Title 20, Chapter 3, Section 637
(a) The board shall have authority to establish a comprehensive
investment plan for the purposes of this article and to invest any
funds of the trust fund through the director. The director shall
invest the trust fund moneys pursuant to an investment policy
adopted by the board. Notwithstanding any state law to the
contrary, the board, through the director, shall invest or cause to
be invested amounts on deposit in the trust fund, including the
program account, in a manner reasonable and appropriate to achieve
the objectives of the plan, exercising the discretion and care of a
prudent person in similar circumstances with similar objectives. The
board shall give due consideration to the risk of, expected rate of
return of, term or maturity of, diversification of total investments
of, liquidity of, and anticipated investments in and withdrawals
from the trust fund.
(b) All contractors, vendors, or other service providers, including,
but not limited to, financial organizations, investments, and
investment options shall be selected by competitive solicitation,
unless otherwise directed by the board.
(c) All investments shall be marked clearly to indicate ownership by
the plan and, to the extent possible, shall be registered in the
name of the plan.
(d) Subject to the terms, conditions, limitations, and restrictions
set forth in this Code section, the board may sell, assign,
transfer, and dispose of any of the securities and investments of
the plan if the sale, assignment, or transfer has the majority
approval of the entire board. The board may employ or contract with
financial organizations, investment managers, evaluation services,
or other such services as determined by the board to be necessary
for the effective and efficient operation of the program.
(e) Members and employees of the board shall be subject to the
provisions of Chapter 10 of Title 45, relating to codes of ethics
and conflicts of interest.
(f) The board shall establish criteria for financial organizations,
investment managers, mutual funds, or other such entities to act as
contractors or consultants to the board. The board may contract,
either directly or through such contractors or consultants, to
provide such services as may be a part of the comprehensive
investment plan or as may be deemed necessary or proper by the
board, including without limitation providing consolidated billing,
individual and collective record keeping and accounting, and asset
purchase, control, and safekeeping.
(g) No account contributor or beneficiary shall directly or
indirectly direct the investment of any account except as may be
permitted under Section 529 of the Internal Revenue Code of 1986 or
other applicable federal law.
(h) The board may approve different investment plans and options to
be offered to participants to the extent permitted under Section 529
of the Internal Revenue Code of 1986 or other applicable federal law
and consistent with the objectives of this article, and the board
may require the assistance of investment counseling before
participation in different options.