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General Assembly Raised Bill No. 932
January Session, 2021
LCO No. 3701
Referred to Committee on HIGHER EDUCATION AND
EMPLOYMENT ADVANCEMENT
Introduced by:
(HED)
AN ACT CONCERNING AN ALLIANCE DISTRICT TEACHER LOAN
SUBSIDY PROGRAM.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2021) (a) The Connecticut Higher 1
Education Supplemental Loan Authority shall establish, subject to 2
available funding pursuant to section 2 of this act, an Alliance District 3
Teacher Loan Subsidy Program for the purpose of subsidizing interest 4
rates on authority loans, as defined in subdivision (3) of section 10a-223 5
of the general statutes, to teachers who are employed in a district 6
designated as an alliance district pursuant to section 10-262u of the 7
general statutes and who meet the eligibility criteria as established by 8
the authority and the Commissioner of Education. The authority shall 9
maintain a separate, nonlapsing account to hold funds for the Alliance 10
District Teacher Loan Subsidy Program. The account shall contain any 11
moneys required by law to be deposited in the account, including, but 12
not limited to, state appropriations or proceeds from the sale of bonds 13
authorized under section 2 of this act. Moneys in the account shall be 14
expended by the authority for the purposes of the Alliance District 15 Raised Bill No. 932
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Teacher Loan Subsidy Program, including for reasonable and necessary 16
expenses for the administration of such program. 17
(b) The Commissioner of Education shall enter into a memorandum 18
of agreement with the authority to establish the eligibility criteria and 19
administrative guidelines for the Alliance District Teacher Loan Subsidy 20
Program. Such eligibility criteria and guidelines shall include, but need 21
not be limited to, (1) applicant eligibility, (2) interest rate subsidies and 22
principal limits on authority loans subject to the Alliance District 23
Teacher Loan Subsidy Program, (3) the process for verifying the 24
employment of the applicants, and (4) the requirement that an interest 25
rate subsidy through the Alliance District Teacher Loan Subsidy 26
Program shall terminate for any subsidy recipient who ceases to meet 27
the employment requirements of such program during the term of such 28
recipient's loan from the authority. 29
(c) The authority shall establish an account to be known as the 30
Alliance District Teacher Refinance Loan Loss Reserve account, which 31
shall be a separate, nonlapsing account. The account shall contain any 32
moneys required by law to be deposited in the account, including, but 33
not limited to, state appropriations or proceeds from the sale of bonds 34
authorized pursuant to section 2 of this act. Moneys in the account shall 35
be expended by the authority (1) to cover any losses incurred by the 36
authority from issuing authority loans to refinance one or more eligible 37
loans, as defined in section 10a-223 of the general statutes, pursuant to 38
the Alliance District Teacher Loan Subsidy Program for teachers 39
employed in alliance districts, and (2) for reasonable and necessary 40
expenses for the administration of such authority loans. 41
Sec. 2. (NEW) (Effective July 1, 2021) (a) For the purposes described in 42
subsection (b) of this section and section 1 of this act, the State Bond 43
Commission shall have the power from time to time to authorize the 44
issuance of bonds of the state in one or more series and in principal 45
amounts not exceeding seven million dollars a year. 46
(b) The proceeds of the sale of such bonds, to the extent of the amount 47 Raised Bill No. 932
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stated in subsection (a) of this section, shall be used by the Connecticut 48
Higher Education Supplemental Loan Authority for the purpose of the 49
Alliance District Teacher Loan Subsidy Program established under 50
section 1 of this act. 51
(c) All provisions of section 3-20 of the general statutes, or the exercise 52
of any right or power granted thereby, that are not inconsistent with the 53
provisions of this section are hereby adopted and shall apply to all 54
bonds authorized by the State Bond Commission pursuant to this 55
section. Temporary notes in anticipation of the money to be derived 56
from the sale of any such bonds so authorized may be issued in 57
accordance with section 3-20 of the general statutes and from time to 58
time renewed. Such bonds shall mature at such time or times not 59
exceeding twenty years from their respective dates as may be provided 60
in or pursuant to the resolution or resolutions of the State Bond 61
Commission authorizing such bonds. None of such bonds shall be 62
authorized except upon a finding by the State Bond Commission that 63
there has been filed with it a request for such authorization that is signed 64
by or on behalf of the Secretary of the Office of Policy and Management 65
and states such terms and conditions as said commission, in its 66
discretion, may require. Such bonds issued pursuant to this section shall 67
be general obligations of the state and the full faith and credit of the state 68
of Connecticut are pledged for the payment of the principal of and 69
interest on such bonds as the same become due, and accordingly and as 70
part of the contract of the state with the holders of such bonds, 71
appropriation of all amounts necessary for punctual payment of such 72
principal and interest is hereby made, and the State Treasurer shall pay 73
such principal and interest as the same become due. 74
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2021 New section
Sec. 2 July 1, 2021 New section
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Statement of Purpose:
To require the Connecticut Higher Education Supplemental Loan
Authority to establish the Alliance District Teacher Loan Subsidy
Program to provide low interest student loans to teachers who are
employed in alliance districts.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]