An Act To Enact the Uniform Prudent Management of Institutional Funds Act
Maine Legislature, Session 124, LD 1402
Committee Amendment CA_B_H504 (House)

COMMITTEE AMENDMENT ,6" to H.P. 981, L.D. 1402, Bill, "An Act To 
Enact the Uniform Prudent Management of Institutional Funds Act" 
Amend the bill in section 2 in §5103 in subsection 5 by inserting after paragraph F 
the following: 
'G. An institution shall track the historic dollar value of its institutional funds. For 
. purposes of this paragraph, "historic dollar value" means the aggregate value in 
dollars of: 
(1) Each endowment fund at the time it became an endowment fund; 
(2) Each subsequent donation to the fund at the time the donation is made; and 
(3) 
Each accumulation made pursuant to a direction in the applicable gift 
instrument at the time the accumulation is added to the fund.' 
Amend the bill in section 2 in §51 04 by inserting after subsection 3 the following: 
'4. Rebuttable presumption. The appropriation for expenditure in any year of an 
amount 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, creates a rebuttable presumption· of imprudence. 
For an endowment fund in 
existence for less than 3 years, the fair market value of the endowment fund must be 
calculated for the period the endowment fund has been in existence. This subsection does 
not apply to an appropriation for expenditure permitted under law other than this chapter 
or by the gift instrument. 
5. Notice to donor. Before an institution appropriates for expenditure in any year 
any amount of an endowment fund, the institution shall provide written notice to the 
donor if the donor's gift equals or exceeds $50,000 and the donor is still living.' 
Amend the bill in section 2 in §51 06 by striking out all of subsection 4 (page 28, lines 
to 42 and page 29, lines 1 to 11 in L.D.) and inserting the following: 
Page I - 124LR09SI(03)-1 
COMMITTEE AMENDMENT 
\f;~~1' 
COMMITTEE AMENDMENT ,,8, to H.P. 981, L.D. 1402 
'4. Release or modification by institution. This subsection governs the release or 
modification of a restriction contained in a gift instrument on the management, 
investment or purpose of an institutional fund that the institution determines is unlawful, 
impracticable, impossible to achieve or wasteful. 
A. If an institution determines that a restriction contained in a gift instrument on the 
management, investment or purpose of an institutional fund 
is 
unlawful, 
impracticable, impossible to achieve or wasteful, the institution, 60 days after 
notification to the Attorney General and if the Attorney General does not object, may 
release or modify the restriction, in whole or part, if: 
(1) The institutional fund subject to the restriction has a total value of less than 
$25,000, except that the dollar limit established in this paragraph must be 
. adjusted to reflect changes in the Consumer Price Index for all Urban Consumers, 
CPI-U, as compiled by the United States Department of Labor, Bureau of Labor 
Statistics, or its successor index, using 2009 as the base year. On or before 
January 1, 2011, and each odd-numbered year thereafter, the dollar value must be 
adjusted for the next 2-year cycle if the cumulative percentage of change in the 
index, from the base year or from a later year that was the basis of an adjustment 
of this amount pursuant to this subparagraph, rounded to the nearest whole 
percentage point, is in excess of 10%. The adjusted exemption must be rounded 
upward to the nearest $5,000 increment. The dollar value must not be reduced 
below $25,000; 
(2) More than 20 years have elapsed since the fund was established; and 
(3) The institution· uses the property in a manner consistent with the charitable 
purposes expressed in the gift instrument. 
B. If the Attorney General objects under paragraph A, the institution may seek to 
release or modify the restriction in court pursuant to subsection 3.' 
Amend the bill in section 2 in §5108 in the first paragraph in the 2nd line (page 31, 
line 38 in L.D.) by striking out twice the following: 
"2010" and inserting twice the 
following: '2009' 
Amend the bill in section 2 in §5111 in the first paragraph in the first line (page 32, 
line 13 in L.D.) by striking out the following: "2010" and inserting the following: '2009' 
Amend the bill by inserting after section 2 the following: 
'Sec. 3. Retroactivity. This Act applies retroactively to July 1,2009.' 
SUMMARY 
This amendment is a minority report. 
This amendment requires an institution to track the historic dollar value of its 
institutional funds. 
This amendment establishes a rebuttable presumption that the appropriation for 
expenditure in any year of an amount greater than 7% of the fair market value of an 
endowment fund is imprudent. 
co 
EE AMENDMENT 
J 
.I' 
.. ,") 
) 
:) 
x 
.,(~{j~{J; 
PI 
" 
/ 
_ 
.. 
COMMITTEE AMENDMENT ·6" to H.P. 981, L.D. 1402 
This amendment requires an institution to notify the donor, if living, before the 
institution appropriates for expenditure any amount of an endowment fund if the donor's 
gift was at least $50,000. 
This amendment provides that if the Attorney General objects to the release or 
modification of a restriction in a gift instrument that applies to a small fund that has been 
in existence for more than 20 years, the institution must seek court approval of the release 
or modification. 
This amendment changes the effective date of the Act to July 1, 2009 and adds a 
retroactive application date. 
COMMITTEE A 'ENDMENT