Researcher: HP Page 1 5/10/21
OLR Bill Analysis
sSB 1094
AN ACT AUTHORIZING BONDS OF THE STATE FOR CTNEXT AND
THE INNOVATION PLACE PROGRAM.
SUMMARY
This bill authorizes $64 million in bonds over a four-year period,
from FY 23 to FY 26, to recapitalize CTNext’s innovation place
program (see BACKGROUND), as shown in Table 1. The bonds are
subject to standard statutory bond issuance procedures and repayment
requirements.
Under the bill, bond proceeds may generally be used for new and
existing innovation places, except that the bill earmarks $10 million for
deposit into the CTNext Fund in FY 24 to cover general operating
expenses.
Table 1: CT Next Bond Authorizations
FY Amount ($)
23 13,500,000
24 23,500,000
25 13,500,000
26 13,500,000
The bill also reestablishes and makes permanent the requirement
that the CTNext board report annually to the Commerce and Finance,
Revenue and Bonding committees on the innovation place program’s
operation, effectiveness, and grant distribution. This requirement
previously expired on September 30, 2020.
Lastly, the bill makes a technical change (§ 2).
EFFECTIVE DATE: July 1, 2022, except that the change to CTNext’s
annual reporting requirement takes effect July 1, 2021. 2021SB-01094-R000668-BA.DOCX
Researcher: HP Page 2 5/10/21
BACKGROUND
CTNext
CTNext is a subsidiary of Connecticut Innovations, Inc. Its major
purpose is to assist entrepreneurs and startup and growth-stage
businesses by, among other things, (1) building entrepreneur
communities, (2) serving as a catalyst to protect and enhance the state’s
innovation ecosystem, (3) connecting entrepreneurs and growth-stage
businesses to government and private resources, (4) facilitating
mentoring for entrepreneurs and young business ventures, and (5)
facilitating innovation and entrepreneurship at higher education
institutions (CGS § 32-39f).
Innovation Place Program
By law, CTNext must administer an innovation place program to,
among other things, (1) foster innovation and entrepreneurship in
compact, mixed-use geographic areas with startups, growth-stage
businesses, anchor institutions, and access to public transit; (2)
encourage the leveraging of private investment in these areas; and (3)
connect entrepreneurs facing similar opportunities and challenges
with other entrepreneurs and public and private resources (CGS § 32-
39k).
The law allows (1) entities such as corporations, municipalities, and
higher education institutions to apply for the designation of an
innovation place and (2) CTNext to provide planning grants to entities
preparing applications and implementation grants for projects and
initiatives in designated innovation places, among other things (CGS
§§ 32-39l & -39m). The four cities or regions currently designated as
innovation places are (1) Harford and East Hartford, (2) New Haven,
(3) Stamford, and (4) Southeastern Connecticut, anchored by New
London and Groton.
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable
Yea 47 Nay 0 (04/22/2021) 2021SB-01094-R000668-BA.DOCX
Researcher: HP Page 3 5/10/21