2023 Connecticut General Statutes › Title 32 - Commerce and Economic and Community Development › Chapter 581 - Innovation Capital Act of 1989. Connecticut Innovations, Incorporated › Section 32-39f. - CTNext. Purposes. Board of directors. Executive director.

(a) Connecticut Innovations, Incorporated shall establish a subsidiary, to be known as CTNext.
(1) The primary purpose of CTNext shall be to foster and oversee the growth and continuous improvement of a state-wide entrepreneurial ecosystem that is supportive of Connecticut innovators and entrepreneurs and to initiate changes to practices that the CTNext board of directors deems to be outdated to improve such ecosystem; to maintain an active and conspicuous presence at all nodes of such ecosystem and continuously increase connections between such nodes; and to regularly reassess the health of such ecosystem, identify its changing needs, adopt initiatives or adapt existing initiatives to meet such needs and regularly inform the General Assembly of such needs by proposing recommended legislation deemed necessary or desirable by the CTNext board of directors.
(2) The further purposes of CTNext shall be to support the growth of start-up and growth stage businesses; to promote entrepreneur community-building; to connect start-up and growth stage entrepreneurs with other start-up and growth stage entrepreneurs and with state, federal and private resources; to facilitate the establishment of innovation places and the development, growth and evolution of innovation places individually and in mutually supportive connections to other innovation places; to facilitate mentorship for start-up and growth stage entrepreneurs; to provide technical training and resources to start-up and growth stage businesses and entrepreneurs; to facilitate innovation and entrepreneurship at institutions of higher education; and to identify areas in which current practices and policies at such institutions are not realizing their full potential.
(3) CTNext shall do all things necessary and proper to carry out the purposes set forth in subdivisions (1) and (2) of this subsection.
(4) CTNext shall not be an employer, as defined in section 5-270. Connecticut Innovations, Incorporated shall establish CTNext pursuant to the provisions of section 32-11e, except that at least half of the members of the CTNext board of directors shall not be required to be members of the board of directors of Connecticut Innovations, Incorporated or their designees or officers or employees of the corporation. No further action is required for the establishment of the subsidiary, except the adoption of a resolution for the subsidiary. CTNext shall constitute a successor authority to Connecticut Innovations, Incorporated in accordance with the provisions of sections 4-38d, 4-38e and 4-39, for the purposes of the powers in subdivisions (22), (28) and (40) of section 32-39 transferred from Connecticut Innovations, Incorporated to CTNext pursuant to section 32-39.
(b) CTNext shall be overseen by a board of directors, which shall be known as the CTNext board of directors or the CTNext board. The CTNext board of directors shall consist of twelve members, at least half of whom shall be serial entrepreneurs representing a diverse range of growth sectors of the Connecticut economy. By education or experience, such members shall be qualified in one or more of the following: Start-up business development, growth stage business development, investment, innovation place development, urban planning and technology commercialization in higher education. The CTNext board shall consist of the following members: (1) One appointed by the Governor for an initial term of two years; (2) one appointed by the speaker of the House of Representatives for an initial term of two years; (3) one appointed by the president pro tempore of the Senate for an initial term of two years; (4) one appointed by the majority leader of the House of Representatives for an initial term of one year; (5) one appointed by the majority leader of the Senate for an initial term of one year; (6) one appointed by the minority leader of the House of Representatives for an initial term of one year; (7) one appointed by the minority leader of the Senate for an initial term of one year; (8) two jointly appointed by the chairpersons of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding for an initial term of two years; and (9) the executive director of Connecticut Innovations, Incorporated, the Commissioner of Economic and Community Development and the Chief Workforce Officer, each of whom shall serve ex officio. Thereafter, all members shall be appointed by the original appointing authority for two-year terms. Any member of the board shall be eligible for reappointment. Any vacancy occurring other than by expiration of term shall be filled in the same manner as the original appointment for the balance of the unexpired term. The appointing authority for any member may remove such member for misfeasance, malfeasance, wilful neglect of duty or failure to attend three consecutive board meetings. For the purposes of this section, “serial entrepreneur” means an entrepreneur having brought one or more start-up businesses to venture capital funding by an institutional investor and “growth stage business” means a business (A) that has been incorporated for ten years or less, (B) that has raised private capital, and (C) whose annual gross revenue has increased by twenty per cent for each of the three previous income years of such business.
