Representative Michael E. Noel proposes the following substitute bill:


1     
SCHOOL CHILDREN'S TRUST SECTION AND BENEFICIARY

2     
ADVOCATE AMENDMENTS

3     
2017 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Michael E. Noel

6     
Senate Sponsor: Margaret Dayton

7     

8     LONG TITLE
9     General Description:
10          This bill amends provisions regarding the School Children's Trust Section under the
11     State Board of Education.
12     Highlighted Provisions:
13          This bill:
14          ▸     creates the beneficiary advocate under the State Board of Education:
15               •     shall take an oath of office as specified;
16               •     shall serve for a term of four years;
17               •     may serve multiple terms; and
18               •     is exempt from the Utah State Personnel Management Act;
19          ▸     amends the reasons for which the State Board of Education may remove the
20     beneficiary advocate; and
21          ▸     requires the School Children's Trust Section to annually:
22               •     review distribution recipient's compliance with applicable laws and rules; and
23               •     report any findings to the appropriate governing bodies.
24     Money Appropriated in this Bill:
25          None

26     Other Special Clauses:
27          None
28     Utah Code Sections Affected:
29     AMENDS:
30          53A-16-101.6 (Superseded 07/01/17), as last amended by Laws of Utah 2016, Chapter
31     144
32          53A-16-101.6 (Effective 07/01/17), as last amended by Laws of Utah 2016, Chapters
33     144 and 172
34          53C-1-103, as last amended by Laws of Utah 2012, Chapter 224
35          53D-1-102, as last amended by Laws of Utah 2016, Chapter 144
36          53D-1-202, as enacted by Laws of Utah 2014, Chapter 426
37          53D-1-304, as enacted by Laws of Utah 2014, Chapter 426
38          53D-1-403, as last amended by Laws of Utah 2015, Chapter 276
39          53D-1-501, as enacted by Laws of Utah 2014, Chapter 426
40     

41     Be it enacted by the Legislature of the state of Utah:
42          Section 1. Section 53A-16-101.6 (Superseded 07/01/17) is amended to read:
43          53A-16-101.6 (Superseded 07/01/17). Creation of School Children's Trust Section
44     -- Duties.
45          (1) As used in this section:
46          (a) "Beneficiary advocate" means the individual, as an independent employee, who
47     shall fulfill the duties prescribed in this section to the trust land beneficiaries as the primary
48     beneficiary representative set forth in Section 53C-1-103(7).
49          (b) "Board" means the Sate Board of Education.
50          [(a)] (c) "School and institutional trust lands" is as defined in Section 53C-1-103.
51          [(b)] (d) "Section" means the School Children's Trust Section created in this section.
52          [(c)] (e) "Trust" means:
53          (i) the School LAND Trust Program created in Section 53A-16-101.5; and
54          (ii) the lands and funds associated with the trusts described in Subsection
55     53C-1-103(7).
56          (2) There is established a School Children's Trust Section under the [State Board of

57     Education] board.
58          [(3) (a) The section shall have a director.]
59          (3) (a) There is created an independent beneficiary advocate who shall:
60          (i) act in a fiduciary capacity to the trust and to the trust beneficiaries in accordance
61     with the principles set forth in Section 53C-1-102; and
62          (ii) take an oath of office before assuming the position of beneficiary advocate as
63     follows: "I solemnly swear to carry out my duties as beneficiary advocate with undivided
64     loyalty to the beneficiaries, to the best of my abilities and according to law."
65          (b) The [director] beneficiary advocate shall have professional qualifications and
66     expertise in the areas generating revenue to the trust, including:
67          (i) economics;
68          (ii) energy and mineral development;
69          (iii) finance;
70          (iv) investments;
71          (v) public education;
72          (vi) real estate;
73          (vii) renewable resources;
74          (viii) risk management; and
75          (ix) trust law.
76          (c) (i) The [director] beneficiary advocate shall:
77          (A) be appointed as provided in this Subsection (3)[.]; and
78          (B) except as provided in Subsection (3)(c)(ii), serve for a term of four years.
79          (ii) The four-year term of an individual who is the beneficiary advocate on July 1,
80     2017, shall expire on July 1, 2021, unless a vacancy occurs.
81          (iii) The beneficiary advocate may serve more than one term.
82          (iv) The beneficiary advocate shall notify the board whether the beneficiary advocate is
83     willing to be considered for reappointment to another term no later than four months before the
84     end of the current term.
85          (v) The board shall announce whether the beneficiary advocate is reappointed for
86     another term no later than three months before the end of the current term.
87          (d) [The] When a vacancy for the position of beneficiary advocate occurs, the School

