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 instead of older, more restrictive investment rules. Once a municipality formally accepts this change, it can invest those funds in a wider variety of assets to potentially improve returns while still prioritizing the safety of the principal. The law includes a safeguard that requires funds to follow the specific instructions of a donor if those instructions clearly conflict with the new investment standards. This update aims to give local governments more flexibility in handling public money without altering existing obligations to specific bequests or trusts.