An Act authorizing municipal use of the prudent investor standards

This bill allows Massachusetts cities, towns, and districts to manage their pooled trust funds using the state's Prudent Investor Act standards instead of the current strict rules. Under the new provisions, municipalities can invest these funds in a wider variety of assets to potentially improve returns, provided they do not violate the specific wishes of donors who established the trusts. The law includes a safeguard that requires funds to be managed according to the original donor's instructions if those terms clearly conflict with the new investment standards. Ultimately, the change gives local governments more flexibility in handling public money while still respecting the intent behind charitable or private bequests.