Connecticut 2019 Regular Session

Connecticut Senate Bill SB00570 Compare Versions

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4		-	Senate Bill No. 570
	7	+	General Assembly Committee Bill No. 570
	8	+	January Session, 2019
	9	+	LCO No. 6167
5	10
6		-	Public Act No. 19-54
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	12	+	Referred to Committee on COMMERCE
	13	+
	14	+
	15	+	Introduced by:
	16	+	(CE)
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9	20		AN ACT CONCERNING OPPOR TUNITY ZONES.
10	21		Be it enacted by the Senate and House of Representatives in General
11	22		Assembly convened:
12	23
13		-	Section 1. Section 32-1d of the general statutes is repealed and the
14		-	following is substituted in lieu thereof (Effective July 1, 2019):
15		-	The commissioner shall appoint a Deputy Commissioner of
16		-	Economic and Community Development who shall be qualified by
17		-	training and experience for the duties of the office of commissioner
18		-	and shall, in the absence, disability or disqualification of the
19		-	commissioner, perform all the functions and have all the powers and
20		-	duties of said office. In addition to any other powers, duties or
21		-	responsibilities, the Deputy Commissioner of Economic and
22		-	Community Development shall act as the state's primary point of
23		-	contact for all state programs relating to the federal opportunity zone
24		-	program, established pursuant to the Tax Cuts and Jobs Act of 2017,
25		-	P.L. 115-97. The position of the Deputy Commissioner of Economic
26		-	and Community Development shall be exempt from the classified
27		-	service.
28		-	Sec. 2. Subdivision (1) of subsection (b) of section 32-726 of the
29		-	general statutes is repealed and the following is substituted in lieu
30		-	thereof (Effective July 1, 2019): Senate Bill No. 570
	24	+	Section 1. (Effective from passage) The Commissioner of Economic 1
	25	+	and Community Development shall, not later than January 1, 2020, 2
	26	+	collaborate with local, private and civic partners to host a series of not 3
	27	+	less than five regional events in the state advertising the state's 4
	28	+	federally designated opportunity zones. 5
	29	+	Sec. 2. (Effective from passage) The Commissioner of Economic and 6
	30	+	Community Development shall conduct a study relating to the federal 7
	31	+	opportunity zone program, established pursuant to the Tax Cuts and 8
	32	+	Jobs Act of 2017, P.L. 115-97, and how the state may incentivize the use 9
	33	+	of such program in the state. Such study shall: (1) Identify corporations 10
	34	+	and other beneficiaries of capital gains within the state to develop a 11
	35	+	strategy that focuses such corporations and other beneficiaries' 12
	36	+	qualified opportunity fund investments locally and encourages a 13
	37	+	cycling of capital within the state; (2) identify existing state incentive 14
	38	+	programs that may be used in conjunction with opportunity zone 15
	39	+	benefits; (3) identify existing incentives for businesses participating in 16 Committee Bill No. 570
31	40
32		-	Public Act No. 19-54 2 of 14
33	41
34		-	(b) (1) The commissioner shall establish an office of the permit
35		-	ombudsman for the purpose of expediting review of permit
36		-	applications for projects that would (A) create at least one hundred
37		-	jobs, (B) create fifty jobs, if such project is to be located in an enterprise
38		-	zone designated pursuant to section 32-70, (C) be located in a
39		-	brownfield, as defined in section 32-760, (D) be compatible with the
40		-	state's responsible growth initiatives, (E) be considered transit-oriented
41		-	development, as defined in section 13b-79kk, (F) develop green
42		-	technology business, (G) develop bioscience business, (H) develop any
43		-	of the state's federally designated opportunity zones, or [(H)] (I) meet
44		-	the criteria set forth in subdivision (2) of this subsection. Projects
45		-	ineligible for review under this section are projects for which the
46		-	primary purpose is to (i) effect the final disposal of solid waste,
47		-	biomedical waste or hazardous waste in this state, (ii) produce
48		-	electrical power, unless the production of electricity is incidental and
49		-	not the primary function of the project, (iii) extract natural resources,
50		-	(iv) produce oil, or (v) construct, maintain or operate an oil, petroleum,
51		-	natural gas or sewage pipeline. For purposes of this section,
52		-	"responsible growth initiatives" includes the principles of smart
53		-	growth, as defined in section 1 of public act 09-230, and "green
54		-	technology business" means an eligible business with not less than
55		-	twenty-five per cent of its employment positions being positions in
56		-	which green technology is employed or developed and may include
57		-	the occupation codes identified as green jobs by the Department of
58		-	Economic and Community Development and the Labor Department
59		-	for such purposes. The permit ombudsman shall also assist and
60		-	provide guidance to bioscience businesses seeking to expedite the
61		-	review and approval of permits required by local zoning authorities.
