Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB844 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - SB844 SFLR Page 1
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29		-	SENATE FLOOR VERSION
30		-	March 4, 2025
31		-	AS AMENDED
	53	+	STATE OF OKLAHOMA
32	54
33		-	SENATE BILL NO. 844 By: Gillespie
	55	+	1st Session of the 60th Legislature (2025)
	56	+
	57	+	SENATE BILL 844 By: Daniels
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39		-	[ charitable organizations - donor-imposed
40		-	restriction - complaint - notice - violations -
41		-	codification - effective date ]
	63	+	AS INTRODUCED
	64	+
	65	+	An Act relating to charitable organizations; cr eating
	66	+	the Safeguarding Endowment Gifts Act; providing short
	67	+	title; defining terms; prohi biting a charitable
	68	+	organization from using funds in a manner
	69	+	inconsistent with a donor -imposed restriction;
	70	+	allowing for donor to file complain t; requiring
	71	+	notice by charitable organization if unable to
	72	+	fulfill endowment agreement; specifying remedies for
	73	+	violations; prohibiting this act from violating
	74	+	certain offices or provisions ; providing for
	75	+	codification; and providing an effective date .
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47	81		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
48	82		SECTION 1. NEW LAW A new section of law to be codified
49	83		in the Oklahoma Statutes as Section 302 of Title 60, unless there is
50	84		created a duplication in numbering, reads as follows:
51	85		This act shall be known and may be cited as the “Safeguarding
52	86		Endowment Gifts Act”.
53	87		SECTION 2. NEW LAW A new section of law to be codified
54	88		in the Oklahoma Statutes as Section 302.1 of Title 60, unless there
55	89		is created a duplication in numbering, reads as follows:
56	90		As used in this act:
57		-	1. “Charitable organization ” means an organization organized
58		-	and operated exclusively for religious, charitable, scientific,
59		-	literary, educational, or other specified purposes or for testing
60		-	for public safety and that is tax exempt from federal income tax as
61	91
62		-	SENATE FLOOR VERSION - SB844 SFLR Page 2
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	142	+	1. “Charitable organization ” means an organization organized
	143	+	and operated exclusively for religious, charitable, scientific,
	144	+	literary, educational, or other specified purposes or for testing
	145	+	for public safety and that is tax exempt from federal income tax as
88	146		an entity described in the Internal Revenue Code of 1986, as
89	147		amended, Section 501(c)(3);
90	148		2. “Charitable trust” means a trust made for the benefit of a
91	149		specific charitable purpose;
92	150		3. “Donor” means an individual or entity who has made a
93	151		contribution of property or money to either an existing endowment
94	152		fund or a new endowment fund of a charitable organization or of a
95	153		charitable trust pursuant to the terms of an endowment agreement
96	154		that may include donor -imposed restrictions or conditions governing
97	155		the use of the contribution;
98	156		4. “Donor-imposed restriction” means a written statement within
99	157		an endowment agreement that specifies obligations on the management
100	158		or purpose of the endowment fund;
101	159		5. “Endowment agreement” means a written agreement between a
102	160		charitable organization and a donor or between a charitable trust
103	161		and a donor regarding the contribution made by the donor and
104	162		accepted by the charitable organization or the charitable trust,
105	163		which may include donor -imposed restrictions or other conditions
106	164		governing the use of the contribution;
107		-	6. “Endowment fund” means an institutional fund or part thereof
108		-	that, under the terms of a gift instrument, is not wholly expendable
109		-	by the institution on a cu rrent basis. The term does not mean
110		-	assets that an institution designates as an endowment fund for its
111		-	own use;
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113		-	SENATE FLOOR VERSION - SB844 SFLR Page 3
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	216	+	6. “Endowment fund” means an institutional fund or part thereof
	217	+	that, under the terms of a gift instrument, is not wholly expendable
	218	+	by the institution on a current basis. The term does not mean
	219	+	assets that an institution designates as an endowment fund for its
	220	+	own use;
139	221		7. “Gift instrument” means a record or records, including a n
140	222		institutional solicitation, under which property is granted to,
141	223		transferred to, or held by an institution as an institutional fund;
142	224		8. “Legal representative ” means the administrator or exe cutor
143	225		of a person’s estate, a surviving spouse if a court judgment has
144	226		settled the accounts of the estate, or a person designated in an
145	227		endowment agreement, whether or not born at the time of such
146	228		designation, to act in place of a party to the agreement fo r all
147	229		matters expressed in the agreement and all of the actions it
148	230		contemplates, including , without limitation, interpreting,
149	231		performing, enforcing , and defending the validity of the agreement;
150	232		and
151	233		9. “Property” means real property, personal property or m oney,
152	234		digital assets, stocks, bonds, or any other asset or financial
153	235		instrument.
