AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT'S RECOMMENDATIONS FOR REVISIONS TO THE COMMERCE STATUTES AND PROHIBITING SCHOLARSHIP DISPLACEMENT FOR CERTAIN STUDENTS AT PUBLIC INSTITUTIONS OF HIGHER EDUCATION.

Substitute Senate Bill No. 307

Public Act No. 26-122

AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND
COMMUNITY DEVELOPMENT'S RECOMMENDATIONS FOR
REVISIONS TO THE COMMERCE STATUTES AND PROHIBITING
SCHOLARSHIP DISPLACEMENT FOR CERTAIN STUDENTS AT
PUBLIC INSTITUTIONS OF HIGHER EDUCATION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 32-7g of the 2026 supplement to the general statutes
is repealed and the following is substituted in lieu thereof (Effective July
1, 2026):
(a) There is established within the Department of Economic and
Community Development the Connecticut Small Business [Express]
Boost program. Said program shall provide small businesses with
various forms of financial assistance. A small business eligible for
assistance through said program shall (1) employ not more than one
hundred employees, (2) have operations in Connecticut, and (3 ) be in
good standing with the payment of all state and local taxes and with all
state agencies. It shall be the goal of the Department of Economic and
Community Development that, on or before July 1, [2026] 2028, the
Connecticut Small Business [Express] Boost program be self-funded and
that the default rate of small businesses that receive assistance under
said program be not more than twenty per cent.
Substitute Senate Bill No. 307

Public Act No. 26-122 2 of 59

(b) The Connecticut Small Business [Express] Boost program shall
consist of various components, including (1) a revolving loan fund, as
described in subsection (c) of this section, to support small business
growth, (2) at least one [minority business revolving loan] Connecticut
opportunity fund, as described in subsection (d) of this section, to
support the growth of [minority-owned] small businesses in historically
underserved communities, (3) a component established in consultation
with representatives from Connecticut -based banks and a banking
industry association, as described in subsection (e) of this section, and
(4) a component established in consultation with Connecticut
Innovations, Incorporated, as described in subsection (f) of this section.
The commissioner may give preference to program applications from
disabled veteran-owned businesses. Notwithstanding the provisions of
section 32-5a regarding relocation limits, the department may require,
as a condition of receiving financial assistance pursuant to this section,
that a small business receivin g such assistance shall not relocate, as
defined in section 32-5a, for five years after receiving such assistance or
during the term of the loan, whichever is longer. All other conditions
and penalties imposed pursuant to section 32-5a shall continue to apply
to such small business. As used in this subsection, (A) "disabled veteran"
means a veteran, as defined in section 27-103, who has a disability rating
of at least thirty per cent, as determined by the United States
Department of Veterans Affairs; and (B ) "disabled veteran -owned
business" means a small business of which greater than fifty per cent is
owned by one or more disabled veterans.
(c) There is established as part of the Connecticut Small Business
[Express] Boost program a revolving loan fund to provide loans, loan
guarantees, loan portfolio guarantees, portfolio insurance and grants.
(d) (1) (A) There is established as part of the Connecticut Small
Business [Express] Boost program at least one [revolving loan ]
Connecticut opportunity fund to provide loans to eligible small
Substitute Senate Bill No. 307

Public Act No. 26-122 3 of 59

businesses that are owned by [one or more members of a minority ]
applicants who meet at least one of the following criteria: (i) Operate or
reside in a concentrated poverty census tract, as defined in section 32 -
7x; (ii) have an adjusted gross income of not more than the annual area
median household income, as determine d by the United States
Department of Housing and Urban Development; (iii) are first -time
business owners or enterprises lacking access to traditional commercial
lending; or (iv) operate or reside in a municipality with a population of
not less than sixty thousand that has a concentrated poverty census
tract, as defined in section 32 -7x, and who meet the income -eligibility
threshold described in clause (ii) of this subparagraph.
(B) In determining the eligibility of an applicant for assistance under
the Connecticut opportunity fund, the commissioner shall prioritize, in
the following order, applicants who: (i) Operate or reside in a
concentrated poverty census tract; (ii) meet the income -eligibility
threshold described in subparagraph (A)(ii) of this subdivision; (iii) are
first-time business owners or enterprises who lack access to traditional
commercial lending; and (iv) operate or reside in a municipality wit h a
population of not less than sixty thousand that has a concentrated
poverty census tract, as defined in section 32 -7x, and who meet the
income-eligibility threshold described in subparagraph (A)(ii) of this
subdivision.
(2) As used in this subsection, [(A) "minority business development
entity"] "business development entity" means a nonprofit [organization
(i) having a lending portfolio on or before June 9, 2016, from which at
least seventy -five per cent of lending is provided to minority -owned
businesses state-wide; and (ii) that provided technical assistance on or
before June 9, 2016, provided at least seventy -five per cent of such
assistance was provided to minority-owned businesses state-wide; and
(B) "minority" means (i) Black Americans, including all persons having
origins in any of the Black African racial groups not of Hispanic origin;
Substitute Senate Bill No. 307

Public Act No. 26-122 4 of 59

(ii) Hispanic Americans, including all persons of Mexican, Puerto Rican,
Cuban, Central or South American, or other Spanish culture or origin,
regardless of race; (iii) all persons having origins in the Iberian
Peninsula, including Portugal, regardless of race; (iv) women; (v) Asian
Pacific Americans and Pacific islanders; or (vi) American Indians and
persons having origins in any of the original peoples of North America
and maintaining identifiable tribal affiliations through membership and
participation o r community identification ] community development
financial institution operating in the state.
[(2)] (3) Notwithstanding the provisions of section 32-7h, as amended
by this act, the commissioner shall allocate from the available funding
under the Connecticut Small Business [Express] Boost program a total
of five million dollars for grants-in-aid to not more than two [minority]
business development entities in each of the fiscal years ending June 30,
2016, to June 30, 2020, inclusive, for the purpose of establishing and
administering [minority business revolving loan ] Connecticut
opportunity funds. Mo neys from such funds shall be used to (A)
provide loans to eligible small businesses, and (B) fund the
administrative costs associated with the provision of such loans by a
[minority] business development entity, provided a [minority] business
development entity may not use more than ten per cent of the amount
received as a grant under this section to fund such costs. Such loans shall
be used for acquisition or purchase of machinery and equipment,
construction or leasehold improvements, relocation expenses, working
capital, which may be used for payment of rent, or other business -
related expenses, as authorized by the [minority] business development
entity.
[(3)] (4) Loans from a [minority business revolving loan] Connecticut
opportunity fund may be in amounts from ten thousand dollars to a
maximum of five hundred thousand dollars, shall carry a maximum
repayment rate of four per cent and shall be for a term of not more than
Substitute Senate Bill No. 307

Public Act No. 26-122 5 of 59

ten years. The [minority] business development entity shall review and
approve loan terms, conditions and collateral requirements in a manner
that prioritizes job growth and retention.
[(4)] (5) Any eligible small business [owned by one or more members
of a minority ] may apply for assistance from a [minority business
revolving loan] Connecticut opportunity fund, provided the [minority]
business development entity shall give priority to applicants that, as
part of their business plan, are (A) creating new jobs that will be
maintained for not less than twelve consecutive months , or (B)
contributing to closing a lack in access to capital for underserved
communities and individuals.
[(5)] (6) Loans from a [minority business revolving ] Connecticut
opportunity fund shall be provided in such a manner that, on or before
five years after the date such loan fund is established, the annual funds
or revenues derived from investment income, loan repayments or any
other sources received by the [minority] business development entity in
connection with such loan fund is sufficient to fund the administrative
costs associated with such loan fund.
[(6)] (7) A [minority] business development entity receiving a grant
pursuant to this subsection shall annually submit to the commissioner a
financial audit of grant expenditures until all grant moneys have been
expended by such entity. Any such audit shall be prepared by an
independent auditor and if the commissioner finds that any such grant
is used for purposes that are not in conformity with uses set forth in
subdivisions [(2)] (3) and [(3)] (4) of this subsection, the commissioner
may require repayment of such grant.
(8) The commissioner shall collect data on loan recipients, including,
but not limited to, geographic distribution, income levels, and any other
indicators of access to capital. Not later than February 1, 2027, and
annually thereafter, the commissioner sha ll submit a report to the
Substitute Senate Bill No. 307

Public Act No. 26-122 6 of 59

Governor, the Auditors of Public Accounts and the joint standing
committees of the General Assembly having cognizance of matters
relating to appropriations and the budgets of state agencies, finance,
revenue and bonding and commerce, in accordance with the provisions
of section 11 -4a, that provides an analysis of such data collected
pursuant to this subdivision.
(e) The commissioner, in consultation with representatives from
Connecticut-based banks and a banking industry association, may
establish as part of the Connecticut Small Business [Express] Boost
program a component operated in collaboration with Connecticut -
based banks, which may include, but need not be limited to, loan
guarantees, short-term loans used as a bridge to private sector financing
and the transfer of loans issued under subsection (c) of this section. Any
loans issued under such component shall be used for acquisition or
purchase of machinery and equipment, construction or leasehold
improvements, relocation expenses, working capital, which may be
used for payment of rent, or other business -related expenses, as
authorized by the commissioner. The provisions of subsections (c) and
(d) of this section shall not be construed to apply to such component.
Such component shall be administered by Connecticut Innovations,
Incorporated, in collaboration with the Department of Economic and
Community Development. For purposes of this section, "Connecticut -
based banks" means banks and out -of-state banks, each as defined in
section 36a-2, having deposit-taking branches in the state.
(f) The commissioner, in consultation with Connecticut Innovations,
Incorporated, may establish as part of the Connecticut Small Business
[Express] Boost program a component operated in collaboration with
Connecticut Innovations, Incorporated, which may include, but need
not be limited to, financial assistance consistent with the provisions and
purposes of sections 32-23e, 32-23ii and 32-265. Such component may be
administered by Connecticut Innovations, Incorporated, in
Substitute Senate Bill No. 307

Public Act No. 26-122 7 of 59

collaboration with the Department of Economic and Community
Development.
(g) Not later than February 1, 2022, and annually thereafter, the
commissioner shall provide a report, in accordance with the provisions
of section 11 -4a, to the joint standing committees of the General
Assembly having cognizance of matters relating to finance, revenue and
bonding, appropriations, commerce and labor. Such report shall include
available data on (1) the number of small businesses that received
assistance under the Connecticut Small Business [Express] Boost
program and the general categories of such businesses, (2) the amounts
and types of assistance provided, (3) the total number of jobs on the date
of application and the number proposed to be created or retained, (4)
the most recent employment figures of the small businesses receiving
assistance, (5) the default rate of small businesses that received
assistance under said program, and (6) the progress of the lenders
participating in said program in becoming self-sustainable. The contents
of such report shall also be included in the department's annual report.
(h) The commissioner may contract with nongovernmental entities,
including, but not limited to, nonprofit organizations, economic and
community development organizations, lending institutions, and
technical assistance providers to carry out the provisions of this section.
Sec. 2. Section 32-7g of the 2026 supplement to the general statutes, as
amended by section 16 of public act 25-95, is repealed and the following
is substituted in lieu thereof (Effective July 1, 2026):
(a) There is established within the Department of Economic and
Community Development the Connecticut Small Business [Express]
Boost program. Said program shall provide small businesses with
various forms of financial assistance. A small business eligible for
assistance through said program shall (1) employ not more than one
hundred employees, (2) have operations in Connecticut, and (3 ) be in
Substitute Senate Bill No. 307

