Chapter 581 - Innovation Capital Act of 1989. Connecticut Innovations, Incorporated

Sec. 32-34. Definitions. As used in this chapter, the following terms shall have the following meanings unless the context clearly indicates another meaning and intent:

(1) “Corporation” means Connecticut Innovations, Incorporated as created under section 32-35;

(2) “Entrepreneur” means any person who seeks to organize, operate and assume the risk for a business enterprise, or who organizes, operates and assumes the risk for a business enterprise;

(3) “Finance committee” means a committee or subcommittee organized by the corporation and having the authority to approve or deny applications for financial aid and to enter into agreements on behalf of the corporation to provide financial aid;

(4) “Financial aid” means the infusion of capital to persons, in any form whatsoever, including, but not limited to, grants, loans, equity, leases, guarantees, royalty arrangements, other risk capital and other types of financial assistance;

(5) “Incubator facilities” means a building, structure or complex designed, constructed, renovated or developed to house and provide research and other services to assist small technology-based companies;

(6) “Invention” means any new product without regard to whether a patent has been or could be granted;

(7) “Person” means any individual, general or limited partnership, corporation, limited liability company, institution of higher education, governmental entity or joint venture conducting research into ideas with commercial potential or carrying on business, or proposing to carry on business, within the state which (A) in the case of an individual, general or limited partnership, corporation, limited liability company or joint venture, demonstrates to the corporation the inability (i) to obtain conventional financing in satisfactory amounts or on satisfactory terms or (ii) to locate or continue operations in the state without assistance as provided in this chapter, and (B) demonstrates to the corporation that any project for research into or the development of specific technologies, products, devices, techniques or procedures or the marketing of services based on the use of such technologies, products, devices, techniques or procedures for which assistance under this chapter, is sought, (i) will create new or retain existing jobs in the state, (ii) will result in an increase in the amount of goods or services exported from the state, (iii) will help to strengthen the economy of the state, or (iv) will promote the development and utilization of technology in the state;

(8) “Product” means any technology, device, technique, service or process, which is or may be exploitable commercially; such term shall not refer to pure research but shall be construed to apply to such technologies, products, devices, techniques, services or processes which have advanced beyond the theoretic stage and are readily capable of being, or have been, reduced to practice;

(9) “Research” means the scientific and engineering analysis, investigation, collection of ideas and inquiry into concepts, processes and techniques, the purpose of which is intended to result in a commercially feasible product, process or technique;

(10) “Seed venture” means a business or other entity in the early stage of development;

(11) “Technical peer review committee” means a committee, subcommittee or other entity organized by the corporation to provide advice and counsel concerning the technological, marketing and management feasibility of projects in connection with each application for financial and technical assistance;

(12) “Technology” means the conversion of basic scientific research into processes, techniques and products which may have commercial potential;

(13) “Advanced technology center” means a cooperative research center in a specified field of science and technology established and funded, subject to the requirements in sections 32-40a, 32-40b and 32-40c, through an academic, industrial and governmental partnership for purposes of technological research with a direct relationship to economic development in the state;

(14) “Venture” means, without limitation, any contractual arrangement with any person whereby the corporation obtains rights from or in an invention or product or proceeds therefrom, or rights to obtain from any person any and all forms of equity instruments including, but not limited to, common and preferred stock, warrants, options, convertible debentures and similar types of instruments exercisable or convertible into capital stock, in exchange for the granting of financial aid to such person;

(15) “Venture lease” means a lease by the corporation to a technology company of any real or personal property, on such terms, including lease payments, lease term and purchase options, as the corporation shall determine;

(16) “Affiliate” means any person that directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with, another person, including, but not limited to, any corporation, general or limited partnership or limited liability company controlled, directly or indirectly, by such other person or the corporation, provided, in addition to other means of being controlled, a general or limited partnership or limited liability company shall be deemed to be controlled by the corporation if the corporation or one of its affiliates acts as a general partner or a manager of such general or limited partnership or limited liability company;

(17) “Capital initiative” means providing financial aid through one or more affiliates and raising the capital for such affiliates, in whole or in part, from sources other than the state;

(18) “Preseed financing” means financial aid provided for research and formulation of a concept;

(19) “Seed financing” means financial aid to an inventor or entrepreneur to assess the viability of a concept and to qualify for start-up financing to fund, including, but not limited to, product development, market research, management team building and, pending successful progress on such initial steps, business plan development;

(20) “Start-up financing” means financial aid to companies in the process of organizing as a business or that have been in operation for less than one year and (A) have completed product development and initial marketing but have not sold such product commercially, and (B) have established viability by performing market studies, assembling key management, developing a business plan and may also qualify for start-up financing by demonstrating viability by other means deemed appropriate by the corporation;

(21) “Early or first-stage financing” means financial aid to companies that have expended initial capital, developed and market-tested prototypes, and demonstrate that such funds are necessary to initiate full-scale manufacturing and sales;

(22) “Expansion financing” means financial aid to companies for market expansion or to enhance the fiscal position of a company in preceding a liquidity event including, but not limited to, an initial public offering or acquisition.

(1972, P.A. 248, S. 3; P.A. 88-154, S. 1, 3; P.A. 89-245, S. 8; P.A. 91-388, S. 1, 7; P.A. 95-79, S. 121, 189; P.A. 98-203, S. 3, 13; P.A. 06-83, S. 3; 06-187, S. 78.)

History: P.A. 88-154 revised the definition of “person” to require a demonstration of specific criteria; P.A. 89-245 amended the definition of “corporation” to rename Connecticut Product Development Corporation as Connecticut Innovations, Incorporated, renumbered existing definitions, added definitions of “entrepreneur” and “finance committee”, redefined the term “financial aid”, added definition of “incubator facilities”, redefined the terms “invention”, “person” and “product”, added definitions of “research”, “seed venture”, “technical peer review committee”, “technology” and “technology innovation center”, and redefined the term “venture”; P.A. 91-388 amended Subdiv. (13) by substituting the definition of “advanced technology center” for definition of “technology innovation center”; P.A. 95-79 redefined “person” to include a limited liability company, effective May 31, 1995; P.A. 98-203 amended Subdiv. (4) to expand the definition of “financial aid” to include equity, leases, guarantees and royalty arrangements, amended Subdiv. (7) to include in the definition of “person” general or limited partnerships and added new Subdivs. (15) to (17), inclusive, defining “venture lease”, “affiliate” and “capital initiative”, respectively, effective June 8, 1998; P.A. 06-83 added Subdivs. (18) to (22), inclusive, defining “preseed financing”, “seed financing”, “start-up financing”, “early or first-stage financing” and “expansion financing”, respectively, effective July 1, 2006; P.A. 06-187 redefined “start-up financing” in Subdiv. (20) by providing that companies may also qualify for start-up financing by demonstrating viability by other means deemed appropriate by the corporation, effective July 1, 2006.

Cited. 167 C. 111.

Sec. 32-35. Connecticut Innovations, Incorporated. (a) There is hereby created a body politic and corporate to be known as “Connecticut Innovations, Incorporated”. Such corporation is constituted a public instrumentality and political subdivision of the state and the exercise by the corporation of the powers conferred in this chapter shall be deemed and held to be the performance of an essential public and governmental function. Connecticut Innovations, Incorporated shall not be construed to be a department, institution or agency of the state.

(b) (1) The corporation shall be governed by a board of seventeen directors. Nine members shall be appointed by the Governor, six of whom shall be knowledgeable, and have favorable reputations for skill, knowledge and experience, in the development of innovative start-up businesses, including, but not limited to, expertise in academic research, technology transfer and application, the development of technological invention and new enterprise development and three of whom shall be knowledgeable, and have favorable reputations for skill, knowledge and experience, in the field of financial lending or the development of commerce, trade and business. Four members shall be the Commissioner of Economic and Community Development, the chancellor of the Connecticut State Colleges and Universities, the Treasurer and the Secretary of the Office of Policy and Management, who shall serve ex officio and shall have all of the powers and privileges of a member of the board of directors. Each ex-officio member may designate his deputy or any member of his staff to represent him at meetings of the corporation with full power to act and vote in his behalf. Four members shall be appointed as follows: One by the president pro tempore of the Senate, one by the minority leader of the Senate, one by the speaker of the House of Representatives and one by the minority leader of the House of Representatives. Except as provided in subdivision (2) of this subsection, (A) each member appointed by the Governor shall serve at the pleasure of the Governor but not longer than the term of office of the Governor or until the member's successor is appointed and qualified, whichever is longer, (B) the Governor shall fill any vacancy for the unexpired term of a member appointed by the Governor, (C) each member appointed by a member of the General Assembly shall serve in accordance with the provisions of section 4-1a, and (D) the appropriate legislative appointing authority shall fill any vacancy for the unexpired term of a member appointed by such authority. A director shall be eligible for reappointment.

(2) Any member appointed by the Governor or appointed by a member of the General Assembly who fails to attend three consecutive meetings of the board or who fails to attend fifty per cent of all meetings of the board held during any calendar year shall be deemed to have resigned from the board.

(3) Not later than thirty days after the occurrence of any vacancy, the chief executive officer of Connecticut Innovations, Incorporated, in consultation with the chairperson of the board, shall recommend a person to fill such vacancy to the appropriate appointing authority.

(c) The Governor shall appoint a chairperson from among the board members. The directors shall annually elect one of their number as secretary. The board may elect such other officers of the board as it deems proper. Members shall receive no compensation for the performance of their duties hereunder but shall be reimbursed for necessary expenses incurred in the performance thereof.

(d) Each director of the corporation before entering upon his duties shall take and subscribe the oath or affirmation required by article eleventh, section 1, of the Constitution. A record of each such oath or affirmation shall be filed in the office of the Secretary of the State. The board of directors of the corporation shall adopt written procedures, in accordance with the provisions of section 1-121, for: (1) Adopting an annual budget and plan of operations, including a requirement of board approval before the budget or plan may take effect; (2) hiring, dismissing, promoting and compensating employees of the corporation including an affirmative action policy and a requirement of board approval before a position may be created or a vacancy filled; (3) purchasing, leasing or acquiring real and personal property and personal services, including a requirement of board approval for any nonbudgeted expenditure in excess of five thousand dollars; (4) contracting for financial, legal, bond underwriting and other professional services, including a requirement that the corporation solicit proposals at least once every three years for each such service which it uses; (5) awarding loans, grants and other financial assistance, including eligibility criteria, the application process and the role played by the corporation's staff and board of directors and the Department of Economic and Community Development and including deadlines for the approval or disapproval of applications for such assistance by the corporation on and after July 1, 1996; and (6) the use of surplus funds to the extent authorized under this chapter, or other provisions of the general statutes.

(e) Notwithstanding the provisions of any other law to the contrary, it shall not constitute a conflict of interest for a trustee, director, partner or officer of any person, firm or corporation, or any individual having a financial interest in a person, firm or corporation, to serve as a member of the board of directors of Connecticut Innovations, Incorporated, provided such trustee, director, partner, officer or individual shall abstain from deliberation, action or vote by Connecticut Innovations, Incorporated in specific respect to such person, firm or corporation.

(f) The corporation shall have the authority to contract with the Department of Economic and Community Development for administrative or other services.

(g) As of October 1, 1989, all powers, duties and personnel of the Connecticut Product Development Corporation shall be transferred to Connecticut Innovations, Incorporated, in accordance with the provisions of section 4-38d. As of October 1, 1989, all cash, notes, receivables, liabilities, appropriations, authorizations, allocations, and all other assets and properties of the Connecticut Product Development Corporation shall be transferred to Connecticut Innovations, Incorporated. Such transfer shall not affect the validity, enforceability or binding nature of any contract or agreement for financial aid made by the Connecticut Product Development Corporation under the authorization of this chapter prior to October 1, 1989.

(h) The corporation shall provide funding for the operation of the Connecticut Small Business Innovation Research Office in accordance with subdivision (15) of subsection (a) of section 32-39g.

(1972, P.A. 248, S. 4; P.A. 74-273, S. 1, 2; P.A. 77-614, S. 288, 610; P.A. 79-560, S. 38, 39; P.A. 82-58, S. 1, 2; P.A. 88-225, S. 9, 14; 88-266, S. 14, 46; P.A. 89-245, S. 9; June Sp. Sess. P.A. 93-1, S. 42, 45; P.A. 95-249, S. 3, 4; 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; June Sp. Sess. P.A. 09-3, S. 79; Sept. Sp. Sess. P.A. 09-7, S. 111; P.A. 11-48, S. 124, 285; June 12 Sp. Sess. P.A. 12-1, S. 151; P.A. 13-247, S. 239; P.A. 16-15, S. 41; May Sp. Sess. P.A. 16-3, S. 12; P.A. 22-97, S. 2; P.A. 24-22, S. 41; 24-149, S. 14.)

History: P.A. 74-273 revised appointment provisions in Subsec. (b), deleting now obsolete provision re initial appointments and making provision re successors' appointments generally applicable and added Subsec. (e) re status of corporation; P.A. 77-614 replaced department of commerce with department of economic development in Subsec. (e) and made corporation subject to department “for administrative purposes” rather than “for fiscal and budgetary purposes”, effective January 1, 1979; P.A. 79-560 increased number of directors from six to seven, specified that additional member be knowledgeable, experienced, etc. and replaced previous provision calling for six-year appointments made in even-numbered years with provision making directors' terms coterminous with governor's term; P.A. 82-58 added provisions re commissioner of economic development's service as a board member; P.A. 88-225 inserted new Subsec. (e) re when a financial interest and membership on board of directors of corporation do not constitute a conflict of interest and relettered former Subsec. (e) as Subsec. (f); P.A. 88-266 amended Subsec. (a) to specify that corporation is a body “politic” and is a public instrumentality and political subdivision of the state where previously was considered “quasi-public”, adding reference to its governmental function and providing that corporation shall not be construed to be department, institution or agency of state, amended Subsec. (b) to require that board members' terms be staggered instead of coterminous with governor's term, amended Subsec. (c) to require board chairperson to be appointed by governor with advice and consent of general assembly instead of elected by board, and amended Subsec. (d) by adding provisions requiring adoption of written procedures; P.A. 89-245 renamed Connecticut Product Development Corporation as Connecticut Innovations, Incorporated, added four members to the board of directors and made certain changes to the qualifications of board members, required the commissioner of higher education and the secretary of the office of policy and management to serve as ex-officio board members, made certain technical changes, and added Subsec. (g) re transfer of powers, duties and personnel from Connecticut Product Development Corporation to Connecticut Innovations, Incorporated; June Sp. Sess. P.A. 93-1 amended Subsec. (c) to add four legislative appointments to the board of directors, to revise length of terms of gubernatorial appointees, to specify term length for legislative appointees and to clarify procedure for filling unexpired terms, effective July 1, 1993; P.A. 95-249 amended Subsec. (d)(5) to require board to adopt procedures for deadlines for approving or disapproving assistance applications, effective July 1, 1995; 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 Sp. Sess. P.A. 09-3 added Subsec. (h) re funding for Connecticut Small Business Innovation Research Office, effective September 9, 2009; Sept. Sp. Sess. P.A. 09-7 amended Subsec. (h) to provide that office funding is for operation of the office in accordance with Sec. 32-39(41), effective October 5, 2009; P.A. 11-48 amended Subsec. (c) by replacing provision re chairperson of board appointed by Governor with advice and consent of both houses of General Assembly with provision re chairperson of board to be Commissioner of Economic and Community Development, effective July 1, 2011; pursuant to P.A. 11-48, “Commissioner of Higher Education” was changed editorially by the Revisors to “president of the Board of Regents for Higher Education” in Subsec. (b), effective July 1, 2011; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (b) by increasing number of directors from 15 to 17, increasing number of members appointed by Governor from 8 to 9, replacing “technology and technological processes” with “start-up businesses”, adding provision re 3 members having knowledge of financial lending or development of commerce, trade and business, adding Treasurer as ex-officio member and making conforming changes, effective July 1, 2012; P.A. 13-247 amended Subsec. (c) by replacing provision re chairperson of board to be Commissioner of Economic and Community Development with provision re chairperson of board to be appointed by Governor from among board members, effective July 1, 2013; P.A. 16-15 amended Subsec. (b) by replacing “president of the Board of Regents for Higher Education” with “president of the Connecticut State Colleges and Universities”, effective July 1, 2016; May Sp. Sess. P.A. 16-3 amended Subsec. (h) by replacing reference to Sec. 32-39(41) with reference to Sec. 32-39g(a)(18), effective September 1, 2016; P.A. 22-97 amended Subsec. (b) by designating existing provisions as Subdiv. (1), designating existing provisions re board appointments as Subparas. (A) to (D), adding Subdiv. (2) re board meeting attendance and adding Subdiv. (3) re chief executive officer's duty to recommend persons to fill board vacancies; P.A. 24-22 amended Subsec. (b)(1) by replacing “president of the Connecticut State Colleges and Universities” with “chancellor of the Connecticut State Colleges and Universities”, effective July 1, 2024; P.A. 24-149 replaced reference to Sec. 32-39g(a)(18) with reference to Sec. 32-39g(a)(15), effective July 1, 2024.

Cited. 167 C. 111; 230 C. 24.

Sec. 32-36. Perpetual succession. Termination. The corporation shall have perpetual succession and shall adopt, amend and repeal bylaws for the conduct of its affairs. Such succession shall continue until the existence of the corporation is terminated by law, provided no such termination shall affect any outstanding contractual obligation of the corporation to assist any person and the state shall succeed to the obligations of the corporation under such contract. Upon termination of the corporation its rights and properties shall pass to and be vested in the state.

(1972, P.A. 248, S. 5; P.A. 86-255, S. 2; P.A. 88-266, S. 15, 46.)

History: P.A. 86-255 repealed provision requiring corporation to adopt, amend and repeal regulations; P.A. 88-266 specified that corporation rights and properties are vested in state upon corporation's termination.

Sec. 32-37. Board of directors. (a) The powers of the corporation shall be vested in and exercised by the board of directors. Eight members of the board shall constitute a quorum and the affirmative vote of a majority of the members present at a meeting of the board shall be necessary and sufficient for any action taken by the board. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all the duties of the board. Any action taken by the board may be authorized by resolution at any regular or special meeting and shall take effect immediately unless otherwise provided in the resolution. Notice of any regular meeting shall be given in writing, by telephone or orally, not less than forty-eight hours prior to the meeting. Notice of any special meeting shall be given in accordance with subsection (d) of section 1-225.

(b) The board may delegate to three or more of its members such board powers and duties as it may deem proper. At least one of such members shall not be a state employee. The board shall establish such committees, subcommittees or other entities as it deems necessary to further the purposes of the corporation including, but not limited to, a finance committee and one or more technical peer review committees.

(1972, P.A. 248, S. 6; P.A. 88-266, S. 16, 46; P.A. 89-245, S. 10; June Sp. Sess. P.A. 93-1, S. 43, 45; P.A. 00-66, S. 30.)

History: P.A. 88-266 divided section into Subsecs. and, in Subsec. (b) authorized board to delegate powers and duties to three or more of its members, at least one of whom shall not be a state employee, instead of to one or more of its members or its officers, agents and employees; P.A. 89-245 changed the quorum requirement from four to six members, added provisions re notice of special meetings, and added provisions re establishment of committees, subcommittees or other entities, including finance committee and technical peer review committees; June Sp. Sess. P.A. 93-1 amended Subsec. (a) by increasing number of members required for quorum from six to eight, reflecting increase in number of board members, effective July 1, 1993; P.A. 00-66 made a technical change in Subsec. (a).

Sec. 32-38. Chief executive officer. The board shall appoint a chief executive officer of the corporation who shall not be a member of the board and who shall serve at the pleasure of the board and shall receive such compensation as shall be determined by the board. The chief executive officer shall direct and supervise administrative affairs and the general management of the corporation. The chief executive officer may employ such other employees as shall be designated by the board of directors; shall attend all meetings of the board; keep a record of all proceedings and maintain and be custodian of all books, documents and papers filed with the corporation and of the minute book of the corporation and of its official seal. The chief executive officer may cause copies to be made of all minutes and other records and documents of the corporation and may give certificates under the official seal of the corporation to the effect that such copies are true copies, and all persons dealing with the corporation may rely upon such certificates. The chief executive officer or the chief executive officer's designee may serve as a member of such other boards or committees as may be necessary or desirable to carry out the purposes of the corporation.

(1972, P.A. 248, S. 7; P.A. 89-245, S. 11; P.A. 01-153; June 12 Sp. Sess. P.A. 12-1, S. 177.)

History: P.A. 89-245 changed the designation of the chief administrative officer of the corporation from president to executive director and gave the executive director or his designee the power to serve as a member of other boards or committees; P.A. 01-153 eliminated requirement that the executive director be the chief administrative and operational officer of the corporation and made technical changes for purposes of gender neutrality; June 12 Sp. Sess. P.A. 12-1 replaced “executive director” with “chief executive officer”, effective July 1, 2012.

