Sec. 32-5a. Conditions re relocation of certain businesses which received state financial assistance.
Sec. 32-5a. Conditions re relocation of certain businesses which received state
financial assistance. The Commissioner of Economic and Community Development
and the board of directors of the Connecticut Development Authority shall require, as
a condition of any financial assistance provided on and after June 23, 1993, under any
program administered by the Department of Economic and Community Development
or such authority to any business organization, that such business organization: (1) Shall
not relocate outside of the state for ten years after receiving such assistance or during
the term of a loan or loan guarantee, whichever is longer, unless the full amount of the
assistance is repaid to the state and a penalty equal to five per cent of the total assistance
received is paid to the state and (2) shall, if the business organization relocates within
the state during such period, offer employment at the new location to its employees from
the original location if such employment is available. For the purposes of subdivision (1)
of this section, the value of a guarantee shall be equal to the amount of the state's liability
under the guarantee. As used in this section, "relocate" means the physical transfer
of the operations of a business in its entirety or of any division of a business which
independently receives any financial assistance from the state from the location such
business or division occupied at the time it accepted the financial assistance to another
location. Notwithstanding the provisions of this section, the Commissioner of Economic
and Community Development shall adopt regulations in accordance with chapter 54 to
establish the terms and conditions of repayment, including specifying the conditions
under which repayment may be deferred, following a determination by the commissioner
of a legitimate hardship.
(P.A. 88-146; P.A. 93-218, S. 1, 4; 93-360, S. 14, 19; P.A. 95-250, S. 1; P.A. 96-211, S. 1, 5, 6.)
History: P.A. 93-218 applied requirements of the section to any financial assistance, instead of loans and grants only,
provided by Connecticut development authority and Connecticut Innovations, Incorporated, as well as commissioner of
economic development, to any business organization instead of only those with twenty-five or more employees, extended
period of time for condition on not relocating out of state from 3 to 10 years, imposed penalty on relocating during such
period and added provision specifying value of a guarantee for purposes of Subdiv. (1), effective June 23, 1993; P.A. 93-360 exempted financial assistance provided by Connecticut Innovations, Incorporated from requirements of the section,
effective June 14, 1993; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of Economic Development
with Commissioner and Department of Economic and Community Development.