Sec. 10a-186a. Special capital reserve funds related to nursing homes, residential, food service and auxiliary service facilities and student centers and related
buildings and improvements. (a) In connection with the issuance of bonds to finance
a project at a participating nursing home or to refund bonds previously issued by the
authority to finance a project at a participating nursing home, or in connection with the
issuance of bonds to effect a refinancing or other restructuring with respect to one or more
participating nursing homes as permitted by subsection (b) of this section, to finance
dormitories, residential facilities, student centers, food service facilities and other auxiliary service facilities and related buildings and improvements at a public institution of
higher education, or to finance up to one hundred million dollars, in the aggregate, for
equipment, including installation and any necessary building renovations or alterations
for the installation and operation of such equipment, for participating health care institutions at the discretion of the Secretary of the Office of Policy and Management and the
Treasurer, the authority may create and establish one or more reserve funds to be known
as special capital reserve funds and may pay into such special capital reserve funds (1)
any moneys appropriated and made available by the state for the purposes of such funds,
(2) any proceeds of sale of notes or bonds for a project, to the extent provided in the
resolution of the authority authorizing the issuance thereof, and (3) any other moneys
which may be made available to the authority for the purpose of such funds from any
other source or sources. The moneys held in or credited to any special capital reserve
fund established under this section, except as hereinafter provided, shall be used solely
for the payment of the principal of and interest, when due, whether at maturity or by
mandatory sinking fund installments, on bonds of the authority secured by such capital
reserve fund as the same become due, the purchase of such bonds of the authority, the
payment of any redemption premium required to be paid when such bonds are redeemed
prior to maturity, including in any such case by way of reimbursement of a provider of
bond insurance or of a credit or liquidity facility that has paid such amounts; provided
the authority shall have power to provide that moneys in any such fund shall not be
withdrawn therefrom at any time in such amount as would reduce the amount of such
funds to less than the maximum amount of principal and interest becoming due by
reasons of maturity or a required sinking fund installment in the then current or any
succeeding calendar year on the bonds of the authority then outstanding or the maximum
amount permitted to be deposited in such fund by the Internal Revenue Code of 1986,
or any subsequent corresponding internal revenue code of the United States, as from
time to time amended, to permit the interest on said bonds to be excluded from gross
income for federal tax purposes and secured by such special capital reserve fund, such
amount being herein referred to as the "required minimum capital reserve", except for
the purpose of paying such principal of, redemption premium and interest on such bonds
of the authority secured by such special capital reserve becoming due and for the payment
of which other moneys of the authority are not available. The authority may provide
that it shall not issue bonds secured by a special capital reserve fund at any time if the
required minimum capital reserve on the bonds outstanding and the bonds then to be
issued and secured by the same special capital reserve fund at the time of issuance,
unless the authority, at the time of the issuance of such bonds, shall deposit in such
special capital reserve fund from the proceeds of the bonds so to be issued, or otherwise,
an amount which, together with the amount then in such special capital reserve fund,
will be not less than the required minimum capital reserve. On or before December first,
annually, there is deemed to be appropriated from the state General Fund such sums, if
any, as shall be certified by the chairman or vice-chairman of the authority to the Secretary of the Office of Policy and Management and the Treasurer of the state, as necessary
to restore each such special capital reserve fund to the amount equal to the required
minimum capital reserve of such fund, and such amounts shall be allotted and paid to
the authority. For the purpose of evaluation of any such special capital reserve fund,
obligations acquired as an investment for any such fund shall be valued at market.
Nothing contained in this section shall preclude the authority from establishing and
creating other debt service reserve funds in connection with the issuance of bonds or
notes of the authority which are not special capital reserve funds. Subject to any
agreement or agreements with holders of outstanding notes and bonds of the authority,
any amount or amounts allotted and paid to the authority pursuant to this section shall
be repaid to the state from moneys of the authority at such time as such moneys are not
required for any other of its corporate purposes and in any event shall be repaid to the
state on the date one year after all bonds and notes of the authority theretofore issued
on the date or dates such amount or amounts are allotted and paid to the authority or
thereafter issued, together with interest on such bonds and notes, with interest on any
unpaid installments of interest and all costs and expenses in connection with any action
or proceeding by or on behalf of the holders thereof, are fully met and discharged. No
bonds secured by a special capital reserve fund shall be issued to pay project costs unless
the authority is of the opinion and determines that the revenues from the project shall
be sufficient (A) to pay the principal of and interest on the bonds issued to finance the
project, (B) to establish, increase and maintain any reserves deemed by the authority to
be advisable to secure the payment of the principal of and interest on such bonds, (C)
to pay the cost of maintaining the project in good repair and keeping it properly insured,
and (D) to pay such other costs of the project as may be required.
(b) Notwithstanding the provisions of subsection (a) of this section, after June 4,
1998, no bonds secured by such a special capital reserve fund shall be issued by the
authority to finance a project at a participating nursing home, or to refund, refinance or
otherwise restructure bonds issued to finance a project at a participating nursing home,
except for bonds that meet the following requirements: (1) Such bonds, which may
be bonds issued on a pooled or obligated group basis with respect to more than one
participating nursing home, must, at least in part, refund, refinance or otherwise restructure bonds which are already secured by a special capital reserve fund pursuant to this
section; (2) the state must be released from any obligation to restore any special capital
reserve fund for the bonds being refunded, refinanced or otherwise restructured; and
(3) the authority and the State Treasurer and the Secretary of the Office of Policy and
Management must approve such bonds and must determine that the aggregate liability
of the state with respect to such bonds will be less than the aggregate liability of the
state with respect to the bonds being refunded, refinanced or otherwise restructured and
that such refunding, refinancing or restructuring is in the best interest of the state. Any
approval and determination by the authority, the State Treasurer and the secretary under
subdivision (3) of this subsection shall be in lieu of (A) the otherwise required opinion
of sufficiency by the authority set forth in subsection (a) of this section, and (B) the
approval of the State Treasurer and the documentation of the authority otherwise required under subsection (a) of section 1-124, and may provide for the waiver or modification of such other requirements of subsection (a) of this section as the authority, the
State Treasurer and the secretary determine to be necessary or appropriate in order
to effectuate such refunding, refinancing or restructuring, subject to all applicable tax
covenants of the authority and the state.
