The bill amends the Uniform Prudent Management of Institutional Funds Act (2006) to enhance responsible fund management practices for institutions in Arkansas. It introduces new definitions, including "materially negative financial impact," which refers to significant adverse effects on an institutional fund's total net investment performance, and "service provider," which encompasses various financial service entities. The bill also establishes specific standards for managing and investing institutional funds, particularly for state-supported institutions of higher education, prohibiting them from aligning with certain social or environmental goals unless required by law.

Additionally, the bill outlines exceptions to these prohibitions if adhering to them would result in a materially negative financial impact on the fund. Institutions must document their decision-making process when selecting service providers and publicly post notices when seeking compliant service providers. The requirements do not apply to special gifts with donor intent contrary to the new standards, provided the intent was expressed before January 1, 2024. Overall, the bill aims to ensure that institutional funds are managed in a manner that prioritizes financial performance over social or political objectives.

Statutes affected:
Old version HB1307 V2 - 2-10-2025 10:32 AM: 28-69-802, 02-10-2025, 28-69-803
Old version HB1307 V3 - 2-17-2025 09:03 AM: 28-69-802, 02-17-2025, 28-69-803
Old version HB1307 V4 - 2-26-2025 10:37 AM: 28-69-802, 02-26-2025, 28-69-803
Old version HB1307 Original - 1-29-2025 02:42 PM: 28-69-802, 28-69-803
HB 1307: 28-69-802, 28-69-803
Act 308: 28-69-802, 02-26-2025, 28-69-803