Section 603 – Director authority, responsibilities, and duties.

• (1)
  • (a) The director may delegate to an external agent the management of a portion of the trust fund money or assets, if the delegation is prudent under the circumstances and consistent with the purposes of the trust fund.
  • (b) The director shall periodically review the actions of an agent under Subsection (1)(a) in order to monitor the agent’s performance and compliance with the scope and terms of the delegation.

• (2) The director shall act in good faith, with the care that a prudent professional in a like position would exercise under similar circumstances, in:
  • (a) selecting an agent;
  • (b) establishing the scope and terms of a delegation under Subsection (1); and
  • (c) periodically reviewing the agent’s actions, as provided in Subsection (1)(b).

• (3) In performing a delegated function, an agent owes a duty to the state and the beneficiaries to exercise reasonable care to comply with the scope and terms of the delegation.

Enacted by Chapter 426, 2014 General Session