Sec. 3-11. *(See end of section for amended version and effective date.) Salary
and bond of Treasurer. Office of Treasurer full time. The Treasurer shall receive an
annual salary of seventy thousand dollars. Before he enters upon the execution of the
duties of his office, he shall give a bond to the state, with sufficient surety, in the sum
of two hundred thousand dollars, for the term for which he has been elected, which bond
shall be conditioned for the faithful performance of his duties other than in connection
with the School Fund. The Treasurer shall devote full time to the duties of the office. Sec. 3-11a. Authority to enter into contractual agreements. In accordance with
established procedures, the Treasurer may enter into such contractual agreements as
may be necessary and proper for the discharge of his duties. Sec. 3-12. Deputy Treasurer. The Treasurer shall appoint a deputy, who shall be
sworn to the faithful discharge of his duties and shall perform all the duties of the Treasurer in case of the sickness or absence of the Treasurer. In case of the death of the
Treasurer, the Deputy Treasurer shall possess the powers and perform the duties belonging to such office until a successor to the deceased Treasurer is elected or appointed and
has qualified. Sec. 3-13. Assistant treasurer for debt management. Additional assistant treasurer. The Treasurer shall appoint an assistant treasurer for debt management. Such
assistant shall be sworn to the faithful discharge of his duties. He shall, under the direction of the Treasurer oversee the general financing procedure in the borrowing of money
by the state and perform such other duties as the Treasurer may direct. The Treasurer
may appoint an additional assistant treasurer as necessary for the efficient conduct of
the business of the Treasurer. Such assistant treasurers shall be in the unclassified service
and may be removed by the Treasurer. Sec. 3-13a. Investment department. Chief investment officer. Investment
counsel. Costs of department. (a) The Treasurer shall, with the advice and consent of
the Investment Advisory Council, appoint a chief investment officer for the Connecticut
retirement pension and trust funds, who shall serve at the pleasure of the Treasurer
and whose compensation shall be determined by the Treasurer within a salary range
established by the Treasurer in consultation with the Investment Advisory Council. The
provisions of section 4-40 shall not apply to the compensation of said officer. Said
officer shall be sworn to the faithful discharge of duties under law. Said officer shall,
under the direction of the Treasurer and subject to the provisions of sections 3-13 to 3-
13d, inclusive, and 3-31b, advise the Treasurer on investing the trust funds of the state.
Said officer shall also perform such other duties as the Treasurer may direct. In addition
to said officer, the Treasurer may appoint investment officers and other personnel to
assist said chief investment officer, which officers and other personnel shall serve at
the pleasure of the Treasurer. Sec. 3-13b. Investment Advisory Council established. Duties and powers.
State Treasurer's investment policy statement. (a) There is created an Investment
Advisory Council which shall consist of the following: (1) The Secretary of the Office
of Policy and Management who shall serve as an ex-officio member of said council;
(2) the State Treasurer who shall serve as an ex-officio member of said council; (3) five
public members all of whom shall be experienced in matters relating to investments.
