Bill No.: HB0060                  Drafter:  MQ

LSO No.:  10LSO-0251              Effective Date:

Enrolled Act No.:  HEA0027

Chapter No.:

Prime Sponsor:     Representative Pedersen

Catch Title:       UPMIFA-expenditure limitation.

Subject:  Increases the amount of authorized expenditures from an institutional fund held for charitable purposes under the Uniform Prudent Management of Institutional Funds Act.

Summary/Major Elements:

· Current law limits the amount of an expenditure which may be made from an institutional fund held for charitable purposes to not more than 5% of the fair market value of an endowment fund.

· Such an expenditure creates a presumption of prudence.

· Institutional fund is defined as a fund held by an institution exclusively for charitable purposes.

· Bill increases the limit to 7% of the fair market value of the endowment fund.