1. (1) There is created the Higher Education Student Success Endowment.

2. (2) The endowment consists of:

   1. (a) the proceeds from divestment of the dissolved Utah Higher Education Assistance Authority's loan portfolio;
   2. (b) appropriations made to the endowment by the Legislature, if any;
   3. (c) income from the investment of the endowment; and
   4. (d) other revenues received from other sources.
3. (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. (4)

   1. (a)

      1. (i) The state treasurer shall invest the endowment money with the primary goal of providing for stability, income, and growth of the principal.
      2. (ii) The state treasurer may deduct any administrative costs incurred in managing endowment assets from earnings before distributing the earnings.
   2. (b) Nothing in this section requires a specific outcome in investing.
   3. (c) The state treasurer may employ professional asset managers to assist in the investment of assets of the endowment.
   4. (d) The state treasurer may only provide compensation to asset managers from earnings generated by the endowment's investments.

   5. (e) The state treasurer shall invest and manage the endowment assets as a prudent investor would, by:

      1. (i) considering the purposes, terms, distribution requirements, and other circumstances of the endowment; and
      2. (ii) exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor.

   6. (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:

      1. (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
      2. (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.

5. (5)

   1. (a) The endowment shall earn interest.
   2. (b) The state treasurer shall deposit the interest or other revenue earned from investment of the endowment into the endowment.

6. (6) The board:

   1. (a) may expend money from the endowment for programs that:

      1. (i) advance the system priorities as established in Subsection 53H-1-203(2)(a); and
      2. (ii) support prospective students or current students enrolled at an institution; and
   2. (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.

7. (7) The board shall ensure that:

   1. (a) money deposited into the endowment is irrevocable and is expended only for programs that advance the system priorities as established in Subsection 53H-1-203(2)(a); and
   2. (b) creditors of the board of directors may not seize, attach, or otherwise obtain assets of the endowment.

Renumbered and Amended by Chapter 8, 2025 Special Session 1