LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00103-R01-
SB.docx
1 of 10
General Assembly Substitute Bill No. 103
February Session, 2022
AN ACT CONCERNING THE CONNECTICUT HEALTH AND
EDUCATIONAL FACILITIES AUTHORITY AND THE CONNECTICUT
HIGHER EDUCATION SUPPLEMENTAL LOAN AUTHORITY.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsections (b) and (c) of section 10a-178 of the general 1
statutes are repealed and the following is substituted in lieu thereof 2
(Effective October 1, 2022): 3
(b) "Project" [,] means (1) in the case of a participating institution for 4
higher education, [means] a structure suitable for use as a dormitory or 5
other housing facility, including housing for staff members, employees 6
or students at such institution of higher education, dining hall, student 7
union, administration building, academic building, library, laboratory, 8
research facility, classroom, athletic facility, health care facility, and 9
maintenance, storage or utility facility and other structures or facilities 10
related thereto or required or useful for the instruction of students or 11
the conducting of research or the operation of an institution for higher 12
education, including parking and other facilities or structures essential 13
or convenient for the orderly conduct of such institution for higher 14
education, also including equipment and machinery and other similar 15
items necessary or convenient for the operation of a particular facility or 16
structure in the manner for which its use is intended or for the operation 17 Substitute Bill No. 103
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00103-
R01-SB.docx }
2 of 10
of a participating institution for higher education, or any combination 18
thereof, [but shall not include such items as books, fuel, supplies or other 19
items the purchase of which is customarily deemed to result in a current 20
operating charge;] or a project for any use or purpose approved by the 21
authority, including, but not limited to, provisions for working capital; 22
(2) in the case of a participating health care institution, [means] a 23
structure suitable for use as a hospital, clinic, or other health care facility, 24
laboratory, laundry, residence facility, including housing for nurses, 25
interns, staff members, employees or students at such health care 26
institution and their immediate families and for physically or mentally 27
handicapped persons, administration building, research facility, and 28
maintenance, storage or utility facility and other structures or facilities 29
related thereto or required or useful for the operation of the project, 30
including parking and other facilities or structures essential or 31
convenient for the orderly operation of such project, also including 32
equipment and machinery and other similar items necessary or 33
convenient for the operation of the project in the manner for which its 34
use is intended or for the operation of a participating health care 35
institution, or any combination thereof, [but shall not include such items 36
as fuel, supplies or other items the purchase of which is customarily 37
deemed to result in a current operating charge;] or a project for any use 38
or purpose approved by the authority, including, but not limited to, 39
provisions for working capital; (3) in the case of a participating qualified 40
nonprofit organization, [means] a structure or facility owned in its 41
entirety by, or suitable for use in accordance with the charitable or 42
nonprofit status of the qualified nonprofit organization, also including 43
equipment and machinery and other similar items necessary or 44
convenient for the operation of the project in the manner for which its 45
use is intended or for the operation of a participating qualified nonprofit 46
corporation, or any combination thereof, or a project for any use or 47
purpose approved by the authority, including, but not limited to, 48
provisions for working capital; and [,] (4) in the case of a participating 49
nursing home, [means] a structure or facility suitable for use as a 50
nursing home, residential care home, rest home, health care facility for 51
the handicapped, mental health facility or independent living facility 52 Substitute Bill No. 103
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00103-
R01-SB.docx }
3 of 10
subject to the licensing requirements of chapter 368v and appurtenant 53
facilities, equipment and machinery and other similar items necessary 54
or convenient for the operation of a particular facility or structure in the 55
manner for which its use is intended or for the operation of a 56
participating nursing home, or any combination thereof, or a project for 57
any use or purpose approved by the authority, including, but not 58
limited to, working capital; 59
(c) "Cost" as applied to a project or any portion thereof financed under 60
the provisions of this chapter embraces all or any part of (1) the cost of 61
construction and acquisition of all lands, structures, real or personal 62
property, rights, rights-of-way, franchises, easements and interests 63
acquired or used for a project, (2) the cost of demolishing or removing 64
any buildings or structures on land so acquired, including the cost of 65
