Fund Commission by this referendum election shall be 
amended or repealed only— 
(1) when the term ends; 
(2) by the outcome of a vote on a subsequent 
referendum or initiative election by a Chapter con-
cerning the same subject matter as that of the ref-
erendum which originally adopted the legislation; or 
(3) if the United States Congress effectively 
amends or repeals this Act. 
SEC. 9. APPLICATION REQUIREMENTS. 
Candidates for representative to the Utah Navajo 
Trust Fund Commission shall attest that he or she has 
not been convicted at any time of an offense of dishonest 
conduct against, or arising out of, any Federal, State, or 
Navajo Nation law. 
SEC. 10. UTAH NAVAJO TRUST FUND COMMISSION. 
(a) ESTABLISHMENT.—Not later than 90 days after 
the date of the enactment of this Act, there shall be estab-
lished a Utah Navajo Trust Fund Commission. 
(b) MEMBERS; TERMS.—The Commission shall have 
7 members, composed of one member elected by each of 
the 7 Utah Navajo Chapters. Each member shall serve 
for a term of 4 years. 
(c) DUTIES.—The Commission shall— 
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(1) select by at least a 5⁄7 vote an independent 
Trust Administrator for the Utah Navajo Trust 
Fund that meets the requirements of this Act and 
that has no conflict of interest with the Commission; 
(2) ensure that amounts in the Trust are in-
vested, managed, and administered for the health, 
education, and general welfare of the beneficiaries; 
(3) establish written investment goals, objec-
tives, and guidelines for the investment of the Trust 
assets, determine projects to fund, define rules of 
eligibility, establish applications, and monitor imple-
mentation of the Utah Navajo Trust Fund; 
(4) authorize expenditure of amounts in the 
Utah Navajo Trust Fund for approved projects only; 
(5) report to the beneficiaries through each 
Chapter on— 
(A) details of recommended expenditures 
as they relate to community purposes; 
(B) the achievement of the objectives of 
the Utah Navajo Trust Fund; and 
(C) future projects, plans, and programs 
under consideration; 
(6) have a thorough understanding of this Act; 
(7) ensure that not more than 5 percent of the 
amounts in the Utah Navajo Trust Fund in any fis-
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cal year are expended on administrative costs of the 
Commission and the Trust Administrator; 
(8) not use Trust assets for the personal use of 
the Commission members; 
(9) obtain an annual independent audit of the 
Utah Navajo Trust Fund; 
(10) report to the beneficiaries through each 
Chapter— 
(A) on the audit obtained by the Commis-
sion and the Trust Administrator; 
(B) the use of the Trust property for im-
plementation and community purposes as pro-
vided in this Act and the annual assessment re-
quired by this section; and 
(C) the investment of the Trust property, 
including compliance with the objectives of the 
Trust and results for each year; 
(11) establishing and making available to the 
beneficiaries policies and procedures for Trust Fund 
management and accounting; 
(12) providing adequate staffing, supervision, 
and training for Trust Fund management and ac-
counting; 
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(13) prepare and maintain a census of bene-
ficiaries based on data and documentation provided 
by the Chapters; 
(14) administer its duties pursuant to this Act 
in offices located in Montezuma Creek on the Navajo 
Nation Reservation in San Juan County, Utah; 
(15) establish a process by which the bene-
ficiaries can apply for health, education, and housing 
assistance; 
(16) ensure that Navajos living outside of the 
Navajo Nation in San Juan County, Utah, remain 
eligible for educational assistance from the Trust 
Fund; 
(17) to make rules to govern its operations, em-
ploy professional staff, and contract with outside ad-
visers to provide legal or other services necessary for 
the proper administration of this Act; and 
(18) maintain records of Commission meetings, 
decisions, and accounts. 
(d) AUTHORITIES.—The Commission may— 
(1) retain independent advisors to assist it in 
the formulation and adoption of its investment 
guidelines; and 
(2) hire employees as necessary to assist in car-
rying out the Commission’s duties under this Act. 
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(e) APPLICABLE LAW.—The Commission, its officers, 
agents, and employees shall be subject to the laws of the 
State of Utah and shall undertake its duties in accordance 
with the laws of the State of Utah. In the absence of more 
specific statutory duties and responsibilities under Federal 
or State law, common law duties shall govern the adminis-
tration of the Trust. 
