Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 68 (2025GS)

Sponsor

Rep. Dunnigan, James A.

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• clarifies the circumstances under which a public agency insurance mutual or a reserve fund is exempt from the Insurance Code;
• exempts a public agency insurance mutual from the State Money Management Act;
• authorizes a public agency insurance mutual or reserve fund to create one or more captive insurance companies;
• establishes requirements for the state treasurer handling a public agency insurance mutual's or reserve fund's investments;
• provides that the state treasurer shall invest the funds of a reserve fund; and
• makes technical changes.

Every vote on this bill

Bill text

21
11-13-103
11-13-502
11-13-533
31A-1-103
51-7-2
51-7-11
0
Insurance Funds Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: James A. Dunnigan
Senate Sponsor: Evan J. Vickers
LONG TITLE
General Description:
This bill amends provisions related to insurance funds.
Highlighted Provisions:
This bill:
defines terms;
clarifies the circumstances under which a public agency insurance mutual or a reserve 
fund is exempt from the Insurance Code;
exempts a public agency insurance mutual from the State Money Management Act;
authorizes a public agency insurance mutual or reserve fund to create one or more captive 
insurance companies;
establishes requirements for the state treasurer handling a public agency insurance 
mutual's or reserve fund's investments;
provides that the state treasurer shall invest the funds of a reserve fund; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
11-13-103
, as last amended by Laws of Utah 2023, Chapter 16
11-13-502
, as last amended by Laws of Utah 2016, Chapter 382
31A-1-103
, as last amended by Laws of Utah 2024, Chapter 120
51-7-2
, as last amended by Laws of Utah 2024, Chapters 418, 492 and 510
51-7-11
, as last amended by Laws of Utah 2019, Chapter 56
ENACTS:
11-13-533
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
11-13-103
 is amended to read:
11-13-103
. Definitions.
As used in this chapter:
(1)
(a)
"Additional project capacity" means electric generating capacity provided by a 
generating unit that first produces electricity on or after May 6, 2002, and that is 
constructed or installed at or adjacent to the site of a project that first produced 
electricity before May 6, 2002, regardless of whether:
(i)
the owners of the new generating unit are the same as or different from the owner 
of the project; and
(ii)
the purchasers of electricity from the new generating unit are the same as or 
different from the purchasers of electricity from the project.
(b)
"Additional project capacity" does not mean or include replacement project capacity.
(2)
"Board" means the Permanent Community Impact Fund Board created by Section 
35A-8-304
, and its successors.
(3)
"Candidate" means one or more of:
(a)
the state;
(b)
a county, municipality, school district, special district, special service district, or 
other political subdivision of the state; and
(c)
a prosecution district.
(4)
"Commercial project entity" means a project entity, defined in Subsection 
(18)
, that:
(a)
has no taxing authority; and
(b)
is not supported in whole or in part by and does not expend or disburse tax revenues.
(5)
"Direct impacts" means an increase in the need for public facilities or services that is 
attributable to the project or facilities providing additional project capacity, except 
impacts resulting from the construction or operation of a facility that is:
(a)
owned by an owner other than the owner of the project or of the facilities providing 
additional project capacity; and
(b)
used to furnish fuel, construction, or operation materials for use in the project.
(6)
"Electric interlocal entity" means an interlocal entity described in Subsection 
11-13-203(3)
.
(7)
"Energy services interlocal entity" means an interlocal entity that is described in 
Subsection 
11-13-203(4)
.
(8)
(a)
"Estimated electric requirements," when used with respect to a qualified energy 
services interlocal entity, includes any of the following that meets the requirements of 
Subsection 
(8)(b)
:
(i)
generation capacity;
(ii)
generation output; or
(iii)
an electric energy production facility.
(b)
An item listed in Subsection 
(8)(a)
 is included in "estimated electric requirements" if 
it is needed by the qualified energy services interlocal entity to perform the qualified 
energy services interlocal entity's contractual or legal obligations to any of its 
members.
(9)
(a)
"Facilities providing replacement project capacity" means facilities that have 
been, are being, or are proposed to be constructed, reconstructed, converted, 
repowered, acquired, leased, used, or installed to provide replacement project 
capacity.
