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General Assembly Substitute Bill No. 5264
February Session, 2022
AN ACT CONCERNING THE APPROVAL OF FINANCIAL AID
APPLICATIONS FILED WITH CONNECTICUT INNOVATIONS,
INCORPORATED AND ESTABLISHING AN ATTENDANCE POLICY
FOR CONNECTICUT INNOVATIONS, INCORPORATED'S BOARD OF
DIRECTORS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 32-40 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2022): 2
(a) All applications for financial aid shall be forwarded, together with 3
an application fee prescribed by the corporation, to the chief executive 4
officer of the corporation. Each such application shall be processed in 5
accordance with the written procedures adopted by the corporation 6
under subdivision (5) of subsection (d) of section 32-35. The board of 7
directors or a duly constituted committee thereof shall approve or deny 8
each application recommended by the chief executive officer. If the 9
board of directors or any such committee approves an application, the 10
board or such committee may authorize the corporation to enter into an 11
agreement or agreements on behalf of the corporation to provide 12
financial aid to the applicant. The applicant shall be promptly notified 13
of such action by the corporation. 14
(b) In making the decision as to approval or denial of an application, 15 Substitute Bill No. 5264
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the board or any committee of the board shall give priority to those 16
applicants (1) whose businesses are defense-dependent, or are located 17
in municipalities which the Commissioner of Economic and 18
Community Development has declared have been severely impacted by 19
prime defense contract cutbacks pursuant to section 32-56, and (2) 20
whose proposed research and development activity, technology, 21
product or invention is to be used to convert all or a portion of the 22
applicant's business to non-defense-related industrial or commercial 23
activity, or to create a new non-defense-related industrial or commercial 24
business. For purposes of this section, a defense-dependent business is 25
any business that derives over fifty per cent of its gross income, 26
generated from operations within the state, from prime defense 27
contracts or from subcontracts entered into in connection with prime 28
defense contracts, a significant portion of whose facilities and 29
equipment are designed specifically for defense production and cannot 30
be converted to nondefense uses without substantial investment. 31
(c) All financial and credit information and all trade secrets contained 32
in any application for financial aid submitted to the corporation or 33
obtained by the corporation concerning any applicant, project, activity, 34
technology, product or invention shall be exempt from the provisions of 35
subsection (a) of section 1-210. 36
(d) Notwithstanding the provisions of subsections (a) and (b) of this 37
section, the board of directors may delegate to staff of the corporation 38
the authority to approve any application for financial aid filed pursuant 39
to this section for not more than [one hundred fifty] five hundred 40
thousand dollars, provided (1) such application is processed in 41
accordance with the written procedures adopted by the corporation 42
under subdivision (5) of subsection (d) of section 32-35, and (2) the sum 43
of the financial aid requested in such application and the total amount 44
of financial aid awarded to the applicant by the corporation during the 45
preceding twelve-month period does not exceed [one hundred fifty] five 46
hundred thousand dollars. 47
Sec. 2. Subsections (b) and (c) of section 32-35 of the general statutes 48 Substitute Bill No. 5264
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are repealed and the following is substituted in lieu thereof (Effective 49
October 1, 2022): 50
(b) (1) The corporation shall be governed by a board of seventeen 51
directors. Nine members shall be appointed by the Governor, six of 52
whom shall be knowledgeable, and have favorable reputations for skill, 53
knowledge and experience, in the development of innovative start-up 54
businesses, including, but not limited to, expertise in academic research, 55
technology transfer and application, the development of technological 56
invention and new enterprise development and three of whom shall be 57
knowledgeable, and have favorable reputations for skill, knowledge 58
and experience, in the field of financial lending or the development of 59
commerce, trade and business. Four members shall be the 60
Commissioner of Economic and Community Development, the 61
president of the Connecticut State Colleges and Universities, the 62
Treasurer and the Secretary of the Office of Policy and Management, 63
who shall serve ex officio and shall have all of the powers and privileges 64
of a member of the board of directors. Each ex-officio member may 65
designate his deputy or any member of his staff to represent him at 66
meetings of the corporation with full power to act and vote in his behalf. 67
Four members shall be appointed as follows: One by the president pro 68
tempore of the Senate, one by the minority leader of the Senate, one by 69
the speaker of the House of Representatives and one by the minority 70
leader of the House of Representatives. [Each member appointed by the 71
Governor shall serve at the pleasure of the Governor but no longer than 72
the term of office of the Governor or until the member's successor is 73
appointed and qualified, whichever is longer. Each member appointed 74
by a member of the General Assembly shall serve in accordance with 75
the provisions of section 4-1a. A director shall be eligible for 76
reappointment. The Governor shall fill any vacancy for the unexpired 77
term of a member appointed by the Governor. The appropriate 78
legislative appointing authority shall fill any vacancy for the unexpired 79
term of a member appointed by such authority.] Except as provided in 80
subdivision (2) of this subsection, (A) each member appointed by the 81
Governor shall serve at the pleasure of the Governor but not longer than 82 Substitute Bill No. 5264
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the term of office of the Governor or until the member's successor is 83
appointed and qualified, whichever is longer, (B) the Governor shall fill 84
any vacancy for the unexpired term of a member appointed by the 85
Governor, (C) each member appointed by a member of the General 86
Assembly shall serve in accordance with the provisions of section 4-1a, 87
and (D) the appropriate legislative appointing authority shall fill any 88
vacancy for the unexpired term of a member appointed by such 89
authority. A director shall be eligible for reappointment. 90
(2) Any member appointed by the Governor or appointed by a 91
member of the General Assembly who fails to attend three consecutive 92
meetings of the board or who fails to attend fifty per cent of all meetings 93
of the board held during any calendar year shall be deemed to have 94
resigned from the board. Any vacancy occurring due to the provisions 95
of this subdivision shall be filled by the chairperson of the board, 96
appointed pursuant to subsection (c) of this section, for the balance of 97
the unexpired term. 98
(c) The Governor shall appoint a chairperson from among the board 99
members. The directors shall annually elect one of their number as 100
secretary. The board may elect such other officers of the board as it 101
deems proper. Members shall receive no compensation for the 102
performance of their duties hereunder but shall be reimbursed for 103
necessary expenses incurred in the performance thereof. 104
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2022 32-40
Sec. 2 October 1, 2022 32-35(b) and (c)
CE Joint Favorable Subst.