Sec. 4-24. Transferred to Chapter 59, Part II, Sec. 4b-11. Secs. 4-24a and 4-24b. Capitol Center Commission. Director and staff; contracts; federal aid. Sections 4-24a and 4-24b are repealed. Secs. 4-24c to 4-24k. Transferred to Chapter 60, Part I, Secs. 4b-66 to 4b-74, inclusive. Secs. 4-24l and 4-24m. Transferred to Chapter 60, Part I, Secs. 4b-60 and 4b-61,
respectively. Sec. 4-25. Transferred to Chapter 58, Sec. 4a-66. Sec. 4-26. Transferred to Chapter 59, Part III, Sec. 4b-21. Sec. 4-26a. Transferred to Chapter 59, Part I, Sec. 4b-3. Secs. 4-26b and 4-26c. Transferred to Chapter 59, Part III, Secs. 4b-23 and 4b-
24, respectively. Sec. 4-26d. Transferred to Chapter 59, Part III, Sec. 4b-26. Sec. 4-26e. Transferred to Chapter 59, Part I, Sec. 4b-2. Secs. 4-26f and 4-26g. Transferred to Chapter 59, Part I, Secs. 4b-4 and 4b-5,
respectively. Sec. 4-26h. Transferred to Chapter 59, Part III, Sec. 4b-32. Sec. 4-26i. Transferred to Chapter 59, Part III, Sec. 4b-27. Sec. 4-27. Transferred to Chapter 59, Part III, Sec. 4b-22. Sec. 4-27a. Transferred to Chapter 59, Part II, Sec. 4b-13. Sec. 4-27b. Transferred to Chapter 59, Part III, Sec. 4b-31. Sec. 4-28. Federal funds; Governor's responsibilities. Copy of applications
and notice of awards to be submitted to committee having cognizance of appropriations and budgets of state agencies. Waste treatment management planning areas.
(a) The Governor is designated, as administrative agent of the state, to apply for any funds
or other aid for new construction, reconstruction and equipment for state institutions, for
The University of Connecticut and for any other purpose which the Congress of the
United States has authorized or may authorize the federal government to grant to the
several states. The Governor, or any other officer of the state designated in any Act
passed by the Congress of the United States, is authorized, in the name of the state, to
make all applications and sign all documents necessary to obtain such aid from the
United States or any agency thereof. The Treasurer is directed to receive all funds granted
by the United States, or by any agency thereof, and to hold the same separate from all
other funds of the state. Such funds shall be disbursed by said Treasurer, upon voucher
of the Comptroller, under the direction of, and subject to regulations of, the Governor. Sec. 4-28a. Advisory commission. The Governor may designate and establish
such advisory commission or commissions as may be required as a condition of eligibility for benefits under any federal law, to consult with the agency designated pursuant
to the provisions of subsection (b) of section 4-28 in carrying out its purposes. The
Governor shall designate the chairman of any such commission and each member of
the commission shall serve at the pleasure of the Governor. Members shall receive
no compensation but shall receive necessary expenses while engaged in commission
matters. Sec. 4-28b. Federal block grant funds; approval or modification of Governor's recommended allocations. Transfer of allocations. Reduction of federal reimbursements. Notwithstanding any provision of the general statutes: (1) If, during any
fiscal year, the state receives federal block grant funds, the Governor shall submit his
recommended allocations of such funds to the speaker of the House of Representatives
and the president pro tempore of the Senate. Within five days of receipt of the recommendations, the speaker and the president pro tempore shall submit the recommended allocations to the joint standing committee of the General Assembly having cognizance of
matters relating to appropriations and the budgets of state agencies and to the joint
standing committee or committees of the General Assembly having cognizance of the
subject matter relating to such recommended allocations, as determined by the speaker
and the president pro tempore. Within thirty days of their receipt of the Governor's
recommended allocations, the committee having cognizance of matters relating to appropriations and the budgets of state agencies, in concurrence with the committee or
committees of cognizance, shall advise the Governor of their approval or modifications,
if any, of his recommended allocations. If the joint standing committees do not concur,
the committee chairmen shall appoint a committee on conference which shall be comprised of three members from each joint standing committee. At least one member
appointed from each committee shall be a member of the minority party. The report of
the committee on conference shall be made to each committee, which shall vote to accept
or reject the report. The report of the committee on conference may not be amended.
If a joint standing committee rejects the report of the committee on conference, the
Governor's recommended allocations shall be deemed approved. If the joint standing
committees accept the report, the committee having cognizance of matters relating to
appropriations and the budgets of state agencies shall advise the Governor of their approval or modifications, if any, of his recommended allocations, provided if the committees do not act within thirty days, the recommended allocations shall be deemed approved. Disbursement of such funds shall be in accordance with the Governor's
recommended allocations as approved or modified by the committees. After such recommended allocations have been so approved or modified, any proposed transfer to or
from any specific allocation of a sum or sums of over fifty thousand dollars or ten per
cent of any such specific allocation, whichever is less, shall be submitted by the Governor
to the speaker and the president pro tempore and approved, modified or rejected by the
committees in accordance with the procedures set forth in this subdivision. Notification
of all transfers made shall be sent to the joint standing committee of the General Assembly having cognizance of matters relating to appropriations and the budgets of state
agencies and to the committee or committees of cognizance, through the Office of Fiscal
Analysis; (2) if, during any fiscal year, federal funding for programs financed by state
appropriations with federal reimbursements is reduced below the amounts estimated
under the provisions of section 2-35, the Governor shall submit his recommendations
to the joint standing committee having cognizance of matters relating to appropriations
and the budgets of state agencies and to the committee of cognizance, for legislation
necessary to modify funding for such programs consistent with such reductions in federal
funding. Sec. 4-28c. Federal oil pricing and allocation settlement funds. Approval or
modification of Governor's recommended allocations. Notwithstanding the provisions of sections 4-28, 4-30a, 16a-4a and 16a-14, on July 1, 1987, and every six months
thereafter, the Governor shall submit to the joint standing committee of the General
Assembly having cognizance of matters relating to energy planning and activities his
recommended allocations of any funds resulting from any settlement resolving oil pricing and allocation regulatory violations under the Emergency Petroleum Allocation Act,
as amended, except that if such funds (1) amount to less than one hundred thousand
dollars in any six-month period, or (2) are received within sixty days prior to the end
of any such six-month period, the recommended allocation of such funds may be submitted at the end of the next six-month period. Not later than sixty calendar days after
receipt of the Governor's recommended allocations, such committee, in concurrence
with the joint standing committee of the General Assembly having cognizance of matters
relating to appropriations and the budgets of state agencies, shall advise the Governor
of their approval or modifications, if any, of the recommended allocations. If the joint
standing committees do not concur, the committee chairmen shall appoint a committee
on conference which shall be comprised of three members from each such joint standing
committee. At least one member appointed from each such joint standing committee
shall be a member of the minority party. The report of the committee on conference
shall be made to each such joint standing committee, which shall vote to accept or reject
the report. The report of the committee on conference may not be amended. If a joint
standing committee rejects the report of the committee on conference, the Governor's
recommended allocations shall be deemed approved. If the joint standing committees
accept the report, the committee having cognizance of matters relating to appropriations
and the budgets of state agencies shall advise the Governor of the joint standing committees' approval or modifications, if any, of the Governor's recommended allocations,
provided if the joint standing committees do not act within sixty calendar days, the
recommendations shall be deemed approved. Disbursement of such funds shall be in
accordance with the Governor's recommendations as approved or modified by the committees. After such recommended allocations have been so approved or modified, any
proposed transfer to or from any specific allocation of a sum or sums of more than
twenty-five thousand dollars or five per cent of any such specific allocation, whichever
is less, shall be submitted by the Governor to the joint standing committee of the General
Assembly having cognizance of matters relating to energy planning and activities and
approved, modified or rejected by the committees in accordance with the procedures
set forth in this section. The Governor shall submit a notice of any other transfer to or
from any specific allocation to the joint standing committee of the General Assembly
having cognizance of matters relating to appropriations and the budgets of state agencies,
