(1) The board has broad policymaking authority over the office and the trust fund.

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Terms Used In Utah Code 53D-1-303

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Board: means the board of trustees established in Section 53D-1-301. See Utah Code 53D-1-102
  • Director: means the director of the office. See Utah Code 53D-1-102
  • Enabling act: means the act of Congress, dated July 16, 1894, enabling the people of Utah to form a constitution and state government and to be admitted into the Union. See Utah Code 53D-1-102
  • Fiduciary: A trustee, executor, or administrator.
  • Office: means the School and Institutional Trust Fund Office, created in Section 53D-1-201. See Utah Code 53D-1-102
  • Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Trust fund: means money derived from:
         (10)(a) the sale or use of land granted to the state under Sections 6, 8, and 12 of the enabling act;
         (10)(b) proceeds referred to in Section 9 of the enabling act from the sale of public land; and
         (10)(c) revenue and assets referred to in Utah Constitution, Article X, Section 5, Subsections (1)(c), (e), and (f). See Utah Code 53D-1-102
(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.