Sec. 10a-109i. Special External Gift Fund. Endowment Fund for The University of Connecticut. Endowment fund state grant.
Sec. 10a-109i. Special External Gift Fund. Endowment Fund for The University of Connecticut. Endowment fund state grant. (a)(1) There is hereby created a
Special External Gift Fund to encourage special eligible gifts from the private sector,
to be used by the university in furtherance of UConn 2000 pursuant to sections 10a-109a to 10a-109y, inclusive. The fund shall be administered by the board of trustees,
or by the finance committee if so delegated by the board of trustees. Notwithstanding
the provisions of subsection (b) of section 10a-105 or any other provision of the general
statutes, there shall be deposited into the fund: (A) Special eligible external gift fund
moneys in an amount equal to the special eligible gifts, and (B) interest or other income
earned on the investment of moneys in the Special External Gift Fund pending transfer
or use of such moneys pursuant to sections 10a-109a to 10a-109y, inclusive.
(2) Moneys in the Special External Gift Fund may be used to pay costs in connection
with any UConn 2000 project or projects and may be added to state or other moneys
available or becoming available for any such project; any moneys in the Special External
Gift Fund not used to pay costs in connection with any such project or projects may be
used to meet special debt service requirements on outstanding securities or for purchase
or redemption and cancellation of such securities or by payment thereof at maturity.
(3) The board of trustees shall adopt guidelines with respect to the solicitation of
special eligible gifts from private donors. The adoption of such guidelines shall not
constitute regulation making as defined in and prescribed by chapter 54.
(b) (1) A permanent Endowment Fund for The University of Connecticut shall be
confirmed, established or created to encourage donations from the private sector, with
an incentive in the form of an endowment fund state grant, which shall be deposited in
the university or in a foundation operating pursuant to sections 4-37e and 4-37f consistent with the deposit of endowment fund eligible gifts, and the net earnings on the principal of which are to be dedicated and made available to the university for endowed
professorships, scholarships and programmatic enhancements. The fund shall be administered by the board of trustees, or by a nonprofit entity entrusted for such purpose and
created or to be created and qualified as a Section 501(c)(3) organization under the
Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code
of the United States, as from time to time amended, and preferably constituted and
controlled independent of the state and university so as to qualify the interest on state
bonds the proceeds of which have been granted for deposit in the endowment fund as
excludable from federal taxation under such code and shall, in any event, be held in a
trust fund with a bank or trust company separate and apart from all other funds and
accounts of the state and university. There shall be deposited into the fund: (A) Endowment fund eligible gifts, (B) endowment fund state grants and (C) interest or other income
earned on the investment of moneys in the endowment fund pending application or
transfer or use of earnings on the principal thereof for the purposes identified in this
subdivision (1) of subsection (b) of this section.
(2) (A) For each of the fiscal years ending June 30, 1999, to June 30, 2006, inclusive, as part of the state contract with donors of endowment fund eligible gifts, the
Department of Higher Education, in accordance with section 10a-8b shall deposit in the
endowment fund for the university a grant in an amount equal to half of the total amount
of endowment fund eligible gifts, except as provided in this subparagraph, received by
the university or for the benefit of the university for the calendar year ending the December thirty-first preceding the commencement of such fiscal year, as certified by the
chairperson of the board of trustees by February fifteenth to (i) the Secretary of the
Office of Policy and Management, (ii) the joint standing committee of the General
Assembly having cognizance of matters relating to appropriations and the budgets of
state agencies, and (iii) the Commissioner of Higher Education, provided such sums do
not exceed the endowment fund state grant maximum commitment for the fiscal year
in which the grant is made. For the fiscal years ending June 30, 1999, and June 30,
2000, the Department of Higher Education shall deposit in the endowment fund for the
university grants in total amounts which shall not exceed the endowment fund state
grant, as defined in subdivision (7) of section 10a-109c of the general statutes, revision
of 1958, revised to January 1, 1997, and which shall be equal to the amounts certified
by the chairperson of the board of trustees for each such fiscal year of endowment fund
eligible gifts received by the university or for the benefit of the university and for which
written commitments were made prior to July 1, 1997. For the fiscal year ending June
30, 1999, the funds required to be deposited in the endowment fund pursuant to this
subparagraph shall be appropriated to the university for such purpose and not appropriated to the fund established pursuant to section 10a-8b.