(P.A. 92-261, S. 8, 17; P.A. 95-270, S. 4, 11; P.A. 98-167, S. 5, 6; P.A. 04-167, S. 1; May Sp. Sess. P.A. 04-1, S. 17.)
History: P.A. 95-270 deleted reference to facilities for provision of student housing and added residential facilities,
student centers, food service facilities and auxiliary service facilities and related buildings and improvements and made
technical changes, effective June 22, 1995; P.A. 98-167 designated existing section as Subsec. (a), and expanded use of
special capital reserve funds to include refunding of bonds previously issued by the authority to finance a project at a
participating nursing home and added Subsec. (b) restricting issuance of bonds, effective June 4, 1998; P.A. 04-167 amended
Subsec. (a) to add provisions allowing use of a capital reserve fund for refinancing or restructuring of certain nursing
homes and provisions re use of the fund for reimbursement of providers of bond insurance and amended Subsec. (b) to
add provisions re the refinancing or restructuring of participating nursing homes, to add provisions re bonds issued for
such purpose on a pooled or obligated group basis, to require a determination that the issuance of bonds for such purpose
is in the best interests of the state and to allow for waiver of certain requirements of section, effective June 1, 2004; May
Sp. Sess. P.A. 04-1 amended Subsec. (a) to authorize creation of a special capital reserve fund in connection with financing
of equipment purchases at certain institutions at the discretion of the Secretary of the Office of Policy and Management
and the Treasurer and to make a technical change, effective July 1, 2004.
Sec. 10a-186b. Nursing home debt service assistance program established.
Definitions. Powers of State Treasurer and authority. (a) As used in this section,
section 10a-186c and subsection (k) of section 10a-179, the following words and terms
shall have the following meanings unless the context indicates another or different meaning or intent:
(1) "Amount available for debt service" means, for any accounting period, the net
revenues available for debt service for such period reduced by the qualified expenditures
for such period;
(2) "Authority" means the State of Connecticut Health and Educational Facilities
Authority as defined in section 10a-178;
(3) "Bonds" means revenue bonds of the authority issued to finance a project at a
participating nursing home, as defined in section 10a-178 which are secured by a special
capital reserve fund;
(4) "Bond documents" means all documents related to an issue of bonds including,
but not limited to, the trust indenture, the loan agreement, the bonds, the mortgage and
any other documents included in the closing transcript;
(5) "Deficiency" as used in connection with any bonds, means the total of the following: (A) For any completed accounting period, the difference between the amount available for debt service for such period and the payment required to be made to the subject
special capital reserve fund during such period so that the subject special capital reserve
fund is in compliance with the applicable bond documents; (B) the projected amount
necessary, after taking into account the estimated amount available for debt service, to
avoid a draw on the special capital reserve funds or such higher amount as provided in
the bond documents for the period selected by the authority so that the state has no
obligation to make payments to such special capital reserve fund; and (C) such additional
amounts as the authority may deem advisable to prevent the state from being obligated
to make any payment to the applicable special capital reserve fund;
(6) "Deficiency loan" means a loan made by the authority to a qualified nursing
home to fund all or a portion of the deficiency. The principal amount of the deficiency
loan shall not exceed the deficiency for the qualified nursing home receiving the deficiency loan. All other terms and conditions of the deficiency loan including the rate of
interest, if any, shall be set by the authority as it deems appropriate;
(7) "Net revenues available for debt service" means, for any accounting period, the
excess of operating and nonoperating revenues of the qualified nursing home, including
the proceeds of business interruption insurance over the operating and nonoperating
expenses of the qualified nursing home for such period. For the purposes of this subdivision such revenues and expenses shall exclude any depreciation, amortization and current interest expense, as determined in accordance with generally accepted accounting
principles, using either accrual or cash basis accounting, subject, to such adjustment
for extraordinary, nonrecurrent, capital and other expenditures as the authority deems
appropriate to determine actual funds available for debt service;
(8) "Qualified expenditures" means all expenditures of any kind and type of a qualified nursing home, including capital expenditures and repayment of debt, which are
necessary or advisable for the continued operation of a qualified nursing home in compliance with all applicable laws;
(9) "Qualified nursing home" means a nursing home financed by bonds issued by
the authority and secured by a special capital reserve fund pursuant to applicable bond
documents;
(10) "Special capital reserve funds" means the funds authorized under section 10a-186a and as incorporated in the bond documents;
(11) "Subject special capital reserve fund" means the special capital reserve fund
to which a specific qualified nursing home is required to make payments under applicable bond documents.
(b) There is established, within the office of the State Treasurer, a program to be
known as the "nursing home debt service assistance program". The State Treasurer may,
upon request of the Connecticut Health and Educational Facilities Authority advance
funds to the authority from amounts appropriated from the General Fund for debt service
or appropriated for said program, for a deficiency loan or payment of debt service on
nursing home bonds issued by the authority and secured by a special capital reserve
fund. The State Treasurer shall not advance funds unless there has been delivered to the
State Treasurer in connection with such advance, a certificate of the executive director
of the authority or any officer of the authority certifying: (1) That the board of directors
of the authority has authorized the deficiency loan to be funded and made all findings
required by public act 97-11 of the June 18 special session*; (2) the principal amount
of the deficiency loan; (3) the requested amount of the advance from the nursing home
debt service assistance program; and (4) the amount of all previous advances made in
respect of such deficiency loan. Upon receipt of such certificate, to the extent funds are
available, the State Treasurer is authorized to make the appropriate payment to the
authority for the purpose of funding the deficiency loan.
(c) The authority is authorized from time to time to extend deficiency loans to qualified nursing homes. Deficiency loans may be advanced in one or more installments and
multiple deficiency loans may be extended to the same qualified nursing home. The
terms and conditions of each deficiency loan shall be set forth in the authorizing resolution of the board of directors of the authority provided the board may delegate the power
to set such terms and conditions to the executive director and any managing director of
the authority. Prior to approving a deficiency loan, the board of directors of the authority
shall reasonably determine, based upon the projections and other information presented
to it that (1) there is a deficiency, and (2) any principal amount of the deficiency loan
does not exceed the amount of the deficiency. All proceeds of a deficiency loan shall
be made by the authority directly to the trustee of the bonds.