62		-	Sec. 3. (Effective from passage) (a) Notwithstanding any provision of
63		-	the general statutes, the Department of Economic and Community
64		-	Development shall identify and market ten geographically diverse,
65		-	vacant, state-owned properties located in federally designated Senate Bill No. 570
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67		-	Public Act No. 19-54 3 of 14
	46	+	the small business express program to move to opportunity zones and 17
	47	+	recommend additional incentives, including, but not limited to, 18
	48	+	reducing the amount of time a business is required to be in business to 19
	49	+	qualify for a grant and increasing the grant amount for every job 20
	50	+	created; (4) develop a plan to issue bonds of the state for the purpose 21
	51	+	of providing low-interest loans to investors who develop mixed-22
	52	+	income housing in the state's opportunity zones; and (5) recommend 23
	53	+	incentives for investors to develop mixed-income housing that utilizes 24
	54	+	solar power or other renewable energy sources in the state's 25
	55	+	opportunity zones. Not later than February 1, 2020, the commissioner 26
	56	+	shall submit a report on the results of such study, including 27
	57	+	recommendations for any requisite legislative proposals, to the joint 28
	58	+	standing committee of the General Assembly having cognizance of 29
	59	+	matters relating to commerce, in accordance with the provisions of 30
	60	+	section 11-4a of the general statutes. 31
	61	+	Sec. 3. Subdivision (1) of subsection (b) of section 32-726 of the 32
	62	+	general statutes is repealed and the following is substituted in lieu 33
	63	+	thereof (Effective July 1, 2019): 34
	64	+	(b) (1) The commissioner shall establish an office of the permit 35
	65	+	ombudsman for the purpose of expediting review of permit 36
	66	+	applications for projects that would (A) create at least one hundred 37
	67	+	jobs, (B) create fifty jobs, if such project is to be located in an enterprise 38
	68	+	zone designated pursuant to section 32-70, (C) be located in a 39
	69	+	brownfield, as defined in section 32-760, (D) be compatible with the 40
	70	+	state's responsible growth initiatives, (E) be considered transit-oriented 41
	71	+	development, as defined in section 13b-79kk, (F) develop green 42
	72	+	technology business, (G) develop bioscience business, (H) develop any 43
	73	+	of the state's federally designated opportunity zones, or [(H)] (I) meet 44
	74	+	the criteria set forth in subdivision (2) of this subsection. Projects 45
	75	+	ineligible for review under this section are projects for which the 46
	76	+	primary purpose is to (i) effect the final disposal of solid waste, 47
	77	+	biomedical waste or hazardous waste in this state, (ii) produce 48
	78	+	electrical power, unless the production of electricity is incidental and 49 Committee Bill No. 570
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69		-	opportunity zones from the priority list established pursuant to
70		-	subsection (b) of this section. Selection of such state-owned properties
71		-	shall be in accordance with the provisions of subsection (c) of this
72		-	section.
