1     
PUBLIC FUND AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: R. Neil Walter

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     Committee Note:
9          The Political Subdivisions Interim Committee recommended this bill.
10               Legislative Vote:     13 voting for     0 voting against     3 absent
11     General Description:
12          This bill addresses reporting requirements for the Public Treasurers' Investment Fund.
13     Highlighted Provisions:
14          This bill:
15          ▸     defines terms;
16          ▸     requires the state treasurer to annually report the current balance in the Public
17     Treasurers' Investment Fund for each entity that has transferred money to that fund;
18     and
19          ▸     makes technical and conforming changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          10-5-120, as last amended by Laws of Utah 2014, Chapter 253
27          10-6-132, as last amended by Laws of Utah 2014, Chapter 253

28          11-13-523, as enacted by Laws of Utah 2015, Chapter 265
29          17-36-30, as last amended by Laws of Utah 2014, Chapter 253
30          17-36-52, as last amended by Laws of Utah 2014, Chapter 176
31          17B-1-626, as last amended by Laws of Utah 2023, Chapter 15
32          51-7-3, as last amended by Laws of Utah 2023, Chapter 16
33          51-7-5, as last amended by Laws of Utah 1984, Chapter 44
34          51-7-6, as last amended by Laws of Utah 1989, Chapter 66
35          53-2a-605, as last amended by Laws of Utah 2023, Chapter 16
36          59-2-1330, as last amended by Laws of Utah 2015, Chapter 201
37     

38     Be it enacted by the Legislature of the state of Utah:
39          Section 1. Section 10-5-120 is amended to read:
40          10-5-120. Loans between funds -- Bonds purchased by funds.
41          (1) Subject to this section, restrictions imposed by bond ordinance, or other controlling
42     regulations, the town council may:
43          (a) subject to the restrictions in Section 53-2a-605, authorize an interfund loan from
44     one fund to another; and
45          (b) with available cash in any fund, purchase or otherwise acquire for investment an
46     unmatured bond of the town or of any fund of the town.
47          (2) An interfund loan under Subsection (1)(a) shall be in writing and specify the terms
48     and conditions of the loan, including the:
49          (a) effective date of the loan;
50          (b) name of the fund loaning the money;
51          (c) name of the fund receiving the money;
52          (d) amount of the loan;
53          (e) subject to Subsection (3), term of and repayment schedule for the loan;
54          (f) subject to Subsection (4), interest rate of the loan;
55          (g) method of calculating interest applicable to the loan;
56          (h) procedures for:
57          (i) applying interest to the loan; and
58          (ii) paying interest on the loan; and

59          (i) other terms and conditions the town council determines applicable.
60          (3) The term and repayment schedule specified under Subsection (2)(e) may not exceed
61     10 years.
62          (4) (a) In determining the interest rate of the loan specified under Subsection (2)(f), the
63     town council shall apply an interest rate that reflects the rate of potential gain had the funds
64     been deposited or invested in a comparable investment.
65          (b) Notwithstanding Subsection (4)(a), the interest rate of the loan specified under
66     Subsection (2)(f):
67          (i) if the term of the loan under Subsection (2)(e) is one year or less, may not be less
68     than the rate offered by the Public Treasurers' Investment Fund [that was created for public
69     funds transferred to the state treasurer in accordance with Section 51-7-5] as defined in Section
70     51-7-3; or
71          (ii) if the term of the loan under Subsection (2)(e) is more than one year, may not be
72     less than the greater of the rate offered by:
73          (A) the Public Treasurers' Investment Fund [that was created for public funds
74     transferred to the state treasurer in accordance with Section 51-7-5] as defined in Section
75     51-7-3; or
76          (B) a United States Treasury note of a comparable term.
77          (5) (a) For an interfund loan under Subsection (1)(a), the town council shall:
78          (i) hold a public hearing;
79          (ii) prepare a written notice of the date, time, place, and purpose of the hearing, and the
80     proposed terms and conditions of the interfund loan under Subsection (2);
81          (iii) provide notice of the public hearing in the same manner as required under
82     Subsection 10-5-108(2) as if the hearing were a budget hearing; and
83          (iv) authorize the interfund loan by ordinance or resolution in a public meeting.
84          (b) The notice and hearing requirements in Subsection (5)(a) are satisfied if the
85     interfund loan is included in an original budget or in a subsequent budget amendment
86     previously approved by the town council for the current fiscal year.
87          (6) Subsections (2) through (5) do not apply to an interfund loan if the interfund loan
88     is:
89          (a) a loan from the town general fund to any other fund of the town; or

