Board authority and duties.

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  • (1) The board has broad policymaking authority over the office and the trust fund.
  • (2)
    • (a) The board shall establish policies for the management of:
      • (i) the office, including:
        • (A) an investment management code of conduct and associated compliance policy;
        • (B) a policy for the strategic allocation of trust fund assets;
        • (C) a soft dollar policy; and
        • (D) a policy articulating the board's investment philosophy for trust fund assets; and
      • (ii) the trust fund.
    • (b) Policies that the board adopts shall:
      • (i) be consistent with the enabling act, the Utah Constitution, and other applicable state law;
      • (ii) reflect undivided loyalty to the beneficiaries consistent with fiduciary duties;
      • (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;
      • (iv) be designed to maintain the integrity of the trust fund and prevent the misapplication of money in the trust fund;
      • (v) enable the board to oversee the activities of the office; and
      • (vi) otherwise be in accordance with standard trust principles as provided by state law.
  • (3) The board shall:
    • (a) establish a conflict of interest policy for the office and board members;
    • (b) establish policies governing the evaluation, selection, and monitoring of independent custodial arrangements;
    • (c) ensure that the office is managed according to law;
    • (d) establish bylaws to govern the board;
    • (e) establish the compensation of the director;
    • (f) annually examine the compensation and performance of the director as part of the board's budget review process;
    • (g) annually report the director's compensation to the Legislature; and
    • (h)
      • (i) adopt policies to provide for annual training of board members regarding their duties and responsibilities; and
      • (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:
    • (a) after conferring with the director:
      • (i) hire one or more consultants to advise the board, director, or office on issues affecting the management of the trust fund; and
      • (ii) pay compensation to any consultant hired under Subsection (4)(a)(i), subject to budgetary constraints; and
    • (b) submit to the director a written question or set of questions concerning policies and practices affecting the management of the trust fund.




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