73		-	(b) On or before February 1, 2020, the Department of Economic and
74		-	Community Development shall develop a priority list of
75		-	geographically diverse, vacant, state-owned properties located in
76		-	federally designated opportunity zones to be marketed based on
77		-	criteria to include, but not be limited to, properties that (1) have
78		-	economic development viability, (2) are located in a federally
79		-	designated opportunity zone, (3) have access to transportation or other
80		-	infrastructure, (4) the development of which would be consistent with
81		-	the department's plan of economic development in federally
82		-	designated opportunity zones, and (5) the transfer of which to a
83		-	private party would not conflict with state law.
84		-	(c) The Department of Economic and Community Development
85		-	shall solicit proposals from companies interested in purchasing any of
86		-	the state-owned properties on the priority list developed pursuant to
87		-	subsection (b) of this section. The Commissioner of Economic and
88		-	Community Development shall review such proposals and match up
89		-	to ten of the state-owned properties with such companies. The
90		-	commissioner may (1) sell, notwithstanding chapter 59 of the general
91		-	statutes, any such property owned, possessed or controlled by the
92		-	Department of Economic and Community Development to such
93		-	companies, or (2) present such proposals to the state agency that owns,
94		-	possesses or controls such property, which may sell, notwithstanding
95		-	chapter 59 of the general statutes, such property to such companies.
96		-	Sec. 4. (Effective from passage) Not later than September 1, 2019, and
97		-	within available appropriations, the Department of Economic and
98		-	Community Development shall create and maintain an Internet web
99		-	site that is specifically dedicated to marketing and promoting state- Senate Bill No. 570
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101		-	Public Act No. 19-54 4 of 14
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103		-	owned properties located in federally designated opportunity zones,
104		-	and develop and implement a marketing campaign for such properties
105		-	and Internet web site.
106		-	Sec 5. (Effective from passage) Not later than February 1, 2020, and
107		-	within available appropriations, the Department of Economic and
108		-	Community Development shall host an Opportunity Connecticut
109		-	conference to highlight state programs relating to opportunity zones
110		-	and to network opportunity zone funds and opportunity zone project
111		-	sponsors.
112		-	Sec. 6. (Effective from passage) The Department of Economic and
113		-	Community Development shall, within available appropriations,
114		-	develop marketing materials that highlight the state's economic
115		-	development strategy relating to federally designated opportunity
116		-	zones and methods that may be used by the state and municipalities to
117		-	add value to such opportunity zones.
118		-	Sec. 7. Section 10-416c of the general statutes is repealed and the
119		-	following is substituted in lieu thereof (Effective July 1, 2019):
120		-	(a) As used in this section, the following terms shall have the
121		-	following meanings unless the context clearly indicates another
122		-	meaning:
123		-	(1) "Officer" means the State Historic Preservation Officer
124		-	designated pursuant to 36 CFR 61.2;
125		-	(2) "Certified historic structure" means any property that: (A) Is
126		-	listed individually on the National or State Register of Historic Places,
127		-	or (B) is located in a district listed on the National or State Register of
128		-	Historic Places and has been certified by the officer as contributing to
129		-	the historic character of such district;
130		-	(3) "Certified rehabilitation" means any rehabilitation of a certified Senate Bill No. 570
	85	+	not the primary function of the project, (iii) extract natural resources, 50
	86	+	(iv) produce oil, or (v) construct, maintain or operate an oil, petroleum, 51
	87	+	natural gas or sewage pipeline. For purposes of this section, 52
	88	+	"responsible growth initiatives" includes the principles of smart 53
	89	+	growth, as defined in section 1 of public act 09-230, and "green 54
	90	+	technology business" means an eligible business with not less than 55
	91	+	twenty-five per cent of its employment positions being positions in 56
	92	+	which green technology is employed or developed and may include 57
	93	+	the occupation codes identified as green jobs by the Department of 58
	94	+	Economic and Community Development and the Labor Department 59
	95	+	for such purposes. The permit ombudsman shall also assist and 60