88     and Institutional Trust Lands Board of Trustees nominating committee shall submit to the
89     [State Board of Education] board the name of one [person] individual to serve as [director]
90     beneficiary advocate.
91          (e) The [State Board of Education] board may:
92          (i) appoint the [person] individual described in Subsection (3)(d) to serve as [director]
93     beneficiary advocate; or
94          (ii) deny the appointment of the [person] individual described in Subsection (3)(d) to
95     serve as [director] beneficiary advocate.
96          (f) If the [State Board of Education] board denies an appointment under this Subsection
97     (3):
98          (i) the [State Board of Education] board shall provide in writing one or more reasons
99     for the denial to the School and Institutional Trust Lands Board of Trustees nominating
100     committee; and
101          (ii) the School and Institutional Trust Lands Board of Trustees nominating committee
102     and the [State Board of Education] board shall follow the procedures and requirements of this
103     Subsection (3) until the [State Board of Education] board appoints a [director] beneficiary
104     advocate.
105          (g) (i) The [State Board of Education] board may remove the [director] beneficiary
106     advocate only:
107          (A) by majority vote [of a quorum] of all board members in an open and public
108     meeting after proper notice and the inclusion of the removal item on the agenda[.]; and
109          (B) for neglect of fiduciary duty, malfeasance, gross negligence, incapacitation, or
110     insubordination for the failure to follow the rules, policies, and directives of the board for the
111     proper administration of the School Land Trust Program.
112          (ii) The termination of an individual under this Subsection (3)(g) is effective
113     immediately and creates a vacancy in the position of the beneficiary advocate.
114          (h) The position of beneficiary advocate is exempt from the career service provisions
115     of Title 67, Chapter 19, Utah State Personnel Management Act.
116          (4) The [State Board of Education] board shall make rules regarding:
117          (a) regular reporting from the [School Children's Trust Section director] beneficiary
118     advocate to the [State Board of Education,] board, to allow the [State Board of Education]

119     board to fulfill its duties in also representing the trust beneficiaries; and
120          (b) the day-to-day reporting of the [School Children's Trust Section director]
121     beneficiary advocate.
122          (5) (a) The [director] beneficiary advocate shall annually submit a proposed section
123     budget to the [State Board of Education] board.
124          (b) After approving a section budget, the [State Board of Education] board shall
125     annually:
126          (i) receive input on the beneficiary advocate's performance from the chair of the board
127     and director of:
128          (A) the School and Institutional Trust Lands Administration; and
129          (B) the School and Institutional Trust Fund Office;
130          (ii) establish the range and compensation of the beneficiary advocate in line with
131     comparable positions in state government, the responsibilities of the position, and the
132     qualifications required in Subsection (3)(b);
133          (iii) report the beneficiary advocate's compensation to the Public Education
134     Appropriations Subcommittee; and
135          (iv) propose the approved budget to the Legislature.
136          (6) The [director] beneficiary advocate is entitled to attend any presentation,
137     discussion, meeting, or other gathering concerning the trust, subject to:
138          (a) provisions of law prohibiting the [director's] beneficiary advocate's attendance to
139     preserve confidentiality; or
140          (b) other provisions of law that the [director's] beneficiary advocate's attendance would
141     violate.
142          (7) The section shall have a staff.
143          (8) The [section] beneficiary advocate shall protect current and future beneficiary
144     rights and interests in the trust consistent with the state's perpetual obligations under:
145          (a) the Utah Enabling Act;
146          (b) the Utah Constitution;
147          (c) state statute; and
148          (d) standard trust principles described in Section 53C-1-102.
149          (9) The [section] beneficiary advocate shall promote:

