SB 103 — AN ACT CONCERNING THE CONNECTICUT HEALTH AND EDUCATIONAL FACILITIES AUTHORITY AND THE CONNECTICUT HIGHER EDUCATION SUPPLEMENTAL LOAN AUTHORITY.

Substitute Senate GeneralBill Assembly File No.

212103 FebruaryPublic Session,Act 2022 Substitute Senate Bill No.

10322-41 Senate,AN MarchACT 30,CONCERNING 2022THE TheCONNECTICUT CommitteeHEALTH onAND HigherEDUCATIONAL EducationFACILITIES andAUTHORITY EmploymentAND AdvancementTHE reportedCONNECTICUT throughHIGHER SEN.EDUCATION SUPPLEMENTAL LOAN AUTHORITY.

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 THE CONNECTICUT HEALTH AND EDUCATIONAL FACILITIES AUTHORITY AND THE CONNECTICUT HIGHER EDUCATION SUPPLEMENTAL LOAN AUTHORITY.

Subsections (b) and (c) of section 10a-178 of the general statutes are repealed and the following is substituted in lieu thereof (Effective October 1, 2022):

(b) "Project" [,] means (1) in the case of a participating institution for higher education, [means] a structure suitable for use as a dormitory or other housing facility, including housing for staff members, employees or students at such institution of higher education, dining hall, student union, administration building, academic building, library, laboratory, research facility, classroom, athletic facility, health care facility, and maintenance, storage or utility facility and other structures or facilities related thereto or required or useful for the instruction of students or the conducting of research or the operation of an institution for higher sSB103 / File No.

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212 education, including parking and other facilities or structures essential or convenient for the orderly conduct of such institution for higher education, also including equipment and machinery and other similar items necessary or convenient for the operation of a particular facility or structure in the manner for which its use is intended or for the operation of a participating institution for higher education, or any combination thereof,[butshallnotincludesuchitemsasbooks,fuel,suppliesorother items the purchase of which is customarily deemed to result in a current operating charge] or a project for any use or purpose approved by the authority, including, but not limited to, provisions for working capital;

(2) in the case of a participating health care institution, [means] a structuresuitableforuseasahospital,clinic,orotherhealthcarefacility, laboratory, laundry, residence facility, including housing for nurses, interns, staff members, employees or students at such health care institution and their immediate families and for physically or mentally handicapped persons, administration building, research facility, and maintenance, storage or utility facility and other structures or facilities related thereto or required or useful for the operation of the project, including parking and other facilities or structures essential or convenient for the orderly operation of such project, also including equipment and machinery and other similar items necessary or convenient for the operation of the project in the manner for which its use is intended or for the operation of a participating health care institution,or any combinationthereof, [but shallnot include such items as fuel, supplies or other items the purchase of which is customarily deemed to result in a current operating charge;] or a project for any use or purpose approved by the authority, including, but not limited to, provisions for working capital;

(3) in the case of a participating qualified nonprofit organization, [means] a structure or facility owned in its entirety by, or suitable for use in accordance with the charitable or nonprofit status of the qualified nonprofit organization, also including equipment and machinery and other similar items necessary or convenient for the operation of the project in the manner for which its use isintended or for theoperationofaparticipating qualifiednonprofit corporation, or any combination thereof, or a project for any use or sSB103 / File No.

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212 purpose approved by the authority, including, but not limited to, provisions for working capital;

and [,] (4) in the case of a participating nursing home, [means] a structure or facility suitable for use as a nursing home, residential care home, rest home, health care facility for the handicapped, mental health facility or independent living facility subject to the licensing requirements of chapter 368v and appurtenant facilities, equipment and machinery and other similar items necessary or convenient for the operation of a particular facility or structure in the manner for which its use is intended or for the operation of a participating nursing home, or any combination thereof, or a project for any use or purpose approved by the authority, including, but not limited to, working capital;

(c)"Cost"asappliedtoaprojectoranyportionthereoffinancedunder the provisions of this chapter embraces all or any part of (1) the cost of construction and acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, easements and interests acquired or used for a project, (2) the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which such buildings or structures may be moved, (3) the cost of all machinery and equipment, financing charges, interest prior to, during and for a period after completion of such construction, provisions for working capital, reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations and improvements, (4) cost of engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and of revenues, administrative expenses, expenses necessary or incident to determining the feasibility or practicability of constructing the project, [and] (5) such other expenses as may be necessary or incident to the construction and acquisition of the project, the financing of such construction and acquisition and the placing of the project in operation, and (6) any other expenses necessary to finance a project;

Sec.

2.

sSB103(k) /(1) FileThe No.authority may form one or more subsidiaries to carry out the public purposes of the authority and may transfer to any such subsidiary or to any subsidiary established by the General Assembly through public or special act any moneys and real or personal property of any kind or nature.

