The AI workspace for legal professionals
- Legal research with access to more than 1 million sources
- Document automation
- Matter management
- Hosted in the EU and Switzerland
Try it free for 14 days (10 questions/day during trial)
The AI workspace for legal professionals
Try it free for 14 days (10 questions/day during trial)
title-51•Title 51 — Public Funds and Accounts
This chapter is known as the "Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local Entities Act."
As used in this chapter:
(1) "Accounting reports" means an audit, a review, a compilation, or a fiscal report.
(2) "Audit" means an examination that:
(a) is performed in accordance with generally accepted government auditing standards, or for a nonprofit corporation or a governmental nonprofit corporation, in accordance with generally accepted auditing standards; and
(b) conforms to the uniform classification of accounts established or approved by the state auditor or any other classification of accounts established by any federal government agency.
(3) "Audit report" means:
(a) the financial statements presented in conformity with generally accepted accounting principles;
(b) the auditor's opinion on the financial statements;
(c) a statement by the auditor expressing positive assurance of compliance with state fiscal laws identified by the state auditor;
(d) a copy of the auditor's letter to management that identifies any material weakness in internal controls discovered by the auditor and other financial issues related to the expenditure of funds received from federal, state, or local governments to be considered by management; and
(e) management's response to the specific recommendations.
(4) "Compilation" means information presented in the form of financial statements presented in conformity with generally accepted accounting principles that are the representation of management without the accountant undertaking to express any assurances on the statements.
(5) "Fiscal report" means providing information detailing revenues and expenditures of all funds in a format prescribed by the state auditor.
(6) "Governing board" means:
(a) the governing board of each political subdivision;
(b) the governing board of each interlocal organization having the power to tax or to expend public funds;
(c) the governing board of any local mental health authority established under the authority of Title 26B, Chapter 5, Health Care - Substance Use and Mental Health;
(d) the governing board of any substance abuse authority established under the authority of Title 26B, Chapter 5, Health Care - Substance Use and Mental Health;
(e) the governing board of any area agency established under the authority of Title 26B, Chapter 6, Part 1, Aging and Adult Services;
(f) the board of directors of any nonprofit corporation that receives an amount of money requiring an accounting report under Section 51-2a-201.5;
(g) the governing board, as that term is defined in Section 11-13a-102, of a governmental nonprofit corporation;
(h) the governing board of any other entity established by a local governmental unit that receives tax exempt status for bonding or taxing purposes; and
(i) in municipalities organized under an optional form of municipal government, the municipal legislative body.
(7) "Governmental nonprofit corporation" means the same as that term is defined in Section 11-13a-102.
(8) "Nonprofit corporation" does not include a governmental nonprofit corporation.
(9) "Review" means performing inquiry and analytical procedures that provide the accountant with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with generally accepted accounting principles.
(1) The governing board of an entity whose revenues or expenditures of all funds is $1,000,000 or more shall cause an audit to be made of its accounts by a competent certified public accountant.
(2) The governing board of an entity whose revenues or expenditures of all funds is less than $1,000,000 shall cause a financial report to be made in the manner prescribed by the state auditor.
(1) As used in this section:
(a)
(i) "Federal pass through money" means federal money received by a nonprofit corporation through a subaward or contract from the state or a political subdivision.
(ii) "Federal pass through money" does not include federal money received by a nonprofit corporation as payment for goods or services purchased by the state or political subdivision from the nonprofit corporation.
(b)
(i) "Local money" means money that is owned, held, or administered by a political subdivision of the state that is derived from fee or tax revenues.
(ii) "Local money" does not include:
(A) money received by a nonprofit corporation as payment for goods or services purchased from the nonprofit corporation; or
(B) contributions or donations received by the political subdivision.
(c)
(i) "State money" means money that is owned, held, or administered by a state agency and derived from state fee or tax revenues.
(ii) "State money" does not include:
(A) money received by a nonprofit corporation as payment for goods or services purchased from the nonprofit corporation; or
(B) contributions or donations received by the state agency.
(2)
(a) The governing board of a nonprofit corporation whose revenues or expenditures of federal pass through money, state money, and local money is $1,000,000 or more shall cause an audit to be made of its accounts by an independent certified public accountant.
(b) The governing board of a nonprofit corporation whose revenues or expenditures of federal pass through money, state money, and local money is at least $350,000 but less than $1,000,000 shall cause a review to be made of its accounts by an independent certified public accountant.
(c) The governing board of a nonprofit corporation whose revenues or expenditures of federal pass through money, state money, and local money is at least $100,000 but less than $350,000 shall cause a compilation to be made of its accounts by an independent certified public accountant.
(d) The governing board of a nonprofit corporation whose revenues or expenditures of federal pass through money, state money, and local money is less than $100,000 but greater than $25,000 shall cause a fiscal report to be made in a format prescribed by the state auditor.
(3) A nonprofit corporation described in Section 51-2a-102 shall provide the state auditor a copy of an accounting report prepared under this section within six months of the end of the nonprofit corporation's fiscal year.
(4)
(a) A state agency that disburses federal pass through money or state money to a nonprofit corporation shall enter into a written agreement with the nonprofit corporation that requires the nonprofit corporation to annually disclose whether:
(i) the nonprofit corporation met or exceeded the dollar amounts listed in Subsection (2) in the previous fiscal year of the nonprofit corporation; or
(ii) the nonprofit corporation anticipates meeting or exceeding the dollar amounts listed in Subsection (2) in the fiscal year the money is disbursed.
(b) If the nonprofit corporation discloses to the state agency that the nonprofit corporation meets or exceeds the dollar amounts as described in Subsection (4)(a), the state agency shall notify the state auditor.
(5) This section does not apply to a nonprofit corporation that is a charter school created under Title 53G, Chapter 5, Charter Schools. A charter school is subject to the requirements of Section 53G-5-404.
(6) A nonprofit corporation is exempt from Section 51-2a-201.
(7)
(a) Each nonprofit corporation that receives an amount of money requiring an accounting report under this section shall register in accordance with Section 67-1a-15 within six months of the end of the nonprofit corporation's fiscal year and maintain the nonprofit corporation's registration as a limited purpose entity each year that the nonprofit corporation is required to prepare an account report under this section.
(b) A nonprofit corporation described in Subsection (7)(a) that fails to comply with Subsection (7)(a) or Section 67-1a-15 is subject to enforcement by the state auditor, in accordance with Section 67-3-1.
(1) The governing board of each entity required to have an audit, review, compilation, or fiscal report shall ensure that the audit, review, compilation, or fiscal report is:
(a) made at least annually; and
(b) filed with the state auditor within six months of the close of the fiscal year of the entity.
(2) If the political subdivision, interlocal organization, or other local entity receives federal funding, the audit, review, or compilation shall be performed in accordance with both federal and state auditing requirements.
(1) The governing body of each political subdivision and each interlocal organization or other local entity required to submit an accounting report shall:
(a) file and preserve all accounting reports; and
(b) file copies of all accounting reports with the state auditor.
(2) Copies of the accounting reports are open to inspection during regular office hours by any interested persons, where the accounting reports are filed.
(3) The state auditor shall have access to all accounting report work papers created under this chapter.
(1) Except for political subdivisions that do not receive or expend public funds, the state auditor shall adopt guidelines, qualifications criteria, and procurement procedures for use in the procurement of audit services for all entities that are required by Section 51-2a-201 to cause an accounting report to be made.
(2) The state auditor shall follow the notice, hearing, and publication requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(3) The state auditor shall:
(a) review the accounting report submitted to the state auditor under Section 51-2a-201; and
(b) if necessary, conduct additional inquiries or examinations of financial statements of the entity submitting that information.
(4) The governing board of each entity required by Section 51-2a-201 to submit an accounting report to the state auditor's office shall comply with the guidelines, criteria, and procedures established by the state auditor.
(5) Each fifth year, the state auditor shall:
(a) review the dollar criteria established in Section 51-2a-201 to determine if they need to be increased or decreased; and
(b) if the state auditor determines that they need to be increased or decreased, notify the Legislature of that need.
(6)
(a) The state auditor may require a higher level of accounting report than is required under Section 51-2a-201.
(b) The state auditor shall:
(i) develop criteria under which a higher level of accounting report may be required; and
(ii) provide copies of those criteria to entities required to analyze and report under Section 51-2a-201.
(7) This section does not apply to a nonprofit corporation that submits an accounting report under Section 51-2a-201.5.
(8) The state auditor shall adopt a policy to monitor compliance with Subsection 78A-7-120(7).
(1) If a political subdivision, interlocal organization, or other local entity does not comply with the accounting report requirements of Section 51-2a-201, the state auditor may:
(a) withhold allocated state funds to pay the cost of the accounting report, in accordance with Subsection (2); or
(b) prohibit financial access, in accordance with Subsection (3).
(2)
(a) If the state auditor does not prohibit financial access in accordance with Subsection (3), the state auditor may withhold allocated state funds sufficient to pay the cost of the accounting report from any local entity described in Subsection (1).
(b) If no allocated state funds are available for withholding, the local entity shall reimburse the state auditor for any cost incurred in completing the accounting reports required under Section 51-2a-402.
(c) The state auditor shall release the withheld funds if the local entity meets the accounting report requirements either voluntarily or by action under Section 51-2a-402.
(3)
(a) If the state auditor does not withhold funds in accordance with Subsection (2), the state auditor may prohibit any local entity described in Subsection (1) from accessing:
(i) money held by the state; and
(ii) money held in an account of a financial institution by:
(A) contacting the entity's financial institution and requesting that the institution prohibit access to the account; or
(B) filing an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, requesting an order of the court to prohibit a financial institution from providing the entity access to the account.
(b) The state auditor shall remove the prohibition on accessing funds described in Subsection (3)(a) if the local entity meets the accounting report requirements either voluntarily or by action under Section 51-2a-402.
(4) The state auditor may take the action described in Subsection (3) in regard to revenue generated by a county's imposition of a transient room tax under Section 59-12-301 or a tourism, recreation, cultural, convention, and airport facilities tax under Section 59-12-603 if, after completing the analysis and determination required by Subsection 17-78-704(4)(a)(i), the state auditor and the Office of the Legislative Fiscal Analyst determine by consensus that the county's written report does not sufficiently demonstrate that the county is expending revenue in accordance with the requirements of Sections 17-78-702, 59-12-301, and 59-12-603.
(1) The state auditor shall make, or shall cause an accounting report to be made, of any entity that does not comply with the accounting report requirements as provided in Title 51, Chapter 2a, Part 2, Accounting Reports.
(2) The state auditor shall contract with a licensed certified public accountant to complete the accounting report.
(1) The General Fund shall be reimbursed by the entity for which an audit, review, or compilation are in whole or in part performed, whenever the state auditor or legislative auditor general is required by law or constitutional provision to perform that audit, review, or compilation or cause that audit, review, or compilation to be made for any office, department, division, board, agency, commission, council, authority, institution, hospital, school, college, university, or other instrumentality of the state or any of its political subdivisions for nonappropriated activities, including associated students' accounts, auxiliary enterprise funds, nonprofit corporations, governmental nonprofit corporations, contracts with the federal government, federal grants-in-aid, and federal assistance programs.
(2)
(a) The reimbursement amount shall be a pro rata share of that auditor's total cost, based upon a time-spent factor.
(b) An audit includes an audit of state-appropriated funds.
(i) If state-appropriated funds are not involved in the accounting report, the reimbursement may not be less than the average hourly cost of the operations of that auditor's office nor more than the average rate attainable from certified public accounting firms performing similar services for this state.
(ii) Reimbursement charges may be negotiated with that auditor's office within these limitations.
(1) As used in this section, "agency" means each officer, board, commission, institution, department, division, agency, and other similar instrumentality of the state of Utah.
(2) Except as provided under Section 53H-8-502, or through the receipt of a written variance from the state treasurer, each agency shall deposit daily, if practicable, but no later than once every three banking days, all collections of state money and other public funds with:
(a) the state treasurer; or
(b) a qualified depository for the credit of the state.
(3) The state treasurer may make policies governing the reporting and remitting of these funds.
(1) As used in this section:
(a) "Officer" means each:
(i) county treasurer, county auditor, county assessor, county clerk, clerk of the district court, city treasurer, city clerk, justice court judge; and
(ii) other officer of a political subdivision.
(b) "Political subdivision" means a county, city, town, school district, special district, and special service district.
(2)
(a) Each officer shall deposit all public funds daily, if practicable, but no later than once every three banking days.
(b) Each officer shall deposit all public funds only in qualified depositories unless the public funds need to be deposited in a bank outside Utah in order to provide for:
(i) payment of maturing bonds or other evidences of indebtedness; or
(ii) payment of the interest on bonds or other evidences of indebtedness.
(3)
(a)
(i) Each officer shall require all checks to be made payable to the office of the officer receiving funds or to the political subdivision's treasurer.
(ii) An officer may not accept a check unless it is made payable to the office of the officer receiving funds or to the political subdivision's treasurer.
(b) Each officer shall deposit all money the officer collects into an account controlled by the political subdivision's treasurer.
(4)
(a) Except as provided in Subsection (4)(b) and unless a shorter time for depositing funds is otherwise required by law, each political subdivision that has collected funds that are due to the state or to another political subdivision of the state shall, on or before the tenth day of each month, pay all of those funds that were receipted during the last month:
(i) to a qualified depository for the credit of the appropriate public treasurer; or
(ii) to the appropriate public treasurer.
(b) Property tax collections, or privilege tax collections directed by statute to be treated as property tax collections, shall be apportioned and paid according to Section 59-2-1365.
This chapter is known as the "Funds Consolidation Act."
(1) Each administrative unit of state government shall comply with this chapter, which establishes the state's fiscal procedures for state government funds.
(2) Except when in conflict with constitutional and statutory provisions, each administrative unit of state government shall apply generally accepted accounting principles and fiscal procedures.
(3) The Legislature may establish funds in addition to those required by the Constitution.
(4) Federal grants and other revenues, which must remain restricted according to the terms under which they are received, are governed by the specific provisions in this chapter.
(5) The Division of Finance shall establish procedures applicable to the administration and collection of taxes, licenses, fees, and all other forms of revenue to allow them to be credited directly into the funds for which they are designated.
(6) The Division of Finance and each administrative unit of state government shall account for general government revenues and functions in the governmental funds.
(7) The Legislature shall review all general governmental programs and functions, regardless of the sources of revenue available to the various departments, institutions, or agencies.
As used in this chapter:
(1) "Account groups" means a self-balancing set of accounts used to establish accounting control and accountability for the state's general fixed assets and general long-term obligations.
(2) "Accrual basis" means the basis of accounting under which revenues are recorded when earned and expenditures are recorded when they result in liabilities for benefits received, even though the receipt of the revenue or payment of the expenditures may take place, in whole or in part, in another accounting period.
(3) "Activity" means a specific and distinguishable line of work performed by one or more organizational components of a governmental unit to accomplish a function for which the governmental unit is responsible.
(4) "Appropriation" means a legislative authorization to make expenditures and to incur obligations for specific purposes.
(5) "Budgetary accounts" means those accounts necessary to reflect budgetary operations and conditions, such as estimated revenues, appropriations, and encumbrances.
(6) "Cash basis" means the basis of accounting under which revenues are recorded when received in cash and expenditures are recorded when paid.
(7) "Dedicated credit" means:
(a) revenue that is required by law or by the contractual terms under which the revenue is accepted, to be expended for specified activities; and
(b) revenue that is appropriated by provisions of law to the department, institution, or agency that assessed the revenue, to be expended for the specified activities.
(8) "Encumbrances" means obligations in the form of purchase orders, contracts, or salary commitments that are chargeable to an appropriation and for which a part of the appropriation is reserved. Encumbrances cease when paid or when the actual liability is set up.
(9)
(a) "Expenditures" means decreases in net financial resources from other than interfund transfers, refundings of general long-term capital debt, and other items indicated by GASB.
(b) "Expenditures" may include current operating expenses, debt service, capital outlays, employee benefits, earned entitlements, and shared revenues.
(10)
(a) "Financial resources" means assets that are obtained or controlled as a result of past transactions or events that in the normal course of operations will become cash.
(b) "Financial resources" includes cash, claims to cash such as taxes receivable, and claims to goods or services such as prepaids.
(11) "Fiscal period" means any period at the end of which a governmental unit determines its financial position and the results of its operations.
(12) "Function" means a group of related activities aimed at accomplishing a major service or regulatory program for which a governmental unit is responsible.
(13) "Fund" means an independent fiscal and accounting entity with a self-balancing set of accounts, composed of financial resources and other assets, all related liabilities and residual equities or balances and changes in those resources, assets, liabilities, and equities that, when recorded, are segregated for the purpose of carrying on specific activities or attaining certain objectives, according to special regulations, restrictions, or limitations.
(14) "Fund accounts" means all accounts necessary to set forth the financial operations and financial position of a fund.
(15) "GASB" means the Governmental Accounting Standards Board that is responsible for accounting standards used by public entities.
(16)
(a) "Governmental fund" means funds used to account for the acquisition, use, and balances of expendable financial resources and related liabilities using a measurement focus that emphasizes the flow of financial resources.
(b) "Governmental fund" includes the following types: General Fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.
(17) "Lapse," as applied to appropriations, means the automatic termination of an unexpended appropriation.
(18) "Liabilities" are the probable future sacrifices of economic benefits, arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future.
(19) "Net financial resources" means:
(a) the difference between the amount of a governmental fund's financial resources and liabilities; and
(b) the fund balance of a governmental fund.
(20) "Postemployment" means that period of time following:
(a) the last day worked by an employee as a result of his long-term disability; or
(b) the date that an employee identifies as the date on which the employee intends to retire or terminate from state employment.
(21) "Postemployment benefits" means benefits earned by employees that will not be paid until postemployment, including unused vacation leave, unused converted sick leave, sick leave payments, and health and life insurance benefits as provided in Section 63A-17-501.
