Effective 7/1/2023
53B-7-802. Higher Education Student Success Endowment.
(1) |
There is created the Higher Education Student Success Endowment. |
Terms Used In Utah Code 53B-7-802 v2
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Authority: means the Utah Higher Education Assistance Authority. See Utah Code 53B-7-801
- Board: means the Utah Board of Higher Education described in Section 53B-1-402. See Utah Code 53B-1-101.5
- Endowment: means the Higher Education Student Success Endowment created in Section 53B-7-802. See Utah Code 53B-7-801
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(2) |
The endowment consists of:
(a) |
the proceeds from divestment of the dissolved Utah Higher Education Assistance Authority‘s loan portfolio; |
(b) |
appropriations made to the endowment by the Legislature, if any; |
(c) |
income from the investment of the endowment; and |
(d) |
other revenues received from other sources. |
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(3) |
The board shall account for the receipt and expenditures of endowment money in accordance with the policies and guidance of the Division of Finance. |
(4) |
(a) |
(i) |
The state treasurer shall invest the endowment money with the primary goal of providing for stability, income, and growth of the principal. |
(ii) |
The state treasurer may deduct any administrative costs incurred in managing endowment assets from earnings before distributing the earnings. |
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(b) |
Nothing in this section requires a specific outcome in investing. |
(c) |
The state treasurer may employ professional asset managers to assist in the investment of assets of the endowment. |
(d) |
The state treasurer may only provide compensation to asset managers from earnings generated by the endowment’s investments. |
(e) |
The state treasurer shall invest and manage the endowment assets as a prudent investor would, by:
(i) |
considering the purposes, terms, distribution requirements, and other circumstances of the endowment; and |
(ii) |
exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor. |
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(f) |
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:
(i) |
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 |
(ii) |
evaluate the state treasurer’s investment and management decisions respecting individual assets not in isolation, but in context of an endowment portfolio as a whole as a part of an overall investment strategy that has risk and return objectives reasonably suited to the endowment. |
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(5) |
(a) |
The endowment shall earn interest. |
(b) |
The state treasurer shall deposit the interest or other revenue earned from investment of the endowment into the endowment. |
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(6) |
The board:
(a) |
may expend money from the endowment for programs that:
(i) |
advance the system priorities as established in Subsection 53B-1-402(2)(a); and |
(ii) |
support prospective students or current students enrolled at an institution, as described in Section 53B-2-101; and |
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(b) |
may not expend money from the endowment for a capital expenditure, including the construction or lease of a capital facility or operation and maintenance of a capital facility. |
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(7) |
The board shall ensure that:
(a) |
money deposited into the endowment is irrevocable and is expended only for programs that advance the system priorities as established in Subsection 53B-1-402(2)(a); and |
(b) |
creditors of the board of directors may not seize, attach, or otherwise obtain assets of the endowment. |
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Amended by Chapter 374, 2023 General Session