154	236		SECTION 3. NEW LAW A new section of law to be codified
155	237		in the Oklahoma Statutes as Section 302.2 of Title 60, unless there
156	238		is created a duplication in numbering, reads as follows:
157		-	A. Unless otherwise specified by federal or state law, no
158		-	charitable organization that accepts a contribution pursuant to a
159		-	written donor-imposed restriction may viol ate the terms of that
160		-	restriction without penalty.
161		-	B. If a charitable organization violates a donor -imposed
162		-	restriction contained in an endowment agreement, the donor, or that
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164		-	SENATE FLOOR VERSION - SB844 SFLR Page 4
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	290	+	A. Unless otherwise specified by federal or state law, no
	291	+	charitable organization that accepts a contribution pursuant to a
	292	+	written donor-imposed restriction may violate the terms of that
	293	+	restriction without penalty.
	294	+	B. If a charitable organization violates a donor -imposed
	295	+	restriction contained in an e ndowment agreement, the donor, or that
190	296		person’s legal representative, ninety (90) days after notification
191	297		to the charitable organization, may file a complaint within six (6)
192	298		years after discovery for breach of such agreement. The complaint
193	299		may be filed in a court of general jurisdiction in the county where
194	300		a charitable organization named as a party has its principal place
195	301		of business for carrying out its charitable activities, or in a
196	302		court of the United States whose district includes such county. The
197	303		complaint may be filed regardless of whether the agreement expressly
198	304		reserves a right to use or enforce and it shall not seek a judgment
199	305		awarding damages to the plaintiff.
200	306		C. In the event a charitable organization is unable to fulfill
201	307		a term of an endowment agreement, the donor or donor ’s legal
202	308		representative shall be notified within thirty (30) days in advance
203	309		and offered an alternative solution that closely matches the initial
204	310		term in the endowment agreement.
205	311		D. A charitable organization may obtain a judic ial declaration
206	312		of rights and duties expressed in an endowment agreement containing
207	313		donor restrictions as to all of the actions the agreement
208		-	contemplates, including , without limitation, the interpretation,
209		-	performance, and enforcement of the agreement and determination of
210		-	its validity. The charitable organization shall seek such
211		-	declaration in any suit brought under thi s section or by filing a
212		-	complaint.
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214		-	SENATE FLOOR VERSION - SB844 SFLR Page 5
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	365	+	contemplates, including , without limitation, the interpretation,
	366	+	performance, and enforcement of the agreement and determination of
	367	+	its validity. The charitable organization shall seek such
	368	+	declaration in any suit brought under this section or by filing a
	369	+	complaint.
240	370		E. If the court determi nes that a charitable organization
241	371		violated a donor-imposed restriction in an endowment agreement, the
242	372		court may order one or more remedies consistent with the charitable
243	373		purposes expressed in the endowment agreement. The court shall not
244	374		order the return of donated funds to the donor or the donor ’s legal
245	375		representative.
246	376		F. Nothing in this act shall affect the authority of the Office
247	377		of the Attorney General to enforce any restriction in an endowment
248	378		agreement, limit the application of the judicial power of cy pres,
249	379		or alter the right of an institution to modify a restriction on the
250	380		management, investment, purpose , or use of an endowment fund in a
251	381		manner permitted by the endowment agreement , by the Uniform Prudent
252	382		Management of Institutional Funds Act, or by the Oklahoma Charitable
253	383		Fiduciary Act.
254	384		SECTION 4. This act shall become effective November 1, 2025.
255		-	COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND GOVERNMENT
256		-	RESOURCES
257		-	March 4, 2025 - DO PASS AS AMENDED
	385	+
	386	+	60-1-139 MR 1/16/2025 9:18:35 AM