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H.B. 376 Enrolled
7 LONG TITLE
8 General Description:
9 This bill modifies the State Money Management Act and Title 53B, State System of
10 Higher Education.
11 Highlighted Provisions:
12 This bill:
13 . defines terms;
14 . allows deposits of certain institutions of higher education public funds in a foreign
15 depository institution for educational purposes if the:
16 . laws of the foreign country require the money to be deposited in the foreign
17 country; or
18 . terms of a grant, gift, or contract require the funds to be deposited in the foreign
20 . exempts public funds that are reciprocal deposits from public treasurer criteria for
21 qualified depositories, subject to rules made by the State Money Management
22 Council; and
23 . makes technical changes.
24 Money Appropriated in this Bill:
26 Other Special Clauses:
27 This bill takes effect on July 1, 2013.
28 Utah Code Sections Affected:
30 51-4-1, as last amended by Laws of Utah 2004, Chapter 115
31 51-7-3, as last amended by Laws of Utah 2011, Chapter 342
32 51-7-4, as last amended by Laws of Utah 2011, Chapter 46
33 51-7-7, as last amended by Laws of Utah 1992, Chapter 285
34 51-7-11, as last amended by Laws of Utah 2011, Chapter 276
35 51-7-15, as last amended by Laws of Utah 1992, Chapter 285
36 51-7-17, as last amended by Laws of Utah 2000, Chapter 246
37 51-7-18.2, as last amended by Laws of Utah 1992, Chapter 285
39 53B-7-601, Utah Code Annotated 1953
41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 51-4-1 is amended to read:
43 51-4-1. Deposits by state officers, boards, commissions, institutions, departments,
44 divisions, agencies, and similar instrumentalities.
45 (1) As used in this section, "agency" means each officer, board, commission,
46 institution, department, division, agency, and other similar instrumentality of the state of Utah.
47 (2) [
48 through the receipt of a written variance from the state treasurer, each agency shall deposit
49 daily, if practicable, but no later than once every three banking days, all collections of state
50 money and other public funds with:
51 (a) the state treasurer; or
52 (b) a qualified depository for the credit of the state.
53 (3) The state treasurer may make policies governing the reporting and remitting [
55 Section 2. Section 51-7-3 is amended to read:
56 51-7-3. Definitions.
57 As used in this chapter:
58 (1) "Agent" means "agent" as defined in Section 61-1-13 .
59 (2) "Certified dealer" means:
60 (a) a primary reporting dealer recognized by the Federal Reserve Bank of New York
61 who is certified by the director as having met the applicable criteria of council rule; or
62 (b) a broker dealer who:
63 (i) has and maintains an office and a resident registered principal in the state;
64 (ii) meets the capital requirements established by council rules;
65 (iii) meets the requirements for good standing established by council rule; and
66 (iv) is certified by the director as meeting quality criteria established by council rule.
67 (3) "Certified investment adviser" means a federal covered adviser, as defined in
68 Section 61-1-13 , or an investment adviser, as defined in Section 61-1-13 , who is certified by
69 the director as having met the applicable criteria of council rule.
70 (4) "Commissioner" means the commissioner of financial institutions.
71 (5) "Council" means the State Money Management Council created by Section
72 51-7-16 .
73 (6) "Director" means the director of the Utah State Division of Securities of the
74 Department of Commerce.
75 (7) (a) "Endowment funds" means gifts, devises, or bequests of property of any kind
76 donated to a higher education institution from any source.
77 (b) "Endowment funds" does not mean money used for the general operation of a
78 higher education institution that is received by the higher education institution from:
79 (i) state appropriations;
80 (ii) federal contracts;
81 (iii) federal grants;
82 (iv) private research grants; and
83 (v) tuition and fees collected from students.
84 (8) "First tier commercial paper" means commercial paper rated by at least two
85 nationally recognized statistical rating organizations in the highest short-term rating category.
86 (9) "Funds functioning as endowments" means funds, regardless of source, whose
87 corpus is intended to be held in perpetuity by formal institutional designation according to the
88 institution's policy for designating those funds.
89 (10) "GASB" or "Governmental Accounting Standards Board" means the
90 Governmental Accounting Standards Board that is responsible for accounting standards used
91 by public entities.
92 (11) "Hard put" means an unconditional sell-back provision or a redemption provision
93 applicable at issue to a note or bond, allowing holders to sell their holdings back to the issuer
94 or to an equal or higher-rated third party provider at specific intervals and specific prices
95 determined at the time of issuance.