90          (b) a short-term advance from the town's cash and investment pool to individual funds
91     that are repaid by the end of the fiscal year.
92          Section 2. Section 10-6-132 is amended to read:
93          10-6-132. Loans by one fund to another -- Acquiring bonds for investment.
94          (1) Subject to this section, restrictions imposed by bond ordinance, or other controlling
95     regulations, the governing body of a city may:
96          (a) subject to the restrictions in Section 53-2a-605, authorize an interfund loan from
97     one fund to another; and
98          (b) with available cash in any fund, purchase or otherwise acquire for investment an
99     unmatured bond of the city or of any fund of the city.
100          (2) An interfund loan under Subsection (1)(a) shall be in writing and specify the terms
101     and conditions of the loan, including the:
102          (a) effective date of the loan;
103          (b) name of the fund loaning the money;
104          (c) name of the fund receiving the money;
105          (d) amount of the loan;
106          (e) subject to Subsection (3), term of and repayment schedule for the loan;
107          (f) subject to Subsection (4), interest rate of the loan;
108          (g) method of calculating interest applicable to the loan;
109          (h) procedures for:
110          (i) applying interest to the loan; and
111          (ii) paying interest on the loan; and
112          (i) other terms and conditions the governing body determines applicable.
113          (3) The term and repayment schedule specified under Subsection (2)(e) may not exceed
114     10 years.
115          (4) (a) In determining the interest rate of the loan specified under Subsection (2)(f), the
116     governing body shall apply an interest rate that reflects the rate of potential gain had the funds
117     been deposited or invested in a comparable investment.
118          (b) Notwithstanding Subsection (4)(a), the interest rate of the loan specified under
119     Subsection (2)(f):
120          (i) if the term of the loan under Subsection (2)(e) is one year or less, may not be less

121     than the rate offered by the Public Treasurers' Investment Fund [that was created for public
122     funds transferred to the state treasurer in accordance with Section 51-7-5] as defined in Section
123     51-7-3; or
124          (ii) if the term of the loan under Subsection (2)(e) is more than one year, may not be
125     less than the greater of the rate offered by:
126          (A) the Public Treasurers' Investment Fund [that was created for public funds
127     transferred to the state treasurer in accordance with Section 51-7-5] as defined in Section
128     51-7-3; or
129          (B) a United States Treasury note of a comparable term.
130          (5) (a) For an interfund loan under Subsection (1)(a), the governing body shall:
131          (i) hold a public hearing;
132          (ii) prepare a written notice of the date, time, place, and purpose of the hearing, and the
133     proposed terms and conditions of the interfund loan under Subsection (2);
134          (iii) provide notice of the public hearing in the same manner as required under Section
135     10-6-113 as if the hearing were a budget hearing; and
136          (iv) authorize the interfund loan by ordinance or resolution in a public meeting.
137          (b) The notice and hearing requirements in Subsection (5)(a) are satisfied if the
138     interfund loan is included in an original budget or in a subsequent budget amendment
139     previously approved by the governing body for the current fiscal year.
140          (6) Subsections (2) through (5) do not apply to an interfund loan if the interfund loan
141     is:
142          (a) a loan from the city general fund to any other fund of the city; or
143          (b) a short-term advance from the city's cash and investment pool to individual funds
144     that are repaid by the end of the fiscal year.
145          Section 3. Section 11-13-523 is amended to read:
146          11-13-523. Loans by one fund to another.
147          (1) Subject to this section, restrictions imposed by bond covenants, restrictions in
148     Section 53-2a-605, or other controlling regulations, the governing board of an interlocal entity
149     may authorize an interfund loan from one fund to another.
150          (2) An interfund loan under Subsection (1) shall be in writing and specify the terms
151     and conditions of the loan, including the:

152          (a) effective date of the loan;
153          (b) name of the fund loaning the money;
154          (c) name of the fund receiving the money;
155          (d) amount of the loan;
156          (e) subject to Subsection (3), term of and repayment schedule for the loan;
157          (f) subject to Subsection (4), interest rate of the loan;
158          (g) method of calculating interest applicable to the loan;
159          (h) procedures for:
160          (i) applying interest to the loan; and
161          (ii) paying interest on the loan; and
162          (i) other terms and conditions the governing board determines applicable.
163          (3) The term and repayment schedule specified under Subsection (2)(e) may not exceed
164     10 years.
165          (4) (a) In determining the interest rate of the loan specified under Subsection (2)(f), the
166     governing board shall apply an interest rate that reflects the rate of potential gain had the funds
167     been deposited or invested in a comparable investment.
168          (b) Notwithstanding Subsection (4)(a), the interest rate of the loan specified under
169     Subsection (2)(f):
170          (i) if the term of the loan under Subsection (2)(e) is one year or less, may not be less
171     than the rate offered by the Public Treasurers' Investment Fund [that was created for public
172     funds transferred to the state treasurer in accordance with Section 51-7-5] as defined in Section
173     51-7-3; or
174          (ii) if the term of the loan under Subsection (2)(e) is more than one year, may not be
175     less than the greater of the rate offered by:
176          (A) the Public Treasurers' Investment Fund [that was created for public funds
177     transferred to the state treasurer in accordance with Section 51-7-5] as defined in Section
178     51-7-3; or
179          (B) a United States Treasury note of a comparable term.
180          (5) (a) For an interfund loan under Subsection (1), the governing board shall:
181          (i) hold a public hearing;
182          (ii) prepare a written notice of the date, time, place, and purpose of the hearing, and the