150          (a) productive use of school and institutional trust lands for the financial support of the
151     trust beneficiaries; and
152          (b) the efficient and prudent investment of funds managed by the School and
153     Institutional Trust Fund Office, created in Section 53D-1-201.
154          (10) The [section] beneficiary advocate shall provide representation, advocacy, and
155     input:
156          (a) on behalf of current and future beneficiaries of the trust, school community
157     councils, schools, and school districts;
158          (b) on federal, state, and local land decisions and policies that affect the trust; and
159          (c) to:
160          (i) the School and Institutional Trust Lands Administration;
161          (ii) the School and Institutional Trust Lands Board of Trustees;
162          (iii) the Legislature;
163          (iv) the School and Institutional Trust Fund Office, created in Section 53D-1-201;
164          (v) the School and Institutional Trust Fund Board of Trustees, created in Section
165     53D-1-301;
166          (vi) the attorney general;
167          (vii) the public; and
168          (viii) other entities as determined by the section.
169          (11) The [section] beneficiary advocate shall provide independent oversight on the
170     prudent and profitable management of the trust and report annually to the [State Board of
171     Education] board and the Legislature.
172          (12) The [section] beneficiary advocate shall provide information requested by a
173     person or entity described in Subsections (10)(c)(i) through (vii).
174          (13) (a) The section shall provide training to the entities described in Subsection
175     (13)(b) on:
176          (i) the School LAND Trust Program established in Section 53A-16-101.5; and
177          (ii) (A) a school community council established pursuant to Section 53A-1a-108; or
178          (B) a charter trust land council established under Section 53A-16-101.5.
179          (b) The section shall provide the training to:
180          (i) a local school board or a charter school governing board;

181          (ii) a school district or a charter school; and
182          (iii) a school community council.
183          (14) The section shall annually:
184          (a) review K-12 trust distribution recipient's compliance with applicable law, including
185     applicable rules, policies, and directives adopted by the board; and
186          (b) report findings to the board and other appropriate governing bodies, including:
187          (i) the School and Institutional Trust Lands Administration created in Section
188     53C-1-201 and the School and Institutional Trust Lands Board of Trustees established in
189     Section 53C-1-202;
190          (ii) the School and Institutional Trust Fund Office created in Section 53D-1-201 and
191     the School and Institutional Trust Fund Board of Trustees created in Section 53D-1-301; and
192          (iii) other designated representatives and organizations of trust beneficiaries of school
193     and institutional trust lands.
194          Section 2. Section 53A-16-101.6 (Effective 07/01/17) is amended to read:
195          53A-16-101.6 (Effective 07/01/17). Creation of School Children's Trust Section --
196     Duties.
197          (1) As used in this section:
198          (a) "Beneficiary advocate" means the individual, as an independent employee, who
199     shall fulfill the duties prescribed in this section to the trust land beneficiaries as the primary
200     beneficiary representative set forth in Section 53C-1-103(7).
201          (b) "Board" means the State Board of Education.
202          [(a)] (c) "School and institutional trust lands" is as defined in Section 53C-1-103.
203          [(b)] (d) "Section" means the School Children's Trust Section created in this section.
204          [(c)] (e) "Trust" means:
205          (i) the School LAND Trust Program created in Section 53A-16-101.5; and
206          (ii) the lands and funds associated with the trusts described in Subsection
207     53C-1-103(7).
208          (2) There is established a School Children's Trust Section under the State Board of
209     Education.
210          [(3) (a) The section shall have a director.]
211          (3) (a) There is created an independent beneficiary advocate who shall:

