77-1-219. Public school land purchases -- considerations -- distributions. (1) The board may request the board of examiners to issue bonds for the purpose of purchasing interests in and appurtenances to real property selected by the board in accordance with the requirements of this section. Upon issuance of the bonds, the board shall purchase the real property and its appurtenances.
(2) Prior to requesting the issuance of bonds under subsection (1), the board shall consider the following:
(a) the income-generating potential of the real property and appurtenances;
(b) the opportunity for sustainable forest management activities and outcomes as described in 76-13-701 and 76-13-702; and
(c) the opportunity for recreational use of the real property and appurtenances consistent with Title 77, chapter 1, part 8.
(3) Prior to requesting the issuance of bonds, the board or the department, at the board's direction, shall complete a cost-benefit analysis of potential real property and appurtenance purchases. This cost-benefit analysis must be made available to the public upon request.
(4) Prior to purchasing any real property and appurtenances, the board shall determine that the benefits of the purchase are significant and that the financial risks are prudent. In order to reach that determination, the board shall examine the purchase of any real property and appurtenances as if the board had a fiduciary duty as a reasonably prudent trustee of a perpetual trust. For the purposes of this section, that duty requires the board to:
(a) discharge its duties with the care, skill, and diligence that a prudent person acting in a similar capacity with the same resources and familiar with similar matters should exercise in the conduct of an enterprise of similar character and aims;
(b) manage the land holdings purchased pursuant to 77-1-218 and this section in accordance with an asset management plan to minimize the risk of loss and maximize the sustained rate of return;
(c) discharge its duties and powers solely in the interest of and for the benefit of the trust; and
(d) discharge its duties subject to the fiduciary standards set forth in 72-38-801.
(5) All interests in real property and appurtenances acquired under this section must be managed pursuant to this title.
History: En. Sec. 2, Ch. 485, L. 2009; amd. Sec. 156, Ch. 264, L. 2013.