HB 5496 — AN ACT CONCERNING THE CAPITAL REGION DEVELOPMENT AUTHORITY, PRIVATE INVESTMENT IN CERTAIN PROJECTS AND THE FINANCIAL INTERESTS OF MEMBERS OF THE BOARD.

House of Representatives General Assembly SubstituteFile Bill No.

5496505 February Session, 2022 ANSubstitute ACTHouse CONCERNINGBill THENo. CAPITAL REGION DEVELOPMENT AUTHORITY, PRIVATE INVESTMENT IN CERTAIN PROJECTS AND THE FINANCIAL INTERESTS OF MEMBERS OF THE BOARD.

5496 House of Representatives, April 14, 2022 The Committee on Government Administration and Elections reported through REP.

FOX of the 148th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING THE CAPITAL REGION DEVELOPMENT AUTHORITY, PRIVATE INVESTMENT IN CERTAIN PROJECTS AND THE FINANCIAL INTERESTS OF MEMBERS OF THE BOARD.

(2) Notwithstanding any provision of the general statutes, a corporation or other business entity may make a private investment in asHB5496 project/ asFile describedNo. in subsection (h) of this section despite a board member of the authority being an officer, director or shareholder of any such corporation or business entity, provided such board member recuses himself or herself from any consideration or action of the board concerning such project.

505 1 sHB5496 File No.

505 a project as described in subsection (h) of this section despite a board member of the authority being an officer, director or shareholder of any such corporation or business entity, provided such board member recuses himself or herself from any consideration or action of the board concerning such project.

Section 32-601 of the general statutes is amended by adding LCOsubsection \\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05496-R011(h) ofas 2follows HB.docx(Effective Substitutefrom Billpassage): No.

5496 subsection (h) as follows (Effective from passage):

-LCO LCOsHB5496 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05496-/ 2File ofNo. 2 R01-HB.docx }

505 2 sHB5496 File No.

505 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational 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:

None Municipal Impact:

None Explanation The bill has no fiscal impact to the state by clarifying that the Capital Region Development Authority (CRDA) may solicit private investment funds from businesses to finance projects in conjunction with CRDA with certain terms and requirements.

Under current practice, CRDA seeks out opportunities to leverage private investment for appliable projects.

The Out Years State Impact:

None Municipal Impact:

None sHB5496 / File No.

505 3 sHB5496 File No.

505 OLR Bill Analysis sHB 5496 AN ACT CONCERNING THE CAPITAL REGION DEVELOPMENT AUTHORITY, PRIVATE INVESTMENT IN CERTAIN PROJECTS AND THE FINANCIAL INTERESTS OF MEMBERS OF THE BOARD.

SUMMARY This bill authorizes the Capital Region Development Authority (CRDA) to solicit private investment funds from businesses to finance projects in conjunction with CRDA.

It allows CRDA to solicit these funds for any capital city project or other project it undertakes in the capital region (i.e., Hartford and its contiguous towns).

The bill requires that the private investments be made on equivalent or substantially similar terms and conditions as the investments CRDA makes for the project, as set by CRDA’s board of directors, but allows CRDA to give these private investments priority.

The bill allows businesses to make these private investments even if an officer, director, or shareholder of the business is a CRDA board member, so long as the member recuses himself or herself from the board’s consideration or action on the project.

EFFECTIVE DATE:

Upon passage BACKGROUND Capital City Projects By law, “capital city projects” include, among other things, the:

1.

construction or rehabilitation of up to 3,000 downtown housing units, 2.

development and redevelopment of buildings in Hartford, 3.

development of riverfront infrastructure and improvements in sHB5496 / File No.

505 4 sHB5496 File No.

505 Hartford and East Hartford, 4.

demolition or redevelopment of vacant buildings in Hartford and East Hartford, and 5.

addition of downtown parking.

Related Bill sSB 478, favorably reported by the Finance, Revenue and Bonding Committee, contains similar provisions.

COMMITTEE ACTION Government Administration and Elections Committee Joint Favorable Yea 13 Nay 6 (03/28/2022) sHB5496 / File No.