Sec. 32-39. Corporate purpose; powers. The purposes of the corporation shall be to stimulate and encourage the research and development of new technologies, businesses and products, to encourage the creation and transfer of new technologies, to assist existing businesses in adopting current and innovative technological processes, to stimulate and provide services to industry that will advance the adoption and utilization of technology, to achieve improvements in the quality of products and services, to stimulate and encourage the development and operation of new and existing science parks and incubator facilities, and to promote science, engineering, mathematics and other disciplines that are essential to the development and application of technology within Connecticut by the infusion of financial aid for research, invention and innovation in situations in which such financial aid would not otherwise be reasonably available from commercial or other sources, and for these purposes the corporation shall have the following powers:

(1) To have perpetual succession as a body corporate and to adopt bylaws, policies and procedures for the regulation of its affairs and conduct of its businesses as provided in section 32-36;

(2) To enter into venture agreements with persons, upon such terms and on such conditions as are consistent with the purposes of this chapter, for the advancement of financial aid to such persons for the research, development and application of specific technologies, products, procedures, services and techniques, to be developed and produced in this state, and to condition such agreements upon contractual assurances that the benefits of increasing or maintaining employment and tax revenues shall remain in this state and shall accrue to it;

(3) To solicit, receive and accept aid, grants or contributions from any source of money, property or labor or other things of value, to be held, used and applied to carry out the purposes of this chapter, subject to the conditions upon which such grants and contributions may be made, including but not limited to, gifts or grants from any department or agency of the United States or the state;

(4) To invest in, acquire, lease, purchase, own, manage, hold and dispose of real property and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to the carrying out of these purposes; provided, however, (A) all such acquisitions of real property for the corporation's own use with amounts appropriated by the state to the corporation or with the proceeds of bonds supported by the full faith and credit of the state shall be subject to the approval of the Secretary of the Office of Policy and Management and the provisions of section 4b-23, and (B) upon termination of a lease executed on or before, May 1, 2016, for its main office, the corporation shall consider relocating such main office to a designated innovation place, as defined in section 32-39f, and establishing a satellite office in one or more designated innovation places;

(5) To borrow money or to guarantee a return to the investors in or lenders to any capital initiative, to the extent permitted under this chapter;

(6) To hold patents, copyrights, trademarks, marketing rights, licenses, or any other evidences of protection or exclusivity as to any products as defined herein, issued under the laws of the United States or any state or any nation;

(7) To employ such assistants, agents and other employees as may be necessary or desirable, which employees shall be exempt from the classified service and shall not be employees, as defined in subsection (b) of section 5-270; establish all necessary or appropriate personnel practices and policies, including those relating to hiring, promotion, compensation, retirement and collective bargaining, which need not be in accordance with chapter 68, and the corporation shall not be an employer, as defined in subsection (a) of section 5-270; and engage consultants, attorneys and appraisers as may be necessary or desirable to carry out its purposes in accordance with this chapter;

(8) To make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this chapter;

(9) To sue and be sued, plead and be impleaded, adopt a seal and alter the same at pleasure;

(10) With the approval of the State Treasurer, to invest any funds not needed for immediate use or disbursement, including any funds held in reserve, in obligations issued or guaranteed by the United States of America or the state of Connecticut and in other obligations which are legal investments for retirement funds in this state;

(11) To procure insurance against any loss in connection with its property and other assets in such amounts and from such insurers as it deems desirable;

(12) To the extent permitted under its contract with other persons, to consent to any termination, modification, forgiveness or other change of any term of any contractual right, payment, royalty, contract or agreement of any kind to which the corporation is a party;

(13) To do anything necessary and convenient to render the bonds to be issued under section 32-41 more marketable;

(14) To acquire, lease, purchase, own, manage, hold and dispose of personal property, and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to the carrying out of these purposes;

(15) In connection with any application for assistance under this chapter, or commitments therefor, to make and collect such fees as the corporation shall determine to be reasonable;

(16) To enter into venture agreements with persons, upon such terms and conditions as are consistent with the purposes of this chapter to provide financial aid to such persons for the marketing of new and innovative services based on the use of a specific technology, product, device, technique, service or process;

(17) To enter into limited partnerships or other contractual arrangements with private and public sector entities as the corporation deems necessary to provide financial aid which shall be used to make investments of seed venture capital in companies based in or relocating to the state in a manner which shall foster additional capital investment, the establishment of new businesses, the creation of new jobs and additional commercially-oriented research and development activity. The repayment of such financial aid shall be structured in such manner as the corporation deems will best encourage private sector participation in such limited partnerships or other arrangements. The board of directors, chief executive officer, officers and staff of the corporation may serve as members of any advisory or other board which may be established to carry out the purposes of this subdivision;

(18) To account for and audit funds of the corporation and funds of any recipients of financial aid from the corporation;

(19) To advise the Governor, the General Assembly, the Commissioner of Economic and Community Development and the chancellor of the Connecticut State Colleges and Universities on matters relating to science, engineering and technology which may have an impact on state policies, programs, employers and residents, and on job creation and retention;

(20) To promote technology-based development in the state;

(21) To encourage and promote the establishment of and, within available resources, to provide financial aid to advanced technology centers;

(22) To conduct and encourage research and studies relating to technological development;

(23) To provide technical or other assistance and, within available resources, to provide financial aid to the Connecticut Academy of Science and Engineering, Incorporated, in order to further the purposes of this chapter;

(24) To recommend a science and technology agenda for the state that will promote the formation of public and private partnerships for the purpose of stimulating research, new business formation and growth and job creation;

(25) To encourage and provide technical assistance and, within available resources, to provide financial aid to existing manufacturers and other businesses in the process of adopting innovative technology and new state-of-the-art processes and techniques;

(26) To recommend state goals for technological development and to establish policies and strategies for developing and assisting technology-based companies and for attracting such companies to the state;

(27) To promote and encourage the coordination of public and private resources and activities within the state in order to assist technology-based entrepreneurs and business enterprises;

(28) To provide services to industry that will stimulate and advance the adoption and utilization of technology and achieve improvements in the quality of products and services;

(29) To promote science, engineering, mathematics and other disciplines that are essential to the development and application of technology;

(30) To coordinate its efforts with existing business outreach centers, as described in section 32-9qq;

(31) To do all acts and things necessary and convenient to carry out the purposes of this chapter;

(32) To accept from the department: (A) Financial assistance, (B) revenues or the right to receive revenues with respect to any program under the supervision of the department, and (C) loan assets or equity interests in connection with any program under the supervision of the department; to make advances to and reimburse the department for any expenses incurred or to be incurred by it in the delivery of such assistance, revenues, rights, assets, or interests; to enter into agreements for the delivery of services by the corporation, in consultation with the department and the Connecticut Housing Finance Authority, to third parties, which agreements may include provisions for payment by the department to the corporation for the delivery of such services; and to enter into agreements with the department or with the Connecticut Housing Finance Authority for the sharing of assistants, agents and other consultants, professionals and employees, and facilities and other real and personal property used in the conduct of the corporation's affairs;

(33) To transfer to the department: (A) Financial assistance, (B) revenues or the right to receive revenues with respect to any program under the supervision of the corporation, and (C) loan assets or equity interests in connection with any program under the supervision of the corporation, provided the transfer of such financial assistance, revenues, rights, assets or interests is determined by the corporation to be practicable, within the constraints and not inconsistent with the fiduciary obligations of the corporation imposed upon or established upon the corporation by any provision of the general statutes, the corporation's bond resolutions or any other agreement or contract of the corporation and to have no adverse effect on the tax-exempt status of any bonds of the state;

(34) With respect to any capital initiative, to create, with one or more persons, one or more affiliates and to provide, directly or indirectly, for the contribution of capital to any such affiliate, each such affiliate being expressly authorized to exercise on such affiliate's own behalf all powers which the corporation may exercise under this section, in addition to such other powers provided to it by law;

(35) To provide financial aid to enable biotechnology, bioscience and other technology companies to lease, acquire, construct, maintain, repair, replace or otherwise obtain and maintain production, testing, research, development, manufacturing, laboratory and related and other facilities, improvements and equipment;

(36) To provide financial aid to persons developing smart buildings, as defined in section 32-23d, incubator facilities or other information technology intensive office and laboratory space;

(37) To provide financial aid to persons developing or constructing the basic buildings, facilities or installations needed for the functioning of the media and motion picture industry in this state;

(38) To invest in private equity investment funds, or funds of funds, and enter into related agreements of limited partnership or other contractual arrangements related to such funds. Any such fund may be organized and managed, and may invest in businesses, located within or outside the state, provided the characteristics, investment objectives and criteria for such fund shall be consistent with policies adopted by the corporation's board of directors, which shall include requirements that the fund manager have or establish an office in the state and that the fund manager agrees to make diligent and good faith efforts to source deals and make fund investments such that an amount at least equal to the amount invested in such fund by the corporation and not otherwise returned, net of customary fees, expenses and closing costs borne ratably by fund investors, is invested by or through such fund in a manner that supports (A) the growth of business operations of companies in the technology, bioscience or precision manufacturing sectors in the state, or (B) the relocation of companies in such sectors to the state;

(39) To invest up to five million dollars in a venture capital funding round of an out-of-state business that has raised private capital, has been incorporated for ten years or less and whose annual gross revenue has increased by twenty per cent for each of the three previous income years of such business, provided (A) any such investment is contingent upon the business relocating its operations to the state, (B) no investment shall exceed fifty per cent of the total amount raised by the business in such venture capital funding round, and (C) the total amount of investments pursuant to this section shall not exceed ten million dollars;

(40) To establish a program to solicit private investment from state residents that Connecticut Innovations, Incorporated will invest in a private investment fund or funds of funds pursuant to subdivision (38) of this section or subsections (e) and (g) of section 32-41cc on behalf of such residents, provided any such private investment shall be invested by Connecticut Innovations, Incorporated in venture capital firms having offices located in the state;

(41) To create financial incentives to induce (A) out-of-state businesses that have raised private capital, have been incorporated for ten years or less and whose annual gross revenue has increased by twenty per cent for each of the three previous income years of such business, to relocate to Connecticut, provided the corporation has made an equity investment in such business and (B) out-of-state venture capital firms to relocate to Connecticut, provided the corporation is investing funds in such firm as a limited partner; and

(42) To provide financial aid, including in the form of equity investments, to cannabis establishments, as defined in section 21a-420.

(1972, P.A. 248, S. 8; P.A. 75-425, S. 55, 57; P.A. 77-614, S. 19, 610; P.A. 79-231; 79-233, S. 8; P.A. 80-267, S. 2; 80-483, S. 99, 186; P.A. 87-273, S. 1; P.A. 88-266, S. 17, 46; P.A. 89-245, S. 12; P.A. 91-388, S. 5, 7; P.A. 94-45, S. 1, 3; P.A. 95-78, S. 2, 5; 95-250, S. 11, 39, 42; 95-309, S. 3, 11, 12; P.A. 98-203, S. 4, 13; P.A. 00-178, S. 6; June Sp. Sess. P.A. 00-1, S. 43, 46; June Sp. Sess. P.A. 01-9, S. 80, 131; P.A. 07-152, S. 2; 07-236, S. 4; Sept. Sp. Sess. P.A. 09-7, S. 112; P.A. 11-48, S. 285; 11-80, S. 136; Oct. Sp. Sess. P.A. 11-2, S. 3; June 12 Sp. Sess. P.A. 12-1, S. 160; P.A. 13-123, S. 25; P.A. 16-15, S. 42; 16-204, S. 1; May Sp. Sess. P.A. 16-3, S. 11; P.A. 17-212, S. 2; P.A. 19-22, S. 5; June Sp. Sess. P.A. 21-1, S. 152; P.A. 24-22, S. 42; 24-149, S. 15, 16.)

History: P.A. 75-425 specified in Subdiv. (4) that acquisitions of real property are subject to Sec. 4-26b; P.A. 77-614 replaced commissioner of finance and control with secretary of the office of policy and management in Subdiv. (4); P.A. 79-231 empowered corporation to employ attorneys in Subdiv. (7); P.A. 79-233 specified in Subdiv. (10) that provisions of Subsec. 14b of Sec. 36-96 are inapplicable to investments; P.A. 80-267 added reference to maintaining employment and tax revenues in Subdiv. (2); P.A. 80-483 corrected faulty reference to Subsec. 14b of Sec. 36-96 in Subdiv. (10); P.A. 87-273 amended Subdiv. (4) to delete reference to personal property and inserted new Subdiv. (14) detailing corporate powers concerning personal property, renumbering prior Subdiv. (14) accordingly; P.A. 88-266 inserted new Subdiv. (15) re power to make or collect fees, renumbering former Subdiv. (15) as (16); P.A. 89-245 added corporate purposes re promoting the creation, development and application of technology, improving quality of products and services, encouraging development of science parks and incubator facilities and promoting academic disciplines essential to the development and application of technology, made certain technical changes to existing corporate powers in Subdivs. (1) to (15), added new Subdivs. (16) to (32) re additional corporate powers, and renumbered existing Subdiv. (16) as Subdiv. (33); P.A. 91-388 amended Subdiv. (21) by changing the reference to “technology innovation centers” to “advanced technology centers”; P.A. 94-45 amended Subdiv. (7) to exempt employees and corporation from definitions under Sec. 5-270 and to require corporation to establish personnel practices and policies, effective July 1, 1994; P.A. 95-78 amended Subdiv. (22) to require that corporations include information re federal defense conversion financial assistance programs in inventory and identify and notify eligible businesses, effective July 1, 1995; P.A. 95-250 amended Subdiv. (19) substituting “Commissioner of Economic and Community Development” for “Commissioner of Economic Development” and Subdiv. (22) deleting provision re information on federal financial assistance programs for defense conversion projects, effective July 1, 1995, and added Subdivs. (34) and (35) re participation in programs administered by the Department of Economic and Community Development; P.A. 95-309 amended Subdiv. (35) to add provision re adverse effect on the tax-exempt status of bonds and revised effective date of P.A. 95-250 but did not affect this section; P.A. 98-203 amended Subdiv. (4) to exempt certain affiliates of the corporation from the requirements of that subdivision, amended Subdiv. (5) to allow the corporation to provide guarantees to investors or lenders in certain cases and added new Subdivs. (36) and (37) re creation of affiliates and re financial aid to certain technology companies, respectively, effective June 8, 1998; P.A. 00-178 added Subdiv. (38) re financial aid to persons developing smart buildings, incubator facilities or other information technology intensive office and laboratory space; June Sp. Sess. P.A. 00-1 changed effective date of P.A. 00-178 from October 1, 2000, to July 1, 2000, effective July 1, 2000; June Sp. Sess. P.A. 01-9 amended Subdiv. (4) by deleting provision re approval by the Secretary of the Office of Policy and Management, adding provision re secretary's approval of real property acquired for the corporation's own use, and deleting exemption re affiliates that acquire, lease, purchase, own, manage, hold or dispose of real property, effective July 1, 2001; P.A. 07-152 added Subdiv. (39) re Renewable Energy Investment Fund, effective June 25, 2007; P.A. 07-236 replaced “new technologies and products” with “new technologies, businesses and products” and added Subdiv. (40) re financial aid for infrastructure for media and motion picture industry, effective July 1, 2007; Sept. Sp. Sess. P.A. 09-7 added Subdiv. (41) re technology-based talent and innovation, effective October 5, 2009; pursuant to P.A. 11-48, “Commissioner of Higher Education” was changed editorially by the Revisors to “president of the Board of Regents for Higher Education” in Subdiv. (19), effective July 1, 2011; P.A. 11-80 deleted former Subdiv. (39) re Renewable Energy Investment Fund and redesignated existing Subdivs. (40) and (41) as Subdivs. (39) and (40), effective July 1, 2011; Oct. Sp. Sess. P.A. 11-2 amended Subdiv. (37) to add bioscience companies, effective November 8, 2011; June 12 Sp. Sess. P.A. 12-1 amended Subdiv. (34) to delete references to Connecticut Development Authority, effective July 1, 2012; P.A. 13-123 amended Subdiv. (17) to change “executive director” to “chief executive officer”, effective June 18, 2013; P.A. 16-15 amended Subdiv. (19) by replacing “president of the Board of Regents for Higher Education” with “president of the Connecticut State Colleges and Universities”, effective July 1, 2016; P.A. 16-204 added Subdiv. (41) re investment in, and agreements with, private equity investment funds, effective July 1, 2016; May Sp. Sess. P.A. 16-3 amended Subdiv. (4) to designate existing provisions re acquisitions of real property as Subpara. (A) and add Subpara. (B) re consideration of relocating main office to designated innovation place, amended Subdivs. (22), (28) and (40) to add provisions re powers to be transferred to CTNext, added Subdiv. (41) re investment in, and agreements with, private equity investment funds, added Subdiv. (42) re investment in venture capital funding round of out-of-state business that relocates operations to state, added Subdiv. (43) re establishment of program to solicit private investment from state residents and added Subdiv. (44) re creating financial incentives to induce out-of-state businesses and out-of-state venture capital firms to relocate to state, effective September 1, 2016; P.A. 17-212 made a technical change in Subdiv. (4), effective July 10, 2017; P.A. 19-22 amended Subdiv. (41) to add “characteristics” re fund to be consistent with policies adopted by corporation's board of directors, replace provision re requirements to be included in policies adopted by board with new provisions re same, and made technical changes, effective June 13, 2019; June Sp. Sess. P.A. 21-1 added Subdiv. (45) re financial aid to cannabis establishments, effective July 1, 2021; P.A. 24-22 amended Subdiv. (19) by replacing “president of the Connecticut State Colleges and Universities” with “chancellor of the Connecticut State Colleges and Universities”, effective July 1, 2024; P.A. 24-149 amended Subdiv. (4) by replacing reference to Sec. 32-39j with reference to Sec. 32-39f, deleted former Subdiv. (22) re data and information concerning certain programs and power to be transferred to CTNext, former Subdiv. (28) re incubator facilities and power to be transferred to CTNext and former Subdiv. (40) re coordination of strategies re technology-based talent and innovation among certain agencies, the Connecticut Small Business Innovation Research Office and power to be transferred to CTNext, redesignated existing Subdivs. (23) to (27) as Subdivs. (22) to (26), existing Subdivs. (29) to (39) as Subdivs. (27) to (37) and existing Subdivs. (41) to (45) as Subdivs. (38) to (42) and changed “subdivision (41)” to “subdivision (38)” in redesignated Subdiv. (40), effective July 1, 2024.

Cited. 167 C. 111.

Secs. 32-39a and 32-39b. Powers re investments during early stage of ventures. Powers re financial aid for marketing innovative services. Sections 32-39a and 32-39b are repealed.

(P.A. 86-255, S. 1; P.A. 88-154, S. 2, 3; P.A. 89-245, S. 20.)

Sec. 32-39c. Limitation on liability of Connecticut Innovations, Incorporated and certain officers with respect to affiliates of the corporation. (a) With respect to any affiliate created pursuant to section 32-39, liability shall be limited solely to the assets and revenues or other resources of any such affiliate and without recourse liability to Connecticut Innovations, Incorporated, its other funds or any other assets of the corporation, except to the extent of any express written guarantees by the corporation or any investments made or committed to by the corporation.

(b) The provisions of sections 32-47 and 1-125 shall apply to any officer, director, designee or employee serving at the request of the corporation as a member, director or officer or advisor of any such affiliate. Any such person so appointed shall not be personally liable for the debts, obligations or liabilities of any such affiliate as provided in said section 1-125. Any affiliate shall and the corporation may provide the indemnification to protect, save harmless and indemnify such officer, director, designee or employee as provided in said section 1-125.

(P.A. 98-203, S. 5, 13.)

History: P.A. 98-203 effective June 8, 1998.

Sec. 32-39d. Guarantees of corporation made investment securities. Guarantees issued by Connecticut Innovations, Incorporated, and all equity instruments and obligations, any of which include a guarantee of a return of capital or principal by the corporation, under the provisions of this chapter, are hereby made securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, state banks and trust companies, national banking associations, savings banks, savings and loan associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such instruments and obligations are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state is now or may hereafter be authorized by law.

(P.A. 98-203, S. 6, 13.)

History: P.A. 98-203 effective June 8, 1998.

Sec. 32-39e. Development of new or experimental technologies, products or processes. Procurement for state agencies. Program to recognize state agencies. (a) If, in the exercise of its powers under section 32-39, Connecticut Innovations, Incorporated (1) finds that the use of a certain technology, product or process (A) would promote public health and safety, environmental protection or economic development, or (B) with regard to state services, would promote efficiency, reduce administrative burdens or otherwise improve such services, and (2) determines such technology, product or process was developed by a business (A) domiciled in this state to which the corporation has provided financial assistance or in which the corporation has invested, or (B) which has been certified as a small contractor or minority business enterprise by the Commissioner of Administrative Services under section 4a-60g, the corporation, upon application of such business, may recommend to the Secretary of the Office of Policy and Management that an agency of the state, including, but not limited to, any constituent unit of the state system of higher education, be authorized to test such technology, product or process by employing it in the operations of such agency on a trial basis. The purpose of such test program shall be to validate the commercial viability of such technology, product or process provided no business in which Connecticut Innovations, Incorporated has invested shall be required to participate in such program.

(b) Connecticut Innovations, Incorporated shall make no such recommendation unless such business has submitted a viable business plan to Connecticut Innovations, Incorporated for manufacturing and marketing such technology, product or process and such business demonstrates that (1) the usage of such technology, product or process by the state agency will not adversely affect safety, (2) sufficient research and development has occurred to warrant participation in the test program, (3) the technology, product or process has potential for commercialization not later than two years following the completion of any test program involving a state agency under this section, and (4) such technology, product or process will have a positive economic impact in the state, including the prospective addition of jobs and economic activity upon such commercialization.

(c) If the Secretary of the Office of Policy and Management finds that employing such technology, product or process would be feasible in the operations of a state agency and would not have any detrimental effect on such operations, said secretary, notwithstanding the requirement of chapter 58, may direct an agency of the state to accept delivery of such technology, product or process and to undertake such a test program. The Secretary of the Office of Policy and Management, in consultation with the Commissioner of Administrative Services, the chief executive officer of Connecticut Innovations, Incorporated and the department head of the testing agency, shall determine, on a case-by-case basis, whether the costs associated with the acquisition and use of such technology, product or process by the testing agency shall be borne by Connecticut Innovations, Incorporated, the business or by any investor or participant in such business. The acquisition of any technology, product or process for purposes of the test program established pursuant to this section shall not be deemed to be a purchase under the provisions of the state procurement policy. The testing agency, on behalf of Connecticut Innovations, Incorporated shall maintain records related to such test program, as requested by Connecticut Innovations, Incorporated and shall make such records and any other information derived from such test program available to Connecticut Innovations, Incorporated and the business. Any proprietary information derived from such test program shall be exempt from the provisions of subsection (a) of section 1-210.

(d) If the Secretary of the Office of Policy and Management, in consultation with the Commissioner of Administrative Services, the chief executive officer of Connecticut Innovations, Incorporated and the department head of the testing agency, determines that the test program sufficiently demonstrates that the technology, product or process promotes public health and safety, environmental protection, economic development or efficiency, reduces administrative burdens or otherwise improves state services, the Commissioner of Administrative Services may procure such technology, product or process for use by any or all state agencies pursuant to subsection (b) of section 4a-58.

(e) The Secretary of the Office of Policy and Management, the Commissioner of Administrative Services and Connecticut Innovations, Incorporated may develop a program to recognize state agencies that help to promote public health and safety, environmental protection, economic development or efficiency, reduce administrative burdens or improve state services by participating in a testing program under this section. Such program may include the creation of a fund established with savings accrued by the testing agency during its participation in the testing program established under this section. Such fund shall only be used to implement the program of recognition established by the Secretary of the Office of Policy and Management, the Commissioner of Administrative Services and Connecticut Innovations, Incorporated, under the provisions of this subsection.

