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Amendments › SF 2453

Amendment S-5149 to SF 2453

Providing for investment by regents institutions in certified innovation funds and including effective date provisions. Vetoed 6-2-26

Never voted on

Filed March 31, 2026 in the Senate by

What it changes

AI summary This amendment clarifies the definitions of endowment assets and innovation funds and shifts the responsibility for making the investments from the universities to their affiliated foundations. It also adds a rule that allows a foundation board to grant a one-year waiver if there is not enough investment capacity or if market conditions make the investment unwise.1

Read the amendment’s wording
  1. By striking page 1, line 32, through page 2, line 6, and inserting: “
  2. “Endowment assets” means all unrestricted pooled, long-term investment assets held by or for the benefit of an institution, including foundation-managed endowments, quasi-endowments, and long-term investment pools, as such assets are reported in the foundation’s audited financial statements. “Endowment assets” does not include assets not treated as endowment funds under applicable fiduciary and accounting standards.
  3. “Innovation fund” means the same as defined in section 15E.52.
  4. “Institution” means a regents institution specified in section 262.7, subsections 1 through
  5. ”
  6. Page 2, by striking lines 8 through 29 and inserting: “
  7. By July 1, 2027, each foundation affiliated with an institution shall ensure that no less than one percent of its total endowment assets are invested in one or more innovation funds. The one percent allocation shall be calculated based on the average quarterly market value of endowment assets for the most recently completed fiscal year.
  8. A foundation affiliated with an institution may determine which innovation funds to invest in, the timing of such investments, and the structure of investment commitments, provided the foundation remains responsible for compliance with this chapter.
  9. A foundation affiliated with an institution may implement investments required under this chapter through direct commitments, reallocation of existing assets, or rolling commitments as capital is called, subject to compliance with subsection
  10. If the percentage of allocation falls below the amount required by subsection 1 after that date, the foundation shall increase its investment in one or more innovation funds -1- SF 2453.3705.H (1) 91 md 1/ 2 as provided in this chapter as necessary in order to meet the required percentage of allocation.”
  11. By striking page 2, line 33, through page 3, line 14, and inserting: “Sec. ___. NEW SECTION . 262C.4 Waiver.
  12. A foundation board may grant a foundation a one-year waiver from the requirements of this chapter if adequate innovation fund capacity is not available or market conditions would materially impair prudent investment.
  13. A foundation board shall not grant a waiver under this section unless the foundation submits an explanation for its waiver request and a plan for coming into compliance with the requirements of this chapter in writing to the state board of regents and provides a copy to the foundation board.
  14. If a foundation is granted two consecutive waivers by a foundation board, the foundation shall submit written notice to that effect to the state board of regents when the second consecutive waiver is granted. The state board shall provide such notice in a report to the general assembly.”
  15. Page 3, line 17, by striking “board” and inserting “state board of regents”
  16. Page 3, by striking lines 21 through
  18. Page 3, line 25, before “board” by inserting “state”
  19. Page 4, lines 4 and 5, by striking “an institution” and inserting “a foundation”
  20. Page 4, line 6, by striking “the board” and inserting “each foundation”
  21. Page 4, by striking lines 17 and 18 and inserting: “Sec. ___. EFFECTIVE DATE. This Act takes effect December 31,
  22. ”
  23. By renumbering as necessary. -2- SF 2453.3705.H (1) 91 md 2/ 2

Official amendment (PDF) · In the Bill Book