(d) The authority shall have all powers, right and authority granted to it by this
chapter or otherwise to administer and enforce any deficiency loan including the right
to waive defaults and payments, extend maturities and release collateral. Subject to the
approval of the State Treasurer, the authority is specifically empowered in its discretion,
to forgive up to one-half of the principal amount of a deficiency loan if it finds that the
financial condition of the qualified nursing home has substantially improved and the
risk that the state will be required to make payments to restore the subject special capital
reserve fund has been substantially reduced. All repayments made on deficiency loans
shall be paid by the authority to the State Treasurer for deposit in the General Fund.
(June 18 Sp. Sess. P.A. 97-11, S. 39-41, 65; P.A. 98-167, S. 2, 3, 6.)
*Public act 97-11 of the June 18 special session is entitled "An Act Concerning Computerized Information Sharing,
the Mashantucket Pequot and Mohegan Fund, Early Retirement, School Construction, State Buildings, Nursing Homes,
Executive and Legislative Councils, Commissions and Task Forces, Appropriations for the Fiscal Years Ending June 30,
1997, 1998 and 1999, Spring and Well Water Collection, Project Concern, Notice Requirements for Psychiatric Admissions,
the Tax on Net Direct Subscriber Charges of Health Care Centers, Elimination of Certain Wage Inequities, Sheriffs' Fees
and Expenses of the Connecticut Siting Council". (See Reference Table captioned "Public Acts of June 18, 1997" in
Volume 16 which lists the sections amended, created or repealed by the act.)
History: June 18 Sp. Sess. P.A. 97-11 effective July 1, 1997; P.A. 98-167 amended Subdiv. (8) of Subsec. (a) to delete
requirement that a qualified nursing home must be outside of bankruptcy, amended Subdiv. (9) of Subsec. (a) to provide
that a qualified nursing home means a nursing home financed by bonds issued by the authority and secured by a special
capital reserve fund, rather than a nursing home required to make payments to a special capital reserve fund, and amended
Subsec. (b) to change name of program from "nursing home loan program" to "nursing home debt service assistance
program" to expand funds available for advancement by the State Treasurer to include amounts appropriated from the
General Fund for debt service, to expand use of funds to include payment of debt service on nursing home bonds issued
by the authority and secured by a special capital reserve fund and to authorize State Treasurer to advance funds upon
delivery of a certificate of the executive director or any officer of the authority, rather than a certificate of the executive
director and any officer of the authority, effective June 4, 1998 (Revisor's note: In Subsec. (a) the Revisors changed the
punctuation by inserting a colon before the first definition and semicolons following definitions (1) to (10), inclusive).
Sec. 10a-186c. State Treasurer may advance funds re qualified nursing
homes. In the event that a qualified nursing home, as defined in section 10a-186b, is
disposed of as the result of a receivership, bankruptcy or insolvency, or upon determination by the State Treasurer that the state's liability for debt service has been reduced
through sale of a qualified nursing home, or in order to otherwise avoid a draw on the
special capital reserve fund for any bonds issued by the authority for such qualified
nursing home, the State Treasurer may advance funds to the authority from amounts
appropriated for the nursing home debt service assistance program, or from other General Fund debt service appropriations, for any principal and interest payments on bonds
not retired from the proceeds of the sale of the home or which remain outstanding for
any other reason. The State Treasurer shall not advance funds unless there has been
delivered to the State Treasurer in connection with such advance, a certificate of the
executive director of the authority or any officer of the authority certifying: (1) That the
board of directors of the authority has determined that a draw on the special capital
reserve fund would occur in the absence of the advance; (2) the requested amount of
the advance required; and (3) the amount of all previous advances made relative to the
bond issue.
(P.A. 98-167, S. 4, 60.)
History: P.A. 98-167 effective June 4, 1998.
Sec. 10a-187. (Formerly Sec. 10-346). Payment of bonds. Bonds issued under
the provisions of this chapter shall not be deemed to constitute a debt or liability of the
state or of any political subdivision thereof other than the authority or a pledge of the
full faith and credit of the state or of any such political subdivision other than the authority, but shall be payable solely from the funds herein provided therefor. All such bonds
shall contain on the face thereof a statement to the effect that neither the state of Connecticut nor any political subdivision thereof other than the authority shall be obligated to
pay the same or the interest thereon except from revenues of the project or the portion
thereof for which they are issued and that neither the faith and credit nor the taxing
power of the state of Connecticut or of any political subdivision thereof other than the
authority is pledged to the payment of the principal of or the interest on such bonds.
The issuance of bonds under the provisions of this chapter shall not directly or indirectly
or contingently obligate the state or any political subdivision thereof to levy or to pledge
any form of taxation whatever therefor or to make any appropriation for their payment
except as provided in subsection (d) of section 10a-185 and section 10a-186a. Nothing
contained in this section shall prevent nor be construed to prevent the authority from
pledging its full faith and credit or the full faith and credit of a participating institution
for higher education, the full faith and credit of a participating health care institution,
the full faith and credit of a participating corporation, the full faith and credit of a participating nursing home or the full faith and credit of a participating qualified nonprofit
organization to the payment of bonds or issue of bonds authorized pursuant to this
chapter.
(February, 1965, P.A. 170, S. 12; 1967, P.A. 368, S. 11; P.A. 79-568, S. 9, 11; P.A. 80-483, S. 48, 186; P.A. 82-16, S.
17, 19; P.A. 92-261, S. 11, 17; P.A. 95-270, S. 5, 11.)
History: 1967 act deleted "revenue" as descriptive of bonds, clarified responsibility of authority for bonds and specifically allowed authority to pledge its full faith and credit and full faith and credit of participating institution to payment of
bonds; P.A. 79-568 allowed authority to pledge full faith and credit of participating corporation; P.A. 80-483 made technical
changes; P.A. 82-16 changed "hospital" to "health care institution"; Sec. 10-346 transferred to Sec. 10a-187 in 1983
pursuant to reorganization of higher education system; P.A. 92-261 added exception re Subsec. (d) of Sec. 10a-185 and
reference to nursing homes and qualified nonprofit organizations; P.A. 95-270 added reference to Sec. 10a-186a, effective
June 22, 1995.
