2018 Connecticut General Statutes
Title 32 - Commerce and Economic and Community Development
Chapter 578 - Department of Economic and Community Development
Section 32-5a - Conditions re relocation of certain businesses which received state financial assistance.
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, 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.)
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”.