The Governor, the president pro tempore of the Senate, the Senate minority leader,
the speaker of the House of Representatives and the minority leader of the House of
Representatives shall each appoint one such public member to serve for a term of four
years. No such public member or such member's business organization or affiliate shall
directly or indirectly contract with or provide any services for the investment of trust
funds of the state of Connecticut during the time of such member's service on said
council and for one year thereafter. The term of each public member in office on June
30, 1983, shall end on July 1, 1983. The appointing authority shall fill all vacancies of
the public members; (4) three representatives of the teachers' unions, and two representatives of the state employees' unions. On or before July 15, 1983, the teachers' unions
shall jointly submit to the State Treasurer a list of three nominees, and the state employees' unions or a majority thereof who represent a majority of state employees shall
jointly submit to the Treasurer a list of two nominees. On or before July 30, 1983, the
Governor shall appoint five members of the council from such lists, for terms of two
years. Any person appointed to fill a vacancy or to be a new member at the expiration
of a given term, whose predecessor in that position was either a representative of one
of the teachers' unions or one of the state employees' unions, shall also be a representative of such respective union group. Any such appointee shall be appointed by the Governor from a list of nominees submitted to the Treasurer by the teachers' unions or state
employees' unions or such majority thereof, as the case may be, within thirty days of
notification by the Treasurer of the existence of a vacancy or a prospective vacancy, or
the expiration or prospective expiration of a term. All members of the council shall serve
until their respective successors are appointed and have qualified. No public member
of the council shall serve more than two consecutive terms which commence on or after
July 1, 1983. Sec. 3-13c. Trust funds defined. Trust funds as used in sections 3-13 to 3-13e,
inclusive, and 3-31b shall be construed to include Connecticut Municipal Employees'
Retirement Fund A, Connecticut Municipal Employees' Retirement Fund B, Soldiers,
Sailors and Marines Fund, State's Attorney Retirement Fund, Teachers' Annuity Fund,
Teachers' Pension Fund, Teachers' Survivorship and Dependency Fund, School Fund,
State Employees Retirement Fund, the Hospital Insurance Fund, Policemen and Firemen
Survivor's Benefit Fund and all other trust funds administered, held or invested by the
Treasurer. Sec. 3-13d. Trust funds: Investment, restrictions, sale of call options. Consideration of political implications of particular investments in relation to U.S. foreign
policy and national interests. Connecticut mortgage pass-through certificates. Certain contracts with life insurance companies. (a) Notwithstanding any other provision
in the general statutes or elsewhere to the contrary, the Treasurer shall invest as much
of the state's trust funds as are not required for current disbursements in accordance
with the provisions of section 45a-203 or the provisions of this part. Notwithstanding
the provisions of this section or any other provision in the general statutes or elsewhere
to the contrary, the Treasurer shall not invest more than sixty per cent of the market
value of each such trust fund in common stock, except in the event of a stock market
fluctuation that causes the common stock percentage to increase and the Treasurer deems
it in the best interest of such trust fund to maintain a higher percentage of equities,
provided the Treasurer shall not allow the market value of each such trust fund in common stock to exceed sixty-five per cent for more than six months after such fluctuation
occurs. Investments in real estate investment trusts (REITS) shall be considered alternative investments and not common stock investments under this section. On and after
January 1, 2001, or on and after the first adoption of an investment policy statement
under section 3-13b, whichever is later, all trust fund investments shall be made in
accordance with the investment policy statement adopted under section 3-13b. In order
to increase the income for each such combined investment fund established pursuant
to section 3-31b, the Treasurer may enter into repurchase agreements or lend securities
from each such fund, provided that at the time of the execution of the repurchase
agreement or the loan at least one hundred per cent of the market value of the security
sold or lent shall be received as consideration in the form of cash or securities guaranteed
by the United States government or any agency of the United States government in the
case of a repurchase agreement or secured by cash or such securities in the case of a
loan. At all times during the term of each such repurchase agreement or the term of each
such loan the consideration received or the collateral shall be equal to not less than
ninety-five per cent of the full market value of the security and said consideration received or said collateral shall not be more than one hundred thousand dollars less than
the full market value of the security. The Treasurer may sell call options which would
give the holders of such options the right to purchase securities held by the Treasurer
at the date the call is sold for investment purposes, under such terms and conditions as
the Treasurer may determine. Among the factors to be considered by the Treasurer with
respect to all securities may be the social, economic and environmental implications of
investments of trust funds in particular securities or types of securities. In the investment
of the state's trust funds the Treasurer shall consider the implications of any particular
investment in relation to the foreign policy and national interests of the United States. Sec. 3-13e. Investment of trust funds in loans to mortgage lenders. (a) The
following terms, when used in this section shall have the following meanings, unless
the context otherwise requires: "Trust fund" means any of the funds listed in section 3-
13c; "mortgage lender" means any bank and trust company, savings bank or savings
and loan association chartered under the laws of the state, national banking association,
federal savings and loan association, insurance company authorized to transact business
in the state or other firm or corporation subject to the banking laws of Connecticut and
approved by the Treasurer; and "pension and retirement fund contributor" means any
person who at the time of receiving a mortgage-secured loan from a mortgage lender
as provided in subsection (b) of this section is, and has been during the three years
immediately preceding such loan, a contributor to any pension or retirement fund included among the trust funds listed in this subsection. Sec. 3-13f. State investment policy in relation to corporations doing business
in South Africa. Section 3-13f is repealed, effective November 12, 1993. Sec. 3-13g. Investments in corporations doing business in Iran. The State Treasurer shall review the major investment policies of the state for purposes of ensuring
that state funds are not invested in any corporation engaged in any form of business in
Iran which could be considered to be contrary to the foreign policy or national interests
of the United States, particularly in respect to the release of all American hostages held
in Iran. Sec. 3-13h. Disinvestment of state funds invested in corporations doing business in Northern Ireland which have not implemented the MacBride principles.
