Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 219 (2018GS)

Sponsor

Rep. Moss, J.

Final action

Governor Signed 3/19/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• enacts requirements for the state treasurer for investing the assets of the:
• Employers' Reinsurance Fund; and
• Uninsured Employers' Fund;
• exempts funds of the Employers' Reinsurance Fund and the Uninsured Employers' Fund from the requirements of the State Money Management Act;
• provides that the state treasurer is exempt from the requirement to conduct investment transactions through a certified dealer;
• repeals certain investment requirements for the investment of the principal of the:
• Employers' Reinsurance Fund; and
• Uninsured Employers' Fund; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

STATE MONEY MANAGEMENT ACT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jefferson Moss
Senate Sponsor: 
Daniel Hemmert
LONG TITLE
General Description:
This bill modifies the Utah Labor Code and the State Money Management Act by
amending provisions relating to the state treasurer's investment of certain public funds.
Highlighted Provisions:
This bill:
▸ enacts requirements for the state treasurer for investing the assets of the:
• Employers' Reinsurance Fund; and
• Uninsured Employers' Fund;
▸ exempts funds of the Employers' Reinsurance Fund and the Uninsured Employers'
Fund from the requirements of the State Money Management Act;
▸ provides that the state treasurer is exempt from the requirement to conduct
investment transactions through a certified dealer;
▸ repeals certain investment requirements for the investment of the principal of the:
• Employers' Reinsurance Fund; and
• Uninsured Employers' Fund; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
34A-2-702
, as last amended by Laws of Utah 2017, Chapter 109
34A-2-704
, as last amended by Laws of Utah 2013, Chapter 417
51-7-2
, as last amended by Laws of Utah 2017, Chapters 343 and 363
51-7-11
, as last amended by Laws of Utah 2017, Chapter 338
ENACTS:
34A-2-706
, Utah Code Annotated 1953
REPEALS:
51-7-12.5
, as last amended by Laws of Utah 2013, Chapter 204
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
34A-2-702
 is amended to read:
34A-2-702.
Employers' Reinsurance Fund -- Injury causing death -- Burial
expenses -- Payments to dependents.
(1) (a) There is created an Employers' Reinsurance Fund for the purpose of making a
payment for an industrial accident or occupational disease occurring on or before June 30,
1994. A payment made under this section shall be made in accordance with this chapter or
Chapter 3, Utah Occupational Disease Act. The Employers' Reinsurance Fund has no liability
for an industrial accident or occupational disease occurring on or after July 1, 1994.
(b) The Employers' Reinsurance Fund succeeds to all money previously held in the
"Special Fund," the "Combined Injury Fund," or the "Second Injury Fund."
(c) The commissioner shall appoint an administrator of the Employers' Reinsurance
Fund.
(d) The state treasurer shall be the custodian of the Employers' Reinsurance Fund.
(e) The administrator shall make provisions for and direct a distribution from the
Employers' Reinsurance Fund.
(f) Reasonable costs of administering the Employers' Reinsurance Fund or other fees
may be paid from the Employers' Reinsurance Fund.
(2) The state treasurer shall:
(a) receive workers' compensation premium assessments from the State Tax
Commission; and
(b) invest the Employers' Reinsurance Fund to ensure maximum investment return for
both long and short term investments in accordance with Section [
51-7-12.5
] 
34A-2-706
.
(3) (a) The administrator may employ, retain, or appoint counsel to represent the
Employers' Reinsurance Fund in a proceeding brought to enforce a claim against or on behalf
of the Employers' Reinsurance Fund.
(b) If requested by the commission, the attorney general shall aid in representation of
the Employers' Reinsurance Fund.
(4) The liability of the state, its departments, agencies, instrumentalities, elected or
appointed officials, or other duly authorized agents, with respect to payment of compensation
benefits, expenses, fees, medical expenses, or disbursement properly chargeable against the
Employers' Reinsurance Fund, is limited to the cash or assets in the Employers' Reinsurance
Fund, and they are not otherwise, in any way, liable for the operation, debts, or obligations of
the Employers' Reinsurance Fund.
