O F F I C E O F L E G I S L A T I V E R E S E A R C H
P U B L I C A C T S U M M A R Y
Page 1
PA 21-77—sSB 1020
Commerce Committee
AN ACT ESTABLISHING A REGIONAL ECONOMIC DEVELOPMENT
PILOT PROGRAM
SUMMARY: This act 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 DECD-designated distressed
municipalities. To qualify for the program, corporations must represent at least
four municipalities, including one distressed municipality, but the DECD
commissioner may allow a corporation that represents fewer than four
municipalities to participate in the program at his discretion.
The act 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.
The act also specifies (1) information corporations must include in program
applications; (2) factors the department, or an outside operator, must consider
when evaluating program applications; and (3) reporting requirements for
participating corporations and the DECD commissioner.
EFFECTIVE DATE: July 1, 2021
PILOT PROGRAM APPLICATIONS
Under the act, 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 funding source the applicant wants DECD to match, and
4. any other information the department deems necessary.
EVALUATION OF PILOT PROGRAM APPLICATIONS
The act 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 O L R P U B L I C A C T S U M M A R Y
Page 2 of 2
development programs in its region; and
3. the proposed program’s potential impact on the workforce in the
applicant’s region.
PILOT PROGRAM REPORTING REQUIREMEN TS
The act 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.