Sec. 10a-187a. Pledge by state as to limitation or alteration of rights vested in
authority. The state of Connecticut does hereby pledge to and agree with the holders
of any bonds and notes issued under this chapter and with those parties who may enter
into contracts with the authority or its successor agency pursuant to the provisions of
this chapter that the state will not limit or alter the rights hereby vested in the authority
until such obligations, together with the interest thereon, are fully met and discharged
and such contracts are fully performed on the part of the authority, provided nothing
contained herein shall preclude such limitation or alteration if and when adequate provision shall be made by law for the protection of the holders of such bonds and notes of
the authority or those entering into such contracts with the authority. The authority is
authorized to include this pledge and undertaking for the state in such bonds and notes
or contracts.
(P.A. 92-261, S. 9, 17.)
Sec. 10a-188. (Formerly Sec. 10-347). Rents and charges. The authority is authorized to fix, revise, charge and collect rates, rents, fees and charges for the use of
and for the services furnished or to be furnished by each project and to contract with
any person, partnership, association or corporation, or other body, public or private, in
respect thereof. Such rates, rents, fees and charges shall be fixed and adjusted in respect
of the aggregate of rates, rents, fees and charges from such project so as to provide funds
sufficient with other revenues or moneys available therefor, if any, (1) to pay the cost
of maintaining, repairing and operating the project and each and every portion thereof,
to the extent that the payment of such cost has not otherwise been adequately provided
for, (2) to pay the principal of and the interest on outstanding bonds of the authority
issued in respect of such project as the same shall become due and payable and (3) to
create and maintain reserves required or provided for in any resolution authorizing, or
trust agreement securing, such bonds of the authority. Such rates, rents, fees and charges
shall not be subject to supervision or regulation by any department, commission, board,
body, bureau or agency of this state other than the authority. A sufficient amount of the
revenues derived in respect of a project, except such part of such revenues as may be
necessary to pay the cost of maintenance, repair and operation and to provide reserves
and for renewals, replacements, extensions, enlargements and improvements as may be
provided for in the resolution authorizing the issuance of any bonds of the authority or
in the trust agreement securing the same, shall be set aside at such regular intervals as
may be provided in such resolution or trust agreement in a sinking or other similar fund
which is hereby pledged to, and charged with, the payment of the principal of and the
interest on such bonds as the same shall become due, and the redemption price or the
purchase price of bonds retired by call or purchase as therein provided. Such pledge
shall be valid and binding from the time when the pledge is made; the rates, rents, fees
and charges and other revenues or other moneys so pledged and thereafter received by
the authority shall immediately be subject to the lien of such pledge without any physical
delivery thereof or further act, and the lien of any such pledge shall be valid and binding
as against all parties having claims of any kind in tort, contract or otherwise against the
authority, irrespective of whether such parties have notice thereof. Notwithstanding any
provision of the Connecticut Uniform Commercial Code, neither the resolution nor any
trust agreement nor any other agreement nor any lease by which a pledge is created need
be filed or recorded except in the records of the authority. The use and disposition of
moneys to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement.
Except as may otherwise be provided in such resolution or such trust agreement, such
sinking or other similar fund may be a fund for all such bonds issued to finance projects
at a particular institution for higher education, a particular health care institution or a
particular participating corporation without distinction or priority of one over another;
provided the authority in any such resolution or trust agreement may provide that such
sinking or other similar fund shall be the fund for a particular project at an institution
for higher education, a health care institution or a participating corporation and for the
bonds issued to finance a particular project and may, additionally, permit and provide
for the issuance of bonds having a subordinate lien in respect of the security herein
authorized to other bonds of the authority, and, in such case, the authority may create
separate sinking or other similar funds in respect of such subordinate lien bonds.
(February, 1965, P.A. 170, S. 13; 1967, P.A. 368, S. 12; P.A. 79-568, S. 10, 11; P.A. 82-16, S. 18, 19.)
History: 1967 act deleted "revenue" as descriptive of bonds and included hospitals; P.A. 79-568 included participating
corporations; P.A. 82-16 amended provision re filing of any resolution, agreement or lease creating pledge of revenues
from project for payment of principal and interest on bonds by providing that the existing procedure of filing only in the
records of the authority is adequate notwithstanding the Connecticut Uniform Commercial Code and changed "hospital"
to "health care institution"; Sec. 10-347 transferred to Sec. 10a-188 in 1983 pursuant to reorganization of higher education system.
Sec. 10a-189. (Formerly Sec. 10-348). Use of bond proceeds and revenues. All
moneys received pursuant to the authority of this chapter, whether as proceeds from the
sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied
solely as provided in this chapter. Any officer with whom, or any bank or trust company
with which, such moneys shall be deposited shall act as trustee of such moneys and
shall hold and apply the same for the purposes hereof, subject to such regulations as
this chapter and the resolution authorizing the bonds of any issue or the trust agreement
securing such bonds may provide.
(February, 1965, P.A. 170, S. 14.)
History: Sec. 10-348 transferred to Sec. 10a-189 in 1983 pursuant to reorganization of higher education system.
Sec. 10a-190. (Formerly Sec. 10-349). Enforcement of rights and duties. Any
holder of bonds, bond anticipation notes, other notes or other obligations issued under
the provisions of this chapter or any of the coupons appertaining thereto, and the trustee
or trustees under any trust agreement, except to the extent the rights herein given may
be restricted by any resolution authorizing the issuance of, or any such trust agreement
securing, such bonds, may, either at law or in equity, by suit, action, mandamus or other
proceedings, protect and enforce any and all rights under the laws of the state or granted
hereunder or under such resolution or trust agreement, and may enforce and compel the
performance of all duties required by this chapter or by such resolution or trust agreement
to be performed by the authority or by any officer, employee or agent thereof, including
the fixing, charging and collecting of the rates, rents, fees and charges herein authorized
and required by the provisions of such resolution or trust agreement to be fixed, established and collected.
(February, 1965, P.A. 170, S. 15; 1967, P.A. 368, S. 13.)
History: 1967 act deleted "revenue" as descriptive of bonds and added bond anticipation notes, other notes and other
obligations issued under chapter; Sec. 10-349 transferred to Sec. 10a-190 in 1983 pursuant to reorganization of higher
education system.
Sec. 10a-190a. Contracts with bondholders regarding funds of the authority.