(5) (a) If injury causes death within a period of 312 weeks from the date of the
accident, the employer or insurance carrier shall pay:
(i) the burial expenses of the deceased as provided in Section 
34A-2-418
; and
(ii) benefits in the amount and to a person provided for in this Subsection (5).
(b) (i) If there is a wholly dependent person at the time of the death, the payment by the
employer or the employer's insurance carrier shall be:
(A) subject to Subsections (5)(b)(i)(B) and (C), 66-2/3% of the decedent's average
weekly wage at the time of the injury;
(B) not more than a maximum of 85% of the state average weekly wage at the time of
the injury per week; and
(C) (I) not less than a minimum of $45 per week, plus:
(Aa) $20 for a dependent spouse; and
(Bb) $20 for each dependent minor child under the age of 18 years, up to a maximum
of four such dependent minor children; and
(II) not exceeding:
(Aa) the average weekly wage of the employee at the time of the injury; and
(Bb) 85% of the state average weekly wage at the time of the injury per week.
(ii) Compensation shall continue during dependency for the remainder of the period
between the date of the death and the expiration of 312 weeks after the date of the injury.
(iii) (A) The payment by the employer or the employer's insurance carrier to a wholly
dependent person during dependency following the expiration of the first 312-week period
described in Subsection (5)(b)(ii) shall be an amount equal to the weekly benefits paid to the
wholly dependent person during the initial 312-week period, reduced by 50% of the federal
social security death benefits the wholly dependent person:
(I) is eligible to receive for a week as of the first day the employee is eligible to receive
a Social Security death benefit; and
(II) receives.
(B) An employer or the employer's insurance carrier may not reduce compensation
payable under this Subsection (5)(b)(iii) on or after May 5, 2008, to a wholly dependent person
by an amount related to a cost-of-living increase to the social security death benefits that the
wholly dependent person is first eligible to receive for a week, notwithstanding whether the
employee is injured on or before May 4, 2008.
(C) For purposes of a wholly dependent person whose compensation payable is
reduced under this Subsection (5)(b)(iii) on or before May 4, 2008, the reduction is limited to
the amount of the reduction as of May 4, 2008.
(iv) The issue of dependency is subject to review at the end of the initial 312-week
period and annually after the initial 312-week period. If in a review it is determined that, under
the facts and circumstances existing at that time, the applicant is no longer a wholly dependent
person, the applicant:
(A) may be considered a partly dependent or nondependent person; and
(B) shall be paid the benefits as may be determined under Subsection (5)(d)(iii).
(c) (i) For purposes of a dependency determination, a surviving spouse of a deceased
employee is conclusively presumed to be wholly dependent for a 312-week period from the
date of death of the employee. This presumption does not apply after the initial 312-week
period.
(ii) (A) In determining the annual income of the surviving spouse after the initial
312-week period, there shall be excluded 50% of a federal social security death benefit that the
surviving spouse:
(I) is eligible to receive for a week as of the first day the surviving spouse is eligible to
receive a Social Security death benefit; and
(II) receives.
(B) An employer or the employer's insurance carrier may not reduce compensation
payable under this Subsection (5)(c)(ii) on or after May 5, 2008, to a surviving spouse by an
amount related to a cost-of-living increase to the social security death benefits that the
surviving spouse is first eligible to receive for a week, notwithstanding whether the employee
is injured on or before May 4, 2008.
(C) For purposes of a surviving spouse whose compensation payable is reduced under
this Subsection (5)(c)(ii) on or before May 4, 2008, the reduction is limited to the amount of
the reduction as of May 4, 2008.
(d) (i) If there is a partly dependent person at the time of the death, the payment shall
be:
(A) subject to Subsections (5)(d)(i)(B) and (C), 66-2/3% of the decedent's average
weekly wage at the time of the injury;
(B) not more than a maximum of 85% of the state average weekly wage at the time of
the injury per week; and
(C) not less than a minimum of $45 per week.