96 (12) "Higher education institution" means the institutions specified in Section
97 53B-1-102 .
98 (13) "Investment adviser representative" means "investment adviser representative" as
99 defined in Section 61-1-13 .
100 (14) (a) "Investment agreement" means any written agreement that has specifically
101 negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate.
102 (b) "Investment agreement" includes any agreement to supply investments on one or
103 more future dates.
104 (15) "Local government" means a county, municipality, school district, local district
105 under Title 17B, Limited Purpose Local Government Entities - Local Districts, special service
106 district under Title 17D, Chapter 1, Special Service District Act, or any other political
107 subdivision of the state.
108 (16) "Market value" means market value as defined in the Master Repurchase
110 (17) "Master Repurchase Agreement" means the current standard Master Repurchase
111 Agreement approved by the Public Securities Association or by any successor organization.
112 (18) "Maximum amount" means, with respect to qualified depositories, the total
113 amount of:
114 (a) deposits in excess of the federal deposit insurance limit; and
115 (b) nonqualifying repurchase agreements.
116 (19) "Money market mutual fund" means an open-end managed investment fund:
117 (a) that complies with the diversification, quality, and maturity requirements of Rule
118 2a-7 or any successor rule of the Securities and Exchange Commission applicable to money
119 market mutual funds; and
120 (b) that assesses no sales load on the purchase of shares and no contingent deferred
121 sales charge or other similar charges, however designated.
122 (20) "Nationally recognized statistical rating organization" means an organization that
123 has been designated as a nationally recognized statistical rating organization by the Securities
124 and Exchange Commission's Division of Market Regulation.
125 (21) "Nonqualifying repurchase agreement" means a repurchase agreement evidencing
126 indebtedness of a qualified depository arising from the transfer of obligations of the United
127 States Treasury or other authorized investments to public treasurers that is:
128 (a) evidenced by a safekeeping receipt issued by the qualified depository;
129 (b) included in the depository's maximum amount of public funds; and
130 (c) valued and maintained at market value plus an appropriate margin collateral
131 requirement based upon the term of the agreement and the type of securities acquired.
132 (22) "Operating funds" means current balances and other funds that are to be disbursed
133 for operation of the state government or any of its boards, commissions, institutions,
134 departments, divisions, agencies, or other similar instrumentalities, or any county, city, school
135 district, political subdivision, or other public body.
136 (23) "Permanent funds" means funds whose principal may not be expended, the
137 earnings from which are to be used for purposes designated by law.
138 (24) "Permitted depository" means any out-of-state financial institution that meets
139 quality criteria established by rule of the council.
140 (25) "Public funds" means money, funds, and accounts, regardless of the source from
141 which the money, funds, and accounts are derived, that are owned, held, or administered by the
142 state or any of its boards, commissions, institutions, departments, divisions, agencies, bureaus,
143 laboratories, or other similar instrumentalities, or any county, city, school district, political
144 subdivision, or other public body.
145 (26) (a) "Public money" means "public funds."
146 (b) "Public money," as used in Article VII, Sec. 15, Utah Constitution, means the same
147 as "state funds."
148 (27) "Public treasurer" includes the state treasurer and the official of any state board,
149 commission, institution, department, division, agency, or other similar instrumentality, or of
150 any county, city, school district, political subdivision, or other public body who has the
151 responsibility for the safekeeping and investment of any public funds.
152 (28) "Qualified depository" means a Utah depository institution or an out-of-state
153 depository institution, as those terms are defined in Section 7-1-103 that is authorized to
154 conduct business in this state under Section 7-1-702 or Title 7, Chapter 19, Acquisition of
155 Failing Depository Institutions or Holding Companies, whose deposits are insured by an
156 agency of the federal government and that has been certified by the commissioner of financial
157 institutions as having met the requirements established under this chapter and the rules of the
158 council to be eligible to receive deposits of public funds.
159 (29) "Qualifying repurchase agreement" means a repurchase agreement evidencing
160 indebtedness of a financial institution or government securities dealer acting as principal
161 arising from the transfer of obligations of the United States Treasury or other authorized
162 investments to public treasurers only if purchased securities are:
163 (a) delivered to the public treasurer's safekeeping agent or custodian as contemplated
164 by Section 7 of the Master Repurchase Agreement; and
165 (b) valued and maintained at market value plus an appropriate margin collateral
166 requirement based upon the term of the agreement and the type of securities acquired.
