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General Assembly Substitute Bill No. 865
January Session, 2019
AN ACT CONCERNING NO OR LOW INTEREST STUD ENT LOANS
FOR CERTAIN STUDENTS .
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2019) (a) The Connecticut Higher 1
Education Supplemental Loan Authority shall establish a STEM Loan 2
Subsidy Program, subject to available funding, for the purpose of 3
reducing interest rates on authority loans, as defined in section 10a-223 4
of the general statutes, to individuals who (1) are employed in the 5
science, technology, engineering, or math industries, and (2) commit to 6
live in the state for not less than five years. The authority shall 7
maintain a separate, nonlapsing account to hold funds for the STEM 8
Loan Subsidy Program. The account shall contain any mo neys 9
required by law to be deposited in the account, including, but not 10
limited to, state appropriations or proceeds from the sale of bonds 11
authorized under section 2 of this act. Moneys in the account shall be 12
expended by the authority for the purposes of the STEM Loan Subsidy 13
Program, including for reasonable and necessary expenses for the 14
administration such program. 15
(b) The Secretary of the Office of Policy and Management may enter 16
into a memorandum of agreement with the authority to establish the 17
administrative guidelines for the STEM Loan Subsidy Program, 18
including, but not limited to, (1) applicant eligibility, (2) positions in 19
the science, technology, engineering or math industries that qualify for 20 Substitute Bill No. 865
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the STEM Loan Subsidy Program, (3) reduced interest rate and 21
principal limits on authority loans subject to the STEM Loan Subsidy 22
Program, and (4) the process for verifying the residency and 23
employment of the applicants. 24
Sec. 2. (NEW) (Effective July 1, 2019) (a) For the purposes described 25
in subsection (b) of this section and section 1 of this act, the State Bond 26
Commission shall have the power from time to time to authorize the 27
issuance of bonds of the state in one or more series and in principal 28
amounts not exceeding in the aggregate fifteen million dollars. 29
(b) The proceeds of the sale of such bonds, to the extent of the 30
amount stated in subsection (a) of this section, shall be used by the 31
Office of Policy and Management for the purpose of the STEM Loan 32
Subsidy Program established under section 1 of this act. 33
(c) All provisions of section 3-20 of the general statutes, or the 34
exercise of any right or power granted thereby, that are not 35
inconsistent with the provisions of this section are hereby adopted and 36
shall apply to all bonds authorized by the State Bond Commission 37
pursuant to this section. Temporary notes in anticipation of the money 38
to be derived from the sale of any such bonds so authorized may be 39
issued in accordance with section 3-20 of the general statutes and from 40
time to time renewed. Such bonds shall mature at such time or times 41
not exceeding twenty years from their respective dates as may be 42
provided in or pursuant to the resolution or resolutions of the State 43
Bond Commission authorizing such bonds. None of such bonds shall 44
be authorized except upon a finding by the State Bond Commission 45
that there has been filed with it a request for such authorization that is 46
signed by or on behalf of the Secretary of the Office of Policy and 47
Management and states such terms and conditions as said commission, 48
in its discretion, may require. Such bonds issued pursuant to this 49
section shall be general obligations of the state and the full faith and 50
credit of the state of Connecticut are pledged for the payment of the 51
principal of and interest on such bonds as the same become due, and 52
accordingly and as part of the contract of the state with the holders of 53 Substitute Bill No. 865
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such bonds, appropriation of all amounts necessary for punctual 54
payment of such principal and interest is hereby made, and the State 55
Treasurer shall pay such principal and interest as the same become 56
due. 57
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2019 New section
Sec. 2 July 1, 2019 New section
Statement of Legislative Commissioners:
In Section 1(a), "of the general statutes" was added for consistency of
style.
HED Joint Favorable Subst.-LCO C/R FIN