(ii) Compensation shall continue during dependency for the remainder of the period
between the date of death and the expiration of 312 weeks after the date of injury. 
Compensation may not amount to more than a maximum of $30,000.
(iii) The benefits provided for in this Subsection (5)(d) shall be in keeping with the
circumstances and conditions of dependency existing at the date of injury, and any amount paid
under this Subsection (5)(d) shall be consistent with the general provisions of this chapter and
Chapter 3, Utah Occupational Disease Act.
(iv) Benefits to a person determined to be partly dependent under Subsection (5)(c):
(A) shall be determined in keeping with the circumstances and conditions of
dependency existing at the time of the dependency review; and
(B) may be paid in an amount not exceeding the maximum weekly rate that a partly
dependent person would receive if wholly dependent.
(v) A payment under this section shall be paid to a person during a person's
dependency by the employer or the employer's insurance carrier.
(e) (i) Subject to Subsection (5)(e)(ii), if there is a wholly dependent person and also a
partly dependent person at the time of death, the benefits may be apportioned in a manner
consistent with Section 
34A-2-414
.
(ii) The total benefits awarded to all parties concerned may not exceed the maximum
provided for by law.
(6) The Employers' Reinsurance Fund:
(a) shall be:
(i) used only in accordance with Subsection (1) for:
(A) the purpose of making a payment for an industrial accident or occupational disease
occurring on or before June 30, 1994, in accordance with this section and Section 
34A-2-703
;
and
(B) payment of:
(I) reasonable costs of administering the Employers' Reinsurance Fund; or
(II) fees required to be paid by the Employers' Reinsurance Fund;
(ii) expended according to processes that can be verified by audit; and
(b) may not be used for:
(i) administrative costs unrelated to the Employers' Reinsurance Fund; or
(ii) an activity of the commission other than an activity described in Subsection (6)(a).
Section 2. Section 
34A-2-704
 is amended to read:
34A-2-704.
Uninsured Employers' Fund.
(1) (a) There is created an Uninsured Employers' Fund. The Uninsured Employers'
Fund has the purpose of assisting in the payment of workers' compensation benefits to a person
entitled to the benefits, if:
(i) that person's employer:
(A) is individually, jointly, or severally liable to pay the benefits; and
(B) (I) becomes or is insolvent;
(II) appoints or has appointed a receiver; or
(III) otherwise does not have sufficient funds, insurance, sureties, or other security to
cover workers' compensation liabilities; and
(ii) the employment relationship between that person and the person's employer is
localized within the state as provided in Subsection (20).
(b) The Uninsured Employers' Fund succeeds to money previously held in the Default
Indemnity Fund.
(c) If it becomes necessary to pay benefits, the Uninsured Employers' Fund is liable for
the obligations of the employer set forth in this chapter and Chapter 3, Utah Occupational
Disease Act, with the exception of a penalty on those obligations.
(2) (a) Money for the Uninsured Employers' Fund shall be deposited into the Uninsured
Employers' Fund in accordance with this chapter, Subsection 
59-9-101
(2), and Subsection
34A-2-213
(3).
(b) The commissioner shall appoint an administrator of the Uninsured Employers'
Fund.
(c) (i) The state treasurer is the custodian of the Uninsured Employers' Fund.
(ii) The administrator shall make provisions for and direct distribution from the
Uninsured Employers' Fund.
(3) Reasonable costs of administering the Uninsured Employers' Fund or other fees
required to be paid by the Uninsured Employers' Fund may be paid from the Uninsured
Employers' Fund.
(4) The state treasurer shall:
(a) receive workers' compensation premium assessments from the State Tax
Commission; and
(b) invest the Uninsured Employers' Fund to ensure maximum investment return for
both long and short term investments in accordance with Section [
51-7-12.5
] 
34A-2-706
.
(5) (a) The administrator may employ, retain, or appoint counsel to represent the
Uninsured Employers' Fund in a proceeding brought to enforce a claim against or on behalf of
the Uninsured Employers' Fund.
