Connecticut HB 5244: AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT'S RECOMMENDATIONS REGARDING THE AGENCY FINANCIAL ASSISTANCE CAP AND EMPLOYMENT PROMISSORY NOTES.

Bill Text

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General Assembly  
Substitute Bill No. 5244  
February Session, 2026 
 
 
 
 
 
AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND 
COMMUNITY DEVELOPMENT'S RECOMMENDATIONS REGARDING 
THE AGENCY FINANCIAL ASSISTANCE CAP AND EMPLOYMENT 
PROMISSORY NOTES.  
Be  it  enacted  by  the  Senate  and  House  of  Representatives  in  General 
Assembly convened: 
 
Section  1.  Section  32-462  of  the  general  statutes  is  repealed  and  the 1 
following  is  substituted  in  lieu  thereof  (Effective  July  1,  2026,  and 2 
applicable  to  income  and  taxable  years  commencing  on  and  after  January  1, 3 
2026): 4 
(a) As used in this section: 5 
(1) "Agency"  means  the  Department  of  Economic  and  Community 6 
Development or Connecticut Innovations, Incorporated. 7 
(2) "Financial   assistance"   means   grants,   loans,   loan   guarantees, 8 
contracts of insurance, investments, or combinations thereof, which are 9 
provided from the proceeds of bonds, notes or other obligations of the 10 
state  or  an  agency  which  constitute  a  debt  or  liability  of  the  state  or 11 
which  are  secured  by  a  special  capital  reserve  fund  payable  from 12 
amounts appropriated or deemed appropriated from the General Fund. 13 
(3) "Applicant"   means   any   eligible   applicant   seeking   financial 14 
assistance  from  an  agency  for  a  business  project.  The  term  "applicant" 15 

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shall not include any political subdivision of the state. 16 
(4) "Business project" means a business proposal undertaken by one 17 
or more applicants, but does not include housing unless undertaken in 18 
combination with another unrelated type of business. 19 
[(5) "Biotechnology business project" means  any commercial project 20 
to  be  used  or  occupied  by  any  person  to  conduct  laboratory  activity 21 
relating to, or the research, development or manufacture of, biologically 22 
active  molecules  or  devices  that  apply  to,  affect  or  analyze  biological 23 
processes.] 24 
(b) (1) No  agency  or  agencies  may  award  more than  a total  of [ten] 25 
twenty-five million dollars of financial assistance during any two-year 26 
period  to  an  applicant  or  for  a  business  project  unless  such  financial 27 
assistance is specifically authorized by an act of the General Assembly 28 
which  has  been  enacted  before,  on  or  after  July  1, [1994] 2026.  (2)  The 29 
provisions  of  subdivision  (1)  of  this  subsection  shall  not  apply  to  any 30 
awards funded or to be funded by bonds authorized to be issued by the 31 
State Bond Commission before July 1, 1994. 32 
[(c) Notwithstanding the provisions of subsection (b) of this section, 33 
no agency or agencies may award more than twenty million dollars of 34 
financial assistance for a biotechnology business project during any two-35 
year period unless such financial assistance is specifically authorized by 36 
an  act  of  the  General  Assembly  which  has  been  enacted  before,  on  or 37 
after July 1, 2001.] 38 
Sec.  2.  Section  31-51r  of  the  general  statutes  is  repealed  and  the 39 
following is substituted in lieu thereof (Effective from passage): 40 
(a) As used in this section: 41 
(1) "Employer"  means  any  person  engaged  in  business  who  has 42 
twenty-six  or  more  employees,  including  the  state  and  any  political 43 
subdivision thereof. 44 
(2) "Employee" means any person engaged in service to an employer 45 

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in the business of [his] the employer. 46 
(3) "Employment   promissory   note"   means   any   instrument   or 47 
agreement  executed  on  or  after  October  1,  1985,  which  requires  an 48 
employee to pay the employer, or [his] the employer's agent or assignee, 49 
a  sum  of  money  if  the  employee  leaves  such  employment  before  the 50 
passage  of  a  stated  period  of  time.  "Employment  promissory  note" 51 
includes any such instrument or agreement which states such payment 52 
of moneys constitutes reimbursement for training previously provided 53 
to the employee, but does not include a promissory note entered into by 54 
an employer and employee for the full or partial repayment of any fee 55 
relating to a federal H-1B visa and paid by an employer on behalf of an 56 
employee. 57 
(b) On  or  after  October  1,  1985,  no  employer  may  require,  as  a 58 
condition  of  employment,  any  employee  or  prospective  employee  to 59 
execute   an   employment   promissory   note.   The   execution   of   an 60 
employment promissory note as a condition of employment is against 61 
public policy and any such note shall be void. If any such note is part of 62 
an  employment  agreement,  the  invalidity  of  such  note  shall  not  affect 63 
the other provisions of such agreement. 64 
(c) Nothing   in   this   section   shall   prohibit   or   render   void   any 65