(a) The State Treasurer shall review the major investment policies of the state for the
purpose of determining the extent to which moneys are invested in corporations doing
business in Northern Ireland which have not adopted the MacBride principles. In whatever manner may be deemed appropriate by the State Treasurer, corporations in which
the state has invested assets and which have operations in Northern Ireland shall be
urged to adopt and implement the MacBride principles with respect to such operations
and where necessary and appropriate to initiate or support shareholder initiatives requiring such corporate action. Sec. 3-13i. Contracts for services related to investment of trust funds. On and
after January 1, 2001, or on and after the first adoption of an investment policy statement
under section 3-13b, whichever is later, any contract for services related to the investment of trust funds, as defined in section 3-13c, shall be subject to the investment policy
statement adopted under section 3-13b. No contract for services related to the investment
of such funds shall be awarded to a provider of such services until the Treasurer's recommendation of a provider is reviewed by the Investment Advisory Council. The Treasurer
shall provide notice of such recommendation at a meeting of the council. Not later
than forty-five days after such meeting, the council may file a written review of the
Treasurer's recommendation concerning the selection of such provider with the Office
of the Treasurer where it shall be available for public inspection. The Treasurer may
proceed to award the contract after such forty-five-day period. Sec. 3-13j. Third party fees in investments by Treasurer or quasi-public agencies. (a) Prior to the Treasurer entering into a contract for investment services, as defined
in section 9-333n, any person or entity who would be a party to that contract shall
disclose to the Treasurer, in writing, all third party fees attributable to such contract.
Such disclosure shall be made by firms providing such services and shall be in a sworn
affidavit in a manner and form prescribed in regulations which shall be adopted by the
Treasurer, in accordance with the provisions of chapter 54, not later than three months
after May 3, 2000. Information disclosed under this subsection shall be made available
for public inspection in accordance with the Freedom of Information Act, as defined in
section 1-200.
(1949 Rev., S. 105, 3586, subs. (4); 1951, S. 1960d, subs. (4); February, 1965, P.A. 331, S. 41; 1972, P.A. 281, S. 35;
P.A. 77-576, S. 53, 65; P.A. 82-365, S. 4, 8; P.A. 86-375, S. 3, 9; P.A. 98-227, S. 3, 9.)
*Note: On and after January 8, 2003, this section, as amended by section 2 of public
act 00-231, is to read as follows:
"Sec. 3-11. Salary and bond of Treasurer. Office of Treasurer full time. The
Treasurer shall receive an annual salary of one hundred ten thousand dollars. Before
entering upon the execution of the duties of the office, the Treasurer shall give a bond
to the state, with sufficient surety, in the sum of two hundred thousand dollars, for the
term for which the Treasurer has been elected, which bond shall be conditioned for the
faithful performance of such duties other than in connection with the School Fund. The
Treasurer shall devote full time to the duties of the office."
(1949 Rev., S. 105, 3586, subs. (4); 1951, S. 1960d, subs. (4); February, 1965, P.A. 331, S. 41; 1972, P.A. 281, S. 35;
P.A. 77-576, S. 53, 65; P.A. 82-365, S. 4, 8; P.A. 86-375, S. 3, 9; P.A. 98-227, S. 3, 9; P.A. 00-231, S. 2, 10.)
History: 1965 act increased salary from eight to fifteen thousand dollars effective with respect to treasurer elected
November 8, 1966; 1972 act increasing salary from fifteen to twenty thousand dollars effective January 8, 1975; P.A. 77-
576 increased treasurer's salary to twenty-five thousand dollars, effective January 1, 1979; P.A. 82-365 increased treasurer's
annual salary from $25,000 to $35,000 and added provision requiring treasurer to devote full time to duties of office; P.A.