(P.A. 99-223, S. 1, 3; P.A. 21-76, S. 14.)

History: P.A. 99-223 effective June 29, 1999; P.A. 21-76 amended Subsec. (a) by designating existing provisions as Subdivs. (1) and (2), designating existing provision as Subpara.(A) and adding Subpara.(B) re state services in Subdiv. (1), adding “determines” and designating existing provision as Subpara.(A) and adding Subpara. (B) re certification as small contractor or minority business enterprise in Subdiv. (2), adding reference to constituent units, changing “directed” to “authorized”, designated a portion of existing Subsec. (a) as Subsec. (b) and amending the same by making technical changes, adding references to Connecticut Innovations, Incorporated, deleting former Subdiv. (1) re manufacturing or producing in this state, redesignating existing Subdivs. (2) to (4) as Subdivs. (1) to (3) and adding new Subdiv. (4) re positive economic impact, redesignated existing Subsec. (b) as Subsec. (c) and amended same by adding provision re determination by Secretary of the Office of Policy and Management, Commissioner of Administrative Services, chief executive officer and department head, added Subsec. (d) re procurement for use by state agencies, redesignated existing Subsec. (c) as Subsec. (e) and amended same by adding references to the Commissioner of Administrative Services and “or efficiency, reduce administrative burdens or improve state services”, and made technical and conforming changes effective July 1, 2021.

Sec. 32-39f. Definitions. Use of funds available in CTNext Fund. (a) As used in this section and sections 32-39g, 32-39i, 32-39k to 32-39o, inclusive, 32-39t, 32-39x and 32-39y, unless the context otherwise requires:

(1) “Anchor institution” means an entity having a significant and stable presence in the community, including, but not limited to, an institution of higher education, hospital, major corporation, research institution, business incubator or business accelerator;

(2) “Commissioner” means the Commissioner of Economic and Community Development;

(3) “Department” means the Department of Economic and Community Development;

(4) “Designated innovation place” means an area designated as an innovation place pursuant to section 32-39m;

(5) “Entity” means a corporation, association, partnership, limited liability company, benefit corporation, nonprofit organization, municipality, institution of higher education or any other similar entity;

(6) “Growth stage business” means a business (A) that has been incorporated for ten years or less, (B) that has raised private capital, and (C) whose annual gross revenue has increased by twenty per cent for each of the three preceding income years of such business;

(7) “Innovation entity” means an entity whose application for innovation place designation is approved by the commissioner pursuant to section 32-39m;

(8) “Innovation place” has the same meaning as described in section 32-39k;

(9) “Master plan” means the plan submitted to the commissioner pursuant to subsection (c) of section 32-39l;

(10) “Municipality” means any town, city, consolidated town and city or consolidated town and borough;

(11) “New Haven Line” means the rail passenger service operated between New Haven and intermediate points and Grand Central Station, including the Danbury, Waterbury and New Canaan branch lines;

(12) “Public transit” means the New Haven Line, Shore Line East, the New Haven-Hartford-Springfield rail line and the New Britain to Hartford busway and any planned expansion of such busway; and

(13) “Shore Line East” means the rail service operating between New Haven and New London.

(b) The department may use any funds available in the CTNext Fund established under section 32-39i for the following purposes:

(1) To foster and oversee the growth and continuous improvement of a state-wide entrepreneurial ecosystem and infrastructure that is supportive of Connecticut innovators and entrepreneurs and to initiate changes to practices that the commissioner deems to be outdated to improve such ecosystem and infrastructure;

(2) To maintain an active and conspicuous presence at all nodes of such ecosystem and infrastructure and continuously increase connections between such nodes;

(3) To regularly reassess the health of such ecosystem and infrastructure, identify their changing needs, adopt initiatives or adapt existing initiatives to meet such needs and regularly inform the General Assembly of such needs by proposing recommended legislation deemed necessary or desirable by the commissioner;

(4) To support the growth of start-up and growth stage businesses;

(5) To promote entrepreneur community-building;

(6) To connect start-up and growth stage business entrepreneurs with other start-up and growth stage business entrepreneurs and with state, federal and private resources;

(7) To facilitate the establishment of innovation places and incubator facilities and the development, growth and evolution of innovation places and incubator facilities individually and in mutually supportive connections to other innovation places and incubator facilities;

(8) To facilitate mentorship for start-up and growth stage business entrepreneurs;

(9) To provide technical training and resources to start-up and growth stage businesses and entrepreneurs;

(10) To facilitate innovation and entrepreneurship at institutions of higher education; and

(11) To identify areas in which current practices and policies at such institutions of higher education are not realizing their full potential.

(May Sp. Sess. P.A. 16-3, S. 1; P.A. 17-212, S. 3; P.A. 18-178, S. 46; June Sp. Sess. P.A. 21-2, S. 246; P.A. 24-149, S. 5.)

History: May Sp. Sess. P.A. 16-3 effective June 2, 2016; P.A. 17-212 made technical changes in Subsec. (b), effective July 10, 2017; P.A. 18-178 substantially amended Subsec. (a) including by designating existing provisions re purposes of CTNext as Subdivs. (1) and (2), adding provisions re state-wide entrepreneurial ecosystem, adopting and adapting initiatives, informing the General Assembly, supporting growth of start-up and growth stage businesses, promoting entrepreneur community-building, facilitating development, growth and evolution of innovation places, and identifying areas in which current practices and policies at institutions are not realizing their full potential, and adding Subdiv. (3) re CTNext to do all things necessary and proper to carry out purposes of Subdivs. (1) and (2), designating existing provisions re CTNext not an employer as Subdiv. (4), amended Subsec. (c) by deleting provision re first meeting of the board, and adding provision re chairperson of the board, and chief executive officer of Connecticut Innovations, Incorporated to remain member of board, and amended Subsec. (j) by adding provision notwithstanding the general statutes, replacing “complies with all applicable provisions of chapter 10, except as provided in this subsection” with “shall abstain from deliberation, action or vote by the board in specific respect to such person, firm or corporation”, and made technical and conforming changes, effective July 1, 2018; June Sp. Sess. P.A. 21-2 amended Subsec. (b) by replacing “eleven” with “twelve” re members and “a majority” with “at least half” re serial entrepreneurs, and adding reference to Chief Workforce Officer and making conforming changes in Subdiv. (9), effective July 1, 2021; P.A. 24-149 amended Subsec. (a) to delete provision in introductory language re establishment of CTNext, add new Subdivs. (1) to (4) defining “anchor institution”, “commissioner”, “department” and “designated innovation place”, add Subdivs. (5) to (13) defining “entity”, “growth stage business”, “innovation entity”, “innovation place”, “master plan”, “municipality”, “New Haven Line”, “public transit” and “Shore Line East”, redesignate existing Subsec. (a)(1) as Subsec. (b)(1) to (3) and existing Subsec. (a)(2) as Subsec. (b)(4) to (11), delete former Subsec. (a)(3) re CTNext do all things to carry out purposes and delete former Subsec. (a)(4) re CTNext not an employer, added new Subsec. (b) re CTNext Fund may be used for certain purposes, replaced references to “CTNext board of directors” with references to “commissioner” in redesignated Subsec. (b)(1) and (3), deleted provision re primary purpose of CTNext in redesignated Subsec. (b)(1), added references to infrastructure in redesignated Subsec. (b)(1) to (3), deleted provision re further purposes of CTNext in redesignated Subsec. (b)(4), changed “growth stage entrepreneurs” to “growth stage business entrepreneurs” in redesignated Subsec. (b)(6) and (8), added references to incubator facilities in redesignated Subsec. (b)(7), added “of higher education” in redesignated Subsec. (b)(11), deleted former Subsecs. (b) to (h) and (j) re CTNext board of directors and deleted former Subsec. (i) re continuation and termination of CTNext and made technical and conforming changes throughout, effective July 1, 2024.

Sec. 32-39g. Powers of the commissioner for certain purposes. For the purposes enumerated in subsection (b) of section 32-39f, the commissioner may:

(1) Make and enter into all contracts and agreements necessary or incidental to the performance of the commissioner's duties and the execution of the commissioner's powers under this section, including contracts and agreements for such professional services as the commissioner deems necessary, including, but not limited to, financial consultant and technical specialists;

(2) Account for and audit funds of the department and funds of any recipients of funds from the department;

(3) Establish advisory committees to provide counsel and advice on the discharge of the commissioner's duties under this section;

(4) Serve as a resource to start-up and growth stage business entrepreneurs in this state by (A) providing counseling and technical assistance in the areas of entrepreneurial business planning and management, financing and marketing for start-up and growth stage businesses; and (B) conducting business workshops, seminars and conferences with local partners, including, but not limited to, in-state public and independent institutions of higher education, municipal governments, regional economic development districts, private industry, chambers of commerce, small business development organizations and economic development organizations;

(5) Facilitate partnerships between innovative start-up and growth stage businesses, research institutions and venture capitalists or financial institutions;

(6) Increase the quantity and availability of capital for start-up and growth stage businesses and entrepreneurs including, but not limited to, angel investors and venture capitalists;

(7) Promote technology-based development in the state;

(8) Encourage and promote the establishment of and, within available resources, provide financial aid to advanced technology centers;

(9) Maintain an inventory of data and information concerning state and federal programs that are related to the purposes of this section and serve as a clearinghouse and referral service for such data and information;

(10) Promote and encourage and, within available resources, provide financial aid for the establishment, maintenance and operation of incubator facilities and innovation places;

(11) Promote and encourage the coordination of public and private resources and activities within the state in order to assist technology-based business entrepreneurs and business enterprises;

(12) Promote science, engineering, mathematics and other disciplines that are essential to the development and application of technology;

(13) Coordinate the department's efforts with existing business outreach centers, as described in section 32-9qq;

(14) Provide financial aid to persons developing smart buildings, as defined in section 32-23d, incubator facilities or other information technology intensive office and laboratory space;

(15) Coordinate the development and implementation of strategies regarding technology-based talent and innovation among state and quasi-public agencies, including the creation and administration of the Connecticut Small Business Innovation Research Office to act as a centralized clearinghouse and provide technical assistance to applicants in developing small business innovation research programs in conformity with the federal program established pursuant to the Small Business Research and Development Enhancement Act of 1992, P.L. 102-564, as amended from time to time, and other proposals;

(16) Encourage the retention of younger generation start-up entrepreneurs in the state;

(17) Promote entrepreneurship among students, faculty and alumni of institutions of higher education;

(18) Make planning grants to entities seeking to apply for innovation place designation pursuant to section 32-39l, provided each such entity demonstrates that its proposed innovation place meets the purposes set forth in section 32-39k;

(19) Encourage and promote the establishment of business accelerators;

(20) Make higher education entrepreneurship grants-in-aid recommended by the Higher Education Entrepreneurship Advisory Committee pursuant to section 32-39t;

(21) Implement the provisions of section 32-39x;

(22) Designate innovation places pursuant to sections 32-39k to 32-39m, inclusive;

(23) Establish a program to provide growth grants-in-aid to businesses in this state for the purposes of facilitating the growth of start-up businesses that have transitioned to growth stage businesses. The department shall establish an application process for such grants-in-aid and shall prioritize such grants-in-aid for uses most likely to facilitate the growth of such businesses, including, but not limited to, sales assistance, marketing, strategy, organizational development, technology assistance, bid assistance, beta testing of products for new purchasers and prototype development. Such grants-in-aid shall not exceed twenty-five thousand dollars per applicant and shall be conditioned upon a one-third match from the applicant; and

(24) Do all acts and things necessary or convenient to carry out the purposes of this section and the powers expressly granted by this section.

(May Sp. Sess. P.A. 16-3, S. 2; P.A. 17-56, S. 4; P.A. 18-178, S. 47; P.A. 24-22, S. 43; 24-149, S. 6.)

History: May Sp. Sess. P.A. 16-3 effective June 2, 2016; P.A. 17-56 amended Subsec. (b)(4) by replacing “Board of Regents for Higher Education” with “Connecticut State Colleges and Universities”, effective June 20, 2017; P.A. 18-178 amended Subsec. (a) by adding new Subdiv. (24) re state-wide service hub, adding Subdiv. (25) re implementation of provisions of Sec. 32-39x, and redesignating existing Subdiv. (24) as Subdiv. (26), effective July 1, 2018; P.A. 24-22 amended Subsec. (b)(4) by replacing “president of the Connecticut State Colleges and Universities” with “chancellor of the Connecticut State Colleges and Universities”, effective July 1, 2024; P.A. 24-149 redesignated existing Subsec. (a)(3) as Subdiv. (1), existing Subsec. (a)(5) to (23) as Subdivs. (2) to (20), existing Subsec. (a)(25) as Subdiv. (21), existing Subsec. (b)(5) as Subdiv. (22) and existing Subsec. (b)(7) as Subdiv. (23), replaced reference to Sec. 32-39f(a) with reference to Sec. 32-39f(b) and “CTNext is authorized and empowered to” with “the commissioner may” in redesignated introductory language, deleted former Subsec. (a)(1)(A) re employees, personnel practices and policies and consultants, attorneys and appraisers, deleted former Subsec. (a)(2) re receiving and accepting grants and contributions, replaced “CTNext” with “the commissioner” in redesignated Subdiv. (1), deleted former Subsec. (a)(4) re procuring insurance, replaced references to “CTNext” with references to “the department” in redesignated Subdiv. (2), changed “to assist in accomplishing its” to “to provide counsel and advice on the discharge of the commissioner's” and deleted provision re members and persons other than members of CTNext board of directors in redesignated Subdiv. (3), changed “growth stage entrepreneurs” to “growth stage business entrepreneurs” in redesignated Subdiv. (4), added reference to innovation places in redesignated Subdiv. (10), replaced “its” with “the department's” in redesignated Subdiv. (13), deleted provision re establishment of satellite of major national business accelerator in redesignated Subdiv. (19), deleted former Subsec. (a)(24) re state-wide service hub, deleted former Subsec. (a)(26) re all acts and things necessary or convenient to carry out purposes of and powers granted by the section, deleted former Subsec. (b)(1) to (4) re CTNext developing plan to facilitate certain relationships, creating and publicizing Internet web site and advising on certain matters, replaced “32-39j” with “32-39k” in redesignated Subdiv. (22), deleted former Subsec. (b)(6) re innovation and entrepreneurship marketing plan, replaced “CTNext” with “The department” in redesignated Subdiv. (23), added Subdiv. (24) re all acts and things necessary or convenient to carry out purposes of and powers granted by the section, deleted former Subsec. (b)(8) re connecting certain entrepreneurs with certain resources, deleted former Subsec. (b)(9) re program evaluation and measurement process and made technical and conforming changes throughout, effective July 1, 2024.

Sec. 32-39h. CTNext. Procedures. Section 32-39h is repealed, effective July 1, 2024.

(May Sp. Sess. P.A. 16-3, S. 3; P.A. 24-149, S. 21.)

Sec. 32-39i. CTNext Fund established. Uses. (a) For the purposes of this section, “administrator” means Connecticut Innovations, Incorporated in its capacity as administrator of the CTNext Fund established pursuant to this section.

(b) There is established a CTNext Fund, to be held, administered, invested and disbursed by the administrator. The fund shall contain any moneys required or permitted by law to be deposited in the fund, returns on loans or investments, recoveries of grants-in-aid made from the fund and moneys received from any public or private contributions, gifts, grants, donations, bequests or devises to the fund. Any balance remaining in the fund shall be carried forward in the fund for the fiscal year next succeeding.

(c) Any return on investment attributable to the investment of the fund by the administrator shall be deposited and held for the use and benefit of the fund. Moneys in or received for the fund may be deposited with and invested by any institution as may be designated by the administrator at its sole discretion and paid as the administrator shall direct. The administrator may make payments from deposit and investment accounts for use in accordance with the provisions of this section.

(d) The CTNext Fund shall not be deemed an account within the General Fund and shall be used exclusively for the purposes provided in this section.

(e) The CTNext Fund may be used (1) to provide grants-in-aid to innovation entities, as defined in section 32-39f, pursuant to section 32-39m, (2) to provide planning grants-in-aid to entities pursuant to section 32-39l, (3) to initiate projects or provide grants-in-aid to projects that network innovation places pursuant to section 32-39m, (4) for the purposes enumerated in sections 32-39f and 32-39g, (5) for providing higher education entrepreneurship grants-in-aid pursuant to section 32-39g, (6) to provide growth grants-in-aid pursuant to section 32-39g, (7) to terminate the operations and activities of CTNext, (8) to pay to employees of CTNext any reasonable and appropriate severance compensation that was approved by the former CTNext board of directors prior to July 1, 2024, and (9) for any other purposes expressly provided by law.

(f) All expenditures from the CTNext Fund shall be approved by the commissioner. Any such approval shall be specific to an individual expenditure to be made or for budgeted expenditures with such variations as the commissioner may authorize at the time of such budget approval.

(g) Connecticut Innovations, Incorporated shall provide any necessary staff, office space, office systems and administrative support for the administration of the CTNext Fund in accordance with this section. In acting as administrator of the fund, the administrator shall have and may exercise all of the powers of Connecticut Innovations, Incorporated set forth in section 32-39, provided expenditures from the fund shall be approved by the commissioner pursuant to subsection (f) of this section.

(May Sp. Sess. P.A. 16-3, S. 4; P.A. 24-149, S. 7.)

History: May Sp. Sess. P.A. 16-3 effective June 2, 2016; P.A. 24-149 amended Subsec. (b) to add “, returns on loans or investments, recoveries of grants-in-aid made from the fund”, change “and any moneys received” to “and moneys received” and make a technical change, amended Subsec. (c) to add “and investment”, amended Subsec. (e) to replace “shall” with “may” in the introductory language, “32-39j” with “32-39f” in Subdiv. (1), provision re providing grants-in-aid for program evaluations with provision re terminating CTNext in Subdiv. (7) and provision re providing grants-in-aid to start-up businesses with provision re paying severance compensation in Subdiv. (8), amended Subsecs. (f) and (g) to replace references to “CTNext board of directors” with references to “commissioner”, deleted former Subsec. (h) re plan and budget and deleted former Subsec. (i) re report, effective July 1, 2024.

Sec. 32-39j. Definitions. Section 32-39j is repealed, effective July 1, 2024.

(May Sp. Sess. P.A. 16-3, S. 5; P.A. 17-212, S. 4; P.A. 24-149, S. 21.)

Sec. 32-39k. Innovation place program. Purposes. The commissioner may establish an innovation place program within the department. If such program is established, the purpose of such program shall be to (1) foster innovation and entrepreneurship by facilitating the designation and establishment of innovation places consisting of one or more compact geographic areas within the same municipality having entrepreneurial and innovation potential where (A) existing anchor institutions, institutions, companies and recreational spaces are in close proximity to start-up and growth stage businesses, (B) public transit is accessible, (C) a significant portion of the underlying zoning allows for mixed-use development, including, but not limited to, housing, office and retail, and (D) foot traffic is facilitated; (2) identify, designate and fund the initial costs associated with development of an innovation place; (3) encourage collaboration among institutions of higher education, medical institutions, hospitals, existing companies, start-up and growth stage businesses, researchers and investors; (4) encourage the leveraging of private investment in designated innovation places; and (5) connect entrepreneurs who are facing similar opportunities and challenges with other entrepreneurs and with private and public resources.

(May Sp. Sess. P.A. 16-3, S. 6; P.A. 24-149, S. 8.)

History: May Sp. Sess. P.A. 16-3 effective July 1, 2016; P.A. 24-149 replaced “There is established” with “The commissioner may establish”, “CTNext. The” with “the department. If such program is established, the” and “is” with “shall be”, effective July 1, 2024.

Sec. 32-39l. Planning grants-in-aid. Innovation place designation. Applications. Public hearing. (a) Connecticut Innovations, Incorporated may post on its Internet web site an application form, prescribed by Connecticut Innovations, Incorporated, for planning grants-in-aid awarded pursuant to subsection (b) of this section. If posted, such application form shall state that applications for planning grants-in-aid shall be submitted to the commissioner.

(b) Any entity may submit an application for a planning grant-in-aid to the commissioner. In addition to the initial round of applications, the commissioner may accept such applications for consideration, on a schedule and in accordance with deadlines prescribed by the commissioner, until the total amount authorized under this subsection has been awarded. The commissioner may extend the deadline for a planning grant-in-aid for up to sixty days. The commissioner may award planning grants-in-aid to applicants in an amount up to fifty thousand dollars per applicant. Such planning grants-in-aid shall be proportionate to the anticipated grant-in-aid described in section 32-39m. The total of all planning grants-in-aid awarded to applicants in the aggregate shall not exceed five hundred thousand dollars. A planning grant-in-aid awarded pursuant to this section shall be used by an entity for the preparation of an application for innovation place designation.

(c) Any entity may submit an application for innovation place designation to the commissioner. In addition to the initial round of applications, the commissioner may accept such applications for consideration, on a schedule and in accordance with deadlines prescribed by the commissioner. Such applications shall be submitted on a form prescribed by the commissioner and shall contain sufficient information to establish that the proposed innovation place is suitable for the purposes set forth in section 32-39k.

(1) Such application shall include: (A) Information concerning the proposed geographical boundaries of the proposed innovation place, including, but not limited to, a map indicating the boundaries of the geographic areas within the municipality that make up the proposed innovation place; (B) information concerning at least two anchor institutions located within the geographical boundaries of the proposed innovation place and how such anchor institutions have agreed to participate in the development of and activities within the proposed innovation place; (C) a summary of existing and proposed transportation-related infrastructure within and around the geographical areas within the municipality that make up the proposed innovation place; (D) a summary of existing and proposed businesses, recreational facilities, public parks and any other public or private gathering spaces located within the geographical areas within the municipality that make up the proposed innovation place; (E) information concerning the walkability of the geographical areas within the municipality that make up the proposed innovation place; (F) a master plan for the development of the proposed innovation place, including a plan for connecting the geographic areas within the municipality that make up the proposed innovation place to public transit via rail or bus, a plan for leveraging private investment and a proposed budget and timeline for use of any moneys granted by the commissioner. Such budget shall indicate priority for the expenditure of grant funds in the event that moneys granted are insufficient to cover the costs of the entire proposed budget; (G) a list of municipal and state legislative action that may be required for the execution of such master plan; (H) a letter of support from the chief elected official of the municipality where the innovation place is proposed that shall include a statement that the legislative body of such municipality has, by majority vote, indicated its support for the proposed innovation place and for any municipal legislative action recommended in the master plan, provided a chief elected official may only submit a letter of support for one proposed innovation place located within the municipality; (I) letters of support from private investors; (J) information concerning consistency with the state plan of conservation and development adopted pursuant to chapter 297; and (K) information concerning the capability of the applicant and other entities partnering with the applicant to implement and administer the master plan and how such partners will be involved in the implementation of such plan.