183     proposed terms and conditions of the interfund loan under Subsection (2);
184          (iii) provide notice of the public hearing in the same manner as required under Section
185     11-13-509 as if the hearing were a budget hearing; and
186          (iv) authorize the interfund loan by resolution in a public meeting.
187          (b) The notice and hearing requirements in Subsection (5)(a) are satisfied if the
188     interfund loan is included in an original budget or in a subsequent budget amendment
189     previously approved by the governing board for the current fiscal year.
190          (6) Subsections (2) through (5) do not apply to an interfund loan if the interfund loan
191     is:
192          (a) a loan from the interlocal entity general fund to any other fund of the interlocal
193     entity; or
194          (b) a short-term advance from the interlocal entity's cash and investment pool to an
195     individual fund that is repaid by the end of the fiscal year.
196          Section 4. Section 17-36-30 is amended to read:
197          17-36-30. Interfund loans -- Acquisition of issued unmatured bonds.
198          (1) Subject to this section, restrictions imposed by bond covenants, or other controlling
199     regulations, the governing body may:
200          (a) subject to the restrictions in Section 53-2a-605, authorize an interfund loan from
201     one fund to another; and
202          (b) with available cash in any fund, purchase or otherwise acquire for investment an
203     unmatured bond of the county or of any county fund.
204          (2) An interfund loan under Subsection (1)(a) shall be in writing and specify the terms
205     and conditions of the loan, including the:
206          (a) effective date of the loan;
207          (b) name of the fund loaning the money;
208          (c) name of the fund receiving the money;
209          (d) amount of the loan;
210          (e) subject to Subsection (3), term of and repayment schedule for the loan;
211          (f) subject to Subsection (4), interest rate of the loan;
212          (g) method of calculating interest applicable to the loan;
213          (h) procedures for:

214          (i) applying interest to the loan; and
215          (ii) paying interest on the loan; and
216          (i) other terms and conditions the governing body determines applicable.
217          (3) The term and repayment schedule specified under Subsection (2)(e) may not exceed
218     10 years.
219          (4) (a) In determining the interest rate of the loan specified under Subsection (2)(f), the
220     governing body shall apply an interest rate that reflects the rate of potential gain had the funds
221     been deposited or invested in a comparable investment.
222          (b) Notwithstanding Subsection (4)(a), the interest rate of the loan specified under
223     Subsection (2)(f):
224          (i) if the term of the loan under Subsection (2)(e) is one year or less, may not be less
225     than the rate offered by the Public Treasurers' Investment Fund [that was created for public
226     funds transferred to the state treasurer in accordance with Section 51-7-5] as defined in Section
227     51-7-3; or
228          (ii) if the term of the loan under Subsection (2)(e) is more than one year, may not be
229     less than the greater of the rate offered by:
230          (A) the Public Treasurers' Investment Fund [that was created for public funds
231     transferred to the state treasurer in accordance with Section 51-7-5] as defined in Section
232     51-7-3; or
233          (B) a United States Treasury note of a comparable term.
234          (5) (a) For an interfund loan under Subsection (1)(a), the governing body shall:
235          (i) hold a public hearing;
236          (ii) prepare a written notice of the date, time, place, and purpose of the hearing, and the
237     proposed terms and conditions of the interfund loan under Subsection (2);
238          (iii) provide notice of the public hearing in the same manner as required under Section
239     17-36-12 as if the hearing were a budget hearing; and
240          (iv) authorize the interfund loan by ordinance or resolution in a public meeting.
241          (b) The notice and hearing requirements in Subsection (5)(a) are satisfied if the
242     interfund loan is included in an original budget or in a subsequent budget amendment
243     previously approved by the governing body for the current fiscal year.
244          (6) Subsections (2) through (5) do not apply to an interfund loan if the interfund loan

245     is:
246          (a) a loan from the county general fund to any other fund of the county; or
247          (b) a short-term advance from the county's cash and investment pool to individual
248     funds that are repaid by the end of the fiscal year.
249          Section 5. Section 17-36-52 is amended to read:
250          17-36-52. Tax stability and trust fund -- Deposit or investment of funds -- Use of
251     interest or other income.
252          (1) (a) All amounts in the tax stability and trust fund established by a county under
253     Section 17-36-51 may be deposited or invested as provided in Section 51-7-11.
254          (b) The amounts described in Subsection (1)(a) may also be transferred by the county
255     treasurer to the [state treasurer under Section 51-7-5] Public Treasurers' Investment Fund, as
256     defined in Section 51-7-3, for the treasurer's management and control under Title 51, Chapter
257     7, State Money Management Act.
258          (2) (a) The interest or other income realized from amounts in the tax stability and trust
259     fund shall be returned to the county general fund during the fiscal year in which the income or
260     interest is paid to the extent the interest or income is required by the county to provide for its
261     purposes during that fiscal year.
262          (b) An amount returned in accordance with Subsection (2)(a) may be used for all
263     purposes as other amounts in the county general fund.
264          (c) Any interest or income that is not returned to the county general fund in accordance
265     with Subsection (2)(a) shall be added to the principal of that county's tax stability and trust
266     fund.
267          Section 6. Section 17B-1-626 is amended to read:
268          17B-1-626. Loans by one fund to another.
269          (1) Subject to this section, restrictions imposed by bond covenants, restrictions in
270     Section 53-2a-605, or other controlling regulations, the board of trustees of a special district
271     may authorize an interfund loan from one fund to another.
272          (2) An interfund loan under Subsection (1) shall be in writing and specify the terms
273     and conditions of the loan, including the:
274          (a) effective date of the loan;
275          (b) name of the fund loaning the money;