(b) If requested by the commission, the following shall aid in the representation of the
Uninsured Employers' Fund:
(i) the attorney general; or
(ii) the city attorney, or county attorney of the locality in which:
(A) an investigation, hearing, or trial under this chapter or Chapter 3, Utah
Occupational Disease Act, is pending;
(B) the employee resides; or
(C) an employer:
(I) resides; or
(II) is doing business.
(c) (i) Notwithstanding Title 63A, Chapter 3, Part 5, Office of State Debt Collection,
the administrator shall provide for the collection of money required to be deposited in the
Uninsured Employers' Fund under this chapter and Chapter 3, Utah Occupational Disease Act.
(ii) To comply with Subsection (5)(c)(i), the administrator may:
(A) take appropriate action, including docketing an award in a manner consistent with
Section 
34A-2-212
; and
(B) employ counsel and other personnel necessary to collect the money described in
Subsection (5)(c)(i).
(6) To the extent of the compensation and other benefits paid or payable to or on behalf
of an employee or the employee's dependents from the Uninsured Employers' Fund, the
Uninsured Employers' Fund, by subrogation, has the rights, powers, and benefits of the
employee or the employee's dependents against the employer failing to make the compensation
payments.
(7) (a) The receiver, trustee, liquidator, or statutory successor of an employer meeting a
condition listed in Subsection (1)(a)(i)(B) is bound by a settlement of a covered claim by the
Uninsured Employers' Fund.
(b) A court with jurisdiction shall grant a payment made under this section a priority
equal to that to which the claimant would have been entitled in the absence of this section
against the assets of the employer meeting a condition listed in Subsection (1)(a)(i)(B).
(c) The expenses of the Uninsured Employers' Fund in handling a claim shall be
accorded the same priority as the liquidator's expenses.
(8) (a) The administrator shall periodically file the information described in Subsection
(8)(b) with the receiver, trustee, or liquidator of:
(i) an employer that meets a condition listed in Subsection (1)(a)(i)(B);
(ii) a public agency insurance mutual, as defined in Section 
31A-1-103
, that meets a
condition listed in Subsection (1)(a)(i)(B); or
(iii) an insolvent insurance carrier.
(b) The information required to be filed under Subsection (8)(a) is:
(i) a statement of the covered claims paid by the Uninsured Employers' Fund; and
(ii) an estimate of anticipated claims against the Uninsured Employers' Fund.
(c) A filing under this Subsection (8) preserves the rights of the Uninsured Employers'
Fund for claims against the assets of the employer that meets a condition listed in Subsection
(1)(a)(i)(B).
(9) When an injury or death for which compensation is payable from the Uninsured
Employers' Fund has been caused by the wrongful act or neglect of another person not in the
same employment, the Uninsured Employers' Fund has the same rights as allowed under
Section 
34A-2-106
.
(10) The Uninsured Employers' Fund, subject to approval of the administrator, shall
discharge its obligations by:
(a) adjusting its own claims; or
(b) contracting with an adjusting company, risk management company, insurance
company, or other company that has expertise and capabilities in adjusting and paying workers'
compensation claims.
(11) (a) For the purpose of maintaining the Uninsured Employers' Fund, an
administrative law judge, upon rendering a decision with respect to a claim for workers'
compensation benefits in which an employer that meets a condition listed in Subsection
(1)(a)(i)(B) is duly joined as a party, shall:
(i) order the employer that meets a condition listed in Subsection (1)(a)(i)(B) to
reimburse the Uninsured Employers' Fund for the benefits paid to or on behalf of an injured
employee by the Uninsured Employers' Fund along with interest, costs, and attorney fees; and
(ii) impose a penalty against the employer that meets a condition listed in Subsection
(1)(a)(i)(B):
(A) of 15% of the value of the total award in connection with the claim; and
(B) that shall be deposited into the Uninsured Employers' Fund.
(b) An award under this Subsection (11) shall be collected by the administrator in
accordance with Subsection (5)(c).
