Show ST STATE A t TREASURER ASKS LA LAWS WS PROVIDING INTEREST ON FUNDS I i I Creaton Creation of Boards of Finance Is Urged Having General Supervision h Over Ovel Deposits and Dep Depositories of Funds t ft 1 RECOMMENDED LEGISLATION f J i BY 01 TJ JEn f- f fLaw Law providing for tor 2 per pel cent 44 4 4 I interest on dali daily balances of ot public pub pub- f fHe He lic funds on dal deposit in 4 tories 44 4 4 t Creation Creaton of ot hoards boards of ot finance t 4 wl with h advisory advisor supervision over O au all al allf f ff f public funds within their f t tire live jurisdictions I f- f Selection and d designation of off f 9 4 t public depositories b by boards of or 4 f finance on competitive proposal 44 4 4 Plan 4 f- f Defining Defining- of or qualifications and and 44 4 4 fixing of ot sureties which shall do- do co- co 44 4 4 9 eligibility suretes of ot an any eI t tion ton to receive public moneys 4 Requiring monthly reports from rota 4 4 all nI depositories of ot exact t condition 44 4 4 of or public funds on oft hand and accrued ac- ac 4 cent 44 4 4 clued interest at 2 por per of ot ac- ac 4 4 Pro Providing for Cor addition additon 4 Interest to balance principal 4 4 t and collection of interest on Increased inA in- in In 44 4 4 land creased principal y 4 A funds wheLk wheLk- f 4 Placing all public Placing al 4 er or in hands of or treasurers hoards boards 44 4 4 of or 44 4 t or officials under supervision 4 1 boards o of finance nanco and requiring 44 4 4 dal dally cash balance statements 44 4 9 99 4 9 from all nl such boar boards s and officials f 4 4 9 Providing Providing- for examination of or 44 4 9 4 depositories b by state bank 44 4 9 99 to secretary 44 4 4 9 nor and for tor reports 4 9 of state on condition of oV public 4 9 funds at nt nn any time Information Ion ma may mayho 4 ho bo desired 4 9 Reduction Reduction of or responsibility on 4 t state treasurer b by removal of lla- lla ln- ln f fT T for or funds that ml might ht bo be lost f 4 4 through deposit in depository 44 4 4 under tinder direction of ot board of at finance 4 9 and reduction of or his bond to tol 44 4 4 9 t 4 f l j. j 4 revolution in the method COMPLETE a i of at handling public funds Is advOcated advocated advocated in his biennial report b by State Treasurer David ld Matson Mattson who submits submits sub sub- mits mis the tho draft drat a of a a. a propose proposed act providing providing pro pro- viding for tor creation of at boards of or finance which shall exercise advisory supervision supervision super super- and S se secure secure se- se vision Islon over all al public moneys cure cur at nt least last 2 per cent interest on ondal dali dal dally balances In designated tories The proposed act IB is designed to pro pro- vide Ide a now means for tor care for public public pub pub- lic funds collection of at interest thereon there there- lc finance nanco and on oil on creation creaton of at boards of or defining defining- their pow powers rs and duties providing providing providing pro pro- viding for r C the designation of at public depositories and the tho depositing of public pub lie lic funds therein and defining the tho lc powers and duties dutes of or alt all al custodians of or public funds funds lie He would have boards of at finance of ot time the state each county count each cl city and town and each school district each board boord to have advisory supervision over the handling of or all ni public funds coming corning com corn ing within its Is Jurisdiction The treasurer expresses the beler belief that interest should be derived d from funds but that dal dally daily balances of ot public collected all funds funds- it t should bo be on al I and s and that all aU not merely state monc moneys moneys and al public fu funds ds should bo ho handled under the he advice and supervision of or competent boards rather than left In tho the hands atone of or orone one Individual Ho ire would have havo treasurers treasurers treasurers treas treas- relieved of or the great burden of ot responsibility which they thoy now bear and their bonds reduced Preliminary to his recommended leg- leg the tho retiring treasurer states that the tho financial condition of ot the tho state of ot Utah is better now and has been better better better bet bet- ter In the last biennium than titan over ever ove bo- bo bl- bl foro In its history For four years ear past It i has not had to borrow a cent centor for or running