The authority shall have power to contract with the holders of any of its bonds or notes
as to the custody, collection, securing, investment and payment of any reserve funds of
the authority, or of any moneys held in trust or otherwise for the payment of bonds or
notes, and to carry out such contracts. Any officer with whom, or any bank or trust
company with which, such moneys shall be deposited as trustee thereof shall hold,
invest, reinvest and apply the same for the purposes thereof, subject to such provisions
as this chapter and the resolution authorizing the issue of the bonds or notes or the trust
agreement securing such bonds or notes may provide.
(P.A. 92-261, S. 10, 17; May Sp. Sess. P.A. 04-1, S. 30.)
History: May Sp. Sess. P.A. 04-1 specified that an officer with whom funds are deposited may invest or reinvest such
funds, effective June 8, 2004.
Sec. 10a-191. (Formerly Sec. 10-350). Tax exemption. The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of this state,
for the increase of their commerce, welfare and prosperity, and for the improvement of
their health and living conditions, and as the operation and maintenance of a project by
the authority or its agent will constitute the performance of an essential public function,
neither the authority nor its agent shall be required to pay any taxes or assessments upon
or in respect of a project or any property acquired or used by the authority or its agent
under the provisions of this chapter or upon the income therefrom, and any bonds issued
under the provisions of this chapter, their transfer and the income therefrom, including
any profit made on the sale thereof, shall at all times be free from taxation of every kind
by the state and by the municipalities and other political subdivisions in the state.
(February, 1965, P.A. 170, S. 16.)
History: Sec. 10-350 transferred to Sec. 10a-191 in 1983 pursuant to reorganization of higher education system.
Sec. 10a-192. (Formerly Sec. 10-351). Refunding bonds. (a) The authority is
hereby authorized to provide for the issuance of bonds of the authority for the purpose
of refunding any bonds of the authority then outstanding, including the payment of any
redemption premium thereon and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase or maturity of such bonds, and, if deemed
advisable by the authority, for the additional purpose of paying all or any part of the
cost of constructing and acquiring additions, improvements, extensions or enlargements
of a project or any portion thereof.
(b) The proceeds of any such bonds issued for the purpose of refunding outstanding
bonds may, in the discretion of the authority, be applied to the purchase or retirement
at maturity or redemption of such outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof and may, pending
such application, be placed in escrow to be applied to such purchase or retirement at
maturity or redemption on such date as may be determined by the authority.
(c) Any such escrowed proceeds, pending such use, may be invested and reinvested
in direct obligations of, or obligations unconditionally guaranteed by, the United States
of America and certificates of deposit or time deposits secured by direct obligations of,
or obligations unconditionally guaranteed by, the United States of America, or obligations of a state, a territory, or a possession of the United States of America, or any
political subdivision of any of the foregoing, or of the District of Columbia, within the
meaning of Section 103(a) of the Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United States, as from time to time amended,
the full and timely payment of the principal of and interest on which are secured by an
irrevocable deposit of direct obligations of the United States of America which, if the
outstanding bonds are then rated by a nationally recognized rating agency, are rated in
the highest rating category by such rating agency, maturing at such time or times as shall
be appropriate to assure the prompt payment, as to principal, interest and redemption
premium, if any, of the outstanding bonds to be so refunded. The interest, income and
profits, if any, earned or realized on any such investment may also be applied to the
payment of the outstanding bonds to be so refunded. After the terms of the escrow have
been fully satisfied and carried out, any balance of such proceeds and interest, income
and profits, if any, earned or realized on the investments thereof may be returned to the
authority for use by it in any lawful manner.
(d) The portion of the proceeds of any such bonds issued for the additional purpose
of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions or enlargements of a project may be invested and reinvested as the
provisions of this chapter and the resolution authorizing the issuance of such bonds or
the trust agreement securing such bonds may provide. The interest, income and profits,
if any, earned or realized on such investment may be applied to the payment of all or
any part of such cost or may be used by the authority in any lawful manner.
(e) All such bonds shall be subject to the provisions of this chapter in the same
manner and to the same extent as other bonds issued pursuant to this chapter.
(February, 1965, P.A. 170, S. 17; 1967, P.A. 368, S. 14; P.A. 92-261, S. 7, 17; May Sp. Sess. P.A. 04-1, S. 31.)
History: 1967 act deleted "revenue" as descriptive of bonds and deleted references to "direct" obligations of U.S.,
replacing these with "obligations of, or guaranteed by" the U.S.; Sec. 10-351 transferred to Sec. 10a-192 in 1983 pursuant
to reorganization of higher education system; P.A. 92-261 expanded investment options under Subsecs. (c) and (d); May
Sp. Sess. P.A. 04-1 amended Subsec. (d) to replace provisions re how proceeds of bonds may be invested with provision
authorizing investment of bonds as provided in chapter and the resolution authorizing issuance, effective June 8, 2004.
Sec. 10a-193. (Formerly Sec. 10-352). Bonds declared legal investments. Bonds
issued by the authority under the provisions of this chapter are hereby made securities
in which all public officers and public bodies of the state and its political subdivisions,
all insurance companies, state banks and trust companies, national banking associations,
savings banks, savings and loan associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including
capital in their control or belonging to them. Such bonds are hereby made securities
which may properly and legally be deposited with and received by any state or municipal
officer or any agency or political subdivision of the state for any purpose for which the
deposit of bonds or obligations of the state is now or may hereafter be authorized by law.
(February, 1965, P.A. 170, S. 18; 1967, P.A. 321; 368, S. 15.)
History: 1967 acts allowed investments by state banks, savings banks and savings and loan associations and specified
"national" banking associations; Sec. 10-352 transferred to Sec. 10a-193 in 1983 pursuant to reorganization of higher
education system.
Sec. 10a-194. (Formerly Sec. 10-353). Report to Governor by authority.
Within the first ninety days of each fiscal year of the authority, the authority shall make
a report to the Governor of its activities for the preceding fiscal year. Each such report
shall set forth a complete operating and financial statement covering its operations during such year. The authority shall cause an audit of its books and accounts to be made
at least once each year by certified public accountants and the cost thereof shall be paid
by the authority from funds available to it pursuant to this chapter.
(February, 1965, P.A. 170, S. 19; 1969, P.A. 586, S. 4.)
History: 1969 act substituted "fiscal" for "calendar" year; Sec. 10-353 transferred to Sec. 10a-194 in 1983 pursuant to
reorganization of higher education system.