(B) For each of the fiscal years ending June 30, 2007, to June 30, 2014, inclusive,
as part of the state contract with donors of endowment fund eligible gifts, the Department
of Higher Education, in accordance with section 10a-8b shall deposit in the endowment
fund for the university a grant in an amount equal to one-quarter of the total amount of
endowment fund eligible gifts, except as provided in this subdivision, received by the
university or for the benefit of the university for the calendar year ending the December
thirty-first preceding the commencement of such fiscal year, as certified by the chairperson of the board of trustees by February fifteenth to (i) the Secretary of the Office of
Policy and Management, (ii) the joint standing committee of the General Assembly
having cognizance of matters relating to appropriations and the budgets of state agencies,
and (iii) the Commissioner of Higher Education, provided such sums do not exceed the
endowment fund state grant maximum commitment for the fiscal year in which the grant
is made. Endowment fund eligible gifts that meet the criteria set forth in this subdivision,
made by donors during the period from January 1, 2005, to June 30, 2005, shall continue
to be matched by the Department of Higher Education in an amount equal to one-half
of the total amount of endowment fund eligible gifts received. Commitments by donors
to make endowment fund eligible gifts for two or more years that meet the criteria set
forth in this subdivision and that are made for the period prior to December 31, 2004,
but ending before December 31, 2012, shall continue to be matched by the Department
of Higher Education in an amount equal to one-half of the total amount of endowment
fund eligible gifts received through the commitment.
(C) In any such fiscal year in which the eligible gifts received by the university
exceed the endowment fund state grant maximum commitment for such fiscal year the
amount in excess of such endowment fund state grant maximum commitment for such
fiscal year, shall be carried forward and be eligible for a matching state grant in any
succeeding fiscal year from the fiscal year ending June 30, 1999, to the fiscal year
ending June 30, 2014, inclusive, subject to the endowment fund state grant maximum
commitment for such fiscal year. Any endowment fund eligible gifts that are not included
in the total amount of endowment fund eligible gifts certified by the chairperson of the
board of trustees pursuant to this subparagraph may be carried forward and be eligible
for a matching state grant in any succeeding fiscal year from the fiscal year ending June
30, 2000, to the fiscal year ending June 30, 2014, inclusive, subject to the endowment
fund state matching grant maximum commitment for such fiscal year.
(3) Moneys in the endowment fund shall be invested pursuant to subdivision (1) of
subsection (b) of section 10a-109i in such obligations as are eligible for investment of
pension funds by the Treasurer provided any deposit in a bank or money market or other
banking or money market arrangement, such as repurchase agreement, shall be fully
secured unless otherwise insured by a federal corporation and the net earnings of the
endowment fund shall be used solely for the purposes for which the fund has been
established. There shall be no commingling of the investments of the endowment fund
with any other fund or account of the state or the university.
(4) The board of trustees shall adopt guidelines with respect to the solicitation of
endowment fund eligible gifts from private donors. Private donations shall not be construed to include proceeds of federal grants but may include proceeds of municipal
grants.
(P.A. 95-230, S. 9, 45; P.A. 97-293, S. 8, 26; P.A. 98-252, S. 28, 52, 80; 98-259, S. 8, 17; P.A. 01-141, S. 12, 16; June
Sp. Sess. P.A. 05-3, S. 65; P.A. 06-135, S. 9.)
History: P.A. 95-230 effective June 7, 1995; P.A. 97-293 amended Subsec. (b)(2)(A) to add provisions re deposit of
funds by the Department of Higher Education, to delete provisions concerning state appropriations and bonding, to change
the match from 100% to 50% of the total amount of eligible gifts except as provided in the Subpara. for fiscal years ending
June 30, 1999, and June 30, 2000, to add subclauses (ii) and (iii), to substitute cap of the Endowment Fund state grant
maximum commitment for specific dollar amounts and to make technical changes, effective July 1, 1997; P.A. 98-252
amended Subsec. (b)(1) to provide for the deposit in the university or a foundation operating pursuant to Secs. 4-37e and
4-37f and to make a technical change and amended Subsec. (b)(2) to allow gifts not included in the amount certified by
the chairperson to be carried forward and be eligible for a matching state grant in a succeeding fiscal year, effective July
1, 1998; P.A. 98-259 amended Subsec. (b)(2) to delete Subparas. (B) to (D), effective July 1, 1998; P.A. 01-141 amended
Subsec. (b)(2) to extend the program to the fiscal year ending June 30, 2014, effective July 1, 2001; June Sp. Sess. P.A.
05-3 amended Subsec. (b)(2) by designating existing language re match in an amount equal to half as Subpara. (A) and
amended same to provide for match terminating with the fiscal year ending June 30, 2006, by adding new Subpara. (B) re
match in an amount equal to one quarter and by designating existing language re eligible gifts in excess of state grant
maximum commitment as Subpara. (C), effective July 1, 2005; P.A. 06-135 amended Subsec. (b)(2)(B) by adding provision
re endowment fund eligible gifts made during the period from January 1, 2005, to June 30, 2005, effective July 1, 2006.
See Sec. 10a-8c re restrictions on appropriations.