212          (i) act in a fiduciary capacity to the trust and to the trust beneficiaries in accordance
213     with the principles set forth in Section 53C-1-102; and
214          (ii) take an oath of office before assuming the position of beneficiary advocate and as
215     the director as follows: "I solemnly swear to carry out my duties as beneficiary advocate with
216     undivided loyalty to the beneficiaries, to the best of my abilities and according to law."
217          (b) The [director] beneficiary advocate shall have professional qualifications and
218     expertise in the areas generating revenue to the trust, including:
219          (i) economics;
220          (ii) energy and mineral development;
221          (iii) finance;
222          (iv) investments;
223          (v) public education;
224          (vi) real estate;
225          (vii) renewable resources;
226          (viii) risk management; and
227          (ix) trust law.
228          (c) (i) The [director] beneficiary advocate shall:
229          (A) be appointed as provided in this Subsection (3)[.]; and
230          (B) except as provided in Subsection (3)(c)(ii), serve for a term of four years.
231          (ii) The four-year term of an individual who is the beneficiary advocate on July 1,
232     2017, shall expire on July 1, 2021, unless a vacancy occurs.
233          (iii) The beneficiary advocate may serve more than one term.
234          (iv) The beneficiary advocate shall notify the board whether the beneficiary advocate is
235     willing to be considered for reappointment to another term no later than four months before the
236     end of the current term.
237          (v) The board shall announce whether the beneficiary advocate is reappointed for
238     another term no later than three months before the end of the current term.
239          (d) [The] When a vacancy for the position of beneficiary advocate occurs, the School
240     and Institutional Trust Lands Board of Trustees nominating committee shall submit to the
241     [State Board of Education] board the name of one [person] individual to serve as [director]
242     beneficiary advocate.

243          (e) The [State Board of Education] board may:
244          (i) appoint the [person] individual described in Subsection (3)(d) to serve as [director]
245     beneficiary advocate; or
246          (ii) deny the appointment of the [person] individual described in Subsection (3)(d) to
247     serve as [director] beneficiary advocate.
248          (f) If the [State Board of Education] board denies an appointment under this Subsection
249     (3):
250          (i) the [State Board of Education] board shall provide in writing one or more reasons
251     for the denial to the School and Institutional Trust Lands Board of Trustees nominating
252     committee; and
253          (ii) the School and Institutional Trust Lands Board of Trustees nominating committee
254     and the [State Board of Education] board shall follow the procedures and requirements of this
255     Subsection (3) until the [State Board of Education] board appoints a [director] beneficiary
256     advocate.
257          (g) (i) The [State Board of Education] board may remove the [director] beneficiary
258     advocate only:
259          (A) by majority vote [of a quorum] of all board members in an open and public
260     meeting after proper notice and the inclusion of the removal item on the agenda[.]; and
261          (B) for neglect of fiduciary duty, malfeasance, gross negligence, incapacitation or
262     insubordination for the failure to follow the rules, policies and directives of the board for the
263     proper administration of the School Land Trust Program.
264          (ii) The termination of an individual under this Subsection (3)(g) is effective
265     immediately and creates a vacancy in the position of the beneficiary advocate.
266          (h) The position of beneficiary advocate is exempt from the career service provisions
267     of Title 67, Chapter 19, Utah State Personnel Management Act.
268          (4) The [State Board of Education] board shall make rules regarding:
269          (a) regular reporting from the [School Children's Trust Section director] beneficiary
270     advocate to the [State Board of Education] board, to allow the [State Board of Education]
271     board to fulfill its duties in representing the trust beneficiaries; and
272          (b) the day-to-day reporting of the [School Children's Trust Section director]
273     beneficiary advocate.