Public Act No. 26-122 8 of 59

good standing with the payment of all state and local taxes and with all
state agencies. It shall be the goal of the Department of Economic and
Community Development that, on or before July 1, [2026] 2028, the
Connecticut Small Business [Express] Boost program be self-funded and
that the default rate of small businesses that receive assistance under
said program be not more than twenty per cent.
(b) The Connecticut Small Business [Express] Boost program shall
consist of various components, including (1) a revolving loan fund, as
described in subsection (c) of this section, to support small business
growth, (2) at least one [minority business revolving loan] Connecticut
opportunity fund, as described in subsection (d) of this section, to
support the growth of [minority-owned] small businesses in historically
underserved communities, (3) a component established in consultation
with representatives fr om Connecticut -based banks and a banking
industry association, as described in subsection (e) of this section, and
(4) a component established in consultation with Connecticut
Innovations, Incorporated, as described in subsection (f) of this section.
The commissioner may give preference to program applications from
disabled veteran-owned businesses. Notwithstanding the provisions of
section 32-5a regarding relocation limits, the department may require,
as a condition of receiving financial assistance pursua nt to this section,
that a small business receiving such assistance shall not relocate, as
defined in section 32-5a, for five years after receiving such assistance or
during the term of the loan, whichever is longer. All other conditions
and penalties imposed pursuant to section 32-5a shall continue to apply
to such small business. As used in this subsection, (A) "disabled veteran"
means a veteran, as defined in section 27-103, who has a disability rating
of at least thirty per cent, as determined by the Un ited States
Department of Veterans Affairs; and (B) "disabled veteran -owned
business" means a small business of which greater than fifty per cent is
owned by one or more disabled veterans.
Substitute Senate Bill No. 307

Public Act No. 26-122 9 of 59

(c) There is established as part of the Connecticut Small Business
[Express] Boost program a revolving loan fund to provide loans, loan
guarantees, loan portfolio guarantees, portfolio insurance and grants.
(d) (1) (A) There is established as part of the Connecticut Small
Business [Express] Boost program at least one [revolving loan ]
Connecticut opportunity fund to provide loans to eligible small
businesses that are owned by [one or more members of a minority ]
applicants who meet at least one of the following criteria: (i) Operate or
reside in a concentrated poverty census tract, as defined in section 32 -
7x; (ii) have an adjusted gross income of not more than the annual area
median household income, as determi ned by the United States
Department of Housing and Urban Development; (iii) are first -time
business owners or enterprises lacking access to traditional commercial
lending; or (iv) operate or reside in a municipality with a population of
not less than sixty thousand that has a concentrated poverty census
tract, as defined in section 32 -7x, and who meet the income -eligibility
threshold described in clause (ii) of this subparagraph.
(B) In determining the eligibility of an applicant for assistance under
the Connecticut opportunity fund, the commissioner shall prioritize, in
the following order, applicants who: (i) Operate or reside in a
concentrated poverty census tract; (ii) meet the income-eligibility
threshold described in subparagraph (A)(ii) of this subdivision; (iii) are
first-time business owners or enterprises who lack access to traditional
commercial lending; and (iv) operate or reside in a municipality with a
population of no t less than sixty thousand that has a concentrated
poverty census tract, as defined in section 32 -7x, and who meet the
income-eligibility threshold described in subparagraph (A)(ii) of this
subdivision.
(2) As used in this subsection, [(A) "minority business development
entity"] "business development entity" means a nonprofit [organization
(i) having a lending portfolio on or before June 9, 2016, from which at
Substitute Senate Bill No. 307

Public Act No. 26-122 10 of 59

least seventy -five per cent of lending is provided to minority -owned
businesses state-wide; and (ii) that provided technical assistance on or
before June 9, 2016, provided at least seventy -five per cent of such
assistance was provided to minority-owned businesses state-wide; and
(B) "minority" means (i) Black Americans, including all persons havi ng
origins in any of the Black African racial groups not of Hispanic origin;
(ii) Hispanic Americans, including all persons of Mexican, Puerto Rican,
Cuban, Central or South American, or other Spanish culture or origin,
regardless of race; (iii) all persons having origins in the Iberian
Peninsula, including Portugal, regardless of race; (iv) women; (v) Asian
Pacific Americans and Pacific islanders; or (vi) American I ndians and
persons having origins in any of the original peoples of North America
and maintaining identifiable tribal affiliations through membership and
participation or community identification ] community development
financial institution operating in the state.
[(2)] (3) Notwithstanding the provisions of section 32-7h, as amended
by this act, the commissioner shall allocate from the available funding
under the Connecticut Small Business [Express] Boost program a total
of five million dollars for grants-in-aid to not more than two [minority]
business development entities in each of the fiscal years ending June 30,
2016, to June 30, 2020, inclusive, for the purpose of establishing and
administering [minority business revolving loan ] Connecticut
opportunity funds. Mo neys from such funds shall be used to (A)
provide loans to eligible small businesses, and (B) fund the
administrative costs associated with the provision of such loans by a
[minority] business development entity, provided a [minority] business
development entity may not use more than ten per cent of the amount
received as a grant under this section to fund such costs. Such loans shall
be used for acquisition or purchase of machinery and equipment,
construction or leasehold improvements, relocation expenses, working
capital, which may be used for payment of rent, or other business -
related expenses, as authorized by the [minority] business development
Substitute Senate Bill No. 307

Public Act No. 26-122 11 of 59

entity.
[(3)] (4) Loans from a [minority business revolving loan] Connecticut
opportunity fund may be in amounts from ten thousand dollars to a
maximum of five hundred thousand dollars, shall carry a maximum
repayment rate of four per cent and shall be for a term of not more than
ten years. The [minority] business development entity shall review and
approve loan terms, conditions and collateral requirements in a manner
that prioritizes job growth and retention.
[(4)] (5) Any eligible small business [owned by one or more members
of a minority ] may apply for assistance from a [minority business
revolving loan] Connecticut opportunity fund, provided the [minority]
business development entity shall give priority to applicants that, as
part of their business plan, are (A) creating new jobs that will be
maintained for not less than twelve consecutive months , or (B)
contributing to closing a lack in access to capital for underserved
communities and individuals.
[(5)] (6) Loans from a [minority business revolving loan] Connecticut
opportunity fund shall be provided in such a manner that, on or before
five years after the date such loan fund is established, the annual funds
or revenues derived from investment income, loan repayments or any
other sources received by the [minority] business development entity in
connection with such loan fund is sufficient to fund the administrative
costs associated with such loan fund.
[(6)] (7) A [minority] business development entity receiving a grant
pursuant to this subsection shall annually submit to the commissioner a
financial audit of grant expenditures until all grant moneys have been
expended by such entity. Any such audit shall be prepared by an
independent auditor and if the commissioner finds that any such grant
is used for purposes that are not in conformity with uses set forth in
subdivisions [(2)] (3) and [(3)] (4) of this subsection, the commissioner
Substitute Senate Bill No. 307

Public Act No. 26-122 12 of 59

may require repayment of such grant.
(8) The commissioner shall collect data on loan recipients, including,
but not limited to, geographic distribution, income levels, and any other
indicators of access to capital. Not later than February 1, 2027, and
annually thereafter, the commissioner sha ll submit a report to the
Governor, the Auditors of Public Accounts and the joint standing
committees of the General Assembly having cognizance of matters
relating to appropriations and the budgets of state agencies, finance,
revenue and bonding and commerce, in accordance with the provisions
of section 11 -4a, that provides an analysis of such data collected
pursuant to this subdivision.
(e) The commissioner, in consultation with representatives from
Connecticut-based banks and a banking industry association, may
establish as part of the Connecticut Small Business [Express] Boost
program a component operated in collaboration with Connecticut -
based banks, which may include, but need not be limited to, loan
guarantees, short-term loans used as a bridge to private sector financing
and the transfer of loans issued under subsection (c) of this section. Any
loans issued under such component shall be used for acquisition or
purchase of machinery and equipment, construction or leasehold
improvements, relocation expenses, working capital, which may be
used for payment of rent, or other busi ness-related expenses, as
authorized by the commissioner. The provisions of subsections (c) and
(d) of this section shall not be construed to apply to such component.
Such component shall be administered by Connecticut Innovations,
Incorporated, in collabo ration with the Department of Economic and
Community Development. For purposes of this section, "Connecticut -
based banks" means banks and out -of-state banks, each as defined in
section 36a-2, having deposit-taking branches in the state.
(f) The commissioner, in consultation with Connecticut Innovations,
Incorporated, may establish as part of the Connecticut Small Business
Substitute Senate Bill No. 307

Public Act No. 26-122 13 of 59

[Express] Boost program a component operated in collaboration with
Connecticut Innovations, Incorporated, which may include, but need
not be limited to, financial assistance consistent with the provisions and
purposes of sections 32-23e, 32-23ii and 32-265. Such component may be
administered by Connecticut Innovations, Incorporated, in
collaboration with the Department of Economic and Community
Development.
(g) Not later than February 1, 2022, and annually thereafter, the
commissioner shall provide a report, in accordance with the provisions
of section 11 -4a, to the joint standing committees of the General
Assembly having cognizance of matters relating to finance, revenue and
bonding, appropriations, commerce and labor. Such report shall include
available data on (1) the number of small businesses that received
assistance under the Connecticut Small Business [Express] Boost
program and the general categories of such businesses, (2) the amounts
and types of assistance provided, (3) the total number of jobs on the date
of application and the number proposed to be created or retained, (4)
the most recent employment figures of the small businesses receiving
assistance, (5) the default rate of small businesses that received
assistance under said program, and (6) the progress of the lenders
participating in said program in becoming self-sustainable. The contents
of such report shall also be included in the department's annual report.
(h) The commissioner may contract with nongovernmental entities,
including, but not limited to, nonprofit organizations, economic and
community development organizations, lending institutions, and
technical assistance providers to carry out the provisions of this section.
Sec. 3. Section 32 -7q of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
(a) There is established , within the Department of Economic and
Community Development, a [Minority] First Generation and Emerging
Substitute Senate Bill No. 307

Public Act No. 26-122 14 of 59

Business Initiative Advisory Board [, which shall be within the
Department of Economic and Community Development ] to promote
equitable growth and generational wealth. The advisory board shall: (1)
Advise the Commissioner of Economic and Community Development
with regard to increasing the availability of technical assistance, access
to capital and access to state contracts to [minority-owned] first-
generation and emerging businesses; and (2) develop and administer
programs to foster financial literacy [, min ority employment and
entrepreneurship] and generational wealth , which may include, but
need not be limited to, internship and externship programs,
apprenticeship programs, entrepreneurship development programs
and subsidies to employers for job creation. For the purposes of this
section, "emerging business" means any business that is registered and
has maintained its registration with the Secretary of the State for not
more than five years.
(b) The advisory board shall consist of the following members:
(1) Four appointed by the Commissioner of Economic and
Community Development, in consultation with members of the
minority business community. Each such appointee shall: (A) Have
skill, knowledge and experience in business and business development,
procurement, and state and federal contracting; (B) have skill,
knowledge and experience in developing minority -owned businesses;
(C) be a member of or hold an office in a community organization
serving minority populations that has economic development,
including, but not limited to, business and entrepreneurial
development, as part of its mission; (D) have business development
education and training expertise; (E) represent a business or
organization that primarily engages in business development; or (F)
own a business;
(2) One appointed by the speaker of the House of Representatives;
Substitute Senate Bill No. 307