(b)
"Facilities providing replacement project capacity" includes facilities that have been, 
are being, or are proposed to be constructed, reconstructed, converted, repowered, 
acquired, leased, used, or installed:
(i)
to support and facilitate the construction, reconstruction, conversion, repowering, 
installation, financing, operation, management, or use of replacement project 
capacity; or
(ii)
for the distribution of power generated from existing capacity or replacement 
project capacity to facilities located on real property in which the project entity 
that owns the project has an ownership, leasehold, right-of-way, or permitted 
interest.
(10)
"Governing authority" means a governing board or joint administrator.
(11)
(a)
"Governing board" means the body established in reliance on the authority 
provided under Subsection 
11-13-206(1)(b)
 to govern an interlocal entity.
(b)
"Governing board" includes a board of directors described in an agreement, as 
amended, that creates a project entity.
(c)
"Governing board" does not include a board as defined in Subsection 
(2)
.
(12)
"Interlocal entity" means:
(a)
a Utah interlocal entity, an electric interlocal entity, or an energy services interlocal 
entity; or
(b)
a separate legal or administrative entity created under Section 
11-13-205
.
(13)
"Joint administrator" means an administrator or joint board described in Section 
11-13-207
 to administer a joint or cooperative undertaking.
(14)
"Joint or cooperative undertaking" means an undertaking described in Section 
11-13-207
 that is not conducted by an interlocal entity.
(15)
"Member" means a public agency that, with another public agency, creates an 
interlocal entity under Section 
11-13-203
.
(16)
"Out-of-state public agency" means a public agency as defined in Subsection 
(19)(c)
, 
(d)
, or 
(e)
.
(17)
(a)
"Project":
(i)
means an electric generation and transmission facility owned by a Utah interlocal 
entity or an electric interlocal entity; and
(ii)
includes fuel facilities, fuel production facilities, fuel transportation facilities, 
energy storage facilities, or water facilities that are:
(A)
owned by that Utah interlocal entity or electric interlocal entity; and
(B)
required for the generation and transmission facility.
(b)
"Project" includes a project entity's ownership interest in:
(i)
facilities that provide additional project capacity;
(ii)
facilities providing replacement project capacity;
(iii)
additional generating, transmission, fuel, fuel transportation, water, or other 
facilities added to a project; and
(iv)
a Utah interlocal energy hub, as defined in Section 
11-13-602
.
(18)
"Project entity" means a Utah interlocal entity or an electric interlocal entity that owns 
a project as defined in this section.
(19)
"Public agency" means:
(a)
a city, town, county, school district, special district, special service district, an 
interlocal entity, or other political subdivision of the state;
(b)
the state or any department, division, or agency of the state;
(c)
any agency of the United States;
(d)
any political subdivision or agency of another state or the District of Columbia 
including any interlocal cooperation or joint powers agency formed under the 
authority of the law of the other state or the District of Columbia; or
(e)
any Indian tribe, band, nation, or other organized group or community which is 
recognized as eligible for the special programs and services provided by the United 
States to Indians because of their status as Indians.
(20)
"Public agency insurance mutual" means the same as that term is defined in Subsection 
31A-1-103
(7).
(20)
(21)
"Qualified energy services interlocal entity" means an energy services interlocal 
entity that at the time that the energy services interlocal entity acquires its interest in 
facilities providing additional project capacity has at least five members that are Utah 
public agencies.
(21)
(22)
"Replacement project capacity" means electric generating capacity or 
transmission capacity that:
(a)
replaces all or a portion of the existing electric generating or transmission capacity of 
a project; and
(b)
is provided by a facility that is on, adjacent to, in proximity to, or interconnected 
with the site of a project, regardless of whether:
(i)
the capacity replacing existing capacity is less than or exceeds the generating or 
transmission capacity of the project existing before installation of the capacity 
replacing existing capacity;
(ii)
the capacity replacing existing capacity is owned by the project entity that is the 
owner of the project, a segment established by the project entity, or a person with 
whom the project entity or a segment established by the project entity has 
contracted; or
(iii)
the facility that provides the capacity replacing existing capacity is constructed, 
reconstructed, converted, repowered, acquired, leased, used, or installed before or 
after any actual or anticipated reduction or modification to existing capacity of the 
project.