167 (30) "Reciprocal deposits" means deposits that are initially deposited into a qualified
168 depository and are then redeposited through a deposit account registry service:
169 (a) in one or more FDIC-insured depository institutions in amounts up to the relevant
170 FDIC-insured deposit limit for a depositor in each depository institution; and
171 (b) in exchange for reciprocal FDIC-insured deposits made through the deposit account
172 registry service to the qualified depository.
174 Department of Commerce by Section 13-1-2 .
176 (a) public money raised by operation of law for the support and operation of the state
177 government; and
178 (b) all other money, funds, and accounts, regardless of the source from which the
179 money, funds, or accounts are derived, that are owned, held, or administered by the state or any
180 of its boards, commissions, institutions, departments, divisions, agencies, bureaus, laboratories,
181 or other similar instrumentalities.
182 Section 3. Section 51-7-4 is amended to read:
183 51-7-4. Transfer of functions, powers, and duties relating to public funds to state
184 treasurer -- Exceptions -- Deposit of income from investment of state money.
185 (1) Unless otherwise required by the Utah Constitution or applicable federal law, the
186 functions, powers, and duties vested by law in each [
187 commission, institution, department, division, agency, [
188 instrumentality relating to the deposit, investment, or reinvestment of public funds, and the
189 purchase, sale, or exchange of [
190 under the control and management of each of these instrumentalities, are transferred to and
191 shall be exercised by the state treasurer, except:
192 (a) funds assigned to the Utah State Retirement Board for investment under Section
193 49-11-302 ;
194 (b) funds of member institutions of the state system of higher education:
195 (i) acquired by gift, devise, or bequest, or by federal or private contract or grant;
196 (ii) derived from student fees or from income from operations of auxiliary enterprises,
197 which fees and income are pledged or otherwise dedicated to the payment of interest and
198 principal of bonds issued by [
199 (iii) subject to rules made by the council, under Section 51-7-18 , deposited in a foreign
200 depository institution as defined in Section 7-1-103 ; and
202 program as approved by the State Board of Regents;
203 (c) inmate funds as provided in Section 64-13-23 or in Title 64, Chapter 9b, Work
204 Programs for Prisoners;
205 (d) trust funds established by judicial order;
206 (e) funds of the Workers' Compensation Fund;
207 (f) funds of the Utah Housing Corporation;
208 (g) endowment funds of higher education institutions; and
209 (h) the funds of the Utah Educational Savings Plan.
210 (2) All public funds held or administered by the state or [
211 commissions, institutions, departments, divisions, agencies, or similar instrumentalities and not
212 transferred to the state treasurer as provided by this section shall be:
213 (a) deposited and invested by the custodian in accordance with this chapter, unless
214 otherwise required by statute or by applicable federal law; and
215 (b) reported to the state treasurer in a form prescribed by the state treasurer.
216 (3) Unless otherwise provided by the constitution or laws of this state or by contractual
217 obligation, the income derived from the investment of state money by the state treasurer shall
218 be deposited in and become part of the General Fund.
219 Section 4. Section 51-7-7 is amended to read:
220 51-7-7. Securities and evidence of deposits and investments -- Custody -- Deposit
221 for safekeeping.
222 (1) (a) (i) The public treasurer shall have custody of all securities purchased or held and
223 all evidence of deposits and investments of public funds.
224 (ii) All securities shall be delivered versus payment to the public treasurer or to the
225 treasurer's safekeeping bank.
226 (b) The public treasurer may deposit any of these securities with a bank or trust
227 company to be held in safekeeping by that custodian.
228 (c) The provisions of this section do not apply to securities acquired under a
229 nonqualifying repurchase agreement as defined in Section 51-7-3 .
230 (d) The provisions of this section apply to any book-entry-only deposit or security the
231 ownership records of which are maintained with a securities depository, in the Federal Book
232 Entry system authorized by the U.S. Department of Treasury, or in the book-entry records of
233 the issuer, as follows:
234 (i) the direct ownership of the deposit or security by the public treasurer shall be
235 reflected in the book-entry records and represented by a receipt, confirmation, or statement
236 issued to the public treasurer by the custodian of the book-entry system; or
237 (ii) the ownership of the deposit or security by the public treasurer's custodial bank or
238 trust company shall be reflected in the book-entry records and the public treasurer's ownership
239 shall be represented by a receipt, confirmation, or statement issued by the custodial bank or
240 trust company.
241 (2) The public treasurer may maintain accounts with money center banks only for the
242 purposes of settling investment transactions, safekeeping, and collecting those investments.
