|HB 0331||Relating to the Uniform Management Endowments Act|
|Sponsor:||CRUM (112)||Handling House Bill:|
|Last Action:||03/15/95 - Reported Do Pass H Judiciary & Ethics Comm.|
HB0331 Crum, Joe Clay Klumb, Jason O et al
P R E F I L E D
HB 331 -- Eleemosynary Funds
Co-Sponsors: Klumb, Crum, and Skaggs
This bill provides investment guidelines for eleemosynary funds. The governing board of any educational, religious, or charitable institution may accumulate annual net income of an institutional endowment fund and may hold such funds for purposes which such institutional fund is established for or may add such accumulated income to the fund. The governing board of the institution may appropriate for expenditure for which an institutional endowment fund is established, the net appreciation, in fair value of the assets of the endowment fund over the historic dollar value of the fund, as is prudent.
The governing board may:
(1) Invest an institutional endowment fund in any real or personal property,
(2) Retain property contributed by a donor to an institutional endowment fund,
(3) Include all or any part of an institutional endowment fund in any pooled or common fund, and
(4) Invest any part of an institutional endowment fund in any other pooled or common funds available for investment, including shares in regulated investment companies, mutual funds, common trust funds, investment partnerships, real estate investment trusts, or similar organizations in which funds are commingled and investment determinations are made by persons other than the board.
The governing board may delegate to its officers the authority to act in its place, contract with independent investment officers and authorize compensation for investment advisory or management services.
The governing board is to act, as a prudent person would act, in accomplishing the purpose of the institution receiving the benefit of the institutional endowment fund.
With the consent of the donor the board may release a restriction imposed on the use or investment of an institutional endowment fund. The governing board may apply to the circuit court for release of a restriction on the gift under certain circumstances. Such release of restriction may not result in the institutional endowment fund becoming a fund which is not an institutional endowment fund.