Sec. 10a-194a. Report to Commissioner of Social Services by authority regarding nursing homes. The authority shall report the terms and conditions of all financings and refinancings of nursing homes to the Commissioner of Social Services
who shall make rate adjustments in accordance with the provisions of sections 17b-122,
17b-124 to 17b-132, inclusive, 17b-136 to 17b-138, inclusive, 17b-194 to 17b-197,
inclusive, 17b-222 to 17b-250, inclusive, 17b-256, 17b-263, 17b-340 to 17b-350, inclusive, 17b-689b and 17b-743 to 17b-747, inclusive.
(P.A. 92-261, S. 16, 17; P.A. 93-262, S. 1, 87; June 30 Sp. Sess. P.A. 03-3, S. 97; P.A. 04-76, S. 43.)
History: P.A. 93-262 authorized substitution of commissioner and department of social services for commissioner and
department of income maintenance, effective July 1, 1993; June 30 Sp. Sess. P.A. 03-3, in repealing Secs. 17b-19, 17b-62 to 17b-65, inclusive, 17b-116, 17b-116a, 17b-116b, 17b-117, 17b-120, 17b-121, 17b-123, 17b-134, 17b-135, 17b-220,
17b-259 and 17b-287, authorized deletion of internal references to said sections in this section, effective March 1, 2004;
P.A. 04-76 deleted references to Secs. 17b-118b and 17b-221 that were repealed by the same act.
Sec. 10a-194b. Withholding of certain funds of nursing homes which are in
default. Notification of other agencies. On and after the time a participating nursing
home is required pursuant to the terms of its agreement with the authority to fund the
working capital fund reserve account at the working capital requirement and the renewal
and replacement fund at the renewal and replacement requirement, if the combined
balance of the working capital fund reserve account and the renewal and replacement
fund for a participating nursing home is equal to or less than ninety days of debt service,
or when a participating nursing home is in default under its agreement with the authority
or when the authority has reasonable grounds to predict that the entity is likely to become
in default on any obligations to the authority occasioned by the failure of a nursing home
to make any payment to the authority or the trustee for the bonds or notes of the authority,
the authority shall send a notice in writing to the Commissioner of Social Services stating
that one of the conditions stated in this section has occurred. Upon receipt of such notice
from the authority the commissioner shall withhold the amount of any funds in the
state's custody that are due or payable to such participating nursing home that are deemed
as the allowance for property costs until the authority certifies the nursing home is no
longer in default or satisfactory arrangements to secure payment in full and in a timely
fashion of all such obligations of the participating nursing home under the agreement
have been made. Funds subject to withholding under this section shall include, but are
not limited to, federal and state grants, contracts, allocation or appropriations and shall
not exceed the portion of the fair rent or capital depreciation plus interest expense receivable by the participating nursing home from the department. If the authority subsequently
notifies the commissioner in writing that the participating nursing home is unable to
cure its default under the agreement with the authority or arrangements satisfactory to
the authority to secure payment in full and in a timely fashion have not been made
after a reasonable period of negotiations, the commissioner shall make available to the
authority any funds withheld by the commissioner from the participating nursing home
under this section. The authority shall apply such funds to the payments required to be
made to the authority or trustee by the participating nursing home to satisfy its obligations
to the authority under its agreement with the authority or to satisfy the obligations of
the authority with respect to any bonds issued by the authority for the benefit of such
participating nursing home or required by the terms of any other law or contract to be
paid to the authority or trustees for the benefit of holders or owners of bonds issued on
behalf of the participating nursing home upon default of the participating nursing home.
Concurrent with any notice from the authority to the commissioner under this section,
the authority shall give notice to any other agency, department or authority of the state
that exercises regulatory, supervisory or statutory control over the operations of the
participating nursing home. Upon notification, such agency, department or authority
shall immediately undertake reviews to determine what action, if any, that agency, department or authority should undertake to assure the continued prudent operation of
such participating nursing home or provision of services to the people served by such
participating nursing home.
(P.A. 92-261, S. 12, 17; P.A. 93-102, S. 1; 93-262, S. 1, 87; 93-435, S. 59, 95.)
History: P.A. 93-102 amended section to clarify provisions re default of a participating nursing home; P.A. 93-262 and
P.A. 93-435 authorized substitution of commissioner and department of social services for commissioner and department
of income maintenance, effective July 1, 1993.
Sec. 10a-194c. Connecticut Child Care Facilities Program. (a) The Connecticut
Health and Educational Facilities Authority shall establish a program to finance low
interest loans for child care and child development centers, family resource centers
and Head Start programs that shall be known as the Connecticut Child Care Facilities
Program. Loans shall be made for the purpose of new construction or renovation of
existing centers or complying with federal, state and local child care requirements, including health and safety standards. For purposes of this section, "child development
center" means a building used by a nonprofit school readiness program, as defined in
section 10-16p, and "child care center" means a nonprofit facility that is licensed by the
Department of Public Health as a child day care center or a group day care home, both
as defined in section 19a-77.
(b) The authority may issue bonds pursuant to section 10a-185 for the purpose of
funding loans to child care and child development centers for the purposes provided in
subsection (a) of this section, including for two or more child care or child development
centers jointly, which bonds may be secured, in whole or in part, by a pledge of revenues
to be derived from the operation or use of a child care or child development center,
including third party payments made on behalf of children served by any such center
to the extent permitted by law. In carrying out the purposes of this section, the authority
shall have and may exercise the powers provided in section 10a-180.
(P.A. 97-259, S. 12, 41; May Sp. Sess. P.A. 04-1, S. 32.)
History: P.A. 97-259 effective July 1, 1997; May Sp. Sess. P.A. 04-1 designated existing provisions as Subsec. (a) and
added Subsec. (b) re bonding for loans to child care and child development centers, effective June 8, 2004.
