(a) Connecticut Innovations, Incorporated shall establish a subsidiary, to be known as CTNext. The purposes of CTNext shall be to foster innovation, start-up and growth stage businesses and entrepreneur community building; to serve as a catalyst to protect and enhance the innovation ecosystem; 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; 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; and to facilitate innovation and entrepreneurship at institutions of higher education. 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 eleven members, a majority 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 and the Commissioner of Economic and Community Development, both 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 schedule the first meeting of the board, which shall be held not later than October 15, 2016. The chief executive officer of Connecticut Innovations, Incorporated shall be the chairperson of the 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) 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 complies with all applicable provisions of chapter 10, except as provided in this subsection. All members shall be deemed public officials and shall 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.)

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.