Insurance Funds Amendments

Added a new definition for 'reserve fund' to Section 11-13-103, clarifying it as a fund established to cover losses to a political subdivision's assets.

Modified Section 11-13-502 to exempt both public agency insurance mutuals and reserve funds from the State Money Management Act, whereas the previous version only exempted mutuals.

Modified Section 11-13-533 to authorize both public agency insurance mutuals and reserve funds to form one or more captive insurance companies.

Modified Section 31A-1-103 to explicitly state that public agency insurance mutuals are considered governmental entities with all rights, privileges, and immunities of a political subdivision.

Modified Section 31A-1-103 to clarify that public agency insurance mutuals and reserve funds may not provide health insurance unless they use a licensed third-party administrator, an admitted insurer, or a state-authorized program.

Updated the Effective Date section to reflect the new version's timeline of May 7, 2025.

Added new definitions for energy-related terms including 'additional project capacity', 'replacement project capacity', 'electric interlocal entity', 'energy services interlocal entity', and 'qualified energy services interlocal entity' to clarify interlocal cooperation in energy projects.

Modified the definition of 'public agency insurance mutual' to include specific criteria for entities formed by political subdivisions for insurance coverage or risk management purposes.

Added a new section authorizing public agency insurance mutuals and reserve funds to create one or more captive insurance companies under the Captive Insurance Companies Act.

Modified investment maturity limits for public agency insurance mutuals and reserve funds, allowing up to 20 years for certain obligations compared to 5-10 years for other public funds.

Modified investment requirements by establishing that the state treasurer must invest public agency insurance mutual assets with the primary goal of providing stability, income, and growth of principal, using a prudent investor standard.

Added restrictions on public agency insurance mutuals providing health insurance, requiring use of third party administrators, admitted insurers, or state-authorized programs.

Added explicit exemption for public agency insurance mutuals from the State Money Management Act (Title 51, Chapter 7) and clarified their exemption from the Insurance Code with specific exceptions for surplus lines tax.

Added new definitions for 'Additional project capacity', 'Electric interlocal entity', 'Energy services interlocal entity', 'Facilities providing replacement project capacity', 'Governing authority', 'Governing board', 'Interlocal entity', 'Joint administrator', 'Joint or cooperative undertaking', 'Member', 'Out-of-state public agency', 'Project', 'Project entity', 'Public agency', 'Public agency insurance mutual', 'Qualified energy services interlocal entity', 'Replacement project capacity', 'Reserve fund', 'Transportation reinvestment zone', 'Utah interlocal entity', and 'Utah public agency'.

Modified exemptions from the State Money Management Act to explicitly include public agency insurance mutuals and reserve funds, removing them from standard investment management requirements.

Added authority for public agency insurance mutuals and reserve funds to create one or more captive insurance companies under the Captive Insurance Companies Act.

Modified investment requirements for public agency insurance mutuals to allow longer maturity periods (up to 20 years) for certain securities compared to the standard 5-10 year limits.

Added requirements for public agency insurance mutuals to use third-party administrators, admitted insurers, or state programs for health insurance coverage.

Added technical formatting changes and updated bill metadata including sponsor information and effective date of May 7, 2025.