86-375 increased treasurer's annual salary from $35,000 to $50,000; P.A. 98-227 increased Treasurer's annual salary from
$50,000 to $70,000, effective January 6, 1999; P.A. 00-231 increased Treasurer's salary from $70,000 to $110,000 and
made technical changes for the purposes of gender neutrality, effective January 8, 2003.
See Sec. 3-40 re Treasurer's duties with respect to School Fund and Agricultural College Fund.
See Sec. 4-14 re transportation allowance.
Bond applies with respect to unemployment compensation fund. 133 C. 118.
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(P.A. 88-282.)
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(1949 Rev., S. 106; June, 1955, S. 34d.)
See Sec. 9-213 re procedure for filling vacancy in Treasurer's office.
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(1953, June, 1955, S. 36d; P.A. 73-594, S. 10, 12; P.A. 74-324, S. 1, 2; P.A. 87-518, S. 3, 5.)
History: P.A. 73-594 replaced reference to repealed chapter 63 with reference to chapter 67 and removed language
referring to deputy treasurer's duties as investment officer, adding general language concerning duties; P.A. 74-324 created
deputy treasurer for debt management, thereby distinguishing between this section and Sec. 3-12; P.A. 87-518 authorized
treasurer to appoint an assistant treasurer, instead of a deputy treasurer, for debt management, repealed provision that such
appointment be subject to provisions of chapter 67 and authorized appointment of an additional assistant treasurer.
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(b) The Treasurer may retain professional investment counsel to evaluate and recommend to to the Treasurer changes in the portfolio of the state's trust and other funds.
Said counsel shall inform the Treasurer of suitable investment opportunities and shall
investigate the investment merit of any security or group of securities.
(c) The cost of operating the investment department including the cost of personnel
and professional investment counsel retained under sections 3-13 to 3-13d, inclusive,
and 3-31b shall be paid by the Treasurer charging the income derived from the trust
funds.
(P.A. 73-594, S. 5, 6, 8, 12; P.A. 87-518, S. 4, 5; P.A. 00-43, S. 13, 19.)
History: P.A. 87-518 substituted "assistant" treasurer for "deputy" treasurer in Subsec. (a); P.A. 00-43 amended Subsec.
(a) to change the title of assistant treasurer for investments to chief investment officer and to provide for the compensation
of said officer and amended Subsec. (b) to make a technical change for purposes of gender neutrality, effective May 3, 2000.
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(b) The Governor shall designate one of the members to be chairperson of the council to serve as such at the Governor's pleasure. The Treasurer shall serve as secretary
of said council. A majority of the members of the council then in office will constitute
a quorum for the transaction of any business, and action shall be by the vote of a majority
of the members present at a meeting. Votes by members on investment policies shall
be recorded in the minutes of each meeting. Members of said council shall not be compensated for their services but shall be reimbursed for all necessary expenses incurred
in the performance of their duties as members of said council. The council shall meet
at least once during each calendar quarter and at such other times as the chairperson
deems necessary or upon the request of a majority of the members in office. Special
meetings shall be held at the request of such majority after notice in accordance with
the provisions of section 1-225. Any member who fails to attend three consecutive
meetings or who fails to attend fifty per cent of all meetings held during any calendar
year shall be deemed to have resigned from office.