(2) A master plan may include, but need not be limited to, (A) plans for: (i) Attracting and directing support to start-up and growth stage businesses; (ii) development, in collaboration with private partners, of a business incubator, coworking space, business accelerator or public meeting space; (iii) events and community building; (iv) marketing and outreach; (v) open space improvement; (vi) housing development; (vii) improvement of technology infrastructure, including, but not limited to, broadband improvement; (viii) bicycle paths; and (ix) attracting anchor institutions, and (B) community letters of support from persons or entities other than the applicant.

(d) The commissioner may screen all applications submitted to the commissioner pursuant to subsection (c) of this section and may select therefrom a limited number of finalist applicants. The commissioner shall hold at least one public hearing on each application submitted by a finalist applicant. Such hearing shall be held in the municipality where the proposed innovation place is to be located and shall consist of a presentation by the applicant finalist on its proposal and a public comment period. The commissioner shall conduct a site walk of the geographic areas within the municipality that make up the proposed innovation place submitted by an applicant finalist. The commissioner shall give appropriate notice of such hearing. The notice shall (1) state the time and place of the hearing to be held not fewer than ten days after the date of such notice, and (2) be posted in a conspicuous place in or near the office of the town clerk for the municipality where the proposed innovation place is to be located and posted on the Internet web site of such municipality, if available. Applicants may submit revised applications to the commissioner based on public comments received at such hearing.

(May Sp. Sess. P.A. 16-3, S. 7; P.A. 17-244, S. 1; P.A. 18-122, S. 4; P.A. 21-111, S. 93; P.A. 24-149, S. 9.)

History: May Sp. Sess. P.A. 16-3 effective July 1, 2016; P.A. 17-244 amended Subsec. (b) to delete references to dates for submission of applications for planning grants-in-aid and awarding of planning grants-in-aid and add provision re acceptance of applications in addition to initial round, and amended Subsec. (c) to delete reference to date for submission of applications for innovation place designations and add provision re acceptance of applications in addition to initial round, effective July 1, 2017; P.A. 18-122 made a technical change in Subdiv. (c)(2), effective June 7, 2018; P.A. 21-111 amended Subsec. (a) to delete “On or before July 1, 2016,”, effective July 1, 2022; P.A. 24-149 replaced references to “CTNext board” and “board” with references to “commissioner” throughout, amended Subsec. (a) to replace “shall” with “may” and change “Such” to “If posted, such” and amended Subsec. (d) to change “shall screen” to “may screen”, “submitted to it” to “submitted to the commissioner” and “shall select” to “may select” and delete “chairperson of the”, effective July 1, 2024.

Sec. 32-39m. Innovation place designation applications approval. Award of grants-in-aid. Considerations. Report. (a) Through the innovation place program described in section 32-39k, the commissioner may:

(1) Review and evaluate applications for innovation place designation submitted by entities pursuant to section 32-39l.

(2) (A) Approve applications for innovation place designation and designate such approved applications as an innovation place. Such approval may include modifications to an application, agreed to by the applicant, as a condition for approval thereof. If no such application meets the purposes set forth in section 32-39k or the criteria set forth in this subdivision, the commissioner shall not approve any application for innovation place designation. Preference shall be given to applicants having (i) diverse partners, including, but not limited to, anchor institutions, (ii) partnerships with entities located within the proposed innovation place, and (iii) substantial private funding for expenses associated with the development of the proposed innovation place in relation to the amount of grant moneys requested.

(B) Award grants-in-aid to innovation entities, within available funds, for the allowable grant expenses set forth in an agreement described in this subparagraph. Prior to awarding any such grant-in-aid, the commissioner shall (i) enter into an agreement with any such innovation entity concerning allowable grant expenses and the submission of an annual financial audit of grant expenditures to the commissioner until all grant moneys have been expended by the innovation entity, provided any such audit shall be prepared by an independent auditor; (ii) confirm that a significant portion of the underlying zoning of the proposed innovation place allows for mixed-use development, including, but not limited to, housing, office and retail; and (iii) confirm that no portion of a grant-in-aid awarded to an innovation entity be given to an entity that is not part of the master plan for the innovation place. If the commissioner finds that any such grant-in-aid awarded is being used for purposes that are not in conformity with the expenses allowed pursuant to this section, the commissioner may require repayment of such grant-in-aid.

(C) No application may be designated as an innovation place by the commissioner unless such application (i) is consistent with the purposes set forth in section 32-39k, (ii) is for a proposed innovation place where a significant portion of such proposed innovation place is located in an existing or proposed mixed-use zoning district, (iii) was prepared in collaboration with the local chamber of commerce or other industry association and the municipal economic development department, or similar municipal authority, of the municipality in which the proposed innovation place is located, and (iv) is approved by majority vote of the legislative body of the municipality in which the proposed innovation place is to be located.

(D) In determining whether to approve an application for innovation place designation, the commissioner shall consider, but such consideration shall not be limited to: (i) Whether the entities partnering together to implement and administer the proposed master plan are of the quality to, and have demonstrated the commitment to, implement and administer the master plan in a manner sufficient to achieve the purposes set forth in section 32-39k; (ii) whether the geography of the proposed innovation place is sufficiently compact to achieve the purposes set forth in section 32-39k; (iii) whether the master plan is sufficient to achieve the purposes set forth in section 32-39k and whether such plan includes (I) sufficient measures to ensure walkability of the geographic areas within the municipality that make up the proposed innovation place; (II) sufficient measures to enhance regular interpersonal interactions among residents, workers and visitors of the proposed innovation place; (III) adequate and accessible public transportation; and (IV) existing or proposed restaurants, affordable housing options, retail spaces and public spaces, indoor or outdoor, that provide adequate opportunity for interpersonal interaction; (iv) the extent to which the master plan leverages private investment; (v) self-sustainability of the innovation place after moneys granted by the commissioner are fully expended; (vi) whether the underlying zoning of the proposed innovation place provides for, or will be amended to provide for, reduced minimum floor area for residential dwelling units; and (vii) any other criteria the commissioner determines is relevant for evaluating whether the proposed innovation place, if granted innovation place designation, will achieve the purposes set forth in section 32-39k.

(E) The commissioner shall report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to commerce and finance, revenue and bonding on or before September thirtieth annually, regarding the grants-in-aid distributed pursuant to this section and concerning the operation and effectiveness of the innovation place program.

(3) Publicize and post on the department's Internet web site the deadline for applications for innovation place designation pursuant to section 32-39l.

(b) Through the innovation place program described in section 32-39k, the commissioner may initiate projects or provide grants-in-aid to entities for projects that network innovation places designated as such pursuant to subsection (a) of this section with one another.

(May Sp. Sess. P.A. 16-3, S. 8; P.A. 21-111, S. 94; P.A. 24-149, S. 10.)

History: May Sp. Sess. P.A. 16-3 effective July 1, 2016; P.A. 21-111 amended Subsec. (a)(2)(E) by changing “September 30, 2017, and on or before July first annually thereafter until September 30, 2020” to “September thirtieth annually”, effective July 1, 2021; P.A. 24-149 replaced references to “CTNext board” and “board” with references to “commissioner” throughout, amended Subsec. (a) to replace “established pursuant to” with “described in” and “shall” with “may” in the introductory language and “its” with “the department's” in Subdiv. (3) and amended Subsec. (b) to replace “established pursuant to” with “described in”, effective July 1, 2024.

Sec. 32-39n. Venture or investment agreements entered into by Connecticut Innovations, Incorporated. Notwithstanding any provision of the general statutes, any venture agreement, investment agreement or other similar agreement entered into by Connecticut Innovations, Incorporated on or after June 2, 2016, shall involve one or more private partners, except any such agreement involving the Connecticut Bioscience Innovation Fund or a winner of Venture Clash, the annual business competition conducted by Connecticut Innovations, Incorporated.

(May Sp. Sess. P.A. 16-3, S. 13.)

History: May Sp. Sess. P.A. 16-3 effective June 2, 2016.

Sec. 32-39o. Forgiveness of received state assistance for participation in mentorship network. The Commissioner of Economic and Community Development may forgive a portion of any state assistance received by a technology-based business and owed to the state if such business participates in a mentorship network established by the department. The commissioner shall develop a formula to calculate such state assistance forgiveness based on the hours of mentorship provided by any such business.

(May Sp. Sess. P.A. 16-3, S. 15; P.A. 24-149, S. 11.)

History: May Sp. Sess. P.A. 16-3 effective June 2, 2016; P.A. 24-149 replaced “CTNext” with “the department”, effective July 1, 2024.

Sec. 32-39p. Connecticut 500 Project. Goals. Solicitation of bids. Section 32-39p is repealed, effective July 1, 2023.

(May Sp. Sess. P.A. 16-3, S. 20; P.A. 23-204, S. 444.)

(May Sp. Sess. P.A. 16-3, S. 25–27; P.A. 24-149, S. 21.)

Sec. 32-39t. Higher Education Entrepreneurship Advisory Committee. Membership. Applications. Recommendation of approval. (a) The commissioner may establish a Higher Education Entrepreneurship Advisory Committee within the department. If established, such committee shall consist of members appointed by the commissioner, including, but not limited to: (1) An equal number of representatives of public and private institutions of higher education; (2) one baccalaureate student representative; (3) one graduate student representative; (4) one high school student who shall be a nonvoting member; and (5) three serial entrepreneurs having experience as an entrepreneur in residence at an institution of higher education. Such members shall be subject to term limits prescribed by the commissioner. Each member appointed by the commissioner shall hold office until a successor is appointed. For the purposes of this section, “serial entrepreneur” means an entrepreneur having brought one or more start-up businesses to venture capital funding by an institutional investor.

(b) The advisory group shall select chairpersons of the advisory group during its initial meeting. The advisory committee shall meet not less than quarterly after its initial meeting and at such other times as the chairperson deems necessary.

(c) No member of the advisory committee shall receive compensation for such member's service, except that each member shall be entitled to reimbursement for actual and necessary expenses incurred during the performance of such member's official duties.

(d) A majority of members of the advisory committee shall constitute a quorum for the transaction of any business or the exercise of any power of the advisory committee. The advisory committee may act by a majority of the members present at any meeting at which a quorum is in attendance, for the transaction of any business or the exercise of any power of the advisory committee, except as otherwise provided in this section.

(e) Every member of the advisory committee shall be deemed a member of an advisory board for purposes of chapter 10.

(f) Any institution of higher education, or partnership of one or more institutions of higher education, may submit an application for a higher education entrepreneurship grant-in-aid to the advisory committee, on a form prescribed by the advisory committee.

(g) The advisory committee may review applications for grants-in-aid submitted to it pursuant to this section. The advisory committee may recommend approval of any such application to the commissioner. For any such application reviewed by the advisory committee, the advisory committee shall give priority for grants-in-aid to applications (1) including collaborative initiatives between institutions of higher education, and (2) supporting individual institutions of higher education to develop alumni mentor networks, entrepreneurs-in-residence programs, university proof of concept funds and student business start-up accelerators, when such individual institutions demonstrate that such networks, programs, funds and accelerators are not feasible for operation across multiple institutions of higher education.

(May Sp. Sess. P.A. 16-3, S. 28; June Sp. Sess. P.A. 17-2, S. 134; P.A. 19-154, S. 4; P.A. 24-149, S. 12.)

History: June Sp. Sess. P.A. 17-2 substantially amended Subsec. (e) including by deleting provisions re conflict of interest, adherence to code of ethics and statement of financial interest and adding provisions re member deemed member of advisory board for purposes of Ch. 10, effective October 31, 2017; P.A. 19-154 amended Subsec. (g) by designating existing provision re collaborative initiatives between institutions of higher education as Subdiv. (1) and adding Subdiv. (2) re supporting individual institutions of higher education to develop certain programs, effective July 1, 2019; P.A. 24-149 amended Subsec. (a) to replace “There shall be” with “The commissioner may establish”, replace “CTNext” with “the department”, change “Such” to “If established, such”, replace references to “CTNext board of directors” and “CTNext board” with references to “commissioner”, delete provision re initial appointments shall be made not later than June 1, 2017, and add “appointed by the commissioner”, amended Subsec. (b) to delete provision re executive director of CTNext shall call first meeting not later than June 15, 2017, change “during such meeting” to “during its initial meeting” and replace “thereafter” with “after its initial meeting” and amended Subsec. (g) to change “shall review” to “may review”, replace “CTNext board of directors” with “commissioner”, delete provision re determination that application is consistent with and in furtherance of master plan for entrepreneurship at institutions of higher education and change “The” to “For any such application reviewed by the advisory committee, the”, effective July 1, 2024.

(May Sp. Sess. P.A. 16-3, S. 29, 30; P.A. 17-164, S. 1; P.A. 24-149, S. 21.)

Sec. 32-39x. Entrepreneurs-in-Residence program. Proof of concept fund. (a) The commissioner may establish and operate an Entrepreneurs-in-Residence program that may replace and incorporate any similar program run by the department prior to July 1, 2018. Such program may identify highly experienced entrepreneurs who have been involved in the successful creation of innovation-based start-up companies and early-state venture deals and retain their services to match them with entrepreneurs and companies in the department's network to provide advice and assistance. Such retention may be on a paid or volunteer basis, as agreed to by the entrepreneur-in-residence and the commissioner, except that an employee of the department who serves as an entrepreneur-in-residence shall serve on a voluntary basis.

(b) The commissioner may establish jointly with the chief executive officer of Connecticut Innovations, Incorporated a proof of concept fund to make investments or provide grants of up to one hundred thousand dollars to support commercialization activities that are relevant to key industries in the state. Preference may be given to (A) such activities that are based on research conducted at institutions of higher education in the state, (B) making investments in companies involved in such research or commercialization efforts, or (C) both. Such investments or grants shall be awarded on a competitive basis and any applicant for an investment or a grant under this subdivision shall demonstrate, in a form and manner prescribed by the executive director in consultation with the chief executive officer, such applicant's intent to commercialize aspects of such research. A grant under this subdivision may be awarded directly to the applicant or to a company involved in such research or commercialization efforts.

(P.A. 18-178, S. 48; P.A. 24-149, S. 13.)

History: P.A. 18-178 effective July 1, 2018; P.A. 24-149 replaced references to “executive director of CTNext” with references to “commissioner” throughout and amended Subsec. (a) to replace references to “CTNext” with references to “the department”, change references to “CTNext network” to references to “department's network” and replace references to “CTNext board of directors” with references to “commissioner”, effective July 1, 2024.

Sec. 32-39y. Bond authorization. Proceeds used for purposes of CTNext Fund. (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate twenty million two hundred thousand dollars.

(b) The proceeds of the sale of such bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by (1) the Department of Economic and Community Development for an economic feasibility study of certain lands in Trumbull in the fiscal year commencing July 1, 2021, and (2) by CTNext, or the Department of Economic and Community Development as a successor agency to CTNext, for the CTNext Fund established under section 32-39i and for the purposes described in said section.

(c) All provisions of section 3-20, or the exercise of any right or power granted thereby, that are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section. Temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of such bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization that is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Such bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

(P.A. 21-111, S. 92; P.A. 24-151, S. 29.)

History: P.A. 21-111 effective July 1, 2021; pursuant to P.A. 24-149, the term “CTNext” was changed editorially by the Revisors to “the Department of Economic and Community Development” in Subsec. (b)(1), effective July 1, 2024; P.A. 24-151 amended Subsec. (a) to decrease aggregate authorization from $64,200,000 to $20,200,000, eliminate provision that $13,500,000 be effective July 1, 2025, and make technical changes and amended Subsec. (b) to delete purpose re innovation place program, revise requirement re use of proceeds for CTNext Fund and add provision re Department of Economic and Community Development as successor agency to CTNext, effective July 1, 2024.

Sec. 32-40. Applications for financial aid. (a) All applications for financial aid shall be forwarded, together with an application fee prescribed by the corporation, to the chief executive officer of the corporation. Each such application shall be processed in accordance with the written procedures adopted by the corporation under subdivision (5) of subsection (d) of section 32-35. The board of directors or a duly constituted committee thereof shall approve or deny each application recommended by the chief executive officer. If the board of directors or any such committee approves an application, the board or such committee may authorize the corporation to enter into an agreement or agreements on behalf of the corporation to provide financial aid to the applicant. The applicant shall be promptly notified of such action by the corporation.

(b) In making the decision as to approval or denial of an application, the board or any committee of the board shall give priority to those applicants (1) whose businesses are defense-dependent, or are located in municipalities which the Commissioner of Economic and Community Development has declared have been severely impacted by prime defense contract cutbacks pursuant to section 32-56, and (2) whose proposed research and development activity, technology, product or invention is to be used to convert all or a portion of the applicant's business to non-defense-related industrial or commercial activity, or to create a new non-defense-related industrial or commercial business. For purposes of this section, a defense-dependent business is any business that derives over fifty per cent of its gross income, generated from operations within the state, from prime defense contracts or from subcontracts entered into in connection with prime defense contracts, a significant portion of whose facilities and equipment are designed specifically for defense production and cannot be converted to nondefense uses without substantial investment.

(c) All financial and credit information and all trade secrets contained in any application for financial aid submitted to the corporation or obtained by the corporation concerning any applicant, project, activity, technology, product or invention shall be exempt from the provisions of subsection (a) of section 1-210.

(d) Notwithstanding the provisions of subsections (a) and (b) of this section, the board of directors may delegate to staff of the corporation the authority to approve any application for financial aid filed pursuant to this section for not more than five hundred thousand dollars, provided (1) such application is processed in accordance with the written procedures adopted by the corporation under subdivision (5) of subsection (d) of section 32-35, and (2) the sum of the financial aid requested in such application and the total amount of financial aid awarded to the applicant by the corporation during the preceding twelve-month period does not exceed five hundred thousand dollars.

(1972, P.A. 248, S. 9; P.A. 77-77; P.A. 80-267, S. 3; P.A. 89-245, S. 13; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; 96-264, S. 5, 8; June 12 Sp. Sess. P.A. 12-1, S. 173; P.A. 13-115, S. 1; P.A. 22-97, S. 1.)

History: P.A. 77-77 deleted provision requiring payment of commitment fee as condition of approval of application for financial aid; P.A. 80-267 included dependency upon defense contracts as factor to be considered in approval of financial aid and added provisions granting priority to defense-dependent companies as specified; P.A. 89-245 changed president to executive director, made certain technical changes, added provisions re review of application by the technical peer review committee, added provisions re approval of applications and award of financial aid by the finance committee, and added provisions re exemption of financial and credit information and trade secrets from Sec. 1-19(a); 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; P.A. 96-264 divided section into Subsecs. and amended Subsec. (a) to require each application to be processed in accordance with written procedures adopted by corporation under Sec. 32-35(d)(5), replacing prior procedures for processing applications, to require finance committee to approve or deny each application “recommended by the executive director” and to authorize the corporation, instead of the finance committee, to enter into agreement with an applicant whose application has been approved by the finance committee, effective July 1, 1996; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (a) to replace “executive director” with “chief executive officer” and replace “finance committee of the corporation” with “board of directors or a duly constituted committee thereof”, and made conforming changes in Subsecs. (a) and (b), effective July 1, 2012; P.A. 13-115 added Subsec. (d) re staff approval of applications for not more than $150,000 of financial aid, effective July 1, 2013; P.A. 22-97 amended Subsec. (d) by replacing “one hundred fifty thousand dollars” with “five hundred thousand dollars”.

Cited. 167 C. 111.

Sec. 32-40a. Advanced technology centers; purposes. Applications to Connecticut Innovations, Incorporated for state funding. Any advanced technology center, as defined in section 32-34, shall be established for purposes of conducting research characterized by reasonable prospects of stimulating development of new business and industry utilizing such advanced technology and augmenting the application of advanced technology by existing business and industry in the state. Connecticut Innovations, Incorporated, hereinafter referred to as “the corporation” shall require any applicant for state funding with respect to a proposed advanced technology center to submit a complete description of the organization of such center, plans for research and proposed funding from sources other than the state of Connecticut, subject to the provisions of section 32-40c, including but not limited to the following:

(1) The specific technological research to be undertaken and the proposed business and industry involvement in the development and application of such research;

(2) A detailed description of the organization of such center for administrative and research purposes, including (A) name and qualifications of the person to serve as director of the center and (B) a proposed advisory board for such center which shall include members from the academic institution involved and private business;

(3) Proposed arrangements with the corporation, concerning financial benefits to the state of Connecticut as a result of patents, royalty payments or similar rights developing from research at such center; and

(4) Details concerning the organization and content of an annual report to be submitted to the corporation by such center reviewing the progress of research, with the understanding that funding shall be contingent upon satisfactory performance evaluations.

(P.A. 91-388, S. 2, 7.)

Sec. 32-40b. State funding for advanced technology centers; considerations in approval process by Connecticut Innovations, Incorporated. In approving the application of an advanced technology center, as defined in section 32-34, for state funding, Connecticut Innovations, Incorporated, shall assess scientific, economic, management and financial factors, including, but not limited to the following:

(1) The likelihood that the research proposal will result in fundamental technological advances transferable to commercial application and the means that the center proposes to make these transfers;

(2) The potential of the research proposal to stimulate technological advances in existing businesses, new business creation and long-term job growth in Connecticut;

(3) Evidence of significant financial commitment by academic and industrial participants and the likelihood that the center will become self-sufficient by the end of the state's financial commitment period;

(4) Evidence that the state will receive a financial return commensurate with its investment in the center;

(5) The level of representation by all financial participants in the center's proposed management structure;

(6) The planned involvement of small businesses and academic institutions in the center's activities;

(7) The center's plan to involve minority students and minority-owned businesses in its activities; and

(8) The adequacy of the center's proposed mechanisms for evaluating its progress.

