LCO No. 6620 1 of 8 General Assembly Committee Bill No. 1179 January Session, 2025 LCO No. 6620 Referred to Committee on COMMERCE Introduced by: (CE) AN ACT ESTABLISHING THE CONNECTICUT COMMUNITY MAKERSPACE INITIATIVE PROGRAM. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2025) (a) For the purposes of this 1 section: 2 (1) "Financial assistance" means any and all forms of grants, loans, 3 cash payments or other forms of financing. 4 (2) "Makerspace" means a community space that (A) provides access 5 to tools and technology, (B) results in the prototyping, creation, 6 production or assembly of tangible personal property, and (C) supports 7 the development of educational opportunities. 8 (b) On or before January 1, 2026, the Department of Economic and 9 Community Development shall establish and administer a pilot 10 program to provide financial assistance to eligible entities for the 11 establishment or expansion of makerspaces in the state. The 12 Commissioner of Economic and Community Development s hall (1) 13 establish eligibility criteria and an application process for participation 14 in the pilot program, and (2) explore means of funding the pilot 15 Committee Bill No. 1179 LCO No. 6620 2 of 8 program, including, but not limited to, through public-private 16 partnerships, grant programs, federal funds or state funds and the 17 Connecticut Manufacturing Innovation Fund. 18 (c) Applications for participation in such pilot program shall be 19 submitted in a form and manner prescribed by the department. Each 20 application shall include, but need not be limited to, the following: (1) 21 An explanation of the makerspace the applicant is seeking to establish 22 or expand; (2) the amount of financial assistance for such makerspace 23 that the applicant seeks; and (3) such other information as the 24 department deems necessary. 25 (d) The Commissioner of Economic and Community Development 26 may award financial assistance to entities participating in the pilot 27 program not exceeding in the aggregate five million dollars. The 28 amount of any financial assistance issued pursuant to this section to an 29 eligible entity shall not exceed two hundred fifty thousand dollars per 30 fiscal year. 31 (e) Not later than two years after the receipt of any financial assistance 32 pursuant to this section, and annually thereafter, each participant in the 33 pilot program shall submit a report to the Department of Economic and 34 Community Development detailing the progress of the establishment or 35 expansion of the makerspace proposed in such entity's application and 36 containing any additional information deemed necessary by the 37 Commissioner of Economic and Community Development. 38 (f) Not later than January 1, 2027, and annually thereafter, the 39 Commissioner of Economic and Community Development shall submit 40 a report, in accordance with the provisions of section 11-4a of the general 41 statutes, containing an evaluation of the operation and effectiveness of 42 the pilot program to the joint standing committee of the General 43 Assembly having cognizance of matters relating to commerce. 44 Sec. 2. Section 32-7o of the general statutes is repealed and the 45 following is substituted in lieu thereof (Effective July 1, 2025): 46 Committee Bill No. 1179 LCO No. 6620 3 of 8 (a) There is established the Connecticut Manufacturing Innovation 47 Fund, which shall be a nonlapsing fund held by the Treasurer separate 48 and apart from all other moneys, funds and accounts. The following 49 moneys shall be deposited in the fund: (1) Any moneys required or 50 permitted by law to be deposited in the fund; (2) any moneys received 51 in return for financial assistance awarded from the Connecticut 52 Manufacturing Innovation Fund pursuant to the program established in 53 subsection (k) of this section; (3) all private contributions, gifts, grants, 54 donations, bequests or devises received by the fund; and (4) to the extent 55 not otherwise prohibited by state or federal law, any local, state or 56 federal funds received by the fund. Investment earnings credited to the 57 assets of such fund shall become part of the assets of such fund. The 58 Treasurer shall invest the moneys held by the Connecticut 59 Manufacturing Innovation Fund subject to use for financial assistance 60 in accordance with subsections (d) and (k) of this section. 