General Assembly Raised Bill No. 1101
January Session, 2021 LCO No. 6649
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT ESTABLISHING CT RENAISSANCE AND CONCERNING
INVESTMENTS IN RENAISSANCE ZONES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
1 Section 1. (NEW) (Effective October 1, 2021) (a) As used in this section:
2 (1) "Authority" means the Capital Region Development Authority
3 established pursuant to section 32-601 of the general statutes;
4 (2) "Community development corporation" means an entity that is a
5 tax-exempt organization under Section 501(c) of the Internal Revenue
6 Code of 1986, or any subsequent corresponding internal revenue code
7 of the United States, as amended from time to time, that seeks to support
8 and revitalize a community;
9 (3) "Community renaissance account" means the account established
10 under subsection (d) of this section;
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11 (4) "Municipality" means a municipality that has:
12 (A) Based on data published in the Office of Policy and
13 Management's Municipal Fiscal Indicators report, (i) persistent poverty,
14 as demonstrated by being among the ten municipalities in the state with
15 the lowest per capita income in each of the three most recent years for
16 which data are available, (ii) persistent unemployment, as demonstrated
17 by being among the ten municipalities in the state with the highest
18 unemployment rate in each of the three most recent years for which data
19 are available, and (iii) a population density of more than five thousand
20 residents per square mile, as of the most recent data available;
21 (B) Based on the United States Census Bureau's 2014-2018 American
22 Community Survey five-year estimates, a Black or African-American
23 population that is among the ten highest in the state and a Hispanic or
24 Latino population that is among the ten highest in the state; and
25 (C) Overall needs that are consistently among the highest in the state,
26 as measured by having a score among the ten highest on the public
27 investment community eligibility index, calculated under section 7-545
28 of the general statutes, in each of the last three fiscal years for which
29 such scores are available; and
30 (5) "Renaissance zone" means a geographic area designated by CT
31 Renaissance, established pursuant to subsection (b) of this section, that
32 is within an eligible municipality.
33 (b) (1) (A) The authority shall establish a subsidiary to be known as
34 CT Renaissance. The authority's board of directors shall adopt a
35 resolution prescribing the purposes for such subsidiary and no further
36 action shall be required for the establishment of such subsidiary.
37 (B) CT Renaissance shall be deemed a quasi-public agency for
38 purposes of chapter 12 of the general statutes. The authority may
39 transfer to any such subsidiary any moneys and real or personal
40 property. Each such subsidiary shall have all the privileges, immunities,
41 tax exemptions and other exemptions of the authority.
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42 (C) CT Renaissance may sue and shall be subject to suit, provided the
43 liability of such subsidiary shall be limited solely to the assets, revenues
44 and resources of such subsidiary and without recourse to the general
45 funds, revenues, resources or any other assets of the authority. Such
46 subsidiary shall have the power to do all acts and things necessary or
47 convenient to carry out the purposes for which such subsidiary is
48 established, including, but not limited to: (i) Solicit, receive and accept
49 aid, grants or contributions from any source of money, property or labor
50 or other things of value, subject to the conditions upon which such
51 grants and contributions may be made, including, but not limited to,
52 gifts, grants or loans from any department, agency or quasi-public
53 agency of the United States or the state, or from any organization
54 recognized as a nonprofit organization under Section 501(c)(3) of the
55 Internal Revenue Code of 1986, or any subsequent corresponding
56 internal revenue code of the United States, as amended from time to
57 time; (ii) enter into agreements with persons upon such terms and
58 conditions as are consistent with the purposes of such subsidiary; and
59 (iii) acquire, take title, lease, purchase, own, manage, hold and dispose
60 of real and personal property and lease, convey or deal in or enter into
61 agreements with respect to such property. Such subsidiary shall act
62 through its board of directors.
63 (D) The provisions of section 1-125 of the general statutes and this
64 section shall apply to any officer, director, designee or employee
65 appointed as a member, director or officer of such subsidiary. Neither
66 any such persons so appointed nor the directors, officers or employees
67 of the authority shall be personally liable for the debts, obligations or
68 liabilities of such subsidiary as provided in section 1-125 of the general
69 statutes. Such subsidiary shall, and the authority may, provide for the
70 indemnification to protect, save harmless and indemnify such officer,
71 director, designee or employee as provided by section 1-125 of the
72 general statutes.
