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(1) There is created a private-purpose trust fund entitled the "Navajo Trust Fund."
(2) The fund consists of:
(a) revenue received by the state that represents the 37-1/2% of the net oil royalties from the Aneth Extension of the Navajo Indian Reservation required by Pub. L. No. 72-403, 47 Stat. 141, to be paid to the state;
(b) money received by the trust administrator from a contract executed by:
(i) the trust administrator; or
(ii) the board;
(c) appropriations made to the fund by the Legislature, if any;
(d) income;
(e) money related to litigation, including settlement of litigation, related to the royalties described in Subsection (2)(a);
(f) the balance of the Utah Navajo Royalties Holding Fund as of July 1, 2015, which shall be transferred to the fund; and
(g) other revenue received from other sources.
(3) The trust administrator shall account for the receipt and expenditures of fund money in accordance with Subsection 51-10-204(1)(m) and the policies and guidance of the Division of Finance.
(4)
(a)
(i) The state treasurer shall invest the fund money with the primary goal of providing for the stability, income, and growth of the principal.
(ii) Nothing in this section requires a specific outcome in investing.
(iii) The state treasurer may deduct any administrative costs incurred in managing fund assets from earnings before distributing them.
(iv)
(A) The state treasurer may employ professional asset managers to assist in the investment of assets of the fund.
(B) The state treasurer may only provide compensation to asset managers from earnings generated by the fund's investments.
(v) The state treasurer shall invest and manage the fund assets as a prudent investor would, by:
(A) considering the purposes, terms, distribution requirements, and other circumstances of the fund; and
(B) exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor.
(vi) In determining whether or not the state treasurer has met the standard of care of a prudent investor, the judge or finder of fact shall:
(A) consider the state treasurer's actions in light of the facts and circumstances existing at the time of the investment decision or action, and not by hindsight; and
(B) evaluate the state treasurer's investment and management decisions respecting individual assets not in isolation, but in the context of a fund portfolio as a whole as a part of an overall investment strategy that has risk and return objectives reasonably suited to the fund.
(b)
(i) The fund shall earn interest.
(ii) The state treasurer shall deposit the interest or other revenue earned from investment of the fund into the fund.
(5) The state auditor shall:
(a) conduct an annual audit of the fund's finances, internal controls, and compliance with statutes, rules, and policies in accordance with Title 67, Chapter 3, Auditor; and
(b) deliver a copy of the annual audit report to the:
(i) board;
(ii) trust administrator;
(iii) Diné Advisory Committee;
(iv) Office of Legislative Research and General Counsel for presentation to the Native American Legislative Liaison Committee, created in Section 36-22-1;
(v) governor's office;
(vi) Division of Indian Affairs;
(vii) Navajo Nation;
(viii) United States Bureau of Indian Affairs; and