	96	+	provide guidance to bioscience businesses seeking to expedite the 61
	97	+	review and approval of permits required by local zoning authorities. 62
	98	+	This act shall take effect as follows and shall amend the following
	99	+	sections:
131	100
132		-	Public Act No. 19-54 5 of 14
	101	+	Section 1 from passage New section
	102	+	Sec. 2 from passage New section
	103	+	Sec. 3 July 1, 2019 32-726(b)(1)
133	104
134		-	historic structure for (A) residential use of five units or more, (B)
135		-	mixed residential and nonresidential uses, or (C) nonresidential use
136		-	consistent with the historic character of such property or the district in
137		-	which such property is located, as determined by regulations adopted
138		-	by the Department of Economic and Community Development;
139		-	(4) "Owner" means any person, firm, limited liability company,
140		-	nonprofit or for-profit corporation or other business entity or
141		-	municipality that possesses title to an historic structure and that
142		-	undertakes the rehabilitation of such structure;
143		-	(5) "Placed in service" means the completion of substantial
144		-	rehabilitation work that would allow for occupancy of the entire
145		-	building or an identifiable portion of the building;
146		-	(6) "Qualified rehabilitation expenditures" means any costs incurred
147		-	for the physical construction involved in the rehabilitation of a
148		-	certified historic structure, excluding: (A) The owner's personal labor,
149		-	(B) the cost of a new addition, except as required to comply with any
150		-	provision of the State Building Code or the Fire Safety Code, and (C)
151		-	any nonconstruction cost such as architectural fees, legal fees and
152		-	financing fees;
153		-	(7) "Rehabilitation plan" means any narrative, construction plans
154		-	and specifications for the proposed rehabilitation of a certified historic
155		-	structure in sufficient detail for evaluation of compliance with the
156		-	Secretary of the Interior's Standards for Rehabilitation, as established
157		-	in 36 CFR 67;
158		-	(8) "Substantial rehabilitation" or "substantially rehabilitate" means
159		-	the qualified rehabilitation expenditures of a certified historic structure
160		-	that exceed twenty-five per cent of the assessed value of such
161		-	structure;
162		-	(9) "Affordable housing" has the same meaning as provided in Senate Bill No. 570
163		-
164		-	Public Act No. 19-54 6 of 14
165		-
166		-	section 8-39a; and
167		-	(10) "Project" means an undertaking involving rehabilitation work to
168		-	a certified historic structure and any attached or adjacent new
169		-	construction, associated demolition or improvements on the site that
170		-	may affect the historic character or significance of the certified historic
171		-	structure.
172		-	(b) (1) The Department of Economic and Community Development
173		-	shall administer a system of tax credit vouchers within the resources,
174		-	requirements and purposes of this section for owners rehabilitating
175		-	certified historic structures.
176		-	(2) The credit authorized by this section shall be available in the tax
177		-	year in which the substantially rehabilitated certified historic structure
178		-	is placed in service. In the case of projects completed in phases, the tax
179		-	credit shall be prorated to the substantially rehabilitated identifiable
180		-	portion of the building placed in service. If the tax credit is more than
181		-	the amount owed by the taxpayer for the year in which the
182		-	substantially rehabilitated certified historic structure is placed in
183		-	service, the amount that is more than the taxpayer's tax liability may be
184		-	carried forward and credited against the taxes imposed for the
185		-	succeeding five years or until the full credit is used, whichever occurs
186		-	first.
187		-	(3) In the case of projects completed in phases, the Department of
188		-	Economic and Community Development may issue vouchers for the
189		-	substantially rehabilitated identifiable portion of the building placed in
190		-	service.
191		-	(4) If a credit is allowed under this section for rehabilitation of a
192		-	certified historic structure with multiple owners, such credit shall be
193		-	passed through to such owners, or persons designated as partners or
194		-	members of such owners, pro rata or pursuant to an agreement among Senate Bill No. 570
195		-
196		-	Public Act No. 19-54 7 of 14
197		-
198		-	such owners, or persons designated as partners or members of such
199		-	owners, documenting an alternative distribution method without
200		-	regard to other tax or economic attributes of such owners.