(22) "Proprietary funds" means those funds or subfunds that show actual financial position and the results of operations, such as actual assets, liabilities, reserves, fund balances, revenues, and expenses.
(23) "Restricted revenue" means revenue that is required by law to be expended only:
(a) for specified activities; and
(b) to the amount of the legislative appropriation.
(24) "Revenue" means the increase in ownership equity during a designated period of time that is recognized as earned.
(25) "Subfund" means a restricted account, established within an independent fund, that has a self-balancing set of accounts to restrict revenues, expenditures, or the fund balance.
(26) "Surplus" means the excess of the assets of a fund over its liabilities and restricted fund equity.
(27) "Unappropriated surplus" means that portion of the surplus of a given fund that is not segregated for specific purposes.
(28) "Unrestricted revenue" means revenue of a fund that may be expended by legislative appropriation for functions authorized in the provisions of law that establish each fund.
(1)
(a)
(i) The funds enumerated in this section are established as major fund types.
(ii) All resources and financial transactions of Utah state government shall be accounted for within one of these major fund types.
(b)
(i) All funds or subfunds shall be consolidated into one of the state's major fund types.
(ii) Where a specific statute requires that a fund or account be established, that fund or account shall be accounted for as an individual fund, subfund, or account within the major fund type to meet generally accepted accounting principles.
(iii) Existing and new activities of state government authorized by the Legislature shall be accounted for within the framework of the major fund types established in this section.
(c) The Division of Finance shall determine the accounting classification that complies with generally accepted accounting principles for all funds, subfunds, or accounts created by the Legislature.
(d)
(i) Major fund types shall be added by amending this chapter.
(ii) Whenever a new act creates or establishes a fund, subfund, or account without amending this chapter, the reference to a fund, subfund, or account in the new act shall be classified within one of the major fund types established by this section.
(2) Major Fund Type Titles:
(a) General Fund;
(b) Special Revenue Funds;
(c) Capital Projects Funds;
(d) Debt Service Funds;
(e) Permanent Funds;
(f) Enterprise Funds;
(g) Internal Service Funds;
(h) Fiduciary Funds; and
(i) Discrete Component Unit Funds.
(3) The General Fund shall receive all revenues and account for all expenditures not otherwise provided for by law in any other fund.
(4) Special Revenue Funds are used to account for and report proceeds of specific revenue sources that are restricted or committed to be expended for a specified purpose.
(a) The Income Tax Fund is a Special Revenue Fund that:
(i) receives all revenues from taxes on intangible property or from a tax on income; and
(ii) is designated for public and higher education.
(b) The Transportation Fund is a Special Revenue Fund that accounts for all revenues that are required by law to be expended for highway purposes.
(c)
(i) An Expendable Special Revenue Fund is a Special Revenue Fund created by legislation or contractual relationship with parties external to the state that:
(A) identifies specific revenues collected from fees, taxes, dedicated credits, donations, federal funds, or other sources;
(B) defines the use of the money in the fund for a specific function of government or program within an agency; and
(C) delegates spending authority or authorization to use the fund's assets to a governing board, administrative department, or other officials as defined in the enabling legislation or contract establishing the fund.
(ii) An Expendable Special Revenue Fund may only be created by contractual relationship with external parties when the sources of revenue for the fund are donated revenues or federal revenues.
(iii) Expendable Special Revenue Funds are subject to annual legislative review by the appropriate legislative appropriations subcommittee.
(5)
(a) Capital Projects Funds account for financial resources to be expended for the acquisition or construction of capital outlays, including the acquisition or construction of a capital facility and other capital assets. Capital Projects Funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments.
(b) The Transportation Investment Fund of 2005 is a Capital Projects Fund that accounts for revenues that are required by law to be expended for the maintenance, construction, reconstruction, or renovation of certain state and federal highways.
(6) Debt Service Funds account for the accumulation of resources for, and the payment of, the principal and interest on general long-term obligations.
(7) Permanent Funds account for assets that are legally restricted to the extent that only earnings, and not principal, may be used for a specific purpose.
(8) Enterprise Funds are designated to account for the following:
(a) operations, financed and operated in a manner similar to private business enterprises, where the Legislature intends that the costs of providing goods or services to the public are financed or recovered primarily through user charges;
(b) operations where the Legislature requires periodic determination of revenues earned, expenses incurred, and net income;
(c) operations for which a fee is charged to external users for goods or services; or
(d) operations that are financed with debt that is secured solely by a pledge of the net revenues from fees and charges of the operations.
(9) Internal Service Funds account for the financing of goods or services provided by one department, division, or agency to other departments, divisions, or agencies of the state, or to other governmental units, on a cost-reimbursement basis.
(10)
(a) Fiduciary Funds account for assets held by the state as trustee or agent for individuals, private organizations, or other governmental units.
(b) Pension Trust Funds, Investment Trust Funds, Private-Purpose Trust Funds, and Custodial Funds are Fiduciary Funds.
(11) Discrete Component Unit Funds account for the financial resources used to operate the state's colleges and universities and other discrete component units.
The Utah Housing Corporation is exempt from this chapter.
The Division of Finance shall, when necessary, establish funds or subfunds, including budgetary and proprietary accounting funds or subfunds within the framework of the major fund types established by this chapter.
(1) The Division of Finance shall:
(a) use generally accepted accounting principles applicable to governmental units in:
(i) its accounting procedures; and
(ii) its reports of the state's financial position and results of operations in each fiscal period; and
(b) note any deviation for budget purposes in the state's financial statements.
(2) Unless otherwise required by generally accepted accounting principles, the following specific procedures shall be implemented:
(a) The Division of Finance shall use the basis of accounting established by GASB for financial reporting of each fund type.
(b) The Division of Finance shall:
(i) calculate the liabilities associated with postemployment benefits by applying:
(A) GASB standards as they become available; or
(B) appropriate standards available for private business if GASB standards are not available;
(ii) recognize all liabilities associated with postemployment benefits in a separate fund for budget purposes and in the General Fund or other funds as required by GASB for reporting purposes;
(iii) provide for an ongoing labor additive beginning in the budget request for fiscal year 1995 to charge all federal, state, or other programs at a rate sufficient to cover the annual change in the postemployment benefits liabilities of the separate budget fund; and
(iv) provide for ongoing payments against the postemployment liabilities budget fund as employees qualify for receiving the postemployment benefits.
(c) The Division of Finance shall post receipts of revenues and other resources of each fund when collected directly to the fund designated to receive them.
(d) The Division of Finance shall use budgetary accounts to:
(i) account for budgetary funds to the extent necessary to reflect the budget position and budget operations; and
(ii) account for the remaining funds when administrative expenses of the remaining funds are subject to appropriations, in order to fully reflect the various budgetary commitments as provided by law.
(e) The Division of Finance shall prepare statements of revenues and expenditures in a form that accurately reflects the results of operations for a particular fiscal period.
(f) The Division of Finance shall determine:
(i) all costs associated with all internal service funds that are eligible for federal reimbursement; and
(ii) all costs that are required to be included in the funds to comply with generally accepted accounting principles.
(g)
(i) All costs currently borne by a fund or an account that is not an internal service fund that should be allocated to an internal service fund may be charged as an expense to the internal service fund, paid to the fund bearing the costs, and recorded as interfund revenue in that fund.
(ii) The Division of Finance may transfer the interfund revenue recorded in funds or accounts that are not internal service funds to the internal service fund as contributed working capital.
(h) The Division of Finance shall record revenue in the various funds and accounts in accordance with generally accepted accounting principles.
(i)
(i) The Division of Finance and each administrative unit of state government shall record accrued revenue net of any liabilities for revenue refunds as required by Division of Finance policy.
(ii) Accrued revenue may be used to offset postemployment benefit liabilities and other liabilities of the state.
The revenues and other resources of the governmental funds are subject to legislative review and appropriation for each fiscal period.
(1) Direct or indirect references to the word "fund," or any other synonymous word contained in the Utah Code Annotated 1953, that is used to identify a separate accounting entity, means a fund account or subfund except where that fund meets the definition of a major fund type according to generally accepted accounting principles.
(2) The following terms and all other terms similar in meaning, except when they meet the definition of a fund in accordance with generally accepted accounting principles, mean a subfund or account within the funds established by this chapter: "special funds"; "separate funds"; "departmental funds"; "association funds"; "trust," such as "in trust" or "held in trust"; "deposits," such as "security deposits" or "certificates of deposit"; "reserves," such as "special reserves," "contingent reserves," and "reserve funds"; "accounts," such as "special accounts" or "clearing accounts"; and "collections," such as "departmental collections" or "dedicated credits."
(3) Provisions of law governing the assessment and collection of the state's various taxes, licenses, permits, fees, and other charges and provisions controlling the expenditures of those revenues remain in force and are undisturbed by the provisions of this chapter.
(4) Provisions of law that specify that the balance in a fund reverts or is closed out to another fund means that the balance in that fund reverts to the unappropriated surplus account of the governmental fund in which that fund is placed.
(5) Provisions of law that specify that the balance in a fund does not lapse or otherwise become part of the state General Fund means that the balance in that fund does not lapse or otherwise become part of the unappropriated surplus account of the fund in which that fund is placed.
This chapter shall be known and may be cited as the "State Money Management Act."
(1) Except as provided in Subsection (2), the following funds are exempt from this chapter:
(a) funds invested in accordance with the participating employees' designation or direction pursuant to a public employees' deferred compensation plan established and operated in compliance with Section 457 of the Internal Revenue Code of 1986, as amended;
(b) funds of the Utah State Retirement Board;
(c) funds of the Utah Housing Corporation;
(d) endowment funds of higher education institutions, including funds of the Higher Education Student Success Endowment, created in Section 53H-8-402;
(e) permanent and other land grant trust funds established pursuant to the Utah Enabling Act and the Utah Constitution;
(f) the State Post-Retirement Benefits Trust Fund;
(g) the funds of the Utah Educational Savings Plan;
(h) funds of the permanent state trust fund created by and operated under Utah
Constitution, Article XXII, Section 4;
(i) the funds in the Navajo Trust Fund;
(j) the funds in the Radioactive Waste Perpetual Care and Maintenance Account;
(k) the funds in the Employers' Reinsurance Fund;
(l) the funds in the Uninsured Employers' Fund;
(m) the Utah State Developmental Center Long-Term Sustainability Fund, created in Section 26B-1-331;
(n) the funds in the Risk Management Fund created in Section 63A-4-201;
(o) the Utah fund of funds created in Section 63N-6-401;
(p) the funds deposited into the Utah Homes Investment Program from the Transportation Infrastructure General Fund Support Subfund created in Section 72-2-134;
(q) subject to Subsection 67-4-19(2), the portion of the funds in the following accounts invested by the state treasurer in precious metals:
(i) the State Disaster Recovery Restricted Account, created in Section 53-2a-603;
(ii) the General Fund Budget Reserve Account, created in Section 63J-1-312;
(iii) the Income Tax Fund Budget Reserve Account, created in Section 63J-1-313; and
(iv) the Medicaid Growth Reduction and Budget Stabilization Account, created in Section 63J-1-315;
(r) except as provided in Section 11-13-533, the funds of a public agency insurance mutual as that term is defined in Subsection 31A-1-103(7)(a);
(s) the State Sovereignty Fund created in Section 51-13-201; and
(t) the funds in the Opioid Litigation Proceeds Fund, created in Section 51-9-801.
(2) Except for the funds of the Utah State Retirement Board and the Utah Educational Savings Plan, the funds described in Subsection (1) are not exempt from Subsections 51-7-14(2) and (3).
(3) Notwithstanding Title 52, Chapter 4, Open and Public Meetings Act, a public body that administers a fund described in Subsection (1) may hold a closed meeting to discuss the sale or purchase of identifiable securities, investment funds, or investment contracts.
(4) A paper, electronic, or other depiction or record of information relating to investment activities of a fund described in Subsection (1) is not subject to Title 63G, Chapter 2, Government Records Access and Management Act.
As used in this chapter:
(1) "Agent" means the same as that term is defined in Section 61-1-13.
(2) "Certified dealer" means:
(a) a primary reporting dealer recognized by the Federal Reserve Bank of New York who is certified by the director as having met the applicable criteria of council rule; or
(b) a broker dealer who:
(i) has and maintains an office and a resident registered principal in the state;
(ii) meets the capital requirements established by council rules;
(iii) meets the requirements for good standing established by council rule; and
(iv) is certified by the director as meeting quality criteria established by council rule.
(3) "Certified investment adviser" means a federal covered adviser, as defined in Section 61-1-13, or an investment adviser, as defined in Section 61-1-13, who is certified by the director as having met the applicable criteria of council rule.
(4) "Commissioner" means the commissioner of financial institutions.
(5) "Council" means the State Money Management Council created by Section 51-7-16.
(6) "Covered bond" means a publicly placed debt security issued by a bank, other regulated financial institution, or a subsidiary of either that is secured by a pool of loans that remain on the balance sheet of the issuer or its subsidiary.
(7) "Director" means the director of the Utah State Division of Securities of the Department of Commerce.
(8)
(a) "Endowment funds" means gifts, devises, or bequests of property of any kind donated to a higher education institution from any source.
(b) "Endowment funds" does not mean money used for the general operation of a higher education institution that is received by the higher education institution from:
(i) state appropriations;
(ii) federal contracts;
(iii) federal grants;
(iv) private research grants; and
(v) tuition and fees collected from students.
(9) "First tier commercial paper" means commercial paper rated by at least two nationally recognized statistical rating organizations in the highest short-term rating category.
(10) "Funds functioning as endowments" means funds, regardless of source, whose corpus is intended to be held in perpetuity by formal institutional designation according to the institution's policy for designating those funds.
(11) "GASB" or "Governmental Accounting Standards Board" means the Governmental Accounting Standards Board that is responsible for accounting standards used by public entities.
(12) "Hard put" means an unconditional sell-back provision or a redemption provision applicable at issue to a note or bond, allowing holders to sell their holdings back to the issuer or to an equal or higher-rated third party provider at specific intervals and specific prices determined at the time of issuance.
(13) "Higher education institution" means the institutions specified in Section 53H-1-102.
(14) "Investment adviser representative" means the same as that term is defined in Section 61-1-13.
(15)
(a) "Investment agreement" means any written agreement that has specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate.
(b) "Investment agreement" includes any agreement to supply investments on one or more future dates.
(16) "Local government" means a county, municipality, school district, special district under Title 17B, Limited Purpose Local Government Entities - Special Districts, special service district under Title 17D, Chapter 1, Special Service District Act, or any other political subdivision of the state.
(17) "Market value" means market value as defined in the Master Repurchase Agreement.
(18) "Master Repurchase Agreement" means the current standard Master Repurchase Agreement approved by the Public Securities Association or by any successor organization.
(19) "Maximum amount" means, with respect to qualified depositories, the total amount of:
(a) deposits in excess of the federal deposit insurance limit; and
(b) nonqualifying repurchase agreements.
(20) "Money market mutual fund" means an open-end managed investment fund:
(a) that complies with the diversification, quality, and maturity requirements of Rule 2a-7 or any successor rule of the Securities and Exchange Commission applicable to money market mutual funds; and
(b) that assesses no sales load on the purchase of shares and no contingent deferred sales charge or other similar charges, however designated.
(21) "Nationally recognized statistical rating organization" means an organization that has been designated as a nationally recognized statistical rating organization by the Securities and Exchange Commission's Division of Market Regulation.
(22) "Nonqualifying repurchase agreement" means a repurchase agreement evidencing indebtedness of a qualified depository arising from the transfer of obligations of the United States Treasury or other authorized investments to public treasurers that is:
(a) evidenced by a safekeeping receipt issued by the qualified depository;
(b) included in the depository's maximum amount of public funds; and
(c) valued and maintained at market value plus an appropriate margin collateral requirement based upon the term of the agreement and the type of securities acquired.
(23) "Operating funds" means current balances and other funds that are to be disbursed for operation of the state government or any of its boards, commissions, institutions, departments, divisions, agencies, or other similar instrumentalities, or any county, city, school district, political subdivision, or other public body.
(24) "Permanent funds" means funds whose principal may not be expended, the earnings from which are to be used for purposes designated by law.
(25) "Permitted depository" means any out-of-state financial institution that meets quality criteria established by rule of the council.
(26) "Public funds" means money, funds, and accounts, regardless of the source from which the money, funds, and accounts are derived, that are owned, held, or administered by the state or any of its boards, commissions, institutions, departments, divisions, agencies, bureaus, laboratories, or other similar instrumentalities, or any county, city, school district, political subdivision, or other public body.
(27)
(a) "Public money" means "public funds."
(b) "Public money," as used in Article VII, Sec. 15, Utah Constitution, means the same as "state funds."
(28) "Public treasurer" includes the state treasurer and the official of any state board, commission, institution, department, division, agency, or other similar instrumentality, or of any county, city, school district, charter school, political subdivision, or other public body who has the responsibility for the safekeeping and investment of any public funds.
(29) "Public Treasurers' Investment Fund" means the public fund created for any public funds transferred by a public treasurer to the state treasurer in accordance with Section 51-7-5.
(30) "Qualified depository" means a Utah depository institution or an out-of-state depository institution, as those terms are defined in Section 7-1-103, that is authorized to conduct business in this state under Section 7-1-702 or Title 7, Chapter 19, Acquisition of Failing Depository Institutions or Holding Companies, whose deposits are insured by an agency of the federal government and that has been certified by the commissioner of financial institutions as having met the requirements established under this chapter and the rules of the council to be eligible to receive deposits of public funds.
(31) "Qualifying repurchase agreement" means a repurchase agreement evidencing indebtedness of a financial institution or government securities dealer acting as principal arising from the transfer of obligations of the United States Treasury or other authorized investments to public treasurers only if purchased securities are:
(a) delivered to the public treasurer's safekeeping agent or custodian as contemplated by Section 7 of the Master Repurchase Agreement; and
(b) valued and maintained at market value plus an appropriate margin collateral requirement based upon the term of the agreement and the type of securities acquired.