(c) (1) The Treasurer shall recommend to the Investment Advisory Council an investment policy statement which shall set forth the standards governing investment of
trust funds by the Treasurer. Such statement shall include, with respect to each trust
fund, without limitation, (A) investment objectives; (B) asset allocation policy and risk
tolerance; (C) asset class definitions, including specific types of permissible investments
within each asset class and any specific limitations or other considerations governing
the investment of any funds; (D) investment manager guidelines; (E) investment performance evaluation guidelines; (F) guidelines for the selection and termination of providers of investment-related services who shall include, but not be limited to, investment
advisors, external money managers, investment consultants, custodians, broker-dealers,
legal counsel, and similar investment industry professionals; and (G) proxy voting
guidelines. A draft of the statement shall be submitted to the Investment Advisory Council at a meeting of said council and shall be made available to the public. Notice of such
availability shall be published in at least one newspaper having a general circulation in
each municipality in the state which publication shall be not less than two weeks prior
to such meeting. Said council shall review the draft statement and shall publish any
recommendations it may have for changes to such statement in the manner provided for
publication of the statement by the Treasurer. The Treasurer shall thereafter adopt the
statement, including any such changes the Treasurer deems appropriate, with the approval of a majority of the members appointed to said council. If a majority of the
members appointed to said council fail to approve such statement, said majority shall
provide the reasons for its failure to approve to the Treasurer who may submit an
amended proposed statement at a subsequent regular or special meeting of said council.
Such revised proposed statement shall be made available to the public in accordance
with the provisions of the Freedom of Information Act, as defined in section 1-200. Any
revisions or additions to the investment policy statement shall be made in accordance
with the procedures set forth in this subdivision for the adoption of the statement. The
Treasurer shall annually review the investment policy statement and shall consult with
the Investment Advisory Council regarding possible revisions to such statement.
(2) All trust fund investments by the State Treasurer shall be reviewed by said
Investment Advisory Council. The Treasurer shall provide to the council all information
regarding such investments which the Treasurer deems relevant to the council's review
and such other information as may be requested by the council. The Treasurer shall
provide a report at each regularly scheduled meeting of the Investment Advisory Council
as to the status of the trust funds and any significant changes which may have occurred
or which may be pending with regard to the funds. The council shall promptly notify
the Auditors of Public Accounts and the Comptroller of any unauthorized, illegal, irregular or unsafe handling or expenditure of trust funds or breakdowns in the safekeeping
of trust funds or contemplated action to do the same within their knowledge. The Governor may direct the Treasurer to change any investments made by the Treasurer when in
the judgment of said council such action is for the best interest of the state. Said council
shall, at the close of the fiscal year, make a complete examination of the security investments of the state and determine as of June thirtieth, the value of such investments in
the custody of the Treasurer and report thereon to the Governor, the General Assembly
and beneficiaries of trust funds administered, held or invested by the Treasurer. With the
approval of the Treasurer and the council, said report may be included in the Treasurer's
annual report.
(d) The Investment Advisory Council shall be within the office of the State Treasurer for administrative purposes only.
(e) For the purposes of this section, "teachers' union" means a representative organization for certified professional employees, as defined in section 10-153b, and "state
employees' union" means an organization certified to represent state employees, pursuant to section 5-275.
(P.A. 73-594, S. 1−3, 12; P.A. 77-614, S. 19, 55, 610; P.A. 78-208, S. 26, 35; P.A. 80-318, S. 1, 2; P.A. 82-381, S. 1,
2; P.A. 83-533, S. 1, 54; 83-574, S. 2, 20; P.A. 00-43, S. 1, 19.)
History: P.A. 77-614 substituted secretary of the office of policy and management for commissioner of finance and
control and placed the investment advisory council within the office of policy and management for administrative purposes
only; P.A. 78-208 substituted reference to Sec. 10-183b for reference to Sec. 10-160; P.A. 80-318 deleted references to
successors in Subsec. (a) and placed investment advisory council within the office of the state treasurer rather than the office
of policy and management; P.A. 82-381 increased membership from nine to eleven members by adding representatives of
teachers' unions and state employees' unions, limited participation of those members to matters affecting the teachers'
retirement fund and state employees' retirement fund, respectively, and defined teachers' union and state employees'
union; P.A. 83-533 amended section to provide for three members representing teachers' unions and two members representing state employees' unions, deleting provisions re representatives for teachers' retirement board and state employees'
retirement commission, and to allow full participation in all council decisions; P.A. 83-574 amended Subsec. (a) to provide
for legislative appointments, and, concurring with P.A. 83-533, to eliminate representatives of teachers' retirement board
and state employees' retirement commission and add three representatives of the teachers' union and two representatives
of the state employees' unions, amended Subsec. (b) to establish procedural and attendance requirements, amended Subsec.