(P.A. 91-388, S. 3, 7.)

Sec. 32-40c. State funding for any advanced technology center to be approved only when funds from other sources are at least equal to the state funds. Funds from the state of Connecticut for purposes of any advanced technology center, as defined in section 32-34, shall not be allotted for such purpose unless documentation, satisfactory to the Secretary of the Office of Policy and Management, has been submitted to Connecticut Innovations, Incorporated, certifying that such funds are accepted in accordance with a plan of proposed funding for such advanced technology center during a period of five years, commencing with the year of the initial state grant for such purpose. Such proposed funding shall include, in addition to the proposed amounts from the state of Connecticut, funds from other sources in an amount not less than the total proposed funds from the state during such five-year period.

(P.A. 91-388, S. 4, 7.)

Sec. 32-41. Bond issue. The State Bond Commission shall have power in accordance with the provisions of section 3-20 to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate forty-seven million eight hundred fifty-four thousand nine hundred dollars to carry out the purposes of sections 32-32 to 32-41, inclusive. The principal and interest of said bonds shall be payable at such place or places as may be determined by the State Treasurer and shall bear such date or dates, mature at such time or times, bear interest at such rate or different or varying rates, be payable at such time or times, be in such denominations, be in such form with or without interest coupons attached, carry such registration and transfer privileges, be payable in such medium of payment and be subject to such terms of redemption with or without premium as, irrespective of the provisions of said section 3-20, may be provided by the authorization of the State Bond Commission or fixed in accordance therewith. The proceeds of the sale of such bonds, after deducting therefrom all expenses of issuance and sale, shall be paid to the Connecticut Innovations, Incorporated Fund created under section 32-41a. When the State Bond Commission has acted to issue such bonds or a portion thereof, the Treasurer may, pending the issue of such bonds, issue, in the name of the state, temporary notes in anticipation of the money to be received from the sale of such bonds. In issuing the bonds authorized hereunder, the State Bond Commission may require repayment of such bonds by the corporation as shall seem desirable consistent with the purposes of sections 32-32 to 32-41, inclusive. Such terms for repayment may include a forgiveness of interest, a holiday in the repayment of interest or principal or both.

(1972, P.A. 248, S. 10; P.A. 79-476, S. 2; S.A. 80-41, S. 66, 68; P.A. 82-369, S. 15, 28; P.A. 83-492, S. 8, 11; P.A. 84-443, S. 12, 20; P.A. 85-558, S. 15, 17; P.A. 86-396, S. 20, 25; P.A. 87-405, S. 19, 26; P.A. 88-343, S. 15, 32; P.A. 89-245, S. 14; 89-331, S. 24, 30; P.A. 90-297, S. 18, 24; June Sp. Sess. P.A. 91-4, S. 20, 25; May Sp. Sess. P.A. 92-7, S. 22, 36; June Sp. Sess. P.A. 93-1, S. 18, 45; P.A. 95-272, S. 16, 29; P.A. 98-203, S. 9, 13; P.A. 00-167, S. 64, 69.)

History: P.A. 79-476 required payment of bond proceeds to Connecticut product development corporation fund rather than to the corporation; S.A. 80-41 reduced bond limit from $10,000,000 to $6,000,000; P.A. 82-369 increased bond authorization to $7,000,000; P.A. 83-492 increased bond authorization to $11,000,000; P.A. 84-443 increased authorization limit to $13,000,000; P.A. 85-558 increased bond authorization limit to $15,000,000; P.A. 86-396 increased bond authorization to $17,500,000; P.A. 87-405 increased the bond authorization to $19,250,000; P.A. 88-343 increased the bond authorization to $22,250,000; P.A. 89-245 changed Connecticut Product Development Corporation Fund to Connecticut Innovations, Incorporated Fund; P.A. 89-331 increased the bond authorization to $26,250,000; P.A. 90-297 increased the bond authorization to $28,250,000; June Sp. Sess. P.A. 91-4 increased the bond authorization to $33,250,000; May Sp. Sess. P.A. 92-7 increased the bond authorization to $38,250,000; June Sp. Sess. P.A. 93-1 increased bond authorization to $48,250,000, effective July 1, 1993, provided $5,000,000 of said authorization shall be effective July 1, 1994; P.A. 95-272 increased authorization to $58,250,000, effective July 1, 1995, provided $50,000,000 shall be effective July 1, 1996; P.A. 98-203 decreased the bond authorization to $48,250,000 and deleted an obsolete reference to previously authorized funds, effective June 8, 1998; P.A. 00-167 decreased the aggregate bond authorization to $47,854,900, effective July 1, 2000.

Cited. 167 C. 111.

Sec. 32-41a. Connecticut Innovations, Incorporated Fund. Use of funds or revenues of the corporation. (a) There is hereby created a “Connecticut Innovations, Incorporated Fund”. Proceeds from the sale of bonds authorized by the State Bond Commission in accordance with section 32-41 and section 32-41b shall be paid directly to the Treasurer of the state as agent of the corporation and the Treasurer shall deposit all such amounts in the Connecticut Innovations, Incorporated Fund. The moneys in said fund shall be paid by checks signed by the Treasurer of the state or by his deputy appointed pursuant to section 3-12 on requisition of the chief executive officer of the corporation or his designee.

(b) Any funds or revenues of Connecticut Innovations, Incorporated derived from application fees, royalty payments, investment income, sale and disposition of investments, license fees, lease payments, application, commitment or financing fees, loan repayments or any other source received by the corporation in connection with its programs shall, subject to the applicable terms of any indenture, resolution or other agreement pursuant to which notes, bonds or other obligations of the corporation or its predecessor, the Connecticut Development Authority, were issued or of any pledge or assignment of such funds or revenues granted in connection therewith, be held, administered and invested by the corporation or deposited with and invested by any institution as may be designated by the corporation at its sole discretion and paid as the corporation shall direct. All moneys in such accounts shall be used and applied to carry out the purposes of the corporation. Any such funds, revenues or other income which are pledged or assigned for the benefit of holders of notes, bonds or other obligations of the corporation, shall be received, administered, held, invested and applied subject to and in accordance with the applicable terms of the indenture, resolution or other agreement pursuant to which such notes, bonds or other obligations were issued or such pledge or assignment granted. Any such funds, revenues or other income of the corporation not so pledged or assigned, and any such funds, revenues or other income of the corporation remaining after all covenants relating to any such pledge or assignment have been satisfied, shall be deemed unrestricted funds of the corporation. The corporation may make payments from such accounts to the Treasurer of the state for deposit in the Connecticut Innovations, Incorporated Fund for use in accordance with subsection (c) of this section.

(c) The moneys in the Connecticut Innovations, Incorporated Fund (1) shall be used to carry out the purposes of the corporation and for the repayment of state bonds in such amounts as may be required by the State Bond Commission pursuant to said section 32-41 and section 32-41b and (2) may be used as state matching funds for federal funds available to the state for defense conversion projects or other projects consistent with a defense conversion strategy.

(P.A. 79-476, S. 1; P.A. 83-492, S. 10, 11; P.A. 84-408, S. 1, 2; P.A. 87-273, S. 2; P.A. 89-245, S. 15; P.A. 94-95, S. 12; P.A. 95-78, S. 3, 5; June 12 Sp. Sess. P.A. 12-1, S. 178.)

History: P.A. 83-492 inserted references to funds authorized in accordance with Sec. 32-41b; P.A. 84-408 divided section into Subsecs. and added provisions relative to use of funds outside of the Connecticut Product Development Corporation Fund as Subsec. (b); P.A. 87-273 amended Subsec. (b) to authorize the corporation to invest funds in any institution at its sole discretion; P.A. 89-245 changed Connecticut Product Development Corporation Fund to Connecticut Innovations, Incorporated Fund, changed president to executive director and made certain technical changes; P.A. 94-95 in Subsec. (b) eliminated the requirement that the moneys in the account be held and invested; P.A. 95-78 added Subsec. (c)(2), authorizing use of fund moneys to match federal defense conversion funds, effective July 1, 1995; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (a) to replace “executive director” with “chief executive officer”, amended Subsec. (b) to add provision re funds received through sale and disposition of investments, license fees, lease payments, applications, commitment or financing fees or other source, add provision re terms of indenture, resolution or agreement pursuant to which notes, bonds or other obligations were issued by the corporation or its predecessor, and add provisions re funds, revenues or other income pledged or assigned for the benefit of holders of notes, bonds or other obligations of the corporation, effective July 1, 2012.

Sec. 32-41b. Bond issue for high technology products. Loan interest rates. The State Bond Commission shall have power in accordance with the provisions of section 3-20 to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate sixty-one million four hundred forty-five thousand six hundred dollars, to carry out the purposes of this section as follows: (1) Loans for the development and marketing of products in the high technology field within the state, not exceeding thirty-four million dollars; (2) royalty financing for start-up costs and product development costs of high technology products and procedures in the state, not exceeding seven million four hundred forty-five thousand six hundred dollars; and (3) financial aid for biotechnology and other high technology laboratories, facilities and equipment, not exceeding twenty million dollars. Any loans originated under subdivision (1) of this section shall bear interest at a rate to be determined in accordance with subsection (t) of said section 3-20. The principal and interest of said bonds shall be payable at such place or places as may be determined by the State Treasurer and shall bear such date or dates, mature at such time or times, bear interest at such rate or different or varying rates, be payable at such time or times, be in such denominations, be in such form with or without interest coupons attached, carry such registration and transfer privileges, be payable in such medium of payment and be subject to such terms of redemption with or without premium as, irrespective of the provisions of said section 3-20, may be provided by the authorization of the State Bond Commission or fixed in accordance therewith. The proceeds of the sale of said bonds, after deducting therefrom all expenses of issuance and sale, shall be paid to the Connecticut Innovations, Incorporated Fund created under section 32-41a. When the State Bond Commission has acted to issue such bonds or a portion thereof, the Treasurer may, pending the issue of such bonds, issue, in the name of the state, temporary notes in anticipation of the money to be received from the sale of such bonds. In issuing the bonds authorized hereunder, the State Bond Commission may require repayment of such bonds by the corporation as shall seem desirable consistent with the purposes of this section and section 32-41a. Such terms for repayment may include a forgiveness of interest, a holiday in the repayment of interest or principal or both.

(P.A. 83-492, S. 9, 11; P.A. 84-443, S. 13, 20; P.A. 85-558, S. 16, 17; P.A. 86-396, S. 21, 25; P.A. 87-405, S. 20, 26; 87-416, S. 23, 24; P.A. 88-343, S. 16, 32; P.A. 89-245, S. 16; 89-331, S. 25, 30; P.A. 90-297, S. 19, 24; June Sp. Sess. P.A. 91-4, S. 21, 25; May Sp. Sess. P.A. 92-7, S. 23, 36; June Sp. Sess. P.A. 93-1, S. 19, 45; P.A. 95-272, S. 17, 29; June 5 Sp. Sess. P.A. 97-1, S. 17, 20; P.A. 98-203, S. 10, 13.)

History: P.A. 84-443 increased authorization limit from $3,000,000 to $5,500,000 including an increase from $1,000,000 to $1,500,000 for loans under Subdiv. (a) and from $2,000,000 to $4,000,000 for royalty financing under Subdiv. (b); P.A. 85-558 increased the bond authorization limit to $8,700,000, including increases to $3,000,000 under Subdiv. (a) and to $5,700,000 under Subdiv. (b); P.A. 86-396 increased bond authorization to $10,200,000 and increased Subdiv. (a) total to $4,000,000 and Subdiv. (b) total to $6,200,000; P.A. 87-405 increased the bond authorization to $11,950,000 and increased Subdiv. (a) total to $4,500,000 and Subdiv. (b) total to $7,450,000; P.A. 87-416 provided that the interest rates on loans under Subdiv. would be determined in accordance with Sec. 3-20(t); P.A. 88-343 increased the bond authorization to $13,950,000 and increased Subdiv. (a) total to $6,500,000; P.A. 89-245 changed Connecticut Product Development Corporation Fund to Connecticut Innovations, Incorporated Fund; P.A. 89-331 increased the total bond authorization to $17,450,000 and increased the Subdiv. (1)(former (a)) total to $10,000,000; P.A. 90-297 increased the bond authorization to $21,450,000 and increased the Subdiv. (1) total to $14,000,000; June Sp. Sess. P.A. 91-4 increased the bond authorization to $26,450,000 and in Subdiv. (1) increased amount not to be exceeded for loans for the developing and marketing of products in the high technology field within the state to $19,000,000; May Sp. Sess. P.A. 92-7 increased the bond authorization to $31,450,000 and increased the Subdiv. (1) total $24,000,000; June Sp. Sess. P.A. 93-1 increased aggregate bond authorization to $41,450,000, increased bond authorization in Subdiv. (1) to $34,000,000, effective July 1, 1993, and provided in each case that $5,000,000 of said authorizations shall be effective July 1, 1994; P.A. 95-272 increased authorization to $51,450,000, provided $5,000,000 shall be effective July 1, 1996, and amended Subdiv. (1) to increase amount to $44,000,000, provided $5,000,000 shall be effective July 1, 1996, effective July 1, 1995; June 5 Sp. Sess. P.A. 97-1 decreased bond authorization to $51,445,600, effective July 31, 1997; P.A. 98-203 increased the aggregate bond authorization under this section to $61,445,600, deleted an obsolete reference to previously authorized funds, decreased authorization for high technology products to $34,000,000 and provided a new authorization of $20,000,000 for financial aid to certain technology companies, effective June 8, 1998.

Secs. 32-41c to 32-41f. Reserved for future use.

Sec. 32-41g. Short title: Technology Deployment Act of 1993. Sections 32-41g to 32-41o, inclusive, shall be known and may be cited as the “Technology Deployment Act of 1993”.

(P.A. 93-382, S. 30, 69.)

History: P.A. 93-382 effective July 1, 1993.

Sec. 32-41h. Legislative finding. It is hereby found and declared that the deployment of advanced available technologies in Connecticut manufacturing is vital to the economic interests of the state, that advanced basic research continues to be a strong asset of state institutions of higher education, but there is a special need to strengthen links between basic research and the creation and efficient manufacture of new or improved products, especially in the critical technologies in which the state possesses unique scientific and human resources, and therefore it is necessary and in the public interest and for the public good that the provisions of sections 32-41g to 32-41o, inclusive, are hereby declared a matter of legislative determination.

(P.A. 93-382, S. 31, 69.)

History: P.A. 93-382 effective July 1, 1993.

Sec. 32-41i. Definitions. As used in sections 32-41g to 32-41o, inclusive:

(1) “Act” means the Technology Deployment Act of 1993;

(2) “Advanced available technology” means a technology or process that can be applied to a manufacturing operation without substantial modification;

(3) “Technology deployment” means (A) activities that assist businesses in applying advanced available technologies in their existing operations or (B) activities that assist businesses in the development and manufacture of new products derived from advanced available technologies;

(4) “Corporation” means Connecticut Innovations, Incorporated;

(5) “Eligible institution” means an institution within the Connecticut State University System which is operating a technology deployment program on July 1, 1993;

(6) “Eligible deployment research consortium” means a multitown, nonprofit coalition which is representative of the business, academic and government communities in an economically distressed area of the state which on or before July 1, 1993, is dependent upon labor intensive, less technologically advanced manufacturing;

(7) “Eligible business consortium” means a nonprofit business-led consortium organized for the purpose of technology deployment in the fields of biotechnology, ergonomics, environmental and energy technologies or educational and job training technologies;

(8) “Eligible grant recipient” means one or more state institutions of higher education or a nonprofit business-led consortium organized for the purpose of technology deployment in advanced materials, marine sciences, photonics, pharmaceutical and environmental technologies;

(9) “Small and medium-sized business” means a manufacturing business with fewer than five hundred employees.

(P.A. 93-382, S. 32, 69.)

History: P.A. 93-382 effective July 1, 1993.

Sec. 32-41j. Manufacturing application center program. (a) There is established a university-based manufacturing application center program to be administered by the corporation for the purpose of promoting technology deployment by linking Connecticut's higher education system with small and medium-sized businesses. During the three-month period beginning on July 1, 1993, the corporation shall accept applications from eligible institutions in a form and manner prescribed by the corporation for state funding for the operation of a manufacturing application center.

(b) On or before January 1, 1994, the corporation shall review all applications timely received pursuant to this section and shall approve one such application. In approving such application the corporation shall assess scientific and economic factors concerning the proposed manufacturing application center, including but not limited to the following:

(1) The eligible institution's experience with manufacturing applications, including computer-integrated manufacturing, computer-aided drafting and design, just-in-time manufacturing and total quality management;

(2) The center's plan to provide follow-up employee training to center users;

(3) The center's plan to involve urban-based businesses, minority students or minority-owned businesses in its activities; and

(4) The adequacy of the center's proposed mechanisms for evaluating its progress.

(c) The center's responsibilities shall include, but not be limited to, providing training for manufacturing businesses in high performance work practices.

(P.A. 93-382, S. 33, 69; P.A. 94-116, S. 9, 28.)

History: P.A. 93-382 effective July 1, 1993; P.A. 94-116 added Subsec. (c) re training in high performance work practices, effective July 1, 1994.

Sec. 32-41k. Deployment research program. (a) There is established a nonprofit deployment research program to be administered by the corporation for the purpose of identifying emerging advanced available technologies in economically distressed manufacturing or former manufacturing regions of the state. During the six-month period beginning on July 1, 1993, the corporation shall accept applications from eligible deployment research consortia in a form and manner prescribed by the corporation for state funding for technology deployment research.

(b) On or before July 1, 1994, the corporation shall review all applications timely received pursuant to this section and shall approve one such application. In approving such application the corporation shall assess scientific and economic factors concerning the proposed technology deployment research, including but not limited to the following:

(1) The extent to which the research will identify advanced available technologies for future deployment;

(2) The extent to which the research enhances existing manufacturing in Connecticut industry;

(3) The eligible research consortium's plan to involve minority students or minority owned businesses in its activities; and

(4) The adequacy of the eligible research consortium's proposed mechanisms for evaluating its progress.

(c) The center's responsibilities shall include, but not be limited to, providing training for businesses in high performance work practices.

(P.A. 93-382, S. 34, 69; P.A. 94-116, S. 10, 28.)

History: P.A. 93-382 effective July 1, 1993; P.A. 94-116 added Subsec. (c) re training in high performance work practices, effective July 1, 1994.

Sec. 32-41l. Energy and environmental technologies deployment center program. (a) There is established a Connecticut energy and environmental technologies deployment center program to be administered by the corporation for the purpose of promoting a nonprofit business consortium for technology deployment in two critical technologies where the state possesses unique scientific and human resources. During the three-month period beginning on July 1, 1993, the corporation shall accept applications from eligible business consortia in a form and manner prescribed by the corporation for state funding for the operation of an energy and environmental technologies application center.

(b) On or before January 1, 1994, the corporation shall review all applications timely received pursuant to this section and shall approve one such application. In approving such application the corporation shall assess scientific and economic factors concerning the proposed Connecticut energy and environmental technologies deployment center, including but not limited to the following:

(1) Participation in the center by multiple private enterprises including defense and non-defense-based firms with an expertise in environmental and energy technologies;

(2) Participation in the center by more than one public or private institution of higher education;

(3) The center's plan to involve minority students or minority-owned businesses in its activities; and

(4) The adequacy of the center's proposed mechanisms for evaluating its progress.

(P.A. 93-382, S. 35, 69.)

History: P.A. 93-382 effective July 1, 1993.

Sec. 32-41m. Connecticut educational and job training technologies deployment center programs. (a) There is established a Connecticut educational and job training technologies deployment center program to be administered by the corporation for the purpose of promoting a nonprofit business-led consortium for technology deployment in a critical technology in which the state possesses unique scientific and human resources. During the three-month period beginning on July 1, 1993, the corporation shall accept applications from eligible business consortia in a form and manner prescribed by the corporation for state funding for the operation of an educational and job training technologies deployment center.

(b) On or before January 1, 1994, the corporation shall review all applications timely received pursuant to this section and shall approve one such application. In approving such application the corporation shall assess scientific and economic factors concerning the proposed Connecticut educational and job training technologies deployment center, including but not limited to the following:

(1) The center's plan to provide educational and job training technologies to industry, the state's public schools, and state agencies;

(2) The center's plan to deploy educational and job training software, hardware and state of the art telecommunications technologies;

(3) The center's plan to involve minority students or minority-owned businesses in its activities; and

(4) The adequacy of the center's proposed mechanisms for evaluating its progress.

(P.A. 93-382, S. 36, 69.)

History: P.A. 93-382 effective July 1, 1993.

Sec. 32-41n. Critical technologies grant program. (a) There is established a critical technologies grant program to be administered by the corporation for the purpose of promoting technology deployment in advanced materials, marine sciences, photonics, pharmaceutical and environmental technologies. During the twelve-month period beginning on July 1, 1993, the corporation shall accept applications from eligible grant recipients in a form and manner prescribed by the corporation for state grants for the purpose of promoting technology deployment in such technologies.

(b) On or before January 1, 1995, the corporation shall review all applications timely received pursuant to this section, may approve such applications and provide approved grant recipients such financial assistance as it may determine will promote technology deployment in advanced materials, marine sciences, photonics, pharmaceutical and environmental technologies. In approving such application the corporation shall assess scientific and economic factors concerning the uses of the proposed grant, including but not limited to the following:

(1) The formal participation in the program proposed by businesses actively engaged in the commercial use of advanced materials, marine sciences, photonics, pharmaceutical and environmental technologies;

(2) The likelihood that the program proposed will result in substantial and timely deployment of advanced available technologies in one or more of the following: Advanced materials, marine sciences, photonics, pharmaceutical and environmental technologies;

(3) The proposal's plan to involve minority students or minority-owned businesses in its activities; and

(4) The adequacy of the program's mechanisms for evaluating its progress.

(P.A. 93-382, S. 37, 69.)

History: P.A. 93-382 effective July 1, 1993.

Sec. 32-41o. Bond issue for technology deployment. (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate five million five hundred thousand dollars.

(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 corporation as follows: (1) Three million dollars for the program established in section 32-41j; (2) five hundred thousand dollars for the program established in section 32-41k; (3) one million two hundred fifty thousand dollars for the program established and for the eligible business consortium approved in section 32-41l; and (4) seven hundred fifty thousand dollars for the program established and for the eligible business consortium approved in section 32-41m.