Sec. 10a-194d. Subsidiary. (a) The Connecticut Health and Educational Facilities
Authority may establish a subsidiary which shall be deemed a quasi-public agency for
purposes of chapter 12, for the purpose of improving access to high-quality child care
in the state by coordinating expertise in finance, government, architecture, construction
and child care, and may transfer to such subsidiary any moneys, real or personal property,
of any child care or child development center financed by the authority and acquired as
a result of a foreclosure or otherwise. Such subsidiary shall have all the privileges,
immunities, tax exemptions and other exemptions of the authority. Such subsidiary shall
be subject to suit and liability solely from the assets, revenues and resources of the
subsidiary and without recourse to the general funds, revenues, resources or any other
assets of the authority. Such subsidiary is authorized to assume or take title to any real
property, including a child care or child development center, subject to any existing
mortgage and to mortgage, convey or dispose of its assets and pledge its revenues in
order to secure any borrowing, for the purpose of developing, acquiring, constructing,
refinancing, rehabilitating or improving its assets, provided each such borrowing or
mortgage, unless otherwise provided by the board or the subsidiary, shall be a special
obligation of the subsidiary, which obligation may be in the form of bonds, bond anticipation notes or other obligations which evidence an indebtedness to the extent permitted
under this chapter to fund, refinance and refund the same and provide for the rights of
holders thereof, and to secure the same by pledge of revenues, notes and mortgages of
others, and which shall be payable solely from the assets, revenues and other resources
of the subsidiary and in no event shall such bonds be secured by a special capital reserve
fund of any kind which is in any way contributed to by the state. The subsidiary shall
have the purposes as provided by resolution of the authority's board of directors, which
purposes shall be consistent with this chapter. No further action is required for the
establishment of the subsidiary, except the adoption of a resolution for the subsidiary.
(b) The board of directors of the subsidiary shall be the board of directors of the
authority.
(c) To the extent necessary or appropriate to assure that the interest on any of its
bonds, notes or other obligations are or continue to be excluded from the gross income
of the recipients for federal income tax purposes, the authority or subsidiary shall take
such actions 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, if necessary, to qualify and maintain such subsidiary as a corporation
exempt from taxation under said Internal Revenue Code.
(P.A. 97-259, S. 13, 41.)
History: P.A. 97-259 effective July 1, 1997.
Sec. 10a-194e. Affordable pharmaceutical drug program. Federally qualified
health centers loan program established. Report. Loan program end date. Procedures. (a) There is established, within the Connecticut Health and Educational Facilities
Authority, a revolving loan program for the purpose of providing loans to federally
qualified health centers in this state to establish pharmacy facilities or a contract pharmacy arrangement with a community pharmacy or other pharmacy contractor in accordance with this subsection. Such program shall be funded by the authority in an amount
not to exceed five hundred thousand dollars and such amount shall be deposited in the
account established pursuant to subsection (b) of this section. The program shall be
administered by the authority to provide loans to federally qualified health centers for
the cost of establishing a pharmacy facility or a contract pharmacy arrangement with a
community pharmacy or other pharmacy contractor to serve as a centralized prescription
drug distributor for federally qualified health centers in this state that have established
affordable pharmaceutical drug programs for qualified low income patients of such
centers pursuant to Section 340B of P.L. 102-585.
(b) (1) There is established the federally qualified health centers loan account that
shall contain any moneys required by law to be deposited in the account pursuant to
subsection (a) of this section, and may contain any other funds as provided in subdivision
(2) of this subsection. Any balance remaining in the account at the end of any fiscal
year shall be carried forward in the account for the fiscal year next succeeding. Payments
made on any loans made pursuant to this section shall be deposited in the account. Any
investment earnings in the account shall be retained in and used for the purposes of the
account.
(2) The authority may accept contributions from any source, public or private, for
deposit in the account for purposes of such program.
(c) A federally qualified health center may apply for a loan pursuant to this section
for not more than one hundred twenty-five thousand dollars. Such loan shall be for a
period of not less than four years, and not more than ten years. The proceeds of such
loan shall be used for the purchase or lease of computers, related software applications,
consulting, automated medication dispensing equipment, inventory, working capital
and other costs associated with the establishment of a pharmacy facility or a contract
pharmacy arrangement. Such loans shall have such other terms and conditions and shall
be subject to such eligibility, loan approval, credit and other underwriting requirements
and criteria as are prescribed by the authority pursuant to subsection (g) of this section.
(d) On or before October 1, 2004, and annually thereafter, the authority shall submit
to the joint standing committee of the General Assembly having cognizance of matters
relating to public health a report, in accordance with section 11-4a, setting forth the
following information: (1) A description of the pharmacy facilities or contract pharmacy
arrangements receiving loans under this section, the general terms of such loans and the
repayment rates of such loans; (2) an assessment of the impact of such loans on the
number of prescriptions that are sold at the federal supply schedule price for prescription
drugs; (3) the need for additional funding for the loan program authorized by this section;
(4) estimated savings to the state and to patients by filling prescriptions through facilities
receiving loans authorized by this section; and (5) such other information as the authority
deems relevant to evaluating the success of the loan program in expanding access to the
federal supply schedule rate for prescription drugs.
(e) In connection with the making and administration of loans pursuant to this section, the authority shall have and may exercise such powers as are necessary or appropriate to carry out the purposes of this section, including the same powers expressly
granted to the authority in section 10a-180, with respect to loans to health care institutions generally.
(f) No loan may be made pursuant to this section after June 30, 2008, and any
moneys then remaining in, or thereafter received to the credit of, the account established
in subsection (b) of this section may be withdrawn by the authority from such account
and used for other purposes of the authority, subject to specific restrictions governing
any contribution to such account pursuant to subdivision (2) of subsection (b) of this
section.
(g) The authority shall adopt written procedures, in accordance with section 1-121,
to carry out the provisions of this section.
(P.A. 03-166, S. 1.)
Sec. 10a-194f. Captive Insurance Demonstration Program Grant Fund. (a)
The Connecticut Health and Educational Facilities Authority shall allocate from its
reserves an amount not to exceed one million five hundred thousand dollars in the aggregate for a period not to exceed three years to establish a Captive Insurance Demonstration
Program Grant Fund. The fund shall be used to provide grants to nonprofit hospitals
that establish a captive insurer or expand coverage offered by an existing captive insurer
in order to provide medical malpractice indemnity or insurance to physicians and surgeons who enjoy privileges at the hospitals. The fund may cover legal, actuarial, consulting and other costs associated with providing such indemnity or insurance. Any
amount in the fund that is not expended at the end of the three-year period shall revert
to the authority's reserves.
(b) Grants shall be awarded based on the size and financial resources of the hospitals.
