Connecticut 2021 Regular Session

Connecticut Senate Bill SB00932 Compare Versions

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Version 2 (New)

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7		-	General Assembly Substitute Bill No. 932
	4	+	LCO No. 3701 1 of 4
	5	+
	6	+	General Assembly Raised Bill No. 932
8	7		January Session, 2021
	8	+	LCO No. 3701
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	10	+
	11	+	Referred to Committee on HIGHER EDUCATION AND
	12	+	EMPLOYMENT ADVANCEMENT
	13	+
	14	+
	15	+	Introduced by:
	16	+	(HED)
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14	21		AN ACT CONCERNING AN ALLIANCE DISTRICT TEACHER LOAN
15	22		SUBSIDY PROGRAM.
16	23		Be it enacted by the Senate and House of Representatives in General
17	24		Assembly convened:
18	25
19	26		Section 1. (NEW) (Effective July 1, 2021) (a) The Connecticut Higher 1
20	27		Education Supplemental Loan Authority shall establish, subject to 2
21	28		available funding pursuant to section 2 of this act, an Alliance District 3
22	29		Teacher Loan Subsidy Program for the purpose of subsidizing interest 4
23	30		rates on authority loans, as defined in subdivision (3) of section 10a-223 5
24	31		of the general statutes, to teachers who are employed in a district 6
25	32		designated as an alliance district pursuant to section 10-262u of the 7
26	33		general statutes and who meet the eligibility criteria as established by 8
27		-	the authority and the Commissioner of Education. 9
28		-	(b) The authority shall enter into a memorandum of agreement with 10
29		-	the Commissioner of Education to establish the eligibility criteria and 11
30		-	administrative guidelines for the Alliance District Teacher Loan Subsidy 12
31		-	Program. Such eligibility criteria and guidelines shall include, but need 13
32		-	not be limited to, (1) applicant eligibility, (2) interest rate subsidies and 14
33		-	principal limits on authority loans subject to the Alliance District 15
34		-	Teacher Loan Subsidy Program, (3) the process for verifying the 16
35		-	employment of the applicants, and (4) the requirement that an interest 17
36		-	rate subsidy through the Alliance District Teacher Loan Subsidy 18 Substitute Bill No. 932
	34	+	the authority and the Commissioner of Education. The authority shall 9
	35	+	maintain a separate, nonlapsing account to hold funds for the Alliance 10
	36	+	District Teacher Loan Subsidy Program. The account shall contain any 11
	37	+	moneys required by law to be deposited in the account, including, but 12
	38	+	not limited to, state appropriations or proceeds from the sale of bonds 13
	39	+	authorized under section 2 of this act. Moneys in the account shall be 14
	40	+	expended by the authority for the purposes of the Alliance District 15 Raised Bill No. 932
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43		-	Program shall terminate for any subsidy recipient who ceases to meet 19
44		-	the employment requirements of such program during the term of such 20
45		-	recipient's loan from the authority. 21
46		-	Sec. 2. (NEW) (Effective July 1, 2021) The Connecticut Higher 22
47		-	Education Supplemental Loan Authority shall maintain a separate, 23
48		-	nonlapsing account to hold funds for the Alliance District Teacher Loan 24
49		-	Subsidy Program established pursuant to section 1 of this act. The 25
50		-	account shall contain any moneys required by law to be deposited in the 26
51		-	account, including, but not limited to, state appropriations or proceeds 27
52		-	from the sale of bonds authorized under section 3 of this act. Moneys in 28
53		-	the account shall be (1) expended by the authority for the purposes of 29
54		-	the Alliance District Teacher Loan Subsidy Program and for reasonable 30
55		-	and necessary expenses for the administration of such program, and (2) 31
56		-	held as a reserve by the authority to cover any losses incurred by the 32
57		-	authority from issuing authority loans to refinance one or more eligible 33
58		-	loans, as defined in section 10a-223 of the general statutes, for the 34
59		-	purposes of the Alliance District Teacher Loan Subsidy Program. 35
60		-	Sec. 3. (NEW) (Effective July 1, 2021) (a) For the purposes described in 36
61		-	subsection (b) of this section and section 1 of this act, the State Bond 37
62		-	Commission shall have the power from time to time to authorize the 38
63		-	issuance of bonds of the state in one or more series and in principal 39
64		-	amounts not exceeding seven million dollars a year. 40
65		-	(b) The proceeds of the sale of such bonds, to the extent of the amount 41
66		-	stated in subsection (a) of this section, shall be used by the Connecticut 42
67		-	Higher Education Supplemental Loan Authority for the purpose of the 43
68		-	Alliance District Teacher Loan Subsidy Program established under 44
69		-	section 1 of this act. 45
70		-	(c) All provisions of section 3-20 of the general statutes, or the exercise 46
71		-	of any right or power granted thereby, that are not inconsistent with the 47
72		-	provisions of this section are hereby adopted and shall apply to all 48
73		-	bonds authorized by the State Bond Commission pursuant to this 49
74		-	section. Temporary notes in anticipation of the money to be derived 50 Substitute Bill No. 932
	44	+	LCO No. 3701 2 of 4
	45	+
	46	+	Teacher Loan Subsidy Program, including for reasonable and necessary 16
	47	+	expenses for the administration of such program. 17
	48	+	(b) The Commissioner of Education shall enter into a memorandum 18
	49	+	of agreement with the authority to establish the eligibility criteria and 19
	50	+	administrative guidelines for the Alliance District Teacher Loan Subsidy 20
	51	+	Program. Such eligibility criteria and guidelines shall include, but need 21
	52	+	not be limited to, (1) applicant eligibility, (2) interest rate subsidies and 22
	53	+	principal limits on authority loans subject to the Alliance District 23
	54	+	Teacher Loan Subsidy Program, (3) the process for verifying the 24
	55	+	employment of the applicants, and (4) the requirement that an interest 25