Public Act No. 26-122 15 of 59

(3) One appointed by the president pro tempore of the Senate;
(4) One appointed by the minority leader of the House of
Representatives;
(5) One appointed by the minority leader of the Senate; [and]
(6) Two appointed by the chairperson of the Black and Puerto Rican
Caucus of the General Assembly; and
[(6)] (7) The Commissioner of Economic and Community
Development, or the commissioner's designee.
(c) All [appointments to] members of the [task force shall be made not
later than September 1, 2017. Members ] advisory board shall serve a
two-year term and may not serve more than three such terms
consecutively, except that each member shall hold office until a
successor is appointed. Any vacancy shall be filled by the appointing
authority.
(d) [The commissioner shall schedule the first meeting of the advisory
board not later than September 30, 2017.] The advisory board shall elect
a chairperson from among its members. The advisory board shall meet
at such times as the chairperson deems necessary.
(e) No member of the advisory board shall receive compensation for
such member's services.
(f) The advisory board may establish bylaws to govern its practices.
Sec. 4. Section 32 -462 of the general statutes is repealed and the
following is substituted in lieu thereof ( Effective July 1, 2026, and
applicable to income and taxable years commencing on and after January 1,
2026):
(a) As used in this section:
Substitute Senate Bill No. 307

Public Act No. 26-122 16 of 59

(1) "Agency" means the Department of Economic and Community
Development or Connecticut Innovations, Incorporated.
(2) "Financial assistance" means grants, loans, loan guarantees,
contracts of insurance, investments, or combinations thereof, which are
provided from the proceeds of bonds, notes or other obligations of the
state or an agency which constitute a debt or liability of the state or
which are secured by a specia l capital reserve fund payable from
amounts appropriated or deemed appropriated from the General Fund.
(3) "Applicant" means any eligible applicant seeking financial
assistance from an agency for a business project. The term "applicant"
shall not include any political subdivision of the state.
(4) "Business project" means a business proposal undertaken by one
or more applicants, but does not include housing unless undertaken in
combination with another unrelated type of business.
[(5) "Biotechnology business project" means any commercial project
to be used or occupied by any person to conduct laboratory activity
relating to, or the research, development or manufacture of, biologically
active molecules or devices that apply to, affect or analyze biological
processes.]
(b) (1) No agency or agencies may award more than a total of [ten]
twenty-five million dollars of financial assistance during any two -year
period to an applicant or for a business project unless such financial
assistance is specifically authorized by an act of the General Assembly
which has been enacted before, on or after July 1, [1994] 2026. (2) The
provisions of subdivision (1) of this subsection shall not apply to any
awards funded or to be funded by bonds authorized to be issued by the
State Bond Commission before July 1, 1994.
[(c) Notwithstanding the provisions of subsection (b) of this section,
no agency or agencies may award more than twenty million dollars of
Substitute Senate Bill No. 307

Public Act No. 26-122 17 of 59

financial assistance for a biotechnology business project during any two-
year period unless such financial assistance is specifically authorized by
an act of the General Assembly which has been enacted before, on or
after July 1, 2001.]
Sec. 5. Section 31 -51r of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
(a) As used in this section:
(1) "Employer" means any person engaged in business who has
twenty-six or more employees, including the state and any political
subdivision thereof.
(2) "Employee" means any person engaged in service to an employer
in the business of [his] the employer.
(3) "Employment promissory note" means any instrument or
agreement executed on or after October 1, 1985, which requires an
employee to pay the employer, or [his] the employer's agent or assignee,
a sum of money if the employee leaves such employment before the
passage of a stated period of time. "Employment promissory note"
includes any such instrument or agreement which states such payment
of moneys constitutes reimbursement for training previously provided
to the employee, but does not include a promissory note entered into by
an employer and employee for the full or partial repayment of any fee
relating to a federal H-1B visa and paid by an employer on behalf of an
employee.
(b) On or after October 1, 1985, no employer may require, as a
condition of employment, any employee or prospective employee to
execute an employment promissory note. The execution of an
employment promissory note as a condition of employment is against
public policy and any such note shall be void. If any such note is part of
an employment agreement, the invalidity of such note shall not affect
Substitute Senate Bill No. 307

Public Act No. 26-122 18 of 59

the other provisions of such agreement.
(c) Nothing in this section shall prohibit or render void any
agreement between an employer and an employee (1) requiring the
employee to repay to the employer any sums advanced to such
employee, (2) requiring the employee to pay the employer for any
property it has sold or leased to such employee, (3) requiring
educational personnel to comply with any terms or conditions of
sabbatical leaves granted by their employers, or (4) entered into as part
of a program agreed to by the employer and its employees' co llective
bargaining representative.
Sec. 6. Section 32 -1u of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
(a) The Department of Economic and Community Development [,
through its Office of Film, Television and Digital Media, ] shall serve as
a state -wide point of contact for all producers of film, television and
digital media productions requesting permission to (1) conduct film
production activities on state -owned property, including, but not
limited to, all state roads and hig hways, railroads and train stations,
state forests and parks, airports and seaports, hospitals and all
campuses of the public institutions of higher education in the state; and
(2) use any other state -owned real or personal property, except
courthouses and judicial branch facilities, for such purposes.
(b) The Commissioner of Economic and Community Development
may issue a state film permit, on a form designated by the
commissioner, to any person seeking to conduct film production
activities on such state -owned property. Such permit shall specify the
insurance coverage that the permittee shall be required to obtain, as
determined by the commissioner in consultation with the state's
Director of Insurance and Risk Management, with the state named as an
additional insured. No liability shall accrue to the state or any agency or
Substitute Senate Bill No. 307

Public Act No. 26-122 19 of 59

employee of the state for any injuries or damages to any person or
property that may result, either directly or indirectly, from such film
production activities of the permittee on such state-owned property.
(c) A state film permit shall identify the person requesting permission
to conduct film production activities on state property and indicate that
the permittee has provided documentation to the Department of
Economic and Community Development substantiating the permittee's
ability to conduct indemnified film production activities. Any permittee
seeking permission to conduct film production activities on property
controlled by a state agency, authority or institution shall present such
permit to such agency, authority or institution when the permittee
requests such permission. Following the presentment of such permit by
a permittee, such state agency, authority or institution may authorize
film production activities by the permittee on such property.
(d) The Commissioner of Economic and Community Development,
pursuant to section 32 -1p, shall establish guidelines to be used in
working with state agencies, authorities or institutions to implement the
provisions of this section. Such guidelines shall include, but need not be
limited to: (1) An agency contact [at the Office of Film, Television and
Digital Media ] for filing permit applications and for obtaining
information on permit requirements; (2) identification of each
individual within each respective s tate agency who shall be a point of
contact for an agency permit application; (3) a mandatory
preapplication review process to reduce permitting issues or conflicts
by providing guidance to applicants on (A) information required for
authorization or permit approval from the relevant state agencies,
authorities or institutions, (B) specifications for desired on -site
production and production -related activities, site suitability and
limitations, and (C) steps the applicant can take to ensure expeditious
permit application; (4) a single, coordinated production activity
description form, including an equipment checklist and personnel
Substitute Senate Bill No. 307

Public Act No. 26-122 20 of 59

roster; (5) a process by which the [Office of Film, Television and Digital
Media] Department of Economic and Community Development may
forward permit applications to other relevant state agencies, authorities
or institutions on behalf of an applicant; and (6) at the commissioner's
discretion, a permit fee structure.
(e) The [Office of Film, Television and Digital Media, at the request of
the] Commissioner of Economic and Community Development [,] may
request the assistance of any other agency, authority or institution of the
state to assist in providing information and assistance as may be
necessary to expedite [such office's] the performance of the duties and
responsibilities [under] described in this section. Each officer or
employee of such other agency, authority or institution of the state shall
make reasonable efforts to cooperate with the [Office of Film, Television
and Digital Media ] Department of Economic and Community
Development.
Sec. 7. Subsection (c) of section 32 -286 of the general statutes is
repealed and the following is substituted in lieu thereof ( Effective from
passage):
(c) (1) Any person described in subsection (b) of this section that seeks
an exemption under subsection (b) of this section shall submit an
application to the Commissioner of Economic and Community
Development, in a manner and form prescribed by the commissioner. If
the commissioner approves such application, the commissioner shall
enter into an agreement with such person, provided such person
demonstrates to the satisfaction of the commissioner that:
(A) The facility to be developed, acquired, constructed, rehabilitated,
renovated, repaired or operated will be used as a qualified data center;
and
(B) The qualified data center will make, on or before the fifth
Substitute Senate Bill No. 307

Public Act No. 26-122 21 of 59

anniversary of the date an agreement entered into pursuant to this
section becomes effective, a qualified investment of at least (i) fifty
million dollars if such qualified data center is located in an enterprise
zone designated pursuant to section 32 -70 or a federal qualified
opportunity zone designated pursuant to the Tax Cuts and Jobs Act of
2017, P.L. 115 -97, as amended from time to time, or (ii) two hundred
million dollars if such qualified data center is not located in an
enterprise zone or a federal qualified opportunity zone.
(2) Any agreement entered into pursuant to this subsection shall:
(A) Be for a period of twenty years, unless extended under the
provisions of subdivision (3) of this subsection, from the date an
agreement entered into pursuant to this section becomes effective,
which may be in the year in which the construction, rehabilitation,
renovation or repair of a qualified data center commences;
(B) Include a five-year qualifying period, from the date an agreement
entered into pursuant to this section becomes effective, for the
applicable qualified investment amount set forth in subparagraph (B) of
subdivision (1) of this subsection to be reached;
(C) Include the payment of an annual fee by the qualified data center,
to be determined annually by the commissioner and not to exceed fifty
thousand dollars, for the administrative and operational costs [of the
Office of Data Infrastructure Administration and Security established
under subdivision (5) of this subsection ] relating to the department's
processing of applications submitted pursuant to the provisions of this
subsection. Such fee shall be paid by the qualified data center to the
commissioner during each year of such qualifying period or until the
applicable qualified investment amount set forth in subparagraph (B) of
subdivision (1) of this subsection is reached, whichever is sooner;
(D) Include a detailed description of the capital project that is the
Substitute Senate Bill No. 307

Public Act No. 26-122 22 of 59

subject of the agreement;
(E) Provide that the provisions of the agreement shall be applicable,
within the time period such agreement is effective and for the remaining
duration of such time period, to any (i) subsequent owner of the
qualified data center, (ii) operator or affiliate of the operator of the
qualified data center, or (iii) colocation tenant, provided the facility
continues to be used as a qualified data center; and
(F) Include provisions for the assessment and payment of the taxes
exempted pursuant to such agreement and the rates or amounts of
penalties and interest to be imposed thereon, if the commissioner
determines that the requirements of the agreement or of a qualified data
center are not being met or have not been met.
(3) If a qualified data center makes a qualified investment of at least
(A) two hundred million dollars if such qualified data center is located
in an enterprise zone designated pursuant to section 32 -70 or a federal
qualified opportunity zone designated pursu ant to the Tax Cuts and
Jobs Act of 2017, P.L. 115-97, as amended from time to time, or (B) four
hundred million dollars if such qualified data center is not located in an
enterprise zone or a federal qualified opportunity zone, the
commissioner shall extend to thirty years the period for which an
agreement entered into pursuant to this section is effective.
(4) Any qualified data center that enters into an agreement pursuant
to this section and makes the applicable qualified investment amount
set forth in subdivision (3) of this subsection, and any operator or
affiliate of and colocation tenant of such qualified data center, shall be
exempt from any financial transactions tax or fee that may be imposed
by the state on trades of stocks, bonds, derivatives and other financial
products. The exemption under this subdivision shall be effective for a
period of thirt y years from the date the construction, rehabilitation,
renovation or repair of a facility is completed, as determined by the
Substitute Senate Bill No. 307

