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On June 5, 1975, Reilly was named the third Bishop of Norwich, Connecticut, by Pope Paul VI.
A bill to abolish the statutes of limitations to help the victims claim compensation (House Bill 5473) was opposed by the bishops of Connecticut, Bishop Henry J. Mansell, Roman Catholic Archdiocese of Hartford, Bishop William E. Lori, Roman Catholic Diocese of Bridgeport, and Bishop Michael R. Cote, Roman Catholic Diocese of Norwich.