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General Assembly Substitute Bill No. 932
January Session, 2021
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. 9
(b) The authority shall enter into a memorandum of agreement with 10
the Commissioner of Education to establish the eligibility criteria and 11
administrative guidelines for the Alliance District Teacher Loan Subsidy 12
Program. Such eligibility criteria and guidelines shall include, but need 13
not be limited to, (1) applicant eligibility, (2) interest rate subsidies and 14
principal limits on authority loans subject to the Alliance District 15
Teacher Loan Subsidy Program, (3) the process for verifying the 16
employment of the applicants, and (4) the requirement that an interest 17
rate subsidy through the Alliance District Teacher Loan Subsidy 18 Substitute Bill No. 932
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Program shall terminate for any subsidy recipient who ceases to meet 19
the employment requirements of such program during the term of such 20
recipient's loan from the authority. 21
Sec. 2. (NEW) (Effective July 1, 2021) The Connecticut Higher 22
Education Supplemental Loan Authority shall maintain a separate, 23
nonlapsing account to hold funds for the Alliance District Teacher Loan 24
Subsidy Program established pursuant to section 1 of this act. The 25
account shall contain any moneys required by law to be deposited in the 26
account, including, but not limited to, state appropriations or proceeds 27
from the sale of bonds authorized under section 3 of this act. Moneys in 28
the account shall be (1) expended by the authority for the purposes of 29
the Alliance District Teacher Loan Subsidy Program and for reasonable 30
and necessary expenses for the administration of such program, and (2) 31
held as a reserve by the authority to cover any losses incurred by the 32
authority from issuing authority loans to refinance one or more eligible 33
loans, as defined in section 10a-223 of the general statutes, for the 34
purposes of the Alliance District Teacher Loan Subsidy Program. 35
Sec. 3. (NEW) (Effective July 1, 2021) (a) For the purposes described in 36
subsection (b) of this section and section 1 of this act, the State Bond 37
Commission shall have the power from time to time to authorize the 38
issuance of bonds of the state in one or more series and in principal 39
amounts not exceeding seven million dollars a year. 40
(b) The proceeds of the sale of such bonds, to the extent of the amount 41
stated in subsection (a) of this section, shall be used by the Connecticut 42
Higher Education Supplemental Loan Authority for the purpose of the 43
Alliance District Teacher Loan Subsidy Program established under 44
section 1 of this act. 45
(c) All provisions of section 3-20 of the general statutes, or the exercise 46
of any right or power granted thereby, that are not inconsistent with the 47
provisions of this section are hereby adopted and shall apply to all 48
bonds authorized by the State Bond Commission pursuant to this 49
section. Temporary notes in anticipation of the money to be derived 50 Substitute Bill No. 932
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from the sale of any such bonds so authorized may be issued in 51
accordance with section 3-20 of the general statutes and from time to 52
time renewed. Such bonds shall mature at such time or times not 53
exceeding twenty years from their respective dates as may be provided 54
in or pursuant to the resolution or resolutions of the State Bond 55
Commission authorizing such bonds. None of such bonds shall be 56
authorized except upon a finding by the State Bond Commission that 57
there has been filed with it a request for such authorization that is signed 58
by or on behalf of the Secretary of the Office of Policy and Management 59
and states such terms and conditions as said commission, in its 60
discretion, may require. Such bonds issued pursuant to this section shall 61
be general obligations of the state and the full faith and credit of the state 62
of Connecticut are pledged for the payment of the principal of and 63
interest on such bonds as the same become due, and accordingly and as 64
part of the contract of the state with the holders of such bonds, 65
appropriation of all amounts necessary for punctual payment of such 66
principal and interest is hereby made, and the State Treasurer shall pay 67
such principal and interest as the same become due. 68
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
Sec. 3 July 1, 2021 New section
HED Joint Favorable Subst.