(23)
"Reserve fund" means the same as that term is defined in Subsection 
31A-1-103(7)
.
(22)
(24)
"Transportation reinvestment zone" means an area created by two or more public 
agencies by interlocal agreement to capture increased property or sales tax revenue 
generated by a transportation infrastructure project as described in Section 
11-13-227
.
(23)
(25)
"Utah interlocal entity":
(a)
means an interlocal entity described in Subsection 
11-13-203(2)
; and
(b)
includes a separate legal or administrative entity created under 
Laws of Utah 1977, 
Chapter 47
, Section 3, as amended.
(24)
(26)
"Utah public agency" means a public agency under Subsection 
(19)(a)
 or 
(b)
.
Section 2, Section 
11-13-502
 is amended to read:
11-13-502
. Application -- Conflicts with federal law -- Other applicable law.
(1)
This part does not apply to a taxed interlocal entity as defined in Section 
11-13-602
.
(2)
Except as provided in Subsection 
(1)
, and notwithstanding any other provision of law, 
this part governs an interlocal entity's fiscal procedures but only to the extent that the 
provision does not conflict with or cause an interlocal entity to be noncompliant with 
federal law.
(3)
An 
Except as provided in Subsection 
(4)
, an 
interlocal entity is subject to 
Title 51, 
Chapter 7, State Money Management Act
.
(4)
A public agency insurance mutual is not subject to Title 51, Chapter 7, State Money 
Management Act.
Section 3, Section 
11-13-533
 is enacted to read:
11-13-533
. Public agency insurance mutuals and reserve funds -- Investment 
standard for public agency insurance mutuals.
(1)
A public agency insurance mutual or reserve fund may form one or more captive 
insurance companies in accordance with Title 31A, Chapter 37, Captive Insurance 
Companies Act.
(2)
The state treasurer shall invest the public agency insurance mutual's assets with the 
primary goal of providing for the stability, income, and growth of the principal.
(3)
Nothing in this section requires a specific outcome from investing.
(4)
The state treasurer may employ professional asset managers to assist in the investment 
of the public agency insurance mutual's assets.
(5)
(a)
To accomplish the primary goal described in Subsection 
(2)
, the state treasurer 
shall invest and manage the public agency insurance mutual's assets as a prudent 
investor would by:
(i)
considering the purposes, terms, distribution requirements, and other 
circumstances of the investments; and
(ii)
exercising reasonable care, skill, and caution 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, a court 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
(ii)
evaluate the state treasurer's investment and management decisions respecting 
individual assets:
(A)
not in isolation, but in the context of an investment portfolio as a whole; and
(B)
as part of an overall investment strategy that has risk and return objectives that 
are reasonably suited to the investments.
Section 4, Section 
31A-1-103
 is amended to read:
31A-1-103
. Scope and applicability of title.
(1)
This title does not apply to:
(a)
a retainer contract made by an attorney-at-law:
(i)
with an individual client; and
(ii)
under which fees are based on estimates of the nature and amount of services to 
be provided to the specific client;
(b)
a contract similar to a contract described in Subsection (1)(a) made with a group of 
clients involved in the same or closely related legal matters;
(c)
an arrangement for providing benefits that do not exceed a limited amount of 
consultations, advice on simple legal matters, either alone or in combination with 
referral services, or the promise of fee discounts for handling other legal matters;
(d)
limited legal assistance on an informal basis involving neither an express contractual 
obligation nor reasonable expectations, in the context of an employment, 
membership, educational, or similar relationship;
(e)
legal assistance by employee organizations to their members in matters relating to 
employment;
(f)
death, accident, health, or disability benefits provided to 
a person 
an individual 
by 
an organization or 
its
the organization's
 affiliate if:
(i)
the organization is tax exempt under Section 501(c)(3) of the Internal Revenue 
Code and has had 
its
the organization's
 principal place of business in Utah for at 
least five years;
(ii)
the 
person
individual
 is not an employee of the organization; and
(iii)
(A)
substantially all the 
person's
individual's
 time in the organization is spent 
providing voluntary services:
(I)
in furtherance of the organization's purposes;
(II)
for a designated period of time; and
(III)
for which no compensation, other than expenses, is paid; or
(B)
the time since the service under Subsection (1)(f)(iii)(A) was completed is no 
more than 18 months; or
(g)
a prepaid contract of limited duration that provides for scheduled maintenance only.
