Connecticut 2021 Regular Session Status: In Committee

SB 932 — AN ACT CONCERNING AN ALLIANCE DISTRICT TEACHER LOAN SUBSIDY PROGRAM.

Last action — REF. BY SEN. TO COMM. ON Finance, Revenue and Bonding

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

178 added · 87 removed

178 line(s) added, 87 removed.

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General Assembly Raised Bill No.
Senate General Assembly File No.
932 January Session, 2021 LCO No.
289 January Session, 2021 Substitute Senate Bill No.
3701 Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT Introduced by:
932 Senate, April 6, 2021 The Committee on Higher Education and Employment Advancement reported through SEN.
(HED) AN ACT CONCERNING AN ALLIANCE DISTRICT TEACHER LOAN SUBSIDY PROGRAM.
SLAP of the 5th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.
AN ACT CONCERNING AN ALLIANCE DISTRICT TEACHER LOAN SUBSIDY PROGRAM.
The authority shall maintain a separate, nonlapsing account to hold funds for the Alliance District Teacher Loan Subsidy Program.
(b) The authority shall enter into a memorandum of agreement with the Commissioner of Education to establish the eligibility criteria and administrativeguidelinesfortheAllianceDistrictTeacherLoanSubsidy Program.
The account shall contain any moneys required by law to be deposited in the account, including, but not limited to, state appropriations or proceeds from the sale of bonds authorized under section 2 of this act.
Such eligibility criteria and guidelines shall include, but need sSB932 / File No.
Moneys in the account shall be expended by the authority for the purposes of the Alliance District LCO No.
289 1 sSB932 File No.
3701 1 of 4 Raised Bill No.932 Teacher Loan Subsidy Program, including for reasonable and necessary expenses for the administration of such program.
289 not be limited to, (1) applicant eligibility, (2) interest rate subsidies and principal limits on authority loans subject to the Alliance District Teacher Loan Subsidy Program, (3) the process for verifying the employment of the applicants, and (4) the requirement that an interest rate subsidy through the Alliance District Teacher Loan Subsidy Program shall terminate for any subsidy recipient who ceases to meet the employment requirements of such program during the term of such recipient's loan from the authority.
(b) The Commissioner of Education shall enter into a memorandum of agreement with the authority to establish the eligibility criteria and administrativeguidelinesfortheAllianceDistrictTeacher LoanSubsidy Program.
Such eligibility criteria and guidelines shall include, but need not be limited to, (1) applicant eligibility, (2) interest rate subsidies and principal limits on authority loans subject to the Alliance District Teacher Loan Subsidy Program, (3) the process for verifying the employment of the applicants, and (4) the requirement that an interest rate subsidy through the Alliance District Teacher Loan Subsidy Program shall terminate for any subsidy recipient who ceases to meet the employment requirements of such program during the term of such recipient's loan from the authority.
(c) The authority shall establish an account to be known as the Alliance District Teacher Refinance Loan Loss Reserve account, which shall be a separate, nonlapsing account.
The account shall contain any moneys required by law to be deposited in the account, including, but not limited to, state appropriations or proceeds from the sale of bonds authorized pursuant to section 2 of this act.
Moneys in the account shall be expended by the authority (1) to cover any losses incurred by the authority from issuing authority loans to refinance one or more eligible loans, as defined in section 10a-223 of the general statutes, pursuant to the Alliance District Teacher Loan Subsidy Program for teachers employed in alliance districts, and (2) for reasonable and necessary expenses for the administration of such authority loans.
(NEW) (Effective July 1, 2021) The Connecticut Higher Education Supplemental Loan Authority shall maintain a separate, nonlapsing account to hold funds for the Alliance District Teacher Loan Subsidy Program established pursuant to section 1 of this act.
The account shall contain any moneys required by law to be deposited in the account, including, but not limited to, state appropriations or proceeds from the sale of bonds authorized under section 3 of this act.
Moneys in the account shall be (1) expended by the authority for the purposes of the Alliance District Teacher Loan Subsidy Program and for reasonable and necessary expenses for the administration of such program, and (2) held as a reserve by the authority to cover any losses incurred by the authority from issuing authority loans to refinance one or more eligible loans, as defined in section 10a-223 of the general statutes, for the purposes of the Alliance District Teacher Loan Subsidy Program.
Sec.
3.
(b) The proceeds of thesale of such bonds, to the extent of theamount LCO No.
(b) The proceeds of thesale of such bonds, to the extent of theamount stated in subsection (a) of this section, shall be used by the Connecticut Higher Education Supplemental Loan Authority for the purpose of the Alliance District Teacher Loan Subsidy Program established under section 1 of this act.
3701 2 of 4 Raised Bill No.932 stated in subsection (a) of this section, shall be used by the Connecticut Higher Education Supplemental Loan Authority for the purpose of the Alliance District Teacher Loan Subsidy Program established under section 1 of this act.
(c)Allprovisionsofsection3-20ofthegeneralstatutes,ortheexercise sSB932 / File No.
(c)Allprovisionsofsection3-20ofthegeneralstatutes,ortheexercise of any right or power granted thereby, that are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section.
289 2 sSB932 File No.
289 of any right or power granted thereby, that are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section.
Such bonds issued pursuant to this section shall begeneralobligationsofthestateandthefullfaithandcredit of thestate 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.
Such bonds issued pursuant to this section shall begeneralobligationsofthestateandthefullfaithandcredit ofthestate 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, 2021 New section LCO No.
2 July 1, 2021 New section July 1, 2021 Sec.
