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Quasi-Public Agencies Quasi-Public Agencies By: Terry Adams, Principal Analyst September 3, 2019 | 2019-R-0182 Issue This report answers several questions about Connecticut quasi-public agencies. Primarily, it addresses why they were established, their roles, how they are funded, and what oversight is built into state law. We address each question separately below. This report updates OLR Report 2018- R-0056. How Many Quasi-Public Agencies does Connecticut Have? Connecticut has 17 quasi-public agencies (CGS § 1-120(1), as amended by PA 19-25 (§ 24) and PA 19-117 (§ 225)): 1. Connecticut Innovations, Incorporated (CI); 2. Connecticut Health and Educational Facilities Authority (CHEFA); 3. Connecticut Higher Education Supplemental Loan Authority (CHESLA); 4. Connecticut Student Loan Foundation (CSLF); 5. Connecticut Housing Finance Authority (CHFA); 6. State Housing Authority (SHA); 7. Materials Innovation and Recycling Authority; 8. Capital Region Development Authority (CRDA); 9. Connecticut Lottery Corporation; 10. Connecticut Airport Authority; 11. Connecticut Health Insurance Exchange (doing business as Access Health CT); 12. Connecticut Green Bank; 13. Connecticut Retirement Security Authority; 14. Connecticut Port Authority; www.cga.ct.gov/olr Connecticut General Assembly (860) 240-8400 [email protected] Office of Legislative Research Room 5300 Stephanie A. D’Ambrose, Director Legislative Office Building 15. State Education Resource Center (SERC); 16. Paid Family and Medical Leave Insurance Authority; and 17. Connecticut Municipal Redevelopment Authority (MRDA). Generally, Why Were They Created? The major reason for establishing quasi-public agencies was their organizational location outside the structure of state government, which meant they could avoid many of the requirements and controls imposed on governmental agencies. Thus, they could respond to problems and opportunities faster and more efficiently than a comparable state agency while maintaining a degree of oversight and accountability. What is the Purpose, Governing Body, Bonding Authority, and Funding Source of Each Quasi-Public Agency? Quasi-public agencies in Connecticut vary in these respects. Table 1 details each quasi-public agency’s purpose, governing body, bonding authority, and funding source. (In the table, “executive branch officials” refers to appointed officials in the executive branch, such as the Office of Policy and Management (OPM) secretary or state agency commissioners.) 2019-R-0182 September 3, 2019 Page 2 of 12 Table 1: Purpose, Governing Body, Bonding Authority, and Funding of Quasi-Public Agencies Quasi-Public Purpose Governing Body Bonding Authority Funding Agency Connecticut Provide capital and support 17-member board of directors None; CI's programs were Interest on loans, income from Innovations, entrepreneurs need to research, initially funded with general investment of funds, state and Incorporated develop, and market new and obligation bonds; subsequent federal grants, and application (CI) early stage technologies loan repayments were used to and license fees Four legislative appointees establish self-sustaining (CGS § 32-32 et Nine gubernatorial appointees revolving loan funds seq.) Three executive branch officials State treasurer Governor selects chairperson Connecticut Provide financing to nonprofit 10-member board of directors Can issue its own bonds and Fees charged to conduit Health and colleges and health care other obligations; it also issues borrowers on its portfolio of Education institutions to support tax-exempt and taxable bonds Facilities construction of facilities such as revenue bonds secured by a Eight gubernatorial appointees Authority dormitories, academic buildings, special capital reserve fund (CHEFA) athletic facilities, clinics, OPM secretary (SCRF) to finance projects for hospitals, and laboratories “participating nursing homes” (CGS §10a-176 et State treasurer or for housing, student seq.) centers, food service facilities, and other auxiliary service Governor selects chairperson, facilities at public higher who is subject to confirmation education institutions by both houses of the In addition, CHEFA may issue legislature up to $100 million in special obligation funds secured by a SCRF to finance equipment acquisitions by hospitals Connecticut As a subsidiary of CHEFA, Nine-member board of directors Authorized to issue its own Service fees, loan repayments, Higher Education CHESLA makes direct loans to bonds, notes, and other and grants Supplemental college students and their obligations Loan Authority parents to help finance the costs 2019-R-0182 September 3, 2019 Page 3 of 12 Quasi-Public Purpose Governing Body Bonding Authority Funding Agency (CHESLA) of undergraduate and graduate Four appointments