(1)(a) Except as
otherwise provided in subsection (1)(b) of this section, the board of directors of a
district shall distribute all of the funding the district receives from the department
of local affairs to areas that are socially or economically impacted, either directly or
indirectly, by the development, processing, or energy conversion of fuels and
minerals leased under the federal act; except that the board of directors may elect
to invest up to fifty percent of the funding as specified in subsection (5) of this
section.
(b)The board of directors may use up to ten percent of the annual funding
for any administrative costs of the district; except that any investment-related
expenses are excluded from the calculation of the district's administration costs.
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(1) (a) Except as
otherwise provided in subsection (1)(b) of this section, the board of directors of a
district shall distribute all of the funding the district receives from the department
of local affairs to areas that are socially or economically impacted, either directly or
indirectly, by the development, processing, or energy conversion of fuels and
minerals leased under the federal act; except that the board of directors may elect
to invest up to fifty percent of the funding as specified in subsection (5) of this
section.
(b) The board of directors may use up to ten percent of the annual funding
for any administrative costs of the district; except that any investment-related
expenses are excluded from the calculation of the district's administration costs.
(c) Notwithstanding any other provision of this part 13, the board of directors
of a district may reserve, or invest as specified in subsection (5) of this section, all
or a portion of the funding for use in subsequent years.
(2) The board of directors may review any reports or studies made and may
seek any additional reports or studies it deems necessary regarding the distribution
of funding in the district.
(3) The board of directors may cooperate or contract with any other district
to provide any function or service lawfully authorized to each of the cooperating or
contracting districts, including the sharing of costs, only if the cooperation or
contracts are authorized by each district with the approval of each district's board
of directors. Any contract providing for the sharing of costs may be entered into for
any period, not to exceed the existence of the district and notwithstanding any
provision of law limiting the length of any financial contracts or obligations of
governments. Any such contract shall set forth fully the purposes, powers, rights,
obligations, and responsibilities, financial and otherwise, of the contracting parties.
Where other provisions of law provide requirements for special types of
intergovernmental contracting or cooperation, those special provisions shall
control.
(4) The board of directors may exercise any of the powers set forth in section
30-20-1305.5.
(5) If the board of directors elects to invest the portion of the funding as
allowed in subsection (1)(a) of this section:
(a) The portion of the funding to be invested shall be held in a fund
established by a resolution enacted by the district;
(b) The board of directors shall make investments pursuant to the
investment policy described in subsection (6) of this section and in a manner that
complies with the Uniform Prudent Investor Act, article 1.1 of title 15;
(c) The board of directors may invest the portion of the funding in any
investment in which the board of trustees of the public employees' retirement
association may invest the funds of the association pursuant to section 24-51-206;
(d) The board of directors may engage the services of investment advisors.
The selection of investment advisors must be made following an open and
competitive process.
(e) The board of directors may appropriate and disburse any part of the
invested funding and all sums in excess thereof, including interest, dividends, or
similar appreciated values, but shall do so only upon the enactment of a resolution
identifying the reason for the appropriation and disbursement;
(f) The board of directors shall ensure that, at all times, liquid investment
assets or other funding not invested remain at a level sufficient to pay for all
budgeted and outstanding obligations of the district in any fiscal year; and
(g) The board of directors, individually or as a group, shall not engage in any
activities that might result in a conflict of interest with respect to their fiduciary
responsibility for the district.
(6) The board of directors shall adopt an investment policy resolution and
shall review the investment policy annually. The investment policy must include:
(a) An acknowledgment of the board of director's fiduciary responsibility
with respect to oversight of the district's investment policy;
(b) Performance benchmarks for all investments and for all investment
advisors who may be hired by the board of directors;
(c) A requirement for the preparation and publication of annual financial
statements that must include, at minimum, information regarding starting balances,
contributions, investment income, and losses, if any, and any investment fees
incurred;
(d) Careful consideration of investment fees or other brokerage costs which
might reduce investment returns; and
(e) A requirement that the board of directors annually review the
investments and annually set appropriations to be included in the trust fund.