3701 3 of 4 Raised Bill No.
3 New section HED Joint Favorable Subst.
932 Statement of Purpose:
sSB932 / File No.
To require the Connecticut Higher Education Supplemental Loan Authority to establish the Alliance District Teacher Loan Subsidy Program to provide low interest student loans to teachers who are employed in alliance districts.
289 3 sSB932 File No.
[Proposed deletions are enclosed in brackets.
289 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
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.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
3701 4 of 4
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $ Treasurer, Debt Serv.
GF - Potential See Below See Below Cost Note:
GF=General Fund Municipal Impact:
None Explanation The bill authorizes $7 million of General Obligation (GO) bonds each fiscal year starting in FY 22.
To the extent the new bonds authorized are fully allocated and expended, there would be an increase in annual General Fund debt service costs until such bonds are fully repaid.
At current market rates, total repayment costs over 20 years for $7 million of GO bond authorizations are estimated to be approximately $10 million.
The bill creates an annual new GO bond authorization, which would continue to add $7 million of new bond authorizations each year until changed or repealed.
Additional years of authorization past the initial year would increase the potential costs proportionately – for example, years of authorizations would be $70 million of bond authorizations at a total estimated debt service cost of $100 million.
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However, when portions of an authorization are specified to become effective in future years, the full authorization amount is typically known at the time of adoption.
If considered a valid authorization, the total potential debt service cost is unknowable, given the lack of a finite amount or time frame of the bond authorization.
sSB932 / File No.
289 4 sSB932 File No.
289 The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and the terms of any bonds issued.
sSB932 / File No.
289 5 sSB932 File No.
289 OLR Bill Analysis sSB 932 AN ACT CONCERNING AN ALLIANCE DISTRICT TEACHER LOAN SUBSIDY PROGRAM.
SUMMARY This bill requires the Connecticut Higher Education Supplemental Loan Authority (CHESLA) to establish an Alliance District Teacher Loan Subsidy Program.
This program must subsidize interest rates on CHESLA loans to teachers employed in alliance districts (see BACKGROUND), subject to available funding.
Under the bill, CHESLA must enter into a memorandum of agreement with the education commissioner to establish the program’s eligibility criteria and administrative guidelines.
The authority must also establish a separate, non-lapsing account to hold funds required by law to be deposited there, including state appropriations or bond sale proceeds.
The bill authorizes up to $7 million per year in general obligation bondsandrequiresCHESLAtousetheproceedsfor theAllianceDistrict Teacher Loan Subsidy Program.
The bonds are subject to standard statutory bond issuance procedures and repayment requirements.
EFFECTIVE DATE:
July 1, 2021 PROGRAM ELIGIBILITY CRITERIA AND ADMINISTRATIVE GUIDELINES The bill requires the loan subsidy program eligibility criteria and guidelines to include at least the following:
1.
applicant eligibility, 2.
interest rate subsidies and principal limits on authority loans subject to the Alliance District Teacher Loan Subsidy Program, 3.
the process for verifying applicants’ employment, and sSB932 / File No.
289 6 sSB932 File No.
289 4.
therequirementthataninterestrate subsidythroughtheAlliance District Teacher Loan Subsidy Program terminate for a subsidy recipient who no longer meets the program’s employment requirements during the loan’s term.
PROGRAM ACCOUNT EXPENDITURES This bill requires CHESLA to spend funds in the program’s account for purposes of subsidizing loans under the program.
In addition, CHESLA must spend account funds to cover reasonable and necessary expenditures for the program’s administration, as well as any losses from issuing authority loans to refinance one or more eligible loans for the purposes of the program.
Under the bill, “eligible loans” are loans in repayment that are (1) CHESLA-issued or (2) issued by another private or governmental lender to finance college or university attendance.
BACKGROUND Alliance Districts Alliance districts are the 30 school districts that have the lowest achievement, as rated by the state’s accountability index, plus the three districts that were previously among the lowest 30 when the program started in FY 13 (CGS § 10-262u).
For FYs 18-22, the alliance districts are as follows:
Ansonia, Bloomfield, Bridgeport, Bristol, Danbury, Derby, East Hartford, East Haven, East Windsor, Groton, Hamden, Hartford, Killingly, Manchester, Meriden, Middletown, Naugatuck, New Britain, New Haven, New London, Norwalk, Norwich, Putnam, Stamford, Thompson, Torrington, Vernon, Waterbury, West Haven, Winchester, Windham, Windsor, and Winsor Locks.
COMMITTEE ACTION Higher Education and Employment Advancement Committee Joint Favorable Substitute Yea 20 Nay 2 (03/18/2021) sSB932 / File No.
289 7
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Action History

  1. REF. BY SEN. TO COMM. ON Finance, Revenue and Bonding

  2. FILE NO. 289

  3. SENATE CALENDAR NUMBER 191

  4. FAV. RPT., TAB. FOR CAL., SEN.

  5. RPTD. OUT OF LCO

  6. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/06/21

  7. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/06/21

  8. FILED WITH LCO

  9. Joint Favorable Substitute

  10. PUBLIC HEARING 0304

  11. REF. TO JOINT COMM. ON Higher Education and Employment Advancement

Sponsors

  • Higher Education And Employment Advancement Committee · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 186 not signed on

Sponsors (1)

  • Higher Education And Employment Advancement Committee

Co-sponsors (0)

None.

Not signed on (186)

186 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 932?
SB 932 is sponsored by Higher Education And Employment Advancement Committee.
What is the current status of SB 932?
This bill died with 2021 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 932?
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