51-8-303 - Requirements of member institutions of the state system of higher education. - Utah Statutes

51-8-303. Requirements of member institutions of the state system of highereducation.
(1) The State Board of Regents shall:
(a) establish asset allocations for the institutional funds;
(b) in consultation with the commissioner of higher education, establish guidelines forinvesting 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 ofthe State Board of Regents' guidelines unless the State Board of Regents approves an investmentpolicy 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 State Board ofRegents' conflict of interest requirements unless the State Board of Regents approves the conflictof 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'sinstitutional 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 withinvesting the institutional funds;
(ii) ensure that the groups defined under Subsection (3)(b)(i) at least include the board oftrustees, an investment committee, institutional staff, and a custodian bank;
(iii) create an investment committee that includes not more than two members of theboard 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 institutionalfunds;
(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 ofinterest policy, or both, shall submit the policy, and any subsequent amendments, to the StateBoard of Regents for its approval.
(4) Each higher education institution shall make monthly reports detailing the depositand investment of funds in its custody or control to:
(a) its board of trustees; and
(b) the State Board of Regents.
(5) The state auditor may conduct or cause to be conducted an annual audit of theinvestment program of each higher education institution.
(6) The State Board of Regents shall submit an annual report to the governor and theLegislature summarizing all investments by higher education institutions under its jurisdiction.

Enacted by Chapter 59, 2007 General Session