243 Section 5. Section 51-7-11 is amended to read:
244 51-7-11. Authorized deposits or investments of public funds.
245 (1) (a) Except as provided in [
246 treasurer [
247 certified dealers, or directly with issuers of the investment securities.
248 (b) A public treasurer may designate a certified investment adviser to make trades on
249 behalf of the public treasurer.
250 (c) A public treasurer may make a deposit in accordance with Section 53B-7-601 in a
251 foreign depository institution as defined in Section 7-1-103 .
252 (2) The remaining term to maturity of the investment may not exceed the period of
253 availability of the funds to be invested.
254 (3) Except as provided in Subsection (4), all public funds [
255 invested [
256 (a) negotiable or nonnegotiable deposits of qualified depositories;
257 (b) qualifying or nonqualifying repurchase agreements and reverse repurchase
258 agreements with qualified depositories using collateral consisting of:
259 (i) Government National Mortgage Association mortgage pools;
260 (ii) Federal Home Loan Mortgage Corporation mortgage pools;
261 (iii) Federal National Mortgage Corporation mortgage pools;
262 (iv) Small Business Administration loan pools;
263 (v) Federal Agriculture Mortgage Corporation pools; or
264 (vi) other investments authorized by this section;
265 (c) qualifying repurchase agreements and reverse repurchase agreements with certified
266 dealers, permitted depositories, or qualified depositories using collateral consisting of:
267 (i) Government National Mortgage Association mortgage pools;
268 (ii) Federal Home Loan Mortgage Corporation mortgage pools;
269 (iii) Federal National Mortgage Corporation mortgage pools;
270 (iv) Small Business Administration loan pools; or
271 (v) other investments authorized by this section;
272 (d) commercial paper that is classified as "first tier" by two nationally recognized
273 statistical rating organizations, one of which [
274 Standard and Poor's, which has a remaining term to maturity of:
275 (i) 270 days or less for paper issued under 15 U.S.C. Sec. 77c(a)(3); or
276 (ii) 365 days or less for paper issued under 15 U.S.C. Sec. 77d(2);
277 (e) bankers' acceptances that:
278 (i) are eligible for discount at a Federal Reserve bank; and
279 (ii) have a remaining term to maturity of 270 days or less;
280 (f) fixed rate negotiable deposits issued by a permitted depository that have a
281 remaining term to maturity of 365 days or less;
282 (g) obligations of the United States Treasury, including United States Treasury bills,
283 United States Treasury notes, and United States Treasury bonds;
284 (h) obligations other than mortgage pools and other mortgage derivative products
285 issued by, or fully guaranteed as to principal and interest by, the following agencies or
286 instrumentalities of the United States in which a market is made by a primary reporting
287 government securities dealer, unless the agency or instrumentality has become private and is no
288 longer considered to be a government entity:
289 (i) Federal Farm Credit banks;
290 (ii) Federal Home Loan banks;
291 (iii) Federal National Mortgage Association;
292 (iv) Federal Home Loan Mortgage Corporation;
293 (v) Federal Agriculture Mortgage Corporation; and
294 (vi) Tennessee Valley Authority;
295 (i) fixed rate corporate obligations that:
296 (i) are rated "A" or higher or the equivalent of "A" or higher by two nationally
297 recognized statistical rating organizations, one of which [
298 Service or Standard and Poor's;
299 (ii) are senior unsecured obligations of the issuer;
300 (iii) are publicly traded; and
301 (iv) have a remaining term to final maturity of 13 months or less or [
302 hard put at par value or better, within 365 days;
303 (j) tax anticipation notes and general obligation bonds of the state or [
304 incorporated city or town, school district, or other political subdivision of [
305 including bonds offered on a when-issued basis without regard to the limitation in Subsection
307 (k) bonds, notes, or other evidence of indebtedness of [
308 or town, school district, or other political subdivision of the state that are payable from
309 assessments or from revenues or earnings specifically pledged for payment of the principal and
310 interest on these obligations, including bonds offered on a when-issued basis without regard to
311 the limitation in Subsection (7);
312 (l) shares or certificates in a money market mutual fund as defined in Section 51-7-3 ;
313 (m) variable rate negotiable deposits that:
314 (i) are issued by a qualified depository or a permitted depository;
315 (ii) are repriced at least semiannually; and
316 (iii) have a remaining term to final maturity not to exceed two years; [
317 (n) variable rate securities that:
318 (i) (A) are rated "A" or higher or the equivalent of "A" or higher by two nationally
319 recognized statistical rating organizations, one of which [
320 Service or Standard and Poor's;
321 (B) are senior unsecured obligations of the issuer;
322 (C) are publicly traded;
323 (D) are repriced at least semiannually; and
324 (E) have a remaining term to final maturity not to exceed two years or are subject to a
325 hard put at par value or better, within 365 days; [
326 (ii) are not mortgages, mortgage-backed securities, mortgage derivative products, or
329 (o) reciprocal deposits made in accordance with Subsection 51-7-17 (4).