through the Office of Fiscal Analysis, and to the joint standing committee of the General
Assembly having cognizance of matters relating to energy planning and activities. Sec. 4-28d. Reserved for future use. Sec. 4-28e. Tobacco Settlement Fund. Disbursements and grants. (a) There is
created a Tobacco Settlement Fund which shall be a separate nonlapsing fund. Any
funds received by the state from the Master Settlement Agreement executed November
23, 1998, shall be deposited into the fund. Sec. 4-28f. Tobacco and Health Trust Fund. Transfers from Tobacco Settlement Fund. Board of trustees. Disbursements. (a) There is created a Tobacco and
Health Trust Fund which shall be a separate nonlapsing fund. The purpose of the trust
fund shall be to create a continuing significant source of funds to (1) support and encourage development of programs to reduce tobacco abuse through prevention, education
and cessation programs, (2) support and encourage development of programs to reduce
substance abuse, and (3) develop and implement programs to meet the unmet physical
and mental health needs in the state. Sec. 4-28g. Receipt of funds for tobacco education, reduction or prevention of
use. Department of Public Health approval. Any governmental entity or Section
501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended or Section 501(c)(4)
of said Internal Revenue Code organization, including, but not limited to, local health
districts and regional action councils, which receives state dollars for tobacco education
or reduction or prevention of tobacco use, shall submit a plan to the Department of
Public Health identifying the target population, the methods for choosing the target
population, and the evaluation component for the effectiveness of the program. Such
plan shall be approved by the Department of Health prior to the release of funds. Sec. 4-28h. Regulation of certain cigarette manufacturers under tobacco settlement agreement: Definitions. As used in sections 4-28h to 4-28j, inclusive: Sec. 4-28i. Regulation of certain cigarette manufacturers under tobacco settlement agreement: Escrow funds. (a) Any tobacco product manufacturer selling cigarettes to consumers within this state, whether directly or through a distributor, dealer or
similar intermediary or intermediaries, after July 1, 2000, shall (1) become a participating manufacturer, as the term is defined in section II (jj) of the Master Settlement
Agreement, and generally perform its financial obligations under the Master Settlement
Agreement; or (2) place into a qualified escrow fund not later than April fifteenth of
each year in question the following amounts, as adjusted for inflation: For calendar year
2000, $.0104712 per unit sold after July 1, 2000; for each of calendar years 2001 and
2002, $.0136125 per unit sold; for each of calendar years 2003 through 2006, $.0167539
per unit sold; for calendar year 2007 and for each calendar year thereafter, $.0188482
per unit sold. Sec. 4-28j. Cigarette manufacturers: Compliance with escrow requirements.
Penalties. (a) Each tobacco product manufacturer that elects to place funds into escrow
pursuant to section 4-28i shall annually certify to the Attorney General that it is in
compliance with said section 4-28i. Sec. 4-29. Use of appropriations in conjunction with federal funds. Any state
appropriation or the proceeds of any bond issue authorized by the General Assembly
for the purpose of erecting a building or buildings for the use of any state institution,
any institution under the jurisdiction of the Board of Trustees of the Connecticut State
University System enumerated in section 10a-87, any state vocational school or The
University of Connecticut, for the development of aviation and for other purposes, may
be used in whole or in part as the state's share of the cost of the work involved in
conjunction with any funds made available by any branch of the federal government if
the Governor so determines and directs. Sec. 4-29a. Revenue sharing funds. Funds due to the state under the federal revenue sharing program in each fiscal year ending June 30, beginning with fiscal year 1978-
79, and the balance in the Revenue Sharing Trust Fund of the state as of June thirtieth
of each fiscal year shall be treated as General Fund revenues and shall be available for
General Fund purposes. Sec. 4-29b. Use of indirect cost recoveries. Any state agency which receives indirect cost recoveries from federal grant funds or other sources, when such recoveries
apply to costs originally paid from the General Fund, shall deposit such cost recoveries
with the Treasurer, to the credit of General Fund revenues, unless such deposit is waived
by the Secretary of the Office of Policy and Management. For purposes of this section
"state agency" shall not include any constituent unit of the state system of higher education or any state institution of higher education. Sec. 4-30. Borrowing money for the Transportation Department. Section 4-
30 is repealed. Sec. 4-30a. Transfer of surplus to Budget Reserve Fund and State Employees
Retirement Fund. Reduction of outstanding state indebtedness. (a) After the accounts for the General Fund have been closed for each fiscal year and the Comptroller
has determined the amount of unappropriated surplus in said fund, after any amounts
required by provision of law to be transferred for other purposes have been deducted,
the amount of such surplus shall be transferred by the State Treasurer to a special fund
to be known as the Budget Reserve Fund. When the amount in said fund equals five per
cent of the net General Fund appropriations for the fiscal year in progress, no further
transfers shall be made by the Treasurer to said fund and the amount of such surplus in
excess of that transferred to said fund shall be deemed to be appropriated to the State
Employees Retirement Fund, in addition to the contributions required pursuant to section
5-156a, but not exceeding five per cent of the unfunded past service liability of the
system as set forth in the most recent actuarial valuation certified by the Retirement
Commission. Such surplus in excess of the amounts transferred to the Budget Reserve
Fund and the state employees retirement system shall be deemed to be appropriated for:
(1) Redeeming prior to maturity any outstanding indebtedness of the state selected by
the Treasurer in the best interests of the state; (2) purchasing outstanding indebtedness
of the state in the open market at such prices and on such terms and conditions as the
Treasurer shall determine to be in the best interests of the state for the purpose of extinguishing or defeasing such debt; (3) providing for the defeasance of any outstanding
indebtedness of the state selected by the Treasurer in the best interests of the state by
irrevocably placing with an escrow agent in trust an amount to be used solely for, and
sufficient to satisfy, scheduled payments of both interest and principal on such indebtedness; or (4) any combination of these methods. Pending the use or application of such
amount for the payment of interest and principal, such amount may be invested in (A)
direct obligations of the United States government, including state and local government
treasury securities that the United States Treasury issues specifically to provide state
and local governments with required cash flows at yields that do not exceed Internal
Revenue Service arbitrage limits, (B) obligations guaranteed by the United States government, and (C) securities backed by United States government obligations as collateral
and for which interest and principal payments on the collateral generally flow immediately through to the security holder. Sec. 4-31. Disposition of insurance funds. The Governor may authorize the use
of any moneys received by the state in payment of insurance claims upon property of
the state for the purpose of rebuilding, repairing or replacing such property. Sec. 4-31a. Gifts, contributions, trust income placed in General Fund. (a) Any
gift, contribution, income from trust funds, or other aid from any private source or from
the federal government, except federal aid for highway and bridge purposes or federal
funds in the possession of the Board of Control of the Connecticut Agricultural Experiment Station, the Board of Trustees of the University of Connecticut, the Board of
Trustees of the Connecticut State University System, the Board of Trustees of the Community-Technical Colleges, or the Employment Security Division of the Labor Department, or any other gift, grant or trust fund in the possession of any of said boards,
shall be entered upon the records of the General Fund in the manner prescribed by the
Secretary of the Office of Policy and Management. When so recorded, such amounts
shall be deemed to be appropriated to the purposes of such gift, contribution or other
aid and shall be allotted in accordance with law. No gift, contribution, income from
trust funds, or other aid from any private source or from the federal government that is
subject to this subsection shall require allotment, except upon a notice by the Secretary
of the Office of Policy and Management that the state agency receiving such funding
has failed to consistently provide the notifications required in subsection (e) of section
4-66a. Sec. 4-31b. Annual statement re internal service fund operations. The custodian or administrator of each internal service fund of the state shall submit to the joint
standing committee of the General Assembly having cognizance of matters relating to
appropriations and the budgets of state agencies, through the legislative Office of Fiscal
Analysis, not later than October first of each year, a statement showing in detail the
operations of such fund for the preceding fiscal year. Such statement shall include an