acquiring any lands to which such buildings or structures may be 66
moved, (3) the cost of all machinery and equipment, financing charges, 67
interest prior to, during and for a period after completion of such 68
construction, provisions for working capital, reserves for principal and 69
interest and for extensions, enlargements, additions, replacements, 70
renovations and improvements, (4) cost of engineering, financial and 71
legal services, plans, specifications, studies, surveys, estimates of cost 72
and of revenues, administrative expenses, expenses necessary or 73
incident to determining the feasibility or practicability of constructing 74
the project, [and] (5) such other expenses as may be necessary or 75
incident to the construction and acquisition of the project, the financing 76
of such construction and acquisition and the placing of the project in 77
operation, and (6) any other expenses necessary to finance a project; 78
Sec. 2. Subsection (k) of section 10a-179 of the general statutes is 79
repealed and the following is substituted in lieu thereof (Effective October 80
1, 2022): 81
(k) (1) The authority may form one or more subsidiaries to carry out 82
the public purposes of the authority and may transfer to any such 83
subsidiary or to any subsidiary established by the General Assembly 84
through public or special act any moneys and real or personal property 85 Substitute Bill No. 103
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00103-
R01-SB.docx }
4 of 10
of any kind or nature. Any such subsidiary may be organized as a stock 86
or nonstock corporation or a limited liability company. Each such 87
subsidiary shall have and may exercise such powers of the authority as 88
are set forth in the resolution of the authority prescribing the purposes 89
for which such subsidiary is formed and such other powers provided to 90
it by law. Each such subsidiary shall be deemed a quasi-public agency 91
for purposes of chapter 12 and shall have all the privileges, immunities, 92
tax exemptions and other exemptions of the authority, including the 93
privileges, immunities, tax exemptions and other exemptions provided 94
under the general statutes for special capital reserve funds. Each such 95
subsidiary shall be subject to suit provided its liability shall be limited 96
solely to the assets, revenues and resources of the subsidiary and 97
without recourse to the general funds, revenues, resources or any other 98
assets of the authority. Each such subsidiary is authorized to assume or 99
take title to property subject to any existing lien, encumbrance or 100
mortgage and to mortgage, convey or dispose of its assets and pledge 101
its revenues in order to secure any borrowing, for the purpose of 102
refinancing, rehabilitating or improving its assets, provided each such 103
borrowing or mortgage shall be a special obligation of the subsidiary, 104
which obligation may be in the form of bonds, bond anticipation notes 105
and other obligations to the extent permitted under this chapter to fund 106
and refund the same and provide for the rights of the holders thereof, 107
and to secure the same by pledge of revenues, notes and other assets 108
and which shall be payable solely from the assets, revenues and other 109
resources of the subsidiary. The authority shall have the power to assign 110
to a subsidiary any rights, moneys or other assets it has under any 111
governmental program including the nursing home loan program. 112
(2) Each such subsidiary shall act through its board of directors at 113
least one-half of which shall be members of the board of directors of the 114
authority, or their designees or officers or employees of the authority. A 115
resolution of the authority shall prescribe the purposes for which each 116
such subsidiary is formed. 117
(3) The provisions of section 1-125, subsection (e) of section 10a-185 118 Substitute Bill No. 103
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00103-
R01-SB.docx }
5 of 10
and this subsection shall apply to any officer, director, designee or 119
employee appointed as a member, director or officer of any such 120
subsidiary. Any such persons so appointed shall not be personally liable 121
for the debts, obligations or liabilities of any such subsidiary as provided 122
in said section 1-125. The subsidiary shall and the authority may provide 123
for the indemnification to protect, save harmless and indemnify such 124
officer, director, designee or employee as provided by said section 1-125
125. 126
(4) The authority or such subsidiary may take [,] such actions as are 127
necessary to comply with the provisions of the Internal Revenue Code 128
of 1986 or any subsequent corresponding internal revenue code of the 129
United States, as from time to time amended, to qualify and maintain 130
any such subsidiary as a corporation exempt from taxation under said 131
internal revenue code. 132
(5) The authority may make loans to each such subsidiary or to any 133
subsidiary established by the General Assembly through public or 134
special act, following standard authority procedures, from its assets and 135
the proceeds of its bonds, notes and other obligations, provided the 136
source and security for the repayment of such loans is derived from the 137