(12) The state, the commission, and the state treasurer, with respect to payment of
compensation benefits, expenses, fees, or disbursement properly chargeable against the
Uninsured Employers' Fund:
(a) are liable only to the assets in the Uninsured Employers' Fund; and
(b) are not otherwise in any way liable for the making of a payment.
(13) The commission may make reasonable rules for the processing and payment of a
claim for compensation from the Uninsured Employers' Fund.
(14) (a) (i) If it becomes necessary for the Uninsured Employers' Fund to pay benefits
under this section to an employee described in Subsection (14)(a)(ii), the Uninsured Employers'
Fund may assess all other self-insured employers amounts necessary to pay:
(A) the obligations of the Uninsured Employers' Fund subsequent to a condition listed
in Subsection (1)(a)(i)(B) occurring;
(B) the expenses of handling covered a claim subsequent to a condition listed in
Subsection (1)(a)(i)(B) occurring;
(C) the cost of an examination under Subsection (15); and
(D) other expenses authorized by this section.
(ii) This Subsection (14) applies to benefits paid to an employee of:
(A) a self-insured employer, as defined in Section 
34A-2-201.5
, that meets a condition
listed in Subsection (1)(a)(i)(B); or
(B) if the self-insured employer that meets a condition described in Subsection
(1)(a)(i)(B) is a public agency insurance mutual, a member of the public agency insurance
mutual.
(b) The assessments of a self-insured employer shall be in the proportion that the
manual premium of the self-insured employer for the preceding calendar year bears to the
manual premium of all self-insured employers for the preceding calendar year.
(c) A self-insured employer shall be notified of the self-insured employer's assessment
not later than 30 days before the day on which the assessment is due.
(d) (i) A self-insured employer may not be assessed in any year an amount greater than
2% of that self-insured employer's manual premium for the preceding calendar year.
(ii) If the maximum assessment does not provide in a year an amount sufficient to
make all necessary payments from the Uninsured Employers' Fund for one or more self-insured
employers that meet a condition listed in Subsection (1)(a)(i)(B), the unpaid portion shall be
paid as soon as money becomes available.
(e) A self-insured employer is liable under this section for a period not to exceed three
years after the day on which the Uninsured Employers' Fund first pays benefits to an employee
described in Subsection (14)(a)(ii) for the self-insured employer that meets a condition listed in
Subsection (1)(a)(i)(B).
(f) This Subsection (14) does not apply to a claim made against a self-insured employer
that meets a condition listed in Subsection (1)(a)(i)(B) if the condition listed in Subsection
(1)(a)(i)(B) occurred before July 1, 1986.
(15) (a) The following shall notify the division of any information indicating that any
of the following may be insolvent or in a financial condition hazardous to its employees or the
public:
(i) a self-insured employer; or
(ii) if the self-insured employer is a public agency insurance mutual, a member of the
public agency insurance mutual.
(b) Upon receipt of the notification described in Subsection (15)(a) and with good
cause appearing, the division may order an examination of:
(i) that self-insured employer; or
(ii) if the self-insured employer is a public agency insurance mutual, a member of the
public agency mutual.
(c) The cost of the examination ordered under Subsection (15)(b) shall be assessed
against all self-insured employers as provided in Subsection (14).
(d) The results of the examination ordered under Subsection (15)(b) shall be kept
confidential.
(16) (a) In a claim against an employer by the Uninsured Employers' Fund, or by or on
behalf of the employee to whom or to whose dependents compensation and other benefits are
paid or payable from the Uninsured Employers' Fund, the burden of proof is on the employer or
other party in interest objecting to the claim.
(b) A claim described in Subsection (16)(a) is presumed to be valid up to the full
amount of workers' compensation benefits claimed by the employee or the employee's
dependents.
(c) This Subsection (16) applies whether the claim is filed in court or in an adjudicative
proceeding under the authority of the commission.
(17) A partner in a partnership or an owner of a sole proprietorship may not recover
compensation or other benefits from the Uninsured Employers' Fund if:
(a) the person is not included as an employee under Subsection 
34A-2-104
(3); or
(b) the person is included as an employee under Subsection 
34A-2-104
(3), but:
(i) the person's employer fails to insure or otherwise provide adequate payment of
direct compensation; and
(ii) the failure described in Subsection (17)(b)(i) is attributable to an act or omission
over which the person had or shared control or responsibility.