(2)
(a)
This title restricts otherwise legitimate business activity.
(b)
What this title does not prohibit is permitted unless contrary to other provisions of 
Utah law.
(3)
Except as otherwise expressly provided, this title does not apply to:
(a)
those activities of an insurer where state jurisdiction is preempted by Section 514 of 
the federal Employee Retirement Income Security Act of 1974, as amended;
(b)
ocean marine insurance;
(c)
death, accident, health, or disability benefits provided by an organization that:
(i)
has as the organization's principal purpose to achieve charitable, educational, 
social, or religious objectives rather than to provide death, accident, health, or 
disability benefits;
(ii)
does not incur a legal obligation to pay a specified amount;
(iii)
does not create reasonable expectations of receiving a specified amount on the 
part of an insured person; and
(iv)
is not a health care sharing ministry that provides that a participant make a 
contribution to pay another participant's qualified expenses with no assumption of 
risk or promise to pay.
(d)
other business specified in rules adopted by the commissioner on a finding that:
(i)
the transaction of the business in this state does not require regulation for the 
protection of the interests of the residents of this state; or
(ii)
it would be impracticable to require compliance with this title;
(e)
except as provided in Subsection (4), a transaction independently procured through 
negotiations under Section 
31A-15-104
;
(f)
self-insurance;
(g)
reinsurance;
(h)
subject to Subsection (5), an employee or labor union group insurance policy 
covering risks in this state or an employee or labor union blanket insurance policy 
covering risks in this state, if:
(i)
the policyholder exists primarily for purposes other than to procure insurance;
(ii)
the policyholder:
(A)
is not a resident of this state;
(B)
is not a domestic corporation; or
(C)
does not have the policyholder's principal office in this state;
(iii)
no more than 25% of the certificate holders or insureds are residents of this state;
(iv)
on request of the commissioner, the insurer files with the department a copy of 
the policy and a copy of each form or certificate; and
(v)
(A)
the insurer agrees to pay premium taxes on the Utah portion of the insurer's 
business, as if the insurer were authorized to do business in this state; and
(B)
the insurer provides the commissioner with the security the commissioner 
considers necessary for the payment of premium taxes under Title 59, Chapter 
9, Taxation of Admitted Insurers;
(i)
to the extent provided in Subsection (6):
(i)
a manufacturer's or seller's warranty; and
(ii)
a manufacturer's or seller's service contract;
(j)
except to the extent provided in Subsection (7), a public agency insurance mutual;
(k)
except as provided in Chapter 6b, Guaranteed Asset Protection Waiver Act, a 
guaranteed asset protection waiver; or
(l)
a health care sharing ministry, if the health care sharing ministry:
(i)
provides to each participant upon enrollment and annually thereafter a written 
statement of nationwide data from the preceding calendar year that lists the total 
dollar amount of contributions provided to participants toward qualified expenses; 
and
(ii)
includes a written disclaimer, titled "Notice", on or with each application and all 
guideline materials that states:
(A)
the health care sharing ministry is not an insurance company;
(B)
nothing the health care sharing ministry offers or provides is an insurance 
policy, including the health care sharing ministry's guidelines or plan of 
operations;
(C)
participation in the health care sharing ministry is entirely voluntary and no 
participant is compelled by law to contribute to another participant's expenses;
(D)
participation in the health care sharing ministry or subscription to any of the 
health care sharing ministry's services is not insurance; and
(E)
each participant is always personally responsible for the participant's expenses 
regardless of whether the participant receives payment for the expenses 
through the health care sharing ministry or whether this health care sharing 
ministry continues to operate.
(4)
A transaction described in Subsection (3)(e) is subject to taxation under Section 
31A-3-301
.
