The Commissioner of Economic and Community Development and the board of directors of Connecticut Innovations, Incorporated shall require, as a condition of any financial assistance provided on and after June 23, 1993, under any program administered by the Department of Economic and Community Development or such corporation to any business organization, except for a business organization that receives any such financial assistance in an amount not more than fifty thousand dollars and is an eligible small business, as defined in section 31-3pp, or under any assistance program that is funded entirely by the federal government, in which case the commissioner may require, that such business organization: (1) Shall not relocate outside of the state for ten years after receiving such assistance or during the term of a loan or loan guarantee, whichever is longer, unless the full amount of the assistance is repaid to the state and a penalty equal to five per cent of the total assistance received is paid to the state, except that this subdivision shall not be applicable to financial assistance by the corporation in the form of an equity investment or other financial assistance, including a convertible or seed loan, with predominantly equity characteristics, and (2) shall, if the business organization relocates within the state during such period, offer employment at the new location to its employees from the original location if such employment is available. For the purposes of subdivision (1) of this section, the value of a guarantee shall be equal to the amount of the state's liability under the guarantee. As used in this section, “relocate” means the physical transfer of a substantial portion, as determined by the Commissioner of Economic and Community Development, of the operations of a business or any division of a business that independently receives any financial assistance from the state from the location such business or division occupied at the time it accepted the financial assistance to another location. Notwithstanding the provisions of this section, the Commissioner of Economic and Community Development shall adopt regulations in accordance with chapter 54 to establish the terms and conditions of repayment, including specifying the conditions under which repayment may be deferred, following a determination by the commissioner of a legitimate hardship.
(P.A. 88-146; P.A. 93-218, S. 1, 4; 93-360, S. 14, 19; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; June 12 Sp. Sess. P.A. 12-1, S. 171; P.A. 17-162, S. 2; P.A. 21-193, S. 20.)
History: P.A. 93-218 applied requirements of the section to any financial assistance, instead of loans and grants only, provided by Connecticut development authority and Connecticut Innovations, Incorporated, as well as commissioner of economic development, to any business organization instead of only those with twenty-five or more employees, extended period of time for condition on not relocating out of state from 3 to 10 years, imposed penalty on relocating during such period and added provision specifying value of a guarantee for purposes of Subdiv. (1), effective June 23, 1993; P.A. 93-360 exempted financial assistance provided by Connecticut Innovations, Incorporated from requirements of the section, effective June 14, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development with Commissioner and Department of Economic and Community Development; June 12 Sp. Sess. P.A. 12-1 replaced “Connecticut Development Authority” with “Connecticut Innovations, Incorporated” and “authority” with “corporation”, and added exception in Subdiv. (1) re financial assistance by the corporation, effective July 1, 2012; P.A. 17-162 redefined “relocate”; P.A. 21-193 added provision re exception for eligible small business receiving not more than $50,000 and for business receiving assistance under any program funded entirely by federal government, effective July 13, 2021.
Structure Connecticut General Statutes
Title 32 - Commerce and Economic and Community Development
Chapter 578 - Department of Economic and Community Development
Section 32-1a. - Short title: State Commerce Act.
Section 32-1b. - Department of Economic and Community Development established.
Section 32-1c. - Powers and duties of commissioner.
Section 32-1d. - Deputy commissioner, appointment and functions.
Section 32-1e. - Plan for support and promotion of industries using recycled materials.
Section 32-1n. - Reports re funding for economic and industry cluster initiatives.
Section 32-1o. - State economic strategic plan.
Section 32-1p. - Powers and duties re digital media and motion picture activities.
Section 32-1r. - Report on business tax credit and abatement programs.
Section 32-1s. - Powers and duties re culture and tourism.
Section 32-1v. - Small business hotline.
Section 32-2 and 32-2a. - Expenses; director. Bonding of commission members and employees.
Section 32-3. - Duties of department; Connecticut Innovations, Incorporated.
Section 32-4a. - Assistance to Connecticut Economic Resource Center, Incorporated.
Section 32-4b. - State Economic Development Advisory Board.
Section 32-4e. - “Economic cluster” defined.
Section 32-4g. - Economic cluster report by the Commissioner of Economic and Community Development.
Section 32-4h. - Economic cluster bond funds report.
Section 32-4i. - Learn Here, Live Here program.
Section 32-4j. - Connecticut first-time homebuyers account.
Section 32-4k. - Learn Here, Live Here program. Segregation of income taxes.
Section 32-4l. - First five plus program.
Section 32-4o. - Bond authorization for grants.
Section 32-4p. - Requests for proposals and competitive grant program re major projects.
Section 32-4r. - Youth Service Corps grant program.
Section 32-4s. - Local Youth Service Corps program requirements.
Section 32-5b. - Deadlines for approval or disapproval of applications for financial assistance.
Section 32-6. - Connecticut building at Eastern States Exposition.
Section 32-6h. - One-stop business licensing center.
Section 32-6i. - Connecticut Economic Information System Steering Committee.
Section 32-6j. - Assistance of Labor Commissioner in job-training activities.
Section 32-6k. - Impact statements submitted to the Connecticut Transportation Strategy Board.
Section 32-6m. - Promotion of products produced in Connecticut.
Section 32-6n. - Electronic business portal.
Section 32-6u. - Connecticut antiques trail. Promotional program.
Section 32-6w. - Display of temporary signage or flags by business on Connecticut antiques trail.
Section 32-7e. - Regional Economic Development Assistance Revolving Fund.
Section 32-7f. - Economic development grants program.
Section 32-7g. - Small Business Express program.
Section 32-7h. - Small business express assistance account.
Section 32-7n. - Manufacturing Innovation Advisory Board.
Section 32-7p. - Technology Talent Advisory Committee. Membership. Duties. Pilot programs. Report.
Section 32-7q. - Minority Business Initiative Advisory Board. Duties. Membership.
Section 32-7r. - Regional economic development matching grant pilot program.
Section 32-8. - Administration of federal funds.
Section 32-8a. - Registry of electronic commerce and information technology intensive companies.
Section 32-8b. - Cooperative internship program.
Section 32-8c. - Connecticut Young Adult Conservation Corps program. Set-asides. Reports.
Section 32-9. - Right of local redevelopment agencies to contract with federal government.
Section 32-9aa and 32-9bb. - Loans for the repair of dams. Regulations.
Section 32-9c. - Transfer of powers and duties of the Connecticut Development Commission.
Section 32-9d. - Transfer of personnel and properties.
Section 32-9dd. - Transfer of remediated brownfields.
Section 32-9i. - Job incentive grant program for businesses in areas of high unemployment.
Section 32-9k. - Business facilities qualified for job incentive grants.
Section 32-9l. - Determination of grant amounts. Regulations.
Section 32-9n. - Office of Small Business Affairs.
Section 32-9o. - Industrial growth in areas of high unemployment. Legislative determination.
Section 32-9qq. - Business outreach center challenge grants. Eligibility of greenways projects.
Section 32-9tt. - Funding for businesses new to exporting.
Section 32-9u. - Use of North American Industrial Classification codes.
Section 32-9uu. - Program to increase entrepreneurial potential in the inner cities.
Section 32-9vv. - Connecticut Hydrogen-Fuel Cell Coalition.
Section 32-9w. - Evaluation of impact of development project on the environment. Procedure.
Section 32-9ww. - Fuel cell economic development plan. Reports.
Section 32-9xx. - Small Business Advisory Board.
Section 32-9yy. - Connecticut Credit Consortium. Small business assistance account.