276          (c) name of the fund receiving the money;
277          (d) amount of the loan;
278          (e) subject to Subsection (3), term of and repayment schedule for the loan;
279          (f) subject to Subsection (4), interest rate of the loan;
280          (g) method of calculating interest applicable to the loan;
281          (h) procedures for:
282          (i) applying interest to the loan; and
283          (ii) paying interest on the loan; and
284          (i) other terms and conditions the board of trustees determines applicable.
285          (3) The term and repayment schedule specified under Subsection (2)(e) may not exceed
286     10 years.
287          (4) (a) In determining the interest rate of the loan specified under Subsection (2)(f), the
288     board of trustees shall apply an interest rate that reflects the rate of potential gain had the funds
289     been deposited or invested in a comparable investment.
290          (b) Notwithstanding Subsection (4)(a), the interest rate of the loan specified under
291     Subsection (2)(f):
292          (i) if the term of the loan under Subsection (2)(e) is one year or less, may not be less
293     than the rate offered by the Public Treasurers' Investment Fund [that was created for public
294     funds transferred to the state treasurer in accordance with Section 51-7-5] as defined in Section
295     51-7-3; or
296          (ii) if the term of the loan under Subsection (2)(e) is more than one year, may not be
297     less than the greater of the rate offered by:
298          (A) the Public Treasurers' Investment Fund [that was created for public funds
299     transferred to the state treasurer in accordance with Section 51-7-5] as defined in Section
300     51-7-3; or
301          (B) a United States Treasury note of a comparable term.
302          (5) (a) For an interfund loan under Subsection (1), the board of trustees shall:
303          (i) hold a public hearing;
304          (ii) prepare a written notice of the date, time, place, and purpose of the hearing, and the
305     proposed terms and conditions of the interfund loan under Subsection (2);
306          (iii) provide notice of the public hearing in the same manner as required under Section

307     17B-1-609 as if the hearing were a budget hearing; and
308          (iv) authorize the interfund loan by resolution in a public meeting.
309          (b) The notice and hearing requirements in Subsection (5)(a) are satisfied if the
310     interfund loan is included in an original budget or in a subsequent budget amendment
311     previously approved by the board of trustees for the current fiscal year.
312          (6) Subsections (2) through (5) do not apply to an interfund loan if the interfund loan
313     is:
314          (a) a loan from the special district general fund to any other fund of the special district;
315     or
316          (b) a short-term advance from the special district's cash and investment pool to
317     individual funds that are repaid by the end of the fiscal year.
318          Section 7. Section 51-7-3 is amended to read:
319          51-7-3. Definitions.
320          As used in this chapter:
321          (1) "Agent" means ["agent" as] the same as that term is defined in Section 61-1-13.
322          (2) "Certified dealer" means:
323          (a) a primary reporting dealer recognized by the Federal Reserve Bank of New York
324     who is certified by the director as having met the applicable criteria of council rule; or
325          (b) a broker dealer who:
326          (i) has and maintains an office and a resident registered principal in the state;
327          (ii) meets the capital requirements established by council rules;
328          (iii) meets the requirements for good standing established by council rule; and
329          (iv) is certified by the director as meeting quality criteria established by council rule.
330          (3) "Certified investment adviser" means a federal covered adviser, as defined in
331     Section 61-1-13, or an investment adviser, as defined in Section 61-1-13, who is certified by
332     the director as having met the applicable criteria of council rule.
333          (4) "Commissioner" means the commissioner of financial institutions.
334          (5) "Council" means the State Money Management Council created by Section
335     51-7-16.
336          (6) "Covered bond" means a publicly placed debt security issued by a bank, other
337     regulated financial institution, or a subsidiary of either that is secured by a pool of loans that

338     remain on the balance sheet of the issuer or its subsidiary.
339          (7) "Director" means the director of the Utah State Division of Securities of the
340     Department of Commerce.
341          (8) (a) "Endowment funds" means gifts, devises, or bequests of property of any kind
342     donated to a higher education institution from any source.
343          (b) "Endowment funds" does not mean money used for the general operation of a
344     higher education institution that is received by the higher education institution from:
345          (i) state appropriations;
346          (ii) federal contracts;
347          (iii) federal grants;
348          (iv) private research grants; and
349          (v) tuition and fees collected from students.
350          (9) "First tier commercial paper" means commercial paper rated by at least two
351     nationally recognized statistical rating organizations in the highest short-term rating category.
352          (10) "Funds functioning as endowments" means funds, regardless of source, whose
353     corpus is intended to be held in perpetuity by formal institutional designation according to the
354     institution's policy for designating those funds.
355          (11) "GASB" or "Governmental Accounting Standards Board" means the
356     Governmental Accounting Standards Board that is responsible for accounting standards used
357     by public entities.
358          (12) "Hard put" means an unconditional sell-back provision or a redemption provision
359     applicable at issue to a note or bond, allowing holders to sell their holdings back to the issuer
360     or to an equal or higher-rated third party provider at specific intervals and specific prices
361     determined at the time of issuance.
362          (13) "Higher education institution" means the institutions specified in Section
363     53B-1-102.
364          (14) "Investment adviser representative" [is as defined] means the same as that term is
365     defined in Section 61-1-13.
366          (15) (a) "Investment agreement" means any written agreement that has specifically
367     negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate.
368          (b) "Investment agreement" includes any agreement to supply investments on one or

