SB 307 — 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.

[(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.

Moneys 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 asagrant under thissectiontofundsuchcosts.Suchloansshall 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 Public Act No.

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307 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 shall submit a report to the Public Act No.

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307 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-termloans 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 Public Act No.

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307 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 andlabor.Suchreport shallinclude 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) thetotalnumber of jobs on thedate 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 participatinginsaidprograminbecomingself-sustainable.Thecontents 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 Public Act No.

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307 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 SmallBusiness [Express]Boost programbeself-fundedand 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 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 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 suchsmallbusiness.

Asusedinthissubsection,(A)"disabledveteran" meansa veteran,asdefinedin section27-103, who has adisability 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.

Public Act No.

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307 (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 determined 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 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 Public Act No.

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307 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;

(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 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.

Moneys 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 asagrant under thissectiontofundsuchcosts.Suchloansshall 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 Public Act No.

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307 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 Public Act No.

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307 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 shall 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-termloans 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 Public Act No.

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307 [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 andlabor.Suchreport shallinclude 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) thetotalnumber of jobs on thedate 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 participatinginsaidprograminbecomingself-sustainable.Thecontents 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 Public Act No.

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307 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 [, minority 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;

Public Act No.

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307 (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 [appointmentsto]membersofthe [task force shallbemade 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)[Thecommissioner shallschedulethefirst meetingoftheadvisory 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:

Public Act No.

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307 (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 special 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 Public Act No.

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307 financialassistanceforabiotechnologybusinessprojectduringanytwo- 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 theemployer,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 Public Act No.

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307 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' collective bargaining representative.

Sec.

6.

sSB307(b) /The FileCommissioner No.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.

561Such 1permit sSB307shall Filespecify No.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.

561No (b)liability Theshall Commissioneraccrue ofto Economicthe and Community Development may issue a state filmor permit, on a form designated by the commissioner, to any personagency seekingor toPublic conductAct filmNo. production activities on such state-owned property.

Such26-122 permit18 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 Insurance59 andSubstitute RiskSenate Management,Bill withNo. the state named as an additional insured.

No307 liability shall accrue to the state or any agency or 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.

(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, sSB307authorities /or Fileinstitutions, No.(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;

561(4) 2a sSB307single, Filecoordinated production activity description form, including an equipment checklist and personnel Public Act No.

56126-122 authorities19 orof institutions,59 (B)Substitute specificationsSenate forBill desiredNo. on-site production and production-related activities, site suitability and limitations, and (C) steps the applicant can take to ensure expeditious permit application;

(4)307 a single, coordinated production activity description form, including an equipment checklist and personnel roster;

2.7.

and sSB307(B) /The Filequalified data center will make, on or before the fifth Public Act No.

56126-122 320 sSB307of File59 Substitute Senate Bill No.

561307 (B) The qualified data center will make, on or before the fifth 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.

(D) Include a detailed description of the capital project that is the subjectPublic ofAct theNo. agreement;

sSB30726-122 /21 Fileof 59 Substitute Senate Bill No.

561307 4subject sSB307of Filethe No.agreement;

561 (E) Provide that the provisions of the agreement shall be applicable, withinthetime periodsuchagreement iseffective andfor theremaining 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;

The exemption under this subdivision shall be effective for a period of thirty years from the date the construction, rehabilitation, renovation or repair of a facility is completed, as determined by the commissioner.Public Act No.

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307 commissioner.

sSB307(5) /[There Fileis No.established an Office of Data Infrastructure Administration and Security within the Department of Economic and Community Development.

561 5 sSB307 File No.

561 (5) [There is established an Office of Data Infrastructure Administration and Security within the Department of Economic and Community Development.

3.8.

(b) (1) The commissioner shall [establish an office of the] designate a permitPublic ombudsmanAct 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 sSB307 / File No.

56126-122 623 sSB307of File59 Substitute Senate Bill No.

561307 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.

(A) The proposed wage and skill levels relative to those existing 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 investment, and (D) in the judgment of the commissioner, after consultation with the Departments of Energy and Environmental Protection, Transportation and Public HealthAct thatNo. there is consistency with the strategic economic development priorities of the state and the municipality, deem projects eligible for expedited permitting pursuant to this section.

(c)26-122 The24 Departments of Energy59 andSubstitute EnvironmentalSenate Protection,Bill 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 sSB307 / File No.