(32) "Reciprocal deposits" means deposits that are initially deposited into a qualified depository and are then redeposited through a deposit account registry service:
(a) in one or more FDIC-insured depository institutions in amounts up to the relevant FDIC-insured deposit limit for a depositor in each depository institution; and
(b) in exchange for reciprocal FDIC-insured deposits made through the deposit account registry service to the qualified depository.
(33) "Securities division" means Utah's Division of Securities created within the Department of Commerce by Section 13-1-2.
(34) "State funds" means:
(a) public money raised by operation of law for the support and operation of the state government; and
(b) all other money, funds, and accounts, regardless of the source from which the money, funds, or accounts are derived, that are owned, held, or administered by the state or any of its boards, commissions, institutions, departments, divisions, agencies, bureaus, laboratories, or other similar instrumentalities.
The fiscal year of the state of Utah shall commence on the first day of July of each year.
(1) Unless otherwise required by the Utah Constitution or applicable federal law, the functions, powers, and duties vested by law in each state officer, board, commission, institution, department, division, agency, or other similar instrumentality relating to the deposit, investment, or reinvestment of public funds, and the purchase, sale, or exchange of investments or securities of, or for, funds or accounts under the control and management of each of these instrumentalities, are transferred to and shall be exercised by the state treasurer, except:
(a) funds assigned to the Utah State Retirement Board for investment under Section 49-11-302;
(b) funds of member institutions of the state system of higher education:
(i) acquired by gift, devise, or bequest, or by federal or private contract or grant;
(ii) derived from student fees or from income from operations of auxiliary enterprises, which fees and income are pledged or otherwise dedicated to the payment of interest and principal of bonds issued by an institution of higher education;
(iii) subject to rules made by the council, under Section 51-7-18, deposited in a foreign depository institution as defined in Section 7-1-103; and
(iv) other funds that are not included in the institution's work program as approved by the Utah Board of Higher Education;
(c) inmate funds as provided in Section 64-13-23 or in Title 64, Chapter 9b, Work Programs for Prisoners;
(d) trust funds established by judicial order;
(e) funds of the Utah Housing Corporation;
(f) endowment funds of higher education institutions; and
(g) the funds of the Utah Educational Savings Plan.
(2) All public funds held or administered by the state or its boards, commissions, institutions, departments, divisions, agencies, or similar instrumentalities and not transferred to the state treasurer as provided by this section shall be:
(a) deposited and invested by the custodian in accordance with this chapter, unless otherwise required by statute or by applicable federal law; and
(b) reported to the state treasurer in a form prescribed by the state treasurer.
(3) Unless otherwise provided by the constitution or laws of this state or by contractual obligation, the income derived from the investment of state money by the state treasurer shall be deposited into and become part of the General Fund.
(1) Any public funds as to which the deposit, investment, or reinvestment is not transferred to the state treasurer by Section 51-7-4, may be transferred to the Public Treasurers' Investment Fund by the public treasurer having responsibility for the control or management of these public funds.
(2) Notwithstanding the transfer, the public treasurer shall retain sufficient funds to cover the cash requirements of the body owning or having control or management of these funds and shall continue to be responsible for the proper collection, deposit, and disbursement of these funds in the manner provided by law.
(3) The public funds transferred or placed under the control or supervision of the state treasurer under this section are subject to all applicable provisions of this chapter and are under the jurisdiction of the state treasurer until the public treasurer withdraws these public funds from the state treasurer.
(4) Withdrawals may be made from time to time on such reasonable notice as the state treasurer may prescribe.
(5) The public treasurer may withdraw all or any part of the public funds originally transferred to the state treasurer, subject to any rules as to the maximum amounts which may be withdrawn at any one time as the state treasurer may reasonably prescribe.
(6) On or before October 31 of each calendar year, the state treasurer shall report to the Political Subdivisions Interim Committee the current balance as of June 30 for each entity that has transferred money to the Public Treasurers' Investment Fund.
(1) The share of public funds of each participating public treasurer who has transferred public funds to the Public Treasurers' Investment Fund, including trust funds invested by the state treasurer under this chapter, shall be calculated not less than quarterly.
(2) Income from investment of these public funds by the state treasurer, including gains or losses from the sale or exchange of investments or other properties, and net of investment fees and other charges assessed according to the schedule established by the state treasurer, shall be allocated to each participating fund on the ratio of each fund's share to the total public funds in the custody of the state treasurer determined on the basis of the average daily balance of each fund.
(1)
(a)
(i) The public treasurer shall have custody of all securities purchased or held and all evidence of deposits and investments of public funds.
(ii) All securities shall be delivered versus payment to the public treasurer or to the treasurer's safekeeping bank.
(b) The public treasurer may deposit any of these securities with a bank or trust company to be held in safekeeping by that custodian.
(c) The provisions of this section do not apply to securities acquired under a nonqualifying repurchase agreement as defined in Section 51-7-3.
(d) The provisions of this section apply to any book-entry-only deposit or security the ownership records of which are maintained with a securities depository, in the Federal Book Entry system authorized by the U.S. Department of Treasury, or in the book-entry records of the issuer, as follows:
(i) the direct ownership of the deposit or security by the public treasurer shall be reflected in the book-entry records and represented by a receipt, confirmation, or statement issued to the public treasurer by the custodian of the book-entry system; or
(ii) the ownership of the deposit or security by the public treasurer's custodial bank or trust company shall be reflected in the book-entry records and the public treasurer's ownership shall be represented by a receipt, confirmation, or statement issued by the custodial bank or trust company.
(2) The public treasurer may maintain accounts with money center banks only for the purposes of settling investment transactions, safekeeping, and collecting those investments.
The state treasurer shall keep for each fund for which investments are made, a separate account, to be designated by name and number, which shall record the individual amounts and the totals of all investments belonging to the fund, and shall credit to each fund not less often than quarterly its allocated share of the income from the investments of pooled funds, and gains or losses from the sale or exchange of pooled investment assets.
The state treasurer shall report not less often than quarterly to each participating state officer, board, commission, institution, department, division, agency, or other similar instrumentality, or political subdivision, the activities, investments, and performance of the state treasurer's office during the preceding period. The accounts of the state treasurer shall be audited annually under the direction of the state auditor. The report of this audit shall be open for inspection by the public in the offices of the state auditor and the state treasurer and a copy of it shall be submitted to the legislature through the Office of the Legislative Fiscal Analyst. The state treasurer is authorized, within the limits of available appropriations, to employ such investment staff and secure such financial, investment, and other technical services the state treasurer considers necessary to properly carry out the state treasurer's responsibilities under this chapter.
(1)
(a) Except as provided in Subsections (1)(b) through (1)(d), a public treasurer shall conduct investment transactions through qualified depositories, certified dealers, or directly with issuers of the investment securities.
(b) A public treasurer may designate a certified investment adviser to make trades on behalf of the public treasurer.
(c) A public treasurer may make a deposit in accordance with Section 53H-8-502 in a foreign depository institution as defined in Section 7-1-103.
(d) The state treasurer is exempt from the requirement to conduct investment transactions through a certified dealer under Subsection (1)(a).
(2) The remaining term to maturity of the investment may not exceed the period of availability of the funds to be invested.
(3) Except as provided in Subsection (4), all public funds shall be deposited or invested in the following assets that meet the criteria of Section 51-7-17:
(a) negotiable or nonnegotiable deposits of qualified depositories;
(b) qualifying or nonqualifying repurchase agreements and reverse repurchase agreements with qualified depositories using collateral consisting of:
(i) Government National Mortgage Association mortgage pools;
(ii) Federal Home Loan Mortgage Corporation mortgage pools;
(iii) Federal National Mortgage Corporation mortgage pools;
(iv) Small Business Administration loan pools;
(v) Federal Agriculture Mortgage Corporation pools; or
(vi) other investments authorized by this section;
(c) qualifying repurchase agreements and reverse repurchase agreements with certified dealers, permitted depositories, or qualified depositories using collateral consisting of:
(i) Government National Mortgage Association mortgage pools;
(ii) Federal Home Loan Mortgage Corporation mortgage pools;
(iii) Federal National Mortgage Corporation mortgage pools;
(iv) Small Business Administration loan pools; or
(v) other investments authorized by this section;
(d) commercial paper that is classified as "first tier" by two nationally recognized statistical rating organizations, which has a remaining term to maturity of:
(i) 270 days or fewer for paper issued under 15 U.S.C. Sec. 77c(a)(3); or
(ii) 365 days or fewer for paper issued under 15 U.S.C. Sec. 77d(2);
(e) bankers' acceptances that:
(i) are eligible for discount at a Federal Reserve bank; and
(ii) have a remaining term to maturity of 270 days or fewer;
(f) fixed rate negotiable deposits issued by a permitted depository that have a remaining term to maturity of 365 days or fewer;
(g) obligations of the United States Treasury, including United States Treasury bills, United States Treasury notes, and United States Treasury bonds that, unless the funds invested are pledged or otherwise deposited in an irrevocable trust escrow account, have a remaining term to final maturity of:
(i) five years or less;
(ii) if the funds are invested by an institution of higher education as defined in Section 53H-1-101, a city of the first class, or a county of the first class, 10 years or less; or
(iii) if the funds are invested by a reserve fund, as defined in Subsection 31A-1-103(7)(a), 20 years or less;
(h) obligations other than mortgage pools and other mortgage derivative products that:
(i) are issued by, or fully guaranteed as to principal and interest by, the following agencies or instrumentalities of the United States in which a market is made by a primary reporting government securities dealer, unless the agency or instrumentality has become private and is no longer considered to be a government entity:
(A) Federal Farm Credit banks;
(B) Federal Home Loan banks;
(C) Federal National Mortgage Association;
(D) Federal Home Loan Mortgage Corporation;
(E) Federal Agriculture Mortgage Corporation; and
(F) Tennessee Valley Authority; and
(ii) unless the funds invested are pledged or otherwise deposited in an irrevocable trust escrow account, have a remaining term to final maturity of:
(A) five years or less;
(B) if the funds are invested by an institution of higher education as defined in Section 53H-1-101, a city of the first class, or a county of the first class, 10 years or less; or
(C) if the funds are invested by a reserve fund, as defined in Subsection 31A-1-103(7)(a), 20 years or less;
(i) fixed rate corporate obligations that:
(i) are rated "A" or higher or the equivalent of "A" or higher by two nationally recognized statistical rating organizations;
(ii) are senior unsecured or secured obligations of the issuer, excluding covered bonds;
(iii) are publicly traded; and
(iv) have a remaining term to final maturity of 15 months or less or are subject to a hard put at par value or better, within 365 days;
(j) tax anticipation notes and general obligation bonds of the state or a county, incorporated city or town, school district, or other political subdivision of the state, including bonds offered on a when-issued basis without regard to the limitations described in Subsection (7) that, unless the funds invested are pledged or otherwise deposited in an irrevocable trust escrow account, have a remaining term to final maturity of:
(i) five years or less;
(ii) if the funds are invested by an institution of higher education as defined in Section 53H-1-101, a city of the first class, or a county of the first class, 10 years or less; or
(iii) if the funds are invested by a reserve fund, as defined in Subsection 31A-1-103(7)(a), 20 years or less;
(k) bonds, notes, or other evidence of indebtedness of a county, incorporated city or town, school district, or other political subdivision of the state that are payable from assessments or from revenues or earnings specifically pledged for payment of the principal and interest on these obligations, including bonds offered on a when-issued basis without regard to the limitations described in Subsection (7) that, unless the funds invested are pledged or otherwise deposited in an irrevocable trust escrow account, have a remaining term to final maturity of:
(i) five years or less;
(ii) if the funds are invested by an institution of higher education as defined in Section 53H-1-101, a city of the first class, or a county of the first class, 10 years or less; or
(iii) if the funds are invested by a reserve fund, as defined in Subsection 31A-1-103(7)(a), 20 years or less;
(l) shares or certificates in a money market mutual fund;
(m) variable rate negotiable deposits that:
(i) are issued by a qualified depository or a permitted depository;
(ii) are repriced at least semiannually; and
(iii) have a remaining term to final maturity not to exceed three years;
(n) variable rate securities that:
(i)
(A) are rated "A" or higher or the equivalent of "A" or higher by two nationally recognized statistical rating organizations;
(B) are senior unsecured or secured obligations of the issuer, excluding covered bonds;
(C) are publicly traded;
(D) are repriced at least semiannually; and
(E) have a remaining term to final maturity not to exceed three years or are subject to a hard put at par value or better, within 365 days;
(ii) are not mortgages, mortgage-backed securities, mortgage derivative products, or a security making unscheduled periodic principal payments other than optional redemptions;
(o) reciprocal deposits made in accordance with Subsection 51-7-17(4); and
(p) negotiable brokered certificates of deposit made in accordance with Subsection 51-7-17(4).
(4) The following public funds are exempt from the requirements of Subsection (3):
(a) a local government other post-employment benefits trust fund under Section 51-7-12.2; and
(b) a nonnegotiable deposit made in accordance with Section 53H-8-502 in a foreign depository institution as defined in Section 7-1-103.
(5) If any of the deposits authorized by Subsection (3)(a) are negotiable or nonnegotiable large time deposits issued in amounts of $100,000 or more, the interest shall be calculated on the basis of the actual number of days divided by 360 days.
(6) A public treasurer may maintain fully insured deposits in demand accounts in a federally insured nonqualified depository only if a qualified depository is not reasonably convenient to the entity's geographic location.
(7) Except as provided under Subsections (3)(j) and (k), the public treasurer shall ensure that all purchases and sales of securities are settled within:
(a) 15 days of the trade date for outstanding issues; and
(b) 30 days for new issues.
(1) A certified investment adviser may not make any investments that are inconsistent with this chapter or rules of the council.
(2) Except as provided in Subsection (3), a certified investment adviser acting on behalf of a public treasurer shall conduct investment transactions only through qualified depositories, certified dealers, or directly with issuers of the investment securities.
(3) Subject to rules of the council, a certified investment adviser may use the adviser's own approved list of brokers and dealers.
(1) As used in this section:
(a) "Local Government OPEB Trust Fund" or "Local Government Other Post-Employment Benefits Trust Fund" means money set aside by a local government to fund future payments of benefits, other than pensions, to a former employee who is qualified for the benefits.
(b) "Local Government OPEB Trust Fund" does not include money for deposit in the Utah State Retirement Investment Fund created under Section 49-11-301, or money for deposit in the Post-Retirement Benefits Trust Fund created under Section 67-19d-201.
(2) All local government OPEB trust fund money in the custody of a local government treasurer shall be established in a separate trust fund in accordance with standards established by the Governmental Accounting Standards Board.
(3) Money in a local government OPEB trust fund may be deposited or invested only in the following assets that meet the criteria of Section 51-7-17:
(a) a deposit or investment authorized under Section 51-7-11;
(b) indexed funds of an open-end diversified management investment company established under the Investment Companies Act of 1940; or
(c) indexed funds that are administered by the state treasurer in accordance with Subsection (4).
(4) The state treasurer may:
(a) develop and offer a variety of asset allocation options for money in a local government OPEB trust fund;
(b) review for efficiency, the asset allocation options offered under Subsection (4)(a) as needed; and
(c) charge an administrative fee of not more than .005 percent per month of the assets managed for cost incurred in the management of funds within an asset allocation option.
(1) The provisions of this section apply to all funds of:
(a) higher education institutions, other than endowment funds, that are not transferred to the state treasurer under Section 51-7-4; and
(b) public education foundations established under Section 53E-3-403.
(2)
(a) Proceeds of general obligation bond issues and all funds pledged or otherwise dedicated to the payment of interest and principal of general obligation bonds issued by or for the benefit of the institution shall be invested according to the requirements of:
(i) Section 51-7-11 and the rules of the council; or
(ii) the terms of the borrowing instruments applicable to those bonds and funds if those terms are more restrictive than Section 51-7-11.
(b)
(i) The public treasurer shall invest the proceeds of bonds other than general obligation bonds issued by or for the benefit of the institution and all funds pledged or otherwise dedicated to the payment of interest and principal of bonds other than general obligation bonds according to the terms of the borrowing instruments applicable to those bonds.
(ii) If no provisions governing investment of bond proceeds or pledged or dedicated funds are contained in the borrowing instruments applicable to those bonds or funds, the public treasurer shall comply with the requirements of Section 51-7-11 in investing those proceeds and funds.
(c) All other funds in the custody or control of any of those institutions or public education foundations shall be invested as provided in Section 51-7-11 and the rules of the council.
(3)
(a) Each institution shall make monthly reports detailing the deposit and investment of funds in its custody or control to its institutional council and the Utah Board of Higher Education.
(b) The state auditor may conduct or cause to be conducted an annual audit of the investment program of each institution.
(c) The Utah Board of Higher Education shall:
(i) require whatever internal controls and supervision are necessary to ensure the appropriate safekeeping, investment, and accounting for all funds of these institutions; and
(ii) submit annually to the governor and the Legislature a summary report of all investments by institutions under its jurisdiction.
(1) Subject to Subsection (2), a person selecting investments authorized by Sections 51-7-11 and 51-7-13 shall:
(a) select investments not for speculation but for investment; and
(b) consider:
(i) the probable safety of the capital;
(ii) the probable benefits to be derived;
(iii) the probable duration for which that investment may be made;
(iv) the investment objectives specified in Section 51-7-17; and
(v) the investment portfolio as a whole.
(2) A public treasurer shall:
(a) invest public funds in accordance with the prudent investor rule established in Title 75B, Chapter 2, Part 9, Uniform Prudent Investor Act;
(b) make public fund investment decisions with the sole purpose of maximizing the risk-adjusted return on the investments; and
(c) to the extent practicable:
(i)
(A) retain the right to vote investor proxies; or
(B) if the investments are commingled with another investor's funds, request the right to vote investor proxies; and
(ii) ensure proxy voting is exercised to maximize risk-adjusted returns for the exclusive benefit of beneficiaries.