accounting, by item, for all revenues and expenditures of such fund for such year. Sec. 4-32. State revenue accounting. Each state department, institution, board,
commission or other state agency and each official and employee thereof, including the
clerks of the Superior Court, receiving any money or revenue for the state, shall, within
twenty-four hours of its receipt, account for and, if the total of the sums received amounts
to five hundred dollars or more, pay the same to the Treasurer or deposit the same in
the name of the state in depositories designated by the Treasurer under such regulations
as the Treasurer prescribes. Total daily receipts of less than five hundred dollars may
be held until the total receipts to date amount to five hundred dollars, but not for a period
of more than seven calendar days. The Treasurer is authorized to make exceptions to
the limitations herein prescribed upon written application from the head of any state
department, institution, board, commission or other state agency stating that compliance
would be impracticable and giving the reasons therefor. The Treasurer shall make a
written statement of any such exception and shall file copies thereof with the Comptroller
and the Auditors of Public Accounts. Sec. 4-33. Deposit of public money and trust funds. (a) Any person, with the
approval of the Treasurer and the Comptroller, may deposit any funds or moneys in
such person's hands belonging to the state or held by such person as a custodian or
trustee or in an official capacity, in any qualified public depository, as defined in section
36a-330, or any bank authorized pursuant to section 3-24, provided such deposit shall
only be made in such person's name as an official of the state, custodian or trustee or
in the name of the state. In no case shall the deposit by such person in any one such
qualified public depository or bank exceed in the aggregate at any one time seventy-
five per cent of the total capital of such depository or bank, as determined in accordance
with applicable federal regulations and regulations adopted by the Commissioner of
Banking under section 36a-332, provided: (1) Any such qualified public depository or
bank is required to disclose such information relating to public deposits as the Commissioner of Banking may require by regulations which he shall adopt in accordance with the
provisions of chapter 54. The regulations shall include, but not be limited to, disclosure of
the most current quarterly statement of condition and statement of income; and (2)
whatever interest or other pecuniary consideration such depository or bank allows for
or upon such deposit or payment shall belong to and accrue to the benefit of the state. Sec. 4-33a. Illegal, irregular or unsafe handling of state or quasi-public agency
funds. All boards of trustees of state institutions, state department heads, boards, commissions, other state agencies responsible for state property and funds and quasi-public
agencies, as defined in section 1-120, shall promptly notify the Auditors of Public Accounts and the Comptroller of any unauthorized, illegal, irregular or unsafe handling or
expenditure of state or quasi-public agency funds or breakdowns in the safekeeping of
any other resources of the state or quasi-public agencies or contemplated action to do
the same within their knowledge. Sec. 4-34. Transferred to Chapter 58, Sec. 4a-69. Sec. 4-35. Fiscal year. The fiscal year for all departments of the state government
shall end on the thirtieth day of June. Sec. 4-36. Inventory and list of state property. Each state agency shall establish
and keep an inventory account in the form prescribed by the Comptroller, and shall,
annually, on or before October first, transmit to the Comptroller a detailed inventory,
as of June thirtieth, of all of the following property owned by the state and in the custody
of such agency: (1) Real property, and (2) personal property having a value of one
thousand dollars or more. For audit purposes, each state agency shall establish and keep
a list of personal property having a value of less than one thousand dollars and defined
as "controllable property" in the property control manual published by the Comptroller. Sec. 4-36a. Transferred to Chapter 59, Part III, Sec. 4b-28. Secs. 4-36b and 4-36c. Transferred to Chapter 60, Part I, Secs. 4b-63 and 4b-64,
respectively. Sec. 4-37. Payment to persons entitled to refund of money paid to state. The
Comptroller, upon application of any state department or commission, may draw an
order upon the Treasurer in favor of any person equitably entitled to the refund of any
money paid to the state, for the amount of such refund. Any such payments from the
General Fund shall be made from funds appropriated to the Comptroller for this purpose. Secs. 4-37a to 4-37c. Transferred to Chapter 57, Secs. 4a-19 to 4a-21, inclusive. Sec. 4-37d. Financial management task force. No member who served or is serving on the Governor's financial management task force shall receive any remuneration
for such service by the state of Connecticut, and no corporation, partnership or limited
partnership doing business within the state or any professional corporation which has
within its employ a member of said task force shall be eligible for any state contracts
created as a result of said task force's report. Sec. 4-37e. Definitions. As used in this section and sections 4-37f to 4-37j, inclusive: Sec. 4-37f. Requirements for foundations established for principal purpose of
supporting or improving state agencies. The executive authority of each state agency
for which a foundation is established shall, in accordance with a policy adopted by the
board of trustees of the constituent unit for each state agency which is a constituent unit
or which is a public institution of higher education under the jurisdiction of the constituent unit, ensure that: Sec. 4-37g. Review of foundation audit reports. Auditors of Public Accounts.
(a) As used in this section, the term "funds for deposit and retention in state accounts"
means (1) all funds or other things of value received through proposals or other means
with an obligation for service primarily to the donor by the state agency including, but
not limited to, research, training, education or public service activities, except for such
funds or other things of value given to a foundation by a charitable trust which, on or
before October 1, 1989, does not permit the giving of its funds or other things of value
to a state agency, (2) gifts and donations, including cash, endowments, stock, real estate,
personal property or other property of value, made to the state agency and (3) foundation
funds received by the state agency.
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(1967, P.A. 589, S. 1, 2; 1971, P.A. 10, S. 1; 1972, P.A. 85, S. 2; P.A. 73-599, S. 37; P.A. 77-614, S. 80, 284, 610; P.A.
84-512, S. 29, 30.)
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(b) The Governor may designate any commissioner, officer or agency of the state
or any group or committee of commissioners or officers of the state as the sole agency
of the state, (i) to apply for, accept and expend funds allocated or payable to the state
for state, local and other expenditures under any Act of Congress or administrative ruling
pursuant thereto, (ii) to establish and administer or supervise the administration of any
state-wide plan which is now or may hereafter be required as a condition for receipt of
federal funds and (iii) to take such other action as may be reasonable and necessary
to fulfill the purposes of the federal requirements. Such agency may comply with all
administrative requirements, not inconsistent with the laws of the state, imposed as a
condition for receipt of said federal funds.
(c) A copy of any application made by a state agency under the provisions of this
section or under the authority of any other section of the general statutes, or a detailed
summary thereof, except applications for research grants by educational institutions,
shall be submitted, through the Office of Fiscal Analysis, to the joint standing committee
of the General Assembly having cognizance of matters relating to appropriations and
the budgets of state agencies, together with any plans or amendments, prior to submission
of such application to the federal government. Notice of grant awards, except awards
for research grants to educational institutions, which the state receives shall be sent to
the committee, through the Office of Fiscal Analysis upon notification to the state of
such award by the federal government.
(d) For the purposes of encouraging and facilitating the development and implementation of area-wide waste treatment management plans pursuant to the federal Water
Pollution Control Act, the Governor may designate (1) the boundaries of one or more
waste treatment management planning areas within the state and (2) a single representative organization, including but not limited to appointed and elected officials from state,
regional or local governments, or their designees, capable of developing effective area-
wide waste treatment management plans for such areas. Upon the designation of that
organization, notice thereof shall be given to the Legislative Committee on State Planning and Development established pursuant to section 4-60d, and the organization shall
every six months thereafter submit a report on its activities to the Governor and to that
committee.
(1949 Rev., S. 264; 1967, P.A. 601, S. 1; P.A. 75-322, S. 1, 2; P.A. 79-557, S. 2; P.A. 82-314, S. 12, 63.)
History: 1967 act added Subsec. (b); P.A. 75-322 added Subsec. (c); P.A. 79-557 moved former Subsec. (c) to Subsec.
(d) and created new Subsec. (c); P.A. 82-314 changed formal designation of appropriations committee.
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(1967, P.A. 601, S. 2.)