201		-	(5) Any owner entitled to a credit under this section may sell,
202		-	assign, or otherwise transfer such credit, in whole or in part, to one or
203		-	more persons, as defined in section 12-1, provided any credit, after
204		-	issuance, may be sold, assigned or otherwise transferred, in whole or
205		-	in part, not more than three times. Such person shall be entitled to
206		-	offset the tax imposed under chapter 207, 208, 209, 210, 211 or 212 as if
207		-	such transferee had incurred the qualified rehabilitation expenditure.
208		-	(6) If a credit under this section is sold, assigned or otherwise
209		-	transferred, whether by the owner or any subsequent transferee, the
210		-	transferor and transferee shall jointly submit written notification of
211		-	such transfer to the Department of Economic and Community
212		-	Development not later than thirty days after such transfer. The
213		-	notification after each transfer shall include the credit voucher number,
214		-	the date of transfer, the amount of such credit transferred, the tax
215		-	credit balance before and after the transfer, the tax identification
216		-	numbers for both the transferor and the transferee, and any other
217		-	information required by the department. Failure to comply with this
218		-	subsection shall result in a disallowance of the tax credit until there is
219		-	full compliance on the part of the transferor and the transferee, and for
220		-	a second or third transfer, on the part of all subsequent transferors and
221		-	transferees.
222		-	(7) The Department of Economic and Community Development
223		-	shall provide a list to the Commissioner of Revenue Services, on an
224		-	annual basis, detailing the credits that have been approved for the
225		-	most recent fiscal year and all sales, assignments and transfers thereof
226		-	that were made under this section for said year.
227		-	(c) The Department of Economic and Community Development Senate Bill No. 570
228		-
229		-	Public Act No. 19-54 8 of 14
230		-
231		-	may adopt regulations, in accordance with chapter 54, to carry out the
232		-	purposes of this section. Such regulations shall include provisions for:
233		-	(1) The filing of applications, (2) the rating criteria for evaluating
234		-	applications, and (3) the timely approval of applications by the
235		-	department. The rating criteria for evaluating applications shall give
236		-	priority to applications of owners rehabilitating certified historic
237		-	structures located in federally designated opportunity zones.
238		-	(d) For the purpose of seeking a tax credit pursuant to subsection (b)
239		-	of this section, prior to beginning any rehabilitation work on a certified
240		-	historic structure, the owner shall submit to the officer (1) (A) a
241		-	rehabilitation plan for a determination of whether such rehabilitation
242		-	work meets the Secretary of the Interior's Standards for Rehabilitation,
243		-	as established in 36 CFR 67, and (B) if such rehabilitation work is
244		-	planned to be undertaken in phases, a complete description of each
245		-	such phase, with anticipated schedules for completion; (2) an estimate
246		-	of the qualified rehabilitation expenditures; and (3) for projects
247		-	pursuant to subdivision [(2)] (3) of subsection (e) of this section, (A) the
248		-	number of units of affordable housing to be created, (B) the proposed
249		-	rents or sale prices of such units, and (C) the median income for the
250		-	municipality where the project is located. For projects under
251		-	subdivision [(2)] (3) of subsection (e) of this section, the owner shall
252		-	submit a copy of data required under subdivision (3) of this subsection
253		-	to the Department of Housing.
