SB 112 — AN ACT CONCERNING FUNDING FOR A SPECIALTY CHEMICAL AND WATER TREATMENT MANUFACTURING FACILITY AND GLOBAL RESEARCH AND DEVELOPMENT LABORATORY FOR THE MARINE INDUSTRY.

Senate General Assembly CommitteeFile Bill No.

112610 February Session, 2022 LCOSenate Bill No.

3423112 ReferredSenate, toApril 25, 2022 The Committee on COMMERCEFinance, IntroducedRevenue by:and Bonding reported through SEN.

(CE)FONFARA ANof ACTthe CONCERNING1st FUNDINGDist., FORChairperson Aof SPECIALTYthe CHEMICALCommittee ANDon WATERthe TREATMENTpart MANUFACTURINGof FACILITYthe ANDSenate, GLOBALthat RESEARCHthe ANDbill DEVELOPMENTought LABORATORYto FORpass. THE MARINE INDUSTRY.

AN ACT CONCERNING FUNDING FOR A SPECIALTY CHEMICAL AND WATER TREATMENT MANUFACTURING FACILITY AND GLOBAL RESEARCH AND DEVELOPMENT LABORATORY FOR THE MARINE INDUSTRY.

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Economic and Community Development (1) for the purposes of sectionsSB112 32-220/ toFile 32-234, inclusive, including economic cluster-related LCO 3423 \\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00112-R01 of 5 SB.docx Substitute Bill No.

112610 programs1 andSB112 activities,File andNo. for the Connecticut job training finance demonstration program pursuant to sections 32-23uu and 32-23vv, provided (A) three million dollars shall be used by said department solely for the purposes of section 32-23uu, (B) not less than one million dollars shall be used for an educational technology grant to the deployment center program and the nonprofit business consortium deployment center approved pursuant to section 32-41l, (C) not less than two million dollars shall be used by said department for the establishment of a pilot program to make grants to businesses in designated areas of the state for construction, renovation or improvement of small manufacturing facilities, provided such grants are matched by the business, a municipality or another financing entity.

610 sections 32-220 to 32-234, inclusive, including economic cluster-related programs and activities, and for the Connecticut job training finance demonstration program pursuant to sections 32-23uu and 32-23vv, provided (A) three million dollars shall be used by said department solely for the purposes of section 32-23uu, (B) not less than one million dollars shall be used for an educational technology grant to the deployment center program and the nonprofit business consortium deployment center approved pursuant to section 32-41l, (C) not less than two million dollars shall be used by said department for the establishment of a pilot program to make grants to businesses in designated areas of the state for construction, renovation or improvement of small manufacturing facilities, provided such grants are matched by the business, a municipality or another financing entity.

Suchprojects shall not be subject to the provisions of sections 4a-60 and 4a-60a, (G) two million dollars shall be used by said department for the purpose of a grant to the Connecticut Center for Advanced Technology, Inc., for manufacturing initiatives, including aerospace and defense, and (H) four million dollars shall be used by said department for the purpose of a grant to companies adversely impacted by the construction at the Quinnipiac Bridge, where such grant may be used to offset the increase inSB112 costs/ ofFile commercial overland transportation of goods or materials LCO 3423 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00112 of 5 R03-SB.docx } Substitute Bill No.

112610 brought2 toSB112 theFile port of New Haven by ship or vessel, (2) for the purposes ofthesmall businessassistance programestablished pursuant to section 32-9yy, provided fifteen million dollars shall be deposited in the small business assistance account established pursuant to said section 32-9yy, (3) to deposit twenty million dollars in the small business express assistance account established pursuant to section 32-7h, (4) to deposit four million nine hundred thousand dollars per year in each of the fiscal years ending June 30, 2017, to June 30, 2019, inclusive, and June 30, 2021, andninemillionninehundredthousanddollarsinthe fiscalyearending June 30, 2020, in the CTNext Fund established pursuant to section 32- 39i, which shall be used by CTNext to provide grants-in-aid to designated innovation places, as defined in section 32-39j, planning grants-in-aid pursuant to section 32-39l, and grants-in-aid for projects that network innovation places pursuant to subsection (b) of section 32- 39m, provided not more than three million dollars be used for grants- in-aid for such projects, and further provided any portion of any such deposit that remains unexpended in a fiscal year subsequent to the date of such deposit may be used by CTNext for any purpose described in subsection (e) of section 32-39i, (5) to deposit two million dollars per year in each of the fiscal years ending June 30, 2019, to June 30, 2021, inclusive, in the CTNext Fund established pursuant to section 32-39i, which shall be used by CTNext for the purpose of providing higher education entrepreneurship grants-in-aid pursuant to section 32-39g, provided any portion of any such deposit that remains unexpended in a fiscal year subsequent to the date of such deposit may be used by CTNext for any purpose described in subsection (e) of section 32-39i, (6) for the purpose of funding the costs of the Technology Talent Advisory Committee established pursuant to section 32-7p, provided two million dollars per year in each of the fiscal years ending June 30, 2017, to June 30, 2021, inclusive, shall be used for such purpose, (7) to provide (A) a grant-in-aid to the Connecticut Supplier Connection in an amount equal to two hundred fifty thousand dollars in each of the fiscal years ending June 30, 2017, to June 30, 2021, inclusive, and (B) a grant-in-aid to the Connecticut Procurement Technical Assistance Program in an amount equal to three hundred thousand dollars in each of the fiscal years LCO 3423 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00112-3 of 5 R03-SB.docx } Substitute Bill No.