Public Act No. 26-122 23 of 59

commissioner. The commissioner may incorporate the provisions of this
subdivision into the agreement entered into pursuant to this section or
amend an existing agreement with a qualified data center to incorporate
the provisions of this subdivision.
(5) [There is established an Office of Data Infrastructure
Administration and Security within the Department of Economic and
Community Development. The office ] The Department of Economic
and Community Development shall (A) serve as the liaison between
applicants and qualified data centers and other state agencies, (B)
provide assistance to applicants and qualified data centers from the
preapplication phase to the post -operational stage, and (C) seek to
ensure coor dinated, efficient and timely responses to applicants and
qualified data centers.
Sec. 8. Section 32 -726 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
(a) As used in this section:
(1) "Jobs" means permanent, full -time equivalent positions, not
including construction jobs;
(2) "Commissioner" means the Commissioner of Economic and
Community Development;
(3) "Permit applications" means applications for state permits and
licenses; and
(4) "Permit ombudsman" means the [office of the ] person the
commissioner designates as the permit ombudsman [established]
within the Department of Economic and Community Development
[under] pursuant to the provisions of this section.
(b) (1) The commissioner shall [establish an office of the] designate a
Substitute Senate Bill No. 307

Public Act No. 26-122 24 of 59

permit ombudsman for the purpose of expediting review of permit
applications for projects that would (A) create at least one hundred jobs,
(B) create fifty jobs, if such project is to be located in an enterprise zone
designated pursuant to section 32-70, (C) be located in a brownfield, as
defined in section 32-760, (D) be compatible with the state's responsible
growth initiatives, (E) be considered transit -oriented development, as
defined in section 13b-79kk, (F) develop green technology business, (G)
develop bioscience business, (H) develop any of the state's federally
designated opportunity zones, or (I) meet the criteria set forth in
subdivision (2) of this subsection. Projects ineligible for review under
this section are projects for which the primary purpose is to (i) effect the
final disposal of solid waste, biomedical waste or hazardous waste in
this state, (ii) produce electrical power, unless the production of
electricity is incidental and not the primary function of the project, (iii)
extract natural resources, (iv) produce oil, or (v) construct, maintain or
operate an oil, petroleum, natural gas or sewage pipeline. For purposes
of this section, "responsible growth initiatives" includes the principles of
smart growth, as defined in section 1 of public act 09 -230, and "green
technology business" means an eligible business with not less than
twenty-five per cent of its employment positions being positions in
which green technology is employed or developed and may include the
occupation codes identified as green jobs by the Department of
Economic and Community Development and the Labor Department for
such purposes. The permit ombudsman shall also assist and provide
guidance to bioscience businesses seeking to expedite the review and
approval of permits required by local zoning authorities.
(2) Notwithstanding the provisions of subdivision (1) of this
subsection, the commissioner may, upon consideration of the economic
impact factors of the project that include, but are not limited to: (A) The
proposed wage and skill levels relative to those exis ting in the area in
which the project may be located, (B) the project's potential to diversify
and strengthen the state and local economy, (C) the amount of capital
Substitute Senate Bill No. 307

Public Act No. 26-122 25 of 59

investment, and (D) in the judgment of the commissioner, after
consultation with the Departments of Energy and Environmental
Protection, Transportation and Public Health that there is consistency
with the strategic economic development priorities of the st ate and the
municipality, deem projects eligible for expedited permitting pursuant
to this section.
(c) The Departments of Energy and Environmental Protection,
Transportation and Public Health shall each designate through existing
and available resources one or more staff members to act as a business
ombudsmen and a liaison between their [offices] departments and the
permit [ombudsmen] ombudsman. The Commissioners of Economic
and Community Development, Energy and Environmental Protection,
Transportation and Public Health shall enter into a memorandum of
understanding concerning each entity's responsibilit ies with respect to
the permit [ombudsmen] ombudsman and the process for expediting
eligible permit applications, which shall include appropriate
opportunities for public participation.
(d) The memorandum of understanding may provide for the waiver
or modification of procedural rules prescribing forms, fees, procedures
or time limits for the review or processing of permit applications under
the jurisdiction of those agencies. Notwithstanding any other provision
of the general statutes, to the extent feasible, the memorandum of
understanding shall provide for proceedings and hearings otherwise
held separately by the parties to be combined into one proceeding or
held jointly and at one location. Such waivers or modifications shall not
be available for permit applications governed by federally delegated or
approved permitting programs, the requirements of which would
prohibit, or be inconsistent with, such waivers or modifications. In no
event shall the memorandum of understanding waive requirements of
environmental statutes or regulations.
(e) The permit ombudsman may solicit the assistance of volunteers
Substitute Senate Bill No. 307

Public Act No. 26-122 26 of 59

from the private sector, including volunteers from a state-wide business
association, the Office of Responsible Growth , established pursuant to
section 4-66d, and [from] an association representing small businesses.
Said volunteers may assist the permit ombudsman in developing the
guidelines established pursuant to subsection (f) of this section.
(f) The permit ombudsman, subject to the approval of the
Commissioner of Economic and Community Development, shall
establish, pursuant to subsection (c) of this section, guidelines to be used
in working with state permitting authorities to im plement the
provisions of this section . Guidelines shall include, but are not limited
to, the following: (1) An agency contact point for filing permit
applications and for obtaining information on permit requirements; (2)
identification of the individual or individuals within each respective
agency who shall be responsible for processing the expedited permit
application; (3) a mandatory preapplication review process to reduce
permitting conflicts by providing guidance to applicants on (A) the
permits needed from each age ncy, (B) specifications for site planning
and development, site suitability and limitations and facility design, and
(C) steps the applicant can take to ensure expeditious permit application
and local comprehensive plan amendment review; (4) a single,
coordinated project description form and checklist and an agreement by
state agencies to reduce the necessity that an applicant provide
duplicate information to multiple agencies; and (5) an application fee
structure for permit expedition.
(g) The permit ombudsman, at the request of the Commissioner of
Economic and Community Development, may request the assistance of
any other department, board, commission or other agency of the state to
assist in providing information and assistance as said per mit
ombudsman determines necessary to expedite its duties and
responsibilities. Each officer or employee of such office, department,
board, commission or other agency of the state shall make reasonable
Substitute Senate Bill No. 307

Public Act No. 26-122 27 of 59

efforts to cooperate with the permit ombudsman.
(h) The expedited permitting process established pursuant to this
section shall not modify, qualify or otherwise alter existing agency
nonprocedural standards for permit applications, unless expressly
authorized by law. If it is determined that the applicant is not eligible to
use this process, the applicant may apply for permitting of the project
through the normal permitting processes.
Sec. 9. Subdivision (7) of subsection (a) of section 32 -1m of the 2026
supplement to the general statutes is repealed and the following is
substituted in lieu thereof (Effective from passage):
(7) With regard to the Connecticut Small Business [Express] Boost
program established pursuant to section 32-7g, as amended by this act,
data on (A) the number of small businesses that received assistance
under said program and the general categories of such businesses, (B)
the amounts and types of assistance provided, (C) the total number of
jobs on the date of application and the number proposed to be created
or retained, (D) the most recent employment figures of the small
businesses receiving assistance, (E) the default rate of small businesses
that received assistance under said program, and (F) the progress of the
lenders participating in said program in becoming self-sustainable.
Sec. 10. Subdivision (11) of subsection (a) of section 32-1m of the 2026
supplement to the general statutes is repealed and the following is
substituted in lieu thereof (Effective from passage):
(11) A summary of the department's and the [office of the ] permit
ombudsman's brownfield-related efforts and activities in the preceding
fiscal year.
Sec. 11. Section 32 -761 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
Substitute Senate Bill No. 307

Public Act No. 26-122 28 of 59

(a) [There is established, within the ] The Department of Economic
and Community Development [, an Office of Brownfield Remediation
and Development. Such office shall be managed by a director,
appointed by the commissioner in accordance with section 5 -198. In
addition to the other powers, duties and responsibilities provided for in
this chapter, th e office] shall promote and encourage the remediation
and development of brownfields in the state. The [Office of Brownfield
Remediation and Development ] department shall coordinate and
cooperate with state and local agencies and individuals within the state
on brownfield redevelopment initiatives, including program
development and administration, community outreach, regional
coordination and seeking federal funding opportunities.
(b) The [office] department shall:
(1) Develop procedures and policies for streamlining the process for
brownfield remediation and development;
(2) Identify existing and potential sources of funding for brownfield
remediation and develop procedures for expediting the application for
and release of such funds;
(3) [Establish an office and maintain ] Maintain an informational
Internet web site to provide assistance and information concerning the
state's technical assistance, funding, regulatory and permitting
programs for brownfield remediation and development;
(4) Provide a single point of contact for financial and technical
assistance from the state and quasi -public agencies with regard to
brownfield remediation and development;
(5) Develop a common application to be used by all state and quasi -
public entities providing financial assistance for brownfield assessment,
remediation and development;
Substitute Senate Bill No. 307

Public Act No. 26-122 29 of 59

(6) Identify and prioritize state -wide brownfield development
opportunities, including, but not limited to, in consultation with the
State Historic Preservation [Office] Officer, municipal officials and
regional planning organizations, the identification of abandoned and
underutilized mills that are important assets to the municipalities or the
regions in which such mills are located;
(7) Develop and administer a communication and outreach program
to educate municipalities, economic development agencies, property
owners, potential property owners and other organizations and
individuals with regard to state programs for brownfield remediation
and redevelopment;
(8) At the [office's] department's discretion, enter into cooperative
agreements with economic development agencies and may, where
appropriate, make grants to such organizations for the purpose of
designing, implementing and supervising brownfield assessment and
cleanups, or making further subgrants, provided each subgrant is in
compliance with the terms and conditions of the original grant; and
(9) Create and maintain a web site independent of the department's
other web sites that is specifically dedicated to marketing and
promoting state -owned brownfields, and develop and implement a
marketing campaign for such brownfields and web site.
(c) [The Department of Energy and Environmental Protection,
Connecticut Innovations, Incorporated, the Office of Policy and
Management and the Department of Public Health shall each designate
one or more staff members to act as a liaison between their offices a nd
the Office of Brownfield Remediation and Development. ] The
Commissioners of Economic and Community Development, Energy
and Environmental Protection and Public Health, the Secretary of the
Office of Policy and Management and the chief executive offi cer of
Connecticut Innovations, Incorporated shall enter into a memorandum
Substitute Senate Bill No. 307