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(P.A. 81-449, S. 9, 11; Nov. Sp. Sess. P.A. 81-2, S. 1, 2; P.A. 82-242, S. 1, 2; P.A. 83-376, S. 1, 2; P.A. 84-73, S. 1, 2;
P.A. 86-355, S. 1, 3.)
History: Nov. Sp. Sess. P.A. 81-2 specified applicability re education block grants; P.A. 82-242 made provisions
applicable to any fiscal year where previously limited in applicability to 1981-1982 fiscal year generally and to 1982-1983
fiscal year in case of education block grants; P.A. 83-376 amended Subdiv. (2) to make provisions applicable to all block
grants where previously limited in applicability to block grants received in lieu of categorical grants, established five-day
limit for speaker and president pro tempore to submit governor's recommendations to committees and thirty-day limit
for committees to advise governor, established conference committee procedure and added provision that any proposed
amendments to recommendations after their approval or modification shall be submitted and approved, modified, or rejected
in accordance with procedures in Subdiv. (2); P.A. 84-73 amended Subdiv. (2) to repeal requirement that proposed amendments to governor's recommendations, after approval, are subject to procedures in Subdiv. (2), substituting requirement
that after governor's recommended allocations have been approved, any proposed transfer to or from any specific allocation
of more than fifty thousand dollars or ten per cent of such allocation, whichever is less, shall be subject to procedures in
Subdiv. (2) and adding provision that notice of all transfers shall be sent to certain joint standing committees through office
of fiscal analysis; P.A. 86-355 repealed former Subdiv. (1) which had authorized governor, with approval of finance
advisory committee, to authorize expenditure of state funds to replace reduced or eliminated federal grant for not more
than sixty days following reduction or elimination of such grant, and renumbered remaining subdivisions.
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(P.A. 83-55, S. 2, 3; P.A. 86-198, S. 1, 3; P.A. 87-57, S. 1, 2.)
History: P.A. 86-198 established deadlines for submission of governor's recommended allocations to general assembly
committee having cognizance of energy matters, extended from thirty days to sixty days period for both general assembly
committees to advise governor of approval or modification of allocations and authorized conference committee and transfers
to or from specific allocations after recommended allocations are approved or modified; P.A. 87-57 revised the deadline
for submission of the governor's recommended allocations from sixty days after receipt of funds to every six months,
established exceptions to the requirement for submission of recommended allocations in the case of funds less than one
hundred thousand dollars and funds received within sixty days of the deadline, and changed "sixty days" to "sixty calendar days".
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(b) (1) The Treasurer is authorized to invest all or any part of the Tobacco Settlement Fund, all or any part of the Tobacco and Health Trust Fund created in section 4-
28f and all or any part of the Biomedical Research Trust Fund created in section 19a-
32c. The interest derived from any such investment shall be credited to the resources
of the fund from which the investment was made.
(2) Notwithstanding sections 3-13 to 3-13h, inclusive, the Treasurer shall invest
the amounts on deposit in the Tobacco Settlement Fund, the Tobacco and Health Trust
Fund and the Biomedical Research Trust Fund in a manner reasonable and appropriate
to achieve the objectives of such funds, exercising the discretion and care of a prudent
person in similar circumstances with similar objectives. The Treasurer shall give due
consideration to rate of return, risk, term or maturity, diversification of the total portfolio
within such funds, liquidity, the projected disbursements and expenditures, and the expected payments, deposits, contributions and gifts to be received. The Treasurer shall
not be required to invest such funds directly in obligations of the state or any political
subdivision of the state or in any investment or other fund administered by the Treasurer.
The assets of such funds shall be continuously invested and reinvested in a manner
consistent with the objectives of such funds until disbursed in accordance with this
section, section 4-28f or section 19a-32c.
(c) (1) For the fiscal year ending June 30, 2001, disbursements from the Tobacco
Settlement Fund shall be made as follows: (A) To the General Fund in the amount
identified as "Transfer from Tobacco Settlement Fund" in the General Fund revenue
schedule adopted by the General Assembly; (B) to the Department of Mental Health
and Addiction Services for a grant to the regional action councils in the amount of five
hundred thousand dollars; and (C) to the Tobacco and Health Trust Fund in an amount
equal to nineteen million five hundred thousand dollars.
(2) For the fiscal year ending June 30, 2002, and each fiscal year thereafter, disbursements from the Tobacco Settlement Fund shall be made as follows: (A) To the Tobacco
and Health Trust Fund in an amount equal to twelve million dollars; (B) to the Biomedical Research Trust Fund in an amount equal to four million dollars; (C) to the General
Fund in the amount identified as "Transfer from Tobacco Settlement Fund" in the General Fund revenue schedule adopted by the General Assembly; and (D) any remainder
to the Tobacco and Health Trust Fund.
(d) For the fiscal year ending June 30, 2000, five million dollars shall be disbursed
from the Tobacco Settlement Fund to a tobacco grant account to be established in the
Office of Policy and Management. Such funds shall not lapse on June 30, 2000, and
shall continue to be available for expenditure during the fiscal year ending June 30, 2001.
(e) Tobacco grants shall be made from the account established pursuant to subsection (d) of this section by the Secretary of the Office of Policy and Management in
consultation with the speaker of the House of Representatives, the president pro tempore
of the Senate, the majority leader of the House of Representatives, the majority leader
of the Senate, the minority leader of the House of Representatives, the minority leader
of the Senate, and the cochairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to public health and
appropriations and the budgets of state agencies, or their designees. Such grants shall
be used to reduce tobacco abuse through prevention, education, cessation, treatment,
enforcement and health needs programs.
(June Sp. Sess. P.A. 99-2, S. 26, 72; P.A. 00-170, S. 40, 42; 00-216, S. 14, 28.)
History: June Sp. Sess. P.A. 99-2 effective July 1, 1999; P.A. 00-170 amended Subsec. (c) to provide for $500,000
from the Tobacco Settlement Fund to the Department of Mental Health and Addiction Services for regional action councils
for the fiscal year ending June 30, 2001, effective July 1, 2000; P.A. 00-216 added provisions re Biomedical Research
Trust Fund, designated existing Subsec. (b) as Subsec. (b)(1), added Subsec. (b)(2) re investment by the Treasurer, designated existing Subsec. (c) as Subsec. (c)(1), inserting Subpara. designators therein, added Subsec. (c)(2) re disbursements,
and made technical changes, effective June 1, 2000 (Revisor's note: In Subsec. (c)(1), "and (3) third" added by P.A. 00-
170 was changed editorially by the Revisors to "and (C)" for consistency with changes made by P.A. 00-216).
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(b) The trust fund may accept transfers from the Tobacco Settlement Fund and may
apply for and accept gifts, grants or donations from public or private sources to enable
the trust fund to carry out its objectives.
(c) The trust fund shall be administered by a board of trustees which shall consist
of seventeen trustees. The appointment of the initial trustees shall be as follows: (1) The
Governor shall appoint four trustees, one of whom shall serve for a term of one year
from July 1, 2000, two of whom shall serve for a term of two years from July 1, 2000,
and one of whom shall serve for a term of three years from July 1, 2000; (2) the speaker
of the House of Representatives and the president pro tempore of the Senate each shall
appoint two trustees, one of whom shall serve for a term of two years from July 1, 2000,
and one of whom shall serve for a term of three years from July 1, 2000; (3) the majority
leader of the House of Representatives and the majority leader of the Senate each shall
appoint two trustees, one of whom shall serve for a term of one year from July 1, 2000,
and one of whom shall serve for a term of three years from July 1, 2000; (4) the minority
leader of the House of Representatives and the minority leader of the Senate each shall
appoint two trustees, one of whom shall serve for a term of one year from July 1, 2000,
and one of whom shall serve for a term of two years from July 1, 2000; and (5) the
Secretary of the Office of Policy and Management, or the secretary's designee, as an
ex-officio voting member. Following the expiration of such initial terms, subsequent
trustees shall serve for a term of three years. The trustees shall serve without compensation except for reimbursement for necessary expenses incurred in performing their duties. The board of trustees shall establish rules of procedure for the conduct of its business
which shall include, but not be limited to, criteria, processes and procedures to be used
in selecting programs to receive money from the trust fund. The trust fund shall be
within the Office of Policy and Management for administrative purposes only.
