The bill amends the Uniform Prudent Management of Institutional Funds Act (2006) by introducing new definitions and standards for managing institutional funds. Notably, it adds the definition of "materially negative financial impact," which refers to a significant adverse effect on the fund's total net investment performance, excluding administrative costs not paid by the fund. Additionally, the bill defines "service provider" and outlines the types of financial services they may offer to institutional funds.

Furthermore, the bill establishes new standards of conduct for institutions managing these funds, particularly state-supported institutions of higher education. It prohibits them from selecting service providers that pursue specific social or environmental goals beyond legal requirements, such as reducing greenhouse gas emissions or advancing certain social agendas. However, if adhering to these standards would result in a materially negative financial impact, institutions are allowed to select service providers that do not fully comply, provided they document their decision-making process and seek alternative providers. The bill also includes provisions for special gifts with donor intent contrary to these standards, effective before January 1, 2024.

Statutes affected:
Old version HB1307 Original - 1-29-2025 02:42 PM: 28-69-802, 28-69-803
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
HB 1307: 28-69-802, 28-69-803