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History
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the adoption of a prudent management of institutional funds standard
In Senate Committee · Corporations, Authorities And Commissions · Sponsor Liz Krueger
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A9538
Title of bill
An act to amend the not-for-profit corporation law, in relation to adopting a prudent management of institutional funds stand- ard; and to amend a chapter of the laws of 2010 amending the not-for- profit corporation law and other laws relating to adopting a prudent management of institutional funds standard, in relation to the effec- tiveness thereof
Purpose or general idea of bill
To clarify portions of a chapter of the laws of 2010
Summary of specific provisions
Section 1 of the bill moves the existing definition of "donor" contained in a chapter of the laws of 2010 to the definitions section.
Section 2 amends the existing paragraph (d) of section 553 of the not- for-profit corporation law as added by a chapter of the laws of 2010 to establish that a rebuttable presumption of imprudence where the appro- priation for expenditure in any year greater than 7% of the fair market value of an endowment fund, calculated on the basis of market values determined at least quarterly and averaged over a period of not less than 3 years immediately preceding the year in which the appropriation for expenditure is made. This presumption applies only to gift instru- ments made on or after January next succeeding the effective date of this act. It does not apply to any appropriation for expenditure permit- ted under the gift instrument or create a presumption of prudence for the appropriation for expenditure of an amount less than or equal to 7%. The existing paragraphs (d) and (e) are relettered (e) and (f).
Section 3 makes amendments to the notice required to be given to gift instruments dated prior to the effective date of the act as established in paragraph (e) of section 553 of the not-for-profit corporation law as added by a chapter of the laws of 2010.
Section 4 makes technical corrections to Paragraph (a) of section 555 of the not-for-profit corporation law.
Section 5 amends the effective date of a chapter of the laws of 2010.
Section 6 is the effective date.
Justification
This bill makes amendments to A.7907-B/S.4778-A which establishes the Uniform Prudent Management of Institutional Funds Act (UPMIFA). UPMIFA updates the original law and has been adopted in more than 40 states since 2007 and is pending in 5 more, even before the economic downturn. It would provide guidance and authority to New York's charitable organizations concerning the management and investment of funds held by those organizations, and imposes additional duties on those who manage and invest charitable funds.
Prior legislative history
New bill.
Fiscal implications
None.
Effective date
This act will take effect on the same day and in the same manner as a chapter of the laws of 2010 as proposed in bill numbers A.7907- B/S.4778-A; provided however that paragraph (d) of section 553 of the not-for-profit corporation law as added by section 2 of this act shall apply only to gift instruments made on or after January 1st next succeeding the effective date of this act.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.