369     more future dates.
370          (16) "Local government" means a county, municipality, school district, special district
371     under Title 17B, Limited Purpose Local Government Entities - Special Districts, special
372     service district under Title 17D, Chapter 1, Special Service District Act, or any other political
373     subdivision of the state.
374          (17) "Market value" means market value as defined in the Master Repurchase
375     Agreement.
376          (18) "Master Repurchase Agreement" means the current standard Master Repurchase
377     Agreement approved by the Public Securities Association or by any successor organization.
378          (19) "Maximum amount" means, with respect to qualified depositories, the total
379     amount of:
380          (a) deposits in excess of the federal deposit insurance limit; and
381          (b) nonqualifying repurchase agreements.
382          (20) "Money market mutual fund" means an open-end managed investment fund:
383          (a) that complies with the diversification, quality, and maturity requirements of Rule
384     2a-7 or any successor rule of the Securities and Exchange Commission applicable to money
385     market mutual funds; and
386          (b) that assesses no sales load on the purchase of shares and no contingent deferred
387     sales charge or other similar charges, however designated.
388          (21) "Nationally recognized statistical rating organization" means an organization that
389     has been designated as a nationally recognized statistical rating organization by the Securities
390     and Exchange Commission's Division of Market Regulation.
391          (22) "Nonqualifying repurchase agreement" means a repurchase agreement evidencing
392     indebtedness of a qualified depository arising from the transfer of obligations of the United
393     States Treasury or other authorized investments to public treasurers that is:
394          (a) evidenced by a safekeeping receipt issued by the qualified depository;
395          (b) included in the depository's maximum amount of public funds; and
396          (c) valued and maintained at market value plus an appropriate margin collateral
397     requirement based upon the term of the agreement and the type of securities acquired.
398          (23) "Operating funds" means current balances and other funds that are to be disbursed
399     for operation of the state government or any of its boards, commissions, institutions,

400     departments, divisions, agencies, or other similar instrumentalities, or any county, city, school
401     district, political subdivision, or other public body.
402          (24) "Permanent funds" means funds whose principal may not be expended, the
403     earnings from which are to be used for purposes designated by law.
404          (25) "Permitted depository" means any out-of-state financial institution that meets
405     quality criteria established by rule of the council.
406          (26) "Public funds" means money, funds, and accounts, regardless of the source from
407     which the money, funds, and accounts are derived, that are owned, held, or administered by the
408     state or any of its boards, commissions, institutions, departments, divisions, agencies, bureaus,
409     laboratories, or other similar instrumentalities, or any county, city, school district, political
410     subdivision, or other public body.
411          (27) (a) "Public money" means "public funds."
412          (b) "Public money," as used in Article VII, Sec. 15, Utah Constitution, means the same
413     as "state funds."
414          (28) "Public treasurer" includes the state treasurer and the official of any state board,
415     commission, institution, department, division, agency, or other similar instrumentality, or of
416     any county, city, school district, charter school, political subdivision, or other public body who
417     has the responsibility for the safekeeping and investment of any public funds.
418          (29) "Public Treasurers' Investment Fund" means the public fund created for any public
419     funds transferred by a public treasurer to the state treasurer in accordance with Section 51-7-5.
420          [(29)] (30) "Qualified depository" means a Utah depository institution or an
421     out-of-state depository institution, as those terms are defined in Section 7-1-103, that is
422     authorized to conduct business in this state under Section 7-1-702 or Title 7, Chapter 19,
423     Acquisition of Failing Depository Institutions or Holding Companies, whose deposits are
424     insured by an agency of the federal government and that has been certified by the commissioner
425     of financial institutions as having met the requirements established under this chapter and the
426     rules of the council to be eligible to receive deposits of public funds.
427          [(30)] (31) "Qualifying repurchase agreement" means a repurchase agreement
428     evidencing indebtedness of a financial institution or government securities dealer acting as
429     principal arising from the transfer of obligations of the United States Treasury or other
430     authorized investments to public treasurers only if purchased securities are:

431          (a) delivered to the public treasurer's safekeeping agent or custodian as contemplated
432     by Section 7 of the Master Repurchase Agreement; and
433          (b) valued and maintained at market value plus an appropriate margin collateral
434     requirement based upon the term of the agreement and the type of securities acquired.
435          [(31)] (32) "Reciprocal deposits" means deposits that are initially deposited into a
436     qualified depository and are then redeposited through a deposit account registry service:
437          (a) in one or more FDIC-insured depository institutions in amounts up to the relevant
438     FDIC-insured deposit limit for a depositor in each depository institution; and
439          (b) in exchange for reciprocal FDIC-insured deposits made through the deposit account
440     registry service to the qualified depository.
441          [(32)] (33) "Securities division" means Utah's Division of Securities created within the
442     Department of Commerce by Section 13-1-2.
443          [(33)] (34) "State funds" means:
444          (a) public money raised by operation of law for the support and operation of the state
445     government; and
446          (b) all other money, funds, and accounts, regardless of the source from which the
447     money, funds, or accounts are derived, that are owned, held, or administered by the state or any
448     of its boards, commissions, institutions, departments, divisions, agencies, bureaus, laboratories,
449     or other similar instrumentalities.
450          Section 8. Section 51-7-5 is amended to read:
451          51-7-5. Public Treasurers' Investment Fund -- Transfer of public funds not
452     otherwise required to be transferred to state treasurer -- Duties of public treasurers --
453     Withdrawals of transferred funds -- Reporting.
454          (1) Any public funds as to which the deposit, investment, or reinvestment is not
455     transferred to the state treasurer by Section 51-7-4, may be transferred to the [state treasurer]
456     Public Treasurers' Investment Fund by the public treasurer having responsibility for the control
457     or management of these public funds.
458          (2) Notwithstanding the transfer, the public treasurer shall retain sufficient funds to
459     cover the cash requirements of the body owning or having control or management of these
460     funds and shall continue to be responsible for the proper collection, deposit, and disbursement
461     of these funds in the manner provided by law.