274          (5) (a) The [director] beneficiary advocate shall annually submit a proposed section
275     budget to the [State Board of Education] board.
276          (b) After approving a section budget, the [State Board of Education] board shall
277     annually:
278          (i) receive input on the beneficiary advocate's performance from the chair of the board
279     and director of:
280          (A) the School and Institutional Trust Lands Administration; and
281          (B) the School and Institutional Trust Fund Office;
282          (ii) establish the range and compensation of the beneficiary advocate in line with
283     comparable positions in state government, the responsibilities of the position, and the
284     qualifications required in Subsection (3)(b);
285          (iii) report the beneficiary advocate's compensation to the Public Education
286     Appropriations Subcommittee; and
287          (iv) propose the approved budget to the Legislature.
288          (6) The director is entitled to attend any presentation, discussion, meeting, or other
289     gathering concerning the trust, subject to:
290          (a) provisions of law prohibiting the [director's] beneficiary advocate's attendance to
291     preserve confidentiality; or
292          (b) other provisions of law that the [director's] beneficiary advocate attendance would
293     violate.
294          (7) The section shall have a staff.
295          (8) The [section] beneficiary advocate shall protect current and future beneficiary
296     rights and interests in the trust consistent with the state's perpetual obligations under:
297          (a) the Utah Enabling Act;
298          (b) the Utah Constitution;
299          (c) state statute; and
300          (d) standard trust principles described in Section 53C-1-102.
301          (9) The [section] beneficiary advocate shall promote:
302          (a) productive use of school and institutional trust lands for the financial support of the
303     trust beneficiaries; and
304          (b) the efficient and prudent investment of funds managed by the School and

305     Institutional Trust Fund Office, created in Section 53D-1-201.
306          (10) The [section] beneficiary advocate shall provide representation, advocacy, and
307     input:
308          (a) on behalf of current and future beneficiaries of the trust, school community
309     councils, schools, and school districts;
310          (b) on federal, state, and local land decisions and policies that affect the trust; and
311          (c) to:
312          (i) the School and Institutional Trust Lands Administration;
313          (ii) the School and Institutional Trust Lands Board of Trustees;
314          (iii) the Legislature;
315          (iv) the School and Institutional Trust Fund Office, created in Section 53D-1-201;
316          (v) the School and Institutional Trust Fund Board of Trustees, created in Section
317     53D-1-301;
318          (vi) the attorney general;
319          (vii) the public; and
320          (viii) other entities as determined by the section.
321          (11) The [section] beneficiary advocate shall provide independent oversight on the
322     prudent and profitable management of the trust and report annually to the [State Board of
323     Education] board and the Legislature.
324          (12) The [section] beneficiary advocate shall provide information requested by a
325     person or entity described in Subsections (10)(c)(i) through (vii).
326          (13) (a) The section shall provide training to the entities described in Subsection
327     (13)(b) on:
328          (i) the School LAND Trust Program established in Section 53A-16-101.5; and
329          (ii) (A) a school community council established pursuant to Section 53A-1a-108; or
330          (B) a charter trust land council established under Section 53A-16-101.5.
331          (b) The section shall provide the training to:
332          (i) a local school board or a charter school governing board;
333          (ii) a school district or a charter school; and
334          (iii) a school community council.
335          (14) The section shall annually:

