Connecticut 2025 Regular Session

Connecticut Senate Bill SB01261 Compare Versions

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Version 2 (New)

Old	New		Differences
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3		-	LCO 1 of 6
	3	+	LCO No. 4416 1 of 4
4	4
5		-	General Assembly ~~Substitute~~ Bill No. 1261
	5	+	General Assembly Raised Bill No. 1261
6	6		January Session, 2025
	7	+	LCO No. 4416
7	8
	9	+
	10	+	Referred to Committee on HIGHER EDUCATION AND
	11	+	EMPLOYMENT ADVANCEMENT
	12	+
	13	+
	14	+	Introduced by:
	15	+	(HED)
8	16
9	17
10	18
11	19
12	20		AN ACT EXPANDING THE ALLIANCE DISTRICT EDUCATOR AND
13	21		COUNSELOR LOAN SUBSIDY PROGRAM AND THE HIGH PRIORITY
14	22		OCCUPATION LOAN SUBSIDY PROGRAM.
15	23		Be it enacted by the Senate and House of Representatives in General
16	24		Assembly convened:
17	25
18	26		Section 1. Section 10a-247 of the general statutes is repealed and the 1
19	27		following is substituted in lieu thereof (Effective July 1, 2025): 2
20	28		(a) The Connecticut Higher Education Supplemental Loan Authority 3
21	29		shall establish, subject to available funding pursuant to section 10a-247a, 4
22	30		as amended by this act, an Alliance District [Educator and Counselor] 5
23	31		Loan Subsidy Program for the purpose of subsidizing interest rates on 6
24	32		authority loans, as defined in section 10a-223, to (1) teachers, 7
25		-	paraeducators and school counselors who are employed by a local or 8
26		-	regional board of education or a technical education and career school 9
27		-	in a school district designated as an alliance district pursuant to section 10
28		-	10-262u, and [who] meet the eligibility criteria [as] established [by the 11
29		-	authority and the Commissioner of Education] pursuant to subsection 12
30		-	(b) of this section, and (2) individuals who are employed in a high 13
31		-	priority occupation by a local or regional board of education or a 14
32		-	technical education and career school in a school district designated as 15
33		-	an alliance district pursuant to section 10-262u and meet eligibility 16
34		-	criteria established pursuant to subsection (c) of this section. 17 Substitute Bill No. 1261
	33	+	paraeducators and school counselors who are employed in a district 8
	34	+	designated as an alliance district pursuant to section 10-262u and [who] 9
	35	+	meet the eligibility criteria as established [by the authority and the 10
	36	+	Commissioner of Education] pursuant to subsection (b) of this section, 11
	37	+	and (2) individuals who are employed in a high priority occupation in a 12
	38	+	municipality with a school district designated as an alliance district 13
	39	+	pursuant to section 10-262u and meet eligibility criteria established 14
	40	+	Raised Bill No. 1261
35	41
36	42
37		-	LCO 2 of 6
38	43
39		-	(b) The authority shall enter into a memorandum of agreement with 18
40		-	the Commissioner of Education to establish the eligibility criteria and 19
41		-	administrative guidelines for the Alliance District [Educator and 20
42		-	Counselor] Loan Subsidy Program for teachers, paraeducators and 21
43		-	school counselors. Such eligibility criteria and guidelines shall include, 22
44		-	but need not be limited to, (1) applicant eligibility, (2) interest rate 23
45		-	subsidies and principal limits on authority loans subject to the Alliance 24
46		-	District [Educator and Counselor] Loan Subsidy Program, (3) the 25
47		-	process for verifying the employment of applicants, and (4) the 26
48		-	requirement that an interest rate subsidy through the Alliance District 27
49		-	[Educator and Counselor] Loan Subsidy Program shall terminate for 28
50		-	any subsidy recipient who ceases to meet the employment requirements 29
51		-	of such program during the term of such recipient's loan from the 30
52		-	authority. 31
53		-	(c) The Department of Education shall consult with the authority to: 32
54		-	(1) Designate, as high priority occupations under the Alliance District 33
55		-	Loan Subsidy Program, occupations that (A) promote the health, 34
56		-	welfare or education of residents of municipalities with a school district 35
57		-	designated as an alliance district, (B) have a high demand for their 36
58		-	services, as determined by the department and the authority, and (C) 37
59		-	are experiencing or are projected to experience a workforce shortage 38
60		-	that may affect the level of services provided; (2) establish 39
61		-	administrative guidelines for the implementation and operation of the 40
62		-	program for individuals employed in a high priority occupation in a 41
63		-	municipality with a school district designated as an alliance district; and 42
64		-	(3) establish eligibility criteria for the program for such individuals, 43
65		-	which shall include, but need not be limited to, (A) applicant 44
66		-	requirements, including employment requirements, (B) interest rate 45
67		-	subsidies and principal limits on authority loans subject to the program, 46
68		-	(C) the process for verifying the employment of applicants, and (D) the 47