254		-	(e) If the officer certifies that the rehabilitation plan conforms to the
255		-	Secretary of the Interior's Standards for Rehabilitation, as established
256		-	in 36 CFR 67, the Department of Econom ic and Community
257		-	Development shall reserve for the benefit of the owner an allocation
258		-	for a tax credit equivalent to (1) twenty-five per cent of the projected
259		-	qualified rehabilitation expenditures, (2) thirty per cent of the
260		-	projected qualified rehabilitation expenditures if the certified historic
261		-	structure is located in a federally designated opportunity zone, or [(2)] Senate Bill No. 570
262		-
263		-	Public Act No. 19-54 9 of 14
264		-
265		-	(3) thirty per cent of the projected qualified rehabilitation expenditures
266		-	if (A) at least twenty per cent of the units are rental units and qualify as
267		-	affordable housing, or (B) at least ten per cent of the units are
268		-	individual homeownership units and qualify as affordable housing.
269		-	No tax credit shall be allocated for the purposes of subdivision [(2)] (3)
270		-	of this subsection unless an applicant received a certificate from the
271		-	Commissioner of Housing pursuant to section 8-37lll confirming that
272		-	the project complies with the definition of affordable housing under
273		-	section 8-39a.
274		-	(f) Following the completion of rehabilitation of a certified historic
275		-	structure in its entirety or in phases to an identifiable portion of the
276		-	building, any owner who seeks a tax credit pursuant to subsection (b)
277		-	of this section shall notify the officer that such rehabilitation is
278		-	complete. Such owner shall provide the officer with documentation of
279		-	work performed on the certified historic structure and shall submit
280		-	certification of the costs incurred in rehabilitating the certified historic
281		-	structure. The officer shall review such rehabilitation and verify its
282		-	compliance with the rehabilitation plan. Following such verification,
283		-	the Department of Economic and Community Development shall issue
284		-	a tax credit voucher to such owner or to the taxpayer named by such
285		-	owner as contributing to the rehabilitation. The tax credit voucher shall
286		-	be in an amount equivalent to the lesser of the tax credit reserved upon
287		-	certification of the rehabilitation plan under the provisions of
288		-	subsection (e) of this section or (1) twenty-five per cent of the actual
289		-	qualified rehabilitation expenditures, or (2) for projects including
290		-	affordable housing pursuant to subdivision [(2)] (3) of subsection (e) of
291		-	this section, thirty per cent of the actual qualified rehabilitation
292		-	expenditures. In order to obtain a credit against any state tax due that
293		-	is specified in subsection (g) of this section, the holder of the tax credit
294		-	voucher shall file the voucher with the holder's state tax return.
295		-	(g) The Commissioner of Revenue Services shall grant a tax credit to Senate Bill No. 570
296		-
297		-	Public Act No. 19-54 10 of 14
298		-
299		-	a taxpayer holding the tax credit voucher issued in accordance with
300		-	subsections (b) to (i), inclusive, of this section against any tax due
301		-	under chapter 207, 208, 209, 210, 211 or 212 in the amount specified in
302		-	the tax credit voucher. Such taxpayer shall submit the voucher and the
303		-	corresponding tax return to the Department of Revenue Services.
304		-	(h) The Department of Economic and Community Development
305		-	may charge any owner seeking a tax credit pursuant to subsection (b)
306		-	of this section an application fee in an amount not to exceed ten
307		-	thousand dollars to cover the cost of administering the program
308		-	established pursuant to this section.
309		-	(i) The aggregate amount of all tax credits that may be reserved by
310		-	the Department of Economic and Community Development upon
311		-	certification of rehabilitation plans pursuant to subsections (b) to (h),
312		-	inclusive, of this section shall not exceed thirty-one million seven
313		-	hundred thousand dollars in any fiscal year. No project may receive
314		-	tax credits in an amount exceeding four million five hundred thousand
315		-	dollars.
