Substitute House Bill No. 5244 proposes significant amendments to the financial assistance framework for the Department of Economic and Community Development (DECD) and Connecticut Innovations, Inc. (CI). The bill increases the cap on financial assistance for business projects from $10 million to $25 million over a two-year period without requiring legislative approval, while also eliminating the separate $20 million cap for biotechnology projects. These changes are intended to facilitate a more efficient allocation of financial resources to eligible business initiatives, allowing for larger funding amounts without prior legislative consent.

Additionally, the bill modifies the existing prohibition on employment promissory notes by permitting employers with more than 25 employees to require such notes for the repayment of fees associated with federal H-1B visas paid on behalf of employees. This creates an exception to the general ban on promissory notes as a condition of employment. The financial assistance provisions of the bill will take effect on July 1, 2026, while the changes regarding employment promissory notes will be effective immediately upon passage. The bill also addresses aspects of the H-1B visa program, including a $100,000 petition fee imposed in 2025, and is related to sHB 5003, which expands the ban on employment promissory notes to all employers. The Commerce Committee has reported the bill favorably with unanimous support.

Statutes affected:
Raised Bill: 32-462, 31-51r
CE Joint Favorable Substitute: 32-462, 31-51r
File No. 315: 32-462, 31-51r