69		-	requirement that an interest rate subsidy through the program shall 48
70		-	terminate for any subsidy recipient who ceases to meet the employment 49
71		-	requirements of the program during the term of such recipient's 50
72		-	authority loan. 51 Substitute Bill No. 1261
	44	+	LCO No. 4416 2 of 4
	45	+
	46	+	pursuant to subsection (c) of this section. 15
	47	+	(b) The authority shall enter into a memorandum of agreement with 16
	48	+	the Commissioner of Education to establish the eligibility criteria and 17
	49	+	administrative guidelines for the Alliance District [Educator and 18
	50	+	Counselor] Loan Subsidy Program for teachers, paraeducators and 19
	51	+	school counselors. Such eligibility criteria and guidelines shall include, 20
	52	+	but need not be limited to, (1) applicant eligibility, (2) interest rate 21
	53	+	subsidies and principal limits on authority loans subject to the Alliance 22
	54	+	District [Educator and Counselor] Loan Subsidy Program, (3) the 23
	55	+	process for verifying the employment of applicants, and (4) the 24
	56	+	requirement that an interest rate subsidy through the Alliance District 25
	57	+	[Educator and Counselor] Loan Subsidy Program shall terminate for 26
	58	+	any subsidy recipient who ceases to meet the employment requirements 27
	59	+	of such program during the term of such recipient's loan from the 28
	60	+	authority. 29
	61	+	(c) The Department of Education shall consult with the authority to: 30
	62	+	(1) Designate, as high priority occupations under the Alliance District 31
	63	+	Loan Subsidy Program, occupations that (A) promote the health, 32
	64	+	welfare or education of residents of municipalities with a school district 33
	65	+	designated as an alliance district, (B) have a high demand for their 34
	66	+	services, as determined by the department and the authority, and (C) 35
	67	+	are experiencing or are projected to experience a workforce shortage 36
	68	+	that may affect the level of services provided; (2) establish 37
	69	+	administrative guidelines for the implementation and operation of the 38
	70	+	program for individuals employed in a high priority occupation in a 39
	71	+	municipality with a school district designated as an alliance district; and 40
	72	+	(3) establish eligibility criteria for the program for such individuals, 41
	73	+	which shall include, but need not be limited to, (A) applicant 42
	74	+	requirements, including employment requirements, (B) interest rate 43
	75	+	subsidies and principal limits on authority loans subject to the program, 44
	76	+	(C) the process for verifying the employment of applicants, and (D) the 45
	77	+	requirement that an interest rate subsidy through the program shall 46
	78	+	terminate for any subsidy recipient who ceases to meet the employment 47
	79	+	Raised Bill No. 1261
73	80
74	81
75		-	LCO 3 of 6
76	82
77		-	Sec. 2. Section 10a-247a of the general statutes is repealed and the 52
78		-	following is substituted in lieu thereof (Effective July 1, 2025): 53
79		-	The Connecticut Higher Education Supplemental Loan Authority 54
80		-	shall maintain a separate, nonlapsing account to hold funds for the 55
81		-	Alliance District [Educator and Counselor] Loan Subsidy Program 56
82		-	established pursuant to section 10a-247, as amended by this act. The 57
83		-	account shall contain any moneys required by law to be deposited in the 58
84		-	account, including, but not limited to, any state appropriation or the 59
85		-	proceeds from the sale of bonds issued for the purpose of section 10a-60
86		-	247, as amended by this act. Moneys in the account shall be used (1) for 61
87		-	the purposes of the Alliance District [Educator and Counselor] Loan 62
88		-	Subsidy Program and for reasonable and necessary expenses for the 63
89		-	administration of such program, (2) for the issuance of authority loans 64
90		-	to refinance one or more eligible loans, and (3) to maintain a reserve held 65
91		-	by the authority to cover any losses incurred by the authority from the 66
92		-	issuance of such authority loans. For the purposes of this section, 67
93		-	"authority loans" and "eligible loans" have the same meaning as 68
94		-	provided in section 10a-223. 69
95		-	Sec. 3. Subsection (g) of section 13 of public act 21-111 is repealed and 70
96		-	the following is substituted in lieu thereof (Effective July 1, 2025): 71
97		-	(g) For the Connecticut Higher Education Supplemental Loan 72
98		-	Authority: For the Alliance District [Teacher] Loan Subsidy Program 73
99		-	established pursuant to section 10a-247 of the general statutes, as 74
100		-	amended by this act, and the High Priority Occupation Loan Subsidy 75
101		-	Program established pursuant to section 10a-247e of the general 76
102		-	statutes, not exceeding $7,000,000. 77
103		-	Sec. 4. Subsection (b) of section 10a-232 of the general statutes is 78
104		-	repealed and the following is substituted in lieu thereof (Effective July 1, 79
105		-	2025): 80
106		-	(b) Notwithstanding the foregoing, (1) the constituent units of the 81
