No. 28275: R628-4. Bonding of Public Treasurers

DAR File No.: 28275
Filed: 10/06/2005, 03:40
Received by: NL

 

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 51-7-15 states that all public treasurers have to be bonded in an amount not less that what the Money Management Council establishes by rule. So a rule is required by the Money Management Act (Title 51, Chapter 7). Additionally this section states that if a public treasurer abides by the Money Management Act and rules of the Council, the public treasurer and his bondsmen are not liable for the loss of public funds unless the loss is caused by the malfeasance of the treasurer or his staff.

 

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

There have been no written comments. In December of 2004, one insurance representative approached the Council in a meeting but sent in no written comment. This person was asking the Council to drop the amount of the bonding requirement as the costs had gone up. The Council asked him to provide statistics and more information on the cost increases but he did not return with this information.

 

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

The rule is required by statute to be in place to provide amounts for the surety bonds that public treasurers are required to maintain per the Money Management Act. If it was not in place, there would be no criteria for the requirement to bond or amounts for those bonds.

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Money Management Council
Administration
Room E315 EAST OFFICE BLDG
STATE CAPITOL COMPLEX
PO BOX 142315
SALT LAKE CITY UT 84114-2315

 

Direct questions regarding this rule to:

Ann Pedroza at the above address, by phone at 801-538-1883, by FAX at 801-538-1465, or by Internet E-mail at [e-mail]

 

Authorized by:

Bruce B. Cohne, Chair