Substitute Senate Bill No. 103
Public Act No. 22-41
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. Subsection (k) of section 10a-179 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(k) (1) The authority may form one or more subsidiaries to carry out
the public purposes of the authority and may transfer to any such
subsidiary or to any subsidiary established by the General Assembly
through public or special act any moneys and real or personal property
of any kind or nature. Any such subsidiary may be organized as a stock
or nonstock corporation or a limited liability company. Each such
subsidiary shall have and may exercise such powers of the authority as
are set forth in the resolution of the authority prescribing the purposes
for which such subsidiary is formed and such other powers provided to
it by law. Each such subsidiary shall be deemed a quasi-public agency
for purposes of chapter 12 and shall have all the privileges, immunities,
tax exemptions and other exemptions of the authority, including the
privileges, immunities, tax exemptions and other exemptions provided
under the general statutes for special capital reserve funds. Each such Substitute Senate Bill No. 103
Public Act No. 22-41 2 of 8
subsidiary shall be subject to suit provided its liability shall be limited
solely to the assets, revenues and resources of the subsidiary and
without recourse to the general funds, revenues, resources or any other
assets of the authority. Each such subsidiary is authorized to assume or
take title to property subject to any existing lien, encumbrance or
mortgage and to mortgage, convey or dispose of its assets and pledge
its revenues in order to secure any borrowing, for the purpose of
refinancing, rehabilitating or improving its assets, provided each such
borrowing or mortgage shall be a special obligation of the subsidiary,
which obligation may be in the form of bonds, bond anticipation notes
and other obligations to the extent permitted under this chapter to fund
and refund the same and provide for the rights of the holders thereof,
and to secure the same by pledge of revenues, notes and other assets
and which shall be payable solely from the assets, revenues and other
resources of the subsidiary. The authority shall have the power to assign
to a subsidiary any rights, moneys or other assets it has under any
governmental program including the nursing home loan program.
(2) Each such subsidiary shall act through its board of directors at
least one-half of which shall be members of the board of directors of the
authority, or their designees or officers or employees of the authority. A
resolution of the authority shall prescribe the purposes for which each
such subsidiary is formed.
(3) The provisions of section 1-125, subsection (e) of section 10a-185
and this subsection shall apply to any officer, director, designee or
employee appointed as a member, director or officer of any such
subsidiary. Any such persons so appointed shall not be personally liable
for the debts, obligations or liabilities of any such subsidiary as provided
in said section 1-125. The subsidiary shall and the authority may provide
for the indemnification to protect, save harmless and indemnify such
officer, director, designee or employee as provided by said section 1-
125. Substitute Senate Bill No. 103
Public Act No. 22-41 3 of 8
(4) The authority or such subsidiary may take [,] such actions as are
necessary to comply with the provisions of the Internal Revenue Code
of 1986 or any subsequent corresponding internal revenue code of the
United States, as from time to time amended, to qualify and maintain
any such subsidiary as a corporation exempt from taxation under said
internal revenue code.
(5) The authority may make loans to each such subsidiary or to any
subsidiary established by the General Assembly through public or
special act, following standard authority procedures, from its assets and
the proceeds of its bonds, notes and other obligations, provided the
source and security for the repayment of such loans is derived from the
assets, revenues and resources of the subsidiary.
Sec. 2. Section 10a-221 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
It is declared that, for the benefit of the people of the state, the
increase of their commerce, welfare and prosperity and the
improvement of their health and living conditions, it is essential that this
and future generations of youths be given the fullest opportunity to
learn and to develop their intellectual capacity and skills. It is
recognized that costs connected with collegiate or postsecondary
education are increasingly burdensome and that it is essential that
students attending institutions for higher education or postsecondary
education programs, and parents and others responsible for paying the
costs thereof, be provided with lower cost financial assistance in order
to help such students to achieve higher levels of learning and
development of their intellectual capacity and skills. It is also recognized
that Connecticut institutions for higher education should be provided
with appropriate additional means to assist qualified students
financially to achieve the required levels of learning and development
of their intellectual capacity and skills. It is the purpose of this chapter
and policy of the state to provide a measure of financial assistance to Substitute Senate Bill No. 103
Public Act No. 22-41 4 of 8
students in or from the state, their parents and others responsible for the
costs of their education and an alternative method to enable Connecticut
institutions for higher education to assist qualified students to attend
such institutions, all to the public benefit and good, to the extent and
manner provided herein.