(5)
(a)
After a hearing, the commissioner may order an insurer of certain group insurance 
policies or blanket insurance policies to transfer the Utah portion of the business 
otherwise exempted under Subsection (3)(h) to an authorized insurer if the contracts 
have been written by an unauthorized insurer.
(b)
If the commissioner finds that the conditions required for the exemption of a group 
or blanket insurer are not satisfied or that adequate protection to residents of this state 
is not provided, the commissioner may require:
(i)
the insurer to be authorized to do business in this state; or
(ii)
that any of the insurer's transactions be subject to this title.
(c)
Subsection (3)(h) does not apply to a blanket insurance policy offering accident and 
health insurance.
(6)
(a)
As used in Subsection (3)(i) and this Subsection (6):
(i)
"manufacturer's 
"Manufacturer's 
or seller's service contract" means a service 
contract:
(A)
made available by:
(I)
a manufacturer of a product;
(II)
a seller of a product; or
(III)
an affiliate of a manufacturer or seller of a product;
(B)
made available:
(I)
on one or more specific products; or
(II)
on products that are components of a system; and
(C)
under which the person described in Subsection (6)(a)(i)(A) is liable for 
services to be provided under the service contract including, if the 
manufacturer's or seller's service contract designates, providing parts and labor;
(ii)
"manufacturer's 
"Manufacturer's 
or seller's warranty" means the guaranty of:
(A)
(I)
the manufacturer of a product;
(II)
a seller of a product; or
(III)
an affiliate of a manufacturer or seller of a product;
(B)
(I)
on one or more specific products; or
(II)
on products that are components of a system; and
(C)
under which the person described in Subsection (6)(a)(ii)(A) is liable for 
services to be provided under the warranty, including, if the manufacturer's or 
seller's warranty designates, providing parts and labor
; and
.
(iii)
"service
"Service
 contract" means the same as that term is defined in Section 
31A-6a-101
.
(b)
A manufacturer's or seller's warranty may be designated as:
(i)
a warranty;
(ii)
a guaranty; or
(iii)
a term similar to a term described in Subsection (6)(b)(i) or (ii).
(c)
This title does not apply to:
(i)
a manufacturer's or seller's warranty;
(ii)
a manufacturer's or seller's service contract paid for with consideration that is in 
addition to the consideration paid for the product itself; and
(iii)
a service contract that is not a manufacturer's or seller's warranty or 
manufacturer's or seller's service contract if:
(A)
the service contract is paid for with consideration that is in addition to the 
consideration paid for the product itself;
(B)
the service contract is for the repair or maintenance of goods;
(C)
the purchase price of the product is $3,700 or less;
(D)
the product is not a motor vehicle; and
(E)
the product is not the subject of a home warranty service contract.
(d)
This title does not apply to a manufacturer's or seller's warranty or service contract 
paid for with consideration that is in addition to the consideration paid for the product 
itself regardless of whether the manufacturer's or seller's warranty or service contract 
is sold:
(i)
at the time of the purchase of the product; or
(ii)
at a time other than the time of the purchase of the product.
(7)
(a)
For purposes of this Subsection (7)
,
:
(i)
 "public 
"Public 
agency insurance mutual" means an entity
:
(A)
formed by two or more political subdivisions or public agencies of the state
:
(i)
under Title 11, Chapter 13, Interlocal Cooperation Act; and
(ii)
for the purpose of providing for the political subdivisions or public agencies:
(A)
subject to Subsection (7)(b), insurance coverage; or
(B)
risk management.
(B)
that issues an insurance policy, subject to Subsection (7)(b), or provides risk 
management, to a political subdivision or public agency in the state under Title 
11, Chapter 13, Interlocal Cooperation Act.
(ii)
"Reserve fund" means a fund established:
(A)
to fund a loss to a political subdivision's assets; and
(B)
by one or more political subdivisions for a purpose identified in Section 
63G-7-703
.