61 (b) Any moneys held in the Connecticut Manufacturing Innovation 62 Fund may, pending the use or application of the proceeds thereof for an 63 authorized purpose, be (1) invested and reinvested in such obligations, 64 securities and investments as are set forth in subsection (f) of section 3-65 20 and in participation certificates in the Short Term Investment Fund 66 created under sections 3-27a and 3-27f, (2) deposited or redeposited in 67 any bank or banks, at the direction of the Treasurer, or (3) invested in 68 participation units in the combined investment funds, as defined in 69 section 3-31b. Proceeds from investments authorized by this subsection 70 shall be credited to the Connecticut Manufacturing Innovation Fund. 71 (c) The Connecticut Manufacturing Innovation Fund shall not be 72 deemed an account within the General Fund. The moneys of the fund 73 shall be used in accordance with the provisions of subsections (d) and 74 (k) of this section and are in addition to any other resources available 75 from state, federal or other entities that support the purposes described 76 in subsections (d) and (k) of this section. 77 (d) The Connecticut Manufacturing Innovation Fund shall be used: 78 Committee Bill No. 1179 LCO No. 6620 4 of 8 (1) To provide financial assistance to eligible recipients as may be 79 approved by the Manufacturing Innovation Advisory Board pursuant 80 to subsection (g) of this section, [and] (2) to pay or reimburse the 81 administrator for administrative costs pursuant to subsection (m) of this 82 section, and (3) to provide financial assistance to eligible recipients 83 pursuant to section 1 of this act. Such financial assistance shall be 84 awarded for the purpose of: (A) Furthering the development or 85 modernization of manufacturing equipment; (B) supporting 86 advancements in manufacturing; (C) supporting advanced 87 manufacturing research and development; (D) supporting expansion 88 and training by eligible recipients; (E) attracting new manufacturers to 89 the state; (F) supporting education and training programs designed to 90 meet an anticipated demand for appropriately skilled and trained 91 workers; (G) matching federal grants or otherwise leveraging federal 92 grant funds to aid Connecticut universities and nonprofit organizations 93 to increase research efforts; and (H) funding a voucher program as 94 described in subsection (k) of this section. Additionally, such financial 95 assistance shall target aerospace, medical device, composite materials, 96 digital manufacturing and other technologically advanced commercial 97 products and services' supply chains and related disciplines that are 98 likely to lead to an improvement in or development of products or 99 services that are commercializable and designed to advance the state of 100 technology and the competitive position of eligible recipients, and that 101 promise, directly or indirectly, to lead to job growth in the state in these 102 or related fields. 103 (e) The administrator, in consultation with the Manufacturing 104 Innovation Advisory Board, shall give priority consideration to 105 proposals from any company that is located in or planning to relocate 106 to: (1) A distressed municipality, as defined in section 32-9p; (2) a 107 targeted investment community, as defined in section 32-222; (3) a 108 public investment community, as defined in section 7-545; (4) an 109 enterprise zone designated pursuant to section 32-70; or (5) a 110 manufacturing innovation district established pursuant to subsection (f) 111 of this section. 112 Committee Bill No. 1179 LCO No. 6620 5 of 8 (f) The administrator, in consultation with the Manufacturing 113 Innovation Advisory Board, may establish manufacturing innovation 114 districts in order to promote economic development priorities identified 115 by the administrator. 116 (g) All expenditures from the Connecticut Manufacturing Innovation 117 Fund, except for administrative costs reimbursed to the administrator 118 pursuant to subsection (m) of this section, shall be approved by the 119 advisory board, provided the advisory board may delegate to staff of 120 the administrator the approval of transactions not greater than one 121 hundred thousand dollars. Any such approval by the advisory board 122 shall be (1) specific to an individual expenditure to be made; (2) for 123 budgeted expenditures with such variations as the advisory board may 124 authorize at the time of such budget approval; or (3) for a financial 125 assistance program to be administered by staff of the administrator, 126 subject to limits, eligibility requirements and other conditions 127 established by the Manufacturing Innovation Advisory Board at the 128 time of such program approval. 129 (h) The administrator shall provide any necessary staff, office space, 130 office systems and administrative support for the operation of the 131 Connecticut Manufacturing Innovation Fund in accordance with this 132 section. In acting as administrator of the fund, the Department of 133 Economic and Community Development shall have and may exercise 134 all of the powers set forth in this chapter, provided expenditures from 135 the fund shall be approved by the Manufacturing Innovation Advisory 136 Board pursuant to subsection (g) of this section. 