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212 (k) (1) The authority may form one or more subsidiaries to carry out the public purposes of the authority and may transfer to any such subsidiary or to any subsidiary established by the General Assembly through public or special act any moneys and real or personal property of any kind or nature.

Each such subsidiarySubstitute shallSenate beBill subjectNo. to suit provided its liability shall be limited solely to the assets, revenues and resources of the subsidiary and without recourse to the general funds, revenues, resources or any other assets of the authority.

Each103 such subsidiary isshall authorizedbe to assume or take title to property subject to anysuit existingprovided lien, encumbrance or mortgage and to mortgage, convey or dispose of its assetsliability andshall pledgebe itslimited revenuessolely in order to secure any borrowing, for the purpose of refinancing, rehabilitating or improving its assets, providedrevenues eachand suchresources borrowing or mortgage shall be a special obligation of the subsidiary,subsidiary which obligation may be in the form of bonds, bond anticipation notes and otherwithout obligationsrecourse to the extentgeneral permittedfunds, under this chapter to fund and refund the same and provide for the rights of the holders thereof, and to secure the same by pledge of revenues, notesresources andor other assets and which shall be payable solely from the assets, revenues and other resourcesof thesubsidiary.The authority shallhave thepower to assign to a subsidiary any rights, moneys or other assets itof has under any governmental program including the nursingauthority. home loan program.

Each such subsidiary is authorized to assume or take title to property subject to any existing lien, encumbrance or mortgage and to mortgage, convey or dispose of its assets and pledge its revenues in order to secure any borrowing, for the purpose of refinancing, rehabilitating or improving its assets, provided each such borrowing or mortgage shall be a special obligation of the subsidiary, which obligation may be in the form of bonds, bond anticipation notes and other obligations to the extent permitted under this chapter to fund and refund the same and provide for the rights of the holders thereof, and to secure the same by pledge of revenues, notes and other assets and which shall be payable solely from the assets, revenues and other resourcesofthesubsidiary.The authority shallhave thepower to assign to a subsidiary any rights, moneys or other assets it has under any governmental program including the nursing home loan program.

A resolution of the authority shall prescribe the purposes for which each sSB103such /subsidiary Fileis No.formed.

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212 such subsidiary is formed.

Any such personsso appointedshallnot bebepersonally personally liable forthedebts,obligationsorliabilitiesofanysuchsubsidiaryasprovided insaidsection1-125.

(4)Public TheAct authorityNo. or such subsidiary may take [,] such actions as are necessary to comply with the provisions of the Internal Revenue Code of 1986 or any subsequent corresponding internal revenue code of the United States, as from time to time amended, to qualify and maintain any such subsidiary as a corporation exempt from taxation under said internal revenue code.

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103 (4) The authority or such subsidiary may take [,] such actions as are necessary to comply with the provisions of the Internal Revenue Code of 1986 or any subsequent corresponding internal revenue code of the United States, as from time to time amended, to qualify and maintain any such subsidiary as a corporation exempt from taxation under said internal revenue code.

3.2.

It is recognized that costs connected with collegiate or postsecondary education are increasingly burdensome and that it is essential that students attending institutions for higher education or postsecondary sSB103education /programs, Fileand No.parents and others responsible for paying the costs thereof, be provided with lower cost financial assistance in order to help such students to achieve higher levels of learning and developmentoftheirintellectualcapacityandskills.Itisalsorecognized that Connecticut institutions for higher education should be provided with appropriate additional means to assist qualified students financially to achieve the required levels of learning and development of their intellectual capacity and skills.

212It 5is sSB103the Filepurpose of this chapter and policy of the state to provide a measure of financial assistance to Public Act No.

21222-41 education3 programs, and parents and others responsible for paying the costs thereof, be provided with lower cost financial assistance in order to help such students to achieve higher levels of learning8 andSubstitute developmentoftheirintellectualcapacityandskills.ItisalsorecognizedSenate thatBill ConnecticutNo. institutions for higher education should be provided with appropriate additional means to assist qualified students financially to achieve the required levels of learning and development of their intellectual capacity and skills.

It103 is the purpose of this chapter and policy of the state to provide a measure of financial assistance to students in or from thestate, their parents and others responsible for the costsoftheir educationandanalternative method to enableConnecticut institutions for higher education to assist qualified students to attend such institutions, all to the public benefit and good, to the extent and manner provided herein.

4.3.

(3)"Authorityloans"meanseducationloansbytheauthority,orloans by the authority from the proceeds of bonds for the purpose of funding sSB103education /loans; File No.

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212 education loans;

(6)Public "BondAct resolution"No. means the resolution or resolutions of the authority and the trust agreement, if any, authorizing the issuance of and providing for the terms and conditions applicable to bonds;