Sec. 32-701. Required terms and conditions of agreement for state assistance. Repayment. Modification.
Sec. 32-701. Required terms and conditions of agreement for state assistance.
Repayment. Modification. (a) The terms and conditions of any agreement for state
assistance under any program of the general statutes to a business entity operated for
profit administered by the Department of Economic and Community Development,
Connecticut Development Authority and Connecticut Innovations, Incorporated, shall
include provisions for (1) specific goals for the creation and retention of full-time and
part-time jobs and for periodic reports by the recipient on progress in achieving such
goals if the primary purpose of the state assistance is job creation or retention, and (2)
a requirement that an applicant for any type of state assistance, except grants and loans
of a term of less than one year, provide the agency with appropriate security for such
financial assistance, including, but not limited to, a letter of credit, a lien on real property
or a security interest in goods, equipment, inventory or other property of any kind and
that the recipient of such state assistance will remain in substantial material compliance
with state and federal law.
(b) If a recipient fails to create or retain the number of jobs in this state stipulated
in an agreement for state assistance and such failure is due to circumstances within the
control of such recipient, the recipient shall repay an amount that is in proportion to the
number of jobs that it failed to create or retain unless the awarding authority deems it
is in the best interests of the state or the community in which the recipient is located to
revise such job creation goals. In such event, the parties shall enter into a revised
agreement subject to the approvals required by subsection (c) of this section. Upon
request of the awarding authority, a recipient shall provide information necessary to
determine compliance with this section, including information showing the compensation paid to employees on jobs created as a result of the state assistance.
(c) The awarding authority, in its discretion, may modify the terms and conditions
of any state assistance, including, but not limited to, forgiveness of repayment of a loan,
revision of job creation and retention goals or changes to interest rates, provided such
awarding authority notifies the State Bond Commission or the appropriate board of
directors, if any, of the modification.
(P.A. 02-86, S. 2.)
History: P.A. 02-86 effective July 1, 2002.