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 Section 10a-247 of the general statutes is repealed and the 1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