462          (3) The public funds transferred or placed under the control or supervision of the state
463     treasurer under this section are subject to all applicable provisions of this chapter and are under
464     the jurisdiction of the state treasurer until the public treasurer withdraws these public funds
465     from the state treasurer.
466          (4) Withdrawals may be made from time to time on such reasonable notice as the state
467     treasurer may prescribe.
468          (5) The public treasurer may withdraw all or any part of the public funds originally
469     transferred to the state treasurer, subject to any rules as to the maximum amounts which may be
470     withdrawn at any one time as the state treasurer may reasonably prescribe.
471          (6) On or before October 31 of each calendar year, the state treasurer shall report to the
472     Political Subdivisions Interim Committee the current balance as of June 30 for each entity that
473     has transferred money to the Public Treasurers' Investment Fund.
474          Section 9. Section 51-7-6 is amended to read:
475          51-7-6. Public Treasurers' Investment Fund -- Calculation of shares of
476     participating funds -- Allocations of income to participating funds.
477          (1) The share of public funds of each participating public treasurer who has transferred
478     public funds to the [state treasurer for investment under Section 51-7-5] Public Treasurers'
479     Investment Fund, including trust funds invested by the state treasurer under this chapter, shall
480     be calculated not less than quarterly.
481          (2) Income from investment of these public funds by the state treasurer, including gains
482     or losses from the sale or exchange of investments or other properties, and net of investment
483     fees and other charges assessed according to the schedule established by the state treasurer,
484     shall be allocated to each participating fund on the ratio of each fund's share to the total public
485     funds in the custody of the state treasurer determined on the basis of the average daily balance
486     of each fund.
487          Section 10. Section 53-2a-605 is amended to read:
488          53-2a-605. Local government disaster funds.
489          (1) (a) Subject to this section and notwithstanding anything to the contrary contained in
490     Title 10, Utah Municipal Code, or Title 17, Counties, Title 17B, Limited Purpose Local
491     Government Entities - Special Districts, or Title 17D, Chapter 1, Special Service District Act,
492     the governing body of a local government may create and maintain by ordinance a special fund

493     known as a local government disaster fund.
494          (b) The local fund shall consist of:
495          (i) subject to the limitations of this section, money transferred to it in accordance with
496     Subsection (2);
497          (ii) any other public or private money received by the local government that is:
498          (A) given to the local government for purposes consistent with this section; and
499          (B) deposited into the local fund at the request of:
500          (I) the governing body of the local government; or
501          (II) the person giving the money; and
502          (iii) interest or income realized from the local fund.
503          (c) Interest or income realized from the local fund shall be deposited into the local
504     fund.
505          (d) Money in a local fund may be:
506          (i) deposited or invested as provided in Section 51-7-11; or
507          (ii) transferred by the local government treasurer to the [state treasurer under Section
508     51-7-5 for the state treasurer's management and control under Title 51, Chapter 7, State Money
509     Management Act] Public Treasurers' Investment Fund as defined in Section 51-7-3.
510          (e) (i) The money in a local fund may accumulate from year to year until the local
511     government governing body determines to spend any money in the local fund for one or more
512     of the purposes specified in Subsection (3).
513          (ii) Money in a local fund at the end of a fiscal year:
514          (A) shall remain in the local fund for future use; and
515          (B) may not be transferred to any other fund or used for any other purpose.
516          (2) The amounts transferred to a local fund may not exceed 10% of the total estimated
517     revenues of the local government for the current fiscal period that are not restricted or
518     otherwise obligated.
519          (3) Money in the fund may only be used to fund the services and activities of the local
520     government creating the local fund in response to:
521          (a) a declared disaster within the boundaries of the local government;
522          (b) the aftermath of the disaster that gave rise to a declared disaster within the
523     boundaries of the local government; and