Public Act No. 26-122 30 of 59

of understanding concerning each entity's responsibilities with respect
to the [Office of Brownfield Remediation and Development. The Office
of Brownfield Remediation and Development] Department of Economic
and Community Development's brownfield and remediation activities.
The department may recruit two volunteers from the private sector,
including a person from the Connecticut chapter of the National
Brownfield Association, with experience in different aspects of
brownfield remediation and development. Sai d volunteers may assist
the [Office of Brownfield Remediation and Development ] department
in marketing the brownfield programs and redevelopment activities of
the state.
(d) The [Office of Brownfield Remediation and Development ]
department may call upon any other department, board, commission or
other agency of the state to supply such reports, information and
assistance as said [office] department determines is appropriate to carry
out its duties and responsibilities. Each officer or employee of such
office, department, board, commission or other agency of the state is
authorized and directed to cooperate with the [Office of Brownfield
Remediation and Development ] department and to furnish such
reports, information and assistance.
Sec. 12. Subsection (a) of section 32 -764 of the general statutes is
repealed and the following is substituted in lieu thereof ( Effective from
passage):
(a) Any recipient of a grant pursuant to subsection (b) of section 32 -
763 or subsection (c) of section 32-9cc of the general statutes, revision of
1958, revised to January 1, 2013, shall not be liable under section 22a -
427, 22a-432, 22a-433, 22a-451 or 22a -452 for conditions pre -existing or
existing on the brownfield property as of the date of acquisition or
control, provided such recipient (1) did not establish, create, cause or
contribute to the discharge, spillage, uncontrolled loss, seepage or
filtration of such hazardous substance, material, waste or pollution that
Substitute Senate Bill No. 307

Public Act No. 26-122 31 of 59

is subject to remediation under section 22a -133k and funded by the
[Office of Brownfield Remediation and Development or the ]
Department of Economic and Community Development; (2) does not
exacerbate the conditions; and (3) complies with reporting of significant
environmental hazard requirements in section 22a-6u. To the extent that
any conditions are exacerbated, such recipient shall only be responsible
for responding to contamination exacerbated by its negligent or reckless
activities.
Sec. 13. Section 32-4r of the 2026 supplement to the general statutes is
repealed and the following is substituted in lieu thereof (Effective from
passage):
(a) There is established a Youth Service Corps grant program to be
administered by the Department of Economic and Community
Development for the purpose of providing grants to municipalities of
priority school districts, as described in section 10 -266p, to establish
local Youth Service Corps programs. Such programs shall provide paid
community-based service learning and academic and workforce
development programs to youth and young adults in the state in
accordance with the provisions of section 32-4s.
(b) Not later than October 1, 2022, the Commissioner of Economic and
Community Development shall develop an application process and
selection criteria for Youth Service Corps program grants.
(c) Not later than January 1, 2023, and annually thereafter, the
Commissioner of Economic and Community Development shall award
a grant to each municipality selected to participate in the program in the
amount of ten thousand dollars per youth or young adult p articipating
in such municipality's local Youth Service Corps program plus fifteen
per cent of such amount for program administration expenses. Such
municipalities may use such grants to (1) administer the local Youth
Service Corps program, and (2) awa rd a subgrant of not more than ten
Substitute Senate Bill No. 307

Public Act No. 26-122 32 of 59

thousand dollars to any youth or young adult participating in a local
Youth Service Corps program to support or subsidize such youth or
young adult's participation in program activities.
(d) Not later than December 1, 2023, and annually thereafter, each
municipality that received a Youth Service Corps program grant shall
submit a report evaluating its local Youth Service Corps program to the
Commissioners of Economic and Community Development and
Children and Families in a form and manner prescribed by the
Commissioner of Economic and Community Development.
[(e) Not later than January 1, 2024, and annually thereafter, the
Commissioner of Economic and Community Development, in
consultation with the Commissioner of Children and Families, shall
report, in accordance with the provisions of section 11 -4a, to the joint
standing committees of the General Assembly having cognizance of
matters relating to commerce and children regarding the Youth Service
Corps grant program.]
[(f)] (e) There is established an account to be known as the "youth
service corps grant program account", which shall be a separate,
nonlapsing account. The account shall contain any moneys required by
law to be deposited in the account. Moneys in the account shall be
expended by the Commissioner of Economic and Community
Development for the purposes of providing grants to municipalities of
priority school districts, as described in section 10 -266p, to establish
local Youth Service Corps programs that provi de paid community -
based service learning and academic and workforce development
programs to youth and young adults in the state in accordance with the
provisions of section 32-4s.
Sec. 14. Subsection (f) of section 32-7aa of the 2026 supplement to the
general statutes is repealed and the following is substituted in lieu
thereof (Effective from passage):
Substitute Senate Bill No. 307

Public Act No. 26-122 33 of 59

(f) Not later than [January] February 1, 2027, and annually thereafter,
the commissioner shall submit a report, in accordance with the
provisions of section 11 -4a, containing an evaluation of the operation
and effectiveness of the program to the joint standing committee of the
General Assembly having cognizance of matters relating to commerce.
Sec. 15. Subdivision (3) of subsection (c) of section 38a -88a of the
general statutes is repealed and the following is substituted in lieu
thereof (Effective from passage):
(3) (A) On or before July 1, 2010, the Commissioner of Economic and
Community Development shall begin to accept applications for
certification as an invest CT fund and for allocations of tax credits under
this subsection with allocation dates of June 30, 2015, or earlier. On and
after September 1, 2015, the commissioner shall accept applications for
certification as an invest CT fund and for allocations of tax credits under
this subsection with allocation dates of September 1, 2015, or later.
Applications s hall include: (i) The amount of eligible capital the
applicant will raise; (ii) a nonrefundable application fee of seven
thousand five hundred dollars; (iii) evidence of satisfaction of the
requirements of the definition of "invest CT fund" pursuant to
subparagraph (G) of subdivision (1) of this subsection; (iv) an affidavit
by each taxpayer committing an investment of eligible capital; (v) a
business plan detailing (I) the approximate percentage of eligible capital
the applicant will invest in eligible businesses by the third, fifth, seventh
and ninth anniversaries of its allocation date, (II) the industry segments
listed by the North American Industrial Classification System code and
percentage of eligible capital in which the applicant will invest, (III) the
number of jobs that will be created or retained as a result of the
applicant's investments once all eligible capital has been invested, (IV)
the percentage of eligible capital to be invested in eligible businesses
primarily engaged in conducting resear ch and development or
manufacturing, processing or assembling technology –based products,
Substitute Senate Bill No. 307

Public Act No. 26-122 34 of 59

and (V) a revenue impact assessment demonstrating that the applicant's
business plan has a revenue neutral or positive impact on the state; (vi)
a commitment to invest at least twenty-five per cent of its eligible capital
in green technology businesses; (v ii) with respect to applications
submitted on or before June 30, 2015, a commitment to invest, by the
third anniversary of its allocation date, three per cent of its eligible
capital in preseed investments, and with respect to applications
submitted on or after September 1, 2015, a commitment to invest, by the
fourth anniversary of the allocation date, seven per cent of its eligible
capital in preseed investments, in consultation with Connecticut
Innovations, Incorporated, pursuant to the corporation's prog ram for
preseed financing established pursuant to section 32-41x; and (viii) with
respect to applications submitted on or after September 1, 2015, a
commitment to invest at least three per cent of its eligible capital in
cybersecurity businesses and at least twenty-five per cent of its eligible
capital in eligible businesses located in municipalities with a population
greater than eighty thousand. The commissioner may require the
applicant to obtain a revenue impact assessment conducted by an
independent third party.
(B) (i) From October 1, 2024, to September 30, 2026, inclusive, an
applicant may submit to the commissioner a request, in such form and
manner prescribed by the commissioner, to consider as an eligible
business a business that does not have its principal business operations
in Connecticut. The commissioner may approve such a request if the
commissioner determines that such an approval would significantly
advance the objectives of the invest CT fund program, provided such
applicant complies with all other requirements under subparagraph (A)
of this subdivision.
(ii) Not later than January 1, 2026, the commissioner shall submit a
report, in accordance with the provisions of section 11 -4a, on any
requests approved by the commissioner pursuant to subparagraph
Substitute Senate Bill No. 307

Public Act No. 26-122 35 of 59

(B)(i) of this subdivision during the period of October 1, 2024, to
September 30, 2025, inclusive, to the joint standing committee of the
General Assembly having cognizance of matters relating to commerce.
Not later than [January] February 1, 2027, the commissioner shall submit
a report, in accordance with the provisions of section 11 -4a, on any
requests approved by the commissioner pursuant to subparagraph
(B)(i) of this subdivision during the period of October 1, 2025, to
September 30, 20 26, inclusive, to the joint standing committee of the
General Assembly having cognizance of matters relating to commerce.
Such reports shall include, but need not be limited to, a list of the
applicants whose requests were approved by the commissioner and an
analysis of th e benefit to and impact on the state resulting from such
approvals.
Sec. 16. Subsection (b) of section 32 -9aaa of the 2026 supplement to
the general statutes is repealed and the following is substituted in lieu
thereof (Effective from passage):
(b) Not later than [January] February 1, 2026, and annually thereafter,
the Commissioner of Economic and Community Development shall
submit a report, in accordance with the provisions of section 11 -4a, to
the joint standing committee of the General Assembly having
cognizance of matters relati ng to finance, revenue and bonding. Such
report shall include (1) the number of applications received by the
commissioner during the previous calendar year for a grant -in-aid
pursuant to subsection (a) of this section, and (2) the total amount of
funds requested in such applications.
Sec. 17. Section 32 -7n of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
(a) There is established a Manufacturing Innovation Advisory Board
that shall consist of the following members: (1) Four appointed by the
Governor; (2) one appointed by the president pro tempore of the Senate;
Substitute Senate Bill No. 307

Public Act No. 26-122 36 of 59

(3) one appointed by the speaker of the House of Representatives; (4)
one appointed by the majority leader of the Senate; (5) one appointed by
the majority leader of the House of Representatives; (6) one appointed
by the minority leader of the Senate; (7) one appointed by the minority
leader of the House of Representatives; (8) the Chief Workforce Officer,
or the officer's designee; and (9) the Commissioner of Economic and
Community Development, or the commissioner's designee, who shall
serve as the chairperson of the advisory board. The advisory board may
consult with any individual or entity to accomplish its purposes. Each
appointed member shall (A) have skill, knowledge and experience in
industries and sciences related to aerospace, medical devices,
biotechnology, digital manufacturing, digital communication , [or]
semiconductors, advanced manufacturing or clean energy production ;
(B) be a university or community college faculty member or a technical
high school teacher in, or hold a graduate degree in, a related discipline,
including, but not limited to, additive manufact uring and materials
science; (C) have manufacturing education and training expertise; or (D)
represent manufacturing related businesses or professional
organizations. Appointed members shall each serve a term that is
coterminous with the respective appoint ing authority. Each member
shall hold office until a successor is appointed. Any vacancy occurring
on the advisory board, other than by expiration of term, shall be filled
in the same manner as the original appointment for the balance of the
unexpired term.
(b) The chairperson shall call the first meeting of the advisory board
not later than September 30, 2014. The advisory board shall meet at such
times as the chairperson deems necessary.
(c) No member of the advisory board shall receive compensation for
such member's services, except that each member shall be entitled to
reimbursement for actual and necessary expenses incurred in the
performance of such member's official duties.
Substitute Senate Bill No. 307

Public Act No. 26-122 37 of 59

(d) A majority of the members of said advisory board shall constitute
a quorum for the transaction of any business or the exercise of any
power of the advisory board. The advisory board may act by a majority
of the members present at any meeting at which a quo rum is in
attendance, for the transaction of any business or the exercise of any
power of the advisory board, except as otherwise provided in this
section.
(e) Notwithstanding any provision of the general statutes, it shall not
constitute a conflict of interest for a trustee, director, partner, officer,
manager, shareholder, proprietor, counsel or employee of an eligible
recipient, or any individual with a financ ial interest in an eligible
recipient, to serve as a member of the advisory board, provided such
trustee, director, partner, officer, manager, shareholder, proprietor,
counsel, employee or individual shall abstain from deliberation, action
or vote by t he advisory board concerning any matter relating to such
eligible recipient.
(f) Any member appointed pursuant to subdivisions (1) to (7),
inclusive, of subsection (a) of this section who fails to attend three
consecutive meetings of the advisory board or fails to attend fifty per
cent of all meetings of the advisory board held during any calendar year
shall be deemed to have resigned. If a vacancy occurs as a result of such
a resignation, the appointing authority having the power to make the
initial appointment under the provisions of this section shall appoint a
person for the unexpired term in accordance with the provisions of this
section. If such vacancy is not filled within sixty calendar days, the
chairperson of the advisory board shall temporarily appoint a person to
fill the vacancy until the appointing authority makes an appointment.
Sec. 18. Subsection (n) of section 32 -7o of the general statutes is
repealed and the following is substituted in lieu thereof ( Effective from
passage):
Substitute Senate Bill No. 307

