SB 1179 — AN ACT ESTABLISHING THE CONNECTICUT COMMUNITY MAKERSPACE INITIATIVE PROGRAM.

Substitute Senate GeneralBill Assembly File No.

5331179 JanuaryPublic Session,Act 2025 Substitute Senate Bill No.

117925-149 Senate,AN AprilACT 7,ESTABLISHING 2025THE TheCONNECTICUT CommitteeCOMMUNITY onMAKERSPACE CommerceINITIATIVE reportedPROGRAM. through SEN.

HARTLEY of the 15th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT ESTABLISHING THE CONNECTICUT COMMUNITY MAKERSPACE INITIATIVE PROGRAM.

(b)Not laterthanJanuary 1,2026,theCommissioner ofEconomicand Community Development shall establish and administer a pilot sSB1179program /to Fileprovide No.financial assistance to eligible entities for the establishment or expansion of makerspaces in the state that may serve as models for self-sustaining makerspaces.

533Such 1financial sSB1179assistance Fileshallbeused for thecostsofsuchestablishment orexpansion,including, but not limited to, planning activities, operational costs and capital Substitute Senate Bill No.

5331179 programexpenditures,butshallnotbeusedforthepersonnelcostsofanyeligible toentity. provide financial assistance to eligible entities for the establishment or expansion of makerspaces in the state.

(1) A description of the makerspace the applicant is seeking to establish or expand;expand and that may serve as a model for self-sustaining makerspaces;

Sec.Public Act No.

25-149 2 of 6 Substitute Senate Bill No.

1179 Sec.

(NEW)Subsection (Effective(b) Julyof 1,section 2025)32-235 Notwithstandingof the provisionsgeneral ofstatutes sectionis 32-7orepealed ofand the generalfollowing statutes,is thesubstituted Manufacturingin Innovationlieu sSB1179thereof /(Effective FileJuly No.1, 2025):

533(b) 2The sSB1179proceeds Fileof No.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 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.

533The AdvisoryCommissioner Boardof Economic and Community Development shall makedesignate available,areas toof the Commissionerstate where manufacturing is a substantial part of Economicthe local economy and Communityshall Development,make grants under such pilot program which are likely to produce a significant economic development benefit for the designated area, (D) five million dollars may be used by said department for the manufacturing competitiveness grants program, (E) one million dollars fromshall be used by said department for the purpose of a grant to the Connecticut ManufacturingCenter Innovationfor FundAdvanced establishedTechnology, pursuantfor tothe sectionpurposes 32-7oof subdivision (5) of thesubsection general(a) statutes,of section 32-7f, (F) fifty million dollars shall be used by said department for the purpose of providinggrants financialto assistancethe inUnited accordanceStates withDepartment sectionof 1the Navy, the United States Department of thisDefense act.or eligible applicants for projects related to the enhancement of infrastructure for long-term, on-going naval operations Public Act No.

This25-149 act3 shallof take6 effectSubstitute asSenate followsBill andNo. shall amend the following sections:

Section1179 1at Julythe 1,United 2025States NewNaval sectionSubmarine Sec.Base-New London, located in Groton,whichwillincrease themilitaryvalue ofsaidbase.

2Suchprojects Julyshall 1,not 2025be 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 in costs of commercial overland transportation of goods or materials brought to the port of New Haven by ship or vessel, and (I) one million dollars shall be used by said department for the purpose of the program established pursuant to section CE1 Jointof Favorablethis Subst.act, provided the department may use up to ten per cent of such amount for the costs of administering such program, (2) for the purposes of the small business assistance program established 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, and nine million nine hundred thousand dollars in the fiscal year ending June 30, 2020, in the CTNext Fund established pursuant to section 32-39i, which shall be used by the Department of Economic and Community Development to provide grants-in-aid to designated innovation places, as defined in section 32-39f, 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 the Department of Economic and Community Development Public Act No.

sSB117925-149 /4 Fileof 6 Substitute Senate Bill No.

5331179 3for sSB1179any Filepurpose described in subsection (e) of section 32-39i, (5) to deposit two million dollars per year in each of the fiscal years ending June30, 2019, to June30, 2021,inclusive, intheCTNextFundestablished pursuant to section 32-39i, which shall be used by the Department of Economic and Community Development for the purpose of providing higher education entrepreneurship grants-in-aid pursuant to section 32- 39g, providedany portionofany suchdeposit that remainsunexpended in a fiscal year subsequent to the date of such deposit may be used by the Department of Economic and Community Development 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 not more than ten million dollars may be used on or after July 1, 2023, 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 ending June 30, 2017, to June 30, 2021, inclusive, (8) to depositfourhundredfiftythousanddollarsperyear,ineachofthefiscal 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 the Department of Economic and Community Development to provide growth grants-in-aid pursuant to section 32-39g, provided any portion ofany suchdeposit that remainsunexpendedinafiscalyear subsequent to the date of such deposit may be used by the Department of Economic and Community Development 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 Public Act No.

53325-149 The5 followingof Fiscal6 ImpactSubstitute StatementSenate and Bill AnalysisNo. 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.

In1179 general,purposes fiscalof impactssuch areprogram, basedand uponthe 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 Hartfordservingthenorthcentralregion,forpurposesofsuchprogram, (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, (11) to provide a varietygrant to The University of informationalConnecticut sources,of includingeight million dollars for the analyst’sestablishment, professionaldevelopment knowledge.and operation of a center for sustainable aviation pursuant to subsection (a) of section 10a-110o, and (12) for up to twenty million dollars in investments in federally designated opportunity zones through an impact investment firm including, subject to the approval of the Governor, funding from the Economic Assistance Revolving Fund, established pursuant to section 32-231.

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

OFAApproved FiscalJuly Note1, State2025 Impact:Public Act No.

Agency25-149 Affected6 Fund-Effect FY 26 $ FY 27 $ Department of Economic6 & GF - Cost 190,000 190,000 Community Development State Comptroller - Fringe GF - Cost 77,349 77,349 Benefits1 Treasurer, Debt Serv.

GF - Potential See Below See Below Cost Note:

GF=General Fund Municipal Impact:

None Explanation The bill results in an annual cost of $267,349 to the state by requiring the Department of Economic and Community Development (DECD) to establish and administer a pilot program to provide financial assistance associated with "makerspaces." The bill also results in a potential cost associated with accelerated debt service by requiring $1 million to be made available from the Connecticut Manufacturing Innovation Fund (MIF), a state bond funded program, towards this pilot program.

Administrative Costs DECD will require two full-time positions at an annual cost of $267,349 ($190,000 for salary and $77,349 for fringe benefits) to administer the program.

The duties of the staff include developing an application process, marketing the program, seeking out other funding The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 40.71% of payroll in FY 26.

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533 sources, and reporting on the effectiveness of the program.

Program Funding The bill requires $1 million to be made available from MIF, which is supported by General Obligation (GO) bond funds, towards the pilot program.

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 more rapidly than they otherwise would have been.

As of April 1, 2025, there is no unallocated balance available towards MIF.

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

SB 1247, the Governor's FY 26 and FY 27 bond authorization bill, authorizes $20 million in FY 26 and $25 million in FY 27 towards MIF.

The bill also allows DECD to explore other means of funding such program, including, but not limited to, public-private partnerships, grant programs and federal funds or state funds.