73 (E) The executive director and all officers, directors and employees of
74 such subsidiary shall be state employees for purposes of sections 1-79 to
75 1-89, inclusive, of the general statutes.
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76 (F) The authority or such subsidiary may take such actions as are
77 necessary to comply with the provisions of the Internal Revenue Code
78 of 1986, or any subsequent corresponding internal revenue code of the
79 United States, as amended from time to time, to qualify and maintain
80 any such subsidiary as a corporation exempt from taxation under said
81 Internal Revenue Code.
82 (G) The authority may make loans or grants to, and may guarantee
83 specified obligations of, such subsidiary, following standard authority
84 procedures, from the authority's assets and the proceeds of its bonds,
85 notes and other obligations, provided the source and security, if any, for
86 the repayment of any such loans or guarantees is derived from the
87 assets, revenues and resources of such subsidiary.
88 (2) The primary purpose of CT Renaissance shall be to target
89 investments in communities that have a high population of Black or
90 African-American residents, or Hispanic or Latino residents, or both,
91 high poverty rates, high unemployment rates and needs that are not
92 being met, in order to combat the long-term effects, including economic
93 effects, of racial discrimination and bias that have affected people who
94 are Black or African-American, or Hispanic or Latino, or both. CT
95 Renaissance shall do all things necessary and proper to carry out such
96 purpose.
97 (3) CT Renaissance shall not be an employer, as defined in section 5-
98 270 of the general statutes.
99 (4) (A) CT Renaissance shall be overseen by a board of directors,
100 which shall consist of the following members:
101 (i) Two appointed by the speaker of the House of Representatives;
102 (ii) Two appointed by the president pro tempore of the Senate;
103 (iii) One appointed by the majority leader of the House of
104 Representatives;
105 (iv) One appointed by the majority leader of the Senate;
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106 (v) One appointed by the minority leader of the House of
107 Representatives;
108 (vi) One appointed by the minority leader of the Senate; and
109 (vii) Two appointed by the Governor.
110 (B) Notwithstanding the provisions of subsection (a) of section 4-9b
111 of the general statutes, appointing authorities shall, in cooperation with
112 one another, make a good faith effort to ensure that, to the extent
113 possible, the membership of the board of directors closely reflects the
114 racial and ethnic demographics of the renaissance zones that will be
115 served by CT Renaissance. Each appointing authority shall inform each
116 of the others of such appointing authority's appointee or planned
117 appointee to facilitate compliance with this subparagraph.
118 (C) All initial appointments to the board shall be made not later than
119 December 1, 2021, and shall terminate on December 1, 2024, and
120 December 1, 2025, as applicable, regardless of when the initial
121 appointment was made. Any appointed member may serve more than
122 one term.
123 (D) Appointed members of the board shall serve for four-year terms
124 and members first appointed shall have the following terms: (i)
125 Members appointed by the Governor and members appointed by the
126 majority leader of the House of Representatives and the minority leader
127 of the House of Representatives shall initially serve a term of three years,
128 and (ii) members appointed by the speaker of the House of
129 Representatives, the president pro tempore of the Senate, the majority
130 leader of the Senate and the minority leader of the Senate shall initially
131 serve a term of four years. Members shall continue to serve until their
132 successors are appointed.
133 (E) Any vacancy shall be filled by the appointing authority. Any
134 vacancy occurring other than by expiration of term shall be filled for the
135 balance of the unexpired term.
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136 (F) The members of the board shall serve without compensation, but
137 shall, within the limits of available funds, be reimbursed for expenses
138 necessarily incurred in the performance of their duties.
139 (5) The first meeting of the CT Renaissance board shall be held not
140 later than December 31, 2021, on a date and at a time and place
141 determined jointly by the speaker of the House of Representatives and
142 the president pro tempore of the Senate. The chairperson of the board
143 shall be chosen by the members of the board. The board shall meet at
144 least quarterly and at such other times as the chairperson deems
145 necessary.
146 (6) A majority of the directors of the CT Renaissance board then
147 seated shall constitute a quorum for the transaction of any business or
148 the exercise of any power of the board. For the transaction of any
149 business or the exercise of any power of the board, the board may act by
150 a majority of the members present at any meeting at which a quorum is
151 in attendance.
