DAR File No. 43644
This notice was published in the May 1, 2019, issue (Vol. 2019, No. 9) of the Utah State Bulletin.
Money Management Council, Administration
Rule R628-21
Conditions and Procedures for the Use of Reciprocal Deposits
Five-Year Notice of Review and Statement of Continuation
DAR File No.: 43644
Filed: 04/12/2019 11:59:23 AM
NOTICE OF REVIEW AND STATEMENT OF CONTINUATION
Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:
Reciprocal deposits are an allowed investment for public treasurers under Subsection 51-7-11(3)(o). They are to be made in accordance with Subsection 51-7-17(4), which allows deposits to be made in these types of investments outside of Utah, in accordance with rules made by the Money Management Council (Council) under Subsection 51-7-18(2).
Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:
There have been no written comments regarding reciprocal deposits either for or against.
Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:
The Council reviewed this rule for its continuation in their monthly meeting, and agreed that it needs to be in place as the instrument is allowed in statute and is directed to rules to provide additional criteria for the investment of public funds in this type of investment. This rule provides the conditions for the use of reciprocal deposits by public treasurers. This includes limits on the amount of public funds a entity may place in the deposits and that the entity must report the amount of public funds they have in these deposits to the Council semi-annually. This rule also requires that the provider of these reciprocal deposits to maintain errors and omission insurance coverage, and also that the provider report these deposits to the Department of Financial Institutions. This provides additional layers of protection for Utah public funds. Therefore, this rule should be continued.
The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:
Money Management CouncilAdministration
Room 180 UTAH STATE CAPITOL COMPLEX
350 N STATE ST
SALT LAKE CITY, UT 84114
Direct questions regarding this rule to:
- Ann Pedroza at the above address, by phone at 801-538-1883, by FAX at 801-538-1465, or by Internet E-mail at apedroza@utah.gov
Effective:
04/12/2019
Authorized by:
Douglas DeFries, Chair
Additional Information
More information about a Five-Year Notice of Review and Statement of Continuation is available online.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2019/b20190501.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
For questions regarding the content or application of this rule, please contact Ann Pedroza at the above address, by phone at 801-538-1883, by FAX at 801-538-1465, or by Internet E-mail at apedroza@utah.gov. For questions about the rulemaking process, please contact the Office of Administrative Rules.