§ 53D-1-303 — Board authority and duties.

Utah § 53D-1-303

• Jurisdiction: Utah
• Title 53D: School and Institutional Trust Fund Management and Land Trusts Protection and Advocacy Office
• Ch. 53D-1: School and Institutional Trust Fund Management Act
• Part 53D-1-3: School and Institutional Trust Fund Board of Trustees

Text

(1) The board has broad policymaking authority over the office and the trust fund.
(2) (2)(a) The board shall establish policies for the management of:
(2)(a)(i) the office, including:

(2)(a)(i)(A) an investment management code of conduct and associated compliance policy;
(2)(a)(i)(B) a policy for the strategic allocation of trust fund assets;
(2)(a)(i)(C) a soft dollar policy; and
(2)(a)(i)(D) a policy articulating the board's investment philosophy for trust fund assets; and
(2)(a)(ii) the trust fund.
(2)(b) Policies that the board adopts shall:
(2)(b)(i) be consistent with the enabling act, the Utah Constitution, and other applicable state law;
(2)(b)(ii) reflect undivided loyalty to the beneficiaries consistent with fiduciary duties;
(2)(b)(iii) be designed to prudently optimize trust fund returns and increase the value of the trust fund, consistent with the balancing of short-term and long-term interests, so that the fiduciary duty of intergenerational equity is met;
(2)(b)(iv) be designed to maintain the integrity of the trust fund and prevent the misapplication of money in the trust fund;
(2)(b)(v) enable the board to oversee the activities of the office; and
(2)(b)(vi) otherwise be in accordance with standard trust principles as provided by state law.
(3) The board shall:

(3)(a) establish a conflict of interest policy for the office and board members;
(3)(b) establish policies governing the evaluation, selection, and monitoring of independent custodial arrangements;
(3)(c) ensure that the office is managed according to law;
(3)(d) establish bylaws to govern the board;
(3)(e) establish the compensation of the director;
(3)(f) annually examine the compensation and performance of the director as part of the board's budget review process;
(3)(g) annually report the director's compensation to the Legislature; and
(3)(h) (3)(h)(i) adopt policies to provide for annual training of board members regarding their duties and responsibilities; and
(3)(h)(ii) ensure that any training described in Subsection (3)(h)(i) complies with Title 63G, Chapter 22, State Training and Certification Requirements.
(4) The board may:

(4)(a) after conferring with the director:
(4)(a)(i) hire one or more consultants to advise the board, director, or office on issues affecting the management of the trust fund; and
(4)(a)(ii) pay compensation to any consultant hired under Subsection (4)(a)(i), subject to budgetary constraints; and
(4)(b) submit to the director a written question or set of questions concerning policies and practices affecting the management of the trust fund.

Legislative History

Amended by Chapter 200, 2018 General Session