Sec. 10a-99a. Endowment Fund for the Connecticut State University System.
Sec. 10a-99a. Endowment Fund for the Connecticut State University System.
(a)(1) The Board of Trustees of the Connecticut State University System shall establish
a permanent Endowment Fund for the Connecticut State University System to encourage
donations from the private sector, with an incentive in the form of an endowment fund
state grant, the net earnings on the principal of which are dedicated and made available
to a state university or the Connecticut State University System as a whole, 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
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 separate and apart from
all other funds and accounts of the state and university. There shall be deposited into
the fund: (A) Endowment fund state grants; and (B) interest or other earnings from the
investment of moneys in the endowment fund pending transfer of the principal of the
fund for the purposes identified in this subdivision. Endowment fund eligible gifts made
on behalf of a state university or the system as a whole shall be deposited in a permanent
endowment fund created for each such state university and the system as a whole in the
appropriate foundation established pursuant to sections 4-37e and 4-37f. A portion of
the endowment fund state grant and a portion of earnings on such grant, including capital
appreciation, shall be transferred, annually, within thirty days of the receipt of the endowment fund state grant by the permanent Endowment Fund for the Connecticut State
University System, to such a state university endowment fund based on the ratio of the
total amount of such gifts made to such state university to the total amount of all such
gifts made to all the state universities and the system as a whole, provided the provisions
of section 4-37f are satisfied.
(2) (A) For each of the fiscal years ending June 30, 2000, 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 Connecticut State University System a grant in an amount
equal to half of the total amount of endowment fund eligible gifts received by or for the
benefit of the Connecticut State University System as a whole and each state 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.
(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 Connecticut State University System a grant in an amount equal to one-quarter of the total amount of endowment fund eligible gifts, except as provided for in this
subdivision, received by or for the benefit of the Connecticut State University System as
a whole and each state 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.
(C) In any such fiscal year in which the total of the eligible gifts received by the
Connecticut State University System as a whole and each state 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 shall 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 grant maximum commitment. 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 subdivision
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) The Board of Trustees of the Connecticut State University System shall adopt,
by October 1, 1997, guidelines with respect to (A) the solicitation of endowment fund
eligible gifts from private donors, and (B) governing the acceptance of gifts made by a
foundation established pursuant to sections 4-37e and 4-37f, to a state university or its
employees for reimbursement of expenditures or payment of expenditures on behalf of
a state university or its employees. Private donations shall not be construed to include
proceeds of federal grants but may include proceeds of municipal grants.
(b) For the purposes of this section: (1) "Endowment fund eligible gift" means a
gift to or for the benefit of any of the state universities of the Connecticut State University
System or the system as a whole of cash or assets which may be reduced to cash or
which has the value that is ascertainable by the state universities or the system as a
whole and which the donor has specifically designated for deposit in the endowment
fund or which explicitly or implicitly by the terms of the gift, the universities or the
system as a whole may and does deposit or permit to be deposited in the endowment
funds. (2) "Endowment fund state grant" means moneys transferred by the Department
of Higher Education from the fund established pursuant to section 10a-8b to the endowment fund established pursuant to this section in an aggregate amount not exceeding
the endowment fund state grant maximum commitment. (3) "Endowment fund state
grant maximum commitment" means an amount not exceeding two and one-half million
dollars in the fiscal year ending June 30, 2000, five million dollars for each of the fiscal
years ending June 30, 2001, and June 30, 2002, and seven million five hundred thousand
dollars for each of the fiscal years ending June 30, 2003, to June 30, 2014, inclusive.
(c) Notwithstanding the endowment fund state grant maximum commitment levels
provided for each fiscal year pursuant to subsection (b) of this section, the total of the
endowment fund state grant maximum commitments for the fiscal years ending June
30, 2000, to June 30, 2014, inclusive, shall not exceed sixty million dollars.
(P.A. 97-293, S. 5, 26; P.A. 98-252, S. 51, 60, 80; 98-255, S. 5, 24; P.A. 99-285, S. 8, 12; P.A. 01-141, S. 6-8, 16; 01-173, S. 33, 67; June Sp. Sess. P.A. 05-3, S. 67; P.A. 06-135, S. 8.)
History: P.A. 97-293 effective July 1, 1997; P.A. 98-252 and P.A. 98-255 both amended Subsec. (a)(1) to delete
requirement that the trust fund be with a bank or trust company and to make a technical change and P.A. 98-252 also
amended Subsec. (a)(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. 99-285 amended Subsec. (a)(1)
to add provision for the transfer of capital appreciation, to require transfer within 30 days of receipt of endowment fund
state grant and made technical changes, effective July 1, 1999; P.A. 01-141 amended Subsec. (a)(2) to extend the program
to the fiscal year ending June 30, 2014, amended Subsec. (b)(3) to remove $5,000,000 limit for the fiscal years ending
June 30, 2008, and June 30, 2009, and to apply $7,500,000 limit for each of the fiscal years ending June 30, 2003, to June
30, 2014, inclusive, and added Subsec. (c) re $60,000,000 cap, effective July 1, 2001; P.A. 01-173 amended Subsec. (b)
to make a technical change, effective July 1, 2001; June Sp. Sess. P.A. 05-3 amended Subsec. (a)(2) by designating existing
language re match in an amount equal to half as new Subpara. (A) and amending same to provide for match terminating
with the fiscal year ending June 30, 2006, and redesignating existing Subparas. (A) to (C) as clauses (i) to (iii), 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 new Subpara. (C), effective July 1, 2005; P.A. 06-135 amended Subsec.
(a)(2)(B) by adding provisions 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.