Grants shall not exceed seven hundred fifty thousand dollars per captive insurer and
shall not be used to establish or expand more than two captive insurers. No hospital
shall be eligible for a grant under this section unless it agrees to provide the authority,
on a periodic basis as determined by the authority but not less than annually, information
on the captive insurer's performance including, but not limited to, premiums charged,
captive insurer operating costs, claims experience, the estimated savings over methods
of insurance used by the hospital prior to the creation of the captive insurer, and other
information required by the authority.
(c) Not later than February 1, 2005, and annually thereafter until February 1, 2008,
the authority shall complete a report that includes an analysis of the information submitted to the authority by hospitals that receive a grant pursuant to this section. The report
shall be made available to the public and the authority shall annually submit the report
to the General Assembly in accordance with section 11-4a.
(May Sp. Sess. P.A. 04-1, S. 22.)
History: May Sp. Sess. P.A. 04-1 effective June 8, 2004.
See Sec. 38a-91 for definition of "captive insurer".
Sec. 10a-194g. Financing of costs of digitizing patient records. The Connecticut
Health and Educational Facilities Authority shall establish, within available resources,
a program to allow nonprofit hospitals to access leases in order to finance costs associated
with the digitization of patient records if such costs are exempt from taxation pursuant
to the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue
code of the United States, as from time to time amended. Such leases may be made
available to hospitals on an individual or group basis.
(May Sp. Sess. P.A. 04-1, S. 23.)
History: May Sp. Sess. P.A. 04-1 effective June 8, 2004.
Sec. 10a-194h. Loans to nonprofit organizations for preschool projects. (a) For
the purposes of the program described in this section, municipalities, local boards of
education with the approval of the municipal legislative body, regional school districts
and regional educational service centers shall be deemed to be "participating qualified
nonprofit organizations". For the purposes of this section, "preschool project" means
the acquisition, construction, improvement, extension, furnishing or equipping of a
structure or facility suitable for use for, required or useful for nonprofit educational
programs for three-year-old or four-year-old children, including, but not limited to,
school readiness and Head Start programs, or the acquisition of fixtures, equipment or
machinery for such a structure or facility; "bonds" means any bonds, including refunding
bonds, notes, temporary notes, interim certificates, debentures or other obligations of
indebtedness; and "municipality" means a town, city, consolidated town or city or consolidated town and borough.
(b) The Connecticut Health and Educational Facilities Authority may issue bonds
pursuant to section 10a-185 for the purpose of funding loans to a participating qualified
nonprofit organization for preschool projects, including for two or more preschool projects jointly, which bonds may be secured, in whole or in part, by a pledge of revenues
to be derived from the operation or use of a preschool project, including fees, charges,
tuition or other revenues or third party payments made on behalf of children served by
such preschool project to the extent permitted by law. In carrying out the purposes of
this section, the authority shall have and may exercise the powers provided in section
10a-180.
(c) Participating qualified nonprofit organizations may borrow money from the
Connecticut Health and Educational Facilities Authority for any preschool project for
which the authority is authorized to make loans pursuant to this section. In connection
with such borrowing, participating qualified nonprofit organizations may enter into any
loan or other agreement and make such covenants, representations and indemnities as
such participating qualified nonprofit organization deems necessary or desirable to obtain such loans from the authority or to facilitate the issue of bonds by the authority to
finance such loans, including agreements with providers of letters of credit, insurance
or other credit facilities for such financings.
(d) Any bonds issued pursuant to this section shall not constitute indebtedness
within the meaning of any statutory limitation on the indebtedness of any participating
municipality, or of the municipality or member municipality if the borrower is a local
board of education or regional school district. Bonds issued pursuant to this section shall
be special obligations of the municipality and shall not be payable from nor charged
upon any funds other than revenues pledged to the payment thereof, nor shall the municipality be subject to any liability thereon except to the extent of any pledged revenues.
No holder or holders of any bonds shall have the right to compel any exercise of the
taxing power of the municipality to pay any bonds or the interest thereon, or to enforce
payment thereon against any property of the municipality except property encumbered
under the provisions and for the purposes of this section. The bonds shall not constitute
a charge, lien or encumbrance, legal or equitable, upon any property of the municipality
except property encumbered under the provisions and for the purposes of this section.
(e) The authority shall adopt procedures to carry out the purposes of this section.
(May Sp. Sess. P.A. 04-1, S. 24.)
History: May Sp. Sess. P.A. 04-1 effective June 8, 2004.
Sec. 10a-195. (Formerly Sec. 10-354). Pledge by state to bondholders and contractors. The state of Connecticut does hereby pledge to and agree with the holders of
any obligations issued under this chapter, and with those parties who may enter into
contracts with the authority pursuant to the provisions of this chapter, that the state will
not limit or alter the rights hereby vested in the authority until such obligations, together
with the interest thereon, are fully met and discharged and such contracts are fully performed on the part of the authority, provided nothing herein contained shall preclude
such limitation or alteration if and when adequate provision shall be made by law for
the protection of the holders of such obligations of the authority or those entering into
such contracts with the authority. The authority as agent for the state is authorized to
include this pledge and undertaking for the state in such obligations or contracts.
(February, 1965, P.A. 170, S. 20.)
History: Sec. 10-354 transferred to Sec. 10a-195 in 1983 pursuant to reorganization of higher education system.
Sec. 10a-196. (Formerly Sec. 10-355). Chapter supplemental to other laws.
Power of authority not subject to supervision or regulation. Sections 10a-176 to
10a-195, inclusive, shall be deemed to provide a complete, additional and alternative
method for the doing of the things authorized thereby, and shall be regarded as supplemental and additional to powers conferred by other laws; provided the issuance of bonds
and refunding bonds under the provisions of this chapter need not comply with the
requirements of any other law applicable to the issuance of bonds including, particularly,
title 42a; and provided in the construction and acquisition of a project pursuant hereto
the authority need not comply with the requirements of chapter 50. Except as otherwise
expressly provided in this chapter, none of the powers granted to the authority under
the provisions of this chapter shall be subject to the supervision or regulation or require
the approval or consent of any municipality or political subdivision or any commission,
board, body, bureau, official or agency thereof or of the state.
(February, 1965, P.A. 170, S. 21; 1967, P.A. 368, S. 16.)
History: 1967 act deleted "revenue" as descriptive of bonds and added proviso re noncompliance with chapter 50; Sec.
10-355 transferred to Sec. 10a-196 in 1983 pursuant to reorganization of higher education system.