(c) All initial appointments to the board of directors shall be made not later than September 1, 2016. The chief executive officer of Connecticut Innovations, Incorporated shall be the chairperson of the board until January 1, 2019. On and after January 1, 2019, the chairperson of the board shall be a member of the CTNext board of directors elected by said board to serve for two-year terms. The chief executive officer of Connecticut Innovations, Incorporated shall remain a member of said board. The CTNext board shall meet at least quarterly, and at such other times as the chairperson deems necessary.
(d) Members of the CTNext board of directors may not designate a representative to perform in their absence their respective duties under this section or section 32-39g.
(e) The chairperson shall, with the approval of the members of the CTNext board of directors, appoint an executive director of CTNext who shall be an employee of CTNext and paid a salary prescribed by the members. The executive director shall supervise the administrative affairs and technical activities of CTNext in accordance with the directives of the board.
(f) Each member of the CTNext board of directors shall serve without compensation but shall be entitled to reimbursement for such member's actual and necessary expenses incurred in the performance of such member's official duties.
(g) Members may engage in private employment, or in a profession or business, subject to any applicable laws, rules and regulations of the state regarding official ethics or conflict of interest.
(h) A majority of the directors of the CTNext board then seated shall constitute a quorum for the transaction of any business or the exercise of any power of CTNext. For the transaction of any business or the exercise of any power of the authority, and except as otherwise provided in this section or section 32-39g, the CTNext board may act by a majority of the members present at any meeting at which a quorum is in attendance.
(i) CTNext shall continue as long as it has obligations outstanding and until its existence is terminated by law, provided no such termination shall affect any outstanding contractual obligation of CTNext and the state shall succeed to the obligations of CTNext under any contract. Upon the termination of the existence of CTNext, all its rights and properties shall pass to and be vested in Connecticut Innovations, Incorporated.
(j) Notwithstanding any provision of the general statutes, it shall not constitute a conflict of interest for a trustee, director, partner or officer of any person, firm or corporation, or any individual having a financial interest in a person, firm or corporation, to serve as a member of the CTNext board of directors, provided such trustee, director, partner, officer or individual shall abstain from deliberation, action or vote by the board in specific respect to such person, firm or corporation. All members shall be deemed public officials and shall otherwise adhere to the code of ethics for public officials set forth in chapter 10, except that no member shall be required to file a statement of financial interest as described in section 1-83.
(May Sp. Sess. P.A. 16-3, S. 1; P.A. 17-212, S. 3; P.A. 18-178, S. 46; June Sp. Sess. P.A. 21-2, S. 246.)
History: May Sp. Sess. P.A. 16-3 effective June 2, 2016; P.A. 17-212 made technical changes in Subsec. (b), effective July 10, 2017; P.A. 18-178 substantially amended Subsec. (a) including by designating existing provisions re purposes of CTNext as Subdivs. (1) and (2), adding provisions re state-wide entrepreneurial ecosystem, adopting and adapting initiatives, informing the General Assembly, supporting growth of start-up and growth stage businesses, promoting entrepreneur community-building, facilitating development, growth and evolution of innovation places, and identifying areas in which current practices and policies at institutions are not realizing their full potential, and adding Subdiv. (3) re CTNext to do all things necessary and proper to carry out purposes of Subdivs. (1) and (2), designating existing provisions re CTNext not an employer as Subdiv. (4), amended Subsec. (c) by deleting provision re first meeting of the board, and adding provision re chairperson of the board, and chief executive officer of Connecticut Innovations, Incorporated to remain member of board, and amended Subsec. (j) by adding provision notwithstanding the general statutes, replacing “complies with all applicable provisions of chapter 10, except as provided in this subsection” with “shall abstain from deliberation, action or vote by the board in specific respect to such person, firm or corporation”, and made technical and conforming changes, effective July 1, 2018; June Sp. Sess. P.A. 21-2 amended Subsec. (b) by replacing “eleven” with “twelve” re members and “a majority” with “at least half” re serial entrepreneurs, and adding reference to Chief Workforce Officer and making conforming changes in Subdiv. (9), effective July 1, 2021.