SB 865 — AN ACT CONCERNING NO OR LOW INTEREST STUDENT LOANS FOR CERTAIN STUDENTS.

General Assembly RaisedSubstitute Bill No.

865 January Session, 2019 LCOAN No.ACT CONCERNING NO OR LOW INTEREST STUDENT LOANS FOR CERTAIN STUDENTS.

4345 Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT Introduced by:

(HED) AN ACT CONCERNING NO OR LOW INTEREST STUDENT LOANS FOR CERTAIN STUDENTS.

(NEW) (Effective July 1, 2019) (a) The Connecticut Higher Education Supplemental Loan Authority shall establish a STEM Loan Subsidy Program, subject to available funding, for the purpose of reducing interest rates on authority loans, as defined in section 10a-10a-223 223,of the general statutes, to individuals who (1) are employed in the science, technology, engineering, or math industries, and (2) commit to live in the state for not less than five years.

(b) The Secretary of the Office of Policy and Management may enter into a memorandum of agreement with the authority to establish the administrative guidelines for the STEM Loan Subsidy Program, including, but not limited to, (1) applicant eligibility, (2) positions in the science, technology, engineering or math industries that qualify for LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00865-R01 of 3 SB.docx Substitute Bill No.

4345865 1 of 3 Raised Bill No.865 (b) The Secretary of the Office of Policy and Management may enter into a memorandum of agreement with the authority to establish the administrative guidelines for the STEM Loan Subsidy Program, including, but not limited to, (1) applicant eligibility, (2) positions in the science, technology, engineering or math industries that qualify for the STEM Loan Subsidy Program, (3) reduced interest rate and principal limits on authority loans subject to the STEM Loan Subsidy program,Program, and (4) the process for verifying the residency and employment of the applicants.

None of such bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization that is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, LCOin No.its discretion, may require.

4345Such 2bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00862 of 3 RaisedR01-SB.docx } Substitute Bill No.

865 insuch itsbonds, discretion,appropriation mayof require.all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

Such bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

2 July 1, 2019 New section Statement of Purpose:Legislative Commissioners:

ToIn establishSection the1(a), STEM"of Loanthe Subsidygeneral Programstatutes" towas provideadded personsfor employedconsistency inof science,style. technology, engineering or math fields with no or low interest student loans.

[ProposedHED deletionsJoint areFavorable enclosedSubst.-LCO inC/R brackets.FIN LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00865-3 of 3 R01-SB.docx }

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

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