561307 7investment, sSB307and File(D) No.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 state and the municipality, deem projects eligible for expedited permitting pursuant to this section.

561(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.

(e) The permit ombudsman may solicit the assistance of volunteers fromPublic theAct privateNo. 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.

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307 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.

(2) sSB307identification /of Filethe No.individual or individuals within each respective agency who shall be responsible for processing the expedited permit application;

561 8 sSB307 File No.

561 identification of the individual or individuals within each respective agency who shall be responsible for processing the expedited permit application;

Each officer or employee of such office, department, board, commission or other agency of the state shall make reasonable effortsPublic toAct cooperateNo. with the permit ombudsman.

26-122 26 of 59 Substitute Senate Bill No.

307 efforts to cooperate with the permit ombudsman.

4.9.

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.

sSB307Sec. / File No.

56111. 9 sSB307 File No.

561 Sec.

5.

(a)Public [ThereAct isNo. established, within the] The Department of Economic and Community Development [, an Office of Brownfield Remediation and Development.

26-122 27 of 59 Substitute Senate Bill No.

307 (a) [There is established, within the] The Department of Economic and Community Development [, an Office of Brownfield Remediation and Development.

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,includinginitiatives, including program development and administration, community outreach, regional coordination and seeking federal funding opportunities.

sSB307Public /Act File No.

56126-122 1028 sSB307of File59 Substitute Senate Bill No.

561307 (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;

(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 and 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 officer of Connecticut Innovations, Incorporated shall enter into a memorandum ofPublic understandingAct concerningNo. each entity's responsibilities with respect to the [Office of Brownfield Remediation and Development.

The26-122 Office29 ofBrownfieldRemediationandDevelopment]Departmentof ofEconomic59 sSB307Substitute /Senate FileBill No.

561307 11of sSB307understanding Fileconcerning No.each entity's responsibilities with respect to the [Office of Brownfield Remediation and Development.

561The Office ofBrownfieldRemediationandDevelopment]Department ofEconomic and Community Development's brownfield and remediation activities.

6.12.

(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 isPublic subjectAct toNo. remediation under section 22a-133k and funded by the [Office of Brownfield Remediation and Development or the] Department of Economic and Community Development;

26-122 30 of 59 Substitute Senate Bill No.

307 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;

To the extent that sSB307any /conditions Fileare No.exacerbated, such recipient shall only be responsible for responding to contamination exacerbatedby its negligent or reckless activities.

561 12 sSB307 File No.

561 any conditions are exacerbated, such recipient shall only be responsible for responding to contamination exacerbatedby its negligent or reckless activities.

7.13.

SubsectionSection (e) of section 32-4r of the 2026 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(e)(a) NotThere lateris thanestablished Januarya 1,Youth 2024,Service [andCorps annuallygrant thereafter,]program theto Commissionerbe ofadministered Economicby and Community Development, in consultation with the CommissionerDepartment of ChildrenEconomic and Families,Community shallDevelopment report,for in accordance with the provisionspurpose of sectionproviding 11-4a,grants to themunicipalities joint standing committees of thepriority Generalschool Assemblydistricts, havingas cognizancedescribed ofin matterssection relating10-266p, to commerceestablish andlocal children regarding the Youth Service Corps grantprograms. program.

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)NotlaterthanOctober1,2022,theCommissionerofEconomicand 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 participating 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) award a subgrant of not more than ten Public Act No.

26-122 31 of 59 Substitute Senate Bill No.

307 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 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.

8.14.

(f)Public NotAct laterNo. 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.

26-122 32 of 59 Substitute Senate Bill No.

307 (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.

9.15.

sSB307Applications /shall Fileinclude: No.

561 13 sSB307 File No.

561 Applications shall include:

(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 research and development or manufacturing, processing or assembling technology–based products, andPublic (V)Act aNo. revenue impact assessment demonstrating that the applicant's business plan has a revenue neutral or positive impact on the state;

26-122 33 of 59 Substitute Senate Bill No.

307 and (V) a revenue impact assessment demonstrating that the applicant's business plan has a revenue neutral or positive impact on the state;

sSB307(B) /(i) FileFrom No.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.

561 14 sSB307 File No.

561 (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.

(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 (B)(i)Public ofAct thisNo. 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.

26-122 34 of 59 Substitute Senate Bill No.

307 (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.

10.16.

Such sSB307report /shall Fileinclude No.(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.

561 15 sSB307 File No.

561 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.

11.17.

