S-5149

   Amend Senate File 2453, as amended, passed, and reprinted by the Senate, as follows:
   1.  By striking page 1, line 32, through page 2, line 6, and inserting: 
   <1.  “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.
   2.  “Innovation fund” means the same as defined in section 15E.52.
   3.  “Institution” means a regents institution specified in section 262.7, subsections 1 through 3.>
   2.  Page 2, by striking lines 8 through 29 and inserting: 
   <1.  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.
   2.  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.
   3.  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 1. 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 as provided in this chapter as necessary in order to meet the required percentage of allocation.>
   3.  By striking page 2, line 33, through page 3, line 14, and inserting: 
   <Sec. ___.  NEW SECTION.  262C.4  Waiver.
   1.  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.
   2.  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.
   3.  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.>
   4.  Page 3, line 17, by striking <board> and inserting <state board of regents>
   5.  Page 3, by striking lines 21 through 24.
   6.  Page 3, line 25, before <board> by inserting <state>
   7.  Page 4, lines 4 and 5, by striking <an institution> and inserting <a foundation>
   8.  Page 4, line 6, by striking <the board> and inserting <each foundation>
   9.  Page 4, by striking lines 17 and 18 and inserting:
   <Sec. ___.  EFFECTIVE DATE.  This Act takes effect December 31, 2026.>
   10.  By renumbering as necessary.