Sec. 3. Section 10a-223 of the 2022 supplement to the general statutes,
as amended by section 273 of public act 21-2 of the June special session,
is repealed and the following is substituted in lieu thereof (Effective
October 1, 2022):
In this chapter, the following words and terms shall have the
following meanings unless the context indicates another or different
meaning or intent:
(1) "Authority" means the Connecticut Higher Education
Supplemental Loan Authority constituted as a subsidiary of the
Connecticut Health and Educational Facilities Authority as provided in
section 10a-179a;
(2) "Authorized officer" means an employee of the Connecticut
Health and Educational Facilities Authority or of the authority who is
authorized by the board of directors of the authority to execute and
deliver documents and papers and to act in the name of and on behalf
of the authority;
(3) "Authority loans" means education loans by the authority, or loans
by the authority from the proceeds of bonds for the purpose of funding
education loans;
(4) "Board" means the board of directors of the authority;
(5) "Bonds" or "revenue bonds" means revenue bonds or notes of the
authority issued under the provisions of this chapter, including revenue
refunding bonds or notes; Substitute Senate Bill No. 103
Public Act No. 22-41 5 of 8
(6) "Bond resolution" means the resolution or resolutions of the
authority and the trust agreement, if any, authorizing the issuance of
and providing for the terms and conditions applicable to bonds;
(7) "Borrower" means (A) an individual who has an outstanding loan
from the authority, (B) an individual who attends a Connecticut
institution for higher education, enrolls in a Connecticut high-value
certificate program, enrolls in a Connecticut postsecondary education
program or currently resides in the state, and has received or agreed to
pay an education loan, or (C) any parent who has received or agreed to
pay an education loan on behalf of an individual who attends a
Connecticut institution for higher education, enrolls in a Connecticut
postsecondary education program or currently resides in the state;
(8) "Connecticut Health and Educational Facilities Authority" means
the quasi-public authority established pursuant to section 10a-179, as
amended by this act;
(9) "Connecticut institution for higher education" means an
institution for higher education within the state;
(10) "Default insurance" means insurance insuring education loans,
authority loans or bonds against default;
(11) "Default reserve fund" means a fund established pursuant to a
bond resolution for the purpose of securing education loans, authority
loans or bonds;
(12) "Education loan" means a loan which is made to a student in or
from the state or a parent of such student to finance attendance at an
institution for higher education, [or] enrollment in a high-value
certificate program or enrollment in a postsecondary education
program, or to a borrower to refinance one or more eligible loans;
(13) "Loan funding deposit" means moneys or other property Substitute Senate Bill No. 103
Public Act No. 22-41 6 of 8
deposited by a Connecticut institution for higher education with the
authority, a guarantor or a trustee for the purpose of (A) providing
security for bonds, (B) funding a default reserve fund, (C) acquiring
default insurance, or (D) defraying costs of the authority, such moneys
or properties to be in such amounts as deemed necessary by the
authority or guarantor as a condition for such institution's participation
in the authority's programs;
(14) "Institution for higher education" means a degree-granting
educational institution within the United States authorized by
applicable law to provide a program of education beyond the high
school level and (A) described in Section 501(c)(3) of the Internal
Revenue Code of 1986, or any subsequent corresponding internal
revenue code of the United States, as from time to time amended, and
exempt from taxation under Section 501(a) of said code with respect to
a trade or business carried on by such institution which is not an
unrelated trade or business, determined by applying Section 513(a) of
said code to such organization or a foundation established for its benefit,
or (B) exempt from taxation under said code as a governmental unit;
(15) "Participating institution for higher education" means a
Connecticut institution for higher education which, pursuant to the
provisions of this chapter, undertakes the financing directly or
indirectly of education loans as provided in this chapter;
(16) "Parent" means any parent, legal guardian or sponsor of a
student at an institution for higher education, [or] enrolled in a high-
value certificate program or enrolled in a postsecondary education
program;
(17) "Education loan series portfolio" means all education loans made
by the authority or by or on behalf of a specific participating institution
for higher education which are funded from the proceeds of a related
specific bond issue of the authority; Substitute Senate Bill No. 103
Public Act No. 22-41 7 of 8
(18) "Education assistance program" means a program to assist in
financing the costs of education through education loans or education
grants [, or both] or any other form of financial assistance;
(19) "Education grant" means a grant, scholarship, fellowship or other
nonrepayable assistance awarded by the authority to a student currently
residing in the state to finance the attendance of the student at a
Connecticut institution for higher education, [or] enrollment in a
Connecticut high-value certificate program or enrollment in a
Connecticut postsecondary education program, or a grant, scholarship,
fellowship or other nonrepayable assistance awarded by or on behalf of
a Connecticut institution for higher education from the proceeds of
funds provided by the authority to a student from the state to finance
the student's attendance at such institution;
(20) "Eligible loan" means any loan that is in repayment that was (A)
made by the authority, or (B) made to a borrower by any other private
or governmental lender to finance attendance at an institution for higher
education, [or] enrollment in a high-value certificate program or
enrollment in a postsecondary education program;
(21) "High-value certificate program" means a noncredit sub-
baccalaureate certificate program offered by an institution of higher
education or a private occupational school that the Chief Workforce
Officer determines to meet the needs of employers in the state; [and]
(22) "Connecticut high-value certificate program" means a high-value
certificate program offered by an institution of higher education or a
private occupational school in the state; [.]
(23) "Postsecondary education program" means a high -value
certificate program that is approved by the authority; and
(24) "Private occupational school" has the same meaning as provided
in section 10a-22a. Substitute Senate Bill No. 103
Public Act No. 22-41 8 of 8
Sec. 4. Subdivision (9) of section 10a-204 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(9) To distribute excess corporation funds to the Connecticut Health
and Educational Facilities Authority or any subsidiary of said authority
for the purpose of such recipient's provision of financial assistance to
qualified students attending institutions of higher education or enrolled
in postsecondary education programs, including, without limitation,
loans, scholarships or grants and financial literacy education.