(3) A public treasurer may sell or otherwise dispose of, at less than cost, any security or investment in which public funds under the public treasurer's jurisdiction have been invested if that sale or other disposition tends to maximize the benefits that may be derived from the changed investment.
(4)
(a) A public treasurer shall make proxy voting records available to the state treasurer upon the state treasurer's request.
(b) The state treasurer is subject to the same restrictions on disclosure of the proxy voting records as the originating public treasurer.
(1)
(a) The state treasurer, county, city, and town treasurers, the clerk or treasurer of each school district, and other public treasurers that the council designates by rule shall obtain crime insurance as described in Section 17-66-105 in an amount of not less than that established by the council.
(b) The council shall base the minimum crime insurance coverage amount as described in Section 17-66-105 on the amount of public funds normally in the treasurer's possession or control.
(2)
(a) A public treasurer shall file a written report with the council on or before January 31 and July 31 of each year.
(b) The report shall contain:
(i) the information about the deposits and investments of that public treasurer during the preceding six months ending December 31 and June 30, respectively, that the council requires by rule; and
(ii) information detailing the nature and extent of interest rate contracts permitted by Subsection 51-7-17(3).
(c) A public treasurer shall make copies of the report available to the public at the public treasurer's office during normal business hours.
(1)
(a) There is created a State Money Management Council composed of five members appointed or reappointed by the governor after consultation with the state treasurer and with the advice and consent of the Senate in accordance with Title 63G, Chapter 24, Part 2, Vacancies.
(b) The members of the council shall be qualified by training and experience in the field of investment or finance as follows:
(i) at least one member, but not more than two members, shall be experienced in the banking business;
(ii) at least one member, but not more than two members, shall be an elected treasurer;
(iii) at least one member, but not more than two members, shall be an appointed public treasurer; and
(iv) two members, but not more than two members, shall be experienced in the field of investment.
(2)
(a) Except as required by Subsection (2)(b), the council members shall be appointed for terms of four years.
(b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of council members are staggered so that approximately half of the council is appointed every two years.
(c) When a vacancy occurs in the membership for any reason, the governor shall, with the advice and consent of the Senate in accordance with Title 63G, Chapter 24, Part 2, Vacancies, appoint a replacement for the unexpired term.
(d) All members shall serve until their successors are appointed and qualified.
(3)
(a) The council members shall elect a chair and vice chair.
(b) The state treasurer shall serve as executive secretary of the council without vote.
(4)
(a) The council shall meet at least once per quarter at a regular date to be fixed by the council and at other times at the call of the chair, the state treasurer, or any two members of the council.
(b) Three members are a quorum for the transaction of business.
(c) Actions of the council require a vote of a majority of those present.
(d) All meetings of the council and records of its proceedings are open for inspection by the public at the state treasurer's office during regular business hours except for:
(i) reports of the commissioner of financial institutions concerning the identity, liquidity, or financial condition of qualified depositories and the amount of public funds each is eligible to hold; and
(ii) reports of the director concerning the identity, liquidity, or financial condition of certified dealers.
(5)
(a) Each member of the council shall file a sworn or written statement with the lieutenant governor that discloses any position or employment or ownership interest that the member has in any financial institution or investment organization.
(b) Each member shall file the statement required by this Subsection (5) when the member becomes a member of the council and when substantial changes in the member's position, employment, or ownership interests occur.
(c) Each member shall comply with the conflict of interest provisions described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.
(6) A member may not receive compensation or benefits for the member's service, but may receive per diem and travel expenses in accordance with:
(a) Section 63A-3-106;
(b) Section 63A-3-107; and
(c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
(1) As used in this section:
(a) "Affiliate" means, in relation to a provider:
(i) an entity controlled, directly or indirectly, by the provider;
(ii) an entity that controls, directly or indirectly, the provider; or
(iii) an entity directly or indirectly under common control with the provider.
(b) "Control" means ownership of a majority of the voting power of the entity or provider.
(2)
(a) A public treasurer shall consider and meet the following objectives when depositing and investing public funds:
(i) safety of principal;
(ii) protection of principal during periods of financial market volatility;
(iii) need for liquidity;
(iv) yield on investments;
(v) recognition of the different investment objectives of operating and permanent funds; and
(vi) maturity of investments, so that the maturity date of the investment does not exceed the anticipated date of the expenditure of funds.
(b) A public treasurer shall invest the proceeds of general obligation bond issues, tax anticipation note issues, and funds pledged or otherwise dedicated to the payment of interest and principal of general obligation bonds and tax anticipation notes issued by the state or a political subdivision of the state in accordance with:
(i) Section 51-7-11; or
(ii) the terms of the borrowing instrument applicable to those issues and funds, if those terms are more restrictive than Section 51-7-11.
(c) A public treasurer shall invest the proceeds of bonds other than general obligation bonds and the proceeds of notes other than tax anticipation notes issued by the state or a political subdivision of the state, and all funds pledged or otherwise dedicated to the payment of interest and principal of those notes and bonds:
(i) in accordance with the terms of the borrowing instruments applicable to those bonds or notes; or
(ii) if none of those provisions are applicable, in accordance with Section 51-7-11.
(d) A public treasurer may invest proceeds of bonds, notes, or other money pledged or otherwise dedicated to the payment of debt service on the bonds or notes in investment agreements if:
(i) the investment is permitted by the terms of the borrowing instrument applicable to those bonds or notes or the borrowing instrument authorizes the investment as an investment permitted by the State Money Management Act;
(ii) either the provider of the investment agreement or an entity fully, unconditionally, and irrevocably guaranteeing the provider's obligations under the investment agreement has received a rating of:
(A) at least "AA-" from S&P or "Aa3" from Moody's for investment agreements having a term of more than one year; or
(B) at least "A-1+" from S&P or "P-1" from Moody's for investment agreements having a term of one year or less;
(iii) the investment agreement contains provisions approved by the public treasurer that provide that, in the event of a rating downgrade of the provider or its affiliate guarantor, as applicable, by either S&P or Moody's below the "A" category or its equivalent, or a rating downgrade of a nonaffiliate guarantor by either S&P or Moody's below the "AA" category or its equivalent, the provider must, within 30 days after receipt of notice of the downgrade:
(A) collateralize the investment agreement with direct obligations of, or obligations guaranteed by, the United States of America having a market value at least equal to 105% of the amount of the money invested, valued at least quarterly, and deposit the collateral with a third-party custodian or trustee selected by the public treasurer; or
(B) terminate the agreement without penalty and repay all of the principal invested and the interest accrued on the investment to the date of termination; and
(iv) the public treasurer receives an enforceability opinion from the legal counsel of the investment agreement provider and, if there is a guarantee, an enforceability opinion from the legal counsel of the guarantor with respect to the guarantee.
(3)
(a) As used in this Subsection (3), "interest rate contract" means interest rate exchange contracts, interest rate floor contracts, interest rate ceiling contracts, or other similar contracts authorized by resolution of the governing board or issuing authority, as applicable.
(b) A public treasurer may, with the approval of the state treasurer:
(i) enter into interest rate contracts that the governing board or issuing authority determines are necessary, convenient, or appropriate for the control or management of debt or for the cost of servicing debt; and
(ii) use its public funds to satisfy its payment obligations under those contracts.
(c) Those contracts:
(i) shall comply with the requirements established by council rules; and
(ii) may contain payment, security, default, termination, remedy, and other terms and conditions that the governing board or issuing authority considers appropriate.
(d) Neither interest rate contracts nor public funds used in connection with these interest rate contracts may be considered a deposit or investment.
(4) A public treasurer shall ensure that all public funds invested in deposit instruments are invested with qualified depositories within Utah, except:
(a) for deposits made in accordance with Section 53H-8-502 in a foreign depository institution as defined in Section 7-1-103;
(b) reciprocal deposits, subject to rules made by the council under Subsection 51-7-18(2);
(c) negotiable brokered certificates of deposit, subject to rules made by the council under Subsection 51-7-18(2); or
(d) if national market rates on instruments of similar quality and term exceed those offered by qualified depositories, investments in out-of-state deposit instruments may be made only with institutions that meet quality criteria set forth by the rules of the council.
(1) The council shall:
(a) advise the state treasurer and other public treasurers about investment policies;
(b) cooperate with the commissioner of financial institutions by promoting measures and rules that will assist in strengthening the banking and credit structure of the state;
(c) at least annually, review the rules adopted under the authority of this chapter that relate to the deposit and investment of public funds;
(d) at least annually, distribute the rules and amendments to rules adopted under the authority of this chapter that relate to the deposit and investment of public funds to all public treasurers; and
(e) provide, at least semiannually, a list of certified dealers that meet criteria established by this chapter and council rules.
(2) The council may:
(a) recommend proposed changes in statutes governing the deposit and investment of public funds to the Legislature;
(b) make rules governing:
(i) the financial reporting requirements of qualified depositories in which public funds may be deposited;
(ii) the conditions and procedures for maintaining and revoking a financial institution's designation as a qualified depository;
(iii) the definition of depository capital;
(iv) the conditions for maintaining deposits at a permitted depository;
(v) the conditions and procedures for maintaining and revoking a primary reporting dealer's or a broker dealer's designation as a certified dealer;
(vi) certified investment advisers who deal with public treasurers, including establishing standards and requirements for the use, qualification, and regulation of certified investment advisers;
(vii) the conditions and procedures for maintaining and revoking a federal covered adviser's or an investment adviser's designation as a certified investment adviser;
(viii) the conditions and procedures by which public treasurers may deposit and invest public funds;
(ix) quality criteria for corporate obligations;
(x) the conditions and procedures by which public entities may use interest rate contracts authorized by Subsection 51-7-17(3); and
(xi) other rules necessary to carry out its functions, powers, duties, and responsibilities under this chapter.
(3) The council may not make rules requiring a qualified depository to pledge or deposit any of its assets in order to secure a deposit of public funds, except that public deposits in excess of the maximum amount shall be collateralized as provided in Subsections 51-7-18.1(5)(b) and (6).
(4) Subject to legislative funding, the state treasurer shall supply qualified staff to the council.
(5) If any rule or act of the council would constitute an infringement upon the state treasurer's constitutional duties and powers to have custody of and invest public money, the conflicting rule or act is advisory and not mandatory.
(1)
(a) The council shall provide a list of qualified depositories to each public treasurer at least semiannually.
(b) The list shall include:
(i) the name of each qualified depository; and
(ii) the maximum amount of public funds that each qualified depository is eligible to hold.
(2) In determining the maximum amount of public deposits for a qualified depository, the council may not designate a maximum amount for any qualified depository that is more than twice that depository's capital as defined by council rule.
(3)
(a) The council may require each qualified depository to submit monthly reports to the commissioner of Financial Institutions disclosing the amount of public funds held by the depository at the close of business on a day designated by the council.
(b) The council may also require the qualified depository to include in the report:
(i) information about the character and condition of the qualified depository's assets;
(ii) information about the qualified depository's deposits and other liabilities;
(iii) information about the qualified depository's capital; and
(iv) any other information that the council considers necessary in order for it to fulfill its responsibilities under this chapter.
(c) The council shall require that any reports submitted be verified by the oath or affirmation of the president or vice-president of the qualified depository.
(d) Any officer of a qualified depository who knowingly makes or causes to be made any false statement or report to the council or any false entry in the books or accounts of the qualified depository is guilty of a class A misdemeanor.
(4)
(a) Notwithstanding Section 7-1-802, the commissioner may disclose necessary information about the condition of any qualified depository to the council to assist it in evaluating the eligibility of any qualified depository to receive and hold public funds.
(b) If the secretary of the council or any member of the council discloses confidential information obtained from the commissioner under this subsection, the secretary or council member is guilty of a class A misdemeanor.
(c) If any member of the council discloses confidential information obtained from the commissioner under this subsection, the governor shall remove the council member from the council member's position.
(5) Upon the vote of at least three of the council members, the commissioner shall require any qualified depository to:
(a) surrender deposits of public funds that exceed the amount that the qualified depository may legally hold under authority of this chapter and council rule; or
(b) pledge collateral security for those excess deposits.
(6)
(a) If the commissioner orders the qualified depository to pledge collateral security for the excess deposits, the collateral security pledged shall have a market value determined upon the last day of the month of:
(i) 110% of the amount of the excess deposits, if the collateral consists of obligations of or fully guaranteed by the United States or its agencies as to principal and interest, a segregated earmarked deposit account, or notes, drafts, bills of exchange, or bankers' acceptances that are eligible for rediscount or purchase by a federal reserve bank;
(ii) 120% of the amount of the excess deposits, if the collateral consists of obligations of the state of Utah or any of its political subdivisions; and
(iii) 130% of the amount of the excess deposits, if the collateral consists of obligations of other readily marketable bonds, notes, or debentures.
(b) The qualified depository shall deposit any collateral pledged to secure excess deposits with the state treasurer.
(c) The state treasurer may not release the collateral until the state treasurer has received written confirmation from the commissioner that the qualified depository:
(i) has relinquished the excess deposits; or
(ii) is in compliance with this chapter and council rules.
(7) Any qualified depository that fails to comply with a written order issued by the commissioner under authority of this section within 15 days of receipt of the order is ineligible to receive or renew any deposits or investments of public funds until it receives written authorization to do so from the council.
(8) In addition to the requirements set forth by rule, in order to be certified as a qualified depository as defined in Section 51-7-3, a depository institution shall pay to the commissioner an annual certification fee of $250 due April 1 of each year.
(1) The council may:
(a) require a public treasurer to prepare and file a written report in a form prescribed by the council containing the information required by this section; and
(b) specify that the report will contain the information required by this section for any date.
(2) The council shall require the report to include information:
(a) specifying the amount of public funds in the public treasurer's possession or control;
(b) detailing the nature and extent of the deposit and investment of those funds;
(c) detailing the rate of return on each deposit or investment; and
(d) detailing the nature and extent of interest rate contracts authorized by Subsection 51-7-17(3).
(3) The public treasurer shall file the report with the council within 10 days after the day on which the public treasurer receives the council's request.
(4) A public treasurer shall make copies of a report required by this section available for inspection by the public at the public treasurer's office during normal business hours.
(1)
(a) The council shall provide a list of certified dealers to each public treasurer at least semiannually.
(b) The list of certified dealers shall include:
(i) the name of each certified dealer; and
(ii) the name of each agent authorized by the certified dealer to conduct investment transactions with the public treasurers.
(2) In addition to the requirements set forth by rule, in order to become a certified dealer as defined in Section 51-7-3, a dealer shall pay to the director an annual certification fee of $500 due on or before April 30 of each year.
(1)
(a) The council shall provide a list of certified investment advisers to each public treasurer at least semiannually.
(b) The list of certified investment advisers shall include:
(i) the name of each certified investment adviser; and
(ii) the name of each investment adviser representative authorized by the certified investment adviser to provide investment advisory services to public treasurers.
(2) In addition to the requirements set forth by rule, in order to become a certified investment adviser as defined in Section 51-7-3, a certified investment adviser shall pay to the director an annual certification fee of $500 due on or before April 30 of each year.
(1) The commissioner of financial institutions may, with the approval of the council:
(a) increase for a period not to exceed 90 days the amount of public funds any qualified depository may hold whenever additional deposit resources are required in connection with the flotation, conversion, or redemption of a bond issue, for initial deposits of tax collections or newly received federal money; and
(b) authorize a qualified depository to hold deposits of public funds in excess of the maximum to which the depository would otherwise be entitled to hold under the rules of the council, if the council finds that such excess deposits are necessary or advisable to promote the economic welfare of the area in which the depository is located.
(2) Any increase in deposits of public funds authorized by the commissioner under Subsections (1)(a) or (1)(b) shall be secured by a pledge of collateral as prescribed in Subsection 51-7-18.1(5)(b) to the extent that such increased deposit exceeds the then current maximum for insurance of accounts by the applicable federal deposit insuring agency.
(1) Any public treasurer who willfully violates the deposit and investment provisions of this chapter is guilty of a class A misdemeanor.
(2) Any public treasurer who knowingly makes or causes to be made a false statement or report to the council is guilty of a class A misdemeanor.
(1) An intentional violation by a certified investment adviser of Section 51-7-7, 51-7-11, or 51-7-11.5, or any rule or order under this chapter is punishable by a civil penalty of:
(a) $1,000 for each day of noncompliance for the investment adviser; and
(b) $5,000 for each day of noncompliance for the firm or institution where the certified investment adviser is employed.
(2) In addition to any other penalty for a criminal violation of this chapter, the sentencing judge may impose any penalty or remedy provided for in Subsection 51-7-22.5(1)(b).
(3) Funds collected under Subsection (1) shall be deposited in the General Fund.
(1) Whenever it appears to the council that any person has engaged, is engaging, or is about to engage in any act or practice constituting a violation of this chapter or any rule issued under authority of this chapter:
(a) the council may bring an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, or a court with jurisdiction in another state, to enjoin the acts or practices and to enforce compliance with this chapter or any rule under this chapter; and
(b) upon a proper showing in an action brought under this section, the court may:
(i) issue a permanent or temporary, prohibitory, or mandatory injunction;
(ii) issue a restraining order or writ of mandamus or other extraordinary writ;
(iii) enter a declaratory judgment;
(iv) order disgorgement;
(v) order rescission;
(vi) impose a fine of not more than $50,000 for each violation of the chapter; or
(vii) provide any other relief that the court considers appropriate.
(2) An indictment or information may not be returned nor may a civil complaint be filed under this chapter more than five years after discovery of the alleged violation.
(1) Any investment held by a public treasurer that as of June 30, 2015, is not in compliance with the provisions of this chapter is subject to review by the council.
(2)
(a) No later than July 31, 2015, a public treasurer who holds an investment described in Subsection (1) shall provide the council a written report that outlines a reasonable plan to bring the investment into compliance.
(b) A plan described in Subsection (2)(a) is subject to annual review by the council.