(f) STATUS UNDER CERTAIN LAWS.—The Commis-
sion, its officers, agents, and employees shall not be a de-
partment, agency, or instrumentality of the Government 
of the United States and shall not be subject to title 31, 
United States Code. The Commission, and its officers, em-
ployees, and agents shall not be considered officers, em-
ployees, or agents of the Government of the United States. 
(g) USES OF TRUST ASSETS.—Not later than 60 
days after receipt of the Trust assets pursuant to section 
12, and annually thereafter, the Commission shall conduct 
an annual assessment to determine the eligible uses of 
Trust assets and modify uses based on assessment anal-
ysis results. Trust assets may only be used for the health, 
education, and welfare of the beneficiaries. 
(h) ASSESSMENT.—The term ‘‘assessment’’ means 
taking one of the following actions to assess the health, 
education, and general welfare needs of the beneficiaries— 
(1) a survey of the beneficiaries that includes— 
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(A) a random sample large enough to se-
cure an accurate representation of their needs; 
and 
(B) a response rate large enough to pro-
vide an accurate representation of those needs; 
(2) at least three public hearings held to survey 
and solicit beneficiary needs that are advertised for 
two weeks before the hearing by— 
(A) announcements by the Utah Navajo 
Chapters, if allowed by the Chapter; 
(B) notice posted in the Chapter buildings 
and other public locations, if allowed by the 
Chapter; 
(C) notice of the meeting announced on 
the radio or television; and 
(D) notice of the meeting published at 
least once per week for two consecutive weeks 
in any newspaper of reservation wide and San 
Juan County wide circulation; or 
(3) a physical inventory— 
(A) conducted by the Commission; and 
(B) coordinated with— 
(i) each Utah Navajo Chapter; 
(ii) other sources; and 
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(iii) conducted to determine needs in-
cluding— 
(I) the number and capacity of 
public facilities; 
(II) the extent of graveled and 
paved— 
(aa) roads; or 
(bb) airstrips; 
(III) the inventory of water re-
sources; 
(IV) the extent of residential 
electrical power distribution; and 
(V) the number and condition of 
housing units. 
(i) ASSESSMENT ANALYSIS RESULTS.—The term 
‘‘assessment analysis results’’ means the analysis— 
(1) of the results of the assessment required by 
this section; and 
(2) that is developed by the Commission in ac-
cordance with this section. 
SEC. 11. UTAH NAVAJO TRUST FUND TRUST ADMINIS-
TRATOR. 
(a) DUTIES.—The Trust Administrator selected by 
the Commission under section 10 shall— 
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(1) have a thorough understanding of this Act, 
and other policies, procedures, or documents pre-
pared by the Commission; 
(2) provide professional financial management 
services to assist the Commission in the investment 
and administration of the Utah Navajo Trust Fund; 
(3) receive and pay out of the Utah Navajo 
Trust Fund in accordance with funding directions 
received from the Commission and Trust administra-
tion fees and expenses approved by the Commission; 
(4) in conjunction with the Commission, obtain 
an independent annual audit of the Utah Navajo 
Trust Fund; 
(5) report to the Commission and the Chapters 
on— 
(A) the audit; 
(B) the use of the Trust Property for the 
health, education, and welfare purposes as pro-
vided in this Act and the annual assessment re-
quired by section 10; and 
(C) the investment of the Trust property, 
including compliance with the objectives of the 
Trust and results for each year; 
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(6) invest the assets of the Trust in a manner 
consistent with the investment guidelines developed 
by the Commission; 
(7) provide for adequate systems for accounting 
for and reporting Trust Fund balances; 
(8) provide for adequate controls over receipts 
and disbursements; 
(9) provide for periodic, timely reconciliations of 
financial records to ensure the accuracy of account 
information; 
(10) determine accurate cash balances; 
(11) prepare and supply to the Commission 
periodic account statements; and 
(12) provide adequate staffing, supervision, and 
training for Trust Fund management and account-
ing. 
(b) COMPENSATION.—The Trust Administrator may 
be compensated for such services on a fixed contract fee 
basis or on such other terms and conditions as are reason-
able and customary for such services. 
(c) REMOVAL.—The Trust Administrator may be re-
moved by a majority vote of the Commission for illegal 
conduct, laundering money, abusing funds, or upon at 
least a 5⁄7 vote of the Commission for any reason. 