330 (4) The following public funds are exempt from the requirements of Subsection (3):
331 (a) the Employers' Reinsurance Fund created in Section 34A-2-702 ;
332 (b) the Uninsured Employers' Fund created in Section 34A-2-704 ; [
333 (c) a local government other post-employment benefits trust fund under Section
334 51-7-12.2 [
335 (d) a nonnegotiable deposit made in accordance with Section 53B-7-601 in a foreign
336 depository institution as defined in Section 7-1-103 .
337 (5) If any of the deposits authorized by Subsection (3)(a) are negotiable or
338 nonnegotiable large-time deposits issued in amounts of $100,000 or more, the interest shall be
339 calculated on the basis of the actual number of days divided by 360 days.
340 (6) A public treasurer may maintain fully insured deposits in demand accounts in a
341 federally insured nonqualified depository only if a qualified depository is not reasonably
342 convenient to the entity's geographic location.
343 (7) The public treasurer shall ensure that all purchases and sales of securities are settled
345 (a) 15 days of the trade date for outstanding issues; and
346 (b) 30 days [
347 Section 6. Section 51-7-15 is amended to read:
348 51-7-15. Bonds of state treasurer and other public treasurers -- Reports to
350 (1) (a) The state treasurer, county, city, and town treasurers, the clerk or treasurer of
351 each school district, and [
352 be bonded in an amount of not less than that established by the council.
353 (b) The council shall base the minimum bond amount on the amount of public funds
354 normally in the treasurer's possession or control.
355 (2) (a) When a public treasurer deposits or invests public funds as authorized by this
356 chapter, [
357 any loss of public funds invested or deposited unless the loss is caused by the malfeasance of
358 the public treasurer or [
359 (b) A public treasurer and [
360 loss for any reason from deposits or investments not made in conformity with this chapter and
361 the rules of the council.
362 (3) (a) [
363 January 31 and July 31 of each year.
364 (b) The report shall contain:
365 (i) the information about the deposits and investments of that public treasurer during
366 the preceding six months ending December 31 and June 30, respectively, that the council
367 requires by rule; and
368 (ii) information detailing the nature and extent of interest rate contracts permitted by
369 Subsection 51-7-17 [
370 (c) [
372 Section 7. Section 51-7-17 is amended to read:
373 51-7-17. Criteria for investments.
374 (1) As used in this section:
375 (a) "Affiliate" means, in relation to [
376 (i) [
377 (ii) [
378 (iii) [
379 (b) "Control" means ownership of a majority of the voting power of the entity or
381 (2) (a) [
382 objectives when depositing and investing public funds:
383 (i) safety of principal;
384 (ii) need for liquidity;
385 (iii) yield on investments;
386 (iv) recognition of the different investment objectives of operating and permanent
387 funds; and
388 (v) maturity of investments, so that the maturity date of the investment does not exceed
389 the anticipated date of the expenditure of funds.
390 (b) [
391 issues, tax anticipation note issues, and [
392 payment of interest and principal of general obligation bonds and tax anticipation notes issued
393 by the state or [
394 (i) Section 51-7-11 ; or [
395 (ii) the terms of the borrowing instrument applicable to those issues and funds, if those
396 terms are more restrictive than Section 51-7-11 .
397 (c) [
398 obligation bonds and the proceeds of notes other than tax anticipation notes issued by the state
399 or [
400 payment of interest and principal of those notes and bonds[
401 (i) in accordance with the terms of the borrowing instruments applicable to those bonds
402 or notes[
403 (ii) if none of those provisions are applicable, in accordance with Section 51-7-11 .