112610 endingin Junecosts 30,of 2017,commercial overland transportation of goods or materials brought to Junethe 30,port 2021,of inclusive,New (8)Haven by ship or vessel, (2) for the purposes ofthesmall businessassistance programestablished pursuant to section 32-9yy, provided fifteen million dollars shall be deposited in the small business assistance account established pursuant to said section 32-9yy, (3) to deposit twenty million dollars in the small business express assistance account established pursuant to section 32-7h, (4) to deposit four hundredmillion fiftynine hundred thousand dollars per year,year in each of the fiscal years ending June 30, 2017, to June 30, 2021,2019, inclusive, and June 30, 2021, andninemillionninehundredthousanddollarsinthe fiscalyearending June 30, 2020, in the CTNext Fund established pursuant to section 32-39i,32- 39i, which shall be used by CTNext to provide growth grants-in-aid pursuant to sectiondesignated 32-39g,innovation providedplaces, anyportionofanysuchdepositthatremainsunexpendedinafiscalyearas subsequentdefined toin thesection date32-39j, ofplanning suchgrants-in-aid depositpursuant mayto besection used32-39l, byand CTNextgrants-in-aid for anyprojects purposethat describednetwork ininnovation places pursuant to subsection (e)(b) of section 32-39i,32- (9)39m, toprovided transfernot fiftymore than three million dollars tobe theused Laborfor Departmentgrants- whichin-aid shallfor besuch usedprojects, byand saidfurther departmentprovided forany theportion purpose of fundingany workforcesuch pipelinedeposit programsthat selectedremains pursuantunexpended toin sectiona 31-11rr,fiscal provided,year notwithstandingsubsequent to the provisionsdate of sectionsuch 31-11rr,deposit (A)may notbe lessused thanby fiveCTNext millionfor dollarsany shallpurpose bedescribed providedin tosubsection the(e) workforceof developmentsection board32-39i, in(5) Bridgeportto servingdeposit thetwo southwestmillion region,dollars forper purposesyear ofin sucheach program,of and the boardfiscal shallyears distributeending suchJune money30, in2019, proportion to populationJune and30, need,2021, andinclusive, (B)in notthe lessCTNext thanFund fiveestablished millionpursuant dollarsto section 32-39i, which shall be providedused toby CTNext for the workforcepurpose developmentof boardproviding inhigher Hartfordeducation servingentrepreneurship thegrants-in-aid northpursuant centralto region,section for32-39g, purposesprovided any portion of any such program,deposit (10)that toremains transferunexpended twentyin milliona dollarsfiscal toyear Connecticutsubsequent Innovations,to Incorporated,the provideddate tenof millionsuch dollarsdeposit shallmay be used by ConnecticutCTNext Innovations,for Incorporatedany purpose described in subsection (e) of section 32-39i, (6) for the purpose of funding the proofcosts of conceptthe fundTechnology Talent Advisory Committee established pursuant to subsection (b) of section 32-39x32-7p, andprovided tentwo million dollars shallper beyear usedin byeach Connecticutof Innovations,the Incorporatedfiscal foryears theending purposeJune of30, the2017, ventureto capitalJune fund30, program2021, establishedinclusive, pursuantshall tobe sectionused 32-41oo,for andsuch (11)purpose, (7) to provide (A) a grant-in-aid to athe supplyConnecticut chainSupplier specialtyConnection chemicalin andan wateramount treatmentequal manufacturingto facilitytwo andhundred globalfifty researchthousand anddollars developmentin laboratoryeach forof the marinefiscal industryyears locatedending inJune the30, state,2017, into anJune amount30, equal2021, toinclusive, oneand million(B) dollarsa ingrant-in-aid to the fiscalConnecticut yearProcurement endingTechnical JuneAssistance 30,Program 2023,in pursuantan toamount sectionSB112 1/ ofFile thisNo. act.