(18) A director or officer of a corporation may not recover compensation or other
benefits from the Uninsured Employers' Fund if the director or officer is excluded from
coverage under Subsection 
34A-2-104
(4).
(19) The Uninsured Employers' Fund:
(a) shall be:
(i) used in accordance with this section only for:
(A) the purpose of assisting in the payment of workers' compensation benefits in
accordance with Subsection (1); and
(B) in accordance with Subsection (3), payment of:
(I) reasonable costs of administering the Uninsured Employers' Fund; or
(II) fees required to be paid by the Uninsured Employers' Fund; and
(ii) expended according to processes that can be verified by audit; and
(b) may not be used for:
(i) administrative costs unrelated to the Uninsured Employers' Fund; or
(ii) an activity of the commission other than an activity described in Subsection (19)(a).
(20) (a) For purposes of Subsection (1), an employment relationship is localized in the
state if:
(i) (A) the employer who is liable for the benefits has a business premise in the state;
and
(B) (I) the contract for hire is entered into in the state; or
(II) the employee regularly performs work duties in the state for the employer who is
liable for the benefits; or
(ii) the employee is:
(A) a resident of the state; and
(B) regularly performs work duties in the state for the employer who is liable for the
benefits.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall by rule define what constitutes regularly performing work duties in the state.
Section 3. Section 
34A-2-706
 is enacted to read:
 34A-2-706.
Investment of Employers' Reinsurance Fund and Uninsured
Employers' Fund.
(1) The state treasurer shall invest the assets of the Employers' Reinsurance Fund
created under Section 
34A-2-702
 and the Uninsured Employers' Fund created under Section
34A-2-704
 with the primary goal of providing for the stability, income, and growth of the
principal.
(2) Nothing in this section requires a specific outcome in investing.
(3) The state treasurer may deduct any administrative costs incurred in managing fund
assets from earnings before distributing the earnings.
(4) (a) The state treasurer may employ professional asset managers to assist in the
investment of the assets of the funds.
(b) The treasurer may only provide compensation to asset managers from earnings
generated by the funds' investments.
(5) (a) The state treasurer shall invest and manage the assets of the funds as a prudent
investor would by:
(i) considering the purposes, terms, distribution requirements, and other circumstances
of the funds; and
(ii) exercising reasonable care, skill, and caution in order to meet the standard of care
of a prudent investor.
(b) In determining whether the state treasurer has met the standard of care of a prudent
investor, the judge or finder of fact shall:
(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
(ii) evaluate the state treasurer's investment and management decisions respecting
individual assets:
(A) not in isolation, but in the context of a fund portfolio as a whole; and
(B) as a part of an overall investment strategy that has risk and return objectives
reasonably suited to the funds.
Section 4. Section 
51-7-2
 is amended to read:
51-7-2.
Exemptions from chapter.
The following funds are exempt from this chapter:
(1) funds invested in accordance with the participating employees' designation or
direction pursuant to a public employees' deferred compensation plan established and operated
in compliance with Section 457 of the Internal Revenue Code of 1986, as amended;
(2) funds of the Utah State Retirement Board;
(3) funds of the Utah Housing Corporation;
(4) endowment funds of higher education institutions;
(5) permanent and other land grant trust funds established pursuant to the Utah
Enabling Act and the Utah Constitution;
(6) the State Post-Retirement Benefits Trust Fund;
(7) the funds of the Utah Educational Savings Plan;
(8) funds of the permanent state trust fund created by and operated under Utah
Constitution, Article XXII, Section 4;
(9) the funds in the Navajo Trust Fund; [
and
]
(10) the funds in the Radioactive Waste Perpetual Care and Maintenance Account[
.
]
;
(11) the funds in the Employers' Reinsurance Fund; and
(12) the funds in the Uninsured Employers' Fund.