(c) to eliminate provision limiting participation of teacher and state employee representatives and to require reports to the
general assembly and trust fund beneficiaries and amended Subsec. (e) to reword definition of "state employees' union";
P.A. 00-43 made a technical change in Subsec. (b) and amended Subsec. (c) to provide for an investment policy statement
by the Treasurer and to modify the responsibilities of the Investment Advisory Council, effective May 3, 2000.
See title 2c re termination under "Sunset Law".
See Sec. 4-9a for definition of "public member".
See Sec. 4-38f for definition of "administrative purposes only".
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(P.A. 73-594, S. 4, 12; P.A. 78-236, S. 17, 20; P.A. 87-458, S. 15, 18; P.A. 99-70, S. 1, 3.)
History: P.A. 78-236 substituted "3-13e" for "3-13d"; P.A. 87-458 included hospital insurance fund as trust fund; P.A.
99-70 added Policemen and Firemen Survivor's Benefit Fund, effective May 27, 1999.
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(b) Notwithstanding any other provision in the general statutes or elsewhere to the
contrary, the Treasurer may invest as much of the state's trust funds as are not required
for current disbursements in Connecticut mortgage pass-through certificates. As used
in this section, "Connecticut mortgage pass-through certificate" means (1) a certificate
evidencing ownership of an undivided interest in a pool of mortgage loans, each of
which is secured by a first mortgage on real property located in this state improved
by one-to-four-family residential dwellings or units, where such mortgage loans are
assigned to a trust company or bank having the powers of a trust company within or
without the state, as trustee for the benefit of the holders of such certificates, or (2) any
Federal Home Loan Mortgage Corporation pass-through certificate or Federal National
Mortgage Association securities backed by mortgage loans, each of which is secured
by a first mortgage on real property located in this state improved by one-to-four-family
residential dwellings or units; provided such mortgage loans are originated by any bank,
trust company, national banking association, savings bank, federal mutual savings bank,
savings and loan association, federal savings and loan association, credit union, or federal credit union authorized to do business in this state or by any lender authorized to
do business in this state and approved by the federal Secretary of Housing and Urban
Development for participation in any mortgage insurance program under the National
Housing Act. In exercising his discretion to invest the state's trust funds in Connecticut
mortgage pass-through certificates and in considering the yield on such investments,
the Treasurer shall give preference to pools of mortgage loans which contain loans to
persons who at the time of mortgage application are contributors to state pension and
retirement funds included among the trust funds defined in section 3-13c or who have
been past contributors to such funds and who continue to maintain a financial interest
therein, and may consider furtherance of the public policy of increasing the amount of
reasonably priced mortgage loans available to state residents. Nothing in this section
shall prevent the Treasurer from investing state trust funds in mortgage pass-through
certificates other than Connecticut mortgage pass-through certificates.
(c) Except in the event of an express repeal of this subsection, no pool of mortgage
loans, the ownership of which is evidenced by Connecticut mortgage pass-through certificates, shall be subject to any tax imposed by the state if all of the outstanding Connecticut mortgage pass-through certificates respecting such pool were at any time owned by
or on behalf of any one or more of the state's trust funds.
(d) Notwithstanding any other provision in the general statutes or elsewhere to the
contrary, the Treasurer may enter into contracts with any life insurance company authorized to do business in Connecticut under which any amounts held in the state's trust
funds may be used to purchase pension funding contracts and contracts providing for
participation in separate accounts or under which funds become a part of the general
account of any such life insurance company.
(e) Notwithstanding any provision of the general statutes, neither the Treasurer, the
Deputy Treasurer nor any acting Treasurer shall make a private equity or real estate
investment without the approval of the Investment Advisory Council, for the balance
of the Treasurer's term of office, on or after any of the following events: (1) The defeat
of the Treasurer (A) in a ballot for the party nomination for Treasurer at a convention
where said Treasurer was a candidate for nomination, (B) in a primary for nomination
for said office where said Treasurer was a candidate for nomination, or (C) upon the
completion of a recanvass of the returns from such primary under section 9-445 or 9-
446, whichever is later, (2) the defeat of the Treasurer (A) in the election for said office
or (B) upon the completion of a recanvass of the returns from such election under section
9-311, 9-311a or 9-311b, or (3) the resignation of the Treasurer.