running expenses as it I had to do do previously Instead there has been an an average balance of at In tho the 1 treasury at nt the end of at each year eor While no direct interest has been re received received re- re reI I b by the state on an any of at Its Us funds the ho treasurers treasurer's report shows how that in tn other ways Was I It t has received compensation I ion tion ton equivalent to the tho Interest that would have ha e been collected on a basis of 2 per cent on a a balance Limitations Limitation of ot 1 Las Las- Notwithstanding this showing how- how over o the tho treasurer sa says s 's there Is a a general gen gen- en- en eral oral dem demand nd on the part of or the people for interest on the public publio funds and ho lie believes es the tho demand Is a reasonable one Admitting this he points out tho the limitations Imitations tons of t the law and conditions which prevent tho the state treasurer under tinder existing existing- circumstances from front malting making any iny arran arrangements for interest on dal dally daily balances He lIe presents the dla draft of or an act which he lie believes will wi solve time tho problem of or handling public moneys moneS Ina in ina ina a satisfactory manner lf It lt It Is enacted into nto law by the legislature Details of ot the tho board of or finance plan planor of or handling public funds a as outlined In the proposed act are these Creation Creo- Creo Crea Crea- tion tiomi toH first of or a I state board of or finance compo composed sod of ot the time governor go secretary of or state and attorney general tho governor 10 gov go to be he chairman and the secretary score secre tar tary of state to bo be secretary Section 2 provides that the boards boar s of ot county count commissioners o of each county count shall bo be county count boards of ot finance with wih the county clerk as secretary Tho The mayor and coUncilmen or commissioners of ot each ench city and und tho the ma mayor or and trustees of each Incorporated town shall shaH constitute con con- boards hOards of ot for tor the cities clUes and tnt towns These Jeso boards shall shaH elect their presidents and amid the time city recorder or town cleric clerk shall be secretary Time The oard of trustees of each ch school district dis- dis ti tm-idt tm and the time board ot of school trustees of each ach el city shall hal constitute boards hoards of finance for their r respective districts UI or ciles cities These Those boord boards arc aro to elect I Ithe their own president and anc the time clerk cleric of oC the school board is I to be secretary Power loter ot of Ino Hoard The Time power powel bestowed upon these boards Is that of at exercising advisor advisory supervision over all ull ul public funds un s coming corning com corn ing within the civil division 11 over Ocr which each board ha has Jurisdiction The Tle first I dut duty imposed upon theao boards i Is that each ach one shall designate to one or more mored d depositories for the time public funds un under un- un un-I un der hr Its Is supervision and the time state county count county coun coun- t ty et city town school district treasurer treasurer treas treas- or any other othel official holding public pub pub- lic lc funds Shrill shall deposit them In iii treaS 1 the depositories so designated d and shall file le with wih the tile secretaries of oC their re respective respective re- re boards bOrds verified statements of the funds so 80 deposited Then are prescribed the tho qualifications tons necessary to to entitle any Institution Institution tion ton to be designated a depository depositor First It I Is required that thal the time tion ton bo be subject to inspection of or the tho national na na- na- na tonal hank bank examiners and the tho state examiner and that It I shall furnish a R good and sufficient bond to the board of or finance equal to the tie maximum amount of or public funds to be he depos depos- sureties suretes on bonds to qualify for tor forat forat at least twice the amount of or the bond It I Is provided pro that In lieu leu of ot Buret surety or 01 personal bonds Institutions may offer state county count cl city or school bonds hands Instead under certain conditions Title to nil al such stick collateral bonds shall vest est in the time hoards boards of or finance with which deposited In the matter mator of or selecting tortes tories provision pro is mado by bp Mr Ir Mattson Mattson