HB 17-1096

HB 17-1096, also known as the Endowment Care Cemetery Authority bill, allows cemetery authorities to request that money managers change how endowment funds are handled. Instead of just keeping the original investment amount safe, they can now invest in stocks and other assets, which could grow over time. The money managers and cemetery authorities need to agree on how often this extra money will be distributed (monthly, quarterly, etc.), with monthly being the default option. Since the bill has been signed into law, it is now official and active, meaning that cemetery endowments can start using these new investment methods as agreed upon by their financial managers.

Official Summary

The bill authorizes the fiduciary of an endowment fund to distribute principal, such as capital gains, under a unitrust election. This facilitates investing in stocks. The bill authorizes a cemetery authority to request that the fiduciary convert an endowment fund to a unitrust. The fiduciary and cemetery authority must agree on the terms of conversion, the distribution method, and the distribution rate. The distributions must be made on a monthly, quarterly, semi-annual, or annual basis, but the default is monthly. The unitrust must comply with certain current unitrust laws. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Votes