(d) (1) During the period commencing July 1, 2000, and ending June 30, 2005, the
board of trustees, by majority vote, may recommend authorization of disbursement from
the trust fund for the purposes described in subsection (a) of this section and section
19a-6c, provided the board may not recommend authorization of disbursement of more
than fifty per cent of net earnings from the principal of the trust fund for such purposes.
For the fiscal year commencing July 1, 2005, and each fiscal year thereafter, the board
may recommend authorization of the net earnings from the principal of the trust fund
for such purposes. The board's recommendations shall give (A) priority to programs
that address tobacco and substance abuse and serve minors, pregnant women and parents
of young children, and (B) consideration to the availability of private matching funds.
Recommended disbursements from the trust fund shall be in addition to any resources
that would otherwise be appropriated by the state for such purposes and programs.
(2) The board of trustees shall submit such recommendations for the authorization
of disbursement from the trust fund to the joint standing committees of the General
Assembly having cognizance of matters relating to public health and appropriations and
the budgets of state agencies. Not later than thirty days after receipt of such recommendations, said committees shall advise the board of their approval, modifications, if any, or
rejection of the board's recommendations. If said joint standing committees do not
concur, the speaker of the House of Representatives, the president pro tempore of the
Senate, the majority leader of the House of Representatives, the majority leader of the
Senate, the minority leader of the House of Representatives and the minority leader of
the Senate each shall appoint one member from each of said joint standing committees
to serve as a committee on conference. The committee on conference shall submit its
report to both committees, which shall vote to accept or reject the report. The report of
the committee on conference may not be amended. If a joint standing committee rejects
the report of the committee on conference, the board's recommendations shall be deemed
approved. If the joint standing committees accept the report of the committee on conference, the joint standing committee having cognizance of matters relating to appropriations and the budgets of state agencies shall advise the board of said joint standing
committees' approval or modifications, if any, of the board's recommended disbursement. If said joint standing committees do not act within thirty days after receipt of the
board's recommendations for the authorization of disbursement, such recommendations
shall be deemed approved. Disbursement from the trust fund shall be in accordance with
the board's recommendations as approved or modified by said joint standing committees.
(3) After such recommendations for the authorization of disbursement have been
approved or modified pursuant to subdivision (2) of this subsection, any modification
in the amount of an authorized disbursement in excess of fifty thousand dollars or ten
per cent of the authorized amount, whichever is less, shall be submitted to said joint
standing committees and approved, modified or rejected in accordance with the procedure set forth in subdivision (2) of this subsection. Notification of all disbursements
from the trust fund made pursuant to this section shall be sent to the joint standing
committees of the General Assembly having cognizance of matters relating to public
health and appropriations and the budgets of state agencies, through the Office of Fiscal
Analysis.
(4) The board of trustees shall, not later than February first of each year, submit a
report to the General Assembly, in accordance with the provisions of section 11-4a, that
includes all disbursements and other expenditures from the trust fund and an evaluation
of the performance and impact of each program receiving funds from the trust fund.
Such report shall also include the criteria and application process used to select programs
to receive such funds.
(June Sp. Sess. P.A. 99-2, S. 27, 72; P.A. 00-216, S. 15, 28.)
History: June Sp. Sess. P.A. 99-2 effective July 1, 1999; P.A. 00-216 designated existing provisions as Subsecs. (a)
and (b), added provisions in Subsec. (a) re purposes of trust fund and added Subsecs. (c) re board of trustees and (d) re
disbursements, effective June 1, 2000.
See Sec. 4-38f for definition of "administrative purposes only".
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(June Sp. Sess. P.A. 99-2, S. 45.)
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(1) "Adjusted for inflation" means increased in accordance with the formula for
inflation adjustment set forth in Exhibit C to the Master Settlement Agreement;
(2) "Affiliate" means a person who directly or indirectly owns or controls, is owned
or controlled by, or is under common ownership or control with, another person. The
terms "owns", "is owned" and "ownership" mean ownership of an equity interest, or
the equivalent thereof, of ten per cent or more. The term "person" means an individual,
partnership, committee, association, corporation or any other organization or group of
persons;
(3) "Allocable share" means allocable share as that term is defined in the Master
Settlement Agreement;
(4) "Cigarette" means any product that contains nicotine, is intended to be burned
or heated under ordinary conditions of use, and consists of or contains (A) any roll of
tobacco wrapped in paper or in any substance not containing tobacco; or (B) tobacco,
in any form, that is functional in the product, which, because of its appearance, the type
of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or
purchased by, consumers as a cigarette; and (C) any roll of tobacco wrapped in any
substance containing tobacco which, because of its appearance, the type of tobacco used
in the filler, or its packaging and labeling, is likely to be offered to, or purchased by,
consumers as a cigarette described in subparagraph (A) of this subdivision. The term
"cigarette" includes roll-your-own tobacco, meaning any tobacco which, because of its
appearance, type, packaging or labeling is suitable for use and likely to be offered to,
or purchased by, consumers as tobacco for making cigarettes. For purposes of this definition of "cigarette", 0.09 ounces of roll-your-own tobacco shall constitute one individual
"cigarette";
(5) "Master Settlement Agreement" means the settlement agreement executed November 23, 1998, by the state of Connecticut and leading tobacco product manufacturers,
entitled "State of Connecticut v. Philip Morris, et al.";
(6) "Qualified escrow fund" means an escrow arrangement with a federally or state-
chartered financial institution having no affiliation with any tobacco product manufacturer and having assets of at least one billion dollars where such arrangement requires that
such financial institution hold the escrowed funds' principal for the benefit of releasing
parties and prohibits the tobacco product manufacturer placing the funds into escrow
from using, accessing or directing the use of the funds' principal except as consistent
with the provisions of subsection (b) of section 4-28i;
(7) "Released claims" means released claims as that term is defined in the Master
Settlement Agreement;
(8) "Releasing parties" means releasing parties as that term is defined in the Master
Settlement Agreement;
(9) "Tobacco product manufacturer" means an entity, or its successor, that, after
July 1, 2000, directly and not exclusively through an affiliate (A) manufactures cigarettes
anywhere which the manufacturer intends to be sold in the United States, including
cigarettes intended to be sold in the United States through an importer, provided an
entity that manufactures cigarettes that it intends to be sold in the United States shall
not be considered to be a tobacco product manufacturer under this subparagraph (A) if
(i) such cigarettes are sold in the United States exclusively through an importer that is
an original participating manufacturer, as that term is defined in the Master Settlement
Agreement, that will be responsible for payments under the Master Settlement
Agreement with respect to such cigarettes as a result of the provisions of subsection II
(mm) of the Master Settlement Agreement and that pays the taxes specified in subsection
II (z) of the Master Settlement Agreement, and (ii) the manufacturer of such cigarettes
does not market or advertise such cigarettes in the United States; or (B) is the first
purchaser anywhere for resale in the United States of cigarettes manufactured anywhere
that the manufacturer does not intend to be sold in the United States. A tobacco product
manufacturer shall not include an affiliate of a tobacco product manufacturer unless such
affiliate itself meets the criteria specified in subparagraph (A) or (B) of this subdivision;
(10) "Units sold" means the number of individual cigarettes sold in this state by
the applicable tobacco product manufacturer, whether directly or through a distributor,
dealer or similar intermediary or intermediaries during the year in question, as measured
by excise taxes collected by this state on packs, or on "roll-your-own" tobacco containers, bearing the excise tax stamp of the state. The Department of Revenue Services shall
adopt such regulations, in accordance with the provisions of chapter 54, as are necessary
to ascertain the amount of state excise tax paid on the cigarettes of such tobacco product
manufacturer for each year.
(P.A. 00-208, S. 1, 4.)
History: P.A. 00-208 effective July 1, 2000.