107		-	state system of higher education may participate in one or more 82
108		-	education loan programs with the authority and may incur 83 Substitute Bill No. 1261
	83	+	LCO No. 4416 3 of 4
109	84
110		-
111		-	LCO 4 of 6
112		-
113		-	indebtedness pursuant to authority loans, and (2) the authority may 84
114		-	create and establish one or more reserve funds to be known as special 85
115		-	capital reserve funds and may fund such special capital reserve funds 86
116		-	with (A) any moneys appropriated and made available by the state for 87
117		-	the purposes of such funds, (B) any proceeds of the sale of notes or 88
118		-	bonds, to the extent provided in the resolution of the authority 89
119		-	authorizing the issuance thereof, (C) any other moneys that may be 90
120		-	made available to the authority for the purpose of such funds from any 91
121		-	other source or sources, and (D) any surety policy or other similar 92
122		-	instrument valued at par and payable or available to be drawn upon on 93
123		-	or before any date by which debt service on the bonds secured thereby 94
124		-	is required to be paid and issued by a financial institution that, at the 95
125		-	time of issuance of such surety policy or similar instrument, is rated 96
126		-	"AA" or better by any nationally recognized statistical rating 97
127		-	organization and approved by the State Treasurer. The assets held in or 98
128		-	credited to any special capital reserve fund established under this 99
129		-	section, except as hereinafter provided, shall be used solely for the 100
130		-	payment of the principal of notes and bonds of the authority secured by 101
131		-	such capital reserve fund as the same become due, the purchase of such 102
132		-	notes and bonds of the authority, the payment of interest on such notes 103
133		-	and bonds of the authority or the payment of any redemption premium 104
134		-	required to be paid when such bonds are redeemed prior to maturity or 105
135		-	released by the authority; provided, the authority shall have power to 106
136		-	require that moneys in any such fund shall not be withdrawn therefrom 107
137		-	at any time in such amount as would reduce the amount of such funds 108
138		-	to less than the maximum amount of principal and interest becoming 109
139		-	due by reason of maturity or a required sinking fund installment in any 110
140		-	succeeding calendar year on the bonds of the authority then outstanding 111
141		-	and secured by such special capital reserve fund, or such lesser amount 112
142		-	specified by the authority in its resolution authorizing the issuance of 113
143		-	any such bonds, such amount being herein referred to as the "required 114
144		-	minimum capital reserve", except for the purpose of paying such 115
145		-	principal of, redemption premium and interest on such bonds of the 116
146		-	authority secured by such special capital reserve becoming due and for 117
147		-	the payment of which other moneys of the authority are not available. 118 Substitute Bill No. 1261
148		-
149		-
150		-	LCO 5 of 6
151		-
152		-	The authority may provide that it shall not issue bonds at any time if the 119
153		-	required minimum capital reserve on outstanding bonds secured by a 120
154		-	special capital reserve fund and the bonds then to be issued and secured 121
155		-	by a special capital reserve fund will exceed the amount of such special 122
156		-	capital reserve fund at the time of issuance, unless the authority, at the 123
157		-	time of the issuance of such bonds, shall deposit in such special capital 124
158		-	reserve fund from the proceeds of the bonds so to be issued, or 125
159		-	otherwise, an amount which, together with the amount then in such 126
160		-	special capital reserve fund, will be not less than the required minimum 127
161		-	capital reserve. The authority may, as part of the contract of the 128
162		-	authority with the owners of such bonds, provide that on or before 129
163		-	December first, annually, there is deemed to be appropriated from the 130
164		-	state General Fund such sums, if any, as shall be certified by the 131
165		-	chairman of the authority to the Secretary of the Office of Policy and 132
166		-	Management and the Treasurer of the state, as necessary to restore each 133
167		-	such special capital reserve fund to the amount equal to the required 134
168		-	minimum capital reserve of such fund, and such amounts shall be 135
169		-	allotted and paid to the authority. For the purpose of evaluation of any 136
170		-	such special capital reserve fund, obligations acquired as an investment 137
171		-	for any such fund shall be valued at amortized cost. Nothing contained 138
172		-	in this section shall preclude the authority from establishing and 139
173		-	creating other debt service reserve funds in connection with the issuance 140
174		-	of bonds or notes of the authority. Subject to any agreement or 141
175		-	agreements with owners of outstanding notes and bonds of the 142
176		-	authority, any amount or amounts allotted and paid to the authority 143
