the activities of the Department of 14 Raised Bill No. 7080
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Economic and Community Development, [and to business assistance 15
or] business assistance programs administered by Connecticut 16
Innovations, Incorporated and tax incentive programs not 17
administered by the department, during the preceding state fiscal year: 18
(1) A brief description and assessment of the state's economy during 19
such year, utilizing the most recent and reasonably available data, and 20
including: 21
(A) Connecticut employment by industry; 22
(B) Connecticut and national average unemployment; and 23
(C) Connecticut gross state product, by industry. 24
(2) An analysis of the economic development portfolio of the 25
department, including, but not limited to, each business assistance or 26
incentive program, including any business tax credit or abatement 27
program, grant, loan, forgivable loan or other form of assistance, 28
enacted for the purpose of improving economic development. The 29
analysis shall include: 30
(A) The Internet web site address of the state's open data portal and 31
an indication of where the name, address and location of each recipient 32
of the department's assistance is published on the site along with the 33
following information concerning each recipient: (i) Business activities, 34
(ii) standard industrial classification codes or North American 35
industrial classification codes, (iii) whether the recipient is a minority 36
or woman-owned business, (iv) a summary of the terms and 37
conditions for the assistance, including the type and amount of state 38
financial assistance and job creation or retention requirements, (v) the 39
amount of investments from private and other nonstate sources that 40
have been leveraged by the assistance, and (vi) the amount of state 41
investment; 42
(B) A portfolio analysis, including an analysis of the wages paid by 43
recipients of financial assistance by industry; 44 Raised Bill No. 7080
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(C) An investment analysis, including (i) total portfolio value, (ii) 45
total investment by industry, (iii) portfolio dollar per job average, (iv) 46
portfolio leverage ratio; 47
(D) An overview of the business assistance and incentive programs 48
administered by the department and an analysis of their estimated 49
economic impact on the state's economy. The analysis shall include, for 50
each business assistance or incentive program for which such data is 51
available, the number of new jobs created, the borrowing cost to the 52
state and the estimated impact of such program on annual state 53
revenues; 54
(E) An analysis of whether the statutory and programmatic goals of 55
each business or incentive program are being met, with obstacles to 56
such goals identified, if possible; 57
(F) (i) Recommendations as to whether any existing business 58
assistance or incentive program should be continued, modified or 59
repealed and the basis or bases for such recommendations, and (ii) any 60
recommendations for additional data collection by the state to better 61
inform future evaluations of such programs; and 62
(G) The methodologies and assumptions used in carrying out the 63
analyses under this subdivision. 64
(3) An analysis of the community development portfolio of the 65
department, including: 66
(A) The Internet web site address of the state's open data portal and 67
an indication of where the name, address and location of each recipient 68
of the department's assistance is published on the site along with the 69
following information concerning each recipient: (i) Amount of state 70
investment, (ii) a summary of the terms and conditions for the 71
department's assistance, including the type and amount of state 72
financial assistance, and (iii) the amount of investments from private 73
and other nonstate sources that have been leveraged by such 74
assistance; and 75 Raised Bill No. 7080
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(B) An investment analysis, including (i) total active portfolio value, 76
(ii) total investments made in the preceding state fiscal year, and (iii) 77
total portfolio leverage ratio. 78
(4) An analysis of each business assistance [or incentive program, 79
including any business tax credit or abatement program, grant, loan, 80
forgivable loan or other form of assistance,] program administered by 81
Connecticut Innovations, Incorporated and each tax incentive program 82
enacted for the purpose of improving economic development [, that 83
(A) (i)] and not administered by the department that (A) had ten or 84
more recipients of assistance in the preceding state fiscal year, or [(ii)] 85
(B) credited, abated or distributed more than one million dollars in the 86
preceding state fiscal year. [, and (B) is not administered by the 87
department.] The analysis shall include: 88
(i) An overview of the business assistance or tax incentive program 89
and an analysis of its estimated economic effects on the state's 90
economy; [, including, for each program where such data is available, 91
the number of new jobs created and the estimated impact of such 92
program on annual state revenues;] 93
(ii) An analysis of whether the statutory and programmatic goals of 94
each business assistance or tax incentive program are being met, with 95
obstacles to such goals identified, if possible; 96
(iii) Recommendations as to whether any such existing business 97
assistance or tax incentive program should be continued, modified or 98
repealed and the basis or bases for such recommendations, and any 99
recommendations for additional data collection by the state to better 100
inform future evaluations of such programs; and 101
(iv) The methodologies and assumptions used in carrying out the 102
analysis under this subdivision. 103
(5) A summary of the department's international trade efforts in the 104
preceding state fiscal year, and, to the extent possible, a summary of 105
foreign direct investment that occurred in the state in such year. 106 Raised Bill No. 7080
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(6) A summary of the total social and economic impact of the 107
department's efforts and activities in the areas of economic and 108
community development, and an assessment of the department's 109
performance in terms of meeting its stated goals and objectives. 110
(7) With regard to the Small Business Express program established 111
pursuant to section 32-7g, data on (A) the number of small businesses 112
that applied to the Small Business Express program, (B) the number of 113
small businesses that received assistance under said program and the 114
general categories of such businesses, (C) the amounts and types of 115
assistance provided, (D) the total number of jobs on the date of 116
application and the number proposed to be created or retained, and (E) 117
the most recent employment figures of the small businesses receiving 118
assistance. 119
(8) With regard to airport development zones established pursuant 120
to section 32-75d, a summary of the economic and cost benefits of each 121
zone and any recommended revisions to any such zones. 122
(9) An overview of the department's activities related to tourism, the 123
arts and historic preservation. 124
(10) An overview of the department's activities concerning digital 125
media, motion pictures and related production activity, and an 126
analysis of the use of the film production tax credit established under 127
section 12-217jj, the entertainment industry infrastructure tax credit 128
established under section 12-217kk and the digital animation 129
production tax credit established under section 12-217ll, including the 130
amount of any tax credit issued under said sections and the total 131
amount of production expenses or costs incurred in the state by the 132
taxpayer who was issued such a tax credit. 133
(11) A summary of the department's and the office of the permit 134
ombudsman's brownfield-related efforts and activities in the preceding 135
fiscal year. 136
(12) A summary of the department's dry cleaning establishment 137 Raised Bill No. 7080
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remediation account activities in the preceding fiscal year. 138
(b) Any annual report that is required from the department by any 139
provision of the general statutes shall be incorporated into the annual 140
report submitted pursuant to subsection (a) of this section. 141
(c) [On or before March 1, 2018, and annually thereafter] Not later 142
than sixty days after the submission of a report by the Auditors of 143
Public Accounts pursuant to section 2-90c, the joint standing 144
committees of the General Assembly having cognizance of matters 145
relating to appropriations and the budgets of state agencies, finance, 146
revenue and bonding and commerce shall hold, individually or jointly, 147
one or more public hearings on such report and the analyses included 148
in the annual report under subdivisions (2) and (4) of subsection (a) of 149
this section. 150
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2019 32-1m(a) to (c)
Statement of Purpose:
To require the Department of Economic and Community Development
to include in its annual report information on tax incentive programs
administered by other state agencies, but not all business assistance
programs administered by other agencies.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]