(c) All provisions of section 3-20, or the exercise of any right or power granted thereby which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due.

(P.A. 93-382, S. 38, 69; P.A. 95-272, S. 18, 29.)

History: P.A. 93-382 effective July 1, 1993; P.A. 95-272 amended Subsec. (a) to increase authorization from $5,000,000 to $5,500,000, Subsec. (b)(3) to increase amount from $1,000,000 to $1,250,000 and Subsec. (b)(4) to increase amount from $500,000 to $750,000 and made technical changes, effective July 1, 1995.

Sec. 32-41p. Workplace center of excellence program. (a) There is established a workplace center of excellence program to be administered by Connecticut Innovations, Incorporated for the purpose of developing and deploying ergonomic technology solutions and knowledge. During the three-month period beginning on July 1, 1994, the corporation shall accept applications from eligible institutions in a form and manner prescribed by the corporation for state funding for the establishment and operation of a workplace center of excellence.

(b) On or before January 1, 1995, the corporation shall review all applications timely received pursuant to this section, approve one such application and provide the approved institution with such financial assistance as the corporation may determine will promote the purposes of this section. In approving such application the corporation shall assess scientific and economic factors concerning the proposed center, including but not limited to, the following:

(1) The formal participation in, and financial support of, the center by employers, insurers, and enterprises actively engaged in developing and deploying ergonomics solutions and related activities;

(2) The likelihood that the center will result in substantial and timely deployment of advanced technology solutions to existing businesses in the state;

(3) The center's plan to involve employers, labor, institutions of higher education and other interested parties in its decision-making;

(4) The adequacy of the center's financial plan, including the matching of any state grant funds to implement specific projects with at least an equal amount of funding from private sources;

(5) The center's plan to involve urban residents and urban-based businesses; and

(6) The adequacy of the center's mechanisms for evaluating its progress.

(P.A. 94-45, S. 2, 3.)

History: P.A. 94-45 effective July 1, 1994.

Sec. 32-41q. Critical industries development account. Purpose. Regulations. (a) As used in this section “critical industry” means an industry that uses emerging technologies, including but not limited to, fuel cell technology, to develop and manufacture nondefense products for future sale, has the potential to create or retain jobs in the state and is critical to the state economy.

(b) There is established an account to be known as the critical industries development account, which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys invested pursuant to the provisions of this section. Connecticut Innovations, Incorporated may use funds from the account to provide loans, loan guarantees, interest rate subsidies and other forms of loan assistance to customers of businesses in critical industries which businesses are based in the state. Connecticut Innovations, Incorporated may solicit and receive funds from any public and private sources for the program. Such funds may include, without limitation, federal funds, state bond proceeds, private venture capital and investments by persons, firms or corporations. Private capital investments may be made either in the account as a whole or in one or more individual technologies or projects.

(c) No product may receive assistance under this section unless its manufacturer agrees to enter into a contract to: (1) Carry out a specified percentage of the development and manufacturing work for the product in the state; and (2) when subcontracting is required, to conduct a specified percentage of such work with companies based in the state. Connecticut Innovations, Incorporated shall determine such percentage for the purposes of this program.

(d) Any person who, or firm or corporation which, invests funds in the critical industries development account pursuant to this section shall receive a portion of the interest paid and principal repayment by the recipient of the loan in proportion to the ratio of the amount of the investment of such person, firm or corporation to the total loan amount.

(e) The Commissioner of Economic and Community Development may adopt regulations in accordance with the provisions of chapter 54 to carry out the purposes of this section.

(P.A. 95-250, S. 1; 95-288, S. 1, 2; P.A. 96-211, S. 1, 5, 6; 96-264, S. 7, 8; P.A. 97-295, S. 12, 25; P.A. 98-262, S. 14, 22.)

History: P.A. 95-288 effective July 1, 1995 (Revisor's Note: P.A. 95-250 and P.A. 96-211 authorized substitution of “Commissioner of Economic and Community Development” for “Commissioner of Economic Development”); P.A. 96-264 included fuel cell technology industries in definition of “critical industry”, effective July 1, 1996; P.A. 97-295 deleted former Subsec. (d) re tax credit for funds invested in account and redesignated existing Subsec. (e) and (f) as Subsecs. (d) and (e), effective July 8, 1997, and applicable to income years commencing on or after January 1, 1998; P.A. 98-262 revised effective date of P.A. 97-295, but without affecting this section.

Sec. 32-41r. Short title: Economic Recovery Act of 1996. This section, section 32-40, subsection (a) of section 32-41q, and sections 32-41s, 32-229 and 32-450 shall be known and may be cited as the “Economic Recovery Act of 1996”.

(P.A. 96-264, S. 1, 8; P.A. 08-162, S. 2.)

History: P.A. 96-264 effective July 1, 1996; P.A. 08-162 deleted reference to Sec. 32-285(k), effective June 12, 2008.

Sec. 32-41s. Bioscience, biotechnology, pharmaceutical and photonics businesses. Benefits. Regulations. (a) As used in this section:

(1) “Bioscience” means the study of genes, cells, tissues and chemical and physical structures of living organisms;

(2) “Eligible business” means a business which (A) has not more than three hundred employees at any time during the preceding twelve months, and (B) is engaged in bioscience, biotechnology, pharmaceutical or photonics research, development or production in the state; and

(3) “Eligible commercial property” means (A) real or personal property which an eligible business has (i) owned or leased, and (ii) utilized at all times during the preceding twelve months, or (B) real property which the Commissioner of Economic and Community Development or Connecticut Innovations, Incorporated has certified as newly constructed or substantially renovated and expanded primarily for occupancy by one or more eligible businesses.

(b) On and after July 1, 2010, eligible businesses and eligible commercial property located in (1) the city of Hartford; (2) census block groups 090034601001, 090034601009, 090034602014 and 090034602022 in the town of Farmington; (3) census blocks 090034602021011, 090034602021012, 090034602021013, 090034602021014, 090034602021015, 090034602021017, 090034602021018, 090034602021019, 090034602021020, 090034602021021, 090034602021022, 090034602021023, 090034602021024 and 090034602021025 in the town of Farmington; (4) census block groups 090034165005 and 090034165006 in the city of New Britain; (5) census blocks 90034164001000, 90034164001001, 90034164001002, 90034164004004, 90034164004005, 90034164004006 and 90034164001009 in the city of New Britain; (6) census tracts 09003417500, 09003416000, 09003416100, 09003416700, 09003416800, 09003417400, 09003417200, 09003417300 and 09003415700 in the city of New Britain; (7) census tracts 09003405100, 09003405400 and 09003406100 in the city of Bristol; (8) fifty-three acres of property zoned Technology Park within census tract 420700, block 9000 in the town of Plainville; (9) forty acres of raw land zoned Restricted Industrial within census tract 420400, block group 1000 in the town of Plainville; (10) thirty-five acres of raw land zoned Restricted Industrial within census tract 420500, block 3000 in the town of Plainville; or (11) any municipality which has (A) a major research university with programs in bioscience, biotechnology, pharmaceuticals or photonics, and (B) an enterprise zone, shall be entitled to the same benefits, subject to the same conditions, under the general statutes for which businesses located in an enterprise zone qualify.

(c) Connecticut Innovations, Incorporated may provide lease guarantees or other financial aid for facilities, improvements and equipment, to benefit any eligible business which is unable to secure financing for such items on commercially reasonable terms.

(d) Connecticut Innovations, Incorporated may recommend regulations to carry out the purposes of this section, which the Commissioner of Economic and Community Development shall adopt in accordance with chapter 54.

(e) Connecticut Innovations, Incorporated shall evaluate the feasibility of establishing a bio-processing facility within this state. If determined to be feasible, Connecticut Innovations, Incorporated shall facilitate the formation of a business consortium, in which it may participate, to launch and operate such facility.

(P.A. 96-264, S. 4, 8; P.A. 99-223, S. 2, 3; P.A. 10-104, S. 13; P.A. 11-140, S. 29; P.A. 12-65, S. 1.)

History: P.A. 96-264 effective July 1, 1996; P.A. 99-223 added new Subsec. (e) re participation in a bio-processing facility, effective June 29, 1999; P.A. 10-104 amended Subsec. (a) by adding new Subdiv. (1) defining “bioscience”, redesignating existing Subdivs. (1) and (2) as Subdivs. (2) and (3) and redefining “eligible business” in redesignated Subdiv. (2), and amended Subsec. (b) by adding new Subdivs. (1) to (7) expanding locations of eligible businesses and eligible commercial property, designating existing location as Subdiv. (8), redesignating existing Subdivs. (1) and (2) as Subdiv. (8)(A) and (B) and amending redesignated Subdiv. (8)(A) to extend benefits to municipalities that have major research university with programs in bioscience, effective July 1, 2010; P.A. 11-140 amended Subsec. (b) by adding new Subdivs. (8), (9) and (10) re property in town of Plainville, redesignating existing Subdiv. (8) as Subdiv. (11) and making a technical change, effective July 1, 2011; P.A. 12-65 amended Subsec. (b)(7) to replace census tracts 09003405200 and 09003405300 with census tracts 09003405400 and 09003406100, effective May 31, 2012.

Sec. 32-41t. High technology research and development program: Definitions. As used in this section and section 32-41u:

(1) “Corporation” means Connecticut Innovations, Incorporated as created under section 32-35; and

(2) “Eligible participant” means a member of the faculty or a researcher engaged in applied research and development at any Connecticut college or university that agrees to participate in a high technology research and development program established by the corporation.

(P.A. 00-187, S. 55, 75.)

History: P.A. 00-187 effective July 1, 2000.

Sec. 32-41u. High technology research and development program: Establishment and purpose. (a) There is established a high technology research and development program to be administered by the corporation for the purpose of promoting collaboration between businesses and colleges and universities in this state in advanced materials, aerospace, bioscience, energy and environmental systems, information technology, applied optics, microelectronics and other high technology fields. The corporation may accept applications to the program from eligible participants in a form and manner prescribed by the corporation.

(b) In approving any application the corporation shall assess the collaborative nature of the proposal as well as scientific and economic factors, including, but not limited to, the following:

(1) The formal participation in the proposal by businesses actively engaged in the commercial use of advanced materials, aerospace, bioscience, energy and environmental systems, information technology, applied optics, microelectronics and other high technology fields;

(2) The likelihood that a proposal will result in the development or commercialization of high technology products or processes in this state; and

(3) The likelihood that a proposal will result in long-term, sustainable economic growth for this state.

(c) The corporation shall provide financial aid, as defined in subdivision (4) of section 32-34, to eligible participants whose proposals have been approved by the corporation as provided in subsections (a) and (b) of this section.

(d) The corporation may establish other programs, including financial programs, in order to attract and retain residents with postsecondary education in science, engineering, mathematics and other disciplines that are essential or advisable to the development and application of technology.

(P.A. 00-187, S. 56, 75.)

History: P.A. 00-187 effective July 1, 2000.

Sec. 32-41v. Connecticut New Opportunities Fund. (a) As used in this section:

(1) “Corporation” means Connecticut Innovations, Incorporated; and

(2) “Fund” means the Connecticut New Opportunities Fund.

(b) Connecticut Innovations, Incorporated shall establish a fund to be known as the Connecticut New Opportunities Fund, for the purpose of investing in seed stage and emerging growth companies in the state. The corporation, or a subsidiary created by the corporation for the purposes of this section, shall serve as general partner or managing member of the fund and shall determine whether the fund should be organized as a limited partnership or a limited liability company. The general partner or managing member of the fund shall be reimbursed from the fund for its management costs, which shall not exceed two per cent, annually, of the committed capital of the fund.

(c) Investors in the fund may include pension funds, foundations and private entities. Such investors shall participate as limited partners or nonmanaging members of the fund. The committed capital of the fund shall not exceed fifty million dollars.

(d) The moneys in the fund shall be invested as follows: (1) Not more than twenty-five per cent in seed stage companies, and (2) not more than seventy-five per cent in not more than twenty emerging growth companies. Not more than three million dollars shall be invested in any single seed stage or emerging growth company. Fund investments shall be in the form of equity or similar instruments. An emerging growth company may be eligible for an investment if the company projects high growth, has a strong management team, has current and prospective customers, has had difficulty raising early stage venture capital and is a strong market driver but is facing entry barriers.

(e) The fund shall have a term of ten years, provided it may be extended for three one-year periods if necessary to complete liquidation of the fund's investments. Upon such liquidation, each investor shall be entitled to a return of the investment made, plus eighty per cent of all net realized gains of the fund. The state shall provide a first loss guarantee at the end of the tenth year, if needed, of not more than twenty-five million dollars. The state shall be entitled to ten per cent of all net realized gains of the fund and the general partner or managing member of the fund shall also be entitled to ten per cent of all such net realized gains.

(P.A. 05-129, S. 1.)

History: P.A. 05-129 effective July 1, 2005.

Sec. 32-41w. Early-stage venture capital program. (a) There is established an early-stage venture capital program to be administered by Connecticut Innovations, Incorporated, to provide preseed financing, seed financing, start-up financing, early or first-stage financing and expansion financing to companies in the state.

(b) In support of the program established in subsection (a) of this section, the corporation shall establish criteria for awarding such financing and shall develop and implement a plan to market the program.

(d) Funds provided for this section shall be allocated as follows: (1) Not less than five per cent for preseed financing; (2) not less than ten per cent for seed financing; (3) not less than ten per cent for start-up financing; (4) not less than fifteen per cent for early or first stage financing; and (5) not less than forty per cent and not more than sixty per cent on expansion financing, as such terms are defined in section 32-34. The corporation shall use not more than three per cent of such funds for administration and marketing of such financial aid.

(e) The corporation shall adopt procedures, pursuant to section 1-121, to implement the provisions of this section.

(P.A. 06-83, S. 4.)

History: P.A. 06-83 effective July 1, 2006.

Sec. 32-41x. Preseed financing account and program. (a) There is established an account to be known as the “preseed financing account” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be expended by Connecticut Innovations, Incorporated, for the purposes of providing preseed financing pursuant to the program established in subsection (b) of this section.

(b) Connecticut Innovations, Incorporated, shall establish a program to provide preseed financing for Connecticut businesses, which shall include, but not be limited to, financial assistance for the development of proof of concepts and support services. Financial assistance shall not exceed one hundred fifty thousand dollars per eligible business. An eligible business shall (1) be principally located in Connecticut, (2) have not less than seventy-five per cent of its employees working in Connecticut, and (3) demonstrate private investment dollars of not less than fifty cents for every dollar of financial assistance sought from the program established pursuant to this section. For the purposes of this subsection, “private investment dollars” shall include funds from a public institution of higher education, except those funds derived from state appropriations or student tuition and fees, that are used to assist in the commercialization of technology owned by a public university.

(c) The corporation may enter into an agreement, pursuant to chapter 55a, with a nonprofit corporation providing services and resources to entrepreneurs and businesses to operate such program.

(P.A. 10-75, S. 12; P.A. 11-218, S. 1.)

History: P.A. 10-75 effective July 1, 2010; P.A. 11-218 amended Subsec. (b) by adding definition of “private investment dollars”, effective July 13, 2011.

Sec. 32-41y. Connecticut Bioscience Collaboration program. Connecticut Bioscience Collaboration Fund. (a) For purposes of this section:

(1) “Corporation” means Connecticut Innovations, Incorporated;

(2) “Board” means the board of directors of Connecticut Innovations, Incorporated;

(3) “Internal Revenue Code” means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.

(b) There is established within Connecticut Innovations, Incorporated the Connecticut Bioscience Collaboration program. Said program shall support the establishment of a bioscience cluster anchored by a research laboratory housed at The University of Connecticut Health Center as provided in this subsection.

(1) The corporation shall work in collaboration with an organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code to develop, construct and equip a structure for use as a research laboratory and office building operation. The board may provide loans to such organization for the purpose of developing, constructing and equipping such structure. The board shall review and approve loan terms and conditions, and may require matching funds from private or nonstate entities. The board may allow payment on such loans to be deferred, and may forgive all or part of such loans, based upon the board's assessment of such organization's fulfillment of the loan terms and conditions.

(2) The corporation may, at the direction of the board, provide an annual operations, research and development grant to such organization for annual operating expenses and bioscience medical research, including research on stem cells, DNA (deoxyribonucleic acid), systems genomics and genome-based medicine.

(3) The corporation may, at the direction of the board, enter into venture agreements with such organization, upon such terms and conditions as would benefit the state, such organization and other private sector entities involved in the bioscience cluster.

(c) (1) There is hereby created a “Connecticut Bioscience Collaboration Fund”. Said fund shall be held and administered by Connecticut Innovations, Incorporated separate and apart from all other funds and accounts of the corporation. Amounts authorized by the State Bond Commission in accordance with section 32-41z shall be paid to the corporation for deposit into the Connecticut Bioscience Collaboration Fund.

(2) Any funds or revenues of the corporation derived from investment income or loan repayments received by the corporation in connection with the Connecticut Bioscience Collaboration program shall be held, administered and invested by the corporation or deposited with and invested by any institution as may be designated by the corporation at its sole discretion and paid as the corporation shall direct. All moneys in such accounts shall be used and applied to carry out the purposes of said program. The corporation may make payments from such accounts to the Connecticut Bioscience Collaboration Fund for use in accordance with subdivision (3) of this subsection.

(3) The moneys in the Connecticut Bioscience Collaboration Fund shall be used to carry out the purposes of the Connecticut Bioscience Collaboration program, as enumerated in subsection (b) of this section, and for the repayment of state bonds in such amounts as may be required by the State Bond Commission pursuant to section 32-41z.

(d) (1) The board shall establish an application process, with guidelines and terms for grants and loans awarded under the Connecticut Bioscience Collaboration program. The board shall review and approve each such application.

(2) Not later than April 15, 2012, and quarterly thereafter, the board shall provide a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, appropriations, commerce and higher education. Such report shall contain available information on the status and progress of the operations and funding of the Connecticut Bioscience Collaboration program.

(3) The chief executive officer of the corporation shall prepare for each fiscal year an operating and capital budget for the Connecticut Bioscience Collaboration program. Not later than ninety days prior to the start of the fiscal year, the chief executive officer shall submit the budget to the board. The board shall submit a copy of such annual budget, in accordance with the provisions of section 11-4a, to the Governor, the Secretary of the Office of Policy and Management, and the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, appropriations, commerce and higher education.

(Oct. Sp. Sess. P.A. 11-2, S. 1; P.A. 13-123, S. 26.)

History: Oct. Sp. Sess. P.A. 11-2 effective November 8, 2011; P.A. 13-123 amended Subsec. (d) to change “executive director” to “chief executive officer” in Subdiv. (3), effective June 18, 2013.

Sec. 32-41z. Bond issue for the Connecticut Bioscience Collaboration program. (a) The State Bond Commission shall authorize the issuance of bonds of the state, in accordance with the provisions of section 3-20, in principal amounts not exceeding in the aggregate two hundred ninety million six hundred eighty-five thousand dollars for the Connecticut Bioscience Collaboration program established pursuant to section 32-41y. The amount authorized for the issuance and sale of bonds in accordance with this section shall not exceed the amount authorized in each fiscal year in the following amounts, provided, to the extent the board of directors of Connecticut Innovations, Incorporated does not provide for the use of all or a portion of such amount in a fiscal year, such amount not provided for shall be carried forward and added to the authorized amount for the next succeeding fiscal year, and provided further, the costs of issuance and capitalized interest, if any, may be added to the capped amount in each fiscal year, and each of the authorized amounts shall be effective on July first of the fiscal year indicated as follows:

Fiscal Year Ending June 30	Amount
2012	$34,162,000
2013	85,113,000
2014	59,728,000
2015	19,669,000
2016	21,425,000
2017	21,108,000
2018	15,820,000
2019	12,525,000
2020	10,565,000
2021	10,570,000
Total	$290,685,000

(b) The State Bond Commission shall approve a memorandum of understanding between the board of directors of Connecticut Innovations, Incorporated and the state, acting by and through the Secretary of the Office of Policy and Management and the Treasurer, providing for the issuance of said bonds for the purposes of the Connecticut Bioscience Collaboration program, including provisions regarding the extent to which federal, private or other moneys then available or thereafter to be made available for costs should be added to the proceeds of the bonds authorized pursuant to this section for such project or program. The memorandum of understanding shall be deemed to satisfy the provisions of section 3-20 and the exercise of any right or power granted thereby which is not inconsistent with the provisions of this section.

(d) Subject to the amount of limitations of the capping provisions in subsection (a) of this section, the principal amount of the bonds authorized under this section shall be deemed to be an appropriation and allocation of such amount, and such approval of such request shall be deemed the allotment by the Governor of such capital outlays within the meaning of section 4-85.

(Oct. Sp. Sess. P.A. 11-2, S. 2.)

History: Oct. Sp. Sess. P.A. 11-2 effective November 8, 2011.

Sec. 32-41aa. Connecticut Bioscience Innovation Fund. Definitions. For the purpose of this section and sections 32-41bb to 32-41dd, inclusive:

(1) “Administrative costs” means the costs paid or incurred by the administrator, including, but not limited to, peer review costs, professional fees, allocated staff costs and other out-of-pocket costs attributable to the administration and operation of the Connecticut Bioscience Innovation Fund.

(2) “Administrator” means Connecticut Innovations, Incorporated, in its capacity as administrator of the Connecticut Bioscience Innovation Fund established pursuant to section 32-41cc.

(3) “Advisory committee” means the Bioscience Innovation Advisory Committee established pursuant to section 32-41bb.

(4) “Early-stage business” means a business that has not yet achieved an annual commercial revenue greater than two million dollars.

(5) “Eligible recipient” means a duly accredited college or university, a nonprofit corporation or a for-profit start-up or early-stage business. “Eligible recipient” also includes any entity that has received financial assistance from the Connecticut Bioscience Innovation Fund or from Connecticut Innovations, Incorporated, for the purpose of additional financial assistance to be awarded to such entity pursuant to section 32-41cc.

(6) “Financial assistance” means any and all forms of grants, extensions of credit, loans or loan guarantees, equity investments or other forms of financing.