177		-	pursuant to this section shall be repaid to the state from moneys of the 144
178		-	authority at such time as such moneys are not required for any other of 145
179		-	its corporate purposes and in any event shall be repaid to the state on 146
180		-	the date one year after all bonds and notes of the authority theretofore 147
181		-	issued on the date or dates such amount or amounts are allotted and 148
182		-	paid to the authority or thereafter issued, together with interest on such 149
183		-	bonds and notes, with interest on any unpaid installments of interest 150
184		-	and all costs and expenses in connection with any action or proceeding 151
185		-	by or on behalf of the owners thereof, are fully met and discharged. 152
186		-	Notwithstanding any other provisions contained in this chapter, the 153 Substitute Bill No. 1261
187		-
188		-
189		-	LCO 6 of 6
190		-
191		-	aggregate amount of bonds outstanding at any time secured by such 154
192		-	special capital reserve funds authorized to be created and established by 155
193		-	this section shall not exceed three hundred million dollars and no such 156
194		-	bonds shall be issued to pay program costs unless the authority is of the 157
195		-	opinion and determines that the revenues to be derived from the 158
196		-	program shall be sufficient (i) to pay the principal of and interest on the 159
197		-	bonds issued to finance the program, (ii) to establish, increase and 160
198		-	maintain any reserves deemed by the authority to be advisable to secure 161
199		-	the payment of the principal of and interest on such bonds, (iii) to pay 162
200		-	the cost of maintaining and servicing the program and keeping it 163
201		-	properly insured, and (iv) to pay such other costs of the program as may 164
202		-	be required. 165
	85	+	requirements of the program during the term of such recipient's 48
	86	+	authority loan. 49
	87	+	Sec. 2. Section 10a-247a of the general statutes is repealed and the 50
	88	+	following is substituted in lieu thereof (Effective July 1, 2025): 51
	89	+	The Connecticut Higher Education Supplemental Loan Authority 52
	90	+	shall maintain a separate, nonlapsing account to hold funds for the 53
	91	+	Alliance District [Educator and Counselor] Loan Subsidy Program 54
	92	+	established pursuant to section 10a-247, as amended by this act. The 55
	93	+	account shall contain any moneys required by law to be deposited in the 56
	94	+	account, including, but not limited to, any state appropriation or the 57
	95	+	proceeds from the sale of bonds issued for the purpose of section 10a-58
	96	+	247, as amended by this act. Moneys in the account shall be used (1) for 59
	97	+	the purposes of the Alliance District [Educator and Counselor] Loan 60
	98	+	Subsidy Program and for reasonable and necessary expenses for the 61
	99	+	administration of such program, (2) for the issuance of authority loans 62
	100	+	to refinance one or more eligible loans, and (3) to maintain a reserve held 63
	101	+	by the authority to cover any losses incurred by the authority from the 64
	102	+	issuance of such authority loans. For the purposes of this section, 65
	103	+	"authority loans" and "eligible loans" have the same meaning as 66
	104	+	provided in section 10a-223. 67
	105	+	Sec. 3. Subsection (g) of section 13 of public act 21-111 is repealed and 68
	106	+	the following is substituted in lieu thereof (Effective July 1, 2025): 69
	107	+	(g) For the Connecticut Higher Education Supplemental Loan 70
	108	+	Authority: For the Alliance District [Teacher] Loan Subsidy Program 71
	109	+	established pursuant to section 10a-247, as amended by this act, and the 72
	110	+	High Priority Occupation Loan Subsidy Program established pursuant 73
	111	+	to section 10a-247e, not exceeding $7,000,000. 74
203	112		This act shall take effect as follows and shall amend the following
204	113		sections:
205	114
206	115		Section 1 July 1, 2025 10a-247
	116	+	Raised Bill No. 1261
	117	+
	118	+
	119	+
	120	+	LCO No. 4416 4 of 4
	121	+
207	122		Sec. 2 July 1, 2025 10a-247a
208	123		Sec. 3 July 1, 2025 PA 21-111, Sec. 13(g)
209		-	Sec. 4 July 1, 2025 10a-232(b)
210	124
211		-	Statement of Legislative Commissioners:
212		-	In Section 1(a)(1), "by a local or regional board of education or a
213		-	technical education and career school" was moved earlier in the
214		-	sentence, and in Section 1(a)(2), "in a high priority occupation by a local
215		-	or regional board of education or a technical education and career
216		-	school" was moved earlier in the sentence for clarity.
	125	+	Statement of Purpose:
	126	+	To expand the (1) Alliance District Educator Counselor Loan Subsidy
	127	+	Program to include other high priority occupations, and (2) High
	128	+	Priority Occupation Loan Subsidy Program by allowing the use of
	129	+	existing bonding funds for such purpose.
217	130
218		-	HED Joint Favorable Subst.
	131	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	132	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	133	+	underlined.]
219	134