HB 5244 — AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT'S RECOMMENDATIONS REGARDING THE AGENCY FINANCIAL ASSISTANCE CAP AND EMPLOYMENT PROMISSORY NOTES.

House of Representatives General Assembly RaisedFile Bill No.

5244315 February Session, 2026 LCOSubstitute House Bill No.

16725244 ReferredHouse toof Representatives, April 1, 2026 The Committee on COMMERCECommerce Introducedreported by:through REP.

(CE)MESKERS ANof ACTthe CONCERNING150th THEDist., DEPARTMENTChairperson OFof ECONOMICthe ANDCommittee COMMUNITYon DEVELOPMENT'Sthe RECOMMENDATIONSpart REGARDINGof THEthe AGENCYHouse, FINANCIALthat ASSISTANCEthe CAPsubstitute ANDbill EMPLOYMENTought PROMISSORYto NOTES.pass.

AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT'S RECOMMENDATIONS REGARDING THE AGENCY FINANCIAL ASSISTANCE CAP AND EMPLOYMENT PROMISSORY NOTES.

(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 whichsHB5244 are/ securedFile by a special capital reserve fund payable from LCO No.

1672315 1 ofsHB5244 4File RaisedNo. Bill No.5244 amounts appropriated or deemed appropriated from the General Fund.

315 which are secured by a special capital reserve fund payable from amounts appropriated or deemed appropriated from the General Fund.

LCOsHB5244 / File No.

1672315 2 ofsHB5244 4File RaisedNo. Bill No.5244 (1) "Employer" means any person engaged in business who has twenty-six or more employees, including the state and any political subdivision thereof.

315 (1) "Employer" means any person engaged in business who has twenty-six or more employees, including the state and any political subdivision thereof.

"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-1BvisaH-1B applicationfeepaidbyvisa anemployeronbehalfofanemployee.and paid by an employer on behalf of an employee.

LCOsHB5244 / File No.

1672315 3 ofsHB5244 4File Raised Bill No.

5244315 This act shall take effect as follows and shall amend the following sections:

2 from passage 31-51r StatementCE ofJoint Purpose:Favorable Subst.

TosHB5244 (1)/ increaseFile theNo. financial assistance cap provided in section 32-462, and (2) create an exception to the employment promissory note prohibition in section 31-51r.

[Proposed315 deletions4 aresHB5244 enclosedFile inNo. brackets.

Proposed315 additionsThe following Fiscal Impact Statement and Bill Analysis are indicatedprepared byfor underline,the exceptbenefit thatof whenthe members of the entireGeneral textAssembly, solely for purposes of ainformation, billsummarization orand resolutionexplanation orand ado sectionnot ofrepresent athe billintent orof resolutionthe isGeneral new,Assembly itor iseither notchamber underlined.]thereof LCOfor No.any purpose.

1672In 4general, fiscal impacts are based upon a variety of 4informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 27 $ FY 28 $ Department of Economic & GF - Potential See Below See Below Community Development Cost Connecticut Innovations, Inc CI Funds - See Below See Below Potential Cost Note:

GF=General Fund;

Various=Various Municipal Impact:

None Explanation The bill increases the limits for the amount of economic development assistance that the Department of Economic and Community Development (DECD) and Connecticut Innovations, Inc.

(CI) may provide without affirmative legislative approval.

Assuming that any eligible project(s) would receive legislative approval without the proposed change in the bill there is no fiscal impact.

However, if either DECD or CI provides assistance to an eligible project(s) that the legislature would otherwise disapprove, there would be a cost to the agency.

1 Section 2 has no fiscal impact by creating an exception to Connecticut’s promissory note ban related to the federal H-1B visa fees.

This provision does not require any administrative action from the state 1CI is a quasi-public state agency that is financed by loan repayments, investment returns, and fees so any costs would not be realized by the state's funds.

sHB5244 / File No.

315 5 sHB5244 File No.

315 and therefore has no fiscal impact.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

The timing and cost in any given fiscal year is dependent on the date and size of eligible investments made under the program.

sHB5244 / File No.

315 6 sHB5244 File No.

315 OLR Bill Analysis sHB 5244 AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT'S RECOMMENDATIONS REGARDING THE AGENCY FINANCIAL ASSISTANCE CAP AND EMPLOYMENT PROMISSORY NOTES.

SUMMARY This bill increases, from $10 to $25 million, the cap on financial assistance that the Department of Economic and Community Development or Connecticut Innovations Inc.