(c) The council may authorize, with substantial justification, an exception to the five-year maturity requirements of Section 51-7-11.
(1)
(a) Each certified investment adviser or certified dealer who transacts securities business with a public treasurer in violation of this chapter or any rule made or order issued under authority of this chapter is liable to the public treasurer.
(b) The public treasurer may either sue to recover either:
(i) damages, if the public treasurer no longer owns the security; or
(ii) the sum of the following, less the amount of any income received on the security upon the tender of the security:
(A) the consideration paid for the security;
(B) interest at 12% per year from the date of payment;
(C) costs; and
(D) reasonable attorney's fees.
(c) Damages are the amount that would be recoverable upon a tender less the value of the security when the public treasurer disposed of it and interest at 12% per year from the date of disposition.
(2) If the court finds that the violation was reckless or indifferent, the court may, in a suit brought under Subsection (1), award an amount equal to three times the consideration paid for the security before adding interest, costs, and attorney's fees and before subtracting the income received from the sale of the security.
(3)
(a) Each person who directly or indirectly controls a seller or buyer or investment adviser is liable under Subsection (1).
(b) Except as provided in Subsection (3)(c), the following are liable jointly and severally with and to the same extent as the seller or purchaser:
(i) each partner, officer, or director of a seller or buyer;
(ii) each person occupying a similar status or performing similar functions;
(iii) each employee of a seller or buyer who materially aids in the sale or purchase;
(iv) each certified investment adviser who materially aids in providing the advice; and
(v) each broker-dealer or agent who materially aids or abets in the sale.
(c) The nonseller or nonpurchaser is not liable under Subsection (3)(b) if the nonseller or nonpurchaser proves that he did not know or should have known, and in exercise of reasonable care could not or should not have known, of the existence of the facts that caused the alleged liability.
(4) An action to enforce any liability under this section must begin within five years of the act or transaction constituting the violation or two years after the discovery by the public treasurer of the facts constituting the violation, whichever occurs later.
(5) A person may not base any suit on a contract if:
(a) the person made or engaged in the performance of the contract in violation of this chapter or any rule or order issued under the authority of this chapter; or
(b) the person acquired any purported right under the contract with knowledge of the facts by reason of which the making of the contract or the performance of the contract was a violation of this chapter or any rule or order issued under the authority of this chapter.
(6) A condition, stipulation, or provision binding a treasurer acquiring a security to waive compliance with this chapter or a rule made or order issued under authority of this chapter is void.
(7) The rights and remedies provided by this section are in addition to any other rights or remedies that may exist at law or in equity.
This chapter is known as "Investment of Permanent State Trust Fund Money."
As used in this chapter, "permanent state trust fund" means the permanent state trust fund created by and operated under Utah Constitution, Article XXII, Section 4.
(1) The state treasurer shall:
(a) invest money in the permanent state trust fund with the primary goal of providing for the stability, income, and growth of the permanent state trust fund's principal;
(b) in making investment decisions, consider:
(i) general economic conditions;
(ii) the possible effect of inflation and deflation;
(iii) the role that each investment or course of action plays within the overall permanent state trust fund portfolio;
(iv) the expected total return from income and the appreciation of capital; and
(v) needs for liquidity, regularity of income, and preservation or appreciation of capital; and
(c) diversify the investments of the permanent state trust fund, unless the state treasurer reasonably determines that the purposes of the permanent state trust fund are better served without diversifying.
(2) Nothing in this section requires a specific outcome in investing.
(3) The state treasurer may deduct any administrative costs incurred in managing permanent state trust fund assets from earnings before transferring them to the General Fund.
(4)
(a) The state treasurer may contract with professional asset managers to assist in the investment of assets of the permanent state trust fund.
(b) The treasurer may provide compensation to asset managers only from assets generated by the permanent state trust fund's investments.
(1) The state treasurer shall invest and manage the permanent state trust fund assets as a prudent investor would, by:
(a) considering the purposes, terms, distribution requirements, and other circumstances of the permanent state trust fund; and
(b) exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor.
(2) In determining whether the state treasurer has met the standard of care of a prudent investor, a finder of fact shall:
(a) consider the state treasurer's investment decision or action in light of the facts and circumstances existing at the time of the decision or action, and not by hindsight; and
(b) evaluate the state treasurer's investment and management decisions respecting individual assets:
(i) not in isolation, but in the context of the permanent state trust fund portfolio as a whole; and
(ii) as a part of an overall investment strategy that has risk and return objectives reasonably suited to the permanent state trust fund.
This chapter is known as the "Uniform Prudent Management of Institutional Funds Act."
As used in this chapter:
(1) "Charitable purpose" means the relief of poverty, the advancement of education or religion, the promotion of health, the promotion of governmental purposes, and any other purpose the achievement of which is beneficial to the community.
(2)
(a) "Endowment fund" means an institutional fund, or any part of an institutional fund, not wholly expendable by the institution on a current basis under the terms of a gift instrument.
(b) "Endowment fund" does not include assets of an institution designated by the institution as an endowment fund for its own use.
(3) "Gift instrument" means a record or records, including an institutional solicitation, under which property is granted to, transferred to, or held by an institution as an institutional fund.
(4)
(a) "Governing board" means the body responsible for the management of an institution or of an institutional fund.
(b) "Governing board" means, for a higher education institution, the board of trustees of the higher education institution.
(5) "Higher education institution" means the institutions specified in Section 53H-1-102.
(6) "Institution" means:
(a) a person, other than an individual, organized and operated exclusively for charitable purposes;
(b) a government or a governmental subdivision, agency, or instrumentality to the extent that it holds funds exclusively for a charitable purpose; and
(c) a trust that had both charitable and noncharitable interests, after all noncharitable interests have terminated.
(7)
(a) "Institutional fund" means a fund held by an institution exclusively for charitable purposes.
(b) "Institutional fund" does not include:
(i) program-related assets;
(ii) a fund held for an institution by a trustee that is not an institution;
(iii) a fund in which a beneficiary that is not an institution has an interest, other than an interest that could arise upon violation or failure of the purposes of the fund; or
(iv) operating funds.
(8) "Manager" means either:
(a) the state treasurer; or
(b) a higher education institution that accepts the responsibility for the management of institutional funds of a different higher education institution.
(9) "Operating funds" means money used for the general operation of a higher education institution that is received by the higher education institution from:
(a) state appropriations;
(b) government contracts;
(c) government grants; or
(d) tuition and fees collected from students.
(10) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, instrumentality, or any other legal or commercial entity.
(11) "Program-related asset" means an asset held by an institution primarily to accomplish a charitable purpose of the institution and not primarily for appreciation or the production of income.
(12) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(1) Subject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and the purposes of the institutional fund.
(2) In addition to complying with the duty of loyalty imposed by law other than this chapter, each person responsible for managing and investing an institutional fund shall manage and invest the fund in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.
(1) In managing and investing an institutional fund, an institution:
(a) may incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution; and
(b) shall make a reasonable effort to verify facts relevant to the management and investment of the fund.
(2) An institution may pool two or more institutional funds for purposes of management and investment.
(3) Except as otherwise provided by a gift instrument, the following rules apply:
(a) In managing and investing an institutional fund, the following factors, if relevant, must be considered:
(i) general economic conditions;
(ii) the possible effect of inflation or deflation;
(iii) the expected tax consequences, if any, of investment decisions or strategies;
(iv) the role that each investment or course of action plays within the overall investment portfolio of the fund;
(v) the expected total return from income and the appreciation of investments;
(vi) other resources of the institution;
(vii) the needs of the institution and the fund to make distributions and to preserve capital; and
(viii) an asset's special relationship or special value, if any, to the charitable purposes of the institution.
(b) Management and investment decisions about an individual asset must be made not in isolation but rather in the context of the institutional fund's portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.
(c) Except as otherwise provided by law other than this chapter, an institution may invest in any kind of property or type of investment consistent with the standards of this section.
(d) An institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.
(e) Within a reasonable time after receiving property, an institution shall make and implement decisions concerning the retention or disposition of the property or to rebalance a portfolio, in order to bring the institutional fund into compliance with the purposes, terms, distribution requirements, and other circumstances of the institution and the requirements of this chapter.
(f) A person who has special skills or expertise, or is selected in reliance upon the person's representation that the person has special skills or expertise, has a duty to use those special skills or that expertise in managing and investing institutional funds.
(1)
(a) Subject to the intent of a donor expressed in a gift instrument and to Subsection (3), an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines to be prudent for the uses, benefits, purposes, and duration for which the endowment fund is established.
(b) Unless stated otherwise in a gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution.
(c) In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors:
(i) the duration and preservation of the endowment fund;
(ii) the purposes of the institution and the endowment fund;
(iii) general economic conditions;
(iv) the possible effect of inflation or deflation;
(v) the expected total return from income and the appreciation of investments;
(vi) other resources of the institution; and
(vii) the investment policy of the institution.
(2) To limit the authority to appropriate for expenditure or accumulate under Subsection (1), a gift instrument must specifically state the limitation.
(3) Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only "income," "interest," "dividends," or "rents, issues, or profits," or "to preserve the principal intact," or similar words:
(a) create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and
(b) do not otherwise limit the authority to appropriate for expenditure or accumulate under Subsection (1).
(1) A higher education institution may only transfer the management of any institutional fund to a manager if the transferring higher education institution:
(a) retains sufficient funds to cover its cash requirements; and
(b) continues to be responsible for the proper collection, deposit, and disbursement of the institutional fund in the manner provided by law.
(2) The institutional funds transferred as provided in this section are subject to all applicable provisions of this chapter and are under the jurisdiction of the manager until the transferring higher education institution withdraws these institutional funds from the manager.
(3) A higher education institution may withdraw all or any part of the institutional funds transferred to the manager, subject to any rules established by the manager governing notice or limits on the amount of institutional funds that may be withdrawn.
(1) The Utah Board of Higher Education shall:
(a) establish asset allocations for the institutional funds;
(b) in consultation with the commissioner of higher education, establish guidelines for investing the funds; and
(c) establish a written policy governing conflicts of interest.
(2)
(a) A higher education institution may not invest its institutional funds in violation of the Utah Board of Higher Education's guidelines unless the Utah Board of Higher Education approves an investment policy that has been adopted by the higher education institution's board of trustees.
(b) A higher education institution shall establish a written policy governing conflicts of interest that complies with Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act.
(3)
(a) The board of trustees of a higher education institution may adopt:
(i) an investment policy to govern the investment of the higher education institution's institutional funds; and
(ii) a conflict of interest policy.
(b) The investment policy shall:
(i) define the groups, and the responsibilities of those groups, that must be involved with investing the institutional funds;
(ii) ensure that the groups defined under Subsection (3)(b)(i) at least include the board of trustees, an investment committee, institutional staff, and a custodian bank;
(iii) create an investment committee that includes not more than two members of the board of trustees and no less than two independent investment management professionals;
(iv) determine an appropriate risk level for the institutional funds;
(v) establish allocation ranges for asset classes considered suitable for the institutional funds;
(vi) determine prudent diversification of the institutional funds; and
(vii) establish performance objectives and a regular review process.
(4) Each higher education institution shall make monthly reports detailing the deposit and investment of funds in the institution's custody or control to:
(a) the institution of higher education board of trustees; and
(b) the Utah Board of Higher Education.
(5) The state auditor may conduct or cause to be conducted an annual audit of the investment program of each higher education institution.
(6) The Utah Board of Higher Education shall submit an annual report to the governor and the Legislature summarizing all investments by higher education institutions under its jurisdiction.
(1) The appropriation for expenditure in any year of an amount greater than seven percent of the fair market value of an endowment fund, calculated on the basis of market values determined at least quarterly and averaged over a period of not less than three years immediately preceding the year in which the appropriation for expenditure was made, creates a rebuttable presumption of imprudence.
(2) For an endowment fund in existence for fewer than three years, the fair market value of the endowment fund shall be calculated for the period of time the endowment fund has been in existence.
(3) This section does not:
(a) apply to an appropriation for expenditure permitted under law other than this chapter or the gift instrument; or
(b) create a presumption of prudence for an appropriation for expenditure of an amount less than or equal to seven percent of the fair market value of the endowment fund.
(1)
(a) Subject to any specific limitation set forth in a gift instrument or in law other than this chapter, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances.
(b) An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in:
(i) selecting an agent;
(ii) establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and
(iii) periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(2) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.
(3) An institution that complies with Subsection (1) is not liable for the decisions or actions of an agent to which the function was delegated.
(4) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.
(5) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law other than this chapter.
(1)
(a) With the donor's consent in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund.
(b) A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.
(2)
(a) If a restriction contained in a gift instrument on the management or investment of an institutional fund becomes impracticable or wasteful or impairs the management or investment of the fund, or if because of circumstances not anticipated by the donor a modification of a restriction will further the purposes of the fund, the court, upon application of the institution, may modify the restriction.
(b) The institution shall notify the attorney general, who must be given an opportunity to be heard.
(c) To the extent practicable, any modification must be made in accordance with the donor's probable intention.
(3)
(a) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument.
(b) The institution shall notify the attorney general, who must be given an opportunity to be heard.
(4) If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, 60 days after notification to the attorney general, may release or modify the restriction, in whole or part, if:
(a) the institutional fund subject to the restriction has a total value of less than $25,000;
(b) more than 20 years have elapsed since the fund was established; and
(c) the institution uses the property in a manner the institution reasonably determines to be consistent with the charitable purposes expressed in the gift instrument.
Compliance with this chapter is determined in light of the facts and circumstances existing at the time a decision is made or action is taken, and not by hindsight.
(1) This chapter applies to institutional funds existing on or established after April 30, 2007.
(2) As applied to institutional funds existing on April 30, 2007, this chapter governs only decisions made or actions taken after that date.
This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101 of that act, 15 U.S.C. Section 7001(a), or authorize electronic delivery of any of the notices described in Section 103 of that act, 15 U.S.C. Section 7003(b).
In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
This chapter is known as the "Funds and Accounts Act."
(1) There is created within the General Fund a restricted account known as the "Tobacco Settlement Restricted Account."
(2) The account shall earn interest.
(3) The account shall consist of:
(a) on and after July 1, 2007, 60% of all funds of every kind that are received by the state that are related to the settlement agreement that the state entered into with leading tobacco manufacturers on November 23, 1998; and
(b) interest earned on the account.
(4) To the extent that funds will be available for appropriation in a given fiscal year, those funds shall be appropriated from the account in the following order:
(a) $66,600 to the Office of the Attorney General for ongoing enforcement and defense of the Tobacco Settlement Agreement;
(b) $18,500 to the State Tax Commission for ongoing enforcement of business compliance with the Tobacco Tax Settlement Agreement;
(c) $11,022,900 to the Department of Health and Human Services for:
(i) children in the Medicaid program created in Title 26B, Chapter 3, Health Care - Administration and Assistance, and the Children's Health Insurance Program created in Section 26B-3-902; and
(ii) for restoration of dental benefits in the Children's Health Insurance Program;
(d) $3,277,100 to the Department of Health and Human Services for alcohol, tobacco, and other drug prevention, reduction, cessation, and control programs that promote unified messages and make use of media outlets, including radio, newspaper, billboards, and television, and with a preference in funding given to tobacco-related programs;
(e) $193,700 to the Administrative Office of the Courts and $2,325,400 to the Department of Health and Human Services for the statewide expansion of the drug court program;
(f) $4,000,000 to the Utah Board of Higher Education for the University of Utah Health Sciences Center to benefit the health and well-being of Utah citizens through in-state research, treatment, and educational activities; and
(g) any remaining funds as directed by the Legislature through appropriation.
(1) Until July 1, 2003, 50% of all funds of every kind that are received by the state that are related to the settlement agreement that the state entered into with leading tobacco manufacturers on November 23, 1998, shall be deposited into the permanent state trust fund created by and operated under Utah Constitution, Article XXII, Section 4.
(2) On and after July 1, 2003, and until July 1, 2004, 20% of the funds of any kind received by the state that are related to the settlement agreement that the state entered into with leading tobacco manufacturers shall be deposited into the permanent state trust fund created by and operated under Utah Constitution, Article XXII, Section 4.
(3) On and after July 1, 2004, and until July 1, 2005, 30% of all funds of any kind received by the state that are related to the settlement agreement that the state entered into with leading tobacco manufacturers shall be deposited into the General Fund Budget Reserve Account created in Section 63J-1-312.
(4) On and after July 1, 2005, and until July 1, 2007, 25% of all funds of any kind received by the state that are related to the settlement agreement that the state entered into with leading tobacco manufacturers shall be deposited into the permanent state trust fund created by and operated under Utah Constitution, Article XXII, Section 4.
(5) On and after July 1, 2007, 40% of all funds of every kind that are received by the state that are related to the settlement agreement that the state entered into with leading tobacco manufacturers on November 23, 1998, shall be deposited into the General Fund and the remaining funds deposited as directed.
(6) Funds in the permanent state trust fund shall be deposited or invested in accordance with Chapter 7b, Investment of Permanent State Trust Fund Money.
(7)
(a) In accordance with Utah Constitution, Article XXII, Section 4, the interest and dividends earned annually from the permanent state trust fund shall be deposited in the General Fund. There shall be transferred on an ongoing basis from the General Fund to the permanent state trust fund created under Utah Constitution, Article XXII, Section 4, an amount equal to 50% of the interest and dividends earned annually from the permanent state trust fund. The amount transferred into the fund under this Subsection (7)(a) shall be treated as principal.
(b) Any annual interest or dividends earned from the permanent state trust fund that remain in the General Fund after Subsection (7)(a) may be appropriated by the Legislature.
(c) Any realized or unrealized gains or losses on investments in the permanent state trust fund shall remain in the permanent state trust fund.
(8) This section does not apply to funds deposited under Part 3, Deposit or Credit of Certain Severance Taxes and Interest and Dividends, into the permanent state trust fund.