336          (a) review [each school's] K-12 trust distribution recipient's compliance with applicable
337     law, including applicable rules, policies, and directives adopted by the [State Board of
338     Education] board; and
339          (b) report findings to the [State Board of Education.] board and other appropriate
340     governing bodies, including:
341          (i) the School and Institutional Trust Lands Administration created in Section
342     53C-1-201 and the School and Institutional Trust Lands Board of Trustees established in
343     Section 53C-1-202;
344          (ii) the School and Institutional Trust Fund Office created in Section 53D-1-201 and
345     the School and Institutional Trust Fund Board of Trustees created in Section 53D-1-301; and
346          (iii) other designated representatives and organizations of trust beneficiaries of school
347     and institutional trust lands.
348          Section 3. Section 53C-1-103 is amended to read:
349          53C-1-103. Definitions.
350          As used in this title:
351          (1) "Administration" means the School and Institutional Trust Lands Administration.
352          (2) "Board" or "board of trustees" means the School and Institutional Trust Lands
353     Board of Trustees.
354          (3) "Director" or "director of school and institutional trust lands" means the chief
355     executive officer of the School and Institutional Trust Lands Administration.
356          (4) "Mineral" includes oil, gas, and hydrocarbons.
357          (5) "Nominating committee" means the committee that nominates candidates for
358     positions and vacancies on the board.
359          (6) "Policies" means statements applying to the administration that broadly prescribe a
360     future course of action and guiding principles.
361          (7) "Primary beneficiary representative" means the beneficiary advocate appointed by
362     the State Board of Education acting with undivided loyalty consistent with the fiduciary duties
363     and principles set forth in Section 53C-1-102 for the financial support of and as representative
364     on behalf of the following trusts:
365          (a) the trust established for common schools;
366          (b) the trust established for schools for the blind; and

367          (c) the trust established for schools for the deaf.
368          (8) "School and institutional trust lands" or "trust lands" means those properties
369     granted by the United States in the Utah Enabling Act to the state in trust, and other lands
370     transferred to the trust, which must be managed for the benefit of:
371          (a) the state's public education system; or
372          (b) the institutions of the state which are designated by the Utah Enabling Act as
373     beneficiaries of trust lands.
374          (9) The director of the School and Institutional Trust Lands Administration shall use
375     best efforts to provide independent and separate space for the beneficiary advocate created in
376     Section 53A-16-101.6, with costs charged to the section for the use of the facilities equal to
377     those charged to divisions in the administration.
378          Section 4. Section 53D-1-102 is amended to read:
379          53D-1-102. Definitions.
380          (1) "Account" means the School and Institutional Trust Fund Management Account,
381     created in Section 53D-1-203.
382          (2) "Beneficiaries":
383          (a) means those for whose benefit the trust fund is managed and preserved, consistent
384     with the enabling act, the Utah Constitution, and state law; and
385          (b) does not include other government institutions or agencies, the public at large, or
386     the general welfare of the state.
387          (3) "Beneficiary advocate" means the same as that term is defined in Section
388     53A-16-101.6.
389          [(3)] (4) "Board" means the board of trustees established in Section 53D-1-301.
390          [(4)] (5) "Director" means the director of the office.
391          [(5)] (6) "Enabling act" means the act of Congress, dated July 16, 1894, enabling the
392     people of Utah to form a constitution and state government and to be admitted into the Union.
393          [(6)] (7) "Nominating committee" means the committee established under Section
394     53D-1-501.
395          [(7)] (8) "Office" means the School and Institutional Trust Fund Office, created in
396     Section 53D-1-201.
397          [(8)] (9) "School children's trust section" means the School Children's Trust Section

398     under the State Board of Education, established in Section 53A-16-101.6.
399          [(9)] (10) "Trust fund" means money derived from:
400          (a) the sale or use of land granted to the state under Sections 6, 8, and 12 of the
401     enabling act;
402          (b) proceeds referred to in Section 9 of the enabling act from the sale of public land;
403     and
404          (c) revenue and assets referred to in Utah Constitution, Article X, Section 5,
405     Subsections (1)(c), (e), and (f).
406          Section 5. Section 53D-1-202 is amended to read:
407          53D-1-202. Access to office records and personnel.
408          (1) The office shall provide board members and the [director of the school children's
409     trust section] beneficiary advocate access to all office records and personnel as necessary for
410     board members and the [director of the school children's trust section] beneficiary advocate to
411     fulfill their responsibilities to ensure that the office is in full compliance with applicable law
412     and policies.
413          (2) If the director requires, board members and the [director of the school children's
414     trust section] beneficiary advocate shall maintain confidentiality of information they obtain
415     from office records and personnel.
416          Section 6. Section 53D-1-304 is amended to read:
417          53D-1-304. Board meetings.
418          (1) The board shall hold at least nine meetings per year to conduct business.
419          (2) The board chair or two board members:
420          (a) may call a board meeting; and
421          (b) if calling a board meeting, shall provide as much advance notice as is reasonable
422     under the circumstances to all board members, the director, and the [director of the school
423     children's trust section] beneficiary advocate.
424          (3) Any board member may place an item on a board meeting agenda.
425          (4) The board shall annually adopt a set of parliamentary procedures to govern board
426     meetings.
427          (5) The board may establish an attendance policy to govern the attendance of board
428     members at board meetings.

