Senate Bill No. 996
Senate Bill No. 996
PUBLIC ACT NO. 97-260
AN ACT CONCERNING INVESTMENTS FOR THE STATE'S
TRUST FUND.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Subsection (a) of section 3-13d of
the general statutes is repealed and the following
is substituted in lieu thereof:
(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 fifty-five per cent of the [book]
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 book value of
each such trust fund in common stock to exceed
fifty-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. 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. 2. This act shall take effect from its
passage.
Vetoed June 27, 1997