(1) To be eligible to receive funding under this part for a tobacco prevention, reduction, cessation, or control program, an organization, whether private, governmental, or quasi-governmental, shall:
(a) submit a request to the Department of Health and Human Services containing the following information:
(i) for media campaigns to prevent or reduce smoking, the request shall demonstrate sound management and periodic evaluation of the campaign's relevance to the intended audience, particularly in campaigns directed toward youth, including audience awareness of the campaign and recollection of the main message;
(ii) for school-based education programs to prevent and reduce youth smoking, the request shall describe how the program will be effective in preventing and reducing youth smoking;
(iii) for community-based programs to prevent and reduce smoking, the request shall demonstrate that the proposed program:
(A) has a comprehensive strategy with a clear mission and goals;
(B) provides for committed, caring, and professional leadership; and
(C) if directed toward youth:
(I) offers youth-centered activities in youth accessible facilities;
(II) is culturally sensitive, inclusive, and diverse;
(III) involves youth in the planning, delivery, and evaluation of services that affect them; and
(IV) offers a positive focus that is inclusive of all youth; and
(iv) for enforcement, control, and compliance program, the request shall demonstrate that the proposed program can reasonably be expected to reduce the extent to which tobacco products and electronic cigarette products, as those terms are defined in Section 76-9-1101, are available to individuals under 21 years old;
(b) agree, by contract, to file an annual written report with the Department of Health and Human Services that contains the following:
(i) the amount funded;
(ii) the amount expended;
(iii) a description of the program or campaign and the number of adults and youth who participated;
(iv) specific elements of the program or campaign meeting the applicable criteria set forth in Subsection (1)(a); and
(v) a statement concerning the success and effectiveness of the program or campaign;
(c) agree, by contract, to not use any funds received under this part directly or indirectly, to:
(i) engage in any lobbying or political activity, including the support of, or opposition to, candidates, ballot questions, referenda, or similar activities; or
(ii) engage in litigation with any tobacco manufacturer, retailer, or distributor, except to enforce:
(A) the provisions of the Master Settlement Agreement;
(B) Title 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and Nicotine Products;
(C) Sections 26B-7-514 through 26B-7-520; and
(D) Title 77, Chapter 39, Sale of Tobacco or Alcohol to Under Age Persons; and
(d) agree, by contract, to repay the funds provided under this part if the organization:
(i) fails to file a timely report as required by Subsection (1)(b); or
(ii) uses any portion of the funds in violation of Subsection (1)(c).
(2) The Department of Health and Human Services shall review and evaluate the success and effectiveness of any program or campaign that receives funding pursuant to a request submitted under Subsection (1). The review and evaluation:
(a) shall include a comparison of annual smoking trends;
(b) may be conducted by an independent evaluator; and
(c) may be paid for by funds appropriated from the account for that purpose.
(3) An organization that fails to comply with the contract requirements set forth in Subsection (1) shall:
(a) repay the state as provided in Subsection (1)(d); and
(b) be disqualified from receiving funds under this part in any subsequent fiscal year.
(4) The attorney general shall be responsible for recovering funds that are required to be repaid to the state under this section.
(5) Nothing in this section may be construed as applying to funds that are not appropriated under this part.
As used in this part, "permanent state trust fund" means the permanent state trust fund created under Utah Constitution, Article XXII, Section 4.
(1) As used in this section, "aggregate annual revenue" means the aggregate annual revenue collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining, after subtracting the amounts required to be distributed under Sections 59-5-116 and 59-5-119.
(2) After making the deposits of oil and gas severance tax revenue as required under Sections 59-5-116 and 59-5-119, the Division of Finance shall make the credit required under Subsection (3).
(3) Beginning on July 1, 2016, the Division of Finance shall credit to the permanent state trust fund the following aggregate annual revenue:
(a) 25% of the first $50,000,000 of aggregate annual revenue;
(b) 50% of the next $50,000,000 of aggregate annual revenue; and
(c) 75% of the aggregate annual revenue that exceeds $100,000,000.
(4) The state treasurer shall invest and separately account for the earnings on funds that are credited to the permanent state trust fund under this section.
(5)
(a) In accordance with Utah Constitution, Article XXII, Section 4, the interest and dividends earned annually on revenue from severance taxes that are credited to the permanent state trust fund shall be credited to the General Fund.
(b) Interest and dividends earned on revenue from severance taxes that are credited to the General Fund in accordance with Subsection (5)(a) shall be credited to the State Reinvestment Restricted Account created in Section 51-9-1102.
(1) As used in this section:
(a) "Aggregate annual revenue" means the aggregate annual revenue collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining, after subtracting the amounts required to be distributed under Sections 51-9-305, 59-5-116, and 59-5-119 and under Subsection 59-5-202(5)(c).
(b) "Aggregate annual mining revenue" means the aggregate annual revenue collected in a fiscal year from taxes imposed under Title 59, Chapter 5, Part 2, Mining Severance Tax, after subtracting the amounts required to be distributed under Section 51-9-305 and under Subsection 59-5-202(5)(c).
(c) "Aggregate annual oil and gas revenue" means the aggregate annual revenue collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax, after subtracting the amounts required to be distributed under Sections 51-9-305, 59-5-116, and 59-5-119.
(d) "Average aggregate annual revenue" means the three-year rolling average of the aggregate annual revenue collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining:
(i) after subtracting the amounts required to be distributed under Sections 51-9-305, 59-5-116, and 59-5-119 and under Subsection 59-5-202(5)(c); and
(ii) ending in the fiscal year immediately preceding the fiscal year of a deposit required by this section.
(e) "Average aggregate annual mining revenue" means the three-year rolling average of the aggregate annual revenue collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Part 2, Mining Severance Tax:
(i) after subtracting the amounts required to be distributed under Section 51-9-305 and under Subsection 59-5-202(5)(c); and
(ii) ending in the fiscal year immediately preceding the fiscal year of a deposit required by this section.
(f) "Average aggregate annual oil and gas revenue" means the three-year rolling average of the aggregate annual revenue collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax:
(i) after subtracting the amounts required to be distributed under Sections 51-9-305, 59-5-116, and 59-5-119; and
(ii) ending in the fiscal year immediately preceding the fiscal year of a deposit required by this section.
(2) After making the deposits of oil and gas severance tax revenue as required under Sections 59-5-116 and 59-5-119 and making the credits under Section 51-9-305, for a fiscal year beginning on or after July 1, 2021, the State Tax Commission shall annually make the following deposits:
(a) to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in Section 19-2a-106, the following average aggregate annual revenue:
(i) 2.75% of the first $50,000,000 of the average aggregate annual revenue;
(ii) 1% of the next $50,000,000 of the average aggregate annual revenue; and
(iii) .5% of the average aggregate annual revenue that exceeds $100,000,000;
(b) to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created in Section 19-5-126, the following average aggregate annual revenue:
(i) .4% of the first $50,000,000 of the average aggregate annual revenue;
(ii) .15% of the next $50,000,000 of the average aggregate annual revenue; and
(iii) .08% of the average aggregate annual revenue that exceeds $100,000,000;
(c) to the Division of Oil, Gas, and Mining Restricted Account, created in Section 40-6-23, the following:
(i)
(A) 11.5% of the first $50,000,000 of the average aggregate annual mining revenue;
(B) 3% of the next $50,000,000 of the average aggregate annual mining revenue; and
(C) 1% of the average aggregate annual mining revenue that exceeds $100,000,000; and
(ii)
(A) 18% of the first $50,000,000 of the average aggregate annual oil and gas revenue;
(B) 3% of the next $50,000,000 of the average aggregate annual oil and gas revenue; and
(C) 1% of the average aggregate annual oil and gas revenue that exceeds $100,000,000; and
(d) to the Utah Geological Survey Restricted Account, created in Section 79-3-403, the following average aggregate annual revenue:
(i) 2.5% of the first $50,000,000 of the average aggregate annual revenue;
(ii) 1% of the next $50,000,000 of the average aggregate annual revenue; and
(iii) .5% of the average aggregate annual revenue that exceeds $100,000,000.
(3) If the money collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining, is insufficient to make the deposits required by Subsection (2), the State Tax Commission shall deposit money collected in the fiscal year as follows:
(a) to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in Section 19-2a-106, the following revenue:
(i) 2.75% of the first $50,000,000 of the aggregate annual revenue;
(ii) 1% of the next $50,000,000 of the aggregate annual revenue; and
(iii) .5% of the aggregate annual revenue that exceeds $100,000,000;
(b) to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created in Section 19-5-126, the following revenue:
(i) .4% of the first $50,000,000 of the aggregate annual revenue;
(ii) .15% of the next $50,000,000 of the aggregate annual revenue; and
(iii) .08% of the aggregate annual revenue that exceeds $100,000,000;
(c) to the Division of Oil, Gas, and Mining Restricted Account, created in Section 40-6-23, the following:
(i)
(A) 11.5% of the first $50,000,000 of the aggregate annual mining revenue;
(B) 3% of the next $50,000,000 of the aggregate annual mining revenue; and
(C) 1% of the aggregate annual mining revenue that exceeds $100,000,000; and
(ii)
(A) 18% of the first $50,000,000 of the aggregate annual oil and gas revenue;
(B) 3% of the next $50,000,000 of the aggregate annual oil and gas revenue; and
(C) 1% of the aggregate annual oil and gas revenue that exceeds $100,000,000; and
(d) to the Utah Geological Survey Restricted Account, created in Section 79-3-403, the following revenue:
(i) 2.5% of the first $50,000,000 of the aggregate annual revenue;
(ii) 1% of the next $50,000,000 of the aggregate annual revenue; and
(iii) .5% of the aggregate annual revenue that exceeds $100,000,000.
(4) The severance tax revenues deposited under this section into restricted accounts for the state agencies specified in Subsection (2) and appropriated from the restricted accounts offset and supplant General Fund appropriations used to pay the costs of programs or projects administered by the state agencies that are primarily related to oil, gas, and mining.
(1)
(a) A surcharge shall be paid on all criminal fines, penalties, and forfeitures imposed by the courts.
(b) The surcharge shall be:
(i) 90% upon conviction of a:
(A) felony;
(B) class A misdemeanor;
(C) violation of Title 41, Chapter 6a, Part 5, Driving Under the Influence and Reckless Driving; or
(D) class B misdemeanor not classified within Title 41, Motor Vehicles, including violation of comparable county or municipal ordinances; or
(ii) 35% upon conviction of any other offense, including violation of county or municipal ordinances not subject to the 90% surcharge.
(c) The Division of Finance shall deposit into the General Fund an amount equal to the amount that the state retains under Section 80-6-304.
(2) The surcharge may not be imposed:
(a) upon nonmoving traffic violations;
(b) upon court orders when the offender is ordered to perform compensatory service work in lieu of paying a fine; and
(c) upon penalties assessed by the juvenile court as part of the nonjudicial adjustment of a case under Section 80-6-304.
(3)
(a) The surcharge and the exceptions under Subsections (1) and (2) apply to all fines, penalties, and forfeitures imposed on juveniles for conduct that would be criminal if committed by an adult.
(b) Notwithstanding Subsection (3)(a), the surcharge does not include amounts assessed or collected separately by juvenile courts for the Juvenile Restitution Account, which is independent of this part and does not affect the imposition or collection of the surcharge.
(4) The surcharge under this section shall be imposed in addition to the fine charged for a civil or criminal offense, and no reduction may be made in the fine charged due to the surcharge imposition.
(5) Fees, assessments, and surcharges related to criminal or traffic offenses shall be authorized and managed by this part rather than attached to particular offenses.
(1) The amount of the surcharge imposed under this part by courts of record shall be collected before any fine and deposited with the state treasurer.
(2) The amount of the surcharge and the amount of criminal fines, penalties, and forfeitures imposed under this part by courts not of record shall be collected concurrently.
(a) As money is collected on criminal fines, penalties, and forfeitures subject to the 90% surcharge, the money shall be divided pro rata so that the local governmental collecting entity retains 53% of the collected money and the state retains 47% of the collected money.
(b) As money is collected on criminal fines, penalties, and forfeitures subject to the 35% surcharge, the money shall be divided pro rata so that the local governmental collecting entity retains 74% of the collected money and the state retains 26% of the collected money.
(c) The court shall deposit with the state treasurer the surcharge portion of all money as it is collected.
(3) Courts of record, courts not of record, and administrative traffic proceedings shall collect financial information to determine:
(a) the total number of cases in which:
(i) a final judgment has been rendered;
(ii) surcharges and fines are paid by partial or installment payment; and
(iii) the judgment is fulfilled by an alternative method upon the court's order; and
(b) the total dollar amounts of surcharges owed to the state and fines owed to the state and county or municipality, including:
(i) waived surcharges;
(ii) uncollected surcharges; and
(iii) collected surcharges.
(4) The courts of record, courts not of record, and administrative traffic proceedings shall report all collected financial information monthly to the Administrative Office of the Courts. The collected information shall be categorized by cases subject to the 90% and 35% surcharge.
(5) The provisions of this section and Section 51-9-401 may not impact the distribution and allocation of fines and forfeitures imposed in accordance with Sections 23A-3-201, 78A-5-110, and 78A-7-120.
(1) There is created a restricted account within the General Fund known as the Children's Legal Defense Account.
(2) The purpose of the Children's Legal Defense Account is to provide for programs that protect and defend the rights, safety, and quality of life of children.
(3)
(a) The Legislature shall appropriate money from the account for the administrative and related costs of the following programs:
(i) implementing the mandatory courses described in Sections 81-4-105 and 81-9-103 and the mediation program for child custody or parent-time;
(ii) implementing the use of guardians ad litem in accordance with Sections 78A-2-703, 78A-2-705, 78A-2-803, and 78B-3-102;
(iii) the training of attorney guardians ad litem and volunteers as provided in Section 78A-2-803;
(iv) implementing and administering the Expedited Parent-time Enforcement Program as provided in Section 81-9-102; and
(v) implementing and administering the Divorce Education for Children Program.
(b) The Children's Legal Defense Account may not be used to supplant funding for the guardian ad litem program under Section 78A-2-803.
(4) The following withheld fees shall be allocated only to the Children's Legal Defense Account and used only for the purposes provided in Subsections (3)(a)(i) through (v):
(a) the additional $10 fee withheld on every marriage license issued in the state of Utah as provided in Section 17-66-303; and
(b) a fee of $4 shall be withheld from the existing civil filing fee collected on any complaint, affidavit, or petition in a civil, probate, or adoption matter in every court of record.
(5) The Division of Finance shall allocate the money described in Subsection (4) from the General Fund to the Children's Legal Defense Account.
(6) Any funds in excess of $200,000 remaining in the restricted account as of June 30 of any fiscal year shall lapse into the General Fund.
(1) As used in this section:
(a) "Department" means the Department of Criminal Justice created in Section 75E-2-102.
(b) "Halfway house" means a facility that houses parolees upon release from prison or houses probationers who have violated the terms of their probation.
(c) "Law enforcement agency" means a local law enforcement agency.
(d) "Parole violator center" means a facility that houses parolees who have violated the conditions of their parole agreement.
(2) The department shall allocate funds appropriated by the Legislature to local law enforcement agencies on a pro-rata basis determined by:
(a) the average daily number of occupied beds in a halfway house in each agency's jurisdiction for increased enforcement in areas with halfway houses;
(b) the average daily number of occupied beds in a parole violator center in each agency's jurisdiction; or
(c) both Subsections (2)(a) and (b).
(3) A law enforcement agency may use funds received under this section only for the purposes stated in this section.
(4)
(a) For each fiscal year, any law enforcement agency that receives funds from the department under this section shall prepare, and file with the department and the state auditor, a report in a form specified by the department.
(b) The report described in Subsection (4)(a) shall include the following:
(i) the agency's name;
(ii) the amount received;
(iii) how the funds were used, including the impact on crime reduction efforts in areas with halfway houses or parole violator centers, or both; and
(iv) a statement signed by both the agency's or political subdivision's executive officer or designee and by the agency's legal counsel that all funds were used for law enforcement operations related to reducing criminal activity in areas with halfway houses or parole violator centers, or both.
(1) The state renews its acceptance of the apportionment of money received from forest reserves made by the Act of May 23, 1908, 16 U.S.C. Sec. 500 et seq., and all acts amendatory thereof and supplementary thereto, and renews its acceptance of the act upon the terms and conditions set forth in the act.
(2) The apportionment money provided by the act shall be used for the benefit of the public schools and public roads of the counties containing the forest reserves.
There is established a fund known as the "County Road and School Fund from Forest Reserves," comprised of:
(1) money which shall come into the hands of the state treasurer from the United States under the Act of May 23, 1908, 16 U.S.C. Sec. 500 et seq., and all acts amendatory thereof and supplementary thereto; and
(2) money paid under the act described in Subsection (1) that:
(a) has come into the hands of the state treasurer; and
(b)
(i) the state treasurer had not apportioned to counties as of February 24, 2009; or
(ii) were apportioned to a county by the state treasurer, but were returned by the county to the state treasurer on or before June 15, 2009.
The state treasurer shall, within a reasonable time after receipt of the money:
(1) apportion money that the United States determines shall be allocated to each county for special projects for deposit in one or more of the following, as directed by the legislative body of the county:
(a) the county's general fund; or
(b) one or more special service districts, provided that each special service district receiving money:
(i) is established by the county under Title 17D, Chapter 1, Special Service District Act; and
(ii) has as part of its functions the purpose of:
(A) carrying out the Firewise Communities program;
(B) developing community wildfire protection plans; or
(C) performing emergency services on federal land such as search and rescue or firefighting; and
(2) apportion the remaining net amount of the money to each county that is entitled to receive funds as follows:
(a) 50% to the school districts of the county, according to the number of school children residing in each district that are over the age of six and under the age of 18; and
(b) 50% to the following, as directed by the county legislative body:
(i) the general fund of the county; or
(ii) one or more special service districts, provided that each special service district receiving money:
(A) is established by the county under Title 17D, Chapter 1, Special Service District Act; and
(B) has as one of its functions the purpose of constructing, improving, repairing, or maintaining public roads.