(3)Public oneAct appointedNo. by the speaker of the House of Representatives;

26-122 35 of 59 Substitute Senate Bill No.

307 (3) one appointed by the speaker of the House of Representatives;

sSB307(b) /The Filechairperson No.shall call the first meeting of the advisory board not later than September 30, 2014.

561 16 sSB307 File No.

561 (b) The chairperson shall call the first meeting of the advisory board not later than September 30, 2014.

(d)Public AAct majorityNo. 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.

26-122 36 of 59 Substitute Senate Bill No.

307 (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.

If such vacancy is not filled within sixty calendar days, the chairperson of the advisory board shall temporarily appoint a person to sSB307fill /the Filevacancy No.until the appointing authority makes an appointment.

561 17 sSB307 File No.

561 fill the vacancy until the appointing authority makes an appointment.

12.18.

(n)Public NotAct laterNo. than [January 1, 2016] February 1, 2027, and annually thereafter, theadministrator shallprovideareportoftheactivitiesofthe Connecticut Manufacturing Innovation Fund to the Manufacturing Innovation Advisory Board for the advisory board's review and approval.

26-122 37 of 59 Substitute Senate Bill No.

307 (n) Not later than [January 1, 2016] February 1, 2027, and annually thereafter, theadministrator shallprovideareportoftheactivitiesofthe Connecticut Manufacturing Innovation Fund to the Manufacturing Innovation Advisory Board for the advisory board's review and approval.

13.19.

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 sSB307and /sports Filearena trade organization, (J) one of whom shall represent a charter bus trade organization, (K) two of whom shall represent casino Public Act No.

56126-122 1838 sSB307of File59 Substitute Senate Bill No.

561307 and sports arena trade organization, (J) one of whom shall represent a charter bus trade organization, (K) two of whom shall represent casino gaming facilities, and (L) one of whom shall represent the Connecticut Tourism Coalition, (5) fourteen members appointed as follows:

If such vacancy is not filled within sixty calendar days, the chairperson of the advisory board shall temporarily appoint a person to sSB307Public /Act File No.

56126-122 1939 sSB307of File59 Substitute Senate Bill No.

561307 fill the vacancy until the appointing authority makes an appointment.

14.20.

SubsectionSection (g) of section 22a-200g of the 2026 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(g)(a) NotThere lateris thanestablished Februarya 15,Connecticut 2026,Clean andEconomy [biannually]Council bienniallythat thereafter, the council shall reportadvise on itseconomic work,development findingsstrategies and recommendationspolicies tothat thestrengthen Governor, the Officestate's ofclimate Policymitigation, andclean Management,energy, resilience and thesustainability jointprograms, standingin committeesparticular offor thevulnerable Generalcommunities, Assemblyas havingdefined cognizance of matters relating to the environment, energy and technology, higher education and commerce, in accordance with the provisions of section 11-4a.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 workforce opportunities Public Act No.

26-122 40 of 59 Substitute Senate Bill No.

307 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 technically 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 theprovisionsofsubsection(b)ofthis section.Suchplan 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'sdesignee,(8)thechiefexecutive officer ofConnecticut 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 thecommissioner's designee, Public Act No.

26-122 41 of 59 Substitute Senate Bill No.

307 (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 pursuant 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 Public Act No.

26-122 42 of 59 Substitute Senate Bill No.

307 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.

15.21.

Connecticut Innovations, Incorporated, in consultation with the Department of Economic and Community Development and the sSB307Connecticut /Center Filefor No.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.

561[Not 20later sSB307than FileJanuary No.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, regarding such plan and its implementation.] Sec.

56122. 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, regarding such plan and its implementation.

Sec.

16.

Such approvalPublic mayAct includeNo. modifications to an application, agreed to by the applicant, as a condition for approval thereof.

26-122 43 of 59 Substitute Senate Bill No.

307 approval may include modifications to an application, agreed to by the applicant, as a condition for approval thereof.

(B) Award grants-in-aid to innovation entities, within available funds, for the allowable grant expenses set forth in an agreement sSB307described /in Filethis No.subparagraph.

561 21 sSB307 File No.

561 described in this subparagraph.

(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 innovation place is located in an existingPublic orAct proposedNo. 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 which 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.

26-122 44 of 59 Substitute Senate Bill No.

307 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 which 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.

(ii) whether the geography of the proposed innovation place is sufficiently compact to achieve the sSB307purposes /set Fileforth No.in section 32-39k;

561 22 sSB307 File No.