(7) “Return on investment” means any and all forms of principal or interest payments, guarantee fees, returns on equity investments, royalties, options, warrants and debentures and all other forms of remuneration to the administrator in return for any financial assistance offered or provided.

(P.A. 13-239, S. 70; P.A. 14-98, S. 36; P.A. 15-222, S. 5; June Sp. Sess. P.A. 15-5, S. 53; P.A. 16-204, S. 2.)

History: P.A. 13-239 effective July 1, 2013; P.A. 14-98 deleted former Subdiv. (1) re definition of “administrative costs” and redesignated existing Subdivs. (2) to (7) as Subdivs. (1) to (6); P.A. 15-222 amended Subdiv. (3) to redefine “early-stage business” by replacing “three years” with “seven years” and adding provision re clinical trials that have not begun phase II evaluation, and added Subdiv. (7) defining “phase II evaluation”, effective June 30, 2015; June Sp. Sess. P.A. 15-5 added new Subdiv. (1) defining “administrative costs” and redesignated existing Subdivs. (1) to (7) as Subdivs. (2) to (8), effective upon the effective date of section 5 of public act 15-222, i.e., June 30, 2015; P.A. 16-204 redefined “early-stage business” in Subdiv. (4), redefined “eligible recipient” in Subdiv. (5) and deleted former Subdiv. (8) re definition of “phase II evaluation”, effective July 1, 2016.

Sec. 32-41bb. Bioscience Innovation Advisory Committee. (a) There shall be a Bioscience Innovation Advisory Committee that shall consist of the following thirteen members: (1) Four appointed by the Governor; (2) one appointed by the president pro tempore of the Senate; (3) one appointed by the speaker of the House of Representatives; (4) one appointed by the majority leader of the Senate; (5) one appointed by the majority leader of the House of Representatives; (6) one appointed by the minority leader of the Senate; (7) one appointed by the minority leader of the House of Representatives; (8) the Commissioner of Economic and Community Development and the Commissioner of Public Health, or their designees, who shall serve as ex-officio, voting members; and (9) the chief executive officer of Connecticut Innovations, Incorporated, who shall serve as the chairperson of the advisory committee. Each appointed member shall have skill, knowledge and experience in relevant businesses and sciences related to health care delivery, medical devices, life sciences, insurance or information technology. All initial appointments to the committee pursuant to this subsection shall be made not later than July 1, 2013. Appointed members shall each serve a term that is coterminous with the respective appointing authority. Each member shall hold office until a successor is appointed. Any vacancy occurring on the committee, other than by expiration of term, shall be filled in the same manner as the original appointment for the balance of the unexpired term.

(b) The chairperson shall call the first meeting of the advisory committee not later than September 30, 2013. The advisory committee shall meet not less than quarterly thereafter, and at such other times as the chairperson deems necessary.

(c) No member of the advisory committee shall receive compensation for such member's services, except that each member shall be entitled to reimbursement for actual and necessary expenses incurred during the performance of such member's official duties.

(d) Seven members of the advisory committee shall constitute a quorum for the transaction of any business or the exercise of any power of the advisory committee. The advisory committee may act by a majority of the members present at any meeting at which a quorum is in attendance, for the transaction of any business or the exercise of any power of the advisory committee, except as otherwise provided in this section.

(e) Notwithstanding any provision of the general statutes, it shall not constitute a conflict of interest for a trustee, director, partner, officer, manager, shareholder, proprietor, counsel or employee of an eligible recipient, or any individual with a financial interest in an eligible recipient, to serve as a member of the advisory committee, provided such trustee, director, partner, officer, manager, shareholder, proprietor, counsel, employee or individual shall abstain from deliberation, action or vote by the advisory committee in specific respect to such eligible recipient. All members of the advisory committee shall be deemed public officials and shall adhere to the code of ethics for public officials set forth in chapter 10.

(P.A. 13-239, S. 71; P.A. 14-60, S. 10; 14-79, S.7; 14-98, S. 37.)

History: P.A. 13-239 effective July 1, 2013; P.A. 14-60 amended Subsec. (a)(9) by deleting “and executive director”; P.A. 14-79 made identical change as P.A. 14-60, effective June 3, 2014; P.A. 14-98 amended Subsec. (e) by adding provision re advisory committee members deemed to be public officials and to adhere to code of ethics for public officials.

Sec. 32-41cc. Connecticut Bioscience Innovation Fund. Establishment. Financial assistance. Report. (a) There is established a Connecticut Bioscience Innovation Fund, to be held, administered, invested and disbursed by the administrator pursuant to this section. The fund shall contain any moneys required or permitted by law to be deposited in the fund and any moneys received from any public or private contributions, gifts, grants, donations, bequests or devises to the fund. Pending disbursement as financial assistance to eligible recipients, moneys in or received for the fund may be deposited with and invested by any institution as may be designated by the administrator at its sole discretion and paid as the administrator shall direct. The administrator may make payments from such deposit accounts for use in accordance with the provisions of this section. Earnings attributable to such investments shall be credited to the fund and shall become part of the assets of the fund. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the fiscal year next succeeding.

(b) Any amount received by the administrator as repayment of loan principal or any other recovery of the original amount of financial assistance provided from the Connecticut Bioscience Innovation Fund to an eligible recipient shall be deposited and held for the use and benefit of the fund. Any income, earnings or return on investment in excess of such original amount and any repayment of interest received by the administrator shall be deemed unrestricted funds of the corporation as described in subsection (b) of section 32-41a.

(c) The Connecticut Bioscience Innovation Fund shall not be deemed an account within the General Fund and shall be used exclusively for the purposes provided in this section.

(d) The Connecticut Bioscience Innovation Fund shall be used (1) to provide financial assistance to eligible recipients as may be approved by the advisory committee pursuant to subsection (e) of this section, (2) to provide financial assistance to eligible institutions as defined in section 32-41jj and pursuant to the requirements of sections 32-41jj to 32-41mm, inclusive, (3) for the repayment of state bonds in such amounts as may be required by the State Bond Commission, and (4) to pay or reimburse the administrator for administrative costs pursuant to subsection (j) of this section. Such financial assistance shall be awarded to further the development of bioscience, biomedical engineering, health information management, medical care, medical devices, medical diagnostics, pharmaceuticals, personalized medicine and other related disciplines that are likely to lead to an improvement in or development of services, therapeutics, diagnostics or devices that are commercializable and designed to advance the coordination, quality or efficiency of health care and lower health care costs, and that promise, directly or indirectly, to lead to job growth in the state in these or related fields.

(e) All expenditures from the Connecticut Bioscience Innovation Fund, except for administrative costs reimbursed to the administrator pursuant to subsection (j) of this section and amounts required for the repayment of state bonds in such amounts as may be required by the State Bond Commission, shall be approved by the advisory committee. Any such approval shall be (1) specific to an individual expenditure to be made, (2) for budgeted expenditures with such variations as the advisory committee may authorize at the time of such budget approval, or (3) for a financial assistance program to be administered by staff of the administrator, subject to limits, eligibility requirements and other conditions established by the advisory committee at the time of such program approval. The advisory committee may provide financial assistance directly to eligible recipients or indirectly to eligible recipients by investment in private equity investment funds, including investment funds organized, managed and investing in businesses within or outside the state, as described in subsection (g) of this section.

(f) Connecticut Innovations, Incorporated shall provide any necessary staff, office space, office systems and administrative support for the operation of the Connecticut Bioscience Innovation Fund in accordance with this section. In acting as administrator of the fund, the administrator shall have and may exercise all of the powers of Connecticut Innovations, Incorporated set forth in section 32-39, provided expenditures from the fund shall be approved by the advisory committee pursuant to subsection (e) of this section.

(g) The advisory committee shall establish an application and approval process with guidelines and terms for financial assistance awarded from the Connecticut Bioscience Innovation Fund directly to eligible recipients. Such guidelines and terms shall include (1) a requirement that any applicant for financial assistance shall be operating in the state, or proposing to relocate operations to the state, in whole or in part, as a condition of such financial assistance, (2) limitations on the total amount of financial assistance that may be awarded in the form of loans and grants, (3) eligibility requirements for loans and grants designed to encourage and support collaborative ventures among eligible recipients, (4) peer review requirements, (5) a process for preliminary review of applications for strength and eligibility by the administrator before such applications are presented to the advisory committee for consideration, (6) return on investment objectives, and (7) such other guidelines and terms as the advisory committee determines to be necessary and appropriate in furtherance of the objectives of this section. The advisory committee shall adopt guidelines for any financial assistance provided indirectly to eligible recipients by investment into private equity investment funds, including, but not limited to, a requirement that any private equity investment fund that receives an investment from the advisory committee invest not less than the amount of such investment by the advisory committee, net of reasonable management fees and closing costs, in eligible recipients in the state.

(h) Financial assistance awarded from the Connecticut Bioscience Innovation Fund to eligible recipients shall be used for costs related to facilities, necessary furniture, fixtures and equipment, materials and supplies, peer review, proof of concept or relevance, compensation, and such other costs that the advisory committee determines to be eligible for financial assistance within the purposes of this section.

(i) Beginning January 1, 2014, the administrator shall prepare for each fiscal year a plan of operations and an operating and capital budget for the Connecticut Bioscience Innovation Fund. Not later than ninety days prior to the start of the fiscal year, the administrator shall submit the plan and budget to the advisory committee for its review and approval.

(j) Administrative costs shall be paid or reimbursed to the administrator from the Connecticut Bioscience Innovation Fund, provided the total of such administrative costs in any fiscal year shall not exceed five per cent of the total amount of the allotted funding for such fiscal year as determined in the operating budget prepared pursuant to subsection (i) of this section. Nothing in section 32-41aa, 32-41bb or this section shall require the administrator to risk or expend the funds of Connecticut Innovations, Incorporated in connection with the administration of the Connecticut Bioscience Innovation Fund.

(k) Not later than April 15, 2014, and annually thereafter, the administrator shall provide a report of the activities of the Connecticut Bioscience Innovation Fund to the advisory committee for its review and approval. Upon its approval, the advisory committee shall provide such report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, appropriations, commerce, public health and higher education. Such report shall contain available information on the status and progress of the operations and funding of the Connecticut Bioscience Innovation Fund and the types, amounts and recipients of financial assistance awarded and any returns on investment.

(P.A. 13-239, S. 72; P.A. 14-98, S. 38, 39; June Sp. Sess. P.A. 15-5, S. 54, 55; P.A. 16-204, S. 3; May Sp. Sess. P.A. 16-3, S. 22; June Sp. Sess. P.A. 17-2, S. 450.)

History: P.A. 13-239 effective July 1, 2013; P.A. 14-98 amended Subsec. (d) to delete former Subdiv. (3) re use of fund to pay administrative costs, amended Subsec. (e) to delete reference to administrative costs, deleted former Subsec. (j) re payment of administrative costs from fund and redesignated existing Subsec. (k) as Subsec. (j); June Sp. Sess. P.A. 15-5 amended Subsecs. (d) and (e) by adding references to administrative costs, added new Subsec. (j) re payment or reimbursement of administrative costs from fund and redesignated existing Subsec. (j) as Subsec. (k), effective upon the effective date of section 5 of public act 15-222, i.e., June 30, 2015; P.A. 16-204 amended Subsec. (a) to replace “Repayment of principal and interest on loans issued from the fund” with “Earnings attributable to such investments” re credited to fund and add provisions re deposit and investment of moneys in or received for fund and payments made by administrator, amended Subsec. (b) by deleting provisions re return on investment received by administrator and adding provisions re amount received by administrator as repayment of loan principal or other recovery of financial assistance, amended Subsec. (e) to add provision re direct and indirect provision of financial assistance to eligible recipients and amended Subsec. (g) to add “directly” re financial assistance awarded to eligible recipients and add provisions re adoption of guidelines by advisory committee, effective July 1, 2016; May Sp. Sess. P.A. 16-3 amended Subsec. (e) to make identical changes as P.A. 16-204 and amended Subsec. (g) to add identical provision re adoption of guidelines by advisory committee as in P.A. 16-204, effective July 1, 2016; June Sp. Sess. P.A. 17-2 amended Subsec. (d) by adding new Subdiv. (2) re use of fund to provide assistance to certain institutions and redesignating existing Subdivs. (2) and (3) as Subdivs. (3) and (4), effective October 31, 2017.

Sec. 32-41dd. Bond authorization for Connecticut Bioscience Innovation Fund. (a)(1) The State Bond Commission shall authorize the issuance of bonds of the state, in accordance with the provisions of section 3-20, in principal amounts not exceeding in the aggregate two hundred four million dollars for the Connecticut Bioscience Innovation Fund established pursuant to section 32-41cc. The amount authorized for the issuance and sale of such bonds in each of the following fiscal years shall not exceed the following corresponding amount for each such fiscal year, provided, to the extent the advisory committee does not provide for the use of all or a portion of such amount in any such fiscal year, such amount not provided for shall be carried forward and added to the authorized amount for the next succeeding fiscal year, and provided further, the costs of issuance and capitalized interest, if any, may be added to the capped amount in each fiscal year, and each of the authorized amounts shall be effective on July first of the fiscal year indicated as follows:

Fiscal Year Ending June Thirtieth	Amount
2013	$10,000,000
2014	10,000,000
2015	15,000,000
2016	15,000,000
2017	0
2018	15,000,000
2019	15,000,000
2020	25,000,000
2021	25,000,000
2022	25,000,000
2023	25,000,000
2024	24,000,000

Total	$204,000,000

(2) For each fiscal year ending June 30, 2018, June 30, 2019, and June 30, 2020, not less than three million dollars of the amount for each such fiscal year authorized in accordance with subdivision (1) of this subsection shall be made available as a grant-in-aid to the Yale Connecticut Precision Medicine Initiative.

(b) The State Bond Commission shall approve a memorandum of understanding between the administrator and the state, acting by and through the Secretary of the Office of Policy and Management and the Treasurer, providing for the issuance of said bonds for the purposes of the Connecticut Bioscience Innovation Fund, including provisions regarding the extent to which federal, private or other moneys then available or thereafter to be made available for costs should be added to the proceeds of the bonds authorized pursuant to this section for such project or program. The memorandum of understanding shall be deemed to satisfy the provisions of section 3-20 and the exercise of any right or power granted thereby that is not inconsistent with the provisions of this section.

(P.A. 13-239, S. 73; May Sp. Sess. P.A. 16-4, S. 257; June Sp. Sess. P.A. 17-2, S. 451.)

History: P.A. 13-239 effective July 1, 2013; May Sp. Sess. P.A. 16-4 amended Subsec. (a) by decreasing authorization for fiscal year 2017 from $25,000,000 to $0 and adding authorization of $25,000,000 for fiscal year 2023, effective July 1, 2016; June Sp. Sess. P.A. 17-2 amended Subsec. (a) by designating existing provisions re authorization for Connecticut Bioscience Innovation Fund as Subdiv. (1), increasing total authorization from $200,000,000 to $204,000,000, decreasing authorization for fiscal year 2018 from $25,000,000 to $15,000,000, and for fiscal year 2019 from $25,000,000 to $15,000,000, adding authorization of $24,000,000 for fiscal year 2024 and making a conforming change, and adding Subdiv. (2) re fiscal years 2018, 2019 and 2020, effective October 31, 2017.

Secs. 32-41ee to 32-41ii. Reserved for future use.

(1) “Embryonic stem cell research oversight committee” means a committee established in accordance with the National Academies' Guidelines for Human Embryonic Stem Cell Research, as amended from time to time.

(2) “Cloning of a human being” means inducing or permitting a replicate of a living human being's complete set of genetic material to develop after gastrulation commences.

(3) “Gastrulation” means the process immediately following the blastula state when the hollow ball of cells representing the early embryo undergoes a complex and coordinated series of movements that results in the formation of the three primary germ layers, the ectoderm, mesoderm and endoderm.

(4) “Embryonic stem cells” means cells created through the joining of a human egg and sperm or through nuclear transfer that are sufficiently undifferentiated such that they cannot be identified as components of any specialized cell type.

(5) “Nuclear transfer” means the replacement of the nucleus of a human egg with a nucleus from another human cell.

(6) “Eligible institution” means (A) a nonprofit, tax-exempt academic institution of higher education, (B) a hospital that conducts biomedical research, or (C) any entity that conducts biomedical research or regenerative medicine research.

(7) “Regenerative medicine” means the process of creating living, functional tissue to repair or replace tissue or organ function lost due to aging, disease, damage or congenital defect. Regenerative medicine includes basic stem cell research.

(8) “Financial assistance” means any and all forms of grants, extensions of credit, loans or loan guarantees, equity investments or other forms of financing.

(b) No person shall knowingly (1) engage or assist, directly or indirectly, in the cloning of a human being, (2) implant human embryos created by nuclear transfer into a uterus or a device similar to a uterus, or (3) facilitate human reproduction through clinical or other use of human embryos created by nuclear transfer. Any person who violates the provisions of this subsection shall be fined not more than one hundred thousand dollars or imprisoned not more than ten years, or both. Each violation of this subsection shall be a separate and distinct offense.

(c) (1) A physician or other health care provider who is treating a patient for infertility shall provide the patient with timely, relevant and appropriate information sufficient to allow that person to make an informed and voluntary choice regarding the disposition of any embryos or embryonic stem cells remaining following an infertility treatment.

(2) A patient to whom information is provided pursuant to subdivision (1) of this subsection shall be presented with the option of storing, donating to another person, donating for research purposes, or otherwise disposing of any unused embryos or embryonic stem cells.

(3) A person who elects to donate for stem cell research purposes any human embryos or embryonic stem cells remaining after receiving infertility treatment, or unfertilized human eggs or human sperm shall provide written consent for that donation and shall not receive direct or indirect payment for such human embryos, embryonic stem cells, unfertilized human eggs or human sperm. Consent obtained pursuant to this subsection shall, at a minimum, conform to the National Academies' Guidelines for Human Embryonic Stem Cell Research, as amended from time to time.

(4) Any person who violates the provisions of this subsection shall be guilty of a class D felony, except that such person shall be fined not more than fifty thousand dollars. Each violation of this subsection shall be a separate and distinct offense.

(d) A person may conduct research involving embryonic stem cells, provided (1) the research is conducted with full consideration for the ethical and medical implications of such research, (2) the research is conducted before gastrulation occurs, (3) any human embryos, embryonic stem cells, unfertilized human eggs or human sperm used in such research have been donated voluntarily in accordance with the provisions of subsection (c) of this section, or if any embryonic stem cells have been derived outside the state of Connecticut, such stem cells have been acceptably derived as provided in the National Academies' Guidelines for Human Embryonic Stem Cell Research, as amended from time to time, and (4) all activities involving embryonic stem cells are overseen by an embryonic stem cell research oversight committee.

(e) Any person who conducts research involving embryonic stem cells in violation of the requirements of subdivision (2) of subsection (d) of this section shall be guilty of a class D felony, except that such person shall be fined not more than fifty thousand dollars.

(P.A. 05-149, S. 1; 05-272, S. 36; P.A. 08-80, S. 1; P.A. 13-258, S. 68; P.A. 14-98, S. 32; P.A. 15-222, S. 1; 15-242, S. 4.)

History: P.A. 05-149 effective June 15, 2005; P.A. 05-272 added Subsec. (f) establishing penalty for conducting research involving embryonic stem cells in violation of Subsec. (d)(2), effective July 13, 2005; P.A. 08-80 amended Subsec. (a)(1) by substituting definition of “embryonic stem cell research oversight committee” for definition of “institutional review committee”, amended Subsec. (c)(3) by specifying that consent obtained conform to the National Academies' Guidelines for Human Embryonic Stem Cell Research, amended Subsec. (d)(3) by restructuring existing provisions and adding provision re embryonic stem cells derived outside the state shall have been acceptably derived as provided in the National Academies' Guidelines for Human Embryonic Stem Cell Research, deleted former Subsec. (d)(4) and (5) re general research program and protocol, and added new Subsec. (d)(4) re oversight of all activities involving embryonic stem cells by an embryonic stem cell research oversight committee; P.A. 13-258 amended Subsecs. (c)(4) and (f) to substitute provisions re class D felony for provisions re imprisonment of not more than 5 years; P.A. 14-98 amended Subsec. (a) by replacing “embryonic or human adult stem cell” with “regenerative medicine” in Subdiv. (6) and adding Subdiv. (7) defining “regenerative medicine”; Sec. 19a-32d transferred to Sec. 32-41jj in 2015; P.A. 15-222 amended Subsec. (a) by adding Subdiv. (8) defining “financial assistance”, effective July 1, 2015; P.A. 15-242 amended Subsec. (d)(3) by deleting provision re person to provide documentation to commissioner, deleted former Subsec. (e) re regulations and redesignated existing Subsec. (f) as Subsec. (e).

Sec. 32-41kk. (Formerly Sec. 19a-32e). Regenerative Medicine Research Fund. Application for financial assistance. Available funding. (a) There is established the “Regenerative Medicine Research Fund”, which shall be a separate, nonlapsing account within the General Fund. The fund may contain any moneys required or permitted by law to be deposited in the fund and any funds received from any public or private contributions, gifts, grants, donations, bequests or devises to the fund. The chief executive officer of Connecticut Innovations, Incorporated, (1) shall award financial assistance from the fund in accordance with the provisions of subsection (b) of this section, and (2) may enter into agreements with other entities, including, but not limited to, the government of any state or foreign country for the purpose of advancing research collaboration opportunities for recipients of financial assistance under this section.

(b) The chief executive officer of Connecticut Innovations, Incorporated, shall develop an application for financial assistance under this section for the purpose of conducting regenerative medicine research and may receive applications from eligible institutions for such financial assistance. The chief executive officer of Connecticut Innovations, Incorporated, shall require any applicant for financial assistance under this section to conduct regenerative medicine research to submit (1) a complete description of the applicant's organization, (2) the applicant's plans for regenerative medicine research and proposed funding for such research from sources other than the state, (3) proposed arrangements concerning financial benefits to the state as a result of any patent, royalty payment or similar rights developing from any proposed research made possible by the awarding of such financial assistance, and (4) a form attesting to compliance with subsections (c) and (d) of section 32-41jj if the regenerative medicine research involves the use of embryonic stem cells.