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610 equal to three hundred thousand dollars in each of the fiscal years ending June 30, 2017, to June 30, 2021, inclusive, (8) to deposit four hundred fifty thousand dollars per year, in each of the fiscal years ending June 30, 2017, to June 30, 2021, inclusive, in the CTNext Fund established pursuant to section 32-39i, which shall be used by CTNext to provide growth grants-in-aid pursuant to section 32-39g, provided anyportionofanysuchdepositthatremainsunexpendedinafiscalyear subsequent to the date of such deposit may be used by CTNext for any purpose described in subsection (e) of section 32-39i, (9) to transfer fifty million dollars to the Labor Department which shall be used by said department for the purpose of funding workforce pipeline programs selected pursuant to section 31-11rr, provided, notwithstanding the provisions of section 31-11rr, (A) not less than five million dollars shall be provided to the workforce development board in Bridgeport serving the southwest region, for purposes of such program, and the board shall distribute such money in proportion to population and need, and (B) not less than five million dollars shall be provided to the workforce development board in Hartford serving the north central region, for purposes of such program, (10) to transfer twenty million dollars to Connecticut Innovations, Incorporated, provided ten million dollars shall be used by Connecticut Innovations, Incorporated for the purpose of the proof of concept fund established pursuant to subsection (b) of section 32-39x and ten million dollars shall be used by Connecticut Innovations, Incorporated for the purpose of the venture capital fund program established pursuant to section 32-41oo, and (11) to provide a grant-in-aid to a supply chain specialty chemical and water treatment manufacturing facility and global research and development laboratory for the marine industry located in the state, in an amount equal to one million dollars in the fiscal year ending June 30, 2023, pursuant to section 1 of this act.

LCOSB112 3423/ {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-001124File of 5 R03-SB.docx } Substitute Bill No.

112610 This4 actSB112 shallFile takeNo. effect as follows and shall amend the following sections:

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

2 July 1, 2022 32-235(b) CE Joint Favorable C/R FIN FIN Joint Favorable LCOSB112 3423/ R03-SB.docxFile }OUSERS\FORZANOF\WS\2022SB-00112-No. 5 of 5

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610 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:

Agency Affected Fund-Effect FY 23 $ FY 24 $ Treasurer, Debt Serv.

GF - Potential See Below See Below Cost Note:

GF=General Fund Municipal Impact:

None Explanation The bill requires the Department of Economic and Community Development to provide a $1 million grant to a laboratory for marine industry within the state and makes changes to the Economic Development and Manufacturing Assistance Act (MAA) to allow the program to be used for the same, which could result in increased or more rapid use of bond funds authorized for the program.

The program is funded through General Obligation (GO) bond funds.

Future General Fund debt service costs may be incurred sooner under the bill to the degree that it causes authorized GO bond funds to be expended or to be expended more rapidly than they otherwise would have been.

As of March 1, 2022, the unallocated bond balance available under the school construction authorization is approximately $58.8 million.

The bill does not change GO bond authorizations relevant to the program.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the terms of any bonds issued.

SB112 / File No.

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610 OLR Bill Analysis SB 112 AN ACT CONCERNING FUNDING FOR A SPECIALTY CHEMICAL AND WATER TREATMENT MANUFACTURING FACILITY AND GLOBAL RESEARCH AND DEVELOPMENT LABORATORY FOR THE MARINE INDUSTRY.

SUMMARY This bill requires the Department of Economic and Community Development (DECD) to provide a $1 million grant in FY 23 to a supply chain specialty chemical and water treatment manufacturing facility and global research and development laboratory for the marine industry located in the state.

It requires DECD to use $1 million in existing Manufacturing Assistance Act bond funds for this purpose.

EFFECTIVE DATE:

July 1, 2022 COMMITTEE ACTION Commerce Committee Joint Favorable Change of Reference - FIN Yea 15 Nay 7 (03/22/2022) Finance, Revenue and Bonding Committee Joint Favorable Yea 51 Nay 0 (04/06/2022) SB112 / File No.

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