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(b) A tobacco product manufacturer that places funds into escrow pursuant to subsection (a) of this section shall receive the interest, or other appreciation on such funds,
as earned. Such funds shall be released from escrow only (1) to pay a judgment or
settlement on any released claim brought against such tobacco product manufacturer
by the state or any releasing party located or residing in the state. Funds shall be released
from escrow under this subdivision in the order in which the funds were placed into
escrow and only to the extent and at such time as is necessary to make payments required
under such judgment or settlement; (2) to the extent that a tobacco product manufacturer
establishes that the amount it was required to place into escrow in a particular year was
greater than the state's allocable share of the total payments that such manufacturer
would have been required to make in that year under the Master Settlement Agreement
had it been a participating manufacturer, as such payments are determined pursuant to
section IX(i)(2) of that Master Settlement Agreement and before any of the adjustments
or offsets described in section IX(i)(3) of that agreement other than the inflation adjustment, the excess shall be released from escrow and revert back to that tobacco product
manufacturer; or (3) to the extent not released from escrow under subdivision (1) or (2)
of this subsection, funds shall be released from escrow and revert back to such tobacco
product manufacturer twenty-five years after the date on which such funds were placed
into escrow.
(P.A. 00-208, S. 2, 4.)
History: P.A. 00-208 effective July 1, 2000.
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(b) The Attorney General may bring a civil action on behalf of the state against any
tobacco product manufacturer that fails to place into escrow the funds required under
section 4-28i. Any tobacco product manufacturer that fails in any year to place into
escrow the funds required under section 4-28i shall (1) be required within fifteen days
to place such funds into escrow as shall bring it into compliance with section 4-28i. The
court, upon a finding of a violation of this subsection, may impose a civil penalty in an
amount not to exceed five per cent of the amount improperly withheld from escrow per
day of the violation and in a total amount not to exceed one hundred per cent of the
original amount improperly withheld from escrow; (2) in the case of a knowing violation,
be required within fifteen days to place such funds into escrow as shall bring it into
compliance with section 4-28i. The court, upon a finding of a knowing violation of this
subsection, may impose a civil penalty in an amount not to exceed fifteen per cent of
the amount improperly withheld from escrow per day of the violation and in a total
amount not to exceed three hundred per cent of the original amount improperly withheld
from escrow; and (3) in the case of a second knowing violation, be prohibited from
selling cigarettes to consumers within the state, whether directly or through a distributor,
dealer or similar intermediary, for a period not to exceed two years.
(c) Each failure to make an annual deposit required under section 4-28i shall constitute a separate violation.
(P.A. 00-208, S. 3, 4.)
History: P.A. 00-208 effective July 1, 2000.
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(1949 Rev., S. 265; P.A. 83-587, S. 3, 96; P.A. 91-256, S. 38, 69.)
History: P.A. 83-587 replaced "state college" with "institution under the jurisdiction of the board of trustees of the
Connecticut State University"; P.A. 91-256 made a technical change.
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(P.A. 79-425, S. 1, 2.)
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(P.A. 00-192, S. 28, 102.)
History: P.A. 00-192 effective July 1, 2000.
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(1949 Rev., S. 102; November, 1955, S. N2; 1969, P.A. 768, S. 58; P.A. 78-298, S. 13, 14.)
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(b) Moneys in said Budget Reserve Fund shall be expended only as provided in this
subsection. When in any fiscal year the Comptroller has determined the amount of a
deficit applicable with respect to the immediately preceding fiscal year, to the extent
necessary, the amount of funds credited to said Budget Reserve Fund shall be deemed
to be appropriated for purposes of funding such deficit.
(c) The Treasurer is authorized to invest all or any part of said fund in accordance
with the provisions of section 3-31a. The interest derived from the investment of said
fund shall be credited to the General Fund.
(P.A. 79-623, S. 6, 8; P.A. 82-443, S. 1, 3; June Sp. Sess. P.A. 83-37, S. 1, 3; P.A. 85-516, S. 1, 8; P.A. 86-403, S. 8,
132; June 23, Sp. Sess. II P.A. 86-1, S. 7, 10; P.A. 92-205, S. 6, 12; May Sp. Sess. P.A. 92-14, S. 1, 11.)
History: P.A. 82-443 amended Subsec. (a) to repeal provision that not less than ten per cent of any surplus, when
determined, be transferred to the budget reserve fund, and to provide that the entire amount of any surplus, when determined,
be transferred to said fund, added provision to Subsec. (a) that the amount of any surplus which may not be transferred to
the budget reserve fund because of the maximum size of said fund, shall be deemed to be appropriated to retire state
indebtedness and amended Subsec. (b) to provide that when a deficit has been determined for the immediately preceding
fiscal year, funds credited to the budget reserve fund shall be deemed to be appropriated to fund such deficit; June Sp.
Sess. P.A. 83-37 amended Subsec. (a) to provide that the portion of the state's total indebtedness to be retired by the amount
of surplus in excess of that transferred to the budget reserve fund is the portion of indebtedness "in excess of the state's
normal debt retirement schedule" and amended Subsec. (b) to repeal provision authorizing expenditure of moneys in budget
reserve fund upon request of governor and approval of two-thirds of each house of the general assembly; P.A. 85-516
amended Subsec. (c) by adding provision that the interest derived from the investment of the fund shall be credited to the
general fund; P.A. 86-403 made technical change in Subsec. (a); June 23 Sp. Sess. II P.A. 86-1 amended Subsec. (a) to
clarify that "the amount in said fund" and "general fund appropriations" are "for the fiscal year in progress" and to replace
purposes for which amount of surplus in excess of that transferred to budget reserve fund shall be deemed to be appropriated
with purposes in Subdivs. (1) to (4), inclusive, and added provision re investment of amount pending application of such
amount for payment of interest and principal; P.A. 92-205 amended Subsec. (a) to add provision re appropriation of surplus
to state employees retirement fund, but not exceeding five per cent of unfunded past service liability of the system; May
Sp. Sess. P.A. 92-14 changed effective date of P.A. 92-205 but did not affect the date applicable to this section.
Cited. 41 CS 90, 91, 93, 95, 98, 99.
Subsec. (a):
Subdiv. (1) cited. 41 CS 90, 93. Subdiv. (2) cited. Id. Subdiv. (3) cited. Id. Subdiv. (4) cited. Id.
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(1949 Rev., S. 272; P.A. 75-450; P.A. 77-614, S. 19, 610; P.A. 78-298, S. 5, 14; P.A. 82-314, S. 13, 63; P.A. 86-162,
S. 1, 2.)
History: P.A. 75-450 required finance and control commissioner to notify appropriations committee of insurance claims
received; P.A. 77-614 substituted secretary of the office of policy and management for commissioner of finance and control;
P.A. 78-298 deleted provisions for use of funds from private sources etc. for rebuilding, repairing or replacing property;
P.A. 82-314 changed committee names; P.A. 86-162 deleted requirement that secretary of the office of policy and management notify general assembly committees having cognizance of matters relating to appropriations and budgets of state
agencies, and state finance, revenue and bonding, within ninety days of receipt of such insurance payment and whether
the state plans to rebuild, repair or replace such property.
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(b) No fund shall be created and set up on the books of the state except by act of
the General Assembly or upon the approval of the Governor.
(1959, P.A. 337, S. 1; 1971, P.A. 502, S. 1; P.A. 77-614, S. 19, 610; P.A. 82-218, S. 39, 46; P.A. 86-205, S. 1; P.A.
89-260, S. 2, 41; P.A. 91-256, S. 39, 69; P.A. 97-131, S. 2, 5.)
History: 1971 act included federal funds of boards of trustees for state colleges, community colleges and technical
colleges in funds exempt from inclusion in general fund; P.A. 77-614 substituted secretary of the office of policy and
management for commissioner of finance and control; P.A. 82-218 replaced "state colleges" with "Connecticut State
University" pursuant to reorganization of higher education system, effective March 1, 1983; P.A. 86-205 amended Subsec.