Public Act No. 26-122 38 of 59

(n) Not later than [January 1, 2016 ] February 1, 2027 , and annually
thereafter, the administrator shall provide a report of the activities of the
Connecticut Manufacturing Innovation Fund to the Manufacturing
Innovation Advisory Board for the advisory board's review and
approval. Upon such approval, the [advisory board] administrator shall
provide such report, in accordance with the provisions of section 11-4a,
to the joint standing committee of the General Assembly having
cognizance of matters relating to commerce. Such report shall contain
available information on the status and progress of the operations and
funding of the Connecticut Manufacturing Innovation Fund and the
types, amounts and recipients of financial assistance awarded and any
returns on investment.
Sec. 19. Section 10 -397c of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
(a) There is established within the Department of Economic and
Community Development, for administrative purposes only, a
Connecticut Tourism Council. The council shall consist of (1) the
Commissioner of Economic and Community Development, or the
commissioner's designee, (2) the Commissioner of Transportation, or
the commissioner's designee, (3) the Commissioner of Energy and
Environmental Protection, or the commissioner's designee, (4) thirteen
members appointed by the Governor, (A) one of whom shall represent
the lodging industry, (B) one of whom shall represent a chamber of
commerce, (C) one of whom shall represent a tourist attraction, (D) one
of whom shall represent the arts, (E) one of whom shall represent a
culturally diverse event or attraction, (F) one of whom shall represent
the heritage tourism industry, (G) one of whom shall represent the
airline industry, (H) one of whom shall represent the Connecticut
Airport Authority, (I) one of whom shall represent a convention center
and sports arena trade organ ization, (J) one of whom shall represent a
charter bus trade organization, (K) two of whom shall represent casino
Substitute Senate Bill No. 307

Public Act No. 26-122 39 of 59

gaming facilities, and (L) one of whom shall represent the Connecticut
Tourism Coalition, (5) fourteen members appointed as follows: (A)
Three by the president pro tempore of the Senate, one of whom shall
represent the agritourism industry, one of whom sha ll represent the
convention center and coliseum industry and one of whom shall
represent the eastern regional tourism district established pursuant to
section 10-397, (B) two by the majority leader of the Senate, one of whom
shall represent the events industry and one of whom shall represent the
western regional tourism district established pursuant to section 10-397,
(C) two by the minority leader of the Senate, one of whom shall
represent the marine trades industry and one of whom shall represent
the outdoor recreation industry, (D) three by the speaker of the House
of Representatives, one of whom shall represent the destination
shopping industry, one of whom shall represent the restaurant industry
and one of whom shall represent the central regional touri sm district
established pursuant to section 10-397, (E) two by the majority leader of
the House of Representatives, one of whom shall represent the
attractions industry and one of whom shall represent the lodging
industry, and (F) two by the minority leade r of the House of
Representatives, one of whom shall represent the museum industry and
one of whom shall represent the tour and travel industry. All members
appointed by the Governor shall serve a term of four years. The terms
of all members appointed by members of the General Assembly shall be
coterminous with the terms of such members of the General Assembly.
Any member appointed pursuant to the provisions of this section who
fails to attend three consecutive meetings of the council or fails to attend
fifty per cent of all meetings of the council held during any calendar year
shall be deemed to have resigned. If a vacancy occurs as a result of such
a resignation, the appointing authority having the power to make the
initial appointment under the provisions of this section shall appoint a
person for the unexpired term in accordance with the provisions of this
section. If such vacancy is not filled within sixty calendar days, the
chairperson of the advisory board shall temporarily appoint a person to
Substitute Senate Bill No. 307

Public Act No. 26-122 40 of 59

fill the vacancy until the appointing authority makes an appointment.
The Commissioner of Economic and Community Development shall
serve as chairperson of the council.
(b) The council shall: (1) Adopt procedures for the operation of the
council; and (2) review and approve or recommend changes to the
strategic marketing plan developed by the Department of Economic and
Community Development pursuant to subdivision (1) of subsection (b)
of section 10-392. [; and (3) not]
(c) Not later than [January 1, 2021 ] February 1, 2027 , and annually
thereafter, the Commissioner of Economic and Community
Development shall submit a report describing tourism promotion
efforts by the state and evaluating the strategic marketing plan [,
developed by the Department of Economic and Community
Development pursuant to subdivision (1) of subsection (b) of section 10-
392,] to the joint standing committee of the General Assembly having
cognizance of matters relating to commerce, in accordance with the
provisions of section 11-4a.
Sec. 20. Section 22a -200g of the 2026 supplement to the general
statutes is repealed and the following is substituted in lieu thereof
(Effective from passage):
(a) There is established a Connecticut Clean Economy Council that
shall advise on economic development strategies and policies that
strengthen the state's climate mitigation, clean energy, resilience and
sustainability programs, in particular for vulnerabl e communities, as
defined in section 16-243y.
(b) Such council shall meet not less than quarterly, at dates, times and
locations to be established by the cochairpersons of such council. The
council shall: (1) Identify opportunities to leverage state and federal
funding to scale economic development and wo rkforce opportunities
Substitute Senate Bill No. 307

Public Act No. 26-122 41 of 59

associated with climate mitigation, clean energy, resilience and
sustainability investments, (2) serve as a central coordinating body for
climate mitigation, clean energy, resilience and sustainability workforce
efforts and opportunities state -wide for a t echnically advanced,
enduring labor force, (3) develop economic development and workforce
strategies that support investment and growth of climate mitigation,
clean energy, resilience and sustainability job growth, and (4) advise the
Governor on any state-wide economic or workforce action plan in clean
energy, climate and sustainability.
(c) Such council shall develop a plan to facilitate the transition of
workers from fossil -fuel-based employment to clean economy jobs
consistent with the provisions of subsection (b) of this section. Such plan
shall be submitted not later than [July] October 1, 2026, to the joint
standing committees of the General Assembly having cognizance of
matters relating to the environment, energy and technology and
commerce, in accordance with the provisions of section 11-4a.
(d) Such council shall be composed of the following members: (1) The
Commissioner of Economic and Community Development, or the
commissioner's designee, who shall also serve as a cochairperson of the
council, (2) the Chief Workforce Officer, or said officer's designee, who
shall also serve as a cochairperson of the council, (3) the Commissioner
of Energy and Environmental Protection, or the commissioner's
designee, who shall also serve as cochairperson of the council, (4) the
Commissioner of Transportation, or the commissioner's designee, (5)
the Secretary of the Office of Policy and Management, or the secretary's
designee, (6) a representative from the office of the Governor, (7) the
chief executive officer of the Connecticut Green Bank, or the chief
executive officer's designee, (8) the chief executive officer of Connecticut
Innovations, Incorporated, or the chief executive officer's designee, (9)
the Labor Commissioner, or the commissioner's designee, (10) the
Commissioner of Consumer Protection, or the commissioner's designee,
Substitute Senate Bill No. 307

Public Act No. 26-122 42 of 59

(11) one member appointed by the Chief Workforce Officer who shall
be a representative of a regional workforce development board, (12) one
member appointed by the speaker of the House of Representatives, (13)
one member appointed by the president pro tempore of the Senate, (14)
one member appointed by the majority leader of the Senate, (15) one
member appointed by the majority leader of the House of
Representatives, (16) one member appointed by the minority leader of
the Senate, (17) one member appointed by the minority leader of the
House of Representatives, and (18) any other member so designated by
the cochairpersons. Members appointed pursuant to subdivisions (12)
to (17), inclusive, of this subsection shall have one or more of the
following backgrounds or qualifications: (A) Be a member of the
Connecticut Technical Education Career System, (B) be a representative
of a nonprofit organization that focuses on helping people overcome
barriers to workforce participation, (C) have expertise in hiring and
training employees in the trades related to green technologies, (D) be a
representative of a higher education institution and have expertise in
technical education, or (E) be a member of the Connecticut State
Building Trades Council. Any member appointed pursua nt to
subdivision (18) of this subsection shall serve at the pleasure of the
cochairpersons of the council.
(e) A majority of the members of the council shall constitute a
quorum.
(f) The cochairpersons shall, in addition to their general duties, have
the following specific responsibilities: The cochairperson from the
Department of Economic and Community Development shall lead the
activities specified in subdivision (1) of subsection (b) of this section and
the cochairperson from the Office of Workforce Strategy shall lead the
activities specified in subdivision (2) of subsection (b) of this section.
(g) Not later than February 15, 2026, and [biannually] biennially
thereafter, the council shall report on its work, findings and
Substitute Senate Bill No. 307

Public Act No. 26-122 43 of 59

recommendations to the Governor, the Office of Policy and
Management, and the joint standing committees of the General
Assembly having cognizance of matters relating to the environment,
energy and technology, higher education and commerce, in accordance
with the provisions of section 11-4a.
Sec. 21. Section 32 -357 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
Connecticut Innovations, Incorporated, in consultation with the
Department of Economic and Community Development and the
Connecticut Center for Advanced Technology, Inc., shall develop and
implement a plan to increase the total of funds provided to state
businesses pursuant to the small business innovation research program,
as defined in section 32-344, and the small business technology transfer
program, as defined in section 32 -344. [Not later than January 1, 2022,
and annually thereafter, the Commissioner of Economic and
Community Development shall report, in accordance with the
provisions of section 11 -4a, to the joint standing committees of the
General Assembly having cognizance of matters relating to commerce
and veterans' and military affairs, regardin g such plan and its
implementation.]
Sec. 22. Subsection (a) of section 32 -39m of the general statutes is
repealed and the following is substituted in lieu thereof ( Effective from
passage):
(a) Through the innovation place program described in section 32 -
39k, the commissioner may:
(1) Review and evaluate applications for innovation place
designation submitted by entities pursuant to section 32-39l.
(2) (A) Approve applications for innovation place designation and
designate such approved applications as an innovation place. Such
Substitute Senate Bill No. 307

