Notice of Intended Regulatory Action

Notice is hereby given in accordance with § 2.2-4007.01 of the Code of Virginia that the Treasury Board intends to consider amending 1VAC75-20, Virginia Security for Public Deposits Act Regulations. The purpose of the proposed action is to conform regulation to the Security for Public Deposits Act (SPDA) (§ 2.2-4400 et seq. of the Code of Virginia). In addition, changes will be made to further safeguard Virginia public funds held as deposits in Virginia financial institutions. The regulation protects the financial stability citizens of the Commonwealth by ensuring public deposits of the Commonwealth of Virginia and its counties, cities, towns, and other public entities are adequately protected against economic consequences of a failure of a financial institution holding public funds. The intended amendments, resulting from a periodic review of the regulation, (i) update the statutory authority; (ii) bring the regulatory language in line with the SPDA as amended in 2008 and 2010 and newly approved board guidelines; and (iii) make other changes determined to be necessary to better administer the SPDA to accommodate the needs of Virginia's banking community and public institutions while ensuring the protection of public funds.

The agency does not intend to hold a public hearing following the publication of the proposed stage in the Virginia Register.

Statutory Authority: § 2.2-4405 of the Code of Virginia.

Public Comment Deadline: April 14, 2021.

Agency Contact: Kristin A. Reiter, Director of Operations, Department of the Treasury, James Monroe Building, 101 North 14th Street, 3rd Floor, Richmond, VA 23219, telephone (804) 225-3240, FAX (804) 225-3187, or email kristin.reiter@trs.virginia.gov.