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(d) APPLICABLE LAW.—The Trust Administrator, its 
officers, agents, and employees shall be subject to the laws 
of the State of Utah. The Trust Administrator, its offi-
cers, agents, and employees shall take any actions in ac-
cordance with the laws of the State of Utah. In the ab-
sence of more specific statutory duties and responsibilities 
under Federal or State law, common law duties shall gov-
ern the administration of the Trust. 
(e) STATUS UNDER CERTAIN LAWS.—The Trust Ad-
ministrator, its officers, agents, and employees shall not 
be a department, agency, or instrumentality of the Gov-
ernment of the United States and shall not be subject to 
title 31, United States Code. The Financial Trustee and 
its officers, employees, and agents shall not be considered 
officers, employees, or agents of the Government of the 
United States. 
SEC. 12. ESTABLISHMENT OF TRUST. 
(a) AUDIT.—Not later than 90 days after selection 
of a Trust Administrator by the Utah Navajo Trust Fund 
Commission in accordance with this Act, the State of Utah 
shall prepare an audit and accounting of the Trust assets 
in the Utah Navajo Trust Fund, as established and ad-
ministered by the State of Utah prior to passage of this 
Act. Not later than 120 days after selection of a Trust 
Administrator by the Utah Navajo Trust Fund Commis-
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sion, the State of Utah shall transfer the Trust assets to 
the Trust Administrator selected pursuant to this Act. 
The Trust Administrator shall establish the Utah Navajo 
Trust Fund with the assets transferred from the State of 
Utah. 
(b) JUDGMENTS.—Any judgments awarded the bene-
ficiaries against the State by a court after the date of 
transfer of the assets specified in subsection (a) shall be 
transferred into the Trust Fund not later than 90 days 
after any final judgment against the State. 
SEC. 13. FIDUCIARY STANDARDS OF THE TRUSTEE. 
The Commission and the Trust Administrator and 
their officers, agents, and employees shall discharge their 
duties with respect to the Trust assets solely in the inter-
est of the Utah Navajo Trust Fund and through it, the 
beneficiaries of the Trust— 
(1) for the exclusive purpose of— 
(A) providing benefits to the beneficiaries; 
and 
(B) defraying reasonable expenses of ad-
ministering the functions of the Trust, not to 
exceed 5 per cent per annum; 
(2) by diversifying investments so as to mini-
mize the risk of large losses and to avoid dispropor-
tionate influence over a particular industry or firm, 
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unless under the circumstances it is clearly prudent 
not to do so; 
(3) in accordance with this Act; 
(4) in choosing and contracting for professional 
investment management services and in continuing 
the use of an investment manager, the Commission 
must act prudently and in the interest of the bene-
ficiaries; 
(5) using the highest degree of care, skill, pru-
dence, diligence, and loyalty to— 
(A) protect and preserve the trust assets 
from loss, damage, unlawful alienation, waste, 
and depletion; 
(B) ensure that management of Trust as-
sets promotes the interest of the beneficial 
owner, and supports the eligible use of the as-
sets specified in this Act; 
(C) enforce the terms of all leases or other 
agreements that provide for the use of Trust 
assets, and take appropriate steps to remedy 
trespass on Trust assets; and 
(D) account for and identify, collect, de-
posit, and invest, in a timely manner, income 
due or held on behalf of the beneficiaries and 
in accordance with this Act; 
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(6) maintain a verifiable system of records that, 
at a minimum, is capable of identifying, with respect 
to a Trust asset— 
(A) the location of the Trust asset; 
(B) any legal encumbrances (such as leases 
or permits) applicable to the Trust asset; 
(C) the user of the Trust asset; 
(D) any rent or other payments made; 
(E) the value of land and resources associ-
ated with the Trust asset; 
(F) dates of collections, deposits, transfers, 
disbursements, imposition of third-party obliga-
tions, statements of earnings, investment in-
struments, and closure of all accounts relating 
to the trust fund asset; 
(G) documents pertaining to actions taken 
to prevent or compensate for any diminishment 
of a Trust asset; and 
(H) documents that evidence the manage-
ment and disposition of a Trust asset; 
(7) establish and maintain a system of records 
that permits beneficiaries to obtain information re-
garding Trust assets in a timely manner; 
(8) invest Trust funds to ensure that the Trust 
remains reasonably productive for the beneficiaries 
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consistent with market conditions existing at the 
time at which investment is made; and 
(9) communicate with beneficiaries regarding 
the management and administration of Trust assets. 
