reglab/statecodes huggingface dataset:
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 9 - Quarterly reports by state treasurer -- Audit of accounts of state treasurer -- Report of audit -- Employment of investment staff and services.

51-7-9.
Quarterly reports by state treasurer -- Audit of accounts of state treasurer -- Report of audit -- Employment of investment staff and services.
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 his 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 he considers necessary to properly carry out his responsibilities under this chapter.
Amended by Chapter 44, 1984 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 11.5 - Certified investment advisers -- Scope of and limits to authority.

Effective 5/9/2017
51-7-11.5.
Certified investment advisers -- Scope of and limits to authority.
(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.
Amended by Chapter 338, 2017 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 12.2 - Definitions -- Local government other post-employment benefits trust fund -- Investments -- State treasurer duties.

51-7-12.2.
Definitions -- Local government other post-employment benefits trust fund -- Investments -- State treasurer duties.
(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.
Enacted by Chapter 207, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 13 - Funds of member institutions of state system of higher education and public education foundations -- Authorized deposits or investments.

Effective 7/1/2020
51-7-13.
Funds of member institutions of state system of higher education and public education foundations -- Authorized deposits or investments.
(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.
Amended by Chapter 365, 2020 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 14 - Prudent man rule for management of investments -- Sale of security or investment for less than cost.

Effective 5/3/2023
51-7-14.
Prudent investor rule for management of investments -- Proxy voting -- Sale of security or investment for less than cost -- State treasurer access.
(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 75, Chapter 7, Part 9, Utah 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.
Amended by Chapter 242, 2023 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 15 - Bonds of state treasurer and other public treasurers -- Reports to council.

Effective 5/14/2019
51-7-15.
Bonds of state treasurer and other public treasurers -- Reports to council.
(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 be bonded or may procure crime or theft insurance as described in Section 17-16-11 in an amount of not less than that established by the council.
(b) The council shall base the minimum bond amount or crime or theft insurance as described in Section 17-16-11 on the amount of public funds normally in the treasurer's possession or control.
(2)
(a) When a public treasurer deposits or invests public funds as authorized by this chapter, the public treasurer and the public treasurer's bondsmen or insurers are not liable for any loss of public funds invested or deposited unless the loss is caused by the malfeasance of the public treasurer or a member of the public treasurer's staff.
(b) A public treasurer and the public treasurer's bondsmen or insurers are liable for a loss for any reason from deposits or investments not made in conformity with this chapter and the rules of the council.
(3)
(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.
Amended by Chapter 56, 2019 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 18 - Duties of council.

51-7-18.
Duties of 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.
Amended by Chapter 248, 2004 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 18.2 - Public treasurer's reports -- Contents.

51-7-18.2.
Public treasurer's reports -- Contents.
(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.
Amended by Chapter 278, 2013 General Session
Amended by Chapter 388, 2013 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 18.3 - Certified dealers' list -- Fees.

51-7-18.3.
Certified dealers' list -- Fees.
(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.
Amended by Chapter 248, 2004 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 18.4 - Certified investment advisers' list -- Fees.

51-7-18.4.
Certified investment advisers' list -- Fees.
(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.
Enacted by Chapter 248, 2004 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 19 - Increase in deposits of public funds -- Authorization.

51-7-19.
Increase in deposits of public funds -- Authorization.
(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.
Amended by Chapter 30, 1992 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 22 - Penalty for violation by public treasurer.

51-7-22.
Penalty for violation by public treasurer.
(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.
Amended by Chapter 66, 1989 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 22.4 - Penalties for violation by certified investment advisers.

51-7-22.4.
Penalties for violation by certified investment advisers.
(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.
Amended by Chapter 322, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 22.5 - Enforcement.

51-7-22.5.
Enforcement.
(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 the appropriate district court of this state or the appropriate court of 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.
Enacted by Chapter 248, 2004 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7 - State Money Management Act › Section 23 - Transition of investments previously authorized.

Effective 5/9/2017
51-7-23.
Transition of investments previously authorized.
(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.
Amended by Chapter 338, 2017 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7b - Investment of Permanent State Trust Fund Money › Part 1 - General Provisions › Section 102 - Definition.

