Higher Education and Employment Advancement Committee
JOINT FAVORABLE REPORT
Bill No.: SB-305
AN ACT CONCERNING THE CONNECTICUT HEALTH AND EDUCATIONAL
FACILITIES AUTHORITY AND THE CONNECTICUT HIGHER EDUCATION
Title: SUPPLEMENTAL LOAN AUTHORITY.
Vote Date: 3/10/2020
Vote Action: Joint Favorable Substitute
PH Date: 3/5/2020
File No.:
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Higher Education and Employment Advancement Committee
REASONS FOR BILL:
This bill allows CHEFA to transfer money, real estate, or personal property to any of its
subsidiaries. It also allows them to establish and pay into special capital serve funds and
increases the aggregate amount of bonds from a maximum of $300 million to a maximum of
$500 million.
Substitute language removes CHESLA's authority to issue other types of educational
assistance in addition to grants and loans. It also removes language allowing CHEFA to issue
bonds to finance a project on behalf of a health care institution that is a subsidiary of an in-
state health care institution wholly or partially owned or controlled and located in another
state, or wholly under common ownership or control as an in-state health care institution and
located in NY, RI, or MA.
RESPONSE FROM ADMINISTRATION/AGENCY:
Jeanette Weldon, Executive Director, CHEFA/CHESLA: Ms. Weldon submitted testimony
in support of this bill on behalf of CHEFA and CHESLA, which is a subsidiary of CHEFA. She
believes that the proposals in this bill would better equip them to improve the wellbeing of
Connecticut residents and expand higher education opportunities. By broadening their ability
to finance projects outside of the state, CHEFA can continue to build on their successes of
job creation and economic development while increasing healthcare access for Connecticut
residents. This bill also makes CHESLA eligible to receive fund transfers from CHEFA and
would enable CHESLA to provide assistance programs and products beyond educational
loans and grants. Ms. Weldon also notes that while there is no immediate need for the
increased bond limit, it provides flexibility for future CHESLA programs.
NATURE AND SOURCES OF SUPPORT:
Hartford HealthCare Corporation: Hartford HealthCare submitted testimony in support of
this bill. Giving CHEFA the ability to issue bonds on behalf of health care organizations for
cross border projects is important for multi-hospital systems like Hartford HealthCare. As it is
common for healthcare organizations to have operations in neighboring states, Connecticut
based institutions require increased flexibility and access to financial tools to support
employees and care providers in the state.
NATURE AND SOURCES OF OPPOSITION:
None expressed.
Reported by: Assistant Clerk Krystin DeLucia Date: March 11, 2020
Page 2 of 2 SB-305


Statutes affected:
Raised Bill: