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General Assembly Raised Bill No. 996
January Session, 2021
LCO No. 4280
Referred to Committee on HIGHER EDUCATION AND
EMPLOYMENT ADVANCEMENT
Introduced by:
(HED)
AN ACT CONCERNING FU NDRAISING BY THE FOUNDATION OF THE
UNIVERSITY OF CONNECTICUT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subdivision (10) of section 4-37f of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective July 1, 2
2021): 3
(10) There shall be a written agreement between the state agency and 4
the foundation that (A) addresses any use by the foundation of the 5
agency's facilities and resources including, but not limited to, office 6
space, storage space, office furniture and equipment, utilities, 7
photocopying services, computer systems and the maintenance by the 8
state agency of the books and records of the foundation, provided any 9
such books and records maintained by the state agency shall not be 10
deemed to be public records and shall not be subject to disclosure 11
pursuant to the provisions of section 1-210, (B) provides that the state 12
agency shall have no liability for the obligations, acts or omissions of the 13
foundation, (C) requires the foundation to reimburse the state agency 14 Raised Bill No. 996
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for expenses the agency incurs as a result of foundation operations, if 15
the agency would not have otherwise incurred such expenses, (D) in the 16
case of foundations established for a constituent unit of the state system 17
of higher education or for a public institution of higher education, 18
requires the foundation to establish and adhere to an investment policy 19
and a spending policy that are consistent with sections 45a-535 to 45a-20
535i, inclusive, (E) on and after July 1, 2017, if the state agency is The 21
University of Connecticut, provides that (i) the total cash compensation 22
to be paid in a fiscal year by the state agency to the foundation shall 23
decrease from the amount paid in the preceding fiscal year or the 24
amount paid in the fiscal year ending June 30, 2016, whichever is 25
greater, by (I) one million dollars when the market value of the 26
foundation's endowment fund as of January first of the preceding fiscal 27
year is equal to or greater than five hundred million dollars but less than 28
seven hundred million dollars, (II) one million five hundred thousand 29
dollars when the market value of such fund as of January first of the 30
preceding fiscal year is equal to or greater than seven hundred million 31
dollars but less than nine hundred million dollars, or (III) three million 32
dollars when the market value of such fund as of January first of the 33
preceding fiscal year is equal to or greater than nine hundred million 34
dollars but less than one billion two hundred fifty million dollars, (ii) no 35
cash compensation shall be paid by the state agency to the foundation 36
when the amount in such foundation's endowment fund as of January 37
first of the preceding fiscal year is equal to or greater than one billion 38
two hundred fifty million dollars, [and] (iii) if the market value of the 39
foundation's endowment fund as of January first of the preceding fiscal 40
year decreases below any of the thresholds stated in subclause (I), (II) or 41
(III) of clause (i) of this subparagraph, then the amount of the cash 42
payment to the foundation shall be increased to equal the same amount 43
that was paid to the foundation prior to exceeding the threshold in 44
subclause (I), (II) or (III) of clause (i) of this subparagraph, until the July 45
first following a January first on which the market value of the 46
foundation's endowment fund again exceeds such threshold, and (iv) in 47
any fiscal year, if the two-year average of total gifts and commitments 48
reported by the foundation, pursuant to subparagraph (B) of 49 Raised Bill No. 996
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subdivision (9) of this section, for the preceding two fiscal years is not 50
less than five times the average total cash compensation paid by the state 51
agency during the same period, the provisions of clauses (i) to (iii), 52
inclusive, of this subparagraph shall not be applicable to the cash 53
compensation paid by the state agency to the foundation in such fiscal 54
year, (F) on and after July 1, 2017, requires the foundation to use 55
reasonable efforts to raise gifts and commitments each fiscal year for 56
student support, including, but not limited to, scholarships, 57
assistantships, fellowships, awards and prizes, that equal not less than 58
fifteen per cent of the total amount of all gifts and commitments raised 59
by the foundation in the same fiscal year, and (G) provides that if the 60
foundation ceases to exist or ceases to be a foundation, as defined in 61
section 4-37e, (i) the foundation shall be prohibited from using the name 62
of the state agency, (ii) the records of the foundation, or copies of such 63
records, shall be made available to and may be retained by the state 64
agency, provided any such records or copies which are retained by the 65
state agency shall not be deemed to be public records and shall not be 66
subject to disclosure pursuant to the provisions of section 1-210, and (iii) 67
there are procedures for the disposition of the financial and other assets 68
of the foundation. If the state agency is a constituent unit, the board of 69
trustees of the constituent unit shall approve such agreement. If the state 70
agency is a public institution of higher education, the board of trustees 71
of the constituent unit which has jurisdiction over the institution shall 72
approve such agreement; and 73
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2021 4-37f(10)
Statement of Purpose:
To allow The University of Connecticut to maintain the amount of cash
compensation paid to the foundation if the two-year average of funds
raised by the foundation for the preceding two fiscal years is not less
than five times the average total cash compensation paid by said
university to the foundation over the same period. Raised Bill No. 996
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[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]