made by the education CHEFA board (CGS § 10a-179a) CHEFA board chairperson (CGS § 10a-221 et seq.) CHEFA executive director Two executive branch officials State treasurer CHEFA board chairperson serves as CHESLA board chairperson Connecticut As a subsidiary of CHEFA, CSLF The CHESLA board also serves Authorized to issue bonds, Interest on loans Student Loan aims to improve educational as the board of directors for notes, and other obligations Foundation opportunities and promote loan CSLF (see above) (CSLF) repayment (CGS § 10a-201 et seq.) CSLF holds and administers a portfolio of loans and bonds but no longer makes or guarantees new loans Connecticut Alleviate the shortage of housing 16-member board of directors Authorized to issue bonds and Fees, loan repayments, and Housing Finance for low- and moderate-income other obligations; issues its state appropriations Authority individuals and families and own bonds to finance the (CHFA) promote or maintain the state’s Housing Mortgage Finance Four legislative appointees economic development through Program, which is secured by (CGS § 8-241 et employer-assisted housing Seven gubernatorial appointees a SCRF; the Special Needs seq.) efforts Housing Mortgage Finance Four executive branch officials Program (for group homes) is State treasurer funded by General Fund appropriations and secured with a SCRF 2019-R-0182 September 3, 2019 Page 4 of 12 Quasi-Public Purpose Governing Body Bonding Authority Funding Agency Governor selects chairperson State Housing As a subsidiary of CHFA and a Three-member board of None Loan repayments Authority successor to the Connecticut directors (SHA) Housing Authority (CHA), SHA manages state housing projects (CGS § 8–244b et that CHA initiated or acquired; Three appointees of the CHFA seq.) since CHA stopped taking new board (CGS § 8-119zz et projects after May 25, 1994, seq.) SHA's sole function is to oversee any CHA loan still ongoing CHFA board appoints chairperson Materials Plan, design, build, finance, and 11-member board of directors Authorized to issue its own Sale of bonds; sale of Innovation and operate solid waste disposal, bonds and notes, subject to products, materials, fuels, and Recycling volume reduction, recycling, and the state treasurer’s approval energy; federal loans or Authority intermediate processing and Eight legislative appointees grants; municipal loan resource recovery facilities repayments; service fees; and (CGS § 22a-257 et Three gubernatorial appointees municipal contracts seq.) Governor selects chairperson, who is subject to confirmation by both houses of the legislature Capital Region Stimulate new investment within 14-member board of directors Authorized to issue bonds, State grants and Development the capital region, provide notes, and other obligations appropriations, including a Authority support for multicultural $6.2 million General Fund (CRDA) destinations, attract Two legislative appointees appropriation in FYs 20 and 21 entertainment and sporting Four gubernatorial appointees (CGS § 32-600 et events, encourage residential Parking and utility fees, seq.) housing development, maintain Four executive branch officials investments, revenue bonds, and market the convention and facility revenues center, promote tourism, The mayors of Hartford and redevelop property within the city East Hartford of Hartford, and stimulate 2019-R-0182 September 3, 2019 Page 5 of 12 Quasi-Public Purpose Governing Body Bonding Authority Funding Agency economic development in the Two appointees of Hartford’s capital region mayor Governor selects chairperson Connecticut Operate the state lottery 13-member board of directors None Ticket sales, retail Lottery commissions, and processing Corporation fees Six legislative appointees (CGS § 12-800 et Five gubernatorial appointees seq.) OPM secretary State treasurer Governor selects chairperson Connecticut Manage, operate, and develop 11-member board of directors Authorized to issue bonds, Landing and parking fees, Airport Authority Bradley International Airport and notes, and other obligations. terminal rent, rental car fees, other airports, including the concessions, issuance of (CGS § 15-120aa state-owned general aviation Four legislative appointees bonds, state and federal et seq.) airports grants, investment income, Four gubernatorial appointees and other facility fees Two executive branch officials State treasurer Governor selects chairperson Connecticut Reduce the number of 14-member board of directors Authorized to issue bonds, Issuance of bonds, health Health Insurance individuals without health (11 voting and three non-voting) notes, and other obligations. carrier fees, investment Exchange insurance in the state and assist revenue, and federal and state individuals and small businesses
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