(P.A. 73-594, S. 7, 12; P.A. 74-49, S. 1, 2; P.A. 80-431, S. 2, 4; P.A. 81-343, S. 2, 7; P.A. 86-29, S. 1, 3; P.A. 92-69,
S. 4, 5; P.A. 95-120, S. 1, 2; June 18 Sp. Sess. P.A. 97-4, S. 8, 11; June 18 Sp. Sess. P.A. 97-11, S. 63, 65; P.A. 98-86;
P.A. 00-43, S. 2, 4, 19.)
History: P.A. 74-49 provided that market value of loans from investment funds could be guaranteed by U.S. government
or its agencies; P.A. 80-431 required treasurer to consider foreign policy and national interest in making investments of
state trust funds; P.A. 81-343 added Subsecs. (b) to (d) re mortgage pass-through certificates and contracts with life
insurance companies to purchase pension funding contracts; P.A. 86-29 amended Subsec. (a) to provide specifically that
the treasurer may enter into repurchase agreements for purposes of investing the trust funds of the state; P.A. 92-69 amended
Subsec. (b) to include certain Federal Home Loan Mortgage Corporation pass-through certificates and Federal National
Mortgage Association securities backed by mortgage loans in the definition of "Connecticut mortgage pass-through certificate"; P.A. 95-120 amended Subsec. (a) to permit Treasurer to invest no more than fifty-five, instead of fifty per cent of
a trust fund in common stock, except under specified conditions, for a six-month period of time, effective July 1, 1995;
(Revisor's note: Section 8 of June 18 Sp. Sess. P.A. 97-4 is void and was therefore not codified because it attempts to
amend section 1 of vetoed public act 97-260 by restoring language which was deleted in the vetoed act and leaving in place
new language added in the vetoed act, effective June 30, 1997. June 18 Sp. Sess. 97-11 changed the effective date of June
18 Sp. Sess. P.A. 97-4 but without affecting section 8 of the act); P.A. 98-86 amended Subsec. (a) to replace book value
with market value and add REITS as alternative investments; P.A. 00-43 amended Subsec. (a) to increase the limit on
investment in common stock and to provide that all investments be made in accordance with the investment policy statement
adopted under Sec. 3-13b, effective January 1, 2001, and added Subsec. (e) re restrictions on investment of trust funds in
private equity or real estate during "lame duck" phase of Treasurer's term, effective May 3, 2000.
See Sec. 3-13g re investment policies re corporations doing business in Iran.
See Sec. 3-13h re disinvestment of state funds in certain corporations doing business in Northern Ireland.
See Sec. 3-13i re contracts for services related to investment of trust funds.
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(b) Notwithstanding any provision of the general statutes to the contrary, the Treasurer may invest as much of the funds of any trust fund as are not required for current
disbursements, in loans to mortgage lenders, subject to the following conditions: (1)
Any such investment shall be secured as to payment of both principal and interest by a
pledge of and lien upon collateral security of such nature, in such amounts and under
such terms as the Treasurer shall determine; (2) any such mortgage lender shall within
a reasonable period of time, as determined by the Treasurer, following receipt by such
mortgage lender of the loan proceeds, enter into written commitments to make and shall
thereafter proceed as promptly as practicable to make and disburse loans from such
loan proceeds, in an aggregate principal amount not less than the amount of such loan
proceeds, and each such loan shall be secured by a mortgage of residential real property
containing not more than four dwelling units and situated within the state, provided no
more than twenty million dollars in such loans to mortgage lenders shall be outstanding
at any one time and no more than ten million dollars in such loans shall be made in any
one fiscal year, and further provided, the aggregate of such loans outstanding to any
single mortgage lender shall not exceed the greater of one million dollars or one per
cent of the deposits of such mortgage lender. Pension and retirement fund contributors
shall be afforded a preference with respect to receipt of loans made under the provisions
of this section, subject to such procedures as the Treasurer may prescribe.
(P.A. 75-347, S. 1, 2; P.A. 78-121, S. 1, 113; 78-236, S. 18, 20.)
History: P.A. 78-121 deleted words "building or" in phrase "building or savings and loan association", effective January
1, 1979; P.A. 78-236 redefined "trust fund".