assets, revenues and resources of the subsidiary. 138
Sec. 3. Section 10a-221 of the general statutes is repealed and the 139
following is substituted in lieu thereof (Effective October 1, 2022): 140
It is declared that, for the benefit of the people of the state, the 141
increase of their commerce, welfare and prosperity and the 142
improvement of their health and living conditions, it is essential that this 143
and future generations of youths be given the fullest opportunity to 144
learn and to develop their intellectual capacity and skills. It is 145
recognized that costs connected with collegiate or postsecondary 146
education are increasingly burdensome and that it is essential that 147
students attending institutions for higher education or postsecondary 148
education programs, and parents and others responsible for paying the 149
costs thereof, be provided with lower cost financial assistance in order 150 Substitute Bill No. 103
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00103-
R01-SB.docx }
6 of 10
to help such students to achieve higher levels of learning and 151
development of their intellectual capacity and skills. It is also recognized 152
that Connecticut institutions for higher education should be provided 153
with appropriate additional means to assist qualified students 154
financially to achieve the required levels of learning and development 155
of their intellectual capacity and skills. It is the purpose of this chapter 156
and policy of the state to provide a measure of financial assistance to 157
students in or from the state, their parents and others responsible for the 158
costs of their education and an alternative method to enable Connecticut 159
institutions for higher education to assist qualified students to attend 160
such institutions, all to the public benefit and good, to the extent and 161
manner provided herein. 162
Sec. 4. Section 10a-223 of the 2022 supplement to the general statutes, 163
as amended by section 273 of public act 21-2 of the June special session, 164
is repealed and the following is substituted in lieu thereof (Effective 165
October 1, 2022): 166
In this chapter, the following words and terms shall have the 167
following meanings unless the context indicates another or different 168
meaning or intent: 169
(1) "Authority" means the Connecticut Higher Education 170
Supplemental Loan Authority constituted as a subsidiary of the 171
Connecticut Health and Educational Facilities Authority as provided in 172
section 10a-179a; 173
(2) "Authorized officer" means an employee of the Connecticut 174
Health and Educational Facilities Authority or of the authority who is 175
authorized by the board of directors of the authority to execute and 176
deliver documents and papers and to act in the name of and on behalf 177
of the authority; 178
(3) "Authority loans" means education loans by the authority, or loans 179
by the authority from the proceeds of bonds for the purpose of funding 180
education loans; 181 Substitute Bill No. 103
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00103-
R01-SB.docx }
7 of 10
(4) "Board" means the board of directors of the authority; 182
(5) "Bonds" or "revenue bonds" means revenue bonds or notes of the 183
authority issued under the provisions of this chapter, including revenue 184
refunding bonds or notes; 185
(6) "Bond resolution" means the resolution or resolutions of the 186
authority and the trust agreement, if any, authorizing the issuance of 187
and providing for the terms and conditions applicable to bonds; 188
(7) "Borrower" means (A) an individual who has an outstanding loan 189
from the authority, (B) an individual who attends a Connecticut 190
institution for higher education, enrolls in a Connecticut high-value 191
certificate program, enrolls in a Connecticut postsecondary education 192
program or currently resides in the state, and has received or agreed to 193
pay an education loan, or (C) any parent who has received or agreed to 194
pay an education loan on behalf of an individual who attends a 195
Connecticut institution for higher education, enrolls in a Connecticut 196
postsecondary education program or currently resides in the state; 197
(8) "Connecticut Health and Educational Facilities Authority" means 198
the quasi-public authority established pursuant to section 10a-179, as 199
amended by this act; 200
(9) "Connecticut institution for higher education" means an 201
institution for higher education within the state; 202
(10) "Default insurance" means insurance insuring education loans, 203
authority loans or bonds against default; 204
(11) "Default reserve fund" means a fund established pursuant to a 205
bond resolution for the purpose of securing education loans, authority 206
loans or bonds; 207
(12) "Education loan" means a loan which is made to a student in or 208
from the state or a parent of such student to finance attendance at an 209
institution for higher education, [or] enrollment in a high-value 210 Substitute Bill No. 103
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00103-
R01-SB.docx }
8 of 10
certificate program or enrollment in a postsecondary education 211
program, or to a borrower to refinance one or more eligible loans; 212
(13) "Loan funding deposit" means moneys or other property 213
