(a) For purposes of this section, a "trust" means a private foundation as defined in section 509 of the United States Internal Revenue Code of 1986 ("code") including a private foundation charitable trust as defined in section 4947(a)(1) of the code, or a split-interest trust as defined in section 4947(a)(2) of the code, whether heretofore or hereafter created which is administered by a trustee described in subparagraph (a)(1) of section 8-1.4. The administration of a trust, as herein defined, is subject to the following provisions:

(1) The trust shall distribute for each taxable year such amounts at such time and in such manner as sufficient for such trust to avoid liability for any tax imposed on undistributed income under section 4942 of the code.

(2) The trust shall not engage in any act of self-dealing which would result in the taxation of any amount involved with respect to any such act of self-dealing under section 4941 of the code.

(3) The trust shall not retain any excess business holdings which would result in the taxation of any such excess business holdings under section 4943 of the code unless the trust is exempt from section 4943 of the code pursuant to section 4947(b)(3)(A) or (B) of the code.

(4) The trust shall not make any investments in such a manner as to jeopardize the carrying out of any such trust's exempt purposes which would result in the taxation of any such investments under section 4944 of the code unless the trust is exempt from section 4944 of the code pursuant to section 4947(b)(3)(A) or (B) of the code.

(5) The trust shall not make any taxable expenditures which would result in the liability of the trust for any tax imposed on any such taxable expenditures under section 4945 of the code. Except as provided in paragraph (b), this paragraph applies notwithstanding any provision of the governing instrument of a trust.

(b) Paragraph (a) shall not apply with respect to assets transferred in trust prior to the effective date of this section to the extent that it conflicts with any mandatory direction in the governing instrument of the trust unless such conflicting direction is removed as impracticable under this article or in any other manner provided by law. The absence of a specific provision in the governing instrument of the trust for the current use of the principal of the fund, or the presence in such an instrument of a provision, as to the principal of a fund, limited to the principal's being held, invested and reinvested, is not such a conflicting mandatory direction.

(b-1) A trust, as defined in paragraph (a) of this section, required by section 6104(d) of the code to make available for public inspection its annual return shall publish notice of the availability of such return for inspection. Such notice shall be published, not later than the day prescribed for filing such annual return (determined with regard to any extension of time for filing), in a newspaper designated by the clerk of the county in which the principal office of the trust is located, having general circulation in that county. When such county is located within a city with a population of one million or more, such designation shall be as though the notice were a notice or advertisement of judicial proceedings. The notice shall state that the annual return of the trust is available at its principal office for inspection during regular business hours by any citizen who requests it within one hundred eighty days after the date of such publication, and shall state the address and the telephone number of the trust's principal office and the name of its principal manager. A copy or notice published in a newspaper other than the newspaper or newspapers designated by the county clerk shall not be deemed to be one of the publications required by this paragraph.

(c) All references in this section to sections of the code shall be to such sections as amended from time to time, or to corresponding provisions of subsequent internal revenue laws.

(d) Nothing in this act shall impair the rights and powers of the courts or the attorney-general of this state.