Higher Education and Employment Advancement Committee
JOINT FAVORABLE REPORT
Bill No.: SB-852
AN ACT CONCERNING THE CONNECTICUT HEALTH AND EDUCATIONAL
FACILITIES AUTHORITY AND THE CONNECTICUT HIGHER EDUCATION
Title: SUPPLEMENTAL LOAN AUTHORITY.
Vote Date: 3/18/2021
Vote Action: Joint Favorable Substitute
PH Date: 3/9/2021
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:
Connecticut Health and Educational Facilities Authority (CHEFA) and the Connecticut Higher
Education Supplemental Loan Authority (CHESLA).
REASONS FOR BILL:
Currently CHEFA is not allowed to issue bonds on behalf of health care organizations for
projects out of state. This bill will take away that restriction.
Substitute Language:
Section 3: changes the definition of related health care institution
Lines 98-110: adds language allowing CHEFA to issue bonds to finance a project on behalf
of a health care institution that is (1) wholly or partially owned or controlled by a nonprofit,
nonstock corporation located in CT or that controls a CT health care institution and is located
in another state or (2) is partially under common ownership or control as an in-state health
care institution and located in NY, RI, or MA
RESPONSE FROM ADMINISTRATION/AGENCY:
Jeanette W. Weldon, Executive Director, Connecticut Health and Educational Facilities
Authority (CHEFA) and the Connecticut Higher Education Supplemental Loan Authority
(CHESLA) submitted written testimony in support of this bill.
Ms. Weldon indicated that this bill will give CHEFA the ability to issue bonds on behalf of
health care organizations (for example, multi-hospital systems) for cross-border projects in
specific and limited situations. Broadening CHEFAs authority to finance projects that have a
nexus with a Connecticut institution will help us build on our positive track record of job
creation and economic development while increasing access to healthcare for Connecticut
residents. It is important to note that these bonds will not be backed by the Special Capital
Reserve Fund and will not be repaid using taxpayer dollars; they will be the obligation of the
underlying borrower. Project financial reporting will help CHEFA monitor the financial health
of these organizations.
The bill also enable CHEFA to transfer or loan funds to its subsidiaries, such as CHESLA,
expands the definition of education assistance program as outlined in the CHESLA enabling
statutes, allow CHESLA the option of using a bank letter of credit or a similar type of
instrument to fund the Special Capital Reserve Fund (SCRF) rather than bond proceeds, and
it will increase CHESLAs SCRF-backed bond limit from $300 million to $500 million.
NATURE AND SOURCES OF SUPPORT:
The Connecticut Hospital Association submitted written testimony in support of this bill.
This bill broadens the range of entities to which CHEFA is permitted to offer financing
support including related healthcare institutions located in another state that are wholly or
partially owned or controlled by a Connecticut hospital or health system. It also permits
financing for related healthcare institutions in the states of New York, Rhode Island, or the
Commonwealth of Massachusetts, if the arrangement is one of common ownership or control
as a hospital or health system located in Connecticut. These changes enable CHEFA to
support Connecticut hospitals and health systems with related facilities located beyond our
borders, thereby ensuring that financing is fully accessible to these cross-border entities and
available to fund the full range of essential projects undertaken by healthcare institutions
located in this state.
Hartford Healthcare submitted written testimony in support of this bill stating this bill would
give the Connecticut Health and Educational Facilities Authority (CHEFA) additional flexibility
in the types of health and education projects it may support. In particular, this bill allows
CHEFA to issue bonds on behalf of health care organizations for cross border projects in
specific and limited situations. This is particularly important for multi-hospital systems with a
significant footprint in Connecticut, such as Hartford HealthCare.
Nuvance Health submitted written testimony in support of this bill indicating that this bill will
give the Connecticut Health and Educational Facilities Authority (CHEFA) the ability to issue
bonds on behalf of health care organizations for cross border projects in specific and limited
situations. This is particularly important for multi-state, multi-hospital systems with a
significant footprint in Connecticut such as Nuvance Health.
NATURE AND SOURCES OF OPPOSITION:
None submitted.
Reported by: Jeanie Phillips, Clerk Date: March 23, 2021
Page 2 of 2 SB-852


Statutes affected:
Raised Bill:
HED Joint Favorable Substitute:
File No. 281: