No. 34145 (5-year Review): Rule R628-11. Maximum Amount of Uninsured Public Funds Allowed to be Held by any Qualified Depository

DAR File No.: 34145
Filed: 10/12/2010 02:42:45 PM

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:

In Section 51-7-18.1 of the Utah Money Management Act (Title 51, Chapter 7), the Council is charged with determining in council rule the amount of uninsured public funds a qualified depository may hold above the insured amount. This section describes that the Council shall base the amount on the depository's capital and the amount may not be more than two times capital as defined in council rule.

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 since the last five-year review.

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

The Council has used this rule in the last two years to adjust public funds allotments on qualified depositories that have had formal federal enforcement actions placed on them due to financial issues. Without this rule, it would not have been possible to adjust the allotments to better reflect the financial condition of these financial institutions to the public treasurer. The rule needs to be in place to allow the Council to monitor the condition of financial institutions that hold public funds and protect public funds deposited in these institutions. Therefore, this rule should be continued.

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
350 N STATE ST
STE 180
SALT LAKE CITY, UT 84114

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:

William Wallace, Chair

Effective:

10/12/2010

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