(1) As used in this section:
(a) "Fund" means the Opioid Litigation Proceeds Fund created in this section.
(b)
(i) "Principal" means money deposited into the fund in accordance with this section.
(ii) "Principal" does not include:
(A) earnings credited to the fund, including interest and dividends; or
(B) up to $21 million of money described in Subsection (4) that the Legislature allocated through July 1, 2026, to be spent for various purposes through June 30, 2027.
(2) There is created the Opioid Litigation Proceeds Fund.
(3) The fund consists of:
(a) any money deposited into the fund in accordance with Subsection (4);
(b) interest and dividends earned on money in the fund; and
(c) money appropriated to the fund by the Legislature.
(4) Notwithstanding Sections 13-2-109 and 67-5-40, after reimbursement to the attorney general and the Department of Commerce for expenses related to the matters described in Subsection (4)(a) or (b), the following shall be deposited into the fund:
(a) all money received by the attorney general or the Department of Commerce as a result of any judgment, settlement, or compromise of claims pertaining to alleged violations of law related to the manufacture, marketing, distribution, or sale of opioids from a case designated as an opioid case by the attorney general in a legal services contract; and
(b) all money received by the attorney general or the Department of Commerce as a result of any multistate judgment, settlement, or compromise of claims pertaining to alleged violations of law related to the manufacture, marketing, distribution, or sale of opioids.
(5) The state treasurer shall:
(a) invest the money in the fund:
(i) for the benefit of the people of the state in perpetuity; and
(ii) with the following goals, in order of priority:
(A) providing for growth of the principal; and
(B) fund stability; and
(b) invest and manage fund money as a prudent investor would by:
(i) considering the purpose, terms, distribution requirements, and other circumstances of the fund; and
(ii) exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor.
(6) The state treasurer may deduct any administrative costs incurred by managing the fund from earnings generated by investments in the fund.
(7)
(a) The Legislature may not appropriate principal from the fund.
(b) Subject to appropriation by the Legislature, money in the account other than principal shall be used:
(i) to address the effects of alleged violations of law related to the manufacture, marketing, distribution, or sale of opioids; or
(ii) if applicable, in accordance with the terms of a settlement agreement described in Subsection (4)(a) or (b) entered into by the state.
As used in this part:
(1) "Account" means the Outdoor Adventure Infrastructure Restricted Account created in Section 51-9-902.
(2) "Facility" means a site, location, building, structure, or other improvement to property.
(3)
(a) "Outdoor recreation infrastructure" means a public facility or public land used by the public to access outdoor recreational opportunities.
(b) "Outdoor recreation infrastructure" includes:
(i) a facility used for water sports, snow sports, backpacking, canoeing, canyoning, caving, camping, climbing, hiking, hill walking, hunting, kayaking, rafting, biking, operating a snowmobile or all-terrain vehicle, or any similar motorized or nonmotorized activity;
(ii) a state park, golf course, sports field, playground, toboggan run, sledding hill, trail, paved pedestrian or paved nonmotorized transportation facility, park, pool, waterway, road, bridge, or similar facility;
(iii) an unpaved trail, trail head infrastructure, signage, or crossing infrastructure for recreation, regardless of whether the recreation is motorized or nonmotorized recreation;
(iv) a campground or day-use recreation site;
(v) water recreation infrastructure, including a pier, dock, or boat ramp; and
(vi) outdoor recreation facilities that are accessible to visitors with disabilities.
(1) There is created within the General Fund a restricted account known as the "Outdoor Adventure Infrastructure Restricted Account."
(2) The account shall consist of:
(a) money deposited into the account under Subsection 59-12-103(4)(h); and
(b) interest and earnings on money in the account.
(3) Subject to appropriation from the Legislature, money from the account shall be used for:
(a) new construction of outdoor recreation infrastructure;
(b) upgrades of outdoor recreation infrastructure;
(c) the replacement of or structural improvements to outdoor recreation infrastructure;
(d) the acquisition of land, a right-of-way, or easement used in relationship to outdoor recreation infrastructure;
(e) providing access from state highways, as defined in Section 72-1-102, to outdoor recreation infrastructure;
(f) the costs associated with bringing new construction or upgrades of outdoor recreation infrastructure into environmental compliance;
(g) strategic planning related to the development of outdoor recreation infrastructure;
(h) facilitating avalanche safety forecasting to protect the public in relation to outdoor recreation infrastructure; or
(i) clean up or security relating to outdoor recreation infrastructure.
(4) For each fiscal year, beginning with fiscal year 2025-2026, the Division of Finance shall, subject to appropriation by the Legislature, distribute money from the Outdoor Adventure Infrastructure Restricted Account as follows:
(a) at least 15% to the Department of Natural Resources - Division of State Parks - Capital, to be expended using the department's existing prioritization process for capital projects in state parks described in Subsection (3);
(b) at least 22% to the Department of Natural Resources - Division of Outdoor Recreation - Capital, to be expended for competitive Recreation Restoration Infrastructure grants or Outdoor Recreational Infrastructure grants for outdoor recreation capital projects and related maintenance expenses, where maintenance expenses do not exceed 15% of the appropriation;
(c) at least 53% to the Department of Natural Resources - Division of Outdoor Recreation - Capital, to be expended for larger outdoor recreation infrastructure projects described in Subsection (3) as recommended to the Legislature by the Outdoor Adventure Commission; and
(d) at least 10% to the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201 for the development and operation of the district.
(5) If the Legislature appropriates money to the Department of Transportation from the account, the Transportation Commission, created in Section 72-1-301, shall prioritize projects and determine funding levels in accordance with Subsection 72-1-303(1)(a) based on recommendations of the Department of Transportation.
As used in this part:
(1) "Offender" means the same as that term is defined in Section 64-13-1.
(2) "Restricted Account" means the Corrections Facility Expansion Restricted Account created in Section 51-9-1002.
(3) "State correctional facility" means a facility operated by the Department of Corrections to house offenders.
(1) There is created a restricted account within the General Fund known as the "Corrections Facility Expansion Restricted Account."
(2) The restricted account shall consist of:
(a) the portion of appropriations from new legislation for the Department of Corrections for:
(i) any state correctional capital facilities costs; and
(ii) beginning the second fiscal year of a bill's implementation, one time savings that occur from delayed estimated fiscal impacts of increases in the population level of state correctional facilities;
(b) interest, dividends, or other earnings attributable to the restricted account; and
(c) additional money appropriated by the Legislature.
(3) The Legislature may appropriate money from the restricted account only for the purpose of expanding existing, or constructing new, state correctional facilities.
As used in this part:
(1) "Account" means the State Reinvestment Restricted Account created in Section 51-9-1102.
(2) "Generational water infrastructure" means physical facilities or other physical assets designed to meet generational demands for water.
(3) "New revenue" means revenue collected above $100,000,000 from the taxes imposed under Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining, after subtracting the amounts required to be distributed under Sections 51-9-305, 51-9-306, 59-5-116, 59-5-119, and 59-5-121 and under Subsection 59-5-202(5)(c).
(1) There is created within the General Fund a restricted account known as the "State Reinvestment Restricted Account."
(2) The account shall consist of:
(a) revenue deposited into the account in accordance with:
(i) Title 63N, Chapter 3a, Part 2, Creation of Regionally Significant Development Zones; and
(ii) Title 63N, Chapter 3a, Part 4, Regionally Significant Zones with Energy Implications;
(b) revenue deposited into the account by the Utah Inland Port Authority in accordance with Sections 11-58-602 and 11-58-607;
(c) new revenue that the State Tax Commission shall deposit into the account until the new revenue equals or exceeds $200,000,000 in a fiscal year;
(d) revenue credited to the account in accordance with Section 59-5-215;
(e) revenue credited to the account in accordance with Section 51-9-305; and
(f) interest and earnings on money in the account.
(3) The state treasurer shall invest the money in the fund according to Title 51, Chapter 7, State Money Management Act, except that interest or other earnings derived from those investments shall be deposited into the account.
(1) Money in the account is to be used, subject to appropriation, for:
(a) income tax relief;
(b) development of generational water infrastructure;
(c) facilitating preservation of the Great Salt Lake watershed, as described in Title 73, Chapter 10g, Part 4, Great Salt Lake Watershed Integrated Water Assessment;
(d) regionally significant transit development and regionally significant transit infrastructure;
(e) development of energy resources, as described in Title 79, Chapter 6, Utah Energy Act;
(f) subject to Subsection (3), development of critical mineral resources, as described in Title 79, Chapter 10, Critical Minerals Strategic Act; and
(g) subject to Subsection (3), the Uintah Basin Air Quality Research Project created in Section 53H-4-316.
(2) Money in the account that is derived from a local source may not be used in an area outside the area in which the money was generated unless the money is used for a purpose described in Subsection (1).
(3) Subject to appropriation:
(a) the first $1,000,000 of revenue credited to the account under Subsections 51-9-1102(2)(d) and (e) each fiscal year shall be used by the Critical Minerals Council for the development of critical mineral resources, as described in Title 79, Chapter 10, Critical Minerals Strategic Act;
(b) after the amount distributed as described in Subsection (3)(a), 10% of the revenue credited to the account under Subsection 51-9-1102(2)(d) each fiscal year shall be used for the development of critical mineral resources, as described in Title 79, Chapter 10, Critical Minerals Strategic Act; and
(c) after the amount distributed as described in Subsection (3)(a), $400,000 of the revenue credited to the account under Subsection 51-9-1102(2)(e) shall be used for the Uintah Basin Air Quality Research Project created in Section 53H-4-316.
This chapter is known as the "Navajo Trust Fund Act."
As used in this chapter:
(1) "Administrative expenditure" means:
(a) an expenditure for professional services;
(b) per diem and travel expenses for the board and the Diné Advisory Committee; and
(c) expense reimbursements, salaries, and benefits for the trust administrator and the trust administrator's staff.
(2) "Blue Mountain Diné" means the off-reservation Navajo community organization known as the Blue Mountain Diné.
(3) "Board" means the board of trustees created in Section 51-10-202.
(4) "Business enterprise" means a sole proprietorship, partnership, corporation, limited liability company, or other private entity organized to provide goods or services for a profit.
(5) "Diné Advisory Committee" means the committee created in Section 51-10-206.
(6) "Fund" means the Navajo Trust Fund created in Section 51-10-201.
(7) "Income" means the revenues from investments made by the state treasurer of the fund principal.
(8) "Navajos" means San Juan County, Utah, Navajos.
(9) "Office of Trust Administrator" means the office created in Section 51-10-203.
(10) "Principal" means:
(a) the balance of the fund as of July 1, 2015; and
(b) the revenue to the fund from whatever source except income.
(11) "Service provider" means any of the following that provides a good or service to Navajos:
(a) a business enterprise;
(b) a private nonprofit organization; or
(c) a government entity.
(12) "Trust administrator" means the trust administrator selected as provided in Subsection 51-10-202(2).
(13) "Utah Navajo Chapter" means one of the following chapters of the Navajo Nation:
(a) Aneth Chapter;
(b) Mexican Water Chapter;
(c) Naatsis'áán Chapter;
(d) Oljato Chapter;
(e) Dennehotso Chapter;
(f) Red Mesa Chapter; and
(g) Teec Nos Pos Chapter.
(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
(ix) United States Secretary of the Interior.
(1)
(a) There is created a board of trustees of the fund composed of the following three members:
(i) the state treasurer;
(ii) the director of the Division of Finance; and
(iii) the director of the Governor's Office of Planning and Budget or the director's designee.
(b) The state treasurer is chair of the board.
(c) Three members of the board is a quorum.
(d) A member may not receive compensation or benefits for the member's service, but may receive per diem and travel expenses in accordance with:
(i) Section 63A-3-106;
(ii) Section 63A-3-107; and
(iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
(2)
(a) The board shall:
(i) contract with a person to act as trust administrator in accordance with Title 63G, Chapter 6a, Utah Procurement Code, and when not provided for by this chapter, define the trust administrator's duties; or
(ii) if unable to find a qualified person under Subsection (2)(a)(i) to act as trust administrator for a reasonable cost, hire a qualified person to act as trust administrator and, when not provided for in this chapter, define the trust administrator's duties.
(b) If the board hires a trust administrator under Subsection (2)(a)(ii), the board may hire or authorize the trust administrator to hire other persons necessary to assist the trust administrator and the board to perform the duties required by this chapter.
(3) The board shall:
(a) on behalf of the state, act as trustee of the fund and exercise the state's fiduciary responsibilities;
(b) meet at least quarterly;
(c) review and approve a policy, projection, rule, criteria, procedure, form, standard, or performance goal established by the trust administrator;
(d) review and approve the fund budget prepared by the trust administrator;
(e) review a progress report from a program financed by the fund;
(f) review a financial record of the fund, including a fund receipt, expenditure, or investment; and
(g) do any other thing necessary to perform the state's fiduciary obligations under the fund.
(4) The attorney general shall:
(a) act as legal counsel and provide legal representation to the board; and
(b) attend or direct an attorney from the attorney general's office to attend each meeting of the board.
(5) The board may consult with knowledgeable state personnel to advise the board on policy and technical matters.
(6) A record of information relating to an investment activity of the fund is exempt from Title 63G, Chapter 2, Government Records Access and Management Act.
(1) If the board hires a trust administrator under Subsection 51-10-202(2)(a)(ii), there is created an Office of Trust Administrator.
(2) The trust administrator shall administer the office.
(1) Under the direction of the board, the trust administrator shall:
(a) review the documents and decisions highlighting the history of the fund, including:
(i) the Nelson report, prepared as part of the Bigman v. Utah Navajo Development Council, Inc. C77-0031;
(ii) the November 1991 performance audit of the fund by the legislative auditor general;
(iii) Sakezzie v. Utah Indian Affairs Commission, 198 F. Supp. 218 (1961);
(iv) Sakezzie v. Utah Indian Affairs Commission, 215 F. Supp. 12 (1963);
(v) the September 8, 1977, consent decree, the stipulation dated November 29, 1984, modifying the consent decree, and the court's memorandum opinion dated September 25, 1978, in Bigman v. Utah Navajo Development Council, Inc. C77-0031; and
(vi) rulings related to Pelt v. Utah;
(b) review the potential sources of fund revenues;
(c) prepare an annual projection of money that will be available for a Navajo program;
(d) identify the property owned by the fund;
(e) establish and maintain a record system and retention schedule to retain a record relating to the fund's property and operations, including:
(i) a record related to the ethics and conflict policy developed under Subsection (2)(c);
(ii) a request for proposal and a proposal received;
(iii) a contract awarded;
(iv) project progress and a completion report;
(v) an invoice; and
(vi) a purchasing record;
(f) review an existing and proposed program financed by the fund;
(g) evaluate whether a program described in Subsection (1)(f) is the most practical and cost-efficient means to provide the desired benefit to Navajos;
(h) consult regularly with the administrator of a program financed by the fund to obtain a progress report on the program;
(i) attend the meetings of:
(i) the Din Advisory Committee; and
(ii) the board;
(j) certify that an expenditure of the fund:
(i) complies with the state's fiduciary responsibilities as trustee of the fund; and
(ii) is consistent with this section;
(k) make an annual report:
(i) to the:
(A) board;
(B) governor; and
(C) Native American Legislative Liaison Committee, created in Section 36-22-1; and
(ii) that:
(A) identifies the source and amount of the revenue received by the fund;
(B) identifies the recipient, purpose, and amount of the expenditures from the fund;
(C) identifies investment categories and the rate of return of each category of investment; and
(D) recommends any necessary statutory changes to improve administration of the fund or to protect the state from liability as trustee;
(l) submit a written annual report to the:
(i) Division of Indian Affairs;
(ii) Navajo Nation;
(iii) United States Bureau of Indian Affairs; and
(iv) United States Secretary of the Interior;
(m) establish, in conjunction with the state treasurer and the Division of Finance, appropriate accounting practices for the fund receipts, expenditures, and investments according to generally accepted accounting principles;
(n) provide a summary record of fund receipts, expenditures, and investments to the board and to the Din Advisory Committee at each meeting of the board or Din Advisory Committee;
(o) pay an administrative expense from the fund;
(p) report quarterly to the board about:
(i) the trust administrator's activities; and
(ii) the status of the fund; and
(q) call an additional meeting of the Din Advisory Committee when necessary.
(2) In conjunction with the Din Advisory Committee and under the direction of the board, the trust administrator shall:
(a) before the beginning of each fiscal year, establish a list of the needs of Navajos for that year to be used for the annual budget;
(b) before the beginning of each fiscal year, develop and approve an annual budget for the fund;
(c) develop an ethics and conflict of interest policy that emphasizes the need to avoid even the appearance of conflict of interest or impropriety that is to apply to:
(i) the trust administrator;
(ii) the trust administrator's staff; and
(iii) the Din Advisory Committee;
(d) require the trust administrator, each of the trust administrator's staff, and each member of the Din Advisory Committee to sign and keep on file written documentation that acknowledges:
(i) receipt of the ethics and conflict of interest policy described in Subsection (2)(c); and
(ii) willingness to abide by the ethics and conflict of interest policy described in Subsection (2)(c); and
(e) make expenditures from the fund:
(i) "for the health, education, and general welfare of the Navajo Indians residing in San Juan County" as required by:
(A) Pub. L. No. 72-403, 47 Stat. 1418 (1933);
(B) Pub. L. No. 90-306, 82 Stat. 121 (1968); and
(C) this chapter; and
(ii) including expenditure for roads and utilities.
(3) The trust administrator, under direction of the board, may:
(a) contract with a public or private entity; and
(b) unless prohibited by law or this chapter, acquire and hold money and other property received in the administration of the fund.
(1)
(a) Under the direction of the board, the trust administrator may make expenditures from the fund in accordance with Subsection 51-10-204(2)(e).
