MARVIN MANDEL, Governor                                   173

5-402.

A private foundation may not:

(1)   Engage in any act of "self—dealing," as defined
in § 4941 (d) of the [federal] Internal Revenue Code OF
1954, which would cause any tax liability under § 4941
(a) of the [federal] Internal Revenue Code OF 1954;

(2)   Retain any "excess business holdings," as
defined in § 4943 (c) of the [federal] Internal Revenue
Code OF 1954, which would cause any tax liability under §
4943 (a) of the [federal] Internal Revenue Code OF 1954;

(3)   Make any investment which would   jeopardize the
carrying out of any of its exempt purposes   under § 4944
of the [federal] Internal Revenue Code OF   1954 and cause
any tax liability under § 4944 (a) of     the [federal]
Internal Revenue Code OF 1954; or

(4)  Make any "taxable expenditures," as defined in §
4945 (d) of the [federal] Internal Revenue Code OF 1954,
which would cause any tax liability under § 4945 (a) of
the [federal] Internal Revenue Code OF 1954.

5-403.

For each taxable year, a private foundation shall
distribute for the purposes specified in its charter
amounts sufficient to avoid tax liability under § 4942
(a) of the [federal] Internal Revenue Code OF 1954.

8-103.

(b) To the extent any provision of this title is
contrary to or inconsistent with §§ 856 through 858 of
the [federal] Internal Revenue Code OF 1954 or the
regulations adopted under those sections, the latter
shall prevail as to any real estate investment trust
qualifying under those sections and regulations.

8-501.

(b) A declaration of trust may permit the trustees
by a two—thirds vote to amend provisions of the
declaration of trust from time to time to qualify as a
real estate investment trust under the [federal] Internal
Revenue Code OF 1954 or under this title.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1976.

Approved April 1, 1976.