51-7b-102.
Definition.
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.
Enacted by Chapter 211, 2013 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7b - Investment of Permanent State Trust Fund Money › Part 2 - State Treasurer Investment Duties › Section 201 - Investment of money in the permanent state trust fund.

51-7b-201.
Investment of money in the permanent state trust fund.
(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.
Enacted by Chapter 211, 2013 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 7b - Investment of Permanent State Trust Fund Money › Part 2 - State Treasurer Investment Duties › Section 202 - Prudent investor standard -- Determining whether standard met.

51-7b-202.
Prudent investor standard -- Determining whether standard met.
(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.
Enacted by Chapter 211, 2013 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 2 - Standard of Conduct in Managing and Investing Institutional Fund › Section 201 - General standard of care.

51-8-201.
General standard of care.
(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.
Enacted by Chapter 59, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 2 - Standard of Conduct in Managing and Investing Institutional Fund › Section 202 - Standards for managing and investing an institutional fund.

51-8-202.
Standards for managing and investing an institutional fund.
(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.
Enacted by Chapter 59, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 3 - Management of Endowment Funds › Section 301 - Appropriation for expenditure or accumulation of endowment fund.

Effective 5/12/2015
51-8-301.
Appropriation for expenditure or accumulation of endowment fund.
(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).
Amended by Chapter 258, 2015 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 3 - Management of Endowment Funds › Section 302 - Transferring management of endowment funds.

51-8-302.
Transferring management of endowment funds.
(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.
Enacted by Chapter 59, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 3 - Management of Endowment Funds › Section 303 - Requirements of member institutions of the state system of higher education.

Effective 7/1/2020
51-8-303.
Requirements of member institutions of the state system of higher education.
(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 and its employees shall comply with the Utah Board of Higher Education's conflict of interest requirements unless the Utah Board of Higher Education approves the conflict of interest policy that has been adopted by the higher education institution's board of trustees.
(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.
(c) Each higher education institution that adopts an investment policy, a conflict of interest policy, or both, shall submit the policy, and any subsequent amendments, to the Utah Board of Higher Education for approval.
(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.
Amended by Chapter 365, 2020 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 3 - Management of Endowment Funds › Section 304 - Rebuttable presumption of imprudence -- Scope.

51-8-304.
Rebuttable presumption of imprudence -- Scope.
(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.
Enacted by Chapter 59, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 4 - Delegation of Certain Fund Management and Investment Functions › Section 401 - Delegating management and investment functions.

51-8-401.
Delegating management and investment functions.
(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.
Enacted by Chapter 59, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 5 - Release or Modification of Restrictions on Management, Investment, or Purpose › Section 501 - Process to release or modify restrictions on management, investment, or purpose.

51-8-501.
Process to release or modify restrictions on management, investment, or purpose.
(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.
Enacted by Chapter 59, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 6 - Standards and Implementation of this Chapter › Section 601 - Reviewing compliance.

51-8-601.
Reviewing compliance.
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.
Enacted by Chapter 59, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 6 - Standards and Implementation of this Chapter › Section 602 - Application to existing institutional funds.

51-8-602.
Application to existing institutional funds.
(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.
Enacted by Chapter 59, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 6 - Standards and Implementation of this Chapter › Section 603 - Relation to Electronic Signatures in Global and National Commerce Act.

51-8-603.
Relation to Electronic Signatures in Global and National Commerce Act.
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).
Enacted by Chapter 59, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 8 - Uniform Prudent Management of Institutional Funds Act › Part 6 - Standards and Implementation of this Chapter › Section 604 - Uniformity of application and construction.

51-8-604.
Uniformity of application and construction.
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.
Enacted by Chapter 59, 2007 General Session
2023 Utah Code › Title 51 - Public Funds and Accounts › Chapter 9 - Funds and Accounts Act › Part 2 - Tobacco Settlement Funds and Endowment › Section 201 - Creation of Tobacco Settlement Restricted Account.

Effective 5/3/2023
51-9-201.
Creation of Tobacco Settlement Restricted Account.
(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.
Amended by Chapter 328, 2023 General Session