SB 1020 — AN ACT ESTABLISHING A REGIONAL ECONOMIC DEVELOPMENT PILOT PROGRAM.

Substitute Senate GeneralBill Assembly File No.

2221020 JanuaryPublic Session,Act 2021 Substitute Senate Bill No.

102021-77 Senate,AN MarchACT 30,ESTABLISHING 2021A TheREGIONAL CommitteeECONOMIC onDEVELOPMENT CommercePILOT 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 A REGIONAL ECONOMIC DEVELOPMENT PILOT PROGRAM.

(NEW) (Effective July 1, 2021) (a) The Department of Economic and Community Development shall establish, within available appropriations,resources, a regional economic development matching grant pilot program for the purpose of providing matching funds to regional economic development corporations for the implementation of economic development programs in distressed municipalities.

Such pilot program shall be available to any regional development corporation representing not less than fivefour municipalities, twoone of which shall be a distressed municipalities,municipality, as defined in section 32-9p of the generalstatutes.Thedepartmentmayenterintoanagreement,pursuant to chapter 55a of the general statutes,statutes. with a person, firm, corporation or other entity to operate such program.

The Commissioner of Economic and Community Development may, in his or her discretion, allow a regional economic development corporation that represents less than four municipalities, one of which shall be a distressed municipality, to participate in the program.

The department may enter into an agreement, pursuant to chapter 55a of the general statutes, with a person, firm, corporation or other entity to operate such program.

Each application sSB1020Substitute /Senate FileBill No.

2221020 1shall sSB1020include, Filebut No.need not be limited to, the following:

222 shall include, but need not be limited to, the following:

(e) Not later than two years after the receipt of any financial aid pursuant to this section, and annually thereafter, each regional economic development corporation participating in the pilot program shall submit a report to the Department of Economic and Community Development detailing the progress of the economic development program proposed in such corporation's application and containing any additionalPublic informationAct deemedNo. necessary by the Commissioner of Economic and Community Development.

sSB102021-77 /2 Fileof 3 Substitute Senate Bill No.

2221020 2additional sSB1020information Filedeemed No.necessary by the Commissioner of Economic and Community Development.

222 (f) Not later than January 15, 2022, and annually thereafter, the Commissioner of Economic and Community Development shall submit areport,inaccordancewiththeprovisionsofsection11-4aofthegeneral statutes, containing an evaluation of the operation and effectiveness of the pilot program to the joint standing committee of the General Assembly having cognizance of matters relating to commerce.

ThisApproved actJune shall24, take2021 effectPublic asAct followsNo. and shall amend the following sections:

Section21-77 13 Julyof 1,3 2021 New section CE Joint Favorable Subst.

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222 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 22 $ FY 23 $ Department of Economic & GF - Cost See Below See Below Community Development Note:

GF=General Fund Municipal Impact:

None Explanation The bill requires the Commissioner of the Department of Economic and Community Development to establish a regional economic development matching grant pilot program limited to $10 million in total, with any single matching grant limited to $5 million.

The Out Years The impact of the bill is limited to the aggregate total.

Once that limit is reached, there would be no impact in the out years.

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222 OLR Bill Analysis sSB 1020 AN ACT ESTABLISHING A REGIONAL ECONOMIC DEVELOPMENT PILOT PROGRAM.

SUMMARY This bill requires the Department of Economic and Community Development (DECD) to establish, within available appropriations, a pilot program to provide matching grants to regional economic development corporations implementing economic development programs in distressed municipalities (see BACKGROUND).

Corporationsmust represent at least five municipalitiesto be eligible for the pilot program, including two distressed municipalities.

The bill allows the DECD commissioner to award up to $10 million in total grants to participating corporations but no more than $5 million for any single grant.

The department (1) may enter into a personal service agreement with an outside person, firm, corporation, or other entity to operate the program and (2) cannot accept new program applications after June 30, 2026.

Under the bill, regional economic development corporations seeking to participate in the program must apply in the manner DECD prescribes.

At a minimum, applications must include the following:

1.

the location of the applicant’s principal place of business, 2.