Section 5. Section 
51-7-11
 is amended to read:
51-7-11.
Authorized deposits or investments of public funds.
(1) (a) Except as provided in Subsections (1)(b) [
and (1)(c)
] 
through (1)(d)
, a public
treasurer shall conduct investment transactions through qualified depositories, certified dealers,
or directly with issuers of the investment securities.
(b) A public treasurer may designate a certified investment adviser to make trades on
behalf of the public treasurer.
(c) A public treasurer may make a deposit in accordance with Section 
53B-7-601
 in a
foreign depository institution as defined in Section 
7-1-103
.
(d) The state treasurer is exempt from the requirement to conduct investment
transactions through a certified dealer under Subsection (1)(a).
(2) The remaining term to maturity of the investment may not exceed the period of
availability of the funds to be invested.
(3) Except as provided in Subsection (4), all public funds shall be deposited or invested
in the following assets that meet the criteria of Section 
51-7-17
:
(a) negotiable or nonnegotiable deposits of qualified depositories;
(b) qualifying or nonqualifying repurchase agreements and reverse repurchase
agreements with qualified depositories using collateral consisting of:
(i) Government National Mortgage Association mortgage pools;
(ii) Federal Home Loan Mortgage Corporation mortgage pools;
(iii) Federal National Mortgage Corporation mortgage pools;
(iv) Small Business Administration loan pools;
(v) Federal Agriculture Mortgage Corporation pools; or
(vi) other investments authorized by this section;
(c) qualifying repurchase agreements and reverse repurchase agreements with certified
dealers, permitted depositories, or qualified depositories using collateral consisting of:
(i) Government National Mortgage Association mortgage pools;
(ii) Federal Home Loan Mortgage Corporation mortgage pools;
(iii) Federal National Mortgage Corporation mortgage pools;
(iv) Small Business Administration loan pools; or
(v) other investments authorized by this section;
(d) commercial paper that is classified as "first tier" by two nationally recognized
statistical rating organizations, which has a remaining term to maturity of:
(i) 270 days or fewer for paper issued under 15 U.S.C. Sec. 77c(a)(3); or
(ii) 365 days or fewer for paper issued under 15 U.S.C. Sec. 77d(2);
(e) bankers' acceptances that:
(i) are eligible for discount at a Federal Reserve bank; and
(ii) have a remaining term to maturity of 270 days or fewer;
(f) fixed rate negotiable deposits issued by a permitted depository that have a
remaining term to maturity of 365 days or fewer;
(g) obligations of the United States Treasury, including United States Treasury bills,
United States Treasury notes, and United States Treasury bonds that, unless the funds invested
are pledged or otherwise deposited in an irrevocable trust escrow account, have a remaining
term to final maturity of:
(i) five years or less;
(ii) if the funds are invested by an institution of higher education as defined in Section
53B-3-102
, a city of the first class, or a county of the first class, 10 years or less; or
(iii) if the funds are invested by a public agency insurance mutual, as defined in
Subsection 
31A-1-103
(7)(a), 20 years or less;
(h) obligations other than mortgage pools and other mortgage derivative products that:
(i) are issued by, or fully guaranteed as to principal and interest by, the following
agencies or instrumentalities of the United States in which a market is made by a primary
reporting government securities dealer, unless the agency or instrumentality has become private
and is no longer considered to be a government entity:
(A) Federal Farm Credit banks;
(B) Federal Home Loan banks;
(C) Federal National Mortgage Association;
(D) Federal Home Loan Mortgage Corporation;
(E) Federal Agriculture Mortgage Corporation; and
(F) Tennessee Valley Authority; and
(ii) unless the funds invested are pledged or otherwise deposited in an irrevocable trust
escrow account, have a remaining term to final maturity of:
(A) five years or less;
(B) if the funds are invested by an institution of higher education as defined in Section
53B-3-102
, a city of the first class, or a county of the first class, 10 years or less; or
(C) if the funds are invested by a public agency insurance mutual, as defined in
Subsection 
31A-1-103
(7)(a), 20 years or less;
(i) fixed rate corporate obligations that:
(i) are rated "A" or higher or the equivalent of "A" or higher by two nationally
recognized statistical rating organizations;
(ii) are senior unsecured or secured obligations of the issuer, excluding covered bonds;
(iii) are publicly traded; and
(iv) have a remaining term to final maturity of 15 months or less or are subject to a
hard put at par value or better, within 365 days;
(j) tax anticipation notes and general obligation bonds of the state or a county,
incorporated city or town, school district, or other political subdivision of the state, including
bonds offered on a when-issued basis without regard to the limitations described in Subsection
(7) that, unless the funds invested are pledged or otherwise deposited in an irrevocable trust
escrow account, have a remaining term to final maturity of:
(i) five years or less;
(ii) if the funds are invested by an institution of higher education as defined in Section
53B-3-102
, a city of the first class, or a county of the first class, 10 years or less; or
(iii) if the funds are invested by a public agency insurance mutual, as defined in
Subsection 
31A-1-103
(7)(a), 20 years or less;
(k) bonds, notes, or other evidence of indebtedness of a county, incorporated city or
town, school district, or other political subdivision of the state that are payable from
assessments or from revenues or earnings specifically pledged for payment of the principal and
interest on these obligations, including bonds offered on a when-issued basis without regard to
the limitations described in Subsection (7) that, unless the funds invested are pledged or
otherwise deposited in an irrevocable trust escrow account, have a remaining term to final
maturity of:
(i) five years or less;
(ii) if the funds are invested by an institution of higher education as defined in Section
53B-3-102
, a city of the first class, or a county of the first class, 10 years or less; or
(iii) if the funds are invested by a public agency insurance mutual, as defined in
Subsection 
31A-1-103
(7)(a), 20 years or less;
(l) shares or certificates in a money market mutual fund;
(m) variable rate negotiable deposits that:
(i) are issued by a qualified depository or a permitted depository;
(ii) are repriced at least semiannually; and
(iii) have a remaining term to final maturity not to exceed three years;
(n) variable rate securities that:
(i) (A) are rated "A" or higher or the equivalent of "A" or higher by two nationally
recognized statistical rating organizations;
(B) are senior unsecured or secured obligations of the issuer, excluding covered bonds;
(C) are publicly traded;
(D) are repriced at least semiannually; and
(E) have a remaining term to final maturity not to exceed three years or are subject to a
hard put at par value or better, within 365 days;
(ii) are not mortgages, mortgage-backed securities, mortgage derivative products, or a
security making unscheduled periodic principal payments other than optional redemptions; and
(o) reciprocal deposits made in accordance with Subsection 
51-7-17
(4).
(4) The following public funds are exempt from the requirements of Subsection (3):
[
(a) the Employers' Reinsurance Fund created in Section 
34A-2-702
;
]
[
(b) the Uninsured Employers' Fund created in Section 
34A-2-704
;
]
[
(c)
] 
(a)
 a local government other post-employment benefits trust fund under Section
51-7-12.2
; and
[
(d)
] 
(b)
 a nonnegotiable deposit made in accordance with Section 
53B-7-601
 in a
foreign depository institution as defined in Section 
7-1-103
.
(5) If any of the deposits authorized by Subsection (3)(a) are negotiable or
nonnegotiable large time deposits issued in amounts of $100,000 or more, the interest shall be
calculated on the basis of the actual number of days divided by 360 days.
(6) A public treasurer may maintain fully insured deposits in demand accounts in a
federally insured nonqualified depository only if a qualified depository is not reasonably
convenient to the entity's geographic location.
(7) Except as provided under Subsections (3)(j) and (k), the public treasurer shall
ensure that all purchases and sales of securities are settled within:
(a) 15 days of the trade date for outstanding issues; and
(b) 30 days for new issues.
Section 6. 
Repealer.
This bill repeals:
Section 
51-7-12.5
,
Deposit or investment of the Employers' Reinsurance Fund and
Uninsured Employers' Fund -- Authorized deposits and investments -- Asset manager.