Public Act No. 26-122 44 of 59

approval may include modifications to an application, agreed to by the
applicant, as a condition for approval thereof. If no such application
meets the purposes set forth in section 32 -39k or the criteria set forth in
this subdivision, the commissioner shall not approve any application for
innovation place designation. Preference shall be given to applicants
having (i) diverse partners, including, but not limited to, anchor
institutions, (ii) partnerships with entities located within the proposed
innovation place, and (iii) substantial private funding for expenses
associated with the development of the proposed innovation place in
relation to the amount of grant moneys requested.
(B) Award grants -in-aid to innovation entities, within available
funds, for the allowable grant expenses set forth in an agreement
described in this subparagraph. Prior to awarding any such grant -in-
aid, the commissioner shall (i) enter into an agreement with any such
innovation entity concerning allowable grant expenses and the
submission of an annual financial audit of grant expenditures to the
commissioner until all grant moneys have been expended by the
innovation entity, provided any such audit shall b e prepared by an
independent auditor; (ii) confirm that a significant portion of the
underlying zoning of the proposed innovation place allows for mixed -
use development, including, but not limited to, housing, office and
retail; and (iii) confirm that no p ortion of a grant -in-aid awarded to an
innovation entity be given to an entity that is not part of the master plan
for the innovation place. If the commissioner finds that any such grant-
in-aid awarded is being used for purposes that are not in conformity
with the expenses allowed pursuant to this section, the commissioner
may require repayment of such grant-in-aid.
(C) No application may be designated as an innovation place by the
commissioner unless such application (i) is consistent with the purposes
set forth in section 32-39k, (ii) is for a proposed innovation place where
a significant portion of such proposed innova tion place is located in an
Substitute Senate Bill No. 307

Public Act No. 26-122 45 of 59

existing or proposed mixed -use zoning district, (iii) was prepared in
collaboration with the local chamber of commerce or other industry
association and the municipal economic development department, or
similar municipal authority, of the municipality in w hich the proposed
innovation place is located, and (iv) is approved by majority vote of the
legislative body of the municipality in which the proposed innovation
place is to be located.
(D) In determining whether to approve an application for innovation
place designation, the commissioner shall consider, but such
consideration shall not be limited to: (i) Whether the entities partnering
together to implement and administer the proposed master plan are of
the quality to, and have demonstrated the commitment to, implement
and administer the master plan in a manner sufficient to achieve the
purposes set forth in section 32 -39k; (ii) whether the geography of the
proposed innovation place is su fficiently compact to achieve the
purposes set forth in section 32 -39k; (iii) whether the master plan is
sufficient to achieve the purposes set forth in section 32-39k and whether
such plan includes (I) sufficient measures to ensure walkability of the
geographic areas within the municipality that make up the proposed
innovation place; (II) sufficient measures to enhance regular
interpersonal interactions among residents, workers and visitors of the
proposed innovation place; (III) adequate and accessible pu blic
transportation; and (IV) existing or proposed restaurants, affordable
housing options, retail spaces and public spaces, indoor or outdoor, that
provide adequate opportunity for interpersonal interaction; (iv) the
extent to which the master plan levera ges private investment; (v) self -
sustainability of the innovation place after moneys granted by the
commissioner are fully expended; (vi) whether the underlying zoning
of the proposed innovation place provides for, or will be amended to
provide for, reduced minimum floor area for residential dwelling units;
and (vii) any other criteria the commissioner determines is relevant for
evaluating whether the proposed innovation place, if granted
Substitute Senate Bill No. 307

Public Act No. 26-122 46 of 59

innovation place designation, will achieve the purposes set forth in
section 32-39k.
[(E) The commissioner shall report, in accordance with the provisions
of section 11 -4a, to the joint standing committees of the General
Assembly having cognizance of matters relating to commerce and
finance, revenue and bonding on or before September thirtieth annually,
regarding the grants -in-aid distributed pursuant to this section and
concerning the operation and effectiveness of the innovation place
program.]
(3) Publicize and post on the department's Internet web site the
deadline for applications for innovation place designation pursuant to
section 32-39l.
Sec. 23. Subsection (e) of section 32 -222 of the general statutes is
repealed and the following is substituted in lieu thereof ( Effective from
passage):
(e) "Economic cluster" means [an economic cluster, as defined in
section 32 -4e] a grouping of industries linked together through
customer, supplier or other relationships , recognized by the
commissioner;
Sec. 24. Section 32 -4m of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
(a) As used in this section:
(1) "Accumulated credits" means the amount of credits allowed, in
accordance with the provisions of section 12 -217n, that have not been
taken through the last income year completed prior to the date of an
application submitted as provided in subsection (b) of this section. The
amount of such accumulated credits shall be subject to confirmation, in
accordance with the provisions of title 12, by the Commissioner of
Substitute Senate Bill No. 307

Public Act No. 26-122 47 of 59

Revenue Services in consultation with the commissioner.
(2) "Base level" means the level identified in the reinvestment contract
entered into pursuant to subsection (c) of this section, for each factor
listed in subparagraph (A) of subdivision (6) of subsection (c) of this
section, for the most recently completed c alendar year prior to the
designation as a state-certified industrial reinvestment project.
(3) "Commissioner" means the Commissioner of Economic and
Community Development.
(4) "Eligible expenditures" means those expenditures made or
incurred in this state by an eligible taxpayer in furtherance of a state -
certified industrial reinvestment project, including, but not limited to,
(A) expenditures with respect to buildings, improvem ents, property,
plants and equipment, and expenses directly related to such
expenditures, such as design work, professional fees, surveys and site
preparation, remediation and clean -up, demolition, moving and
renovation expenses, (B) expenditures with respect to personal
property, (C) research and development expenses, as defined in section
12-217n, and (D) the hiring and training of employees.
(5) "Eligible taxpayer" means a taxpayer, or a group of taxpayers
filing a combined return under section 12 -223a, that, at the time
application is made under subsection (b) of this section, (A) is primarily
engaged in the industrial sector, (B) employs at leas t fifteen thousand
people in the state, (C) has incurred at least two hundred million dollars
per year in research and development expenses, as defined in section
12-217n, in the state for the five full income years immediately preceding
the date of su ch application, and (D) has at least four hundred million
dollars of accumulated credits.
(6) "Exchange year" means the period beginning on the date set forth
in the reinvestment contract and ending on June 30, 2015, and each
Substitute Senate Bill No. 307

Public Act No. 26-122 48 of 59

successive period ending on June thirtieth thereafter.
(7) "Income year" means the income year of an eligible taxpayer as
determined under subsection (a) of section 12-213.
(8) "Industrial reinvestment project" means one or more projects in
this state that, if certified by the commissioner as provided in subsection
(b) of this section, will entail aggregate eligible expenditures in the state
of not less than one hundred million d ollars over a period of not more
than five exchange years by an eligible taxpayer in furtherance of the
industrial reinvestment project. If an industrial reinvestment project is
comprised of more than one project, each such project shall be referred
to as a segment. Such segments shall be specifically set forth in the
reinvestment contract.
(9) "Industrial sector" means all activities that, in accordance with the
North American Industrial Classification System, United States Manual,
United States Office of Management and Budget, 2012 edition, are
included in sector 31, 32 or 33, including all ope rations in support of
such activities.
(10) "Payment year" means the twelve-month period beginning on
the date payments commence under the reinvestment contract and each
twelve-month period thereafter. The first payment year shall begin on
or after July 1, 2015.
(11) "Reinvestment contract" means a contract entered into between
the commissioner and an eligible taxpayer in accordance with
subsection (c) of this section.
(12) "State-certified industrial reinvestment project" means an
industrial reinvestment project certified by the commissioner as
provided in subsection (b) of this section.
(b) (1) Any eligible taxpayer that intends to undertake an industrial
Substitute Senate Bill No. 307

Public Act No. 26-122 49 of 59

reinvestment project may apply to the commissioner for certification of
such project as a state-certified industrial reinvestment project. In order
to receive such certification, an eligible taxpayer shall apply to the
commissioner, in a form acceptable to the commissioner and containing
such information as prescribed by the commissioner, including, but not
limited to, (A) a detailed plan outlining the industrial rei nvestment
project, (B) the term of such project, (C) the estimated costs of such
project, and (D) the amount of accumulated credits the eligible taxpayer
proposes it be allowed to exchange in connection with such project. The
commissioner may require the e ligible taxpayer to submit such
additional information as may be necessary to evaluate the application.
(2) All decisions of the commissioner with respect to applications
received under the provisions of subdivision (1) of this subsection shall
be at the commissioner's sole discretion. The provisions of this
subsection shall not be construed as authorizing suit against the state by
any taxpayer that is denied certification by the commissioner and shall
not be construed as a waiver of sovereign immunity.
(c) (1) Upon certification by the commissioner of an application as
provided in subsection (b) of this section, the commissioner may enter
into a reinvestment contract with an eligible taxpayer pursuant to which
the commissioner may, in consideration of the eligib le taxpayer's
agreement to make the eligible expenditures in connection with the
state-certified industrial reinvestment project, agree to exchange certain
of the eligible taxpayer's accumulated credits up to a specified amount.
Such reinvestment c ontract shall specify: (A) Each segment of a state -
certified industrial reinvestment project; (B) the length of time the state-
certified industrial reinvestment project will take to complete; (C) the
aggregate amount of eligible expenditures the eligible t axpayer agrees
to make; (D) the base levels, if applicable; (E) the amounts, as
determined in accordance with the provisions of subdivision (6) of this
subsection, that the eligible taxpayer is eligible to receive during the
Substitute Senate Bill No. 307

Public Act No. 26-122 50 of 59

term of such reinvestment contract with respect to such eligible
expenditures, and the terms and conditions the eligible taxpayer must
satisfy in order to receive such amounts, including, but not limited to,
information required to be submitted by the elig ible taxpayer and
provisions for the commissioner to access relevant records and to verify
their accuracy; (F) the terms and conditions of the repayment of any
such amounts paid to the eligible taxpayer in exchange for the
accumulated credits in the event of any failure on the part of the eligible
taxpayer to comply with the terms of the reinvestment contract; (G) the
manner and method for the eligible taxpayer to provide notice of any
disputed claim under the reinvestment contract; and (H) any other
terms and conditions the commissioner may require. Any eligible
taxpayer that enters into a reinvestment contract with the commissioner
under this subsection may, in the event of any disputed claims under
such reinvestment contract, bring an action against the s tate to the
superior court for the judicial district of Hartford for the purpose of
having such claim determined, provided notice of any such disputed
claim is first given to the commissioner in the manner and method
described in the reinvestment contract. No action shall be allowed
unless it is brought not later than two years after the date on which the
eligible taxpayer gave proper notice to the commissioner under such
reinvestment contract. All legal defenses under such reinvestment
contract, except sovereign immunity, are reserved to the state.
(2) The payment by the state of amounts directly attributable to the
exchange of accumulated credits in connection with a state -certified
industrial reinvestment project may be made in the form, timing and
manner determined by the commissioner, including as an offset or
refund of state taxes otherwise payable by the eligible taxpayer under
the provisions of chapters 208 and 219. To the extent that such payments
involve the offset or refund of state taxes, such payments shall be made
in consultation with the Commissioner of Revenue Services.
Substitute Senate Bill No. 307

Public Act No. 26-122 51 of 59

(3) The provisions of subsection (d) of section 12 -217n, sections 12 -
217aa and 12-217zz, subsections (c) and (e) of section 32-223 and section
32-462, as amended by this act, shall not apply to a reinvestment contract
to the extent such provisions are inconsistent with such reinvestment
contract.
(4) Subject to the provisions of subdivision (5) of this subsection, the
amount of accumulated credits that an eligible taxpayer is allowed to
exchange with respect to any state -certified industrial reinvestment
project shall not exceed the eligible expenditures made by such taxpayer
with respect to such project. No eligible taxpayer shall make any further
claims with respect to any accumulated credits exchanged in connection
with a state-certified industrial reinvestment project. The commissioner
shall notify the Commissioner of Revenue Services of all accumulated
credits, and the amounts thereof, exchanged in connection with such
project.
(5) The aggregate amount of all payments made by the state under
this section for the exchange of accumulated credits shall not exceed
four hundred million dollars, provided (A) the amount of all payments
made by the state during any of the first five payment years shall not
exceed twenty million dollars per year, and (B) the amount of all
payments made by the state during any of the sixth or subsequent
payment years shall not exceed the sum of thirty -three million three
hundred thirty-four thousand dollars per year.
(6) Subject to the provisions of subdivisions (4) and (5) of this
subsection, the amounts an eligible taxpayer is entitled to receive under
a reinvestment contract with respect to eligible expenditures made by
such taxpayer shall be determined in accordance with subparagraph (A)
or (B) of this subdivision.
(A) (i) If, in connection with a state -certified industrial reinvestment
project, or segment thereof, an eligible taxpayer may qualify to receive
Substitute Senate Bill No. 307