	56	+	rate subsidy through the Alliance District Teacher Loan Subsidy 26
	57	+	Program shall terminate for any subsidy recipient who ceases to meet 27
	58	+	the employment requirements of such program during the term of such 28
	59	+	recipient's loan from the authority. 29
	60	+	(c) The authority shall establish an account to be known as the 30
	61	+	Alliance District Teacher Refinance Loan Loss Reserve account, which 31
	62	+	shall be a separate, nonlapsing account. The account shall contain any 32
	63	+	moneys required by law to be deposited in the account, including, but 33
	64	+	not limited to, state appropriations or proceeds from the sale of bonds 34
	65	+	authorized pursuant to section 2 of this act. Moneys in the account shall 35
	66	+	be expended by the authority (1) to cover any losses incurred by the 36
	67	+	authority from issuing authority loans to refinance one or more eligible 37
	68	+	loans, as defined in section 10a-223 of the general statutes, pursuant to 38
	69	+	the Alliance District Teacher Loan Subsidy Program for teachers 39
	70	+	employed in alliance districts, and (2) for reasonable and necessary 40
	71	+	expenses for the administration of such authority loans. 41
	72	+	Sec. 2. (NEW) (Effective July 1, 2021) (a) For the purposes described in 42
	73	+	subsection (b) of this section and section 1 of this act, the State Bond 43
	74	+	Commission shall have the power from time to time to authorize the 44
	75	+	issuance of bonds of the state in one or more series and in principal 45
	76	+	amounts not exceeding seven million dollars a year. 46
	77	+	(b) The proceeds of the sale of such bonds, to the extent of the amount 47 Raised Bill No. 932
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81		-	from the sale of any such bonds so authorized may be issued in 51
82		-	accordance with section 3-20 of the general statutes and from time to 52
83		-	time renewed. Such bonds shall mature at such time or times not 53
84		-	exceeding twenty years from their respective dates as may be provided 54
85		-	in or pursuant to the resolution or resolutions of the State Bond 55
86		-	Commission authorizing such bonds. None of such bonds shall be 56
87		-	authorized except upon a finding by the State Bond Commission that 57
88		-	there has been filed with it a request for such authorization that is signed 58
89		-	by or on behalf of the Secretary of the Office of Policy and Management 59
90		-	and states such terms and conditions as said commission, in its 60
91		-	discretion, may require. Such bonds issued pursuant to this section shall 61
92		-	be general obligations of the state and the full faith and credit of the state 62
93		-	of Connecticut are pledged for the payment of the principal of and 63
94		-	interest on such bonds as the same become due, and accordingly and as 64
95		-	part of the contract of the state with the holders of such bonds, 65
96		-	appropriation of all amounts necessary for punctual payment of such 66
97		-	principal and interest is hereby made, and the State Treasurer shall pay 67
98		-	such principal and interest as the same become due. 68
	81	+	LCO No. 3701 3 of 4
	82	+
	83	+	stated in subsection (a) of this section, shall be used by the Connecticut 48
	84	+	Higher Education Supplemental Loan Authority for the purpose of the 49
	85	+	Alliance District Teacher Loan Subsidy Program established under 50
	86	+	section 1 of this act. 51
	87	+	(c) All provisions of section 3-20 of the general statutes, or the exercise 52
	88	+	of any right or power granted thereby, that are not inconsistent with the 53
	89	+	provisions of this section are hereby adopted and shall apply to all 54
	90	+	bonds authorized by the State Bond Commission pursuant to this 55
	91	+	section. Temporary notes in anticipation of the money to be derived 56
	92	+	from the sale of any such bonds so authorized may be issued in 57
	93	+	accordance with section 3-20 of the general statutes and from time to 58
	94	+	time renewed. Such bonds shall mature at such time or times not 59
	95	+	exceeding twenty years from their respective dates as may be provided 60
	96	+	in or pursuant to the resolution or resolutions of the State Bond 61
	97	+	Commission authorizing such bonds. None of such bonds shall be 62
	98	+	authorized except upon a finding by the State Bond Commission that 63
	99	+	there has been filed with it a request for such authorization that is signed 64
	100	+	by or on behalf of the Secretary of the Office of Policy and Management 65
	101	+	and states such terms and conditions as said commission, in its 66
	102	+	discretion, may require. Such bonds issued pursuant to this section shall 67
	103	+	be general obligations of the state and the full faith and credit of the state 68
	104	+	of Connecticut are pledged for the payment of the principal of and 69
	105	+	interest on such bonds as the same become due, and accordingly and as 70
	106	+	part of the contract of the state with the holders of such bonds, 71
	107	+	appropriation of all amounts necessary for punctual payment of such 72
	108	+	principal and interest is hereby made, and the State Treasurer shall pay 73
	109	+	such principal and interest as the same become due. 74
99	110		This act shall take effect as follows and shall amend the following
100	111		sections:
101	112
102	113		Section 1 July 1, 2021 New section
103	114		Sec. 2 July 1, 2021 New section
104		-	~~Sec~~. ~~3 July 1, 2021 New section~~
	115	+	Raised Bill No. 932
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106		-	HED Joint Favorable Subst.
	117	+
	118	+
	119	+	LCO No. 3701 4 of 4
	120	+
	121	+	Statement of Purpose:
	122	+	To require the Connecticut Higher Education Supplemental Loan
	123	+	Authority to establish the Alliance District Teacher Loan Subsidy
	124	+	Program to provide low interest student loans to teachers who are
	125	+	employed in alliance districts.
	126	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	127	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	128	+	underlined.]
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