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OLR Bill Analysis
sSB 103
AN ACT CONCERNING THE CONNECTICUT HEALTH AND
EDUCATIONAL FACILITIES AUTHORITY AND THE CONNECTICUT
HIGHER EDUCATION SUPPLEMENTAL LOAN AUTHORITY.
SUMMARY
This bill expands the types of projects that the Connecticut Health
and Education Facilities Authority (CHEFA) may finance to include
projects for any use or purpose approved by the authority, including
working capital, for a participating higher education or health care
institution, qualified nonprofit organization, or nursing home. It also
does the following:
1. eliminates a provision prohibiting CHEFA from financing
purchases for higher education and health care institutions that
typically result in an operating charge (e.g., books, fuel, and
supplies);
2. expands the project costs CHEFA may finance to include any
other expenses necessary to finance a project, in addition to the
current list of eligible expenses (e.g., construction, property
acquisition, machinery, and financing charges); and
3. allows CHEFA to make loans and transfer money, real estate, and
personal property to any of its subsidiaries established by law,
rather than just the subsidiaries it has established to carry out its
public purposes (e.g., CHESLA).
The bill also authorizes the Connecticut Higher Education
Supplemental Loan Authority (CHESLA) to provide financial assistance
to students enrolled in postsecondary education programs and their
parents (i.e., parents, legal guardians, or sponsors). In doing so, it allows
these students and parents to take out CHESLA loans and students to
receive grants, scholarships, fellowships, or other non-repayable 2022SB-00103-R000212-BA.DOCX
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assistance from CHESLA. Under current law, CHESLA can only
provide financial assistance to (1) students attending in-state nonprofit
higher education institutions, or Connecticut residents attending a U.S.
nonprofit higher education institution, and (2) their parents.
The bill defines “postsecondary education program” as an
educational program, as designated by the authority and offered by a
private occupational school, that is authorized by the executive director
of the Office of Higher Education (see BACKGROUND).
The bill also makes minor, technical, and conforming changes.
EFFECTIVE DATE: October 1, 2022
BACKGROUND
Private Occupational School
By law, a “private occupational school” is a postsecondary career
school operated by a person or entity offering or advertising instruction
in any trade or industrial, commercial, service, professional, or other
occupation for a renumeration, consideration, reward, or promise. It
does not include (1) publicly supervised and controlled instruction, (2)
employee or member training offered by a business or organization, (3)
instruction from a school authorized by the legislature to confer degrees,
or (4) arts or recreation instruction (CGS § 10a-22a).
COMMITTEE ACTION
Higher Education and Employment Advancement Committee
Joint Favorable Substitute
Yea 22 Nay 0 (03/17/2022)