524          (c) subject to Subsection (5), emergency preparedness.
525          (4) (a) A local fund is subject to this part and:
526          (i) in the case of a town, Title 10, Chapter 5, Uniform Fiscal Procedures Act for Utah
527     Towns, except that:
528          (A) in addition to the funds listed in Section 10-5-106, the mayor shall prepare a
529     budget for the local fund;
530          (B) Section 10-5-119 addressing termination of special funds does not apply to a local
531     fund; and
532          (C) the council of the town may not authorize an interfund loan under Section
533     10-5-120 from the local fund;
534          (ii) in the case of a city, Title 10, Chapter 6, Uniform Fiscal Procedures Act for Utah
535     Cities, except that:
536          (A) in addition to the funds listed in Section 10-6-109, the mayor shall prepare a
537     budget for the local fund;
538          (B) Section 10-6-131 addressing termination of special funds does not apply to a local
539     fund; and
540          (C) the governing body of the city may not authorize an interfund loan under Section
541     10-6-132 from the local fund; [and]
542          (iii) in the case of a county, Title 17, Chapter 36, Uniform Fiscal Procedures Act for
543     Counties, except that:
544          (A) Section 17-36-29 addressing termination of special funds does not apply to a local
545     fund; and
546          (B) the governing body of the county may not authorize an interfund loan under
547     Section 17-36-30 from the local fund;
548          (iv) in the case of a special district or special service district, Title 17B, Chapter 1, Part
549     6, Fiscal Procedures for Special Districts, except that:
550          (A) Section 17B-1-625, addressing termination of a special fund, does not apply to a
551     local fund; and
552          (B) the governing body of the special district or special service district may not
553     authorize an interfund loan under Section 17B-1-626 from the local fund; and
554          (v) in the case of an interlocal entity, Title 11, Chapter 13, Part 5, Fiscal Procedures for

555     Interlocal Entities, except for the following provisions:
556          (A) Section 11-13-522 addressing termination of a special fund does not apply to a
557     local fund; and
558          (B) the governing board of the interlocal entity may not authorize an interfund loan
559     under Section 11-13-523 from the local fund.
560          (b) Notwithstanding Subsection (4)(a), transfers of money to a local fund or the
561     accumulation of money in a local fund do not affect any limits on fund balances, net assets, or
562     the accumulation of retained earnings in any of the following of a local government:
563          (i) a general fund;
564          (ii) an enterprise fund;
565          (iii) an internal service fund; or
566          (iv) any other fund.
567          (5) (a) A local government may not expend during a fiscal year more than 10% of the
568     money budgeted to be deposited into a local fund during that fiscal year for emergency
569     preparedness.
570          (b) The amount described in Subsection (5)(a) shall be determined before the adoption
571     of the tentative budget.
572          Section 11. Section 59-2-1330 is amended to read:
573          59-2-1330. Payment of property taxes -- Payments to taxpayer by state or taxing
574     entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
575     Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the
576     commission -- Time periods for making payments to taxpayer.
577          (1) Unless otherwise specifically provided by statute, property taxes shall be paid
578     directly to the county assessor or the county treasurer:
579          (a) on the date that the property taxes are due; and
580          (b) as provided in this chapter.
581          (2) A taxpayer shall receive payment as provided in this section if a reduction in the
582     amount of any tax levied against any property for which the taxpayer paid a tax or any portion
583     of a tax under this chapter for a calendar year is required by a final and unappealable judgment
584     or order described in Subsection (3) issued by:
585          (a) a county board of equalization;

586          (b) the commission; or
587          (c) a court of competent jurisdiction.
588          (3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
589     property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
590     shall pay the taxpayer if:
591          (i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
592     authorized officer of the:
593          (A) county; or
594          (B) state; and
595          (ii) the taxpayer obtains a final and unappealable judgment or order:
596          (A) from:
597          (I) a county board of equalization;
598          (II) the commission; or
599          (III) a court of competent jurisdiction;
600          (B) against:
601          (I) the taxing entity or an authorized officer of the taxing entity; or
602          (II) the state or an authorized officer of the state; and
603          (C) ordering a reduction in the amount of any tax levied against any property for which
604     a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
605          (b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
606     in accordance with Subsections (4) through (7).
607          (4) For purposes of Subsections (2) and (3), the amount the state shall pay to a taxpayer
608     is equal to the sum of:
609          (a) if the difference described in this Subsection (4)(a) is greater than $0, the difference
610     between:
611          (i) the tax the taxpayer paid to the state in accordance with Subsection (2); and
612          (ii) the amount of the taxpayer's tax liability to the state after the reduction in the
613     amount of tax levied against the property in accordance with the final and unappealable
614     judgment or order described in Subsection (3);
615          (b) if the difference described in this Subsection (4)(b) is greater than $0, the difference
616     between:

617          (i) any penalties the taxpayer paid to the state in accordance with Section 59-2-1331;
618     and
619          (ii) the amount of penalties the taxpayer is liable to pay to the state in accordance with
620     Section 59-2-1331 after the reduction in the amount of tax levied against the property in
621     accordance with the final and unappealable judgment or order described in Subsection (3);
622          (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
623     Section 59-2-1331 on the amounts described in Subsections (4)(a) and (4)(b); and
624          (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
625          (i) Subsection (4)(a);
626          (ii) Subsection (4)(b); and
627          (iii) Subsection (4)(c).
628          (5) For purposes of Subsections (2) and (3), the amount a taxing entity shall pay to a
629     taxpayer is equal to the sum of:
630          (a) if the difference described in this Subsection (5)(a) is greater than $0, the difference
631     between:
632          (i) the tax the taxpayer paid to the taxing entity in accordance with Subsection (2); and
633          (ii) the amount of the taxpayer's tax liability to the taxing entity after the reduction in
634     the amount of tax levied against the property in accordance with the final and unappealable
635     judgment or order described in Subsection (3);
636          (b) if the difference described in this Subsection (5)(b) is greater than $0, the difference
637     between:
638          (i) any penalties the taxpayer paid to the taxing entity in accordance with Section
639     59-2-1331; and
640          (ii) the amount of penalties the taxpayer is liable to pay to the taxing entity in
641     accordance with Section 59-2-1331 after the reduction in the amount of tax levied against the
642     property in accordance with the final and unappealable judgment or order described in
643     Subsection (3);
644          (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
645     Section 59-2-1331 on the amounts described in Subsections (5)(a) and (5)(b); and
646          (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
647          (i) Subsection (5)(a);