(b)
Notwithstanding Subsection (7)(a)(ii)(A), a 
A 
public agency insurance mutual
 or 
reserve fund
 may not provide health insurance unless the public agency insurance 
mutual provides the health insurance using:
(i)
a third party administrator licensed under Chapter 25, Third Party Administrators;
(ii)
an admitted insurer; or
(iii)
a program authorized by Title 49, Chapter 20, Public Employees' Benefit and 
Insurance Program Act.
(c)
Except for this Subsection (7), a 
A 
public agency insurance mutual 
or reserve fund 
is exempt from this title
 except as provided in the provisions in Sections 
31A-3-301
and 
31A-3-303
 describing the surplus lines tax that are applicable to a policyholder
.
(d)
A public agency insurance mutual is considered to be a governmental entity and 
political subdivision of the state with all of the rights, privileges, and immunities of a 
governmental entity or political subdivision of the state including all the rights and 
benefits of Title 63G, Chapter 7, Governmental Immunity Act of Utah.
Section 5, Section 
51-7-2
 is amended to read:
51-7-2
. Exemptions from chapter.
(1)
Except as provided in Subsection (2), the following funds are exempt from this chapter:
(a)
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;
(b)
funds of the Utah State Retirement Board;
(c)
funds of the Utah Housing Corporation;
(d)
endowment funds of higher education institutions, including funds of the Higher 
Education Student Success Endowment, created in Section 
53B-7-802
;
(e)
permanent and other land grant trust funds established pursuant to the Utah Enabling 
Act and the Utah Constitution;
(f)
the State Post-Retirement Benefits Trust Fund;
(g)
the funds of the Utah Educational Savings Plan;
(h)
funds of the permanent state trust fund created by and operated under Utah 
Constitution, Article XXII, Section 4;
(i)
the funds in the Navajo Trust Fund;
(j)
the funds in the Radioactive Waste Perpetual Care and Maintenance Account;
(k)
the funds in the Employers' Reinsurance Fund;
(l)
the funds in the Uninsured Employers' Fund;
(m)
the Utah State Developmental Center Long-Term Sustainability Fund, created in 
Section 
26B-1-331
;
(n)
the funds in the Risk Management Fund created in Section 
63A-4-201
;
(o)
the Utah fund of funds created in Section 
63N-6-401
;
(p)
the funds deposited into the Utah Homes Investment Program from the 
Transportation Infrastructure General Fund Support Subfund created in Section 
72-2-134
;
 and
(q)
subject to Subsection 
67-4-19(2)
, the portion of the funds in the following accounts 
invested by the state treasurer in precious metals:
(i)
the State Disaster Recovery Restricted Account, created in Section 
53-2a-603
;
(ii)
the General Fund Budget Reserve Account, created in Section 
63J-1-312
;
(iii)
the Income Tax Fund Budget Reserve Account, created in Section 
63J-1-313
; and
(iv)
the Medicaid Growth Reduction and Budget Stabilization Account, created in 
Section 
63J-1-315
.
; and
(r)
except as provided in Section 
11-13-533
, the funds of a public agency insurance 
mutual as that term is defined in Subsection 
31A-1-103
(7)(a).
(2)
Except for the funds of the Utah State Retirement Board and the Utah Educational 
Savings Plan, the funds described in Subsection (1) are not exempt from Subsections 
51-7-14
(2) and (3).
(3)
Notwithstanding Title 52, Chapter 4, Open and Public Meetings Act, a public body that 
administers a fund described in Subsection (1) may hold a closed meeting to discuss the 
sale or purchase of identifiable securities, investment funds, or investment contracts.
(4)
A paper, electronic, or other depiction or record of information relating to investment 
activities of a fund described in Subsection (1) is not subject to Title 63G, Chapter 2, 
Government Records Access and Management Act.
Section 6, 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)
 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
reserve fund
, 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
reserve fund
, 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
reserve fund
, 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
reserve fund
, 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;
(o)
reciprocal deposits made in accordance with Subsection 
51-7-17(4)
; and
(p)
negotiable brokered certificates of deposit made in accordance with Subsection 
51-7-17(4)
.
(4)
The following public funds are exempt from the requirements of Subsection 
(3)
:
(a)
a local government other post-employment benefits trust fund under Section 
51-7-12.2
; and
(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 7. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-12-25 9:07 AM