Researcher: SM Page 1 5/21/21
OLR Bill Analysis
sSB 1020 (File 222, as amended by Senate "A")*
AN ACT ESTABLISHING A REGIONAL ECONOMIC
DEVELOPMENT PILOT PROGRAM.
SUMMARY
This bill requires the Department of Economic and Community
Development (DECD) to establish, within available resources, a pilot
program to provide matching grants to regional economic
development corporations implementing economic development
programs in distressed municipalities (see BACKGROUND).
Corporations must represent at least four municipalities to be eligible
for the pilot program, including one distressed municipality. The
DECD commissioner may allow a corporation that represents less than
four municipalities to participate in the program at his discretion.
The bill allows the DECD commissioner to award up to $10 million
in total grants to participating corporations but no more than $5
million for any single grant. The department (1) may enter into a
personal service agreement with an outside person, firm, corporation,
or other entity to operate the program and (2) cannot accept new
program applications after June 30, 2026.
Under the bill, regional economic development corporations
seeking to participate in the program must apply in the manner DECD
prescribes. At a minimum, applications must include the following:
1. the location of the applicant’s principal place of business,
2. a description of the economic development program for which
the matching grant will be used,
3. the amount and source of funding the applicant wants DECD to
match, and 2021SB-01020-R01-BA.DOCX
Researcher: SM Page 2 5/21/21
4. any other information the department deems necessary.
The bill requires DECD, or an outside operator, to consider at least
the following factors when evaluating applications:
1. the applicant’s description of the proposed economic
development program;
2. the applicant’s resources and record of implementing economic
development programs in its region; and
3. the proposed program’s potential impact on the workforce in
the applicant’s region.
The bill requires program participants to report annually to DECD
beginning no later than two years after receiving funding. The report
must (1) describe the progress of the corporation’s department-funded
economic development program and (2) include any additional
information the DECD commissioner deems necessary. Beginning
January 15, 2022, the commissioner must report annually to the
Commerce Committee on the pilot program’s operation and
effectiveness.
*Senate Amendment "A" (1) reduces, from five to four, the number
of municipalities a regional economic development corporation must
represent to be eligible for the program; (2) reduces, from two to one,
the number of these municipalities that must be distressed; (3) allows
the DECD commissioner to let a corporation that represents less than
four municipalities participate; and (4) specifies that the program must
be established using available resources, rather than available
appropriations.
EFFECTIVE DATE: July 1, 2021
BACKGROUND
Distressed Municipalities
By law, the DECD commissioner must annually designate
distressed municipalities based on a combination of economic, 2021SB-01020-R01-BA.DOCX
Researcher: SM Page 3 5/21/21
education, demographic, and housing criteria. In 2020, he designated
the following 25 municipalities as distressed:
Ansonia Meriden Sprague
Bridgeport Montville Stratford
Bristol New Britain Torrington
Chaplin New Haven Voluntown
Derby New London Waterbury
East Hartford Norwich West Haven
East Haven Preston Winchester
Griswold Putnam Windham
Hartford
COMMITTEE ACTION
Commerce Committee
Joint Favorable Substitute
Yea 19 Nay 4 (03/16/2021)