648          (ii) Subsection (5)(b); and
649          (iii) Subsection (5)(c).
650          (6) Except as provided in Subsection (7):
651          (a) interest shall be refunded to a taxpayer on the amount described in Subsection
652     (4)(c) or (5)(c) in an amount equal to the amount of interest the taxpayer paid in accordance
653     with Section 59-2-1331; and
654          (b) interest shall be paid to a taxpayer on the amount described in Subsection (4)(d) or
655     (5)(d):
656          (i) beginning on the later of:
657          (A) the day on which the taxpayer paid the tax in accordance with Subsection (2); or
658          (B) January 1 of the calendar year immediately following the calendar year for which
659     the tax was due;
660          (ii) ending on the day on which the state or a taxing entity pays to the taxpayer the
661     amount required by Subsection (4) or (5); and
662          (iii) at the interest rate earned by the state treasurer on public funds transferred to the
663     [state treasurer in accordance with Section 51-7-5] Public Treasurers' Investment Fund as
664     defined in Section 51-7-3.
665          (7) Notwithstanding Subsection (6):
666          (a) the state may not pay or refund interest to a taxpayer under Subsection (6) on any
667     tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax levied
668     by the state for that calendar year as stated on the notice required by Section 59-2-1317; and
669          (b) a taxing entity may not pay or refund interest to a taxpayer under Subsection (6) on
670     any tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax
671     levied by the taxing entity for that calendar year as stated on the notice required by Section
672     59-2-1317.
673          (8) (a) Each taxing entity may levy a tax to pay its share of the final and unappealable
674     judgment or order described in Subsection (3) if:
675          (i) the final and unappealable judgment or order is issued no later than 15 days prior to
676     the date the certified tax rate is set under Section 59-2-924;
677          (ii) the amount of the judgment levy is included on the notice under Section
678     59-2-919.1; and

679          (iii) the final and unappealable judgment or order is an eligible judgment, as defined in
680     Section 59-2-102.
681          (b) The levy under Subsection (8)(a) is in addition to, and exempt from, the maximum
682     levy established for the taxing entity.
683          (9) (a) A taxpayer that objects to the assessment of property assessed by the
684     commission shall pay, on or before the property tax due date established under Subsection
685     59-2-1331(1) or Section 59-2-1332, the full amount of taxes stated on the notice required by
686     Section 59-2-1317 if:
687          (i) the taxpayer has applied to the commission for a hearing in accordance with Section
688     59-2-1007 on the objection to the assessment; and
689          (ii) the commission has not issued a written decision on the objection to the assessment
690     in accordance with Section 59-2-1007.
691          (b) A taxpayer that pays the full amount of taxes due under Subsection (9)(a) is not
692     required to pay penalties or interest on an assessment described in Subsection (9)(a) unless:
693          (i) a final and unappealable judgment or order establishing that the property described
694     in Subsection (9)(a) has a value greater than the value stated on the notice required by Section
695     59-2-1317 is issued by:
696          (A) the commission; or
697          (B) a court of competent jurisdiction; and
698          (ii) the taxpayer fails to pay the additional tax liability resulting from the final and
699     unappealable judgment or order described in Subsection (9)(b)(i) within a 45-day period after
700     the county bills the taxpayer for the additional tax liability.
701          (10) (a) Except as provided in Subsection (10)(b), a payment that is required by this
702     section shall be paid to a taxpayer:
703          (i) within 60 days after the day on which the final and unappealable judgment or order
704     is issued in accordance with Subsection (3); or
705          (ii) if a judgment levy is imposed in accordance with Subsection (8):
706          (A) if the payment to the taxpayer required by this section is $5,000 or more, no later
707     than December 31 of the year in which the judgment levy is imposed; and
708          (B) if the payment to the taxpayer required by this section is less than $5,000, within
709     60 days after the date the final and unappealable judgment or order is issued in accordance with

710     Subsection (3).
711          (b) Notwithstanding Subsection (10)(a), a taxpayer may enter into an agreement:
712          (i) that establishes a time period other than a time period described in Subsection
713     (10)(a) for making a payment to the taxpayer that is required by this section; and
714          (ii) with:
715          (A) an authorized officer of a taxing entity for a tax imposed by a taxing entity; or
716          (B) an authorized officer of the state for a tax imposed by the state.
717          Section 12. Effective date.
718          This bill takes effect on May 1, 2024.