316		-	(j) On or before October 1, 2015, and annually thereafter, the
317		-	Department of Economic and Community Development shall report,
318		-	in accordance with section 11-4a, the total amount of tax credits
319		-	reserved for the previous fiscal year pursuant to subsections (b) to (i),
320		-	inclusive, of this section, to the joint standing committees of the
321		-	General Assembly having cognizance of matters relating to commerce
322		-	and finance, revenue and bonding. Each such report shall include the
323		-	following information for each project for which a tax credit has been
324		-	reserved: (1) The total project costs, (2) the value of the tax credit
325		-	reservation pursuant to subdivision (1) of subsection (e) of this section,
326		-	(3) a statement whether the reservation is for mixed-use and if so, the
327		-	proportion of the project that is not residential, and (4) the number of
328		-	residential units to be created, and, for reservations pursuant to
329		-	subdivision [(2)] (3) of subsection (e) of this section, the value of the Senate Bill No. 570
330		-
331		-	Public Act No. 19-54 11 of 14
332		-
333		-	reservation and percentage of residential units that will qualify as
334		-	affordable housing.
335		-	Sec. 8. Subdivision (1) of subsection (g) of section 32-9t of the
336		-	general statutes is repealed and the following is substituted in lieu
337		-	thereof (Effective July 1, 2019):
338		-	(g) (1) The commissioner, upon consideration of the application, the
339		-	revenue impact assessment and any additional information that the
340		-	commissioner requires concerning a proposed investment, may
341		-	approve an investment if the commissioner concludes that the project
342		-	in which such investment is to be made is an eligible urban
343		-	reinvestment project or an eligible industrial site investment project.
344		-	The commissioner shall give priority to applications for projects
345		-	located in federally designated opportunity zones. If the commissioner
346		-	rejects an application, the commissioner shall specifically identify the
347		-	defects in the application and specifically explain the reasons for the
348		-	rejection. The commissioner shall render a decision on an application
349		-	not later than ninety days from its receipt. The amount of the
350		-	investment so approved shall not exceed the greater of: (A) The
351		-	amount of state revenue that will be generated according to the
352		-	revenue impact assessment prepared under this subsection; or (B) the
353		-	total of state revenue and local revenue generated according to such
354		-	assessment in the case of a manufacturing business with North
355		-	American Industrial Classification codes of 339999, 311211 through
356		-	312140, 324191 and 325412 that is relocating to a site in Connecticut
357		-	from out-of-state, provided the relocation will result in new
358		-	development of at least seven hundred twenty-five thousand square
359		-	feet in a state-sponsored industrial park.
360		-	Sec. 9. (Effective from passage) The Commissioner of Economic and
361		-	Community Development, in consultation with the Commissioners of
362		-	Energy and Environmental Protection, Transportation and Housing
363		-	and the Secretary of the Office of Policy and Management, shall Senate Bill No. 570
364		-
365		-	Public Act No. 19-54 12 of 14
366		-
367		-	conduct a study relating to the federal opportunity zone program,
368		-	established pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 115-97,
369		-	and how the state may incentivize the use of such program in the state.
370		-	Such study shall: (1) Identify corporations and other beneficiaries of
371		-	capital gains within the state to develop a strategy that focuses such
372		-	corporations and other beneficiaries' qualified opportunity fund
373		-	investments locally and encourages a cycling of capital within the
374		-	state; (2) identify existing state incentive programs that may be used in
375		-	conjunction with opportunity zone benefits; (3) identify existing
376		-	incentives for businesses participating in the small business express
377		-	program to move to opportunity zones and recommend additional
378		-	incentives, including, but not limited to, reducing the amount of time a
379		-	business is required to be in business to qualify for a grant and
380		-	increasing the grant amount for every job created; (4) develop a plan to
381		-	issue bonds of the state for the purpose of providing low-interest loans
382		-	to investors who develop mixed-income housing in the state's
383		-	opportunity zones; (5) recommend incentives for investors to develop
384		-	mixed-income housing that utilizes solar power or other renewable
385		-	energy sources in the state's opportunity zones; (6) identify any
386		-	agency's policies or regulations that may be amended to facilitate
387		-	investment in federally designated opportunity zones; (7) identify any
388		-	agency's discretionary grant processes that may be amended to include
389		-	federally designated opportunity zone criteria; and (8) develop a plan
390		-	to use social impact bonds to encourage private investment in federally
391		-	designated opportunity zones. Not later than February 1, 2020, the
392		-	commissioner shall submit a report on the results of such study,
393		-	including recommendations for any requisite legislative proposals, to
394		-	the joint standing committee of the General Assembly having
395		-	cognizance of matters relating to commerce, in accordance with the
396		-	provisions of section 11-4a of the general statutes.