SEC. 14. PROHIBITIONS WITH RESPECT TO THE TRUST. 
(a) IN GENERAL.—The Commission and the Trust 
Administrator and their officers, agents, and employees 
shall not— 
(1) deal with the assets of the Trust in their 
own interest; 
(2) in an individual or in any other capacity act 
in any transaction involving the assets of the Trust 
on behalf of a party (or represent a party) whose in-
terests are adverse to the interests of the Trust or 
the interests of the beneficiaries; or 
(3) receive any consideration for their own per-
sonal account from any party dealing with the assets 
of the Trust. 
(b) LIABILITY.—Any provision in an agreement or in-
strument that purports to relieve the Commission or the 
Trust Administrator from responsibility or liability for a 
responsibility, obligation, or duty under this Act shall be 
void. Nothing in this Act shall preclude— 
(1) the Trust from purchasing insurance for the 
Commission or Trust Administrator or for itself to 
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cover liability or losses occurring by reason of the 
act or omission of the Commission or Trust Admin-
istrator if such insurance permits recourse by the in-
surer against the Commission or Trust Adminis-
trator in the case of a breach of fiduciary obligation 
by such Commission or Trust Administrator; or 
(2) the Commission or Trust Administrator 
from purchasing insurance to cover liability under 
this Act from and for their own account. 
(c) LIMITATION ON ADMINISTRATIVE FEE USE.— 
The Commission or Trust Administrator may not use 
Trust Funds, nor claim as administrative costs, funds 
used to lobby any Federal, State, or tribal government nor 
to travel outside of the boundaries of the Navajo Nation 
other than necessary to meet with investment advisors or 
auditors or to maintain real property owned by the Trust 
Fund at the time of passage of this Act. 
SEC. 15. LIABILITY AND BONDING. 
The Commission or Trust Administrator and their of-
ficers, employees, and agents who handle funds or other 
property of the Trust (hereafter in this subsection referred 
to as ‘‘Trust officials’’) shall be bonded. Such bond shall 
provide protection to the Trust against loss by reason of 
acts of fraud or dishonesty on the part of any Trust offi-
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cial, directly or through the connivance of others, and shall 
be in accordance with the following: 
(1) The amount of such bond shall be fixed at 
the beginning of each fiscal year of the Trust by the 
Utah Navajo Trust Fund Commission. Such amount 
shall not be less than 10 percent of the amount of 
the funds handled. 
(2) It shall be unlawful for any Trust official to 
receive, handle, disburse, or otherwise exercise cus-
tody or control of any of the funds or other property 
of the Trust without being bonded as required by 
this subsection and it shall be unlawful for any 
Trust official, or any other person having authority 
to direct the performance of such functions, or any 
of them, to be performed by any Trust official, with 
respect to whom the requirements of this subsection 
have not been met. 
(3) It shall be unlawful for any person to pro-
cure any bond required by this subsection from any 
surety or other company or through any agent or 
broker in whose business operations such person has 
any control or significant financial interest, direct or 
indirect. 
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SEC. 16. AUDIT AND REPORT. 
(a) IN GENERAL.—The Trust Administrator shall ac-
count for the daily and annual balances of all Trust funds. 
(b) PERIODIC STATEMENT OF PERFORMANCE.— 
(1) IN GENERAL.—Not later than 20 business 
days after the close of the second calendar quarter 
after the date the State transfers the assets in sec-
tion 12, and not later than 20 business days after 
the close of each calendar quarter thereafter, the 
Trust Administrator shall provide to the bene-
ficiaries, through the Commission and each Chapter, 
for whom the Financial Trustee manages the Trust 
assets, a statement of performance for the Trust 
funds. Such periodic Statement of Performance shall 
be published in a newspaper of San Juan countywide 
and reservation wide circulation and contain a sum-
mary of the statement. 
(2) REQUIREMENTS.—Each statement under 
subparagraph (A) shall identify, with respect to the 
period covered by the statement— 
(A) the source, type, and status of the 
funds; 
(B) the beginning balance of the funds; 
(C) the gains and losses of the funds; 
(D) receipts and disbursements of the 
funds; and 
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