404 (d) [
405 pledged or otherwise dedicated to the payment of debt service on the bonds or notes in
406 investment agreements if:
407 (i) the investment is permitted by the terms of the borrowing instrument applicable to
408 those bonds or notes or the borrowing instrument authorizes the investment as an investment
409 permitted by the State Money Management Act;
410 (ii) either the provider of the investment agreement or an entity fully, unconditionally,
411 and irrevocably guaranteeing the provider's obligations under the investment agreement has
412 received a rating of:
413 (A) at least "AA-" from S&P or "Aa3" from Moody's for investment agreements having
414 a term of more than one year; or
415 (B) at least "A-1+" from S&P or "P-1" from Moody's for investment agreements
416 having a term of one year or less;
417 (iii) the investment agreement contains provisions approved by the public treasurer that
418 provide that, in the event of a rating downgrade of the provider or its affiliate guarantor, as
419 applicable, by either S&P or Moody's below the "A" category or its equivalent, or a rating
420 downgrade of a nonaffiliate guarantor by either S&P or Moody's below the "AA" category or
421 its equivalent, the provider must, within 30 days after receipt of notice of the downgrade[
423 (A) collateralize the investment agreement with direct obligations of, or obligations
424 guaranteed by, the United States of America having a market value at least equal to 105% of
425 the amount of the money invested, valued at least quarterly, and deposit the collateral with a
426 third-party custodian or trustee selected by the public treasurer; or
427 (B) terminate the agreement without penalty and repay all of the principal invested and
428 the interest accrued on the investment to the date of termination; and
429 (iv) the public treasurer receives an enforceability opinion from the legal counsel of the
430 investment agreement provider and, if there is a guarantee, an enforceability opinion from the
431 legal counsel of the guarantor with respect to the guarantee.
432 (3) (a) As used in this Subsection (3), "interest rate contract" means interest rate
433 exchange contracts, interest rate floor contracts, interest rate ceiling contracts, [
434 similar contracts authorized by resolution of the governing board or issuing authority, as
436 (b) A public treasurer may:
437 (i) enter into interest rate contracts that the governing board or issuing authority
438 determines are necessary, convenient, or appropriate for the control or management of debt or
439 for the cost of servicing debt; and
440 (ii) use its public funds to satisfy its payment obligations under those contracts.
441 (c) Those contracts:
442 (i) shall comply with the requirements established by council rules; and
443 (ii) may contain payment, security, default, termination, remedy, and other terms and
444 conditions that the governing board or issuing authority considers appropriate.
445 (d) Neither interest rate contracts nor public funds used in connection with these
446 interest rate contracts may be considered a deposit or investment.
447 (4) [
448 funds invested in deposit instruments [
449 except [
450 (a) for deposits made in accordance with Section 53B-7-601 in a foreign depository
451 institution as defined in Section 7-1-103 ;
452 (b) reciprocal deposits, subject to rules made by the council under Subsection
453 51-7-18 (2); or
454 (c) if national market rates on instruments of similar quality and term exceed those
455 offered by qualified depositories, investments in out-of-state deposit instruments may be made
456 only with [
457 Section 8. Section 51-7-18.2 is amended to read:
458 51-7-18.2. Public treasurer's reports -- Contents.
459 (1) The council may:
460 (a) require [
461 form prescribed by the council containing the information required by this section; and
462 (b) specify that the report will contain the information required by this section for any
464 (2) The council shall require the report to include information:
465 (a) specifying the amount of public funds in the public treasurer's possession or
467 (b) detailing the nature and extent of the deposit and investment of those funds;
468 (c) detailing the rate of return on each deposit or investment; and
469 (d) detailing the nature and extent of interest rate contracts authorized by Subsection
470 51-7-17 [
471 (3) The public treasurer shall file the report with the council within 10 days after [
472 the day on which the public treasurer receives the council's request.
473 (4) [
474 this section available for inspection by the public at [
475 normal business hours.
476 Section 9. Section 53B-7-601 is enacted to read:
478 53B-7-601. Foreign bank accounts for higher education purposes.
479 (1) As used in this section, "foreign depository institution" is as defined in Section
480 7-1-103 .
481 (2) In accordance with Subsection 51-7-4 (1)(b)(iii), a higher education institution may
482 deposit funds in a foreign depository institution for purposes of conducting academic, research,
483 or clinical activities in the foreign country, if the:
484 (a) laws of the foreign country require the money to be deposited in the foreign
485 country; or
486 (b) terms of a grant, gift, or contract require the funds to be deposited in the foreign
488 (3) The foreign depository institution in which funds are deposited under this section
489 shall meet the requirements of rules made by the State Money Management Council under
490 Section 51-7-18 .
491 Section 10. Effective date.
492 This bill takes effect on July 1, 2013.
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