429          Section 7. Section 53D-1-403 is amended to read:
430          53D-1-403. Reports.
431          (1) At least annually, the director shall report in person to the Legislative Management
432     Committee, the governor, and the State Board of Education, concerning the office's
433     investments, performance, estimated distributions, and other activities.
434          (2) The director shall report to the board concerning the work of the director and the
435     investment activities and other activities of the office:
436          (a) in a public meeting at least nine times per year; and
437          (b) as otherwise requested by the board.
438          (3) (a) Before November 1 of each year, the director shall:
439          (i) submit a written report to school community councils, created under Section
440     53A-1a-108, and charter trust land councils, established under Section 53A-16-101.5
441     concerning the office's investments, performance, estimated distributions, and other activities;
442     and
443          (ii) post the written report described in Subsection (3)(a)(i) on the office's website.
444          (b) A report under Subsection (3)(a) shall be prepared in simple language designed to
445     be understood by the general public.
446          (4) The director shall provide to the board:
447          (a) monthly written reports on the activities of the office;
448          (b) quarterly financial reports; and
449          (c) any other report requested by the board.
450          (5) The director shall:
451          (a) invite the [director of the school children's trust section] beneficiary advocate to
452     attend any meeting at which the director gives a report under this section; and
453          (b) provide the [director of the school children's trust section] beneficiary advocate:
454          (i) a copy of any written report prepared under this section; and
455          (ii) any other report requested by the [director of the school children's trust section]
456     beneficiary advocate.
457          Section 8. Section 53D-1-501 is amended to read:
458          53D-1-501. Nominating committee -- Membership -- Terms -- Vacancies --
459     Compensation.

460          (1) There is established a School and Institutional Trust Fund Nominating Committee.
461          (2) The nominating committee consists of:
462          (a) two members appointed by the State Board of Education;
463          (b) two members, appointed by the [director of the school children's trust section]
464     beneficiary advocate, each of whom is a member of a respected professional organization;
465          (c) the chief investment officer of the University of Utah endowment;
466          (d) the chief investment officer of the Utah State University endowment; and
467          (e) the director of the school children's trust section.
468          (3) An individual appointed as a member of the nominating committee under
469     Subsection (2)(a) or (b) shall be appointed based on the individual's expertise in:
470          (a) investment finance;
471          (b) institutional asset management;
472          (c) trust administration; or
473          (d) the practice of law in the areas of capital markets, securities law, trusts,
474     foundations, endowments, investment finance, institutional asset management, or trust
475     administration.
476          (4) The term of a member appointed under Subsection (2)(a) or (b) is four years, except
477     that the initial term of members appointed under Subsection (2)(b) is two years.
478          (5) A nominating committee member shall serve until a successor is appointed and
479     qualified.
480          (6) (a) If a member appointed under Subsection (2)(a) or (b) leaves office, the vacancy
481     shall be filled in the same manner as the initial appointment under Subsection (2)(a) or (b).
482          (b) An individual appointed to fill a vacancy under Subsection (6)(a) serves the
483     remainder of the unexpired term.
484          (7) A member of the nominating committee may not receive compensation or benefits
485     for the member's service, but may receive per diem and travel expenses in accordance with:
486          (a) Section 63A-3-106;
487          (b) Section 63A-3-107; and
488          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
489     63A-3-107.