deposited by a Connecticut institution for higher education with the 214
authority, a guarantor or a trustee for the purpose of (A) providing 215
security for bonds, (B) funding a default reserve fund, (C) acquiring 216
default insurance, or (D) defraying costs of the authority, such moneys 217
or properties to be in such amounts as deemed necessary by the 218
authority or guarantor as a condition for such institution's participation 219
in the authority's programs; 220
(14) "Institution for higher education" means a degree-granting 221
educational institution within the United States authorized by 222
applicable law to provide a program of education beyond the high 223
school level and (A) described in Section 501(c)(3) of the Internal 224
Revenue Code of 1986, or any subsequent corresponding internal 225
revenue code of the United States, as from time to time amended, and 226
exempt from taxation under Section 501(a) of said code with respect to 227
a trade or business carried on by such institution which is not an 228
unrelated trade or business, determined by applying Section 513(a) of 229
said code to such organization or a foundation established for its benefit, 230
or (B) exempt from taxation under said code as a governmental unit; 231
(15) "Participating institution for higher education" means a 232
Connecticut institution for higher education which, pursuant to the 233
provisions of this chapter, undertakes the financing directly or 234
indirectly of education loans as provided in this chapter; 235
(16) "Parent" means any parent, legal guardian or sponsor of a 236
student at an institution for higher education, [or] enrolled in a high-237
value certificate program or enrolled in a postsecondary education 238
program; 239
(17) "Education loan series portfolio" means all education loans made 240
by the authority or by or on behalf of a specific participating institution 241 Substitute Bill No. 103
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00103-
R01-SB.docx }
9 of 10
for higher education which are funded from the proceeds of a related 242
specific bond issue of the authority; 243
(18) "Education assistance program" means a program to assist in 244
financing the costs of education through education loans or education 245
grants [, or both] or any other form of financial assistance; 246
(19) "Education grant" means a grant, scholarship, fellowship or other 247
nonrepayable assistance awarded by the authority to a student currently 248
residing in the state to finance the attendance of the student at a 249
Connecticut institution for higher education, [or] enrollment in a 250
Connecticut high-value certificate program or enrollment in a 251
Connecticut postsecondary education program, or a grant, scholarship, 252
fellowship or other nonrepayable assistance awarded by or on behalf of 253
a Connecticut institution for higher education from the proceeds of 254
funds provided by the authority to a student from the state to finance 255
the student's attendance at such institution; 256
(20) "Eligible loan" means any loan that is in repayment that was (A) 257
made by the authority, or (B) made to a borrower by any other private 258
or governmental lender to finance attendance at an institution for higher 259
education, [or] enrollment in a high-value certificate program or 260
enrollment in a postsecondary education program; 261
(21) "High-value certificate program" means a noncredit sub-262
baccalaureate certificate program offered by an institution of higher 263
education or a private occupational school that the Chief Workforce 264
Officer determines to meet the needs of employers in the state; [and] 265
(22) "Connecticut high-value certificate program" means a high-value 266
certificate program offered by an institution of higher education or a 267
private occupational school in the state; [.] 268
(23) "Postsecondary education program" means an educational 269
program as designated by the authority and offered by a private 270
occupational school that is authorized by the executive director of the 271
Office of Higher Education pursuant to sections 10a-22a to 10a-22o, 272 Substitute Bill No. 103
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00103-
R01-SB.docx }
10 of 10
inclusive, and 10a-22u to 10a-22w, inclusive; and 273
(24) "Private occupational school" has the same meaning as provided 274
in section 10a-22a. 275
Sec. 5. Subdivision (9) of section 10a-204 of the general statutes is 276
repealed and the following is substituted in lieu thereof (Effective October 277
1, 2022): 278
(9) To distribute excess corporation funds to the Connecticut Health 279
and Educational Facilities Authority or any subsidiary of said authority 280
for the purpose of such recipient's provision of financial assistance to 281
qualified students attending institutions of higher education or enrolled 282
in postsecondary education programs, including, without limitation, 283
loans, scholarships or grants and financial literacy education. 284
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2022 10a-178(b) and (c)
Sec. 2 October 1, 2022 10a-179(k)
Sec. 3 October 1, 2022 10a-221
Sec. 4 October 1, 2022 10a-223
Sec. 5 October 1, 2022 10a-204(9)
HED Joint Favorable Subst.