152 (7) The CT Renaissance board shall appoint an executive director,
153 who shall employ such individuals as may be necessary or desirable to
154 review and make recommendations on (A) applications submitted for
155 designation as a renaissance zone, (B) project plans proposed for
156 renaissance zones, and (C) grant applications for projects in renaissance
157 zones. Such executive director and individuals shall not be employees,
158 as defined in section 5-270 of the general statutes. The board shall make
159 a good faith effort to ensure that individuals appointed as the executive
160 director and any assistants and individuals contracted with under this
161 subdivision reflect the racial and ethnic demographics of the
162 populations CT Renaissance will serve through the designation of
163 renaissance zones.
164 (8) CT Renaissance shall continue as long as it has obligations
165 outstanding and until its existence is terminated by law, provided no
166 such termination shall affect any outstanding contractual obligation of
167 CT Renaissance and the state shall succeed to the obligations of CT
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168 Renaissance under any contract. Upon the termination of the existence
169 of CT Renaissance, all its rights and properties shall pass to and be
170 vested in the authority.
171 (c) (1) On or before April 1, 2022, the CT Renaissance board shall (A)
172 develop an application process and an application form to allow
173 community development corporations to apply to the board for a
174 renaissance zone designation, (B) post such application form and any
175 information the board deems necessary regarding the application
176 process on the authority's Internet web site, and (C) issue a request for
177 applications for renaissance zone designation. In addition to the initial
178 round of applications, the board may consider additional applications
179 on a schedule and in accordance with deadlines prescribed by the board.
180 (2) Any community development corporation may submit an
181 application to the CT Renaissance board for a renaissance zone
182 designation within an eligible municipality. Such community
183 development corporation shall consult with the legislative body of such
184 eligible municipality prior to submitting such application to the board.
185 (3) As part of the application, a community development corporation
186 shall submit:
187 (A) Information concerning the geographic boundaries of the
188 proposed renaissance zone, including, but not limited to, a map
189 indicating such boundaries;
190 (B) Information on the residents of and businesses located within the
191 proposed renaissance zone, including demographics, business success
192 and failure rates, per capita income, unemployment rates, education
193 levels, health levels and any other data or measures of well-being that
194 the applicant deems relevant;
195 (C) A detailed project plan on how grants from the community
196 renaissance account will be used to serve the needs of residents of and
197 businesses located within the renaissance zone in one or more of the
198 following ways:
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199 (i) Creating new housing or rehabilitating existing housing within the
200 renaissance zone;
201 (ii) Increasing the percentage of owner-occupied housing within the
202 renaissance zone;
203 (iii) Supporting the education needs of residents of the renaissance
204 zone;
205 (iv) Providing job training and employment to residents of the
206 renaissance zone;
207 (v) Providing financing to businesses within the renaissance zone;
208 (vi) Improving public infrastructure within the renaissance zone;
209 (vii) Providing entrepreneurship training and support to residents of
210 or businesses within the renaissance zone; or
211 (viii) Creating a loan guarantee fund to encourage broader lending
212 participation by residents of and businesses located within the
213 renaissance zone.
214 (4) The CT Renaissance executive director and staff may assist any
215 community development corporation in developing its application and
216 project plan. The executive director and such staff shall review all
217 applications submitted pursuant to subdivision (2) of this subsection
218 and make recommendations to the CT Renaissance board regarding
219 submitted applications.
220 (5) (A) The CT Renaissance board shall select finalist applicants and
221 shall hold at least one public hearing on each such finalist application.
222 The hearing shall be held in the eligible municipality in which the
223 proposed renaissance zone is located and shall consist of a presentation
224 by the applicant on its application and public comments on such
225 application. The chairperson of the board shall post (i) the date, time and
226 place of such hearing at least ten days prior to the date of such hearing,
227 in a conspicuous place in or near the town clerk's office of the eligible
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228 municipality where the proposed renaissance zone is located and on
229 such eligible municipality's Internet web site, and (ii) the applicant's
230 submitted application and any other information the chairperson deems
231 relevant to such application.
232 (B) Any finalist applicant may submit a revised application to the
233 board based on public comments received at such public hearing. The
234 board may, but shall not be required to, hold another public hearing on
235 such revised application.
236 (C) (i) The board shall give preference to community development
237 corporations with project plans that include diverse partners,
238 partnerships with entities located within the proposed renaissance zone
239 or substantial private funding.
240 (ii) The board may (I) designate no more than two renaissance zones
241 within an eligible municipality, (II) approve, at the time it approves a
242 community development corporation's application for a renaissance
243 zone designation, the community development corporation's project
244 plan and authorize a grant from the community renaissance acco