Signed by Governor Ned Lamont

Vote Smart's Synopsis:

Vote to pass a bill that authorizes interest-free loans for federal employees working without pay during shutdown.

Highlights:

• Defines “affected employee” as a federal employee who, during the shutdown, is a resident of the state, and required to work as a federal employee without pay or furloughed as federal employee without pay (Sec. 1).

• Authorizes the authority to administer loan programs from eligible financial institutions to an eligible affected employee (Sec. 2).

• Defines “Shutdown” as the federal fiscal year 2019 partial government shutdown that began December 22, 2018 (Sec. 1).

• Defines “Authority” as the Connecticut Housing Finance Authority (Sec. 1).

• Defines “Eligible financial institution” as a bank or credit union that has a physical presence in this state and is in good standing (Sec. 1).

• Defines “Good standing” to mean that the bank or credit union is not subject to a formal agreement with the Office of Comptroller or the Currency or a consent order or cease and desist order issued by the Federal Deposit Insurance (Sec. 1).

• Authorizes any bank or credit union to apply to the department in order to participate in the loan guarantee program and specifies that the department shall determine the eligibility of the bank or credit union to participate in the loan guarantee program within 1 business day (Sec. 2).

• Defines “Department” as the Department of Banking (Sec. 1).

• Requires an affected employee provide the following information in order to be eligible for the guaranteed loan program, including, but not limited to (Sec. 3):

• Proof of employment status, income, and residence in the state; and

• The amount of unemployment compensation benefits the employee has received and is eligible to.

• Specifies that the amount of the loan shall not exceed $5,000 or the affected employee’s most recent monthly after-tax pay (Sec. 3).

• Specifies that the loan agreement shall not require repayment during the grace period, charge interest on the principle amount before or during the grace period, or for 180 days after the grace period (Sec. 3).

• Defines “Grace period” as the 90 day period after an affected employee’s federal agency is funded (Sec. 1).

• Specifies that this program shall expire upon the repayment of all loans made under this program and specifies that no new loan applications shall be submitted under this program after the shutdown ends (Sec. 5).

• Specifies that affected employees eligible to receive benefits under this act shall also be eligible for unemployment benefits during the period of the shutdown (Sec. 6).

Full Bill Text