137 (i) The Manufacturing Innovation Advisory Board shall establish an 138 application and approval process with guidelines and terms for 139 financial assistance awarded from the Connecticut Manufacturing 140 Innovation Fund to any eligible recipient. Such guidelines and terms 141 shall include: (1) A requirement that any applicant for financial 142 assistance operate in the state, or propose to relocate operations to the 143 state, in whole or in part, as a condition of such financial assistance; (2) 144 Committee Bill No. 1179 LCO No. 6620 6 of 8 limitations on the total amount of financial assistance that may be 145 awarded in the form of loans and grants; (3) eligibility requirements for 146 loans and grants, including a requirement for applicants to obtain 147 matching funds from nonstate sources; (4) a process for preliminary 148 review of applications for strength and eligibility by the administrator 149 before such applications are presented to the advisory board for 150 consideration; (5) return on investment objectives, including, but not 151 limited to, job growth and leveraged investment opportunities; and (6) 152 such other guidelines and terms as the advisory board determines to be 153 necessary and appropriate in furtherance of the objectives of this 154 section. 155 (j) Financial assistance awarded from the Connecticut Manufacturing 156 Innovation Fund to eligible recipients shall be used for costs related to 157 facilities, necessary furniture, fixtures and equipment, tooling 158 development and manufacture, materials and supplies, proof of concept 159 or relevance, research and development, compensation, apprenticeship 160 and such other costs that the Manufacturing Innovation Advisory Board 161 determines pursuant to subsection (i) of this section to be eligible for 162 financial assistance within the purposes of this section. 163 (k) The Manufacturing Innovation Advisory Board may establish a 164 voucher program that shall provide eligible recipients access to 165 technical experts in universities, nonprofit organizations and other 166 organizations that can provide specialized expertise to such eligible 167 recipients to solve engineering, marketing and other challenges. The 168 Commissioner of Economic and Community Development, in 169 consultation with the advisory board, may adopt regulations, in 170 accordance with the provisions of chapter 54, to implement such 171 voucher program. 172 (l) On or before July 1, 2015, and prior to each fiscal year thereafter, 173 the administrator shall prepare a plan of operations and an operating 174 and capital budget for the Connecticut Manufacturing Innovation Fund, 175 provided not later than ninety days prior to the start of each fiscal year, 176 Committee Bill No. 1179 LCO No. 6620 7 of 8 the administrator shall submit such plan and budget to the 177 Manufacturing Innovation Advisory Board for its review and approval. 178 (m) Administrative costs shall be paid or reimbursed to the 179 administrator from the Connecticut Manufacturing Innovation Fund, 180 provided the total of such administrative costs in any fiscal year shall 181 not exceed five per cent of the total amount of the allotted funding for 182 such fiscal year as determined in the operating budget prepared 183 pursuant to subsection (l) of this section. Nothing in this section or 184 section 32-7n shall be deemed to require the administrator to risk or 185 expend the funds of the Department of Economic and Community 186 Development in connection with the administration of the Connecticut 187 Manufacturing Innovation Fund. 188 (n) Not later than January 1, 2016, and annually thereafter, the 189 administrator shall provide a report of the activities of the Connecticut 190 Manufacturing Innovation Fund to the Manufacturing Innovation 191 Advisory Board for the advisory board's review and approval. Upon 192 such approval, the advisory board shall provide such report, in 193 accordance with the provisions of section 11-4a, to the joint standing 194 committee of the General Assembly having cognizance of matters 195 relating to commerce. Such report shall contain available information on 196 the status and progress of the operations and funding of the Connecticut 197 Manufacturing Innovation Fund and the types, amounts and recipients 198 of financial assistance awarded and any returns on investment. 199 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2025 New section Sec. 2 July 1, 2025 32-7o Statement of Purpose: To establish the Connecticut Community Makerspace Initiative program to support entrepreneurship, innovation and economic opportunity in the state. Committee Bill No. 1179 LCO No. 6620 8 of 8 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] Co-Sponsors: SEN. KUSHNER, 24th Dist.; REP. QUINN, 82nd Dist. REP. WINTER, 94th Dist.; SEN. WINFIELD, 10th Dist. REP. MCGEE T., 116th Dist.; REP. SHANNON, 117th Dist. SEN. RAHMAN, 4th Dist.; SEN. ANWAR, 3rd Dist. S.B. 1179