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(P.A. 80-431, S. 1, 4; P.A. 82-324, S. 1, 2; P.A. 87-170, S. 1, 2; Oct. Sp. Sess. P.A. 93-2, S. 1, 2.)
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(P.A. 80-431, S. 3, 4.)
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(b) In carrying out his fiduciary responsibility, the State Treasurer shall, within a
period of time not exceeding three years immediately following May 18, 1987, disinvest
all state funds currently invested in any corporations doing business in Northern Ireland
and invest no new state funds in any such corporation unless such corporation has implemented the MacBride principles. In accordance with sound investment criteria consistent with prudent standards of fiduciary responsibility, the State Treasurer shall, with
respect to state funds available for future investment in corporations doing business in
Northern Ireland, including such funds available as a result of such disinvestment as
prescribed in this subsection, invest such funds in corporations conducting their operations in Northern Ireland in accordance with the MacBride principles, which are as
follows: (1) Increasing the representation of individuals from underrepresented religious
groups in the workforce, including managerial, supervisory, administrative, clerical and
technical jobs; (2) providing adequate security for the protection of minority employees
at the workplace and while traveling to and from work; (3) banning provocative religious
or political emblems from the workplace; (4) publicly advertising all job openings and
making special recruitment efforts to attract applicants from underrepresented religious
groups; (5) layoff, recall and termination procedures which do not in practice favor
particular religious groupings; (6) abolishing job reservations, apprenticeship restrictions and differential employment criteria, which discriminate on the basis of religion
or ethnic origin; (7) developing training programs that will prepare substantial numbers
of current minority employees for skilled jobs, including the expansion of existing programs and the creation of new programs to train, upgrade and improve the skills of
minority employees; (8) establishing procedures to assess, identify and actively recruit
minority employees with potential for further advancement; and (9) appointing a senior
management staff member to oversee the company's affirmative action efforts and the
setting up of timetables to carry out affirmative action principles.
(P.A. 87-199, S. 1, 2; P.A. 95-345, S. 1, 2; P.A. 96-180, S. 136, 166.)
History: P.A. 95-345 amended Subsec. (b) by deleting the words "adopted and" from the phrase "such corporation has
adopted and implemented the MacBride principles", effective July 1, 1995; P.A. 96-180 amended Subsec. (b) to make
technical grammatical corrections, effective June 3, 1996.
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(P.A. 00-43, S. 3, 19.)
History: P.A. 00-43 effective May 3, 2000.
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(b) Prior to any quasi-public agency, as defined in section 1-120, entering into a
contract for investment services, as defined in section 9-333n, any person or entity who
would be a party to that contract shall disclose to the quasi-public agency entering into
the contract, in writing, all third party fees attributable to such contract. Such disclosure
shall be made by firms providing such services and shall be in a sworn affidavit in a
manner and form as prescribed in procedures which shall be adopted by each such
agency, in accordance with the provisions of chapter 12, not later than three months
after May 3, 2000. Information disclosed under this subsection shall be made available
for public inspection in accordance with the Freedom of Information Act, as defined in
section 1-200.
(c) For purposes of this section and section 3-13k, "third party fees" includes, but
is not limited to, management fees, placement agent fees, solicitation fees, referral fees,
promotion fees, introduction or matchmaker fees, and due diligence fees.
(d) Any person who violates any provision of this section shall be liable for a civil
penalty not to exceed two thousand dollars for each violation.
(1) The Attorney General, upon complaint of the Treasurer, may bring an action in
the superior court for the judicial district of Hartford to recover such penalty for a violation of this section which affects a fund of the state. Any penalty imposed under this
section for a violation which affects any such fund shall be paid to the Treasurer who
shall deposit such moneys in such fund.
(2) Any quasi-public agency, as defined in section 1-120, may bring an action in
the superior court to recover such penalty for a violation of this section which affects
any fund under the control of such agency. Any penalty imposed under this section for
a violation which affects any such fund shall be paid to such agency which shall deposit
such moneys in such fund.
(P.A. 00-43, S. 5, 19.)
History: P.A. 00-43 effective May 3, 2000.
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