Public Act No. 26-122 52 of 59

more than two hundred million dollars upon compliance with the terms
of the reinvestment contract, the amount the eligible taxpayer is eligible
to receive with respect to such project or segment shall be determined
by multiplying the actual amount of eligible expenditures made in each
of the first five exchange years by the total of the four applicable
weighting factors as determined in accordance with subclauses (I) to
(IV), inclusive, of this clause.
(I) The weighting factor for the maintenance or increase of
employment levels of engineers located in this state shall be calculated
in accordance with the following table:
Employment Levels of Engineers Weighting Factors
(Individuals Employed)

Below 4,350 0%
4,350 7%
4,400 8%
4,450 9%
4,500 10%
4,550 11%
4,600 12%
4,650 13%
4,700 14%
4,750 15%
4,800 16%
4,850 17%
4,900 18%
4,950 19%
5,000 20%

The actual percentage for such factor shall be interpolated in
accordance with this table.
(II) The weighting factor for the maintenance or increase of overall
employment levels in this state shall be calculated in accordance with
the following table:
Substitute Senate Bill No. 307

Public Act No. 26-122 53 of 59

Overall Employment Levels Weighting Factors
(Individuals Employed)

Below 12,450 0%
12,450 10.5%
12,600 12%
12,750 13.5%
12,900 15%
13,050 16.5%
13,200 18%
13,350 19.5%
13,500 21%
13,650 22.5%
13,800 24%
13,950 25.5%
14,100 27%
14,250 28.5%
14,400 30%

The actual percentage for this factor shall be interpolated in
accordance with this table.
(III) The weighting factor for the maintenance or increase of payroll
levels in this state shall be calculated in accordance with the following
table:
Payroll Levels Weighting Factors

Below $1,370,000,000 0%
1,370,000,000 10.5%
1,385,000,000 12%
1,400,000,000 13.5%
1,415,000,000 15%
1,430,000,000 16.5%
1,445,000,000 18%
1,460,000,000 19.5%
1,475,000,000 21%
1,490,000,000 22.5%
Substitute Senate Bill No. 307

Public Act No. 26-122 54 of 59

1,505,000,000 24%
1,520,000,000 25.5%
1,535,000,000 27%
1,550,000,000 28.5%
1,565,000,000 30%

The actual percentage for this factor shall be interpolated in
accordance with this table.
(IV) The weighting factor for research and development expenses
and capital expenditures made in this state, exclusive of those eligible
expenditures made in accordance with a contract entered into with the
commissioner under the provisions of this subsection, shall be
calculated in accordance with the following table:
Investment Amount Weighting Factors
Below $680,000,000 0%
680,000,000 7%
690,000,000 8%
700,000,000 9%
710,000,000 10%
720,000,000 11%
730,000,000 12%
740,000,000 13%
750,000,000 14%
760,000,000 15%
770,000,000 16%
780,000,000 17%
790,000,000 18%
800,000,000 19%
810,000,000 20%

The actual percentage for this factor shall be interpolated in
accordance with this table.
(ii) The eligible taxpayer shall certify the base levels for the factors set
forth in subclauses (I) to (IV), inclusive, of this clause to the
Substitute Senate Bill No. 307

Public Act No. 26-122 55 of 59

commissioner not later than one hundred twenty days after entering
into a reinvestment contract with the commissioner. In the event any of
the base levels certified to the commissioner differ from those set forth
in the reinvestment contract, the commissio ner is authorized to adjust
the tables for the weighting factors consistent with subclauses (I) to (IV),
inclusive, of this clause.
(iii) The aggregate amount of all payments made by the state under
this subparagraph for the exchange of accumulated credits shall not
exceed three hundred seventy-five million dollars.
(B) If, in connection with a state -certified industrial reinvestment
project, or segment thereof, an eligible taxpayer may qualify to receive
fifty million dollars or less upon compliance with the terms of the
reinvestment contract, the amount the eligible tax payer is eligible to
receive as an exchange of accumulated credits with respect to such
project or segment shall be determined with reference to the
performance of the eligible taxpayer during the first five exchange years
and shall be calculated as fo llows: (i) To the extent that expenditures
made by the eligible taxpayer with respect to one or more research and
development components of such project or segment involve the
retention of one hundred or more employees and the investment of over
ten million dollars in research and development, the eligible taxpayer is
eligible to receive one million dollars with respect to each such
component; and (ii) to the extent that expenditures by the eligible
taxpayer with respect to one or more capital components of such project
or segment involve over one million dollars in capital expenditures, the
eligible taxpayer is eligible to receive forty per cent of such expenditures
with respect to each such component. The aggregate amount of all
payments made by the state under this subparagraph for the exchange
of accumulated credits shall not exceed fifty million dollars.
(d) Notwithstanding any provision of the general statutes, an eligible
taxpayer that enters into a reinvestment contract with the commissioner
Substitute Senate Bill No. 307

Public Act No. 26-122 56 of 59

under the provisions of this section and is authorized to exchange
accumulated credits in connection with a state -certified industrial
reinvestment project shall not be allowed any credit pursuant to section
12-217j or 12-217n during the exclusion period under such reinvestment
contract, or be eligible to exchange credits under the provisions of
section 12 -217ee during such exclusion period. For purposes of this
subsection, the exclusion period means those income years of the
eligible taxpayer specified by the commissioner in the reinvestment
contract as comprising the exclusion period. This subsection shall not
preclude an eligible taxpayer (1) from taking accumulated credits that
are not otherwise subject to exchange pursuant to such reinvestment
contract during such exclusion period as otherwise allowed by law , or
(2) from taking credits allowed under section 12 -217j during the
exclusion period as otherwise allowed by law. Except as provided
herein, this subsection shall not impact an eligible taxpayer's a bility to
claim those tax credits it has already been allowed or otherwise affect
such taxpayer's eligibility for credits under the provisions of the general
statutes.
(e) To provide incentives for the retention and creation of jobs and
business growth in the state, the commissioner shall analyze and, as
appropriate, seek additional legislative approval for programs
permitting taxpayers to exchange any accumulated credits in manners
not otherwise provided for under this section.
[(f) The commissioner shall include in the report required pursuant
to section 32-1m an annual report that shall include information on the
number of projects certified under this section, the number of
reinvestment contracts entered into in connection with such projects, the
status of the certified proje cts, the amount of accumulated credits that
have been exchanged in connection with such projects, and the specific
levels achieved by each eligible taxpayer under subparagraphs (A) and
(B) of subdivision (6) of subsection (c) of this section.]
Substitute Senate Bill No. 307

Public Act No. 26-122 57 of 59

[(g)] (f) On and after June 30, 2015, the commissioner shall not enter
into any reinvestment contracts under subsection (c) of this section.
Sec. 25. Section 32 -7h of the 2026 supplement to the general statutes
is repealed and the following is substituted in lieu thereof (Effective from
passage):
(a) There is established an account to be known as the ["small
business express assistance account"] "Connecticut small business boost
account", which shall be a separate, nonlapsing account. The account
shall contain any moneys required by law to be deposited in the account.
Repayment of principal and interest on loans shall be credited to such
fund and shall become part of the assets of the fun d. Moneys in the
account shall be expended by the Department of Economic and
Community Development for (1) the purposes of the Connecticut Small
Business [Express] Boost program established pursuant to section 32-7g,
as amended by this act, and (2) the purposes enumerated in sections 32-
39f and 32-39g. Except as provided in subsection (d) of section 32-7g, as
amended by this act , all moneys received for the purposes of the
Connecticut Small Business [Express] Boost program and payments of
principal and interest on any loans given under said program shall be
credited to the account.
(b) Except as provided in subsection (d) of section 32-7g, as amended
by this act , the Commissioner of Economic and Community
Development may provide for the payment of any administrative
expenses or other costs incurred by the department or its lender partners
in carrying out the purposes of (1) the Connecticut Small Business
[Express] Boost program, or (2) the purposes enumerated in, or any
programs established pursuant to, sections 32 -39f and 32 -39g, not to
exceed five per cent of funding provided for such programs or for such
enumerated purposes, from the account established pursuan t to
subsection (a) of this section, provided one per cent shall be dedicated
to develop capacity for capital construction projects for minority
Substitute Senate Bill No. 307

Public Act No. 26-122 58 of 59

business enterprises.
Sec. 26. Subdivision (4) of subsection (b) of section 4 -68cc of the 2026
supplement to the general statutes is repealed and the following is
substituted in lieu thereof (Effective from passage):
(4) The Neighborhood Security Fellowship Program may engage in
(A) the coordination and placement of Fellows in worksite assignments,
including (i) local, state and federal government agencies and
departments, (ii) state -funded public construction projects wit hin the
municipality selected, (iii) private businesses, particularly those
receiving assistance from the Connecticut Small Business [Express]
Boost program established pursuant to section 32 -7g, as amended by
this act, or the Subsidized Training and E mployment program
established pursuant to section 31 -3pp, and (iv) nonprofit community -
based organizations receiving a grant -in-aid from the state, and (B) the
coordination of training placements, including in adult education
courses, vocational training p rograms, higher education courses and
apprenticeship programs.
Sec. 27. (NEW) (Effective July 1, 2026) (a) As used in this section:
(1) "Institution of higher education" means a public institution of
higher education that participates in the Roberta B. Willis Scholarship
program, established pursuant to section 10a-173 of the general statutes;
(2) "Financial aid" means the sum of all scholarships, grants and
federal, state and institutional aid received by a student. "Financial aid"
does not include any federal, state or private student loans received by
a student;
(3) "Cost of attendance" has the same meaning as provided in 20 USC
1087ll, as amended from time to time;
(4) "Private scholarship" means a grant or scholarship awarded by
Substitute Senate Bill No. 307

Public Act No. 26-122 59 of 59

any nongovernmental entity to offset the educational costs of a student;
and
(5) "Unmet need" means the unpaid portion, if any, of a student's cost
of attendance at an institution of higher education after subtracting such
student's financial aid and student loans.
(b) No institution of higher education may reduce the amount of
financial aid awarded to any student who receives a federal Pell grant
or a grant under the Roberta B. Willis Scholarship program as a result
of such student receiving a private scholarship, provided an institution
of higher education may reduce the amount of financial aid (1) if a
student's total financial aid meets or exceeds such student's cost of
attendance, or (2) if such reduction is necessary to bring the total
financial aid awarded to a student athlete, as defined in section 10a -56
of the general statutes, in compliance with the individual or team
financial aid restrictions of an athletic association or conference,
including, but not limited to, the NCAA, as defined in section 10a -55k
of the general statutes. For such student whose total amount of financial
aid is less than such student's cost of attendance, an institution of higher
education shall apply the amount of any private scholarship received by
such student to first offset such s tudent's unmet need, and then to
reduce the amount of student loans included in such student's financial
aid package.
Sec. 28. Sections 32-4e and 32-4h of the general statutes are repealed.
(Effective from passage)