House Bill No. 6624
               House Bill No. 6624

              PUBLIC ACT NO. 97-103


AN ACT CONCERNING DEFERRED COMPENSATION.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  5-264a of  the  general  statutes  is
amended by adding subsection (f) as follows:
    (NEW) (f) The  state  may,  by contract, agree
with any employee  to  defer, in whole or in part,
any portion of  such  employee's  compensation and
may  subsequently,  with   the   consent   of  the
employee,  contract  for,  purchase  or  otherwise
procure, for the  purpose  of  funding  a deferred
compensation program for  such employee, shares of
an  investment  company,   registered   under  the
Investment Company Act  of  1940, which shares are
registered  under  the  Securities  Act  of  1933,
including  equity,  fixed  income,  short-term  or
money  market mutual  funds.  Notwithstanding  any
other provision of  law  to  the  contrary,  those
persons designated by  the state to administer the
deferred   compensation   program    are    hereby
authorized to make  deposits  or  payments  to  an
investment   company,   registered    under    the
Investment Company Act  of  1940, for the purchase
of shares of such investment company, which shares
are registered under  the  Securities Act of 1933,
including  equity,  fixed  income,  short-term  or
money market mutual funds. Such payments shall not
be construed to be a prohibited use of the general
assets of the state.

Approved June 6, 1997