(b) The board may enter into a cost sharing agreement with one or more governmental entities if the cost sharing agreement is recommended by at least four of the Utah Navajo Chapters.
(2)
(a) Before making any expenditures from the fund to a service provider, the trust administrator shall:
(i) comply with Title 63G, Chapter 6a, Utah Procurement Code; and
(ii) review and approve the service provider's entire budget.
(b) The trust administrator may require that a service provider modify its budget or meet other conditions precedent established by the trust administrator before the service provider may receive expenditures from the fund.
(3) The trust administrator shall make an expenditure from the fund that is not an administrative expenditure by:
(a) preparing a written document that:
(i) defines specifically how the expenditure from the fund may be used;
(ii) establishes any conditions precedent to use of the expenditure; and
(iii) requires the recipient of fund money to provide the trust administrator with progress reports detailing how the money has been expended; and
(b) obtaining the signature of the recipient on that document before releasing any money from the fund.
(4) The trust administrator shall:
(a) make rules in accordance with Subsection (6) that:
(i) establish policies and criteria for expenditure of fund money; and
(ii) establish performance evaluation criteria with which to evaluate the success of expenditures from the fund after they are made;
(b) develop procedures, forms, and standards for persons seeking distribution of fund money that implement the policies and criteria established by rule;
(c) evaluate the requests for expenditures of fund money against:
(i) the policies and criteria established by rule; and
(ii) the requestor's success in meeting performance evaluation criteria and goals in any prior receipt of fund money;
(d) develop performance goals for each fund expenditure that implement the performance evaluation criteria established in rule; and
(e) monitor and evaluate each fund expenditure based upon the performance goals and performance evaluation criteria created under this Subsection (4).
(5) The trust administrator may expend fund money for per diem and expenses incurred by the Diné Advisory Committee in performance of official duties.
(6) The trust administrator shall make a rule described in Subsection (4)(a):
(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) with the input and recommendation of the Diné Advisory Committee; and
(c) with the approval of the board.
(1) There is created the Diné Advisory Committee.
(2)
(a) The governor, with the advice and consent of the Senate, shall appoint nine members to the Diné Advisory Committee.
(b) In making an appointment under Subsection (2)(a), the governor shall ensure that the Diné Advisory Committee includes:
(i) two registered members of the Aneth Chapter of the Navajo Nation who reside in San Juan County, Utah;
(ii) one registered member of the Blue Mountain Diné who resides in San Juan County, Utah;
(iii) one registered member of the Mexican Water Chapter of the Navajo Nation who resides in San Juan County, Utah;
(iv) one registered member of the Naatsis'áán Chapter of the Navajo Nation who resides in San Juan County, Utah;
(v) subject to Subsection (4), two members who reside in San Juan County, Utah, one of whom is a registered member of the Oljato Chapter of the Navajo Nation, and one of whom is a registered member of either the Oljato Chapter or the Dennehotso Chapter of the Navajo Nation;
(vi) one registered member of the Red Mesa Chapter of the Navajo Nation who resides in San Juan County, Utah; and
(vii) one registered member of the Teec Nos Pos Chapter of the Navajo Nation who resides in San Juan County, Utah.
(3)
(a)
(i) Each chapter of the Utah Navajo Chapter, except the Aneth, Oljato, and Dennehotso chapters, shall submit to the governor the names of two nominees to the Diné Advisory Committee chosen by the chapter.
(ii) The governor shall appoint one of the two persons whose names are submitted under Subsection (3)(a)(i) as that chapter's representative on the Diné Advisory Committee.
(b)
(i) The Blue Mountain Diné shall submit to the governor the names of two nominees to the Diné Advisory Committee.
(ii) The governor shall appoint one of the two persons whose names are submitted under Subsection (3)(b)(i) as the Blue Mountain Diné representative on the Diné Advisory Committee.
(c)
(i) The Aneth Chapter shall submit to the governor the names of two nominees for each of the two positions to the Diné Advisory Committee representing the Aneth chapter.
(ii) The governor shall appoint two of the persons whose names are submitted under Subsection (3)(c)(i) to be the Aneth Chapter's representatives on the Diné Advisory Committee.
(d)
(i) Subject to Subsection (3)(d)(ii), the Oljato Chapter shall submit to the governor the names of two nominees for each of the two positions to the Diné Advisory Committee representing the Oljato Chapter and the Dennehotso Chapter.
(ii) The Dennehotso Chapter may submit one nominee for purposes of the governor appointing a representative of the Oljato Chapter and the Dennehotso Chapter.
(iii) The governor shall appoint two of the persons whose names are submitted under Subsection (3)(d)(i) or (ii) to be the representatives on the Diné Advisory Committee of the Oljato Chapter and the Dennehotso Chapter.
(e) Before submitting a name to the governor, a Utah Navajo Chapter and the Blue Mountain Diné shall ensure that the individual's whose name is submitted:
(i) is an enrolled member of the Navajo Nation;
(ii) resides in San Juan County, Utah;
(iii) is 21 years of age or older;
(iv) is not an officer of the chapter;
(v) has not been convicted of a felony; and
(vi) is not currently, or within the last 12 months has not been, an officer, director, employee, or contractor of a service provider that solicits, accepts, or receives a benefit from an expenditure of:
(A) the Division of Indian Affairs; or
(B) the fund.
(4) If both members appointed under Subsection (2)(b)(v) are registered members of the Oljato Chapter, the two members shall attend Dennehotso Chapter meetings as practicable.
(5)
(a) Except as provided in Subsection (5)(b) and other than the amount authorized by this section for Diné Advisory Committee member expenses, a person appointed to the Diné Advisory Committee may not solicit, accept, or receive any benefit from an expenditure of:
(i) the Division of Indian Affairs;
(ii) the fund; or
(iii) the Division of Indian Affairs or fund as an officer, director, employee, or contractor of a service provider that solicits, accepts, or receives a benefit from the expenditure of:
(A) the Division of Indian Affairs; or
(B) the fund.
(b) A member of the Diné Advisory Committee may receive a benefit from an expenditure of the fund if:
(i) when the benefit is discussed by the Diné Advisory Committee:
(A) the member discloses that the member may receive the benefit;
(B) the member physically leaves the room in which the Diné Advisory Committee is discussing the benefit; and
(C) the Diné Advisory Committee approves the member receiving the benefit by a unanimous vote of the members present at the meeting discussing the benefit;
(ii) a Utah Navajo Chapter requests that the benefit be received by the member;
(iii) the member is in compliance with the ethics and conflict of interest policy required under Subsection 51-10-204(2)(c);
(iv)
(A) the expenditure from the fund is made in accordance with this chapter; and
(B) the benefit is no greater than the benefit available to members of the Navajo Nation residing in San Juan County, Utah; and
(v) the member is not receiving the benefit as an officer, director, employee, or contractor of a service provider.
(6)
(a)
(i) Except as required in Subsection (6)(a)(ii), as terms of current committee members expire, the governor shall appoint each new member or reappointed member to a four-year term.
(ii) The governor shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of committee members are staggered so that approximately half of the Diné Advisory Committee is appointed every two years.
(iii) The terms of the Aneth Chapter's representatives appointed under Subsection (3)(c)(ii) shall be staggered in accordance with this Subsection (6) so that only one position is appointed by the governor in a year.
(iv) The terms of the Oljato Chapter's and the Dennehotso Chapter's representatives appointed under Subsection (3)(d) shall be staggered in accordance with this Subsection (6) so that only one position is appointed by the governor in a year.
(b) Except as provided in Subsection (6)(c), a committee member shall serve until the committee member's successor is appointed and qualified.
(c) If a committee member is absent from three consecutive committee meetings, or if the committee member violates the ethical or conflict of interest policies established by statute or the Diné Advisory Committee:
(i) the committee member's appointment is terminated;
(ii) the position is vacant; and
(iii) the governor shall appoint a replacement.
(d) When a vacancy occurs in the membership for any reason, the governor shall appoint a replacement for the unexpired term according to the procedures of this section.
(e) The governor may appoint an individual to more than one term on the Diné Advisory Committee.
(7) When the governor makes a new appointment or reappointment under Subsection (6)(a)(i), or a vacancy appointment under Subsection (6)(d), the governor's new appointment, reappointment, or vacancy appointment shall be made with the advice and consent of the Senate.
(8)
(a) The committee members shall select a chair and vice chair from committee membership each two years subsequent to the appointment of new committee members.
(b) Five members of the Diné Advisory Committee is a quorum for the transaction of business.
(c) The Diné Advisory Committee shall:
(i) comply with Title 52, Chapter 4, Open and Public Meetings Act;
(ii) ensure that its meetings are held at or near:
(A) a chapter house or meeting hall of a Utah Navajo Chapter; or
(B) other places in Utah that the Diné Advisory Committee considers practical and appropriate; and
(iii) ensure that its meetings are public hearings at which a resident of San Juan County, Utah, may appear and speak.
(9) A committee member may not receive compensation or benefits for the committee member's service, but may receive per diem and travel expenses in accordance with policy adopted by the board.
(10) The trust administrator shall staff the Diné Advisory Committee.
(11) The Diné Advisory Committee shall advise the trust administrator about the expenditure of fund money.
As used in this chapter:
(1) "Attainable home" means a residence that costs the purchaser no more than the amount a qualifying residential unit may be purchased in accordance with Section 63H-8-501 at the time the state treasurer deposits with a qualified depository.
(2) "City of the first class" means the same as that term is defined in Section 10-2-301.
(3) "City of the second class" means the same as that term is defined in Section 10-2-301.
(4) "Fund" means the Transportation Infrastructure General Fund Support Subfund created in Section 72-2-134.
(5) "Political subdivision" means:
(a) the municipality in which the attainable home is located; or
(b) the county, if the attainable home is located in an unincorporated portion of the county.
(6) "Qualified depository" means:
(a) the same as that term is defined in Section 51-7-3; or
(b) the Utah Housing Corporation as described in Title 63H, Chapter 8, Utah Housing Corporation Act.
(7)
(a) "Qualified project" means a new construction housing development project in the state for which the developer:
(i) commits to:
(A) offering for sale no fewer than 60% of the total units within the project as attainable homes;
(B) including in the deed of sale for an attainable home a restriction, in favor of the political subdivision, that the attainable home be owner-occupied for no fewer than five years; and
(C) having a plan to provide information to potential buyers of attainable homes about the First-Time Homebuyer Assistance Program created in Section 63H-8-502; and
(ii) executes a valid agreement with the political subdivision or the Utah Housing Corporation to develop housing meeting the requirements of Subsections (7)(a)(i)(A) and (B).
(b) "Qualified project" includes infrastructure within the housing development project.
(c) "Qualified project" includes a project by a city of the first or second class that commits to:
(i) receiving no more than $10,000,000 in deposits within one year from the day on which the city of the first or second class enters into a loan agreement with the qualified depository described in Subsection (6)(b) for a project as an attainable home;
(ii) using the deposit to acquire and rehabilitate single-family homes within the city limits of the city of the first or second class boundaries;
(iii) offering for sale the rehabilitated single-family home as an attainable home, including in the deed of sale for an attainable home a restriction, in favor of the city of the first or second class, that the attainable home be owner-occupied for no fewer than five years; and
(iv) expanding an existing effort to acquire and rehabilitate single-family homes as described in Subsections (7)(c)(ii) and (iii).
(1) The state treasurer shall share the information reported in accordance with Subsection 51-12-202(2)(d) with the governor's office.
(2) Before December 31 of each year, the state treasurer and the governor's office or the governor's office's designee shall report to the Legislative Management Committee:
(a) the dollar amount of deposits and the number of qualified depositories in which a deposit is made in accordance with Part 2, Investment Program;
(b) the information reported in accordance with Subsection 51-12-202(2)(d); and
(c) the impact of the Utah Homes Investment Program on the availability of housing in the state.
(1) A qualified depository may request the state treasurer to make a deposit in the qualified depository if the qualified depository:
(a) has identified and approved for financing a qualified project; and
(b) requests no more than 100% of the financing for a qualified project.
(2) Subject to Subsection (3), the state treasurer shall approve the qualified depository's request for deposit:
(a) unless the state treasurer determines the qualified depository does not merit deposit under fiduciary duties and prudent investment practices within the parameters of this chapter;
(b) in an amount that is equal to the lesser of:
(i) the deposit amount requested;
(ii) $60,000,000; or
(iii) 50% of the qualified depository's maximum amount of public deposits determined in accordance with Section 51-7-18.1; and
(c) as sufficient money becomes available in the fund and in accordance with Subsection 72-2-134(4)(a).
(3) The state treasurer may not approve a request for deposit after December 31, 2027.
(4) The state treasurer shall notify Utah Housing Corporation of any qualified projects for which the state treasurer makes a deposit in a qualified depository.
(1) The state treasurer shall enter into a deposit agreement with an approved qualified depository in accordance with Section 51-12-201.
(2) The deposit agreement shall provide that the qualified depository:
(a) shall offer loan financing to a developer or city of the first or second class of a qualified project at a rate no higher than 150 basis points above the federal funds effective rate at the time of the deposit;
(b) shall return the amount of deposit:
(i) with interest at a rate equal to the greater of:
(A) the federal funds effective rate at the time of the deposit minus 200 basis points; or
(B) 0.5%; and
(ii) at the earlier of:
(A) 24 months from the day on which the deposit is made;
(B) repayment of the loan financing;
(C) the sale of the last home in the qualified project; or
(D) June 30, 2028;
(c) is responsible for return of the amount of the deposit with accrued interest regardless of the completion of the qualified project or the repayment of the qualified depository's loan to the developer or city of the first or second class of the qualified project; and
(d) shall report to the state treasurer the total number of housing units and the number of attainable homes each qualified project created.
(3)
(a) Notwithstanding the provisions of Subsections (2)(b)(ii) and (2)(c), for a deposit made to the Utah Housing Corporation, the Utah Housing Corporation shall return the amount of the deposit with accrued interest when the Utah Housing Corporation has received:
(i) repayment of the loan financing; or
(ii) proceeds from the sale or other disposition of the homes in the qualified project.
(b) The Utah Housing Corporation may return the deposit later than the time period described in Subsection (2)(b)(ii)(A) or (D) without penalty.
(4) A qualified depository may return the deposit earlier than the time period described in Subsection (2)(b)(ii) without penalty.
(5) The state treasurer shall deposit the return of the amount of the deposit, including interest, into the fund.
A developer, city of the first or second class, or a qualified depository that fails to comply with the terms of deposit is disqualified from subsequent participation in the Utah Homes Investment Program.
Notwithstanding any provision of Title 7, Chapter 9, Utah Credit Union Act, or any other applicable statute requiring membership in the credit union by a borrower, a state or federally chartered credit union may make a loan to a developer or city of the first or second class of a qualified project and may request a deposit in accordance with Sections 51-12-201 and 51-12-202.
As used in this chapter:
(1) "Division" means the Division of Finance created in Section 63A-3-101.
(2) "Excess revenue collections" means any amount of General Fund or Income Tax Fund revenue that, in any fiscal year, exceeds the estimated revenue for that fiscal year last adopted by the Executive Appropriations Committee by more than two standard deviations on a 20-year mean.
(3) "Fund" means the State Sovereignty Fund created in Section 51-13-201.
(4) "General Fund Budget Reserve Account" means the General Fund Budget Reserve Account created in Section 63J-1-312.
(5) "Income Tax Fund Budget Reserve Account" means the Income Tax Fund Budget Reserve Account created in Section 63J-1-313.
(6)
(a) "Principal" means money deposited into the State Sovereignty Fund in accordance with Section 51-13-201.
(b) "Principal" does not include earnings like interest, dividends, or asset appreciation credited to the State Sovereignty Fund.
(7) "Reserve account surplus" means an amount described in Subsection 63J-1-312(3)(a)(ii)(B) or 63J-1-313(3)(a)(ii)(B).
(1) There is created the State Sovereignty Fund which consists of:
(a) any reserve account surplus;
(b) one-half of any General Fund savings from a decrease in the Federal Medical Assistance Percentages;
(c) if the federal government offers an enhanced Federal Medical Assistance Percentage, 12.5% of the resulting state fund savings;
(d) any excess revenue collections;
(e) interest, dividends, or other earnings attributable to the fund; and
(f) additional money appropriated by the Legislature.
(2)
(a) The division shall deposit into the fund any amounts described in Subsections (1)(a) through (f).
(b) The Governor's Office of Planning and Budget, in consultation with the legislative fiscal analyst, shall annually report to the Division of Finance the amounts described in Subsections (1)(b), (c), and (d).
(3) The division shall separately track principal deposits into the fund from the General Fund and Income Tax Fund, including earnings on the deposits.
(4) In accordance with Section 51-13-202, the state treasurer shall invest the money in the fund for the benefit of the people of the state in perpetuity.
(5) The Legislature may not appropriate money from the fund before fiscal year 2075-76.
(6)
(a) Beginning fiscal year 2075-76, the Legislature may appropriate up to 50% of the annual earnings from the investment of the fund to offset reduced federal funding or to provide state tax relief.
(b) After any appropriations under Subsection (6)(a), the division shall deposit any remaining earnings into the fund for investment.
(7) The Legislature may appropriate principal from the fund only:
(a) by affirmative vote of two-thirds of all members elected of each chamber of the Legislature; and
(b) for the purpose of offsetting reduced federal funding or providing state tax relief.
(1) The state treasurer shall:
(a) invest money in the fund with the following goals, in order of priority:
(i) providing for growth of the principal; and
(ii) fund stability;
(b) invest and manage fund assets as a prudent investor would by:
(i) considering the purpose, terms, distribution requirements, and other circumstances of the fund; and
(ii) exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor; and
(c) deposit into the fund the interest, dividends, or other earnings attributable to the fund.
(2) The state treasurer may deduct any administrative costs incurred by managing the fund from earnings generated by investments in the fund.
Connect Omnilex to search the legal corpus from your AI assistant.