Matt Matt- Int- Int son Hon In The 18 proposed In law w that pub pub- notice of at Intention shall bo be given I en for tor at least leat twenty da days a and registered notices shall hal be sent to all 1 available institutions proposals to re receive re- re public funds liach ach and er c every Institution desiring to receive funds funda must file tUe proposals for the maximum amount to ho bo received furnish its Is sureties suretes sureties sure sure- ties tes and ond agree to pay py 2 per cent per annum Interest on Oh dali dal dally balances On the time date fixed the tho board shall shaH meet and andopen open proposals and all ni Institutions which comply with wih tho tue requirements shall be he designated as a depositories It ItIs Itis I Is provided however that tho the board ma may at au any time revoke re tho Blon sian of or an any ami Institution for tor cause and ma may at Rt any time demand an accountIng account- account lug Ing of or the funds on deposit t. t Acceptance Acceptance Accept Accept- ance mince of ot commission as aR a I depository depositor is required on the tho part of oC tho the Institution and this must bo be filed fed with the secretary sec eec of or the time board In ca case e t two o or mote moro Institutions within the tho Jurisdiction of or a m. m board hoard o ot of finance qualify as depositories the tho funds arc to be deposited In the tho thearl van vari various arl arloUs OU ous ones OnOS in proportion to the time paid up capital stock of ot the institutions If I tb no tO bank banle In a R district qualifies or there Is none to qualify then tho the board may designate qualified Institutions elsewhere ere within the provisions of or the time timela 1 la a. a W a Each Bach depository shall on Ott n the time first Ir t day of at each month It IH is provided furnish furnish fur fur- ca nish a detailed statement of oC tho time funds rund on deposit and anti the time accrued Interest The accrued interest shall be added to the balance and become a a. part of ot the time thet deposit on pa which interest Is drawn Inthe in jn inthe t the case n of state slate funds it i Is 18 provided that accrued Interest t on them shan shall ho bo apportioned b by the tate state treasurer to the several funds In proportion to their average R Individual balances and the lie apportionments shall become a f a apart part o of the these e separate funds It I Is provided pro that the state board boardo o of finance shall require the state stale treasurer to furnish It i a bond In the theRum sum Rum of at sureties suretes on the bond bom to be bl required to qualify for tor at least twice the time amount of or the time bond hond Section 18 pro provides that when any ot of tho tue funds of ot an any civic division shall be bo deposited In iii accordance with wih tho the provisions o of tho act act then tho the treasure treasurer treas treas- ure of ot that district and his or her bondsmen shall be bo exempt from liability Habl- Habl I it ity through loss 1088 of or an any such fuch funds t O t. t the extent o of the amount of ot sue funds f In tho the hands of ot such depository ov or depositories An Any wilful failure or refusal of or an any officer having having- hu charge chano o of public funds the proVisions provision of at tho the act to perform perform perform per per- per per- form his lila duties duteR will wi con constitute malfeasance mat mal In office and nn any one ono who accepts accents inducements or In is Influenced or rec receives ves gain through through the handling of at such funds will win bo ho deemed guilty guity a of a felony felon and Is to be prosecuted as such In another section the trea treasurer calls cals attention to the fact that thus titus far Car tho the popular demand has hos been for tor Interest on state funds Ho lIe 10 calls cals attention to tho the fact tact that the tho state funds constitute constitute const const- tute a comparatively small smal part of ot tho the public funds Cund and expresses tho bele belief that If Interest Is to be bc secured on any funds It I should bo ho o received on all ni public pub pub- lie lic lc mone moneys s 's In his tabulated statement of or funds tho the treasurer shows that the thc general reven revenues of ot the state te for the biennium bien- bien aggregated 3 n and the total disbursements disbursement were The rime balance balanco on hand November 30 1912 the close of ot tho the biennium was 1661 |