397		-	Sec. 10. Subsection (c) of section 32-765 of the general statutes is
398		-	repealed and the following is substituted in lieu thereof (Effective July Senate Bill No. 570
399		-
400		-	Public Act No. 19-54 13 of 14
401		-
402		-	1, 2019):
403		-	(c) An applicant for a loan pursuant to this section shall submit an
404		-	application to the Commissioner of Economic and Community
405		-	Development on forms provided by the commissioner and with such
406		-	information the commissioner deems necessary, including, but not
407		-	limited to: (1) A description of the proposed project; (2) an explanation
408		-	of the expected benefits of the project in relation to the purposes of this
409		-	section; (3) information concerning the financial and technical capacity
410		-	of the applicant to undertake the proposed project; (4) a project budget;
411		-	and (5) a description of the condition of the brownfield involved,
412		-	including the results of any environmental assessment of the
413		-	brownfield in the possession of or available to the applicant. The
414		-	commissioner shall provide loans based upon project merit and
415		-	viability, the economic and community development opportunity,
416		-	municipal support, contribution to the community's tax base, past
417		-	experience of the applicant, compliance history and ability to pay. For
418		-	applications received on and after July 1, 2019, the commissioner shall
419		-	give priority to proposed projects located in federally designated
420		-	opportunity zones.
421		-	Sec. 11. Subsections (c) and (d) of section 32-763 of the general
422		-	statutes are repealed and the following is substituted in lieu thereof
423		-	(Effective July 1, 2019):
424		-	(c) The commissioner may approve, reject or modify any application
425		-	properly submitted in accordance with the provisions of this section.
426		-	In reviewing an application and determining the amount of the grant,
427		-	if any, to be provided, the commissioner shall consider the following
428		-	criteria: (1) The availability of funds; (2) the estimated costs of
429		-	assessing and remediating the brownfield, if known; (3) the relative
430		-	economic condition of the municipality in which the brownfield is
431		-	located; (4) the relative need of the project for financial assistance; (5)
432		-	the degree to which a grant under this section is necessary to induce Senate Bill No. 570
433		-
434		-	Public Act No. 19-54 14 of 14
435		-
436		-	the applicant to undertake the project; (6) the public health and
437		-	environmental benefits of the project; (7) the relative benefits of the
438		-	project to the municipality, the region and the state, including, but not
439		-	limited to, the extent to which the project will likely result in a
440		-	contribution to the municipality's tax base, the retention and creation
441		-	of jobs and the reduction of blight; (8) the time frame in which the
442		-	contamination occurred; (9) the relationship of the applicant to the
443		-	person or entity that caused the contamination; (10) the length of time
444		-	the brownfield has been abandoned; (11) the taxes owed and the
445		-	projected revenues that may be restored to the community; (12) the
446		-	relative need for assessment of the brownfield within the municipality
447		-	or region; (13) whether the brownfield is located in a federally
448		-	designated opportunity zone; and [(13)] (14) such other criteria as the
449		-	commissioner may establish consistent with the purposes of this
450		-	section.
451		-	(d) The commissioner shall award grants on a competitive basis,
452		-	based on a request for applications occurring on or before October
453		-	first, annually. The commissioner may increase the frequency of
454		-	requests for applications and awards depending upon the number of
455		-	applicants and the availability of funding. On and after July 1, 2019,
456		-	the commissioner shall give priority to grant applications for
457		-	brownfields located in federally designated opportunity zones.
	105	+	CE Joint Favorable
	106	+	FIN Joint Favorable
458	107