561 purposes set forth in section 32-39k;

and (vii) any other criteria the commissioner determines is relevant for evaluating whether the proposed innovation place, if granted innovationPublic placeAct designation,No. will achieve the purposes set forth in section 32-39k.

[(E)26-122 The45 commissioner shall report,in accordance with the provisions of section59 11-4a,Substitute toSenate theBill jointNo. standing committees of the General Assembly having cognizance of matters relating to commerce and finance,revenueandbondingonorbeforeSeptemberthirtiethannually, 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.

307 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,revenueandbondingonorbeforeSeptemberthirtieth 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.

17.23.

(e) "Economic cluster" means [an economic cluster, as defined in sSB307section /32-4e] Filea No.grouping of industries linked together through customer, supplier or other relationships, recognized by the commissioner;

561 23 sSB307 File No.

561 section 32-4e] a grouping of industries linked together through customer, supplier or other relationships, recognized by the commissioner;

18.24.

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 Public Act No.

26-122 46 of 59 Substitute Senate Bill No.

307 Revenue Services in consultation with the commissioner.

(2)"Base level"meansthelevelidentifiedinthereinvestment 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 calendar 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, improvements, 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 least 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,inthestateforthefivefullincomeyearsimmediatelypreceding the date of such 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 Public Act No.

26-122 47 of 59 Substitute Senate Bill No.

307 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 dollars 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 NorthAmericanIndustrialClassificationSystem,UnitedStatesManual, United States Office of Management and Budget, 2012 edition, are included in sector 31, 32 or 33, including all operations 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 Public Act No.

26-122 48 of 59 Substitute Senate Bill No.

307 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 reinvestment 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 eligible 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 withaneligibletaxpayer pursuant to which the commissioner may, in consideration of the eligible 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 contract 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 taxpayer 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 Public Act No.

26-122 49 of 59 Substitute Senate Bill No.

307 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 eligible 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 state 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 theextent that such payments involve the offset or refund of state taxes, such payments shall be made in consultation with the Commissioner of Revenue Services.

Public Act No.

26-122 50 of 59 Substitute Senate Bill No.

307 (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,asamendedbythisact,shallnotapplytoareinvestmentcontract 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 shallnot exceed theeligibleexpendituresmadeby suchtaxpayer 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 suchtaxpayer shallbe determinedinaccordance 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 Public Act No.

26-122 51 of 59 Substitute Senate Bill No.

307 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:

Public Act No.

26-122 52 of 59 Substitute Senate Bill No.

307 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% Public Act No.

26-122 53 of 59 Substitute Senate Bill No.

307 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 Public Act No.

26-122 54 of 59 Substitute Senate Bill No.

307 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 commissioner 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 taxpayer 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 follows:

(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 employeesand the investment ofover 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 Public Act No.

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307 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 ability 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 reinvestmentcontractsenteredintoinconnectionwithsuchprojects,the status of the certified projects, 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.] Public Act No.

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307 [(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 shallcontainanymoneysrequiredbylawtobedepositedintheaccount.

Repayment of principal and interest on loans shall be credited to such fund and shall become part of the assets of the fund.

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 programestablishedpursuant to section32-7g, 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 expensesorothercostsincurredbythedepartmentoritslenderpartners 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 pursuant to subsection (a) of this section, provided one per cent shall be dedicated to develop capacity for capital construction projects for minority Public Act No.

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307 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 within 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 Employment 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 programs, 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 Public Act No.

26-122 58 of 59 Substitute Senate Bill No.

307 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 educationshallapply theamount ofany private scholarshipreceived by such student to first offset such student's unmet need, and then to reduce the amount of student loans included in such student's financial aid package.

Sec.

28.

(Effective from passage) ThisGovernor's actAction: shall take effect as follows and shall amend the following sections:

SectionApproved 1June from2, passage2026 32-1uPublic Sec.Act No.

226-122 from59 passageof 32-286(c)59 Sec.

3 from passage 32-726 Sec.

4 from passage 32-1m(a)(11) Sec.

5 from passage 32-761 Sec.

6 from passage 32-764(a) Sec.

7 from passage 32-4r(e) Sec.

8 from passage 32-7aa(f) Sec.

9 from passage 38a-88a(c)(3) Sec.

10 from passage 32-9aaa(b) Sec.

11 from passage 32-7n Sec.