(a) to include federal funds in the possession of the employment security division of the labor department within funds
exempt from inclusion in general fund; P.A. 89-260 in Subsec. (a) substituted "board of trustees of the community-technical
colleges" for the board of trustees for regional community colleges and the board of trustees of the state technical colleges;
P.A. 91-256 made a technical change; P.A. 97-131 added provision that gifts, contributions, income from trust funds and
other aid from private sources and the federal government do not require allotment except upon notice by the Secretary
of the Office of Policy and Management that the state agency receiving the funding has consistently failed to provide the
notification required by Sec. 4-66a(e), effective June 13, 1997.
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(P.A. 83-403, S. 1, 2.)
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(1949 Rev., S. 273; 1953, S. 101d; February, 1965, P.A. 247; P.A. 75-530, S. 2, 35; P.A. 77-452, S. 45, 72; P.A. 78-
302, S. 6, 11; P.A. 97-65, S. 1, 2.)
History: 1965 act made provisions for common pleas and superior court clerks; P.A. 75-530 included common pleas
and superior court clerks under provisions of section, deleting prior language excepting them from provisions in certain
cases; P.A. 77-452 deleted reference to court of common pleas, effective July 1, 1978; P.A. 78-302 deleted provisions
concerning petty cash funds for agencies; P.A. 97-65 increased from one hundred dollars to five hundred dollars the amount
to be paid over to Treasurer within twenty-four hours of receipt, effective July 1, 1997.
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(b) On or before September first of each year, each person who deposits funds or
moneys in an account under subsection (a) of this section shall submit to the Treasurer
and the Comptroller, on a form provided by the Treasurer, a list of all such accounts,
as of the preceding June thirtieth.
(c) If the laws of this state have, in all other respects, been complied with, any person
acting on behalf of, or as custodian or trustee for, the state, who deposits public funds
in any depository, shall, because of failure, insolvency, receivership, forced closing or
restricted operation of such depository, or a bank and credit union holiday or banking
emergency proclaimed under the provisions of the laws of the United States or of this
state, be relieved of personal responsibility for public funds so deposited and the surety
or sureties upon the bond of such person shall be likewise relieved to the same extent
as such person. The provisions of this section shall not be construed to relieve any such
person or such person's surety or sureties from the obligation to account for the whole
or such part of public funds so deposited as and when the same may be obtained by such
person from such depository.
(1949 Rev., S. 832; 1955, S. 370d; 1957, P.A. 240; 1967, P.A. 517, S. 12; P.A. 73-609, S. 1, 4; P.A. 75-256, S. 1, 5;
P.A. 78-121, S. 3, 113; 78-236, S. 7, 20; P.A. 80-183, S. 2, 3; P.A. 81-193, S. 13, 16; P.A. 83-140, S. 2; 83-438, S. 1, 8;
P.A. 87-9, S. 2, 3; P.A. 89-73, S. 1, 2; P.A. 91-245, S. 9; P.A. 94-7, S. 2; 94-190, S. 4; P.A. 95-282, S. 1, 11; P.A. 96-244,
S. 38, 63; P.A. 00-6, S. 2.)
History: 1967 act changed bank deposit limit from fifty to seventy-five per cent of bank's total funds; P.A. 73-609
changed building and loan association deposit limit to seventy-five thousand dollars and added provision concerning public
officials acting as fiduciary; P.A. 75-256 deleted provision limiting investments in mutual saving banks as subject to
provisions of Sec. 36-104 and changed building and loan association deposit limit to one hundred thousand dollars; P.A.
78-121 removed references to share accounts and to building or savings and loan associations, referring instead to accounts
generally and savings and loan associations; P.A. 78-236 required approval of treasurer; P.A. 80-183 included federal
savings and loan associations under provisions of section and required investments exceeding amount insured by Federal
Savings and Loan Insurance Corporation to be fully collateralized; P.A. 81-193 replaced references to a mutual savings
bank, national or state bank and trust company, savings and loan association or federal savings and loan association with
"any qualified public depository, as defined in Sec. 36-382" and deleted the limitation of one hundred thousand dollars
on deposits except for a deposit in a savings bank; P.A. 83-140 required the state comptroller to approve the deposit by a
public official of the state of any funds or moneys belonging to the state; P.A. 83-438 eliminated the one hundred thousand
dollar maximum on public funds which may be deposited in a savings bank, added disclosure requirements for all qualified
public depositories accepting public deposits and precluded any depository whose ratio of net worth to assets falls below
three per cent from accepting additional public deposits; (Revisor's note: Pursuant to P.A. 87-9, "banking commissioner"
was changed editorially by the Revisors to "commissioner of banking"); P.A. 89-73 revised Subsec. and Subdiv. designations and added Subsec. (b) requiring each public official who deposits funds to submit a list of such accounts; P.A. 91-
245 substituted total capital as determined in accordance with applicable regulations for capital, general loss reserve,
surplus and undivided profits, and deleted prohibition on acceptance of additional public deposits by depositories whose
ratio of net worth to assets falls below three per cent; P.A. 94-7 amended Subsec. (a) to allow deposit of funds in an
out-of-state bank, trust company or state trust company; P.A. 94-190 changed "depository" to "depository or bank" for
consistency and deleted the reference to "subdivision (2) of" Sec. 3-24; P.A. 95-282 added Subsec. (c) re liability of persons
acting on behalf of the state who deposit public funds in any depository and made technical changes, effective July 6,
1995, provided "any designation of a depository of public funds of the state or any municipality or regional school district,
and any prescription of the method of supervision of the investment and reinvestment of trust funds of a municipality,
made in accordance with the applicable provisions of sections 4-33, 7-401, 7-402, 7-403, subsection (c) of section 10-52
or subsection (d) of section 10-56 in effect on or before July 6, 1995, shall remain in effect until rescinded or otherwise
modified in accordance with the provisions of public act 95-282" (Revisors note: (1) The reference to "section 10-52"
appears to be a clerical error since Subsec. (c) of Sec. 10-51 was amended by Sec. 5 of P.A. 95-282; (2) the Revisors
changed the reference in Subsec. (c) from "any person acting in behalf of," to "any person acting on behalf of," for
consistency with statutory usage); P.A. 96-244 revised effective date of P.A. 95-282 but without affecting this section;
P.A. 00-6 replaced "bank holiday" with "bank and credit union holiday" and made technical changes for the purposes of
gender neutrality in Subsec. (c).
See Sec. 3-24 re additional powers of Treasurer to deposit state funds.
See Sec. 7-401 et seq. re municipal power to designate depositories and make deposits.
Cited. 189 C. 490, 500.
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(1971, P.A. 557; P.A. 97-197.)
History: P.A. 97-197 applied section to quasi-public agencies.
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(1949 Rev., S. 266.)
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(1949 Rev., S. 275; P.A. 98-42, S. 1, 8; P.A. 00-25, S. 1.)
History: P.A. 98-42 substituted "agency" for "department and state institution" and exempted noncontrollable personal
property having a value of less than one thousand dollars from inventory requirement, effective July 1, 1998; P.A. 00-25
substituted "October first" for "August first", made a technical change for the purpose of gender neutrality and required
state agencies to list, rather than inventory, controllable personal property having value of less than one thousand dollars.
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(1949 Rev., S. 276; P.A. 78-302, S. 7, 11; P.A. 85-138; P.A. 93-285, S. 4.)
History: P.A. 78-302 required payments to be made from funds specifically appropriated for the purpose; P.A. 85-138
added provision that the approval of the attorney general is not required for refunds of one hundred dollars or less; P.A.
93-285 deleted requirement that attorney general approve refunds greater than one hundred dollars.
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(P.A. 77-572, S. 2, 3.)
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(1) "State agency" means each state board, authority, commission, department, office, institution, council or other agency of the state including, but not limited to, each
constituent unit and each public institution of higher education.