(c) Commencing with the fiscal year ending June 30, 2006, and for each of the thirteen consecutive fiscal years thereafter, until the fiscal year ending June 30, 2019, funds shall be available from the Regenerative Medicine Research Fund for financial assistance to eligible institutions for the purpose of conducting regenerative medicine research. Any funds not used for such financial assistance during a fiscal year shall be carried forward for the fiscal year next succeeding for such financial assistance.

(P.A. 05-149, S. 2; P.A. 14-98, S. 33; P.A. 15-222, S. 2; 15-242, S. 5; June Sp. Sess. P.A. 17-2, S. 452; P.A. 23-204, S. 241.)

History: P.A. 05-149 effective June 15, 2005; P.A. 14-98 amended Subsec. (a) by replacing “Stem Cell Research Fund” with “Regenerative Medicine Research Fund”, changing administration of fund from Commissioner of Public Health to chief executive officer of Connecticut Innovations, Incorporated, designating existing provision re grants-in-aid as Subdiv. (1) and adding Subdiv. (2) re agreements with other entities, amended Subsec. (b) by replacing “Stem Cell Research Advisory Committee” with “Regenerative Medicine Research Advisory Committee”, amended Subsec. (c) by extending sunset date for grants-in-aid from June 30, 2015, to June 30, 2019, and made technical and conforming changes; Sec. 19a-32e transferred to Sec. 32-41kk in 2015; P.A. 15-222 replaced references to grants-in-aid with references to financial assistance and amended Subsec. (b) by replacing reference to Regenerative Medicine Research Peer Review Committee with reference to peer reviewers pursuant to Sec. 32-41mm, effective July 1, 2015; P.A. 15-242 amended Subsec. (b) by adding Subdiv. (4) re compliance form; June Sp. Sess. P.A. 17-2 amended Subsec. (c) by replacing “not less than ten million dollars” with “funds” and “balance of such amount” with “funds”, effective October 31, 2017; P.A. 23-204 amended Subsec. (b) by replacing references to Regenerative Medicine Research Advisory Committee with chief executive officer of Connecticut Innovations, Incorporated and deleting provision re advisory committee directing the chief executive officer re financial assistance awards, effective July 1, 2023.

Sec. 32-41ll. (Formerly Sec. 19a-32f). Development of donated funds program to encourage regenerative medicine research. Administration of Regenerative Medicine Research Fund. (a) The chief executive officer of Connecticut Innovations, Incorporated, shall (1) develop a donated funds program to encourage the development of funds other than state appropriations for regenerative medicine research in the state, (2) examine and identify specific ways to improve and promote for-profit and not-for-profit regenerative medicine research and research in related areas in the state, including, but not limited to, identifying both public and private funding sources for such research, maintaining existing regenerative medicine-related businesses, recruiting new regenerative medicine-related businesses to the state and recruiting scientists and researchers in such field to the state, (3) administer a regenerative medicine research assistance program that shall provide financial assistance to eligible institutions for the advancement of regenerative medicine research in the state pursuant to section 32-41kk, (4) monitor the regenerative medicine research conducted by eligible institutions that receive such financial assistance, and (5) prepare a comprehensive strategic plan for the Regenerative Medicine Research Fund, established pursuant to section 32-41kk, and financial assistance awarded from said fund that shall include, but need not be limited to, identification of specific methods or strategies to (A) achieve the scientific and economic development objective of said fund, (B) build innovation capacity, and (C) sustain investments of moneys received by said fund.

(b) Connecticut Innovations, Incorporated, shall serve as administrator of the Regenerative Medicine Research Fund and shall: (1) Develop the application for the financial assistance authorized under subsection (b) of section 32-41kk; (2) review such applications; (3) review recommendations of peer reviewers pursuant to section 32-41mm; (4) prepare and execute any assistance agreements or other agreements in connection with the awarding of such financial assistance; (5) develop performance metrics and systems to collect data from recipients of such financial assistance; and (6) collect information from such recipients concerning each recipient's employment statistics, business accomplishments and performance outcomes, peer review articles and papers published, partnerships and collaborations with other entities, licenses, patents and invention disclosures, scientific progress as it relates to the commercialization of intellectual property funded by such financial assistance, efforts to commercialize such intellectual property, and other funds received for research.

(P.A. 05-149, S. 3; P.A. 06-33, S. 1; P.A. 10-117, S. 43; P.A. 11-242, S. 39; P.A. 14-98, S. 34; P.A. 15-55, S. 1; 15-222, S. 3; P.A. 23-204, S. 240.)

History: P.A. 05-149 effective June 15, 2005; P.A. 06-33 amended Subsec. (a) by designating existing provisions as Subdiv. (1) and adding Subdiv. (2) requiring the appointment of eight additional members by July 1, 2006, and amended Subsec. (d) by describing what shall not constitute a conflict of interest and authorizing members to participate in the review or consideration of grant-in-aid applications, effective April 24, 2006; P.A. 10-117 deleted former Subsec. (g) re annual reports from committee to Governor and General Assembly; P.A. 11-242 amended Subsec. (a)(1) by permitting commissioner's designee to be a member of committee and amended Subsec. (b) by permitting commissioner's designee to serve as committee chairperson; P.A. 14-98 amended Subsec. (a) by replacing “Stem Cell Research Advisory Committee” with “Regenerative Medicine Research Advisory Committee”, adding chief executive officer of Connecticut Innovations, Incorporated, as member, adjusting qualifications for members appointed by Governor and minority leader of the House of Representatives, and removing restriction on members' concurrent service on peer review committee in Subdiv. (1), and adjusting qualifications for members appointed by Governor, president pro tempore of the Senate, speaker of the House of Representatives and minority leader of the House of Representatives, and removing restriction on members' concurrent service on peer review committee in Subdiv. (2), deleted former Subsec. (b) re Commissioner of Public Health as chairperson, added new Subsec. (b) re chief executive officer of Connecticut Innovations, Incorporated, as chairperson, amended Subsec. (e) by adding Subdiv. (5) re strategic plan, amended Subsec. (f) by replacing former provisions with provisions re duties of Connecticut Innovations, Incorporated, and replaced references to embryonic and human adult stem cell with references to regenerative medicine and made technical and conforming changes throughout; Sec. 19a-32f transferred to Sec. 32-41ll in 2015; P.A. 15-55 amended Subsec. (f)(2) by replacing “Regenerative Medicine Research Advisory Committee” with “Regenerative Medicine Peer Review Committee”, effective June 19, 2015; P.A. 15-222 replaced references to grants-in-aid with references to financial assistance and made conforming changes in Subsecs. (d) to (f), and amended Subsec. (f)(3) by replacing reference to Regenerative Medicine Research Advisory Committee with reference to peer reviewers, effective July 1, 2015; P.A. 23-204 deleted former Subsecs. (a) to (d) re establishment and membership of Regenerative Medicine Research Advisory Committee, redesignated existing Subsec. (e) as Subsec. (a) and amended same to replace reference to advisory committee with chief executive officer of Connecticut Innovations, Incorporated and made a conforming change and redesignated existing Subsec. (f) as Subsec. (b) and amended same to delete reference to advisory committee and delete former Subdiv. (7) re administrative duties, effective July 1, 2023.

Sec. 32-41mm. (Formerly Sec. 19a-32g). Peer review of applications for financial assistance. Qualifications and duties of peer reviewers. Rating and scoring guidelines. (a) Prior to the awarding of any financial assistance in response to an application submitted pursuant to section 32-41kk, the chief executive officer of Connecticut Innovations, Incorporated, shall contract with a third party for the selection of peer reviewers to review such application and make recommendations to said officer with respect to the ethical and scientific merit of such application.

(b) Such peer reviewers shall: (1) Have a demonstrated knowledge and understanding of the ethical and medical implications of regenerative medicine research or related research fields, including, but not limited to, embryology, genetics or cellular biology; (2) have practical research experience in regenerative medicine research or related research fields, including, but not limited to, embryology, genetics or cellular biology; (3) work to advance regenerative medicine research; and (4) become and remain fully cognizant of the National Academies' Guidelines for Human Embryonic Stem Cell Research, as amended from time to time, and shall utilize said guidelines to evaluate any application pursuant to subsection (a) of this section.

(c) No peer reviewer shall review any application filed by such peer reviewer or by any eligible institution in which such peer reviewer has a financial interest, or with which such peer reviewer engages in any business, employment, transaction or professional activity.

(d) Such peer reviewers may receive compensation from Connecticut Innovations, Incorporated, for reviewing applications submitted pursuant to section 32-41kk. The rate of compensation shall be established by the board of directors of Connecticut Innovations, Incorporated.

(e) The chief executive officer of Connecticut Innovations, Incorporated, shall establish guidelines for the rating and scoring of such applications. In establishing such guidelines, said officer may consult with a third party contracted for the selection of peer reviewers pursuant to subsection (a) of this section.

(P.A. 05-149, S. 4; P.A. 06-196, S. 209; P.A. 07-252, S. 40; P.A. 08-80, S. 2; P.A. 11-242, S. 19; P.A. 14-98, S. 35; P.A. 15-222, S. 4; P.A. 23-204, S. 242.)

History: P.A. 05-149 effective June 15, 2005; P.A. 06-196, made technical changes in Subsec. (b), effective June 7, 2006; P.A. 07-252 amended Subsec. (a) by designating existing provisions as Subdiv. (1), redesignating existing Subdivs. (1), (2) and (3) as Subparas. (A), (B) and (C), respectively, and adding new Subdiv. (2) authorizing Commissioner of Public Health to appoint additional members to Stem Cell Research Peer Review Committee, provided total membership does not exceed 15, effective July 1, 2007; P.A. 08-80 amended Subsec. (e) to require that Academies' Guidelines for Human Embryonic Stem Cell Research be utilized to evaluate each grant-in-aid application and to make technical changes; P.A. 11-242 amended Subsec. (a)(2) by making a technical change, added new Subsec. (d) re compensation to peer review committee members and redesignated existing Subsecs. (d) and (e) as Subsecs. (e) and (f); P.A. 14-98 amended Subsec. (a) by replacing “Stem Cell Research Peer Review Committee” with “Regenerative Medicine Research Peer Review Committee”, deleting former Subdiv. (2) re appointment of additional members, redesignating existing provisions re member qualifications as new Subdiv. (2), and adding Subdiv. (3) re membership transition from those appointed by Commissioner of Public Health to those appointed by chief executive officer of Connecticut Innovations, Incorporated, amended Subsec. (d) by changing compensation for members from Stem Cell Research Fund to Connecticut Innovations, Incorporated, amended Subsec. (f) by deleting provision re guideline recommendations, and replaced references to embryonic or human adult stem cell with references to regenerative medicine and made technical and conforming changes throughout; Sec. 19a-32g transferred to Sec. 32-41mm in 2015; P.A. 15-222 replaced former Subsecs. (a) to (c) re Regenerative Medicine Research Peer Review Committee with new Subsecs. (a) to (c) re peer review of applications for financial assistance, amended Subsec. (d) by replacing reference to committee with reference to peer reviewers and replacing “grant-in-aid applications submitted by eligible institutions” with “applications submitted pursuant to section 32-41kk”, amended Subsec. (e) by replacing “Regenerative Medicine Research Peer Review Committee” with “Regenerative Medicine Research Advisory Committee” and adding provisions re establishment of guidelines for rating and consultation with a third party, and deleted former Subsec. (f) re guidelines, effective July 1, 2015; P.A. 23-204 amended Subsecs. (a) and (e) by replacing references to Regenerative Medicine Research Advisory Committee with chief executive officer of Connecticut Innovations, Incorporated, effective July 1, 2023.

Sec. 32-41nn. Bond authorization for Regenerative Medicine Research Fund. (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate ten million dollars.

(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 Connecticut Innovations, Incorporated, for the purposes of the Regenerative Medicine Research Fund established by section 32-41kk.

(c) All provisions of section 3-20, or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

(P.A. 14-98, S. 22; June Sp. Sess. P.A. 17-2, S. 453.)

History: P.A. 14-98 effective July 1, 2015; June Sp. Sess. P.A. 17-2 amended Subsec. (a) by reducing the authorization from $40,000,000 to $10,000,000 and deleting Subdivs. (1), (2), and (3) re effective dates of authorization, effective October 31, 2017.

Sec. 32-41oo. Program to incentivize formation of new venture capital funds. The chief executive officer of Connecticut Innovations, Incorporated may establish a program to incentivize the formation of at least one new venture capital fund in the state. Connecticut Innovations, Incorporated may invest up to ten million dollars only if private investors invest at least one and one-half times the amount Connecticut Innovations, Incorporated pledges to invest in a new fund. Any such fund shall be subject to the following requirements:

(1) The amounts invested by Connecticut Innovations, Incorporated pursuant to this section shall be invested in start-up and growth stage companies located in the state. Such requirement shall not apply to the amounts invested by private investors pursuant to this section;

(2) The investor or the managing venture capital firm managing such fund shall have an office located in the state; and

(3) Any partner in a fund established under this subdivision may buy, after five years from the date of the establishment of the fund, Connecticut Innovations, Incorporated's equity stake in the fund plus interest at an annual rate agreed upon by the partner and the executive director.

(P.A. 18-178, S. 49.)

History: P.A. 18-178 effective July 1, 2018.

Sec. 32-41pp. Program to encourage development of technologies and techniques concerning crumbling concrete foundations. (a) There is established a program to encourage the development of technologies and techniques regarding the prevention, identification and repair of properties that have, or may suffer from, crumbling foundations due to the presence of pyrrhotite.

(b) Connecticut Innovations, Incorporated, shall administer the program established under subsection (a) of this section within existing resources and, in conjunction with a volunteer panel of subject matter experts convened by Connecticut Innovations, Incorporated, develop criteria for the program established under subsection (a) of this section.

(c) Connecticut Innovations, Incorporated, may administer the program established under subsection (a) of this section in coordination with the coordinating agency from another state or other states.

(P.A. 19-192, S. 13.)

History: P.A. 19-192 effective July 1, 2019.

Sec. 32-41qq. Plan to collect data re crumbling concrete foundations. (a) The Chief Data Officer shall, in consultation with the Department of Housing, the State Geologist, the captive insurance company established pursuant to section 38a-91vv, and the volunteer panel convened pursuant to subsection (b) of section 32-41pp, develop and implement a plan to collect the data necessary to conduct research regarding crumbling foundations.

(b) Any data collected under the plan developed and implemented pursuant to subsection (a) of this section shall be confidential and exempt from the Freedom of Information Act, as defined in section 1-200, except that the Chief Data Officer may make such data available for research purposes subject to data sharing agreements that maintain the confidentiality of personally identifying information and the specific location of any property.

(P.A. 19-192, S. 14.)

History: P.A. 19-192 effective July 1, 2019.

Sec. 32-42. Examination. Audits. The corporation shall be subject to examination by the State Treasurer. The accounts of the corporation shall be subject to biennial audits by the State Auditors of Public Accounts.

(1972, P.A. 248, S. 11; P.A. 93-382, S. 8, 69; P.A. 21-145, S. 11.)

History: P.A. 93-382 deleted requirement that corporation report annually to governor, effective July 1, 1993; P.A. 21-145 changed annual audits to biennial audits.

Sec. 32-43. State pledge. The state of Connecticut does hereby pledge to and agree with any person with whom the corporation may enter into contracts pursuant to the provisions of this chapter that the state will not limit or alter the rights hereby vested in the corporation until such contracts and the obligations thereunder are fully met and performed on the part of the corporation, provided nothing herein contained shall preclude such limitation or alteration if adequate provision shall be made by law for the protection of such persons entering into contracts with the corporation.

(1972, P.A. 248, S. 12.)

Sec. 32-44. Powers to be interpreted broadly. The powers enumerated in this chapter shall be interpreted broadly to effectuate the purposes thereof and shall not be construed as a limitation of powers.

(1972, P.A. 248, S. 13.)

Sec. 32-45. Inconsistent provisions of law. To the extent that the provisions of this chapter are inconsistent with the provisions of any general statute or special act or parts thereof, the provisions of this chapter shall be deemed controlling.

(1972, P.A. 248, S. 14.)

Sec. 32-46. Tax exemption. (a) The corporation shall have the tax exemptions provided under section 32-23h.

(b) Sales of and the storage, use or other consumption of any tangible personal property or services acquired for incorporation into or used and consumed in connection with the development, construction, rehabilitation, renovation or repair of a project, as defined in subsection (d) of section 32-23d, which project has been approved by the board of directors of the corporation for sales and use tax relief in accordance with procedures adopted by the board shall, subject to any limitations or conditions of such approval, be exempt from sales and use taxes imposed by chapter 219. The corporation may deliver a certificate to the effect that the sale of such tangible property or services is exempt from sales and use taxes imposed by said chapter 219, which certificate may be used in the purchase of such tangible personal property or services and on which certificate each seller of such tangible personal property or services may rely. The corporation shall develop any such certificate in collaboration and consultation with the Commissioner of Revenue Services.

(1972, P.A. 248, S. 15; P.A. 96-107, S. 1, 2; June 12 Sp. Sess. P.A. 12-1, S. 170.)

History: P.A. 96-107 exempted corporation from property taxes levied by the state or any municipality and from franchise, corporate business and income taxes levied by any municipality, effective July 1, 1996; June 12 Sp. Sess. P.A. 12-1 designated existing provisions as Subsec. (a) and amended same by replacing provisions re tax exemptions for corporation with reference to tax exemptions under Sec. 32-23h, and added Subsec. (b) re exemption from sales and use taxes, effective July 1, 2012.

Constitutionality of Secs. 32-32 to 32-46 upheld. 167 C. 111.

Sec. 32-47. Personal liability of directors or persons acting on behalf of the corporation. (a) Neither the directors of Connecticut Innovations, Incorporated nor any person acting on behalf of said corporation executing any notes, bonds, contracts, agreements or other obligations issued pursuant to this chapter shall be liable personally on such notes, bonds, contracts, agreements or obligations, or be subject to any personal liability or accountability by reason of the issuance thereof.

(b) No director shall be personally liable for damage or injury, not wanton or wilful, caused in the performance of his duties and within the scope of his employment. Any person having a complaint for such damage or injury shall present it as a claim against the state under the provisions of chapter 53.

(P.A. 78-357, S. 15, 16; P.A. 79-333; P.A. 88-266, S. 18, 46; P.A. 89-245, S. 17.)

History: P.A. 79-333 added Subsec. (b) re claims against the state and protection of directors from personal liability; P.A. 88-266 substituted “directors” for “members” in Subsec. (a); P.A. 89-245 changed Connecticut Product Development Corporation to Connecticut Innovations, Incorporated.

Sec. 32-47a. Business plan. Report. Not later than January first in each year, Connecticut Innovations, Incorporated shall submit a business plan containing a summary of its projected operations for the year to the joint standing committees of the General Assembly having cognizance of matters relating to the Department of Economic and Community Development, appropriations and capital bonding. Not later than November first, annually, the corporation shall submit a report to the Commissioner of Economic and Community Development, the Auditors of Public Accounts and said joint standing committees, which shall include the following information with respect to new and outstanding financial assistance provided by the corporation during the twelve-month period ending on June thirtieth next preceding the date of the report for each financial assistance program administered by the corporation: (1) A list of the names, addresses and locations of all recipients of such assistance, (2) for each such recipient: (A) The business activities, (B) the Standard Industrial Classification Manual codes, (C) the gross revenues during the recipient's most recent fiscal year, if the recipient is an organization that makes such information public in the normal course of business, or, if the recipient does not make such information public in the normal course of business, the gross revenue information shall be provided for a recipient separately, using a system in which no recipient is listed by name but each is given a separate identity in a manner consistent with the provisions of subsection (c) of section 32-40, (D) the number of employees at the time of application, (E) whether the recipient is a minority or woman-owned business, (F) a summary of the terms and conditions for the assistance, including the type and amount of state financial assistance, job creation or retention requirements, and anticipated wage rates, and (G) the amount of investments from private and other nonstate sources that have been leveraged by the assistance, (3) the economic benefit criteria used in determining which applications have been approved or disapproved, and (4) for each recipient of assistance on or after July 1, 1991, a comparison between the number of jobs to be created, the number of jobs to be retained and the average wage rates for each such category of jobs, as projected in the recipient's application, versus the actual number of jobs created, the actual number of jobs retained and the average wage rates for each such category. The Governor and the chairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and commerce may, after a request to Connecticut Innovations, Incorporated by any of said persons, examine, in confidence, the detailed data, including the specific revenue data for each identifiable business, submitted pursuant to subparagraph (C) of subdivision (2) of this section. The chairpersons and ranking members of said committees may disclose such data to the members of said committees, who shall also keep such data confidential. The report shall also indicate the actual number of full-time jobs and the actual number of part-time jobs in each such category and the benefit levels for each such subcategory. The November first report shall include a summary of the activities of the corporation, including all activities to assist small businesses and minority business enterprises, as defined in section 4a-60g, a complete operating and financial statement and recommendations for legislation to promote the purposes of the corporation. The corporation shall furnish such additional information upon the written request of any such committee at such times as the committee may request.

(P.A. 89-245, S. 18; P.A. 93-382, S. 3, 69; P.A. 95-78, S. 4, 5; 95-250, S. 40, 42; 95-309, S. 11, 12; P.A. 96-211, S. 1, 5, 6; P.A. 99-30, S. 1; P.A. 00-212, S. 1; P.A. 09-172, S. 1.)

History: P.A. 93-382 required corporation to also submit business plan to general assembly committee having cognizance of matters relating to appropriations and capital bonding, report semiannually instead of quarterly and submit reports to auditors of public accounts and same committees and specified content of such reports, effective July 1, 1993; P.A. 95-78 required reports to list federal defense conversion financial assistance programs and applications for such assistance, effective July 1, 1995; P.A. 95-250 and P.A. 96-211 substituted Commissioner and Department of Economic and Community Development for Commissioner and Department of Economic Development and deleted provision re list of federal financial programs for defense conversion projects, effective July 1, 1995; P.A. 95-309 changed effective date of P.A. 95-250 but did not affect this section; P.A. 99-30 changed a requirement for a biannual report regarding financial assistance provided by the corporation to an annual report; P.A. 00-212 made a technical change in Subdiv. (2)(E); P.A. 09-172 amended Subdiv. (2)(C) to add provision re confidentiality for gross revenue information of recipients that do not make such information public, and added provisions allowing Governor and specific legislators to examine revenue data in confidence and permitting disclosure of such data to legislative committee members, effective July 1, 2009.