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House Bill No. 5734

Public Act No. 02-107

AN ACT DESIGNATING CERTAIN "FUNDS" AS "ACCOUNTS".

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 4-52 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

As used in sections 4-53 to 4-55, inclusive, as amended by this act, ["activity fund"] trustee account means any [fund] account operated in any state educational institution or welfare or medical agency for the benefit of the employees or students of such institution or agency, including so-called clients' funds in state hospitals, the revenue of which is derived from the operation of canteens, vending machines, dramatics, recitals, student activity fees, membership fees, deposits, gifts, donations, bequests or any other legal source compatible with the good government of such institution or agency.

Sec. 2. Section 4-53 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

The administrative head of any such institution or agency may, with the approval of the Comptroller and in accordance with procedures prescribed by the Comptroller, establish one or more [activity funds] trustee accounts. The Governor may allot from the funds appropriated to any such institution or agency any amount needed in [his] the Governor's judgment for the establishment of any such [activity fund] trustee account, and the Comptroller shall provide in such procedures for the reimbursement of such appropriation. The use of such state facilities as space, fixtures, heat and light to obtain revenue from the sources designated in section 4-52, as amended by this act, is authorized. [At the end of each fiscal year any cash balance in such fund not needed for the maintenance and continuance of its activities may, with the approval of the Comptroller, be transferred to the "general welfare fund" of such institution or agency if such a fund has been established and, if not, shall remain in such activity fund. ]

Sec. 3. Section 4-54 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

(a) The management of such [funds] accounts may be under the control of students or employees other than those adjudged mentally ill but shall be under the supervision of the administrative head of the institution or agency, except that such [funds] accounts shall be under the total control of students under conditions hereinafter provided. The person acting as treasurer of any such [fund] account shall be bonded in an amount determined by the State Insurance and Risk Management Board.

(b) Where the duly constituted student government at any public institution of higher education or where by petition five per cent of the students enrolled at such institution and paying activity fees seeks to establish total control and administration of the student [activity fund] trustee account at such institution, a referendum shall be held on the question. [Said] Such referendum shall be conducted by secret ballot and notice of [said] such referendum shall be given to the students at such institution at least fourteen days prior to [said] such referendum. Upon approval by a majority of at least forty per cent of all students enrolled in the institution and paying activity fees, the duly constituted student government of such institution shall become responsible for the control and administration of [said fund] such account. Pursuant to this subsection any student government controlling student [activity funds] trustee accounts shall establish a finance committee whose duty it shall be to hold hearings on budget requests and expenditures of [said funds] such accounts and to recommend the allocation of [said funds] such accounts to the student government. Such student government shall have as one of its officers a duly elected treasurer who shall be accountable for such [funds] accounts and be bonded in accordance with the provisions of subsection (a) of this section.

(c) A referendum on whether to continue student control of [said fund] such account shall be held upon the petition by five per cent of the students enrolled at such institution and paying activity fees. Such referendum shall be held in accordance with the provisions of subsection (b) of this section. Where a majority of those voting in such referendum disapprove of the continuation of student control over such [funds] accounts, supervision of such [funds] accounts shall be vested in the administrative head of the institution in accordance with subsection (a) of this section.

(d) Notwithstanding any provisions of this section, a referendum on whether to continue student control of [said fund] such account shall be held at least every four years in accordance with the provisions of subsection (b) of this section. Such referendum shall require approval by a majority of at least forty per cent of all students enrolled in the institution and paying activity fees.

Sec. 4. Section 4-55 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

The administrative head of any institution or agency operating [an activity fund] a trustee account, the Commissioner of Correction operating [an activity fund] a trustee account in accordance with the provisions of section 4-57a or the treasurer of a student government organization at a public institution of higher education in control of [an activity fund] a trustee account, in accordance with the provisions of subsection (b) of section 4-54, as amended by this act, shall file, or cause to be filed, a balance sheet and statement of operations with the Secretary of the Office of Policy and Management at such times as said secretary orders. A copy of such statements shall be retained for auditing purposes.

Sec. 5. Section 4-56 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2002):

Unless otherwise provided by the donor, all gifts, donations or bequests made to the students or clients of any state educational institution or medical or welfare agency as a group, unclaimed funds accumulated from money deposited for the use of students or clients in any such state institution or agency, and the interest on any such money, shall be placed in a separate [fund] account at such institution or agency [which may be known as the "general welfare fund"] and shall be used in accordance with procedures prescribed by the Comptroller, for the benefit of the students or clients of such institution or agency in any manner which the governing board of such institution or agency deems suitable.

Sec. 6. (Effective July 1, 2002) Section 4-57 of the general statutes is repealed.

Approved June 3, 2002