Sec. 32-56. (Formerly Sec. 32-9a). Defense conversion. Determination of severe impact of defense contract cutbacks on a municipality by the commissioner.
Sec. 32-56. (Formerly Sec. 32-9a). Defense conversion. Determination of severe impact of defense contract cutbacks on a municipality by the commissioner.
(a) In view of the contemplated reduction in defense expenditures by the federal government and the fact that Connecticut ranks first in the nation on a per capita basis in defense
contracts awarded, the department shall engage special agent technologists who shall
take steps to assist medium and small manufacturers to find solutions for the problems
related to defense conversion and in executing adaptation to new technologies. Such
assistance shall be made available to medium-sized and small companies which lack
sufficient resources to keep abreast of new technologies in fields allied to their own or
in entering new markets not oriented to defense production.
(b) It is found and declared that Connecticut ranks very high among the states on
a per capita basis in the amounts of prime defense contracts awarded; that the economies
of many areas in the state and the employment opportunities offered by many businesses
in the state are heavily defense-dependent and would suffer severe adverse impacts in
the event of prime defense contract cutbacks; that, in the event that defense-dependent
areas or businesses in the state were severely impacted by a prime defense contract
cutback, there would be a serious need for non-defense-related industrial and commercial development and activity in such areas or by such businesses to provide and maintain
employment and tax revenues; that private and public capital investment in the construction, renovation, and expansion of nondefense manufacturing and other industrial facilities will best contribute to maintaining employment and the existing tax base and to the
development of a wider-based and more balanced economy in the state; and that the tax
and other financial incentives provided by this section to encourage such public and
private investment in businesses and municipalities severely impacted by prime defense
contract cutbacks, are important and necessary applications of the resources of the state
in the exercise of its responsibility to preserve the health, safety and general welfare in
the state of its people; and therefore the necessity, in the public interest and for the public
benefit and good, of the provisions of this section is hereby declared as a matter of
legislative determination.
(c) The commissioner may determine that the economy of a municipality has been
severely impacted by a prime defense contract cutback. The commissioner shall make
such a determination only after a public hearing, at which hearing information shall be
submitted to support the findings required by this section.
(d) (1) In determining that a municipality has been severely impacted by a prime
defense contract cutback the commissioner shall find that (A) one or more businesses
in the municipality has experienced a cancellation of one or more prime defense contracts, or subcontracts entered into in connection with prime defense contracts, or a
significant reduction in prime defense contract or related subcontract awards or orders;
(B) such prime defense contract cutback has caused or will cause a loss of employment
opportunities in the municipality; (C) such prime defense contract cutback has caused
or will cause a severe adverse impact in the municipality. In making such findings the
commissioner may consider the extent to which the businesses in the municipality are,
or were at the period in time before the prime defense contract cutback occurred, dependent on prime defense contracts or on subcontracts related to such prime defense contracts; the extent to which one or more prime defense contractors in the municipality
has or plans to reduce its work force or the amount of defense subcontract awards or
orders which would be performed by businesses in the municipality; the extent to which
the unemployed in the municipality are or were defense workers with specialized skills
not easily transferable to other industries; the existence of abandoned or underutilized
defense-related manufacturing facilities in the municipality; and any other factors which
the commissioner deems relevant to such finding. (2) The commissioner's determination
that a municipality is severely impacted by a prime defense contract cutback shall be
effective for two years from the date of the decision of the commissioner. The commissioner may renew such determination for two additional two-year periods following a
public hearing and upon making the findings required by this subsection. Notwithstanding the provisions of this subdivision, if (A) a military installation of the United States
Department of Defense at which military vehicle engines were produced is located in
any such municipality, (B) the military installation is closed pursuant to 10 USC 2687,
and (C) the Department of Defense plans to convey the site of said installation to said
municipality, the determination by the commissioner that the municipality is severely
impacted by a prime defense contract cutback shall remain effective until such conveyance and any environmental remediation of the site are completed, and such determination may be renewed for a period not exceeding two years.
(e) Any business facility located in a municipality declared by the commissioner
to be severely impacted by a prime defense contract cutback pursuant to subsection (c)
of this section, which facility would be a "manufacturing facility", as defined in subsection (d) of section 32-9p, but for the fact that the facility is not in a "distressed municipality", as defined in subsection (b) of section 32-9p, will be deemed a manufacturing
facility for the purposes of sections 32-9p to 32-9s, inclusive, section 12-217e, and
subdivisions (59) and (60) of section 12-81, if the purpose of the construction, expansion,
renovation or acquisition of such facility is not dependent on prime defense contracts
or related subcontracts. The provisions of this section shall apply to a business facility
located in a building that was vacant on July 1, 1998, and was formerly used for defense
manufacturing.
(f) Any municipality declared by the commissioner to be severely impacted by a
prime defense contract cutback will be deemed a distressed municipality under sections
8-190 and 8-195 for the purpose of assisting non-defense-dependent projects.
(February, 1965, P.A. 348, S. 1; P.A. 73-599, S. 24; P.A. 79-230; P.A. 80-267, S. 4; P.A. 98-146, S. 4, 5; May 9 Sp.
Sess. P.A. 02-4, S. 18; P.A. 04-186, S. 24.)
History: P.A. 73-599 replaced Connecticut development commission with department of commerce, here referred to
as "the department" (P.A. 77-614 replaced department of commerce with department of economic development); P.A. 79-230 added Subsec. (b) re feasibility study; P.A. 80-267 replaced Subsec. (b) provisions with legislative finding and added
Subsecs. (c) to (f); Sec. 32-9a transferred to Sec. 32-56 in 1981; P.A. 98-146 amended Subsec. (e) by applying provisions
to a business facility located in a building vacant on July 1, 1998, effective July 1, 1998, and applicable to assessment
years commencing on and after October 1, 1998; May 9 Sp. Sess. P.A. 02-4 amended Subsec. (d) to provide that the
commissioner may renew determinations under said subsection for two additional two-year periods, effective August 15,
2002; P.A. 04-186 amended Subsec. (d) by designating existing provisions as Subdivs. (1) and (2), changing former
Subdiv. numbers to Subpara. letters, and amending Subdiv. (2) to provide for different effective period for, and renewal
of, commissioner's determination that a municipality meeting criteria re military installation is severely impacted by prime
defense contract cutback, effective June 1, 2004.