(2) "Foundation" means an organization, fund or any other legal entity which is (A)
exempt from taxation pursuant to Section 501 (c)(3) of the Internal Revenue Code of
1986, as amended, and (B) established for the principal purpose of receiving or using
private funds for charitable, scientific, cultural, educational or related purposes that
support or improve a state agency. Such an organization, fund or other legal entity shall
not be deemed to be a state agency as defined in section 1-200.
(3) "Executive authority" means (A) a department head, as defined in section 4-5,
(B) the executive secretary or president of a constituent unit, (C) the chief executive
officer of a public institution of higher education, and (D) the chief executive officer
of any other state agency.
(4) "Constituent unit" means a constituent unit as defined in section 10a-1.
(5) "Public institution of higher education" means a public college or university in
the state system of higher education or The University of Connecticut School of Law.
(P.A. 89-267, S. 1; P.A. 98-68, S. 1, 3.)
History: P.A. 98-68 applied section to Sec. 4-37j, effective July 1, 1998.
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(1) The foundation shall have a governing board to oversee its operation;
(2) If the state agency is a constituent unit, the following persons shall serve as
nonvoting members of the governing board of the foundation unless the bylaws of the
foundation provide that they be voting members: The executive authority of the constituent unit, or his designee, a student enrolled at an institution under the jurisdiction of
the constituent unit, who shall be elected by the students enrolled at the institutions
under the jurisdiction of the constituent unit, and a member of the faculty of any such
institution, who shall be elected by the faculty of the institutions under the jurisdiction
of the constituent unit. Elections pursuant to this subdivision shall be conducted in
accordance with procedures for such elections established by the board of trustees of
the constituent unit;
(3) If the constituent unit is the Board of Trustees of the Community-Technical
Colleges or the Board of Trustees of the Connecticut State University System, the purposes of the foundation shall be limited to providing funding for (A) scholarships or
other direct student financial aid and (B) programs, services or activities at one or more
of the institutions within its jurisdiction;
(4) If the state agency is a public institution of higher education, the following
persons shall serve as nonvoting members of the governing board of the foundation
unless the bylaws of the foundation provide that they be voting members: The executive
authority of the institution, or his designee, a student enrolled at the institution, who
shall be elected by the students enrolled in the institution and a member of the faculty
of the institution, who shall be elected by the faculty of the institution. Elections pursuant
to this subdivision shall be conducted in accordance with procedures for such elections
established by the board of trustees of the constituent unit which has jurisdiction over
the institution;
(5) The governing board of the foundation shall annually file with the state agency
an updated list of the members and officers of such board;
(6) The salaries, benefits and expenses of officers and employees of the foundation
shall be paid solely by the foundation;
(7) The foundation shall use generally accepted accounting principles in its financial
record-keeping and reporting;
(8) A foundation which has in any of its fiscal years receipts and earnings from
investments totaling one hundred thousand dollars per year or more shall have completed
on its behalf for such fiscal year a full audit of the books and accounts of the foundation.
A foundation which has receipts and earnings from investments totaling less than one
hundred thousand dollars in each fiscal year during any three of its consecutive fiscal
years beginning October 1, 1986, shall have completed on its behalf for the third fiscal
year in any such three-year period a full audit of the books and accounts of the foundation.
For each fiscal year in which an audit is not required pursuant to this subdivision financial
statements shall be provided by the foundation to the executive authority of the state
agency. Each audit under this subdivision shall be conducted (A) by an independent
certified public accountant or, if requested by the state agency with the consent of the
foundation, the Auditors of Public Accounts, and (B) in accordance with generally accepted auditing standards. The audit report shall include financial statements, a management letter and an audit opinion which address the conformance of the operating procedures of the foundation with the provisions of sections 4-37e to 4-37i, inclusive, and
recommend any corrective actions needed to ensure such conformance. Each audit report
shall disclose the receipt or use by the foundation of any public funds in violation of
said sections or any other provision of the general statutes. The foundation shall provide
a copy of each audit report completed pursuant to this subdivision to the executive
authority of the state agency. Each financial statement required under this subdivision
shall include, for the fiscal year to which the statement applies, the total receipts and
earnings from investments of the foundation and the amount and purpose of each receipt
of funds by the state agency from the foundation. As used in this subdivision, "fiscal
year" means any twelve-month period adopted by a foundation as its accounting
year; and
(9) There shall be a written agreement between the state agency and the foundation
which (A) addresses any use by the foundation of the agency's facilities and resources
including, but not limited to, office space, storage space, office furniture and equipment,
utilities, photocopying services, computer systems and the maintenance by the state
agency of the books and records of the foundation, provided any such books and records
maintained by the state agency shall not be deemed to be public records and shall not
be subject to disclosure pursuant to the provisions of section 1-210, (B) provides that
the state agency shall have no liability for the obligations, acts or omissions of the
foundation, (C) requires the foundation to reimburse the state agency for expenses the
agency incurs as a result of foundation operations, if the agency would not have otherwise incurred such expenses, (D) in the case of foundations established for a constituent
unit of the state system of higher education or for a public institution of higher education,
requires the foundation to establish and adhere to an investment policy and a spending
policy that are consistent with sections 45a-526 to 45a-534, inclusive, and (E) provides
that if the foundation ceases to exist or ceases to be a foundation, as defined in section
4-37e, (i) the foundation shall be prohibited from using the name of the state agency,
(ii) the records of the foundation, or copies of such records, shall be made available to
and may be retained by the state agency, provided any such records or copies which are
retained by the state agency shall not be deemed to be public records and shall not be
subject to disclosure pursuant to the provisions of section 1-210, and (iii) there are
procedures for the disposition of the financial and other assets of the foundation. If the
state agency is a constituent unit, the board of trustees of the constituent unit shall
approve such agreement. If the state agency is a public institution of higher education,
the board of trustees of the constituent unit which has jurisdiction over the institution
shall approve such agreement.
(P.A. 89-267, S. 2; P.A. 94-180, S. 13, 17; P.A. 95-259, S. 1, 32; P.A. 96-244, S. 40, 63; P.A. 99-285, S. 9, 12.)
History: P.A. 94-180 added Subdiv. (3) limiting the purposes of foundations established by the boards of trustees of
the community-technical colleges and the Connecticut State University system and renumbered the remaining Subdivs.,
effective July 1, 1994; P.A. 95-259 amended Subdivs. (2) and (4) concerning the bylaws and voting members, effective
July 6, 1995; P.A. 96-244 amended Subdiv. (8) to allow the audit to be conducted by the Auditors of Public Accounts, if
requested by the state agency, effective June 6, 1996; P.A. 99-285 amended Subdiv. (9) to designate the existing Subpara.
(D) as Subpara. (E) and to add a new Supara. (D) re investment and spending policy for foundations established for
constituent units of the state system of higher education or for public institutions of higher education, effective July 1, 1999.
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(b) In the case of an audit required pursuant to section 4-37f, that was not conducted
by the Auditors of Public Accounts, the executive authority and chief financial official
of the state agency shall review the audit report received pursuant to said section and,
upon such review, the executive authority shall sign a letter indicating that he has reviewed the audit report and transmit a copy of the letter and report to the Auditors of
Public Accounts. If such audit report indicates that (1) funds for deposit and retention
in state accounts have been deposited and retained in foundation accounts or (2) state
funds, personnel, services or facilities may have been used in violation of sections 4-
37e to 4-37i, inclusive, or any other provision of the general statutes, the Auditors of
Public Accounts may conduct a full audit of the books and accounts of the foundation
pertaining to such funds, personnel, services or facilities, in accordance with the provisions of section 2-90. For the purposes of such audit, the Auditors of Public Accounts
shall have access to the working papers compiled by the certified public accountant in
the preparation of the audit conducted pursuant to section 4-37f which are relevant to
such use of state funds, personnel, services or facilities in violation of the provisions of
sections 4-37e to 4-37i, inclusive, or any other provision of the general statutes.
(P.A. 89-267, S. 3; P.A. 96-244, S. 41, 63.)
History: P.A. 96-244 limited the applicability of Subsec. (b) to audits not conducted by the Auditors of Public Accounts,
effective June 6, 1996.